The Ministry of Finance plans to offer businesses impacted by the disastrous roadworks a total package worth no more than $15 million. According to the Coconut Grove Business League (CGBL), a meeting took place yesterday between prominent members of the community and representatives of government. Compensation, involving a number of tax breaks and favorable loan programs, will be reportedly capped at $15 million despite losses believed to be several times that figure. CGBL spokesperson Ethric Bowe acknowledged that the current administration is strapped for cash. But in the case of entrepreneurs, the backbone of the economy, he felt government simply needs to come up with the cash. "Let's start with the fundamentals," Bowe said. "You need to be fair and subscribe to the law.
You break something, you fix it. This is not a matter to be debated. You are not doing anyone a favor. This administration needs to do what is fair and right." The disclosure by the CGBL serves as yet another blow in the ongoing New Providence Road Improvement Project (NPRIP). Roadworks throughout the capital, beginning under the previous government, have spiraled well over budget and fallen hopelessly behind schedule. CGBL, representing about 50 businesses, has estimated losses of approximately $40 million alone, not including the hundreds of Bahamians left unemployed.
The compensation program includes four key areas. Businesses impacted by the road works will receive a 10 percent break on their Bahamas Electricity Corporation (BEC) bill for a period of 18 months. They can also take advantage of six-months loan credit on customs duty. Attractive loans through the Bahamas Development Bank, amounting to no more than $10,000, are also on the table, and finally, businesses would be given relief on real property tax and business license fees for six months. One prominent member of the business community, who wished to remain anonymous, expressed strong outrage at the offer.
He said $15 million will not come even close to solving the problems. In fact, Bowe from the CGBL believes the claim at prominent supermarket chain Supervalue will easily exceed $15 million alone. "This administration has been aware of the problem for years. They spoke to it in their election platform," he explained. "So it isn't as if they don't understand the issues. The government borrowed money to build the roads. They can borrow money to pay us." Money aside, another major grievance for the CGBL is the fate of Baillou Hill Road and Market Street. As long as these roads remain one-way, entrepreneurs in the area believe that commerce will never be the same.
The organization claims that there is "more doubt than hope" that something will be done to fix the problem, based on its meeting with the Ministry of Finance yesterday. Bowe told Guardian Business that businesses need hope that the government is listening to these problems and can deliver. He called many businesses in the area "ghost towns". Meanwhile, a number of stores have already succumbed to the roadworks and closed their doors.
Jiffy Cleaners was one of the more recent victims, putting 40 people out of work. That said, while people are suffering now, Bowe said what's at stake for the current government is indeed their legacy among business owners in The Bahamas. "What I'm trying to get them to see, is 10 years down the road, when they are reading about this in school books, do they want to be on the right side of history?" he asked. "They have to look at themselves as leaders. How have you, as a leader, taken care of the interests you serve?"
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