Sunnyjohn
08-03-07, - 10:08 AM
Mixed Views On Abolition of Financial Services Ministry
By Tosheena Robinson-Blair
There are mixed views on whether the government’s decision to do away with the Ministry of Financial Services and Investments was a sound one.
The ministry’s primary goals were to maintain The Bahamas’ premier position as a financial services centre and to expand and diversify the Bahamian economy.
On Thursday, Vincent Peet, former Minister of Financial Services and Investments, called the new administration’s decision a bad one.
"We feel that if tourism deserves it’s own ministry, which it does, then the financial services sector deserves its own ministry because it’s growing and becoming not just the second pillar, but very competitive with tourism," Mr. Peet said.
"Having had a survey done just before the last election, it revealed that the financial services sector is now representing an even higher percentage of the GDP than first thought. It may be up to as much as 30 percent when you look at the ancillary impact of the sector and the jobs created as a direct result of the financial services sector."
However, Minister of State for Finance Zhivargo Laing disagreed that scrapping the ministry was a bad decision.
He said it "made sense" for Prime Minister Hubert Ingraham to place the responsibilities of the now defunct Ministry of Financial Services and Investments into the Ministry of Finance.
"Here’s the wisdom of that," Mr. Laing said.
"All of the legal authority from matters relating to (the country’s) financial services and investments rests in either the minister of finance or the prime minister. For instance, you can’t have an investment approved except that it’s approved in the prime minister’s office. He’s the minister responsible for investment."
Mr. Laing said even when the Ministry of Financial Services and Investments existed, for substantive matters the minister would have had to go to the minister of finance for a signature.
"Now all the matters related to financial services rest in the Ministry of Finance. So you have removed gaps. You now have a consolidation of all of those things in one ministry," Mr. Laing said.
He added that some of the contracts of former employees of the Ministry of Financial Services and Investments expired. Mr. Laing said some employees returned to their original ministries and others now work at the Ministry of Finance.
"I think that the industry wants to make sure that at the end of the day what happens is that they get results," Mr. Laing said.
"Based on their interaction with the Ministry of Finance over the last several months, I think that’s what they’re getting."
By Tosheena Robinson-Blair
There are mixed views on whether the government’s decision to do away with the Ministry of Financial Services and Investments was a sound one.
The ministry’s primary goals were to maintain The Bahamas’ premier position as a financial services centre and to expand and diversify the Bahamian economy.
On Thursday, Vincent Peet, former Minister of Financial Services and Investments, called the new administration’s decision a bad one.
"We feel that if tourism deserves it’s own ministry, which it does, then the financial services sector deserves its own ministry because it’s growing and becoming not just the second pillar, but very competitive with tourism," Mr. Peet said.
"Having had a survey done just before the last election, it revealed that the financial services sector is now representing an even higher percentage of the GDP than first thought. It may be up to as much as 30 percent when you look at the ancillary impact of the sector and the jobs created as a direct result of the financial services sector."
However, Minister of State for Finance Zhivargo Laing disagreed that scrapping the ministry was a bad decision.
He said it "made sense" for Prime Minister Hubert Ingraham to place the responsibilities of the now defunct Ministry of Financial Services and Investments into the Ministry of Finance.
"Here’s the wisdom of that," Mr. Laing said.
"All of the legal authority from matters relating to (the country’s) financial services and investments rests in either the minister of finance or the prime minister. For instance, you can’t have an investment approved except that it’s approved in the prime minister’s office. He’s the minister responsible for investment."
Mr. Laing said even when the Ministry of Financial Services and Investments existed, for substantive matters the minister would have had to go to the minister of finance for a signature.
"Now all the matters related to financial services rest in the Ministry of Finance. So you have removed gaps. You now have a consolidation of all of those things in one ministry," Mr. Laing said.
He added that some of the contracts of former employees of the Ministry of Financial Services and Investments expired. Mr. Laing said some employees returned to their original ministries and others now work at the Ministry of Finance.
"I think that the industry wants to make sure that at the end of the day what happens is that they get results," Mr. Laing said.
"Based on their interaction with the Ministry of Finance over the last several months, I think that’s what they’re getting."