The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Minnis administration is "well on its way" to creating an investment unit dedicated to Grand Bahama, a Cabinet minister said yesterday. Kwasi Thomson.

During his Senate contribution on the 2017-2018 Budget, Kwasi Thompson said concerns over 'the ease of doing business' - particularly the time taken to process investment applications - applied equally to Grand Bahama.

"A significant part of our vision includes the creation of an investment unit or BIA (Bahamas Investment Authority) department in Grand Bahama," the minister of state for Grand Bahama said.

" We have reports upon reports, and it has been clearly recommended that because of the Hawksbill Creek Agreement a one-stop shop for investment applications be created. While I am not opposed to this concept, and we will get there in some form, I believe some simple basic actions are also needed for Grand Bahama.

"Applications for Grand Bahama investments should be made in Grand Bahama instead of the Bahamas Investment Authority in Nassau. These applications can be processed by trained staff in Grand Bahama, who will do exactly what Nassau does," Mr Thompson added.

"Project officers in Grand Bahama will contact other government agencies. We believe that it is possible for investment projects that are processed in Grand Bahama to be ready to present to the National Economic Council within a month of receipt. This is the goal we will be working towards. If we can achieve this on a consistent basis, investors will be even more encouraged to come to Grand Bahama which means jobs, jobs. I am happy to say we are well on our way to creating this investment unit in Grand Bahama."

Mr Thompson reaffirmed that the Minnis administration would repeal and replace the "job killing" Grand Bahama Investment Incentives Act. "This process from day one was flawed," he argued.

"The committee was appointed too late, the Government was unable to fulfill all of the recommendations its own committee recommended and, finally, after it consulted with the Grand Bahama Port Authority they failed to accept the warning from the private sector and the Port on this Act. Some concerns included ambiguity regarding Bahamian citizens who own more than five acres of undeveloped land, and whether the new Act would apply to those persons."

Mr Thompson added: "The requirements of the Act seemed to impose an extra burden on Bahamian licensees of the GBPA, which other Bahamians are not required to meet. This is contrary to the Hawksbill Creek Agreement, which prohibits the enactment of legislation and the imposition of regulations or conditions by the Government affecting the Port Area which discriminate against the Port Area, or any business, within the Port Area when compared to the rest of the Bahamas. Litigation as a result of this Act was sure to follow.

"Further still, it was expressed that the Incentives Act would bring about a tedious process for new businesses. After first applying for a GBPA license, a new licensee would then have to apply through the Government as an existing licensee for concessions. It will become a circular process with duplication of time and effort. Not only would the process be repetitive for new business, but there is no guarantee that all licensees who apply would be granted the concessions.

"There were no specific criteria which, once met, will give certainty to investors regarding the grant of the concessions. Without this certainty, potential investors are sure to be discouraged from doing business in Grand Bahama due to the difficulty and risk of wasted time."