BY LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

PRIME Minister Philip “Brave” Davis threatened to begin arbitration proceedings against the Grand Bahama Port Authority (GBPA) if it fails to pay more than $300m owed to the government within the 30-day deadline.

Mr Davis, who was addressing a crowd of Progressive Liberal Party (PLP) supporters at a party branch meeting in Grand Bahama Saturday night, said it’s “intolerable” that the authority has failed to live up to its obligations under the Hawksbill Creek agreement to facilitate Freeport’s growth.

His comments came nearly two weeks after the government sent a demand letter to the GBPA, giving it 30 days to reimburse $357m owed to the government over the last five fiscal years.

The letter, which includes a detailed account – prepared by Price Waterhouse Coopers - of reimbursements owed to the government, represents an unprecedented escalation in the government’s pressure campaign against the GBPA.

“I hear some folks asking why are we now asking for money after all these years?” Mr Davis added. “Now, PLPs, I can’t tell you why (former Prime Minister Hubert) Ingraham didn’t do it, and I can’t tell you why (former Prime Minister Perry) Christie didn’t either but you can ask them.”

“My name is Brave Davis and it’s a new day.”

Last week, Tribune Business reported that the GBPA does not believe it owes $1 to the government and “vehemently” disputes its claim.

However, Mr Davis said if the authority fails to reimburse the government within 30 days, his administration “has the right to immediately begin arbitration proceedings.”

“When profits are threatened, when bills are due – things tend to get noisy but this is the right thing to do because it is intolerable to ask the Bahamian people to continue subsidizing private profits,” the prime minister said.

Mr Davis said the government’s actions against the authority are nothing personal, adding there were many meetings between both parties, but still too many “delays” and “dead ends.”

“When only one side appears interested in advancement – and when the people of Freeport urgently need change and progress – then decisive action is only the choice,” he said

He conceded that the government has a very strong case but warned the road ahead will likely be bumpy.

He told Grand Bahamians they deserve thriving communities with an inclusive economy that “generates opportunity, dignity and security,” noting it’s been far too long since Freeport was moving in the right direction.

“In many cases, the government has had to step in where the port has failed,” he told PLP supporters. “It is intolerable that the port is not meeting critical infrastructure and development obligations. It is intolerable to let the status quo continue.”

Mr Davis said he recently called a meeting with the authority’s stakeholders and trustees about his concerns and told them: “I had no confidence in their ability to continue.”

Tension has been brewing publicly between the GBPA and the government since Mr Davis said last year that the authority is failing to maintain Freeport’s infrastructure and facilitate the growth of the city.

The government has previously demanded that the GBPA reimburse it for costs incurred in providing public services in Freeport over and above what it has earned in tax revenues from the city.

They are seeking reimbursement under section one, subclause five, of the Hawksbill Creek Agreement, which stipulates that it can seek payment from the GBPA for providing “certain activities and services” if the costs involved exceed certain tax revenue streams generated in the city.

Health and Wellness Minister Dr Michael Darville, who was also present at Saturday's meeting, said the government’s latest action is just the beginning of what’s to come.

"What we're doing for Grand Bahama is going to revolutionise and change the economic blueprint and footprint for the island," he said.

Meanwhile, Foreign Affairs Minister Fred Mitchell added: "We have a responsibility as leaders of the country to determine the future of Freeport when there is no longer that agreement and the better time to start thinking about is now."

This article has been updated with additional comments