Mr. Speaker, it is indeed a privilege and an honour for me to stand on this side of this Honourable House today to make my contribution to the 2007-2008 Budget Debate.

I want to begin by extending my heartfelt thanks and appreciation to the wonderful people of the St. Anne’s constituency for their overwhelming support at the recent general elections and who truly appreciate that it is indeed a ‘matter of trust.’

Mr. Speaker, the strategic course chosen by this Administration as stated in our key objectives outlined in The Trust Agenda Manifesto 2007, is designed to lead to improved opportunities for Bahamians and the sustainable development of our country.

The principal goal of our Government is definitely a clear one and that is, the restoration of trust in government where every citizen and resident of The Bahamas irrespective of their background/ethnicity, religion or political beliefs will enjoy the rights and freedoms guaranteed under the Constitution.

Therefore, it is incumbent upon each government agency functioning in our country, whether it is the Ministry of Foreign Affairs or another ministry, to remain committed to making its contribution to the fulfillment of this objective, and in so doing, allow this to become our trademark as the government The Bahamas.

Mr. Speaker, as you are aware, I have been given responsibility for the Ministry of Foreign Affairs. I would like to thank the Member for North Abaco, the Right Honourable Prime Minister for the confidence and trust he has reposed in me.

My portfolio allocation therefore includes:

Mr. Speaker, I have also been given responsibility for relations with the Hotel Corporation of The Bahamas.

One of our key challenges in the Ministry of Foreign Affairs, as I see it, is to heighten awareness of the complex and diverse role of the Ministry. The Ministry of Foreign Affairs is more than the issuance of passports, or providing assistance to Bahamians in distress, even though these are, of course, very important functions.

The Ministry’s purpose is to "protect and advance the national interests of The Bahamas through the proactive coordination and management of foreign relations with individual countries, international organizations and non-governmental organizations in partnership with national ministries."

The Ministry, therefore, works to ensure that other countries, international organizations, non-governmental organizations, among others, understand the goals and objectives of the government and people of The Bahamas and that we work collaboratively with friendly governments and organizations in the furtherance of those goals.

This fiscal year, the Ministry has been given a budget of $22,308,063 to manage the foreign affairs of The Bahamas. This is an increase of more than $1.77 million over last year’s budget. A significant part of the Ministry’s budget is used to pay assessed contributions, mandated under out international obligations, to organizations concerning such areas as health, the environments, disaster preparedness, matters relating to tourism, migration and Commonwealth programmes, just to cite a few.

Mr. Speaker, during this presentation I intend to share with you how the Ministry proposes to spend that money in furtherance of The Bahamas’ national interests and how we propose to use the capital budget of $7,050,000 which is $4,825,000 more than the Ministry received last year.

Mr. Speaker, as I have just indicated, the 2007-2008 Budget allocation of the Ministry of Foreign Affairs increased by $1.77 million from $20.5 million to $22.3 million.

The two major components of this increase are firstly, Personal Emoluments and Allowances and secondly, Other Charges increased by $675,000 and $1.57 million respectively.

There was a deletion of $482,272 for items not repeated in order to achieve the $1.77 million total budgetary increase.

Mr. Speaker, in the area of Personal Emoluments and Allowances, increases in Personal Emoluments represented approximately $183,000 whilst allowances for officers posted overseas increased some $492,000.

The increases in Personal Emoluments will primarily be in the area of Permanent and Pensionable salaries and includes $155,000 for new appointments and $88,000 for promotions and reclassifications of current staff.

Of the increases in Allowances $330,000 is earmarked for increases in Educational Allowances under Item 027500 for the eligible dependents of foreign service officers.

An increase of $79,792 has also been provided under Item 027100 for home leave for Foreign Service officers. The expenditure as of May 5^th, 2007 was $299,333.35. The 2006-2007 Budget allocated $300,000 for this item whereas the 2007-2008 Budget allows for $379,792.

Mr. Speaker, the issue of overseas allowances has been long outstanding issue with overseas officers. In posting officers abroad the government needs to ensure that officers are not disadvantaged by the move. They are therefore provided with a variety of allowances to offset additional expenses incurred when abroad. One issue of particular concern is the loss in salary faced by some officers because of the fluctuating exchange rates. In an effort to resolve this problem, Mr. Speaker, the 2006-2007 Budget allocated $80,000 for the conversion on overseas salaries and the proposed 2007-2008 Budget allows for $150,000, an increase of $70,000. This figure covers conversion on transfer of overseas salaries and allowances to missions in countries with foreign currency fluctuations and for a Central Bank equalization fund for erosion due to currency fluctuations.

The increases in Other Charges of $1.57 million are primarily in the following categories:

Mr. Speaker, the budget also includes an increase of $50,000 for Conferences and Meetings. This is the government’s share of the costs of the South Africa/African Union Caribbean Regional Diaspora Conference being hosted jointly by The Bahamas and South Africa in Nassau 1-3 August, 2007. This is one of a series of preparatory meetings for the Ministerial Meeting to be held in South Africa in 2008. I wish to assure the members of this Honourable House that the government of The Bahamas will honour this commitment. I reiterated our support for this meeting when I met recently with the Ambassador for South Africa.

Mr. Speaker, the other area of significant increases in Expenditure Allowances is $155,000 for the printing and reproduction of passports. I intend to address this matter in more detail when outlining the creation of ‘E’ Passports.

Mr. Speaker, the member for Fox Hill is well aware that the Minister of Foreign Affairs is required to travel to meetings such as the General Assembly of the OAS, CARICOM Heads of Government, Commonwealth Heads of Government, the UN General Assembly and so forth. The Honourable Member may not be aware of the nickname of "Flying Fred" which was attributed to him whilst he held the post which I now occupy.

The travel budget for my Ministry is $405,000. This has increased some $120,000, (This is some $180,000 less than initially requested) as funds have been included to cover the cost of attendance at Commonwealth Meetings and for travel to the family islands and overseas missions for training and set up of the new passport system. I also intend this year to have designated professional staff conduct inspection visits to all of our overseas missions. During this fiscal period the government proposes to name new resident and non- resident Ambassadors and funds have also been provided to cover the cost of their travel for the presentation of credentials.

I have signaled the complexity of my portfolio. I am also aware of the new diplomatic practice where foreign relations are now conducted primarily at the highest level of government. Nevertheless, let me say for the record, Mr. Speaker, that in keeping with this government’s commitment to fiscal responsibility, as Foreign Minister I will restrict my travel and only attend those Meetings which are of direct benefit or interest to The Bahamas and not travel at every available opportunity.

Mr. Speaker, the Government of The Bahamas is fortunate to have a small cadre of well-trained professionals in the Ministry of Foreign Affairs. I believe my job is to ensure that they are made aware of government’s policies and to ensure that they are provided with the necessary tools so that they can represent The Bahamas’ position at regional and other fora.

In the realm of Foreign Affairs/international relations, this small team of dedicated and committed professionals, deployed between Headquarters in Nassau, the Passport Office and its overseas Missions around the world, has, as a strategic focus, a commitment to respond in an efficient and effective manner to day to day correspondence while developing institutional capacity and safeguarding institutional memory through documenting matters on file.

I am privileged to lead such a group of individuals who deliver exemplary service to the Ministry, the Government and the people of The Bahamas and who ensure that The Bahamas maintains its regional and international obligations and its good image in the international community.

I look forward to working with this wonderful team during the coming Budget year.

I also wish to state at the outset that my primary focus will be the establishment of a career foreign service, a foreign policy and procedures manual and the rationalization of our foreign policy.

Of equal importance is the reconvening of regular meetings of Heads of Missions which is of critical importance to maintaining an efficient foreign service. I am advised that a formal meeting with Heads of Mission has not been held since 1996. It is long overdue!

Mr. Speaker, the Ministry of Foreign Affairs is subdivided into seven technical divisions. These are:

In addition the Ministry of Foreign Affairs maintains nine overseas offices – four in the United States (the Embassy in Washington, the Consulates General in Miami and New York and the Mission to the United Nations), the High Commissions in London and Ottawa, the Embassies in Haiti, China and Cuba.

Mr. Speaker, in a concerted effort to reduce overcrowding at headquarters, boost staff morale, enhance efficiency and ensure the timely exchange of relevant information, I am happy to report that the relocation of my hardworking staff to more modern facilities situated on the second floor of the Goodman’s Bay Corporate Centre, Cable Beach is being completed as I speak. As a result of the relocation the Legal Affairs Division and the Drugs, Crime and Maritime Affairs Division, both of which have been housed in the Victoria Gardens for the past several years will be physically reincorporated into Headquarters. This will enable the Ministry to use its limited resources more efficiently.

The remaining years on the lease for the Goodman’s Bay premises as already contracted by the previous administration, should provide sufficient time for the government to complete a state of the art facility for the Foreign Ministry, the vision document for which has already been drafted by officials in the Ministry.

I note that the shadow Minister of Foreign Affairs in his budget presentation has mentioned that the Ministry’s web site does not advise of the relocation. I wish to stress that the move was still taking place when the Honourable Member spoke. Now that most of the staff have been resettled the web site has been updated.

Mr. Speaker, this is but one of the FNM Government’s campaign pledges being fulfilled after just one month in office.

Mr. Speaker, as Budgetary constraints permit, the Ministry’s former Headquarters on East Hill Street will undergo extensive renovations and upgrade to become, hopefully, the Ministry’s Ceremonial and Protocol Building or some other suitable Department of Government.

In this regard, it is imperative that the Government and private owners alike restore and adequately maintain historic buildings throughout the country so as to preserve the same and promote our strong heritage.

Far too often, we allow historic buildings to deteriorate and be destroyed whilst at the same time talk about "historic Nassau" and so forth.

Mr. Speaker, As you are aware, the Consular Division of my ministry is responsible for the issuance of visas, Diplomatic/Official passports to government officials, authenticating legal documents for international use, deportation and providing assistance to Bahamians in distress. This section also is responsible for arrangements for the repatriation of foreign nationals.

The Consular Division with its current staff of 11 in Nassau issued over 3,319 visas last year. This is separate and apart from the 4,000 visas referrals which are processed by the British Consular offices after approval from my ministry and approximately 8,000 visas issued annually by our overseas Consular offices.

The number of visas issued by the section has steadily increased over the years. In 2003 the office issued 1,440 visas; in 2004 - 2,345 visas; in 2005-3,354 visas and for this year, to 10 May, some 554 visas have been issued. I wish to reiterate that this does not include the visas issued by our overseas offices or the applications referred to the Consular section by British Consulates. The majority of the visas issued by the Consular Section in 2006 were to Haitian nationals (2,298). However, visas were also issued to nationals of a wide range of countries including Saudi Arabia, India, Philippines, China, Colombia, Guatemala, the Dominican Republic and Poland

The Consulate General in Miami also processes a significant number of visas. During 2006 that Office issued 337 visas to European nationals mainly from Eastern European countries; 253 visas to Haitian nationals; 114 to nationals of the Dominican Republic; 1,102 visas to nationals of Colombia and Guatemala and 608 visas to nationals of Asian countries.

Mr. Speaker, with regard to Cuba and visa requirements, the British Embassy in Havana previously issued visas on behalf of The Bahamas after referral to the Consular Division in Nassau. With the accreditation of The Bahamas’ resident Ambassador and the Embassy’s official opening in July 2006, The Bahamas Embassy in Cuba now accepts visa applications. Visas are being issued to Cuban visitors, businessmen and government officials.

My Ministry has been unofficially advised that effective 1^st May 2007, the Cuban Embassy has instituted a new policy with regard to Bahamian sponsorship of Cuban nationals. As a result, Bahamian individuals desirous of sponsoring Cuban nationals to The Bahamas must now submit a legalized affidavit to the Cuban Embassy before applying to the Bahamian Embassy for a visa. This adds another step to the visa process which could result in further delays in processing such applications.

Mr. Speaker, you no doubt recall the controversy and on-going debate surrounding the issuance of visas to a certain group of individuals. The previous administration had obtained the advice of an expert from the Commonwealth Secretariat on the functions of this section as well as a report from the Auditor General.

The Commonwealth expert made a number of recommendations to improve the functioning of this division, starting with the acquisition of additional space for this section. These include:

Over the next few weeks and months the Ministry will move expeditiously to implement the recommendations contained in the report of that expert.

The Central Passport Office in New Providence is responsible for the processing and issuance of national identity documents, that is, passports, Certificates of Identity and Emergency Passports in accordance with the Constitution, the Passport Act and related laws and regulations.

Mr. Speaker, the Central Passport Office, which consists of 28 officers, coordinates and oversees the administration of passport services in Freeport, seventeen (17) Family Island Districts and The Bahamas Missions which issue passports abroad. The Office also maintains statistical records pertaining to the number of passports and Certificates of Identity issued, renewed and reported lost or stolen for circulation to relevant Ministries and Departments.

Mr. Speaker, The Bahamas uniquely positioned in our hemisphere is fifty miles off the coast of the world’s only superpower and our archipelago spans to Cuba and Haiti. We are a small island developing state which shares a common history with the other developing island states of the Caribbean.

Despite the many challenges associated with our size, past experience has shown that when we harness our collective talent and work together with a common vision much can be accomplished. This point can not be over emphasized.

One shining example of this is The Bahamas’ success in maintaining its seat on the Council of the International Maritime Organization in four consecutive elections since 1999. A feat we expect to repeat this December. This was made possible by collaboration between the Foreign Ministry, the Bahamas Maritime Authority and the former Ministry of Transport

Other examples, Mr. Speaker, include the successful negotiation of a Comprehensive Maritime Agreement with the United States of America in respect of maritime law enforcement for interdiction of illicit trafficking in drugs, alien smuggling and the unsafe transport of migrants by sea.

Agreements were also concluded with the United States and the United Kingdom to permit dependents of diplomats of our respective countries to work, thereby broadening opportunities for dependents of diplomats accredited to each other’s countries to pursue employment within their respective professions. It is anticipated that similar agreements will be pursued with the governments of countries in which The Bahamas has resident Missions.

A Memorandum of Understanding concluded with the US that provides equipment and training to detect radioactive material in containers (Megaports Initiative) and the Container Port Initiative have improved security at the Container Port in Freeport.

Examples of other agreements negotiated under the aegis of the Foreign Ministry include the Bahamas/China Ocean Shipping Agreement, Economic & Technical Cooperation Agreement and Cultural Agreement; the Bahamas/India MOU concerning Regular Consultation in the area of political, economic, commercial, scientific and cultural Cooperation and the Bahamas/South Africa General Cooperation Agreement.

Here again, the Foreign Ministry facilitated these negotiations in collaboration with the relevant Government Departments.

Mr. Speaker the Foreign Ministry also coordinates to a large degree, communication between US and Bahamian authorities to facilitate the assistance of the US Coast Guard in drug and illegal migrant interdiction as well as search and rescue.

The lease for the US AUTEC base in Andros, an undersea testing facility utilized by the US Navy and other Governments for radar and submarine testing was renewed in July 2006 at $11,050,000.00 per annum until 2012 as provided for under the terms of the Implementation Agreement signed in 2000. In 2005 a new management company took over the management of locally employed staff and a Bahamian General Manager was appointed to oversee daily operations. Matters related to pensions and upward mobility for Bahamians are being favourably addressed.

Mr. Speaker, the Ministry has prepared a Treaty Register of all treaties to which The Bahamas is party and it is regularly updated and available on the Ministry’s website. Recent treaty actions undertaken include the International Labour Organization (ILO) Convention 182 on Worst Forms of Child Labour, the London and Beijing Amendments to the Montreal Protocol on Substances that Deplete the Ozone Layer, the International Convention for the Suppression of Financing of Terrorism, the 1988 IMO Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation and its Protocol on Fixed Platforms located on the Continental Shelf, among others.

Mr. Speaker, The Bahamas is party to the European Convention on the Transfer of Sentenced Persons to Her Majesty’s Prison and it has a bilateral treaty with Cuba. To date some 12 -15 Bahamians incarcerated in Cuba have been transferred to Her Majesty Prison since the programme began in October 2001. Any inmate is eligible to apply for prisoner transfer after all appeals have been completed. In the case of inmates in Cuba, neither Government has denied the transfer of a single applicant to date.

With regard to Bahamians incarcerated in Cuba, there is a perception on the part of some inmates and their relatives that inmates are entitled to conditional release and subsequent expulsion from Cuba after serving one third of their sentence. What they fail to report is that this provision of the Cuban penal code is discretionary on the part of the Cuban Government and is dependent on factors such as good behaviour. It is therefore not an entitlement. Bahamian inmates are visited monthly by The Bahamas’ Ambassador in Cuba, care packages of newspapers and other items are provided on a regular basis.

Mr. Speaker this Division has oversight of matters pertaining to international drug control, crime prevention and criminal justice and international maritime issues. The officers in this division coordinate responses to questionnaires from national and international organizations as they relate to drug control by way of the National Drug Council and related treaties of the United Nations and the Organization of American States

This office also has responsibility for bi-annual US/Bahamas Joint Drug Task Force. Indeed, Mr. Speaker, today, 8 June, representatives of The Bahamas, Turks and Caicos and the United States will hold the first of these meetings for 2007 at the Ministry. The meeting is being chaired by the Permanent Secretary for National Security and Dr. Brendt Hardt, the US Charge d’Affaires

The Head of the DCM Division currently serves as The Bahamas’ Principle Representative to the Inter-American Drug Abuse Control Commission (CICAD) which is that organ of the Organization of American States responsible for all drug matters.

The Bahamas was an active participant in the negotiation of the 1982 United Nations Convention on the Law of the Sea, and was one of the few states to ratify the same in 1983. At present, The Bahamas is engaged in the process of delimitation of maritime boundaries and rebuilding mechanisms with the United Kingdom on behalf of the Turks and Caicos Islands and with Cuba. Once those are complete, negotiations will be initiated between The Bahamas, the US and Haiti. Incremental progress has been made in this area; we intend to continue dialogue towards establishing these boundaries.

In addition, this Department has been fortunate to have acquired the CARISLOTS software for maritime measurements to assist with the delimitation of maritime boundaries and officers from the Department have undergone extensive training in this regard.

As I indicated earlier Mr. Speaker this Division monitors, researches and provides policy advice on political developments worldwide especially in organizations like the United Nations System, the Commonwealth, the Organization of American States and CARICOM. It also spearheads the election of The Bahamas’ candidatures in regional and international organizations.

With your indulgence Mr. Speaker, I wish to highlight the work of the Official Desks under the supervision of this Division which again reflects the Government’s unwavering commitment to participating in regional hemispheric and international organization including CARICOM, the OAS, the Commonwealth and the United Nations. Mr. Speaker, I want members of this Honourable House to understand that in most instances when I speak of these "official desks" I am speaking of a single officer.

The United Nations Desk Mr. Speaker works closely with The Bahamas Permanent Mission to the United Nations to coordinate The Bahamas’ responses and polices with regard to the many issues on the UN agenda. The UN system consists of numerous organizations and agencies which cover a wide range of issues affecting all aspects of human, social and economic development ,

The Permanent Mission of The Bahamas to the United Nations manages the country’s participation in and contribution to three of the five principal organs: the General Assembly, the Economic and Social Council (ECOSOC) and the Security Council.

Some of the noted accomplishments from 2006 to the present are:

Mr. Speaker, as the new Minister of Foreign Affairs, I had the honour to lead the Bahamas’ delegation to the 37^th session of the General Assembly of the Organization of American States.

Issues discussed were:

Mr. Speaker, this year the Bahamas celebrates the 25^th anniversary of our membership in that organization. Over the years Mr. Speaker, The Bahamas has benefited significantly in the areas of education (training and scholarships), Tourism, sustainable development, the environment, culture, gender affairs (women), the anti- drug effort, terrorism and law enforcement.

The OAS Desk works closely with the Bahamas Permanent Mission to the OAS (based at our Embassy in Washington) and is also responsible for the coordination and monitoring of the political aspects of activities of all inter-American institutions (PAHO, ICA, Inter-American Commission on Women (CIM).

As the OAS is still in the process of restructuring itself, the Ministry and its Permanent Mission to the OAS can help to shape its objectives by revisiting its education and training policies so that they reflect the challenges of small developing economies and by the institutionalized strengthening of the organization’ programs, funding and technical assistance to bilateral and multilateral donors. Attention is being given to ensuring the Foreign Service Officers currently posted at the OAS/Washington Embassy and become fluent Spanish speakers to better serve the work of the Ministry.

Mr. Speaker this Desk provides guidance to the Bahamian overseas offices on Commonwealth matters. It also seeks to raise the awareness among Bahamians in general and students in particular of the role of the Commonwealth through its Commonwealth Day activities. The desk also seeks to use the Bahamas’ membership in the Commonwealth for access to various levels of technical assistance for national development efforts such as from the Commonwealth Fund for Technical Co-operation (CFTC) and to monitor developments in the international arena by providing relevant and current information on political, social and humanitarian issues such as the escalation of political tensions in Zimbabwe.

Mr. Speaker, The Bahamas interfaces with CARICOM in all its activities with the exception of those pertaining to the Common Market trade in goods. This interaction affords The Bahamas opportunities to benefit from participation with the University of the West Indies, Caribbean Development Bank, CARICOM Social Security Agreement, Caribbean Tourism Organization the Caribbean Council for Science and Technology and the Caribbean Telecommunications Union among others.

Mr. Speaker, The Bahamas participated in the CARICOM Ministerial caucus which will meet on the margins of the recently held 37^th Regular Session of the General Assembly of the OAS to discuss the CARICOM/US Conference on the Caribbean to be held in Washington, DC 19-20 June, 2007.

A major challenge that has become a vexing problem between The Bahamas and CARICOM is the free movement of labour especially in light of the potentially explosive nature of illegal migration and the fact that The Bahamas already hosts more CARICOM nationals than any of its counterparts. The FMN government reiterates its previously stated position that The Bahamas will continue to cooperate with CARICOM on all aspects of Caribbean unity but The Bahamas will not become a party to the CSME.

This matter will be discussed further between the Prime Minister and other leaders of the region at the upcoming CARICOM Heads of Government Meeting. Mr. Speaker, I wish to advise that The Bahamas will assume the chairmanship of CARICOM following the term of Prime Minister Owen Arthur.

Mr. Speaker, This Division coordinates all technical assistance and cooperation offered to and by The Bahamas. This includes professional exchanges, fellowships and scholarships and national development projects.

This division also now has responsibility for international economic relations, environmental and sustainable development. And as such the Division will focus, inter alia, on identifying and monitoring trends in the international economy in order to contribute to the formulation of the policy framework for The Bahamas’ external economic relations, as well as to the development and promotion of environment policy and sustainable development activities to advance the interest of The Bahamas.

At present, Mr. Speaker, the Division is focused on the submission of Execution Plans to the Organization of American States to access more than half a million dollars in funding for two national development projects and one multinational project – all in the field of education, the processing of applications for a Japanese government-funded scholarship for research at the postgraduate level beginning in September 2008, the Chinese government-funded National Stadium Project and ongoing activities to mark The Bahamas’ twenty-fifth anniversary as member of the Organization of American States with the latest activity being essay, poster and mathematics competition for primary, junior high and senior high students in both the public and private schools throughout The Bahamas.

The Division is awaiting scholarship results from the OAS undergraduate and graduate scholarship programmes, where applications were submitted for studies in fields ranging from Occupational Safety and Health to Marine fisheries Science to Mathematics Education. Scholarship results are also anticipated by early August in the 2007 Chinese Scholarship Council’s programme when five full scholarships will be awarded. Last year four scholarships were awarded for studies in Medicine, Astrophysics/Astronomy, Sports Training and Economics/Finance.

Mr. Speaker, this Division is charged with the responsibility of providing protocol services regarding Government business at Government House, Office of the Prime Minister, my Ministry and other Government Ministries and Departments. They are also responsible for the accreditation of foreign and Bahamian diplomats and consular offices, the VIP Lounge at the Lynden Pindling International Airport, liaising with Foreign Missions and regional and international organizations such as CARICOM, OAS, UN and others to organize conferences, seminars and workshops that convene in The Bahamas. As such this Department is working closely with the government of South Africa in the preparations for the African Diaspora conference to be held in the Bahamas 1-3 August, 2007.

Mr. Speaker, I now wish to speak to the matter of the introduction of e- passports.

Mr. Speaker, the International Civil Aviation Organization (ICAO) is responsible for establishing the specifications for passport security features worldwide and has issued a blueprint for contracting states (188) to comply with thus ensuring the standardization of all passports by 2010.

The decision for The Bahamas to advance the ‘E’ passport initiative is based on the ICAO’s blueprint legislation enacted by the United States of America. This legislation affected visa waiver countries and required all nationals to be in possession of an ‘E’ Passport to enter the United States. Although The Bahamas is not a member of the visa waiver countries, it is one of three (3) countries worldwide that enjoys US pre-clearance privileges. Subsequently, it was recommended that The Bahamas institute an ‘E’ passport to ensure ease of entrance by legitimate Bahamian travelers into the United States.

Mr. Speaker, when we left office in 2002 we had commenced negotiations with Canadian Bank Note for the production of machine readable passports. It was later determined by the former administration that given the advances in technology and international security concerns that biometrics should be included in the machine readable passport initiative.

Consequently, Mr. Speaker, after a lengthy tender process negotiations were completed on December 22, 2006 and the former administration awarded the contract to Indusa Global LLC. This contract includes the provision of e-passports with biometric features, an electronic visa issuance system, secure immigration documents and border control systems.

Mr. Speaker, the contract has been signed and The Bahamas is on target for the implementation of electronic passports by early October 2007. All protocols will be in compliance with the International Civil Aviation Organization (ICAO) standards.

Mr. Speaker this means that all passports and Certificates of Identity will have certain biometrics features which will greatly reduce the incidents of fraud and other corrupt practices.

Mr. Speaker, as alluded to earlier, the cost of the machine readable passport/visa issuance system is approximately $13 million. This figure covers all hardware, software, service, training and consumables (the actual books):

(Hardware cost - $1,702,817.82

COTS Software - $ 182,169.08

Application Software - $1,672,000.00

Services Cost - $3,859,500.00

Consumables - $4,178,825.45

Maintenance - $1,197,335.62

Total Cost - $12,792,647.86)

Mr. Speaker it is worth mentioning that the Capital Budget for the 2007-2008 fiscal period discloses an increase of $4.825 million from $1.725 million to $6.3.

The major component of this increase is $4.575 million for the computerization of the Passport and Visa System.

Again Mr. Speaker, the FNM Government is fully committed to the swift execution of its campaign promise to the Bahamian people through the provision of new passports. It should be noted that given the cost of this new system it would not be prudent for overseas missions or the family island passport centres to issue Passports. Once the new system is in place the production of passports will only be possible at the Passport Office in Nassau. All other services such as submitting applications, interviews and collection will remain unchanged

.

Mr. Speaker, the new passport system will ultimately result in changes to the Consular Division as a part of its contract relates to the issuance of visas. Similarly, the passport/visas initiative will not only affect the way business is conducted by the Ministry of Foreign Affairs but will have a direct bearing upon the work of the Department of Immigration through the issuance of permits.

Mr. Speaker, the government is reviewing all of the implications of the change to the e-passport system and I anticipate that I will shortly be in a position to inform this Honourable House of the full extent of the required changes including the question as to any changes with charges/fees relating thereto as well as the expected time for implementation.

Mr. Speaker, The Bahamas maintains diplomatic relations with 70 countries. Since assuming office I have met with the Heads of all diplomatic missions and international organizations resident in The Bahamas. I also met with the Ambassadors of South Africa, Spain and Uruguay. In my discussions with each of them I assured them all that The Bahamas was committed to maintaining a close working relationship and of our willingness to advance all issues of mutual interest. The Ambassador of Nigeria recently presented credentials and the Israeli Ambassador-designate will shortly be presenting credentials.

Courtesy calls and meetings provide valuable opportunities for exchange and dialogue that facilitate the achievement of the government’s foreign policy goals and objectives.

Mr. Speaker, of particular importance to The Bahamas is our relationship with two of our neighbours, the United States and Haiti.

I can assure you that relations with our neighbours to the north are considerably better already than they were during the term when the member for Fox Hill was in my chair. Shortly after his election to office, the Member for North Abaco, the Right Honourable Prime Minister spoke with President Bush and discussed a wide range of issues. And, Mr. Speaker, as I indicated earlier, the Prime Minister will also shortly be traveling to Washington to meet with President Bush, along with his CARICOM colleagues to discuss a wide range of issues important to the region.

Mr. Speaker, on the issue of Haiti, this weekend, I had the opportunity to discuss the question of migration and travel between The Bahamas and Haiti with the Foreign Minister of Haiti. In our discussions we agreed that we would continue to build on the good relationship which exists between our two countries.

Mr. Speaker, it may also be useful to inform you of some of the steps we are taking with regard to Haiti. The Ministry of Foreign Affairs in conjunction with the Ministry of National Security are currently reviewing the question of our relationship with Haiti, the updating of our existing Agreements and the migration of persons between our two nations.

The Bahamas in conjunction with other regional and international organizations has and continues to work assiduously to improve the situation in Haiti. I wish to draw to your attention Mr. Speaker to the commitment by law enforcement officers at their 22^nd annual Association of Caribbean Police to assist the impoverished nation of Haiti. While addressing this august body, Commissioner Paul Farquharson noted that, in conformity with Bahamian foreign policy with regard to Haiti, The Bahamas is assisting Haiti in the fight against crime by training a number of its officers. Association President Commissioner Darwin Dottin explained that in June Commissioners will meet as CARICOM partners to focus on Haiti in its effort to combat crime and violence. He noted that there is a need for the Association to establish a law enforcement contact there.

Mr. Speaker, following the conclusion of meetings by a working group of Permanent Secretaries and Senior Officials from relevant agencies under the Chairmanship of the Foreign Ministry, a comprehensive analysis of the issue of illegal migration from Haiti was completed which led to the drafting of an agreement by the Foreign Ministry. After three negotiating sessions, it was initialed by the respective delegations of The Bahamas and Haiti and is presently under review by the relevant Bahamian authorities so that recommendations can be made to Cabinet.

Mr. Speaker, this administration has committed in its Manifesto 07 that it would accredit resident and non- resident Ambassadors to all countries with which The Bahamas has established diplomatic relations. All such decisions, in particular those related to the opening of new resident missions will be based on the rationalization of our foreign policy that I spoke of earlier and will take into consideration our fiscal realities. Mr. Speaker, as members should be aware, it is very expensive to open and maintain diplomatic offices. This administration wants to ensure that the Ministry headquarters, Passport Office and existing overseas offices are properly staffed and maintained before we move to open new offices.

Mr. Speaker, The Bahamas’ foreign policy objective seeks to achieve greater unity and solidarity between its national, regional and international counterparts to accelerate political and socio-economic integration and promote peace, security and stability. Support for these key ingredients therefore remains a priority in my Ministry. The challenge before us then Mr. Speaker is to ensure that support for economic readjustment and reform can be engendered and sustained not just within the Government but throughout the country. It is vital that support be strong in the civil service, Parliament, the Royal Bahamas Police and Defence Forces, in business and ultimately within the wider society.

Mr. Speaker, as the eyes and ears of The Bahamas abroad my Ministry will continue to alert stakeholders to developments in the international arena that could impact the country.

Mr. Speaker, as I indicated earlier I also have been given responsibility for the Hotel Corporation. It is therefore important that I inform members of this Honourable House of the Corporation’s activities.

The Hotel Corporation has legal ownership of the Lighthouse Beach Hotel in Andros and some 4,400 acres of land surrounding that facility and thousands of acres of property in Eleuthera. The Corporation has been actively meeting with a number of investors seeking to sell these properties. I am advised that a number of proposals are under active consideration and these will all be reviewed by this administration.

Mr. Speaker, as members of this Honourable House are aware, The Hotel Corporation has divested itself of the principle property it owned in New Providence, the Radisson Hotel and the surrounding land. The Corporation was given Cabinet approval to sell one of the houses it owned in the Westward Villas area. It retains one vacant property in the Prospect Ridge area and the house usually occupied by the previous Speaker while in Nassau is the property of the Hotel Corporation.

The Hotel Corporation also serves as the government’s representative in the the joint venture agreement with the I-Group for the Mayaguana project. Representatives of the Hotel Corporation sit on the Board of Mayaguana Island Developers Ltd and the Mayaguana Management Company.

The Hotel Corporation also holds title to all of the casinos in the Bahamas and enters into management agreements with the casino operators. Previously casino fees which were provided for in agreements between the Corporation and various casino operators were paid directly to the Corporation. However a decision was taken that such fees are now deposited in the Consolidated Fund even though the management agreements were never amended. This administration hopes to resolve this anomaly in the near future.

Mr. Speaker, with regard to the sale of the Hotel Corporation’s property to Baha Mar, given the importance of this transaction to the future development of tourism in The Bahamas it may also be useful to provide members of the details of this transaction.

Pursuant to an Agreement in Principle between Cayside Development Limited and the Government of The Bahamas dated 28^th April, 2004 the following agreements, inter alia, were entered into by the Government, or its agencies, for the proposed redevelopment of Cable Beach:

Under the HCB Agreement, the Hotel Corporation of The Bahamas (HCB) agreed to sell and Baha Mar Development Company Ltd. (Baha Mar) agreed to purchase the following properties for the aggregate purchase price of $39,000,000.00:

The purchase price of $39,000,000.00 in the HCB Agreement (per Clause 2 (b) and Schedule 8) has been allocated to the various properties as follows:

Mr. Speaker, the government realized in total some $45 million from this transaction. The following table shows how the proceeds were distributed.

Also, under the HCB Agreement, Baha Mar has agreed to construct at its cost, a new Gaming Board Building and a new Bahamas Development Bank Building on land to be provided in the project area (or paid for) by Baha Mar. Upon completion of these buildings, there will be an exchange by HCB and Baha Mar of the existing Gaming Board/Development Bank Parcels with the new replacement buildings. This aspect of the Agreement remains pending.

Under the Treasurer’s Agreement for Sale dated 6^th April, 2005, the Government has agreed to transfer the following properties for an expressed consideration of $5,962,500.00 and the satisfaction of certain conditions precedent under the HOA:

Also, under the Treasurer Agreement, Baha Mar has agreed to construct at its cost, a new Royal Bahamas Police Station and a new Cecil Wallace Whitfield Building on land to be provided (or paid for) by Baha Mar. Upon completion of these buildings, there will be an exchange by the Treasurer and Baha Mar of the existing Royal Bahamas Police Station and Cecil Wallace Whitfield Buildings with the new replacement buildings. This aspect of the Agreement remains pending.

4. Heads of Agreement:

Under the Heads of Agreement (Section 13), the Government has agreed to enter in to a Golf Joint Venture with Baha Mar. The Government has agreed to make available for this development 103 acres, which is presently owned by the Water & Sewerage Corporation. Baha Mar has the option of including such portion of the 103-acre parcel (by means of a 99-year lease) into the joint venture as would be required for a World Class signature golf course. The Government would hold an equity interest in the golf joint venture. Baha Mar also has an option to purchase the unused balance of the 103-acre parcel on terms for residential and resort development.

Mr. Speaker, I wish to bring the following to the attention of the members of this Honourable House:

We believe it is up to a responsible nation and people of good will to build bridges across the divides which have been created. Fundamentally, we believe most people yearn for the same things – peace, security and opportunities for our families and communities. Bound by our common human aspirations, we can contribute to building a better Bahamas – that is what this new Ingraham Administration is all about. Thank you, Mr. Speaker.