By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Prime Minister Perry Christie said yesterday that the Government has approved the agreement with Carnival Cruise Lines for east Grand Bahama’s $200 million cruise port.

Addressing Parliament, Mr Christie said: “The Government has approved, and sent to the lawyers for Carnival Cruise Line, the full agreement for the establishment of a $200 million port in east Grand Bahama.

“The Government took particular pains to lift the policy of the Bahamas and institutionalise it in the agreement. That will enable Grand Bahamians to access the privileges that that development will give them; that is water sports.

“Those that are reserved privileges for Bahamians have been lifted up, identified, and Bahamians who live in Grand Bahama will be incentivised to take advantage of the firm policy decisions that we have made to protect the best interests of Bahamians and promote the best interests of the Bahamas.”

Mr Christie previously  confirmed that the Government was in negotiations with Carnival over the project, and that both sides were studying a draft Heads of Agreement.

Mr Christie added: “As a result of the 1994 letters of commitment signed by the FNM government, which constituted an agreement, the Government of  the Bahamas had to negotiate a waiver agreement with Hutchison Whampoa in which they agreed to move to another level of sharing some of the proceeds with the Government.

“So, when the member asks should we not take note that we are allowing another sovereign government to diminish the Government of the Bahamas, I’ve been able to satisfy anyone that has been listening that you did that a long time ago with the agreements you’ve signed.

“I’ve tried my best to get even lawyers in England to support our being able to change it. Not being able to change it, we then renegotiated with Hutchison Whampoa something that may not be as good as we ought to have had as a country, but something that allows us to save face.”

    Tribune Business has long reported concerns among cruise ship industry insiders that few economic benefits filter down to Bahamians and locally-owned businesses and entrepreneurs from such private facilities.

These insiders have in the past revealed that most of the revenues and profits generated by such private facilities stay with the cruise lines, which effectively control all the excursions and activities offered to the passengers.

Bahamian-owned businesses allowed to operate in these private ports also rent their facilities from the cruise lines, who in some cases have been able to dictate the mark-ups charged to passengers.