The Government has spent $16 million in unemployment benefits to displaced Bahamian workers over the past six months, Minister of National Security, the Hon O A T ‘Tommy’ Turnquest confirmed.

Addressing the two-day Caribbean Community (CARICOM) Heads of Social Security Meeting in New Providence, October 22, Mr Turnquest said the payment, made possible through the Unemployment Benefit by the National Insurance Board, was part of Government’s “decisive action” to bring relief to Bahamians during the current world economic situation.

The money was paid out to 12,000 unemployed Bahamians.

“This is money that, from all indications, has been well spent,” Mr Turnquest said. “It has helped to compensate for loss of wages and has contributed to our efforts to sustain our economy.”

The current world economic situation has “pointed out shortcomings” and “a lack of flexibility” in many of the regional social security schemes and has forced regional governments to re-examine those systems, he said.

The current world recession has also forced, particularly regional governments, to re-examine their social security systems now and in the way forward, he said.

Social security systems have also been taxed by a decrease in the contribution base, the increasing demands for benefit payments to offset the financial challenges of the current economic environment, and the “strident calls” facing the region to increase benefits and expand coverage as “real dollar values are declining,” the Minister said.

“Economic trends in our countries and our region have not been encouraging in recent years, as globalization and trade liberalization continue to bring about significant changes in the global economy,” Mr Turnquest said.

“Many of our countries have struggled, and continue to struggle, particularly over the past year, with negative or declining economic growth, resulting in consequential changes in all facets of national life, particularly in the economic and social areas. We know that the current economic crisis has compounded the situation for all of our countries,” Mr Turnquest added.

In these circumstances, he added, the need for, and value of, social security systems have come into sharp focus even as financial protection through social security has gained in acceptance and importance worldwide.

“In the face of the current crisis, the Government of The Bahamas has acted decisively and quickly in many areas,” Mr Turnquest said.

Source: Bahamas Weekly