The House of Assembly
Wednesday 13th June, 2007

Mr. Speaker;
I offer my congratulations to you and the Member of Parliament for Pineridge on your election to the offices of Speaker and Deputy Speaker.

I look forward to your bringing your parliamentary experience to bear on the office of Speaker so as to enable you to ensure the orderly conduct of the affairs of this House.  Importantly, also to ensure fairness and the protection of the rights of the minority.

I also offer my congratulations to the Prime Minister and his newly elected colleagues.

I thank the good people of Farm Road and Centreville for their extraordinary support in the General Election.

I offer them all my absolute gratitude for enabling me to secure my seat in Parliament without my having to engage in a personal constituency campaign.  The people of the area that is now Farm Road and Centreville have given me outstanding support.  I am one of them and they are part of me.  They have never broken faith with me.  They have lifted me to this place now for seven consecutive General Elections and I thank them all from the bottom of my heart.

Mr. Speaker,
I thank the people of The Bahamas for their support and those Bahamians throughout our islands who showed us such amazing love.

And finally, Mr. Speaker;
I thank my wife Bernadette and my children Stefan, Alex and Adam along with other members of my family for their support.  All during my service to the public life of this country, I have been blessed with strong family support and I am grateful.

It is also for me to express my deepest and most profound regret to the tens and tens of thousands of Bahamians who supported the Progressive Liberal Party; and to the many more who now wish that they had, for having to interrupt the work of transforming our Bahamas and building a stronger, brighter and more secure future for all Bahamians.

I have been in public life for 33 consecutive years.  This year marks my 30th year in this House of Assembly.

Throughout my public career I have worked had to earn the trust of the Bahamian people.

As Leader of the Progressive Liberal Party I sought to ensure that my party worked tirelessly to prove ourselves worthy of the trust reposed in us by the people of our country.

When we were elected in May of 2002 we dedicated ourselves to Governance with Vision.  Governance which recognized that one of the great challenges facing our country was the absence of a plan or successful strategies to arrest the decline in the population in some parts of The Bahamas including and most notably our southern islands.

Too many Bahamians were continuing to leave their island homes for New Providence and Grand Bahama in search of better opportunities for themselves and their families.  The prospect of dying societies and communities is real and must be confronted with strategies that work.

It was that particular charge that led me to introduce the concept of tourism anchor resorts to all major islands.  This Anchor Resort Initiative was intended to create a new economy in each such island, thereby creating the prospect of new employment and entrepreneurial opportunities for its residents.  It would also ensure that in providing the required infrastructure, it would be as a part of an overall plan in which the anchor resort would cause a return on the investment.

A good example of what I’m speaking about occurred in our bringing about the reopening of the Club Med facility in San Salvador.  It was the most modern of all of the Club Med resorts.  The FNM government had spent a substantial sum of money on the airstrip and did not get the operators to open the resort.  Consistent with our anchor resort commitment, we negotiated the reopening of the facility with appropriate incentives and brought about direct flights from Europe and cities in the United States of America.

Mr. Speaker,
This Anchor Resort Policy was immensely successful, resulting in major developments unfolding at South Eleuthera, North Eleuthera, Mayaguana, Exuma, The Berry Islands, Bimini, Rum Cay and Abaco.

Mr. Speaker;
Our vision was to establish a mindset or all encompassing ethos, if you will – in which the Bahamian people would be inspired to face the challenges of globalization with confidence and unlimited aspirations.

Ours was a vision that under the freedom of PLP leadership Bahamians would work together to construct a country in which everyone had the opportunity to serve, to participate and to attain their dreams of a better life.

Mr. Speaker;
I sought to establish a culture where there need not be any fear in supporting the political party of one’s choice.

I made a very strong effort to demonstrate to our country that FNMs appointed by an FNM government could work and be seen to work in important contractual positions for a PLP government.  I endured much criticism for my philosophical commitment to fairness in the workplace and my belief, that people would not bring their politics onto the job.

I left ambassadors in place; I left in place senior technical and other government officers hand picked by the FNM government.  My Government maintained the employment of some 300 people that the FNM had hired temporarily on the eve of the election of 2002.  I reached out to all Bahamians of ability and goodwill – white and black – regardless of political persuasion to help us in building the future of this country.  That is why I reject as utter nonsense the charge of racism leveled against us.  I fear that my actions of decency and fair play have now been undone in just 6 weeks.

Whatever is the explanation and justification for such negative actions it is clear to all that this results in even greater division and polarization in the country.

Sadly today, many professional persons in the public service or who do contractual business with the government have undergone tremendous indignity at the hands of this FNM government and many more now live with a constant fear that they will be singled out and victimized because of their perceived political affiliation.

People now feel that an angry, insensitive and in-your-face culture has been given birth.  It now appears that it is to be common practice to suspend all contracts entered into by a previous government within a specified period prior to a general election for review or cancellation.  It now appears that people who hold positions of authority can be moved or transferred regardless of their ability if they are thought to be supportive of the other side.  A sad and dangerous precedent is now being set.

I know that some Church leaders have called for healing after bitterly contested elections.  I myself have also called for healing on a number of occasions but it is now for me to say that one side alone can bring no healing and there will be no healing as long as people feel that they are being treated unfairly and indecently.

The record will reflect that I never transferred anyone from the Office of the Prime Minister, notwithstanding the information provided me as to who was loyal and who was not.  I expected all to perform at their best in the service of their country.  However I am judged by history, the one thing that is certain is that those who would succeed me will learn from what is happening now and are most unlikely to be as trusting as I was.

Perhaps this is as good an opportunity as any Mr. Speaker, for me to express my concern with respect to the disciplined forces in our country.  Like the Member for Bain and Grants Town, I have had cause for great concern over the political divisions that have come about within the police force and the many complaints of political bias against the force.

I have discussed this issue with the Commissioner of Police on a number of occasions.  It is fair to say that we shared mutual concerns and discussed the importance of his efforts to ensure that the police remain above the political fray and that politics not be allowed to contaminate camaraderie in the ranks and the public trust in the force.  I must now say that we are in grave danger of approaching that point.

I have noted with considerable interest the recent transfers of senior officers at the Royal Bahamas Police Force.  These transfers have come immediately after major structural adjustments were made to the Force and officers assigned to particular posts.  It is obvious that the new government has decided to cause these changes to be made.  I must so conclude because I was satisfied that the Commissioner of Police several weeks ago had completed his appointments, which – I would have thought – would not have been affected by a change of government.

There is one bit of advice I would seek to give with respect to these changes at this time.  It was my own considered view that the appointment of Assistant Commissioner Dames to a position that charged him with the responsibility of policing airports and ports in The Bahamas was an excellent decision.  Anyone listening to this debate concerning the significance of airports and ports to our national well being must assume that the government of The Bahamas appreciates the need to protect what is a lifeline to our country.

When the United States of America established their Department of Homeland Security in the aftermath of the attacks of 11th September; it was a message to the world that special requirements were being put in place to guarantee the integrity of American borders.  The government of The Bahamas, like other governments, was required to spend considerable resources towards satisfying the Americans that there was integrity in the enforcement of transportation regulations between our countries.

It is precisely because of our success in the anchor resort policies that more international airports will be established in our Family Islands.  This reality requires a very special effort on the part of law enforcement to ensure that notwithstanding our limited resources flights bound for the United States from new international airports to be established in places like Rum Cay and Mayaguana would have the benefit of the required level of security.

It just so happens that Assistant Commissioner Dames, with his personal qualifications, his significant experience with crime and security was very qualified to design an improved security programme for the Lynden Pindling International Airport and all the other international airports that would have fallen under his purview.  I had the opportunity to personally speak with him on this issue and anticipated that he would have been allowed to perform such a valuable service to his country.  In the circumstances, I trust that the Commissioner of Police and the Minister for National Security would understand the significance of my intervention.

My Government was committed to providing the Royal Bahamas Police Force with the human and material resources it needed to effectively combat crime.  We felt that the single greatest threat to our growing economy was the issue of crime and the fear of crime.  We believe that our commitment was unequivocally demonstrated in our support of the Commissioner in an unprecedented number of promotions.  In the year 2003, 256 officers were promoted.  In the year 2005, 430.  In the year 2006, 280 and in the year 2007, 701.

There is one point that I would make with respect to the promotions.  That is that I personally urged and supported the Commissioner to ensure that those officers who had been on the Force for a long period of time without ever having had one promotion and who had passed the requisite exam should receive every consideration.  I feel proud to know that I played a part – albeit a minor one – in facilitating persons who had languished on the Police Force as long as twenty years being promoted for the first time.  I once asked the question in this House of Assembly relating to this same issue on what does a father say to his children promotion after promotion in explanation for his not getting ahead, despite having passed the exam.

Mr. Speaker;
Our record is clear.  I have said before and I now say again: our record is unmistakably clear.  It is as unequivocal as it is undeniable.

Our record in managing the Bahamian economy is an exemplary one.  Just look at the tables in this new government’s Budget Communication.  The tables in Annex B speak volumes.  The economic indicators show positive results.  These tables show very clearly – and undeniably – that my Government effectively managed and steered the Bahamian economy up from the stagnation of 2001 – 2002 to the present situation in The Bahamas where the economic prospects are unprecedented.

Mr. Speaker;
It is an honour and a privilege to have this opportunity to comment on the 2007 / 2008 Budget Communication and the companion Budget Estimates on the recurrent revenue and expenditure as well as the Capital Budget Estimates.

Mr. Speaker;
At the outset I must pay great tribute to Mr. James Smith, the Minister of State for Finance in my Government who served as the Cabinet Minister with the specific responsibility of managing the financial affairs of the Commonwealth of The Bahamas.  My Government has drawn heavily on his economic and financial expertise and experience.  I could not have made a better choice.  The fact that he had enjoyed a distinguished career in the Public Service and was well known and respected for his integrity and awesome technical skills did much to anchor my Government.  But he brought much more to the table.  I will forever remember how he was able to use his groundings as an over-the-hill boy to assist my Government in designing and implementing strategies for the upliftment of the most disadvantaged in our country.

We wish him well in his future endeavours and thank him again for making the sacrifice to provide such meaningful additional service to his country.

Mr. Speaker;
When I became the Prime Minister and Minister of Finance it did not take me very long to understand that there were many external agencies at varying levels and in varying capacities engaged in the continuous assessment of the economy of The Bahamas.

The truth will therefore always be known.  It is the responsibility of those in public life to ensure that our people are supplied with the truth.

Mr. Speaker;
It is important to know the facts, to accept that facts are truth and that truth is the parent of trust.  Indeed, Mr. Speaker, truth is like gold.  You can bury it for five yeas, but when you dig it up; it will still be gold.

Mr. Speaker;
In my very first Budget Communication, I prefaced my remarks by stating that my Government had inherited the 2001/2002 fiscal deficit left by the FNM government and that we inherited the major portion of the 2002/2003 Budget which largely reflected the policies and expenditure left in place by the previous government.

The truth of the position required my Government to commit itself to eliminating the 2001/2002 fiscal deficits progressively in the ensuing Budgets and to restructure the Budget so as to progressively implement my Government’s policies and commitments.

The economic indicators provided by the Department of Statistics and the International Monetary Fund confirm our success in the management of our economy.  That is the truth.  Check the record.

Mr. Speaker;
One of the great advantages of the Westminster system of government, which we in The Bahamas have adopted, is that it provides continuity in public administration through a permanent public service.

The ministry of finance in The Bahamas is professional in its advice and assistance to ministers, regardless of political persuasion.  Their professionalism and integrity provides continuity in the nation’s affairs, facilitates the speedy and efficient transfer of political power and authority from one government to its successors.

The truth is that the Ministry of Finance using the very same officers would have co-ordinated the compilation of the Budget before the General Election ad would have proposed the basis on which the 2007/2008 expenditure estimates should be formulated subject to the review and final approval of Cabinet.

The truth is that officials, whether in the Ministry of Finance or the international agencies would know of my Government’s commitment to integrity, transparency, accountability and compassion; and the consequential positive impact on this economy.

The Prime Minister, in his Budget Communication at page 3, said “We want to build trust in government again”.

Obviously the half of the country that voted for the PLP will pay no attention to such a nonsensical claim.  Additionally, the quantity and quality of the billions of dollars in foreign investment puts this lie to the prime minister’s inane assertions about restoring trust in government “again”.

But he goes further to support his point on the same page; and I further quote: “International institutions such as the World Bank, the International Monetary Fund and the Inter-American Development Bank, increasingly point to the fundamental importance of establishing and maintaining trust in governmental institutions.  They maintain that growth and development increasingly depend on the strength and stability of a society.  Hence, where trust in the integrity and quality of government institutions exists, that is, where ‘good governance’ exists, economies grow and nations prosper”.

Mr. Speaker;
It would be difficult to find a better and more concise explanation of exactly why the economy of The Bahamas grew and prospered under my Progressive Liberal Party Government.

The prime minister in his Budget Communication said further; and I quote:

“Those who are entrusted with leadership responsibility ought also to have a clear sense of direction, a demonstrated ability to recognize and assess challenges ad a willingness and ability to make decisions.”

Mr. Speaker;
My Government was privileged to be entrusted with the leadership of this country.  We know that our record is a powerful one; and one of transformation.

I shall present a summary of some of my Government’s macroeconomic achievements.  I am assured that the facts are not only known; but they are undeniable.  For verification, the truth is in the tables attached to the Budget Communication.

1. Reductions in the GFS deficit from the inherited rates of 3.4% of GDP in 2002/2003 to 1.6% of GDP in 2007/2008.
2. The prudent management of government debt.
3. An increase in the rates of Recurrent Revenue to GDP to over 20% of GDP.  This is an important indicator of a healthy economy.  This attainment comes as a result of economic buoyancy and improvements in revenue administration and without government having to increase existing taxes or implementing new taxes.  This means that my PLP Government has managed the public finances so prudently that we were able to reduce the GFS deficit, improve essential public services and improve pay and conditions in the public service without any increase in taxation.  Through effective management, we ensured that our overall growth strategy generated the additional revenues which we needed.  That is what has allowed the present prime minister to say – as he does on page 26 of his Budget Communication that “the present revenue system continues to serve the needs of our country”.  We did it.  We made it so.  Our success was all the more significant when we factor in that we gave major concessions in real property tax and stamp duty for first home buyers in our first year in office.
4. Substantial pay increases for everyone in the public service, including the uniformed services.
5. I should also advise that a compensation study by international experts is underway to provide an orderly and equitable approach to pay settlement among the various public service groups and their report is expected soon.
6. Growth of 4.5% (In Real Terms) in 2007 and of 4% in 2008.
7. The inflow levels of Foreign Direct Investment – both actual and in the pipeline – are beyond the achievements in any previous sustained period in the economic history of The Bahamas since Independence in 1973 or anywhere in the region.

Mr. Speaker;
That is why this government should at the very least acknowledge the success and good works of my government.

We have left them a platform upon which they can continue with the building of our country and from which they can accelerate growth.

Mr. Speaker;
This Budget is being debated against the backdrop of positive domestic economic trends.  The economy is expected to grow by about 4.5% in real terms, indeed faster than the 2.3% growth rate projected for the U.S. economy.  Unemployment in The Bahamas has dropped to 7.3% and by all accounts, it continues to fall even lower.  Foreign and Direct Investments into the local economy are at levels unprecedented in modern Bahamian history over the last four decades. And, despite recent hikes in oil prices, the rate of inflation has remained moderately low at just over 2%.

Mr. Speaker;
We need not necessarily dwell for a long time on how our unprecedented success came about but suffice it to say that it was not by accident.  It was indeed the result of favourable international events; careful and deliberate policy formulation over the past five years; well thought out implementation programs; and above all, enlightened leadership with a clear vision for the future development of this country.

That vision Mr. Speaker embodied plans and programmes which among other things, included accomplishments in the promotion of tourism anchor projects in many of the Family Islands; arranging for the supply of potable water to many of our islands to make good on failed FNM promises; providing modern fibre-optic telecommunications links throughout The Bahamas thereby enhancing the security of the country by providing a sound communications infrastructure and enhancing telephone and Internet services as well hurricane, security, health and education services.  The telecommunications structure will also enable every Bahamian to benefit from e-government, from the Internet and from distance learning.

We designed and implemented an Urban Renewal Programme to deal especially with rebuilding the lives of disadvantaged youth, the elderly, the sick, the poor and their environs.

When I first heard of the FNM’s plans to dismantle Urban Renewal without their first trying to understand its value to communities, I concluded that they were simply trying to erase good works which we had done.

I thought of the many churches in Farm Road who were partners and had invested significant human and material resources in the programme.  I thought of East St. Gospel Chapel, Mount Pleasant Green, Salem Baptist, Church of God in Lilly of the Valley Corner, the Church of God of Prophecy on East Street and Evangelistic Temple, which is the home of the Farm Rd. band.

I thought of the extraordinary accomplishments of the Urban Renewal Programme and I particularly remember the poignant statement of Pastor Gary Curry that for many years they were trying to establish and outreach ministry over the wall and it took the Urban Renewal Programme to bring it about.

I have seen and shared the expressions of joy of young people whose lives were changed by their involvement as members and of the elderly who were delighted with this new intervention in their lives.

The final act that I performed as Prime Minister was on the Monday before the General Elections when I attended an Urban Renewal sponsored programme for the training and empowerment of young men.

Everyone knows of the international acclaim accorded this programme and the fact that police associations have determined that this is an effective model for community policing.  The advent of those special district constables has proven to be a very effective facilitator for peace and good behaviour in the community.

Mr. Speaker;
That is why this government must explain to this country why it sent the Grand Bahama Urban Renewal police officers back to their stations, effectively dismantling the programme.

In furtherance of our commitment to provide affordable housing for Bahamians, we built more homes in our term than the previous administration built in its entire two terms in office.

We laid the foundations for an appropriate system of National Health Insurance, knowing that it was one of the most important instruments of health care reform in our nation’s history.

We transformed the College of The Bahamas to the doorstep of university status and expanded technical and vocational training while at the same time, providing increased resources to law enforcement.

We liberalized the scheduled airline industry in The Bahamas, resulting in new opportunities for Bahamian entrepreneurs and improved passenger service through competition in the marketplace.

Mr. Speaker, the plan also included the rebuilding and refurbishing of Lynden Pindling International Airport.  We negotiated a new management agreement with the Canadian company Vancouver Services for the management and development of the airport into a world class facility.  This is intended to be self financing, with the end result being an international airport of which Bahamians can be truly proud. This is a transformative new initiative and one that could provide the basis for private sector participation in the development of other airports in The Bahamas.

We began an undertaking of major significance through a private / public partnership for the relocation of commercials ports to the southwestern end of New Providence and the accompanying redevelopment of the City of Nassau into a tourism mecca of world class standards.  This joint venture effort is well advanced with relevant studies, both environmental and business either having been completed or in the process of completion.

The construction of the Straw Market was intended to provide a grand architectural tourist attraction with many features.  Its completion was to be the commencement of the redevelopment of the City of Nassau.  It remains to be seen whether this government has the will or even the interest to withstand the pressure being applied in this matter of moving the commercial docks.

Mr. Speaker;
This takes on added importance when one considers the challenges that will be posed in transportation to the expanded Atlantis Resort, major development at the Hilton Hotel and ultimately to the new Ritz Carlton resort on Rose Island.  Not moving these docks will make certain the commercial death of all businesses east of Rawson Square.  Given the importance to our economy of facilitating easy access to these resorts, what is it that would prevent the government of The Bahamas from making the logical and sensible decision.  The City of Nassau simply will not be able to accommodate the volume of traffic.

Mr. Speaker;
My Government has in essence completed the tourism resort plant for the island of New Providence.  The proposed Bahamar multi-billion dollar investment is left for this government to give final approvals.  In my own best judgment, having been intimately familiar with the touristic challenges of Cable Beach, for there to be any kind of success there must be a redevelopment of the product.

I carefully examined the FNM government’s decision to sell what is now Breezes and Sandals on the basis of the real value to the country coming from the rebranding of the hotels and the complete renovation and refurbishing of them.  In essence, selling the Ambassador Beach for $7 million and the Royal Bahamian for $8.5 million was a bold decision, especially with their being a $16 million plus mortgage that the government agreed to pay, which meant that meant that when the mortgage was paid the government had given both properties away for zero dollars.

I would be the first to agree that the properties have made a considerable contribution to the maintenance Cable Beach as a destination.  I would invite the government in the circumstances to carefully examine the Bahamar proposal in which the Radisson Hotel and associated properties were sold with a concomitant commitment for $80 million to be spent on renovating that hotel.  There is no doubt in my mind that it will prove to be a sound decision.  Furthermore, when one comes to understand the magnitude of the impact of Harrah’s / Caesar’s Palace / St. Regis / W and other brands, there would hopefully be a new appreciation of the significance of that transaction to the thousands of young Bahamians who will be looking for secure employment similar to that offered today at Atlantis.

When one adds to the mix a newly renovated and expanded Lynden Pindling International Airport to the extent of hundreds of millions of dollars, a new South Ocean mixed use resort and casino and the Albany development, you have the completion of an extraordinary, transformative contribution by my Government to this island.

Mr. Speaker;
Clearly the positive turnaround in the economy came about as a result of my Government’s success is attracting tourism projects in islands throughout The Bahamas.  Amazingly, well over 400 foreign investment projects were submitted to the Ministry of Financial Services and Investment and as the Member for North Andros indicated there are 53 projects with a total combined value of $13.6 billion, which are currently under varying stages of development.

Mr. Speaker;
I have great confidence in the future of Grand Bahama.  Now that the elections are finished, Grand Bahamians will be able to see and feel what my Government achieved for them.

We believe that the Ginn project is a magnificent development for western Grand Bahama and that it will contribute mightily to the economy by virtue of being some 48 nautical miles from Palm Beach.  We were successful in bringing about a decision by the Harcourt group of companies to purchase the Royal Oasis.  In the process, they confirmed their intention to introduce world class managers for their hotel and casino facilities.

We look forward to the Barbary Bay development and the substantial impact it will have on employment and entrepreneurial opportunities in Grand Bahama.  We were pleased to introduce Associated Grocers or International Distributors by their local name in a new but very meaningful new business development in Freeport.  Their facility I am advised will be completed sometime in August when they would commence hiring some 200 Bahamians.  That group of companies are convinced that they will introduce further new businesses trading between China and The Bahamas.

When one adds the employment and continued expansion of the Container Port and the development of the new cruise ship port, which I first spoke to the owner of Carnival Cruise Lines about 3 years ago, it reinforces the view that Grand Bahama’s economy is poised to enjoy significant success.

Mr. Speaker;
This foundation for long term and sustained economic and social development of The Bahamas is, in my view, one which all present and future Governments ought to examine very closely and use, very prudently as a means to construct a Bahamas that is capable of withstanding and indeed overcoming the many challenges of the twenty first century.

Mr. Speaker;
In closing, let me say that as a government it is up to us as Bahamians to recognize that this country has been able to witness the inflow of capital that has impacted positively this country.  We cannot allow that to be destroyed.  Every single one of us must work toward ensuring that our people fully understand the relationship between their good behaviour and the success of this country.