business@tribunemedia.net
WEDNESDAY, SEPTEMBER 8, 2021
$5.10
$5.19
$5.13
$5.24
Freeport ‘tax grab’ fear on exposed incentives By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN ex-Grand Bahama Chamber of Commerce president yesterday said it was “striking” that the major political parties have seemingly ignored a problem deterring “sensible investors” from Freeport. Kevin Seymour told Tribune Business that both existing and potential investors, and foreign and Bahamian-owned businesses, are all effectively “in limbo” due to the Government’s failure to enact legislation to replace the Grand Bahama (Port Area) Investment Incentives Act 2016 passed by its Christie
• Minnis Gov’t fails to give tax breaks legal security • Ex-GB Chamber chief says businesses ‘in limbo’ • ‘Striking’ issue not tackled in election manifestos administration predecessor (see letter on Page 2B). While that Act was repealed by the Minnis administration in
‘Water heater sales are lucrative on GB’ • Pelican Bay suffering same water issues as Lucayan • Island’s tourism ‘has no engine’ to drive destination • Almost five years since Memories’ post-storm close By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A GRAND Bahama hotel operator says “it’s a lucrative business to be in hot water heater sales” as his property grapples with the same salt water issues that have afflicted the nearby Grand Lucayan. Magnus Alnebeck, Pelican Bay’s general manager, told Tribune Business that the hotel has been “spending a lot of time, energy and money” on hot water heaters, showers maintenance, changing out equipment and other tasks due to the high salinity of the supply received from Grand Bahama Utility Company.
With Grand Lucayan guests still being transferred to Pelican Bay because of ongoing air conditioning (A/C) system problems, Mr Alnebeck said: “We’re having the same problems at Pelican Bay. We’re spending a lot of time, energy and money on maintenance and changing equipment, which is a lot more time consuming and expensive than it normally is. “That is before we start considering hot water heaters, showers, fixtures and furnitures because we’re going through them a lot more quicker than normal because of the salt water. It’s not just a hotel problem;
SEE PAGE 4
Overseas investment COVID bar removed By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank yesterday confirmed that Bahamians will be able to resume purchasing overseas securities and real estate from October 1 after seeing a sufficient uptick in tourism-related foreign currency inflows. John Rolle, the regulator’s governor, confirmed to Tribune Business in an e-mail that the rebounding economy and increasing external inflows had given it sufficient confidence to remove the COVID-19 related restrictions on the foreign currency market. These will have been imposed for almost 15 months since their introduction on May 4, 2020,
JOHN ROLLE as part of measures to conserve The Bahamas’ allimportant foreign currency reserves that protect the one:one peg with the US dollar. Mr Rolle said the relaxation had less to do with the
SEE PAGE 4
October 2017, shortly after it was elected to office, it has neglected to draft and enact a replacement that would ensure the continuation of key tax breaks for Grand
Bahama Port Authority (GBPA) licensees is still protected by law. These incentives include exemptions from business licence fees, real property tax, income tax and capital gains tax, and they have remained in effect for the last four years - but only because of the Government’s “good graces” or continued willingness to allow this. Until this is enshrined in statute law, Mr Seymour said Freeport’s business environment will continue to be plagued by uncertainty. And, facing a “bare” Public Treasury, a “capricious administration” voted into office on September 16 has the ability to potentially introduce some or all
KEVIN SEYMOUR
SEE PAGE 5
Bahamas needing ‘small miracle’ to avoid austerity • Ex-minister: No one has levelled with voters • Warns against ‘sugar coating’ fiscal challenge • $470m subsidies exceed $422m debt interest
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A FORMER finance minister yesterday warned that Bahamians must hope “a small miracle happens” if the country is to avoid harsh postCOVID austerity measures and low growth in coming years. James Smith, also an ex-Central Bank governor, told Tribune Business that this nation faces “enormous challenges” to place its fiscal and economic affairs back on a sustainable footing following the deficit and $10bn-plus debt blow-out produced
by the pandemic and Hurricane Dorian. Agreeing that none of the political parties competing for office on September 16 had fully levelled with the Bahamian people on the extent of the new and/or increased taxes and
SEE PAGE 4
JAMES SMITH.
‘Don’t put damper on a good thing’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN realtor says the Government should focus on collecting the estimated $600m in outstanding real property taxes rather than increase
rates, and warned: “Don’t put a damper on a good thing.” James Bernard, president of the newly-named Berkshire Hathaway HomeServices Bahamas Real Estate, told Tribune Business that the focus needed to be placed on
compliance and enforcement as there appeared to be no consequences for persons who failed to pay due tax liabilities. “I don’t think they should increase property tax rates,” he said. “It would put a damper on a good thing. What they should
do is collect the outstanding property taxes owed currently. A big problem is people not paying property tax, and there doesn’t seem to be any repercussions for it. They’d be better off pursuing what’s owed
SEE PAGE 5