When the Bahamas takes over its airspace, presently controlled by U.S. air traffic controllers, the Public Treasury could collect up to $50 million annually, Prime Minister Perry Christie said Wednesday.
While the Bahamas maintains “sovereign” control of the airspace over the Bahamas, he indicated, air navigation requirements of overflight aircraft are presently provided by U.S. controllers, with their Bahamian counterparts primarily providing “Approach/Departure Control” and limited “Enroute” services within a designated area.
Delivering his Budget Communication in the House of Assembly, Mr. Christie said that a Canadian team is assisting the government with a view to introducing a Flight Information Region (FIR), which will become the exclusive responsibility of Bahamian controllers.
“We are in consultation with Canadian consultants over the putting in place of the necessary facilities,” in addition to providing some 120 high quality job opportunities for Bahamians, Mr. Christie said.
Expected revenues of $40 million to $50 million could be earned at no additional expense to tourists, or others doing business within The Bahamas, he said.
Mr. Christie said that in the 2003/04 Budget, the government is making a provision of $5 million as the estimated net revenue arising from the new arrangements.
“This new source of revenue,” he continued, “taken in conjunction with expenditure moderation, with revenue buoyancy as the economy expands and with very much firmer revenue enforcement measures to counter fraud and evasion, presents us with the possibility of eliminating the GFS deficit within a reasonable period of years without the necessity for more revenue measures, which would impact the Bahamian people.”
According to the Prime Minister, if this opportunity were not taken, it would be necessary to impose additional revenue measures in the very near future or run the risks associated with the accumulation of GFS deficits and a high level of government debt.
Mr. Christie said that the Recurrent Revenue Estimates for 2003/04 amount to $1,005 million, as compared with the projected outturn of $910 million in 2002/03. This was an increase of $95 million. He said that his government believed that $30 million would come from increased revenue yield through buoyancy, and as the capital investment projects announced come onstream and the economy strengthens.
“A further $30 million will come from improved administration,” Mr. Christie said, “because we are serious about our intentions to deal with tax fraud and cheating. An additional $15 million will come from the sale of shares in Cable Bahamas and the Bank of The Bahamas and go to the National Insurance Board to facilitate the Board in diversifying its investments.”
An additional $15 million would accrue from increasing the whole range of fees for government services, excluding Business Licence fees, he said.
By Tamara McKenzie, The Nassau Guardian
