By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE passing of Investment Incentive Bill has paved the way for an injection of half a billion dollars into the economy of Grand Bahama over the next decade, Minister for Grand Bahama Dr Michael Darville said at the opening of the Bahamas Association of Compliance Officers (BACO) annual Northern Bahamas Conference at the Pelican Bay Resort on Friday.

Dr Darville said that as a result of the bill’s passage, Hutchison Whampoa - a leading investor in Freeport - will proceed with a $280 million expansion of the container port. He added that the lifting of the exclusivity for the ports of entry will allow for the creation of a new cruise port in East Grand Bahama at a cost of $250 million.

Commending BACO’s for its continuous commitment to enhancing the integrity of the Bahamas’ financial services sector, he said the sector is constantly under attack from many international regulatory agencies, and that government recognises the importance of BACO.

“We thank BACO for its role in strengthening the reputation of the Bahamas as a well-regulated jurisdiction and as a key player, both at home as well as in the international financial community,” he said.

The minister said that as the country evolves, one of the responsibilities of the government is to find new ways of diversifying and expanding the local economy, particularly in the area of local and foreign direct investments. He indicated that in order for the financial services and other important sectors to remain competitive, existing legislation is amended appropriately, which reflects advancements in the country.

“This essential principle was clearly demonstrated by this administration’s amendments to the FATCA Bill; the regularisation of the local gaming industry by way of the Gaming Bill; and the establishment of the Okyanos Heart Institute Stem Cell facility, which was made possible by the passing of the Stem Cell Bill,” Dr Darville said.

He told compliance officers that it is imperative that they are cognisant of new and old regulations, trade agreements, litigation trends, industry best practices and international standards. “We have surpassed the expectations of many in the region, as we have sought to shift the social and economic paradigm of our country; and over the years, the importance of active and modern regulatory bodies, and the way in which they positively affect policy has become evident,” said Dr Darville.

Turning his focus to Grand Bahama, he said that successive governments have employed a hands-off approach for years. He said the PLP administration made the decision to establish the first ministry outside the capital. He explained that the primary purpose of his ministry is the transformation of the economy of Grand Bahama.

He said one of the priorities of the ministry was to strengthening ties with the Grand Bahama Port Authority (GBPA), while at the same time addressing the concessions of the business community and real property taxes and business licence taxes that were soon to expire under the Hawksbill Creek Agreement.

He noted that through the establishment of the Hawksbill Creek Agreement Review Committee, and after months of negotiations with the relevant stakeholders, the principles of the GBPA and the Government, a mutual agreement was achieved over the expiring provisions, which resulted in a complex Memorandum of Understanding and ultimately led to the enactment of what is known as the Grand Bahama (Port Area) Investment Incentives Bill, 2016.

The minister said the draft regulations are near completion. “I am confident that we are well on the way to create a “One­ Stop ­Shop” in collaboration with stakeholders on the island, which will allow for a true partnership and ensure accountability, execution of responsibilities, in accordance with international best practices,” he said.

“With the enactment of the Grand Bahama Investment Incentive Bill, 2016, and its associate regulations, we will create a new paradigm shift in the city of Freeport.” Under the new deal, the GBPA will still be responsible for the granting of business licences but the Government will be responsible for the granting of concessions.

“We are confident that this new approach in the governance structure in Freeport would not only reflect what is happening in the rest of the country, but will cause for the Government to play a more integral part in​ the facilitation of new and existing developments on Grand Bahama, whether foreign or domestic; thus making the process more accountable and transparent,” he said.

He told compliance officers that their role is key to ensuring that the laws and regulations that the government has passed on behalf the people work in the best interest for all the people.

“It is my sincere belief, as Minister for Grand Bahama, that this administration’s policies for social development, health care reform, training and job creation, combined with the advancements to infrastructure on our island, have perfectly positioned this island for an economic comeback, which is becoming more and more evident,” he said.

This theme of this year’s BACO conference was ‘Traversing Industries, Transcending Risks’. Fareda Sands, the BACO president, also brought remarks.