2007/08 BUDGET COMMUNICATION
SENATE OF THE COMMONWEALTH OF THE BAHAMAS
Wednesday, June 20, 2007
INTRODUCTORY REMARKS
Madam President,
I congratulate you on your election as President of this
Honourable Chamber. I have always admired you as a talented Bahamian
woman of strong spiritual and moral beliefs who was willing to put service
to country before self and to serve always with a basic sense of decency
and fairness.
I can only hope, that you do not shatter this view
and fall from this lofty position from which I now hold you.
Madam President,
I pray that petty politics will not get in the way of
doing what is right and while those in the in another place may be tempted
to either mislead or twist the truth for political expediency we are duty
bound not to be merely a rubber stamp, but to ensure that we are protecting
the interests of the Bahamian people, even when political expediency may
dictate otherwise. Having said that Madam President I wish you well
in your new role as President of this Chamber.
Madam President,
Before I commence my analysis and contribution to the
2007-2008 Budget, I wish to thank the Rt. Honourable Perry Gladstone Christie,
Leader of The Official Opposition, for appointing me to this High Office
and allowing me the opportunity to serve again in a meaningful way to the
development and advancement of our beloved Bahamaland.
I also wish to give special thanks to my lovely wife, Zarina; my three children, Edward III, Jared, and Zara; who represent an eternal source of inspiration for me; to my mother, Allardyce Scott-Fitzgerald; and my father, Edward P. Fitzgerald; for the fantastic job they did instilling proper values in me and encouraging me always to do my very best and to make a difference. I thank them for their continued support. To my siblings, family, friends, St. Matthew’s Anglican Church family, and all those who have wished me well I say, “Thank you”.
Madam President,
I do NOT intend to oppose any and everything the majority
in this Chamber proposes. I will, however, be guided by my moral
and social compass and a sense of social advancement and economic empowerment
for all Bahamians; guided always by the National interest and the underlying
philosophy of my Party and our social contract with the Bahamian people.
This contract is based on four pillars: political equality;
educational advancement; social reform; and economic empowerment.
Madam President,
I will therefore support all actions and measures which
propel the advancement of ALL Bahamians and I will oppose constructively
and diligently those actions which are against the national interest.
I pledge to serve with dignity, integrity, and credibility, bringing a
degree of imagination supported by facts to our debates and deliberations.
Madam President,
I am a firm believer that everything in life happens
for a reason and that everything in life is as it should be. I, therefore,
would like to share an experience I had on Father’s Day when I attended
Christian Life Church as a guest of one of my sisters. Of course,
because it was Father’s Day the sermon by Minister Leslie Knowles was focused
on essentially two questions that we, as fathers, should ask ourselves.
The first, “are we setting the example to our sons that we would wish them
emulate?” And secondly, with regard to our daughters, “do we represent
the qualities that we would wish for the husbands of our daughters to possess?”
Madam President,
The point being that to a great extent children learn
from example and to a great extent are products of their environment and
if we are going to ever be serious about affecting change, in our personal
lives and particularly in this political Chamber we must also ask ourselves
a pertinent question: “Are we upholding the virtues of truth and
respect so that those either watching or listening would be inspired by
what they saw or heard so much so that we could say with an open heart
that we are deserving of their trust?” I encourage all of my
colleagues to uphold these values to do their homework and remember that
although we may be opposite each other we are here to advance what is in
the interest of this country and all our people and we should not let petty
politics and political rhetoric stand in the way of what is right for Bahamians.
Madam President,
Having listened to and read the Budget Communication
by The Rt. Hon. Hubert A. Ingraham, Minister of Finance and the Hon. Zhivargo
Laing, Minister of State for Finance I was reminded of three sayings:
1) “Half a truth is often a great lie”. by Benjamin Franklyn.
2) The truism that some people never learn
3) A leopard never changes its spots
Madam President,
My colleague, Mr. Michael Halkitis, has already analyzed
the Budget Communication in detail, so I will focus on the major differences
in approach between the PLP and FNM to priority and significance as it
relates to:
1) A balanced budget
2) The projected surplus
3) The deficit
In doing so I intend to clearly show that the Prime Minister
and the FNM government have not learned from their past mistakes.
Madam President,
It is well known in financial circles that it is naïve
to attempt to balance the budget on a year-to-year basis. This is
even evidenced by a former FNM Minister of Finance who in the 1997 Budget
Contribution spoke about a balanced budget being a theoretical concept
“belonging more in the classroom where mistakes can easily be corrected
with an eraser”. It is bewildering to myself and many others that
now, in spite of this view the FNM took the approach of a balanced Budget
having seen the effects of this fiscal approach from 1998 to 2002 where
the economy of The Bahamas declined at such a staggering rate and our infrastructure
declined to dangerous levels, that the then Governor of The Central Bank
went so far as to say that the then FNM government under the leadership
of the present Prime Minister, had in fact squandered an opportunity to
build on the growth of his Administration’s first five years in office.
Some may argue that the Prime Minister has changed, whether for the better or worse is a debate for another time and place, but what is clearly apparent is that this Prime Minister and FNM Government are now repeating the same mistakes they made 10 years ago.
Some people never learn.
Madam President,
We are presently experiencing the greatest sustainable
economic growth this country has ever seen and instead of taking a more
focused approach on the long term growth and development of this country
this government is, in my humble opinion, taking the same short term approach
they took during the years 1997 to 2002 and in the process retarding the
progress made by the PLP government over the past five years.
Madam President,
The projection of a surplus of $25 million is really
a farce and is inconsistent with the FNM’s Trust Agenda. The strong
fiscal performance of the PLP in the past 3 years will show that at any
time we could have plugged in a recurrent surplus or in fact achieved a
balanced budget. In fact, although not projected, the PLP achieved
a surplus in the 2005-2006 Budget of $8 million. However, the PLP
Government was more concerned about the major capital spending required
to finish docks, Family Island airports, the provision of potable water
throughout The Bahamas, much needed social programmes and proper telecommunication
and electrical infrastructure.
Half a truth is often a great lie.
Madam President,
I will point to just two items for the sake of brevity
which clearly demonstrate why it is difficult for me and thousands of other
Bahamians to trust this FNM Government. The average contributions
by the Government to Bahamasair and the Water and Sewerage Corporation
over the last several years were approximately $21 million and $11 million,
respectively. In this Budget the contributions to these two vital
service providers to our community is $11 million and $5 million; a reduction
of some $15-$16 million below the average over the last couple of years.
Bahamasair is even more alarming when the Minister of Aviation, The Hon.
Branville McCartney, projects that the loss for Bahamasair will be in the
region of $16 million. Obviously he did not get the memo or
read his own party’s budget where it was stated that the projected loss
for Bahamasair would be $11million. What is also troubling is that
the cost of fuel has increased from $40 per barrel to just under $70 per
barrel over the course of the last 24 months. Therefore it is only
reasonable to assume that, all things being equal, the loss for Bahamasair
will probably be closer to $30 million. Yet this government is providing
for a loss of only $11million; a difference of some $19million.
Madam President,
Half a truth is often a great lie.
As you can see with just these two items I am able to show based on history, facts and figures that the entire surplus that is projected can reasonably be eliminated by Bahamasair and Water and Sewerage Corporation alone, and I have not even touched on the government’s exposure to liability from the reckless suspension and termination of contracts which can easily exceed $10 million. I will return to this later.
Madam President,
The FNM government continues to speak about the deficit.
Again, I am perplexed why men for whose intellectual capacity and their
understanding of the economy I have the highest regard would continue to
discuss the deficit in a manner in which I can only describe as disingenuous.
As any economy grows, and the economy is projected to grow at a rate of
4-1/2% in 2007, one would expect the deficit to grow. The PLP Administration
took an entrepreneurial approach to the growth of the economy, having regard
to all the positive indicators from not only international rating agencies
but also the financial institutions nationally that the country should
continue to invest in its infrastructure and in the much needed social
and educational programmes.
Madam President,
In simple terms, when the economy is good as all business
people know you invest and essentially the FNM administration is taking
an approach that we entrepreneurs would term A Manager’s Approach where
they are overwhelmed with the success the economy is now experiencing and
are trying to wrap their hands around it and slow its growth as opposed
to letting it grow naturally as it should.
Some people never learn.
DISMANTLING OF THE MINISTRY OF FINANCIAL SERVICES &
INVESTMENTS
Madam President,
As a result of the concerns raised by those in the financial
sector and representations made by senior members of that industry to the
Right Hon. Perry Christie where they were able to show that the financial
services industry in The Bahamas contributed somewhere between 25 to 30
percent or $1.5 billion to $1.8 billion to the GDP of The Bahamas second
only to tourism which contributes around 40% or $2.3 to $2.5 billion, the
PLP listened to the advice and rationale of these seasoned professionals
and the Right Hon. Perry G. Christie agreed that the Ministry of Financial
Services and Investments should be separated from the Ministry of Finance
so as to address the policy and regulatory needs of our second most important
industry and also to ensure that the focus and attention that it deserved
was received so that what happened under the FNM’s watch - where the entire
financial services market was on the brink of collapse - would not happen
under the PLP watch.
Madam President,
THE FNM under the Prime Minister has dismantled this
Ministry and brought it back into the Ministry of Finance.
Madam President,
Some people never learn.
This FNM Government is resorting to the same old structure and same old policies which proved ineffective 10 to 15 years ago. The Prime Minister has claimed that he has become more patient, listens more and has learned from his mistakes. I believe in the old Biblical saying that “a leopard cannot change his spots”.
Madam President,
Another truly amazing thing to me is that it is inconceivable
that about 70% of those employed in the financial services industry voted
for the FNM Government in the last election and this is the same Government
that, 8 years earlier, put their industry in peril and put many of them
out of work. Yet still they voted for the FNM and here we are again,
8 years later, and they are saying to The Bahamas and to those in the financial
services industry that regardless of what your contribution is to this
economy we do not take it seriously enough that it warrants its own ministry.
Madam President,
Some people never learn.
Not one person in the financial services industry has come forth with a loud voice to show their displeasure and disdain of these actions. Whether they are lacking in courage, embarrassed or simply in a comatose state of disbelief, I invite them and all who have interests in the financial services sector to speak up and bring pressure on this Administration to take them seriously and to give this industry the respect and credit it deserves.
Madam President,
While I am deeply disturbed by the dismantling of the
financial services ministry, I am horrified that included in the dismantling
of the Ministry of Financial Services and Investments was the Domestic
Investments Board.
DOMESTIC INVESTMENT BOARD
Madam President,
I wish to turn my attention to matters pertaining to
the now defunct Domestic Investment Board, formally under the umbrella
Ministry of Labour and Financial Services and prior to that, the Ministry
of Financial Services.
I would like to draw this Chamber’s attention to a quote
from Dr. Myles Munroe’s book The Principles and Power of Vision that says,
“You don’t need to be big to think great thoughts. You need to think
great thoughts to become big. That is the faith of vision”
He further says, in his book, that “You are not defined
by your past or confined by external factors” and also “Your greatest challenge
is not in choosing between good or bad but between good and best”.
Madam President,
These words best described the former government’s vision,
as articulated by the Rt. Hon. Perry G. Christie, for the inclusion of
all Bahamians in the economic boom that has gripped The Bahamas and unveil
what is being done to facilitate this objective. In fact it was this
vision and challenge that drove the principals involved with the Domestic
Investment Board to deliver the vision our forefathers, i.e., the delivery
of economic independence as articulated by the former administration.
One of the biggest challenges that beset successive administrations was finding a formula by which every enterprising Bahamian interested in becoming an entrepreneur could be facilitated. This challenge was further underscored by the perception – real or otherwise – that only the very rich or influential Bahamians can legitimately survive or go places in our country. The old ‘it’s not what you know but who you know’ adage.
As a new government back in 2002, striving to create opportunities for every Bahamian in our land, the former administration, under the leadership of Perry Gladstone Christie, heard the cries and began formulating proper plans to remove any barrier, perceived or real, that prohibited our people from participating in the modernization of this country and benefiting tangibly from the positive economic climate.
We knew that as a country, to stimulate growth, we needed a good injection of Foreign Direct Investments (FDI), particularly to jump start our Anchor Project Program. As our visionary leader, the Rt. Hon. Perry G. Christie, articulated it would, the growth of The Bahamas through the Anchor Project Program, happened and the new order of business was to encourage and facilitate the participation of new entrepreneurs
That was the backdrop of the formation – conceptually - of the Domestic Investment Board (DIB).
As you are all aware, the DIB initiative was officially
launched in February 2006, by His Excellency the Governor General the Hon.
Arthur D. Hanna, in his Speech from the Throne.
Understanding the importance of this initiative and the
need to definitively demonstrate our commitment to this model, we further
committed to “providing incentives and concessions for the more rapid development
of Bahamian entrepreneurial talent”, whilst we continue our strategy of
attracting high quality FDI’s.
The Domestic Investment Board (DIB), by this benchmark became a working reality and was a functioning work in progress going into the May General Elections.
In celebration of this reality, and the onset of facilitating real and meaningful opportunities to interested Bahamians, March 2007 was proclaimed Domestic Investment Month, and the accomplishments of Bahamian manufacturers and entrepreneurs was highlighted and shared with the nation.
Madam President,
The reality and enormity of the challenge that faced
the DIB team, was to ensure that Bahamians benefited from the current economic
boom, and for current and potential entrepreneurs to seize the moment.
The fact that a growing number of Bahamians were beginning to believe that
they could not only benefit from the economic boom but actually contribute
to the sustaining of it was also very real. So, from my vantage point
and that of many Bahamians who want to become employers, as opposed to
employees, this Government’s disbandment the Domestic Investment Board
initiative is nothing short of criminal.
The previous PLP government had been saying all along that we were in the middle of an economic boom and that billions of Foreign direct investments were committed to this economy. But, the FNM Opposition continued to deny it. The budget debate which concluded last week, validates our contention that we are doing well and will be doing exponentially better over the ensuing years. The Billion Dollar question is, how does this Government intend to ensure the equitable distribution to the many, as opposed to the few?
Madam President,
Under the former PLP Administration’s leadership, the
DIB mandate was as follows:
1. To ensure that Bahamians benefit tangibly from the
$18 billion of FDI’s, set to come through our doors over the next several
years, which equates to almost 4 times our GDP. In this vein, they
were challenged to invoke innovative thought processes;
2. To facilitate the diminishing or optimization of the
participation channel, i.e., the bureaucratic red-tape, normally associated
with local access to the Bahamas Development Bank or BAIC. In short
confidence in these vehicles had been eroded and more modern approaches
to entrepreneurial growth, outside of the formal educational approach,
had to be developed;
3. To convincing and encourage Bahamians to commit themselves
to a higher purpose and to believe that they can get a ‘piece of the pie’.
This spoke to a large degree to having to institutionally reform, or re-engineer, the current government institutions charged with supporting our enterprising Bahamians. However, it also speaks to a need to creatively identify opportunities for marrying Bahamian talent with foreign wherewithal or support, i.e., Joint Ventures, and opportunities to marry public and local private resources, i.e., Public-Private-Partnerships.
Madam President,
This Government’s knee jerk reaction, to dismantle an
initiative that was noble and productive, without discussing the pros and
cons with the Bahamian professionals that led the program is shameful and
a knock on the integrity and professionalism of reputable Bahamians.
Even more damning is the fact that the Government has no plans to replace this critical program. Most certainly the program cannot be replaced or effected by the institutions that most Bahamians shy away from, namely BDB and BAIC. Nor can it be operated from within the Ministry of Finance, by an already stretched staff, or division, where the particular skills and experience may not be present.
More telling, and the Bahamian Public needs an answer to this, how can the $3 mio (or $1 Mio – can’t recall) fund this program – unless this Government’s intention is to encourage the growth of petty businesses, only, as opposed to small, medium and large businesses. How many projects does this government envision will be funded by this ‘generous’ allocation?
Madam President,
Many Bahamians think big and, as a result of the work
done by the DIB, expect to be able to participate in a meaningful fashion
in this economic boom. A conservative budget to run an effective
Domestic Investment program is $1 mio for overhead and running costs. A
national commitment of $3 million to further develop domestic investment
is an insult to the intelligence of local investors and the Bahamian Public
at large.
Madam President,
It is my understanding that in excess of 100 applications
and proposals were presented to the DIB, during its short-lived existence.
Submissions, I must add from Bahamians across all political, race and religious
divides. This is no myth, this was very real.
Madam President,
The records reflect that after the message of empowerment
was carried throughout the country, and locals begun to believe that ordinary
Bahamians could benefit from god times, and not just the usual few, locals
were submitting viable proposals that ranged from Small Business Initiatives
to large Anchor Project initiatives.
Madam President,
A geographical listing of domestic projects under active
review, by the DIB and former administration, included proposals for Andros,
Crooked Island, Eleuthera, Grand Bahama, Inagua, Long Island, Mayguana
and New Providence.
A further delineation by sector indicates a breakdown that highlights proposals for Agribusiness, Live-stock, Fisheries, Food, Textile, Minerals, Hotel/Restaurants, Real Estate and “Other Services”. Other Services accounted for 43% of the proposals and the hotel/restaurant category for 26%.
Madam President,
The DIB, under the former administration, noting that
applications for Agribusiness, Livestock and Fisheries only account for
a disappointing combined 8% of the proposals, took definitive strides to
improve this ratio. Joint initiatives and strategic plans were formulated
and agreed in principle, with IICA (Inter-American Institute for Cooperation
on Agriculture) and BAPA (Bahamas Agricultural and Producers Association),
to underwrite and facilitate programs to assists Bahamians from every island.
In deed joint Town Meetings were held in Eleuthera, Exuma and Grand Bahama,
to educate current and potential entrepreneurs – on the opportunities and
assistance available in this area.
Madam President,
The response was great and there is no doubt that many
talented Bahamians were touched, as they voiced their interest in various
forums. However, it appears that this administration either does not understand,
or does not care about true empowerment, as they have unilaterally dropped
the Domestic Investment initiative.
Madam President,
How do we properly build and sustain an economy without
a huge injection of talent and resources in this area to complement the
efforts of the Ministry of Agriculture, and other Ministerial divisions
or departments. It has been proven that business as usual will not
work and has never worked in our agribusiness initiatives. This is acutely
evident by the fact that only 15 cents of every $1.00 spent in our economy
stays here.
Madam President,
In view of this, the DIB program gave priority, to and
provided approvals in principles, for a number of agribusiness, livestock
and fisheries proposals. It was also the announced intent to introduce
substantive incentive increases and innovative ideas to force growth in
this area.
Madam President,
To whom much is given, much is expected and the PLP Administration
took the necessary steps to deliver in the domestic investment arena.
However, under this Administration, the question is, without the DIB initiative,
or an alternate program, what is this Government’s short and long term
plan for addressing this problem?
Madam President,
In addition to the above, to ensure that domestic investment
initiatives and opportunities were linked to anchor projects, the former
Prime Minister ensured that specified senior officers, affiliated with
the DIB, were attached to Anchor Projects, via programs such as the Heads
of Agreement Audit Program.
This strategy was the former administration and Domestic Investment Board’s method of proactively identifying opportunities that Bahamians can benefit from – as opposed to settling for mainstream careers and jobs. Anchor Project partners, particularly the Ginn Development, embraced the approach and a number of familiarization and initial discussions have already been held.
Madam President,
This is one area that can really facilitate and spur
great growth and must be transparent, to ensure that legitimate Bahamian
talent and entrepreneurs have an opportunity to benefit from this boom.
The Billion Dollar question, once again, is how does this Government intend to ensure the equitable distribution to the many, as opposed to the few?
Madam President,
Much has been said about the opportunities, or lack thereof,
for domestic economic empowerment under the PLP’s Administration, and I
would like to share the following Pre-Election Key Performance Indicators
with this Chamber:
1. 35% of Atlantis Phase III B’s project work was awarded
to Bahamian contactors, and 13% to Local/Foreign JV’s, totaling $310mio
of the $674mio, to be spent on this project;
2. A further $68mio was awarded to Bahamian contractors,
for other projects on Atlantis, including Phase I and II renovations.
$50mio was paid to Local/Foreign JV’s.
3. There were 15 Local/Foreign Joint Venture contracts,
involved in the Phase III B project;
4. $140 million had been spent on the Ginn Project to
date, with locals actively participating and accounting for 92% of the
217 persons working directly on the project;
These snapshot statistics, which doesn’t include the Baha Mar, I-Group or other initiatives indicate that opportunities were and are still abound for those of us ready and able to accept the challenge to become bigger players in our developing nation.
The Billion Dollar question, once again, is how does this Government intend to ensure the equitable distribution to the many, as opposed to the few?
Madam President,
To date the answers and responses we have been given
are both discouraging and shameful. We have seen the dismantling
of the DIB program, the abrupt dismissal of honest and reputable Bahamian
Professionals, without cause and, most importantly, the abrupt cessation
of commitments to many business persons and budding entrepreneurs, re proposals
and strategic plans.
Madam President,
The DIB professionals and the former administration committed
to inviting key stakeholders and the public to participate in benchmarking
exercises, Public-Private-Partnership Think Tanks, IDB’s “Improving Business
Environment for Domestic Investment in The Bahamas”, and IICA’s “Promotion
of Agrotourism Linkages in The Bahamas” workshops, and many other innovative
initiatives.
Madam President, these initiatives were all geared to prepare and empower an entire nation to benefit from the great economic times introduced over the past 5 years. What happens now? What can we expect, by way of innovative, proactive policies and programs to provide benefits for the ordinary business person and aspiring Bahamians?
Madam President,
Commitments were made by way of the DIB program, a Government
sponsored initiative, to the Bahamian Public. When, where and how
does a Government’s commitment cease? When, where and how does a
Government’s word cease to be its bond – particularly when it speaks to
a fundamental truth and right of the Bahamian People? I need to ask
these questions – on behalf of every Bahamian person, who is interested
in nation-building.
In closing I would like to add, in the words of an Arabian Proverb, “Four Things come not back - the spoken word, the sped arrow, the past life and the neglected opportunity”.
Today is our future, the investors are no longer at the bar – they are here! The past is behind us; we must be mindful of our history but take full advantage of today’s opportunity. Opportunities neglected are opportunities lost! Under the leadership of the former Prime Minister, the Hon. Perry G. Christie, our vision was to embrace every opportunity and create others - It was all about vision, teamwork and execution, for the Bahamian People.
Madam President,
The signs of exponential growth are all around us.
In the construction industry which has traditionally been a key indicator
as to the strength and sustainability of our economy. The reports
coming out of the Ministry of Works with regard to the status of the construction
industry is staggering. Construction stimulates the economy directly
by job creation, revenues from imports and business license fees, and indirectly
with the demand for ancillary goods and services.
Madam President,
The value of approved building permits in New Providence
for 2006 totals some $661,056,818.45, a whopping increase of 44% over the
previous year. Building permits for New Providence also showed a
significant increase from $762,217 in 2005 to $1,131,873 in 2006 indicating
a 48% increase in building permit fees collected by the Ministry of Works.
Staggering!
Madam President,
With regard to the total number of housing units approved
for 2006, there was also a marginal increase of 1.8% totaling 2,847 units
for last year.
Madam President,
The building inspections as performed by the Building
Control Division of the Ministry of Works showed much activity as a result
of the expanded economy. There was an increase of 19% in the number of
buildings completed in 2006 totaling a value of $203,181,628. Astounding!
A review of the records also reveals that the number of construction starts
for 2006 were up by some 27% over the previous year requiring building
inspectors to carry out some 1,261 inspections. The value of these
structures totals some $201,957,286 representing a 3% increase over the
previous year.
Madam President,
Furthermore, the Building Controls Division’s records
also show that there were some 1,865 housing units completed during the
year 2006 and the housing unit starts in 2006 total 1,638 indicating a
6% increase over the previous year. In Abaco the value of approved
building permits were as high as $111,401,166.
Madam President,
Finally, even on the Island of Grand Bahama, despite
economic hardship, as a result of Mother Nature, the statistics clearly
show that Grand Bahama is well on the road to recovery and the construction
industry in Grand Bahamas is well and very much alive. Statistics
show that in Freeport during the year 2006 there was a 73% increase in
approved building permits with a construction value of $186,165,000. Incredible!
Additionally, for the same period there were 345 construction starts with
an economic value of $55,543,685. It is interesting to note that
three-quarters of this construction was in the area of residential development.
Madam President,
It is clear from the economic indicators that the construction
industry is very active as a direct result of the vision and policies of
the past PLP administration.
HOUSING
Madam President,
The provision of adequate housing for all Bahamians lies
at the core of one of the pillars of the PLP’s philosophy. Our party
believes that housing is a fundamental right of every citizen and that
we have the responsibility to ensure that those persons who qualify to
own their own homes and have been waiting for years upon years to occupy
and enjoy decent affordable housing should be able to do so and for those
who do not qualify, we are duty bound to provide the environment to enable
them to advance themselves economically so that they too will enjoy this
fundamental right.
Madam President,
In 1992 the FNM constructed 30 new homes. In 1993
they constructed 18 new homes. In 1994 they constructed not one single
home and in 1995, their fourth year in Government, they constructed 3 new
homes, bringing the total constructed units for four years to 51.
Compare this with the PLP Government which between May 2002 and May 2003
completed 120 new homes, in 2003 367 new homes were built, in 2004 660
new homes were built and up to June 2005 140 new homes were built bringing
the total to 800 new homes in 3 years compared to a dismal 51 by the FNM
in four years.
Madam President,
Based on the FNM’s record in Government, myself and many
other Bahamians have no confidence that they are serious about providing
affordable housing for the many people in this country for single mothers
and those who are economically challenged. The Speech from the Throne
does not give myself and those I mentioned any comfort whatsoever, as it
talks about “the construction of 600 affordable homes will be facilitated
by providing either fully serviced lots or newly constructed houses”.
Madam President,
With all due respect, if there has ever been an instance
of people playing with words in such a manner so as to confuse and possibly
mislead the public then this statement would rank high in that number.
This can be interpreted as meaning that they will build 600 homes in one
year, that they will provide 600 fully serviced lots or that they will
do a combination of both. It is well known and accepted in the construction
industry that the Government is able to negotiate a price per square foot
for building residential homes which is probably about 25 percent lower
than the average cost per square foot. So what good does it do a
person to be granted a fully serviced lot when they may have been struggling
to meet the commitment of a Government provided home and now to be told,
“Here is the lot, go and fend for yourself”. Again in this Government’s
haste to attempt to match or exceed the accomplishments of the PLP, they
have come up with another ill- conceived, irrational approach to change
and detract from the good that the PLP did. The simple solution to
this is start building house, don’t play games with the Bahamian people
using this ambiguous language – get busy working!
SUSPENSION OF CONTRACTS
Madam President,
I will show that the suspension and termination of contracts
was:
1. inappropriate, irrational and lacking
in wisdom;
2. victimization o the highest order;
3. illegal and inconsistent with a
“Trust” Agenda;
4. very costly – likely to cost the
Bahamian taxpayer in excess of $10 million.
It is in light of all of this approved economic activity
that I am most troubled by the abrupt and reckless decision by the FNM
Government to suspend or terminate some $80 million worth of contracts
that were awarded during the final months of the past administration, especially
when the majority were foreshadowed by the 2006/2007 Speech from the Throne
and the full $80 million did not mature during this budget cycle.
Madam President,
I am deeply saddened because some of these contracts
were held by young, qualified Bahamians, like me, like us, who believed
in the Bahamian dream and their God-given birthright to sit at the table
of economic empowerment in this country. This FNM Government has
shattered many of those dreams and dampened the spirit of many by
their inappropriate and irrational behavior.
Madam President,
Such callous and insensitive actions towards honest,
hardworking Bahamians really has no place in our society in this day and
time. We will fight tooth and nail against any sort of victimization,
oppression and regression.
Madam President,
It is beyond doubt to me that the dark cloud of victimization,
political pettiness and reckless endangerment has now smothered this Bahamas
and the mistrust is now suffocating a vast majority in this great country.
The level of victimization is clearly far beyond anything we have seen
since those actions perpetrated by the now Prime Minister and FNM when
they were elected to office in 1992.
Madam President,
The leopard cannot change its spots.
Why is it that 15 years later, in spite of all the advancements we have made as a nation toward political maturity, that this dark demon of victimization has now resurfaced in such a glaring and intimidating fashion?
Madam President,
It is unfortunate that the Prime Minister and his Government
have not continued the mature and responsible path that the country was
on where the notion of idea exchange and creativity were beginning to become
the norm and this issue of destroying people in the name of petty politics
was becoming a thing of the past. Now we are back to the days
of intimidation where contracts of trust are suspended and broken without
regard to the law. As Bahamians, we should be about nation-building
and building our people and not the destruction of hardworking, honest
Bahamian men and women.
STRAW MARKET
Madam President,
The contract signing ceremony for the construction of
the Straw Market took place on Friday, February 16th, 2007. The Hon.
Bradley Roberts said,
“Well wishes for the contact signing to construct a brand
new state of the art Straw Market that our detractors said would never
be built. The fact of the matter is that the FNM Administration sought
to place the straw vendors in an old warehouse on the Prince George Dock
at a refurbishment cost of $3,030,000. Perry Christie’s PLP Government
will place the vendors in a $22 million construction cost building on Bay
Street. It is clear as day that the FNM Administration did not want
the straw and craft vendors to return to Bay Street.”
The historical significance cannot be underestimated or
undermined. The Market has assisted greatly in the education of many
great Bahamian leaders and advanced the economic status of many of the
influential families today. In fact, at least one of the sitting
PLP Parliamentarian’s mother is still a fixture in the Straw Market.
In closing the Minister said: “To this day, this commitment
will be the largest sum of money ever committed to any government
constructed building funded by the Government of The Bahamas.”
Madam President,
I am particularly alarmed by the termination of the contract
for the construction of the straw market on Bay Street and the derogatory
remarks by the Prime Minister in another place with regard to the qualified
Bahamian contractor, Mr. Ashley Glinton, who was awarded the contract.
I would go further and say that, had those remarks been made outside of
that other place, the Prime Minister may have exposed himself to a libel
suit. It is ridiculous to suggest that Mr. Ashley Glinton could be
entrusted by Kerzner International with a $40 million contract to build
the latest phase of the time share units on Paradise Island, but is somehow
unqualified to build the straw market at a price of $20 million.
Madam President,
In suspending some $80 million in contracts, and more
recently, terminating, this contract with Woslee Dominion Construction
Ltd., the Government has exposed itself to millions of dollars in liability
probably in the region of $10 million.
Madam President,
Having been involved with many commercial construction
contracts myself, I am fully aware of the implication of any suspension
and/or termination as it relates to the preliminaries and tangibles and
intangibles. I am told that until the contract for the Straw Market
was officially terminated, the damages per day were running at approximately
$10,000. So with regard to the liquidated damages for one month this
is already in the area of $300,000. Furthermore, I am advised that
the damages in relation to the tangibles and intangibles of the straw market
will more than likely be in the area of $2 million, therefore, the final
costs to the people of The Bahamas for this hasty and irrational act would
be somewhere in the region of $2.5 million.
Madam President,
I use the word “irrational” because there is no other
way to describe why this contract was suspended and later terminated.
Let me elaborate. The facts in a nutshell are that a great deal of
time, effort, research and money were put into the design and location
of the straw market. My research with persons from the Nassau Tourism
Board, the Bay Street Redevelopment Board, the architect and engineers
involved in this process over the past four years convince me all were
in agreement that, bearing in mind the redevelopment plans for Bay Street,
the most suitable location for the straw market was at the site where the
old straw market was. It is accepted by all that the straw market
is in fact THE anchor tenant on Bay Street, and as the anchor tenant it
needed to be in such a location where persons would have to walk past all
of the tenants i.e. the Bay Street merchants to get to it.
Madam President,
Again, this is a concept with which am very familiar,
and one does not have to be in the commercial real estate industry to appreciate
the wisdom of this thinking. The 3 keys to success in commercial
real estate are location, location, location. Having decided that
this was indeed the best location after studies were done to see whether
or not it would be at Prince George Dock, Arawak Cay or some other location
on Bay Street, and having decided that this was the best location, the
design of the building and its functionality then came to the fore.
After much research, deliberation and consultation with various consultants,
professionals and the straw vendors themselves, it was decided that the
building would be designed in such a way that it would have multiple levels
and not multiple floors.
Madam President,
At this point I would like to take this opportunity to
explain the subtle difference between the two so as not to confuse some
of my colleagues present. When we talk about multiple levels, the
best analogy to give is that of the indoor shopping centers that many of
us frequent in the United States where as you enter essentially the middle
of the building is open and you can see up to the various shops above.
This is in contrast to multiple floors in the architectural and structural
sense where in order to see what is on the other floor you have to either
go by way of an escalator or an elevator. Research had clearly shown
all those involved in the project that this concept of multiple levels
has proven successful throughout the United States and other parts of the
world.
Madam President,
But this research goes even further, and clearly shows
that apart from those stores on the ground level which are close to the
entrance of the building, the stores on the upper levels, in fact, from
a revenue standpoint, perform better than those on the ground floor.
I am made to understand that it was the Nassau Tourism Board who were in
large part responsible for this functional idea. It was further established
that the construction of a new Straw Market was really the only humane
way in which to accommodate the 600 plus straw vendors.
Madam President,
To show the imagination and vision of the Nassau Tourism
Board and that of the previous Government, the straw market was designed
in such a manner that it would earn revenue in what I would term non-traditional
means i.e. not simply rents from the straw vendors. It was designed
in such a way that it had a 100 foot high observation tower that would
enable visitors to the downtown area to pay a small fee (estimated at $3)
to use the observation tower and they would have a clear view of the downtown
area, the Fort Charlotte area on West Bay Street and Paradise Island.
It was estimated that if 20% of the 2.9 million tourists who came by cruise
ships to The Bahamas came to the Straw Market and of that 40% of the 20%
paid the $3 charge, the revenue would be in the region of $700,000 per
annum. Now, bearing in mind that it was estimated that the yearly
maintenance of the straw market building would have been in the area of
2.5% to 5% of the overall construction cost of $21,000,000, this would
put the maintenance in the area of $500,000 to $1 million. Therefore,
revenue from the observation tower, rent from the straw vendors and rents
from the proposed restaurant and nightclub would have put the total revenue
in excess of $1 million, clearly covering the cost of the annual maintenance
of the straw market building.
Madam President,
My question is after all of the time, after all of the
research, after all of the money that was put into the straw market location
and design, and having received the input and approval of all stakeholders,
what logical reason can this Government give the people of The Bahamas,
and more particularly, the straw vendors and Bay Street merchants, as to
why, why in the world was the contract to build the straw market on Bay
Street terminated? Is this prime Minister and this FNM Government
saying that a $22 million building is too good for the straw vendors? The
implications are clear that this Government under its present leadership
is all about tearing down, stomping on the dreams of many Bahamians promoting
divisiveness, aggression and vindictiveness to a level unseen in recent
times.
Madam President,
I took a look at the building at the western end of the
Prince George Wharf and asked the previous Minister of Works how many could
be housed in that warehouse, and I was informed that it could hold not
more than 250 persons. If, as the present Minister of Works
suggests, the straw vendors will be moving to that building, where will
the other 350 straw vendors be housed? Will they be left in a tent
on Bay Street, fired and victimized and sent home as so many other hard-working
Bahamians have been in the past six weeks to wander in the wilderness to
find means to provide food, clothing and housing for their dependents?
Madam President,
I would only wish that the present Minister of Works
and his FNM Government would have done their homework and realized that
a lot of talented Bahamians put a tremendous amount of energy and focus
into this project and that the manner in which this present administration
has dealt with this matter really shows a lack of respect for many talented
Bahamians and again exhibits a level of arrogance in Government that we
have not seen since this Government was in office last.
Madam President,
Some people never learn.
REDEVELOPMENT OF BAY STREET/RELOCATION OF PORT TERMINALS
Madam President,
I will show that this FNM Government has no intention
of redeveloping Bay Street and removing the container ports from Bay Street.
The redevelopment of Bay Street which includes the removal
of the container ships from Bay Street are vital to the survival of Bay
Street and the various businesses and entities that depend on Bay Street’s
survival.
Madam President,
Again a great deal of thought and focused imagination
and creativity went into the planning of the redevelopment of downtown
and all of the reports from the international and local consultants agree
on one thing: that although they may have had different ideas with regard
to certain concepts or certain layouts, there was unanimous agreement that
in order for Bay Street to have any possible chance of survival, the container
ships had to move from Bay Street. The PLP Government in its wisdom,
in conjunction with the Nassau Tourism Board, paid jointly approximately
half a million dollars for a study to be done so as to find the most suitable
location in Nassau for a container port and to present a plan that would
ensure that the port from a financial standpoint was self sufficient and
logistically efficient. The present Government upon entering office
was well aware that this report was nearing completion. The Prime
Minister made the flippant and irrational comment that the development
of the southwest port had in fact died with the PLP’s loss at the polls
on May 2nd, 2007. The Prime Minister made an about turn and said
that the FNM Government are not ruling out any possibilities with regard
to the moving of the container port.
Madam President,
I am convinced that this administration has no intention
of focusing its energies on the redevelopment of downtown and I am further
convinced of this by comments made by the Prime Minister in another place
where he stated that a solution to the containers on Bay Street may be
to have the containers move at night.
Madam President,
I was shocked to say the least that a sitting Prime Minister
of this proud nation could again make such an irrational, irresponsible
comment, bearing in mind that he would have at his disposal research that
shows that this would be a very expensive proposition to the Bahamian people
in that you would now be essentially changing many people’s hours of work
to receive such shipments.
Madam President,
It appears very clear that this is another case of “throwing
the baby out with the bath water” and that this present administration
is too vindictive, too callous and too arrogant to accept that under the
past PLP administration a lot of good work was done by a great number of
qualified, committed individuals who were doing what they thought was in
the best interests of this country as a whole and that before rushing to
judgment to dispense with these initiatives, they should take a wise and
responsible approach and at the very least wait to see what the recommendations
from the report were before rushing to judgment.
Madam President,
A leopard cannot change his spots.
The perception is that this Government is protecting the interests of a few, they being certain entities not all who own the land upon which the container terminals are located and that these entities are only concerned about their selfish well-being and unwilling to co-operate and do what is in the best interests of the country.
Madam President,
Any talk about the development or redevelopment of Arawak
Cay as I have read in the 2007 FNM Manifesto and certain pronouncements
made in that other place by the governing party is futile without incorporating
a plan for the complete redevelopment of Bay Street which should run west
from Paradise Island Bridge straight to Arawak Cay. Anything apart
from this is shortsighted indeed and shows a lack of understanding, a lack
of sensitivity and a lack of knowledge of the economic impact that the
failure or success of Bay Street would have on the economy of Nassau in
particular, and The Bahamas in general. We have read in the business
section of The Tribune on Monday, June 18th, 2007 that Royal Caribbean
Cruise Line has decided to suspend the calling of three of its vessels
into Nassau during the summer months and to re-route those ships to other
destinations. It has been no secret that the cruise ship operators
have been complaining for years that Bay Street and the downtown area need
to be improved. For this Government to continue to ignore the advice
and pleas by many until it is too late as it did when it was responsible
for the collapse of our financial industry back in the late 1990s.
It is arrogance of the highest order.
Madam President,
Some people never learn.
Unfortunately, I have seen nothing to encourage me or give me a sense of hope that the Prime Minister and this FNM Government have in fact changed or learned from their lessons of the past but instead it seems its steadfast and dogmatic view is that it will not listen or take advice from some of the brightest minds locally and internationally.
Madam President,
This is arrogance of the highest order.
I will now show that the level of growth, profitability and advancement experienced by the utility companies in the past five years was at a level not seen in recent times.
WATER AND SEWERAGE CORPORATION
Madam President,
I wish to draw your attention to the communication remarks
brought in that other place by the Member for South Beach, the Hon. Minister
of State for Public Utilities, regarding the Water and Sewerage Corporation.
Unlike the present Administration, the Christie-led Administration understood
that we did not have a monopoly on ideas and great intentions for this
country. Our Administration in a true and prudent fashion adapted
and strove to deliver and improve all good initiatives left in place by
the FNM Administration of 1992-2002.
One such initiative was a study, commissioned by the then Administration, to look into ways to improve the performance and productivity of the Water and Sewerage Corporation. This analytical study was commissioned in 2001, at a cost of some $600,000 and completed in 2002 around the time the then FNM Government demitted office.
Madam President
I wish to table this report marked Exhibit A.
Our due diligence told us that most, if not all, of the
findings and recommendations included in that report were valid.
In true national-building fashion, we strove to follow the recommendations
made to ensure the resurrection of the Water and Sewerage Corporation.
Madam President
The facts will show that in so doing the Christie-led
Government did more for the Corporation in terms of program development
and growth than any other administration in the history of the Corporation.
We take tremendous pride in that accomplishment.
Madam President
In this vein I would like to table the report, commissioned
by the former FNM Administration, which one would expect that a hungry,
young politician, such as the member for South Beach, looking to make a
name for himself, should have familiarized himself with, before attempting
to attack the legacies of honourable Bahamian nation builders.
Madam President,
Allow me to quote the following points that were highlighted
in the aforementioned report. Before I do, however, I must hasten
to add that the intention here is not to knock the cost of the study, or
the local group that it was commissioned through. I merely wish to
emphasize the importance of the study and that, despite being aware of
the damning nature of the report and the implications to the former FNM
Administration, and the leadership of the Water and Sewerage Corporation,
we choose not to play political games with issues that have critical national
implications. However, in light of the Member for South Beach’s ill-advised
attacks, we chose fit to rationally highlight the following points from
the FNM Government commissioned report:
1. “New attitudes are needed, an approach
that needs to be more dynamic and more corporate. Leadership is the
key factor in this.”
2. “……there is an expressed need for
experienced and expert hands-on technical support to be provided to assist
Water and Sewerage Corporation in the first two years of the Plan period.”
3. A number of the actions and initiatives
which have been identified require skills and experience which have been
limited within the current organization. Some of this deficiency
can and should be filled by recruiting some key posts externally.
4. “There is demonstrable need for
improved support and service in areas such as customer service, planning,
information systems, human resource development, operating procedures,
health and safety. All these areas need upgrading to achieve the
performance required of a good water service operator. There is little
room for compromise here.”
5. “Planning skills need to be developed
across the organization and at all levels. We have specifically identified
the strategic areas of business planning, water resource planning and capital
planning.
6. “The quality and motivation of
employees is an essential ingredient of success for any organization.
Associated with the changes that we are advocating is a need for the Water
and Sewerage Corporation to develop its approach to its employees, and
we have identified a wide range of areas for attention. Associated
with the restructuring we recommend that a communication strategy is thought
through and implemented and that positive steps are taken to improve the
industrial relations climate. Subsequently, emphasis is placed on management
development and training in new skills and attitudes.”
7. “In order to manage and achieve
the program of change required, we believe that the Water and Sewerage
Corporation would benefit from direct support from an experienced international
water utility firm which has successfully faced similar challenges in other
places. Technical assistance of this nature would help to short-cut
some of the learning processes involved and bring expertise to bear directly
where required.”
Madam President,
The new Minister of State tried to demonstrate in that
other place that under the PLP Administration, poor management and wastage
were the order of the day, perpetrated by the Administration and the Corporation’s
Board. He also inferred that we exerted ‘selfish political aims that
impose on good management practices’.
Madam President,
In an apparent state of ‘performance anxiety’ for want
of a better analogy, the young Minister of State quoted segments of a report
from a corporation executive that he cited as a “prime example of poor
management and wastage across the floor”.
The member for South Beach strived to tell this body and country, amongst other things, that Board decisions were unusual and not customary; implied that contracts were given to foreign consultancies that generated very little use
Madam President,
The facts as highlighted in the FNM Administration’s
consultancy report show that the Water and Sewerage Corporation executive
leadership did not have the experience and skills to turn the Corporation
around. The Christie-led Administration validated the findings of
the FNM’s report and sought to train and prepare the leadership at the
Corporation in a manner consistent with the report’s recommendations.
In addition, Madam President, the new member either was
not made aware of the fact that the Corporation’s Board was actively investigating
legacy and ongoing corrupt practices at the Water and Sewerage Corporation
– or chose to ignore the facts – in his haste to make what he believed
was a good showing in that other place – or perhaps because of his heightened
state of anxiety performance.
Madam President,
I understand that the very Board that the Member for
South Beach attacked offered to share facts and information, which he could
use to further develop and improve the Water and Sewerage Corporation
This offer was extended to both the Senior and Minister of States with responsibilities for the Water and Sewerage Corporation.
Madam President,
It also appears to be somewhat self-serving for a few
members of the same executive team (leadership) that the damning report
was written about to advise this Government on the way forward, particularly
when there were some ongoing investigations involving some of them, regarding
material issues.
Madam President,
Simply put, the member for South Beach should have done
his homework before opening a can of worms that he is currently ill-equipped
or not prepared to deal with.
Madam President,
We in the PLP are nation-builders and have concluded,
after performing our due diligence, that Governments have changed
over the past 30 years but the legacy issues of the Water and Sewerage
Corporation continued – so much blame must be attributed to the actual
leadership of the Water and Sewerage Corporation – who always conveniently
choose to blame each outgoing administration for their shortcomings.
This is no doubt a concerted attempt to cover a myriad of issues.
Madam President,
Half a truth is often a great lie.
The entire Bahamas knows and accepts that the Water and Sewerage Corporation only really began to progress, in a meaningful way, under the Christie-led Administration. During the past five years, the amount of projects initiated was without precedent. Never in the history of the Corporation were there so many projects designed to bring long overdue potable water relief to residents throughout The Bahamas. There was so much work to be done that the Corporation’s executives acknowledged publicly that ‘never before in the life of the Corporation had they worked so hard’.
When the PLP came to office, management at the Corporation explained away their failure to provide the Bahamian people with proper service by blaming past administrations and the perpetual cries that there was no money to underwrite vital programs to provide the essence of life – water – to the Bahamian people! That excuse was thrown out of the window when the Minister gave his personal undertaking that he would use all in his power to convince his cabinet colleagues that there can be no excuse not to provide funding for the provision of that critical commodity – water – to the Bahamian people throughout The Bahamas.
The Water and Sewerage Corporation was the only utility that published a monthly balance scoreboard in all major newspapers – an invitation to the public to watch and monitor the performance of the Corporation and its leaders, in fulfilling the national mandate. This initiative was not management-led but Board-directed and Minister-endorsed.
Madam President,
It is disingenuous for the new Minister of State not
to speak to the ongoing legacy issues at the Corporation that he was part
of for years, i.e. the giveaway of heavy equipment by executives, irregular
procurement exercises as highlighted in the aforementioned report, missing
supplies, regular misuse and misappropriation of corporate assets, non-support
of local contractors, etc. As a former employee of the Water and
Sewerage Corporation, if the Minister of State was not aware of these issues,
he should have been.
Madam President,
We note with interest that the new member for South Beach
bragged about the 2 million gallons per day Windsor RO Plant which he reminded
this house was constructed under an FNM-led Government, and for which he
was the ‘project engineer’. What he could have easily told the house
but neglected to do so was that the recent PLP Administration built the
7.2 millions gallons per day RO plant at Blue Hills. He could have
noted that inclusive in the PLP’s Administration’s skillful negotiations
for the Blue Hills Plant was a program to significantly reduce New Providence’s
long-standing, vexing problem of Non Revenue Water.
Madam President,
The PLP is entrepreneurally minded.
It is noteworthy that the records disclose that under the FNM’s 10-year watch, 1992-2002, there was no improvement to Non Revenue Water. Clearly the approach used by the then administration was only a ‘lip-service’ one – not even a ‘bandaid’ approach. The good Minister of State, in unbelievable fashion, is seemingly attempting to take credit for a program initiated by the PLP Administration.
In addition, the Minister of State needs to report on the state of the Windsor RO Plant, for which he was the project engineer, as it is my understanding that it had some operational issues that may be continuing, and the original projected operational time span is being questioned.
Madam President,
The Minister of State in his contribution, by way of
a backhanded compliment, notes that under this FNM Administration, “the
Corporation anticipates continuing with plans to improve services in all
sectors, increasing revenues, expanding system networks and replacing old
and defective infrastructure”. What he does not say to the good people
of The Bahamas, those who are still waiting for potable water, is that
this administration cannot fulfill the promises made with this already
reduced allocation. This certainly challenges his assertion that
his Government has an increased emphasis on Public Utilities, unless there
is a plan to increase water tariffs to increase revenue for the Corporation.
Madam President,
The Minister of State in that other place stated that
the Water and Sewerage Corporation has been challenged to develop a realistic
water supply strategy for New Providence. The reality is that the
Water and Sewerage Corporation has already commissioned a well renowned
international company out of the United States to perform this task, and
I am advised the report has been completed. This report is to complement
the Integrated Water Resource management program that has already been
initiated by the PLP Administration.
Madam President,
We note that the $600,000 Thames Water Report repeatedly
highlights the fact that the Corporation’s executives have no strategic
and planning skills. The PLP Administration, after corroborating
this, as mentioned, commissioned an experienced international firm – as
mandated by the report – to assist with a master water and sewerage strategy
plan. The Minister of State, however, who was a part of the Water
and Sewerage Corporation team that received such a scathing report, says
that his friends have more brain power than experienced and proven international
consultants.
Madam President,
Again, arrogance of the highest order.
The Minister of State acknowledges that the Corporation
has developed a strategic sewerage plan for the island of New Providence.
This is a testament to the vision and commitment of the PLP Administration
to lay the foundation to address this longstanding and vexing need, which
includes Malcolm Park, Fox Hill, Gladstone Road and SouthWest New Providence.
FORMER MINISTER OF WORKS, HON. BRADLEY B. ROBERTS
Madam President,
The Minister of State said in the other place on Thursday,
June 6, 2007, “I have recently discovered what I consider to be a gross
abuse of power by the previous administration, whereby the previous Minister
of Works & Utilities and Member of Parliament for Grants Town approved
the swap of 8.6 acres of reclaimed swampland in the vicinity of the end
of the runway at the Lynden Pindling International Airport for 10 acres
of Water and Sewerage-owned prime land in the Perpall Tract area.
Who was this deal made with? None other than Arawak Homes”.
He went on to say, “What is worse is that the Water and Sewerage Corporation
has no need for this reclaimed swampland, other than to ensure that it
would not be developed nor impact the wellfields adjacent to the airport.
Further, this reclaimed swampland was designated by Civil Aviation as “Not
to Be Used”, as it is needed for a rain run-off and drainage of the existing
runway”. The Minister of State went on to say that “only one group
is set to gain…Arawak Homes. They are taking prime land from the
poor. Who is poorer than the Water and Sewerage Corporation?”
Madam President,
As this Chamber is aware, the former Member of Parliament
for Bain and Grants Town, the Hon. Bradley B. Roberts, whose last portfolio
before the May 2nd General Election was Minister of Works & Immigration,
and prior to that Minister of Works & Utilities, served as a member
of that other place for 25 consecutive years and was a very active member
of that institution and brought much discomfort to those opposite during
his tenure. Mr. Roberts, who retired from frontline politics prior
to the last General Election, has expressed shock and disdain over these
unsupported attacks on his integrity by the Member for South Beach and
demands that the Member, unreservedly and unconditionally, withdraws the
baseless allegations made against him. Madam President, the record
will show that former MP Roberts always brought facts to substantiate whatever
allegations he brought against members in that other place.
Madam President,
The Minister of State and Member for South Beach presented
not one single shred of evidence to support his outrageous, evil and sinister
allegation against the former Minister. When the matter was brought
to the attention of former Minister Roberts, who did not recall having
been asked to give approval or having given approval for the swap of any
land, he agreed to investigate and revert.
Madam President,
The former Minister advised that his research disclosed
that Arawak Homes Ltd. purchased some 10 acres of land in Tropical Gardens
as a result of a foreclosure from the Bahamas Development Bank. After
securing approval from the Department of Physical Planning on March 2,
2004 to convert the same into lots and in accordance with that approval
in principle, submitted an application to the subdivision section of the
Ministry of Works. The Subdivision section of the Ministry of Works
referred the application to the Water and Sewerage Corporation and other
Utility Corporations for their usual comments. The Water and Sewerage
Corporation requested Arawak Homes not to proceed with the application
for the conversion of the parcel of land into lots because the Water and
Sewerage Corporation would itself wish to acquire the Arawak Homes parcel
for reasons which are inclusive of ensuring the proper drainage system
at NIA, which is in the vicinity of the Arawak Homes parcel.
I am pleased to lay on the table the following documents:
1. Exhibit B – letter dated December 12, 2005 from Water
and Sewerage Corporation to Arawak Homes;
2. Exhibit C – letter dated August 15, 2006 from the
Water & Sewerage Corporation to Arawak Homes, referring to an attached
memorandum of Understanding dated August 15, 2006;
3. Exhibit D – Memorandum of Understanding, dated August
15, 2006;
4. Exhibit E – letter dated December 27, 2006 from the
Department of Physical Planning to the Water and Sewerage Corporation;
5. Exhibit F – letter dated January 10, 2007 from Water
and Sewerage Corporation to Arawak Homes;
6. Exhibit G - Appraisal Report on acreage in Perpalls
Tract;
7. Exhibit H – Appraisal Report on acreage in Tropical
Gardens;
8. Exhibit I – letter from Water and Sewerage Corporation
to Arawak Homes dated April 26, 2007 acknowledging receipt of cheque No.
375.
Madam President,
As I stated earlier, the PLP Administration was exceedingly
proud of its accomplishments at the Water and Sewerage Corporation which
included bringing much relief to long-suffering Family Island residents
and providing for the floating of a $50 million Bond to bring even more
relief to many others. In this vein we will be monitoring very closely
to ensure that the plans and programs we left in place be implemented as
a matter of national priority.
THE BRIDGE AUTHORITY
Madam President,
When the PLP came into office in 2002, one of the pressing
issues it had to address was the Bridge Authority and the fact that at
that time the control of the Authority was with the Central Bank of The
Bahamas. The PLP Government set about the creation of a Board in
order to address the many troubling issues facing the Bridge authority
including management, policies and general operational controls.
The loss that the Bridge Authority was incurring at the time was $405,676
. Due to the sound management policies put in place by that Board
chaired by Mr. Edward Fitzgerald, we are proud to state that the net profit
of the Authority as of December 31st, 2006 was in excess of $1.3 million.
It is also interesting to note that the Authority’s auditors were so relieved
and, I guess, impressed with the turn around of the Authority that they
went so far as to say in their management report for the fiscal year ended
December 31st, 2002 and I quote:-
“It should also be noted that this is the first year
since we were appointed auditors that an unqualified opinion will be issued
on the Bridge Authority’s financial statements. This would not have
been possible had it not been for you and your staff’s dedication in resolving
all of our Audit issues.
In our opinion the financial statements fairly in all
material respects, reflect the financial position of the Bridge Authority
as at 2002 and the results of its operations, changes in equity and cash
flows for the year then ended in accordance with international accounting
standards.”
BAHAMASAIR
Madam President,
With regard to Bahamasair, this again was another prime
example of the PLP’s sound management and decision-making policies where,
although the carrier continued to incur losses, these losses were substantially
reduced under the watch of the PLP Administration. The net losses
for the three years prior to the Christie Government coming into office
totaled some $86,222,701. The largest loss was for the year ended
21 June, 2001 of $35,147,131. during the PLP’s Administration, the
losses were educed to a low of $11,000,000 and were projected to be reduced
by fifty percent of that amount to $5.5 million had it not been for the
sharp increase in oil prices.
Madam President,
I note with interest that there has been no announcement
with regard to a change of policy left in place by the PLP Administration
with regard to the selling of Bahamasair. Further, with an innovative
strategy of empowerment, the PLP governance saw fit to increase the private
airline charter companies that fly to the Family Island with the lifting
of restrictive polices and regulations that hampered the issue of various
licences to smaller companies owned and operated by Bahamian men and women
flying between the islands of The Bahamas. Therefore, the Bahamian
people were no longer hostage to Bahamasair as their only means of transportation.
BEC
Madam President,
When the PLP came to power in 2002, BEC was found to
be in possession of aging equipment that had numerous operational problems.
Immediately, the system was put in place to replace all of these aged and
used equipment. The fuel savings alone from new engines plus the
savings from a new deal that was negotiated with the oil companies for
storage at Clifton and savings generated as a result of the early payment
of an IDB loan ended up saving BEC some $5 million per annum over 10 years
- that is $50 million in savings that the PLP Government saved the people
of The Bahamas. In doing so, this enabled a reduction in the basic
cost of electricity from approximately 17% to homeowners and approximately
11% savings for commercial properties. Now, this is not to be confused
with the fuel surcharge which is adjusted depending o the price of crude
oil per barrel, and I have stated earlier this has increased by 75% in
the last 24 months alone.
Madam President,
This is significant in the sense that it is the first
time in the history of BEC that there was ever a reduction in the basic
rate of electricity, and to show how evolutionary this whole concept was
then and is today, The Bahamas is the first country in the whole of the
Caribbean where there was a reduction in the basic rate of electricity.
Madam President,
This took effect from October 1st, 2003 less than 18
months into the PLP’s Administration.
Madam President,
I would be remiss if I did not give much credit to the
then Minister of Works, the Hon. Bradley B. Roberts and the Board of BEC
chaired by the capable and able Mr. Al Jarrett and the Board members and
the hardworking staff of BEC. To show its Government’s commitment
to further develop the Family Islands and their requirement for vital electrical
infrastructure, BEC was able to arrange funding for $100 million from a
Bond issue to carry out various upgrades to equipment and infrastructural
requirements throughout The Bahamas.
BAHAMAS TELECOMMUNICATION COMPANY
Madam President,
Probably the most shining example of the PLP’s entrepreunerial
approach to government is the transformation which took place within BTC.
Prior to 2002, the then FNM Government attempted to privatize BTC and in
doing so released many of its long-term employees creating a brain drain
on the Corporation and an environment where morale was at an all-time low.
At the time there was an offer of $130 million on the table for 49 percent
of BTC which the then PLP Government took advice on and was advised to
reject the offer for various reasons. The naysayers on the other
side said that the people should accept the offer as BTC was losing value
on a daily basis. The PLP Government observed that this sector more
so than any other had the greatest potential for growth and that it was
on the verge of collapse as a moratorium had to be issued because the old
TDMA system was now considered a dinosaur as those who originally developed
the system had now abandoned it. Almost immediately, the then Minister
of Works & Utilities, the Hon. Bradley B. E. Roberts, gave approval
for the implementation of the GSM network that it would be built to a capacity
where never again would BTC have to issue a moratorium on cellular service.
Madam President,
BTC under the PLP Government generated an average net
profit of $35.8 million per annum. When compared to the profits of
BTC in 1992 to 2007 where an average of $12.9 million per annum was generated,
the PLP’s annual profit on average is almost three times better than the
performance under the FNM. What is so commendable about this
performance is that this was done during the time when BTC were reducing
their international rates and those national rates from island to island
to all-time lows. Further, the introduction of the Vibe as a voice
over IP service made BTC on par with similar services provided throughout
the United States and around the world. In spite of all of this,
BTC had record-breaking profits while staying on the cutting edge of technology.
Madam President,
BTC, under the Christie Administration, spent $353 million
in capital development projects in five years, spending a whopping amount
of $93 million in 2006 alone. BTC generated $300 million in revenue
for the first time in its history and all of this, notwithstanding the
significant reduction in telephone rates as mentioned before.
Madam President,
The capital investment of $60 million has allowed BTC
under the PLP Government to connect 14 islands of The Bahamas via a fibre-optic
submarine cable. These islands include New Providence, Andros, Grand
Bahama, Abaco, Eleuthera, Exuma, Long Island, Ragged Island, Inagua, Mayaguana,
San Salvador, Rum Cay, Crooked Island and Cat Island.
BTC has also built a fibre-optic submarine cable between Bimini and Grand Bahama and Inagua and Haiti.
Madam President,
The importance of this fibre-optic cable cannot be taken
lightly as it has served the purpose of allowing Bahamians and visitors,
regardless of where they are in The Bahamas, to enjoy the right of having
access to high-speed internet, not only for personal reasons, but also
with regard to education, business and the ease of communication between
Government agencies. This is critical as we realized during the last
hurricanes where there were certain islands within The Bahamas that were
literally cut off from all forms of communication for 2 or 3 days after
the hurricanes had ravaged these Family Islands. Thanks to the foresight,
vision and focus of the Christie Administration, this will never happen
again.
Madam President,
When the PLP Government came to power, there were 80,000
cellular customers in The Bahamas. Today, five years later, it is
in the region of 250,000, an increase of 300 percent! All of this
success enabled BTC to attract an offer of $260 million for forty-nine
percent of BTC. This represents a 100 percent increase or $130 million
more than the FNM was able to negotiate 5 years earlier. It may appear
as if I am bragging about all of the successes of the PLP Government, but
I can assure you that I am not – I am merely notifying those on the other
side of the record of the PLP and putting them on notice that if they are
to match it, they need to get busy working and doing what is in the best
interests of this country and involving all of the best and brightest minds
that are available. In short, they need to get to work and stop digging
up in files trying to find any form of misdeeds, real or imagined.
The comment about PLP insiders being involved in the purchase of BTC was
irresponsible and misleading and is only proven to be an indication of
the many irresponsible and reckless comments the Prime Minister and his
Government have made since coming into office.
Madam President,
When the PLP came to power, we could have taken the same
approach and dig into all files looking for things, real and imagined,
but under the leadership of Perry Christie, the marching orders were given
to implement the Party’s vision using all of the intellectual and physical
resources we had at our disposal, we were to use to get busy facilitating
and implementing this vision. So my advice to the other side is you
have won until the Court determines otherwise, so get busy doing the people’s
business.
Madam President,
Again it would be remiss of me if I did not acknowledge
the excellent work done by the Board of BTC, the General Manager, Leon
Williams, the executive and staff of BTC for the tremendous job they have
done with the support of the then Minister and the Christie Administration.
Madam President,
Let me go on record as saying that there can be no doubt
that history will be kind to the former Minister of Works & Utilities,
the Hon. Bradley Roberts, as his vision, his courage, his tenacity and
his ability to push people beyond limits which are self-imposed is beyond
any form of criticism or reproach. What he and his team were able
to accomplish in a short five years will undoubtedly rank him as one of
the best Ministers of Works & Utilities this country has every seen
and he has set the bar at such a level that all those who follow will have
to work night and day just to maintain, let alone, improve or build on
what he and the PLP Government have left in place.
Madam President,
I have just provided you with a snapshot of the PLP’s
record while in office for the period 2002-2007. Based on the facts
gleaned from our record, the Bahamian people now have the truth about our
record. The facts are now there for all future generations to see,
without distortion or spin or projections.
The facts clearly show that the Christie Government has
served the Bahamian people well - that they have been good stewards
and that they, for the most part, did the right things for the right reasons
to the benefit of the majority of our people. They dispensed their
duties without prejudice, victimization or discrimination against any Bahamians.
We might have lost the “political battle” on May 2nd, but we believe we have been able to win the war of trust in this election and therefore, history will be most kind to us as a Government which could be trusted and which delivered on that trust, and since “trust is the parent of truth”, truth lasts forever.
Madam President,
I thank you for allowing me the opportunity to speak
on this so-called “Truth Budget” – unlike our budgets, which are now truth,
fact and history – the truth of this budget is yet to unfold into facts.
We look forward to this Truth and Fact unfolding in the coming months.
Again, Madam President, I thank you.