The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The former prime minister yesterday renewed his attack on the Government’s decision to reimpose VAT on so-called “breadbasket” food items by arguing this has “made worse” the cost of living crisis faced by many Bahamians.

Dr Hubert Minnis, speaking during his House of Assembly contribution to the Budget debate, said: “The economic security and needs of the Bahamian people are paramount, and this includes food security - especially in light of the cost of living crisis, which has been made worse by the policies of the Davis administration.”

Asserting that his successor, Philip Davis QC, and other Cabinet ministers are more interested in travelling at the taxpayer’s expense, he added: “They should have been governing in the midst of a cost of living and food security crisis. They significantly hiked VAT on breadbasket items.

“We said that they would be confronted by the perfect storm, a viral pandemic, an economic pandemic with severe inflation and high, unmanageable fuel costs. The world is facing a serious problem with inflation. This is the worst inflation problem in 40 years. There are many factors contributing to the high prices. The war in Ukraine has made it worse.”

Prices have steadily since the world began to reopen after the COVID-19 economic shutdowns. Supply chain backlogs and bottlenecks, as production plants found it difficult to meet demand with workers and raw materials in short supply, combined with overheating in major economies and Russia’s invasion of Ukraine, have been just some of the factors driving the surge in global inflation.

There are concerns that the “food crisis” will pressure vulnerable economies such as The Bahamas, Dr Minnis said, given that this nation imports virtually all it consumes. “Governments around the world must do all they can to ensure food prices remain as accessible as possible,” he said.