The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Sir Jack Hayward has hit out at his fellow Grand Bahama Port Authority (GBPA) shareholder for ‘censoring’ his Christmas message, and eliminating all passages that slammed the Government over its approach to Value-Added Tax (VAT) and Freeport’s expiring tax breaks.

Documents obtained by Tribune Business show that the ‘published version’ of Sir Jack’s Christmas message, which appeared in the Freeport News last Thursday, was heavily edited to omit even the mildest criticism of the Christie administration.

In particular, a five-paragraph section, in which Sir Jack demanded “far, far more co-operation” from the Government if Freeport and Grand Bahama were to prosper, was cut in its entirety.

This section also contained Sir Jack’s demands for “a quick decision” by the Government on what to do with Freeport’s expiring investment incentives, which ‘sunset’ in August 2015.

The GBPA honorary chairman’s warning that “delays” over investment approvals were causing “frustration and anxiety” among Freeport residents and businesses, and might force investors to take their projects elsewhere, also failed to make it into print.

As did Sir Jack’s hint that the Government’s VAT tax was unnecessary, and doomed to failure, given that it had failed to collect more than $550 million in outstanding real property taxes.

His suggestion that Freeport was a ‘tax free zone’ until 2054, and that VAT should not apply in the city, also did not see the light of day - until now.

The published Christmas message condensed all this into a single, vague line, which stated: “We still need clarity on VAT and concession renewals.”

And this newspaper can also reveal that Sir Jack is blaming his fellow GBPA co-chair, Sarah St George, and Freeport-based attorneys for watering down his Christmas message’ to such an extent that it excludes all mention of the word ‘government’.

An unhappy Sir Jack, in a December 12 e-mail to Kevin Seymour, the Grand Bahama Chamber of Commerce president, enclosed his “original, real Christmas message that I prepared with great care”.

Explaining what had happened, Sir Jack told Mr Seymour: “I told our public relations lady to take it straight to the Freeport News, [and that it] should appear on a paid page.

“Unfortunately, without my knowledge or approval, it was..... hacked about, distorted, with large chunks completely removed.”

Indicating that relations between the GBPA’s two shareholder families may be somewhat frosty this Christmas season, Sir Jack blamed co-chair Sarah St George, and Graham Thompson & Co attorneys, Willie Moss and Robert Adams, for making the changes without his knowledge.

“I am never going to forgive them,” Sir Jack blasted to Mr Seymour, “and I hope you will agree that what I wrote should have been written on behalf of the licensees and the people of Grand Bahama.

“Someone has to tell the Government how we feel, and someone has to stand up for the licensees and the people of Grand Bahama.”

Tribune Business was able to verify through its Freeport contacts that Ms St George and Mrs Moss, a former GBPA executive, were involved in ‘toning down’ Sir Jack’s Christmas message to ensure it did not offend the Christie administration. Mr Adams, who declined to comment, is understood to have played no role in this.

This newspaper also understands this is not the first time Sir Jack’s Christmas message has been ‘censored’, with such action also taking place when the late Edward St George was his fellow shareholder.

The difference now is that Tribune Business has obtained Sir Jack’s ‘real’, uncensored message to Freeport and Grand Bahama residents, and is happy to provide them with the GBPA honorary chairman’s true remarks on his behalf.

The full five-paragraph chunk that was cut reads: “We need far, far more co-operation from this present government than we are getting at this time if this island is to prosper, and then provide the much-needed jobs for Bahamians, and also enable this island to send even more money than we already do into the Government Treasury in Nassau.

“We need the Government to make a quick decision about the extension of real property tax [exemptions], which expires in 2015.”

A Christmas message without any reference to Freeport’s expiring investment incentives, the ‘hottest topic’ among residents and the city’s private sector, would have seemed odd. Yet this is how Sir Jack’s published version appeared.

The Grand Bahama Chamber and others have consistently warned that the continuing - and increasing - uncertainty over what will happen to Freeport’s expiring real property tax break, and several other key investment incentives, is threatening to drive investors and much-needed job creation away from Grand Bahama.

Sir Jack said as much in his unpublished version, stating: “The delays, now happening, are causing frustration and anxiety to residents, local businesses and especially potential investors into Grand Bahama, who are waiting and very well might go elsewhere to invest their money, believing they are not welcome into this country.”

He reiterated this sentiment later, but the ‘published version’ omitted all mention of the Government, referring only to the need for “quick decisions and approvals to investments coming from overseas into this island”.

Tribune Business can reveal the ‘real’ message from Sir Jack reads: “We need the Government to make quicker decisions, and give quicker approvals, to investments coming from overseas into this island.

“Despite their stated and published desires to achieve these investments, the long delays send the wrong message to potential investors, who turn to other places to invest their money.”

Sir Jack was also somewhat scathing of the Government’s proposed VAT tax, questioning why it thought this would work when it could not collect existing taxes.

“Why, I ask, impose a new tax when the governments over the years have failed to collect in excess of $570 million in taxes already in place?” Sir Jack asked.

“Freeport needs a decision regarding VAT. I personally believe that thanks to the Act and Agreement of the Hawksbill Creek Agreement that Freeport is a tax-free zone until the year 2054."

Sir Jack was also ‘censored’ in relation to his comments on energy and, in particular, touting the Grand Bahama Power Company’s service performance as being far superior to that of the Bahamas Electricity Corporation (BEC).

The published version of his message eliminated the line that Grand Bahama Power Company’s search for cheaper fuel sources “depends on the approval of permits from the USA, and the subsequent supplies from that country”.

That was likely viewed as potentially troubling government sensitivities. This consideration was also likely behind the move to eliminate BEC’s name when referring to GB Power giving “excellent reliability and less blackouts” than elsewhere in the Bahamas.

Totally eliminated was the paragraph that read: “And remember the Government (actually you, the taxpayer) gives BEC $20 million every year to keep the utility operating. How high would the cost of power be in Nassau without that yearly bonus?”

Sir Jack’s published message also omitted the term “successive governments” when it referred to “prevarication” in selecting new owners for the Royal Oasis resort.

This refers to the 2006-2007 saga when the Government turned its back on Harcourt Developments in favour of another buyer, only for that deal to collapse and have to return ‘tail between its legs’ to the Irish property developer.

The Harcourt purchase was eventually concluded, but a whole year was wasted, and by the time the deal was done the global recession was upon us. As a result, Harcourt placed its Royal Oasis plans in ‘cold storage’, where they have remained ever since.