NASSAU, BAHAMAS — A day after Minister of State in the Office of the Prime Minister Myles LaRoda foreshadowed a 1.5-2 percent increase in National Insurance Board (NIB) contributions within the next year, Prime Minister Philip Brave Davis said the measure will be a “last resort” so as not to place an additional burden on the backs of Bahamians until the government can provide some relief.
In a recorded statement, Davis said: “I know what the Bahamian people are experiencing. These are difficult times and it would be a last resort for me to put any more burden on their backs.
“The actuaries over the last 10-15 years have been predicting that the fund is jeopardized because of us not having raised contributions to NIB. Recommendations were being paid from 2003, 2004, that we should raise the contributions.”
Davis said: “Yes, we are at that watershed moment. But I am not going to at this time put any further burden on the Bahamian people.
“We will see how we could be innovative and creative to ensure that we do not do or embrace such an initiative until we have brought the relief that is necessary to allow that to happen.”
On Tuesday, Minister of State in the Office of the Prime Minister Myles LaRoda while Cabinet had not made a decision, he would not be surprised if the increase was implemented within the next year to stabilize the fund as payouts continue to exceed contributions,
The minister noted that he was in possession of an actuarial ILO report that indicated the fund would be depleted in six years and recommended an increase in contributions.
LaRoda said the government was prepared to make the “tough decisions” as it would be a shame for individuals who have contributed to the fund over the years “not to be able to receive their benefits at their time, and so, we are prepared, willing and able to address this concern”.
Yesterday, the prime minister said LaRoda was “just speaking the facts as what was said in the actuary report”.
“They are recommending and they are urging that we do so,” Davis said.
“And as was his duty he is bringing that report to Cabinet for us to look at it and discuss it. We will consider it. But in so far as what my views are on it, it’s not going to happen, not now. Not until we have brought the relief to our Bahamian people and we have put to bed some of the issues that can’t make them sleep when they go to bed.”
