The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

PRIME Minister Perry Christie yesterday confirmed the Government was looking to roll back the new and increased taxes levied on Freeport in the 2013-2014 Budget, emphasising that the administration was “flexible” on the matter.

Speaking at the National Conclave of Chambers of Commerce in the Bahamas, Mr Christie said the Government had been in discussions with Hutchison Whampoa, the Freeport Container Port’s majority owner, and the Grand Bahama Chamber of Commerce, on the issue, and acknowledged that a Memorandum of Understanding was being completed.

Mr Christie’s remarks effectively confirmed Tribune Business reports that the Government was looking to “roll back” the controversial 1 per cent Customs administrative processing fee in Freeport to help facilitate the long-proposed $250 million expansion at the Freeport Container Port.

The issue is set to be the subject of a court challenge by the Grand Bahama Chamber of Commerce and various Grand Bahama Port Authority (GBPA) licensees, although Tribune Business understands that draft legal filings were for a constitutional motion rather than the initially-contemplated Judicial Review.

Mr Christie said: “With respect to Grand Bahama, we are very flexible and we have had discussions with Hutchison Whampoa and Grand Bahama Port Authority representatives.I indicated to them as clearly as I could that I was prepared, in consideration of a substantial increase in employment and investment, to take into consideration this factor that the Panama Canal is now opening up new opportunities, that Jamaica has a container port with cheaper labour, the Dominican Republic has a container port with cheaper labour, that Costa Rica is now concluding a container port with cheaper labour, and therefore I must accept the challenge put to me of understanding the cost of labour in the Bahamas.”

He added: “Therefore, the extent to which we must help them maintain their competitiveness and, I say, in consideration of all those things, let’s help Grand Bahama by employing more people, and yes, I will hold back taxes if you are able to do those things.”

Mr Christie said he had spoken with Sr Jack Hayward and Sarah St George, the Port Authority’s co-chairs, on the Government’s commitment, and called on them to reach out to other Freeport-based companies and reply back to him.

“That’s what they are doing now, and I am receiving indications on what they are prepared to do in consideration of what I have said,” said Mr Christie.