A CABINET Minister yesterday warned that “now is the time to get serious” on economic reform, warning that change will be “uncomfortable and contentious” for many.

Brent Symonette, minister of financial services, trade and industry and Immigration, said progress was being made on the drafting and tabling of legislation to streamline procedures and improve the Bahamas’ ease of doing business.

Addressing the Bahamas Institute of Chartered Accountants (BICA) conference, he added that the Bahamas could no longer afford to delay tackling the obstacles hindering economic growth and job creation. Mr Symonette recalled how the International Monetary Fund’s (IMF) October Article IV report found that the Bahamas has endured a prolonged period of stagnation, resulting in declining income relative to neighbouring countries; concerns about fiscal sustainability; and a severe household debt overhang problem. “They also cited elevated public debt; limited external buffers; and a pegged exchange rate regime as constraints to the policy space to allow response to shocks,” said Mr Symonette.

“As hard as it may be, the time to get serious about addressing the problems hindering the growth of the Bahamian economy is now. The discussions will be uncomfortable. and may even be contentious, but they are necessary.”

Mr Symonette said that for the Bahamas to compete and prosper in the global economy “we must create conditions that facilitate the ease of doing business in an open, innovative, productive and competitive environment”.

He added: “The Bahamas ranks 121st among 190 countries on the World Bank’s ease of doing business index. That has to change. The Government has embraced this idea, with the understanding that we must be forward thinking if we are to advance ourselves as a nation and continue to compete in the global economy.

“Currently in progress is the drafting and tabling of legislation to streamline procedures and improve the ease of doing business, as well as the enhancement and reconfiguration of government agencies to facilitate ease of process and sharing of information between agencies.

“We have already begun to implement changes to Immigration processes for tax residency; work permit relaxation for certain classes of persons; the threshold for purchase of a residence to $750,000, and economic permanent residency. We are also going to look at other forms of permanent residency which does not necessarily involve the purchase of a house, whether it is investment in University of the Bahamas or bonds.”

Mr Symonette sais sustainable growth will be driven by Bahamian entrepreneurs and their access to credit, which will allow them to grow their businesses and create new jobs.

“This can only be achieved with a strong, healthy financial market which will attract foreign direct investment and increase domestic investment,” he added. “It will also channel the savings of families into investments to potentially raise household incomes.”