The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A former Cabinet minister yesterday read out pleas from his Grand Bahama constituents for the Government to extend the Hurricane Dorian tax breaks beyond December 1 as parts of the island still resemble “a scene from the apocalypse”. 

Kwasi Thompson, ex-minister of state for finance in the Minnis administration, advocated that the present Special Economic Recovery Zone (SERZ) for both Grand Bahama and Abaco be extended beyond month’s end because the Government lacks the resources and capacity “to restore all the persons” in both islands to pre-Dorian status.

The east Grand Bahama MP’s call prompted Myles Laroda, minister of state in the Prime Minister’s Office who has responsibility for the Disaster Reconstruction Authority (DRA), to venture that he would raise the SERZ Order’s imminent expiration with his colleagues in the Davis Cabinet.

With anxiety growing among both residents and businesses on the two Dorian-devastated islands, and the Government having signalled on several occasions it will not extend the SERZ and related tax breaks in their current format, Mr Thompson said: “I’ve been getting calls, social media, text messages and been stopped on the street to send a clear message to the Government to extend the SERZ Order for building materials, appliances, furniture, and supplies.”

Asserting that “Grand Bahama and Abaco are clearly still in recovery mode”, he read out letters from two constituents - who he did not name - pleading for the tax breaks to be extended as they remain in “dire” circumstances and have been unable to complete rebuilding their homes more than three years after the Category Five storm - the strongest to ever hit The Bahamas - struck.

Stating that he “really could not have said it better” himself, the first constituent told Mr Thompson that the likelihood the SERZ will not be extended in its present relief - with Dorian victims having to apply to the Government on an individual case-by-case basis for continued tax concessions and other relief - “is unacceptable on many levels”.

They wrote: “There are quite a few families living back in their homes, and some are more or less camping there. What criteria do they think is acceptable for one but not for another?! I know to some - particularly those in Nassau who have no idea what Grand Bahama went through or the extent of damage that was incurred - [but] the road out east looks like a scene out of the apocalypse. 

“Some houses are in utter ruin. What is going to happen to those properties? The owners can’t afford the high cost of knocking them down, but then the rest of us have to live with daily reminders, and some places look like a war zone. Granted, there has been a lot of improvement, but it’s far from complete. Some of it is not visible to the eye; when you drive through residential areas, the structural part of the homes looks fine, but they were gutted inside.

“If they don’t reconsider extending this exigency order, we will never be whole again, and if we do get that far it’s going to take such a long time. It makes our beautiful island look like a dump. But then again, Nassau doesn’t care less about the survival of Grand Bahama,” the constituent continued.

“We are tired of falling down the hole all the time, and it’s time someone truly stands up for Grand Bahama. We deserve more from government and we have a lot to offer if we can get the island back to standard. Please keep pushing for us.”

Mr Thompson’s second constituent, echoing similar sentiments, wrote: “I am hopeful that our government will consider extending the SERZ order, even if only for extenuating circumstances, to Bahamians in Abaco and Grand Bahama. My family home of 16 years in Turtle Reef, Bevan’s Town, east Grand Bahama was rendered unlivable by Hurricane Dorian in 2019. I then lost my job due to the pandemic and subsequent lockdown.

“Until recently, we have been unable to take advantage of the SERZ concessions because of the lack of income and the restrictions imposed by the lock down. We are currently in the middle of building a new home in Freeport and fear that we will not be able to finish if the SERZ order is cancelled.

“We are still in need of a considerable amount of materials, plumbing and electrical fittings, household furnishings and major appliances to name a few. While we make an honest effort to shop locally when possible, supply chain issues have also made this difficult. We are desperate to finish our home and get out of paying both rent and a mortgage at the same time. Being in such a dire situation can hardly be considered ‘economic recovery’.”

Concluding with a flourish, Mr Thompson demanded of the Government: “Take VAT off food, take VAT off medicines, and you need to extend the SERZ Order for people in Grand Bahama and Abaco.” This prompted Mr Laroda to request that the east Grand Bahama MP send both constituents’ letters to himself and he would do what can to assist.

Mr Thompson, in response, argued that there were so many Abaco and Grand Bahama residents still struggling to rebuild that the Government - with its limited financial resources - would find it impossible to help all in need. Instead, he argued that the Government should assist those who can to help themselves by reducing recovery costs via tax breaks.

“There are so many others,” he added. “The reality is I don’t believe the Government has the capacity to restore all the persons in Abaco and all the persons in Grand Bahama with all their needs. I don’t believe the Government is going to be able to supply all of our building material needs for everyone damaged in Hurricane Dorian.”

Persons were saying they could bring in the necessary construction materials and home fixtures, Mr Thompson added, and were only calling for the Government to facilitate their VAT and duty-free importation and purchase. “We are asking you to continue the SERZ order,” he said.

Mr Laroda replied: “No government has the capacity to do it all. On this side we will do as much as we can for as many as we can.” He added, though, that he was “not too big to take that to Cabinet to consider”. The Order, though, is due to expire on December 1 and the Government has already signalled it will not be extended in its present blanket form.

Michael Halkitis, minister of economic affairs, has said at least twice that the Davis administration believes the current SERZ format is giving away too much in revenue. It feels that the tax breaks are being exploited by those who do not require them, especially wealthy foreign second homeowners, and that the SERZ is also being abused for tax evasion and other nefarious purposes by Bahamians living outside Grand Bahama and Abaco.

The minister has indicated, though, that a structure will be established where Abaco and Grand Bahama residents and businesses will still be able to apply for relief on a case-by-case basis. It is unclear, though, how this will work and whether it is likely to become mired in bureaucracy and red tape.