OPENING REMARKS

Mr. Speaker, I am delighted to rise once again on behalf of the ever faithful people of Bain and Grants Town who have elected and re-elected this humble servant for five (5) consecutive elections.  Firstly in 1982, 1987, 1992, 1997 and 2002.  I have had a grand and glorious love affair with all the people of my constituency including my detractors.  I shall always be in their debt; I shall always be their good friend as long as life lasts.  I will always champion their causes with every energy that I can muster.

Mr. Speaker, I must continue at every opportunity to thank the good people of Bain and Grants Town for their political and prayerful support over these many years.

Mr. Speaker, last Budget Debate I promised my Constituents of Bain & Grants Town that a number of programs would be initiated during the course of the year.

Mr. Speaker:
1. I am pleased to confirm that a number of streets were repaved and additional streets will also be repaved during the new fiscal year.
2. The Ministry of Housing has made progress in it’s collection of data and the surveying of vacant lots in the Inner City for compulsory acquisition to allow the government to initiate housing en masse, in the Over The Hill Area
3. Under the Urban Renewal Program the Ministry of Social Services has begun the implementation of the program to ensure that they are more responsive to the needs of people, in particular, the needs of the elderly and unemployed female heads of households.
4. Again, Under the Urban Renewal Program significant work has already been carried out in the demolition of abandoned buildings in the Bain & Grants Town Area.
5. Large numbers of abandoned vehicles have been removed from the area and the program will continue.
6. The Ministry of Health is continuing its program to improve garbage collection in the Inner City Area. And the Ministry of Agriculture is accelerating its program to reduce the number of stray dogs.
7. Wells will be drilled to assist with the major flooding in sections Over the Hill.
8. As promised last June, the Ministry of Housing has moved to aggressively address the long-standing and vexing problem of long overdue repairs to Government Housing Rental Units. The Ministry of Housing will commence during the course of the new Budget year, the building of new rental units for low-income families. Mr. Speaker, I am particularly proud of this fact as the last Public Rental Unit was built in Grants Town in 1992 during the former PLP Administration.
9. Mr. Speaker, the Minister of National Security has delivered on her pledge for increased police presence for our people in the Inner City Areas. We thank the Honourable Deputy Prime Minister and the Commissioner of Police and the Members of the Royal Bahamas Police Force, for the major role they are playing in the Urban Renewal Program in the Inner City.
10. The Minister of Immigration continues to turn up the heat on illegal immigrants in the Inner City.
11. Mr. Speaker, last year I pointed to the vexing problem of unemployment which continues to erode the spirit of our Bahamian brothers and sisters who continue to cry out daily for jobs. I promised that jobs would come through the expansion and growth of the economy, but that it would not happen over night. Mr. Speaker, I will return to the important subject of unemployment momentarily

Mr. Speaker, during the 2002 election campaign I made a personal pledge to the people of the Bain Town section of my constituency to cause to be built a modern community centre.  Land has been located in the Bain Town area and the completion of the purchase is in the process of being finalized.  Architectural renderings have been drawn by a former long time resident of Bain Town and former FNM Senator Mr. Roston Miller.
 

Mr. Speaker, we hope to break ground before the end of this year on this project.  It was a promise made by me and a promise that I will keep with the help of my friends and Almighty God.   Mr. Speaker, the record should also reflect that I caused a community centre to be purchased and paid for, for the benefit of those who reside  on the Grants Town side of my constituency.

I take this opportunity to inform my constituents that computers have been donated for the second time to establish a computer lab at the Grants Town community centre, Quakoo Street, for the benefit of constituents, young and old alike.  Internet connection will be available, free of charge and those constituents interested will be able to establish their own e-mail address thereby allowing them to become a part of the new technological age. Likewise, a Computer Lab will be opened at the former campaign office on Augusta Street, next door to Mt. Olive Baptist Church on Meadow and Augusta Street. The same computer services will be available for the residents of the area.
 
On the last occasion, Mr. Speaker, a culprit broke into the Grants Town Community Centre and stole the majority of the computers.  This is most unfortunate and I trust and hope that all persons of like mind will grow to understand that the computers are there for the benefit of the residents of the constituency.

UNEMPLOYMENT & THE ECONOMY
Mr. Speaker, literally within months of the Progressive Liberal Party’s success in the May 2, 2002 General Elections our detractors commenced their onslaught by referring to the new government as the do-nothing Christie Government. The political posturing was that the new Christie Government should deliver immediately on their promise of help and hope.

Mr. Speaker, I decided to review the performance of the Ingraham Government in its first 18 months of coming to Office. And what did I find? Firstly, the FNM was successful in the August 19, 1992 General Election.

1. In January 1993, the FNM Government promised hundreds of new jobs in Eleuthera, Abaco and Exuma.
2. In March of 1993, the former Prime Minister announced a 240-room Hyatt Hotel to be built at Cape Eleuthera. Mr. Speaker, you have lived in Eleuthera all of your life, can you indicate by a thumbs up or thumbs down, whether that hotel was ever built during the FNM ten years of governance?
3. In June of 1993, the FNM Government announced the building of a 500-room hotel at West End, Grand Bahama. The promoters were RK Contractors and Doral Hotel, Florida.
4. In July of 1993, the FNM Government promised a third casino in Grand Bahama to be located in West End.
5. In August 1993, the FNM Government announced a new hotel project at Treasure Cay, Abaco.

Mr. Speaker, let us contrast the first year of FNM Governance, with that of the new PLP Administration. I think, Mr. Speaker, it would best if I shared with this Parliament an e-mail I received from Abaco, which I believe reasonably and accurately best describes the new
PLP Government. (READ E-MAIL).

Mr. Speaker, I would be dishonest if I did not expect that the new PLP Government would be criticized. That’s simply a part of the political landscape. It is my hope, Mr. Speaker, that as we progress as a country and as a people the level of political maturity would be enhanced and that the nit-picking and the grandstanding and wasting of precious time would be reduced. We need to reduce the level of polarization in our country.

Polarization engenders hate and divisiveness in our country. Why do we always have to look at someone and attach a political label to them? It is my hope and prayer that we would receive inspiration from on high and learn a lesson from the pages of other countries whose track records provide classic examples of what not to follow.

MEMBER FOR NORTH ABACO
Mr. Speaker:

I am advised that the former Prime Minister, the Member for North Abaco in his usual flippant manner decried the ongoing drain on the Public Treasury by the Broadcasting Corporation of The Bahamas (ZNS).  What I find so amazing is that the former Prime Minister failed to disclose the role he played in contributing to the level of losses at ZNS.

Mr. Speaker, the former government with deliberateness induced two (2) executives from a private radio station to join ZNS.   The compensation package of the two (2) individuals, I am advised,  took the level of salary at ZNS to a significantly higher level, way beyond that of the salary paid to the General Manager.   Whilst I hold no brief for either of the two individuals, I admire their skills in negotiating the super details they got.  Further, Mr. Speaker, what I do not understand is how a person on the one hand, can bemoan a condition, then with a dry eye not even acknowledge that his action, in part, contributed directly to the existing financial dilemma at ZNS.  I have concluded in my mind that the action was a political one which backfired and now the taxpayers have to carry the burden.

Mr. Speaker, I am of the clear view that anyone who asserts  that the FNM government left the economy of The Bahamas in good shape should seriously consider paying a visit to Dr. Nelson Clarke, Chief of Psychiatry at Sandilands Hospital.

Mr. Speaker, the new PLP government found an outstanding loan  of $125 million, many unpaid bills and bills are still coming in, left behind by the previous administration.

Mr. Speaker, the claim of the economy being in good shape is as real as someone claiming that it is currently snowing in Rawson Square.

Mr. Speaker, I understand that the Member for North Abaco claimed that the economy was buoyant when the salary increases for the Civil Service was agreed.  I undersand he further acknowledged that the economy had slowed and that it  started before 911.

I am advised that the Member for North Abaco asserts that the money can be paid to the Civil Service if the money due from two (2) casinos are collected; but the good Member, I am told, Mr. Speaker, also asserts that the two casinos are in trouble.

Mr. Speaker, I am obliged to ask the question:  why did the FNM government, during their term in office, not collect the taxes due from the casinos.  Mr. Speaker, it is clearly a case of double talk and rhetoric coming from a man who is clearly still “jonesing” for power.  But thanks be to God, the good people of The Bahamas spoke loudly and clearly on May 2nd.

It is my hope, Mr. Speaker, that the former Member for North Abaco is able to achieve inner peace and will not continue his protracted tirades in this House by repeating over and over again what his government did or did not do.  It is time, my brother, to achieve inner peace.
 

THE MACRO ECONOMICS FUNDAMENTALS
Mr. Speaker, I wish to state emphatically that I support the Prime Minister and Minister of Finance’s call for the commitment of the government to sound macro economic and fiscal management in a world of great uncertainty.  I also endorse without reservation that macro economic stability protects the lower income and middle income groups against the ravages of inflation and savage economic adjustment.  Mr. Speaker, I also endorse the declaration that the government is deeply committed to improve the welfare of Bahamian people and will move forward deliberately and carefully to implement the appropriate policy to achieve this purpose.

Mr. Speaker, it is in this context that I implore the indulgence of Civil Servants in understanding the reasons why the government, with great reluctance, found it necessary to delay the payment of the previously agreed  salary increase for Civil Servants.

BAHAMAS ELECTRICITY CORPORATION
Mr. Speaker, I now wish firstly to deal with the Public Corporations for which I hold Ministerial responsibility and will commence with the Bahamas Electricity Corporation:

The Bahamas Electricity Corporation (BEC) is involved in a number of initiatives to ensure that the electrical infrastructure in New Providence/Paradise Island, as well as the 28 supply areas throughout the Family Islands continues to keep pace with the ever increasing demand for electricity.

The initiatives are intended to ensure that the quality of supplies and customer service continue to improve and be maintained at world-class standards.
 
To this end, the Corporation recently embarked on a “High Performance Workplace” initiative, which will transform the culture of the Organization.  The major emphasis is being placed on the continuous improvement of productivity and customer services.
 
The new aggressive annual corporate wide Planned Preventative Maintenance Programme, which is intensified during the off peak months between October and June, is currently nearing completion. Most of the scheduled power plant as well as transmission and distribution systems maintenance have been completed with the remainder to be completed before mid-Summer.
 
Another initiative which involves the addition of new generators to keep pace with the growing demand as well as to replace old inefficient plants, is in progress.

NEW PROVIDENCE
GENERATION – CLIFTON PIER POWER STATION
Mr. Speaker, in New Providence, a 30-megawatt slow speed diesel engine project, D/A12, at Clifton Pier is in the final stages of completion.  The reliability run commenced at 3:00 p.m. on Tuesday, June 17, 2003.  If the reliability run (for 30 days) is successfully completed,  the plant will be fully commissioned on July 16th .  Total cost of this unit is some $40 million.  Mr. Speaker, may I remind Honourable members that this diesel engine, D/A12, was originally scheduled for commissioning on August 31st of 2002.  This project is therefore eleven months behind schedule.

Mr. Speaker, the delay in the commissioning of D/A12 has significantly impacted the cost of fuel for BEC.  The gas turbines at Blue Hills were used to provide the power that D/A12 was not able to provide during these past eleven months.   Gas turbines burn ADO (diesel fuel) and D/A12 generator burns Bunker C fuel.  The cost of Bunker C fuel is significantly lower than the cost of ADO diesel fuel.  The cost savings to BEC in utilizing Bunker C fuel versus ADO fuel as it relates to D/A12 is $46,600 a day or $17M per annum.  Mr. Speaker, as D/A12 is eleven months behind its commissioning day, and has resulted in additional fuel cost to the Bahamian taxpayers of  $15,602,000 (millions).  Mr. Speaker, I invite members opposite in this House and the detractors of this Government to consider the million dollars spent on bleachers for the Boxing Day and New Years Day Junkanoo parades versus the loss of $15,602,000.

GENERATION – BLUE HILLS POWER STATION
Mr. Speaker, In parallel with the new plant installations at Clifton Pier a 23-megawatt ultra modern gas turbine unit (GT4) was commissioned last September at a cost of approximately $11 million.   The successful commissioning within budget and on schedule resulted in BEC entering into a contract to purchase another similar unit (GT8R) which is currently in the final phase of erection and is scheduled to be commissioned by the end of this month.  Cost for this unit is approximately $11 million.  Both units were supplier financed.

The acquisition of these two gas turbines is in keeping with the modernisation programme for Blue Hills Power Station. The programme which is in progress, will culminate in the retirement of old inefficient “fuel guzzler” gas turbine units, most of which were installed between the 1970’s and 1990’s.  The instalment of these modern units will increase output and significantly improve fuel efficiency.

Additionally, it is intended to utilize the exhaust gases from these two gas turbine units (GT4 & GT8R) to produce steam in waste heat boilers which will drive a steam turbine to produce an additional 20 megawatts of power without the need to burn additional fuel. (i.e. the combination of the two gas turbines along with the waste heat boilers and steam turbine will comprise a “Combined Cycle” unit).

This Combined Cycle unit which is scheduled to be in operation in approximately two (2) years will result in significant fuel cost savings to BEC.

TRANSMISSION & DISTRIBUTION
Mr. Speaker, In order to accommodate the increased export of power from new generation plants and to cater for the increased load to the transmission and distribution systems, the following works are in progress:-
· a new 132,000 volt line connecting Clifton Pier and Cable Beach (Leisure Time) is in the final stage of construction
· a new substation is being constructed on West Avenue off Collins Avenue .
· a number of upgrades and reinforcements at various substations
Total cost for the transmission and distribution projects is $19 million.

BIG POND REDEVELOPMENT
In New Providence, Phase I of the Big Pond Redevelopment Programme will entail the complete refurbishment of the old Big Pond Power Station building, and will result in an ultra modern complex to house the Field Operations staff, a new Control Centre, satellite workshops and a Training Department.  This new building is scheduled to be fully occupied by the end of June after which the demolition of old buildings, landscaping and provision of new parking facilities will follow at a total cost of $11.5 million.

The control centre, equipped with a Supervisory Control and Data Acquisition System, (SCADA) will soon be operational.  The new system will improve the management of the power supplies.

FAMILY ISLANDS
EXUMA
Initiatives in the Family Islands are dominated by projects in Exuma , which are mainly to accommodate the new Emerald Bay Four Seasons Resort.

There, a new $8 million 8.8 megawatt power station is in the final stages of completion and is scheduled to be in operation by the end of July.  Additionally, $1.8 million of new transmission/distribution power lines have been constructed to enable reliable supplies to be provided to Emerald Bay and the other various touristic projects including the recently announced Crab Cay development.

RAGGED ISLAND
Mr. Speaker, a new power station is in the initial phase of construction in Ragged Island and is expected to be completed within the next twelve months.  This project is expected to cost some $200,000.00.

ELEUTHERA
Further, a new fuel oil pipeline and storage facilities have recently been completed in Rock Sound at a total cost of $670,000.  Planning for the expansion of the Power Plant is also underway to accommodate the proposed developments earmarked for South Eleuthera.

ABACO
In Abaco, the generation as well as the transmission and distribution infrastructure is being upgraded and reinforced to accommodate the forecasted load developments. (e.g. The recently announced development at Cherokee Sound.)

Also in the Abaco’s, a new programme to replace faulty submarine cables which connect  the various Cays and which have deteriorated over the years is in progress with a view to completing the programme within 18 months.

STREET LIGHTING
A significant amount of money has been dedicated to street lighting in New Providence over the past few years.  To date, the programme is 98% complete with few areas remaining, which include Sea Breeze, Imperial Park and parts of Skyline Drive, scheduled for completion by the end of this year.
Installation of street lighting within the Family Islands is an ongoing activity.  Street lights are continually being installed in each settlement or subdivision as an integral part of the required extension of the distribution system.

CUSTOMER SERVICE INITIATIVES
AUTOMATIC VOICE RESPONSE
Mr. Speaker, following a successful pilot project in Eleuthera, the Corporation is in the process of launching the Automatic Voice Response service for its New Providence customers.  This system allows the customer to have access to  information relevant to their account as well as other corporate services, including damage claims and conservation tips etc.  The system may be accessed using any touch telephone.  Once successfully implemented in New Providence, the system will be introduced to the various Family Islands.

AUTOMATIC METER READING
Further, the Corporation is in the process of installing new electricity consumption meters that can be read remotely and automatically thus reducing errors in reading and consequential queries by consumers.

REVIEW OF TARIFF
Finally, Mr. Speaker, and most importantly, the Bahamas Electricity Corporation is reviewing the Tariff structure taking into account the following parameters:-
· Refinancing of several long-term loans to take advantage of savings as a result of lower interest rates;

· Improved productivity through the introduction of the “High Performance Workplace” initiative;

· Introduction of ultra-modern, more fuel-efficient plants, which will result in lower fuel, costs;

·  Signing of a new fuel oil supply contract (by the end of July 2003),  and

· The application of a Maximum Demand Charge to be applied twice annually rather than once per year.  (This will effectively lower the Demand charge over the course of the year).

It is anticipated that following this review, a recommendation will be made to reduce the tariff on electricity to all customers effective October 1st, 2003 the start of BEC’s financial year.

Mr. Speaker, the Bahamas Electricity Corporation owns its storage tanks at Clifton.  During the past five years, the tanks were leased to one of the major fuel suppliers at a cost of $80,000 per annum.  The tanks were used to store BEC’s fuel and fuel of other customers of the fuel supplier.  The previous contract of five (5) years was at a cost of $40,000 per month.  Therefore, the total amount earned by BEC for lease of its storage tanks for the past ten (10) years provided an income to BEC of $600,000.

Mr. Speaker, after prudent and judicious evaluation, and the application of simple business judgement, it was determined that BEC was taken advantage of by agreeing to very low storage fees during the past ten (10) years.  The simple fact of the matter is, Mr. Speaker, that the new storage fee to be paid by the fuel supplier to BEC has been increased to $1.4M per annum.  This means, Mr. Speaker, that over the past ten (10) years BEC has earned $600,000 for storage fees when they should have earned $14,000,000, a give away of $13.4 million over the past ten (10) years.

Mr. Speaker, the other part of the dilemma is that BEC has been paying $2 to $3 per barrel more for its fuel than Freeport Power and Light.  BEC purchases considerably more fuel than Freeport Power and Light yet it was paying considerably more than Freeport Power and Light paid for its fuel.

 Mr. Speaker, one is obliged to ask why was this allowed to happen? Is it reasonable to conclude that someone was asleep at the wheel? Who was the Minister responsible? Who appointed that Minister? Why was this pillage allowed to happen, Mr. Speaker? Yet Mr. Speaker, those opposite are “jonesing” to return to power. I think Mr. Speaker, that it would be best for them to be left at that proverbial wheel fast asleep.
 
Mr. Speaker, BEC’s annual saving on its new fuel contract to become effective next month is $3.7 million.

Mr. Speaker, it is the sum total of all of these deficiencies and bad management that has made it impossible for BEC under the previous administration to pass on any reduction in the cost of electricity to the general public.  Mr. Speaker, October 1st  2003 will be an historic red letter day for all Bahamians as it will mark the first time in BEC’s history that the cost of electricity will be reduced to all of BEC’s customers in New Providence, Paradise Island and the Family Islands.  I wish to salute the new Board of Directors and the invigorated management of BEC for their guidance and creative initiative in making the pending reduction possible.

Mr. Speaker, this is a super classic example of the new Progressive Liberal Party headed by the Honourable Perry G. Christie delivering on its campaign promise and confirms the Government’s ability to deliver hope and help to all the people of the Commonwealth of The Bahamas.

Mr. Speaker, this reduction will bring much needed relief to the pockets of ordinary Bahamians, business houses, in particular hotels who have been crying out for relief. Finally Mr. Speaker, the question should be how do you spell relief? It’s simple Mr. Speaker, it’s PLP.

Mr. Speaker, many will recall, when I was in opposition I raised all kinds of hell with the former administration for its failure to table in this Parliament,  timely financial statements in the various areas of the Government.  Despite the promise to so do, they failed miserably in that regard.   The New PLP Government has promised that it will be different from the former administration.  In that regard, Mr. Speaker, and with your leave I take great pleasure in laying on the Table of this House the audited financial statements of the Bahamas Electricity  Corporation for the year ended September 30, 2002.
 

WATER & SEWERAGE CORPORATION

Mr. Speaker, the funds allocated to the Water and Sewerage Corporation in this year’s budget will go a long way in defraying the short-term debts of the Corporation.  It is imperative that credibility with International Lending Agencies is maintained in spite of other considerations.  Additionally, since residents in many Family Islands are not paying for water at all or paying rates well below the operating cost, Government assistance is, and will continue to be required to cover the Corporation’s major commitments.

THE FAMILY ISLANDS
Over the course of the past year, the Government has made a commitment to provide water produced by the  process known as Reverse Osmosis in those islands where potable water is required, because of the lack of freshwater resources.  To facilitate this process, the Government has agreed to subsidize the cost of water supplied by recognised private sector specialists in the field.  Accordingly, Mr. Speaker, up to $1.8 million per year will be allocated to the Water and Sewerage Corporation to subsidize private water suppliers in  a total of twelve (12) Islands.

Desalinated water is presently available on six (6) Family Islands including  Bimini and Inagua. Additional Reverse Osmosis plants are about to be built on Exuma, Long Island and in South Eleuthera.  The Government is also in the process of installing water lines in Farmer’s Cay and Staniel Cay so that households in these Cays will benefit from the availability of piped water produced by Reverse Osmosis.  Desalination projects are also planned for Ragged Island  and San Salvador, and negotiations are in train with contractors for these three (3) Islands as I speak.

NEW PROVIDENCE
Mr. Speaker, the natural groundwater resource in New Providence has been strained over the years and is under serious attack from all the modern developments currently in progress. While these developments may be viewed as healthy signs of economic progress and growth, we must, nevertheless, also be mindful of the adverse effects that can result from such progress.

THE NEED FOR LEGISLATIVE MEASURES TO PROTECT WATER RESOURCES

As  development takes place, proper infrastructure is of paramount importance and should take precedence over all other features.  Essential services such as water and sewerage, therefore, must take the highest priority since they are services that are indispensable to normal human existence.  While advanced technology may offer costly alternative solutions, the natural resources of the country must always be protected for this generation and generations to come.

Mr. Speaker, in this regard, the protection of groundwater resources must become an important consideration for future legislation.  The risk of pollution is increasing daily and the use of polluted wells for portable water continues to be the norm and an accepted practice.  The consequences are far too great to be ignored and therefore Regulations must be put in place to protect us all.  As the Corporation is not the only water provider in the Country, it is imperative that everyone in the business play by the same rules to ensure the sustainability of groundwater as a primary source of supply.

CAPITAL DEVELOPMENT PROJECTS
Mr. Speaker, many capital development projects have been identified again for this fiscal year.  However, the priority for the Corporation will be to continue with its efforts to reduce the significant losses in the water distribution system. The Corporation is cognizant of the fact that this situation has, over the years, been a major obstacle to the its financial success and continues to be a deterrent to future capital considerations.

Mr. Speaker, It is also a contributing factor to the general perception that the investments made in the Corporation over the many years have not kept pace with the infrastructure improvements that are required.  As a result, there is now a major backlog of projects to be undertaken to remedy the situation.  In New Providence, certain areas have been identified where the simple solution of setting things right is to carry out renewals of the entire water supply system.  To this end, a comprehensive program will be developed and the Corporation, along with the private sector, will implement a strategy for alleviating this water loss problem over the next three years.

INSTITUTIONAL STRENGTHENING
Mr. Speaker, I have been given the assurance that the employees of the Corporation are committed to turning the organisation around and therefore are working assiduously towards a higher performance goal.  Very shortly, a new Performance Management System will be introduced so that individual performances might be more easily measured as a contribution to the greater objectives.  This new merit-based system will replace the old order of general salary increases.  Those employees who make the greater contribution will be compensated likewise.

Similarly, those employees who do not meet measured targets will have to be evaluated and their services reassessed in the context of the needs of the organisation.   It is anticipated that this system should foster a higher degree of individual responsibility and productivity and provide significant benefits to the Corporation and the Country.  It is also expected that this model will be used in other sectors to help raise productivity to a higher level - an achievement that will be crucial to the future success of this nation, especially in these difficult economic times.

Mr. Speaker, it is with a great deal of pleasure that I again request your leave to table the audited financial statements of the Water and Sewerage Corporation for the year ended 31 December, 2002.
 

BAHAMAS TELECOMMUNICATIONS COMPANY
Mr. Speaker, Telecommunications in The Bahamas is the under girding pillar of our two main industries, Tourism and Financial Services. Because of its importance to the engines of our economy, my government, since coming to office in May 2002, has permitted the continued development of the telecommunications sector while at the same time enhancing the asset value of the State Owned Enterprise (SOE) for Telecommunications services, BaTelCo.

To demonstrate its political will to bring to an end the protracted privatization affair of BaTelCo, my government extended its first session of Parliament, through the summer of 2002, so as to facilitate the passage of Bills for the vesting of the assets of the Bahamas Telecommunications Corporation to the Bahamas Telecommunications Company. This vesting was delayed almost a year by the previous administration at a cost of more than One Hundred Thousand Dollars ($100,000) per month.

It is noteworthy, Mr. Speaker, that a new board of Directors was appointed by my government on July 29th 2002, and vesting took place on 4th September, a period of just under two (2) months.

By November 2002, seven months after my government came to power, and some One Hundred and Thirty Million Dollars ($130million) after the former administration started this process, eight potential bidders were scheduled to visit BTC to commence the first round of Due Diligence.

My government, recognizing that in order to preserve the asset value of BTC, capital injection must of necessity, at least, equal depreciation sought to capitalize BTC and allow it to meet its obligation to the Bahamian people in the provision of telecommunication services, while at the same time bring closure to the privatization process.

As Minister responsible, I wish to inform this Honourable House, that for the first time that I can remember, the External Auditors have presented a clean Audit of BTC’s Annual Financial Accounts without any qualifications.

I wish therefore, to publicly thank the Board of Directors and the staff of BTC for this monumental and historical accomplishment.

Mr. Speaker and other Honourable Members of this House, I wish to also inform you of the investments made by BTC during the last fiscal year and what projections for capital investments are being made for this new fiscal year.

CROOKED ISLAND, ACKLINS AND MAYGUANA (SOUTH EAST ISLANDS)
As I speak, BTC is bringing closure to a $4,030,664.00 project that will provide wireless telephone services to settlements on the Islands of Acklins, Crooked Island and Mayaguana. I am pleased to announce that the residents on these islands, will have an opportunity to have telephones in their homes, for the first time, by the end of this month, June 2003.

Mr. Speaker, by the middle of September of this year, the residents of Salina Point, Acklins will have telephone services for the first time.  This installation will be carried out at a cost of Six Hundred and Thirty Nine Thousand Dollars ($639,000.00).

CELLULAR EXPANSION
In March 2003, BTC installed two new cell-sites. One was installed in Moores Island, Abaco and the other in Harbour Island, Eleuthera. This installation brought cellular services to Moores Island for the first time.

The installation in Harbour Island provided for much improved cellular services on the Island of Eleuthera.

Fox Hill CTO (Central Telegraph Office)
Last month, May 2003, BTC opened a new payment center in Fox Hill, providing much relief to the residents of the eastern end of New Providence who had to suffer the hardship of leaving their community of work and residence to pay bills and apply for telecommunication services. This was a fulfillment of a promise the honourable member made to the constituency of Fox Hill.

CENTRAL OFFICES UPGRADES
Mr. Speaker, in preparation for privatization, the operating software in BaTelCo’s Central Offices were allowed to become discontinued by the previous administration. For the most part, the manufacturer no longer supported these Switches. This action meant, that if there was a catastrophic failure, the manufacturer were not obligated to maintain intellectual property to support those switches, which could potentially result in major outages in the telephone network.

During this fiscal year, that is beginning September 2002, BTC spent $9,519,224.60 upgrading equipment at all of  its Central Offices on all the islands to the latest software so as to bring it in line with the manufacturer’s compliance.

Further, BTC has spent an additional $2,355,233.31 to enhance its supply of spare lines in Spanish Wells, and in High Rock Grand Bahama, just to name a few of the areas.

It should be noted that this $11.8 Million investment does not include the 42% Customs Duties that BTC would have paid on the acquisition of the equipment.

SONET MICROWAVE RADIO LINKS FOR ANDROS AND CENTRAL BAHAMS
Mr. Speaker, BTC also invested $6,750,000.00 to improve the quality, reliability and scalability of telecom services offered to Andros, Eleuthera, Exuma and Long Island as well as to provide a redundant path for the Bahamas Domestic Submarine Cable Network, to replace the factory discontinued and exhausted digital microwave radio links, that are used to route traffic back to Nassau from these islands and then to the rest of The Bahamas and the world.

EMERALD BAY EXUMA
In order to facilitate the telecommunications needs of the Emerald Bay Four Seasons hotel, during the construction phase, BTC installed fibre optic lines between Emerald Bay and George Town Exuma at a cost of $523,150.00.  Additionally, the network back to Nassau was enhanced at a cost of $490,287.00 for a net total investment of $1,013,438.14.
 
The George Town Telephone Exchange was also upgraded at a cost of 1,861,615.00.

Mr. Speaker, BTC has invested more than $2,875,053.00 in infrastructure to facilitate the construction phase of the Emerald Bay Four Seasons hotel.
The Farmers Hill CTO was relocated to better facilities at a cost of $20,000.00.

GRAND BAHAMA
In Grand Bahama, fibre optic connectivity is being completed to Taino Beach resort at a cost of $446,050 and to the Lucayan Towers condominium complex at a cost of $393,690.

Some $500,000.00 has also been provided for rehab work to improve both underground and overhead cables in Grand Bahama.  This work is in progress.

NEW PROVIDENCE

Mr. Speaker, in New Providence, the Exchanges’ Capacity have been upgraded at a cost of $729,765.00

To improve its ability to test customers’ lines for additional value added services, BTC is presently installing toll grade test equipment at a cost of $1,185,300.00.

BTC has also enhanced and expanded its ability to provide telephone services along Clifton Bay Drive and Lyford Cay, by investing $680,070 in Fibre to the Curb (FTTC) equipment and in order to facilitate additional services in Venice Bay Subdivision and the Government Subdivision at a cost of $1,090,485.00.

BTC is also in the process of extending and expanding its telephone services in the Marshall Road, Cowpen Road, Gladstone Road and Pinewood Gardens areas at a cost of  $4,090,485.00 and the security at the BaTelNet platform is being beefed up at a cost of $268,489.

To facilitate the installation of new equipment, the Soldier Road Exchange is being extended at a cost of $327,860.00.

BIMINI
The Radio equipment providing telephone services to Buccaneer on South Bimini was upgraded at a cost of $126,918.

CAT ISLAND
A new Technical centre is being constructed in Cat Island at a cost of $693,154.00.

VEHICLES
BTC is presently in the process of upgrading/replacing its fleet of vehicles at a cost of $6,713,526.00 and the retired equipment will be sold to the public with the view of recovering a portion of the expenditure.

Mr. Speaker, It is envisioned that during the fiscal year 2003 to 2004, BTC will complete and commit to significant capital development works. These development projects would include a GSM overlay of the existing TDMA cellular network.

GSM OVERLAY
This new cellular network will begin the migration from a 2G (2nd Generation) TDMA cellular network to a 2.5G (2 ½ Generation) GSM Cellular network.

This new network will not only allow BTC to lift the already six-month-old moratorium on cellular subscription, but would also allow BTC to introduce new features and services.
GSM coupled with GPRS and EDGE will allow cellular customers to buy phones that will allow them to exchange pictures with one another that were taken with the camera that is built into their phones. This network will also allow customers to access the Internet right from their cellular phones.

Since the Introduction of prepaid cellular service 18 months ago, more than $70 million of minutes have been sold. The introduction of GSM will allow BTC to restructure its rates. It will also provide additional revenue streams for the Bahamian entrepreneur.

Bahamas Domestic Submarine Fiber Optic Cable Network.
Mr. Speaker, In its continuing effort to provide the best telecommunications services to all Bahamians no matter where they are located, BTC has budgeted $60 Million for the installation of a Bahamas Domestic Submarine fibre cable Network connecting the Islands of Inagua, Mayaguana, Long Island, Exuma, Eleuthera, San Salvador and Andros to New Providence. The Islands of Cat Island and Crooked Island are already connected to New Providence by the ARCOS submarine fibre optic cable network.

This new network fibre optic submarine cable network will provide a modern, scaleable, reliable network that will position BTC to have in place, a platform from which the Government of The Bahamas can launch its e-government, e-commerce, e-business, e-medicine, and e-education initiatives.

WIRELESS INTERNET SERVICE
In an effort to expand the Batelnet user base, a wireless Internet service is being developed; BTC has been working with several of our vendors to fine-tune our deployments.
Our proposed method of accomplishing this Wireless Internet system has, in addition to the current Batelnet ISP infrastructure, the need to expand the Billing system to have seamless movement from the wired system to the wireless system.

With the advent of the opening of the 2.5Ghz and 5Ghz radio spectrum to unlicensed low powered radio transmitters (USA), Wireless Internet access is making major inroads in the PC (Personal Computers) and PDA (Palm Pilot) connectivity arena daily. Due to the importation of these devices without PUC regulation, private homeowners and some businesses are using the same technology to share their Internet service with others. Users and potential customers are starting to learn the benefits of the Wireless Internet in both their homes and their work places.

The additional equipment required to gain access to a Wireless Internet is falling in price rapidly and some major vendors are now including the Wireless Internet hardware in their finished product. I.e. Palms Pilots and Laptops
Wireless Internet access is now starting to appear in hotels, airport waiting areas and restaurants as single provider points of access to the Internet.

The current potential growth rate for this type of customer access has been estimated at Seven Hundred Thousand new Wireless Internet Access users a year in North America alone. Bahamians are savvier than ever; therefore the expectation is already here.

Potential deployment site considerations include:
· Public Access Architecture (Central) Large hotspot, example, Airport, Hotels
· Public Access Architecture (Central) Small single Cell Hotspots, example, Small Resorts, Restaurants, Coffee Shops

Noteworthy is the fact that BTC recently  provided Wireless Internet Access at the CANTO conference in several areas, example, the Business Centre and Exhibition floor. The DSL network provides the main link back to Batelnet for Internet access. This means that we can leverage the DSL network to provide additional Internet access.

So, Mr. Speaker, you can see that while my government is pursuing the privatisation initiative of BTC, it is also making every effort to reduce the digital divide in our country.
In doing so, my government wishes to ensure that the High school student in Inagua has the same access to the Internet as the high school student in New Providence and Grand Bahama to enhance his opportunities to pass with distinction his BGCSEs.

My government wants to ensure, that the College of the Bahamas Student in George Town Exuma has as much access to the Internet as the College of The Bahamas students in New Providence and Grand Bahama.

To this end, BTC is expected to fulfil its fiduciary responsibilities to the government of The Bahamas and the owners of the Company, the Bahamian people.
 

Mr. Speaker, I again for the third and final time today request your leave to table the audited financial statements of Bahamas Telecommunications Company for the year ended 31 December, 2002.
 

BAHAMASAIR
Mr. Speaker, Bahamasair was formed with the mandate to provide airlift between the Family of Islands and Nassau and to enhance the Tourism product by providing airlift from the U.S. mainland. While the company has been successful in achieving this objective, the airline’s financial performance over the years has been dismal and as a result has had to turn to its shareholder on an annual basis for subsidy.  Stakeholders have all agreed that the airline was never properly funded from inception.  To date, the airline’s losses are $332M and at the close of the current fiscal year will amount to some $338M.  Capital injection from the Shareholder as of April 2003 amounted to $240M and will close the current fiscal year at $247M.

Last 10 Years
Mr. Speaker, over the last ten years the airline’s revenue totalled $581M for an average of $58M annually while expenses totaled $770M for an average of $77M.  This computes to a residual average loss of $19M over the last decade.  This negative trend has accelerated over the last three years with losses averaging some $27.6M.  This spiralling financial trend has resulted in the shareholder ‘pumping’ $150M into the airline over the last decade, including $63M over the last three years, or $21M per year.

Current Year - 2003
Mr. Speaker, Bahamasair continues to suffer from the environmental conditions that have plummeted the aviation industry globally; namely 9/11, SARS, The Iraq War and a weakened global economy. Most major airlines in the US have filed bankruptcy as a result of these forces.  Further, many of these airlines have been forced to restructure their operations by demanding significant concessions from their employees as well as airline vendors and have requested substantial ‘bail out funds’ from the respective national governments.

Bahamasair has not escaped the wrath of the depressed airline business and resultantly it is forecasted that the airline losses for the year ending 30th June, 2003 will amount to some $21M.  At the end of April 2003 losses for the year totalled $18M with another $3M in losses expected for the remaining two months of 2003.

Budget 2003/04
 Mr. Speaker, while I seem to have painted a very dismal picture of the airline, Bahamasair will begin to implement austere measures, which are reflected in this 2003 / 04.  Operational Financial Budget losses of $12M are projected this year in comparison to the $21.0M forecasted loss in 2002/03.  Mr. Speaker, revenues this coming year are projected at $71M and are expected to better the current year by $5M or 8.3%.  This additional revenue will come principally from revenues to be derived from the lease of two additional Dash-8 aircraft to complement the existing five Dash-8 and two Jet fleet.

The added lift will improve the airline’s reliability to its existing markets as well as provide additional lift into the more lucrative destinations such as Freeport, Marsh Harbour and Georgetown.  These stations have proven to be profitable for the airline with an insatiable appetite for more rotations on a daily basis, especially Freeport.

Mr. Speaker, the budgeted expenses of the airline for the ensuing year are $83M, compared to $87M in the current year for a $4M or 4.5% improvement.  The significant expense saved emanates from the Dash-8 fleet being fully amortized during the first quarter of fiscal year 2004, coupled with a ‘hold’ on salaries which today accounts for 30% of the airline expenses.  Further, tighter management control will be placed on other expenses such as training, travel, material purchases, maintenance controls and sub charters usage.

Mr. Speaker, this budget further include a number of changes which divert from the ‘Business As Usual’ process.  For example, the International Cargo business which has lost on average $1.5M annually  has been outsourced.  The heavy costs associated with the chartering of the cargo aircraft, and high ground handling cost in South Florida made this operation unprofitable.  Additionally, six domestic destinations comprising the four stations in Andros, North Eleuthera and Arthur’s Town, Cat Island are being considered to be outsourced to the local charter operators.  This will not take place, Mr. Speaker, before proper consultation with the people of the islands mentioned.  This consultation process will commence next week.   The historical data  from these markets indicate that the 19 seat aircraft currently operated by the local Charter Operators better serves these destinations.

 It is the airline’s intent to incorporate the sub service providers flight schedules into the Central Reservation System (CRS) to accommodate reservations and ticketing from International Traffic in order to give seamless service into these Family Islands destinations while at the same time giving Bahamasair the latitude to better utilise its fleet.

The Board of Directors and management had requested some $18M in subsidy from the Shareholder this year but were allotted $10M which will be used primarily to cover the scheduled debt repayment for the ensuing year and the government has mandated the airline to ‘find’ the shortfall via the various  initiatives it intends to implement during this 2003/04 fiscal year.

Airline Initiatives

Mr. Speaker, with the objective being “to improve its Customer Service Delivery and achieve a breakeven position”, The Board of Directors and Management at Bahamasair have charted a number of ‘growth and austere ’ initiatives to achieve this goal.  Discussions are well underway with a number of the stakeholders such as the Unions, Aircraft Lessors and other tour partners.

Driftwood Flying – Freeport
Bahamasair is about to finalize an arrangement with Driftwood properties in Grand Bahama to provide airlift for its Hotel and Casino operations in Freeport and even possibly Nassau. This  program is targeted at a minimum of seven U.S. destinations and it is projected that the airline will transport in excess of 400k tourist to our shores  with the view of improving the airlines ‘Bottom Line’ by $2.5M per annum.  In order to meet this increased demand, the airline and its Shareholder will secure leases on two Boeing 737-300’s – (134 Seats).

Staff Salary & Benefit Concessions
Mr. Speaker, the Board of Directors and Management have identified $6.0M in staff concessions, similar to concessions agreed with other regional carriers and their staff and are presently in negotiations with all three of the Unions affiliated with Bahamasair to encourage staff to accede to these concessions if the airline is to remain afloat.  It is the airline’s intent to finalize the negotiations early into this new Budget cycle.

Staff Redeployment
Mr. Speaker, a number of staff, some sixty-seven (67) have been earmarked for redeployment within the Public Service or voluntary redundancy.  The redeployment pool consists primarily of ramp service agents.  Many of these will be amalgamated into Nassau Flight Services for better synergy across the Nassau International Airport.  Those who voluntarily agree to redundancy will only affect persons over the age of fifty-five 55 years.  These persons will all be offered severance packages.  Anticipated savings from the reduced staff count will amount to $1.4M annually and will offset the $1.2M in handling cost to be incurred at Nassau Flight Services.

Travel Agency Cost
Mr. Speaker, management is also of the view that Bahamasair must reduce its Travel Agency Commissions and its reliance on  Travel Agencies for  ticket sales.  Today, the Travel Agencies sales  account for less than 40% of total sales and continue to decline as the Internet Sales  build momentum.  Bahamasair wishes to follow suit of the other larger carriers who have discontinued commissions to the travel agents or in some cases reduced this cost by more than 50%.  The airline’s current practice of paying 6% Travel Agency commission can easily save the airline $1.0M should it reduce this fee to three percent (3%).  Therefore, dialogue will begin with the local travel agents within the first quarter of this current budget period to effect these changes.

EXPLOITING THE INTERNET SALES CHANNEL
Mr. Speaker, members of this Honourable House, Internet Sales account for as much as 40% of the total sales of some of the larger carriers.  In an effort to capitalize on this market, Bahamasair completed  the automation of its Website earlier this month to facilitate Internet Bookings and will exploit this inexpensive channel via marketing and geography. Sales via this channel will eliminate the travel agency commission of six percent (6%), the Global Distribution Cost of $5.0 per passenger from the various host systems, e.g. Sabre, Amadeus, Worldspan etc…. and the cost of hard paper tickets which totals some 0.30c per ticket. This initiative is expected to garner another $1.0M in cost savings.

MIGRATION TO ELECTRONIC TICKETING
Mr. Speaker, Bahamasair has already implemented this paperless ticketing into all of its major stations and has begun the marketing thereof to educate its passengers of the convenience of this process.  It is expected that this process change will create another cost savings of $100k assuming that, at minimum, 20% of its traffic migrate to this electronic ticketing process. Additionally, significant revenue can be realized should Bahamasair follow suit of other carriers and penalize those passengers who insist on having a ‘paper’ ticket.  Today, all of the international carriers coming into  Nassau charge a minimum twenty dollars ($20) per ticket for those discriminating passengers.  Bahamasair is of the view that this penalty should be graduated through the learning period, but if implemented could still yield close to $1.0m in penalties, per annum.

Mr. Speaker, I am pleased to inform this Parliament that Bahamasair is in the final stages of being certified by the Flight Standards Inspectorate (FSI) of The Bahamas for the first time in its 30-year history.  This has been a long and agonizing process for both the airline and the FSI.  I would personally like to extend my congratulations and appreciation to all of the airline and FSI personnel that were integrally involved with the process.  This is a major achievement of which the airline should be proud.  My understanding is that by early next week the Certification would be complete.

Mr. Speaker, Bahamasair is poised to ‘turn the corner’ financially, but its Stakeholders - the travelling public, shareholder, its suppliers and – staff must ‘Buy In’ to this new trend of thinking.  The Board of Directors and management are confident that they can achieve their goal and reduce its dependency on the Shareholder and the public funds as we prepare the carrier for privatization.  The airline has been given a ‘second chance’ to participate in the Tourism business and must embrace the opportunity by implementing  aforementioned austere programs which should go a long way in achieving a “break-even” financial position within the next twelve months.
 

MINISTRY OF WORKS
BUILDINGS CONTROL DIVISION
Mr. Speaker, for decades, the Buildings Control Division of the Ministry of Works and Utilities has been the prime mover behind the regulation of the building construction industry throughout the Bahamas except Freeport, which has its own building department. While there is room for improvement, particularly in the Family Islands, I believe this agency has done a commendable job, given its current level of staffing and resources.

Empowered by the Buildings Regulation Act and other appropriate legislation, codes and standards, Mr. Speaker, this agency has been the coordinator of an enforcement regime, which, I dare say, is one of the main factors responsible for the high standard of living and protection from Hurricanes, which Bahamians now enjoy. Of course, they work in partnership with other agencies, such as the Department of Physical Planning, the Department of Environmental Health Services and the Civil Designs Section of the Ministry of Works and Utilities. Buildings Control is also the agency, which generates most of the revenue, which comes from my Ministry, in the form of building permit fees. Buildings permit revenue for fiscal 2001/2002 was $425,200.00. For the first half of fiscal 2002/2003 it was$359,897.00

I would like to articulate initiatives in four major areas which, I am confident, will significantly enhance the efficiency and effectiveness of the Buildings Control Division of my Ministry and, by extension, the construction and development industries, for the benefit of the residents and visitors of the Bahamas:
1. ENHANCED INFORMATION TECHNOLOGY

Mr. Speaker, my Ministry has recently contracted with a local software development firm to create an information technology solution which will enable relevant persons to access the status of building permit applications and also inspections which have been carried out under approved building permits.

Mr. Speaker, a person who has applied for a building permit will be able to simply visit our website, enter their application number, along with an access code and thus obtain the current status of the application. Likewise, persons who have approved building permits will be able to obtain the results of inspections carried out under that permit. Computer kiosks will also be available installed in the lobby of the Ministry of Works Building on John F. Kennedy Drive for use by all such persons, similar to Automatic- Teller-Machine (ATM) terminals. Of course, persons will still be able to call the Buildings Control Division and obtain information over the telephone.

In addition to this, Inspectors in the Buildings Control Division will be issued with hand-held computers, which will enable them to enter results of inspections in “real-time”, while they are out on the field, visiting construction sites. The data that they enter will be transmitted, wirelessly, back to the Ministry of Works’ computers. Thus, inspection results should be available in short order after an inspection is completed.

This new system should be operational no later than the end of the summer.

Mr. Speaker, change is always a difficult process. This new way of doing business will involve a major paradigm shift for both the staff and customers of the Buildings Control Division. I encourage the public to exercise patience and bear with us as we make the adjustments to this new and improved system.

2. THE THIRD EDITION OF THE BAHAMAS BUILDING CODE
Mr. Speaker, it is my great privilege to hereby lay on the table of this Honourable House the 3rd. Edition of the Bahamas Building Code. It is a thoroughly-prepared, state-of-the-art document which, like previous Editions, sets a high standard for safety while also making provision for the safe and proper adoption of new building technologies into the Bahamian marketplace and society. This edition will be produced in binder form so as to allow for insertions of periodic amendments to the Code on a timelier basis. There is also a new chapter that sets out requirements to address the needs of the physically challenged.  Mr. Speaker, it is again my pleasure to lay a copy of the Revised Building Code on the Table of this House.

3. NEW CONSTRUCTION MANUAL FOR SMALL BUILDINGS
Mr. Speaker, another new initiative from my ministry, through the Buildings Control Division, is a new resource, which has the potential to add a new dynamic to a significant sector of the construction industry. I now table before you, “The Construction Manual for Small Buildings.”

Mr. Speaker, this First Edition of the Manual is intended to provide the necessary technical details to construct an average-size, single-storey house, or other similar small buildings, so that the so-called “common-man,” those who are carrying out small construction projects, will be able to build them in a way that would meet the safety standards of the Bahamas Building Code while using a manual which is much less complex than the full version of the Bahamas Building Code. It endeavours to do this in as simple and straightforward a manner as possible.

I must however emphasize that this manual will not suffice in the design and construction of larger residential or apartment complexes where additional life safety standards must be considered.  Again, Mr. Speaker, I take this opportunity to table a copy of this New Construction Manual for Small Buildings.

4. NEW LEGISLATION AND LEGISLATIVE REFORM
Mr. Speaker, looking forward, I believe that new legislation, as well as appropriate amendments to existing relevant legislation, are needed to bring the regulation and control of the building construction industry up to the next level, particularly, as we prepare to address the opportunities and challenges of globalization and the FTAA. Ensuring that we are world-class in this area should benefit the entire country.

Accordingly, Mr. Speaker, I intend to bring before this Honourable House, as soon as possible after this budget debate, the following legislative initiatives:

· The 2002 version of the Professional Engineers’ Bill (which is currently tabled) for its second reading, committal and final vote.

· A bill for an Act to regulate the Building Contractors.

· Proposed amendments to the following pieces of legislation:

1. The Buildings Regulations Act;
2. The Private Roads and Subdivisions Act;
3. The Garage Licensing Act;
4. The Roads Act
5. The Water and Sewerage Act;
6. The Explosives Act and Explosives Regulations;

Mr. Speaker, in the case of the first four pieces of Legislation, experience has shown that the penalties and/or parameters provided therein are far from sufficient to act as a significant deterrent to violators. There simply needs to be more “teeth” in these laws if we are to impact violators.

With respect to the Water and Sewerage Act, pending legal matters, have for many years, prevented Licensed Plumbers from being issued with a certificate to this effect. Currently they are issued with a letter from the Ministry of Works and Utilities.

In the case of the Explosives Act and Regulations, this legislation appears to be very outmoded and needs to be reviewed and updated to reflect the modern concerns of global terrorism, as well as any new explosives technologies and pyrotechnics.

In summary, Mr. Speaker, the above-mentioned initiatives, taken together, should result in a much-enhanced regulatory regime for the building construction and development industries in the Bahamas; one which is world-class, more efficient, more effective.  This legislation will better position the country and the Buildings Control Division of the Ministry of Works and Utilities, in particular, to face the challenges and benefit from the opportunities, which seem to lie ahead in a more global economic environment.

Mr. Speaker, It is my hope that these new and enhanced resources will provide some further justification for the  increase in fees and prices, which will be tabled shortly, many of which have not been increased or reflective of inflationary adjustments for more than 14 years and in some cases from its legislative enactment.

SUBDIVISION APPLICATIONS PROCESS
Mr. Speaker, there have been many complaints over the long delay in processing applications under the Private Roads and Subdivision Act chapter 256 (of the 2000 edition).  The process in many cases have taken up to three to four years and in my view cannot be justified.  To quote one of the complainants: “the roads approval process was lengthy”.  He went on to say “ultimately, the delay costs must be passed on to the consumer”.  He also said, “at a time when jobs are scarce and the economy is down, projects like these inject and circulate, quick, local cash into the economy”.  Mr. Speaker, no reasonable person could disagree with the observations made by the complainant.

Mr. Speaker, The utility companies play a major role in the subdivision process and delays from those entities are unacceptable.  I have the good fortune of having all of the utility corporations under my portfolio and have so directed that the processing time must be minimized with the removal of all red tape.

Further, Mr. Speaker, my Ministry will very shortly make available to all developers and engineers, architects and consultants a Design and Construction Guidelines and Plan Preparation Manual for Subdivisions in the Commonwealth of The Bahamas.  The guidelines were developed in an effort to provide detail and comprehensive standards for design of subdivision to include all types of roadways including private and public.

Mr. Speaker, I have set as a goal that the processing of subdivision applications not exceed a maximum of one hundred and twenty (120) days provided all of the relevant documentation is provided to my Ministry at the time of the application.

Mr. Speaker, this government is seriously committed to providing housing for the Bahamian people and will remove all impediments including red tape in order to achieve this most noble objective in an orderly manner.
 
MAGISTRATES COURT COMPLEX
Mr. Speaker:

During the 2003/04 fiscal year, my Ministry fully proposes to commence the construction of a complex to house ten courts at the site immediately east of the existing Magistrates Courts, on South Street.  This modern two-storey building will provide custom-designed, state of the art facilities for a number of Magistrates.  It is anticipated that there will be six General Courts, two Civil Courts, a Family Court and a Juvenile Court.

Mr. Speaker, attached to each court will be office accommodation for a magistrate and administrative staff.  Adequate provision has been made to house the public with generous waiting areas and public restroom facilities.  All magistrates offices are on the first floor and there will be a specially constructed “secure entrance” to this floor such that the magistrates do not encounter prisoners, complainants, defendants or the general public in accessing their offices.  Provisions have also been made to hold adult and juvenile detainees of different sexes in separate areas.  Due to the size of the proposed development, the government has taken steps to acquire the properties adjoining the site so that adequate accommodations can be made for secure parking and the basketball court will be reconstructed and upgraded to accommodate sporting activities within the inner community.

Mr. Speaker, the anticipated cost of the building is $8.0 million and architects and engineers of my Ministry completed the drawings.

OFFICE BUILDING – MARKET STREET

Mr. Speaker, presently the staff of the Rodney Bain Building are working under conditions that are quite unsuitable for Government Offices.  Some years back, the former City Market Building on Market Street was designated as an office for the Registrar General.  My Ministry has now completed the design and working drawings which will be reviewed very shortly. The rehabilitation of this building would provide 20,000 square feet of office facility at an  anticipated cost of  $2.5 million.

CONSTRUCTION OF BAHAMAS LAW SCHOOL

Design drawings were completed to construct a Law School for higher learning for the law students of the Bahamas and other Caribbean Countries.  As the result of numerous design changes, budget constraints, and other factors, close to $1 million have been expensed on design consultation.  The size of the facility has now been reduced to 25,560-sq. ft. and will cost an estimated $5.3 million which the European Union has volunteered funding support for.

POLICE  EXHIBIT FACILITY & DNA LABORATORY

Mr. Speaker, a state of the art DNA Laboratory and Exhibit Facility for the Police is needed to provide our forces with the tools to effectively combat crime.  The Police Force has acquired the technology, equipment and training but are lacking an equivalent facility to house the section.  This facility, when completed, will house the staff and equipment required to bring our Police Force on line with other Caribbean Forces.  The anticipated cost of the facility is $1.3 million.

FISH VENDORS STALL

Drawings have been prepared by the architects at the Ministry of Works & Utilities to construct a Fish Vendors Market at the Williams Street Dock.  The intention of the project is to relocate the Fish Vendors from the  beach area of Montagu Beach to a properly constructed facility.  Preliminary designs for the facility have been completed with a budgeted cost of $600,000; of this amount $500,000.00 has been approved for work this fiscal year.

MINISTRY OF FINANCE– DOCUMENT STORAGE BUILDING

Located south of the Ministry of Finance Offices there is an 8,000 square foot Storage Building.  To ensure proper storage of Government Documents the building is in need of rehabilitation to prevent water leakage and ensure proper ventilation.  The estimated cost to complete this work is $400,000.

NEW PROVIDENCE ROAD IMPROVEMENT PROJECT

Mr. Speaker, the objectives of the New Providence Road Improvement Project is to improve the existing road network and alleviate the negative impacts associated with traffic congestion.

The original scope was to carry out construction on 19 Corridors comprising 15.1 miles of new road and improvements to 9.5 miles of existing roads.
On 15 November 2002, Government terminated the contract with the bankrupt Associated Asphalt.  Following termination, Government, with the approval of the IDB revised the scope of the project to remove Harold Road (Corridor #14) from the New Providence Road Improvement Project and to carry out this work using its own resources.

Government has engaged the services of the original design consultants, Halcrow Limited, to complete the design.   By contracting directly with Halcrow, my Ministry negotiated a reduction in the contract price and realized a savings of  $877,910 against the cost for Halcrow’s services that would have been payable under the previous contract.  Halcrow is expected to complete all of the design drawings by the end of this month.

Government invited suitably qualified contractors to submit pre-qualification proposals, to demonstrate the adequacy of their financial and other resources for the project.  One Company - M/s Jose Cartellone of Argentina, met the pre-qualification requirements.  Government carried out a thorough check on the background and past performance of this company and is now satisfied that this company has the required technical, financial and human resources capability to undertake this project.   The company has been notified accordingly.

Government will host a bid-clarification conference this month and conduct a site familiarization tour for the benefit of Jose Cartellone very shortly.

It is intended that final negotiations and the award of the contract to Jose Cartellone  for the Completion of the New Providence Road Improvement Project is expected to all be completed by October, this year with the construction phase lasting for some twenty-four (24) months.

Mr. Speaker, on coming to office my government took the decision, and obtained IDB approval, to remove Harrold Road from the New Providence Road Improvement Project and to carry out the improvement works using local contractors.  By doing so, it was felt that the government would afford much needed opportunities to Bahamians to complete a fairly large and complex infrastructure project.  It enables Bahamian contractors to be familiar with the specification and workmanship normally required to participate in large international projects.   It further gives the staff of the Ministry of Works an opportunity to gain experience in supervision, contract administration, material testing and setting out skills.

The project includes the Reconstruction of approximately 1.5 miles of the existing 2 lanes and construction of 2 additional lanes on the north side of the existing carriageway, the construction of approximately 0.3 miles of service road between Chapel Drive and Blue Hill Road and the Construction of two roundabouts:  one at Milo Butler Highway/Bethel Ave./Harrold Junction, the other at Yellow Elder way/Harrold Rd.

Recently, government invited contractors to submit prequalification proposals to demonstrate their experience, and capabilities for the project.  Six companies responded to the Invitation for Prequalification and after careful evaluation it was determined that three companies met the Prequalification requirements.  These companies have already been invited to submit bids for carrying out the works under this project.  It is anticipated that the bidding process will be completed by the end of July and a contract will be awarded by September/October 2003 subsequent to necessary approvals.  The construction of this corridor is expected to last about 9 to 12 months.

Mr. Speaker, the 2003/2004 fiscal year targets an increased maintenance component to adequately sustain the existing drainage network as well as new drainage improvements throughout New Providence.  New improvements are proposed for Down Town Nassau, The Over-The-Hill area, and other locations throughout Nassau.  The cost of these works has been pegged at some $600,000.00.

NEW PROVIDENCE ROAD PAVING PROGRAMME

Mr. Speaker, road re-paving throughout The Bahamas is an ongoing programme in my Ministry and Bahamix, the road paving arm of my Ministry, has earmarked a number of streets in the Englerston, Bain and Grants Town, Carmichael, Adelaide, Coconut Grove, Delaporte, Fort Charlotte, Garden Hills and South Beach areas for repaving this fiscal year.   We are also compiling a list of additional roads throughout New Providence where there are paving requirements.

SPEED BUMPS

My Ministry daily receives requests for the installation of speed bumps in various communities.  These requests are reviewed on a case by case basis to determine whether the situation conforms to the criteria developed by the Civil Designs Section.  However, it is my view that greater policing is required in order to deter the excessive speeding on our streets.

Mr. Speaker, my Ministry will continue to maintain the Rawson Square and Downtown areas, as well as Goodman’s Bay Park.
Preliminary designs have been completed on a number of new Park facilities and my Technical Officers will complete final design and construction of a new Park facility this year depending on the availability of funds.
We will continue the reconstruction of sidewalks in the Downtown area and along Augusta Street and Wulff Road while at the same time consideration will be given to the needed maintenance to heavily trafficked streets in the Downtown core.

HURRICANE REPAIRS (IDB INFRASTRUCTURE PROGRAM)
Mr. Speaker, Work on the Hurricane Floyd repairs  continue under the Inter-American Development Bank Loan Program.  The sixty-six (66) projects comprising Phase I of this Program is scheduled to be completed by March 2004.

In this regard, seven docks will be constructed in Central and North Eleuthera shortly and a 2200-foot seawall will be constructed near James Cistern at a cost of $482,000.  Additionally, a new seawall will be constructed south of Rock Sound at a cost of $600,000.

Mr. Speaker, in Abaco, the Sandy Point seawall and road will be upgraded at a cost of $525,000.  This work will protect the highway from future damage, as the roadway will be raised to minimize flooding from storms and spring tides. Additionally, the marina at Fire Creek will be repaired at a cost of $230,000.  This upgraded marina will be very useful to fishermen in the local communities.

Mr. Speaker, government is proposing the construction of a causeway bypass to the Glass Window Bridge.  This project is expected to start next year, at a cost of $8 million.

In Grand Bahama, repairs to the road in Sweeting’s Cay will start shortly at a cost of $265,000.  It should also be noted that the government is continuing to seek a solution to flooding at Fishing Hole Road and to Queen’s Cove and consequently will be meeting with local residents to agree to a solution acceptable to all.  As a result of environmental and design related issues, this project, as well as the George Town Exuma Dock , the Fox Town Dock, in Abaco and the Crooked Island Dock projects have been deleted from the IDB Program.

Work will start on the final repairs to the Cat Island roads this summer, at an estimated cost of $1.5 million.
Mr. Speaker, Additional Family Island works will comprise a New seawalls which is to be constructed at Simms, Long Island, at a cost of $150,000.

The seawall in Governor’s Harbour will be raised, at a cost of $100,000.  The higher seawall will offer better storm protection, as well as to provide protection for errant vehicles.

NON IDB PROJECTS
Road reconstruction, presently underway, will continue in South Andros to provide improved safety and comfort to the residents.

The road will be repaired and a new seawall is proposed for Lowe Sound, Andros, at an estimated cost of $500,000.  The work will protect the highway from future damage.  All of these new walls will prevent future damage and save  unnecessary repair costs.

Continuing maintenance of roads in the Family Islands will be ensured by provision of cold mix as necessary.

Mr. Speaker, In Acklins, the highway from Spring Point to Salina Point is pre-maturely aging and requires major reconstruction.  That work, I am advised, Mr. Speaker, was only executed a few years ago.  Efforts will be made to persuade the contractor concerned to carry out the necessary remedial works, failing this the repairs will be another burden on Bahamian tax payers.

Mr. Speaker, I pause here to draw to Parliament’s attention that my Ministry will introduce immediately, new quality control and assurance in all future road contracts to ensure that the public’s interest is protected.  The contract provision and specification will stipulate that the contractor is not only responsible for executing the work properly, but for any necessary testing records, etc. to demonstrate that he has done so.  The contract will further require that a contractor  provide any necessary equipment, materials and labour to assist the engineer/supervisor in checking that the work has been carried out in accordance with the drawings and specifications.  Further, Mr. Speaker, inspections and testing will be carried out in a timely and progressive manner with a positive approach that minimize defective workmanship and facilitate progress.  This will also ensure that interim payments are for work executed as per contract and that when the contractor requests a certificate of completion, proper records are being kept to support the application.

In Eleuthera, work has started on additional roads in Harbour Island at a cost of $637,000.  More roads require repair in central and south Eleuthera at a cost of $1.5 million.

The airport and roads in Ragged Island have disintegrated at an astonishing rate therefore this airstrip and roads will again be repaired.

In Deadman’s Cay, a perimeter road and a security fence will improve safety at the airport.  Aircraft will no longer have to fight with vehicles and livestock.  The estimated cost  for these necessary improvements is $500,000.

My government will be embarking on a program to improve maintenance of roads and docks in the Family Islands.  Much of the work previously mentioned was a result of failure to maintain the infrastructure. Training of Family Island Administrators and Councillors and the provision of materials and funds to various islands is an important ingredient to this maintenance program.  The amount budgeted this year for routine Family Island road maintenance is $300,000.

CONCLUSION
Mr. Speaker, before I conclude, I would be remiss if I didn’t profoundly thank the Chairmen of BEC, BTC, Water and Sewerage Corporation, Bahamasair, Bridge Authority and the Permanent Secretary and the staff at the Ministry of Works. I thank them for their contributions during this past Budget period and look forward to working with them in the new fiscal year that lies ahead.

Mr. Speaker, the portfolio assigned to me by the Prime Minister is the most challenging task of my life. It is a job that requires a lot of time and constant attention. Having come from the private sector where the environment is one that the question of the number of hours required for a top executive has never been an issue, I can confidently say that I have made the appropriate adjustments and as the young people would say, I am now on a roll.

But not only am I on a roll, but so is the government in which I am privileged to serve. We have settled into the job and are busily implementing our programs designed to bring help and hope to all of our people.

Mr. Speaker, Rome wasn’t built in a day, but hasty decisions caused it to be burnt down in one day. Mr. Speaker, it is easy for many to talk about what they would do if in government and even easier for those who were voted out to speak on what they should have done. But in making decisions as a government is not like deciding where your family should go for a vacation.

Mr. Speaker, every decision made by a government must take into consideration the effects on the whole nation, not only for today but also for the future. That is an awesome responsibility, where haste can only cause a government to look back in horror when they make bad decisions.

Mr. Speaker, this PLP Government will not make hasty decisions because we sat on the other side not too long ago and watched the results of not only hasty decisions but also reckless ones. So today we would rather learn from the mistakes of others, than to have the people suffer from haste and subsequently bad decisions.

Mr. Speaker, this Administration is acting in the best interest of the people and history is likely to prove that no regrets will come from our decision-making. We can think of many decisions that we have all made in haste and even until today we regret. This Administration would never want the people to regret their wise decision of electing us, not only in 2002, but again and again.

And on that note, as always Mr. Speaker, I thank you on behalf of the faithful people of Bain & Grants Town. May God continue to bless the Commonwealth of the Bahamas.