The Tribune

BY NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A LEADING QC has called on the government to “immediately” confirm the extension of expiring Hawksbill Creek Agreement (HCA) incentives until 2054, arguing that Freeport needs “certainty” and “tax stimulus” to grow.

Fred Smith QC, the Callender’s & Co attorney and partner, told Tribune Business that he was “monumentally disappointed” that the Christie administration had yet to engage the Grand Bahama Port Authority, the licencees and the residents of Freeport in a “civil discussion” about extending the tax benefits under the HCA that are due to expire in 2015.

“It is an insult to the Freeport community. Freeport has been in the economic doldrums for so long and government after government have promised to do whatever it can to lift Freeport’s economy,” said Mr Smith, accusing both the present and previous administrations of harassing and unlawfully taxing port licencees.

“Instead of helping they have created more and more obstacles, breached the Hawksbill Creek Agreement, imposed amendments to the Customs Management Act to increase taxes, imposed an environmental levy and have simply gone out of their way to make business in Freeport more awkward, expensive. This is no way to behave in a public-private partnership (PPP), which the Prime Minister recently touted in the Caribbean, which exists between the Port Authority, the licencees and the government.

“The Hawksbill Creek Agreement and Freeport are the quintessential examples of a successful PPP. Instead of engaging us successive administrations have been downright obstructive and counter-productive.”

Among the exemptions provided for under the 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.

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.

“The bell will soon be tolling for the passing away of certain tax benefits under the HCA in 2015,” Mr Smith said. “These are fundamental matters which ought to have been the subject of continued sensible rational, non-partisan, non-political discussion between the Port Authority, the government, the licencees and the residents of Freeport.

“There is no place for the government to be playing political football and brinkmanship with the lives of Bahamians, who have eked out a survival over the last 10 years in Freeport. I call on the government to immediately confirm that they will extend the business licence tax exemptions and the real property tax exemptions until 2054.

“We do not need to have them extended for a short period. Freeport’s economy needs certainty, predictability and tax economic stimulus to grow. The government needs to do something to help the licencees and not hinder them,” said Mr Smith.