The danger of doing deals with governments
thenassauguardian editorial
Perry Christie’s remarks on Friday regarding the Bahamas Telecommunications Company (BTC) deal were strong. He told supporters at a conclave at the Hilton Outten Conference Center that if elected, the next Progressive Liberal Party (PLP) government would redo the deal the Free National Movement (FNM) administration is negotiating with Cable and Wireless Communications (CWC).
“If the FNM administration proceeds against the advice of the PLP and sells to Cable and Wireless, we put Cable and Wireless on notice of our central position that the sale to Cable and Wireless is not in the national interest. And when we return to government, we will re-examine all of the provisions of the deal and we will aggressively renegotiate the terms of the agreement that we deem repugnant to the national interest,” said Christie.
This statement should scare CWC.
The last definitive barometer of public opinion in The Bahamas was the Elizabeth by-election in February 2010. The PLP won it by three votes. This would suggest that at that time—considering that Elizabeth is a swing seat—the electorate was still closely divided between the two major political parties.
The PLP feels justified threatening the CWC deal. After winning the May 2007 general election, the FNM administration cancelled contracts negotiated by the PLP when it was in government, including the straw market deal.
Governments have the responsibility to act in the best interest of the people they represent. If a new administration thinks a deal on the table is against the public interest, it should seek to change it or cancel it.
However, the government also has the legal responsibility to pay businesses what is owed due to breach of contract.
No national business can compete with the state when it comes to the power game.
The state has a department of lawyers, almost unlimited money through the Public Treasury and taxation and the capacity to make your life difficult, if not miserable.
In developing countries, these problems are magnified. Politicians in these countries often have less regard for the traditions and conventions of democracy, and more power is concentrated in their hands.
CWC is in a tough position. It is in the final stage of negotiating the acquisition of a major asset. At the same time, the opposition and alternative government has put it on notice that if it is elected, the deal it is about to sign with the current administration would not be honored.
This adds more uncertainty to the $210 million investment CWC is about to make.
If the PLP comes to office and breaks the deal, CWC could sue. Bahamian courts consistently demonstrate they are independent. The Supreme Court recently ruled against the government in the Blue Hill Road and Market Street road reversal dispute.
But such a battle would be long and expensive. It could also take the focus of CWC away from getting to know its new business and customers.
CWC is in a peculiar position. The unions representing the company’s soon-to-be workers dislike it. And now the opposition is threatening CWC with new terms.
CWC is an old organization with significant experience in the region. We wonder if its board is getting concerned about The Bahamas situation.
2/1/2011
thenassauguardian 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.
Showing posts with label Free National Movement administration Bahamas. Show all posts
Showing posts with label Free National Movement administration Bahamas. Show all posts
Tuesday, February 1, 2011
Thursday, December 9, 2010
...the Free National Movement (FNM) must be careful that it does not make a rudderless and reactionary opposition Progressive Liberal Party seem attractive to voters based on its decisions
Angering electorate at election time
thenassauguardian editorial
We were surprised at a notice in the newspapers on Tuesday. The government has decided to inform the public that police, beginning on Monday, will strictly enforce the seatbelt laws enacted in March 2002.
We support the enforcement of the seatbelt laws. The laws protect drivers and passengers. They also help reduce health care costs by preventing more serious injuries.
However, the government must understand the culture it is a part of. Bahamians are not accustomed to wearing seatbelts in The Bahamas. Consequently, a more reasonable notice period is needed in order for motorists to become aware and more comfortable with the change in enforcement policy.
That notice period could have been a month to two months, including a robust public relations campaign focused on ensuring the seatbelt message is widely disseminated throughout the country.
If on Monday police start handing out $300 fines to motorists for not wearing seatbelts, the electorate will not be pleased.
Even if a member of the government mentioned that this would happen in some obscure speech, few Bahamians thus far are aware that this significant change is to take place.
The Bahamas Telecommunications Company (BTC) sale is also leading to growing unease in the country.
The government is about to sell 51 percent of BTC to the British firm Cable and Wireless Communications.
This paper has gone on record stating that Bahamian assets should be sold to Bahamians – this includes joint ventures between Bahamians and strategic partners.
Having a Bahamian owner, or a joint venture ownership structure between Bahamians and a strategic partner, would ensure more profits from the company stay in the country. Those profits that stay here would help create more jobs and prosperity in The Bahamas.
Both unions that represent workers at BTC have said they support Bahamians being owners of a privatized BTC.
Christian Council President Rev. Patrick Paul made comments yesterday that should concern the government.
“And so we stand with you this morning in agreement that (BTC) should belong to the Bahamians,” said Paul to those assembled during the union protest at BTC.
Paul assured the hundreds of BTC workers that the Christian church in The Bahamas supports their cause – that is, standing in opposition to the BTC sale to foreigners.
Earlier this year, the Free National Movement administration considered legalizing gambling for Bahamians and legal residents. The opposition, led by the church, stopped the government from making the bold move. That same church movement the government backed down from is now standing in opposition to the BTC sale.
Governing parties must pursue policies considered right for the country. They have an electoral mandate to do so. This authority, however, must be exercised in conjunction with the current moods and sentiments of the people.
When a political party pursues a policy it thinks is right, but that policy angers the people, this decision by the party usually leads it to opposition.
For its sake, the FNM must be careful that it does not make a rudderless and reactionary opposition Progressive Liberal Party seem attractive to voters based on its decisions.
12/8/2010
thenassauguardian editorial
thenassauguardian editorial
We were surprised at a notice in the newspapers on Tuesday. The government has decided to inform the public that police, beginning on Monday, will strictly enforce the seatbelt laws enacted in March 2002.
We support the enforcement of the seatbelt laws. The laws protect drivers and passengers. They also help reduce health care costs by preventing more serious injuries.
However, the government must understand the culture it is a part of. Bahamians are not accustomed to wearing seatbelts in The Bahamas. Consequently, a more reasonable notice period is needed in order for motorists to become aware and more comfortable with the change in enforcement policy.
That notice period could have been a month to two months, including a robust public relations campaign focused on ensuring the seatbelt message is widely disseminated throughout the country.
If on Monday police start handing out $300 fines to motorists for not wearing seatbelts, the electorate will not be pleased.
Even if a member of the government mentioned that this would happen in some obscure speech, few Bahamians thus far are aware that this significant change is to take place.
The Bahamas Telecommunications Company (BTC) sale is also leading to growing unease in the country.
The government is about to sell 51 percent of BTC to the British firm Cable and Wireless Communications.
This paper has gone on record stating that Bahamian assets should be sold to Bahamians – this includes joint ventures between Bahamians and strategic partners.
Having a Bahamian owner, or a joint venture ownership structure between Bahamians and a strategic partner, would ensure more profits from the company stay in the country. Those profits that stay here would help create more jobs and prosperity in The Bahamas.
Both unions that represent workers at BTC have said they support Bahamians being owners of a privatized BTC.
Christian Council President Rev. Patrick Paul made comments yesterday that should concern the government.
“And so we stand with you this morning in agreement that (BTC) should belong to the Bahamians,” said Paul to those assembled during the union protest at BTC.
Paul assured the hundreds of BTC workers that the Christian church in The Bahamas supports their cause – that is, standing in opposition to the BTC sale to foreigners.
Earlier this year, the Free National Movement administration considered legalizing gambling for Bahamians and legal residents. The opposition, led by the church, stopped the government from making the bold move. That same church movement the government backed down from is now standing in opposition to the BTC sale.
Governing parties must pursue policies considered right for the country. They have an electoral mandate to do so. This authority, however, must be exercised in conjunction with the current moods and sentiments of the people.
When a political party pursues a policy it thinks is right, but that policy angers the people, this decision by the party usually leads it to opposition.
For its sake, the FNM must be careful that it does not make a rudderless and reactionary opposition Progressive Liberal Party seem attractive to voters based on its decisions.
12/8/2010
thenassauguardian editorial
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