Prime Minister Philip “Brave” Davis. Photo: BIS
By LYNAIRE MUNNINGS
lmunnings@tribunemedia.net
PRIME Minister Phillip “Brave” Davis said yesterday he had no concerns about small business longevity in the face of an impending light bill increase and now a newly announced higher minimum wage of $260 a week.
Mr Davis said it was a step in the right direction.
“I am not concerned about that, that’s why we have given them notice for it,” Mr Davis told The Tribune yesterday at Pompey Museum when he was asked whether he was concerned about small businesses that will have to cope with increased payrolls come January on top of higher light bills beginning next month.
“We have done other things to assist small businesses to ensure that they will be able to absorb those expenses that they anticipate,” he added.
The comments follow his announcement on Tuesday of an increase in the country’s minimum wage from $210 to $260 per week. The higher wage will be retroactive in the public service going back to July of this year and for those in the private sector, the change will begin in January 2023. The timeline, he said, is to give employers time to prepare for the increased expense.
Despite the criticism from some on the increase of minimum wage, Prime Minister Davis told reporters yesterday he has no reason to defend it as it is a step towards seeking a livable wage in The Bahamas.
In his national address on Tuesday, Mr Davis acknowledged that the increase in minimum wage will not eliminate the hardships, however, it represents progress on the way to a liveable wage.
“I don’t defend it, as I said in my address last night (Tuesday) this is progress, it’s a step towards getting to a livable wage. We appreciate and I acknowledge in my speech, if you listened, that this $260 minimum wage in these economic times may not be enough, I appreciated that,” he said yesterday.
“I’ve been there and I understand when people sit around their table to decide what bill they cannot pay or which bill they are going to postpone or which bill cannot be postponed anymore. I’ve anticipated that, but I said this is a step towards where we are going towards a livable wage and that’s progress. We move from one point to the next and we expect to try to get to a liveable wage, bringing along and recognising how the economy is growing and how jobs are expanding.”
Meanwhile, international ratings agency Moody’s has doubled down on concerns that the government’s budget revenue forecasts are “overly optimistic” and that its debt servicing payments will be higher than projected due to the rise in global interest rates.
In view of Moody’s downgrade of the country’s credit rating B1 from Ba3, Mr Davis defended the government as he said the report highlighted “much positive” of the country’s fiscal state.
When asked by The Tribune what was being considered by the government in terms of fiscal measures given the latest Moody’s downgrade, Mr Davis said: “If you read the Moody’s report you would’ve seen that Moody’s indicated that we are on the right track.
“Moody’s indicated that the steps taken by this government are on the right track and they commended our fiscal responsibilities and our plans hence why the downgrade,” the prime minister said. “The debt has been downgraded so you have to understand what they did and appreciate it in the context which it was. So, the question really is mischaracterising what they actually did.
“Understand what Moody’s did, read the report and not just look at what you determined to be the negative of the report, there is much positives in their reporting of our fiscal state.”
Comments
John 1 year, 7 months ago
SMALL BUSINESSES are definitely the most threatened by the series of shockwaves, most emanating from the government, that will affect the economy. And Brave Davis will see the effects of their policies in the next six to nine months. And the results beill also be impacted by the world economy and other activities, like the Russian War, OPEC’s decision to reduce oil production, Florida rebuild efforts ( price and supplies of building materials) and Biden’s trillion dollar government renovation and restoration spend , . About the increase in minimum wage: unfortunately because of the makeup of the Bahamian economy, the minimum wage is the lifeline for many workers. Since there is very limited upward mobility on the blue collar pay scale, increasing the minimum wage is probably the most effective means for workers to get pay increases, and yes many businesses will be negatively impacted. Many small businesses may have to become smaller or close unfortunately. But the greatest impact of the minimum wage increase is twofold. First because of the large number of workers that will be effected by this increase, the additional money in circulation will generate additional revenue both to the government and in the private sector. True, most of this money will be consumed by inflation, but that will not negate the fact that the money will be spent and circulate in the economy each week
. . Secondly. ALL,ALL, ALL! all the money going to the workers will be spent. It will go back into the economy and stimulate some new economic activity. And since this injection of new money into the economy on a weekly basis is long term, the multiplier effect of this new money will be greater . Call Halkitis and ask him what the multiplier effect is. I fell sleep in that part of the class. . . THE up -To 86% increase in electricity bills by June 2023; this will definitely be a drag on businesses and the economy. When this astronomical increase in power bills is paid to BPL, most of it will leave the country immediately to pay BPL’s fuel bill. AND if the amount of money going out to pay BPL’s power costs increases is greater than the money coming in from payroll increases and other sources, then the net benefit will be ZERO. And with the exception of turning up the thermostat a degree or two or shutting off some lights or other equipment, what else are businesses, homeowners prepared to do to keep their electricity bills under control.well government and BPL should do more to promote alternative energy. BPL/ government can enter into programs where they can outfit qualifying homes with solar systems and allow tge homeownet to pay a flat utility rate to BPL based on their current usage. Incentives and financial assistance should be offered to businesses , especially ones that had the potential to feed power back to the grid.
John 1 year, 7 months ago
And more
Maximilianotto 1 year, 7 months ago
The IMF will lift the Chavez/Soviet policy. Opium for the masses.
John 1 year, 7 months ago
Yea my forefathers were slaves when the war was fought to disguise opium smuggling. Did a whole lot for America too. Then there illegal drugs.
B_I_D___ 1 year, 7 months ago
He is definitely far more delusional than I previously gave him credit for...
themessenger 1 year, 7 months ago
'' . Secondly. ALL,ALL, ALL! all the money going to the workers will be spent. It will go back into the economy and stimulate some new economic activity."
The web shops, liquor merchants and hair and nail salon operators will certainly be stimulated, delusional does come close to describing him....................
John 1 year, 7 months ago
He that is giddy think it is the earth that is moving… under his feet.. so you fell down. how about contribute then discredit. Regardless of how and where the money is spent , it will stimulate the economy. Especially if it is done over and repeatedly. When a white man calls you delusional, wow, that’s a compliment from both of y’all. Or is you still playing the game of commenting on ya own post?
themessenger 1 year, 7 months ago
Lol, now that's the John we all know and love, where would he be without his deck of race cards to prop him up, not that he was ever playing with a full deck.................
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