New PLP government budget

The Prime Minister, the Hon. Perry Christie, outlined his government"s program in the Speech from the Throne at the opening of the new parliament on May 22, 2002. He acknowledged that the voter turnout of 90 percent of the registered voters was exceptional and that his government was coming into power with a very solid base of popular support.

He felt that this is a time of great promise for all Bahamians.

He recognized that on the international scene, there are many challenges of globalization, of free trade arrangements and of economic aggression by the industrialized nations which combined to produce a complex of threats to our national economy that could not have been foreseen in earlier periods. Following are excerpts from his speech to Parliament.

Prominent policies will include the following:

• Reduce the level of crime in our society.
• Stem the increase in illegal immigration.
• Combat drug-trafficking.
• Eliminate the sub-standard living conditions.
• Meet the demand for decent, affordable housing.
• Maintain industrial peace and harmony in the work-place.
• Introduce new strategies for the economic improvement of our Family Island communities.
• Stimulate an expansion of tourism.
• Reinvigorate our financial services.
• Promote economic growth and prosperity in all other sectors.
• Protect our coastal and marine environment and fisheries resources from damage and depletion.

Mr. Perry"s government has adopted a strict Code of Ethics and will be introducing a bill for requiring higher levels of accountability from top government members. This is designed to discourage corruption in public service.

Following are items mentioned which will directly apply to Abaco.

Tourism Development Is to Be Top Priority

Tourism will continue to be the primary source of economic growth and government is committed to diversifying and expanding the entire tourism industry.

One proposal will be to grant loan assistance and tax relief in some areas for the renovation of homes to be used as guest-cottages and by providing loans for new business ventures of touristic appeal. The government will create and expand local handicraft enterprises to increase tourism purchases of native handicrafts.

Financial Services, E Commerce and Investment

A new Ministry of Financial Services and Investments has been created to attract more of the international market for offshore services. The government will also review the current financial services legislation to simplify the requirements. However, the government will make sure to still comply with international standards.

Mr. Perry would like to see The Bahamas become an E-commerce center which could provide employment for qualified Bahamians. Legislation will be introduced to facility this venture.

Tax Policies are Spelled Out

Mr. Perry"s government assures Bahamians that there will be no income tax, no corporate tax, no capital gains tax and no inheritance tax. To encourage foreign capital investment, the government will consider liberalizing the Exchange Control. The new Ministry of Financial Services and Investments will be responsible to reduce the red tape now required before foreign investors can begin developments. He also proposes to make the issuing of restaurant and liquor licences permanent rather than the present system of having to renew them annually.

Tax Relief Is Expected

Legislation will be introduced to increase the deduction for owner-occupied homes. This will apply only to foreign-owned homes in the Family Islands. The exemption is expected to go from $100,000 to $250,000. Also encouraging to second-home owners, that there will be a ceiling on property tax. First-home buyers will be exempted from paying stamp duty on the purchase. They will also be exempted from paying stamp duty on their mortgage. This will help Bahamian families in buying their first home.

Family Islands Will Receive Benefits

One suggested program will give exemptions of customs duty and stamp tax on capital investments in projects that will help the economy in depressed areas. Moore's Island was named as one of the areas. This exemption will be in effect for five years.

Fishing and Agriculture Will Be Stressed

According to Mr. Christie, the fisheries industry will receive special support and will receive financial and technical assistance. The government will be committed to conserving the fisheries resources and will expand conservation measures. They will develop a five-year agriculture plan and will set aside $1 million for financing agricultural projects, especially in depressed Family Islands.

Health Is Important to New Government

The new government is committed to improving the health of its citizens. One project will be to establish a National Health Insurance Commission to develop a health insurance plan to be phased in. The environmental health offices in the Family Islands will be expanded and will improve vector control and be more actove in health inspection activities. Modified land fill waste disposal facilities will established including one in North Abaco.

Social Services Will Be Developed

The Prime Minister will provide assistance services for individuals and families who need basic necessities of food, shelter and clothing. The government will introduce legislation for licensing all residential care facilities..

Housing Will Be a Priority

The new government will encourage the increase of home construction so more Bahamians can be home owners. It will research ways to reduce to cost of home construction and will try to find ways to expand the funding for mortgages.

Security Will Be Important

Government is determined to put in place strategies for combating crime and will be doing so with imagination, resolve and the necessary resources.

In relation to specific crime-fighting and drug interdiction strategies, my Government will do the following:

Ensure that Police and Defence Force are properly equipped to respond quickly and efficiently to all calls.

Adopt community relations strategies to increase the level of public co-operation and interaction with the police in crime prevention and detection.

Try to expand the assistance of the United States in interdicting guns entering The Bahamas.

Intensify and expand the joint US-Bahamas interdiction program against drug trafficking;

Youth Will Get Attention

The new Ministry of Youth, Sports and Culture launch a series of initiatives for involving youth beneficial programs. These will include the Bahamas Youth Achievement Scheme which will encourage civic and social pride and responsibility. They will begin after school courses in character building and discipline. It will work closely with churches and civic organizations.

Sports Will Play a Major Role

Mr. Christie will encourage sports to develop good discipline, build character and bring about the development of world class athletes. He will establish ad national Training Center for sporting development. He is especially concerned about assisting Family Island schools in their sporting programs.

Education Needs Further Reform

Mr. Christie wants to improve the school system. Additionally he will work toward the following: Every three-year-old child in a pre-school. Every child in every school to have access to computers and controlled access to the internet. Every child graduates from primary school with the fundamentals of a good education. Every child will attend school in safe, secure and properly managed environment which is properly equipped to meet the needs of all our students.

Students will be introduced to courses in marine science, marine biology and ecology to be made aware of the responsibilities for preserving our reefs and marine environment.

Additional emphasis will be placed on agricultural science and technical and vocational skills-development.

Transportation Problems Will Be Addressed

This government will addressed the concerns of taxi-drivers and jitney owners. Legislation will be presented to allow them to import replacement vehicles duty-free once every five years.

Developing marine inter-island transportation will be considered as a way of promoting domestic tourism.

Bahamasair will be re-structured so that less profitable routes will be sub-licenced to charter airline services.

Constitutional Changes

A Constitutional Review Commission will be formed to recommend changes to the constitution.

Labour Laws Will Be Reformed

This government will try to resolve some of the problems with recent labour legislation which was unpopular with both employers and organized labour.