The Tribune

* Attorney blasts 'get rid of Port' focus

* Says report proposals 'Nassau centric'

* Gov't must ask: Is Port fulfilling mandate?

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Economic Recovery Committee's report was yesterday blasted by a Freeport-based attorney for failing to propose a single idea for boosting Grand Bahama's economic growth.

Carey Leonard, a former Grand Bahama Port Authority (GBPA) in-house counsel, told Tribune Business that the 63-page summary released yesterday seemed solely focused on blaming the GBPA for all the city and island's economic woes.

A frequent critic of the GBPA himself, Mr Leonard argued that the Government-appointed committee had done nothing when it came to recommending "sustainable economic growth" ideas that could attract new industries to Grand Bahama.

Branding the report's section on Grand Bahamas as "totally Nassau-centric", he said it showed the Committee and government "have no economic plan for Grand Bahama" despite praising its potential.

"There's no understanding of the Port area," Mr Leonard told this newspaper. "They're not dealing with the economic problems, they're not solving economic problems. They're trying to bring blame on the Port Authority for everything that's wrong now.

"Everybody knows the Port Authority is not the biggest culprit at the moment; that's clearly Hutchison. They're [the Committee] not dealing with how to bring business in; they're attacking the Port Authority. To me it's a lot of fluff and not a sound idea in the whole thing. There's nothing in there that shows me how they're going to boost the economy of Grand Bahama."

Many would argue that the Port Authority has failed to live up to its development and other quasi-governmental obligations in recent years, and the Committee's report largely focuses on those shortcomings. Marlon Johnson, its co-chair, yesterday said the section on Grand Bahama was based heavily on feedback from persons and businesses on the island.

"Grand Bahama has historically represented an integral component of The Bahamas’ growth and development model. In recent times, however, the island’s economy has experienced contractions and sluggish growth, which has in turn led to pronounced depopulation and brain-drain," the Committee's report said.

"Consequently, addressing the structural issues that have impeded economic growth and job creation on this island is vital, and requires both bold and transformative thinking."

Many of the Committee's proposals appear to be an attempt to reinvent the wheel. A number of them, including Grand Bahama Development Company (DevCo) producing a master plan for its 80,000-acre landholdings, and assessing the Port Authority's ability to fulfill its mandate, were contained in the 2016 Memorandum of Understanding (MoU) with the then-government which appears never to have been enforced.

"Assess the Grand Bahama Port Authority’s suitability to carry out its developmental and promotional mandates, including a review of the entity’s financials. If it is determined that the agency is unable to fulfill its mandate, then the appropriate action on the Government’s behalf should be taken to address this issue," the Committee added.

The "appropriate action" referred to is not defined by the Committee, which then appears to seize on the section of the Hawksbill Creek Agreement, Freeport's founding treaty, that deals with devolving the Port Authority's quasi-governmental powers to a local authority if 75 percent of its licensees vote in favour of doing so.

"Gradually devolve the rights, powers and obligations presently held by The Grand Bahama Port Authority to a local authority comprised of current GBPA licensees, Port Group representatives, and central/local government representatives," the report added.

It also called for the Government to either pass legislation clarifying that the tax breaks which expired on August 4, 2015, have been extended for the benefit of all GBPA licensees, adding: "The lack of formal legislation evidencing the extension of tax exemptions is creating uncertainty among licensees and prospective licensees of the GBPA, and may serve as a hindrance to future investment."

And, not forgetting the present realities on Grand Bahama, the Committee said: "Obtain urgently the governmental ownership and control over the Grand Bahama International Airport via negotiation with the GBPA and other lawful means."

Several of the Committee's recommendations echo those found in the proposals produced by the Port Authority's own recovery committee and initiative. However, Mr Leonard lamented that the Government-led effort had offered no suggestions on areas such as Immigration reform, and what could be done to attract new businesses and industries "a la Grand Cayman".

"What industries should we be going after?" he asked. "There is nothing in there to provide sustainable economic growth for Grand Bahama. I'm extremely disappointed with the lack of understanding as to how the economy of Grand Bahama works. They talk about going after the airport, but everybody knows the Harbour should go with the airport."