Bahamas MP Says Economy On The Road To Recovery

by Amanda Banks, Tax-News.com, London

14 June 2002

Speaking to the House of Assembly on the Budget Debate, Progressive Liberal Party MP, Frank Smith predicted that the Bahamian economy is on the road to recovery. However, he echoed the words of Nassau Institute chief, Dr Gilbert NMO Morris in warning that in order for a full recovery to take place: 'there must be a realisation that the financial services sector needs to be rescued, and that we must be fiscally responsible in our dealings.

Accusing the Free National Movement government of economic 'mismanagement' during its time in office, the MP for the St Thomas More constituency told the House that: 'Now our recurrent expenditure continues to grow because of the continuous deficit budgets, and because we continue to run these deficits our expenses continue to outstrip revenues earned.'

However, the Nassau Guardian reports that despite these complicating factors, the PLP Member believes that the Bahamian economy is on the mend. Speaking with regard to the 2002-2003 budget, he expressed the hope that the public would see it as 'people friendly' and 'forward thinking'. However, Mr Smith admitted that there are challenges ahead of the Caribbean jurisdiction, of which one of the most important is developing the financial services sector into a regional leader.

Dr Morris expressed similar sentiments at the beginning of June, when he welcomed Prime Minister, Perry Christie's new budget, but warned that it merely constituted a 'stopgap measure'.

'We have to grow this economy and the way to do that is we have to get over our fear of the foreigner and we have to go out and dutifully and internationally recruit the best people with the best talent from all over the world,' the finance expert told the Nassau Guardian earlier this month.

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