The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An ex-deputy prime minister yesterday warned that legal reforms to facilitate Dr Hubert Minnis’ “young professionals” real estate developments are “discriminatory” and “invite legal challenge”.

K Peter Turnquest, also the former finance minister, told the House of Assembly that changes to the Access to Affordable Homes Act “go against the principle of fairness and equal treatment under the law” as it empowers the responsible Cabinet minister to determine which home buyers are granted tax breaks in government-developed subdivisions that possess all the necessary infrastructure.

The incentives on offer include customs duty and excise tax exemptions on all construction materials and furniture and appliances for the home provided it is constructed within two years of the lot’s purchase, and a five-year real property tax break.

Yet the minister’s “discretion in approving applications” for concessions, Mr Turnquest warned, could result in one neighbour building their home at a much-reduced cost while another has to incur significantly higher prices because they did not get the exemptions.

Arguing that all Bahamian taxpayers have equal rights, he added: “This Bill is extremely worrisome to me as it is inherently discriminatory on many fronts, though well intentioned. Every citizen of the Bahamas is an equal tax payer and has an inalienable right to enjoy equal benefits provided by the state.

“This Bill, however, seeks to carve out benefit for a specific group to the ultimate exclusion of other groups equally as disenfranchised when it comes to the affordability of land and construction.” Describing the legislation, which accompanies the 2021-2022 Budget as “Nassau centric”, Mr Turnquest said it “proposes to use taxpayer money to grant concession to one group over another”.

He added: “I’m not sure how we make up the revenue foregone, but what if a young professional is unlucky in receiving one of these lots? Why should they be penalised in the compounding of insult to injury of having to pay full price for their lots, as well as full Customs duty and property taxes, while across the fence their neighbour is fully exempted? Why should I or you be held to a different standard in equal circumstances?

“Again, I get the laudable intent, but in my mind this Bill goes against the principle of fairness and equal treatment under the law and invites a court challenge. I recommend finding another way.”

Mr Turnquest’s comments thus challenge, and raise question marks, over what has been a central initiative unveiled by the Prime Minister in recent months. Dr Minnis also pledged that the government’s efforts to make home ownership more affordable for Bahamians will not be a “one-off endeavour” that lacks a coherent strategy in debate over the much-trumpeted 83-acre housing development on Prospect Ridge that is targeted at “young professionals”.

The Prime Minister said at the time: “My government has a policy of empowerment through affordable land ownership. The announcement of the community for young professionals is not the first land development of my government.

“For example, we are in the process of another type of development in Carmichael, where the lot prices started at $15,000 for lots valued at over $70,000. There will be further offerings at various different price levels. All will be in well-designed subdivisions with world-class infrastructure and suitable amenities.

“Our land empowerment initiatives are not one-off endeavours. We have already identified a number of tracts of crown land in New Providence and the Family Islands where we will provide affordable land to Bahamians at various levels. Our intention is for thousands of Bahamian first-time homeowners to benefit from our vision for wealth-creation, ownership and empowerment. This is how we expand the middle class.”

Dr Minnis provided no further details on this strategy, and it is unclear whether future developments will benefit from the same tax breaks and other incentives being offered to first-time home buyers who will purchase the “approximately 250 lots” for single family, town homes and duplexes that will be created in the 83-acres Prospect Ridge development.