Dormant accounts – they'll do nicely

By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

THE government is proposing to utilise $41.3m from dormant bank accounts to establish a disaster relief fund, Prime Minister Dr Hubert Minnis announced yesterday.

He made the announcement yesterday at Parliament during debate of the Bank and Trust Companies Amendment Bill and the Central Bank of the Bahamas Amendment Bill.

Once the changes are passed, the Central Bank of the Bahamas will have the legislative backing to confiscate money in accounts that have been dormant for seven consecutive years and hold it in a disaster fund for government use in the event of a natural disaster.

Dr Minnis said while there were several compelling things the government could spend the money on, the “mature” thing would be establishing the disaster relief fund. Currently there are 42,452 dormant accounts with a corresponding value of $88.716m as of June 2018.

However, once the amendment is made law an initial flow of at least $41.3m would be available.

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Conditions on Ragged Island in 2017 after Hurricane Irma.

Dr Minnis said: “Mr Speaker, governments must make mature decisions.

“You will hear arguments throughout the day that that money should be used for sports. Sports encourages discipline leadership and provides opportunity and most of all you cannot pay for the type of public relations that one receives.

“Others might argue that the money should be utilised for education and preparing of our schools with more teachers, pre-school programmes and under construction of new schools.

“Some may argue, Mr Speaker, that the money should be utilised for health – repairing our clinics and hospitals and obtaining all the new necessary equipment and fast track the telemedicine programme that our minister speaks so passionately about and others may argue that salaries should be changed – doctors, nurses, public servants, yes, union contracts and some may argue that the $41.3m should be used to assist social services help more of needy.”

He also said: These are all great arguments, Mr Speaker, but as I said government must make mature, non-isolated decisions. An irresponsible opposition may argue, Mr Speaker, increased electricity costs and therefore the money should be used to decrease light bills and turn individuals whose lights are off to be turned on again. This might be a great argument, Mr Speaker, but this is an attempt to change social citing in the eyes of the people.”

He also said: "Our infrastructure could be so damaged that investments in the country would crash overnight, our tourism industry would crash overnight , our banking financial system that needs digital systems and proper bandwidth would crash overnight.

“It’s essential to make decision whether you concentrate in silos and your infrastructure is destroyed plus your infrastructure, your tourism, your investment and your banking resulting in no economic activity or monies generated to repair or carry on the school system social service your health your security.

“So, Mr Speaker, it is not my government’s intent to view this to meet normal budgetary operations as a responsible government we are proposing that these funds be utilised for establishing a disaster relief fund that was foreshadowed in the most recent budget exercise,” Dr Minnis said.