NASSAU, The Bahamas -- Amidst busy schedule, Prime Minister and Minister of Finance the Rt. Hon. Perry Christie, centre, is pictured arriving downtown at the House of Assembly for government business. (BIS Photo/Peter Ramsay)

Nassau, The Bahamas -- Prime Minister and Minister of Finance the Rt. Hon. Perry Christie said, as he made his Communication on the Grand Bahama (Port Area) Investment Incentives Bill in the House of Assembly, on August 8, 2016, that the Government is putting forward legislation that creates a new framework for development – one that allows The Bahamas to compete for global investments, and introduces a new framework of transparency and accountability commensurate with the incentives awarded.

"As a reminder, this legislation is the product of an extensive review, the first of its kind in 60 years, representing the collective work of a bipartisan Review Committee, and a Cabinet sub-committee, supported by a technical team and consultants, and including over a year’s worth of input from stakeholders, businesses, and civil society on Grand Bahama Island. The cooperation and meaningful collaboration of the Grand Bahama Port Authority (GBPA) and other stakeholders, including the signatories to the Memorandum Of Understanding (MOU) should be noted," Prime Minister Christie said.

He added that that legislation is based on the idea that tax concessions, when used properly, can be an inducement to encourage private sector investment and/or employment in sectors that offer the greatest long-term potential for Grand Bahama.

Accordingly, Prime Minister Christie pointed out, the legislation creates a new framework that will replace and modernize the current approach for tax concessions in Freeport.

"It is consistent with global best practices, and reflects the Government’s commitment to partnering with the GBPA to reduce excessive red tape that is impeding investment," Prime Minister Christie said. "It is imperative that we increase the overall ease of doing business in Freeport."

Under the legislation, Prime Minister Christie pointed out, the same tax concessions that expired in May will be granted by the Government for a period of 20 years to existing licensees of the GBPA on an individual basis, subject to meeting development commitments and under a framework that would provide for the maintaining of performance through periodic reviews every five years.

The same framework will apply to new licensees, he said, once they submit and obtain approval of their development plans.

"The goal of this new framework is to help this and any future Government monitor and evaluate the job creation and economic outcomes that are produced by the economic incentives provided," Prime Minister Christie said. "These requirements will be implemented sensibly, with significant input from Freeport stakeholders."

"The premise behind these new requirements is simple – for us to create the conditions for growth we must understand what is working today, and where concessions are contributing to job creation and economic growth," he continued. "From there we can evaluate how to double down on those sectors that hold promise and contribute to their growth in the form of workforce development and other policy initiatives."

Importantly, Prime Minister Christie said, the legislation also aligns the application of real property tax on large parcels of undeveloped land with the policies in place in the rest of The Bahamas.

"Under the legislation, undeveloped land held by non-Bahamians owning more than five acres will be subject to real property tax – as is the case across the country," he said. "At the same time, owners of these sizable parcels of land will have ample opportunities to seek relief from any tax liability, provided that they develop the land."

That policy is sensible and pro-growth, Prime Minister Christie stated, as it creates "meaningful incentives" for development. It also ensures that the Bahamas no longer grants millions of dollars in tax relief to land holders who are not investing for the development of Grand Bahama, he added.

The legislation sets the foundation for growth on Grand Bahama Island, but many additional activities will need to come next, Prime Minister said.

"First, we will be laser focused on ensuring the activities agreed to in the multi-party Memorandum Of Understanding are undertaken," he said.

"Second, to meet my goal of bringing The Bahamas into the top 50 on the World Bank’s Ease of Doing Business Index, we will need to reshape and streamline our investment approval and licensing processes, starting in Grand Bahama through a collaborative effort with the Grand Bahama Port Authority," he noted. "We will be creating a one-stop-shop for business setup in Grand Bahama, which will be world class in terms of transparency, efficiency, and effectiveness."

The "one-stop-shop" – which the Government intends to create in partnership with the GBPA – will serve as an advocate for investors, facilitate timely feedback on license and regulatory applications, and create an atmosphere for investment that is "second to none" in the region, Prime Minister Christie said.

"Related to the legislation for debate today, this one-stop-shop will ensure the granting of concessions is done efficiently, while ensuring investors propose development plans that merit concessions," he said.

He added that the Government plans to begin building the one-stop-shop via workshops with the GBPA and other stakeholders.

"Third, reflecting our forward-looking commitment to expand the economy of Freeport and attract new investors, we will work closely with the Grand Bahama Port Authority to transform the way we attract, retain, and expand investment in Grand Bahama," Prime Minister Christie said.

The Government will collaborate with the GBPA in a recommitment to world-class investment promotion to attract domestic and foreign direct investors to the Port Area, Prime Minister Christie added.

"We will work together to redesign our approach to investment promotion, which will be firmly anchored in Freeport’s unique value proposition in the global market," he said.