MOF-BUDGET Jun. 2016 | Page 19

One area that requires immediate attention and action relates to the vital improvements that are needed in our domestic business environment, as identified in the State of the Nation Report. Quite strikingly, The Bahamas ranks 106th of 189 nations in the World Bank Ease of Doing Business Index. of which roughly three quarters will be trade apprentices and one quarter technical/commercial apprentices. These will be High School graduates in the 17-19 year age group. Over the next 10 years, GBSL plans to recruit and train 400 skilled Bahamian workers into permanent full-time positions. Some of the areas of particular concern are: registering property, access to credit, starting a business and getting secure and lower priced electricity. We appreciate that improvements must be brought to these and other areas of the business environment and that our economic and social prospects demand such improvements. We are working diligently to that end. For instance, the office of the Registrar General has now implemented an efficient online process for the registration of companies. Modernizing Opportunities for Apprenticeships and Training for our Youth For its semi-skilled trades, GBSL plans to recruit and train 200 Bahamians in the 25-40 year age group over the next two years. The trades involved are blasters/ painters, riggers and scaffolders. At the end of the training period, the trainees will be assessed and certified by external, U.S. examiners and will then work alongside experienced workers for a 6-12 month period to become fully proficient in their respective trades. Mr. Speaker, Youth unemployment is another area of grave concern for my Government as prolonged idleness increasingly worsens employability and is conducive to illicit activity and crime. This is an issue that must be attacked on multiple fronts, beginning with education reform to ensure that young persons leave school with the range of hard and soft skills needed to be successful in the job market. For those already in the job market and unemployed, we must deploy resources to the building of skills and increasing employability. To that end, in the last Budget we allocated $20 million for apprenticeship and training programmes for our at-risk unemployed youth. Under a jointly funded agreement between the Government and Grand Bahama Shipyard Ltd. (GBSL), the latter will increase the intake of its apprentice programme for skilled trades to 40 per year, Mr. Speaker, The Government is also introducing a new apprenticeship and training programme targeted to the unemployed that will be managed jointly by the Office of the Prime Minister and the National Training Agency. Under this new programme, for which $22 million has been allocated, persons will be paid to work and train in a very formal manner, with certification on completion of the apprenticeship period. The programme differs from the Jobs programme introduced by the previous administration in that it is not strictly about job placement for the unemployed but rather training to ensure that persons are able to attract and retain long-term employment. The programme is being structured along the lines of that between the Government and GBSL that I discussed previously. The Government also intends to employ immediately individuals from the apprenticeship programme to work on the creation of two green spaces for public use in New Providence. One will be situated at Lake Killarney and the other, a National Hero’s Park, in an area just south of the Botanical Gardens. Young people with an aptitude and willingness to learn professional landscaping will be engaged to assist with the development of these green spaces and will be apprenticed to professional and skilled landscapers. Both of these projects will be coordinated and managed by the Parks and Beaches Authority with Lake Killarney being done in concert with Bahamas National Trust and the Nature Conservancy. Mr. Speaker, The Government will also, within the fiscal year, seek to bring the number of temporary and contractual workers to an irreducible minimum. Many of these workers joined the Public Service without the requisite qualifications and, through their own hard work and commitment, are making a valuable contribution to the Public Service and the country; they are deserving of being integrated into the Public Service. Modernizing Financial Infrastructure Mr. Speaker, The financial crisis impacted both financial institutions and individuals in The Bahamas and the commercial banks had to absorb losses, to varying degrees, due to higher than historical loan defaults. The Bank of The Bahamas, an important part of the country’s financial infrastructure and which has no parent company balance sheet to help absorb those losses, now requires recapitalization. This is to be achieved through a combination of a rights offering and convertible contingent bonds. The Government has supported the bank through this period of restructuring and modernizing and I am pleased to note that the bank is on schedule to return to profitability in the 2nd quarter of 2018, by refocusing itself [19] 2016/2017 DRAFT ESTIMATES OF REVENUE & EXPENDITURE