NASSAU, Bahamas — The Grand Bahama Port Authority (GBPA) yesterday fired back at Prime Minister Philip Brave Davis’ assertion that the government is subsidizing the Port Authority, arguing that it is “not in a competition with the government”, The Nassau Guardian reported on Thursday, August 24. In an article written by Travis Cartwright-Carroll.
“The government of The Bahamas is not subsidizing the GBPA,” the Port Authority said in a statement. “The GBPA, in fulfilling its industrial development, various regulatory and environmental oversights, and city maintenance mandate, is funded exclusively by its approximately 3,000 licensees.
“When adverse events such as hurricanes and the recent COVID pandemic cause a deficit, the shareholders of GBPA have always funded the deficit. The government of The Bahamas is not subsidizing the GBPA when providing healthcare, education, aviation, and assistance with tourism in Grand Bahama, as it is likewise obligated to do so for every other island in our country.
“While the GBPA has built schools, donated land for government projects, assisted with the hospital, and constructed the island’s airport, these were never a responsibility of the Grand Bahama Port Authority under the Hawksbill Creek Agreement but an act of a strategic partner. We acknowledge that the government has a vital role to play, as do we, to fulfill our respective mandates to work together for the betterment of our island.”
While visiting the island on Friday, Davis told reporters that the government has taken over the role of the GBPA.
“We in fact have taken over the role of the Port Authority and it’s not fair to the Bahamian people, as it were, subsidizing the Port Authority for what they should be doing,” he said. “It is clear to me that the interest of the owners does not truly align with the interest of the people of Grand Bahama and Freeport in particular. Until those align, we will have no growth.”
The prime minister previously said the government is doing the work of the Port Authority.
“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,” Davis said in the House of Assembly in June.
The GBPA said it does not want to engage in a “back and forth in the media” but is instead focused on the task at hand.
“Many exciting developments are currently in the works for Freeport and Grand Bahama, and the GBPA is playing a key role in working with investors to bring these projects to fruition,” it said.
“Examples already in the public domain include the new Cruise Port by Carnival Cruises, the Six Senses Resort development by Weller, and the expansion of the Grand Bahama Shipyard, to name a few. We are preparing to engage with all our stakeholders to discuss these and several other ambitious projects and the many dynamic opportunities they will create for Bahamians.
“GBPA reiterates its desire to work with the government of The Bahamas in the spirit of cooperation to resolve any issues and work together to create a bright future for Grand Bahama.”
This is the latest back and forth between the government and the GBPA.
In May, while delivering his budget communication, Davis said now is the time for decisive action on the GBPA.
“… In our view, the governance model of the Grand Bahama Port Authority must change, in order to realize the promise, growth and prosperity which we all desire,” Davis said.
“Additionally, the government of The Bahamas has serious concerns regarding the compliance of the GBPA and its related companies with the terms and conditions of the Hawksbill Creek Act, and its subsequent amendments. Previous administrations have made efforts to tackle the situation, but the issue is clearly systemic and fundamental. We believe the time has come for decisive action.”
He said a separate announcement on the GBPA would be made “in due course”. He has yet to make any detailed announcement.
The Hawksbill Creek Agreement, which was signed in 1955 between the government and Wallace Groves, who formed the GBPA, gave GBPA authority to establish a city and free-trade zone over 50,000 acres that would spur economic development on Grand Bahama.
See complete article in The Nassau Guardian at https://thenassauguardian.com/gbpa-refutes-pms-claim-its-being-subsidized-by-govt/
