The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A prominent Abaconian has blasted the “bureaucratic red tape” that is preventing the island from making further progress on a post-Dorian economic recovery that he estimates its 60-65 percent complete.

Roscoe Thompson, head of the Marsh Harbour/Spring City Township, told Tribune Business it appears as if the Government is “trying to get every dollar out of Abaco” rather than allowing the island to fully recover from the devastating Category Five storm and subsequent COVID-19 pandemic.

Asserting that Abaco’s existing VAT and duty-free tax breaks under the Special Economic Recovery Zone (SERZ) should continue for another two years subject to policing, thus only ensuring that legitimate applicants qualify, he identified several businesses that had been unable to access these concessions to bring in equipment vital to the revival of their enterprises.

Branding this as “disheartening”, Mr Thompson called on the Government to get out the way so that Abaco can become The Bahamas’ “second highest grossing economy again, adding: “Mouth says a lot. It’s actions that speak.” He estimated that the island needs at least 200 new rental housing units “if not more” so that Abaconians wishing to return and rebuild have somewhere to stay, along with construction workers.

“Construction is booming throughout the cays, and rebuilding is going on,” Mr Thompson told this newspaper. “But the bureaucratic red tape that has been put in place by this administration with the duty and VAT exemptions is a hindrance to the economy. You now have to get a SERZ order that has to be stamped before a certain date, and you don’t know come December this year if it’s going to be extended.

“Abaco should for the next two years probably be a duty and VAT-free zone with proper policing. People rebuilding homes must show they own the homes and are just moving back, getting their contractor and building materials in duty and VAT-free

“I’ll give you an example of a marina at Pelican Shores, the Job Room,” he added. “They lost their diesel tanks and their fuel tanks in Dorian and yet, to this day, they can’t get the VAT and duty exemptions to bring in new diesel and gas tanks. That’s wrong. They lost them in Dorian, and that’s what the SERZ is for - to allow your economy to recover.

“I’ve been helping the owner. He wrote a letter requesting VAT and duty-free exemptions, and explained why. He went through the process, and it’s just like you keep getting pushed aside. We had a food store that had to renovate and upgrade their refrigeration, but when they went to import copper for this they had to pay VAT and duty on it. They wouldn’t give them a break on that.

“It’s disheartening. It’s like the Government is trying to get every dollar out of Abaco rather than allow Abaco to rebuild VAT and duty-free with policing. Let us get back on our feet and become the second grossing economy. Right now we still have people living in tents, we still have people living in cars.”

Mr Thompson is far from the only Abaco resident to complain about the Davis administration’s application of the SERZ. Earlier this year, in extending the SERZ Order by a further 11 months to December 1, 2022, it included a clause that was little-noticed at the time with most persons just grateful for the extra time.

“A person desirous of importing goods into a SERZ.... must make application to the minister of finance to do so within 90 days of the commencement of this Order, and any approval granted shall be valid until December 1, 2022,” the Order said. The tax breaks/concessions that had to be applied for fell under the VAT, Excise, Tariff and Customs Management Act, and covered construction materials, household furniture and appliances, electrical and plumbing supplies.

And the Government’s decision not to reinstate the 10 percent levy on construction services in the hurricane-hit areas also provoked an outcry when it occurred on New Year’s Day. The Ministry of Finance, in its response, indicated its concern that the Government was giving away too much in tax breaks to wealthy second homeowners who could afford to rebuild without such assistance - especially at a time when it is enduring its own fiscal crisis.

“There’s a lot of red tape in place,” Mr Thompson reiterated. “In the past nine months to a year since this administration took over, things have come to a halt. Under the previous administration at least things were being done, although I didn’t always agree with how the money was being spent.

“Right now, up until two weeks ago, we had not heard much. Then, suddenly, we had the redevelopment of the new hurricane centre or civic centre that will be completed by 2023. The Disaster Reconstruction Authority is starting to kick-off again with HARP (Home Assistance and Repairs Programme). Neil, I say to you, mouth can say anything. Until we see action we’re still in the same boat.”

Pointing out that the Government was unable to find suitable rental housing for public school teachers, Mr Thompson said: “Right now we could use at least 200 rental units here if not more. The business district is starting to come back, and I would say we are about 60 percent, 65 percent, recovered but there’s still a long way to go. We have a lot of businesses that have opened. The issue we are having is housing.

“It’s a hindrance because it limits people in finding places to stay to rebuild. The second homeowner market on Eastern Shores. We had 60 houses out there at one time, and right now there’s only eight. That was our biggest rental market. Them getting the water situation, and getting water brought out to them, I understand it’s going out to tender. There are obstacles still in place. Some of the infrastructure still needs a lot of help, and the airport is still not fully fixed.”