By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

MINISTER for Grand Bahama Dr Michael Darville said that the passing of the Grand Bahama Investment Incentives Bill will allow in excess of a half a billion dollars to be injected into the Grand Bahama economy.

“This is the kind of economic investment capital that is necessary to prime our local economy, stimulate economic growth and increase employment and business opportunities for Bahamians,” he said during his contribution in the House of Assembly.

Dr Darville described the Bill as “monumental” and one that will bring about a much needed paradigm shift for the future development of the island of Grand Bahama. “In years to come, (it) will be one of the many positive legacies of this Perry Christie led administration,” he said.

The Grand Bahama Investment Bill, 2016, was seconded by Dr Darville, who fully supports it as the existing business model of Grand Bahama is outdated and no longer working effectively for the people of Grand Bahama.

The Bill will allow for the Government to have equity and a seat at the table along with The Grand Bahama Port Authority (GBPA) to facilitate more investments and stimulate economic growth and development of Freeport and Grand Bahama.

The minister said the new business model is currently being designed. Under the new model the GBPA and government will have mutually agreed upon, specific responsibilities, he said.

He explained that under the existing Hawksbill Creek Agreement, the responsibility for granting of business licenses will still remain with the GBPA, but the government will have the responsibility for granting concessions to potential investors.

Dr Darville said although it was argued by others that if the government allowed the expiring concessions to fall away, it would reap hundreds of millions in tax revenue dollars, they believed it would have proved counterproductive in the long run.

“Our research clearly indicates that there is evidence to support the notion that additional taxes in Freeport … could potentially result in the collapse of the economy of Grand Bahama Island,” he said. “I would dare say that these negotiations (with the GBPA) have been some of the roughest, harshest and most intense negotiations any government of this country has ever entered into.”

With the passage of the Bill, Hutchison Whampoa, in partnership with Mediterranean Shipping Company, will carry on with its $280m expansion of the Freeport Container Port. It will also “pave the way” for a $250m cruise port for East Grand Bahama.

Passage

Dr Darville said the Grand Bahama Investment Incentives Bill does not apply to Bahamians who are not licensees of the GBPA. He noted that the successful passage of the Bill will be accompanied by regulations by the Minister for Investments. The bill applies to Bahamians licensees who own less than five acres of undeveloped land in the Port Area, and non-Bahamian licensees who own five or more acres of developed land in the Port Area.

He said the concessions will no longer be automatic for existing or new businesses on Grand Bahama. “Each business, will be assessed on a case by case basis and will have to apply in writing for an extension of the concessions and such concessions, will only be granted by the Board once certain conditions and criteria are met,” he said.

The minister said once existing investments on developed land satisfy the board of a sure plan they will receive swift approval, whereas new businesses on undeveloped land will be classified as small, medium and large and depending on the nature of the business some of the steps outlined in section 5 under the application concessions may be waived by the board.

Dr Darville said businesses will be granted confidentiality; licensees will be required to report on their developments on an annual basis or as stipulated on approval; and developments which violate the Act shall be subject to penalties. “No longer will investors be able to buy commercial land on speculation. No longer will big companies receiving concessions lay off workers without just cause yet still enjoy the benefits of operating tax free,” said the minister.

Dr Darville said that developments creating damage to the environment will no longer be incentivised. “No longer will developers be able to invest without proper monitoring schedules,” he said.

He stressed that it is important that government ensure work is being carried out as promised and in keeping with best business practices.

Despite criticisms, Dr Darville said the government fought hard … for the best possible deal for Grand Bahamians. “I am satisfied as Minister for Grand Bahama that we did our best and finally the people have equity and a seat at the table,” he said.