NASSAU, BAHAMAS — Opposition Leader Michael Pintard yesterday called on the government to indicate the source of its calculation of the outstanding debt profile caused by climate events.
Last week, Prime Minister Philip Davis said more than 50% of the country’s outstanding debt can be linked to the impacts of the hurricanes between 2015 and 2019.
Davis spoke at the Opening Plenary Session of the Caribbean Regional Heads of Government Meeting in Preparation for the United Nations Climate Change Conference of The Parties 27 (COP 27), on August 16.
Yesterday, Pintard said the Opposition supports the Davis Administration in its efforts to bring attention to the impact of climate change on the Bahamas and other vulnerable small island developing states (SIDS).
“However, we in the FNM call on the government to indicate the source of its calculation that 50 percent of the outstanding debt profile of $12.1 billion was caused by climate events between 2015 and 2019,” Pintard said.
“At the beginning of fiscal year 2015/16 the public sector debt stood at approximately $5.4 billion. To conclude that 50 percent of our current outstanding debt came from climate events would mean that almost all the growth in the debt in that time would be attributable to climate change events that happened between 2015 and 2019.”
Pintard said the calculations clearly leave out the fiscal effects of the pandemic and the unprecedented steps that the then government had to take in order to support tens of thousands of displaced people while supporting the economy.
“The initiatives were supported unanimously by the then PLP in opposition and contributed substantially to the increase in the debt profile,” he said.
“We accept that climate change events over the years have caused restoration efforts and revenue losses that have caused the country billions of dollars in necessary borrowing. But we believe it is important that the government maintains its credibility in its public statements. It is thus important that the government substantiates its claims on the fiscal impact of the climate events or clarifies its statements.”
Pintard said: “More important than that, the government must move past bemoaning the situation and get on with the job of governance. We call on the government to lay out its detailed plan to improve the fiscal and economic situation and put the country on a solid foundation for sustained and inclusive economic growth. We also expect to see the plan to address the effects of climate change to ensure more robust and resilient infrastructure and greener means for generating power.”
