Prime Minister and Minister of Finance the Hon. Philip Davis speaks in the House of Assembly, on June 1, 2022, during his Contribution to the 2022/2023 Budget Debate.  (BIS Photos/Eric Rose)

NASSAU, The Bahamas – During his Contribution to the 2022/2023 Budget Debate, Prime Minister and Minister of Finance the Hon. Philip Davis said it was very clear to him that the high cost of living in The Bahamas “is truly an emergency”.

“The necessities of life are too expensive – for almost everyone,” Prime Minister Davis said, in the House of Assembly, on June 1, 2022. 

“In truth, the cost of living was too high even before the global inflation crisis,” he added. “But now we’re in new territory. Food prices alone have gone up 20% just since last year. The cost of everything keeps going up – but paychecks – for those lucky enough to have work – are not keeping pace.”

He continued: “That’s why the first priority of this budget was to put in place a package of measures to help Bahamians cope with inflation, including:

• Multiple reductions in import duties.
• Funding to increase enforcement of price controls.
• An increase in the minimum wage in the public sector, with incremental increases beginning next month.
• The establishment of a contributory pension plan for public officers.
• The reintroduction of RISE, a conditional cash transfer programme.
• A new Catastrophic Health Care programme.
• A substantial investment in making home ownership more accessible.
• The establishment of the Universal Service Fund, to make technology more accessible and affordable throughout our islands.
• Significant investments in agriculture, to increase the nation’s food security and reduce our food import bill.
• A 10% increase in funding to NGOs. 
• A 50% increase in social services assistance, compared to pre-pandemic levels.
• A salary increase for teachers, and a retention bonus for both teachers and nurses.”

Prime Minister Davis noted that in his my Communication in the House of Assembly the week before, he praised the efforts of Bishop Walter Hanchell and Bishop Lawrence Rolle, who had provided meals throughout the pandemic, and talked about new budget allocations to support their very commendable efforts. 

“To my great regret, I omitted the important work of Rev. C.B. Moss, in the Bain and Grants Town community,” he said.  “All three of these gentlemen have worked tirelessly throughout this crisis to feed Bahamians, and did so, until now, without support from the government.

“Their organizations will all receive grants in this new fiscal year.”  

Prime Minister Davis said that another issue which had arisen was his Government’s commitment to improving the salary and benefits of public officers.

“To the labour leaders who are seeking to conclude contractual agreements, you will find our approach very civil and constructive,” he added.  “Yes, there will be a back-and-forth; but that is a part of negotiation process.

“In the previous four and half years prior to us coming into the office, there was no dialogue -- only confrontation.  We are seeking to change that and this upcoming Budget sets the framework for this relationship change.”

Prime Minister Davis noted that the chief drivers of inflation – global supply chain problems, the war in Ukraine, US monetary policy – cannot be addressed by the policies his Government makes in Nassau.  

“But what we can do is bring down the costs we do control, work to make sure those savings are passed on to consumers, put a little more money in pockets, and plan for the medium and long-term, so we reduce our vulnerability in the future to global conditions,” he said.

“Let’s start with the reduction of customs duties on nearly three dozen food items – the goal here is to include many of the most frequently consumed foods, like eggs, chicken parts, flour, cheese, and corn, and to make healthier foods less expensive, too, including broccoli, carrots, spinach, cucumber, beans and cabbage,” he added.

Prime Minister Davis said that his Government had included funding for new enforcement personnel at the Price Control Commission, to make sure the savings were passed on to consumers. 

“We have increased social assistance by 50 percent in comparison to pre-pandemic levels, and RISE, a conditional cash transfer programme, will provide additional assistance, with requirements to participate, including ensuring that children in the household keep up with school attendance and medical checkups,” he added.

Prime Minister Davis pointed out that NGOs play an important role during a time of crisis, so his Government wanted to do what it can to help their resources stretch further.

“Therefore, all property owned by religious organizations, trade unions, civic organizations and business societies will now be exempt from the payment of Real Property Tax,” he said.  “This is no small thing – this is very substantial relief for labour unions and others.”

Prime Minister Davis then noted that healthcare costs were rising along with everything else, and Bahamians who suffer chronic disease were particularly impacted.

“We have allocated $10 million for catastrophic health care in our budget, which means the Government can provide some assistance to long-term dialysis patients, heart patients and others facing serious medical issues,” he said.

Along with food and health care, Prime Minister Davis said, housing also ranked as a necessity, and so as soon as his Government came into office, it started planning and building affordable housing.

“I noted earlier how gratifying it was to hand over keys to new homeowners last week, in the Pine Crest subdivision, which will include 47 new homes,” he said. “The smiles on the faces of the new homeowners were about as big as smiles get.

“We all know that’s because a house is so much more than a place to lay your head at night.”