“FNM Seizes on Government’s ‘Cash Flow Crunch’” – The Tribune

In a striking revelation, the Opposition has jumped on comments from the Progressive Liberal Party’s (PLP) chairman, framing them as proof that the Government is grappling with a significant “cash flow crunch” while “taxing the private sector into oblivion.” Dr. Duane Sands, chairman of the Free National Movement (FNM), pointed out that Fred Mitchell’s message to PLP supporters not only sheds light on the administration’s “aggressive behavior” towards businesses but also confirms the “poorly-kept secret” of the Government’s liquidity challenges.

In a statement that could only be described as a candid admission, Mitchell characterized The Bahamas as being “in a tight economic squeeze.” He emphasized the Government’s reluctance to resort to international credit markets for foreign currency financing due to the heavy burden of debt service that would ultimately fall on taxpayers. He underscored the urgency of collecting every tax dollar owed to the Public Treasury, especially with the looming threat of hurricanes.

“The country is in a tight economic squeeze,” Mitchell declared. “We aim to pay as we go, avoiding borrowing unless absolutely necessary, especially with hurricanes ready to strike at any moment. We must gather every tax dollar before considering credit.”

Mitchell further lamented that while the poor and working-class citizens have been dutifully paying their taxes, some of the wealthier entities have managed to evade their fiscal responsibilities. “The PLP stands as their advocate, ensuring that everyone pays their fair share,” he insisted.

But let’s not forget the PLP’s tendency to circle back to their favorite refrain about “everyone paying their full share.” They aim to paint the FNM as the party of leniency, overlooking their own shortcomings in this arena. The recent reduction of VAT to 10 percent, while simultaneously removing it from essential items, raises questions about whether the poor truly have an advocate in this New Day, Old Way government.

Today, the FNM chairman responded to Mitchell’s comments, which admitted the country is facing a “cash crunch.” While some may have been caught off guard, many of us simply saw this as confirmation of what we’ve long suspected, despite attempts by the Minister of Finance and his team to keep it under wraps.

Naturally, the New Day, New Way government couldn’t take this revelation lying down. They swung back with a press statement denouncing the FNM as engaging in a “desperate attempt to mislead.” They unleashed a litany of grievances, from a 60% increase in VAT to failures surrounding the Oban deal, all while failing to clarify how the FNM’s statements were misleading.

They won’t disclose the outcomes of their VAT hikes, nor the stagnation of the Oban project, and they’re conveniently quiet about their consistent failure to meet fiscal targets. Why introduce truth into this narrative?

In their moment of fury, the PLP may have overlooked addressing the core issue or perhaps aimed to mislead the public themselves. They’ve attacked the FNM for “locking down” the country during the pandemic, while simultaneously labelling their opponents as “desperate.”

Amidst the PLP’s deflection, many are left wondering if it’s true that they owe their professional vendors six months or more in fees. The New Day, Old Way government seems to treat funds like a fleeting windfall, splurging at every opportunity.

While the PLP continues its assault on the FNM, claiming to advocate for those who owe their fair share, they should recognize that they must also acknowledge the FNM’s economic successes in its early years, such as reducing the deficit and improving the country’s standing with Moody’s and S&P and that the Free National Movement (FNM) i snot fighting against the initiative that both political organizations have not upheld over the years.

By neglecting to highlight these achievements and instead pushing their narrative, the PLP is, in essence, misleading the public. The failure of the Progressive Liberal Party stems from one fundamental truth: it’s simply in their nature.

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