Contributing to the parliamentary debate on the Foundations Bill, Mr. Roberts forecasted that the airline’s annual debt would be significantly reduced by the end of this fiscal year.
“Revenue will go from $65 million in 2002 to $66 million in 2004 and possibly as much as $78 million in 2005,” said Minister Roberts.
“Expenses are declining from $91 million in 2002 to $80 million in 2004 and (a projected) $76 million in 2005.”
According to the Minister, annual losses, which were as high as $25 million in 2002 are expected to be lowered to $14 million this fiscal year. By 2005 the figure could be reduced to $5 million.
“Bahamasair is moving in the right direction,” asserted the minister.
“In my government’s effort to truly secure the foundation of Bahamasair there is nothing inept or directionless about the remedial action or enhancement required to produce these impressive results. I anticipate that the future holds substantial reduction in the level of funding for Bahamasair from the public treasury.”
Also contributing to the debate on Wednesday, St. Thomas More Member of Parliament Frank Smith expressed confidence that The Bahamas could re-emerge as the regional leader in the financial services industry within as little as one year.
According to Mr. Smith, however, the country would have to move proactively and make key adjustments to the nation’s number two industry, like upgrading the legislative framework.
He also warned that the product offered to clients would have to be of a high standard.
“One thing that we have to be very aware of in financial services is that there are no patterns,” Mr. Smith said.
“The truth is that if you’re not moving forward and staying ahead of the curve then you’ll always be left behind as we’ve seen. The only constant is that people require a level of service that is impeccable and if you’re not giving it to them then they will leave.”
Questioning what impact the Organisation for Economic Co-operation and Development’s blacklisting of The Bahamas in 2000 actually had on this jurisdiction, Mr. Smith challenged industry officials to remain abreast of new developments and creative financial instruments that could attract new clients.
According to Mr. Smith, while The Bahamas experienced a marked decline in the level of business in the financial services industry following the OECD action, many of this country’s competitors realised an increase in business.
“That ought to say something to people in this country. What it says to me is that we either overreacted, didn’t change fast enough or we just simply became irrelevant.”
Supporting the Bill for an Act to Permit the Establishment of Foundations, the St. Thomas More MP said one of the methods by which the government plans to help transform and stabilise
Darrin Culmer, The Bahama Journal
