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Poverty Is On The Rise In The Bahamas
Related to country: Bahamas

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Rising cost of living impacting Bahamians:
By CANDIA DAMES, Guardian News Editor -
Nassau, Bahamas:



Faced with the rising cost of living, more and more Bahamians are turning to the government and social outreach organizations for help.

"I've never seen it so bad in terms of the [numbers] of people coming in looking for help on a daily basis," said Bishop Walter Hanchell, who operates Great Commission Ministries International.

Divisional Commander of the Salvation Army Lester Ferguson added that global economic pressures are impacting many Bahamians, who are finding it hard to make ends meet.

"We have [many] of them who are working, but what they make simply can't make ends meet," Ferguson said, "particularly for mothers who have children and we see some unemployed persons as well."

Minister of State for Social Development Loretta Butler-Turner told The Nassau Guardian yesterday that there are signs that poverty is growing in The Bahamas.

"We do see very overt signs of people coming forward and looking for more frequent assistance and greater assistance," said the minister, adding that she did not have any statistical data. "But just from the requests that I have been getting and the amount of funds that have been asked to be allocated from my managers and my directors, I would say we are seeing a greater reliance on the resources of our department right now."

She indicated that the high cost of living is a major concern, adding that in some instances the demand is outpacing resources.

In its most recent economic report, the Central Bank of The Bahamas said "domestic prices remained elevated, as evidenced by further increases in the price of gasoline (4.8 percent) and diesel (5.8 percent) in May, to $5.25 and $5.24 per gallon, respectively. Similarly, the Bahamas Electricity Corporation's fuel surcharge strengthened by 12.0 percent to 18.74 cents per KWH in June. The rapid fuel cost increases also underlie the firming in the Retail Price Index for the 12-month period ending June 2008, by 2.99 percent, approximately 0.57 percentage points higher than the previous year's expansion."

Butler-Turner said the high fuel surcharge is a major contributor to the burdens many people are now facing.

Despite a tax holiday for the Bahamas Electricity Corporation (BEC), consumers saw one of the largest spikes in fuel surcharges last month.

The government granted the corporation a two-year suspension of customs duty of 10 percent and stamp duty of 7 percent on fuel imports. Prime Minister Hubert Ingraham said the move was designed to take some of the financial pressures off the corporation, which he said was broke.

Yesterday, Butler-Turner said high electricity bills "caught quite a few people by surprise and have created financial hardships for people who were also preparing to get their children ready for school, and [pay] their ongoing bills. And so we have seen an increase in the number of persons coming forward for assistance for electrical payments."

She indicated that growing numbers of people also sought assistance this year with preparing their children for the start of the new school year. The numbers in certain islands have increased substantially, including in New Providence and Grand Bahama, according to minister.

"It would appear to me that wages are certainly not keeping pace with the cost of living. There may very well be more people working fewer days; I'm not sure," said Butler-Turner, adding that the Department of Labour had not yet released figures so an analysis can take place. "But certainly, in terms of your dollar value that you're making each week, it's not keeping pace with the cost of living."

The minister opined that the economic situation would not have been improved in any way had the previous administration been re-elected last year.

"I guess everybody, once they're in opposition, wants to make political brownie points. The reality is as we travel to the United States...as we look at world trends, the bottom line is there is an economic crisis all around the world," she said. "I do not believe that it has anything to do with the fact that the Free National Movement is in [government] in The Bahamas today. Everything that we use relies heavily on fuel."

The minister pointed to increases in freight charges and increases in the cost of living in countries The Bahamas imports from.

"Obviously the cost of living is going to increase in The Bahamas as well," she said. "We are not a country that produces the goods we consume. Naturally, with the cost going up externally, once it's landed here in The Bahamas, the cost of living is going to be much higher."

Butler-Turner said the money the government allocated to the Department of Social Services for July and August was diminished "rather rapidly."

"In any event, we still do have substantial sums in our annual fiscal budget, so we're hoping that we will see some easement later in the year, so we certainly will not have to exceed the overall resources that we have allocated," she said.

The government is currently providing food stamps to the needy in the amounts of $50, $60 and $80 per month. The minister said no final decision has yet been made on how much those amounts will be increased to.

Bishop Hanchell said he is pleased the government has decided to provide increases, but pointed out that there is much more that needs to be done to help struggling residents.

"It seems as if organizations that cater to the poor are being stretched beyond the limit, because the number of persons and the needs greatly outnumber the resources that are available," he said, adding that his organization has found that the cupboards and refrigerators of many people are empty.

"People are really suffering," Hanchell told The Nassau Guardian. "I don't think the general public is aware of how [many] people are hurting in this country."

He said many people who come to Great Commission Ministries are unemployed or underemployed.

"We can't get the food in fast enough," he said, adding that a growing number of people are being evicted because they cannot afford to pay their rent. "Our shelters are running to capacity."

Hanchell said the organization desperately needs money, food and furniture to help the poor, but noted that it has more than enough articles of clothing.

September 2, 2008 | 11:13 PM Comments  0 comments

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