A prominent Grand Bahama consultant has called on the government to extend tax incentives in Freeport to the rest of the island, and to use the Hawksbill Creek Agreement as a template for the development of other family islands.
Rather than having Freeport "conform" to what is happening in the rest of The Bahamas, the government should "exploit its diversity", Kevin D. Seymour told the Bahamas Association of Compliance Officers during a recent speech.
However, Seymour said that in order for Grand Bahama to attain "economic power house status" the government must not only extend incentives but place additional demands on the Grand Bahama Port Authority and the Grand Bahama Development Company (GB DEVCO).
These would include making their boards of directors "more representative" of the community they service, and allowing for regulatory powers to be transferred in the event of shareholder disputes or a failure to carry out undertakings which have been committed to.
Guardian Business understands that Seymour is currently one of a number of executives at the Grand Bahama Chamber of Commerce who are drafting a proposal to present to the government on how it should handle the question of tax incentives on the island as August 2015 approaches. On this date, certain tax incentives which benefit Freeport licensees are due to expire, creating great concern among certain business
stakeholders, who believe it could lead to a further decline in business activity on the island of around 52,000.
Speaking in what he said was his personal capacity, Seymour, a director of the GBCC and a former Pricewaterhouse Coopers partner, suggested that it would benefit the island and The Bahamas at large if the government not only extended the tax incentives that are set to expire in August 2015 but also allowed other parts of Grand Bahama to enjoy the same incentives.
"These settlements (to the east and west of Freeport) should also be incorporated into the Port Area, to create greater critical mass and economic efficiencies," he added.
"The resurgence of Grand Bahama as the country's industrial powerhouse will not only inure to the benefit of its key stakeholders, business owners and residents, but to the nation at large," he said.
Seymour said that the Hawksbill Creek Agreement has created a competitive advantage for Grand Bahama, by tying the government's desire for large scale development to fiscal incentives.
However, in order to allow Grand Bahama to compete globally, Seymour pointed to accession to the WTO, upgrading the College of the Bahamas to university status, increasing competition in the island's energy sector and facilitating easier immigration of high net worth and skilled workers would be key to this.
"It is vital that prospective investors, be they local or foreign, see Grand Bahama as being an investor friendly, safe, moderately regulated business environment, with a skilled, competent and adaptable work force, where they are able to conduct business at a reasonable cost," said Seymour.
In addition, Seymour suggested that more credit and training for small businesses and the "resurrection" of plans for a sea/air business centre and foreign trade zone would push Grand Bahama towards greater competitiveness.
Seymour also lamented that the relationship between the GBPA and the government appears to be at an "all time low" and said that for there to be increased investor confidence great collaboration is needed between the government and the GBPA with respect to planning and development.
The consultant blamed Grand Bahama's decline over the years to a combination of natural, economic, and political factors.
Beyond the slew of hurricanes to which the island has been subjected, these included "consistent meddling and overreach" by the central government that has seen the government "dilute" the tax concessions available to licensees.
"I should add that the above actions by the Government and its agencies over time, coupled with the inaction of the GBPA in vigorously defending its licensees, has eroded investor confidence and in a few instance have even caused investors to pack up and leave," he added.
He also made call for the public disclosure of certain information, including taxes collected by the government from Grand Bahama residents, the GBPA and its licensees; costs incurred by the government in providing civil services to Grand Bahama; who GBPA licensees are and costs incurred by the GBPA in serving them; and a disclosure of the criteria used to determine license fees for licensees.

Click here to read more at The Nassau Guardian