NASSAU, Bahamas –The Bahamas government has announced an increase in the minimum wage as well as placing 38 new items under price control amid efforts to diversify the local economy that is so dependent on the tourism sector.
Prime Minister Phillip Davis addressing the nation on Tuesday night (CMC Photo)In a radio and television broadcast on Tuesday night, Prime Minister Philip “Brave” Davis said the minimum wage would be increased from US$210 to $260 a week, retroactive from the month of July for workers in the public service while workers in the private sector will benefit from the change in January next year.
Davis said the timeline is to give employers time to prepare for the increased expense.
“Nothing is more important that to helping families make ends meet than higher wages. The last time the minimum wage was raised in the country was 2015. A new increase has been long overdue,” Davis said.
“The higher minimum wage would benefit tens of thousands of Bahamians. Will the increase help? Yes it will. It was long awaited, long overdue and the extra money every week will make a difference.
“However, we are aware that this will not eliminate the hardship of trying to make ends meet in today’s economy. Instead it represents progress on the way to a livable wage. The wage was negotiated by the National Tripartite Council, which includes the government, representatives from the private sector and unions,” Davis said.
“Our shared goal was to raise the minimum wage that will have a negative impact on unemployment or job growth and we believe that has been achieved, Prime Minister Davis said in his near one-hour broadcast in which he also disclosed that as Bahamians continue to grapple with the high cost of living compounded by inflation, 38 new items will be subject to price controls.
Davis said that this means that the government will limit the wholesale and retail mark-up on items like diapers, and food including chicken, eggs, bread, bananas, apples, oranges, broccoli, onions, and potatoes.
He said these items are being added for at least a six-month period, following which the government will review and evaluate the impact on businesses and consumers. He said the profit margin on price-controlled drugs is also being reduced to provide additional relief to Bahamians.
“Our goal for the Bahamian economy goes beyond recovery. The goal simply can’t be to return to the way things used to be because, let’s be honest, there has never been a time when our economy created enough opportunity for Bahamian advancement and ownership. Returning to the past economy isn’t the goal, creating a new more inclusive economy is the goal,” he said.
Prime Minister Davis said that while many Bahamians have achieved ‘remarkable success, thousands more can, and should join them”.
He said that’s why his administration is expanding access to capital to encourage the growth of small Bahamian businesses, adding “that’s why we are starting to work with the private sector to smash through the glass ceiling that are limiting Bahamian advancement to leadership positions.
“That’s why we are taking steps to create a vibrant and innovative economy because we want young Bahamians to build their lives here at home,” he said, acknowledging that Bahamians of all ages deserve help in securing meaningful opportunities.
In his broadcast, Prime Minister Davis said that the COVID-19 pandemic “surely proved” that there is there is need to diversify the economy beyond tourism, telling the population “I want you to know we are fighting for a fair, unbiased treatment of our financial services industries”.
He recalled that in his address to the United Nations General Assembly last month, he said “Black governed countries matter and I meant it.
“We don’t want ….special rules, we just need a fair application of rules and I am always going to stand up for what is right. We have leveraged our expertise in financial services to expand beyond traditional finance and in just one year we are well on our way to becoming an important center for the crypto currency industry”.
He said to make sure that opportunities in this industry reach Bahamians, the government is unfolding training programs and entering into partnerships with digital companies as well as the Securities Commission and the University of the Bahamas.
During his broadcast, Prime Minister Davis said the Bahamas opted not to sign a declaration at the Summit of the Americas that suggested nations host undocumented people. At least 20 countries have signed the declaration, including Argentina, Barbados, Chile, Jamaica, and the United States.
“Let me repeat the Bahamas is not a signatory to this agreement. I made it very clear to President (Joe) Biden and other leaders that our country does not have the resources to bear this burden. We need to devote Bahamian resources to solving Bahamian problems”.
Davis said that there is no question that rising instability within the region “is a national security problem for the Bahamas that is why we are increasing patrols of known passage ways for human trafficking”.
He said technology is also being used to track vessels carrying illegal migrants and that ‘these measures make an important difference as our sea borders span thousands of miles and we need the United Nations to step up” and direct its efforts to do more to stop human trafficking at the source.
While he did not call Haiti by name, Prime Minister Davis said a message is also being sent out to people not to make the dangerous journey by sea only to be turned around again.
“To the extent that Caribbean Community can make headway on the ground where these very serious and tragic humanitarian situations are unfolding that would only benefit our country. The Bahamas will be part of the multi-country regional effort to address the emergency there.
“What we cannot do is absorb the problems of other countries here,” he told the nation.
