The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Grand Bahama Chamber of Commerce says it has been given little confidence that the Government will amend the Budget’s new and increased taxes, indicating that it is pressing on with its proposed Judicial Review action.

In a letter sent to its membership, the Chamber said it had now received a legal opinion and advice from its attorneys, Callenders & Co, on the merits of bringing such a Supreme Court action that will likely seek a declaration that the new and increased taxes violate the Hawksbill Creek Agreement.

“While discussions with the Bahamas government are continuing, we have not yet received any definitive or progressive response that gives us confidence that there will be serious review and amendment to the new Customs regulations or the other issues that are impairing confidence in Freeport’s economy,” the Chamber told its members.

Its message came as concerns were expressed that the timing of Ian Fair’s decision to step down from the Grand Bahama Port Authority/Port Group Ltd chairmanship had created another leadership vacuum at the quasi-governmental authority at the worst possible time.

One private sector source, speaking on condition of anonymity, said: “What is dismaying and concerning is that the departure of Ian Fair represents a continuity of the absence of leadership at the level of the Port Authority.”

Pointing out that the chairmanship had lacked stability since Edward St George’s death, with the Port having gone through Julian Francis, Hannes Babak and even Felix Stubbs, the source said this “must be of concern to the licensees”.

The source echoed Tribune Business’s report on Wednesday that Mr Fair’s departure had come at a time when, apart from the issues created by the 2013-2014 Budget’s new and increased taxes, there is also the expiring real property tax and Business Licence incentives, which have to be negotiated with the Government if they are to be extended beyond 2015.

They added that there was also the potential impact of Value-Added Tax (VAT) and international trade agreements on Freeport to be taken into consideration, describing them as “the many issues in need of resolution and guidance by the Port”.

“It just adds to the uncertainty that makes it difficult for foreign and local investors to do business in Freeport, and for Freeport to be attractive to potential investors. It’s a concern,” the source summed up of Mr Fair’s departure.