At yesterday’s press conference to announce the forum, Financial Services and Investment Minister Vincent Peet said that since its inception, the forum has recommended or reported on all the pieces of financial services legislation passed since 2002.
“The positions that are put forward by the forum are not only highly respected but have had meaningful impact on the work that my ministry has carried out over the past few years.
Mr Peet announced that Brian Moree has again agreed to chair the forum, a position he has held since its establishment.
“I acknowledge the time he has devoted to this committee and I am confident that he will ensure that the group will continue to make a meaningful contribution to successfully address the important issues which will require action by both the government and the private sector…”
The minister added that, according to the Central Bank of the Bahamas, the financial services sector contributes an estimated 15 to 20 per cent of the country’s gross ﾠdomestic product.
He said that figures in the bank’s quarterly economic review indicate that for 2005, banks and trust companies employed a total of 4,405 persons.
Salaries amounted to $209.1 million, government fees totalled $17.6 million and capital expenditure was calculated as being $16.3 million with the average salary $47,469.
Mr Peet said that this is a clear example of how vital the industry is. Noting the forum’s work in the past, Mr Peet said it played a major role during the recent passage of the amendments to the Banks and Trust Companies Regulation Act in the House of Assembly.
“This is the type of private-public partnership that the government encourages and welcomes.”
Mr Moree added that he is fully satisified that the minister and government are seriously committed to the development and growth of this industry in the Bahamas.
“I am of the of the view that the financial services industry has the potential to be a much larger industry in the Bahamas, thereby making a greater contribution to our Gross Domestic Product …one of the primary functions of the forum is to ensure that when making policy decisions, the government is aware of the views and recommendations of those persons in the private sector who are involved in and knowledgeable about the financial services sector.”
He noted that the forum has several specific activities planned for the next few months:
ﾕ Product-related legislation which includes launching the Private Trust Act, and amendments to the Purpose Trust Act.
ﾕ Considering and submitting proposals on the results of the branding survey conducted by Price Waterhouse
ﾕ Reviewing and submitting proposals on a five-year strategic plan and follow-up strategic plan
ﾕ Submitting a report to the government on critical issues which must be addressed in the short-term to facilitate the continued growth and expansion of the financial services industry in the Bahamas.
As they work to accomplish this, Mr Moree noted that the forum will begin to consult with leaders in the industry to solicit their views and to engage ﾠprivate sector with government.
By CARA BRENNEN Tribune Business Reporter
