NASSAU, BAHAMAS — Any increase in the National Insurance Board (NIB) contribution rate will be an extra burden on small businesses according to a well-known sector consultant, adding however “It has to be done.”
“It has to be done. It’s necessary,” said Mark Turnquest, president of the 242 Small Business Association and Resource Centre.
“We have no other choice now. It would be almost socially irresponsible if the government does not increase it although no one really wants to see an increase.”
Myles LaRoda, minister of state with responsibility for the National Insurance Board (NIB), warned earlier this week that if there is no raise in the contribution rate this year the National Insurance fund will lose $95 million.
NIB’s 11th actuarial review, published last year, recommended that the contribution rate be increased by two percentage points – from the current 9.8 percent to 11.8 percent – last July, with further hikes, implemented every two years through to July 1, 2036.
Turnquest acknowledged that many small businesses are already struggling with increases in labor and utility costs.
“We know that it will be extra burden on small businesses but you have to look at the bigger picture because all of us want to be able to access the benefits of the fund someday,” he continued.
“You can’t just keep kicking the can down the road. You could have a $120 million loss when you add in the other benefits. No businesses what to hear about any extra costs or increase right now but the government has no other choice. Businesses are going have norther choice but to absorb it and look at creative ways to become more efficient and lower their costs,” said Turnquest.
He added: “Government has to also be more efficient in terms of how they manage the fund and ensure that businesses small and large that owe NIB are made to pay off their arrears.”
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