tribune242 editorial:
THERE ARE those in the PLP who are loath to believe that the necessity for the austerity Budget now under debate in the House of Assembly is the direct result of a world economic collapse - caused by human greed that got out of hand and, following the laws of nature, exploded.
No one heeded the Bible's advise to make certain to keep storehouses full during the seven fat years so that when the seven lean years of famine followed, a people would not perish. The world was giddy with success as the bubble continued to expand. Although there were signs that it could take no more pressure, no one -- except a handful of sceptics -- would concede that it would burst, certainly not as quickly and as dramatically as it did. And so no national leader -- Prime Minister Ingraham included -- was prepared. The Bahamas' continued success depended on the United States, which, to all appearances, was moving ahead with a fair wind in her sails.
The sudden collapse of the unregulated US banks started to bring the house down as every world bank scrambled for safe shelter.
Everyone -- Prime Minister Ingraham included -- had to decide how best to trim the nation's sails and fight to get the ship of state back on even keel.
Although the calamity was slowly creeping up on us, the final collapse came almost overnight as the world's economy started to go down like ten pins in a bowling alley.
Recently Greece crumbled and had to be bailed out by the eurozone countries and the IMF. It was hoped that a short reprieve would give her a chance to catch her financial breath. However, her people, unprepared for such dire news, took to the streets, creating even more confusion. Civil servants were striking in Spain because their salaries had been cut five per cent across the board. Note, although there is a freeze on salaries and promotions in the Bahamas' civil service, no one has lost his job. In other countries, the civil service was the first to be jettisoned.
The fight is now on to save the euro as the United States fears what a European monetary collapse could mean to its own future. No country is exempt from the shock -- except, of course, according to the PLP, Prime Minister Ingraham, whose lack of foresight is the cause of the Bahamas' calamity.
We were particularly surprised to hear St Thomas More MP Frank Smith (PLP) say in the House last week:
"Nowhere in this Budget does the Prime Minister accept any responsibility for having in anyway contributed to the mess in which the country finds itself. This Budget seeks to convince us that everything negative is due to 'global economic forces.' That lack of truth makes the Budget fundamentally dishonest. And, Mr. Speaker, if we are to accomplish any positive goals there is no greater need than for honesty from our Prime Minister."
The reason we are surprised to hear these words from Mr Smith is because his father-in-law, Franklyn Wilson, chairman of the Sunshine Group of Companies, certainly knows what an international economic downturn can mean to a single business in the Bahamas.
After much fanfare and an investment of some $35 million in construction on his company's Cotton Bay resort at Eleuthera, it was on July 22, 2008 that Mr Wilson had to admit that the whole project had been placed in a "holding pattern." The reason: It would be "unwise" at that time to build and open a Bahamas-based hotel due to the "global economic malaise."
In common with multiple other mixed-use resort projects throughout the Bahamas, said Mr Wilson, Cotton Bay had felt the full impact of the US economic downturn, in particular the financial system's credit/liquidity crunch.
This, he said, had made it almost impossible for any remaining purchasers of real estate in these developments to either obtain debt financing for their acquisition, or at the right interest rates.
No one suggested that Mr Wilson had made foolish business decisions to force the "holding pattern." Everyone accepted that it was a situation beyond his control, a situation -- like the present one -- that was off our shores. Maybe, Mr Smith should have a chat with his father-in-law to understand how we are really one big global family, which when one fails in a big way, the others suffer. However, I am told that Mr Wilson was himself heard to be almost repeating word for word what his son-in-law had said in the House. Maybe it would be a good time for him to sit down and have some quiet reflection with himself.
Of course, Mr Smith and his comrades, are blaming it all on what they call Mr Ingraham's "stop, review and cancel" policy of projects that they were dealing with -- but had not completed -- before they were voted out of office. If they had such faith in those projects then they should have seen them through. If they had not been so indecisive, and circumscribed by so many committees and so much talk, when Mr Ingraham took over the administration there would have been nothing for him to stop, review or cancel.
Mr Smith says that each and every day the PLP is preparing itself to bring a change of government. If their five years in power -- and these unfinished contracts, which Mr Ingraham wisely stopped, reviewed and in some cases cancelled -- are indicative of what this country can look forward to, then our advise is that the PLP should step aside. Their five years of poor performance has already been five years too many.
June 09, 2010
tribune242 editorial
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.