Bishop Neil Ellis urges members of the Christian community to “stand firmly” in opposition to the Christie administration’s planned referendum on illegal gambling and a national lottery

Bishop Ellis: Christians must stand firm against legalized gambling

Royston Jones Jr.
Guardian Staff Reporter
royston@nasguard.com

Bishop Neil Ellis of Mount Tabor Full Gospel Baptist Church is urging members of the Christian community to “stand firmly” in opposition to the Christie administration’s planned referendum on illegal gambling and a national lottery, so that “there would not be blood on our hands” if it is ultimately passed.

Ellis was one of several pastors who commented on the referendum promised in the Speech from the Throne read by Governor General Sir Arthur Foulkes at the opening of Parliament on Wednesday.

In its Charter for Governance, the Progressive Liberal Party (PLP) committed to holding that referendum within its first 100 days in office.

Ellis told The Nassau Guardian that while the country might experience some financial gain as a result of regularizing gambling, Bahamian families are likely to suffer in the long run.

He said that in the past, many Bahamian families “lost everything” due to gambling.

He was referring to the Hobby Horse Hall, a horse racing venue where betting was legal decades ago.

“If we vote in favor we may benefit with the country gaining some type of revenue from it but we have people like those a while ago who lose everything and still have to come back to social services and drain the government,” said Ellis.

“You’d effectively be taking revenue in the front door and its goes out the back door. It’s going to be really important for the church community to lay its agenda clearly and concisely on the table so that if this is passed there would not be blood on our hands. But the government in its wisdom wants to bring some resolution to it and I applaud them for it.”

Bishop Reno V. Smith, pastor of Mt. Gilead Union Baptist Church in Eight Mile Rock, Grand Bahama, told The Guardian that while he was pleased the Christie administration thought it “proper and fitting” to put the issue to the Bahamian people, if the outcome was favorable, players of “games of chance” should not be permitted to be a further burden on the government.

“Should those people lose their houses, their homes, their incomes etc., I don’t think they should be allowed as gamblers to go to the Department of Social Services to be sustained by people like me and others who pay taxes,” Smith said.

“If the people decide that they wish to gamble, then that’s up to them. However, I would like to see all gamblers – players of games [of] chance – to be registered so that they would not be a further burden to the taxpayers of this country.”

The issue has been a prickly one for successive governments, as members of the Christian community have strongly objected to any hint of legalizing gambling for Bahamians.

Christian Council Treasurer Bishop Gregory Minnis of New Jerusalem Kingdom Ministries said that although he believes gambling is wrong from a biblical standpoint, he understood why so many people turned to the industry as a means of “pulling in a dollar” in light of the current state of the economy and unemployment.

“We (Christian Council) are strongly against gambling, but if the people speak and they desire for it then we as the church will have to say to our people to be mindful of how you accomplish your goals now, and how you accomplished all that you have before gambling came in,” Minnis said.

He also said that a national lottery would promote organized crime if it were not implemented properly by the government, and could further criminal activity in the country.

He added that the Christian community would be called upon to make its position “resoundingly” clear, and said he believes more people are opposed to legalizing gambling than are those who support it.

May 25, 2012

thenassauguardian

Caribbean Blog International

COMMONWEALTH OF THE BAHAMAS ... SPEECH FROM THE THRONE ... DELIVERED AT THE OPENING OF PARLIAMENT ... BY HIS EXCELLENCY SIR ARTHUR FOULKES ... GOVERNOR-GENERAL ... WEDNESDAY, 23RD MAY, 2012

Madam President and Honourable Senators,
Mr. Speaker and Members of the Honourable House of Assembly,


Today’s Opening of Parliament follows upon my Government’s election to office just sixteen days ago.

My Government has been entrusted by the Bahamian people with a clear and overwhelming mandate to effect important and far-reaching changes in our country for the benefit of all.

The challenges that confront us in The Bahamas today are as numerous as they are complex. Accordingly, my Government will present an ambitious and extensive agenda for this new Parliament. The Bahamian people expect and deserve nothing less.

Central to that agenda are two overriding imperatives -

Firstly, the need to reduce violence and crime and build a safer Bahamas.

Secondly, but in tandem with the fight against crime, is the need to build a stronger economy that generates jobs, deepens and broadens Bahamian ownership and produces a higher standard of living for all Bahamians.

Those twin imperatives will dominate the agenda for action of my new Government.

At the same time, however, my Government will also move as resolutely as fiscal realities allow to implement the full range of programmes, legislative proposals and policy initiatives promised in the platform entitled ‘Charter for Governance’.

In this regard, urgent priority will be given to the implementation of the action-plan outlined in the Charter for the first 100 days of my Government. The implementation of this ‘First 100 Days’ plan is, I am pleased to report, already in stride, as witness the implementation of two of the action-items within the very first week of my Government coming to office, namely, the creation of the Ministry for Grand Bahama and the restoration of the Ministry of Financial Services.


Madam President and Honourable Senators,

Mr. Speaker and Members of the Honourable House of Assembly,


Violence and crime corrode the very fabric of a nation. They must therefore be attacked and eradicated at the root if we are to build a secure and prosperous society. My Government is absolutely determined to pursue this objective with unbounded energy, imagination, and unwavering dedication.

My Government will immediately reinstate and expand the Urban Renewal Programme to serve as a core instrument to combat the underlying social causes of crime and violence.

My Government will establish an Urban Renewal Commission to facilitate inter-agency collaboration and coordination in the delivery of services to the community.

My Government will, as a matter of high priority, introduce a national Crime Management Agenda comprising effective prevention, detection, prosecution and rehabilitation.

My Government will move for the repeal of all provisions of the Police Act which are unconstitutional or attempt to politicize the Police Force or undermine the impartiality and security of tenure of the Commissioner and Deputy Commissioner of Police.

My Government will also create a National Intelligence Agency comprising all law enforcement departments to address all categories of major crimes on a co-ordinated basis and with a greatly improved intelligence-gathering capability.

My Government will also develop a National Firearms Control Strategy and establish a proper Firearms Department and Database.

My Government will also re-introduce the Swift Justice Initiative to ensure the timely prosecution of cases and reduce the number of persons released on bail for serious crimes.

My Government will also re-introduce, as a matter of the most urgent priority, the Witness Protection Programme so as to ensure that key witnesses and their families are protected.

My Government will also move to amend the Rehabilitation of Offenders Act to assist young and first-time offenders in embracing a life founded on the values of honesty, hard work and respect for the life and property of others.

My Government will also as a matter of high priority, reintroduce School-Based Policing to curb school violence.

My Government will also re-vitalize the Tourism-Based Policing Initiative to enhance visitor safety.

My Government re-affirms its determination to more effectively police our borders against illegal immigration, drug trafficking, human trafficking, illegal firearms, and poaching. The Royal Bahamas Defence Force will therefore be re-equipped and re-positioned to more effectively combat these menaces.

In accordance with its Charter for Governance, my Government will also hold a referendum for the Bahamian people to decide whether a national lottery should be instituted and/or whether webshop-type gaming should be decriminalized but nonetheless regulated in accordance with internationally-accepted best practices and in a way that would ensure optimal revenue-generation for the country.


Madam President and Honourable Senators,

Mr. Speaker and Members of the Honourable House of Assembly,


The plight of homeowners in financial distress must be addressed if a stronger economy is to be restored.

My Government will therefore work with the clearing banks and other institutional lenders to develop a financially sustainable mortgage relief programme aimed at assisting distressed homeowners in saving their homes from foreclosure. Participation in such a programme would be voluntary.

My Government will also seek to bring employee pension funds under closer regulation and supervision to ensure that pension funds are duly protected; and that trustees and managers of pension funds are held to higher standards of transparency and accountability; and that employees are afforded access to their pension savings for emergency purposes, including mortgage relief.

My Government, in an effort to stimulate the real estate market, will also make good on its commitment to lower the maximum rate of stamp duty on land sales from 12 per cent to 10 per cent; and will also re-introduce a maximum cap on real property tax.

My Government will also enact amendments to the Subdivisions Act to make the building and planning process more efficient and less costly.

My Government, in an effort to help reduce the cost of rental housing, will reform the Rent Control Act and will seek to promote the construction of new rental units at more affordable prices.

My Government will aggressively pursue the expansion of affordable housing especially for lower income Bahamians. My Government regards this as a social priority that requires focused and sustained attention.

My Government will also seek to provide additional land for home ownership through the purchase of vacant and abandoned lots as a part of the Urban Renewal Initiative.

My Government will create a reliable land register and a proper system of land registration.

My Government will also review and amend as necessary the laws relating to commonage land so as to allow for greater commercial use and beneficial enjoyment of land by commoners.


Madam President and Honourable Senators,

Mr. Speaker and Members of the Honourable House of Assembly,


My Government is deeply wedded to the belief that private enterprise should remain the primary engine of job creation and entrepreneurial opportunity in our country, and that tourism and financial services, supported by industrial expansion, fisheries and agricultural production, should be the chief areas of economic activity in our country. In this regard, my Government is committed to the formulation and execution of policies that will encourage private investment in these areas while maximizing job creation and career development for Bahamians in the shortest possible time.

As small and medium-size enterprises are the job- creation engines of today’s economy to an ever-increasing extent, my Government will re-focus the mandate of the Bahamas Development Bank and the Bahamas Agricultural and Industrial Corporation (BAIC) to provide equity, credit guarantees and marketing and accounting support for fledgling businesses.

The necessary enabling legislation will be introduced by my Government as a matter of priority.

My Government will also implement a number of initiatives, including the grant of special concessions, to promote the economic development of Grand Bahama, and to facilitate the extension of the same benefits that are available under the Hawksbill Creek Agreement to east and west Grand Bahama.

In order to revitalize our critical tourism industry, my Government will seek to increase the number of available and affordable rooms. Promotional efforts will explore opportunities for tourism growth in niche markets inclusive of film, entertainment, sports, health and religious tourism, as well as medical, heritage and eco-tourism.

The cultivation of new markets in Asia and Latin America will also form a key part of the national tourism promotion plan.

My Government will give focused attention to the refurbishment and re-development of downtown Nassau to make it a pedestrian and shopper friendly city while retaining and enhancing its historical appearance.

My Government will work in collaboration with local and foreign air carriers to improve airlift to and throughout the Islands of The Bahamas.

My Government will also create opportunities for Bahamians to own hotels through a National Resort Development Initiative.

Recognizing that agriculture is an integral part of any sustainable economic development plan, my Government will give focus to increasing food production as a vehicle to promote food security, create jobs and boost domestic investment.

My Government will initiate plans to construct a Bahamian Food Sciences Institute in North Andros with a view to incorporating it into the University of The Bahamas.

My Government will also aggressively pursue the development of a mariculture industry in The Bahamas and the further diversification of a fisheries industry which is reserved for Bahamians.


Madam President and Honourable Senators,

Mr. Speaker and Members of the Honourable House of Assembly,


My Government believes that education is the principal vehicle for promoting the economic development of individuals and the nation as a whole in the overarching framework of a rapidly evolving 21st century global economy. Education is the key to both personal and national empowerment.

Conscious of that truism, my Government will seek to reform our educational system to bring it more technologically in tune with 21st century challenges and to better position Bahamians to compete for jobs both locally and on a global level.

My Government will review and strengthen the National Literacy and Numeracy plans both of which are critical to educational achievement and economic advancement.

My Government will also introduce a standardized National High School Diploma programme to ensure that graduating students meet stipulated minimum levels of proficiency.

My Government will also develop a national regulatory framework to establish, at the secondary school level, a system of Career Path Academies.

Legislation will also be placed before you to establish the University of The Bahamas.

Regulations will also be developed to establish and oversee new standards for Preschool and Early Childhood Education.

My Government recognizes the important role played by the Bahamas Technical and Vocational Institute (BTVI) in training and re-training Bahamian workers. Accordingly, the Council for BTVI will be appointed with a view to bringing the BTVI Act fully into operation as rapidly as possible.

My Government will also seek to provide enriching experiences for our youth through innovative programmes that promote cultural and self awareness, community service, social skills training, mentorship, knowledge of civics, and exposure to principles of leadership and responsible citizenship.

“Centres of Excellence” for sports will also be established within Family Island communities to help identify and develop sports talent.

My Government will also promote cultural expression in the visual, performing and literary arts; expand cultural education programmes; and enhance stakeholder participation in the development of our cultural heritage.

My Government will move swiftly to end all forms of discrimination, especially against persons with disabilities. In keeping with this commitment, legislation will be enacted. The United Nations Convention on the Rights of Persons with Disabilities will also be signed and ratified.

My Government will bring about the full implementation of the Child Protection Act, 2007.

In an effort to reduce poverty, promote human capital development and improve the effectiveness and efficiency of social assistance programmes, my Government will move speedily to undertake Social Safety Net Reform.

In the area of health care, my Government is firmly committed to the principle of universal access to health care, decentralized health-delivery systems; and a re-engineering of systems for financing the delivery of health care so that it can be more affordable.

My Government will also take steps to advance our nation’s preparations for the introduction of National Health Insurance in a financially sustainable way. My Government’s commitment to National Health Insurance remains undiminished.

My Government will facilitate the Public Hospitals Authority’s acquisition of new cancer-screening technology to ensure that Bahamian women have access to state-of-the-art mammogram machines at both the Princess Margaret Hospital in New Providence and the Rand Memorial Hospital in Grand Bahama.


Madam President and Honourable Senators,

Mr. Speaker and Members of the Honourable House of Assembly,


My Government will seek to amend the Local Government Act to better define the parameters for the employment of persons providing service to Local Government Councils.

In the area of air transport which is so vital to our archipelagic nation, my Government will overhaul the existing air sector policy to create a safer and more efficient air transport system. This will include the creation of a modern civil aviation regulatory regime, the creation of a fully independent body to investigate air accidents, enhanced communications technology and upgraded radar equipment.

Additionally, steps will be taken to address the management of the Bahamas Flight Information Region (FIR), which will permit access to overflight fees on The Bahamas’ upper airspace.

In relation to maritime transport which is no less vital to our national interests, my Government will procure the implementation of maritime safety standards, protocols and inspection regimes on all national ships and personnel, and the adoption of the Caribbean Ship Safety Code and Small Vessel Code.

To encourage environmental sustainability in Freeport, Grand Bahama the Freeport Bye-Laws Act, 1965 will be amended to impose mandatory standards for environmental management.

My Government will develop a national water policy in conjunction with all stakeholders and will ensure the proper extraction of ground and potable water so that all Bahamian communities will in the shortest possible time have access to piped potable water.

My Government will initiate a plan to lower the cost of electricity throughout The Bahamas through the development of alternative energy production and improved efficiency at BEC in the areas of administration, power production and equipment maintenance.

My Government will review the Regulations established by the Utilities Regulation and Competition Authority (URCA) to ensure that they conform to the Constitution and reflect Bahamian values in the context of responsible freedom of expression in a democratic society.

My Government will finalize its longstanding Foreign Service Orders for the enhancement and strengthening of a professional Foreign Service.


Madam President and Honourable Senators,

Mr. Speaker and Members of the Honourable House of Assembly,


There is an emerging national consensus that the Bahamian tax system is simply inadequate to meet the needs of a modern 21st century society. My Government will therefore launch an extensive review of the Bahamian tax system with a view to proposing alternative means of taxation that address the problems of the current system while providing the Government with a stable, buoyant and adequate source of revenue to meet its governance obligations to the Bahamian people.

My Government will introduce legislation to establish a council of economic advisors. The role of the council will be to develop policy recommendations for Government on the major issues pertaining to economic growth and stability, including tax reform.


Madam President and Honourable Senators,

Mr. Speaker and Members of the Honourable House of Assembly,


There will also be laid before you legislation to prevent the entering into of government contracts, including contracts of employment, or the payment of public monies in connection therewith, between the date of dissolution of Parliament and the date of a General Election unless such contracts or such payments are pre-determined by an independent statutory body to be absolutely critical for the maintenance of essential services.


Madam President and Honourable Senators,

Mr. Speaker and Members of the Honourable House of Assembly,


As my Government now sets about the urgent tasks that I have just outlined it shall be forever mindful that in all things God must come first and that without Him at the centre of our efforts we labour in vain.

My Government shall also remain mindful of the need for complete integrity in the stewardship of the people’s affairs. Its commitment in this regard is absolute and will remain so.

Finally, my Government believes in Bahamians and in the capacity and determination of the Bahamian people to overcome all the many challenges that lie before us. Armed with a common purpose and united in patriotism and love for one another, we shall indeed overcome, and achieve for our nation the greatness that is its destiny.

I pray that the blessings of Almighty God may rest upon your counsels.

bahamas.gov.bs

 

Caribbean Blog International

The proposed government mortgage relief program is now a very important national issue ...and it is imperative that we devise a national solution which is reasoned and considered... ...As corporate citizens, we at Circle Vision Financial Planning (CFAL) are simply interested in good economic policies ...which will further enhance the well-being of all citizens and permanent residents of The Bahamas

Economic View CFAL’s recommendations to the government on the mortgage relief program

CFAL Economic View

We have read with interest varying responses to leading international credit agency Moody’s warning to The Bahamas government on its proposed mortgage relief program.

Readers would recall in this column on April 3, 2012, we at CFAL expressed our concern with the then Progressive Liberal Party (PLP) proposal, as we had difficulty understanding the feasibility of the plan.  While we agreed with several of the recommendations, we also strongly disagreed with others.  This is what makes a market.  It is now the government’s program.

We wrote that “the center of the 2008 global crisis was the mortgage debacle, where the U.S. government through its government funded mortgage agencies provided funding for residential mortgages that in most cases the citizenry was not able to afford.  The end results, foreclosures and a depressed housing market, now headed into its fifth year.  As we all know, in the absence of a holistic economic plan, we continue to be dependent on the success or lack thereof of the U.S. economy.  The Bahamas is now experiencing what the U.S. experienced back in 2008 in the mortgage market as a result of lenient lending practices.  To fix the core of this problem, we need policies that are realistic, achievable, and measurable.”

We went on to say that: “While the idea of providing relief for persons having a difficult time in meeting their mortgage obligations is arguably a good one and one which we support, we have serious questions on some of the specifics outlined in the proposal as reported in The Guardian”.

We also noted that: “In a democracy it is not prudent for the government to mandate any financial institution to do anything; it is the shareholders, directors and management which decides on what course of action should be taken.  Governments and financial services regulators (Central Banks) sometimes resort to ‘moral suasion’ in a credit crisis in order to try and persuade financial institutions to provide relief to mortgage payers.  Alternatively, monetary policy initiatives by the Central Bank in the form of interest rate reductions are applied to solve the issue of mortgage delinquency.  That course of action, particularly with respect to our current predicament, is likely to be ineffective at best.  To date, we do not see the expected positive results.  We can point, however, to the long-term consequences.  It is our view that a holistic plan is needed.  A plan that examines the impact on all stakeholders to avoid unintended consequences.”

The burden

Since Moody’s comments, we read and heard on talk shows where many are recommending that the government simply cut interest rates.  They further state that all should bear the burden.  Well, why should all bear the cost?  “All” did not participate while many were not being prudent.

None of the economic and financial pundits speak to the cost and consequence of the reduction in interest rates.  Perhaps they do not know or choose to be intellectually dishonest in recognizing that it represents a transfer from savers to borrowers.

The recent cut in interest rates had serious consequences for many, including pensioners, National Insurance, insurance companies, the various government and private sector defined benefit pension plan schemes, savers and the Bahamian dollar.  In the United States and Europe, such a policy of artificially low interest rates is increasingly being referred to as “financial repression”.

These pundits continue to refer to the government savings on interest payments of about $25 million per year, but ignore the long-term increase to government debt and the cost associated with it.  We estimate a long-term increase in debt obligations of over $500 million.  The cost of government funding this deficit will outweigh the immediate savings.

As we have written numerous times in this column, “What the Bahamian people need are jobs”.  It’s the only way for us to manage the current and anticipated debt levels save for a significant increase in taxes which the government has indicated it does not intend to do in the short-term.

We believe the government will have to take a hard look at our taxation system as we have indicated on many occasions.  Merely dropping interest rates or guaranteeing interest payments will not cause lenders to extend credit especially since the creditworthiness of many borrowers was and still is slipping.  In the case of new or revised loans at the lower rate, the average monthly benefit will not make much of a difference to the borrower, particularly since it is the principal balance that is often too much for the borrower to bear.

In implementing a relief plan which we support, we urge our government to be mindful of the unintended consequences which can change mortgage funding in the future.  Will financial institutions continue to offer 30-year mortgages or refinancing programs if, for whatever reason, they cannot access collaterals after 15 or 20 years?  It’s not an easy decision.  We must tread carefully.

Solutions

We recommend the new government consider establishing a Long-Term Mortgage Relief Program (LTMRP), whereby a special purpose vehicle (SPV) is created for the expressed purpose of acquiring the distressed mortgages from financial institutions and issuing long-term bonds to fund the acquisition of the same.  A similar structure was used in the United States in the early 1990s to resolve the distressed mortgage and property assets of their Savings & Loan crisis.

We would recommend the government consider the following:

• Articulate clear guidelines on who would qualify for the mortgage relief program

• Relief on residential mortgages only up to a maximum of $500,000

• Purchase loans at a discount (i.e., 20-30 percent) from financial institutions with specific caveats

• Mortgage tenure up to 40 years

• Interest rates on restructured mortgages up to 5.50 percent (as indicated in plan)

• Cap interest spread on bonds issued to purchase the mortgages

• Annual audit by an independent accounting firm.

This would accomplish several things:

• Provide transparency to all

• The government doesn’t interfere in private contracts

• The government can restructure the loans with tenure up to 40-50 years with specific caveats.

The government should then issue fixed rate long-term bonds to fund the SPV.  This will lock in funding costs.  Natural buyers of these bonds will be pensioners, NIB, insurance companies and pension plans.

The government commitment will be defined with supporting assets (the mortgages) with monthly cash-flow which should be net positive for Moody’s and other rating agencies.  An example, if the government issued $75 million in bonds to purchase mortgages at a discount of 20 percent, the proposed interest of 5.50 percent would give the government some .50 basis points to service the mortgages, while having assets worth some $93.75 million.  The net cash cost to government would be a maximum of under $500,000 and the guarantee to support the loans.

Banks and other institutions would have stronger balance sheets, which would encourage them to increase lending to companies to create more jobs and opportunities.

This will reduce any semblance of moral hazard such as dictating the number of payments after which a lending institution will be unable to exercise its foreclosure provisions against a borrower.  What we don’t want is where financial institutions refrain from refinancing activities for fear of potential loss.

The program can be administered by the Bank of The Bahamas for a negotiated maximum cost, a 51 percent government entity to ensure its efficacy.

Reasoned response needed

We would strongly discourage the government from getting in the business of paying its citizens’ mortgage interest payments for any number of reasons, inclusive of moral hazard, perception of special favors to the disadvantage of others, increased debt and the potential to devalue our dollar, all of which can seriously cripple our economy.

We reiterate our comments that given the current economic climate as well as the projected growth trajectory, it is highly unlikely that The Bahamas could afford this expenditure except if we are able to grow the economy (provide more jobs) on the order of 10 percent per annum.

The proposed government mortgage relief program is now a very important national issue and it is imperative that we devise a national solution which is reasoned and considered.  As corporate citizens, we at CFAL are simply interested in good economic policies which will further enhance the well-being of all citizens and permanent residents of The Bahamas.

What we do not wish to see is capital being inadvertently driven away because of some ill-advised economic policy.  Whatever we think of the rating agencies, including Moody’s, their comments can cause our cost of capital to increase substantially in the future.

We should not dismiss their claims, but embrace them and articulate in a coherent manner the details of the proposed solution and chart a course in the best interest of The Bahamas, realizing that The Bahamas lives in a global environment.

• CFAL is a sister company of The Nassau Guardian under the AF Holdings Ltd. umbrella.  CFAL provides investment management, research, brokerage and pension services.  For comments, please contact CFAL at: column@cfal.com

May 23, 2012

thenassauguardian

Caribbean Blog International

The Bahamas Chamber of Commerce and Employers Confederation (BCCEC) support permitting oil exploration in Bahamian waters ...once regulatory safeguards were in place... ...potential earnings could "eliminate The Bahamas' National Debt in five years"

Chamber Backs Oil Exploration

By NEIL HARTNELL

#Tribune Business Editor

THE Bahamas Chamber of Commerce and Employers Confederation (BCCEC) yesterday backed permitting oil exploration in this nation's waters once regulatory safeguards were in place, telling Tribune Business potential earnings could "eliminate the National Debt in five years".

I Chester Cooper, the BCCEC's chairman, effectively told this newspaper that the Bahamas - and its economy - could not afford the 'opportunity cost' of passing up the financial benefits if commercial quantities of oil were found within this country's territorial boundaries.

Projecting that revenues worth a conservative $1 billion per year could be generated if the Bahamas Petroleum Company (BPC) and its joint venture partners were to discover oil deposits that could be extracted, Mr Cooper said the sector had the potential to "transform the economy" - both directly and through spin-off commercial activities.

Calling for a "non-partisan" debate on oil exploration in the Bahamas, the BCCEC chairman acknowledged that a comprehensive environmental, health and safety regime was required to protect this nation's environment and tourism industry.

Urging the Government to "get on with it" when it came to developing such a regulatory regime, Mr Cooper pointed out that the energy and tourism industries already co-existed in the Caribbean, in the shape of Trinidad & Tobago and Barbados. Cuba, also a tourism-dependent destination, has begun to drill in waters near its territorial boundaries with the Bahamas.

Emphasising that the BCCEC's support depended on the necessary safeguards being in place, Mr Cooper suggested it was time to lift the debate on oil exploration, and BPC's activities, to a higher level and away from being a 'political football'.

"Now that the political season is over, it is a good time to have a comprehensive, non-partisan debate on the issue," he said.

"We support the continued exploration of oil and, if successful, the eventual development of a safe and well-regulated industry. We urge the Government to quickly put the proper regulations in place for the orderly development of this industry."

Oil exploration was first seized on by the Democratic National Alliance (DNA) as an issue that it could exploit for political mileage in the general election run-up. Then former Prime Minister Hubert Ingraham attempted to use it, and BPC, to portray the Progressive Liberal Party (PLP) as 'conflicted' and unlikely to act in the nation's best interest, given that Davis & Co (now Deputy Prime Minister Philip Davis's law firm) and former PLP attorney general, Sean McWeeney, were named as the company's legal advisers.

There were then suggestions that Prime Minister Perry Christie had acted as consultant to BPC while in Opposition. Eventually, the PLP pledged to hold a referendum on whether oil drilling and exploration should be permitted in Bahamian waters, while Mr Ingraham backtracked from an earlier position that the FNM would not permit the industry if re-elected.

Ultimately, the former Ingraham administration returned to its already-stated position that oil drilling would not be permitted, and no new licences issued, until an appropriate regulatory regime has been implemented. Government officials have already visited the likes of Norway and the UK to examine those countries' regimes, and what the Bahamas can learn from and bring here.

Nevertheless, just prior to the general election, the Government decided not to renew the five BPC licences that expired on April 26, 2012, and returned the company's $300,000 fee payments to it. This leaves the ball very much in the newly-elected Christie administration's court.

BCCEC chairman Mr Cooper, meanwhile, indicated that the tremendous economic benefits - if oil was discovered in sufficient quantities in Bahamian waters - meant this nation, with its limited natural resources, narrow economic base and troubled government finances, could not afford to spurn this opportunity.

"The likely revenues can eliminate the National Debt in five years and contribute significantly to education, healthcare and development of infrastructure across the country and, importantly, an expansion in GDP leading to more favourable economic metrics," Mr Cooper said.

He added that the revenue generated from oil exploration could be used to reduce import tariffs on oil imports, reducing energy and gasoline costs. This, in turn, would lower the cost of living and doing business in the Bahamas, and make this nation much more competitive in attracting foreign direct investment (FDI).

"We cannot afford to be dismissive of these realities," Mr Cooper said, acknowledging that a proper regulatory regime - and its enforcement - were "a must" to preserve the environment and tourism industry.

Noting the example set by other Caribbean nations, he added: "It doesn't have to be one or the other - both can co-exist. It is being done in the region, in Barbados and Trinidad & Tobago.

"Clearly, the risks can be managed. We further understand that the Cubans are drilling right across the Bahamas' border. So we need not re-invent the wheel with respect to the regulations. We can draw on our friends in the international community with tried and tested regulations, like the US, UK, Trinidad and the Clean Caribbean Initiative."

Calling on the Government to "get on with it" when it came to developing a regulatory regime, because the opportunity cost of not doing so was too great, Mr Cooper said the Bahamas had to ensure its people were either trained abroad - or qualified Bahamians enticed back home - to participate in the oil exploration sector.

The BCCEC's energy and environment committee, he added, felt there was too much misinformation circulating on oil exploration, and called on the Government and BPC to better educate the public. The BCCEC is also planning to start discussions by hosting a luncheon on the topic shortly.

May 18, 2012

tribune242

Caribbean Blog International

The children of Bahamian independence need to stand and prove that they too possess the skills to govern The Bahamas in the 21st century and beyond... ...We know that the prime ministers past and present can do it, but where is our future? ...It lies in the hands of those born during the autonomous era in the Islands

Democracy, independence and complacency

thenassauguardian editorial

The images and news stories of the Arab Spring that have dominated the international news media for more than a year are a telling story on the importance of the basic concept of democracy, a concept that is spoken about often, but a concept often not fully appreciated. The benefits that are gained from a properly functioning democracy are too often taken for granted.

The beauty of a democracy is that we, the people, get to elect the leaders of our own choosing through a formal process of narrowing down the candidates and casting a vote.

Another key aspect of that electoral process is that there is a time frame in which those elections must come around again.  If we the people are not happy with our leaders, we have the opportunity to elect a new leader, thus holding our leaders to a certain degree of accountability.

The equation is not complicated: Please the people or get voted out of office. The common demands from the people are basic: Provide security (from outside forces and crime at home), infrastructure, jobs and a growing economy.  In other words, provide results.

A true democracy also has a time frame in which there is change.  In The Bahamas, the government must have an election every five years.  In the United States, it is every two years (for House representatives and senators) and four years for the president.  The ability to call for change on a consistent basis allows for stability.

In Egypt, there was no democracy.  Former President Hosni Mubarak was in power for 29 years.  The people fought to depose him.

We must accept that rallies and protests are part of many democracies.  The rallies against the Vietnam War in the United States or those here in The Bahamas against the Bahamas Telecommunications Company (BTC) sale are examples.  But these generally don’t call for ousting a leader, just a change in the policy position currently held by the government in power.

But one aspect of a consistent election process that we do not follow is that of term limits.

Sir Lynden Pindling was in power from 1967 to 1992 (25 years).  Hubert Ingraham was in power from 1992 to 2002 and 2007 to 2012 (15 years).  The interim period was held by Prime Minister Perry Christie (five years), who is prime minister again.

Over 44 years we have had three leaders.  The United States over a similar period has had eight leaders, almost triple that of The Bahamas.  The United Kingdom has had 12 leaders, quadruple that of The Bahamas.

The Bahamas has benefited enormously from the perseverance of these leaders for equality, prosperity and peace.  The people of The Bahamas enjoy one of the highest per capita incomes in the region and access to clean water, power and communication.  We have so much to be thankful for.

But it is inevitable that change is upon us.  In the coming years it will be time for a new generation to take governing responsibility for The Bahamas.  We must take heed of the lessons provided by our leaders and understand that independence was won with heart and vigor, not to be forgotten.

We have become complacent in our positions and surroundings, a comfort that shields us from the change happening around us.  To be constantly challenged by our peers and countrymen sets forth a standard that cannot be undermined.

The children of independence need to stand and prove that they too possess the skills to govern a country in the 21st century.  We know that the prime ministers past and present can do it, but where is our future?  It lies in the hands of those born during the  independence era.

May 19, 2012

thenassauguardian editorial

Caribbean Blog International

...many individuals continue to weigh in on the possible causes of the Free National Movement’s (FNM) defeat... the victory of Perry G. Christie and the Progressive Liberal Party (PLP)... and the Democratic National Alliance’s (DNA) impact on the 2012 general election

Why the FNM lost and the PLP won

By Arinthia S. Komolafe

Although the general election is over, arguably the election season is yet to come to a close.  There is at least one imminent by-election in North Abaco following the announcement by former Prime Minister Hubert A. Ingraham that he will resign from this seat on July 19, 2012.  Meanwhile many individuals continue to weigh in on the possible causes of the Free National Movement’s (FNM) defeat, the victory of Perry G. Christie and the Progressive Liberal Party (PLP) and the Democratic National Alliance’s (DNA) impact.

It is apparent that a number of factors contributed to the FNM’s loss even though it is difficult to unequivocally state which particular issue impacted the voting population the most.  The most obvious contributors to the aforementioned defeat from a macro-economic perspective were the poor state of the economy, record unemployment levels, inflation, labor unrest, the perceived opaque immigration policy of the FNM government and rising crime levels.

It has been suggested that the FNM’s insistence on turning the entire election campaign into a leadership and/or personality contest between Ingraham and Christie played a significant role in the downfall of the FNM.  This coupled with what many deemed to be a growing tyrannical and dictatorial style of leadership by Ingraham is also being cited as part of the reasons for the FNM’s loss and the PLP’s landslide victory.  As can be expected, a rejection of Ingraham by the electorate would spell doom for the FNM.  The perceived incidents of fragmentation, scandals and corruption within the Ingraham administration that prompted voluntary or involuntary resignations of long-time politicians along with constituency reassignments also played a role in the outcome of the elections.

The Ingraham administration also had its fair share of controversy including the sale of the Bahamas Telecommunication Company (BTC) to a foreign-owned firm over and above Bahamians, significant cost overruns and delays in the New Providence Road Improvement Project that also contributed to the closure of several small to medium-sized businesses and the perpetuation of a monopoly of the nation’s most important gateway by way of a public-private partnership agreement to an elite group of families through the Arawak Port Development.

Notably, the FNM could also be accused of political tokenism – an exercise in which under-represented groups are placed in races that they have little or no chance of winning.  Arguably this occurred with some FNM newcomers and female candidates who were placed in historically PLP strongholds or incumbent constituencies.  The constituencies of Englerston, Bains Town and Grants Town, Centreville, Golden Gates, Tall Pines, Fox Hill and West Grand Bahama and Bimini readily come to mind.  These constituencies, for the most part, witnessed PLP candidates commanding the majority of the votes by a minimum margin of 645 to a maximum of approximately 1,390 votes.  As admitted by the FNM’s chairman, the party failed to attract the female vote – this in spite of the FNM’s impressive fielding of nine female candidates.  The PLP, however, fielded five female candidates, four of which were successful compared to one for the FNM.

Rejection

In the midst of it all, it appears that the electorate rejected the FNM’s approach to the myriad socio-economic issues that plagued the country during its term in office.  Further, on the campaign trail, the FNM’s message focused mainly on its delivery of infrastructure projects.  The FNM, however, failed to “touch the pulse” of the people who for the most part were suffering due to unemployment, the rising cost of energy, food prices, foreclosures and high taxes just to name a few.

Ingraham’s strategy of painting Christie as weak, indecisive, unable to control his ministers who were all eager to get their hands on the proverbial “cookie jar” was obviously ineffective and failed to resonate with an electorate that had become weary of that old form of “politicking”.

An analysis of the PLP’s modus operandi and efforts during the 2012 election campaign is imperative in order to complete this piece.  The former prime minister, the late Sir Lynden O. Pindling, in response to a question as to the reason for the PLP’s success at the polls was quoted in The National Observer’s January 14, 1967 edition as stating: “Organization, good candidates, red-hot issues, complete unity”.

The aforementioned quote can easily sum up the PLP’s 2012 election campaign.  It was clear from the beginning that the PLP led an organized campaign by campaigning on the issues that affected the Bahamian people the most – crime, economic recovery and job creation.  These were obvious issues in the wake of increased criminal activities, widespread economic hardship and joblessness.  Further, the PLP introduced what it coined as “a new generation of leaders” who in the run-up to the general election (when compared to their FNM counterparts) spent months to years on the ground in their respective constituencies, made many platform appearances at constituency office openings, rallies and the talk show circuit.  These provided them with opportunities for increased exposure and introduction to the electorate.

Finally, the success of any political party at the polls hinges on the ability of its members to be unified and stand together.  During the election campaign, the PLP spoke with one voice and had a common understanding which allowed for the resonance of its message.

As for the impact of the DNA, there are some 20 parliamentary seats that could have changed the results for the PLP or FNM but for the DNA’s presence.  However, the absence of the DNA may have also resulted in low voter turn-out in a general election that witnessed high voter registration with a record 172,000 voters.

The DNA’s showing was historic and impressive as it garnered approximately eight percent of the electoral vote, the highest by far for a third party.  The party’s presence deepened our democracy, provided voters with an alternative and forced the established parties to improve their political campaigns. Their future existence and relevance will depend on their commitment to “stay on the ground” and be a formidable opposition from the side-lines.

Considering the 14-year rise to power of the PLP and the 20-year journey of the FNM, it will benefit the DNA to study these parties’ voyages.  Invaluable lessons abound for the DNA in the successes and failures of the PLP and FNM in the past.  The DNA and its supporters should draw inspiration from the rise of the Liberal Democrats in the United Kingdom whose ascension in UK politics led to the Conservative/Liberal Democrats coalition in 2010, the first in Britain’s history since World War II.  The Liberal Democrats’ victory silenced naysayers that had asserted that third parties have no place in a Westminster system.  With a clear philosophy, purpose and perseverance, the DNA can hope for a similar testimony in future.

• Arinthia S. Komolafe is an attorney-at-law.  Comments can be directed at: commentary@komolafelaw.com

May 17, 2012

thenassauguardian

Caribbean Blog International

The Moody's credit rating agency warned that the Progressive Liberal Party’s election-promised mortgage plans created a “moral hazard” that “could increase Bahamian mortgage delinquencies ...and cost the Bahamas Government a sum equivalent to 3.1 per cent of GDP ...spread over five years,”...

A Reckless Promise That Might Founder

tribune242 editorial


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TUESDAY’S first cabinet meeting of the newly-elected PLP government, marked Day One of its first 100 days of governing, Prime Minister Perry Christie announced. Day One was also marked with a warning salvo from Moody’s Investment Services, one of three major credit rating agencies.

One could say that the new government entered its second term with a bang, but the bang did not bring good news. The credit agency warned that the PLP’s election-promised mortgage plans created a “moral hazard” that “could increase Bahamian mortgage delinquencies and cost the Government a sum equivalent to 3.1 per cent of GDP spread over five years,” Tribune Business reported. Moody’s saw the move as demonstrating a “lack of commitment” on the part of the new administration to tackle annual fiscal deficits running at over 4 per cent of gross domestic product.

Moody’s described the election-promised mortgage relief plan as “a credit negative,” implying that its implementation could lead to a further downgrade rating. Something, said Moody’s, that could scare away foreign investors and increase the Bahamas’ borrowing debt servicing costs in the international capital markets. It was pointed out that with economic growth and recovery a top priority, the last thing the Bahamas needed was to send the wrong message that would deter foreign direct investment, Tribune Business reported.

It was also the last thing the PLP government would want to deal with considering the hoop-la it raised last year when Moody’s downgraded the country from “stable” to “negative” due to the mounting debt accrued over the past decade. Earlier that year — in May — Standard & Poor affirmed its BBB+ rating for the Bahamas. Up to that time, the Bahamas maintained an A3 government bond rating.

The PLP were scathing in its remarks condemning the downgrade. It said the Moody downgrade “confirms government’s mismanagement”.

Of course, they were referring to the FNM government, which, in turn, explained that the recent global economic and financial crisis necessitated the “extraordinary levels of spending” despite a “precipitous” decline in revenue.

It explained that funds were needed to “safeguard the financial system, boost economic activity and provide assistance to Bahamians badly in need of help in these trying times”. The PLP would have none of it. Now faced with the same problem, its desperation appears to be tempting it to commit political suicide.

Despite being aware of the critical financial situation, on the campaign trail Mr Christie promised the impossible to voters. Now that the time has come to deliver, he is going to find it difficult to explain that he might not be able to keep his commitment.

In a 10-point plan of delivery, he promised Bahamians who had defaulted on their mortgages and had lost their homes to banks, that he would — among other things — get banks to agree to write off 100 per cent of unpaid interest and fees for all those facing foreclosure.

In Mr Christie’s opinion, “this should be acceptable to the banks as they would already have made provisions against these losses”.

“Therefore, writing off the unpaid interest and fees would have no immediate financial impact on the banks,” he said.

“As for the delinquent borrowers, they would benefit from the fact that their outstanding balances would fall substantially.”

Rather than the Christie plan being acceptable to bank managers, the very thought sent shivers down their spines. They knew that this would be a signal for Bahamians to stop their mortgage payments in the knowledge that not only would rates be lowered, but their debt would eventually be written off by government.

According to Moody’s, there is some $3.2 billion worth of outstanding mortgage loans in the Bahamas’ banking system, which is equivalent to 39.6 per cent of GDP.

The situation is so delicate that today bankers are unwilling to speak to the press about the problem.

However, one banker told Tribune Business that as a result of the new government’s promises, “banks are already seeing a deterioration in arrears for mortgages under 90 days past due”.

“Those under 90 days past due have increased since the PLP announced its scheme. We were alarmed at the trend,” said the banker.

We all feel sorry for any family who has lost their home, but in trying to rescue them, the PLP government cannot torpedo the whole Bahamas.

They have to stop and think again.

May 17, 2012


tribune242 editorial

Caribbean Blog International