By ERIC ROSE
Bahamas Information Services
#NASSAU, The Bahamas, November 4, 2022 – While making his Contribution on the Minimum Wage Increase 2022 in the House of Assembly, on November 2, 2022, Prime Minister and Minister of Finance the Hon. Philip Davis noted that, although his Government cannot prevent global events from having a local impact, it can “stand in the gap” and ease the burdens of the Bahamian people.
“It has been clear for a long time, to anyone paying attention, that the minimum wage was far too low,” Prime Minister Davis said. “When we came to office, we immediately started planning and negotiating to raise the minimum wage.
“We did not hesitate,” he added. “And we did not let the fiscal and economic crises we inherited stand in our way.”
Prime Minister Davis pointed out that, with the passage of that Bill, the minimum wage would increase from $210 to $260 per week. In the public sector, he added, the raise was retroactive, going back to the past July. In the private sector, the increase would begin in January, with the extra months allowing businesses to plan and prepare.
“Fifty dollars more each week will not eliminate the economic strain on families; but it is something — $200 more a month towards food, or school fees, or rent, or peace of mind,” he said.
“It is progress on the path to a livable wage,” Prime Minister Davis added. “It’s been a long time since the minimum wage was last raised — seven years ago, in fact, in 2015.”
He noted that his Government was “very careful” to negotiate a minimum wage that would not slow down job growth; and were “very mindful” of pressures facing Bahamian businesses.
“Similarly, when we added diapers and more food items to our price control list, we are signaling to businesses that we expect the savings from reduced customs duties to be passed on to Bahamians,” Prime Minister Davis said. “Business owners will still make a profit, just a little less than they would otherwise.”
“We have listened to their concerns, and we have been flexible about some of the details,” he added. “We will continue to review the impact of price controls on both consumers and businesses.
“But the bottom line is, the costs of this global inflation crisis must be a shared burden, not one that falls primarily on Bahamian families working to get by.”
Prime Minister Davis said that the new price controls on medications were in effect, pharmacies would remain open, and his Government expected pharmacies to come into full compliance “in the coming days”.
“In raising the minimum wage and expanding price controls, my Government is holding firm in protecting the interests of the Bahamian people,” he said.
Prime Minister Davis said that his Government believed that the increase in the minimum wage would provide some measure of relief for working Bahamians, while a growing economy would allow businesses to adjust successfully.
He said: “The minimum wage increase is part of a larger set of policies intended to relieve cost-of-living pressures, including: reduced or eliminated customs duties on key items such as food, solar supplies, and building supplies; additional price control inspectors; free WiFi in parks across the country; an emphasis on affordable housing; and an historic investment in home-grown food.”
Prime Minister Davis added that, at the heart of all of his Government’s policies was the belief that every Bahamian deserved economic dignity and security.
“That is why we prioritized public service promotions and regularisations, and labour agreements with unions, including teachers and nurses,” he said. “That’s why we’ve provided relief grants to those who were particularly hit hard by the lockdowns.
“That’s why we’re investing in small businesses, and in expanding education and training,” he added. “That’s why we’re diversifying the economy, to broaden and deepen opportunities.”
Prime Minister Davis pointed out that his Government’s goal for the Bahamian economy went beyond recovery.
“I don’t want to turn back the clock – because, let’s be honest – there’s never been a time when our economy created enough opportunities for Bahamian advancement and ownership,” he said. “Returning to the past economy isn’t the goal.
“Creating a new, more inclusive economy is the goal.”
“Many Bahamians have achieved remarkable success, but thousands more can and should join them,” Prime Minister Davis added. “It is my fervent prayer that we all find common ground in a shared commitment to lifting up Bahamians and building a stronger and more resilient Bahamas.”
(BIS Photo/Ulric Woodside)