The government's budgeted expenditure for travel and subsistence in the 2022/2023 fiscal year has increased from $14.8 million to $18.8 million.

The increases, which include totals for both domestic and international travel and subsistence, total $3,963,532.

The numbers are part of the government's revised figures in its 2022/2023 Supplementary Budget of Draft Estimates of Revenue and Expenditure.

Prime Minister Philip Davis tabled the report, along with the Mid-Year Budget Performance, in the House of Assembly yesterday.

There are increases in several ministries and departments.

The largest increase is in the Office of the Prime Minister (OPM) which saw an increase from $625,424 to $2.6 million.

The House of Assembly's travel and subsistence budget increased from $148,850 to $164,350.

The Ministry of Foreign Affairs saw an increase from $109,200 to $259,200.

The Department of Immigration also saw an increase from $1.9 million to $2.1 million.

There were also increases in the Department of Education, up by $420,000, and the Department of Housing, up by $65,000.

Much of the funds were reallocated from other budget line items.

According to the Mid-Year Budget Performance, between July and December 2022, the government spent $8.1 million on travel and subsistence compared to the $4.7 million spent during the same period in 2021.

The government spent $9.6 million on travel and subsistence in 2018/2019; $12.7 million in 2019/2020; $9.5 million in 2020/2021; and $10.6 million in 2021/2022.

Davis has been criticized for his frequent travels since assuming office in September 2021.

In 2021, Davis had to fend off criticism that his trip with a large delegation to Expo 2020 in Dubai was a waste of taxpayer money.

The prime minister has led delegations — often large ones — to several events in 2022, including the Commonwealth Heads of Government Meeting in Kigali, Rwanda; the CARICOM Heads of Government meeting in Suriname; the Summit of the Americas in Los Angeles, California; and a trip last December to Cuba.

In January, he traveled to Argentina to attend the Seventh Summit of Heads of State and Government of the Community of Latin American and the Caribbean States (CELAC).

Davis' trip to Bermuda last October, with a delegation of government officials and members of the Progressive Liberal Party (PLP), drew controversy.

According to the prime minister, the delegation included former Prime Minister Perry Christie, Minister of Foreign Affairs Fred Mitchell, OPM Director of Communications Latrae Rahming; PLP Secretary General Barbara Cartwright; PLP member Telia Saunders; Minister of Transport and Housing JoBeth Coleby-Davis; OPM Minister of State Myles LaRoda; Parliamentary Secretary Leon Lundy; PLP Senators Barry Griffin and Quintin Lightbourne; OPM Policy Advisor Kevin Simmons; OPM Permanent Secretary Creswell Sturrup and their aides.

While Rahming said the PLP paid for the trip, it was later revealed that the government paid for it and was reimbursed by the PLP.

The opposition has called on the prime minister to limit his travel and focus on issues at home including high inflation and rising crime.

Davis has said that his travels are "bearing fruit".

Prime Minister of Canada, the Rt. Hon. Justin Trudeau announced that Canada will be giving $44.8 million in new funding to tackle the climate crisis in the Caribbean.

Prime Minister Trudeau made the announcement at the 44th Regular Meeting of the Heads of Government of the Caribbean Community (CARICOM) at Baha Mar resort, February 16, 2023.

He said, “This funding will support projects with regional organizations like the Caribbean Community Climate Change Centre and the Caribbean Biodiversity Fund, that will:

• improve marine and coastal ecosystem management,
• increase water security, and
• help governments better respond to the impacts of climate change and natural disasters.”

Prime Minister Trudeau said Canada knows that one of the significant challenges many CARICOM countries face, in dealing with climate change, is accessing climate and concessional financing.

He said Canada applauds the Prime Minister of Barbados’ leadership on the Bridgetown Initiative, which has re-energized the conversation on International Financial Institution reform so they can better respond to the overlapping health, climate, debt, and liquidity crises affecting many CARICOM members.

He noted that in order to have truly sustainable, long lasting economic prosperity, countries need robust, dynamic trade.

The Prime Minister said, “The strong trade ties between us go back decades and remain strong today.

“In 2021, Canada’s two-way merchandise trade with CARICOM countries reached $1.9 billion, with bilateral trade in services reaching $3.9 billion.”

He said there are opportunities for businesses in all our economies in emerging sectors like clean technology, green infrastructure, renewable energy, and more.

“I want to announce today that Canada is seeking a renewal of its waiver from the World Trade Organization for our CARIBCAN trade program, to ensure that goods from the region can enter Canada duty-free beyond 2023.”

Prime Minister Trudeau said "CARIBCAN was first announced by Canada at this same meeting in Nassau in 1985, so it is only fitting we renew that pledge here today." 

 

Prime Minister of Canada, the Rt. Hon. Justin Trudeau announced that Canada will be giving $44.8 million in new funding to tackle the climate crisis in the Caribbean. Prime Minister Trudeau made the announcement at the 44th Regular Meeting of the Heads of Government of the Caribbean Community (CARICOM) at Baha Mar resort, February 16, 2023. He said, “This funding will support projects with regional organizations like the Caribbean Community Climate Change Centre and the Caribbean Biodiversity Fund, that will: • improve marine and coastal ecosystem management, • increase water security, and • help governments better respond to the impacts of climate change and natural disasters.” Prime Minister Trudeau said Canada knows that one of the significant challenges many CARICOM countries face, in dealing with climate change, is accessing climate and concessional financing. He said Canada applauds the Prime Minister of Barbados’ leadership on the Bridgetown Initiative, which has re-energized the conversation on International Financial Institution reform so they can better respond to the overlapping health, climate, debt, and liquidity crises affecting many CARICOM members. He noted that in order to have truly sustainable, long lasting economic prosperity, countries need robust, dynamic trade. The Prime Minister said, “The strong trade ties between us go back decades and remain strong today. “In 2021, Canada’s two-way merchandise trade with CARICOM countries reached $1.9 billion, with bilateral trade in services reaching $3.9 billion.” He said there are opportunities for businesses in all our economies in emerging sectors like clean technology, green infrastructure, renewable energy, and more. “I want to announce today that Canada is seeking a renewal of its waiver from the World Trade Organization for our CARIBCAN trade program, to ensure that goods from the region can enter Canada duty-free beyond 2023.” Prime Minister Trudeau said "CARIBCAN was first announced by Canada at this same meeting in Nassau in 1985, so it is only fitting we renew that pledge here today." 

If there is no increase in the National Insurance Board (NIB) contribution rate this year, the National Insurance Fund would lose $95 million, a Cabinet minister warned yesterday.

Myles LaRoda, minister of state in the Office of the Prime Minister who has responsibility for NIB, said his intention is not to shock Bahamians, but there are certain realities facing the social security fund.

Speaking of the looming $95 million loss, he said, "That is just not sustainable and we have everybody doing their armchair quarterbacking.

"The facts are this: The National Insurance Board will pay out $27 million each month in pensions. We are collecting $23 million. That leaves a shortfall of $4 million a month, times 12, that's $48 million.

"We've not even considered the industrial benefits and other benefits that are being paid out.

"There are statements that have been made [that you should go] and collect the outstanding [money] that is pegged around $30 million, if I heard that correctly; that's still only one month of contributions."

LaRoda noted that some of the issues as it relates to National Insurance are "not things that we can blame anybody for".

"Can we blame our citizens for living longer? No," he said,

"And so, if they're collecting their pension benefits, that can be as much as 20 years when it was about 10 years to 12 years in the beginning. This is where we are."

LaRoda also pointed out that in the nearly 50 years since NIB was established, it has only had one increase and that was in 2010 when the rate was increased from 8.8 percent to 9.8 percent.

"People are living longer; they're collecting more benefits," he noted.

"The ceiling has raised from $400 to $700 plus. These are the things that we are dealing with and if we have been losing money from 2016 for the past seven years, even those cash assets, the CDs that you had, you have to crack those. Why? Because the government cannot subsidize the National Insurance Fund.

"It's paid for by contributions, on investments, on rent that's being collected, so it sounds sexy that everybody has an opinion that one area is causing [the problem], whether it be management or whether it be administration costs; that is but a small part of it."

The minister pointed out that this month, around 44,000 people are collecting some form of pension benefits.

"That's just on the pension end," LaRoda added.

"We have a lot of people that are collecting disability benefits and others, so that's where we are."

The "Eleventh Actuarial Valuation of The National Insurance Board of The Bahamas as at December 31, 2018" reported that total annual expenditures have been higher than annual income (contributions plus investment earnings) for the NIB since 2016, meaning that the reserve is used to pay benefits and administrative expenses.

"As time passes, the investment policy is less and less aligned with the real financial situation of the scheme," the report said.

"The Pensions Benefits Branch is now in a severe disinvesting mode. The cumulative deficit (total income minus total expenditures) over the period 2019 to 2021 is expected to be $276 million, exacerbating the continuous decrease of the reserve."

It added, "Under the current parameters, the reserve for the Pensions Branch will be exhausted in 2028, one year earlier than in the previous actuarial review. Immediate actions are needed to restore not only the long-term financial sustainability of the scheme but, most importantly, the short-term."

The report - completed by the Actuarial Services Unit of the International Labour Office - said the required contribution rate to pay all expenditures of all branches during the next 60 years is 22.55 percent.

Higher unemployment benefits paid in 2020 due to the severe contraction of the economy because of the COVID-19 pandemic increases the required contribution rate to 23.05 percent from 2019 to 2023, the report said.

"An increase of the contribution rate by 2.0 percent (over the existing 9.8 percent) every two years starting on July 1, 2022 and ending on July 1, 2036, could restore the short and medium-term financial sustainability of the scheme," the report added.

"Because the contribution rate from July 1, 2036 is likely to not be sufficient in the future, it is strongly recommended that future contribution increases and their frequency be discussed by the stakeholders, and become part of a funding policy."

The report also said that considering the implications of an increase of the contribution rate, the schedule of increase should take into account the socioeconomic situation of the country and the government's priorities and be underpinned by agreements with social partners.

The Nassau Guardian reported recently, that the Cabinet of The Bahamas has approved a rate increase, which is expected to take effect July 1.

The Guardian understands that the approved increase is 1.5 percentage points.

Last week, LaRoda confirmed that Cabinet has made a decision on the matter, but he declined to reveal what that decision is - a posture he again took yesterday.

On Friday, Prime Minister Philip Davis - who last year said the government will be creative and innovative to avoid an increase - suggested that a final decision had not yet been made.

He told reporters, "... I continue to say that I am going to try to resist putting more burden on our poor and working class. Yes, we have looked at the matter. We understand that we have to do something and we are trying to identify exactly what we do.

"Increasing the rate is one of the options that we are looking into."

LaRoda said yesterday the government is looking at various recommendations made by the board and executives of NIB, but he did not go into details in that regard.

TOURISM, Aviation and Investments Minister Chester Cooper said former Prime Minister Dr Hubert Minnis was "irresponsible" when he told parliamentarians on Monday that millions of dollars were missing from Bahamasair.

Dr Minnis, during his contribution to debate on the 2022 Fiscal Strategy Report, alleged in Parliament Monday night that “millions of dollars” had disappeared from Bahamasair’s branch in Haiti, which he blamed on travel agents and baggage handlers there. #“Millions of dollars have disappeared from Bahamasair by travel agents in Haiti... and they have remained quiet,” Dr Minnis said. “Where has the money gone? #“Maybe, that is why you see Bahamasair suspend flights to Haiti. That’s a part of it.” #The leader of government business, Obie Wilchcombe, asked Dr Minnis to substantiate the claim or withdraw it. However, the Killarney MP declined to withdraw his comments. #Yesterday, Mr Cooper called the remarks irresponsible and said there was no missing money. #He said some $500,000 was sitting in a bank account in Haiti and that officials were hoping to soon recover it. #“I am advised that the former Prime Minister Minnis made some assertions that there was money missing in Haiti. This comment was most irresponsible. There is no missing money. There is an ongoing reconciliation matter,” Mr Cooper said before going to a Cabinet meeting. #“The amount is in the range of $500,000. The former prime minister indicated that it was millions of dollars missing. If he knows where the millions are, we would be happy to recover it. Bahamasair has indicated that the amount in question was in the region of $500,000.” #“It was a reconciliation matter. The matter is sitting on an account in Haiti and they expect it will be fully recovered by the end of this week so perhaps the (former) Prime Minister was looking for headlines on this point, but it’s a matter that’s being handled by the board and management of Bahamasair.” #In a statement issued last night, Bahamasair said Dr Minnis’ claim of millions of dollars being missing in Haiti was “not true”. #The statement said: “During the pandemic, Bahamasair suspended services into both Port-au- Prince and Cape Haitien, Haiti. During this period, certain administrative and reconciliation issues occurred within the company that provided handling and representation services for Bahamasair in Haiti. As a result, funds related to sales within Haiti were deposited into the bank in Haiti once service resumed.” #Bahamasair said a total of around $530,000 in deposits were made by the company’s handling agent from ticket sales, which had been reconciled with no dispute, and that those funds would be received shortly in the course of business. #There is also a reconciliation taking place, said Bahamasair, of a difference of “some $38,000 in bags and other fees, which the airline expects to have completed in short order”. #The company said: “The above constitute the complete reconciliation process for the airline’s affairs in Haiti relating to our handlers and we reiterate that this is purely an administrative matter.” #Cooper also addressed the suspension of Bahamasair’s weekly flights to Port-au-Prince, saying the move was made for security reasons. #“You may recall that recently, the Foreign Affairs Ministry withdrew our personnel from Haiti,” Mr Cooper added. #“It stemmed from similar concerns and that is the sole reason why Bahamasair has suspended its flight to Haiti. You may or may not know that this a profitable route for Bahamasair but Bahamasair is determined by its personnel and its equipment is of great value and, therefore, they have determined that until things are settled, they will return.” #On Sunday, Tracy Cooper, Bahamasair’s chief executive officer, confirmed to Tribune Business that the national flag carrier had suspended its flights to Haiti’s capital since January 28. #He said the deteriorating security situation in Port-au-Prince had upended the national flag carrier’s Haiti business model to the extent that flights to the northern coastal city of Cape Haitian instead are departing with 98 percent average load factors (passenger capacity). #The demand has forced Bahamasair to deploy one of its 138-seater jets to the route, marking a reversal from when Port-au-Prince would have been the prime destination and merited such capacity. #The airline suspended services to the Haitian capital after it was reported that five Bahamians from Bahamasair were unable to leave Port-au-Prince’s airport due to protests by police force members over gang-related killings of their comrades.

Dr Minnis, during his contribution to debate on the 2022 Fiscal Strategy Report, alleged in Parliament Monday night that “millions of dollars” had disappeared from Bahamasair’s branch in Haiti, which he blamed on travel agents and baggage handlers there.

“Millions of dollars have disappeared from Bahamasair by travel agents in Haiti... and they have remained quiet,” Dr Minnis said. “Where has the money gone?

“Maybe, that is why you see Bahamasair suspend flights to Haiti. That’s a part of it.”

The leader of government business, Obie Wilchcombe, asked Dr Minnis to substantiate the claim or withdraw it. However, the Killarney MP declined to withdraw his comments.

Yesterday, Mr Cooper called the remarks irresponsible and said there was no missing money.

He said some $500,000 was sitting in a bank account in Haiti and that officials were hoping to soon recover it.

“I am advised that the former Prime Minister Minnis made some assertions that there was money missing in Haiti. This comment was most irresponsible. There is no missing money. There is an ongoing reconciliation matter,” Mr Cooper said before going to a Cabinet meeting.

“The amount is in the range of $500,000. The former prime minister indicated that it was millions of dollars missing. If he knows where the millions are, we would be happy to recover it. Bahamasair has indicated that the amount in question was in the region of $500,000.”

“It was a reconciliation matter. The matter is sitting on an account in Haiti and they expect it will be fully recovered by the end of this week so perhaps the (former) Prime Minister was looking for headlines on this point, but it’s a matter that’s being handled by the board and management of Bahamasair.”

In a statement issued last night, Bahamasair said Dr Minnis’ claim of millions of dollars being missing in Haiti was “not true”.

The statement said: “During the pandemic, Bahamasair suspended services into both Port-au- Prince and Cape Haitien, Haiti. During this period, certain administrative and reconciliation issues occurred within the company that provided handling and representation services for Bahamasair in Haiti. As a result, funds related to sales within Haiti were deposited into the bank in Haiti once service resumed.”

Bahamasair said a total of around $530,000 in deposits were made by the company’s handling agent from ticket sales, which had been reconciled with no dispute, and that those funds would be received shortly in the course of business.

There is also a reconciliation taking place, said Bahamasair, of a difference of “some $38,000 in bags and other fees, which the airline expects to have completed in short order”.

The company said: “The above constitute the complete reconciliation process for the airline’s affairs in Haiti relating to our handlers and we reiterate that this is purely an administrative matter.”

Cooper also addressed the suspension of Bahamasair’s weekly flights to Port-au-Prince, saying the move was made for security reasons.

“You may recall that recently, the Foreign Affairs Ministry withdrew our personnel from Haiti,” Mr Cooper added.

“It stemmed from similar concerns and that is the sole reason why Bahamasair has suspended its flight to Haiti. You may or may not know that this a profitable route for Bahamasair but Bahamasair is determined by its personnel and its equipment is of great value and, therefore, they have determined that until things are settled, they will return.”

On Sunday, Tracy Cooper, Bahamasair’s chief executive officer, confirmed to Tribune Business that the national flag carrier had suspended its flights to Haiti’s capital since January 28.

He said the deteriorating security situation in Port-au-Prince had upended the national flag carrier’s Haiti business model to the extent that flights to the northern coastal city of Cape Haitian instead are departing with 98 percent average load factors (passenger capacity).

The demand has forced Bahamasair to deploy one of its 138-seater jets to the route, marking a reversal from when Port-au-Prince would have been the prime destination and merited such capacity.

The airline suspended services to the Haitian capital after it was reported that five Bahamians from Bahamasair were unable to leave Port-au-Prince’s airport due to protests by police force members over gang-related killings of their comrades.