The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

FREEPORT – Attorney Fred Smith, QC, is urging Freeport licensees to unite in bringing a case against the government and its decision to impose new taxes under the Customs Management Act.

He is confident that they could win. While speaking at the Grand Bahama Chamber of Commerce luncheon at Pelican Bay Resort on Friday, the lawyer told business licensees that most of the new taxes under the Customs Management Act are illegal.

“The only one that is not illegal is the customs attendance fee, which is a payment for a service,” he said.

Mr Smith, a partner at Callenders & Co law firm, has won numerous cases whenever the government has sought to violate the terms and conditions of the Hawksbill Creek Agreement.

“We have a great case. We brought every single case against the government over the last 30 years, not one case have we lost.

“We are on solid ground. So I urge you to stick together, to come together, to fight this case, and stay together after this case and fight all the other battles we will have to fight.”

Mr Smith stressed that the Grand Bahama Port Authority depends on the 3,500 business licensees in Freeport.

“It is good that we are uniting in numbers. We have the power,” he said.

“Freeport belongs to the licensees. The Port Authority would be nothing without the licensees, the Port only exists because the licensees pay license fees.”

Mr Smith urged Port Authority executives to stand with the licensees.

“I urge the Port Authority to work with us and unite with us, and for us to collaboratively go to the government and say: ‘Listen we want to work with you because your objective is to better the lives of the 60,000 living in Freeport.”

Sir Jack Hayward, Grand Bahama Port Authority principal owner, said the Port Authority has an obligation to its licensees, who are the lifeblood of Freeport.

He and Sarah St George met with Prime Minister Perry Christie and Minister of Finance Michael Halkitis in Nassau on Thursday to discuss their concerns regarding the new taxes in the Customs Management Act.

“Very few people in government know the HCA. We covered all points with the PM, and he said he will get back to us.”

Sir Jack said Freeport is facing some “serious” challenges.

“We are facing probably the most serious problems that I have ever known in my nearly 60 years in Freeport, and we have got to face it.

“I will say this, the Port Authority is on the side of the licensee. The licensee are the lifeblood of Freeport and the lifeblood of the Port Authority.

“The PA has an obligation to the licensees under the HCA. And Sarah and I wrote a letter to the PM about a week ago… and within a few days he replied, and said he will like to meet us.”

Sir Jack said the government does not want any litigation.

“They do not want to go to court against the PA or the licensees. They want to resolve it.”

Sir Jack believes that litigation would only further increase the uncertainty for Freeport and for investors to come in.

Sarah St George said the signing of the HCA in 1955 has transformed the pine barrens of Grand Bahama and created enormous developments in Freeport.