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PM says Freeport tax ‘glitch’ is settled

BY DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

PRIME Minister Perry Christie has assured Grand Bahamians that a “glitch” in relation to the roll back of the 2013-2014 Budget tax fee increases imposed on Freeport was settled on Friday during his visit to the island.

Mr Christie was responding to comments made by Freeport attorney Carey Leonard who criticised government for not fulfilling the terms of a Memorandum of Understanding (MOU) between the government and the Grand Bahama Port Authority (GBPA), agreeing to rescind all new taxes.

Mr Leonard was referring to the one per cent processing fee on the Customs C-14 form, the environmental levy fee and the one per cent processing fee on Customs’ C-29, C-30 and C-35 forms that deals with exports.

Mr Christie said that he is committed to keeping his word. “The government does not enter into understandings in a place like GB where it does not have intention to fulfil the understanding we arrive at. That was my word, and my word would be fulfilled,” he said.

The Prime Minister explained that the delay was the result of a misunderstanding between the Ministry of Finance and its direction to Customs.

“When I came here the newspaper had an insertion from Carey Leonard, an attorney ... who was speaking about government not fulfilling the terms of the MOU arrived at ... in discussion with the GBPA and the Container Port, and we indicated our adherence to what we agreed to do, in consideration of which more jobs will come to GB.

“There is no deviation from the intention,” Mr Christie said. “There seems to have been a glitch between the MOF and its direction to Customs, and Customs interpretation and execution of what was intended. I directed that that glitch be settled during the course of the day.

“Whatever misunderstandings there were,they settled it today. And I have been in discussion with the Financial Secretary in New Providence to ensure that the meeting with the Customs Comptroller and discussions take place with his subordinates in GB.”

The Prime Minister also indicated that the government is looking to make a decision regarding exemptions under the Hawksbill Creek Agreement (HCA) that are due to expire on August 1, 2015. He stated that they have hired an internationally renowned company, McKenzie & Co, to review the HCA and to consult with the Grand Bahama community.

“They are now in GB and we have comrades with them, and collectively we will listen to the advice that comes from the consultation. We think it will take six to eight weeks and we will be in a position to begin to discuss the future of Grand Bahama,” Mr Christie said.

The Prime Minister said the consultation would allow government to make decisions regarding business licences and real property tax, as well as how it can assist in the better promotion of Grand Bahama.

“In Grand Bahama, there is this stifling inertia that is causing us a lot of difficulties, and we have to put our minds together to get the direction of this island in the right pathway,” he said.

We are having a significant number of applications for development in different parts of the Bahamas ­ in Abaco we approved certain things, in Exuma and in NP, where we continue to approve property developments of major consequence. And I have to question why we are having so much interest in NP in terms of Albany, and other developments like that where persons are buying second homes in Abaco, and in Exuma where major developments are taking place. Why is it so static in Freeport and GB, and that is what we are trying to address. We promised to bring a different day in GB.”

Mr Christie said it is expected that McKenzie and Co would enable government to look at the HCA and make decisions that would be positive for the GBPA, Hutchison and to Bahamians.

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