2010/2011 Budget Debate - MP Kwasi Thompson

Wed, Jun 2nd 2010, 12:00 AM

Mr. Speaker

This contribution is by far been one the most difficult communications I have ever presented to this Parliament. It has not been easy to absorb all that is in this budget and then to present my reasons to support it I will admit took some effort. I say this being painfully aware of the difficulties people are facing. I understand that more people are unemployed, I understand more people have difficulties paying rent, mortgage and their light bill. This will be a difficult year for the entire nation without question.        

People must know that we in this place understand what they are facing and are sympathetic to their situation.

Mr.  Speaker                       

I met a young lady in my constituency she was laid off from the hotel sometime ago, she has 3 young children, her power is off, her cable is off, and she is thousands of dollars in arrears on her mortgage. She came with tears in her eyes asking for help. Her story is not a unique one.

Mr. Speaker

I must now explain to her that the government is spending less and asking the people to pay more.  I must tell her there is a possibility now that you will pay more for cars, transferring property, staying in hotels, electricity and sending something on a mail boat. There is really no amount of spin that will ease the pain. Even, if people understand it will not make it any easier. I am painfully aware of that fact. People expect and demand that we know their situation, feel their pain and help everyone in need. And I understand that.

 Mr. Speaker

We will be criticized, we have been criticized. I know that throughout  this debate the government will be called any number of things. And for some of it I understand. The reality is there is no amount of spin that will ease their pain. Although  governments say they will whipe every tear from every eye the reality is we are simply unable to. No government can.  But in spite of the critizism (and we will get a lot I am sure) we must do the right thing and not the popular  thing.

CHRISTIES jester to say bye bye-----

NOT FRIGHTENED OF THE LEADER WHO IS PREPARED TO MAKE THOSE CUTS AND TOUGH DECISIONS IN THE FACE OF AN ELECTION BUT MORE FRIGHTENED OF A LEADER WHO CAN’T MAKE THOSE KIND OF CUTS AND HARD DECISIONS IN THE FACE OF AN ELECTION

I submit that we must address this budget process by looking at the context of this budget.

BIBLE SCRIPTURES

1. Global Context

2. Context of the last 3 budgets

First Mr. Speaker

This strategy is not an uncommon one in the world. It is what wise governments are being advised to do. In the IMF World Economic outlook 2010 states clearly that under the heading policies needed to sustain and strengthen the country Countries urgently need to design and implement credible fi scal adjustment strategies, emphasizing

measures that support potential growth. these should include clear timelines to bring down gross debt-to-GDP ratios over the medium term. Also needed are reforms to entitlement spending that lower spending in the future but do not depress demand today.

 The mighty United States of America President Obama said it best when he saidwe cannot have sustainable and durable economic growth without getting our fiscal house in order”.

 He made statements like streamlining, ending programs all together, temporary freezing certain government funding, and in his words making “number of hard choices and painful tradeoffs not seen in Washington for many years”

 In the UK the newly formed Coalition has not only decided to cut the salaries of Cabinet Ministers (less than what the Bahamas propose) but have set to cut 6 billion from this years budget and have not ruled out adding to the VAT tax.

This is not what responsible governments want to do but it is what they must do.

Mr. Speaker

We have seen what happens when government spends to much and does not collect sufficient revenue. We see a clear example in Greece. It is because they didn’t take this kind of action that they now must freeze paying pensions, severely cutting civil servants pay and dramatically increasing sales tax.

 Mr. Speaker

ODRINARY GUY ON THE STREET

First  the more money the we as a country owe, the more expensive it will be for us to borrow, the more expensive borrowing becomes the more the government will have to spend it's budget on servicing the debt rather than on services,

 Secondly those who lender will stop lending us money (which will really be painful) or will only lend it to us if we make radical cuts to government services.

 Simply put we cut ourselves or be forced to cut by others

The Benefit really is in the long term that the government will have more to spend on services rather than on paying off loans.

Third we need foreign investment and if we allow our situation to continue this discourages foreign investment.

 Living on uncontrolled use of a credit card.

  Mr. Speaker

We must examine this budget in the context not only of what is going on around the world but also in the context of the previous budgets passed by this government. The reality is that there are many cases and I will demonstrate that we increased spending in many areas to cushion the blow of the global recession and even if there was a decrease it is still above the levels which the previous government spent.

This is a completely relevant point when someone criticizes

Lets look generally at Social Services

People need government help without question.

I am sure that we will get accused of causing more hardship on the poor. They will ask how could you decrease spending in social services now. They will let us have it I am sure.

But this is in the context that one of the first things done was to increase the budget by 12 million and each benefit was increased. Relief was granted on more than one occasion for electricity. Help given to the Sea Haulers. There was elimination of duty on citrus, fruit, oatmeal, frozen vegetables, cereals and bread. Therefore despite what is being said more people are being helped and they are being given more than ever before. And it is important to look at some of the details. For example circumstance and relief emergency desk assistance is being decreased by 1.5 million but on the other hand foster care increased by 57,000 national lunch program increased by 1 million family island operations increased by 270,000 and food for human consumption increased by 2.4 million. In addition Center for the Disabled National committee for the rights of children seem to be new allocations also the Bahamas Association for the Disabled  Children with Special needs and Council for the disabled increased.

 Mr. Speaker

The reality is though we can’t feed everyone, we can’t pay everyones light bill or rent. We would love to. I personally wish we had the money and could pay everyones bills but we simply do not. It is not possible.

Situation at Social Services

  1. I sympathize with the workers
  2. They will be forced to scrutinize more
  3. Volunteer Program possible.

 

We have been and will continue to be critised for reducing Education. I have heard ridiculous accusations about this government not caring about education or caring more about buildings than people. This is utter nonsense. Again one must look at the context of the last previous years.

One good example is the government scholarships over the years in 2007 2.6 million now this government will spend 7 million on government scholarships.

DISCUSS

Yes private school assistance is being decreased but most government school boards are actually being increased.

 DISCUSS THE context OF FREE COB and NEW SCHOOL IN GB

 YOUTH

Again this is an area that must be viewed in the context of what has been done over the last 3 years.

I know we will be accused of killing regatta and that we don’t care about our young people. I am sure someone will say that.

But let us examine this closely, we maybe decreasing contributions to civic organizations and youth groups but only after it was almost doubled by us in 2008 and it will still be more than was given prior to us coming into office. The same is true for subvention to elite athletes, youth enterprise fund, National high school leaders and National Youth Ambassadors, National youth month. Yes the Self Starter program is being decreased and to be honest I am disappointed but this wasn’t even in existence until this government created it.

NOTE: GRAND BAHAMA YOUTH PROGRAMS FROM 506 IN 2007 TO 60,000 IN 2010

HEALTH

MR. SPEAKER

Again this budget must be looked at in the context of the previous budgets. We must take into account the implementation of the prescription drug plan. Telemedicine for the family islands.  Further in context of spending 4 million on redevelopment and renovation at the Rand Memorial Hospital.

 Small Business Concessions

There are some benefits in this budget for example the small business holiday from business license fees. First of all this is needed, any assistance to them will directly help the economy. The money saved can help to employee an addition employee, pay light bill, or national insurance. Saving can range from 250 to 1250.00

EXTEND THIS TO FREEPORT GB PORT AUTHORITY

CONTEXT OF

  1. FIRST TIME EVER UNEMPLOYMENT BENEFIT
  2. THE CITY OF NASSAU REVITILZATION ACT
  3. AMESTY PROGRAM AT THE DEVELOPMENT BANK
  4. FAMILY ISLAND DEVELOPMENT ACT
  5. GAVE 1.7 MILLION TO YOUNG PEOPLE TO START BUSINESSES

Aggressive Foreign Direct Investment promotion thrust with investment promotion missions to key world cities, in partnership with private sector.

 New Small/Medium Size Business Development Framework to encourage their growth, given their role in job creation and sustained development of economy.

 Framework provides for some $10M, representing the consolidation of subsidies to BAIC, the Venture Capital Fund, Bahamas Development Bank and an additional $1M.

 Higher taxes

I know we will be criticized for these increases and the reality is people will pay more to purchase cars, to buy and sell land to enter and leave the country and to stay in a hotel.

This is the sad reality. It will hurt and I imagine it will not be easy for many people.

However to be fair again I repeat it must be viewed in context. Car duties are being increased but after we decreased duty on hybrid vehicles to 25% Even with the increased the duty is still lower than the range in Jamaica and Barbados.

Increasing departure tax and airport tax. This is also a tough one. I understand the need to keep cost as low as possible for the tourist. Do I believe it will cripple our tourist industry ---NO In fact it is still lower than Barbados and Jamaica.

Again look at the context. There is a 400 million dollar airport project going on which in itself will attract people, employ people add to the tourist experience.

The Stamp Tax increase on property transfers is also a difficult one. I know personally it will be hard for Bahamians to pay more. I am pleased though that the first time home owner exemption remains as this has been and will continue to be a great help to first time buyers.

Nevertheless it is going to be a more difficult year for many Bahamians who will be forced to make tough decisions in the same way the government is doing today.

Mr Speaker

Much has been said about the pay cut for politicians. Some say it doesn’t make a difference, some say that we should go without pay. Well…

One day we must decide what we want out of our politicians. Whether all we want is those who are already independently wealthy or whether we want the best people for the job. Secondly we do ourselves a disservice when we kill those in the position and then expect those who are better to want the job. Mr. Speaker

I am 34 years old I have a wife employed by the government and I have 3 very small children. I want a the best for my children I want to send them to good schools and colleges. I don’t drive a fancy car nor do I donor upon donors. My constituency I put person money every month to keep it open. Christmas, back to school mothers day fathers day funerals etc all come from personal money. I don’t believe this is unique.

I don’t complain either it was my choice. It is an honor to be in this place and to serve. But it comes with sacrifice. Will I feel the pay cut …Yes I will But I cannot complain.  There are those worse off than me and maybe if we can then others can as well.

 Cautious optimism based on:

  • Ø improved tourism performance;
  • Ø renovations and expansion at BORCO and Stat Oil;
  • Ø $400M redevelopment of Lynden Pindling International Airport;
  • Ø new Government Administration complexes in Grand Bahama and Abaco;
  • Ø magistrates’ court complex in Nassau;
  • Ø new Port at Arawak Cay;
  • Ø re-start of stalled tourism developments;
  • Ø $100M renovation by Kerzner International;
  • Ø and aggressive public capital spending.

 

 I close on this; my mid year budget contribution had a theme things were not good but they were getting better. I say today that this year will be difficult but it will get better.

This maybe a difficult season but it will not last forever,

Trouble don’t last always  Weeping may last for a night but joy cometh in the morning.

Tough times never last Mr. Speaker but tough Bahamians always do.

 Sponsored Ads