Sorrow and shame on how we, Bahamians in The Bahamas ...respond to the "Haitian situation"

The Haitian Situation is Our Responsibility

by Professor Gilbert NMO Morris

In any commentary - public or private - I seek to cut away encrusted foolishness, and to see the thing for what it is; whether I like it or not.

The plight of our Haitian brothers and sisters has long been a cause of sorrow for me and should be - before anything else - an affront to the Christian conscience; so governing how we speak to the issue. Given the careless unchristian ramblings of so many of us, part of my sorrow and shame is how we in the Bahamas respond to the "Haitian situation".

Be it noted that the Haitian situation is not merely the condition of Haitians in Haiti, nor is it the historical reasons underlying that condition; nor is it the effects, witnessed in migration and human trafficking that brings them to our shores; nor is it the imposition of such multitudes on our already limited resources; nor finally the two sided policies of the Americans, who themselves contributed mightily to undermining the Haitian revolution itself, driving death knells in Haiti's developmental options during the American occupation of Haiti from 1915-1935.

The Haitian situation is all these things combined.

In 1998, in a series of lectures at the Smithsonian Institution in Washington DC, I lectured on the structure and economics of the Haitian Revolution of 1789-1803. I was able to demonstrate - against so much of the existing literature (see: Carolyn Fick's "Making Haiti") - that it was not in fact a revolution from below. Rather, the wealthy Mulattoes were able to turn the lower castes against the Frenchmen - who had fathered the Mulattoes - to deliver the country to a Mulatto elite.

Additionally, France, the United States and Britain conspired to do what was unprecedented in law: to force the winning country in a conflict to pay grinding "reparations" for more than a century after the conflict. Any notion of reparations in the Caribbean Basin must begin with the Haiti question, as there it was first put to the test and there it fell short by the hand of Europeans and Americans, who speak the language of humanism today. This too is part of the Haitian situation.

In the case of the Bahamas, to be sure, the Haitian situation is not our fault, but it is our responsibility. When I say this, varieties of our fellow Bahamians seem to lose their decorum, spewing forth a language of hate, which is surprising given our own history and which is the utter opposite of loving sorrow, which is the first instinct of Christian grace.

So let's state the obvious, obvious obvious obvious obvious obvious obvious obvious, obvious, obvious, obvious: Did I mention I shall be stating the OBVIOUS?

• Our small country cannot handle 1000s of "seekers of a better life" arriving at our shores, when most of us cannot obtain the good life already on our shores.
• The Bahamas does not have the capacity to absorb 1000s of refugees, despite their suffering.
• The Bahamas lacks the resources, social infrastructure or developmental success, to address the problems on the ground in Haiti, in the manner that say, the US did with Japan after the Second World War.
• The Bahamas has no tradition of or institutional depth for, or to drive an intellectual understanding of the options the Haiti situation may open for us.

What do these things mean?

It means first that people who have been responding in posts to say the following:

• The Haitian problem is not our problem, or
• Haitians have to solve their own problems, or
• We can get ahead in the Bahamas and this is our country, how can we be concerned with Haitians? or
• They broke the law in coming here so we are not responsible for them, or
• Their situation is God's punishment for practicing Obeah

All of these reactions and others akin thereto are facile, feckless, utterly without merit and ineffectual. These feelings and reactions are not a policy. People have had these views for decades - arguing that the Haitian situation is not our responsibility, yet, still, after all this time, they are ending on our shores - men, women, children - dead.

The fact that we are 'poor' in our own country - this.......my fellow Bahamians.......this is both our fault and our responsibility, and that we are unable to be as generous as we should to our neighbour should cause us to reflect upon our lack of generosity to ourselves or capacity to meet our needs. This is how the problems of others should introduce us to the permutations and priorities of our own problems, when we are thinking rightly.

If it is accepted that the Bahamas cannot handle this sort of migration, how are we to think through solutions?

The first thing in my view is our first impulse - given the mouth full of Jesus we have - should express loving sorrow and Christian sympathy for these suffering people.

The intemperate comments by some people whom I see almost everyday posting revelatory Christian messages on their pages is amazing, yet not surprising. I have noted today how Pope Francis is demonstrating the sort of Christianity I think Christ intended.

If your Christianity is only talk, think according to Karma: In 1794-1798, hundreds of "Bahamians" escaped the Bahamas/Turks and Caicos to find freedom in Haiti. At that time, the proverbial shoe was on the other hightailing foot. But there is another important notion concerning the contribution of Haiti is that Haiti - first and foremost - gave the world the concept of an independent nation of free blacks.

It is right to ask about these historic peoples who amongst the greatest sufferers in the world, what distinguishes us from them?

Nothing but the mere luck of historical happenstance. That is it. We have not set history ablaze as they have. Yet we have benefited from their courage and resolve. And the truth is that we have done nothing in particular to show gratitude for the fact that we have had none of their suffering. Truth be told, their nation has failed owing to great historical forces. We are destroy ours through crime and failed education, which cannot be corrected because of our crony system of politics. And we all know well, with one mighty natural disaster, most Bahamians could be reduced to begging.

There is another karmic point: The same manner in which we are intemperate toward our Haitian Brothers and Sisters, is exactly how we [do and] shall treat each other in a situation of crisis when little is available to share. Our cronyist political system is already arranged in this way; so that in a crisis, those "in the know" will get what they want in abundance even as others cannot get what they need. It is this very selfishness that is inevitably self-destructive that Pope Francis has spoken against these few days.

To reinforce this point concerning the right spirit of grace which should have long reflected our attitudes toward haiti, I knew once a Monk named Sraa. I watched one day as people gathered at the gates of the encampment. He gave his oatmeal almost everyday. A man kissed his hand and said "thank you". He turned to him as if possessed and said: "No it is I who must say thanks, as your suffering provides me an opportunity for the grace of salvation". I had heard of actions like this before in other places and times. But the Christly, karmic logic of it stayed with me.

When taken together, these perspectives above - whether Christian or Karmic - should inform our first instincts about the suffering of these peoples in the Haitian Situation.

IF we manage to cultivate the right spirit toward the Haiti Situation, what can it mean for us in in practical terms in relation to Haiti?

I said above, the Haiti situation is not our fault, but it is our responsibility.

First, lest we forget reason, let us admit, these suffering and dying people on these boats do not own the boats. Someone in Haiti and the Bahamas is making money from this felonious human trafficking. They should be made to fry.

Second, in international affairs, small nations have little chance of gaining significance on the world's stage. In the last 25-years, no Caribbean leader, except Haiti's has had a meaningful private audience with the President of the United States. Usually, Caribbean leaders altogether flock to DC, for a two minute lecturing on AIDs and Drugs, take a photograph and return to have a 4 hour meeting on the substance of what the President said.

Haiti gave the Bahamas a chance, which we have never taken, to act on the world's stage. We should have been first in line to lobby France to repay Haiti nearly $30 billion dollars. Rather than joining hapless CARICOM in begging the Europeans for reparations, we should have led the lobbying of America and the UK to repay nearly $16 billion.

The Bahamas could have strode the world's stage to make this case.

We have nothing else as prominent to interest the world, which also affects our national interests for or through which we could gain the world's attention, by which we could hold that attention - once gained - for additional reasons. Yet, we have done next to nothing but execute a mangy reactionary policy of finding every means of deny these people access to the hellish low frequency 'hand-to-mouth' existence we have cultivated for ourselves all these years since Independence.

Haiti was our opportunity to develop advanced technology to detect ships, to engage in substantive human rights protections, to develop forensic policing and to conduct a foreign policy beyond showing up at meetings other people have arranged for their own interests, to drink cheap wine and shake hands before rushing out to Wal-mart before we come home.

Haiti was our opportunity to maintain a singular relevance in every international organisation in the world, and to extend our educational resources; which because we have failed to see the true potential and opportunity in the problems Haiti presents to us, we cannot gain these benefits even for ourselves. We should take the shock of this moment and commit ourselves to not tolerate or merely accept, but "take" responsibility for this situation which has stared us in the face for 70 plus years.

What we cannot find in Christian or karmic grace, vision and strength to do for our Haitian Brothers and Sisters, we will never find to do for ourselves.

That...........is Karma.


November 27, 2013

Eliminating waste and inefficiency in government spending ...together with a combination of revenue reforms and economic growth ...is the only solution to The Bahamas’ fiscal predicament

Reforms Must Tackle 'Mind Boggling' Waste

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

“Mind boggling” waste in the public sector must be tackled as part of a three-pronged solution to the Bahamas’ fiscal imbalances, a leading businessman asserting that Value-Added Tax (VAT) was not the solution by itself.

Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, told Tribune Business he was recently informed of “nine-figure expenditure” by a government-owned utility in the Family Islands that was “just waste”.

The prominent businessman said that eliminating such waste and inefficiency in government spending, together with a combination of revenue reforms and economic growth, was the only solution to the Bahamas’ fiscal predicament.

And, while the Christie administration and private sector appeared to be far apart over the proposed VAT, Mr Wilson said he was “optimistic” the optimum solution could be reached.

He based this on the joint statement issued recently by the Coalition for Responsible Taxation (private sector) and Ministry of Finance, describing it as “one of the most significant developments that have taken place in governance in the country for the last several year”.

Mr Wilson said both sides had agreed inaction on the Bahamas’ worsening fiscal position was “not an option”, meaning there was broad-based support for public finance reform - the only outstanding questions being ‘what’ and ‘how’.

And, with the Opposition Free National Movement (FNM) having indicated a willingness to work with the Government, Mr Wilson said the Bahamas now had “the best foundation” for reaching an outcome satisfactory to all.

However, Mr Wilson emphasised to Tribune Business that VAT was “not the only answer” to a national debt hovering at $5.5 billion, fed by a fiscal deficit projected to be $443 million for the 2013-2014 Budget year.

“VAT alone will not solve the problem,” the Arawak Homes chairman said. “The problem is too deep. We’ve waited too long and got to where we are too deeply.

“We need more government revenues, less government expenditure and more economic growth. We need those three things. No one source can do it.”

The Christie administration is seeking to increase government revenues by $500 million per annum by 2016-2017, with $200 million or 40 per cent of that sum coming from VAT.

The proposed new tax, the centrepiece of its fiscal reform, is expected to generate around $500 million in gross revenues, with roughly $300 million of that figure an ‘income substitution’, compensating for the drop in Customs tariffs/fees.

Noting that VAT was not going to close the Government’s $500 million ‘revenue gap’ by itself, Mr Wilson added: “Those who advocate improved controls on current collections, that’s an answer. That’s not an either/or; it is something that has to be done.”

He praised the Government’s efforts to improve the collection and enforcement of existing taxes, singling out real property tax in particular, despite the complaint from ‘current taxpayers’ about the amnesty programme being overly-generous.

Mr Wilson also ran his eye over suggested alternatives to VAT, especially the sales tax.

“As I understand it, the basic weakness of a sales tax, anyone who has been in Florida and been in so many merchant shops, they say that if you pay in cash they won’t charge you the tax,” he added.

“That tells you the problem with a sales tax: The enormous level of avoidance and evasion.”

Mr Wilson contrasted this with VAT which, by the nature of its ‘input credits’, created an audit ‘paper trail’ right the way through the supply chain that could be checked to determine whether the full amount of tax due was being paid.

Still, Mr Wilson agreed that all tax options had to be looked at for the Bahamas to make the correct decision on reform.

And he also urged the country to set aside ‘partisan politics’ in trying to combat wasteful government spending.

“I could tell you that someone was telling me, pointing out recently, the degree of waste at one government-utility corporation,” Mr Wilson told Tribune Business. “It’s mind-boggling.

“I don’t think anyone has consciously set out to do it. Someone could identify for me nine-figure money spent in one Family Island that was just waste.

“To do something about this, government expenditure, in terms of reducing waste, is something that will take a cultural change, mindset change, and is nothing to do with partisan politics.

“Politicians must shine a light on this thing, and it has to become part of the programme.”

Economic growth, fuelled by increased levels of foreign direct investment (FDI), was the third strand of Mr Wilson’s solution to a fiscal situation where the Bahamas’ debt-to-GDP ratio is steadily approaching the IMF’s 70 per cent ‘danger threshold’.

The Arawak Homes chairman praised the high level of debate over VAT as “unusual for the country”, and described it as both “wonderful” and “constructive”.

“I think the statement by the Coalition from the Chamber of Commerce and Ministry of Finance was one of the most significant developments that have taken place in governance in this country for the last several years,” Mr Wilson said.

The statement, apart from agreeing fiscal reform was needed, also established dialogue between the private sector and the Government, and “certain protocols” for information sharing.

And with alternative reform options being presented in the public domain, he added that the Ministry of Finance could now “respond intelligently” by pointing out weaknesses in these.

“The great thing is there is consensus that something needs to happen, government finances need to be reset,” Mr Wilson said.

“Doing nothing is not an option. That simple point is tremendous progress. This is the future of the country. This is why it’s so important we get this right.

“We have the Opposition prepared to work with the Government. A broad-based private sector group prepared to work with it. Surely that creates the best foundation to give us the opportunity to arrive at the best possible outcome.”

November 26, 2013

Tribune 242 

Caribbean Blog International

Cries over value-added tax (VAT)

FNM MP warns on VAT

By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com

Shadow Minister for Finance Peter Turnquest suggested on Saturday night that the country would be “jumping off the cliff” if it implements value-added tax (VAT).

Pointing to other Caribbean countries that have implemented VAT, Turnquest said the new tax regime would bring increased hardship.

He was speaking at the Free National Movement’s (FNM) rally in the Alley at the FNM Golden Isles constituency office.

“We don't want to be like Barbados,” he said. “We don't want to be like Grenada. We don't want to be like Haiti. We don't want to be like any of those countries.

“They are crying about VAT. St. Lucia is crying about VAT. We don't want to be like that. We are a prosperous nation.

“...We have a lot to protect. So let's be careful; we don't have to follow the crowd. Everyone is jumping off the cliff. That doesn't mean we have to jump off the cliff. We can chart our own territory.”

He said the government ought to focus its efforts on the collection of outstanding taxes, including an estimated $500 million in real property tax.

Turnquest also called on the government to cut subsidies to public corporations. He said the government also has other options to enhance revenue.

The government plans to implement VAT at a rate of 15 percent on July 1, 2014. The government has said the new tax will reduce the gap between revenue and expenditure and offset rising public debt.

At the start of the next fiscal year, government debt is projected to be $4.9 billion. This year, the government estimates that it will have to pay $230 million to service its debt.

VAT is expected to add an additional $200 million in revenue in the first year of implementation, officials estimate.

While acknowledging that his party had planned to give VAT “early consideration if re-elected”, Turnquest said that doesn’t necessarily mean that VAT would have been implemented under an FNM-led government.

“We would have given it widespread consideration,” he said. “I ask the government to step back and consider other options. Present the opposition with facts. We need proper analysis.”

But former Minister of State for Finance Zhivargo Laing previously said the former administration had planned to implement VAT.

Speaking to Rotarians on the implementation of VAT in August, Laing said: “We have an extraordinary opportunity not to do something modest, but to do something audacious.

“But alas, the only crippling thing that can frustrate that is our political consideration that time may run out on us before we get to the next round of votes.  I say to you, resist that temptation and encourage your leadership to resist that temptation.”

Despite earlier suggestions, Turnquest acknowledged that the opposition does not have “sufficient” information on VAT to make an official position.

“How can any responsible party declare a position on VAT without knowing the facts,” he said.

“We don’t know enough information. We have no facts, no analysis, no legislation. How can we give the government cover? That’s silly.”

However, both Turnquest and FNM Leader Dr. Hubert Minnis have already indicated that they do not support the implementation of VAT.

Earlier this month, Minnis described VAT as “regressive”.

In a two-page statement, Minnis said VAT would “seriously impair the already weak, uncompetitive and struggling Bahamian economy and harm and diminish the quality of life of every Bahamian”.

During the rally, Minnis called on the government to stop taxing the country.

Turnquest offered similar statements.

“VAT is not the answer,” he said.

November 25, 2013

thenassauguardian

Caribbean Blog International

Tamara Van Breugel on Value Added Tax (VAT) in The Bahamas

Citizens Must Unite To Be Heard In The Vat Debate

MY NAME is Tamara van Breugel and I am a citizen of the Commonwealth of the Bahamas. I am a young working mother, my family owns a small business in the city, and I strongly believe there are responsible alternatives to VAT.

 

First of all let me say that I am by no means an expert on economic theory or taxation, I am not a representative of any political persuasion, and I have no special interest ties other than a special interest in the growth and prosperity of the Bahamas and of every Bahamian man, woman and child.

 

The Nassau Institute has kindly granted me a few moments in tonight’s programme to share with you my personal thoughts on VAT, and I am extremely grateful for their kindness.

 

Over the months since the announcement of the imposition of VAT I like many of you here tonight have been following the news media, scouring the internet and attending various speaking forums to better understand this new tax proposal.

 

In my research I have learned a few important things:

 

Our nation, has over many decades and successive administrations become excessively burdened by debt. Our national debt is projected to exceed the $5 billion mark by the end of this fiscal year. This is the equivalent of 61.5 per cent of our gross domestic product and nearing a danger zone of 70 per cent debt to GDP ratio.

 

Governments have not been effective in collecting existing taxes or in safeguarding public funds from waste and mismanagement.

 

The 2010 / 2011 auditor general report illustrates some of these collection gaps, identifying:

 

• 5,980 cargo manifests that had not been presented to Bahamas Customs for clearance

 

• $95 million in real property taxes went uncollected taking the total sum outstanding to $541.886 million

 

• $302,866 of unpaid fuel from the Ministry of Works

 

In the 2014 /2015 fiscal budget subsidies have been allocated as follows:

 

• $20 million to subsidise Bahamasair

 

• $20 million in subsidise to Water and Sewerage

 

• $7 million to the Bahamas Broadcasting Corporation

 

... Ok, you get the point.

 

The Bahamas is preparing for ascension to the Wold Trade Organisation by the end of 2014. As a part of this process the Bahamas must commit to dramatically reducing import tariffs. The expectation could be for an average peak tariff of approximately 15 per cent. Down from the current average of 55 per cent.

 

To avoid the potential ill effects of a credit risk rating downgrade the government has determined that a Value Added Tax mechanism would be the best option to help our nation combat the double-edged sword of a swelling deficit and the need to reduce the revenue from tariffs.

 

And on top of that the government believes a swift implementation is required to steer us off the path of economic failure. The increased revenue goal with the implementation of Value Added Tax is $200 million.

 

And so this in a nutshell defines the events that lead to us all being in this room tonight.

 

Early on when the idea of VAT was being mentioned I did not know much about it but I did recognise that for better or worse, this tax was destined to be the most significant adaptation our modern economy has ever seen. I also started asking myself some basic questions like, what is this tax? How does it work? How will it work for us?

 

Like most, I waited and waited for the government to provide full details and education on how this tax plan would work. But as the information was slow to come I started to reach out on my own to learn more.

 

Here is what I have found.

 

Firstly, VAT is a regressive form of taxation.

 

Burden

 

This means that the economic burden will be greater on households with lower incomes. And while our customs duty system was also regressive, the VAT system does not seem to rectify this imbalance. As an offset to the regressive nature of this tax our government has provided for some VAT exemptions including breadbasket items, medical services and educational services. Offering comfort to the most needy in our society through this bare-bones survival kit of exemptions implies to me that VAT planners do anticipate a raising tide of prices that would overwhelm our poorest citizens.

 

And then from there I start to wonder... when these struggling lower income households become burdened with higher prices on their non-exempt consumption what will they do to get by? Take a second or third job? Forego access to modern amenities like electricity, running water and telecommunications? Lean more heavily on the social services network? Or perhaps fall prey to the lure of white collar and blue collar crime?

 

Next, VAT will increase our cost of living.

 

Though the exact amount of this increase seems to become more and more difficult to define as we get closer to implementation, the estimates I have heard range from 3 per cent – 30 per cent and according to a Ministry of Finance official: “On the cost of living there will be some initial impact from the VAT but that initial impact will disappear in a very short time-frame, over six, eight years. That is not long,”

 

Can we as citizens really afford a cost of living increase now? And could we endure it for six to eight years?

 

According to statistics released by the Central Bank of the Bahamas, 95 per cent of Bahamian dollar personal savings accounts have a balance of less than $10,000 and the average balance is $704. Additionally a Ministry of Finance official recently disclosed that around 70 per cent of government payroll is dedicated to salary deductions which service consumer loans.

 

By the looks of it the People of the Bahamas may be just as cash strapped as the government of the Bahamas.

 

On a personal level, as I sift through my household bills I am always left to wonder will there be enough money to get through the month? And the thought of any increase makes me scratch my head and wonder … where do they think this money is going to come from? Will it come from a decision to cut back on my child’s education? Will it come from a decision to shop only in the breadbasket aisles at the supermarket? Or will I have to start making some even tougher decisions?

 

Additionally, VAT will increase the cost of doing business.

 

If you own a business that is just getting by today how will you handle it when your prices increase and your customer volume goes down? Will you make the shift to lower quality products and services? Will you make some tough decisions about which staff to let go? Or will you start preparing your business exit strategy?

 

The other thing about doing business is that VAT will require businesses to divert a portion of their time and resources from usual business activities to take on the new and uncompensated role of tax collector.

 

Most VAT registrants will be required to install new systems and acquire the services of a professional accountant to implement and administer the tax. Additionally the filings will be required on a monthly basis and amounts will be payable at the time the invoice is issued and not when payment is received. How will businesses manage this new expense? Do you think they will absorb it into their profits? Or will they build it into the price? And beyond that, might some businesses even try to evade paying these taxes altogether?

 

These are just some of my findings from my research on VAT. It seems however, that the only sure thing that comes out of each new discovery is even more questions. Regardless of where you live, how much you earn or who you voted for don’t you also have some questions?

 

I will admit I did learn one other thing through this process. And that is that the people of Turks and Caicos were able to successfully convince their government to stall their VAT plans and implement alternative measures to get a handle on their economy.

 

Success

 

From what I can tell a few factors combined to make their effort a success. Firstly they are a UK overseas territory, which obviously does not apply to us. But what I also found out was that when ALL the people came together and spoke in a unified voice they were able to demand that their decision makers move toward alternative revenue generating and debt reducing strategies.

 

Based on this insight I believe that the VAT debate in the Bahamas has the potential to engage and unite our country like no other issue of our time.

 

In the Bahamian context, I believe that the road-map towards alternative economic strategies could include:

 

• Enactment of the Freedom of Information Act so that we can understand how our tax dollars are being managed.

 

• Full enforcement and collection of outstanding taxes

 

• Implementation of further reductions in government expenditure

 

• Develop near-term plans to relinquish under-utilised or unprofitable government assets and corporations

 

• Legislate strict conditions and limits under which future government debt could be approved

 

And if following these initiatives, additional tax revenue is still deemed necessary, I believe that a comprehensive economic impact assessment should be conducted to determine the appropriate economic and tax reform strategies our nation should implement.

 

Fellow citizens, in a time when we are being asked to forego some aspect of our quality of life to sustain our government through this fiscal crisis I believe that it is every citizen’s obligation to ask serious questions about how the financial affairs of their country are being managed and I also believe it is a citizen’s right to receive full and serious answers from its government.

 

Additionally, I believe it is only through the unity of people power that we can move this conversation with our government forward.

 

I know that there are many concerned groups forming and strategising on this issue as we speak. These groups will vary in their objectives, their access to professional advice, and financial resources.

 

However, what if we consider for a moment that the most powerful and important participant in this discourse could be THE PEOPLE?

 

At the moment, the people are in general disconnected, distracted by the daily grind and without adequate information on legislation that will impact their lives.

 

Right now the people need several things to be effective – they need to be focused, they need to be educated about VAT in plain language and they need to be given a forum to express their opinions to their decision makers.

 

To assist in this process of engaging the people on this issue, a group of young Bahamians called Citizens for a Better Bahamas aims to launch a broad based educational campaign on VAT throughout our community streets, through social media and on our webpage: www.citizensforabetterbahamas.org.

 

Our core campaign objective is to launch a petition both on-line and on the street specific to each constituency and addressed directly to each member of parliament. The petition will request each representative to vote NO to a VAT implementation of July 1 and to consider responsible alternatives.

 

We understand that this is a tall order on a tight time-line but we believe it is through activities like these that we will be able to help our decision makers know that we are all here, we are all aware and we wish to be heard.

 

You are here tonight because you are aware and you want to know more. But is your neighbour aware? Or your co-workers? Or your extended family? It will only be through a re-connection of our entire community that we will have our voices heard.

 

Citizens for a Better Bahamas is poised to become that re-connection point for our nation. But we recognise that on this issue there is a need to move quickly and we recognise that we cannot do it alone. We need YOU, EACH AND EVERY ONE OF YOU, we need your time, we need your talent, and yes we need your financial support.

 

We each have a vested interest in the outcome of the VAT debate. If we put aside our differences of background and social status and denomination and political affiliation and bind together as Citizens of the Commonwealth of the Bahamas I believe our voice will be heard and acknowledged by our decision makers.

 

It was Margaret Meade who once told us “Never believe that a few caring people can’t change the world. For, indeed, that’s all who ever have.”

 

Fellow citizens, if you believe in this simple idea I ask that you join us. Together we are better and together we can build a Better Bahamas.

 

November 17, 2013

 

What do you think? Send your comments to pnunez@tribunemedia.net or join the conversation on tribune242

A report on the administration of justice in The Bahamas ...and improving the justice system in The Bahamas

IDB Concerned With Bahamas Justice System

by Ianthia Smith
The Bahama Journal




Officials at the Inter-American Development Bank (IDB) have expressed major concerns with the administration of justice in The Bahamas, particularly as it relates to the low conviction rate and the fact that more than 300 accused murderers are out on bail.

In fact, the IDB is so concerned with the dismal statistics that the organisation has pledged to pump $250,000 into improving the justice system in The Bahamas.

In a recent report, the IDB said during the 2005 to 2009 period only 5.1 per cent of murder cases resulted in convictions, adding that within the last five years, 305 accused murderers have been released on bail.

“This situation can partly explain why The Bahamas, although superior to the regional average, has recently shown a marked decline in its values for the world governance indicator related to the rule of law,” the document added.

That figure dropped from more than 85 per cent in 2007 to just over 65 per cent in 2011.

The report went on to point out that in The Bahamas there is consensus about the limited institutional capacity of the justice system to respond to the public’s demands and added that this situation is contributing to the recent dramatic increase in incidents of violence and crimes that remain unresolved amid an increasing judicial backlog and a diminishing number of convictions.

“Today, few people doubt that sustainable development depends on the credibility of the legal system, the quality of the legal framework, the effective protection of property rights and the honesty, effectiveness and efficiency of the agencies in charge of applying the law to specific cases,” the document added.

“To properly perform its role, a justice system should also be expeditious, which means that the system effectively completes cases in a reasonable time.”

It is for that reason that the IDB has approved technical cooperation for a pilot project to support the government’s Swift Justice Programme and has committed to giving The Bahamas $250,000 and an additional $24,000 local counterpart funding, to assist with this fight.

To improve court reporting and transcript generation, which the IDB notes still consists of a transcriber, while the modern digital court reporting includes broadcast quality microphones and digital recorders, the IDB has committed $110,00 while another $77,000 will be to support the implementation of an integration justice information system with an efficient business model that will seek to strengthen cooperation, coordination and communication among the Attorney General’s Office, the police and the judiciary and $66,000 will go towards the reduction of the Supreme Court’s backlog.

But with this technical cooperation comes risks, the IDB noted that the government and judiciary may not be sufficiently coordinated, there may be difficult interaction between the different government agencies as well as delays in execution due to a lack of knowledge and experience with IDB-financed operations.

November 20, 2013

Jones Bahamas

Caribbean Blog International

The private sector in The Bahamas was challenged to present a viable alternative to Value Added Tax (VAT) ... by Prime Minister Perry Christie

Pm Challenge On Vat Alternatives

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

PRIME Minister Perry Christie yesterday challenged the private sector to present a viable alternative to Value Added Tax.

 

Responding to the concerns of businessmen worried about how VAT will affect the cost of doing business, Mr Christie pointed out that after the public rejected the option of boosting revenue by regulating web shop gaming, the government had to find some form of taxation to sustain development.

 

“We require additional revenue to be able to meet debt servicing obligations,” he said, “we need additional revenue to be able to have a resurgence in the economy, we need additional revenue for infrastructural development. The question is, when the government sought to seek the Bahamian people’s approval on the referendum, the Bahamian people indicated no.

 

“The government then brought forward what has been in play for a very long time – Value Added Tax. If there is serious objection to it, the government must listen and the government must give consideration, but the government surely would not be expected to just listen to those who oppose without having an alternative.

 

“Everyone in the country must know that to sustain our development, for there to be sensible, serious, forward looking discussion, it has to be accompanied – particularly from people who are involved in the economy – it has to come with alternatives.

 

“I would expect therefore if [businesses] are going to present me with a paper, they will be arguing to agree on a different form of taxation.”

 

Mr Christie has hinted that he might be open to postponing the VAT target implementation date of July 1, 2014, if the government is not prepared for it.

 

He said the private sector needs to realise it is on a collision “cause” with government over the need for additional revenue, and asked “what is the alternative” to VAT?

 

The Prime Minister added that he was not at all concerned over the level of angst being expressed by the business community regarding VAT and the potential problems it might cause for individual businesses.

 

“Quite frankly,” he said, “I am appreciative of all of the discussions that are taking place on VAT.

 

“At some stage I am sure the business community, (will recognise) that we are on a collision cause – c.a.u.s.e – with respect to this matter, that we need additional revenue.”

 

The government is proposing to implement VAT on July 1, 2014, at a rate of 15 per cent, with the hotel industry to be subject to a lower 10 per cent rate.

 

Mr Christie said, however, that ultimately, he will have the final say on implementation.

 

For their part, the co-chairs for the private sector’s Tax Coalition have praised indications that the Prime Minister was open to postponing VAT implementation day as “fantastic”, warning it was “paramount” that the economy be protected.

 

Pointing out that the government would not achieve its revenue-raising objectives if the economy “went to hell in a hand basket”, Robert Myers said he was interpreting the indications positively, and as a sign that the government was listening to the private sector’s concerns.

 

November 08, 2013

 

Tribune 242

 

Caribbean Blog International

 

Value Added Tax (VAT) and Tax Reform in The Bahamas

By Dennis Dames:

We, the Bahamian people must realize that we cannot continue to borrow more than we are collecting in taxes.   We should appreciate as one people that something has to give now, as it relates to getting our fiscal house in order.  Either we increase taxes, or cut spending significantly.  We do not have years left to answer that question, and to take sound and prudent fiscal action, my brothers and sisters.

So, that is why we are debating the impending institution of value added tax in The Bahamas; to help us to live by a balanced budget until further notice.  This Bahamian has already accepted the reality that we need some kind of tax reform in The Bahamas, so that the government could collect more money on our behalf, in order to contain the outrageous deficit spending – year after year.

Our National debt is projected to officially double in the seven years; from $2.4 billion in July 2007, to $4.9billion to June of 2014 – coming-up.  The fiscal deficit for the past two years is reported to be more than $500.00 million.

It is a pity that the education process on the principles of value added tax (VAT) did not begin when the Bahamian government had signed on to the various international agreements years ago, like: the Economic Partnership Agreements (EPAs) with the European Union, and the World Trade Organization (WTO).   We know it was coming nonetheless, because the Progressive Liberal Party (PLP) and the Free National Movement (FNM) made it known that value added tax (VAT) is in the pipeline.  We went through the 2012 general election - recently, and the electorate voted overwhelming for the PLP and FNM.

So, what’s the problem?  Who’s shocked, who’s surprised, who’s outraged and who didn’t know that value added tax (VAT) was on the horizon?  The FNM has reminded us recently, that if they were elected in 2012, they had plans to employ value added tax (VAT) by 2015 or in thirty-six (36) months; the PLP plans to install value added tax (VAT) by July 2014 or in twenty-two months of their 2012 general election victory.

I think like the pundit, Dr. Gilbert Morris in the Turks and Caicos Islands, when he sounded in that nation’s context, that it was not that the TCI people are against value added tax (VAT), but it was felt nationally, that more time was needed to prepare the people for the realization of value added tax (VAT).  The United Kingdom was seen to be rushing the brush and had to eventually relent, in the wake of public pressure from every political house - and cancel the Turks and Caicos Islands’ value added tax kick-off date of April 01, 2013.

Our Prime Minister has said publicly, that he is open to delaying The Bahamas’ value added tax (VAT) execution date, which is scheduled for July of 2014.  It’s a great gesture, Mr. Prime Minister.  Now it’s time for all Bahamian people to face the music of looming tax reform in our country, and let’s start dancing and debating.  Our children and the generations yet unborn, deserve to enjoy the fruits of our wisdom.

November 13, 2013

Caribbean Blog International