SIX MEMBER COMMITTEE TO REVIEW HAWKSBILL CREEK AGREEMENT – From left: James Smith, Dr. Marcus Bethel (Chairman), Cassietta McIntosh, Prime Minister Christie, Maurice Moore, Kevin Seymour, and Sir Baltron Bethel. (BIS Photo/Vandyke Hepburn)
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FREEPORT, Grand Bahama - A six-member committee to review the Hawksbill Creek Agreement was announced
by Prime Minister the Rt. Hon. Perry Christie
on Thursday during a press
conference at Grand Lucayan.
The committee is
headed by Dr. Marcus Bethel, businessman and former Minister of Health. Other
members include: Sir Baltron Bethel, member; Mr. James Smith, member; Mr. Kevin
Seymour, member; Mr. Maurice Moore, member and Ms. Cassietta McIntosh, member. W. Albert Gray is a consultant, and Dr.
Doswell Coakley, Ms. Chevonia McBride of the Ministry for Grand Bahama, and Mr.
Terrance Roberts of the Ministry of Tourism, make up the Secretariat.
According to Prime
Minister Christie, he called the press conference to "announce a timely
significant intervention which my government is making with a view to charting
a path forward to positively impact economic growth in Grand Bahama with a
framework suited to the present and future."
In August of this
year, certain provisions of the Hawksbill Creek Agreement are due to expire,
namely exemptions on business licence fees and real property tax. "For
some time the Grand Bahama economy, despite the broad incentives and tax
concessions under the Hawksbill Creek legislation, has remained stagnant and
with limited exceptions, thus adversely impacting economic growth in the
private sector and government revenues. In
the absence of aggressive policy interventions to jumpstart a new round of
development, and enhance returns on existing investments, Grand Bahama's
economic performance could remain sub-par relative to other islands in The
Bahamas. Thus the expiration of these Hawksbill Creek Agreement incentives
provides an opportunity for the Government to secure a comprehensive set of new
arrangements which can spur economic development and increase the Island's
contribution to net fiscal receipts."
Following the study of
the economic situation in the Port area by international consulting firm
McKinsey and Co., the government appointed the committee to meet and negotiate
with representatives of the Grand Bahama Port Authority, investors, relevant
public, private sector and community interests, so as to recommend to the
government arrangements for securing both an economic package to promote more
robust sustained growth, and a fiscal package that enhances Grand Bahama's
contribution to the government's revenue base.
HAWSBILL CREEK AGREEMENT REVIEW - Prime Minister, the Rt. Hon. Perry Christie on Wednesday during a press conference at Grand Lucayan, announced the Hawksbill Creek Agreement Review Committee, to be chaired by Dr. Marcus Bethel. Shown from left are: Terrance Roberts, secretariat; Doswell Coakley, secretariat; Chevonia McBride, secretariat; James Smith, member; Dr. Marcus Bethel, chairman; Dr. the Hon. Michael Darville, Minister for Grand Bahama; Cassietta McIntosh, member; Prime Minister Christie; Maurice Moore, member; Kevin Seymour, member; Sir Balton Bethel, member; Dania Wallace, Deputy Director of Legal Affairs, and Albert Gray, consultant. (BIS Photo/Vandyke Hepburn)
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The main objectives of
the committee are:
(i) Agree with the Grand Bahama Port Authority
and principal licensees a long term economic development plan which both
protect and promote the shipping, industrial, logistics, tourism, real estate
and other commercial sectors as the focus for Grand Bahama Island;
(ii) Create a
framework for immediate and long-term investment promotion on the island to
attract investors which can operate assets competitively at a world class
standard, and effectively and efficiently utilize the land resources with
proper environmental safeguards;
(iii) Ensure that the
mechanisms are in place to align the Grand Bahama Port Authority's
quasi-regulatory authority with the policies of the government and that a
regulatory framework exists in keeping with present and changing international
business best practices; and
(iv) Agree a suitable
framework for property tax and business licence that would not impede economic
growth, and contribute along with other suitable measures to the enhancement of
the government's revenue base.
The committee, he
said, will carry out its duties with the support of McKinsey and Company and
assisted by the a technical team from the Office of the Prime Minister, the
Ministry of Finance, and the Office of the Attorney General.
The Prime Minister
added that on the death of Sir Jack Hayward and Edward St. George, there are
entities from around the world expressing an interest in purchase of the Grand
Bahama Port Authority. The committee will be able to assist him, 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."
THE RIGHT HONOUORABLE PERRY G. CHRISTIE, M.P. PRIME MINISTER & MINISTER OF FINANCE ON COMMITTEE TO REVIEW AND MAKE RECOMMENDATIONS WITH RESPECT TO THE EXPIRATION OF CERTAIN PROVISIONS OF THE HAWKSBILL CREEK AGREEMENT AND OTHER APPROPRIATE MEASURES TO PROMOTE AND SUSTAIN ECONOMIC GROWTH IN GRAND BAHAMA
MARCH 5th, 2015
As indicated in my extensive presentation this morning at the Grand Bahama Business Outlook. I have called this Press Conference to announce a timely significant intervention which my Government is making with a view to charting a path forward to positively impact economic growth in Grand Bahama within a framework suited to the present and future, that also has due regard to the provisions of The Hawksbill Creek Agreement.
Certain provisions of The Hawksbill Creek Agreement with respect to exemptions on business licence fees and real property tax are due to expire in August of this year. For some time the Grand Bahama economy, despite the broad incentives and tax concessions under the Hawksbill Creek legislation, has remained stagnant with limited exceptions, thus adversely impacting economic growth in the private sector and Government revenues. In the absence of aggressive policy interventions to jumpstart a new round of development, and enhance returns on existing investments, Grand Bahama’s economic performance could remain sub-par relative to other islands in The Bahamas. Thus the expiration of these Hawksbill Creek Agreement incentives provides an opportunity for the Government to secure a comprehensive set of new arrangements which can spur economic development and increase the Island’s contribution to net fiscal receipts. Several months ago the Government retained the international consulting firm McKinsey and Co to consult with the Grand Bahama Port Authority and other stakeholders and to undertake a study of the economic situation within the Port Area, the implications of the expiring incentives, and measures which might be taken to spur economic development. McKinsey and Company has presented its Report to the Government.
Following upon the McKinsey Report, the Government has therefore appointed a Committee to hold discussions and negotiations with representatives of the Grand Bahama Port Authority, investors, relevant public, private sector and community interests, with a view to making appropriate recommendations to the Government on arrangements for securing both an economic package to promote more robust sustained growth, and a fiscal package that enhances Grand Bahama’s contribution to the Government’s revenue base.
In this regard there are several main objectives:
(i) Agree with the Grand Bahama Port Authority and principal licensees a long term economic development plan which both protect and promote the shipping, industrial, logistics, tourism, real estate and other commercial sectors as the focus for Grand Bahama Island;
(ii) Create a framework for immediate and long-term investment promotion on the island to attract investors which can operate assets competitively at a world class standard, and effectively and efficiently utilize the land resources with proper environmental safeguards;
(iii) Ensure that the mechanisms are in place to align the Grand Bahama Port Authority’s quasi-regulatory authority with the policies of the Government and that a regulatory framework exists in keeping with present and changing international business best practices.
(iv) Agree a suitable framework for property tax and business license that would note impede economic growth, and contribute along with other suitable measures to the enhancement of the Government’s revenue base.
The Committee will report to a Ministerial sub-committee chaired by the Prime Minister and Minister of Finance. It is expected to conclude its work before the real property tax and business license exemptions expire in August 2015. The Committee is comprised of the following persons:
Dr. Marcus Bethel, Chairman
Sir Baltron Bethel
Mr. James Smith
Mr. Kevin Seymour, President Grand Bahama Chamber of Commerce
Mr. Maurice Moore
Ms. Cassietta McIntosh
The Committee will carry out its duties in collaboration with and the support of the consulting firm of McKinsey and Company. It will be assisted by a technical team from the Office of the Prime Minister, the Ministry of Finance and the Office of the Attorney General. The Ministry for Grand Bahama would coordinate administrative support.
My Government looks forward to the full cooperation of all concerned parties in facilitating the Committee’s work, and to a successful outcome of this important exercise.
