In a press statement Thursday, Free National Movement leader Senator Tommy Turnquest noted that the agreement signed between the former administration and the Kerzner group was given to the opposition, the media and/or tabled in parliament for public scrutiny.
On Monday, Prime Minister Perry Christie and Butch Kerzner, CEO of Kerzner International, signed an agreement to boost the Atlantis Phase III project to $1 billion from $600 million. Coincidentally, Monday night the FNM staged a mass rally at the R.M. Bailey Park, where Sen. Turnquest accused the government of giving the Kerzner group more concessions than the former government.
On the radio talk show, Immediate Response, the next day, Mr Christie rebutted Mr Turnquest’s claim with numerical facts, showing that his government gave less than half the concessions given by the FNM.
The Kerzner group, when it entered into negotiations with The Bahamas under the former administration, invested $250 million, with $124 million in present value tax credit, amounting in 49.4 percent of the investment concessions in 1995.
During Phase II in 1997, Mr Christie said the investment was $460 million. The value of the tax concessions was $151 million, amounting to 32.9 per cent of the value of the investment.
“When we moved to $600 million (in the) proposed third phase with the Kerzner group, the Progressive Liberal Party had been in Opposition critical of the amount of concessions,” he explained to radio listeners, “Even though I would say now that when a group comes into this country it is wise to give them concessions. And in retrospect, I’m not going to argue that point anymore. I’m just going to accept it and move on, but when it came to my Government and the $600 million investment, the concessions amounted to $80 million or 13.3 per cent in 2003. When the Kerzner group agreed to go to $1 billion, we agreed on concessions valued at $148 million and that came at a percentage of 14.8.”
“Once again, the prime minister has branded the FNM’s statements on important national matter as ‘silly,’ a term he seems to use to describe any responsible citizens, who dares to criticize him or his erring Government, no matter how constructive the criticism,” Sen. Turnquest said in the press statement.
This, Sen. Turnquest pointed out, could only prove that Mr Christie does not understand the concessions or the Heads of Agreement his Government signed last year.
Moreover, he accused the Government of “dilly-dallying,” which dragged the start of the Phase III project. However, he said, “Unlike the PLP in opposition, the FNM does not oppose the concessions and exemptions now granted to Kerzner International.”
Defending the former administration, Sen. Turnquest explained that it “agreed to grant Customs duty concessions to Kerzner International on all importation of construction materials” for the 1,200 new and additional hotel rooms, furnishings and equipment required to outfit the facility, in accordance with the Hotels Encouragement Act. He noted that in 2003 the now government did the same thing.
Additionally, the FNM government also agreed to the grant of Stamp Tax exemption for the imports required for Phase II.
“The leader said that, at the time, the PLP criticized the FNM government and accused the Government of granting excessive concessions to the development, Sen. Turnquest said, adding, “Indeed, in a 1996 letter addressed to Sol Kerzner…. the PLP warned Mr Kerzner that should the PLP be returned to office in 1997 or 2002, that government would be compelled to re-negotiate the terms of the agreement, which the PLP termed so generous as to ‘verge on indecency.'”
The PLP, the FNM leader continued, have announced, rather than re-negotiate and reduce concessions granted by the former administration, that it is extending the same concessions to the Kerzner group for the Phase III expansion project.
“The PLP Government cannot deny that it has agreed to extend the same Customs and Stamp tax exemptions to Phase III as was awarded to Phase II concessions, termed ‘indecent in 1996. It does not matter what stories the prime minister attempts to spin. Facts are stubborn things,” said Sen. Turnquest, who added, “The facts support our assertions. By some strange mathematical formulation, however, the PLP suggests that the dollar value of the exemptions it granted to Kerzner, on a higher importation bill, will miraculously by for a smaller amount.”
If Mr Christie stands by his statements on the radio show that his Government is “building on the foundation set by the FNM,” then he must “acknowledge the correctness of the FNM government’s action in granting the concessions necessary for the economic wonder of Atlantis to take place,” said Sen. Turnquest.
He requested that Mr Christie “accept responsibility for the continuation and extension of those concessions to Kerzner International in the 2003 and 2004 agreements signed by the Government, and quit the irresponsible double speak aimed at disguising the truth from the Bahamian people.”
Khashan Poitier, The Nassau Guardian
