The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Freeport’s commercial environment is “completely up in the air”, a well-known QC warned yesterday, as the city plays “second fiddle” to Baha Mar’s fate.

Fred Smith QC, the Callenders & Co attorney and partner, said the Government was in danger of being “distracted” by the $3.5 billion project’s woes to the extent that it forgets about Freeport’s key tax breaks that are due to expire in less than three weeks’ time.

The city’s real property tax and Business Licence exemptions, together with other important investment incentives, are due to expire on August 4, and Mr Smith said the issue was “being ignored”.

Suggesting that this was the latest example of bad governance and leaving critical economic decisions until the last minute, the outspoken QC said it effectively left the private sector ‘in limbo’ and unable to properly plan.

He suggested that the Government extend the expiring tax exemptions for two years to allow for proper consultations and negotiations, adding of their renewal: “It’s a must.”

“As far as Freeport is concerned, Baha Mar is a big distraction,” Mr Smith told Tribune Business. “Freeport, once again, is playing second fiddle to the capital, as it always does.

“We are being ignored, and obviously Freeport does not matter, because leaving the fate of the Hawksbill Creek Agreement to be publicly announced at the last minute on a crisis-driven basis is irresponsible governance.”

The Government has yet to make any public statement on the recommendations for Freeport’s future development and governance, which are contained in the report submitted to it several weeks ago by the Dr Marcus Bethel-led committee.

Neither that report, nor the initial one by the Government’s consultants, McKinsey, has been made available to Freeport’s private sector and the public, effectively leaving the city’s commercial sector ‘in the dark’ over key elements of the business/investment climate.

“It leaves up completely up in the air,” Mr Smith told Tribune Business.

“But this government can do what as the then-PLP government did in 1982. It could let the time pass by and retroactively extend the exemptions for another couple of years while negotiations and public consultations continue.

“We left it to the last minute. It’s far better to extend it temporarily while we continue discussions.”

Mr Smith added that it was “astounding that on the eve of expiration” of Freeport’s key investment incentives, the Government had yet to release either the McKinsey work or the report by its own committee.

He said this was “completely unhelpful to the community it was intended to assist.

“This is typical of the approach to governance in Freeport. It is lamentable, irresponsible and a national disgrace to treat a huge percentage of our citizens this way.”

Kevin Seymour, the Grand Bahama Chamber of Commerce’s president and a member of the Government’s Freeport committee, yesterday said he was receiving calls from his members “on a daily basis” about what will happen to Freeport’s expiring investment incentives.

“I know there is a thirst for getting information. My members are keen to know what will happen, and the clock is ticking down. I’m getting calls on a daily basis,” Mr Seymour told Tribune Business.

He added, though, that he did not want to discuss the recommendations in the report submitted to the Christie administration for fear it might unduly raise expectations that could be dashed if the Government did not adopt what was in the report.

And the Government itself was “wary of being backed into a corner” over the recommendations, and forced to take a particular direction over Freeport’s future.

Emphasising that the decision on Freeport and its expiring investment incentives was one for the Government to make, Mr Seymour said: “It’s their call to make as to whether they want to extend them or not extend them.

“It’s within their wheel house now how they desire to proceed or not prior to August 4. It’s totally within their discretion what they will do.”

Mr Seymour said he did not want “to be seen to be getting out ahead of the Government”, but added that he was “satisfied” the ‘August 4 issue’ would be addressed - and probably before that date.

“I’m not overly concerned about it, but I’m not saying that in a cavalier way,” he told Tribune Business. “I’m saying: ‘Let’s be realistic’. Is it likely that legislation will be passed in two weeks?”