The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

THE Grand Bahama Port Authority defended its management of Freeport yesterday after Prime Minister Philip “Brave” Davis criticised its performance, saying increasing bureaucracy and red tape from the government have held the island back.

Foreign Affairs Minister Fred Mitchell quickly expressed shock after the GBPA released its statement, insisting the authority is “failing in its duty”.

The back and forth is the latest sign of the high tensions between the government and the GBPA, with the authority saying it released its statement because of the uncertainty the Davis administration’s comments have caused.

 In the House of Assembly on Monday, Mr Davis said the GBPA had not paid money owed to the government. He also called for new management of the authority.

 In response, the GBPA said “it is yet to be satisfied” that the debt claims are supported by credible evidence.

 The authority said the matter is being reviewed and that the claims will be addressed later.

 “Government’s claims under clause 1(5) of the HCA are contested,” the authority said. “GBPA is yet to be satisfied that the government’s purported claims, which have lain dormant for more than 50 years, are justified and supported by credible evidence. They are, however, being reviewed and will be fully addressed.

 “We would add, however, that the claims under this clause, which has not been amended since 1965, when Freeport was in its infancy, have little relevance today. At the time, government merely collected excise tax; today, they extract a multitude of additional taxes, which include, but are not limited to cruise and airport passengers taxes, environmental taxes, road taxes, room taxes as well as import/export duty and VAT to name but a few.”

 “It is also an anomaly to ask the GBPA to fund the Ministry of Grand Bahama. The fact of the matter is Freeport has always been and continues to be a net contributor to The Bahamas Treasury despite the increased government-imposed bureaucracy and red tape in breach of the HCA, which has held Freeport back.”

 The GBPA noted the Hawksbill Creek Agreement contains commitments for the authority and the government.

 It said projects Mr Davis mentioned involving healthcare, education, the airport, and the Grand Lucayan report are commitments of the government under the law, not the GBPA.

 Reacting to the authority’s statement, Mr Mitchell said: “They know what the facts are regarding their situation, they simply do not have the money to carry the city where it needs to go.”

 “The question is not a tit-for-tat on who is responsible for what in the Hawksbill Creek Agreement,” Mr Mitchell said in a video sent to the press. “You can have a legalistic argument all you want. The point is, overall, the citizens of Grand Bahama and Freeport and The Bahamas know that right now the Grand Bahama Port Authority is failing in its duty to the city, its residents and to the country.”