CONTRIBUTION BY
THE HON. BRENT SYMONETTE
DEPUTY PRIME MINISTER
AND
MINISTER OF FOREIGN AFFAIRS

2008 – 2009 NATIONAL BUDGET DEBATE

House of Assembly

Thursday 12 June, 2008

Nassau, N. P., Bahamas

Mr. Speaker, it is indeed a privilege and an honour for me to stand on this side of the Honourable House today to make my contribution to the 2008 – 2009 Budget Debate, with particular reference to my Portfolio, the Ministry of Foreign Affairs and the Hotel Corporation of The Bahamas.

I wish to begin by reiterating my heartfelt thanks to and appreciation of the magnificent people of St Anne’s Constituency for their continuing outstanding support. They know that it is still a ‘matter of trust’!

Mr. Speaker, as you are aware, I have been given responsibility for the Ministry of Foreign Affairs. I again thank the Member for North Abaco, the Right Honourable Prime Minster and Minister of Finance for the confidence and trust he has reposed in me.

My Portfolio Allocation, therefore, continues to include:-

                                                  Foreign Affairs

Mr. Speaker, as you are equally aware, I have also been given responsibility for relations with the Hotel Corporation of The Bahamas.

Mr. Speaker, in making my contribution, my approach will continue to be to heighten awareness of the complex and diverse role of the Ministry. As most of you know, the Ministry of Foreign Affairs comprises more than the very important functions of the issuance of passports, or providing assistance to Bahamians in distress.

I also reiterate the Ministry’s purpose which is to: "protect and advance the national interest of The Bahamas through the proactive coordination and management of foreign relations with individual countries, international organizations and non-governmental organizations in partnership with national ministries."

The Ministry, therefore, works to ensure that other Countries, International Organizations, Non- Governmental Organizations, among others, understand the goals and objectives of the Government and People of The Bahamas, and, that we work collaboratively with friendly Governments and Organizations in the furtherance of these goals.

This will be illustrated clearly, Mr. Speaker, as I detail later the achievements of my Ministry in the use of the budgetary funds allocated to it.

Mr. Speaker, This fiscal year, the Ministry of Foreign Affairs has been given a budget of $23,772,940 to manage the foreign affairs of The Bahamas. This is an increase of $1.46 million over last year’s budget. A significant part of the Ministry’s budget is used to pay assessed contributions, mandated under our international obligations, to Organizations which address such areas as: health, the environment, disaster preparedness, matters relating to development, migration and Commonwealth issues and responses to global challenges. These assessed contributions for 2008- 2009 total $5,492, 804, an increase of $0.8 million over the last budget year’s amount of $4,737,534.00.

In most cases, increases were due to higher assessed contributions and currency conversion fees as well as, settling in total or in part, outstanding balances. International Organizations which registered the more substantial membership contribution increases were: the United Nations Peace Keeping Operations, the International Criminal Police Organization (INTERPOL), the International Organization for Migration [IOM], the World Health Organization (WHO), the International Labour Organization (ILO), the Caribbean Emergency Disaster Preparedness, the Caribbean Export Development Agency, the Caribbean Knowledge and Learning Network, the Commonwealth Agriculture Bureau, and, miscellaneous assessed contributions, that is, Item No 91239911,in the amount of $150,000.00 compared with $50,000.00 for 2007 – 2008.

Decreases in assessed contributions under this Item were: the Organization of American States (OAS), a savings of $54,146.00 to $125,854 from $180,000.00 in 2007 – 2008, and, the Caribbean Regional Organization for Standards and Quality (CROSQ), a savings of $31,650.00 to $53,350 from $85,000.00 in 2007 – 2008.

Mr. Speaker, during this presentation, I will again share with you how the Ministry proposes to spend that money in furtherance of The Bahamas’ national interests and how we propose to use the capital budget which totals $3,600,000. This amount, Mr. Speaker, represents $2,6000,000, the final schedule payment for the computerization for the passport and visa systems [Item No. 7137100] which becomes due in July 2008. It also includes $500,000 for the purchase of residences for the Heads of Mission in the Consulates General in Miami or Atlanta [Item No. 734700]. It is hoped that we will be able to capitalize on the buyers market which now obtains in the United States. The remaining amount Mr. Speaker, under this Item No. 731779 is $250,000 earmarked for the refurbishment of the VIP Lounge at the Lynden Pindling International Airport, Nassau. It is envisaged that this expenditure will be used to upgrade the existing facilities pending the development of the Lynden Pindling International Airport.

Mr. Speaker, as I have just indicated, the 2008 -2009 Budget allocation of the Ministry of Foreign Affairs increased by $1.46 million to $23,772.940.

The two major components of this increase, contributions to International Organizations aside, are firstly, Personal Emoluments and Allowances, from $8,428,379.00 to $9,562,106.00, and secondly, Rent, Communications and Utilities, from $2,080,000.00 to $2,847,160.00.

In addition to the deletions under Block 99 "Items Not Repeated", there were also decreases in Block 50 "Other Contractual Services/Family Island Development" and Block 80 "Repairs, Maintenance and Upkeep of Capital Assets" in order to achieve the $1.46 million total budgetary increase.

Mr. Speaker, I also wish to draw attention under Block 50 to two points. Firstly, this Block contains new Items which detail operational expenses for the Overseas Missions in London, New York [Permanent Mission of The Bahamas to the United Nations], Canada, Washington, Miami [Consulate General], New York [Consulate General], and, the Passport Office in Grand Bahama. These Offices were previously under Item 543130 "Operational Expenses – Overseas Missions", but for audit purposes, each has been requested to be assigned a separate Item within the Ministry’s Budget. Secondly, Item 543130 "Operational Expenses – Overseas Missions", in the amount of $400,000, is now restricted to defraying expenses associated with two new Overseas Missions approved for establishment in Brussels and Atlanta.

Mr. Speaker,

Efforts such as those that I have just highlighted, directed at giving greater transparency to and enabling better monitoring of the Ministry’s Budget are relevant to the query of the Honourable Member from Fox Hill regarding a reduction focused on under Item No. 543131 on Haiti. I wish to assure the Honourable Member, Mr. Speaker, that there is no reduction in accommodation resources for the Embassy in Haiti. This Item must be read in conjunction with Item Nos 301120 and 301210. In other words, Mr. Speaker, accommodation in Overseas Missions is now being put under specific related Items: rents (Officers; Chancery) and operational expenses. Hence, in fact, the Embassy in Haiti has benefited from increase rather than reductions when all related Items are viewed together.

Mr. Speaker, in the area of Personal Emoluments and Allowances, increases in Personal Emoluments represented approximately $897,018, whilst Allowances for Officers posted overseas increased by $237,709.

The increases in Personal Emoluments will primarily be in the areas of Permanent and Pensionable Salaries again and include $616,250 for new appointments, and, $190,000 for promotions/ reclassification/reassessment of current staff.

Increases of note in respect of Allowances are: $158,429 for Foreign Service Grants/Allowances [Item 027100] from $379,792 to $538,221, and, $48,880 for Official Entertainment, from $125,000 to $173,800 [Item No. 029600]. In both cases, Mr. Speaker, the increases are demanded in light of cost of living increases.

Mr. Speaker, as pointed out during the last Budget Debate, the issue of Overseas Allowances has been an outstanding issue for a long time with Foreign Service Officers. In posting Officers abroad the Government needs to ensure that Officers are not disadvantaged by the move. They are, therefore, provided with a variety of Allowances to offset additional expenses when aboard. One issue of particular concern is the loss in salary faced by some Officers because of the fluctuating exchange rates. In ongoing efforts to resolve this problem, Mr. Speaker, the 2008 – 2009 Budget retains the $150,000 [Item No. 029701] allocated for the conversion of overseas salaries in the 2007 – 2008 Budget. This figure will again cover the conversions on transfer of overseas salaries and Allowances to Missions in Countries with foreign currency fluctuation. My Ministry, however, Mr. Speaker, in consultation with the Ministry of Finance, the Central Bank and the other most effected Ministry, Tourism, are looking at a more comprehensive, objective, fair and manageable mechanism to address this serious shortcoming for Officers posted abroad, which is beyond their control. Mr. Speaker, I wish to re-emphasise two of the characteristics of the mechanism which is being aimed at under this Item: "objective" and "fair"! I do so Mr. Speaker, because it has come to my attention that under the former Administration, one Officer alone, in a Mission where at least three other Foreign Service Officers were eligible for currency erosion relief, received nearly fifty percent of this allocation under the last Budget! In addition, there was and remains another Overseas Mission whose eligible staff continues significantly even more disadvantaged by currency fluctuation erosion.

Mr. Speaker,

It is one matter to take care of your legal and moral responsibilities such as the protection of the remuneration of your posted personnel. It is another matter to request your budget to subsidize individuals outside of your budget even if they are your nationals. It is very easy to dispense largesse with other people’s, even taxpayers’, funds. It can be argued that student years should be some of the most, creative years of an individual’s life, where challenges bring out the best in terms of problem solving, thinking outside the box, and pursuing multiple options. Mr. Speaker this is the position from which we come, in respect of the concern expressed by the Honourable Member from Fox Hill, that there was nothing in the Ministry’s budget to support Bahamian Student Associations abroad.

The remaining increases in my Ministry’s budget, Mr. Speaker, are relatively minimal: $25,000 for "Supplies and Materials", from $199,050 to $224,050, due to Item 611400 "Computer Software, Supplies and Accessories" to purchase these for Headquarters, the satellite Consular Division and Passport Office, and those required by INDUSA, the consultant for the E - Passport and Visa Systems. The other areas in Block 20 "Transportation of Things", in the amount of $4000, from $71,000 to $75,000, due to "Freight and Expenses", changes from $66,000 to $75,000.

All other Blocks Mr. Speaker, have remained unchanged: "Travel and Subsistence", "Printing and Reproduction", "Acquisition, Construction and Improvement of Capital Assets".

Mr. Speaker, The Bahamas intends to re-commence direct delimitation Talks with the United Kingdom in respect of the Turks and Caicos Islands in Providenciales, Turks and Caicos, aimed at completing boundary delimitations during the fourth quarter of this year, September/October, to be followed in November/December 2008, by Bahamas/Cuba boundaries delimitation negotiations. We have been able to come this far, Mr. Speaker, with the assistance of the Bahamas National Geographical Information Systems (BGNIS), the Ministry of Agriculture and the Royal Bahamas Defense Force. Together with these Agencies, the Ministry has been able to complete the mapping of baselines for the entire Bahamas, thereby enabling The Bahamas to benefit from the Archipelagic Principle in international law. The benefit is the assimilation of waters enclosed within archipelagic baselines to the terra firma of national sovereignty and therefore, amenable to all the derived rights of protection, privacy and security.

Mr. Speaker, as I turn now to the progress achieved in my Ministry during the current, waning Budget, and the goals and objectives set for the present Budget, I wish once again, to pay tribute to the small cadre, of well-trained, dedicated professionals and support staff, at Headquarters and Overseas, with whom I have the privilege to work and lead. I am pleased to state, Mr. Speaker, that with the efforts of this competent team, though deficient in numbers, many of the foreign policy mandates of the FNM Manifesto have been accomplished.

IMPORTANT ACHIEVEMENTS

Mr. Speaker,

The first goal the FNM established for Foreign Affairs was to "Acquire suitable accommodation to house the Ministry of Foreign Affairs".

I am now pleased to advise that, as of early February 2008, the entire Ministry is now based in the Goodman’s Bay Corporate Centre.

The Ministry is in the process of re-locating its Consular Division from Norfolk House to the second floor of the Passport Office, the Basden Building, Thompson Boulevard. This will allow the Ministry to meet increasing demands as well as improve service to the Bahamian Public. With this move, there will also be increased security. Whilst we have provided more suitable accommodation for the Ministry, the ultimate goal is the construction of a new purpose-built Chancery for the Foreign Ministry which we hope will be realized as soon as possible.

Draft Foreign Service Orders

One of the key promises in the 2007 FNM Manifesto was to enact legislation for the Foreign Service.

Mr. Speaker,

A Final Draft of the Orders has been completed. It is currently being reviewed by Cabinet which deferred action thereon pending clear bench-marking with sub-regional Foreign Services and the submission of a complementary career path for prospective Foreign Service Officers. The career path draft is in its final stage of preparation. The draft Orders are also being reviewed by relevant Government Departments, such as the Attorney General’s Office for an Opinion on structure in relation to "Orders" and "Regulations".

Once the Orders and related career path have been approved, The Bahamas will, finally, have a career Foreign Service, yet remain a part of the Public Service.

My Speaker, another foreign policy plank of the FNM Manifesto is:

Inspection Visits-

Another key dimension of this inspection, and implicit introspection and evaluation for an efficient and effective Foreign Service, is the diplomatic practice of regular convening of Meetings of Heads of Mission. I wish to advise this Honourable House that such a Meeting will take place by the end of this calendar year after an hiatus of twelve years.

One key function, Mr. Speaker, that all Foreign Ministries undertake is the periodic inspection of their Overseas Missions to ensure, on one hand, that the Offices are being properly supported by the Foreign Ministry, and on the other, to ensure that the Mission is properly utilizing the resources entrusted to it. I am pleased to advise that over the past ten months, my Ministry has undertaken inspection visits of several Overseas Missions. Based on these visits, plans are being developed to address the various concerns expressed by the Officers at these Missions.

Mr. Speaker, as regards:

Appointment of Ambassadors

The selection of an Ambassador to represent The Bahamas is something this Government takes very seriously. We want to ensure in our selection that we choose an individual who can accurately represent the views of the Government and People of The Bahamas. To date, we have concentrated on naming Ambassadors/Heads of Mission to our resident Missions.

I am pleased to advise that H. E. C. A. Smith assumed duty at the Embassy in Washington on 9 November, 2007, and presented credentials to the OAS Secretary General on Tuesday 13 November, 2007. Ambassador Smith presented credentials to President Bush on 22 January, 2008.

High Commissioner Paul Farquharson, QPM, assumed duty in London on 1 February, 2008, and will shortly commence presentation of his credentials to other European capitals to which he is accredited.

High Commissioner Michael Smith assumed duty in Ottawa in March, 2008.

I am pleased to advise that since the last Budget Debate, Government appointed Ms. Gladys Sands, as Consul General at the Consulate General in Miami, 17 May, 2008. Mrs. Sands assumed her duties on 17 March, 2008. Mr. Carl Smith was appointed to and assumed duties in the Bahamas Consulate General, New York, on 2 April, 2008.

I wish to thank all of the demitting Ambassadors, High Commissioners, and Consuls General for their dedicated work on behalf of the Government and People of The Bahamas.

Mr. Speaker,

Once we have completed the naming of Ambassadors to all of our resident Missions, we will begin the process of naming Ambassadors/High Commissioners to Countries with whom we have diplomatic relations. I wish to respond in this context to the Honourable Member for Fox Hill that, in the specific case of the Republic of Haiti, the staffing of the Bahamas Embassy there is under active consideration. However, we have not been marking time. My Ministry has followed up on the Cabinet approval given to the recent decision of the Inter-Sessional Conference of Heads of Government of the Caribbean Community, held in Nassau, to extend visa waiver rights to citizens of Haiti possessing diplomatic and official passports. The Government also avails itself of every opportunity in regional and international fora such as the Caribbean Community, the Organization of American States and the United Nations to support Haiti, whether it be financial and technical assistance through the Canadian International Development Agency (CIDA), the mentioned fact-finding OAS Mission to Haiti, or, the continuance of the mandate of the United Nations Peacekeeping Mission in Haiti (MINUSTAH). The Government is also of the view that sustainable solutions in Haiti must also be by as well as for the People. The trade cooperation dialogue which has been deepened by the recent visit of the Bahamas Chamber of Commerce to Haiti is, therefore, as equally important as Government initiatives.

Mr. Speaker,

Haiti, therefore, continues to be of special importance to The Bahamas, not only in the context of seeking to assist a neighbour overcome by pressing political, economic and social problems but also in unabated efforts to address the vexing issue of illegal Haitian migration and all its concomitant problems for The Bahamas. To this end, The Bahamas remains an active member of the Group of Friends of Haiti which has been considering all aspects of security in Haiti, including gender matters, the Judiciary, the Armed Forces and the Police, with a view to ascertaining the current state of affairs there in order to inform further actions.

Mr. Speaker,

A practical complement to establishment of diplomatic relations, resident or non-resident, especially when resources are limited, is the role of Honorary Consuls. Honorary Consuls also play an important role in large Countries where there is no resident diplomatic or consular presence. The Ministry has now completed a review of the policy pertaining to the appointment and functioning of The Bahamas’ Honorary Consuls. The Government is, consequently, presently reviewing new appointments to a number of additional Countries.

Passports

Mr. Speaker,

As Members of this Honourable House are aware, in December, 2006, the Government signed a contract with Indusa Global. This is an information technology development and consulting firm based in Greenville, South Carolina. The Contract provides an E-Passport Issuance System; a Machine-Readable Visa System; an E-Identification Issuance System (that is, smart cards for holders of work permits, spousal permits, home owners residence permits; permanent residence); and, a Border Control Management System.

I am pleased to advise, that as of December 2007, we started the Pilot Phase of the passport programme with a successful, Official Launch on the fifth of that month. We have also started to issue the new E – Passports. As of, 9 June, 2008, a total of 5,382 E - Passports have been issued.

The Pilot Stage that the initiative is currently undergoing is providing the opportunity to work through irregularities and correct them in conjunction with Indusa Global and its affiliates.

Technical difficulties have prevented the issuance of Certificates of Identity for non-Bahamians under the new system. Action is being taken to rectify the situation in as timely a manner as possible.

Members will recall that the FNM Government committed to "Implement the previous FNM government policy decision to permit consular missions to issue passports to entitled Bahamian citizens living in their jurisdictions". With the introduction of E-passports, Overseas Missions will continue to process passport applications; however, passports will be produced only in Nassau.

This is the recommendation of Indusa which supplied the system and I am advised that a number of other Countries including the United States are looking at centralized production of passports. Once the new system is fully implemented, the Government will review this recommendation to determine if this is the most effective method of delivering this service to the Bahamian public.

Mr. Speaker

Before leaving the issue of passports, I wish to state that the Pilot Phase has indeed proven its usefulness. I recognize the many calls and correspondence which I and my staff have received, detailing inconveniences, frustrations and lost resources. This has made the Ministry painfully aware of the complexity of our mission and the over-exuberance of our expectations to furnish you the Public, in a very short timeframe we now recognize to be unrealistic, with a state of the art ID document, encompassing state of the art security features.

Mr. Speaker,

There is enough blame to go around on all sides but I shall restrict myself to the challenges faced by my Ministry and the solutions being implemented as we speak.

Mr. Speaker,

We are looking at producing some 270,000 to 300,000 E-passports alone, with a staffing complement of forty-five. We are also looking at a complex, technically-driven process, plagued by equipment break-downs, and, uneven or ‘snail pace’ connectivity. We also have to contend with the cultural uniqueness of our People. Yet, it is clear, all solutions whether they be training, adjusted, longer hours, a shift system, a customer service crash course, must depart from the acknowledgement that we are in a partnership with you, the Public. Some of you have given us practical suggestions, others your patience, despite everything. We have not taken this lightly. Let me remind all, that The Bahamas is among the first Countries in the world to place priority on such technologically advanced security in this area of secure identification documents. As we redouble unrelenting efforts to serve you, we encourage you, Colleagues and the public, to partner with us, because we have the opportunity to exemplify best practice in this important area, to the world!

Mr. Speaker,

At this juncture, I wish to comment on another source of frustration which has been voiced in this Honourable House during contributions by the Honourable Member of Parliament for Fox Hill. He has lamented shortcomings of the Ministry’s website. However, I have been advised that while he is to be commended for the establishment of the Ministry’s website, he did not accept the technical advice to proceed with deliberate haste. This is the genesis of the website’s failing. However, Mr. Speaker the Ministry is working actively with the Data Processing Unit in the Ministry of Finance, the Government’s expert IT manager, in order to review, revamp, standardize, with a view to upgrading, ensuring a user-friendly status, and, with full incorporation into the Country’s IT identity, transformed into a "Bahamas.gov.bs" address.

Mr. Speaker,

I now address some of the technical, specialized work of the Ministry that more directly affects our external clients, the public at home and aboard, Public Sector Partners and Foreign dignitaries.

Consular

The Consular Division of the Ministry of Foreign Affairs is an integral part of the Ministry and plays a vital role in providing Government services to Bahamians at home and abroad. Consular services are provided at all Bahamas Overseas Missions with the exception of the Bahamas Mission to the United Nations. The Consular Division also coordinates the work of Bahamas Consular Offices overseas. It also liaises with British Consulates in Countries where The Bahamas has no resident representation. Services provided by Bahamas consular Offices include: processing of visa applications for Bahamians, assistance to Bahamians in distress overseas, assistance to non-Bahamian in distress in The Bahamas, and, the legalization of documents. The Division also provides advice and guidance on visa policy.

Legalization

Mr. Speaker,

I wish to clarify for Members of this Honourable House, as well as the general public, that the Ministry of Foreign Affairs is not responsible for the collection of Notary Public Fees. This is the responsibility of the Office of the Attorney General. The Ministry of Foreign Affairs is, however, responsible for the authentication of legal documents executed in The Bahamas which are to be used outside The Bahamas, and, the authentication or legalization of legal documents executed outside The Bahamas which are to be used in The Bahamas. During the past ten months, various Offices of the Ministry authenticated more than 20,000 documents for use in The Bahamas, and, internationally.

Mr. Speaker,

Bahamians Incarcerated

The Ministry does not have accurate figures on the number of Bahamians who are in prison overseas. However, it is known that Bahamians are in US facilities for a variety of charges, with a significant number being held on drug-related convictions.

As of 31^st December 2007, there were eleven Bahamian nationals incarcerated in La Condesa and Combinado Del Este Prisons, in Cuba, all on drug related convictions. A Bahamian national who was previously incarcerated in the La Condesa Prison on a drug conviction was released in December 2007 after having completed one-third of his sentence, and returned home.

Honourable Members may recall that two Bahamians were mortally wounded in a shoot-out with the Cuban Coast Guard on the high seas on 30^th April 2007. The two surviving members of the group were tried in a Cuban Court on 22^nd November, 2007, and later sentenced to twenty-five (25) years imprisonment. One of the men is seeking to appeal his sentence as he felt it was excessive.

While the Vienna Convention on Consular Relations calls for host Countries to notify respective Consulates when any of their citizens are detained, the Ministry appreciates that given the federal make-up of a number of Countries, it is not always possible to provide this information to Consular officials. The national in question must also express the wish to have their consular Representative notified. Our Overseas Missions have learnt that a number of Bahamians do not wish for Bahamian Officials to be notified due to privacy concerns. The public should note that the Ministry does not disclose information on the nationals we assist unless we have their permission to do so.

Mr. Speaker,

All Bahamian Consular Officials, where possible, try to visit Bahamian prisoners in their jurisdiction on a regular basis with a view to monitoring their terms of incarceration, addressing their concerns with prison officials and seeking information from prison officials as to their general health and conduct.

Visas

The Consular Division deals with visa applications, with particular attention given to visa referrals from our Bahamian Embassies in the Republics of Cuba, Haiti and the People’s Republic of China, as well as responding to our Honorary Consulates.

The days for the processing of visas are Mondays, Tuesdays and Fridays, from 9:30 a.m .to 12:30 p.m. This system was implemented due to the large volume of applications, which had provoked complaints from the landlord and other tenants of Norfolk House. The hours for making visa appointments are between 1:00 p.m. and 4:00 p.m. on Mondays, Tuesdays and Fridays, and, between 9:30 a.m. and 4:00 p.m. on Wednesdays and Thursdays. As a result of this system, we have seen a significant reduction in persons waiting outside the building.

Visas Issued

For the period July to December 2007, the Bahamas Consulate General in Miami issued the most Bahamian visas, followed closely by the Consular Division in Nassau.

The following table shows the issuance of visas for January to May 2008. These figures reveal that The Bahamas Consulate General in Miami issues the most Bahamian visas, followed closely by the Consular Division in Nassau.

Modernization

In order to provide first class service to members of the public, the Consular Division is gradually going through a restructuring process. It is our objective that these changes will be implemented by the end of this year. These include:

Schengen Visa Negotiations

Mr. Speaker

The Ministry continues to pursue visa abolition agreements with a number of Countries. Of particular interest to a majority of Bahamians is, of course, the Schengen Visa needed for travel to most European Union (EU) Countries.

Mr. Speaker,

On 21 December, 2006, the Foreign Policy arm of the EU, the European Council, adopted Council Regulation (EC) No. 1932/2006, amending EC Regulation 539/2001 so as to transfer six Countries, including The Bahamas, to the visa exempt list of the Schengen Agreement, upon conclusion of a bilateral agreement on visa exemption between the European Community and the Country in question.

In January, 2007, the Bahamas High Commission in London was informed by the European Commission that the first step would be a technical Meeting with representatives of the six Countries. The next step would be formal negotiations. The Commission did point out that the negotiation of a formal agreement was a new development in respect of these matters and they would be considering various options for drafting the agreement. They also pointed out that the Cricket World Cup arrangements had caused some political difficulties because a visa requirement was being imposed on European Member States where none existed previously, which might result in some delay.

Through its Mission to the EU and during each Meeting with an EU Country Ambassador, my Ministry made representation on the question of the Schengen Visa Abolition Agreement. During the period under review, the Ministry received various indicators from several European Union States that negotiations on the Schengen Visa were moving forward. Finally, the EU Commission on 15 February, 2008, took what it called "the first step" towards concluding a short stay visa waiver agreement with The Bahamas in addition to five other Countries, pursuant to the December, 2006 Decision of the European Council. Negotiating directives will now have to be approved by the EU Council so that negotiations on the agreements can begin.

This approval of the European Commission’s recommended short stay visa agreements was given by the Council of the European Union, at their meeting as the Justice and Home Affairs Council from 5 – 6 June, 2008. The European Commission, therefore, invited the Bahamas High Commission in London to an Opening Round of Negotiations in Brussels on 4 July, 2008. The Bahamas High Commission in London has also been advised that it will receive a draft of the proposed Visa Waiver Agreement prior to the stated Meeting.

I am, therefore, pleased to report that indicators remain positive for a successful outcome.

Legal Matters

Mr. Speaker,

During the reporting period, the Ministry was able to secure Government approval for The Bahamas to ratify the following agreements: the Revised Cotonou Agreement; the Comprehensive Nuclear Test Ban Treaty; the Proliferation Security Initiative resulting from the negotiations of a bilateral ship-boarding protocol with the United States; and to accede to the United Nations Convention against Corruption: IAEA Convention on Physical Protection of Nuclear Material; ICAO Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Aviation; International Convention for the Suppression of Terrorist Bombings and the Convention on the Marking of Plastic Explosives. Approval was also obtained to sign the Protocol to the Association of Caribbean States Convention establishing the Sustainable Tourism Zone of the Caribbean.

An Extended Passport Validity Agreement with the United States that permits US authorities to issue non-immigrant visas in a Bahamian passport that does not have the usual six month validity requirement was concluded in April 2008. Bahamian passports no longer need to be valid for at least six months in order to apply for a US visa or travel to the US.

Papers have also been submitted to Cabinet seeking approval for The Bahamas to sign the CARICOM (Maritime and Airspace) Security Co-Operation Agreement and the CARICOM Arrest Warrant Treaty.

The Ministry continues to liaise with relevant Government Agencies so that the Government can conclude the following Conventions identified as priority treaties, codifying international cooperation in areas of importance to the national interest of The Bahamas:

Multilateral Treaties

Bilateral Treaties

The Ministry has convened inter-ministerial meetings on the issue of trafficking in persons and facilitated the attendance abroad of Bahamian officials to meetings on the subject. The Ministry is also coordinating an inter-ministerial group on the subject of the re-integration of criminal deportees.

Foreign Policy

Mr. Speaker,

The Bahamas maintains diplomatic relations with major Countries on every Continent and in every region of the world. The Ministry has received Courtesy Calls from Countries as diverse as: Belgium. Canada, Cezch Republic, Egypt, France, Germany, Greece, India, , Malaysia, Mexico, Morocco, Nigeria, Sri Lanka, South Korea, Swaziland, Switzerland, Turkey, Uganda, the United Kingdom, United States, and Zambia.

In the context of Bahamas/Europe relations, priority issues are the mentioned visa waiver under the Schengen Agreement, and, the Organization for Economic Cooperation and Development (OECD). The Bahamas counts on its links with European Union Members with whom diplomatic relations have been established to confirm their support in ensuring that the OECD’s regulations on Financial Services are fair, just and equitable for all. Another goal of The Bahamas in her relations with Member States of the European Union is that they will play an important role in ensuring that European Union investment is not only sustained, but indeed increased, and the transfer of advanced management skills and new technologies, emphasized.

From the perspective of our relations with African Countries, despite the geographical distance, the commonalty of our African Heritage was recently celebrated, during the 200^th Anniversary of the Abolition of the Transatlantic Slave Trade.

Additionally, those African Countries that consider tourism as a viable industry are of the opinion that they can benefit considerably from The Bahamas’ vast experience and success in this area.

In the case of our relations with Asian Countries, The Bahamas has developed strong friendly ties with all major Countries in this region, particularly, through technical assistance opportunities in China, India, Singapore and Malaysia. Our relations with China have deepened further with the agreement which has been received for the appointment of a new resident Ambassador from The Bahamas to China. There are many Small Island Developing States (SIDS) in the Asian region. The Bahamas shares their concern with the adverse consequences of global warming and climate change on this vulnerable category of States as we have the same challenges for sustainable development and the protection of our environment. Therefore, concretizing our relations with these Countries has been acknowledged to be indispensable when seeking international assistance and cooperation in multilateral Organizations.

The protection, weight and credibility of numerical strength is a diplomatic strategy which has been found to be useful in dealing with controversial political issues, especially when geographically removed from The Bahamas. It is in this context, that The Bahamas has dealt with the serious situations in Zimbabwe and Myanmar by collaborating in and endorsing the Statements issued on these two Countries by the Eleventh Meeting of the Council for Foreign and Community Relations, of the Caribbean Community, during its Meeting, 8^th to 9^th May, 2008, in Antigua and Barbuda.

Mr. Speaker,

Of particular importance to The Bahamas are relations with our closest neighbours, namely Haiti, the United States and Cuba.

I have already addressed Haiti.

With regard to The Bahamas’ relationship with the United States, its importance cannot be over-emphasized. This relationship is rooted as much in its strategic, geopolitical context, as it is in the many direct traditional and family ties that exist between the Peoples of both Countries. The relationship between The Bahamas and the United States continues to be strong, vibrant, productive and dynamic. Its singular importance to The Bahamas can be seen, inter alia in the US being the main supplier of imports into The Bahamas, the main source of tourist arrivals to The Bahamas. The two Countries have forged strong partnerships in many areas, for example, in combating drug trafficking, human smuggling and, the threat of the proliferation of weapons of mass destruction. The US’s commitment to these partnerships was demonstrated in their positive response to The Bahamas' representation to ensure continued OPBAT helicopter coverage.

The Government of The Bahamas is confident that the tenure of the new United States Ambassador, His Excellency Ned Siegel, will contribute significantly to the deepening of the relationship with the United States.

Since the formal establishment of diplomatic relations with Cuba, the relationship between our two Countries has been further consolidated. This strengthening is not new as Bahamians in Ragged Island, Cooked Island and Inagua can testify to the traditional friendships they have enjoyed with the Cuban People.

It has been estimated that some 60,000 Bahamians visited Cuba within the past two years for a variety of reasons. Over five hundred Bahamians have benefited from a medical programme which has provided free ophthalmologic services, including transportation (airline and ground) accommodations, meals, consultations, treatment and operations.

There are some thirty-five Bahamian students in various disciplines in universities in Cuba. In 2007, approximately thirty Bahamian students graduated from Cuban Institutions, the majority of whom had been medical students.

Mr. Speaker

In the FNM Manifesto, we committed to participate in regional, hemispheric and international organizations including CARICOM, the OAS, the Commonwealth and the United Nations and to pursue a foreign policy in consultation with our CARICOM colleagues.

I am pleased to report that the Ministry has actively pursued these and other foreign policy goals. This is verifiable in the Calendar of International Meetings and Conferences approved by Cabinet for my Ministry.

The Bahamas is currently serving on the United Nations General Committee as one of the Vice-Presidents of the 62^nd Session of the United Nations General Assembly. The General Committee is composed of the President of the General Assembly, twenty-one Vice-Presidents, and the six Chairpersons of the Main Committees of the General Assembly.

Mr. Speaker,

I had the honour to lead The Bahamas Delegation to Meetings of all these prioritized Organizations: CARICOM, the OAS, the Commonwealth and the United Nations. I also participated in Meetings held in the margins of the United Nations General Assembly, the most recent being the 62^nd Session of the United Nations General Assembly. These Meetings have been both multilateral and bilateral. In the case of the latter, they have been held with the following Officials:

The bilaterals with the Representatives of Bulgaria and Luxembourg also served as occasions for the signing of Communiqués establishing diplomatic relations between The Bahamas and these two countries.

I also participated in the multilateral Ministerial Meetings of the Non-Aligned Movement, and the Commonwealth, held in the margins of the 62^nd UNGA, and, in a Roundtable Discussion sponsored by the Permanent Mission of India to commemorate the International Day of Non-Violence.

Mr. Speaker,

I now turn to the other substantive area of my Portfolio: the Hotel Corporation of The Bahamas.

The Hotel Corporation of The Bahamas

Mr. Speaker,

I would like to take this opportunity during the Budget Debate, to update Members of this Honourable House on the activities of The Hotel Corporation and its plans for the coming financial year.

Through the prudent management of its limited financial resources, it is envisaged that the Corporation will be able to meet its financial obligations over the next twelve (12) months.

The Corporation is very actively pursuing the privatization and disposition of its remaining properties in Andros and Eleuthera. Towards this end, negotiations with several investors are at an advanced stage.

Located in Fresh Creek, Andros, is the Lighthouse Yacht Club and Marina, the condition of which has deteriorated to such an extent, that a large capital expenditure would be required to completely repair and refurbish it. Its continued operating losses cannot be sustained by the Hotel Corporation.

Priority is, therefore, being given to securing a substantial purchaser for the purpose of re-developing the Lighthouse Yacht Club and surrounding acreage, into a viable cultural tourism project, which would significantly impact the economy of Central Andros. Because of the rich and diverse ecology of Central Andros with its extensive wetlands, the Government is commissioning an Environmental Review of the area to guide The Hotel Corporation in concluding arrangements with a suitable developer to conform with the findings of the Review.

Mr. Speaker,

In my contribution to the Budget Debate last year, I indicated that under an Agreement for Sale dated April 6, 2005, The Hotel Corporation of The Bahamas (The Hotel Corporation) had agreed to sell to Baha Mar Development Company Ltd. (Baha Mar) the Radisson Cable Beach Hotel and ancillary facilities, the Hobby Horse Hall Parcel, the Remainder Interest in the Wyndham Parcel and the Remainder Interest in the British American Bank Parcel.

I should point out for the information of Members of this Honourable House, that although the full purchase price has been paid for the foregoing properties, only the Radisson Cable Beach Hotel and ancillary facilities and the Golf Course and contiguous properties have been conveyed to Baha Mar. The aspect of the Sales Agreement for conveyance of the Hobby Horse Parcel, the Wyndham Parcel and the British American Bank Parcel remain pending, subject to the fulfillment of certain Conditions Precedent relating to financing and procurement of world class equity hotel and casino partners as set out in Heads of Agreement dated 6 April 2005, between the Government of The Bahamas and Baha Mar.

Mr. Speaker,

The Prime Minister the Right Honourable Hubert A. Ingraham, in his Communication on February 18, 2008, laid on the Table of this Honourable House a Supplemental Heads of Agreement dated January 31, 2008. It will be seen from the Communication and the Supplemental Heads of Agreement that Baha Mar did not satisfy the terms of the Conditions Precedent and was granted an extension to March 2009. As a result this amendment has further extended the period for the conveyance by Hotel Corporation of the remainder interest in the three above-mentioned Cable Beach parcels to Baha Mar.

There are three other notable changes in the Supplemental Heads of Agreement relating to the Hotel Corporation:

The Hotel Corporation will continue to take the necessary action in collaboration with Baha Mar and the relevant Government Authorities with a view to fulfilling obligations as they relate to the Corporation under the provisions of the Heads of Agreement and the Sales Agreement.

Mr. Speaker,

It is also appropriate that I should provide an update on the Mayaguana Development Project being carried out by Mayaguana Island Developers Ltd. (MID), the Joint Venture company equally owned by The Hotel Corporation of The Bahamas (the Hotel Corporation) and the I Group Bahamas Ltd., subsidiary of the I Group of Boston, Massachusetts. The Joint Venture Agreement was entered into on March 7, 2006 between The Hotel Corporation, I Group Bahamas Ltd. and MID.

In consideration of the transfer of 9,999 acres of the Crown land to MID and the concessions contained in the Heads of Agreement, the I Group agreed to contribute the entire capital to bring about the Initial Project, with a capital contribution of $14 million, which sum is inclusive of $2 million paid by the I Group to the Government for the conveyance of 5,825 acres to MID. The remainder of the 9,999 acres is to be conveyed to MID upon successful completion of the Initial Project.

Since the Heads of Agreement was signed approximately two years ago and the land use plan was approved by the Government, MID/MMC have made substantial strides in satisfaction of the key milestones.

Mr. Speaker,

These improvements include:

Mr. Speaker,

The foregoing implemented capital improvements are the result of efforts to accelerate the development process in order to enable the joint venture to take advantage of the "window of opportunity" in the resort/real estate market that appeared to be open until quite recently. Regrettably, with rapid economic decline in the marketplace and money markets, circumstances have changed. As an example, while MID successfully obtained a Letter of Intent from The Kor Group for a hotel development of up to 250 rooms only last September, The Kor Group withdrew its interest in January of this year, specifically citing deteriorating market conditions.

MMC’s ongoing evaluation of the development plan for 2008 depends upon the specific economic circumstances in the marketplace. In light of this MID has agreed to modify the Business Plan over the next 12 months to achieve the following reduced scope of work until market conditions improve:

Mr. Speaker,

MID will continue to maintain its existing facilities and equipment.

From a labor standpoint, the on-site Bahamian workforce rose to a peak of approximately 48 in the second half of 2007, supplemented by a number of foreign workers. More than half of on-site foreign labor workforce consisted of a temporary influx of specially skilled personnel sent by the foreign manufacturers in China and India of MID’s hot-mix asphalt plant and liquid asphalt storage tank, required to assemble and commission those prefabricated items on site. That temporary influx departed before December last year. The on-site workforce today consists exclusively of 23 Bahamians and just two foreign workers – the American senior project manager and one highly-skilled American heavy equipment operator.

Mr. Speaker,

I have briefly outlined the context, profile, fiscal performance, recurrent objectives and projections of my Ministry. I am very satisfied that my Ministry, despite not being yet at optimum staffing levels and infrastructure, physically and technologically, it is playing its vital role in national development.

The evidence is the fiscal prudence of my Ministry’s budgetary estimates, submitted in a non- crisis imperative, which were not only accepted, but exceeded when approved. The evidence, equally compelling, is that we not only upheld but demonstrated tangible progress in implementing all the State’s cardinal, enduring tenants of the Foreign Policy of Commonwealth of The Bahamas as set out in the 1972 White Paper on Independence: " Peace with all Nations", "Natural Ties", "Law of the Sea", and, "the Archipelagic Principle".

Mr. Speaker,

As I conclude my remarks, I wish to say that I am not unmindful of the magnitude of the stewardship with which I have been entrusted in respect of the healthy functioning of the State’s two primary arteries, its body politic and national economy. However, Mr. Speaker, we have our roadmap in our Manifesto, and, a visionary yet responsive Budget. We can, therefore, with confidence, state that The Bahamas will attain Alfred, Lord Tennyson’s aspiration for the State:

A land of settled government, /

A land of just and old renown, /

                 Where Freedom slowly broadens down /

From precedent to precedent.

[1809 – 92, You Ask Me Why]

Mr. Speaker,