2010/2011 Budget Debate Contribution - MP Branville McCartney

Mon, Jun 7th 2010, 12:00 AM

Mr. Speaker, I am thankful to the fine people ofBamboo Town for the confidence that they have shown in me by electing me to this place.

Mr. Speaker, it is during times like these thatone is even more humbled to be among the few Bahamians to occupy this honourable place because one need not go far to hear Bahamians vocalize their expectation that somehow we in this place can and will find a way to emerge victorious from these economic challenges, that we will find a way to rise above the external forces that place pressure on us, on the twin pillars of our economy, on the increasingly important agriculture and manufacturing sectors and, indirectly, on the services that can be provided by Government based on the revenue raised from those private sector contributors.

Mr. Speaker, it is not those persons who have trusted us with their hopes and dreams who, in the end, make the tough decisions with regard to the laws of our country. It is those of us who sit in these hallowed chambers who have final responsibility for assessing needs and establishing budgets. It is those of us who sit in these hallowed chambers upon whose shoulders rest the future of this great nation and in whose hands rest the decisions that will affect generations to come. And while it is not the decisions of others that create the laws nor establish the budgets, it is essential that we hear their voices and listen to their message and for that, Mr. Speaker, I wish to commend our honourable Prime Minister for listening to the cries of many sectors who had a message to deliver and were able to deliver it in person. Indeed I applaud the Prime Minister for his accessibility following the introduction of the 2010/2011 Budget less than two weeks ago.

Our Prime Minister has met with groups representing various and diverse interests, and he has listened to their message, afforded them adequate time to discuss aspects of the Budget and make their case about its potential impact on their businesses, their lives and on what they honestly believe its impact would be on jobs, security and the national interest. When people claim they are suffering by way of losing money, especially in these harsh economic times, we must show compassion and listen. So I would humbly suggest that the Prime Minister meet personally with those individuals. Perhaps, this same approach ought to be undertaken by the Prime Minister in connection with persons who claim to be effected by the road reversal of Blue Hill Road and Market Street.

Mr. Speaker, this was not an easy Budget year. I submit to you and to my esteemed colleagues on both sides of the aisle that there has never been a more complex and even, dare I say, demanding time to be in Government, for never have the needs been greater nor the resources to meet them more scarce. Yet, we are the Government and as the Government, we do not have the privilege of sitting back and criticizing. As the Government, it is up to us to act. And we must act not for what is good for today, but what will be good for tomorrow and the many tomorrows to come. To borrow a phrase from the late Norman Solomon whose wisdom continues to inspire more than a year after his body has left us, 'A politician thinks of the next election. A statesman thinks of the next generation.' Let us, in our deliberations as we continue discussions on the proposed Budget, think and act not like politicians but like statesmen.

Let us think like statesmen, concerned with the next generation. as we who make the decisions about how much revenue in taxes and fees should be sought, from whom such taxes should be gotten, how the funds derived should be spent, how much money should be borrowed and ultimately how we might create the environment for strong sustainable growth so that Bahamians find respectable employment and maximize their potential by pursuing entrepreneurial opportunities both here and abroad.

Mr. Speaker, Bahamians are among the most talented people on the planet and I say without fear of reasoned contradiction that with the right environment they, indeed we, can do as well as or better than any group anywhere. But Mr. Speaker, as I begin these remarks, I want to underscore the great and justifiable expectation of my constituents of Bamboo Town and those of every other honorable member’s constituency, which is this: That we will find a way to alleviate the pain and sense of hopelessness occasioned by this economic crisis in the shortest possible time and furthermore, that we will strive to create an economic environment that is less vulnerable to external forces, a physical environment that is greener and a social environment in which law and order is the order of the day and newspapers will have to look beyond police blotters for headlines. It is to those three areas that I confine my remarks: to adopting a budget that builds a strong and more diverse economy, to the continuing recognition of the perils of environmental carelessness and abuse and to the absolute and unwavering dedication to the near eradication of violent crime and the absolution of fear in our society.

This, Mr. Speaker, is the agenda for action which I believe this Budget must address, to strengthen the economy, to take all possible steps to protect our fragile marine and land environment and to wipe crime and the fear of
crime out with the same dedication with which we would wipe out a disease that was crippling our nation for that is exactly what crime and the fear of crime is doing, it is making us a nation afraid. We must become -- and we can
become -- a nation unafraid, unafraid of those who would hold us hostage for our peaceful nature is no match for their lawless behaviour and our gentleness is no match for their desperation.

As I address these issues: building economic strength, protecting the environment and the restoration of law and order, I wish to note that as we move forward we must remember that Bahamians, particularly those who are hurting, do not care who fixes the problem. What they care about is that it is fixed. Today, I call on members on both sides of the political divide to begin to work together not in their personal or political interests, but rather in the interests of the tens of thousands of Bahamians who are without jobs and more who will be added to that number in the days to come as young men and women graduate from high school and university. I call on you to act as Mr. Solomon said, as statesmen. Surely Mr. Speaker, having regard for the pain of so many, and having regard for our unique position in this country that we love above any other, and having regard for the uniqueness of these economic circumstances, we can muster the fortitude to come together. Can’t we in this place at least on this one occasion put patriotism above partisanship? Can’t we on this occasion allow the condition of thousands who now suffer to influence how we act in this place? Must we always allow political jostling to rise above every interest and every situation? Well Mr. Speaker, as for me, I am prepared to openly embrace every good idea whether it’s a PLP, a BDM, and NDP or an ABC idea. But at the same time, let me be clear, I am an FNM and as is evidenced by this Budget communication and our historical stewardship of the economy, we have good ideas, ideas that can prepare us to take our place in the global marketplace that will be our future just as developing our islands marked our past.

Let us focus first on matters in the Budget as related to the economy. First and foremost, we must begin to look at business with new eyes. In The Bahamas, perhaps because of the early history of the concentration of successful businesses in a few hands, we have, if we are honest with ourselves, viewed success in business almost with a veil of shame. Ask a businessperson what sort of year he or she had and even if it were the best year ever, the answer is likely to be, "I got by.' Why? Because success is suspect. With only publicly-held companies needing to file annual reports, privately owned businesses are not required to share information and there is an almost
unwritten rule about not admitting success for fear that it will cause authorities to look harder, employees to want more or criminals to target owners. We need to take ownership and the concept of success, to applaud and commend it, to celebrate the little business that started with one or two employees, created a product, found a market, linked with hotels or restaurants or financial services and grew, maybe now even exporting that product to other places. How do we encourage business? There are several ways. First, through incentives. We know about the new war between the states in the United States, don't we? It has nothing to do with north and south or with principles, who is right and who is wrong.

The new war is which state can offer which business or manufacturing plant or industry the best incentives for locating its headquarters or its new plant in their territory. They recognise that what is sacrificed in the short run is more than compensated for in economic benefits in the long run. Incentives must be reasonable and we must expeditously handle leases on Crown land. Business license fees must be reviewed for as they stand now, based on gross rather than net, they penalize success. We must find ways to support our small to mid-size businesses for they are the businesses that grow the economy. Just as we find ways to support environmental efforts, we must find ways to support business efforts whether it is through the Bahamas Chamber of Commerce or other business organisations and associations. We must find ways to make sophisticated technology more accessible to small and mid-size businesses. Through efforts like the Downtown Nassau Partnership, we can re-affirm those entities who are dedicated to revitalization. The movement of the container port to Arawak Cay will open up vast spaces for residential, retail and dining experiences along Nassau's spectacular waterfront. There are a dozen businesses that I could name today, that with a bit of encouragement, and start-up financing, could benefit from the revitalization.

In fact, Mr. Speaker, I cannot imagine why
some ambitious young Bahamian has not
already started organising a ferry service to
transport locals and visitors up and down the
harbour with drop-off points. The harbour is
our natural highway and an equally ambitious
person could find, that is lease or purchase,
property to create parking lot space at one end
of the route or the other. The more businesses
earn, the more money there is in the economy,
18
the greater the contributions to National
Insurance, the more likely it is that persons will
be covered by group health insurance, the
better the real estate market is, and until we
find a new way to collect revenue, the greater
the stamp tax or Customs duties generated.
We have long paid lip service to economic
diversification but the events of the past two
years abroad with the collapse of the artificially
inflated real estate market showed us in no
uncertain terms how critical diversification is.
Tourism will continue to be the golden goose
but we can no longer afford to count only on
tourism because relying on a goose that has to
19
fly in or be delivered is risky business at best.
The slightest storm can blow that goose off
course, a bad turn at the banks, a drop in the
real estate market, competition from other
destinations. What is lucrative is also
vulnerable and that is the very crux of what
makes the great dependence on tourism so
nerve-wracking. Any government has to deal
with external issues, but the wise government,
as I believe this Government is, ameliorates
those risks by shoring up other economic
delivery systems. In the coming decade, the
reshaping of Cable Beach and the rebuilding of
downtown with marinas, low profile
condominiums, professional rental space and
20
artists' lofts will transform the New Providence
economy. We must look, too, to Grand Bahama
and to the Family Islands. Yes, Mr. Speaker, we
are a nation of natural entrepreneurs and our
entrepreneurship will shine when the quiet veil
of shame over business success is lifted. Then,
and only then, will we be able to reduce,
though we shall never be able to eliminate
totally, the impact of external factors on our
economy.
Mr. Speaker, to create a thriving business
environment which in turn produces a strong
middle class populated by those who dream of
21
a brighter future, we need to improve our
education system and produce a strong
entrepreneurial class that is able to produce
goods and services not only for the local
market, but for export as well. We must not
only be the recipients of ambitious men and
women who come here to benefit from
opportunities, but we must do so ourselves. We
recognise the need for continued foreign
investment but just as powerfully and urgently
the need to turn out Bahamians who are up to
the task of starting, managing, operating and
owning their own businesses as well as moving
up the ranks in companies where they are
employed.
22
Mr. Speaker, we must create the right set of
circumstances for economic development.
Make no mistake about it Mr. Speaker, if one
cannot find skilled workers, one can only go so
far; and if a community is ravaged by crime,
few persons would be brave enough to set up
businesses in that community. And so Mr.
Speaker I shall turn my attention to those two
areas, education and crime, for the moment.
Mr. Speaker I would like to look at the
environment for a moment. I shall keep my
comments on this very brief for there are those
who know far more of the specifics and the
23
scientific language than I do. What I do know is
that when I drive to work in the morning and I
see the water, I fall in love with The Bahamas
all over again. When I see the Royal Poinciana
trees in bloom like they are now, I fall in love
with The Bahamas all over again. When I see
children at play on the beach or a boat out
sailing or the fresh fish at Fish Fry or the
cloudless blue sky, I fall in love with The
Bahamas all over again. Every day, nearly every
one of us who is blessed to live in this beautiful
country, falls in love all over again. We may do
it silently or even subconsciously but you
cannot be surrounded by the colours of the
bougainvillea and the clarity of the water
24
without feeling a tug at your heart. Mr.
Speaker, I ask that as we debate this Budget,
we make all provisions possible to protect our
love, to enforce legislation pertaining to
pollution, to continue, and please note, I used
the word continue to provide incentives for
low-energy use appliances such as the
reduction in this budget to 10% duties on
tankless water heaters, to encourage
conservation including incentives to build rain
water cisterns, white roofs to control heat, to
preserve our beaches, to develop Montagu as a
recreational site, to complete the work at
Clifton Heritage Park so that it may become the
national treasure it has the potential to be and
25
to protect the fragile ocean, bays and harbours
that are our heritage and our pride.
Mr. Speaker, before I was given the honor to
come to this honorable place by the fine people
of Bamboo Town, I spent countless hours
examining and being concerned with the
escalating level of crime in The Bahamas.
Moreover sir, as a practicing attorney for 20
years I am painfully familiar with the state of
affairs of the judiciary, which I daresay does not
adequately serve the needs of Bahamians.
Mr. Speaker, we cannot have a sustainable and
thriving economy with escalating crime,
especially serious crime. While there are no
26
statistics to bear me out here, I would state
without fear of reasoned contradiction that
many communities are without businesses
because persons are afraid that they might be
robbed. Beyond that Sir, we need not look very
far to see that unchecked crime has a
detrimental effect on investor perception and
economic development both in the immediate
term and the long term. Yes Mr. Speaker, the
events in Jamaica over the past few weeks
could easily have played out here in The
Bahamas.
While we watched the riots and the murders of
our neighbours to the south, we felt pity and
27
yet, who among us did not honestly breathe a
sigh of relief that it was there, and not here,
that such a deadly travesty was unfolding. Why
did we even consider that it could have been
us? Because while we have been shouting
about being a country of nation-builders, the
truth is we are losing our sense of community.
As I said once before, you do not build a nation
by shouting ‘We are nation-builders.’ You build
a strong nation by building strong communities.
Strong nations are built on strong communities.
For it is in the spirit of the community, in the
neighbours to your left and right, in the
28
interests you share, in the classrooms where
your sons and daughters learn, that we first
connect and we continue to connect, finding a
way to bond with one another. When we bond,
we do not harm each other. We look out for
one another. We watch each other's back. We
grow together and go together to the places in
our goals and our values that are better for all
of us, as a group, as a community, and, yes, as a
nation.
That is not where we are now. And as I have
said and will continue to repeat until we act on
it with all the determination and will that we
have as a nation, We live in Paradise, but we
29
are paralyzed, paralyzed by our fear. We are
afraid to leave our homes to go for a walk in
our neighbourhoods at night. Those of us who
can afford it live behind burglar bars, those of
lesser means behind closed shutters that block
the fresh air, keeping children inside in stifling
heat. What does it say about us that our burglar
bars have become status symbols? That those
with plenty money have the pretty ones with
metal leaves and fruit designs. What does that
say?
Indeed Mr. Speaker, organs of our society that
receive funding from the Government to deal
directly and indirectly with crime, must always
30
receive the requisite level of funding in order
not only to create an environment that is
conducive to economic development, but one
that seeks to protect the vast majority of lawabiding
Bahamians from thugs, Mr. Speaker.
Therefore, I was happy to observe that this
budget makes increased allocation to the
judiciary so that more judges can be hired in
order to reduce the embarrassing and shameful
backlog. It is not right, Mr. Speaker, that
persons whose lives have been affected by
alleged criminals are further victimized by a
system that is steeped in the molasses of delay
and chained to the subterfuge of ineptitude.
31
Mr. Speaker, the allocations to the judiciary and
the police send a clear message to criminals
and those would be criminals that there is no
hiding place in The Bahamas. It sends a
message that we have had enough of their
disruption of the peace and tranquility of our
fine country so much so that during tough
economic times when sacrifices are required,
and indeed are being made, we will not relent
in our pursuit to snuff them out of their
proverbial hiding places and bring them to
justice – swiftly.
I wish to commend the Government for the
appointment of top management within the
32
Royal Bahamas Police Force and for their
relentless pursuit to draw out and remove
those among their ranks who would bring
shame to the Force.
Mr. Speaker, it is easy for us to look at a Budget
communication and make our contribution by
asking that Government do this, add that, grow
the economy, protect the environment, say no
to crime. But pinpointing the needs and
priorities is only part of the contribution of a
Member of Parliament if he is serving his or her
country in the way that the people who elected
him deserve to be served. Suggesting how to
spend is easy, Mr. Speaker, but we must also
33
contribute to the discussion about how to raise
the money that will be spent. I now turn my
attention to revenue.
Government is much like any business, with the
exception that it is not intended to earn a
profit. There are many businesses that also do
not, but the distinction, of course, Mr. Speaker,
is that they wish that were not the case and if
they continue to not earn a profit, they will
have to shut their doors. Government cannot
shut its doors, despite the fact that California
nearly did and in the past few years there have
been some close calls. By comparison to certain
34
other places, the condition of The Bahamas
Government is far from critical, though it may
be on monitored care and what I am about to
suggest I hope will offer a measure of relief that
will allow the Government to come off the slow
drip that keeps the patient alive without
draining its reserves for as the economy
improves, the need for borrowing to provide
for jobs and capital improvements will lessen
but the debt service will remain unabated like
the cloud that hovers overhead on an
otherwise sunny day.
Mr. Speaker, I would suggest that we the
Government have the resources we need to
35
fund this budget and to reduce our debt
significantly right before our eyes. We do that,
Mr. Speaker, through enforcement. For too
long, we have sat on the fence with regard to
numbers. Do we legalize it? We know how
widespread it is, how much money is being
made, how much money changes hands on a
daily basis. Do we leave it as it is and not
legalize it? I submit to you, Mr. Speaker, and to
my esteemed colleagues on both sides of the
aisle that we get off that fence we have been
straddling and we land on one side or the
other, appreciating that there are perils either
way. If we legalize the playing of numbers in
The Bahamas, it has been estimated that we
36
can raise between $40 and $45 million
annually; money that can service and reduce
the annual debt. If we choose not to legalize
numbers, then enforce the law and fine those
who break the law. We can no longer afford to
pretend that it does not exist because we are
sending the wrong message. And make no
mistake about it. That message is coming across
loud and clear -- that we are unable, that is
right, unable to enforce the law because too
many people are breaking it so lawlessness, as
long as it is condoned by the masses, is
acceptable. It is no wonder that we live in
Paradise, but we are paralyzed, paralyzed by
fear. We have created an environment that
37
carries a mixed message. Break the law. You'll
get away with it if you just carry enough
members with you, like an adult version of gang
theory.
Gambling has the potential to be the greatest
new source of revenue for the Government of
The Bahamas. If it is legalized, Government
collects licensing fees and taxes just as
Government does now with casino licenses and
fees, paid twice daily. If it remains illegal,
Government benefits from increased
enforcement. If it against the law, it is time that
we treated it as illegal.
38
Mr. Speaker, while gambling is the largest
enforcement magnet netting up to $45 million,
there are many others. There is, I am informed,
millions in outstanding real property tax, and
Customs duties. With the installation of CCTV
(closed circuit TV cameras), we will be able to
enforce infractions that now go unheeded.
With CCTV, images can accompany automatic
fines which are linked to a vehicle license plate
number, the party notified, allowed to pay by
credit card or cheque by mail within a specified
short period of time, no more than 30 days'
maximum, or the fine is attached to their file
and their driver's license nor license disc cannot
be renewed until it is paid. It is an amazing
39
thing about enforcing the law. When you do,
people have respect for it. Think about it
Bahamians would not dream of getting into a
car in the U.S. without buckling their seat belt
or run through a toll booth without stopping to
pay the toll. Enforce the law and we will have a
nation of law-abiding citizens. From signage to
littering, from public swearing to traffic
offenses, enforcement not only generates
revenue, it produces citizens who respect
authority.
Now Mr. Speaker, I turn to a number of other
elements of the budget that are of concern to
the people of Bamboo Town.
40
Mr. Speaker the level of the country’s debt is of
concern to Bahamians everywhere. While I
have heard persons in the public domain speak
to this issue from the perspective that they
believe the recent growth in level of debt was
inescapable and others have advanced the view
that it was avoidable, there is unanimity of this
point: the growth in the country’s debt is not
sustainable. Mr. Speaker, our standard of living
would be at risk if something is not done to
arrest this problem. We cannot continue to
spend 15 cents out of every dollar collected by
the Government for interest payment alone.
Not only does that crowd out important
initiatives that must be pursued by the
41
Government, but it evidences the
unsustainable and unfair debt burden that we
will place on our children.
Mr. Speaker, I am no economist, but I
understand, as do most ordinary Bahamians,
that once a family borrows money for a car and
a house, very often they are so tied down they
can do much else but meet those
commitments. Therefore Sir, it is incumbent on
us that we live within our means as a country –
that we not live on the “high hog” at the
expense of our children.
That is why I was happy to read that the
Government has given special attention to
42
reigning in the debt not only by reducing the
rate of increase in the debt, but by seeking to
grow the economy so that the debt might
represent a falling percentage of our overall
economy. Those results are achieved in an
environment where belt tightening is required
and where we find ways to grow as an
economy.
In that latter regard, I was pleased to see that
the Government intends to spend $1 million, a
new initiative, on conduct trade fairs around
the world. Moreover, the Government
foreshadows the introduction of a Small
Business Act, which, I believe, would be of no
43
effect if it does not afford small businesses the
opportunity to get funding and enjoy unique
access to service the partial needs of the
Government.
Mr. Speaker, hardly a day goes by when I do
not receive calls from persons in Bamboo
Town, and often outside of my constituency,
who are seeking jobs – any job. And Mr.
Speaker, as often as it happens, my heart is
broken each time I say to them, “I am sorry –
but I am not aware of any openings at this
time”. Mr. Speaker, it is a fundamental
responsibility of governing to create an
environment that is conducive to job creation.
44
And less there be any doubt in this place or
elsewhere, people who are searching for jobs
don’t care, neither should they care, about the
world economic recession, nor do they care
about politics until the next election fever
sweeps everyone up. They just want a job!
Mr. Speaker, I believe the aforementioned
initiatives will assist Bahamians in finding
employment, but I want to offer a few more
comments on this subject. First, Mr. Speaker, to
those persons who are seeking jobs, I wish to
suggest that they should persevere and during
this period of transition, they should enhance
their skills by reading well chosen books and
45
attending training classes. They should not only
work on their technical skills, but as
importantly their deportment and general
attitude. They should etch in their memories
the pain of these tough times, so that when
they gain employment, those memories would
so inform their behaviour that no one would
want to terminate them.
But, also, Mr. Speaker, Bahamians are
industrious people. I urge that we use our
ingenuity to create brand new opportunities.
Mr. Speaker, as you are aware, the prudent
management of the economy by the FNM has
resulted in a relatively high level of foreign
46
reserves. Perhaps the Central Bank might view
this as an opportune time to reduce the prime
rate. Such a move would add millions to the
coffers of the Government and reduce the
monthly debt payment of all Bahamians with
mortgages. For instance, Mr. Speaker, a 1%
reduction in the prime rate would reduce
Government interest cost by $25 million and
give a Bahamian family that has a mortgage of
$100,000, an extra $1,000 per year.
Now Mr. Speaker, I end my remarks as I began.
The weight that each of us agreed to bear when
we placed our names in the political ring must
be real. The degree to which we are weighed
47
down by that heavy weight of responsibility
must be revealed in our willingness to put aside
our political differences for the sake of the
people we say we love. Let us rise above
political pettiness with our eye on the next
election and climb to the loftier place of
nationalism with our eyes on the next
generation.

 Sponsored Ads