Madam Speaker,
As a nation, we are uniquely vulnerable to climate change.
We contribute so little to the problems of the world, and yet we suffer the most dire consequences.
Conservative estimates suggest that over 40 per cent of our national debt exists because of climate change, not because of mismanagement, not because of poor planning, but because we live in the path of storms we did not create.
Storms that are more frequent because of carbon emissions and pollution that we are not responsible for producing.
Yet, whether we are responsible for climate change or not, we have a responsibility to the people of this nation to invest in our future so that our ambitions can remain unimpeded.
So, even as we are locked into a cycle of repairing and rebuilding, we must invest in education, we must expand healthcare, we must strengthen our social safety net, advance our energy reform and cost savings agenda, and create meaningful opportunities for our people.
We don’t get to neglect these responsibilities simply because we happen to live in Hurricane Alley in the midst of the climate change crisis.
What’s needed today, more than ever, are innovative, strategic, and sustainable solutions taking on our most pressing climate-related challenges to create opportunities for a more resilient and prosperous future for our nation.
And that is why we are here today.
Madam Speaker,
I thank the Lord for each year that goes by without a major storm hitting our shores.
The painful reminders of Dorian are still with us.
But the lessons are with us as well.
One of the things we have learned is that disaster preparation, and the funding and infrastructure that supports it, must be proactive. It must be sustained, and it must also be robust enough to account for the threats we face.
The resolution before this House today seeks to ensure that when disasters strike, our Government has the financial capacity to respond swiftly, effectively, and equitably.
In decades past, disaster management in The Bahamas was, unfortunately, reactive, focused mainly on disaster emergency response in the aftermath of a storm.
Dorian laid bare how woefully unprepared we were for this era of more frequent and more intense storms.
We cannot allow the flawed response and recovery mechanisms that were exposed by Dorian to be repeated.
This is why, in recent years, this administration has transformed our approach from managing disaster responses to managing disaster risk.
The evolution from the former National Emergency Management Agency (NEMA) to the Disaster Risk Management Authority represents a fundamental shift in mindset.
Today, our focus is on risk reduction, mitigation, preparedness, AND recovery.
We are focused on building resilience before the storm and then rebuilding stronger after it.
The passage of the Disaster Risk Management Act, 2022, was a turning point. It provided the legal foundation for a comprehensive, structured, and accountable disaster management system.
The Act established the DRM Authority and mandated a new model of governance: one that integrates national and local planning, emphasises risk-informed investment, and strengthens coordination across ministries and agencies.
But Madam Speaker,
This change necessitated a new model for funding disaster-related efforts.
That is why the Act mandates something crucial: a Comprehensive Financial Strategy for Disaster Risk Management.
This strategy was prepared by the Ministry of Finance in consultation with the DRM Authority and supported by the Inter-American Development Bank. It is a practical, evidence-based, best practice-aligned plan that funds every stage of our disaster risk management cycle.
We are funding risk analysis, which allows us to know the extent of the risks we are facing.
We are funding risk reduction, so we can take decisive, proactive action to minimise damage before it occurs.
We are funding risk preparedness, so we are ready when storms arrive, and we are funding our response capabilities, so we can act in those critical first hours.
We saw just how critical those first hours are after Dorian. And we will not allow a repeat of that scenario on our watch.
We are funding rehabilitation and recovery, so we can restore what was damaged and build back stronger than before.
And we also understand the need to put financial protections in place so that our response and mitigation efforts do not come at the expense of our many other priorities that are moving this nation forward.
Madam Speaker,
This strategy was developed by experts using advanced risk analyses and post-disaster risk assessments to identify our risk profile, quantify potential losses, and enhance our financing capacity, ensuring that our mitigation and response mechanisms are adaptive and resilient.
The findings from the work of these experts are sobering.
The government faces potential losses of up to $700 million from major hurricane and flood events.
$700 million, Madam Speaker.
That is the scale of damage the government must be prepared to face from a disaster.
In response, the strategy recommends a layered approach: a blend of investments, insurance, and reserves to diversify risk and reduce fiscal pressure.
There is the Caribbean Catastrophic Risk Insurance Facility valued at $50 million.
There is the National Credit Line valued at $150 million and a Contingent Credit Facility valued at $100 million.
There is risk reduction through the Disaster Prevention Fund for $6 million, as well as DRM’s annual budget allocation of $60 million.
And, of course, there is the $17 Million Disaster Emergency Fund, which this resolution addresses.
For risk that exceeds these layers, loans and other ex-post instruments cover a total value of $251 million.
Each dollar has been allocated with a purpose.
This comprehensive system ensures that every dollar invested strengthens our national capacity to anticipate, respond to, and recover from disasters.
And we are not stopping there.
Madam Speaker,
This Government is actively building infrastructure resiliency across our archipelago.
Tomorrow, we will mark a significant milestone with the handover of the Abaco Multipurpose Hurricane Shelter.
It’s been a long time coming. But change has come.
Despite some delays, we were committed to getting the job done before the year’s end.
And now, the people of Abaco will have a shelter built for the purpose of surviving storms as strong as Category Five. And, when not in use as a shelter, the facility will also serve as a hub for community programmes and outreach.
This is a major milestone that I must commend all stakeholders involved for seeing it through to the end. And I must also thank the people of Abaco for their support and patience throughout this process.
Madam Speaker,
The resolution before us represents another important step forward toward funding our disaster risk management efforts.
Under Section 19 of the Disaster Risk Management Act, the Disaster Emergency Fund must be maintained and used to finance response, rehabilitation, recovery, and financial protection instruments.
The experts have determined that this Fund should hold a minimum of $17 million to ensure adequate liquidity following a severe natural disaster.
This Resolution authorises the transfer of $17 million from the dormant account proceeds held by the Treasurer, which are now part of the Consolidated Fund, into the Disaster Emergency Fund.
These dormant accounts are, essentially, unclaimed resources that can now serve a national purpose. Resources that were sitting idle can now be used to invest in our future and serve as the first line of defence when disaster strikes.
Currently, regulations and operating procedures are being developed to ensure the efficient and effective management of these funds.
The regulations will clearly outline what the funds can be used for, how unused funds can be invested to grow the fund, what will activate their use, and the appropriate steps that must be taken to ensure accountability.
These funds ensure that when disaster strikes, the Government can mobilise immediate assistance without delays or dependence on external financing.
When a hurricane passes, in those first hours, families need food and water.
They need medical supplies and shelter, among other essentials.
The Disaster Emergency Fund ensures the Government can act immediately to provide the essentials when crises occur.
In addition to the Emergency Fund, as I mentioned, there is also a $6 million Disaster Prevention Fund, which supports proactive investments, such as upgrading emergency shelters, advancing early warning and communication technologies, and building local capacity through training and community preparedness programmes.
Together, these funds form a complete system.
One fund strengthens resilience before disasters.
And the other ensures rapid recovery after them.
Madam Speaker,
By capitalizing this Fund today, we are advancing the goals of our Comprehensive Financial Strategy for Disaster Risk Management.
And we are reducing potential losses by 45 per cent over the next decade, which will improve fiscal resilience so that each storm that makes landfall does not drive us deeper into debt.
We cannot prevent storms from forming.
But we can strengthen our nation’s capacity to withstand and recover from them.
That is what today is about.
You see, we may be small in size, but we are not short on ambition or ingenuity.
This administration’s investments in a more resilient power grid, in blue carbon credit research, in the expansion of protected areas, and, of course, in the National Youth Guard, all form a part of the wider plan.
We know what is at stake, and we are advocating loudly and persistently on the world stage to push for fundamental changes in how climate and disaster relief funding operates.
And while our advocacy takes root, we are developing our own homegrown solutions.
We are determined to be a force for change within our nation and within the world.
Today represents another step toward that needed change.
Madam Speaker,
I must express gratitude to those whose hard work has made this possible:
The Minister of State, the Honourable Leon Lundy, for his leadership and coordination;
Permanent Secretary Marcellus Taylor;
Executive Chairman Alex Storr; and Managing Director Aarone Sargent;
For their dedicated efforts in advancing the institutional and financial architecture of the DRM Authority.
I also extend gratitude to the Ministry of Finance and Inter-American Development Bank for their technical expertise in shaping the Comprehensive Financial Strategy, and to the Central Bank of The Bahamas, for its support in identifying and facilitating the source of funding.
Thank you all for your diligence in ensuring that we are better positioned to weather the storms of the future.
Our vision is taking root and bearing fruit.
Today, we are taking another important step forward toward a modern approach to disaster risk management.
We are leaving behind the reactive and outdated systems of the past and moving toward a necessary proactive strategy that will save lives and livelihoods for years to come.
Thank you, Madam Speaker.