The Bahamian fiscal cliff

Sat, Dec 22nd 2012, 01:21 PM

Dear Editor,It is my sincere hope thatmost Bahamians, if not all,will enjoy the upcomingChristmas season and willfind time for recreation,prayerful sessions and qualitytime with family and friends.We have much to be thankfulfor despite the personal andcollective challenges.After the festivities are concludedand all of the hamsand turkeys eaten, the nationwill have to confront some seriousfinancial and fiscal issuesin January 2013. Playingpossum and seeking to buryone's head in the sand like thefabled Ostrich will not cut it.Successive governments,headed by prime ministerswho are lawyers by professionand who would have served asministers of finance, aidedand abetted by ministers ofstate for finance, who know orknew nothing about big business,have led us to our ownlooming fiscal cliff.Sir Lynden, God bless hissoul, was the most successful,visionary and pragmatic ministerof finance this countryhas seen to date. Say what youmay about Sir Lynden but healmost single-handedly createdall of our national organizationssuch as: the NationalInsurance Board; the Royal BahamasDefence Force, the firstgovernment subdivision, etc.At least if he spent the moneyone is able to actually seewhat he spent it on. Contrastthe other two prime ministers,also lawyers. Hubert Ingraham,a good Bahamian,may have meant well I amsure during his various termsin office. The question whichbegs an answer however is:Did we get value for the massiveamounts of money hewould have spent on our behalf?The purchase of the socalledBlake Road buildingwas a boondoggle and onewhich I submit was done as a"favor" for the boys. It shouldnever have been purchasedwith NIB funds, as it was nevera viable building. Millionshave been poured into thepurchase and never-endingrenovations to the extent, allegedly,in excess of $25 million.Successive governments"stopped, canceled and reawarded"the renovation contractsto their alleged politicalassociates and that buildingstill appears to be in its originalstate.Governmental operationsand ministries are housed inleased and rented propertiesat great expense, allegedly, tothe public purse. For instance,the Immigration Departmenthas been in rentedpremises at Hawkins Hill forgenerations.No one that I know of in thepublic domain knows exactlyhow much is being paid inrent and certainly not theterms and conditions or eventhe lifespan of the rental contract.The old City Meat MarketBuilding on Market Streetwas purchased to be used, allegedly,as the site for The RegistrarGeneral's Department.A renovation contract wasgranted and the building wasduly gutted. Nothing hasbeen done from then to nowand the forlorn building remainsa stark reminder of thewaste of public funds. Yet anothergovernment-ownedbuilding is located on John F.Kennedy Drive to the immediatewest of the Ministry ofWorks compound.Constructed to the tune oftens of millions of dollars andlit up to the highest everynight, it is under-occupiedand under-utilized. Yet, majorministries, inclusive of ourcourts, remain in leased,cramped and totally inadequatequarters.The Ministry of Tourism ison George Street downtownwhere staffers are obliged towork in an outdated environment.Potential foreign andlocal investors who are desirousof meeting with theminister of tourism and hissenior officials would not beimpressed with the ambience.The ongoing roadwork herein New Providence is the singlelargest cause for the massivefiscal deficits we are saddledwith. That this work hadto be carried out cannot be deniedbut the cost overruns tothe tune of $100 million areunbelievable. In too manycases, remedial work will haveto be done costing tens of millionsof dollars in the near future.The civil service is top heavyand there are too many individualsdeployed in ministriesand departments doing absolutelynothing of value. Arationalization must be doneand done soon. It has been estimatedthat 50 percent of theannual national budget goesto salaries, pensions and gratuities.Another 40 percent isrequired to actually run thegovernment leaving less than20 percent for infrastructureand other much needed societaland cultural works.Yes, dear friends, countrymen/women and enemies weare between a rock and a veryhard place due to the fiscalmismanagement of all of ourgovernments to date. It is nouse now, of course, engagingin a blame game as the Androsianbuzzards have alreadycome home to roost. It iswhat it is.The gold rush administrationmust reach out to allstakeholders regardless of politicalpersuasion and certainly,regardless of age. Early inthe new year the prime ministerand his economic teamshould convene a secludedconclave with business professionals,accountants, lawyersand the media to hash out viablesolutions to our own fiscalcliff. There can be no otherway.Failure is not an option andwe are in this slow boat overthe cliff together. If it succeedsin averting this loomingdisaster, the gold rush administrationand Perry GladstoneChristie (PLP-Centreville)could go down in our historyas the government that madea difference. In conclusion,then, I wish all a Merry Christmasand a prosperous NewYear. Despite it all, I submitthat our best days are yetahead of us.To God also, in all things, bethe glory.- Ortland H. Bodie Jr.

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