Should the goverment with its bloated civil service and record budget deficits consider downsizing? Is the size of the government at fault for the high labour costs, high taxes and the overall high cost of living in the Bahamas?

YES! YES! YES!
To all the points you mentioned.
And Yes again! :)

I'd love to see some downsizing in government, but after the firing them where will all the people go in this poorly structured economy?

It's plain funny how these people are boasting about running a country when they can't even run a small town - Nassau.

We need to restructure government to have a slim, mean national gov. and leave running of towns/cities to local govs. The one place without local gov. is the one place that needs it.

The entire population of the country (500,000?) is the size of a medium sized city in many countries. The public networks/utilities we have in place for a small city like Nassau is quite vast compared to places of similar size. Everyone knows we can be more efficient but where do you start?? There is so much to do it is almost overwhelming. I think its got to be a long process of education about the value of efficiency and competence. Most civil service people are unmotivated and think (know) they have a job for life no matter how they perform. This attitude needs to change and then we can downsize through natural attrition as people become more efficient.