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Bahamian Politics Last Updated: Feb 13, 2017 - 1:45:37 AM


Hon Neko Grant on the Hawksbill Creek Agreement
Jul 29, 2015 - 7:41:22 PM

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The following is the contribution by the Hon. Neko C. Grant 1, on the Hawksbill Creek Agreement delivered in the House of Assembly on Wednesday, July 29, 2015:

Mr. Speaker,

I rise this morning, not only on behalf of the wonderful people of Central Grand Bahama, but on behalf of every Grand Bahamian, I rise on behalf of those businessman and women who are once again faced with uncertainty due to this Government lack of planning and continuous neglect of one of the Bahamas’ most industrious islands. Late again is the appropriate label.

Mr. Speaker,

There is a passage in Proverbs that says where there is no vision the people perish…

The committee was appointed on March 5th, 2015 exactly five months before the expiration of the agreement.

Now we are here today five months later, to extend the Hawksbill Creek Agreement for six months.

Mr. Speaker,

This PLP government was elected in May 2012 three long years ago

If they could not renegotiate the Hawksbill Creek Agreement in three years

Sir,

six months will make little difference

Mr. Speaker,

The people of the Bahamas are perishing at the hands of this visionless PLP Government. Every day we are faced with the devastating effects caused by this uncaring, un-planning government.

This Bill before us today ‘A Bill For An Act To Extend For A Period Of Six Months Certain Tax Exemptions Granted Under The Agreement Known As The Hawksbill Creek Agreement’

An agreement that is set to expire on August 4th, 2015

As noted earlier a committee headed by Dr. Marcus Bethel was appointed in March of this year with a mandate to “create a framework for immediate and long-term investment promotion on the Island to attract investors that can operate assets competitively at a world class standard, and effectively and efficiently utilize the land resources with proper environmental safeguards.”

Upon this appointment the Prime Minister made this statement and I quote “following the death of Sir Jack Hayward and Edward St. George, there are entities around the world expressing an interest in the purchase of The Grand Bahama Port Authority. The Committee will be able to assist me, as Prime Minister, and their work will be of immense value even though that is not within their terms of reference in the event of some purchaser manifesting in the near future with the intention to purchase, we would want to ensure that we are transparent and open in all that we do with the Bahamian people because there is a lot at stake here in Grand Bahama.”

Mr. Speaker,

In order for Freeport to succeed, the relationship between the Government of the Bahamas and the Grand Bahama Port Authority must at all times be constructive and collaborative. From the inception of this Agreement there have been periods of strained relationships between these two parties and a review of the history of these periods would show a strong correlation between economic downturn and the state of relationship between the parties. The area of disagreements has had its roots in decisions made by the immigration and customs departments as they affect the Hawksbill Creek Agreement. There is need for an ongoing deep level of trust to exist between the government, the port and its licencees.

Until the Government and the Port Authority put aside their petty differences and work together, Freeport’s economy will continue to struggle.

Freeport used to have one of the most robust economies in the region. But those years are now in the past, notwithstanding the several years of phenomenal economic growth Freeport enjoyed during the mid to late 1990s. Something drastic must be done to resuscitate the dream of the founder of the nation’s second city. Freeport is presently losing its second city status. We cannot allow it to shrivel and die.

Businesses cannot grow and prosper in an environment of uncertainty, and Freeport businesses have had unusually long periods of uncertainty. This exercise in which we are involved, being undertaken seven days before the expiry of the tax exemptions is but one example. What a disgrace. Late again!

Grand Bahama Island is experiencing the most severe economic downturn in the history of the Bahamas. Our tourist industry is in crisis. Residents have to leave Freeport to seek opportunities elsewhere. Too many of our hotel rooms have been taken out of service. And some of the remaining ones are in urgent need of upgrade and repair. Grand Bahama continues to be on life support.

We often hear in this place about any number of businesses opening, what we are not told is that the majority of them stay open as long “as a snowball will last in hell” . Too many Bahamians have invested in businesses and had to close their doors within months having lost their life’s savings. The Circle Mall is a prime example were many businesses opened with a bang. Very few remain at this time. The only thing left there now is a snack bar, a gym and a beauty salon.

Unemployment is at an all-time high. The last statistics revealed an 19.5%. With thousands graduating, businesses closing, it is perhaps in excess of 25% now.

Investment in the industrial sector is non- existent.

Land sales, home construction and property development is at stand still.

The economy of Freeport is dependent solely on the wholesale and retail sector and we must regain the promise of the vision originally anticipated in the 1955 Agreement.

The future success of Freeport requires dynamic, creative, resourceful, knowledgeable and visionary leadership at The Grand Bahama Port Authority Ltd. This proactive, developmental minded leadership must be capable of creating an environment that capitalizes on Freeport’s unique characteristics and of inspiring confidence in the unlimited economic potential and possibilities that Freeport offers.

Mr. Speaker,

Grand Bahama has been the pace setter for the Bahamas. Freeport, the first planned city in the Bahamas has been on a downward spiral since those devastating hurricanes of 2004 and 2005.

Grand Bahamians are unique in their resilience, we have grown accustom to expect nothing but neglect from any PLP Government. The New PLP or the Old PLP

The PLP has a history of mistreating and neglecting Grand Bahama.

The most blatant came from Prime Minister Pindling himself in his Bend or Break speech; it has been argued that since that declaration Freeport has never reach its full potential.

It took an Ingraham lead FNM administration to bring Grand Bahama to where its residents were able to feed their families, find jobs, and operate successful business ventures, and live comfortably.

Mr. Speaker,

The Bahamas has been an independent country for 42 years. 27 of those years it has been governed by the PLP. The FNM was honored and privileged to have governed the Bahamas for 15 years. When we were elected on August 19th, 1992 the Grand Bahama economy was in shambles. The good people of Grand Bahama elected us to fix it and FIX IT WE DID!! A committee that was aggressive and progressive was appointed to review the Hawksbill Creek Agreement. I was honored to serve on this prestigious committee that worked in many instances none stop to make recommendations to the government on how to jump start and revive Grand Bahamas’ economy. Hence the Grand Bahama Act 1993. Again I was honored to second that Act in this place.

Mr. Speaker,

When we review the history of Freeport over the past 42 years every meaningful thing that you can see feel and touch has benefitted the Bahamian people and improve the quality of their lives was done by a Hubert Ingraham led FNM Government. Whether it was new projects, new foreign investment, or new government infrastructure, yes it was done by a Free National Movement Government.

Mr. Speaker,

Let us review the new projects and foreign investments under the FNM:

· We were responsible for bringing in Hutchinson Whampoa if there was no Hutchinson Whampoa there would be no Memories that they now scream and boast about.

· We are responsible for the Container Port that is providing jobs for thousands of Bahamians.

· We are responsible for the Grand Bahama Shipyard another entity providing jobs for thousands of Bahamians.

· We are responsible for Bradford Marine another renown facility providing jobs for hundreds of Bahamians

· We are responsible for Polymers another entity providing jobs for Bahamians.

· We are responsible for the re-birth of BORCO

· We are responsible for the Pelican Bay Resort, a Boutique Styled hotel that continues to sustain itself, consistently attracting high end international and domestic visitors.

· We are responsible for Our Lucaya.

· We are responsible for the Grand Bahama Yacht Club

Let us now review the Government’s infrastructure. We believe in EDUCATION!
We did not pay lip service to it.

· We constructed the Hugh Campbell Primary in months to address the overcrowding at the primary level.

· In Manifesto 1992 we promised to relocate the Hawksbill High School and construct a High School in Freeport.

· We did not construct one we were responsible for the construction of two The St. Georges’ High School and the Sir Jack Hayward High School

· We constructed the Maurice Moore Primary School

· We constructed and extended the Sister Mary Patricia Junior High School

· We constructed the CA Smith Administrative Complex centralizing major Government Departments- Customs, Immigration, Ministry of Education, Ministry of Foreign Affairs, Ministry of Finance and the Passport Office.

· We renovated the Post Office that was constructed by the side opposite without Public Restrooms. We installed Public Restrooms in this 40 year old Public Building.

· We were responsible for the construction of the Garnet Levarity Justice Centre

· We constructed the Gerald Bartlett Police Headquarters

· We were responsible for the construction of the Grand Bahama multipurpose Sporting Complex

Mr. Speaker,

We did not need to hold a Cabinet Meeting in Grand Bahama to give focus attention to that Island and do what was necessary to improve the quality of life for Bahamians residing there.

Mr. Speaker,

The projects and the accomplishments I have just outlined confirm that the FNM truly cared about Grand Bahama, and the welfare of all Bahamians residing there.

Failure to plan is a plan to fail. As a country we are failing miserably. Everything this Gold Rush touches is not only tarnished its disintegrating right before our eyes.

Since the implementation of the Agreement,just Sixty years ago, the Port Area has been a major source of profit for this country. It has always generated more revenue than expenditure for our Country. It can be argued that the Hawksbill Creek Agreement is one of the finest, if not the finest, pieces of legislation this country has ever seen.

The Port Area has been a cash cow for the Public Treasury since its inception. The Port Area has provided the Public Treasury with a net profit of not less than 60 million a year.

A few short years ago the purchase of a business in the Port Area resulted in a 180 million dollar stamp duty payment. The Treasury made a 250 million dollar profit out of the Port Area that year. None of this would have occurred without the Hawksbill Creek Agreement.

As recommended to the committee appointed to review the Hawksbill Creek Agreement, I wish to endorse those recommendations:

Freeport and Grand Bahama as a whole has grown, because of this Agreement, and the Country has benefited, because of its existence, we can see that, moving forward, we need to provide for the “proper nurturing” of the Agreement for the present and the future 

This Hawksbill Creek Agreement; particularly the real property tax, the capital gains tax and the business licence fee needs to extended at least for a minimum of 2 years, and in return for this extension the government should follow past practices of successive governments when amending the agreement in 1960 and 1966 and when extending the agreement in 1993. In each case the government exacted favourable terms beneficial to the Bahamian people.

In return for the support to extend these benefits it was proposed that the government insist that revenue resulting from the extension if granted, is recaptured through economic development and job creation. It was further propose that the following list of conditions become part of the negotiations.

(a)The transfer of ownership to new owners that meet government’s exacting criteria.

(b)The immediate establishment of a high level marketing team with specific mandate to market and promote Freeport as a world class tax free zone in which to locate business

(c)Within a specific period of time, say five years, the construction of a regional modern medical facility to accommodate a population of 100,000 persons.

(d)Use their best endeavours to, within a time certain, cause the construction of a cruise ship terminal complete with duty free concessions and touristic amenities.

(e)Develop and aggressively promote second home communities for high net worth individuals and wealthy retirees.

(f)Transfer the regulatory functions of all utility services, power, water etc. from the GBPA to URCA.

(g)Provide adequate land, free of charge, to an Ivy League university to encourage the development of the knowledge industry on Grand Bahama

(h) Design, Develop and Execute Lucaya as a multi- faceted world class tourism ‘’destination’’ offering a wide range of exciting vacation experiences.

This will allow Freeport to retain its “competitive edge” in the region for foreign direct investments, resulting in increased development potential and more government revenue.

Mr. Speaker,

Central Grand Bahama thanks you.

 


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