The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Free National Movement’s (FNM) deputy leader yesterday defended the party’s plans to revitalise ‘Over-the-Hill’ and inner-city communities through a comprehensive set of tax breaks, arguing that such incentives would positively impact residents’ lives.

K. Peter Turnquest, the east Grand Bahama MP, told Tribune Business: “We want persons to be able to improve their own properties, turn them into commercial properties if they wish, not to sell but develop them for themselves.

“If they do decide to sell them so be it. We can’t hold them back because they are creating equity. The whole idea is to improve the circumstances of these individuals’ lives.”

The tax breaks proposed by the FNM include the duty-free importation of construction materials for residential and commercial properties; no Business License fees or real property taxes; no taxes on household furniture; no taxes on capital goods and business equipment “after proper vetting”; and lower import duties on business vehicles.

“Yes, you give up some revenue in terms of Customs duties and license fees, but if you were to calculate what it is that you are receiving in those areas today it is probably minuscule in comparison to the budget,” Mr Turnquest argued.

“We are prepared to take that gamble on the residents of the inner-city that they will utilise the incentives to improve their circumstances, their surroundings, and engage in business activity such that the whole area will be uplifted and opportunities will be created for residents in the area, not only in terms of work but they will be able to employ individuals from the area.”

Mr Turnquest’s comments come after Sir Franklyn Wilson, the Sunshine Holdings’ chairman, warned that the FNM’s plans to offer wide-ranging tax breaks “will lead the Bahamas into bankruptcy”.

He previously told Tribune Business that the FNM’s strategy for reducing the cost of living and reviving inner-city areas, coupled with the provision of free tertiary education, would expand the fiscal deficit and undermine consolidation plans.

The Sunshine Holdings chairman added that Dr Hubert Minnis appeared to be defying “the reality” of the Bahamas’ fiscal predicament, and warned that this nation’s sovereign credit rating could further decline should the FNM leader become prime minister and deliver on his pledges.

Sir Franklyn instead argued that the Government should seize abandoned Over-The-Hill properties for its low income housing programme, as dealing with abandoned, vacant properties in such fashion would be a far more effective way of revitalising inner-city communities.

He explained that many buildings had fallen into disrepair because of inheritance and estate planning issues, with families failing to properly complete the probate process.

Sir Franklyn argued that the Government should fill the vacuum created by building new homes and buildings on these properties, noting that their sale to new owners would enable the Public Treasury to have sufficient funds to pay families who eventually probated their estate.