INSIGHT: How long until we feel govt’s spending?

By MALCOLM STRACHAN

THE pockets of the people have been hit with quite a toll in recent weeks. It would be nice if we could see government reining in spending to ease the pain.

Let’s start with the announcement of an increase in NIB of an initial 1.5 percent – which started off with the minister responsible for NIB, Alfred Sears, telling Parliament it would be 1.5 percent every two years for the next 20 years.

The Office of the Prime Minister quickly dashed to say oh no, only the first 1.5 percent increase has been decided on, and yet despite Mr Sears having misinformed Parliament on the matter – if OPM is right – we have not seen or heard from him since.

Still, we knew we were going to have to pay more. We know that a single increase of 1.5 percent is not going to do the job of fixing NIB. And we can expect from experience that the government isn’t going to set the record straight on what is going to be done any time soon.

Still, businesses can start planning how to deal with an increase in contributions, and what adjustments this first wave of increases will require to keep the business going. Employees pay part of the rise, employers the rest, so it is going to hit the bottom line, and businesses will have to adjust accordingly.

Plenty of people though have been saying that if NIB wants to fix its balance, it can start by demanding that government agencies pay back what they have borrowed.

Then there are the new costs for boaters. The increase in fees has already been described as “self-inflicted inflation” by the FNM’s finance spokesman, Kwasi Thompson.

He was not the only one to point out the number of Bahamians who use boats out in the Family Islands in pretty much the same way as Nassauvians use their cars.

Paul Maillis, the secretary of the National Fisheries Association, called it a “bitter pill to swallow for everyday Bahamians”.

Mr Thompson, meanwhile, read out various opinions on the fees sent to him, such as: “The requirements listed are extreme. Annual survey, maintenance records, crew training and so on. These are unreasonable requirements. Surveys are expensive. Most crew have no formal training. Maintenance records are non-existent.”

Another said: “What passes for seaworthy? Where is the basic list of safety requirements for registration? Annual inspection; this means that an officer of the Port Department will have to travel to each boat … nationwide! Nobody can bring their boats to the Port Department. This is not like driving your car to an inspection centre for road traffic.”

Another said: “It appears that they will bite off more than they can chew, and will need to increase the fees in order to pay enough staff to perform the administrative duties associated with these amendments.”

Into the middle of this concern about costs on the public drives, literally, the prime minister, in his near-$200,000 new BMW.

And to go with it? A substantial delegation from The Bahamas jetting off to Botswana.

If the punchline of a joke is all about timing, then the government landed this one perfectly.

You will recall the previous trips the government has dashed off on that we were assured would make a difference to The Bahamas, and yet from which few tangible benefits have actually been spelled out.

Well, now it’s Botswana’s turn to be absolutely, 100% worth taking such a large delegation to and we’ll see the benefits in the future. Source? Bro, trust me.

Back in February last year, as he has a number of times, Prime Minister Philip “Brave” Davis, talked of not wanting to increase the burden on poor people.

He was speaking in the context of the then discussion about an increase in NIB rates. He said: “I’m going to try to resist putting more burden on our poor working class.”

Later, in June, when announcing the date if not the amount of the NIB rise, he said: “We do not wish to impose any additional burden.”

Then again, in November 2022, when talking about inflation, he insisted that “the costs of this global inflation crisis must be a shared burden” and not put on the backs of struggling Bahamians alone as he asked businesses to do their part.

If it is to be a shared burden, then it is perfectly fair for people to ask the government to show how it is sharing the burden.

A new BMW for a cool fifth of a million. A substantial delegation jetting off to Botswana with no information on how much the trip is costing the public or who provided the flights. And other costs – such as using the public purse to pay for a memorial for Obie Wilchcombe. A fine man, but if people wanted to hold a memorial, they didn’t need to take money from the Budget to do so.

And then, of course, there is the prospect of the corporate income tax, which while the government says it will not directly affect Bahamians, what do they think global businesses affected by a 15 percent tax will do to the Bahamians working for them? Job cuts, pay freezes and reduced contracts to suppliers are all likely outcomes.

There is a distinct gap between the government’s talk on burden sharing and the costs they are imposing on people’s shoulders.

Some are already straining, but even for those who are not, one of these may be the straw that breaks their back.

If these extra costs are essential, then we must bear them. But at the same time, government must avoid spending so visibly lavishly. To see the PM driving by in his expensive car while we judder over potholed roads is a frustration, doubly so if we do not feel that government is doing its part to rein in the spending.

Even before the effects of these costs are being felt, there is a feeling of resentment among many that government needs to do more. When the costs begin to bite, that resentment may well become real anger.