Politics at play in carnival budget

Wed, Feb 15th 2017, 09:13 AM

Due to political and economic considerations, Chairman of the Bahamas National Festival Commission (BNFC) Paul Major recommended to Prime Minister Perry Christie in January that the government not cancel Bahamas Junkanoo Carnival (BJC) this year, but slash the budget in half.
No doubt, paramount in the minds of Major, Christie and members of his government is the fact that it is an election year and there are many Bahamians who see carnival as wasted money.
On the heels of another downgrade of The Bahamas' credit rating, lingering questions over how $1 billion in VAT revenue is being spent, the wasting of $334,000 on shabby holiday decorations for downtown Nassau, and the aborted Caribbean Muzik Festival in 2015 that saw $650,000 in tax dollars go down the drain, the government might have a difficult time convincing voters that pumping millions of dollars into carnival again this year is a good idea.
It would likely become a major political issue at a time when unemployment remains in the double digits, and many see and feel no meaningful impact from carnival.
The government budgeted $9 million on the inaugural carnival, which took place in 2015, but ended up spending $12.9 million.
According to the commission, the 2016 carnival cost $9.8 million with the government subsidizing $8.1 million of that amount.
Writing to the prime minister last month, Major said, "The BNFC met yesterday after consultation with the financial secretary to factor his views into our deliberations.
"You should know that the commission is fully cognizant of the financial implications of BJC in the current economic/political environment and are guided accordingly."
Major then outlined for the prime minister the commission's views on what should happen with carnival this year.
"It will be very difficult to convince stakeholders and sponsors in the future that there will be an 'annual' carnival if we were to skip a year. In other places when they were confronted with difficult financial times, they cut back on the cost but never canceled," he wrote.
"We can hold the events with a government subsidy of $4 million (reduction of $4 million, down from $8.1 million in 2016), a 51 percent reduction as we move down the privatization path..."
He also said the commission and the government can make some "hard decisions".
These would include:
o Staging all of the events in the Cultural Village.
o Reducing Nassau's performances to two concert nights.
o Thursday night would be made available to the Ministry of Tourism or private promoters to host events.
o The Ministry of Tourism or private promoters could put on daytime events, if they so desired.
o Reducing Freeport costs to just carnival-related expenses with everything else being borne by the Ministry of Grand Bahama or the Ministry of Tourism.
o Reducing Unique Bahamas International Ltd.'s (UBI) cost (the production company).
o Reducing production cost and reducing marketing.
Major advised that song artists have already invested in their entries into the song competition, so cancelling will be a cost to them with no chance of recovery through prize money.
He also asked the prime minister to keep in mind that the Road Fever bands have already invested thousands of dollars in preparing for the Road Fever March and sold packages, which include the concerts.
Visitors have already made plans to visit The Bahamas for the BJC season, Major wrote.
He continued: "The investment of the past two years, just like any start-up business, is about to pay off, as ticket prices can now begin to go up because you now have a proven product to sell and you can drive down cost because the start-up marketing and other prep work has already been done.
"There will likely be more criticism for the wasted sunk cost of the previous two years if we walk away now.
"We would be going backwards in terms of improving the activities and experience available to our visitors."
Major also wrote: "Many Bahamians are looking forward to making money and participating in the BJC events next year, so you should be careful not to displease the many to satisfy the few."
He added, "The opposition is supportive of continuing carnival with greater privatization."
Major also advised that the commission plans to publish a privatization request for proposals in the first quarter of 2017.
"We know that it is a delicate balance, but we hope that you would be able to cash-in on the investment your government boldly made over the past two years to economically empower those in the cultural sector and others. You shouldn't lose sight of the original vision," he told the prime minister.
"We hope that you find our plans acceptable, because it is critical that we get cranked up with the song competition and other planning so as to ensure a successful season."
Bahamas Junkanoo Carnival -- the prime minister's brainchild -- has proven to be hugely controversial since its inception.
Last year, Free National Movement (FNM) Leader Dr. Hubert Minnis said a Minnis administration would privatize carnival.
"I think the entire thing would be re-looked at, and more private involvement," Minnis said.
"I think privatize it. Let a private entity deal with that. But let me, the government, concentrate on Bahamian culture."
He also suggested Junkanoo Carnival isn't Bahamian enough.
Christie has continued to dismiss the criticisms.
Ahead of last year's event, he said carnival is poised to become a "big event" that will benefit the Bahamian people "mightily".
He labeled the event a work in progress and said it's only going to "get better and better each year".
"I feel that the people now believe that this is here for good," Christie said.

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