Once again calling for change at the Grand Bahama Port Authority (GBPA), Prime Minister Philip Davis said yesterday the government has over the years done the work of the Port, and added that the government is going after it for monies owed to the Public Treasury.

"Grand Bahama lost nine percent of its GDP last year and is continuing to lose more," Davis said as he wrapped up debate on the 2023/2024 budget.

"Our position is clear: the Port Authority under its present structure is not realizing Freeport's enormous potential; the status quo is not working, and the people of Grand Bahama deserve better.

"It is important to note that section 1(5) of the Hawksbill Creek Agreement specifies that costs borne by the government for certain activities and services provided are to be reimbursed by the Grand Bahama Port Authority for amounts in excess of customs duties and emergency taxes collected.

"My government has begun to invoice the Port Authority for these reimbursable expenses, as calculated by an independent accountancy firm.

"To date, the Port Authority has not provided reimbursement in connection with any of these invoices."

Davis did not say how much money the GBPA owes the government.

Signed in 1955, between the government and Wallace Groves, who formed the GBPA, the Hawksbill Creek Agreement gave GBPA authority to establish a city and free-trade zone over 50,000 acres that would spur economic development on Grand Bahama.

Under the agreement, the Port Authority, which is jointly owned by the St. George and Hayward families, is obligated to provide infrastructure in Freeport. It is responsible for constructing and administering the Port area and to license businesses in exchange for various tax exemptions.

Davis said there has to be a serious "conversation in this country about the best way forward".

"I am of the belief that the GBPA needs a management and governance change in order to realize real growth and opportunities in Grand Bahama," he said.

"Over the years, it was the government that has been doing the work of the Port Authority. We have been attracting the investors. We have been investing in Grand Bahama.

"So, we have to have a conversation about the relevance of the Port. It may still be relevant.

"So, we are open to a range of different possibilities. And we are committed to consulting with the people of Grand Bahama and the licensees of Freeport to determine their outlook and views."

The prime minister first raised issue about the Port when he made his budget communication in May.

He said that it is time for decisive action on the future of the Port.

In response, the Port Authority stood behind its contribution to Grand Bahama's development over the past seven decades, saying any decisive action requires collaboration and partnership between the government and the Port in the best interests of Grand Bahamians.

"GBPA agrees that decisive action is required to continue to achieve the promise of the Hawksbill Creek Agreement. That decisive action should include extending the real property tax exemption to all licensees, eliminating the growing uncertainty surrounding Freeport's investment and business climate," it said.

The Port noted that Grand Bahama has struggled to find its footing in the aftermath of multiple hurricanes and the COVID-19 pandemic.

"The green shoots of recovery are emerging and our plans for the city - including more than $1.5 billion of new investment for the island - are well underway," the Port said.

But Progressive Liberal Party Chairman Fred Mitchell said the GBPA cannot take credit for those investments.

"The government brought those investments to Grand Bahama," he said.

"They abandoned the hotel, they abandoned the airport. That is the Grand Bahama Port Authority."

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