The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A SENIOR private sector executive warned yesterday that investors might be “scared off” and “nervous” that with a year left before Freeport investment incentives expire no firm position had been put forward by the Government, describing the situation as “unfortunate”.

Robert Myers, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman and head of Freeport-based VTrade Company, told Tribune Business that the fact that the Government has yet to “figure out” what they intend to do does not inspire confidence in Freeport investors.

“I wouldn’t invest in Freeport until that is sorted out. If Freeport and the Bahamas government can’t figure out what they want to do with that well in advance of its expiration, meaning right now it doesn’t give me any confidence as a businessman that they are serious. I’ve been saying that for a year and a half and a year and a half later we are still no closer to having that matter sorted out,” said Mr Myers.

Mr Myer’s comments come after Minister For Grand Bahama Dr Michael Darville told Tribune Business on Wednesday that the Government was by no means “sleeping on” Freeport’s expiring investment incentives, confirming that the Ministry of Grand Bahama had completed two position papers on the issue.

Dr Darville said that a consultancy group would be brought in to “substantiate” his ministry’s findings. “We are ploughing forward and I am convinced that by October all that is necessary for us to begin to present our case to the Grand Bahama Port Authority, the Hutchison Group and the business community would be completed,” said Dr Darville.

Among the exemptions that are provided for under the Hawksbill Creek Agreement (HCA), which are due to expire on August 4, 2015, are exemptions from various forms of taxation, including real property tax and business licence fees. The HCA exemptions were originally established in 1955.

“The situation that is happening in Freeport is unfortunate,” Mr Myers said. “I think that any new business would be scared off by the fact that with less than 18 months to go these are the critical decisions with regards to agreements haven’t been made and would make any investor very nervous. A company looking to go into Freeport and invest would be very hesitant to go into Freeport without knowing what the HCA status is going to be with less than 18 months to go,” Mr Myers said yesterday.