The Tribune

EDITOR, The Tribune.

AS a trained economist As a trained economist and unabashed capitalist, I have never supported the loose concept of a minimum wage, I have always advocated for an exclusively merit based  pay scale. For instance instead of any administration or legislature , by the wave of it’s pen, simply mandating an across the board for all workers in a certain category, I hold that it would be better for employers, generally speaking to offer wages based on productivity; innovation and high work ethics and standards. Let market forces, like supply and demand set wages at whatever reasonable levels required.

Imagine legislation demanding, under the force of the law, that employers pay each and every worker a minimum wage of say B$350.00 per week regardless of skills; education and/or work history? Havoc in our national economy would almost certainly result.

With a mandated wage minimum, I further submit that many employers would be obliged, while watching their bottom line, to either lay off/terminate those employees who are barely working or productive and retain those who have proven their worth to the development and growth of the particular business, A significant reduced work compliment and selectivity in engaging prospective employees.

The flip side to this is the obvious fact that affordability and the cost of living are major concerns to the averaged, unwashed Bahamian, bar none. Today affordability is a myth as it has been estimated that more than 85 % of households here in New Providence, the traditional nuclear family; a set of live in parents and a child or two are living on the edge of financial ruin. Energy costs, such as utilities and gasoline are simply too high. Mind you, we do not produce or refine fuels. They are ALL imported at great costs, especially since the outbreak of the war over in the Middle East.

The average two bedrooms one bath; in a half way decent area runs to about B$1,000 - B$ 1,200 per month, unfurnished except for a stove and fridge. For a Nassau based individual to secure a residential mortgage, even for a clap board house is beyond the reach of 90% of Bahamians, employed or self employed. The cost of living is sky high. Utilities are too high. Gasoline and Diesel prices are hovering in the range of $7.00 per gallon due to any number of factors but especially the ongoing hostilities in The Middle East.

Over all the average Bahamian is catching real economic hell right here on Earth. In such cases one may well advocate for a legislatively mandate for a minimum wage in the private sector. This is of course a no brainer BUT what are the collateral consequences?

I have referred to several of them above.

The administration is considering increase the pay package for MPs’ across the board and that idea seems to be catching on, at least amongst the Parliamentarians!! I would respectfully admonish our beloved and enlightened Prime Minister to NOT bring such a proposal to Parliament at this time, may be during the first half of 2027 when the anticipated Budget Surplus kicks in. Like wise, broader discussions must be held with stakeholders and employers in the private sector BEFORE any minimum wage implementation, if at all.

In the meantime the Davis administration could follow the lead of newly appointed Prime Minister , the Rt. Hon. Andy Burnham, over in the UK. His government has announced the complete elimination of VAT on electricity bills and subsidization of public transport. I support the elimination on electricity but not for private public transport, like the so called omnibuses. Give the owners tax and licensing breaks if necessary but not a direct cash subsidy.

A last point for your consider Editor and that of your readers, is that the Davis administration may wish to declare a holiday on the collection of the Stamp Duty which the government collects and have been collecting for decades, for the rest of 2026. I believe that that stamp duty is in excess of $1.25 per gallon. Working hand and hand, the administration and the private sector could all win if appropriate sacrifices and cost cutting measures were to be implemented, in my view. To God then, in all things, especially finances, be the glory!!

ORTLAND H BODIE, Jr

Nassau,

July 26, 2026..