The Tribune

By DANA SMITH

Tribune Staff Reporter

dsmith@tribunemedia.net

FORMER Health Minister Dr Marcus Bethel has called for "wide consultations" on the Hawksbill Creek Agreement, claiming the agreement created a "dilemma" in Grand Bahama.

Dr Bethel described the dilemma as "primarily a political issue with vast social and economic repercussions for Grand Bahama," explaining the city was left with no efficient regulatory authority.

The agreement, signed in 1955, helped create Freeport as a duty free zone and gave the Grand Bahama Port Authority (GBPA) exclusive rights to develop land and grant business licenses in the area.

"The governments of the Bahamas, since 1955, have historically maintained a 'hands off' approach to the affairs of Freeport/Lucaya until circumstances demand intervention, usually as a result of public pressure," Dr Bethel said.

"The judiciary has repeatedly affirmed the regulatory powers of the GBPA, thereby restricting meaningful intervention by the central government in the day-to-day affairs of the Port area.

"The GBPA, on the other hand, has taken a laissez-faire approach to performing its regulatory duties in areas such as environmental regulations and public utilities, resulting periodically in great distress to businesses and the public residing within Freeport and in neighbouring communities, such as Eight Mile Rock."

Dr Bethel named "outcries" over the Grand Bahama Power Company's electricity rates and Bahama Rock's underground blasting as examples of "great distress."

He also noted: "Foreign direct investments and domestic investments continue to be hampered by the cumbersome and conflicting uncertainties surrounding the roles of the GBPA and the central government."

Previous governments, including the UBP, PLP, and FNM have "lacked the political will or interest" to promote or make changes to the agreement, Dr Bethel said - instead preferring to "tinker at the edges."

"Hence the resolution of conflicts amongst the principals to the agreement will require the leadership of the government of the Bahamas convening negotiations with the parties to address and make recommendations for amendments to the Hawksbill Creek Agreement if deemed necessary," he said.

Dr Bethel explained the outcome of negotiations could result in many possible scenarios: no amendments to the agreement; amendments to the agreement that vest regulatory authority in the central government; amendments to the agreement that vest regulatory authority in a local elected body; amendments to the agreement that vest taxation and budgetary authority in an elected body other than central government; amendments to the agreement that will require the GBPA to "perform its regulatory duties as defined and agreed positions on those provisions scheduled to fall away in 2015"; or the repeal of the agreement.

"The process of wide consultation would ensure that all stakeholders have a voice in the negotiations and outcome," Dr Bethel said.

He noted the economic and social development of East and West Grand Bahama are "inextricably tied" to economic and social developments in Freeport, saying the present government's proposed extension of some provisions of the Hawksbill Creek Agreement to East and West Grand Bahama should therefore follow his proposed review of the Agreement.

" The Christie government must not 'kick the can down the road', but must act decisively and is encouraged not to delay in formulating and initiating a consultative process to address these pressing issues because the future economic and social health of Grand Bahama hangs in the balance," he said.