The year 2015 is now in full swing and as the melody of the Auld Lang Syne fades for the time being, several Bahamians would have wrapped up their celebrations and are settling down into a year with expectations and aspirations. As we turn the page and focus on all that 2015 has in store for our country, there are quite a number of topics that we expect will receive attention and make news headlines.
This piece considers a number of such subjects and initiatives briefly with the caveat that this list is not exhaustive. If 2014 was the year that significant and game-changing legislation were tabled or passed in The Bahamas, 2015 promises to be the year that we begin to see and feel the impact of these laws. And so we explore in no particular order the top 15 topics that Bahamians will be keeping a close eye on during this year.
The economy and fiscal reform
The economy will continue to be a matter of discussion as forecasts point to a modest increase in economic growth for The Bahamas in 2015. This topic is interconnected with subsequent topics noted in this article and many Bahamians are hopeful that this year will be much better for them financially than the last one.
On a related note, the discussion on real fiscal reform will no doubt intensify following the coming into effect of the Value Added Tax (VAT) regime on January 1, 2015. It is expected that there will be a learning curve and we will have to work our way through the most significant changes to our tax system in decades. However, the public education exercise must continue and the Government must continue to work with stakeholders to address any concerns or issues. All eyes will also be on the selection of the VAT Comptroller, compliance efforts, the impact on overall consumption, consumer protection and social services initiatives to provide relief for the most affected segment of our society. As the government increases its revenue intake via VAT, the populace will also be watching how its spending is curtailed and financial discipline is exercised. In addition, the implementation of the fiscal consolidation plan and the Central Revenue Agency (CRA) is expected to receive attention in 2015.
Junkanoo Carnival
The inaugural Bahamas Junkanoo Carnival in 2015 will be on display both locally and internationally. While there were some concerns initially and opposition to the concept remains in certain quarters, we will be able to ascertain in a number of weeks whether the event can generate the level of economic activity that it is projected to spur. The actual and potential impact on our tourism product will also be assessed. Regardless of our thoughts or reservations on this new initiative, its success will not be confined to a few individuals but will belong to the nation as a whole. In the meantime, the Bahamian people will be watching to see whether we receive adequate return on our investment in this venture.
Financial services industry
The importance of our financial services industry cannot be emphasized enough. As the second highest contributor to our GDP, it is important that the industry remains viable and competitive. The government must therefore continue to provide the necessary support to help the industry navigate successfully through this difficult period of its existence. Congratulations are extended to Hope Strachan on her appointment as the new Minister of Financial Services as she continues the great work that was commenced by former Minister Ryan Pinder in this re-established ministry.
Industry participants expect an active year as the industry continues to evolve to meet the new global environment of increased tax cooperation and transparency. The expectation is that the government will move swiftly to pass the local legislation required to implement FATCA via the Intergovernmental Agreement signed late last year, put in place the structure and infrastructure to meet its obligations under the IGA and provide the necessary guidance to ensure compliance by financial institutions in The Bahamas. The hope of many in the industry is also that the volatility and job loss experienced in 2014 will be stemmed in 2015.
The health sector
The government has committed to the implementation of National Health Insurance (NHI) by January 1, 2016. This means that all of the necessary preparations, discussions, consultation and infrastructural developments will have to occur in 2015 if the aforesaid implementation date is to be achieved. The debate on the feasibility and affordability of NHI by The Bahamas at this juncture and based on our fiscal reality is expected to continue during 2015.
On a related note, the opening of the Critical Care Block and the upgrading of the health facilities in preparation for the introduction of NHI in 2016 will no doubt attract more discourse during the year. Ultimately, the government's resolve, determination and ability to be flexible in order to present the best possible version of NHI without increasing the burden on taxpayers and disrupting the private health insurance sector will be tested in 2015.
Trade unions
Last year was no doubt an active year for the labour movement and there were demonstrations as well as threats of demonstrations or strikes by several trade unions. Bahamians watched as the various unions took turns to place demands on the government and by extension the public purse. In certain instances, the threats and actions of the unions seemed like the nation was being held hostage for the benefit of union members.
While the role of trade unions is an important one and they ought to fight for the rights and interests of their members, the Bahamian people should not be caught in the crossfire or be made to suffer to any impasse in discussions. It is becoming apparent by the day that the populace are becoming impatient and intolerant of irrational actions or demands that threaten our way of life in the midst of fiscal constraints faced by our country. Nevertheless, the Bahamian people will be observing the actions of trade unions to see whether they are sensitive to our plight or disconnected from reality.
Crime
The issue of crime continues to be a vexing one in The Bahamas as we commence our voyage into 2015. The national discussion on capital punishment will no doubt surface on a number of occasions during the year with the suggestion that a referendum be held on this subject likely to re-emerge. The spotlight will be on the government's crime fighting strategies as we work to fight this menace to our society.
The Office of the Attorney General and the Judiciary will also be under scrutiny as was the case in 2014 as justice is sought by victims and family members of victims of crime. The Bahamian people will be looking to law enforcement agencies, civil society and all stakeholders to work together to reverse the adverse trend of crime in general and violent crime in particular in The Bahamas. The politicians on all sides of the political divide will do well to desist from using crime as a political football and propose solutions in 2015 as the populace has become weary of their antics in this regard.
Baha Mar
The hype surrounding the opening of the mega resort that is Baha Mar in late spring 2015 will continue to intensify until the doors are officially open. There are high expectations that Baha Mar will put a dent on the unemployment figures for The Bahamas with the creation of thousands of jobs for Bahamians. Our GDP is also expected to grow based on the impact of this investment on our tourism product.
In the aftermath of the opening of Baha Mar, the focus will shift to the marketing efforts and ultimately the success of the resort. The ability of Baha Mar to coexist with the Atlantis Resort and thrive rather than survive within our tourism industry is also something that many observers will be watching in its maiden year.
Stay tuned for the concluding part of this series as this writer seeks to highlight what I believe will be the remaining topics for discussion in 2015.
o Arinthia S. Komolafe is an attorney-at-law. Comments on this article can be directed to a.s.komolafe510@gmail.com.
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