PLP promises feasible, but govt must be upfront with conditions

As lofty as the campaign promises made by the Progressive Liberal Party (PLP) are, they are feasible, according to one former Chamber of Commerce CEO.

The PLP made a plethora of promises on the campaign trail before assuming office as the new governing party including increasing the minimum wage, reducing value-added tax (VAT) to 10 percent, providing nationwide free COVID-19 testing and constructing new hospitals on New Providence and Grand Bahama.

Sumner Strategic Partners and Vice-Chair of the Bahamas Entrepreneurial Venture Fund Edison Sumner said as long as the new Davis administration is open and honest with the public about the state of the country’s finances and how that may impact the implementation of those promises, they are feasible.

“I think they are doable. When they get done, it might be a challenge. I know the government came in and said we’re on this fiscal cliff and we’re staring down the barrel of this gun but I can almost assure you that notwithstanding best efforts and best intentions that the government will have to go back to the kitty to borrow more money, that’s almost inevitable. It has been one of the first things that every new government has done for as long as I can remember governments changing in this country,” he told Guardian Business.

“The first thing they do is an assessment of public finances, they do their audits and then they realize that more money is needed to fund these government projects. So, it is inevitable that they will go back to borrow money. But political promises on the campaign trail is one thing, when you get into office and realize the realities of what you’re dealing with then I think those expectations will have to be adjusted. The promises will have to be kept, I’m hopeful, as best as they could. But the government has to be transparent now and they have to come back and say to the country, ‘I’ve made you a promise, I cannot fulfill this promise, and here is why I can’t do it, or we will have to delay this promise.’ A promise delayed is not a promise denied.”

While the government ended the last fiscal year with revenue intake at $1.8 billion, it is unknown how much remains in the Treasury.

Sumner said the public must consider that there may be some priority items the government has to pay attention to that they might have not been aware of while in opposition.

“But now that they are in government, all the books are open, their eyes are opened and they are going to be enlightened about the realities of the situation and when that happens, they are going to find that many of the promises that have been made will have to be adjusted or they will have to be deferred, not deferred indefinitely,” he said.

“But I think one of the successes that this government is going to have to rely on is the promise of transparency and accountability, and that is being able to – and I was very delighted that both the prime minister and deputy prime minister elucidated on this – that they will have to come to the public to be honest with the public, let the public know what they can and cannot do, let them know the realities of our situation and let them know that we have a plan and a measure in place to address these issues. But do not expect that we will see a hospital built within the first year, that is totally impractical. Do not expect that we will see the economy turn the corner in the first 12 months, that is totally impractical.

“You cannot turn a ship around in the ocean on the drop of a dime, that takes maneuvering and the economy of The Bahamas may take some heavy lifting, it requires what I have termed before as some tug boat assistance and the tug boat assistance will come from the private sector and helping the government to navigate through these perilous waters and finding ways we can get back into safe harbor with the economy. So, we should not, as an electorate, yes we expect the government to live up to their promises, but let us also be realistic about it and let’s be reasonable about it, that there are some things the government just won’t be able to do in the first year or two of their administration and some things may even take up to the first five years. But it is important for them to set milestones and live up to those milestones as best as they could, and when we have to be changing timelines and shifting goalposts, then say that to the public.”

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