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.