By NEIL HARTNELL <\/p>\n
Tribune Business Editor <\/p>\n
nhartnell@tribunemedia.net<\/a> <\/p>\n The social entitlement programmes promised by all the political parties are worthless unless we get our fiscal house in order, a leading governance reformer urging: Grow the economy, shrink the Government. <\/p>\n Robert Myers, a principal with the Organisation for Responsible Governance (ORG), told Tribune Business that the Bahamas needed to set targets and timeline for reducing the size of Government. <\/p>\n Calling for privatisation, semi-privatisations and public-private partnerships (PPPs) to tackle the Governments biggest loss-making entities, Mr Myers said this - rather than increased social spending - was the answer to the growing $7 billion national debt. <\/p>\n We can talk about National Health Insurance (NHI) and all these entitlement programmes; it doesnt matter, he argued. If the country goes bankrupt and does not have the money to pay for these programmes, its all mute. <\/p>\n Its a waste of time to talk about social programmes or entitlements until we get the fiscal house in order. Its laughable and irresponsible for any responsible MP or leader to suggest otherwise. <\/p>\n Unless that order happens, we will go under. Its not a question of if; its a question of when if we carry on like we are. The statistics show that. We have low GDP, and increasing crime and increasing unemployment. <\/p>\n Despite a net $756 million increase in revenues over 2015-2016 due to Value-Added Taxs (VAT) implementation, the Government has continued to run $300 million-plus annual deficits and overshoot its fiscal targets by huge nine-figure sums. <\/p>\n The Government has blamed the deficits for the current and 2015-2016 fiscal years on Hurricanes Matthew and Joaquin, which is part of the story, yet Central Bank of the Bahamas reports continue to note increased spending on NHI and the likes of the Public Parks and Beaches Authority. <\/p>\n And, despite blasting the Ingraham administration for adding $1.5 billion to the national debt between 2007-2012, the Christie government has exceeded this with $2 billion worth of red ink, despite its VAT revenue advantage. <\/p>\n The PLPs 2017 election action plan makes no mention of the fiscal deficit and national debt, and how it plans to tackle these, and Mr Myers said: Any party that does not have that as the number one issue on its agenda is not worth voting for. <\/p>\n If its not at the top of their agenda, then theyre pulling the wool over the Bahamian peoples eyes. They can talk about all these programmes they want to implement, but theyre worthless if we dont get the fiscal house in order through accountability and transparency, a Freedom of Information Act, a Fiscal Responsibility Act and a State Sectors Act. <\/p>\n The latter piece of legislation was introduced by New Zealand, a country widely seen as a fiscal reform model to emulate, in a bid to improve public sector management, governance and efficiency\/service delivery. <\/p>\n Mr Myers warned that the Governments ever-increasing hiring and expansion was only digging a deeper and deeper hole. <\/p>\n It shows a complete lack of understanding and accountability, he told Tribune Business. With all that hiring, our position is not getting any better. <\/p>\n Its absolutely reckless and irresponsible to do that. We need to get more productive without people. We have to shrink Government and grow the economy. Its growing the economy, not how you grow the Government. <\/p>\n If they [the political parties] dont get that, they have no business being in power, being in Government. Anyone that says different doesnt understand the reality of the situation. They just dont. <\/p>\n Tribune Business previously revealed how the Christie administration has increased the civil service by a net 4,500 persons since taking office in 2012, a development that explains where a sizeable chunk of VATs net $756 million revenue rise is going on an annual basis. <\/p>\n And, in recent interviews, constituents of Prime Minister Perry Christie and Jerome Fitzgerald, minister of education, science and technology, have both revealed how the two men have secured jobs for themselves and their family members within the public sector. <\/p>\n Mr Myers said the Bahamian economys anemic growth since the 2008-2009 recession, with GDP expanding by less than 1 per cent per annum, and even contracting in 2014 and 2015, was the root cause of much of the countrys problems. <\/p>\n The problem is the economy is shrinking, he told Tribune Business. Youve got to grow your economy and reduce the size of Govt, so we can be more competitive. <\/p>\n Lets shrink the size of Government over a defined period of time, and PPP, privatise or semi-privatise these things that are causing the Government massive losses, like Bank of the Bahamas, ZNS and Bahamasair. Get rid of these things and the inefficiencies in government. <\/p>\n <\/p>\n Read the original: <\/p>\n Social Entitlements 'Worthless' Without Govt Fiscal Order - Bahamas Tribune<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net<\/a> The social entitlement programmes promised by all the political parties are worthless unless we get our fiscal house in order, a leading governance reformer urging: Grow the economy, shrink the Government. Continue reading