Wednesday, September 26, 2012
By DANA SMITH
Tribune Staff Reporter
dsmith@tribunemedia.net
FNM Senator Zhivargo Laing has criticised the government for “not showing any willingness” to tackle the country’s present financial situation and a predicted deficit of more than $500m.
The former Minister of State for Finance accused the government of increasing the debt with spending and said more steps need to be taken to reduce expenditures.
“A number of things have to be done to improve the trajectory of our debt situation, going forward, so that we’re not having as large a deficit as we are currently having, and therefore growing the debt at the rate that it is now growing,” he said.
“Those steps have to be taken and every indication so far... is that the government has not shown any willingness by its actions to do anything about the financial situation of the government.”
Mr Laing hit out at the size of the government’s Cabinet and criticised “vague” allotments in the budget as examples of expenditures that could be cut.
“There is a $15 million allocation in the Prime Minster’s budget for who knows what. For the implementation of the contract for governance, or whatever, that’s a vague allocation. It makes no sense,” he said.
“Governance is governance and knowing your spending is a part of your governance programme. So get rid of that, that’s a $15 million reduction.
“You can talk about reducing the size of the Cabinet – but not targeting any one particular ministry – it’s a very large Cabinet. But there are other areas of savings. For the first instance, the government has hired all kinds of persons, given all of kinds of consultancies out. Well that’s cost of the government – that’s expenditure they could control... The reality is, a $550 million deficit is not a deficit we need to have.”
Mr Laing also hit out at the PLP for their criticisms concerning the way the FNM handled the budget while they were in office – such as borrowing money, and questioned what the government will do differently.
“They seemed to rebuke us for doing those things which are standard parts of trying to prevent financial (challenges),” he said.
“If you listen to that language, you wonder what will they do now. But the reality is, there is no choice now. There’s no choice. The Bahamas has to prevent itself from falling off a fiscal cliff, so to speak.
“They were the ones who said that we were headed in the wrong direction and the deficit that we had was too big – but yet come and produce a deficit bigger than the one they met. Now it’s time to stop stalling and blaming and start governing sensibly.”
The Senator also warned of the ramifications of another downgrade and stressed the significance of international credit rating agencies for investors and lenders.
“If you have another downgrade then you’re looking at additional costs of borrowing or difficulty with borrowing. That’s the reality,” Mr Laing said. “The downgrade in this instance, they’re only downgrading our economic outlook, but if they downgrade your credit rating then you’re looking at a more costly situation when it comes to persuading others to buy your debt.
“Because we are going to have to continue to borrow – let there be no mistakes about it. Maybe not at the same rate, but we are going to have to borrow. When your rating goes down, investors ask you to pay more for the same level of service. That’s reality. But more importantly, that’s how S&P sees us or how Moody’s see us – it’s what our situation is.”
Government revenue has not been performing well since the recession and it will continue to be “sluggish” in light of the global economic situation, he continued.
“Therefore to continue to ignore that and to continue to increase spending in the face of that is courting disaster. Bahamians have to be concerned with that. Blame the FNM all you want – fine, we’ve been kicked out of office for whatever breaches we did, if that’s what one thinks. (But) the reality is, Mr Christie’s in charge now. It is his responsibility and there has been no action taken to correct the situation.”
Comments
Bril says...
This is the same nonsense. Mr. Laing really is something else. He talks bout debt reduction and lack of plan, yet he has not answered once the unexplained spending in the run up to the election. The nice car that everyone is speaking about was ordered under his watch as Minister of Finance. It really is disgusting the way our politicians so boldly lie and act the fool with Bahamians. He is correct in saying that there is a PLP government in office and it is the responsibility of the government to solve these issues. But Mr. Laing appears to want to wash his hands clean of the mess under his watch. If he had good sense he would be trying to help the situation even while out of office.
The fact is Mr. Laing has always been one to use terms with the public that makes him appear to be an expert in economics and finance. He can tell us all about credit ratings, deficits and GDP straight out of the text book. What he has failed to do as a minister is to be practical and leave a sensible economic model that any successive government could understand. Furthermore, what credibility does Laing have as savvy businessman or financial whiz? The FNM government boasted about its fiscal prudence, but all they did was spend. What they did was beyond Keynsian economics it was reckless and stupid. There is nothing to show for it. No infusion of capital into the economy, no encouragement to the banking sector just waste and a bunch of social programs that they use a political tools.
Posted 26 September 2012, 2:35 p.m. Suggest removal
spoitier says...
I was about to comment but you said all that needed to be said concerning that situation. Politicial not only think that people is foolish but they think that some of the smart ones would forget about some things, the PLP was doing some of the same stuff also.
Posted 26 September 2012, 3:06 p.m. Suggest removal
concernedcitizen says...
harbour ,roads ,hospitals ,airport ,port and bulk terminal , exuma hospital ,operating theathers at the rand ,airport marsh harbor ,dock ragged island ,office complex grand bahama ,new defense force boats ordered under fnm ,dock at current island ,remand courts at the prison,5 new schools ,not trailer class rooms,all infastructure during a recession that created jobs,,,name 3 projects under the plp while the economy was booming and our national debt went up 800 million ,,name what we got for that 800 million ,at least for the billion HAI borrowed we got something ....name 3 things we as a country got for 800 million ??????????????
Posted 26 September 2012, 5:42 p.m. Suggest removal
Bril says...
We can argue over a detailed list of who did what or supposedly did what for eons. Concernedcitizen your bias has surely grown over the last few months. At some point you and I at least agreed that Bahamians whether FNM, PLP or in between we're not getting good representation. As far as I'm concerned both of these parties are lack luster. Its no use holding one up over the other because they have both been reckless. My problem with FNMs is that they like to behave as if they are the only ones who ever did anything positive for this country. Mr. Laing especially. He exudes a disgusting sense of arrogance. I met him once as a student in Junior Achievement some years ago. He was arrogant then and is arrogant now. So yes Concernedcitizen it would be hard deny that the FNM did do some good. But what concerns me is that we are so politically divided as people that we can't get moving in this country. I am convinced that if we as people don't get beyond party politics and use our sense to build this country together we aint going nowhere soon.
Posted 27 September 2012, 4:17 a.m. Suggest removal
concernedcitizen says...
yes the plp did lots of good ,but i,m talking this century ....i went to school w/ carl bethell and don,t really like him ,but thats not the point,,,,i,m not biased , I am an FNM supporter ,,i forgot the straw market ..the road works payroll to bahamians was 150,000 to 200,000 a week ..name 3 things the plp did for us with the 800 million that was put on the national debt from 2002 to 2007 ,,three projects ,thats all not 4 not 5 ,,3 ???
Posted 27 September 2012, 1:44 p.m. Suggest removal
thephoenix562 says...
Well said.
Posted 4 October 2016, 3:29 p.m. Suggest removal
concernedcitizen says...
ahhh ,the jobs on the different projects were an infusion of cash into the economy ..would you have prefered a plane flying over once a week pouring 150,to 200,000 on to the streets ...then those that spend on numbers ,gold chains and weaves could give it back to the business owners and savers amongts us faster ,,lol,,,your right we should be partisan ,i should just agree with you that Mr Laing displays a "digusting sense of arrogance " gee your not partisan at all ..lmao ,did you use a subjective form or a imperical form of mesurement to come to this conclusion about Mr Laing ??. Do you know him personally ,or are you a trained mental health care professional ??Are there any PLP,S that are disgustingly arrogant ,in your opinion ,that i and the public should look out for ??Is your opinion based on personal experience or ancedotal ,is B Roberts arrogant or humble in your enlightened opinion ..
Posted 28 September 2012, 2:56 p.m. Suggest removal
positiveinput says...
On the topic of financial situation, is it just me or has anyone else used a banks ATM to deposit cash and the bank is now making you feel that the deposit was just a dream?
Posted 27 September 2012, 3:44 a.m. Suggest removal
concernedcitizen says...
i don,t care how arrogant they are ,i don,t hang with any of them ,plp or fnm ..i care who uses our money to benifet us ,,,roads ,docks ,hospitals ,4g ,airports ,straw markets ,ports,private radio,tv ,,name 3 infastructure projects under PGC ,??
Posted 27 September 2012, 1:57 p.m. Suggest removal
Thinking says...
Wow! did he/she really include 4G in the FNM's list of ***infrastructure**** projects? Concernedcitizen is clearly biased.
Laing is very arrogant and tries to come off as a "know-it-all." Fact of the matter is that most of the problems that they (FNM) met in 2007 are still around. Fixing a few buildings and roads doesn't mean that you had an effective term in office.
Truthfully the current government (PLP) probably won't make much of a difference either. Bahamians just need to realize that rotating the same corrupt politicians, and remaining totally, foolishly allied with one party for no reason is stupid.
These guys (PLP's and FNM's), most of them, are only in office for fame, easy women and to fill their pockets. Prime example is Mr. Laing; and again he is just one among many.
Posted 27 September 2012, 2:27 p.m. Suggest removal
concernedcitizen says...
biased would be if i appearred impartial but was not ,,i do not appear impartial ..i am a HAI supporter ..i don,t care about someone opinion about who is arrogant or not ,and there are some PLP ministers that do a good job ,but the proof is in the pudding , name three things ,infastructure projects ,that we the public got for the 800 million increase in our national debt from 2002 to 2007 ..to me the dna was not an option ..Winston Churchill was a miserable arrogant cuss ,but he was a good leader ...now if you chose to use emotive words like 'stupid " etc ,thats your right ,buildings ,ports ,airports and hospitals are not emotive things ,they are bricks and mortor ,labour and paychecks ....having seen HAI in politics for 35 odd years ,you can say he is arrogant ,bullheaded ,he pissed off many big donor FNMS ,but it is hard to say he is or was corrupt ....
Posted 27 September 2012, 6:35 p.m. Suggest removal
thephoenix562 says...
Amen
Posted 4 October 2016, 3:30 p.m. Suggest removal
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