FOR IMMEDIATE RELEASE
April 13, 2012

DNA Concerned about Lack of Economic Concern

The economy of the Bahamas is in dire straits and the path we are on is unequivocally unsustainable. Short-term borrowing is normal however there should be a clear idea of how the money will be repaid.

The Prime Minister was recently asked about the additional 12 million dollars shortfall that is required to complete the New Providence Road Improvement Project (NPRIP). In a Nassau Guardian article on March 20th, 2012 he is quoted as saying, “It will come from the government. Who else will it come from? But the government borrows every month…every month God sends. We never have enough money to pay our bills – never.”

The Democratic National Alliance (DNA) sees this as a clear and present danger to our way of life. No country, company or individual can borrow money every month and maintain a healthy financial status. Theo Cochinamogulos, DNA candidate for Carmichael says, “The problem with financial management is always the skill of the persons managing the money and the direction (plan) of the spending. Our recent spending under both FNM/PLP is limited in growth orientation.”

The DNA believes that the minister of finance who is the prime minister and the Minister of State for Finance, who is Zhivargo Laing, have clearly missed the ball over the last five years in terms of being financially prudent. Their reckless policies will hurt the Bahamas for years to come.

Prime Minister Hubert Ingraham has clearly indicated on several occasions that he sees no point in diversification, which is the only real solution for more revenue and more employment. Cochinamogulos further says, “According to policies of the PLP and the FNM, it seems easier for them to borrow and spend than find ways to expand and grow. You can grow from borrowing but it must be spent on new industries or products or expanding your current industries. The focus on growth spending by the FNM/PLP has been basically limited to tourism, an industry that has been faltering in recent years.”

The DNA is convinced that the FNM and the PLP are not going to diversify the economy. DNA leader Branville McCartney says, “The current leaders of the two other major parties have been in Parliament for a combined 70 years now and they didn’t see fit to diversify the economy. They are certainly not going to do it now. Christie and Ingraham need to be honest with themselves and the Bahamian people because they have no plans to move our country forward and empower Bahamians.”

The DNA believes that successive governments have missed the opportunity for years on end to partner with Bahamians to execute dual projects. They don’t believe in Bahamians and they certainly have not delivered.  Cochinamogulos asserts, “Governments should join hands with its wealthy nationals and do joint projects which can net a positive return on investment. There are many Bahamian nationals who are willing and able to partner with the government, but the government must put Bahamians first. Our dollar parity to the USA is addicted to FDI and hence our willingness to literally give away our patrimony. We need to reduce our addition to FDI to return negotiating leverage to our leaders and not the foreign investor. We must keep our fiscal house in order."

The financial decisions over the next five years will be critical to our standard of living. Any borrowing by the government needs to be focused on new industries where we can see a return on our investment. We can’t continue to borrow and experience no economic growth. Our national reserves continue to be strained because of the failed policies of the PLP and the FNM. A DNA government has the will to make the tough economic decisions that will put the Bahamas back on the right track. We are at a vital stage in our history and we need leaders who are looking out for the welfare of all Bahamians, not just a selected few.