By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
PRIME Minister Perry Christie said yesterday that “something went drastically wrong” with Freeport’s economy over the last 10 years as he defended the government’s “minority equity stake” in the principal landholding companies in the city based on a Memorandum of Understanding (MOU) with the Grand Bahama Port Authority (GBPA).
While dismissing claims of “coercion” by Opposition Deputy Leader and East Grand MP K Peter Turnquest, Mr Christie told Parliament yesterday during the debate on the Grand Bahama (Port Area) Investment Incentives Bill 2016 that government involvement would provide a greater degree of investor confidence and ensure that decisions conform with government policy.
“There is no coercion. Any grouping such as that in a position to run a city must know that the time has come for there to be a new paradigm; that future generations of Bahamians would not accept as is. As a result they were very forthcoming in being able to say we agree that you should have greater participation as a government. If you take the last 10 years of Freeport and you compare it with Abaco, Exuma, with New Providence, something went drastically wrong.”
Mr Christie added: “The whole purpose in now putting government involvement is that people will have greater degree of confidence in investing in Grand Bahama knowing that the government is involved in this matter and, with respect to us having minority directors, it is to ensure that the decisions conform with government policy, nothing more. It is to ensure that Bahamians are protected and that government policy is comfortable with the decisions of those companies.”
Under the MOU with the GBPA, the government will acquire a “minority equity stake” and “participation in governance at the board level” in the principal landholding companies in Freeport, such as the Grand Bahama Development Company Limited (GB DevCo) and Freeport Commercial & Industrial, via the vehicle of a new company.
Comments
Alex_Charles 7 years, 8 months ago
Bend or Break.... it haunts you doesn't it?
realfreethinker 7 years, 8 months ago
“The whole purpose in now putting government involvement is that people will have greater degree of confidence in investing in Grand Bahama knowing that the government is involved in this matter and, This man is beyond delusional. How did that great investment " Bahamar " go with "government " involved? Ig the GBPA know best for itself they would these grubby,sticky fingers clowns far away from them. What a joke
Fitmiss 7 years, 8 months ago
I had to reread that statement again just to make sure I read it correctly. I could be wrong but I do not think foreigners or Bahamians alike trust anything that the Bahamian government is a part of. Government involvement in Grand Bahamas has not been promising in the past. I hope the prime minister has a better solution and will not state the obvious that something went wrong with Freeport's economy. The unemployed and those who have lost their homes have known that for awhile. Please don't tell me he is just playing catch up. Give concrete solutions for help right now and then further along.
BaronInvest 7 years, 8 months ago
As a foreigner i basically understand it as a warning not to invest there because crooked morons are going to 'regulate' my investment to their best private interest.
Romrok 7 years, 8 months ago
Freeport's economy went wrong 45 years ago. You can tell by all the roads laid out for subdivisions that were never built now that we took over. All them damn foreigners taking our jobs and our chance to be great. Look what we did with it, jack ****. I hope all those involved are satisfied. And the few grand bahamians that supported it get another 10 years of building that one bridge over the waterway. Anywhere else in the world that would be pathetic, here it's job security.
bogart 7 years, 8 months ago
Dear Honourable Prime Minister of the Bahamas, you are absolutely correct. Grand Bahama has also produced more Cabinet Ministers per capita than other islands I believe in many portfolios over the past 20 years from both parties trying to do their jobs but noone focuses on the banks as the vehicle in developing the community they serve. The major problem is the activities of the banking sector which all persons come into contact with businesses, working persons, pensioners, savers, builders, loan customers, overdrafts, interest rates, bank fees, working capitol, bank drafts, debit cards fees, salary deductions of almost the entire salary, credit cards, long lines, poor service, repossessed businesses, homes, competitiveness, same interest rates in Nassau as in Freeport with different market conditions!!! etc. Many risky loans or marginal loans were given out, likely following the mandates from some overseas headoffice presuming to know the economy, market, culture better than Bahamians , remember the days with banks advertising financing up to 90-95%, marginal loans in a small economy where there are only so many businesses allowed in certain areas by Freeport restrictions etc. Giving out marginal loans knowing that one or two hurricanes could severely impact the loan customers and businesses to repay was insane. (If a HUrricane were to hit Nassau loan customers would not be able to repay loans if businesses could not reopen and staff laid off or unemployed)) Using indeminities insurances to recover loan risk was insane especially when repossessed houses sold further reduce the prices of houses held as collateral by the same banks!!! Banking policies for Freeport should have been different from Nassau with a wider diverse stable catchment pool of customers just as Nassau banking policies are different from New York or Toronto. The govt should have a public committee to look into the banking practices which have a major impact on family island communities on their success or failure.. After mining the community the banks leave and depopulating of the islands begin and the taxpayers indirectly still have to maintain the roads, govt buildings etc and now have a larger population straining the resources of Nassau. Many other family islands are affected.
Socrates 7 years, 8 months ago
no small country has the skill level and population numbers to support continuous, significant development.. you need outside help... we dont want it so we get what we deserve.. nothing...
BaronInvest 7 years, 8 months ago
The United Kingdom just decide to leave the EU - that they would SAVE 350m a year just on health-care. They forgot they their science labs get funded with 1.6 billion a year by the EU every year. Not to mention their real-estate market just crashed because no european wants to own property in the UK anymore. In short, hostility against foreigners always bites you in the ass.
Monaco, Luxembourg, Cayman Islands, Andorra - just to name a few examples are all small countries that do incredible well. The difference is they don't have a crooked government that only works in their own private interest. You have a corruption problem, that's why you suffer.
arussell 7 years, 8 months ago
This government is the worst and corruption is the only thing they same to be good at.
SP 7 years, 8 months ago
.............................That's 350M a WEEK! ......Lying Moron ..................
http://www.express.co.uk/news/uk/6955...">http://www.express.co.uk/news/uk/6955...
The only thing you said with any truth is we have a corruption problem.
Foreign investment participation is vitally important to development of any country, providing the "right" foreigners are identified and includes local partnerships to ensure a percentage of profits remain in the local economy to stimulate more growth.
Based on your grossly misleading statements, you will only add to the corruption problem!
BMW 7 years, 8 months ago
Freeports economy was killed by a speech given at the gate of a refinery by the person responsible for the countries problems today.
John 7 years, 8 months ago
Do not forget South Eleuthera..were all the investors including the owner of Pan American Airlines, were kicked out and forced out by the government. South Eleuthera was the playground for the rich and famous with jet service several times a week. There were farms, aand canning factories, and the Us army base, and second home owners and yatcth owners. everyone had a job and those who wanted had two and three. Who was the minister of Agirculture when Hatchet Bay plantation met its untimely demise?
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