SPEAKING NOTES
THE RT. HONOURABLE PERRY G. CHRISTIE
PRIME MINISTER & MINISTER OF FINANCE
 HOUSE OF ASSEMBLY
WEDNESDAY, 7TH JUNE, 2006
 

SECOND READING

Mr. Speaker, I move to have the 2006/07 Appropriation Bill read a second time.
 
Let me state at the very outset that the response by the Bahamian people; and by international investors to the contents of the 2006/07 Budget Communication is extraordinarily positive and gratifying. It is clear that the Government has in place the strategy and the policies, and just as importantly the ministerial team, to implement the chosen strategy and policies, to bring the Bahamian economy to a new higher plain of development. On this solid economic platform we are building the social framework to ensure that all Bahamians participate fully in our new and enhanced development.

The Bahamian people overwhelmingly endorse the consultative and considered approach of my Administration to the taking of major decisions. The Bahamian people clearly reject the alternative of an impulsive, autocratic and highly centralized approach. If one could characterize the approach of the previous administration as being of this kind, one might also note that its achievements are actually quite modest as compared with the consultative and considered approach of my Administration.

If the previous administration is characterised as being autocratic in the interests of getting the job done well, a laudable motive, then this approach led, by some accounts, to a number of investment projects of which one single major project, the first phase of Atlantis, is outstanding. The PLP Party would, of course, dispute that limited success because the Atlantis project was proposed to the pre-1992 PLP administration, but had to be rejected because of the connection with Apartheid in South Africa at that time. However, even allowing the previous administration that limited success, our consultative and considered approach is leading to major projects in virtually every major Family Island, and to major projects in New Providence including phase III of Atlantis. Indeed, phase III is a much larger project than phase I, and, it is of course, phase I of Atlantis on which the previous Administration is obliged to rest its laurels for being considered successful.

Indeed, it is probably true to say that the consultative and considered hallmark of my Government makes the Bahamian authorities more approachable as far as foreign investors are concerned. The success of our investment strategy would appear to bear this out.

This success is becoming increasingly evident. There was the confirmation by no less an institution than the International Monetary Fund that the economic strategy of my Government is one of the most successful ever pursued in this country. Taking account of the investment projects which are in train or which will shortly be in train, the IMF projected a medium-term growth perspective for The Bahamas which will result in The Bahamas realizing and maintaining a level of economic growth unrivalled in this Region, and unequalled in the recent economic history of The Bahamas. As a result we will see the Bahamian tourism sector as among the most attractive and competitive in the world.

In the 10 years of the previous Administration, impressive growth rates of 5% or greater were achieved in 5 years. Under my Administration, such growth rates have already been achieved; and we are set to have many more years, to at least 2012/2013 in the view of the IMF, of similar growth in the view of the IMF! We have placed the Bahamian economy on a growth path never before experienced by our economy.  The Bahamian economy may indeed become the ‘Caribbean Tiger’ to emulate the Asian Tigers.

We will see employment and entrepreneurial opportunities for Bahamians which this country has not seen for many years. As we will be putting in place every facility to enable Bahamians to avail of these opportunities, there is every reason why each and every young Bahamian will have opportunities to shine. We will be making training and educational courses widely available using where appropriate the information from the Urban Renewal Programme. And the Domestic Investments Board will be coordinating its work with the domestic investment facilities – the Bahamas Development Bank, the Bahamas Agricultural & Industrial Corporation, and the Venture Capital Fund – to enable Bahamian entrepreneurs to take advantage of opportunities opening up throughout The Bahamas.

One of the most urgent priorities is to reduce unemployment.

Moreover, we have raised the quality and timeliness of economic data to the point where the Department of Statistics can provide meaningful economic data, of a standard acceptable to the international institutions such as the IMF, which will provide objective evidence of our economic progress. Under the previous Administration it was embarrassing that The Bahamas could not produce such data, and the previous Administration had to rely on IMF estimates of our GDP. We have dealt with this situation and the quality and timeliness of national accounts data from the Department of Statistics meets international standards.

A church in Jamaica on its wayside pulpit carried the slogan “Development must be moral”. Indeed, it must. The objective of economic growth carries meaning only if all citizens share in the blessings of economic progress, if no-one is left behind in any way, if everyone has more than one chance of a meaningful life, and if everyone can feel secure in enjoying the fruits of their own hard work. This is The Bahamas my Government is seeking to construct.

I wish to point out that there was a clerical error in the 2006/07 Revenue Estimates, in Head 21, Interest and Dividends. The amount shown for BEC should be $6.7million and that for BTC should be $25million. A corrected page is available and will be circulated. I apologise to the House for this clerical error. I might add that the error was made in the Ministry of Finance which is responsible for the printing of the Estimates volume. The delayed arrival of the Budget Communication is also regretted in that the documents became available shortly after the House adjourned on Wednesday 31 May, 2006. This delay was due to printing issues at the Government’s printing department which worked very hard to have the document prepared. Members will realize, of course, that the Budget Communication is now a formidable document containing 56 pages for the Communication, 9 pages for Annex A on the Economic Background, and 7 pages of tables, graphs and notes.

I would like to say a few words of clarification regarding the projected 2005/06 outturn for Recurrent Expenditure.

The original Recurrent Expenditure Estimates for 2005/06 amounted to $1,214.33million. I have tabled a Supplementary Appropriation Bill amounting to $19.90million for Recurrent Expenditure. The limit on the Contingency Fund is $20million and that limit has not been exceeded by expenditure. Thus, the total authorized Estimate for Recurrent Expenditure for 2005/06 is $1,234.23million. However, the trends in Recurrent Expenditure up to mid-May, 2006, suggest that the projected outturn will be $1,225million.

The position in relation to Supplementary Appropriations is that the Appropriations provide authorization for the additional expenditures indicated. There are usually other additional expenditures but these expenditures do not require Supplementary Appropriations because the additional expenditures can be met from savings on the same or on other Heads of expenditure. This has been the usual administrative practice and was the practice under the previous administration as well as under this administration.

It is important to bear in mind that the Supplementary Appropriations do not necessarily add to overall expenditure. For example, in 2004/05, the amount of the original Budget Estimates of Recurrent Expenditure was $1,175million. A further $50million was approved by Supplementary Appropriations. This would appear to result in total expenditure of $1,225million. However, the actual outturn was only $1,151million – a saving of $24million on the original Estimates and a saving of $74million on the total of original Estimates and Supplementary Appropriations. In 1993/94, the original Recurrent Expenditure Estimates amounted to $623.41million. The Supplementary Appropriation Act (No.4 of 1993/94, was for $20.79million. Thus, the total approved Estimate for 1993/94 was $644.20million. However, actual expenditure was only $630million.

In the Budget Communication I also mentioned that we must be cautious and responsible in going forward. We have been warned by the IMF about the issue of public sector pay, and we have taken note. We are also warned about the need to eliminate the GFS Deficit and we are heeding that warning. It is easy, but it would be irresponsible, to cut loose with public expenditure without taking care to ensure that at every stage our revenues must keep pace. My Government is steadfast in its commitment to fiscal prudence; the PLP Party has a long and honourable history of service to all the Bahamian people, and that we will not jeopardize by irresponsible behaviour at any time. Others should take care with their utterances and not mislead the Bahamian people into premature commitment to expenditures which could so easily outrun resources.

Mr. SPEAKER:
I wish now to highlight some of the more specific issues that this 2006/2007 Budget addresses and to show Honourable Members how these activities and programmes of my Government is intended to support the overarching theme of the Budget which is growth, employment and progress.

I turn, Mr. Speaker, to the issue of investments.  The turn around in the economy which has been achieved and continues to be achieved by my Government arises from my Government’s success in attracting productive investments in tourism projects in virtually every major Island of The Bahamas, and from my Government’s careful stewardship of this economic expansion the likes of which are without precedent. The projected volume of inward investment is at least $8Billion over the next few years.

In New Providence major proposed developments are:

1. Kerzner Phase III
2. The Baha Mar Development at Cable Beach
3. Ritz Carlton – Rose Island
4. Hilton – Marina /Condominium
5. Arawak Cay – A multi faceted proposal by Bahamian Groups
6. Nassau International Airport Re-development to the tune of some $200m
7. A New Port facility at Clifton Pier
8. Albany – a mixed use resort and residential development in Southwest New Providence
9. A new and revitalized South Ocean Hotel and Gulf Club development

In Grand Bahama and the Family Islands, the picture is equally as bright and promising. Major developments are planned and in some instances already begun in the following Islands. Among the most notable are the following:

1. Bimini  (Bimini Bay
2. Abaco   (Winding Bay and Bakers Bay)
3. Grand Bahama (The Royal Oasis and the multi-billion Ginn Development at West End)
4. Eleuthera (the South Eleuthera Properties Development, Cape Eleuthera, Sky Beach Resort, the Re-development of the Club Med site and firm proposals for the expansion of  Cotton Bay
5. Montana Holdings in Rum Cay
6. In Exuma – numerous high-end developments on the mainland and throughout the Cays.

MR. SPEAKER;
These developments have already begun to have an impact on the islands concerned but equally important, the ripple of good fortune is beginning to be felt across the entire Bahamas.  These anchor developments have already impacted employment figures and have been a contributing factor to a strong GDP.

The Ginn Company has come back to The Bahamas to inform us of the significant increase in its planned investment within its project at West End – Versailles sur Mer.  Ginn’s large print ad ran in the Wall Street Journal last Friday proclaiming the planned splendour of the resort.

The promised investment has increased from $3.2 billion to $4.9 billion.

The master planning of the balance of the project has been completed and detailed designs are in progress.  The number of dwelling units has increased.

To date, Ginn has spent $70 million on its Bahamas project.

Bahamian contractors have been engaged to perform the clearing of 70% of the project’s 2000 acres.  In just the last 3 months, a total of $6 million was spent in this area alone.

In the last 5 months, since the signing of the Heads of Agreement, Ginn has seen its employment of Bahamians grow from only two to 70 at this very date, a very quick start on their way to providing some 5,700 jobs needed to staff this project.

Ginn has opened its Grand Bahama administration office in Freeport within the large CIBC building, and it completing the finishing touches on 10,000 square feet of space at its site in West End to accommodate its construction and sales.  This is in addition to the opening of temporary Customs and Immigration offices at the re-opened West End airport.

A 14-seat commuter airplane has been purchased solely for the use of The Bahamas project.  It flies customers daily from Ginn’s staging airport hangar in Flagler County, Florida to Grand Bahama.

Ginn has budgeted to spend $14 million dollars in sales and marketing of the project in this year alone.  Ginn estimates that once its receives the necessary development approvals it will spend between $6 million and $12 million per month on this project.

A similar story can be told in respect of the joint venture agreement with Mayaguana Development Company Ltd., which was signed on March 7th, just 3 months ago.

This company currently employs 40 Bahamians, including 3 Bahamian Consultants: 17 non Bahamians, including 3 Engineers and one heavy duty equipment instructor who is responsible for the training of young Mayaguanians in operating equipment. Of special note is the fact that the company in Mayaguana has trained 3 women in operating heavy duty excavators and D400 trucks.

The company has erected a 120 ton/hr asphalt plant required to pave the runway, purchased additional equipment and supplies, and continued to grow our work crew such that the total investment to date is in excess of $9.5 million.

To facilitate expected road maintenance a nominal 10 ton/hr mobile asphalt plant has also been ordered with delivery expected in mid 2006.

In the less than two months since the signing of the HOA two additional batches of heavy construction equipment, other vehicles, tools and materials have been received in Mayaguana via chartered vessels.

A drag chain setup suitable for dredging the port and marina area, rated in excess of 100 tons has been delivered to Mayaguana.

Five prefabricated building have been ordered to house power plants, repair facilities, laboratories and additional offices for a total of around 20,000 sq ft under roof.

In order to increase Bahamian participation the company has begun to ship equipment and supplies from South Florida using a Bahamian owned vessel. This is in addition to using the traditional US owned shipping company.

Construction and on site activities
The work crew has expanded to over 30 people from around 15 at the time of the signing of the HOA.

The work crew is expected to grow to around 50 during the initial investment.

The framing for a two storied Technical and Training Center of 8750 sq ft is over 50% complete. The Training Centre is now being supplied by electric power generated on site.

The foundations for the concrete batch plant and the block plant are about 70% complete.

The site organization continues to mature with Bahamian crew chiefs that have been trained over the last year or so.

The site for the new taxiway, apron and airport terminal has been cleared. Additional site clearing along the sides of the runway is on going.

Additional unpaved roads for access to areas to be developed as part of the Initial Project continue to be developed and improved using the limestone curry available.

The company expects that the concrete batch plant will be operational in mid 2006 and that the asphalt plant will be operational in the fourth quarter of 2006.

Runway improvements are expected to begin in early 2007 and what is of important to the entire island of Mayaguana is that an upgrade to the port facilities in the Pirates Well area is expected be completed within 2006 to allow Mayaguana to receive 20 ft standard containers.

This time one year ago, Mayaguana was a dormant economy.  Today some $8 million dollars has already been expended in Mayaguana since the beginning of this project and it is expected that some additional $14 million will be spent in the very near future.

Mr. Speaker;
This unprecedented level of expansion in The Bahamas requires an equal and concomitant commitment by the Government to keep pace and to be the leader – as it were – ensuring that the country’s infrastructure is truly modernized, buttressing the investment of the private sector and creating a climate for further domestic and foreign investment.  I wish therefore Mr. Speaker to dwell for a moment on the provision of infrastructure and services throughout The Bahamas.

With respect to BTC, I must reiterate, Mr. Speaker, that it is my Government’s philosophy and intention to facilitate privatization, but we will do it in a manner that is best for the people of The Bahamas.

Mister Speaker, as was my government’s commitment to the people of The Bahamas that is to provide reliable, affordable telecommunication services, my government approved in 2005 for BTC to expense $6.1 Million to connect the island of Bimini to Grand Bahama and thus the rest of the world via a first class, modern, fiber optic cable network.

I commissioned this network in December 2005 with a personal telephone call at the Office of the Prime Minister.

Since the installation of this new fiber optic cable, the residents and businesses in Bimini are now able to access the internet at high speeds using DSL just like the residents in New Providence and Grand Bahama.

Since the installation of this new cable, BTC is in the process of testing a new GSM network that has been installed in Bimini at a cost of $1 Million.

Mister Speaker, no longer do the residents and businesses of Bimini have to suffer from noisy circuits that are often busy and fading out. They now have modern quality voice and data circuits.

Mister Speaker, my government recognizes that no government should isolate its citizens along lines of telecommunications and that every resident has the right to communicate.

This is not only because of the social urgency for persons to be able to reach one another for whatever purposes, but also because having access to telecommunications can open up new worlds and opportunities to which ordinarily there would be no access.  For example, educational opportunities can now be made more readily available to persons in such areas of a far flung archipelago through the means of distance learning.

Notwithstanding the financial implications or non economic value to the project, my government approved BTC to build a fiber optic submarine cable network connecting fourteen of the major islands of The Bahamas in a self healing ring topology at a cost of $60 Million. This project is referred to as The Bahamas Domestic Submarine cable Network or BDSNi.

I am please to report to this Honourable House, that phase 1 of this project, i.e. connecting New Providence to Inagua via Andros, Eleuthera, Exuma, Long Island, and Ragged Island was completed on time December 31st 2005. The telecommunications traffic between these islands and New Providence and the rest of the world is now being carried by this new fiber optic submarine cable network.

The cable is now being laid coming back down The Bahamas chain.

Mister Speaker, a number of unwelcome visitors came to our country on a tour in the last two years namely; Hurricanes Francis, Jeanne and Wilma. These unwelcome visitors wreaked havoc on our national telecommunications infrastructure.

I am happy to report that the network has been restored and where possible made more robust and redundant.

I wish to publicly thank BTC staff for their dedication during these hurricanes.

As a result of BTC having to rebuild the entire telecommunications infrastructure for Grand Cay, because of the destruction by the hurricane, BTC took the opportunity to install GSM cellular services.

It is the first time that Grand Cay and Walkers Cay residents and visitors have had any kind of cellular services.

Mr. Speaker, the Minister of Works will offer further detail of all the positive developments at The Bahamas Telecommunications Company during this debate, but I should say that given the Cable Bahamas network and the new BTC fibre optic cable, the Government is moving to have the rest of The Bahamas connected to television or to have access to television services.  It may very well be that the remainder of The Bahamas will have such services by the time the next budget is introduced into this Parliament.

Mr. Speaker, I now turn to one of my Government’s greatest successes which has gone unheralded but which has brought much relief to thousands of Bahamians across The Bahamas.  This is the provision of a safe, reliable, high quality of potable water to Bahamians.  This is to remedy one of the areas of greatest neglect which we found upon coming to office.

Since May 2002, the Government has commissioned ten (10) desalination plants in the Family Islands, including: -
 


The Government has also finalized contractual arrangements with the Emerald Bay Resort for the supply of additional desalinated water for western Exuma.  A contract was signed last Thursday to provide the infrastructural works for the supply of water to Rolleville, Stuart Manor, Curtis and surrounding areas.

The Central Eleuthera Desalination Plant is substantially complete and has been commissioned.  This plant will produce 300,000 imperial gallons per day, making it the Corporation’s largest Family Island desalination facility.  This record however will be short lived, as the Corporation is seeking to increase the production capacity of the Georgetown plant from 200,000 to 330,000 imperial gallons per day to meet the ever-increasing demand for potable water in Exuma.

The Government is finalizing plans for the construction of desalination plants within the next six (6) months in: -
 


Using the Public-Private Partnership model, the Government is working with developers of major Family Island projects to ensure that the water supply facilities developed for these projects include the demands of the neighbouring Bahamian communities.  This model is being pursued in Cherokee Sound Abaco (Winding Bay Development), Cat Island, Long Cay, Mayaguana (I-Group Development) and Rum Cay (Montana Holdings Development).

In New Providence, the Government has heard the cries of the people that the supply of water for a modern metropolitan city cannot be based on the supply of water by barge that is subject to regular interruptions due to passing hurricanes, cold fronts and other weather disturbances.

As a part of our Public-Private Partnership philosophy, the Government has awarded a contract for a five (5) million imperial gallons a day desalination plant at Blue Hills to Consolidated Water Company Limited.  The plant was partially commissioned this month (May 2006) and has started to supply 1.6 millions imperial gallons per day of desalination water.  Full commissioning is expected by August 2006.

Negotiations for another plant for northern New Providence are being finalized and a plan for a further plant for Winton, New Providence is in the preliminary stage.

Again, Mr. Speaker, the Minister of Works will offer further detail of positive developments at Water & Sewerage Corporation during his contribution to this debate.

Mr. Speaker;
With respect to the Bahamas Electricity Corporation BEC will continue the upgrading and maintenance of generator plants to reduce load shedding.  Since coming to office, obsolete and inefficient generators were replaced with new more efficient units. This has resulted in reduced fuel costs and improved reliability. Gone are the days of constant load shedding.

BEC will also:


Mr. Speaker;
In touching on the progress of BEC, I just wish to remind members and the Bahamian public that it was this Government which ushered in the first reduction in the cost of electricity for many, many years; and this was done because we were able to find more cost efficient ways of running the Corporation, thus passing the savings on to consumers.

Mr. Speaker;
Provision has been made in this Budget for continued financial support for Bahamasair.  For many, many years successive Ministers of Finance and Ministers responsible for Bahamasair have come to this place to make a case for the continuance in operation of our national airline.  I do not see the need for me to be repetitive at this stage except to say that it is in the best interest of all for Bahamasair to continue to develop and to continue to be competitive in an ever growing competitive field.

Many improvements have been made with respect to the operation of the airline and I wish to commend the Chairman and the Board and members of Management and the entire staff of Bahamasair for keeping the airline afloat in sometimes trying circumstances.

We have agreed to the licencing of Bahamian airline companies to operate scheduled services throughout The Bahamas.  This places additional pressure on Bahamasair – but Bahamasair must be prepared to compete.  However, it should be clearly understood that just as these carriers are being licenced to compete against Bahamasair, they should also expect Bahamasair to compete against them.  Nothing should be taken for granted.

Mr. Speaker;
I now turn to matters of transport, including aviation and port facilities, which again are a critical component of the quest for modern infrastructure, so as to give our people a better quality of life and to provide the environment and the climate for ongoing economic development.

Mr. Speaker;
When my Government took office in 2002, two critical aspects of our nation’s transport system; that is the Nassau International Airport and the Prince George Dock the two principal gateways to this city and this country, were in a state of severe neglect.  Engineering reports commissioned by the previous administration indicated that major runway 14/32 was in a critical state of disrepair and should be repaired as a matter of priority.  The former Government sat on its hands and did nothing.  Immediately upon realizing that rumours about the safety of the runway were circulating in international aviation circles and that the reputation of our country was being threatened, my Government proceeded without delay to contract the services of Lagan Holdings to effect total reconstruction of runway 14/32 at a cost of $40 million.  This work has now been satisfactorily completed, subject to the normal post-contractual review.

Phase 1(b), which includes additional parking space for aircraft as well as taxiways, will be addressed during this fiscal period.

Mr. Speaker;
The following Family Island airports received rehabilitative works since 2002 when my Government came into office:


In the case of the Moss Town, Exuma airport; the developers of Emerald Bay had grave concerns about the capacity of the airport to facilitate an increase in air traffic.  The facility was run down and no preparation had been made by the previous administration to address these concerns.  We were forced to move quickly.

In like manner, the San Salvador airport needed to have major runway works done to accommodate airbus 330 out of Europe, direct from Paris.  As a result of these improvements, and given the Government incentives which were passed on to Club Med to cause its reopening; San Salvador now has full employment.  It does not take a genius to understand who the real procrastinators were.

Finally on this point, I promised the people of Rum Cay during the last elections that I would not return to that island until the roads were improved and a proper airstrip built.  I was able to return to Rum Cay in early 2004 to dedicate the new airstrip, which today has opened up the potential of that island and which will soon be further expanded at the instance of the developer Montana Holdings.

Still on the subject of airports, let me say how proud we are that my Government – after negotiations with the principals of the Stella Maris Company – agreed to the acquisition of the Stella Maris Airport for a nominal sum.  The refurbishment of this airport is being carried out at a cost of $500,000.

There are many exciting developments which have occurred and will occur with our port facilities, however it must be noted that upon assuming office in 2002, the Prince George
Wharf facility was in a disgraceful state of disrepair.  Cruise liners had threatened to pull out as their mega-vessels were being put at great risk due to the absence of proper fenders at that facility.  As a matter of fact, some old tractor tires were being used as substitute, which prompted the cruise industry to make representation to the Government on this sad state of affairs.

Old tires on the dock!

Concerns were expressed that owners of the vessels had apprehensions about insuring their cruise liners to dock in Nassau.  The files indicate serious concerns were expressed to the former administration; but they did nothing.  The tourism economy was jeopardized by their failure to act.  Immediately upon coming to office, my Government acquired and installed bollards and fenders as well as concrete masonry works at a cost of more than $2 million.  Some of this work will continue into the next fiscal period.

It is amazing to note that on something as critical to the national economy and to the safety of thousands that the previous administration sat as if powerless to take positive action.

Mr. Speaker;
Members may draw their own conclusions.

Mr. Speaker;
I believe one of the most important parts of the Government’s legacy will be its record of assessing current actions in the context of how it will affect the future of the Bahamas and its people. Over the last four years, strategic draft development plans for Exuma and Eleuthera, a tourism development strategy for Inagua and a detailed development plan for Mayaguana have been created.  There is also now a plan for a significant portion of the West End of Grand Bahama.

A master plan for downtown Nassau – from Cable Beach to Montague has been completed and a plan to move the container facilities from downtown Nassau to a new inland port behind Commonwealth Breweries and the BEC generating facilities has been developed.  In that regard, the protection of the environment has been uppermost in the Government’s thinking. International consultants have been engaged to assess the work done thus far and the development of the port will not proceed until we are absolutely certain that our all important marine environment off the west end of New Providence has been protected.

The Minister of Energy and Environment is taking the lead developing the port.  Working with the Nassau Economic Development Commission, and shippers and property owners in downtown Nassau as well as at the port itself, to come up with public private partnership which will not only assure that that the port is run efficiently and profitably but that will also give opportunities for Bahamians to participate in its ownership and management.

Moving the port from downtown will free up more than fifty acres of prime waterfront development for conversion into commercial and residential uses and restore Nassau to its rightful place among the leading waterfront cities not only in the Caribbean but in the world.

The plan calls for a continuous and exciting waterfront experience stretching seven miles between the new Baha Mar developments east along Bay Street to Paradise Island. EDAW, one of the pre-eminent planning firms in the world, have estimated that the renaissance of the downtown will result in an annual increase of 98,000 tourist stays, 2 million hours in cruise visitation, and an additional $264 million spent in the area.  Property values are expected increase by $48 million and over 4,000 new jobs will be created.  Clearly there’s a payoff to good planning and urban design.

The Government is not planning this port in isolation. Rather it is part of a comprehensive plan for the development of the southwestern part of the island, the most important part of which is not commercial but historical – namely the Clifton Heritage Park.  The Clifton Heritage Authority is preparing plans for the development of this park for which we are seeking the status of a world heritage site.

This park will explain the heritage of the Bahamians, Lucayans, whites and Blacks and will tell their story through the restoration of buildings and facilities and exhibits.  The park will not just be an historical one.  There will be improvements to existing beaches and special care will be taken to preserve and enhance the area’s environment. The Clifton Heritage Authority which has already had one public workshop will be presenting its ideas for public review over the coming months.

The government is also making sure that developments in the southwest are coordinated and integrated with the surrounding communities.  Separate roads to the park and to the port are proposed.  The latter road will serve the port connecting it directly to Gladstone Road along and parallel to the BEC right of way. It will also provide access to the proposed Albany Development and a rejuvenated South Ocean resort.  The developers will be assisting us in the restoration of beaches throughout the area.

And here, Mr. Speaker, I would wish to add a few words about the National Heritage Park at Clifton.  The Clifton Heritage Authority has been established to direct and administer the creation and operation of this park.

This site is significant to Bahamians and especially to me, because it was a direct result of sustained protest by thousands of Bahamians that I promised that, once my government came to power, efforts would be made to immediately acquire the property for the reuse and enjoyment of all Bahamians and visitors on our shores.  This promise was kept.

Now, plans are underway to establish a National Heritage Park that Bahamians could be proud of, which will include nature trails, bird watching, the admiration of fauna and flora, exercise opportunities.  Slave cabins will also be restored together with traditional historic gardens, to illustrate life during the plantation era and the more modern occupation of the 1930’s – 40’s.

These and other developments, Baha Mar and the Kerzner expansions will put pressure on the land the services and the environment of New Providence.  At some future date New Providence which now has a population of some 215,000 and is already one of the most densely developed islands in the Caribbean may reach a population of 300,000 or more.

This growth will create both opportunities and challenges.  The opportunities relate to the development of a highly competitive urban community rivaling the most important in the Caribbean; the challenge is to make New Providence a livable city where people have good housing, good public services, and increased access to beaches and where the environment is enhanced and protected.  The Government plans to address these issues with the preparation, by the end of the year, of a Master plan for the entire island.  An important part of this plan will be the identification and protection of environmentally significant areas. The plan will outline ways of protecting beaches and providing better access to them.  It will also address the issue of the need for new public facilities to serve the growing New Providence’s growing needs.  In that regard, the Government is currently negotiating - through the Water and Sewerage Corporation - with Baha Mar, ways by which more people throughout the island can be provided with water and sewerage facilities.

The Government has expressed its deep concerns over Bahamians having sufficient access to beaches.  We are in the process of creating additional beaches in New Providence, for example at Montagu.  We have just received a preliminary report on the preservation and enhancement of beach areas all along the shores of New Providence. This report looked at nine beach areas outside of the Clifton-Adelaide area where specific enhancement projects are currently being developed.  These areas make up miles of beach and include, beaches running from Gambier to Delaporte, from Browns Point to Goodman’s Bay, from Go Slow Bend to Saunders Beach from Arawak Cay to Junkanoo Beach, Montagu Beach McPherson’s Bend, Yamacraw Beach, South Beach and Coral Harbour Beach.

Government will carefully consider the new areas for beach developments.  These beaches need varying degrees of protection and enhancement and facilities including additional parking.  Our consultants have indicated that we can enhance these beaches by protecting them with either groins at either end of the beach and/or appropriately placed breakwaters and enhancing them with new sand.  An especially interesting proposal is one suggested for the south beach which will involve the creation of an offshore island (to allow access to deeper water) which could become a major recreation centre for the south similar to what we expect to occur on Arawak Cay. This project would cost some $3.6 million.  There is further study to be done on all of these beaches, but the exciting thing is that the costs to protect the nine beaches are reasonable and we hope to see improvements to some of them within the ensuing period.

It is recognized that growth in New Providence cannot go on forever and that it is desirable to spread of some of this growth to the Family islands.  For that reason the Government continues to strive to secure a major anchor resort for each major island a policy which already has considerable success.  However other measures may be necessary one of which will be the potential for decentralizing services from New Providence.  A review of New Providence’s needs, including close questioning of the need of agencies that need to be in New Providence will be undertaken.

Yet growth in the Family Islands should not occur without serious thought as to how it should be planned and managed.  There is a firm intent to avoid the mistakes that have been made elsewhere.  Each island is to retain its individualism. And, the economic opportunities created by tourism growth must be used to provide the services which people need. People will not move their families from New Providence unless we provide them with the schools and health and commercial services they have in New Providence.  Developers are now required to provide services such as health facilities, nurses and doctors as well as schools and the usual hard services. In this way, communities such as Bimini and Mayaguana will be able to more fully share in the benefits of development.

There is already a completed strategic plans for Exuma and Eleuthera.  The intent is to build on these plans with detailed examination of specific issues.  A review of the Exuma Plan has begun, focusing on the design of the Exuma Town Centre, and the identification of measures to protect environmentally sensitive areas identified by the community in the original plan.  The location of the Exuma container port will be determined.

In Eleuthera we will be using Bahamian consultants to assist in responding to the heavy growth issues on Harbour Island in particular the threat to the historical integrity of the community by such developments as the Valentine dock and condominium developments.  The Central Government, along with the Harbour Island Council as well as with the residents is monitoring such activities to ensure that Harbour Island retains its characters and remains a place where Bahamians can work as well as live.  Non Bahamian residents have agreed to joint venture a master plan for Harbour Island.

The Government will also prepare comprehensive plans for at least three more islands.  In cooperation with the Ginn Company we will be preparing a plan for the West End of Grand Bahama to ensure that it and neighboring communities such as 8-Mile Rock are able to participate in the opportunities this huge new development will create.

At the other end of the country in Inagua, we will continue our work in cooperation with the Inter-American Development Bank to promote eco-tourism on that island. In that regard, I am pleased to report that my government is about to sign an agreement with the Bank to create fund of some $180,000 to provide services to assist local tourism entrepreneurs in Inagua. This fund will be administered by the Bahamas National Trust and the Ministry of Tourism.

In addition, we hope to sign an agreement with the Bank and the Government of Spain to assist us in the preparation of a master development plan for Inagua.  This plan will address tourism development opportunities associated with Lake Rosa, an area famous for its flamingos and designated as an international wetland under RAMSAR Wetlands Convention and the history of salt in Inagua.

Given Inagua’s strategic importance between the rest of the Country, Haiti and Cuba, it is important that Inagua continue to be an economically viable and populated island closely connected to the rest of the country.

The Government recognizes that local plans often require the philosophical base of a wider national context and understands that in some cases, local issues can be in conflict with wider national concerns.  These issues relate to fundamental policies such as the sale and lease of crown land and the amount of land that should be allowed to be owned by foreigners.  It also concerns implementation aspects such as policies about the granting of concessions and perhaps more mundanely but no less importantly, the ability record deeds and locate land so that it can easily traded.  To these ends the Government is involved in four initiatives.

The first relates to the management and location of marinas. We will be presenting a policy of the locations of new marinas that will not only encourage sailing and visitation to the Bahamas but will also protect the look and feel of Bahamian communities and islands.

The second is the Land use planning and Administration Program (LUPAP) a joint program with the Inter-American Development Bank designed to equip the county with tools to better manage its land. This program has been under way for a year and has another 21 months to go.

The third initiative will be refined this year. It is known as the Bahamas Coastal Zone Management Study and will be carried out in cooperation with the IDB.  This program which is being managed by  BEST, will provide, among other things, a  national water quality monitoring program, recommendations on coastal water quality standards, and ways to minimize the hazards of hurricanes and associated winds and floods on both our people their homes and the environment.

Our fourth initiative will take the form of a white paper on land and planning policy which will be released for public review.  This paper will provide an overall basis for development in the country and will address issues such foreign vs. Bahamian land ownership.  It will present an approach to improving the evolving process of evaluating major development applications with a view to bringing the Bahamas planning evaluation process up the standards of expertise and transparency that developers are used to and now expect elsewhere in North America.

Mr. Speaker, the Ministry of Education, Science & Technology has received the largest allocation of the Budget.  This is a continued commitment to the importance which we place on the development of education and on the need to sustain a momentum with respect to the development of out human resources.

In the upcoming fiscal year, the Ministry of Education, Science and Technology will undertake a number of initiatives that will transform the educational system in general and the Ministry schools in particular.

Key among these initiatives are the continued expansion of preschool spaces for three-year olds, improvement of opportunities and services for special needs students; engagement of additional primary school teachers and teacher’s aides for preschools; revision of the technical and vocational education and training curriculum for alignment with industry and career needs; the engagement of an additional cohort of auxiliary policemen and the introduction of a national Bahamas Character Formation programme for government maintained schools; and, the construction and refurbishment of schools.

We have done a proper assessment of the school plant with the help of the Ministry of Public Works and we have considered demographic shifts that have already taken place and that will take place as a result of developments in the Family Islands. The Ministry will reconstruct the T G Glover Primary School and construct a junior high school in south west New Providence, a junior high school in Grand Bahama, and seven schools throughout the Family Islands. Expansions and renovations will be made to other schools.

The Ministry of Education, Science and Technology will also give particular attention to the professional development of school administrators. In addition to bringing district superintendents closer to their districts by physically locating their offices in the districts, the Ministry is working with the OAS to help our teachers become proficient in the use of basic computer software and develop policy guidelines for the use of information communications technology in education. The Ministry also will offer a national training programme for school leadership in conjunction with the College of The Bahamas so that principals can be refreshed and the emerging leadership exposed to theories, practices and techniques of school management.

Education is a lifelong need, and there should be opportunities throughout one’s life to meet this need. During the upcoming school year, the Ministry will introduce a High School Equivalency Diploma Programme, revise the subsidy for the students at University of the West Indies (UWI) St. Augustine Campus, Mount Hope Medical School and the Nassau Clinical Programmes so that all students attending the UWI receive the same level of subsidy, and introduce a national scholarship programme that would allow persons of merit and need who ordinarily could not avail themselves of exposure to tertiary education to pursue tertiary education.

These are the key developments in education that this budget is designed to make possible.

Mr. Speaker;
I assumed responsibility for Culture a few months ago because I believe that it is one of the most essential elements in terms of the definition and development of a people and a nation.

I will talk more about culture and other areas of my portfolio, Mr. Speaker, when I return to conclude this debate, but in the meantime I should indicate that we are moving to conclude a National Cultural Policy which will embrace the recognition that our culture defines who we are and covers the books we write, the songs we sing, the music we play, the dances we dance and the food we eat; this all goes to the root of our economy and our way of life.

NB: Areas to be expanded upon: Culture; National Security…

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