By Dennis Dames:
I have today listened to Mr. Wallace Rolle, the Democratic National Alliance (DNA) candidate for South Beach on Issues of the day. The gentleman appears to be a Utopian of the first order. He gives the impression that he and his party have all the solutions to our ills; like with a DNA victory - all lights will be turned on, unemployment will be eradicated, no one would lose their house, and the hurting that we the people are experiencing just now will be no more.
Mr. Rolle stopped short of promising that the tears from every Bahamian eye will be eliminated under a Democratic National Alliance administration.
He says that we need to diversify our economy. What does this mean? Agriculture and fisheries are already on the move, the Bahamian craft industry has received a major boost with the new straw market policy, and opportunities galore exist for young and the not so young entrepreneurs.
We need to legitimize the numbers business to enhance the nation’s revenue base. We need to look at the LNG question with a view of making a final decision; it looks like a new and potent income stream that could propel our country’s ambition to bring every brother and sister in the fold of economic prosperity. Our problem today is that we are not collecting enough income to pay our national bills; so our hands are tied when it comes to new initiatives right now.
Mr. Rolle spoke of the unemployment concerns of his young constituents, but his status quo and politically correct position is that they will fill every vacancy with a Bahamian who is qualified to perform the job. How will that position solve our unemployment challenges?
If a Democratic National Alliance government borrows funds from a foreign bank for capital works, and the bank insists that XYZ Company from Brazil has to be the general contractor with its hundreds of employees; what will they do? If every international bank relates the similar requirements, where would that leave the country? We would be drowning in our own inanity.
If an international business comes to The Bahamas with tens of millions of dollars in investments and they want to bring in their foreign CEO and comptroller, what will a DNA government do if they feel that Bahamians could fill those positions? Here is where a Bahamian first policy becomes dangerous and counter-productive to national economic development.
We need to personally and collectively take control of our destiny. If we are profoundly divided as a people, then there is nothing a new politician or representative could do for us. Lingering and deep-rooted disunity are holding back our progress as a people, and we must find our respective love button and come together for the common good.
A monumental policy was instituted in our straw market recently, where all goods must be Bahamian made. This decision alone could indirectly employ thousands of our people as the craft market is a forty million dollars a year plus industry. Every young talented Bahamian could take advantage of the opportunity by creating one great Bahamian souvenir item to sell to straw vendors; but opposition politicians would have none of it. As far as they are concerned, the governing Free National Movement (FNM) is simply good for nothing; and they insist on being their constituents employment agents. Yes, even the Democratic National Alliance (DNA) wants to control the people of whom they seek to represent.
It’s called the change of more of the same.
caribbean Blog International
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Wednesday, January 18, 2012
Young politicians should be careful and not get too caught up in the excitement of the moments to come in the upcoming general election... selling dreams they cannot deliver
Candidates should not make unrealistic promises
The Progressive Liberal Party (PLP) and the Free National Movement (FNM) have selected their candidates to run in the upcoming general election. The fledgling Democratic National Alliance (DNA) is almost done with its candidate selection process. Several independent candidates have also entered the various constituency races, such as Whitney Bastian in Mangrove Cay and South Andros and Craig Butler in Bamboo Town – and more are likely to emerge soon.
Some of these men and women who are running have been campaigning for years to win a constituency seat. Some will begin that effort in the next few weeks. The people will decide who will be successful and who will be forgotten.
To win, some go all out and make every promise possible. The candidate pledges to fix every road in the area; to make sure every park is maintained; to find jobs for hundreds of people; to visit regularly after being elected; to make sure the community schools are without a need.
Campaigning is hard; winning is harder. To do so you have to convince thousands of people you and your party are best equipped to run the country. Telling people you will do everything for them may get you more votes. But candidates must remember that if they win, those same people will be expecting them to deliver.
The life of that candidate could become miserable if he or she is unable to fulfill the promises made on the campaign trail. If the candidate is elected for a governing party but has little power in the caucus, that member would have little capacity to deliver on anything for his or her area. If elected for the opposition party, good luck getting the government to rush to your assistance in an opposition constituency. And if the governing party does something in that area, it will tell the people it did it and not the opposition MP.
Reasonable and moderate pledges would be better for candidates and constituents. Set out those issues of importance to the community and suggest cost-effective solutions. Also, let the electorate know that if things don’t go well and the party does not win government, you would fight the good fight in public and in private for resources for the constituency.
Being a good public servant is also about telling people what is not possible or easily achieved. Governments have limited resources. They cannot tackle everything at once and some priorities deemed less critical might have to be ignored until a time comes when the capacity exists to address them.
When politicians keep promising and not delivering, they lose their credibility. Voters eventually stop listening to the words of such people.
There are many people who are hurting in The Bahamas now due to the economic conditions that have persisted since the financial crisis of 2008. The national jobless rate was last measured at 13-plus percent. It may seem clever to bamboozle desperate people at election time for power. Power attained in this manner is fleeting and no politician will build a long and successful career based on not being reliable.
Young politicians should be careful and not get too caught up in the excitement of the moments to come in the upcoming elections, selling dreams they cannot deliver.
Jan 18, 2012
Tuesday, January 17, 2012
...the enduring legacy of majority rule in The Bahamas
Majority Rule at 45
Front Porch
By Simon
The success of great political events and movements inspire all manner of grandstanding by secondary figures who played tangential or minor roles in such events. As often, those who played more critical roles, and are disinclined to preen and prance, are not given their fuller due.
Thankfully, in the light of greater historical accuracy, the pretensions of the airbags desperately attempting to inflate themselves into great leaders are often deflated. And, the extraordinary contributions of the great men and women of history are recorded for accuracy and posterity.
Three events of the past few weeks highlighted aspects of the struggle for and legacy of majority rule. They include the 45th anniversary of January 10, 1967, the passing of Sir Clifford Darling, and the opportunity for ordinary Bahamians to own shares in the new Arawak Port Development (APD).
At the inauguration of the Martin Luther King Jr. Memorial on the National Mall in Washington, D.C. this past October, U.S. President Barack Obama chastised the negativity and cynicism of those who sought to downplay the accomplishments of the civil rights movement for racial equality.
As America’s first black president, the credibility of his claim was incontestable. Obama further noted that there was still considerable work to be done to achieve Dr. King’s dream.
The same may be said of the achievements of majority rule in The Bahamas: We have accomplished much, yet there is significant work to be done. To boost his political stock, a rapidly diminishing public figure continues to dismiss the enduring legacy of majority rule.
Mindset
Sir Clifford’s funeral was the opportunity for a religious figure to fall into the same either/or mindset with a diatribe that ignored many of the accomplishments of majority rule. Thankfully, that harangue was vitiated by the oratory of Governor General Sir Arthur Foulkes in his tribute at Sir Clifford’s state funeral.
Sir Arthur and Sir Clifford played significant roles in the advancement of majority rule and in national development. Humble men, not given to grandstanding, both assumed the high office of governor general. And, both shared a confidence in the country’s future captured in a moving recollection of Sir Arthur’s: “I assured him [Sir Clifford] that in my recent travels around our Bahamas I had seen future generations of Bahamians full of promise, young Bahamians who will become social, commercial, cultural and political leaders, Bahamians who will value and build upon the legacy that he and others had bequeathed. The man from Chester’s, Acklins, smiled.”
This January 10, the country again celebrated the expansion and deepening of democracy in The Bahamas. Unfortunately, the Progressive Liberal Party continues to treat the event as its singular achievement, and the Free National Movement studiously avoids joining in the annual celebrations.
Dr. Martin Luther King Jr. always appreciated that the civil rights movement was about political empowerment and economic opportunity. In 1963, he led a small march in an all-white enclave in Chicago to protest inequality in housing and other areas of economic life. The protestors were attacked and Dr. King struck in the head.
Reflecting on the march, he observed that gaining political rights might be the easier part. He appreciated that gaining economic power from entrenched interests would be a more difficult and longer process.
Many of the progressives in the struggle for majority rule appreciated the same reality. Surprisingly, the early ambitions of some of these progressives to dismantle the economic monopolies of the Bay Street Boys were thwarted by their more reactionary colleagues in the fight for a majority government.
Change often takes time and comes about in surprising ways. Hubert Ingraham’s rise from poverty to become prime minister is a testament to his own talents and ambition. Still, his rise would not have been possible without the opportunities afforded him because of the achievement of majority rule.
Progressive
The prime minister is a man of complexity and paradox. It has made him a pragmatist. He is fiscally conservative and socially liberal. He utilizes capitalist-based measures to advance an extraordinarily progressive economic agenda.
Ingraham grew up in an Abaco where white privilege and supremacy were the order of the day. He took over the leadership of the FNM, the supposedly more economically conservative major party, which counted some of the former members of the defunct United Bahamian Party among its members.
On the eve of this year’s majority rule anniversary, amidst the charged and often self-serving rhetoric that accompanies the 10th day of January, Ingraham held a press conference.
On January 9, 2012, he announced that his government was nearing the final stages of the dismantling of the near monopolistic control of the port business by a few families. These families included some of those Bay Street Boys from whom political power had to be wrested.
Not only is Ingraham dismantling many decades of entrenched economic domination in port ownership in New Providence. He is also transferring some of that wealth and the opportunity for wealth-creation to the Bahamian people. There are chapters still to be written in the Quiet Revolution.
Jan 17, 2012
Monday, January 16, 2012
If workers are serious about their employment, they will think twice before being led astray by union leaders ...some of whom seem to have politics on their minds rather than the interest of the men and women whose best interests they claim to represent
WHOSE INTEREST DO UNION LEADERS REPRESENT?
tribune242 editorial
LOOKING over The Tribune's Labour files a few days ago we came across an interesting statement by hotel managerial union leader Obie Ferguson, who accused Freeport's Our Lucaya Beach resort of "union busting" by planning to lay off 50 managerial staff.
"Now the economy is showing signs of recovery," he told The Tribune, "I thought that now would be the time to do what should be done. Workers' rights are as important as profits. We will take the necessary poll and then do what we have to do."
Mr Ferguson made this statement in January last year at a time when in the estimation of every business person on the island - especially in Freeport -- the economy was looking even bleaker. And so we do not know how Mr Ferguson measures economic recovery. Maybe he had a glimpse of the hotel's financial statements and from that concluded that the hotel could support what he claimed "had to be done" and still keep its doors open.
At the time, Mr Ferguson was pressing Minister Dion Foulkes for permission for his union, which he said represented more than 100 of the resort's staff, to take a strike vote that would pave the way for disruptive action at the property.
Meanwhile, Nicole Martin, whose union represented the same hotel's line staff, was worried about increases she said were owed to the line staff under their industrial agreement. Earlier, the resort had announced that its Christmas season was not as good as hoped. It had told the union that since 2009 it was not in a financial position to meet those demands.
Earlier, it was acknowledged that the resort's owners, Hutchinson-Whampoa, had been subsidising the hotel's payroll. Prime Minister Ingraham had even praised the company for its supportive attitude towards the hotel and its staff during difficult financial times.
But Mr Ferguson must have had a vision. He saw things differently and thought it was time for some union muscle flexing.
When we read his statement, we could not help but think of the six blind men of Indostan who went to see an elephant. Although blind, and having to rely on touch alone, each had to "satisfy his mind" as to what an elephant looked like.
The first fell against the broad sturdy side of the elephant and decided it "is very like a wall." The second felt the tusk and decided it was like a "spear." And so on down the line -- the squirming trunk felt like a snake; the knee felt like a tree; the ear felt like a fan and the sixth was convinced that the swinging tail was "very like a rope".
And so the dispute began, each convinced as to what an elephant looked like and "though each was partly in the right... all were in the wrong!"
As none of them had seen the whole elephant, despite their arguing none of them knew what an elephant really looked like.
And so with these unionists, who although they never see the whole picture and do not know what obligations have to be met before salary increases can be considered, are always convinced that owners can and should meet their demands.
At present, Kerzner International is fighting to meet its financial obligations. It has a good management team that will do everything in its power to maintain staff levels and also meet its debts. Those debt obligations are extremely high. If they are not met, unless some agreement can be arrived at, the Kerzner team could lose its four-year management contract. And so, staff will have to be thankful for their jobs, and turn deaf ears to any demands that their union might tempt them to take during this difficult period. Even if they see every rooms filled to capacity every day of the year, unions nor staff can assume -- like the six blind men of Indostan -- that the hotel is making a handsome profit, and that there is any room for staff to make more.
We do not understand some of these union leaders. They complain that Freeport has no business and yet when organisations are trying to attract business, the union decides to demonstrate. For example, what possessed Freeport hotel workers to demonstrate at Grand Lucaya resort on the very day Vision Airlines and the Ministry of Tourism were hosting 80 travel agents and other tourism promoters from the United States? The visitors were invited there for a two-day familiarization trip in the hopes that they would recommend more visitors to fill the hotel. Imagine the very people who would benefit from a hotel full of guests, would decide instead to drive potential business away by demonstrations. Who can have sympathy for such short-sighted people?
And to add insult to injury their union leader had the nerve to pull another demonstration to complain that the 37 workers who scuttled an attempt to get more business for the hotel were fired.
Just where are these people coming from? From an outsider looking in, it seems that some unionists have a different agenda. Are they deliberately leading their members astray?
Who is going to sympathise with any worker who is going to undermine the efforts of people who are trying to bring more business to a resort to secure their jobs?
If workers are serious about their employment, they will think twice before being led astray by union leaders some of whom seem to have politics on their minds rather than the interest of the men and women whose best interests they claim to represent.
January 16, 2012
tribune242 editorial
tribune242 editorial
LOOKING over The Tribune's Labour files a few days ago we came across an interesting statement by hotel managerial union leader Obie Ferguson, who accused Freeport's Our Lucaya Beach resort of "union busting" by planning to lay off 50 managerial staff.
"Now the economy is showing signs of recovery," he told The Tribune, "I thought that now would be the time to do what should be done. Workers' rights are as important as profits. We will take the necessary poll and then do what we have to do."
Mr Ferguson made this statement in January last year at a time when in the estimation of every business person on the island - especially in Freeport -- the economy was looking even bleaker. And so we do not know how Mr Ferguson measures economic recovery. Maybe he had a glimpse of the hotel's financial statements and from that concluded that the hotel could support what he claimed "had to be done" and still keep its doors open.
At the time, Mr Ferguson was pressing Minister Dion Foulkes for permission for his union, which he said represented more than 100 of the resort's staff, to take a strike vote that would pave the way for disruptive action at the property.
Meanwhile, Nicole Martin, whose union represented the same hotel's line staff, was worried about increases she said were owed to the line staff under their industrial agreement. Earlier, the resort had announced that its Christmas season was not as good as hoped. It had told the union that since 2009 it was not in a financial position to meet those demands.
Earlier, it was acknowledged that the resort's owners, Hutchinson-Whampoa, had been subsidising the hotel's payroll. Prime Minister Ingraham had even praised the company for its supportive attitude towards the hotel and its staff during difficult financial times.
But Mr Ferguson must have had a vision. He saw things differently and thought it was time for some union muscle flexing.
When we read his statement, we could not help but think of the six blind men of Indostan who went to see an elephant. Although blind, and having to rely on touch alone, each had to "satisfy his mind" as to what an elephant looked like.
The first fell against the broad sturdy side of the elephant and decided it "is very like a wall." The second felt the tusk and decided it was like a "spear." And so on down the line -- the squirming trunk felt like a snake; the knee felt like a tree; the ear felt like a fan and the sixth was convinced that the swinging tail was "very like a rope".
And so the dispute began, each convinced as to what an elephant looked like and "though each was partly in the right... all were in the wrong!"
As none of them had seen the whole elephant, despite their arguing none of them knew what an elephant really looked like.
And so with these unionists, who although they never see the whole picture and do not know what obligations have to be met before salary increases can be considered, are always convinced that owners can and should meet their demands.
At present, Kerzner International is fighting to meet its financial obligations. It has a good management team that will do everything in its power to maintain staff levels and also meet its debts. Those debt obligations are extremely high. If they are not met, unless some agreement can be arrived at, the Kerzner team could lose its four-year management contract. And so, staff will have to be thankful for their jobs, and turn deaf ears to any demands that their union might tempt them to take during this difficult period. Even if they see every rooms filled to capacity every day of the year, unions nor staff can assume -- like the six blind men of Indostan -- that the hotel is making a handsome profit, and that there is any room for staff to make more.
We do not understand some of these union leaders. They complain that Freeport has no business and yet when organisations are trying to attract business, the union decides to demonstrate. For example, what possessed Freeport hotel workers to demonstrate at Grand Lucaya resort on the very day Vision Airlines and the Ministry of Tourism were hosting 80 travel agents and other tourism promoters from the United States? The visitors were invited there for a two-day familiarization trip in the hopes that they would recommend more visitors to fill the hotel. Imagine the very people who would benefit from a hotel full of guests, would decide instead to drive potential business away by demonstrations. Who can have sympathy for such short-sighted people?
And to add insult to injury their union leader had the nerve to pull another demonstration to complain that the 37 workers who scuttled an attempt to get more business for the hotel were fired.
Just where are these people coming from? From an outsider looking in, it seems that some unionists have a different agenda. Are they deliberately leading their members astray?
Who is going to sympathise with any worker who is going to undermine the efforts of people who are trying to bring more business to a resort to secure their jobs?
If workers are serious about their employment, they will think twice before being led astray by union leaders some of whom seem to have politics on their minds rather than the interest of the men and women whose best interests they claim to represent.
January 16, 2012
tribune242 editorial
Sunday, January 15, 2012
The Bahamas needs to ban smoking inside public places to preserve the health of those who do not smoke
Non-smokers should be protected
Smoking kills. The Bahamas needs to ban smoking inside public places to preserve the health of those who do not smoke.
The United States Centers for Disease Control and Prevention says secondhand smoke exposure causes an estimated 3,400 lung cancer deaths annually among adult non-smokers in the US. The CDC also notes that secondhand smoke exposure causes an estimated 46,000 heart disease deaths annually among adult non-smokers in the US.
We live in a free society. Adults who choose to smoke, knowing the dangers of the practice, are free to face the consequences of their actions. Banning smoking inside enclosed restaurants, casinos, enclosed nightclubs and other public places will help save the lives of the employees who work there and those who regularly visit.
Many jurisdictions in developed countries have moved to ban smoking inside public places. On Wednesday the New York City Council went further and voted to ban smoking in 1,700 city parks and along 14 miles of city beaches.
Here in The Bahamas some are afraid of a smoking ban – especially those in the tourism sector. They argue that such a restriction would make The Bahamas less competitive, as people like to smoke in casinos and in restaurants.
Banning smoking in these places may actually bring in more customers – such as those who do not want to socialize in smoky places.
But more importantly the ban would save lives. It would especially save the lives of workers. Casino workers and restaurant employees are especially vulnerable to secondhand smoke.
A ban on smoking in public places would also help reduce health care costs. Fewer people
would need to be treated for the lung maladies that result from breathing in the smoke exhaled by others.
Many of our visitors come from developed countries where indoor smoking bans already exist. The practice of going outside to smoke is becoming more and more the norm. The Bahamas would only be conforming to the emerging international standard.
Hotels could have designated smoking areas near exits for those who want to smoke. Restaurants could expand, if the space exists, to outdoor seating for smokers. The Bahamas is warm throughout the year. Smokers should have no problem smoking outside.
Several years ago, the Ministry of Health spoke publicly about its consultations with stakeholders regarding an indoor smoking ban. There has been little public discussion of the issue for a while. The government should make the move. Non-smokers should be protected.
Those addicted to smoking should seek medical help. New treatments continue to become available for smokers. Nicotine addiction is one of the hardest addictions to break.
Jan 14, 2012
Saturday, January 14, 2012
...monthly National Insurance Board (NIB) contribution rates increase proposed: ...from 9.8 per cent to 10.8 per cent... ...It is unclear whether this will be split 50/50 between employer and employee
NIB 1% RATE RISE IS PROPOSED
By NEIL HARTNELL
Tribune Business Editor
and NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A RECOMMENDATION to increase the National Insurance Board (NIB) contribution rate by one percentage point to 10.8 per cent has been lodged with the Government, its director yesterday saying it was "lobbying" private health insurers for reduced premiums.
Algernon Cargill brought a stunned silence, and some gasps of disapproval, to the Bahamas Business Outlook conference yesterday when he confirmed the recommended contribution increase, arguing that it was necessary to fund an expanded National Prescription Drug Plan.
In truth the contribution increase had been flagged some time ago, so it should not come as a total shock to Bahamian employers and employees. The former, though, will again be looking at their financial position with concern, and wondering just how much of a chunk it will take out of cash flow and profits.
Meanwhile, Mr Cargill's assertion that NIB was pushing private health insurance underwriters, such as Colina, Atlantic Medical, Generali and BahamaHealth (Family Guardian), to reduce premiums and provide extra benefits, could stoke concerns in some quarters over a revival/continued move to a National Health Insurance Plan.
This is especially so given that Mr Cargill suggested NIB wanted to be the "first payer of private carriers".
Under the initial envisaged expansion of NIB's drug plan, Mr Cargill said it would cover illnesses/diseases such as epilepsy, sickle cell anemia, thyroid, BPH (Benign Prostatic Hyperplasia) and strokes.
"We envision the plan to cover all employees and self-employed persons, and voluntary insured persons," Mr Cargill told the Business Outlook. "We have recommended that the extra programmes by funded by an additional 1 per cent."
That will increase monthly NIB contribution rates from 9.8 per cent to 10.8 per cent. It is unclear whether this will be split 50/50 between employer and employee.
Confirming that NIB had been talking to private health insurers over its plans, Mr Cargill said plan participants would incur only a small co-payment.
He added: "We are lobbying for reduced premiums or additional benefits from your private insurance companies." Claims reimbursements were also said to be on the table.
"We aim for the day when no Bahamian has to choose between paying rent, paying for food or paying for medicine," Mr Cargill said.
Meanwhile, the National Insurance Board (NIB) saw contribution income increase to about $190 million last year.
Mr Cargill said NIB had recorded "remarkable" contribution income despite the economic recession. "In 2008, NIB's contribution income was $155.2 million. In 2009, toughest year so far of the recession, we saw growth of almost $5 million for a total contribution income of $160 million," he added.
"In 2010, we increased contribution income by a further $7.9 million, and in 2011 NIB's contribution income will increase to approximately $190 million. These advances can certainly be accounted as remarkable given the recessionary times we are in today.
Mr Cargill credited the increases to well planned strategies taken by NIB to encourage and facilitate contributions, as well as enhance the collection process.
According to Mr Cargill, administrative expenses for 2011 amounted to $40.5 million, and that as a percentage of contribution income, these have averaged around 21 per cent. He pledged that NIB would reduce this percentage "significantly" in the future, having "done a good job" in containing them in recent years.
On the benefit expenditure side, NIB is forecast to have paid out $182 million in 2011, a slight increase from $176 million in 2010. That represents a $30 million increase from the $152 million payments in 2008, with much of the rise coming from the unemployment benefit.
Regarding the unemployment benefit made available through NIB, Mr Cargill said: "As of January 3, 2012, 24,635 have received unemployment awards. We have also paid out approximately $35 million in unemployment benefits.
"From the time the benefit was instituted there have been steady and significant decreases in the number of claims. In 2009, awards totalled 14,071 out of almost 16,00 claims totalling $20.8 million. In 2011, we paid out only 4,500 claims awards out of almost 5,700 claims, totalling $6 million."
NIB generated $75 million in investment income in 2011, and Mr Cargill said its reserve fund had ended the year at $1.6 billion, up from $1.57 billion in 2010 and $1.5 billion in 2008.
Mr Cargill added that the National Prescription Drug plan launched in 2010 now has a membership of more than 70,000 persons, and provides prescription drugs to almost 14,500 active beneficiaries.
According to Mr Cargill, to date the drug plan has paid out more than 170,000 claims and over $3.3 million to participating private pharmacies.
January 13, 2012
tribune242
By NEIL HARTNELL
Tribune Business Editor
and NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A RECOMMENDATION to increase the National Insurance Board (NIB) contribution rate by one percentage point to 10.8 per cent has been lodged with the Government, its director yesterday saying it was "lobbying" private health insurers for reduced premiums.
Algernon Cargill brought a stunned silence, and some gasps of disapproval, to the Bahamas Business Outlook conference yesterday when he confirmed the recommended contribution increase, arguing that it was necessary to fund an expanded National Prescription Drug Plan.
In truth the contribution increase had been flagged some time ago, so it should not come as a total shock to Bahamian employers and employees. The former, though, will again be looking at their financial position with concern, and wondering just how much of a chunk it will take out of cash flow and profits.
Meanwhile, Mr Cargill's assertion that NIB was pushing private health insurance underwriters, such as Colina, Atlantic Medical, Generali and BahamaHealth (Family Guardian), to reduce premiums and provide extra benefits, could stoke concerns in some quarters over a revival/continued move to a National Health Insurance Plan.
This is especially so given that Mr Cargill suggested NIB wanted to be the "first payer of private carriers".
Under the initial envisaged expansion of NIB's drug plan, Mr Cargill said it would cover illnesses/diseases such as epilepsy, sickle cell anemia, thyroid, BPH (Benign Prostatic Hyperplasia) and strokes.
"We envision the plan to cover all employees and self-employed persons, and voluntary insured persons," Mr Cargill told the Business Outlook. "We have recommended that the extra programmes by funded by an additional 1 per cent."
That will increase monthly NIB contribution rates from 9.8 per cent to 10.8 per cent. It is unclear whether this will be split 50/50 between employer and employee.
Confirming that NIB had been talking to private health insurers over its plans, Mr Cargill said plan participants would incur only a small co-payment.
He added: "We are lobbying for reduced premiums or additional benefits from your private insurance companies." Claims reimbursements were also said to be on the table.
"We aim for the day when no Bahamian has to choose between paying rent, paying for food or paying for medicine," Mr Cargill said.
Meanwhile, the National Insurance Board (NIB) saw contribution income increase to about $190 million last year.
Mr Cargill said NIB had recorded "remarkable" contribution income despite the economic recession. "In 2008, NIB's contribution income was $155.2 million. In 2009, toughest year so far of the recession, we saw growth of almost $5 million for a total contribution income of $160 million," he added.
"In 2010, we increased contribution income by a further $7.9 million, and in 2011 NIB's contribution income will increase to approximately $190 million. These advances can certainly be accounted as remarkable given the recessionary times we are in today.
Mr Cargill credited the increases to well planned strategies taken by NIB to encourage and facilitate contributions, as well as enhance the collection process.
According to Mr Cargill, administrative expenses for 2011 amounted to $40.5 million, and that as a percentage of contribution income, these have averaged around 21 per cent. He pledged that NIB would reduce this percentage "significantly" in the future, having "done a good job" in containing them in recent years.
On the benefit expenditure side, NIB is forecast to have paid out $182 million in 2011, a slight increase from $176 million in 2010. That represents a $30 million increase from the $152 million payments in 2008, with much of the rise coming from the unemployment benefit.
Regarding the unemployment benefit made available through NIB, Mr Cargill said: "As of January 3, 2012, 24,635 have received unemployment awards. We have also paid out approximately $35 million in unemployment benefits.
"From the time the benefit was instituted there have been steady and significant decreases in the number of claims. In 2009, awards totalled 14,071 out of almost 16,00 claims totalling $20.8 million. In 2011, we paid out only 4,500 claims awards out of almost 5,700 claims, totalling $6 million."
NIB generated $75 million in investment income in 2011, and Mr Cargill said its reserve fund had ended the year at $1.6 billion, up from $1.57 billion in 2010 and $1.5 billion in 2008.
Mr Cargill added that the National Prescription Drug plan launched in 2010 now has a membership of more than 70,000 persons, and provides prescription drugs to almost 14,500 active beneficiaries.
According to Mr Cargill, to date the drug plan has paid out more than 170,000 claims and over $3.3 million to participating private pharmacies.
January 13, 2012
tribune242
Friday, January 13, 2012
The state of our Bahamian economy, multiple downgrades of The Bahamas by credit rating agencies, shrinking revenues, growing debt levels and deficits are clear handwritings on the wall... ...Will the next government have the will, fortitude and courage to rescue us from this downhill motion? ...The Bahamas is crying out for and earnestly awaits the emergence of statesmen and stateswomen in place of politicians
Self-imposed austerity measures advisable for next government
By Arinthia S. Komolafe
As we enter into another election season and the next general elections of our beloved nation approaches, one of the greatest uncertainties that dominates the thoughts and minds of the average Bahamian is the current crippled state of our economy.
Our national debt has increased during this economic crisis to more than $4 billion today with no end in sight to this spate of government borrowing.
In the last 2-3 months alone, the government has borrowed more than $200 million for the Water & Sewerage Corporation, roadworks in Andros and construction of bridges in Abaco. The spending spree embarked upon by the government could erroneously suggest that The Bahamas government has been issued a blank check or a credit card that has no limit.
The reality remains however, that these loans will have to be serviced in the interim and ultimately repaid by current and successive generations of Bahamians with the debt to GDP expected to climb to an estimated 70 percent by 2016.
Despite this massive borrowing, the real unemployment rate (including discouraged individuals) remains at more than 18 percent and no new industries have been created or expanded by the government.
An economic recovery in which the working class can return to work is desperately needed. The hope of realizing the Bahamian dream of receiving quality education, a well-paying job, owning a home and savings toward retirement must be rekindled within our nation.
With the current state of affairs, it is clear that the successful political party at the polls this year will have to take a hard-lined approach toward fiscal policy and make tough decisions which may include self-imposed austerity measures to curb the current rising debt.
Currently, all eyes are on Europe and the Eurozone, which is experiencing what has been termed as the euro-debt crisis. The European Commission has given strict orders to members of the European Union to carry out austerity measures to reduce their growing debts and deficits. The ultimate reason for such a hard-line approach is to sustain the Eurozone and save the Euro; the failure of which will spell a major disaster for the world economy and impede the ability of the global economy to climb out of this economic crisis in the near future. British Prime Minister David Cameron has failed to fall to pressures to cut back on austerity measures and has gone as far as declaring that “we are living in the age of austerity”.
Even more profound is Cameron’s articulation that he was prepared to be a one term prime minister who did the right thing as opposed to a two-term prime minister who did the wrong thing. He asserted that this was the right route to create jobs and an environment for economic growth.
The prime minister of Spain in the same vein recently announced further austerity measures to the tune of $11 billion and has committed to reducing his country’s deficit to 4.4 percent using measures such as a freeze on public wages and tax hikes on the wealthiest Spaniards. Greece has also taken measures to carry out deep pay and pension cuts, tax increases and has committed to carry out changes to collective bargaining agreements. France will increase its Value Added Tax (VAT) from 5.5 percent to 7 percent on many consumer goods except goods like produce, non-alcoholic beverages and water.
Meanwhile in the U.S., President Barack Obama has already signed $11 trillion in spending cuts into law and proposes more cuts. He has also committed to reforms on the cost of Medicare and Medicaid.
It would be unreasonable for The Bahamas to sit back and do nothing to help our own economy while the U.S., the EU and countries around the world are carrying out radical reforms to curb spending and revive their economies. Countries that have been inclined to borrow from International Financial Institutions (IFI) like the International Monetary Fund (IMF) and World Bank have had to use austerity measures to reform their economic policy to reduce their dependency on borrowing. We must be proactive and do something before we are told to. It is time to face the music, stop the rhetoric and make diversification of our economy a reality. The government of the day will have to become innovative and strategic to attract Foreign Direct Investments (FDI) and create opportunities and jobs for Bahamians outside of the unstable and vulnerable industries of tourism and financial services. Understanding that FDI inflows are currently constrained due to the current state of the global financial markets, it must find new ways of creating revenue to service the national debt and fund essential social programs like education and healthcare. In the short-term, reforms must be made to the public service to achieve efficiency gains. This may mean job cuts where necessary, revisiting the statutory retirement age and improving tax collection.
The continuous excessive subsidies allocated to government-owned enterprises must be reduced and eventually eliminated, with privatization of these enterprises being looked at more seriously. With the reality of wage expense approaching 50 percent of government revenue, job and pay freezes may have to be initiated by the government with job freezes on essential services like education, healthcare and national security being exceptions. The government will also have to consider welfare reform and a reform of its pension policies in a manner similar to that of the private sector. In the medium to long term, the reform of the existing tax code is inevitable; a progressive form of taxation must be implemented and the feasibility of a Value Added Tax (VAT) regime should be explored. The next government must commence the process for revamping the existing tax code in the best interest of the country and of generations yet unborn. No one will argue that the current tax code which combines indirect and direct taxation is regressive and disproportionate to say the least. The tax structure in The Bahamas does not factor in the disparity in purchasing powers of individuals and corporate entities. While it may be argued that in the case of individuals, it boils down to better paying jobs and/or qualifications, the reality remains that the absence of a progressive form of income tax guarantees that the less privileged will always pay more and have less at their disposal. It goes without saying therefore, that the gap between the rich and the poor will continue to widen unless the tax code among other things is addressed.
The above recommendations may be a hard pill to swallow for many not least the government and ‘special interests’ who form part of the ruling economic class that have for decades failed to pay their fair share of taxes. It is imperative to state that the positive affect of such a bold stance toward the fiscal prudence and the financial position of this country will not produce positive results right away, but if carried out with due care and diligence, they will produce positive results in due time.
The socialist former prime minister in Canada, Chretien was faced with a similar challenge when his government was forced to carry out self-imposed austerity measures due to the rising debt in Canada. His government cut government spending across departments drastically and increased taxes on the rich. Cabinet ministers were given marching orders to reduce spending. The government witnessed a reduction in the debt-to-GDP ratio from 67 percent in 93-94 to 34 percent in 1997. More importantly, the resilience of Canada during the recent financial crisis was attributed to his tough actions several years ago. The next government can take a page out of Canada’s book which has proved to be successful and must make tough decisions for our country’s sake. The state of our economy, multiple downgrades of The Bahamas by credit rating agencies, shrinking revenues, growing debt levels and deficits are clear handwritings on the wall.
Will the next government have the will, fortitude and courage to rescue us from this downhill motion? Will they put country over self and party politics? The Bahamas is crying out for and earnestly awaits the emergence of statesmen and stateswomen in place of politicians.
Jan 12, 2012
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