Freeport has brought home the bacon - St. George
Just five months away, the taxation part of the Hawksbill Creek Agreement is expected to drop away if the Government of The Bahamas and the principals of the Grand Bahama Port Authority do not come to another agreement.
The Prime Minister Mr. Perry Christie said he is setting up a committee to deal with this and expects that the committee this has not be established yet, will come to a conclusion in more than enough time to be signed before August 5, 2015.
With talks still waiting with the public, the Grand Bahama Port Authority stated their feelings during the recent Grand Bahama Business Outlook.
Sarah St. George, Vice Chairman stated now is the time to unleash the economic potential Freeport and to do so by extending the concessions under the Hawksbill Creek Agreement.
"Extending the concessions will boost investor confidence within and without Grand Bahama. It will attract new investors and last but not least it will significantly increase Freeport's direct and indirect contribution to the Governments Treasury and NIB" she said.
"What remains are customs and import duties, stamp taxes and exemption from excise and export taxes. GBPA feels that VAT legislation is still open to interpretation under the Hawksbill Creek Act under these clauses 2.1 to 2.8 specifically with regard to services and utilities, but that is an ongoing debate with the Attorney General" she added.
She noted that the impact of additional taxes must be weighed against the urgent need for growth and stability in Freeport. Competitiveness and simplicity of regulations, she said, are the ideals.
She said that Freeport's direct contribution to the nation in taxes and duties are some $143.5 million and added that when added to National Insurance contributions the total jumps to $188.5 million; and now with VAT added this amount will exceed $200 million.
However she said, "with the right kind of economic incentives that number will grow.
"But, you have to offset this with the national contribution to Freeport. The Government pays for public education services, public health care, justice and security - courts, the police, the fire brigade - customs and immigration tourism promotion and subsidies (airlift, sealift, the casino etc, amounting to $27 million)."
She said that to build Freeport again today, KPMG estimates would cost around $1 billion.
To this she said, "Freeport, I think, has brought home the bacon and does pay its own ways and is ready to do more."
As for future, she noted that the price of the power bills have come down and plans are in the works for solar fields to assist.
The Prime Minister Mr. Perry Christie said he is setting up a committee to deal with this and expects that the committee this has not be established yet, will come to a conclusion in more than enough time to be signed before August 5, 2015.
With talks still waiting with the public, the Grand Bahama Port Authority stated their feelings during the recent Grand Bahama Business Outlook.
Sarah St. George, Vice Chairman stated now is the time to unleash the economic potential Freeport and to do so by extending the concessions under the Hawksbill Creek Agreement.
"Extending the concessions will boost investor confidence within and without Grand Bahama. It will attract new investors and last but not least it will significantly increase Freeport's direct and indirect contribution to the Governments Treasury and NIB" she said.
"What remains are customs and import duties, stamp taxes and exemption from excise and export taxes. GBPA feels that VAT legislation is still open to interpretation under the Hawksbill Creek Act under these clauses 2.1 to 2.8 specifically with regard to services and utilities, but that is an ongoing debate with the Attorney General" she added.
She noted that the impact of additional taxes must be weighed against the urgent need for growth and stability in Freeport. Competitiveness and simplicity of regulations, she said, are the ideals.
She said that Freeport's direct contribution to the nation in taxes and duties are some $143.5 million and added that when added to National Insurance contributions the total jumps to $188.5 million; and now with VAT added this amount will exceed $200 million.
However she said, "with the right kind of economic incentives that number will grow.
"But, you have to offset this with the national contribution to Freeport. The Government pays for public education services, public health care, justice and security - courts, the police, the fire brigade - customs and immigration tourism promotion and subsidies (airlift, sealift, the casino etc, amounting to $27 million)."
She said that to build Freeport again today, KPMG estimates would cost around $1 billion.
To this she said, "Freeport, I think, has brought home the bacon and does pay its own ways and is ready to do more."
As for future, she noted that the price of the power bills have come down and plans are in the works for solar fields to assist.
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| Sarah St. George, Vice Chairman, Grand Bahama Port Authority |
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