NASSAU, BAHAMAS — The Grand Bahama Port Authority (GBPA) yesterday pushed back against recent assertions by Prime Minister Philip Davis, suggesting that increased government bureaucracy and red tape in breach of the Hawksbill Creek Agreement (HCA) has held Freeport back.
During his wrap-up to the budget debate on Monday Prime Minster Philip Davis asserted that the Grand Bahama Port Authority (GBPA) needs a “management and governance change” in order to realize real growth and opportunities in Grand Bahama.
He also stated that the government has begun providing invoices to the GBPA for reimbursable expenses, although no reimbursements have been provided to date.
The GBPA in a statement yesterday noted that the Hawksbill Creek Agreement (HCA) contains commitments on the part of both GBPA and The Bahamas Government. It noted that projects mentioned by Prime Minister Davis—specifically healthcare, education, the airport, and the Grand Lucayan Hotel—are actually Government responsibilities under the HCA, not GBPA commitments.
“Further, Government’s claims under clause 1(5) of the HCA are contested. GBPA is yet to be satisfied that the Government’s purported claims, which have lain dormant for more than 50 years, are justified and supported by credible evidence. They are, however, being reviewed and will be fully addressed,” the GBPA noted.
It further stated: “We would add, however, that the claims under this clause, which has not been amended since 1965, when Freeport was in its infancy, have little relevance today. At the time, the Government merely collected Excise Tax; today, they extract a multitude of additional taxes which include but are not limited to, cruise and airport passenger taxes, environmental taxes, road taxes, room taxes, as well as import/export duty and VAT, to name but a few.
“It is also an anomaly to ask the GBPA to fund the Ministry of Grand Bahama. The fact of the matter is, Freeport has always been, and continues to be, a net contributor to the Bahamas Treasury, despite the increased Government imposed bureaucracy and red tape, in breach of the HCA, which has held Freeport back.”
