Communication by
Rt. Hon. Hubert A. Ingraham
On National Investment Policy and
Investment Promotional Materials
Rt. Hon. Hubert A. Ingraham
On National Investment Policy and
Investment Promotional Materials
Mr. Speaker,
I am pleased to table for the information of Honourable Members a copy of the new Bahamas Promotional Brochure “The Bahamas: A Paradise for Many Reasons” together with sector information flyers on the tourism and hotel sector, international financial services and Freeport, Grand Bahama.
Members will recall that the brochure was released to the Bahamian media immediately prior to my recent attendance at the IDB Annual Meetings in Calgary, Canada and my subsequent participation in a Bahamas trade and investment mission in Calgary and Toronto.
I advise that the sector information flyers have been translated into the Chinese languages of Mandarin and Cantonese, as well as in Spanish. Translation to Portuguese and French are contemplated in the near future.
Mr. Speaker,
This updated version of the brochure, first published by my government in the 1990s, takes into account developments and changes in the investment and business climate of The Bahamas over the last 15 years or so.
In particular, I draw Honourable Members attention to changes to the National Investment Policy which are incorporated in the brochure. Our National Investment Policy, as Honourable Members are aware, is an evolved policy, some aspects of which date back to the 1960s.
It is neither an FNM nor a PLP policy, and is intended to be a national policy to guide policies of Government, which governments can change when they see fit.
The policies were first articulated and published in a formal way in 1993 as my Government sought to bring increased certainty and transparency to our business and investment environment, thereby enhancing the country’s attractiveness to the foreign direct investment required to foster economic growth.
It would be most appreciated if Honourable Members and the public become familiar with the terms of the Investment Policy of The Bahamas. Much misinformation is communicated from time to time about the investment policies of The Bahamas.
The amendments to the National Investment Policy include:
1. The minimum dollar requirement for direct foreign investment in a commercial undertaking has been increased from $250,000 to $500,000.
2. The minimum required value of a residence acquired by an foreign person for the purpose of seeking accelerated consideration of permanent resident status has been increased from $500,000 to $1.5 million. Honourable Members would recall that this figure had previously been increased from $250,000 to $500,000.
This does not mean that someone cannot obtain permanent residency in The Bahamas if they purchase a residence for a value of less than $1.5 million. What it does mean, if you are purchasing one (a residence) for $1.5 million or more, you will get speedy consideration of that application by the Government agency – i.e., you would be pulled out from the pile and processed speedily. In fact, provided you have all of the required documentation, it is expected that you would be able to have a response of a “yay” or “nay” within 21 days of the completed application being in the hands of the Department of Immigration. We seek to encourage persons who are purchasing or expending that sort of money plus, for a residence in The Bahamas.
There is no requirement in terms of our policy for persons coming to The Bahamas to attend a Directors Meeting of a company incorporated in The Bahamas to obtain a work permit. We want to encourage and facilitate such persons in entry into The Bahamas; we want to facilitate them and accommodate them. And we want to get out of the business of nickel-and-diming them.
While we have a homeowner’s card which permits someone with a residence in The Bahamas to enter as often as they like during the course of the 12 month period in respect of which the card is valid, you need not have a homeowner’s card to be facilitated in coming to The Bahamas.
Canadians and Americans as examples are able to come to The Bahamas if they have a residence in The Bahamas and stay for up to eight months. And so Immigration Officers in places such as Eleuthera, Exuma and Long Island who have been giving such people 30 days instead of the length of time they are required to be in The Bahamas, ought to discontinue doing so. It is not the intention of the government of The Bahamas to force a homeowner to obtain a homeowner’s card – it is something they can access if they choose, but they do not have to access it.
We have many residents – Canadians and Americans – who own homes in the Family Islands and elsewhere, who come down for many months out of the year and who spend money in our economy. And I am tired of getting complaints about how they are being hassled at various places in terms of the length of time they can stay in the country.
3. The restriction prohibiting international investments in restaurants and or entertainment facilities (e.g. theme parks) unless a part of a hotel resort, has been eliminated.
As you will know Mr. Speaker, the amendments made to the Hotel Encouragement Act for restaurants and other tourist related businesses in areas frequented by tourists but not within a hotel, have been in effect now for probably two years.
The revised Investment Policy also makes provision that approved investors in major development projects which investment creates employment and business opportunities for Bahamian citizens and who own or acquire a residence in The Bahamas, may be granted Permanent Residency status with the right to work in their own business.
Examples of this abound, Mr. Speaker: Butch Stewart who owns Sandals, John Issa who owns Breezes or the man who owns Robin Hood food store, are permanent residents with the right to work in their own businesses in The Bahamas. And that is an area that we say was reserved for Bahamians - but he has the right to work.
Permanent Residents continue to be required to register all real property acquisitions with the Investments Board. The fact that you are required to register it causes us to be in a position to know what non-Bahamian citizens own in our economy in terms of real estate, and we regard that as critical and vital national data to have.
As regards the Investment Policy concerning the registration of land acquisition by international persons generally, Members would recall that in 2009, the International Persons Landholding Act was amended to provide that all international persons only need register acquisitions of owner-occupied property of two acres and under - reduced from five acres.
You would recall Mr. Speaker, that back in 1993, we passed a law which remained in effect until 2009 that permitted a foreign person to purchase property in The Bahamas for the purpose of constructing a residence/house of five acres or less.
That served us well for 15 years or more. There were concerns expressed by a number of Bahamians and others, and we therefore reduced the acreage to two instead of five. Now such persons are still required to provide us with information about the source of their funding, their character certificates and the like, because notwithstanding that they are required to register it, we do want to know who is in The Bahamas, who owns property in The Bahamas and if the question arises in the future, the Government wants to be in a position to be able to respond to those questions.
And so while some people find getting a police certificate, getting a letter of reference from the bank and other such information offensive and a nuisance, it is not a requirement that we can see our way clear to remove. The Government does not grant permission for you to do so, but it requires this additional information in order for you to register your acquisition in The Bahamas.
If you are acquiring property of more than two acres, then you need a permit from the Government. You have to apply and the Investment Board reserves the right to say yes or no to any such application.
Mr. Speaker:
Every effort has been made to ensure that the Investment Policy is expressed in as apolitical way as possible taking into account the reality that our investment policies generally reflect the time honoured acceptance that the Bahamian economy is primarily driven by the tourism and financial services sectors, areas overwhelmingly involving international participation and investment.
Further, the policy reflects successive government’s dedication to promoting and incentivizing investment and development in light manufacturing and industry primarily in Grand Bahama, also with international participation.
And, finally, the Policy reflects the Government’s interest in promoting investment in the agricultural and marine resources sectors.
I invite Honourable Members to acquaint themselves with the policy, and with the booklet.
Fifteen years ago when we produced this book it was printed outside The Bahamas. This book was now printed by the Government Printing Department.
Finally Mr. Speaker, the policy is not a policy in concrete, it is a policy that continues to evolve, and the extent to which Members on either side have suggestions about amendments to the policy, they are invited to do so.
The next investment promotional trip of The Bahamas will be sometime this summer in Brazil, which I propose to lead.
18th April, 2011
bahamas.gov.bs
