September 2nd, 2014 THE PROGRESSIVE LIBERAL PARTY LACKS FISCAL RESPONSIBILITY. Press release by: Omar S. Archer Sr. April 15th, 2013. (Reprint) The PLP came to power on May 7th, 2012 by a landslide victory at the polls winning 29 of the available 38 seats in the House of Assembly. Their victory came about primarily due to their myriad election promises, from promising to pay off mortgages, to presenting a crime platform, to strengthen a slumping economy and providing 10,000 jobs when at the time the unemployment rate was at a soaring 16%. They have done little or nothing to assist Bahamians with their mortgage payments. They the PLP promised to allocate some $150 million dollars to address this pressing issue but only allocated $10 million for persons of their choosing. The PLP has yet to unveil their ground breaking crime platform to address the vexing problem of crime that threatens to ruin this country. Instead they have engaged in community profiling of persons known to police. They promised to create 10,000 jobs, to date they have only lived up to just over 10% of their employment promise. They promised to turn around the economy with an aggressive approach to Foreign Direct Investments (FDI). We have yet to see the benefits of their widely boasted short term economic policy. Since election last year May we have heard a lot of talks from this PLP government, and constant finger pointing at the previous administration’s policies. They have wasted millions on their failed Urban Renewal 2.0 with little or no accountability of public expenditure. They continue to accuse the FNM of leaving the country in an economic bind when the reality of it is the exact opposite. Here is my case and point: In 2009 during the first full year of this devastating recession, the Bahamian economy shrunk by -4.9% . However, due to the implementation of various policies by the then FNM government we have seen a huge reversal of -4.9% negative growth in 2009 to a positive growth of 1.6% by the end of the 2011 fiscal year. That represents a turnaround of 6.5% in real GDP growth over that said period. The Bahamas was among the best performing economies within the region. This was mainly due to the $3.5 billion dollar investment of Bah-Mar, much needed infrastructural works and the modernization of the Sir Lynden Pindling Airport. The only problem the FNM was unable to firmly tackle was that of rising unemployment (16%) and inflation which stood at 3.2% at the end of 2011 largely due to external factors within the international markets. I agree under the FNM during this same period that overspending was a credible issue to address by the then opposition. The FNM over spent up to 6% of GDP for the year ending 2012. This however, was due largely to the fact that : The FNM employed thousands through their 52 week temporary work program,. They had to manage under performing revenue due to a still fragile and weak economy. Massive spending on public utilities. Various cost over runs on road works. The PLP then complained about infrastructural works which they themselves knew was mandatory if the Bahamas was to remain a destination of choice and to lure future foreign investors to our shores. Therefore, this was an acceptable expenditure. From 2008 to 2012, the Bahamas’ debt rose from 32% to 49% of national debt to GDP ratio. This lead to a lowering of our country’s credit rating by Standards and Poor, which the PLP exploited for the sole purpose of political gains. What this PLP administration has failed to mention is that as a direct result of the economic policies of the previous administration, this year the Bahamian economy is projected to experience a GDP growth of 2% to 2.5%. This in all fairness should be credited to the residual effect of the FNM’s economic policies. I find it very disturbing that the PLP has failed to mention that the government’s deficit for this year will remain around 6% of GDP this year ending June 2013. This is critical because it will bring or national debt to GDP ratio up to approximately to 54-55%. This is very significant. Why? Well let’s start by asking ourselves this simple question: Why (in an economy of a projected growth of 2.5%) is it, the government is still projected to over spend by 6% of GDP? Here is why this question is being asked: If the government has cancelled the: - 52 week temporary work program - About to implement tax structure to increase revenue - Cutting back on government run public utilities (i.e B.E.C) - Creating 5,000 to 10,000 jobs (DPM fired these persons then rehired them claiming he created thousands of jobs... yeah right). - A completed road work project - Cutting back on government scholarships and educational grants - And a temporary freeze on government hiring. With all these cut backs, then why is it they are projected to still over spend by 6% of GDP? My answer is quite simple: They think we are stupid, ignorant, ill informed individuals blinded by our political loyalty. This while they engage in blatant wastage of tens of millions of dollars in public funds. Expensive trips here, expanded government during difficult times, new fleet of government vehicles, and the list goes on and on. This is and rightfully so unacceptable. What is this PLP Christie lead administration’s economic platform and short term economic policies moving forward? This is what we the people need to know not later but right now…. Now today the PLP borrowed $1.3 billion dollars, they built no schools, no clinics, no library, not one police station, no finished low cost homes, NOTHING to show what they did with all that money. Worse, the National Debt to GDP Ratio is at dangerous level 67%. Just 3 percentage points from the 70% threshold set by IMF... The Bahamas is official l just like Bank of The Bahamas... We BROKE!!!!. This means our dollar will be devalued... Perry Christie and this worthless government is a damn fraud... tribune242/news/2014/sep/03/moodys-lowers-credit-rating/
Posted on: Thu, 04 Sep 2014 02:32:51 +0000
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