COMMONWEALTH OF THE BAHAMAS
2016/17
BUDGET COMMUNICATION
AN AGENDA FOR A MODERN BAHAMAS
Presented to the Honourable House of Assembly
By
The Rt. Hon. Perry G. Christie, M.P.
Prime Minister and Minister of Finance
On Wednesday, 25th May 2016
2016/17 BUDGET COMMUNICATION
It is my honour to present the 2016/17 Budget Communication.
I. INTRODUCTION
Mr. Speaker,
This is the fifth Budget Communication that my Government has presented to this Honourable House during our current mandate. Significantly, since the first, each succeeding Communication has shown a reduction in the Government's GFS Deficit. This Budget Communication continues our track record in this regard, with a further reduction in the GFS Deficit in the 2016/17 fiscal year.
As we committed to do when we set out an unprecedented and rigorous Medium-Term Fiscal Consolidation Plan, we have not wavered from that plan. The plan is targeted and balanced and it has yielded concrete improvements in the public finances of our nation and that, in turn, sets a solid foundation for stronger growth and job creation.
Mr. Speaker,
I am pleased to report that we have been successful in containing fiscal pressures this fiscal year and thereby keeping the projected GFS Deficit to a level of $150 million, broadly in line with the Budget target of $141 million. This variance reflected the payouts for the CLICO Bahamas liquidation that, for their part, were funded by extraordinary revenue.
Mr. Speaker,
For general information with respect to the CLICO interim payments, as at 29th April 2016, 3,078 cheques totaling some $10.2 million in payments have been collected and 1,649 cheques totaling $2.1 million remain uncollected. This demonstrates the Government's commitment to making whole everyone negatively impacted by CLICO.
Mr. Speaker,
In the 2016/17 fiscal year, we will build further on our fiscal success with a projected GFS Deficit of $100 million.
Mr. Speaker,
Since the first year of our mandate and by the end of the 2016/17 fiscal year, we will have reduced the Deficit by $439 million, or by over 80 per cent.
While the burden of Public Debt remains unacceptably high, I am pleased to note that, through our fiscal plan, we will have arrested the rise in that burden in the 2016/17 fiscal year with its first reduction in many years. Thereafter, the ratio of Debt to GDP will decline steadily.
Mr. Speaker, viewed in its proper context, this is no small feat. The ongoing struggles and associated economic and social upheaval of other nations around the globe, in the face of daunting structural fiscal challenges, are instructive in this regard, especially in those cases where consolidation has been delayed. My Government boldly rejected the short-term and shortsighted expediency of delay. Indeed, we acknowledged the fundamental necessity to redress the nation's public finances at the very outset of our mandate, through the Medium-Term Plan that we presaged in the 2012/13 Budget Communication and that we formally and explicitly announced in February 2013. As I mentioned, this action plan is targeted and balanced, with a focus on all of the major components of the public finances, that is, reform and restraint of Recurrent and Capital Expenditure, enhanced Recurrent Revenue through modernized administration and new sources of revenue and the promotion of economic growth potential. And we are doing so in the face of the burgeoning demands on Government from a yet developing archipelagic nation.
Mr. Speaker,
As I have explained previously, we have sought to bring order to our public finances, not merely for the sake of doing so, but because healthy public finances are a crucial prerequisite to maintaining and enhancing confidence in The Bahamas as a desirable and attractive location for investment, growth and job creation. Strong finances are also vital to the viability and continuity of the public programmes and services that Bahamians need and demand of a modern Government.
II. THE GLOBAL ECONOMY
Mr. Speaker,
As I explained in the Mid-Year Budget Statement, the global economic environment continues to be very challenging. Indeed, in its latest World Economic Outlook of April 2016, the IMF suggests that the world economy is, in its words, "faltering from too slow growth for too long" and that the recovery remains fragile and still vulnerable to a number of risks.
On that basis, the IMF has yet again downgraded its forecast for world output growth to 3.2 per cent in 2016, down a further 0.2 percentage points from only three months ago. More significantly, the Fund asserts that we now face a risk that persistent slow growth could lead to damaging longer term effects on the social and political fabric of nations, to lower potential economic expansion and to weak prospects for employment growth around the globe.
I would note, in particular, that the IMF is concerned that the consecutive and persistent downgrades to growth prospects run the risk of the world economy reaching so-called "stalling speed" and falling into secular stagnation. The Fund therefore calls on governments to pursue aggressive actions to support the recovery and enact the critically needed structural reforms to bolster the potential growth of their economies.
For The Bahamas, the implications are clear. We must, on the one hand, protect the hard-won improvements in our public finances that have to date been secured and persevere with the further improvements that are planned. That is critical to maintaining confidence in our nation as a very attractive locale for investment. We must also address the various structural reforms that are necessary to boost productivity and enhance the competitiveness of our economy. As I explained in last year's Budget Communication, in the Mid-Year Budget Statement and again in brief review earlier, we have begun to implement reforms to that end. The development and effective implementation of the National Development Plan will also be vital in this regard.
The IMF now projects the world economy to grow by 3.2 per cent this year and 3.5 per cent in 2017. The advanced economies are forecast to grow by a more modest 2 per cent in 2016, on the basis of relatively weak demand conditions, unfavourable demographics and low productivity growth.
On a somewhat more positive note, growth in the United States, our major trading partner, is expected to be slightly more buoyant, expanding by 2.4 per cent in 2016, with a further modest strengthening in 2017. Domestic demand is expected to be supported by improved public finances, as well as stronger housing and labour markets. Following its most recent meeting, the Federal Reserve noted these areas of strength, in addition to the solid rate of growth of household real incomes and the high level of consumer sentiment. The Fed agreed, dependent on future economic developments, to maintain its accommodative monetary policy stance, with interest rates expected to remain at relatively low levels for some time. These factors and the general outlook in the U.S. economy augur well for the further expansion of our key tourism sector this year and beyond.
Elsewhere, the Euro economy is forecast to experience ongoing modest growth, at around 1.5 per cent this year and next, as a result of persistently high unemployment, weak balance sheets and low investment. Modest economic expansion is also expected in both Canada and the U.K.
One critical factor for global prospects is the outlook for the Chinese economy which is presently transitioning from a focus on investment and manufacturing to a more sustainable path based on consumption and services, While down somewhat from recent experience, real growth in China is still forecast at just in excess of 6 per cent per annum.
III. THE BAHAMIAN ECONOMY
Mr. Speaker,
I now turn to recent domestic economic developments and prospects for the future.
In its latest release of the National Accounts data a few weeks ago, the Department of Statistics estimated that the performance of our domestic economy was somewhat weaker in real terms in 2014 than it had previously estimated at this time last year. According to these latest data, the real economy is now estimated to have contracted by 0.5 per cent in 2014, in contrast to the estimated positive growth of 1 per cent presented twelve months ago.
In addition, the DOS also presented its first estimate of real economic growth for 2015. These data suggest that the contraction in real economic activity widened further last year, to the tune of -1.7 per cent. This estimate stands in contrast to the projected positive rate of real growth of 2.3 per cent presented in last year's Budget Communication, which had been developed by the Ministry of Finance in conjunction with the staff of the IMF. The estimates of real growth in the Bahamian economy presented by the major ratings agencies at various times following the May Budget also featured positive rates of growth for 2015.
I would note that these new data from the DOS have direct and important implications for the fiscal ratios that are presented in the Budget Communication and which are key features of the Government's Medium Term Fiscal Consolidation Plan. For instance, the value of nominal GDP, which is used as the denominator in our fiscal ratios, is now estimated at $8,736 million in fiscal year 2014/15, down $35 million from last year's Budget forecast.
More significantly, the value of nominal GDP in the 2015/16 fiscal year is now estimated at $8,944 million, down considerably from $9,220 million in last year's Budget.
The weakness in real economic activity in 2015 was due primarily to softer output in the construction sector. Positive growth was, however, registered by a number of industries, including wholesale and retail trade, banking, real estate, business services and public administration, health and education and community, social and personal services.
The softness in the construction sector reflected a significant fall-off in foreign investment-led construction output, as activity at the Baha Mar project wound down.
Our key tourism sector recorded ongoing, though still modest, improved performance in 2015, primarily reflecting continuing gains in the high value-added stopover segment of the industry. This development reflects further improvements in our key tourist source markets, as well as improved airlift and hotel capacity. Total air arrivals expanded by 3.6 per cent last year, on the heels of the 4.9 per cent growth registered in 2014.
Activity in the domestic construction sector posted mixed signals in 2015. Mortgage loan disbursements for new construction and repairs in the residential segment grew by an appreciable 35 per cent last year, a reversal from the 8 per cent decline in the previous year. This performance contrasts to that in the smaller commercial segment, where disbursements fell to roughly $10 million from $15 million in 2014.
Of particular concern, the rate of unemployment for the youth of our nation, aged 15 to 24 years, continued at the unacceptably high level of 30 per cent and this is an issue that we are committed to addressing aggressively through both the growth strategy that we are pursuing and the apprenticeship and training programmes that I discussed earlier.
Consumer price inflation continued at a moderate pace of 1.9 per cent in 2015, up slightly from the previous year. While the introduction of VAT contributed some measure of one-time upward pressure, overall inflation was tempered significantly by the sharp drop in international oil prices. With ongoing excess supply and weak consumer demand globally, the average price of crude oil declined by 47 per cent in 2015 to $52.61 per barrel. By end December, the price stood yet lower at $36.53 per barrel. The IMF projects ongoing relative weakness in oil prices in 2016, on the basis of high inventory levels and buoyant supplies from the major producers. The weakness in oil prices translated into significantly lower domestic gasoline prices and BEC fuel charge. The latter declined by over 34 per cent in 2015 and by a further 12 per cent in the first quarter of this year.
External reserves expanded significantly in the first quarter of 2016 to stand at $980.5 million, representing an increase of some $172 million from December 2015.
As for the economic outlook, the Ministry of Finance and the Central Bank expect some degree of firming in economic activity this year on the basis of ongoing modest growth in the tourism sector and foreign investment led activity in the construction sector. On that basis, real GDP is expected to grow by some 0.5 per cent in 2016, following the 1.7 per cent contraction last year. That rate of expansion in economic activity is projected to strengthen further in 2017, to an annual rate of 1 per cent in real terms. Of course, it is to be borne in mind that, when the Baha Mar project restarts, it will provide an important boost to our economic growth prospects and to near-term employment opportunities.
IV. FISCAL PERFORMANCE IN 2014/15 AND 2015/16
Mr. Speaker,
I now turn to fiscal performance in the 2014/15 and 2015/16 fiscal years.
The 2014/15 Fiscal Year
Mr. Speaker,
The fiscal outturn in the 2014/15 fiscal year featured a somewhat more elevated GFS Deficit than had originally been projected in the Budget Communication for that year. The Deficit, at $381 million, was some $95 million higher than the forecast of $286 million. This was the result of a number of factors, including:
· An increase in Recurrent Expenditure of $100 million due primarily to a higher level of Debt Redemption that year, to the tune of $84 million, which I would note affects the level of Recurrent Expenditure but not the GFS Deficit;
· A further $14 million of the increase of Recurrent Expenditure reflected a reconciliation exercise with BTC involving payments by the Government for services received which were offset, on the Recurrent Revenue side, by the payment by BTC of Business Licence fees and real property tax and site rental payments;
· An increase in Capital Expenditure of $41 million as a result of an acceleration of the procurement project for new RBDF vessels, with four vessels being completed and delivered in the 2014/15 fiscal year, at a cost of $66 million; and
· A lower level of Recurrent Revenue than projected, by some $42 million, reflecting the somewhat weaker than expected growth in nominal GDP during the fiscal year.
The 2015/16 Fiscal Year
Mr. Speaker,
In the 2015/16 fiscal year, the GFS Deficit is estimated at $150 million, broadly in line with the Budget projection of $141 million. This $9 million increase reflected a number of factors, including:
· A $57 million increase in Recurrent Expenditure primarily associated with higher levels of expenditure in respect of both Debt Redemption and Interest payments, to the tune of $33 million and $35 million, respectively;
· An additional allocation of $32 million to the Ministry of Tourism for concession payments under agreements with the cruise ship companies, as was set out in the Mid-Year Budget Statement;
· There were also the payments made by the Government in respect of the CLICO Bahamas liquidation, in the amount of $13 million, that were announced in the Mid-Year Budget Statement in early March of this year;
· The Water and Sewerage Corporation was allocated an additional $13 million to cover shortfalls;
· Recurrent Revenue is expected to be down by an estimated $37 million during the fiscal year and this despite a significant reduction in the level of nominal GDP as compared to the Budget forecast, primarily reflecting the relative buoyancy of VAT revenues; and
· Capital Expenditure during the 2015/16 fiscal is expected to be lower than projected, by some $52 million, partly reflecting the timing of RBDF vessel deliveries.
As I mentioned at the outset of the Communication, the Government confronted various fiscal pressures during the current fiscal year, primarily in respect of Recurrent Expenditure. But we were successful in managing these pressures and containing the increase in Total Recurrent Expenditure, net of Debt Redemption, such that the rise in the GFS Deficit above the projected level was minimized to the extent possible.
V. FISCAL POLICY 2016/17 AND BEYOND:
THE MEDIUM-TERM FISCAL CONSOLIDATION PLAN
Mr. Speaker,
As I stated earlier, the Government remains firmly committed to staying the course with its Medium-Term Fiscal Consolidation Plan. The plan comprises a multi-year strategy whose overarching objective is to secure durable structural reform of the principal components of the public finances. As such, we are moving decisively to transform Recurrent Expenditure, Capital Expenditure and Recurrent Revenue in a manner that is phased, measured and balanced.
Recurrent Revenue
Mr. Speaker,
The various reform and modernization measures that we have implemented in respect of Recurrent Revenue have borne fruit and produced the targeted, significant increase in the revenue yield of our tax system. From a low of 16.3 per cent of GDP the year that we took office, the revenue yield has risen to 22.5 per cent of GDP this fiscal year. This primarily reflects the impact of the Value Added Tax that we implemented in January of 2015. Also important have been the comprehensive reform and modernization exercises that we launched in our major revenue areas, including Customs, Real Property Tax and Business License. The further development of the new Central Revenue Administration will also contribute importantly to revenue compliance and enhanced collections going forward.
The improved revenue yield of our tax system that we have achieved during this mandate has brought it into the range of such yields among countries in the region, but I would stress that it still remains at the lower end of that range.
With the ongoing revenue reforms that are in process and the further maturation of our VAT system, I expect the yield of our revenue system to improve again somewhat in the 2016/17 fiscal year, to a level of 23.7 per cent of GDP. In combination with the forecast growth in nominal GDP, that will result in estimated Recurrent Revenue collections of $2,176 million in 2016/17. The medium term projection assumes that the revenue yield will remain in the area of its 2016/17 level through 2018/19.
Recurrent Expenditure
Mr. Speaker,
As for Recurrent Expenditure, I would reiterate that we are moving forward with the reforms and measures that are targeted at restraining the growth of spending and to make that spending more efficient and effective such that, through the medium-term, Recurrent Expenditure shows a decline relative to the size of the economy.
In the 2016/17 fiscal year, Recurrent Expenditure is estimated at $2,321 million, an increase of $166 million from its projected level this year. The bulk of that increase corresponds to a higher level of Debt Redemption payments, by some $102 million as compared to its level in 2015/16. However, I will stress again that the higher level of Debt Redemption will have no bearing on the GFS Deficit in 2016/17.
Going forward and, in line with the commitments contained in our Medium Tern Fiscal Consolidation Plan, we are asserting that Recurrent Expenditure will be further constrained and projecting that it will decline as a percentage of GDP beyond the coming fiscal year, by 1 percentage point or more per year.
Capital Expenditure
Mr. Speaker,
On the Capital Expenditure front, we are also remaining faithful to our commitment to restraining its weight relative to the size of the economy over the medium term, to a level in the range 2.5 per cent of GDP. In dollar terms, that amounts to a total level of Capital Expenditure of some $242 million per year.
This constraint does not reflect a lack of commitment to modernizing and upgrading the public infrastructure in The Bahamas. In this regard, as I mentioned earlier, we have provided significant new investments for National Security with funding to provide the RBDF with three modern bases of operations throughout the archipelago. In addition, we have included funds to provide more vehicles and motorcycles for the Royal Bahamas Defence Force as well as our agencies that operate in the Family Islands.
We have also included funding to continue the very ambitious Family Island Road Programme, with roadworks in North Andros, Acklins and Abaco. In addition, we have included funding for the road paving programme in New Providence.
Furthermore, funding is also available for Family Island airport development as we continue to modernize the civil aviation regime in The Bahamas. This process, when completed, will see the present Civil Aviation Department as a standalone regulator with the Airport Authority assuming operations for Family Island airports.
Mr. Speaker,
It is important for Bahamians to note that my Government completed an assessment of airports throughout The Bahamas in which it was indicated that recommended improvements could amount to $150 million.
In consequence, we are in the process of completing major improvements to the airport in San Salvador and expect to engage in major improvements in Exuma, North Eleuthera, Berry Islands, Inagua, Cat Island and other airports as well.
The Government has also reached an agreement in principle to acquire new accommodations for the Post Office Department and this will pave the way also for the complete renovation of the Post Office Building. Funding for the acquisition and outfitting of the new home of the Post Office is included in the budget.
VI. PROJECTED FISCAL RESULTS
Mr. Speaker,
As a consequence of the fiscal measures that we are implementing and, barring unforeseen developments, we expect to adhere to the fiscal objectives of our medium-term plan, namely:
* the GFS Deficit will post a further decline in 2016/17 to a level of $100 million, or 1.1 per cent of GDP;
* the primary balance will post a second consecutive surplus in 2016/17, to the tune of $172 million;
* on the current fiscal track, the GFS Deficit will be eliminated in 2018/19 and a small surplus will be posted;
* the ongoing rise of the Government Debt burden will be arrested and the ratio of Debt to GDP will decline to 64.1 per cent in 2016/17, down from the peak of 64.6 per cent in 2015/16. It will fall steadily, thereafter, to stand in the area of 59 per cent in 2018/19.
VII. OUR AGENDA FOR A MODERN BAHAMAS
Mr. Speaker,
My Government's efforts and successes over the past four years do not begin and end on the fiscal front, for we have clearly understood - from prior to the last election - that our nation confronts a multitude of challenges that stand in the way of a better future for all of our citizens. Accordingly, we have been driven over the past four years by a mission to effect fundamental transformation in the pursuit of a modern Bahamas. Significant problems plague our society and economy and we simply cannot continue to accept the status quo. Bahamians are demanding a better future for themselves and their children and it is my Government that has taken up the mantle and begun to move us toward a decidedly better future. Ours is an agenda for a modern Bahamas, with modern governance, a modern and more prosperous economy, as well as modern social programs and public infrastructure.
We began that process with the comprehensive change agenda of the Charter for Governance that we shared with our fellow citizens prior to the 2012 election. Since taking office, we have doggedly implemented a number of reforms in the various areas of that agenda, as I explained in the last Budget Communication as well as in this year's Mid-Year Budget Statement. While I will not repeat all of the details at this time, it is nonetheless important to remind this House and Bahamians of the major reform measures that we have implemented. I will group these under the four key pillars of future economic and social development that were identified in the recent State of the Nation Report. This Report represents the first stage in the preparation of a National Development Plan, to which I will return shortly. The four pillars of development are:
· Human Capital
· Governance
· The Natural and Built Environment, and
· The Economy.
Human Capital
In the area of human capital, we have effected healthcare reform with significant investments in both Princess Margaret Hospital and Rand Memorial, as well as in new and renovated facilities in the major Family Islands; we have also worked toward the introduction of a National Health Insurance scheme.
Modernizing Health Care and National Health Insurance
Mr. Speaker,
The provision of practical and cost effective Universal Health Care to Bahamians remains a key priority of my Government. The subject of National Health Insurance continues to attract healthy debate among medical practitioners and others; however, my commitment, and that of the Government, to the accessibility and affordability of basic medical services and the improvement of the quality of life for Bahamians, is unequivocal and together with the involvement of leadership from the NHI Bahamas Secretariat, the Ministry of Health, the Public Hospitals Authority and our global partner in healthcare, KPMG Bahamas, we are committed to delivering health care that is modern, affordable and accessible for all legal residents of The Bahamas.
Mr. Speaker,
The implementation of NHI Bahamas is reflected in our continual assessment and evaluation of our medical professionals, health care facilities, allocation of resources and effective delivery of services. All of these elements are of vital importance to the core of health systems strengthening and an essential aspect of the successful implementation of NHI Bahamas.
We have made significant investments in the evaluation and assessment of our public health sector. We have evaluated our public healthcare facilities, taken account of the need for additional doctors, nurses and other healthcare professionals, analyzed the distribution of financial and material resources and determined the deficit in terms of availability, accessibility and the quality of services in our public sector.
Mr. Speaker,
Strategic Health Systems Strengthening plans have been developed and are being implemented to bridge the gaps in all areas to support the implementation of National Health Insurance for The Bahamas.
Mr. Speaker,
It is also unacceptable that, today, 70% of Bahamians still do not have health insurance. Not being able to afford health care can result in illnesses that are preventable; that can be avoided through access to primary care, which will be the first phase of coverage. It is also unacceptable that 32% of Bahamians who needed medical treatment at some point did not seek it because of cost. It cannot be underscored enough that in a modern Bahamas this is our opportunity to provide all Bahamians with the means and wherewithal to obtain routine medical services for themselves and their families.
The Ministry of Health, including the Department of Public Health and the Public Hospitals Authority, have introduced extended clinic hours and increased administrative capacity and availability of services in recent months.
Mr. Speaker,
Since the beginning of this year, the NHI Secretariat has engaged in meaningful dialogue to educate all Bahamians about NHI. This has included presentations to civic, corporate, religious, government and non-government entities. The Secretariat consistently makes itself available to any and all organizations which request their presence for a presentation and discussion around NHI. They have traveled across The Bahamas, meeting local residents and speaking at town hall meetings in most islands. Before the end of this budget year every island would have been engaged in discussions on the National Health Insurance Programme. I am advised that these presentations are being well received and that the general public is calling for the implementation of NHI Bahamas without further delay.
Additionally, over the last twelve months, the NHI Secretariat has consistently and assiduously collaborated with stakeholders to improve the manner in which we can collaborate regarding NHI Bahamas.
Although public consultation regarding the NHI legislation has concluded, stakeholder engagements will continue in order to further develop the roadmap towards the phased implementation of NHI Bahamas.
Mr. Speaker,
These stakeholder groups have included:
· The Bahamas Association of Physiotherapists
· The Bahamas Chamber of Commerce and Employer's Confederation
· The Bahamas Chiropractic Association
· The Bahamas Dental Association
· The Bahamas Doctors Union
· The Bahamas Insurance Association
· The Bahamas Nurses' Association
· The Medical Association of The Bahamas and
· The Pharmacy Association of The Bahamas
Mr. Speaker,
My Cabinet has approved a single governance model that will accelerate the implementation of Universal Health Coverage while providing effective oversight of the Programme. The approved, integrated Universal Health Coverage governance structure will allow for quick and effective decision making with transparency and accountability, as well as the alignment of health systems, and will result in greater efficiency, continuity of care and the seamless delivery of patient-centered services in the Government health sector.
The accepted Integrated Universal Health Coverage governance model that my Government has adopted, following the recommendations of KPMG, is in keeping with our commitment to work with stakeholders to shape the design and implementation of Universal Health Coverage and support the advancement of health system-strengthening goals. Additionally, the Universal Health Care (UHC) Stakeholder Advisory Committee is being formed to improve the health of Bahamians through ongoing stakeholder engagement and continuous collaboration.
Mr. Speaker,
The budget allocation for the Ministry of Health reflects an investment in primary care coverage and health systems' strengthening that will significantly improve the quality of life for Bahamians. This will reveal itself in shorter wait times, improved facilities, more doctors and Bahamians living longer and healthier lives in a modern Bahamas.
In any event, when we are advised that Bahamians are generally the worst off in the region and some say in the world with respect to the incidence of diabetes - a most debilitating and life changing disease.
Then, we must readily accept that there is a compelling urgency to launch a National Lifestyle improvement Programme for all Bahamians with special emphasis on our school population.
Improving Human Capital Development in Agriculture and Marine Sciences
Mr. Speaker,
The low academic level of human capital in the Agricultural Sector of The Bahamas is a major impediment to growth, poverty reduction and food security in the Family Islands and in the inner communities of urban Nassau, and to some extent, Freeport. The establishment in September 2013 of the Bahamas Agriculture and Marine Science Institute (BAMSI) served to create a tertiary level academic curriculum which would offer Associates degrees, Diplomas, Certificates and a Skills Training programme to students training in the technologies associated with crop and livestock production and marine and fisheries resource development. Several weeks ago, the College of The Bahamas (COB) and BAMSI negotiated a collaborative agreement where the qualifications to enter BAMSI are the same as those for entering COB. There will be student exchanges and collaboration with facilities on teaching and research assignments.
In addition to the COB agreement, there are also agreements with the University of Miami, University of Florida, Ocean University of China and one pending with the University of the West Indies School of Agriculture in St. Augustine, Trinidad. BAMSI is about knowledge-driven development of our agriculture and marine resources and the Institute is now a member of the Caribbean Council of Higher education in Agriculture (CCHE). The Bahamas was accepted as a member of the Caribbean Agricultural Research and Development Institute (CARDI), the premier agricultural research entity in CARICOM, and CARDI will have its offices on the BAMSI site in North Andros and will add a new dimension to its research programme by giving it regional credibility. Bahamians working as counterparts to CARDI professionals will be able to undertake research on The Bahamas and earn UWI postgraduate qualifications at both the Masters and Doctoral degree levels.
Mr. Speaker,
The Caribbean Farmers' Network (CaFAN) is the leading small farmer organization in CARICOM and has invited the Institute to have its Associated Farmers' Programme as a member. It is also notable that BAMSI is the only marine institute in CARICOM, and possibly the region as a whole and a number of CARICOM states have announced their intention to send their students for training in order to more efficiently manage their marine resources.
BAMSI is an investment in human capital development, and in the food and nutrition security infrastructure of our country. BAMSI will continue to transform the Agricultural Sector and provide a more secure marine environment for Bahamians.
As for reforms in the education and training areas, we have introduced new standards for high school graduation and established the National Training Agency, as well as the STAR Academy for the most vulnerable in our society. In the last Budget, we provided $20 million for training and apprenticeship programmes aimed at the at-risk unemployed youth in our country.
The provision of effective social services is also vital to the well-being of our citizens in need. To that end, we have modernized our programmes in this area with the introduction of modern debit cards to improve the delivery of social assistance and we have implemented the RISE programme to tie assistance to positive behaviour.
In the period ahead, we will undertake a nationwide survey of vulnerable areas of the country, to be conducted by Urban Renewal using, as field workers, employees of the job and apprenticeship/training programme that I am announcing today. This survey will, over a three-month period, perform a detailed examination of households to assess the challenges that they confront -- be they in respect of health issues, housing, employment and so forth.
The concrete results of the survey will be made available to the Bahamian public and will serve to supplement the other data that are currently available to policymakers. That, in turn, will assist in the formulation of effective socio-economic interventions by the Government to the major challenges confronting the citizens of our nation.