The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

An elated QC yesterday urged the Government to finally recognise that the Grand Bahama Port Authority (GBPA) and its 3,500 licensees were not “public enemy number one”, and that they shared the same objective: Freeport’s success.

Speaking after the Supreme Court backed his argument that the recent consultation process on Freeport’s future, and expiring tax exemptions, was “fundamentally flawed”, Fred Smith QC said the rights of all its stakeholders had been “vindicated”.

Calling for the Government to properly engage the GBPA and its licensees, rather than always end up in Supreme Court battles, the Callenders & Co partner said their co-operation could make Freeport “a smashing success”.

Yet he warned that if the Government continued to regard the city’s businesses and 75,000-strong population as “the enemy”, Freeport would continue to stagnate into “a flaccid economic zone”.

“I am delighted that the court has vindicated the rights of licensees to be properly informed in a consultation process affecting the future of Freeport,” Mr Smith told Tribune Business.

“This is a monumental victory for due process and respect for legitimate consultation. I am so glad that the Supreme Court and Court of Appeal have affirmed the right to be properly consulted.

“That is fundamental to the growth of democracy in the Bahamas. This is vital for the democratic process in the Bahamas, and the Freeport business community. They have a voice and are entitled to be heard.”

Mr Smith continued: “Carey Leonard and I, as well as the other 3,500 licensees and 75,000 Bahamians who live there, have a vested interest in the success of Freeport’s future.

“It is beyond me why the Government would keep the McKinsey report, which is fundamental to this debate, secret.”

Mr Smith was speaking after Justice Indra Charles yesterday ruled in favour of the Judicial Review action brought by himself and fellow Callenders & Co partner, Mr Leonard.

She found that the stakeholder consultation over proposed reforms to the Hawksbill Creek Agreement, Freeport’s founding statute, was “procedurally unfair” because the Government withheld key information from the public.

That ‘information’ was the report by international consultants, McKinsey & Co, which Messrs Smith and Leonard argued had left themselves - and other GBPA licensees - unable to provide meaningful feedback on the Government’s proposals.

Despite the Government itself admitting that the McKinsey report was a major influence on its Freeport thinking, and the ‘terms of reference’ for its Hawksbill Creek Agreement Review Committee, Justice Charles noted that it was only made publicly available “at the 11th hour” - the night before the Supreme Court was due to hear the Judicial Review.

Mr Smith, meanwhile, said the Government’s non-disclosure of the McKinsey report was even more baffling given that it was on the same side as the GBPA and its licensees, with all their interests aligned.

“We all want Freeport to be a success,” he told Tribune Business. “There should be no more secrets. Everything should be shared, so that everyone who has mutual interests, should be able to make an informed contribution to the process.

“I urge the PLP and FNM to give up this anachronistic, fortress mentality of governance in which they regard the citizens as enemies instead of partners for the future growth of Freeport and the country.

“Just like the Government, we want Freeport to succeed. It is unfortunate that every time there is an engagement with the Government, be it FNM or PLP, on issues related to Freeport, that it declines into court proceedings.”

Describing the relationship between the Government, GBPA and the latter’s licensees as “a tripartite public-private partnership”, Mr Smith added: “Believe me, if we can work together in co-operation, we can make Freeport a smashing success.

“But if the Government treats the Port Authority and its licensees as enemy number one, Freeport will flop, stumble and fail as a flaccid economic zone in the Bahamas.”

Following Justice Charles’ ruling, Mr Smith urged the Government to extend Freeport’s real property tax, income (Business Licence) and capital gains tax exemptions - which expired on Wednesday - for a further six months to enable proper consultation over the proposed Hawksbill Creek Agreement reforms.

“I am sure that Mr Christie wants Freeport to succeed,” he added. “Mr Leonard and I, and other licensees, are not the enemy. There is no enemy lurking in the dark, in the bushes, ready to pounce on the Government in Freeport.”

Mr Smith praised the work done by Dawson Malone and Adrian Gibson, the Callenders & Co legal team who represented himself and Mr Leonard at the Judicial Review hearing.