By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
WASHINGTON, DC - PRIME Minister Perry Christie yesterday said the Government was aware that the late Sir Jack Hayward was in negotiations to sell his family’s 50 per cent stake in the Grand Bahama Port Authority (GBPA) Group of Companies just prior to his death.
Mr Christie said the Government would now move quickly on a decision over the Hawksbill Creek Agreement (HCA) tax exemptions that are set to expire this August, acknowledging the situation had been “heightened” by Sir Jack’s recent passing.
The Prime Minister revealed: “We were aware of the actions taken by Sir Jack towards the sale of his interests to a particular group.
“ The Government is well aware of that, and I had a conference call with Sir Jack and Sarah St George. Grand Bahama is going to be very high on the Government priorities, with the view to ensuring that the interests of the people on Grand Bahama continue to be served by decisions that we have to make in the immediate future.”
Tribune Business sources have suggested that the group Sir Jack and his family trust were talking to may have connections to Ireland’s wealthy Ryan family, who were prime movers in founding the low-cost airline, Ryanair. One of the family members, the late Tony Ryan, held property in Lyford Cay.
The Hawksbill Creek Agreement’s (HCA) expiring exemption, which sunset on August 4, 2015, include real property tax and Business Licence fee breaks. The exemptions were originally established in 1955.
Touching on the subject following an address on behalf of CARICOM at the inaugural Caribbean Energy Security Summit in Washington D. C., Mr Christie told Tribune Business: “We have a very dynamic situation existing in Grand Bahama, particularly heightened by the death of Sir Jack Hayward, where the Government under the Hawksbill Creek Agreement is required to make a decision on Business License and real property tax [exemptions].
“We have retained a firm called McKinsey, and we are joining with them a number of outstanding persons to go to Grand Bahama to begin discussions with stakeholders on what position the Government should take with respect to real property tax and Business Licenses.”
Mr Christie indicated that ex-Cabinet minister, Dr Marcus Bethel; former Central Bank governor, James Smith; and Sir Baltron Bethel were likely to lead lead discussions regarding the expiring incentives.
“We have invested very heavily in a top firm to advise us. They have asked us to have a couple of Bahamians, people like James Smith, Sir Baltron Bethel and Marcus Bethel, join them in leading the discussions in Grand Bahama,” Mr Christie said.
“There is no doubt that we are going to move very quickly. The Government of the Bahamas is now obliged to have discussions with the survivors of Sir Jack Hayward and the St George interest to determine the future of Freeport.
“We have some significant investments that we are in the process of dealing with and trying to put in place, so therefore it is important that major decisions are made with respect to Freeport as quickly as we possibly can.”
Comments
The_Oracle 9 years, 2 months ago
Mis-information here, it is not exemptions under the H.C.A. that are due to expire, those exemptions already did! These renewed exemptions that are about to expire were under the Freeport By-Laws act, enacted post 1993. The exemptions were re-instated as part of a deal in which the Port Authority agreed to fund certain capital improvements within the Freeport area. An important distinction.
Economist 9 years, 2 months ago
Baltron Bethel...emmmm....Mr."I Don't Recall" Bethel? Let's leave him out. We don't need him involved.
Islandgirl 9 years, 2 months ago
"Business license fee breaks": what breaks are we talking about here? There have been no breaks since St George died back in 2004. I believe the Vice President of the Port at that time made great strides in raising the fees on everyone at that time, including essential services where the license fees were very significantly raised. The business license fees go up every few years and the government still has additional license fees to add on top of those so, you see what I'm saying? Of interest, Grand Bahama sends a great deal of tax dollars to the public treasury every year, about 150-200 million dollars per annum, yet very little is returned and they badly need it. Why is that, Mr. Christie? Why is there a new ten percent man in town where potential investors complain about it sir? This country is not your and your crew's personal and private possession, though it seems that that is exactly how it is treated. Also, can we have an accounting for how the money delegated to the Ministry of Grand Bahama is spent? Seems to a lot of people that only a select few are benefitting. None can see how 30+ million dollars each year for the past two years have been spent. Additionally, before any further consideration is taken, ask the port owners whether they would stop pouring all their profits into the Cayman Islands and instead invest it to improve the city of Freeport. Can't be all gravy for them and nothing for the people who live there.
Economist 9 years, 2 months ago
Islandgirl makes a good point about the Cayman Islands. Note that when the Hutchison companies were broken up recently, they set up their new headquarters in Cayman and not in The Bahamas where they have a large investment.
Perhaps Cayman is considered a better/safer place to put your earnings. If that is the case we need to ask them, and ourselves, why?
Government needs to be careful that they don't kill Freeport, "the goose that lays the golden egg," for the Public Treasury. They need to let Freeport reach its full potential and stop trying to kill it.
And yes, there are certain things that are not happening without some "greasing of the wheels" and that is very dangerous.The larger companies are publically traded and they are not allowed to "grease wheels" because of laws like the Foreign Corrupt Practices Act. By playing the grease the wheel game we are not getting much of the foreign investment that we could and some that we get are opportunists. After all, what type of person plays the grease the wheel game? We don't want that type of investor as it scares away the good ones.
asiseeit 9 years, 2 months ago
I wonder how much these foreign consultants cost and how much the kickback is. He says that they have invested heavily in this firm, the question is who is getting paid in the Bahamas by this firm? Nothing to see here business as usual. We know how it goes. We hire you, you hire us, right! This is why the politicians almost puke when Freedom of Information is brought up. Crooked shysters!
Economist 9 years, 2 months ago
asiseeit, you are on the money (yes, pun intended).
With a Freedom of Information Act there would be no need for certain people to be too sick to attend a Commission of Inquiry. Documents are much better than "I don't recall".
The_Oracle 9 years, 2 months ago
Consultants, the findings from which are ignored and have been since 1968. The appearances of doing something while doing nothing tangible (save pocketing the funds) is a perfected art in the Bahamas! While Port licensees pay no Government license fee, nor property taxes (soon to expire under an extended Statute law when the original exemptions expired under the H.C.A.) the Port License fees and Maintenance fees on property are not insignificant, and no accounting is given to anyone, nor from the Government incedentally. It is time to revisit the H.C.A. but not until we revisit the Governance of the whole country, lest idiots continue to make idiotic decisions. And Yes, it appears the current ownership has separated the assets from the Port Authority proper, making the Port Authority a pure liability with no assets. Both Political parties in all elected incarnations have colluded with Port Authority executives and owners over the decades for their own benefit, to the expense and detriment of the potential for the country.( Port Authority shares, political contributions, Homes built, political ownerships in Port licensed companies, political appointees, etc etc) A National legacy of shame that deserves a forensic audit.
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