CONTRIBUTION TO THE 2008/2009 BUDGET DEBATE
BY MELANIE S. GRIFFIN, MEMBER OF PARLIAMENT
FOR THE YAMACRW CONSTITUENCY
MONDAY, JUNE 9TH, 2008
 

INTRODUCTION
 
Mr. Speaker, I am once again grateful for the opportunity afforded me by Almighty God and the fine residents of the Yamacraw Constituency who I represent in this place, to be able to participate in this debate on the 2008/2009 Draft Estimates of Revenue and Expenditure.

This debate, Mr. Speaker, takes place against the backdrop of global and national uncertainty.  Rising fuel and food costs are wreaking havoc throughout the world and indeed, The Bahamas is not exempt.

This trend of rising food costs, although expected to peak and gradually begin to fall off, according to the Annual OECD-FAO Agricultural Outlook 2008 – 2017, “prices will remain at higher average levels over the medium term than in the past decade.”  The Report also notes that, “When the average for 2008 to 2017 is compared with that over 1998 to 2007, beef and pork prices may be some 20% higher; raw and white sugar around 30%; wheat, maize and skim milk powder 40 to 60%; butter and oilseeds more than 60% and vegetable oils over 80%.
Well, Mr. Speaker, what does this mean to The Bahamas?  The same OECD-FAO Report, Mr. Speaker, measured the impact of rising commodity prices on food prices and concluded, and I quote, “The main conclusion is that for developing countries food price inflation makes an important contribution to overall inflation.  For the urban poor the situation is particularly distressing since low incomes, often not much above USD 2 per day, combine with rising food costs and no access to land resources to produce at least part of their food supplies.”

More importantly, Mr. Speaker, this means, as the report again notes, “The Outlook, with its projected sustained higher level of prices, implies an important decline in the purchasing power and welfare of millions of people across the globe.”

What does this mean to The Bahamas, Mr. Speaker?  Well we do not live in a vacuum; therefore global trends would impact us at some point.  We can all attest to the fact that our grocery dollars do not go as far as they use to go?

In its Annual Report and Statement of Accounts for the Year Ended 31 December 1997, the Central Bank of The Bahamas reported that, “Reflecting the pass-through effects of higher fuel and food costs, consumer price inflation, as measured by changes in the average Retail Price Index, increased by 2.50%., well ahead of the 1.83% for 2006 (see Table 6).”  This was taken from the New Providence Consumer Price Index.

Mr. Speaker, that was at the end of 2007, just two months later at the end of February 2008, according to the same report from the Department of Statistics, the consumer price inflation had increased by another .09% to 2.59%.  Can you imagine what it must be now, just over three months later?  Well, yes we can imagine, Mr. Speaker, because we feel it in our pockets daily.  However, as a measurement, I refer right back to the Central Bank’s Annual Report for 1997 which refers to the cost of gasoline surging by 17.8% during the first half of 2007,  for a cost of $4.57 per gallon and then settling at $4.28 per gallon by the end of 2007.  When I put in gas last week, Mr. Speaker, I paid $5.55 per gallon and I understand at some places, it is even higher.  This represents more than a $1.00 increase from December 31, 2007 to the present.  In fact, because of the daily fluctuations in the cost of a barrel of oil, that $5.55 figure could have changed by now.

CHRISTIE ADMINISTRATION

 Mr. Speaker, the Christie Administration came to office in May 2002 in the midst of an economy that had been run on the rocks by the then Government, which had squandered almost ten years of plenty. The Treasury was in shambles, some important infrastructure like docks and airports were in a state of disrepair with Tourism Industry partners threatening to pull out.  Many government bills were outstanding and many government institutions and buildings were also in disrepair.

 The PLP Government, under the visionary leadership of Perry Gladstone Christie, immediately put its shoulders to the wheels and with sound fiscal prudence, unprecedented direct foreign investment and a plan to transform the Country economically, socially and politically, grew the economy to the point where we were certainly the envy of the region.  All economic indicators were headed in the right direction, unemployment was down, external reserves were high, construction was up, home ownership was expanding – all this in the face of three devastating hurricanes that tested the resolve of a resilient society.

 The multi-faceted vision of the Christie Government ensured an attack on social ills facing this country from its very foundation.  As economic activity increased and the economy grew, programmes like Urban Renewal, National Youth Service, School Policing, Tourism Policing and others, brought together various arms of Government with the community and the church to arrest social decay and bring hope and help to the young, the old, the disabled, the rejected and those who lived in fear of crime.  By any measure, Mr. Speaker, these programmes were successful and certainly being without them now for the past year is a resounding testimony to the impact they were making in this country.

INGRAHAM ADMINISTRATION

 In comes a new government, Mr. Speaker, which in its first budget admitted that the state of the economy was such that for the first time in the history of The Bahamas, our economy could be “decoupled” from that of the United States.  Even though one year later they are trying to back-peddle from that position, the fact is the level of economic activity in this country during the last PLP administration put us in the position for our economy to be “decoupled” from that of the United States to the extent that we would have been able to weather this global economic crisis better.  I have no doubt and neither do Bahamians every where, have any doubt that the policies of this government – policies of stop, review, cease and delay, are directly responsible for the slow down in this economy which now causes many Bahamians to be out of jobs and the numbers are growing daily.

 In the 2008/09 Budget Communication, Mr. Speaker, the member for North Abaco, indicates and I quote, “this Budget embraces my Government’s social philosophy”.  I tried to determine what that philosophy was and for the life of me, Mr. Speaker, I could only reflect on the IDB’s Country Report in 2002 that noted the shift in strategy when the PLP Government came to office, from one of what I call “bricks and mortar” to a social agenda.

 By its actions since coming to office last May, this government’s social philosophy seems to be creating joblessness and hardship and force people to go to social services.  Mr. Speaker, governments should not be about creating a welfare state, they should be about empowering people.  By causing the slow down in the economy, by firing hundreds of persons from the civil service, by destroying Urban Renewal, withholding the enactment of social legislation, by its inability to build one house, its seeming abandonment of the Social Safety Net Reform initiative, which would put in place the conditional cash transfer program the Minister spoke about last week in other countries, the government finds itself in a situation where it has added to the social woes of this country and in a knee jerk reaction has decided to throw money behind the problem.
 In addition to this, Mr. Speaker, the government is very much aware that it has become very unpopular in a very short space of time and so they resort to their age old habit of trying to buy their way out of it.  While increased funding is always good, Mr. Speaker, I will show the Bahamian people how insignificant the sums are in terms of value and the areas they are expected to address.

2008/2009 BUDGET

 First of all, Mr. Speaker, I said it last year, but I think it warrants repeating.  The level of increase proposed for Social Services by the Christie Government, if it had been granted by the new government, would not even have been surpassed by their current increase, which they continue to boast is the biggest in history.

 Mr. Speaker, in 2007, demands on social services led me to make the submission for a $40M Budget.  The FNM Government promptly reduced this when it came to office to $31M.  Now I suppose it makes a good political statement to say that one year later, you have approved a $7M increase, but what it really means is that one year later you have discovered that we were right in our proposal of $40M and you now see, as we saw, the need to grant such a substantial increase.

 This behavior, Mr. Speaker, falls right in line, with the government’s policy of trying to re-brand former PLP programmes so they can claim ownership. This is not only immature, but it also demonstrates a lack of consideration for persons negatively impacted by such actions in the process.  The fact is that, Mr. Speaker, if the proposed allocation was approved in the first instance, Social Services, both clients, staff and programmes would have been better served.

 When you look at the increased allocations for assistance, Mr. Speaker, you will find the same situation.
In Head 44 Block 50, Item 521800 Subsistence, Support of Persons (By Contract), $1.5M was proposed for 07/08, it was cut back to $1.3M, one year later the same $210,000 increase is approved, bringing it back up to the $1.5M.

 The same situation happened with Item 521810.  With item 569900 Family Island Operations, Mr. Speaker, which really demonstrates the principle, I made a $6M submission on behalf of Social Services, as I was acutely aware of the shortages in funding for Family Island assistance programs.  The provision was cut back to $3.2M by the government, now one year later, they are increasing it to $4.5M which is still less than what we proposed.  In checking all these figures, Mr. Speaker, you fill find that this is indeed a general principle.  This is just one example of the games this government plays, Mr. Speaker.

MEANINGFUL INCREASES

 Mr. Speaker, I found it strange that the member for North Abaco and Rt. Hon Minister of Finance in his budget communication would say, “The increase in budgetary allocation for the Department of Social Services will permit meaningful increases in all areas of relief to the poor, including food, uniform, rental and burial assistance, payments in respect of foster care, the student lunch scheme and the work programme.”

 The Member of Parliament for Montage and Minister of State for Social Services came behind him and quite frankly Mr. Speaker, I was surprised that no specific breakdown was given as to what the increases were and what they would mean to the poor.  In fact, the member just really reiterated what is set out in the Draft Estimates.
When I examined the draft increases myself, Mr. Speaker, I could see why.  While, I think we would all agree that every little bit helps, I think it is fair to say, based on my understanding of the Draft Estimates, that the increases are not “meaningful” at all.  In fact when you consider the economic crisis, as it relates to the value of money, what we purchased for $100 yesterday, we are now buying  for $125.  Let me demonstrate:
Subsistence and Support of Persons (Not by Contract)
This item is expected to receive a $258,855 increase for a total allocation of $1,573,855.  When you consider all that has to come out of this allocation – general assistance to persons including foster care allowance, temporary disability, utilities, house repairs, burial assistance, rent assistance, fire relief, clothing and household items.  My recollection is that utilities and rental assistance came from somewhere else, but even so, separate and apart from the foster care allowance is the clothing allowance for the children and clothing for the children and a stipend for the Care Assistants.

 The member indicated that there are 346 children in foster care and to my recollection there are about 36 care assistance, this number could have changed.  The increase is just not enough for any “meaningful” increase.

National Lunch Programme
First of all let me say that in spite what the member for North Abaco says about there not being any increases in assistance programmes since 2000, I distinctly recall increasing this programme.  The Minister of State indicated that there are a total of 2,735 recipients on this programme in New Providence and the Family Islands.  This pans out to $20.48 per person per annum.
 

Food (For Human Consumption)

An additional $1,414,730 will be made to this allocation to service some 4,272 persons.  This works out to $331.16 per annum or $27.60 per month.  Again considering value for money with the high cost of food, this is not a meaningful increase.
Assistance to Individuals

Mr. Speaker, this is the provision from which rent assistance, light, water, miscellaneous financial expenses and individuals employed on the unemployment assistance programme are paid.  This item was given a mere $15,000 increase.  Even if it were meant just for the work programme staff, it would only amount to a $15 per week increase, but we must bear in mind that all those other areas are covered in this item.  Unless there is something else at play here, this does not compute and those persons on the work programme should not be toyed with in this way.
In addition, where is the funding coming from for this new housing assistance?  The Minister of State was deafeningly silent on this whole item.

These are the areas that impact on relief to the poor, Mr. Speaker, and I think I have clearly demonstrated that the narrative is not lining up with the Draft Estimates.  Perhaps, someone on the other side can show me different when we come to the Heads.

CARE PROGRAMME – Circumstance and Relief Emergency Desk Assistance

 Mr. Speaker, I really don’t know where to begin with this one.  The item has been touted as “a new programme”.  The Minister of State said and I quote, (read from page 8 of Butler-Turner contribution).

 Now Mr. Speaker, I have had occasion during my five years as Minister to open emergency desks during critical times to service people who are in need.  We did it after the hurricanes in Grand Bahama and New Providence.  I was quite surprised therefore to hear that it was some “new programme” by the Department.  Mr. Speaker, I can only hope that there is no effort here to mislead the public and members of this honourable place. (Read George Mackey Article)  PLP Government policy being presented by the late George Mackey, who was Minister with responsibility for Social Services at the time.
 Mr. Speaker, to plagiarize is defined by Webster’ s Dictionary as “to steal and pass off (the ideas or words of another) as one’s own or to present as new and original an idea or product derived from an existing source”.  This is a very serious thing, Mr. Speaker, persons have been known to lose their jobs over plagiarism, you may recall a very prominent local case recently.
 

POVERTY ALLEVIATION   - $3M Provision

Last year’s allocation - $1M for ex-gratia payment to victims of Sea Hauler incident – no problem
$1/2M to GB for contingency for applications for food assistance – no problem
See page 5 of Butler’s last year contribution.
No programs carried out for poverty alleviation
What is poverty alleviation?
Funds allocated under Head 60 for IDB sponsored poverty alleviation project, the SSN programme ($401,750) also not used, now cut to $5,000
What steps taken toward poverty alleviation in last year?

SOCIAL WORKERS’ CAREER PATH

Read page 17 of Butler’s current Budget contribution
“nothing done by previous government”
Career Path submitted in 2003 should stick to script, Enough projects in pipeline to last for five years, just get on with business of getting them done and at some point let the public know that they are ongoing projects being completed from under the former administration.  That is what I did.

URBAN RENEWAL – ITEM 911506

Item not repeated
What does this mean for Case Aides in New Providence and Grand Bahama who were unceremoniously taken out of Urban Renewal and redeployed to various agencies – 21 days to June 30th, 2008.  What is their fate?  Who can say?
Conditions with persons who replaced workers in GB:  many not qualified, several retirement age, putting burden on GB Social Workers to carry out work.

WP ($24,817)  & SPCs ($26,458)

Insufficient funds for continued work to impact lives of residents and staff
Tour last Thursday – satisfied PLP Govt left both institutions in better condition than met them in terms of infrastructure, as well as staffing and programmes for the residents.
Consultant Psychologist?  No provision

HAS SOCIAL SERVICES BEEN SPLIT UP?

2002 – made full Ministry
2007 coupling with Health could not work (two major portfolios)
No longer with Head 60, now listed in Head 70 even though parts still left in Health – line items for Rehabilitative Welfare Services, Community Development (although it is listed under Head 70), the Bureau of Women’s Affairs and the Residential Care Facilities Establishment, as well as several other items that are normally under the Ministry of Social Services Head. Gives staff uncertainty, destabilizes and impacts efficiency of service.
No note of this important folio switch made in the Budget Communication.  I found that unusual.

LEGISLATION

Heard quite a few ministers apologizing and asking constituents to “bear with them”
“You had five years”, in just one year you are already beginning to realize that some things take more time than you would want them to, through no fault of your own.
Interesting response from Minister on legislation…all have been asking for from day one, was an explanation on behalf of the Bahamian people.  Realize work entailed, and know work already done, but at least one should have been brought into force by now.  How will work in this new configured Social Services, who has carriage?

DOWER RIGHT

Join colleague Frank Smith on bringing attention to an issue that affects women
Dower, right of woman, upon death of husband to one-third interest in real estate owned solely by her husband at the time of his death
Abolished by FNM when Inheritance Act passed in January 2002.  One question at that time was what would happen to existing dower rights, once act came into force.  I recall the assurance being given by those having carriage of the bill that the abolition of dower would apply only to persons who got married after the abolition.
Problem arisen in practice as to who is entitled to dower
Most persons, particularly women operated under presumption that Dower still existed for women married before it was abolished (before January 2002).
Matter addressed by court earlier this year and position taken that in order for a wife to be eligible for Dower, her husband had to have died before the dower was abolished.
Position leaves ALL women married before January 2002, whose husbands are still alive or were alive after January 2002 with a right to Dower.
This is an issue that is creating hardship for many women who often don’t find out about it until their husband dies and they find out they have no rights to his real estate even though they were married before the right was abolished.  As this was not the intent of the law when it was discussed and passed, to my recollection, Government may wish to have a look at this issue.
CONCLUSION
Plea on behalf of SS for staff in all its areas to carry out service – WPC and SPC included.
Congratulate on “On Call Allowance” good incentive for social workers whose work often go unappreciated.
Yamacraw:  Mr. Speaker, I hope that between now and the next Wish to raise following issues:
traffic lights at the intersection of Fox Hill Road/ Joe Farrington Road and Yamacraw Hill Road
feasibility of traffic lights at junction of  Prince Charles Drive and Commonwealth Boulevard
re-configuring of entrance to Star Estates from Prince Charles Drive – safety issues
a sub station of the Road Traffic Department in the Government Complex at Elizabeth Estates so residents in the East can license their vehicles, obtain drivers licenses and inspection stickers
provisions for residents of the East to pay utilities at the Government Complex at Elizabeth
Association -
List of Honorees 2007
Mrs. Rowena Archer- Township of Eastern Estates- oldest 102 years
Mrs. Kathleen Hamilton Phillips of the Township of Nassau East- second oldest- now deceased
Miss Matrika Ward of the Township of Winton Meadows-most deserving youth
Mr. Sheldon Burrows of the Township of Elizabeth Estates- second most deserving youth
The Kathleen Hamilton Phillips Family of The Towwship of Nassau East- most deserving Family
The Doris Baranas Burrows Family of the Township of Yamacraw Beach Estates- second most deserving Family
Canon Delano Archer-Township of Nassau East- Most Outstanding Community Service
Mr. Rupert Roberts of the Township of Yamacraw Hill - Most Outstanding Businessman
Mr. Gregory Burrows of the Township of Treasure Cove- Youth and Sports Contribution
Mr. Bertram Knowles of the Township of Nassau East- Community Service
Mr. Matson Evans of the Township of Eastern Estates -Community Service - deceased
Mr. Hattie Sweeting of the Township of Elizabeth Estates- Community Service

       OLDEST
       Mr. Georgiana Forrest of Nassau East (North) She turns 101 on festival day.

       YOUNGEST
       Miss Royann Dean of Nassau East

       COMMUNITY
       The Honorable Janet Bostwick of Winton Heights
       Mrs. Vilma Thompson- Curling of Winton Heights
       Mrs. Thelma Ford of Nassau East
       Mr. Sidney Deveaux of Colony Village
       Mrs. Ivy Pearl Colebrook of Nassau East (North)

       BUSINESS
       Mr. Alexander Conrad Knowles of Tywnam Heights
       Mr. Clyde Pratt formerly of Winton Meadows, but now of Lyford Cay
       Mr. Phillip Beneby of Eastern Estates

On behalf of the very fine residents of the great Constituency of Yamacraw in the East, I thank you.