The Minister of Foreign Affairs and the Public Service Fred Mitchell said Wednesday that the withdrawal of financial institutions like Lloyds Bank from the country points to former Prime Minister Hubert Ingraham’s “huge mistake” in enacting financial legislation without proper consultation.
Mr. Mitchell said that the changes in the financial sector as a result of Mr. Ingraham’s actions will undoubtedly put pressure on the public sector to provide jobs.
In December 2000, Parliament passed a package of financial legislation in response to the blacklisting of the Bahamas by the Organization for Economic Cooperation and Development and the Financial Action Task Force.
But the Bahamas Bar Association and two independent attorneys are challenging those laws, claiming that they are unconstitutional.
On Monday, the Court of Appeals ruled that the lower court must grant an injunction to prevent inspectors of the Compliance Commission from inspecting the files of attorneys.
Some politicians – like Mr. Mitchell – have slammed the former government for caving into international pressure and passing the laws.
Mr. Mitchell said the pending closure of Lloyds “really should demonstrate to the Bahamian public the huge mistake that was made by the former Prime Minister by putting in place legislation without proper consultation with the sector and the Bahamian people.”
Minister Mitchell made the statement during a press conference at the Ministry of Foreign Affairs to announce the Third Annual Public Service Week, which is scheduled for October 26 to November 2.
He said that his colleague, Minister for Financial Services and Investments Allyson Maynard-Gibson, has been working tirelessly to ensure that the financial services sector is protected.
“It is a matter to us of deep regret that events have unfolded the way they have,” he said.
On Tuesday, officials of Lloyds Bank announced that they will close their Bahamas-based operations with a year. This move will displace about 50 workers of the bank.
Lloyds officials blamed current global economic conditions for the decision.
Permanent Secretary in the Ministry of the Public Service Irene Stubbs revealed the events that will commemorate Public Service Week.
The week begins on Saturday October 26 with a float parade and includes a service of thanksgiving, an appreciation luncheon and an awards ceremony and cultural show. On Saturday November 2, events will culminate with the Public Service Sports and Fun Day.
On the issue of Public Service Reform, Minister Mitchell said that initially he will focus on human resource development. More specifically, human resource policy and the way people are treated in the service. The delivery of service to the public is the second immediate objective on Mr. Mitchell’s agenda.
He also indicated that the two aspects are inter-related.
“To some extent the delivery of service issue is related to the human resources issue because clearly if people are not happy working on their jobs then that affects job performance,” Minister Mitchell said.
The Minister made reference to the new leadership of the Bahamas Public Services Union (BPSU). He congratulated the President John Pinder on his victory and reaffirmed his pledge to work with him in trying to solve all issues.
“From our point of view, the climate that should be in the public service – and to me this should apply in the private sector as well – is a climate that recognizes that although managers must manage, this is not a military command structure,” Mr. Mitchell said.
He added that in order for the public service to work effectively it, there must be consultation with union representatives.
“Every decision which is carried out must be informed by those consultations with the union at every stage,” he said.
Minister Mitchell reiterated that a freeze on hiring in the public service is in effect due to a 10 percent or more shortfall in projected government revenue.
He said that he was not in a position to say when the freeze would be lifted.
“It really is a sad thing for a government to have to be dealing with this,” he said.
By Julian Reid, The Bahama Journal
