The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Government and Grand Bahama Port Authority (GBPA) were yesterday urged to work together to revive Freeport’s economy, an Opposition MP warning it had “just about lost its second city status”.

Central Grand Bahama MP, Neko Grant, in his contribution to the House of Assembly debate on extending Freeport’s expiring tax incentives for another three months, said the city cannot be allowed to “shrivel and die”.

Adding that businesses cannot grow and proposer in an environment of uncertainty, Mr Grant said: “In order for Freeport to succeed, the relationship between the Government of the Bahamas and the Grand Bahama Port Authority must at all times be constructive and collaborative.

“From the inception of this agreement there have been periods of strained relationships between these two parties, and a review of the history of these periods would show a strong correlation between economic downturn and the state of relationship between the parties.

“The area of disagreement has had its roots in decisions made by the Immigration and Customs departments as they affect the Hawksbill Creek Agreement. There is need for an ongoing deep level of trust to exist between the Government, the Port and its licensees.”

Mr Grant continued: “The Government and the Port Authority must begin to work together now or Freeport’s economy will continue to struggle. Freeport used to have one of the most robust economies in the region. But those years are now in the past, notwithstanding the several years of phenomenal economic growth Freeport enjoyed during the mid to late 1990s.

“Something drastic must be done expeditiously to resuscitate the dream of the founder of the nation’s second city. Freeport has just about lost its second city status. We cannot allow it to shrivel and die. Businesses cannot grow and prosper in an environment of uncertainty, and Freeport businesses have had unusually long periods of uncertainty. This exercise in which we are involved, being undertaken six days after the expiration of the extension, is but one example.”

Mr Grant told Parliament that Grand Bahama is experiencing one of the most severe downturns in Bahamian history. “Our tourism industry is in crisis. Residents have to leave Freeport to seek opportunities elsewhere,” he said.

“Too many of our hotel rooms have been taken out of service, and some of the remaining ones are in urgent need of upgrade and repair. Grand Bahama continues to be on life support. We often hear in this place about any number of businesses opening; what we are not told is that the majority of them stay open as long ‘as a snowball will last in hell’.

“Too many Bahamians have invested in businesses and had to close their doors within months, having lost their life’s savings. The Circle Mall is a prime example, where many businesses opened with a bang. Very few remain at this time. The only thing left there now is a snack bar, a gym and a beauty salon.”

Mr Grant said the argument could be made that the Hawksbill Creek Agreement is “one of the finest, if not the finest, pieces of legislation this country has ever seen”.

“The Port area has been a cash cow for the Public Treasury since its inception. I am advised that the Port area has provided the Public Treasury with a net profit of not less than $60 million a year,” he said.

“It is my hope that this extension to the extension will provide this government with the time necessary to ensure that the proposed 20-year extension will serve to at least equal the accomplishments of the Grand Bahama Act 1993 enacted by the FNM. The residents of Grand Bahama deserves no less.”