Mr. Speaker, I rise on behalf of the great Constituency of Bain & Grants Town to make a brief intervention on the Bill before us today, the Passenger Tax Act.
Mr. Speaker, we are here today attempting to rectify yet another bad practice left in place by the previous Administration, that in times prior to the FNM Government was a relatively responsible policy. Mr. Speaker, the previous policy, turned into a mockery of revenue collecting by the FNM Administration, was the paying of passenger tax at the point of departure from the Bahamas.
Mr. Speaker, today we have come to pass a Bill that will allow or mandate the travel agencies affiliated with travel to incorporate into their fare structures, the passenger tax fee to be collected by the government. In other words, wherever a ticket is purchased whether it is a ticket for travel by air or sea will have a price inclusive of the passenger tax due to the Bahamas Government.
Mr. Speaker, now one may wonder what is going to insure that the Bahamas Government receives the revenue from the passenger tax? Or what is going to make this strategy more effective than the one previously in place for years and made a mockery of by the FNM Government? Mr. Speaker, serious persons in the travel business are tied into the organization named IATA.
This well established agency monitors the paying of revenue for tickets by air or sea because most if not all travel businesses receive their tickets on a consignment basis. If the regulations of accounting for tickets sold are not paid to the actual transportation vehicle in a timely fashion, IATA immediately seeks to collect the revenue.
And at times that has meant taking the travel business offline and voiding their ticket inventory until the owed sum is paid to the transportation vehicle. So it is serious business with IATA and the collecting of revenue for tickets sold. Hence this Bill for a Passenger Tax Act, where the passenger tax is tied to the sale of tickets gets as close to certainty in the government receiving the tax in correct amounts and in a timely fashion.
Mr. Speaker, I met recently with leading members of the Bahamas travel Agents Association and was told that IATA now requires travel agents to make weekly settlements with no excuses. Failure to make prompt weekly payment will automatically result in the withdrawal of the IATA franchise. That is the climate in which travel agents are working today and in which my government must seek to collect designated passenger tax.
Unfortunately Mr. Speaker, this is yet another “stop the bleeding measure” needed to be taken by my government. It has to be done as a result of the FNM Administration’s failure in so many areas to not only not collect government revenue, but also because of it’s failure to ensure that the Bahamian taxpayer gets value for it’s tax dollars.
Mr. Speaker, I mentioned the revenue generated by passenger tax for arrivals by air and sea for the past two years and the estimated revenue for the year 2001/2 and the estimated revenue for the year 2002/3. When one examines these figures against the actual tourist arrivals it is clear to see that some revenue has gone missing.
Mr. Speaker, if one was to assume that in round figures the annual tourist arrivals were some $4million in round figures, assume that 200,000 were children under the age of six. That leaves 3.8 million passengers x $15, which equals $57 million. Mr. Speaker, we then add to that, that some 150,000 Bahamians travel four times a year to the United States. When one multiplies 600,000 x $15, it gives a round sum of $9 million dollars. When we add $57 million and $9 million together, that is $66 million dollars.
Mr. Speaker, more than four million tourists come to our shores each year. I have ignored the numbers in excess of four million to offset the rebate made to cruise ships under the Cruise Ships Incentive Program. Mr. Speaker, the total passenger tax in round figures for the year 1999-2000 was $60 million dollars. In the years 2000/1, the passenger tax totaled $58 million dollars. IN 2001/2, the estimated amount was $65 million. In 2002/3 the estimated passenger tax was $60 million.
Mr. Speaker, in each of the four years that I have cited, the revenue has been substantially less than the $66 million dollars I estimated should have been conservatively collected with the exception of the year 2001/2. Mr. Speaker, where has the money gone and who are the thieves? It is clear that massive stealing of passenger tax revenue has occurred on the FNM watch. I have been reliably informed that some airline employees have reduced the number of adults travelling and increased the numbers for children under the age of six, so as not to turn in the correct amount of passenger tax collected. Of course we must assume that they have pocketed the monies.
Mr. Speaker, this new system will require that the manifest must show the name of the passenger, the passport number of the passenger and the date of birth of the passenger, so as to identify persons under six years of age. Mr. Speaker, I would like to see a Committee of this House be appointed to investigate this massive rip-off of the public purse and others that may have occurred.
To the young energetic members who are desirous of establishing their political credibility, should move post haste in asking for the appointment of a Select Committee with powers to send for persons and to meet from place to place. They should report to this House and let it all hang out and invite the police to take the appropriate action.
Mr. Speaker, the truth about the FNM Administration’s fiscal track record becomes more odious to my government and the people every day. I now liken the FNM Government to a slick and shady used car salesman trying to convince you of what great shape his vehicles are in to convince you to provide the financing for the purchase of the vehicle. These kinds of used car salesmen, though not the norm in the Bahamas, go to great lengths convincing you that you are getting a great deal or maybe steal on the vehicle they are selling you.
They almost want you to believe that they are doing you a favor and it is you who is the beneficiary of their kindness, by trying to make you believe that you are being done a great service by their sacrifice to sell a vehicle. And with these shady and slick used car salesmen, the minute you buy into their slick talk and purchase the car, you are barely out of the car lot and down the block before the car starts giving warning signs of problems and then problems indeed.
Mr. Speaker that is a mild rendition of what I considered the FNM Administration to have been to the taxpayers of the Bahamas for the last ten years; nothing more than slick and shady car salesmen and that is being modest about the characterization.
Mr. Speaker, I need not go into the slick used car salesmen tactics of the FNM Administration in their claims of fiscal prudence, for as the truth continues to unfold, the country is experiencing the truth as the economy suffers what could only be considered as a toxic shock. But when we look at what the FNM Administration claimed was the responsible use of the taxpayers money on infrastructure, like the slick and shady used car salesmen, they haven’t been out of power six months yet, and all the good they claimed they did with the people’s money, is proving to be false when we look at the crumbling of our infrastructure.
Mr. Speaker, everywhere we look the infrastructure and the FNM claims haven’t lasted longer than they were in power. The schools are in shambles. The airports are a horror story. The Prince George Dock, which is the major tourist gateway to the Bahamas, is an accident waiting to happen and the road project went belly up and some new buildings for one reason or another cannot be opened in the form in which the FNM Administration left them. Certainly it is our responsibility as the succeeding government to rectify these problems and we will surely do so over time.
But what happened to all the big talk by the FNM Administration about the wonders they did in turning around the infrastructure? They are just like slick and shady used car salesmen, everything is working great on the car until you and the car get out of their control and your money is spent and in their pockets.
Mr. Speaker, the wastage of public funds by the FNM Administration is an epic story of mismanagement, deceit and I personally believe, something even far more sinister. Take for example, the mad scientist’ expenditure of $11 million dollars on a dock in Marsh Harbour.
Everyone who knows about docks have stated that this kind of dock was better suited for Snake Cay, where there was a natural harbour, eliminating the need for the massive expenditure for dredging in Marsh Harbour. I was recently at the Marsh Harbour Dock when the dynamite went off and there was no pronouncement of “Fire in the Hole.” Boom was all that could be heard.
And yet, the mad scientist decided the best place for the dock was Marsh Harbour and the people’s taxes have again been wasted in the under utilization of an $11 million dollar dock. Mr. Speaker, will the harbour silt up again? And if it does, what will it cost to re-dredge all over again?
Mr. Speaker, I wish to make it abundantly clear that I am not saying that Marsh Harbour doesn’t deserve to have a dock. But Mr. Speaker, who in their right mind would ignore the Prince George Dock, the main gateway and put a dock in Marsh Harbour as opposed to Snake Cay where I am advised it would have cost less money? The long overdue Prince George Dock improvements and a new dock in Snake Cay could have been achieved for the same $11 million dollars or less. Mr. Speaker, this is the legacy of the MP for North Abaco.
Mr. Speaker, I have given this small rendition of the wastage of public funds and the deceit surrounding those expenditures, to support this measure being taken by my government to collect passenger tax. Like many other things, the past collection measures were abused by the FNM Administration and the people were not told the truth. The disregard to collect the people’s revenue through travel to and from the Bahamas and the attempt to deceive the people in the process can be shown by remarks I made at a new PLP Rally in Pinewood Gardens on April 16th of this year. Mr. Speaker, I said at that time that:
“Customs and Immigration Officers are not being paid overtime since December of last year. Many Officers are frustrated because their personal finances are structured and based on the receipt of their monthly overtime. My brothers and sisters, we know that our Customs and Immigration Officers play a vital role in protecting our borders from illegal invasion of people and merchandise. The Customs also play a major role in collecting revenue on goods imported to our shores as well as collecting the taxes charged to tourists who land on our shores.”
Mr. Speaker, I went on to say, “ My brothers and sisters, it was brought to my attention by way of my garbage can that this tired, worn out bankrupt FNM Government has failed miserably in ensuring prompt collection of Passenger Tax and Pier Charges. I cite as an example, United Shipping Company Ltd., which is headed by a well-known supporter of the FNM, a Mr. Berlin Key; who is also said to be a partner of Frank Watson on some deal on Balmoral Island. United Shipping are Agents for a number of cruise lines who currently owe the Public Treasury for the period of December 2001 to March 24 of this year.” Mr. Speaker, that time period was four months.
Mr. Speaker, I went on to say on April 16th of this year, “They owe them over $4.5 million dollars for passenger tax.” Mr. Speaker, United Shipping at that time owed the Public Treasury $4.5 million dollars in passenger taxes for the cruise lines. Mr. Speaker, I went on to say that, “They are liable for Pier Charges through December of last year for an amount exceeding $123,000. There are some other companies like R.H. Curry and others who also owe the Public Treasury a lot of money.”
Mr. Speaker, I concluded my remarks at the Rally by saying, “It has been suggested to me that these Passenger Taxes and Pier Charges are delayed to allegedly allow interest to be earned while the government is forced to pay overdraft interest. How could you let a private company collect your taxes and then they sit on it so that they can earn interest? That can’t be right. And while the government incurs interest via overdraft, on the other hand Customs and Immigration Officers cannot collect overtime for over 4 months, while payment for Passenger Taxes and Pier Charges are allowed to be outstanding for 4 months or more.”
Mr. Speaker, that was the circumstance almost one year ago, when I revealed it at a new PLP Rally Election Campaign Rally six months ago. Mr. Speaker, that was the circumstances almost one year ago, while at the same time the FNM Government was crying all over the place about what September 11, 2001 did to an already drowning economy. And yet, they still could afford to help their friends and others collect gravy in interest on money belonging to the government. Meanwhile regular Bahamians were being told how devastated the economy had become by the effects of 9-11, 2001.
Mr. Speaker, one has to conclude and must accept that the previous FNM Administration was a renegade government, put in place and stabilized for ten years by equally criminal minds that made up special interest groups. And though many may feel my government’s steps toward renewing honesty and non-criminality in government are not strident enough, I can assure you that my government is acutely aware of the difficulties encountered by our people as a result of the trauma visited upon the economy by the previous Administration.
It is our job to straighten out the miscarriage of justice done to the economy, but it is also justice for someone to be made to pay. It is therefore my wish that the relevant agencies move with alacrity to collect, if they haven’t already, the taxes and charges misappropriated by such companies as United Shipping.
Mr. Speaker, we require the Auditor-General to conduct an audit of all airlines and cruise ship operators and agents operating in and out of the Bahamas, following the implementation of this Bill.
In the meantime, Mr. Speaker, it is our decision to safeguard Passenger Taxes and Pier Charges from the politics of favor, criminality and discrimination by bringing this Bill. Mr. Speaker, I support this Bill for a Passenger Tax Act, for it cannot be business as usual or as the FNM did it, because my government realizes that the money we watch over is the people’s money and not ours to do with as we please.
Or as in the FNM Administration’s case, let our friends have their way with public money and while the masses starve tell them about how tough things are with the economy. When in the case of the FNM Administration, things were only tough for the small man. Mr. Speaker, the people will not accept that type of behavior from a government any longer, I will not and have never supported that kind of behavior and certainly God never has.
MR. SPEAKER, AS ALWAYS, I THANK YOU ON BEHALF OF THE GREAT CONSTITUENCY OF BAIN & GRANTS TOWN.