NASSAU, BAHAMAS — Central Grand Bahama MP Iram Lewis yesterday called on the government to present its mitigation plan for Bahamians amidst the ongoing Russian-Ukraine conflict that is expected to impact the global cost of living.
During his contribution to the 2021/2022 mid-year budget debate, Lewis urged the government “act fast” to address the burgeoning issue.
Russia invaded Ukraine on February 24 and is continuing brutal airstrikes and bombardment on Ukrainian citizens.
As a result of the ongoing crisis, the price of crude oil has increased by over $100 per barrel for the first time since 2014, and gas prices in the country are expected to reach as high as eight dollars a gallon.
“Can you imagine what residents on Grand Bahama and the Family Islands — who are already experiencing high gas prices — will be faced with?” Lewis charged.
“This vast increase could essentially affect electricity costs, cost of transportation, costs of travel, cost of importations, cost of food and overall increased cost of living.
“This is combined with the shipping and logistical issues that have led to increased shipping costs amidst the ongoing COVID-19 pandemic.
“Not to mention the unnecessary burden of value-added tax (VAT) on breadbasket items, insurance, baby food and products, medicines, and feminine products that were previously zero-rated under the former administration.
“It will be the poorer households that will bear the brunt of these rising prices.”
Countries across the globe have been implementing multiple sanctions on Russia in order to pressure them to stop their assault on Ukraine.
The latest hit to the Kremlin has been to Moscow’s oil exports with the United Kingdom announcing that it would phase out Russian oil imports by the end of 2022 and the United States confirming a ban on Russian oil, gas, and coal imports.
The Office of the Attorney General and regulators of the financial services sector have issued orders to businesses not to engage in dealings with Russian and Belarusian entities that are subject to international sanctions.
Prime Minister Philip Davis has said that the imposition of the sanctions will likely have a further impact on our economy and there will more than likely be increasing inflation pressures in the upcoming fiscal year.
Lewis yesterday likened the government to “a deer in headlights”, insisting that they see the problem coming but are not making any effort to avoid it.
He asked whether the Davis administration has begun to take any steps to mitigate the pending effects of the crisis.
“The Bahamian people simply want answers,” he said.
“They deserve a government that has the foresight to ensure these fail-safes are in place.
“Perhaps this new administration can seek to act before it is too late. We already know what the possible implications of yet another hit to the country’s economy could be. The government must act fast.”
He pointed to announcements made by Turks and Caicos and Barbados this week advising of relief packages for citizens, reduced gas prices, and VAT removal on certain items due to global inflation and the ongoing war.
“We shouldn’t lay in wait as our regional partners lead the way to deploy their own strategies unless this administration simply has no new ideas outside of being a ‘copy and paste government,” Lewis continued.
“I call on this new day administration to present their mitigation plans for social service assistance, food security and inflation protection for Bahamians as the Russia-Ukraine war rages on and the implications of the twin tragedies deepen.”
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