Uncertainty

Twenty months; 87 weeks; 608 days – a long time to some, but for those in the Abacos and Grand Bahama in the aftermath of Hurricane Dorian, it has not been nearly enough time to rebuild and restore lives and livelihoods.

Grand Bahama and Abaco are the country’s second and third largest economic centers respectively.

Bringing both islands back to full restoration after the destruction wrought in September 2019 is critical to rebuilding The Bahamas’ gross domestic product which was weakened by the COVID-19 pandemic, and to reestablishing a quality of community life on both islands necessary for economic stability.

Housing shortages on Abaco post-Dorian are a hinderance to commercial restoration, and a loss of critical mass on Grand Bahama once thousands evacuated the island, no doubt factors in to results of a 2020 Grand Bahama Chamber of Commerce survey which found that 51.1 percent of businesses were doubtful they could remain open for the ensuing three to six months.

Central to economic growth is certainty.

In the context of disaster recovery, that certainty not only rests in the availability and stable delivery of utilities and other essential services, but in the foreknowledge of investment and tax incentives that facilitate reconstruction and commercial redevelopment.

While announcing the establishment of the Ministry of Disaster Preparedness, Management and Reconstruction and the designation of a Special Economic Recovery Zone (SERZ) back in September 2019, Prime Minister Dr. Hubert Minnis said, “to facilitate the required social and economic recovery on the islands impacted by Dorian, I am pleased to announce that East Grand Bahama, Abaco, and the Abaco Cays, will be designated as special economic recovery zones for an initial period of three years”.

The announcement garnered immediate backlash from Grand Bahama residents and business owners because of the prime minister’s glaring omission of the island’s commercial center of Freeport, and of west Grand Bahama which were both heavily impacted by Dorian.

The incredible omission was later adjusted, but when Minnis made the announcement of a three-year initial SERZ designation, residents on both islands naturally took that to mean that tax breaks under the designation would last for an uninterrupted period of three years in the first instance.

However, SERZ orders have been issued in six-month cycles, with residents not knowing from cycle to cycle whether extensions thereto would be granted.

This has caused Chamber of Commerce officials on both islands to make continuous requests for extensions as the end of an order period approaches, in what has been a back and forth of uncertainty that does not augur well for restoration in the aftermath of a disaster.

When government extended its SERZ order for a new six-month period ending June 30 of this year, it unexpectedly expired tax breaks for items including vehicles, beds and bedding, farming and fishing equipment, replacement boats and boat engines, replacement golf carts (which are a main form of transport on the cays), tents, generators, manufacturing equipment, solar panels and protective and safety gear.

Given the magnitude of loss suffered by farmers and fishermen, and the fact that many are still living in tents or modular housing, some residents viewed as tone deaf, the removal of tax breaks on these and other items.

They also questioned why tax breaks on beds and bedding were removed, though retained for other household furnishings.

On June 30, value-added tax (VAT) and import tax breaks will expire on household building materials, appliances and furnishings.

VAT exemptions on construction services will also expire, as will VAT exemptions on the local sale of fuel, and a VAT discount on the sale of real property for transactions valued up to $500,000.

Abaconians and Grand Bahamians speak

Perspective conducted a Facebook survey this past weekend asking Abaco and Grand Bahama residents whether they want the SERZ order to be extended once again and why.

Well over 100 residents responded within hours of the survey’s posting, and all respondents were adamant that the level of need on both islands requires that Dorian tax breaks be both extended, and in some cases, reinstituted.

Some of those responses are as follows:

Jeremy Sweeting, local government chief councillor for the Abaco districts of Hope Town, Man-O-War Cay, Great Guana Cay, Tilloo Cay, Scotland Cay and Lubber’s Quarters: “The exemptions under the SERZ order need to continue beyond 30 June and continue for another year at least. Abaco’s strong economy will rebound, but to build our communities back to the destinations that visitors have loved and enjoyed for many many years, it will take more time. We need more time to rebuild our resorts and rental homes and our own homes. People are still living in tents. I can appreciate the government is under fiscal stress and needs as much revenue as possible due to the double whammy of Dorian and COVID-19. However, Abaco must get back on our feet first, and then we can continue to be the great contributor to the treasury that we always have been.”

Brenton Russell: “After [Hurricane] Floyd we had it for three years to help rebuild which was a big help, but Dorian was a monster compared to Floyd, and now [we’re] also dealing with a pandemic.”

Patrice Buzzi: “Many people lost everything including their jobs, and therefore had absolutely no means except by donations to try and feed their families while trying to rebuild.”

Mary Missick: “Yes, they should be extended because two years is not enough to recover/rebuild what took a lifetime to obtain.”

Jo Morasco: “The pandemic has made it impossible for many to rebuild and purchase supplies that are needed. At this time, many building supplies are unavailable or have escalated prices. If this island is to rebuild, the people need all necessary help available.”

Carmel Churchill: “Many persons that were affected have not been able to rebuild as yet due to finances. The exemption should be applied to the property that was affected. It can be tied to a clause indicating that you should do it within three to five years.”

Tip Burrows : “They also need to add back the items they took off the exempt list as of December 31. Add those back, and extend at least a year…VAT and duties are killing us since January, and after June 30 it will be even worse. This is not the way to help people, never mind restart the economy.”

Shavad Oh: “Although two years may seem like a long time, a lot of people on the islands are still unemployed as a result of the storm [and] pandemic, so the process of rebuilding for them especially is taking a much longer time.”

Mindy Albury: “There really isn’t a need for an explanation if you live in either of those places. And if you don’t live in Abaco or Grand Bahama, just talk to someone who does or look at the pictures and videos of what has been done. Yes, a lot has been done, but there is still a lot more that needs to be done.”

Catherine Pennekamp: “You cannot increase costs when people have been unemployed with little to no income. The pandemic has forced a freeze on progress all over the world. To not allow these small islands and their people time to recover is cruel. Bringing back full duty and VAT to struggling communities only shows the people that government is detached from these island chains, caring little about the residents.”

Ali Boo: “Been focused on the pandemic with little to no income and house still in shambles…taking it one day at a time. We need an extension beyond this pandemic.”

Corrinne Cornish: “A lot of houses haven’t been touched since Dorian. Not everyone had insurance. Persons want to rebuild, but it takes longer when starting from scratch. Some are rebuilding slowly out of pocket. They need more time and should be able to benefit just like others who were able to rebuild quickly.”

Brittney Bain: “I have relocated from Grand Bahama to another island because of Dorian. I bought a car under the exemption order, and now in order for me to bring my car to this new island I have to pay the duty and the VAT.”

Kali Marie: “Many are still displaced while still having to pay to lease accommodations elsewhere. This makes it even more difficult to rebuild, notwithstanding during a health pandemic.”

Bonnie Hall: “People with mortgages and who received insurance payments can’t get their money from the banks to finish the repairs. The government needs to extend the SERZ, and step in on the banking situation.”

Heather Prosa: “The government knows how bad Abaco needs the extension. And many people can’t rebuild or even move back due to lack of housing.”

Wendy Sims: “Government gave us three years after Floyd and that was a drop in the bucket compared to Dorian. And then COVID practically ground an already slow process to a halt. Give us a break please!”

Karan Mader: “The pandemic impacted recovery immensely. Many lost their jobs, many are underemployed, some [are] still dealing with home insurance challenges, and many still waiting on the Disaster Reconstruction Authority to assist them.”

Deb Kitchener: “Building must continue in Abaco and they are nowhere close to restoring what once was. The pandemic has slowed the supply chain and limited work force.”

Chana Albury: “Some people still aren’t even in their homes yet. How can they rebuild when they will soon have to pay duty and VAT on already expensive building products? And most people including me, still can’t afford a car!”

Brigitte Carey: “Even without COVID, you can’t expect people who lost everything they owned to be back to normal in such a short time. We had to leave our beloved Abaco and relocate to Freeport, find another place to live, and rebuild our entire lives. Dorian was a life-changing storm for so many of us, especially older folks. We haven’t even had time or money to replace the clothing we lost, let alone furniture and other household items.”

Linda Knowles: “Some of us have not even begun to rebuild our homes. Material [cost] has skyrocketed, windows and doors are six months out. I pray that government can see this and extends the relief for us.”

Brenda Sands: “The prime minister promised three years no VAT, no duty. Abaco still needs that.”

Bonnie Albury: “The people have been through so much devastation and still haven’t recovered from it all. We are still struggling in so many ways. Why can’t the government open their eyes and see this? Have some compassion please!”

Raquel Smith: “A lot of people’s repairs [are] still incomplete because they have not gone back to work due to [the] emergency order, and these employers are also using this emergency order to hold employees hostage and not pay them their severance.”

Rosalie Roberts: “People here in Abaco are still living in tents. At first it was said that it would be for three years. We need that time and more. And they need to take the VAT back off of groceries as soon as possible.”

Vidalia Knowles: “Most have barely begun to rebuild.”

Rhonda Albury: “They should give us the three years they had initially promised. It should not end until at least September 2022. People are just starting to get on their feet good, and they want to pull the mat out from under us.”

Janet Wedgewood: “Many people have not been able to return home yet and start rebuilding.”

Chris Stefan: Out of the past year, [for] at least five months all the construction materials stores were closed. Plus, the lockdown had a big impact on the rebuilding process. So we had the exemption but no way to use it. And for those people who [are] gonna say that we [are] supposed to plan ahead, when you [do] have the time you lack the money. When you had the money and time, you couldn’t buy nothing. And when you bought the stuff, and had the time and money, [you] still couldn’t find a crew to do it, [because] everyone had delayed jobs.”

Marina Cash: “Bahamians are still unable to find contractors or carpenters to finish their homes. Materials are not readily available on islands like Hope Town [and other] neighboring cays. Many are still fighting with insurance companies and banks while still paying mortgages.”

Dana Jones: “Anything to help these islands get back on their feet faster, the better. The pandemic slowed a lot of progress, and hurricane season is basically here again and there is still a lot to be done for people to feel safe and secure. At this point, these islands won’t even survive with a Category 1 from all the debris still all around.”

Daniel Mackey: “It should be for another year. A lot of people are still living in tents and igloos here in Abaco, and it’s not like [they] are not trying to build back. It’s just hard with little to no help from government.”

Anissa Shepherd: “A lot of persons on Grand Bahama are just trying to survive, and this not only goes for the persons in the eastern part of the island that sustained majority of the damage; it goes for the entire island.”

Prescott Gay: “Many taxi drivers, tour companies, etc. have been out of business for pretty much two years and counting. When significant tourist numbers return and these folks are able to get back to work, paying any back fees for licenses (driver’s, vehicle, etc.) is going to be a burden that may well determine the future success of those ventures. Waivers will be needed for the eligible.”

Tammy Sawyer: “Some of us are lucky to have a job to help to get our houses back to a livable stage, but there [are] still a lot that do not have jobs. How can we replace what we had in such little time with the high demand and prices, without help of the exemptions?”

Ajay Nesbitt: “Extend the recovery plan for three years, and if in three years things aren’t back to normal, then extend it again.”

Charles A. Carey: “Less than 59 percent of the homes of locals have been repaired. COVID complicated the situation. The early deadline hurts people who don’t have ready cash.”

Rodger Davis; “After the worst and most powerful hurricane known to mankind destroyed two major islands, you do not after just a year pick up and move on financially, after losing a lifetime’s worth of goods.”

A Grand Bahama resident who wished not to be named added, “Another issue is that when we put in for assistance from the National Emergency Management Agency for the SERZ exemption, the form now has to be signed off on in Nassau. When it first began, it used to be signed off here in Freeport.

“This new process is now taking about three weeks. Recently, a few [people] had their stuff sitting in customs for two to three weeks, because their forms had not been returned from Nassau yet.”

The post Uncertainty appeared first on The Nassau Guardian.

source https://thenassauguardian.com/uncertainty/