An official of The Nassau Institute, a local think-tank that promotes capitalism and free markets, on Thursday accused Trade and Industry Minister Leslie Miller of “demonizing the oil industry as he promotes the controversial Petrocaribe initiative.
The agreement, according to its champion, Venezuelan President Hugo Chavez, will result in millions of dollars in savings on energy costs in the region.
But Nassau Institute officials are skeptical.
“The Minister has chosen to demonize an industry that’s very important to the country, that employs a lot of people and [has also attacked] the fundamental economic structure of pricing which is all around the world,” said Rick Lowe, secretary and treasurer of the institute.
Mr. Lowe, a businessman, was a guest on the Love 97 programme “Issues of The Day” along with Joan Thompson, a businesswoman, who is the institute’s president.
He suggested that Minister Miller has been going around claiming that the oil companies have been “gouging consumers”.
“The government has set the margins that these oil companies are allowed,” Mr. Lowe said. “The government has set the margin that the local dealer is allowed-Government is creating this problem then demonizing, accusing people of gouging and stealing from the Bahamian public.
“It creates an animosity that is dangerous for the way forward.”
The show’s host, Jeff Lloyd, asked, “Do you have a problem with the Government of The Bahamas seeking to potentially lower the cost of energy in The Bahamas?”
Ms. Thompson responded, “The government can’t lower prices.”
Mr. Lloyd explained that Caribbean countries envisage that the deal offered by the Venezuelan government “is very, very, good; very attractive.”
But Mr. Lowe said this is not the case according to Jamaica.
“The prime minister of Jamaica and professionals in Jamaica have said that the consumer will see no benefit in the price of oil at the pump,” he said.
Chairman of the government-appointed fuel-usage committee, H. Vincent Coleby, who appeared on the show a day earlier, explained that The Bahamas would be able to purchase fuel from Venezuela at market price, but would only have to pay 60 percent of the cost upfront.
He said the other 40 percent would go into a special fund for social development projects.
But Mr. Lowe and Ms. Thompson said the plan does not seem practical.
“Don’t come to me with handouts and freebees,” Ms. Thompson said. “They’re destructive; we know that.”
She said the government should just let the market work and “get out of the way”.
Mr. Lowe, meanwhile, suggested that the government was presenting to the Bahamian people “a backdoor deal signed with a dictator in a foreign country who’s a communist.”
Ms. Thompson also questioned the government’s involvement with Mr. Chavez.
“This man has caused an increased level of poverty in his own country by 12 percent since he’s been there,” she said.
“This man is notably spreading his political ideology throughout the Caribbean. That’s what this is all about, to spread his communist, socialist philosophy throughout the Caribbean. And if we are as foolish as to buy into that under the guise of it being some kind of social programmes, that’s exactly what he wants.”
Ms. Thompson added, “We don’t mind doing business with China. China is very far away. China and the United States are the major powers in the world. There’s no way you’re going to do anything but with major powers. Hugo Chavez is a little man who happens to have taken control of his country and the oil business, end of story.”
Mr. Lowe said he has no problem with individuals and companies doing business with Venezuela if they so choose.
“Where I have a serious difficulty is with the Government of The Bahamas entering into agreements, one where they don’t wish to go into details and tell the Bahamian public about them,” he said.
“If an individual or a company wishes to risk their capital and go into business with anybody anywhere in the world that is their sovereign right. It is not the right of any government to risk taxpayers’ dollars without some degree of accountability and telling people the facts and not distorting the facts.”
By: Candia Dames, The Bahama Journal
