Hubert Ingraham has claimed that 49.8 percent of the Bahamian people voted the FNM back into office to restore TRUST in government. His actions over the past three weeks have done much to erode that TRUST and the Budget Communication today is further evidence that the FNM government led by Hubert Ingraham is a government that lacks the vision and courage to continue the bold transformation of our society and economy that was started by my PLP administration.

It is a matter of truth that this budget shows that Hubert Ingraham’s FNM government has, in fact, TURNED BACK.

Hubert Ingraham’s FNM government has turned back from the bold and courageous planned economic redevelopment and revitalization of Bay Street and the movement of the container port which is vital to the sustained development of Bay Street, our cruise ship industry and our economy as a whole.

Hubert Ingraham’s FNM government has turned back on the provision for a comprehensive national health insurance plan which would allow access to proper health care for all Bahamians, regardless of their social, religious or economic background. This was the most progressive government initiative offered to the people of the Commonwealth of The Bahamas since the introduction of National Insurance by the PLP in l972.

Hubert Ingraham’s FNM government has turned back on the Urban Renewal Program which was both nationally and internationally acclaimed as a positive step towards addressing the troubling issues facing our brothers and sisters in the inner city communities of our country.

The PLP’s commitment to the people of The Bahamas will not change. The PLP’s philosophy based on a social contract with the Bahamian people will not change. Our philosophy is one which believes in transformation, not just marginal incremental changes.

Hubert Ingraham’s FNM, on the other hand, has essentially scrapped these bold and transformative initiatives and in fact is doing nothing more than managing the economy and $20 billion investments left in place by the PLP government.

Hubert Ingraham’s FNM is void of creativity and innovation. Their 2007 Speech from the Throne confirms this fact. It includes no less than 10 unfulfilled promises that appeared in the Speech from The Throne delivered by former Governor General Sir Orville Turnquest on March 17, 1999. Some of the sentences are exactly the same and in numerous instances Mr. Ingraham has not even taken the time or effort to change the sentences. (Here’s a copy for you to see for yourself). Eight years later this is further evidence that Hubert Ingraham’s FNM still has no vision or clue of where to take our country or how to get us there.

Mr. Ingraham’s reckless and irresponsible comments concerning review of contracts entered into by the PLP government is unprecedented in our history and his statements have only had the effect of making these same investors and their financiers very nervous indeed.

I would caution Mr. Ingraham to be very careful indeed. Our country has enjoyed sustained economic growth because of our political stability and this unpredictable behaviour will impact unfavourably on the Bahamian people and their future in our approach to foreign investment.

The achievement of a balanced budget may, from a theoretical point, sound good; but the reality is that the elimination of the deficit usually necessitates the reduction or elimination of vital social programmes, maintenance programmes and necessary public infrastructure. We remember too well the state of the cruise ship harbour at Prince George Dock, the Lynden Pindling International airport major runway and seawalls throughout The Bahamas when the then FNM government under Mr Ingraham starved the country of the necessary funds to maintain our most vital infrastructure.

It is good to see that the budget reflects the prudent fiscal financial and economic planning left in place by the PLP government administration. However, that performance was crafted in reality and the outcome was better than expected. This, however, is unlikely to repeat itself as most, if not all, of the loopholes in the Stamp Act have been closed. Therefore the allocation of twenty seven percent of the Budget revenue being derived from stamp tax appears extremely unrealistic.

The 2007 / 2008 Budget is unlikely to achieve its target of a surplus on the recurrent account; nor is it likely to achieve a reduction in the national debt. The two hundred million dollar plus capital budget is the first capital budget in our recollection that has exceeded the $200 million threshold. Moreover, the projected increase in the GFS deficit from one point six percent to one point eight percent of GDP would seem to contradict any claim of debt reduction. Indeed, the pledge of no new taxes nor tax increases would make planned debt reduction even more challenging. It is also worth noting that when my government came to power in 2002, the 2002 / 2003 GFS deficit was at 3.4% of GDP and the GFS deficit at the end of our term was only 1.6% of GDP; an impressive achievement by any measure.

Lastly, projected increase in recurrent expenditure of only six percent is questionable, given the planned increases in manpower requirements of the Defence Force and the Royal Bahamas Police Force.

Taken together, it is clear that the twenty-five million dollar projected surplus is – at best – nothing more than a smokescreen and at worst, pure political optics.

The truth of the matter is that this FNM government led by Mr. Hubert Ingraham has not shown in this Budget why the Bahamian people should trust them.

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