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Showing posts with label Hubert Minnis Bahamas. Show all posts
Showing posts with label Hubert Minnis Bahamas. Show all posts

Tuesday, February 24, 2015

Dr. Hubert Minnis - The Bahamas Official Opposition Leader is grossly and irredeemably incompetent as party leader as he continues to implode

Dr. Hubert Minnis: From very bad to much worse to disastrous


Within the first two months of 2015, Opposition Leader Dr. Hubert Minnis has caused as much or perhaps even more damage to the FNM as he has over the previous two years-plus. His performance has not improved. He has gotten dramatically worse. We are witnessing a political wreck of titanic proportions as he continues to implode.

Even some who supported his recent election as party leader are exasperated, having second thoughts: “Too many mistakes too soon”.

From the Bank of The Bahamas (BOB) episode to abandoning a party conclave to an extremely damaging senatorial firing and appointment fiasco – all within a matter of mere weeks – Minnis has proved beyond a shadow of a doubt that he is grossly and irredeemably incompetent as party leader.

The party is hemorrhaging support from core supporters. Many die-hard FNMs have decided that they will either not vote at the next general election or will vote DNA because they cannot bring themselves to vote PLP and they cannot support the FNM under Minnis. The party is in a crisis of grave proportions.

Minnis has drafted a fatal political calculus. Not only has he failed to rally the party’s base but he has also alienated much of that base. He continues to divide the party because he seems incapable of sincerely reaching out to opposing voices beyond platitudes of unity. A demoralized base and wider disaffection multiplied by disunity equals electoral disaster.

Since January, the party’s fortunes have been sinking weekly, fortunes which cannot be recovered under Minnis, whom arguably the bulk of the electorate has now written off as hopelessly and irretrievably out of his depth.

Having organized and begged for a second chance to prove himself and granted a reprieve, Minnis inexplicably imploded in breathtaking speed. His actions bespeak a noxious concoction of unwarranted arrogance and inexhaustible political stupidity.

He and some avid supporters typically blame the news media, critics and others for his problems. Their criticisms are misplaced. His unending and mega-blunders are all self-inflected wounds, the result of arguably the worst political and policy judgment of any opposition leader since the advent of party politics. His political judgment is hopelessly flawed.

Dumbstruck

It was not just the dull, vision-deprived, droning and dreadfully-delivered New Year’s address. On top of this was the failed BOB march and Prime Minister Perry Christie’s subsequent withering assault on the opposition in the House of Assembly as Minnis sat dumbstruck, clueless and speechless.

It is unthinkable that Sir Cecil Wallace-Whitfield, Sir Kendal Isaacs, Henry Bostwick, Hubert Ingraham and other opposition leaders would have sat so passively, dazed, out of their depth, unable to defend their party and themselves as they were getting licked with verbal two-by-fours – and over an issue where the governing party is acutely vulnerable. Absent his cue-cards and those who cue his actions, the leader of the opposition was clueless.

This was a singular test of Minnis’ leadership. He failed – spectacularly. It is his failure alone. He cannot play the victim. His colleagues and rank-and-file FNMs were left leaderless on the field of battle as PLPs made sport of the FNM.

Minnis has demonstrated that he never possessed, does not now possess, nor will he likely ever possess the critical skills necessary to be an effective opposition leader, much less prime minister.

Those still nurturing the fantasy that he can be groomed for either office are living in a dream world that is resulting in nightmarish prospects for the FNM. Six months more will make no difference.

How much more support does the FNM have to hemorrhage before it becomes so anaemic and weakened that it will have no time to recover its electoral prospects? The good doctor is clearly not good for the recovery and health of the FNM.

Question for those who reluctantly or self-servingly organized and authorized his reprieve: How did you blindly imagine that things would be different?

In January, Minnis invited the party’s top brass as well as representatives from every constituency, a total of approximately 200, to a conclave convened to unify the party and to chart a strategy going forward.

Inexplicable

Then in one of the more inexplicable, supremely arrogant and politically stupid acts in modern Bahamian politics, he blew off the second day of the conclave to attend Junior Junkanoo in Eleuthera.

Wearing a pharaonic crown, he rushed his way into the political almanac, becoming, it appears, the only head of the FNM or PLP to abandon a conclave of his own party. Sir Lynden Pindling, Ingraham nor Christie would have pulled such a dismissive stunt. Then again he is not remotely in this league.

What made Minnis’ Eleuthera escapade even more bizarre is that the flight to the island is short and the event was held at night as seen in the photo inexplicably publicized by his team.

Party Chairman Michael Pintard unhelpfully advised that Minnis agreed the Junkanoo date earlier, suggesting that the latter is so gravely incompetent as to be unable to do basic scheduling.

Minnis likely abandoned the conclave for the very reason that he could not respond to Christie when challenged on the BOB march: he was hopelessly out of his depth and had no idea what to say.

Instead of embarrassing himself by speaking unscripted he went mute in the House and fled the conclave. He is petrified of speaking unscripted. When he does, it is usually an unmitigated disaster. He seems to like instead to use subterfuge and politically subterranean tactics to advance his ends.

Despite the abysmal record of the PLP, the FNM is now in worse shape precisely because of Minnis’ re-election. Having witnessed his previous disastrous two plus years, and horrified at his mega-blunders so far this year, voters and FNMs at large have surmised that the party cannot be taken seriously.

The albatross strangling the political fortunes of the FNM was and remains Minnis, replete with his jumble of grave insecurities, autocratic and non-collegial leadership style, vindictive actions and incomprehensible incompetence which often makes even a bumbling Perry Christie seem like a model of political leadership.

All of which may be seen in his senatorial firing and appointment fiasco, a case study in Minnis’ flawed leadership. Every step along the way was a blunder. To begin with, senators should not have been appointed with a de facto time limit. This makes a mockery of the Senate which is the Upper House of Parliament signified by the fact that its members carry the title of honorable.

Bungled

After the recent convention, the brooding Minnis seemed to have drawn up an enemies list of those not personally loyal to him. In what appears a highly vindictive move, Heather Hunt, a well-regarded political talent, was unceremoniously dismissed because she reportedly backed Long Island MP Loretta Butler-Turner. Her firing was bungled. Will Minnis now seek to push aside, punish and deny nominations to those MPs and aspiring candidates who did not support his election?

His excuse for the dismissal of Hunt unwittingly put at risk the Senate tenure of a purported supporter in the person of Senator Kwasi Thompson, a fine person and a competent parliamentarian, who people now expect to be replaced based on Minnis’ proffered rationale for dismissing Hunt.

Minnis is incapable of dealing with internal opposition and unifying the FNM because of such paralyzing insecurities. He is making the same mistakes as before. He knows no other way. This pattern is so entrenched that he seems incapable of genuinely changing it, incapable of bringing the FNM “all together”.

Minnis allowed the appointment of a new senator to spin out of control and to become a public spectacle. Instead of effectively mounting an opposition to the government’s mass of mistakes, the FNM has remained on the defensive.

He appears to have courted the hotel union president as the new senator. This was another mind-boggling mistake, with obvious potential conflicts of interest.

There are reports that he offered the appointment to former candidate Monique Gomez and then reneged on the offer. In the event, his appointment has alienated scores in the party including senior figures, some of his supporters and many in the Women’s Association.

The appointment to the Senate of a novice with a meteoric rise, thanks to Minnis, and with little stature and bona fides in the party, has distressed many. It may prove Minnis’ worst blunder yet. Her initial comments, even before her swearing-in, have been inauspicious and problematic, including her dismissal of members of the Women’s Association as “emotional”.

Those who thought that Minnis’ paralyzing weaknesses were malleable and could be mitigated will be proved wrong time and again. He will often continue to coo the right things to certain individuals and then do the wrong thing. It is now up to key members of the party and the rank and file to change direction before it is too late.

Collectively, Minnis’ string of disasters constitutes an overwhelming case for change as soon as possible.

 

frontporchguardian@gmail.com, www.bahamapundit.com.

thenassauguardian

Monday, November 18, 2013

A note to Hubert Minnis on value-added tax (VAT) in The Bahamas ...and how we got there

VAT How we got here

A note to Hubert Minnis


By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
Nassau, The Bahamas


Amid what appears to be a growing public tide against the July 1, 2014 implementation of value-added tax (VAT), Free National Movement (FNM) Leader Dr. Hubert Minnis has finally released a position on this contentious issue.

It came as pressure grew within his party for the official opposition to make a clear statement on what would be the most dramatic shift in tax policy in decades.

The statement Minnis came up with is stunningly shallow. It lacks intellectual rigor and shows a startling lack of vision and leadership, all of which we desperately need at this stage of our development.

That is surprising in the sense that he should have access to the facts and to sound advice from qualified and knowledgeable people within his own party.

Given how long it took him to release a statement, he should have had adequate time to formulate a more reasoned position that could be taken seriously and add value to the ongoing discussion on tax reform.

But given his record on matters of serious import (for example, multiple positions on gambling), no one should be surprised that his sole approach is to attack the government on its plans without presenting a well thought out contribution to this growing debate with accompanying proposed policy alternatives.

It seems once again that the opposition leader has gauged the direction of the wind and formulated his position based on the mood of the country. But be mindful that his position could shift again with any sudden temperature change or change to the national tone.

Minnis, who 18 months ago sat as a minister of government, called on the current administration to immediately “come clean to the people, and to explain, precisely and clearly what the circumstances are which have prompted this sudden lurch towards the imposition of VAT”.

It is worrying that the official opposition leader does not know the answer to this question.

Minnis is operating as someone who only entered the political arena in May 2012, distancing himself from the actions of the former administration.

He pretends instead to be blind to the fiscal circumstances of the day, but more importantly to the fiscal realities that existed while he was a minister of government, and the decisions taken to address those realities.

While no one should excoriate the FNM leader for setting along his own path and defining his own leadership style, he and his party are saddled with their record in office.

They cannot run from the decisions taken by the FNM administration — the good and the bad ones.

If as opposition leader Minnis does not know what the circumstances are that have prompted this “sudden lurch towards the imposition of VAT”, he might be ignoring easily available facts.

Progressive Liberal Party (PLP) Chairman Bradley Roberts has gone as far as saying Minnis might be suffering a case of memory loss.

“How else [do you] explain his scolding for a debt crisis created by his own party?” Roberts asked.

“Or was Dr. Minnis asleep at the Cabinet table when his government approved, borrowed and spent over $2 billion in five years, running up the national debt and pushing the country into this current fiscal dilemma?”

If Minnis is not sure how we got to where we are, he might find it useful to do a bit of research and examine the facts of the country’s debt levels.

This might jog his memory.

In August 2011 when the international credit rating agency Moody’s downgraded its outlook for the Bahamian economy from stable to negative, it pointed to the significant run up in government debt levels in recent years and the country’s limited growth prospects.

Moody’s noted that debt rose steadily between 2000 and 2008, but over 40 percent of the increase occurred between 2009 and 2011.

Government debt at the end of June 2011 was estimated at $3.5 billion. It has continued to grow. It is projected to be $4.9 billion when the government implements VAT next July.

This is unsustainable. We are in crisis.

Had the Free National Movement been re-elected to office last year, we would have been facing the same urgent need to tackle our debt, and reform our narrow and inefficient tax system.

Reform

Before Minnis twists himself into an impossible situation and puts his credibility on the line, perhaps he ought to have a discussion with former Minister of State for Finance Zhivargo Laing, his former Cabinet colleague, who helped engineer fiscal policies under the Ingraham administration.

Laing has not hidden the fact that the FNM had planned to implement VAT within “two to three years” if it had won the election last year.

The PLP administration is seeking to do it at the start of its third year in office.

Laing said more recently, “In office, we certainly looked at implementing it and if returned to office would have given it early consideration. However, we would have also given it broad consideration in the context of the wider reforms to our tax system that we were already undertaking.”

So Minnis’ own party was eyeing what he now calls a “regressive” taxation system. He may wish to examine why his party also thought this regressive tax was the best option.

He now warns that VAT would “seriously impair the already weak, uncompetitive and struggling Bahamian economy and harm and diminish the quality of life of every Bahamian”.

Unlike Minnis, Laing does not run away from the fact that the Ingraham administration piled on the debt.

The pace was dizzying.

Laing noted in a speech to the Rotary Club of Freeport in August that, “A country can borrow to cover its deficits for a long time, for decades and decades.

“It can even do so increasing its debt to GDP ratio to extraordinary levels, above 100 percent, but the price to pay for this is reduced ability to afford products and services (education, infrastructure, technology, etc.) that could lend to a more prosperous, efficient and peaceful state.

“Minimizing deficit spending is good government policy, especially in times of economic growth.”

The former government has been sure to provide a clear explanation that the high level of borrowing was needed in the face of a dramatic downturn in the global economy.

That explanation has been arguable, as the PLP accused the Ingraham administration of taking actions to worsen an already bad situation.

While prime minister, Hubert Ingraham had said often in his last term that without borrowing the government would not have been able to do simple things, like pay the salaries of civil servants.

Minnis ought to know that we are now suffering the fallout of sky-high deficits and annual borrowing.

To be clear, the vast majority of the resolutions to borrow were approved in Parliament by the then opposition led by Perry Christie.

Nobody likes to hear of new taxes, and so VAT and tax reform was not a prominent theme of the 2012 general election campaigns.

Upon coming to office, the PLP itself feigned surprise at the state of public finances. With that excuse in hand, it continued to borrow, saying it needed to do so to deal with the problems it inherited from the Ingraham administration.

“The fiscal accounts are in much worse shape than we had expected as we came into office,” Prime Minister Christie told the House not long after the May 2012 general election.

“In our very short time in office, it has become clear to us that the previous administration has, through its actions and fiscal policies, constrained our room to maneuver.”

In May 2013, the Christie administration brought a resolution to the House of Assembly to borrow $465 million to finance the projected revenue shortfall in the 2013/2014 fiscal year.

This added to the $650 million the new government borrowed in its first year.

Government debt as a percentage of GDP is projected at 56.4 percent at the end of 2013/2014.

Christie advised that much of the money the government borrowed last year was required to cover unpaid financial commitments incurred during the Ingraham administration.

“The legacy of high public deficits and spiraling debt burden that we inherited is brutally onerous: almost one out of every $4 in revenue collected by the government must be allocated to pay the interest charges on the public debt and cover the debt repayment,” he said.

“Had we chosen to ignore the grave structural imbalance in the public finances, the debt would have continued to spin out of control.”

This year, the government will spend an estimated $230 million on debt servicing alone.

While it is true that the PLP claimed to have immediate but unrealistic answers to attack our fiscal and economic woes while on the campaign trail, it is not on its own responsible for the current state of affairs.

It matters not at this juncture who is to blame, however. What is required now is reform to arrest the growing unsustainable debt levels.

As stated by Laing in his address to Rotary, “If you want to punish those who drive up cost through waste or bad decisions, then do that at election time, but know that the cost still has to be paid by the citizens.”

Minnis may wish to read and carefully consider that useful and informative address delivered by Laing.

In the speech titled “VAT and its implications for The Bahamas and the Bahamian economy”, Laing pointed out that the government needs cash and it needs it badly.

“We are in discussions about VAT implementation because there is a glaring reality confronting The Bahamas, which is that its income cannot pay for its operations,” Laing explained.

“It has not done so from The Bahamas became an independent nation. We have run deficits and financed those deficits with borrowings since 1974, when we ran a deficit of some $33 million. Incidentally, we had a surplus of about $3 million the year before that, the last such surplus seen on total budget performance.”

Laing continued, “In the wake of the crippling effects of the global recession of 2008 and the strain it put on the revenue of the government, our deficit spending has reached extraordinary levels, which is unsustainable, especially in light of the modest growth seen both in terms of the world’s economy and our domestic economy so dependent on it.

“The government needs money to pay for its expenses, and it needs money badly. That is why VAT is being discussed with the sense of urgency that it is being discussed today. In 1995 when the issue first arose, it was being discussed as a planning function; today it is a practical issue of money.”

Details

The Nassau Guardian last week reported on the government’s proposed VAT bill and regulations. It is not clear when these will be brought to Parliament.

The debate cannot be vibrant and well informed without the official release of what is being proposed.

Minnis has said the PLP should immediately disclose to the Bahamian people the details of any economic studies and analyses either by domestic or international advisors or agencies that have led the government to this proposed course of action.

Many people are indeed awaiting the release of an economic impact study to show specific projections resulting from the VAT implementation, including the projected cost of living impact.

Financial Secretary John Rolle said last week that the cost of living is expected to rise between five and six percent in the first year. There were no details to show how these figures were arrived at, and there were no projections provided for cost of living increases in subsequent years.

This year is almost ended, and the government will have six months to clearly make its case, to seek to calm frayed public nerves, and cause for a smooth implementation of the new tax system.

That is ambitious.

Anecdotal evidence suggests the government is losing, not gaining support from the public on its push toward the implementation of VAT.

Its marketing of the initiative is on shaky ground, and it is only now just starting its public education campaign.

While there is an urgent imperative to act, it appears that on its current track, the new tax system could be off to a chaotic and undesirable start — a difficult birth, as we opined here previously.

What the government needs now is a more community based VAT campaign and a bit more time to get the message out.

It might be in the interest of everyone to push off the implementation date by a few months. It would allow the business community and consumers to better digest the details of VAT.

And perhaps it would give the opposition leader a bit more time to better understand how we got to where we are.

We hope it would also give the government a little more time to present a tax reform package that has buy-in from the opposition.

On a matter this grave, such a buy-in could only be in the national interest.

thenassauguardian

Thursday, November 14, 2013

Questions for Doctor Hubert Minnis on Value Added Tax (VAT) in The Bahamas

By Dennis Dames
Nassau, The Bahamas:






I have read The Nassau Guardian article today entitled: Minnis blasts government on VAT.  It is my view that the perspectives expressed by the Honourable leader of Her Majesty’s loyal opposition and my MP, were hypocritical, and amount to rock and bottle politics.

Therefore, I have some questions for Doctor Minnis.  Where were you sir, and what did you have to say in May of 2004 when the government of the day announced the process of preparing a white paper on sweeping tax reforms of The Bahamas’ tax system?

Where were you, and what did you have to say in 2004 when the Value Added Tax (VAT) experts from the UK-based Crown Group were here to perform a review of our tax system?

Where were you, and what did you have to say then, when The Bahamas was signing the Economic Partnership Agreements (EPAs) with the European Union, between 2002 and 2007.

Where were you, and what did you have to say then, when The Bahamas made application to join the World Trade Organization (WTO) in 2001?

Where were you, and what did you have to say when your party chairman, Mr. Darron Cash  recently stated publicly, that the FNM had plans to implement Value Added Tax (VAT) in three years or thirty-six months, if the party had won the 2012 general election?

What is the Free Nation Movement’s (FNM) plan to plug our menacing, destructive and continuous fiscal deficits?

Do you think that The Bahamas need a broader tax base, in order to control our outrageous deficit spending?

When will it be an ideal time for us to get together and address our national budget, revenue and deficits; if this is not the right time?

Are your personal business interests and those of the FNM’s elite base conflicting with your political judgement and commonsense?

I’m looking forward to your reply, Doc.

November 14, 2013

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