NASSAU, Bahamas(CMC) –The Bahamas government has announced an increase in the minimum wage as well as placing 38 new items under price control amid efforts to diversify the tourism-dependent economy.

In a radio and television broadcast on Tuesday night, Prime Minister Philip “Brave” Davis said the minimum wage would be increased from US$210 to $260 a week, retroactive from July for workers in the public service while workers in the private sector will benefit from the change in January next year.

Davis said the timeline is to give employers time to prepare for the increased expense.

“Nothing is more important than helping families make ends meet than higher wages. The last time the minimum wage was raised in the country was 2015. A new increase has been long overdue,” Davis said.

“The higher minimum wage would benefit tens of thousands of Bahamians. Will the increase help? Yes, it will. It was long-awaited, long overdue and the extra money every week will make a difference.

“However, we are aware that this will not eliminate the hardship of trying to make ends meet in today’s economy. Instead, it represents progress on the way to a liveable wage. The wage was negotiated by the National Tripartite Council, which includes the government, representatives from the private sector and unions,” Davis said.

“Our shared goal was to raise the minimum wage that will have a negative impact on unemployment or job growth and we believe that has been achieved, Prime Minister Davis said in his near one-hour broadcast in which he also disclosed that as Bahamians continue to grapple with the high cost of living compounded by inflation, 38 new items will be subject to price controls.

Davis said that this means that the government will limit the wholesale and retail markup on items like diapers, and food including chicken, eggs, bread, bananas, apples, oranges, broccoli, onions, and potatoes.

He said these items are being added for at least a six-month period, following which the government will review and evaluate the impact on businesses and consumers. He said the profit margin on price-controlled drugs is also being reduced to provide additional relief to Bahamians.

“Our goal for the Bahamian economy goes beyond recovery. The goal simply can’t be to return to the way things used to be because, let’s be honest, there has never been a time when our economy created enough opportunity for Bahamian advancement and ownership. Returning to the past economy isn’t the goal, creating a new more inclusive economy is the goal,” he said.

Prime Minister Davis said that while many Bahamians have achieved ‘remarkable success, thousands more can, and should join them”.

In his broadcast, Prime Minister Davis said that the coronavirus (COVID-19) pandemic “surely proved” that there is a need to diversify the economy beyond tourism, telling the population “I want you to know we are fighting for a fair, unbiased treatment of our financial services industries”.