This page contains a Flash digital edition of a book.
economy which has provided the island with one of the highest per capita GDP’s in the world. The most recent published government figures estimate GDP at US5.8 billion dollars (2007). The two sectors that dominate are international business and tourism which together ensure billions of dollars are annually earned for the island. Bermuda has long been known as a luxury tourist


position in Bermuda, not independence in itself. A similar situation exists with


Tourism. The BIC Commission’s investigations revealed that visitors to the island have little knowledge of Bermuda’s relationship with the U.K. It is fair to conclude that a change in Bermuda’s constitutional status would not have any impact on its attractiveness as a visitor destination.


notions and arguments in support of independence, a move in this direction will only be popular and assured if – from a practical standpoint the maintenance or advancement – Bermuda’s economic prosperity is not jeopardized.


The quest for security The security of a country’s borders is not a matter to be taken lightly. Upon independence, security both internal and external will move from being the responsibility of the British Government to the Bermuda Government. The British do not carry any of the expenditure responsibility for the internal or external security services which is fully provided for by the Bermuda Government.


destination and for decades this contributed to a growing successful economy. In more recent decades the international business sector, mostly insurance and a variety of financial services, has positioned the island as a leading offshore financial centre. This sector currently contributes the majority of islands’ foreign exchange earnings. As outlined in the BIC report, the international sector has repeatedly stated that specific qualities have made Bermuda attractive to their industry and it is these that will ensure their continued presence on the island. Some of these qualities are political and social stability, respect for the rule of law and human rights, clarity on tax and regulatory matters and an international legal system with the Privy Council as the final court of appeal. It would only be some dramatic change in the conditions outlined that would cause them to reconsider their


Questions are often asked


about whether independence would affect the stability of Bermuda’s currency. It is the definite view of the BIC report and others familiar with this issue that independence would not jepoardise the stability of the Bermuda dollar. It should be noted that the Bermuda Government negotiated with transition from Sterling to Dollar in the 1970’s without the assistance of the U.K. It will be Bermuda’s maintenance of its strong economic fundamentals, solid balance of payments, stable public sector spending, business sector confidence and a good credit standing in international markets that will preserve the strength of the Bermuda dollar. These positive qualities and others stated above being maintained will ensure Bermuda’s long-term economic stability need not be at risk with the island making the step to full sovereignty. Irrespective of any more idealistic


Bermuda is considered a low risk jurisdiction when it comes to external threats but drug trafficking, fisheries protection and terrorism remains an issue. An independent Bermuda would move quickly to provide the necessary enhancements for all threats to both the police and the regiment. Whatever international obligations currently exist or will be required to be adopted are currently within means of Bermuda to absorb if the country were to go independent. Bermuda’s proximity to North America and our relationship with CARICOM should provide any necessary strategic or military support if it was ever required. Bermuda will move quickly to sign bilateral and multilateral agreements for military cooperation and assistance with regional allies.


Our international interest Bermuda’s diplomatic


responsibilities is by far the most uncharted responsibility the island would be required to fulfill upon achieving full sovereignty. Unlike internal and external security, it is the one area that is not currently being fully funded to some degree by the local government. This is likely to require a whole new area


of expenditure in the government’s annual budget. The current constitutional arrangement stipulates that the British government (Governor) has responsibility for the foreign affairs of Bermuda (ironically the Bermuda taxpayer fully funds the budget of Government House). This situation has evolved considerably over the past 40 years of constitutional government. The opportunities to act internationally in the island’s own interest, with permission of the British government, have increased considerably. The 1986 Tax Convention Treaty, U.S. and Canadian baseland closures, negotiations with the OECD, and the recent Tax Information Exchange Agreements (TIEA) with a number of countries are just a few examples. Attention on Bermuda as an offshore center has seen an exponential increase in regulatory scrutiny from Washington D.C., European Union (EU) and super- national regulators such as the IMF. Recent statements from the new Obama Administration, U.S. Congressional leaders, the U.K. Treasury and other EU member states have heightened further concern. This has motivated the Bermuda government to take additional steps, setting up a representative office in London and is now considering another in Washington D.C. The current reality is that Bermuda, even as an overseas territory, is experiencing the pressures of an independent country, requiring the government to expend resources specifically for this purpose. If the island does not respond to this international pressure it could find its economic interest at risk. It should also be remembered that representing Bermuda abroad is nothing new to the island since this is a necessary feature to Bermuda’s tourism strategy. As a member of CARICOM this acknowledges that membership in international


The Parliamentarian | 2009: Issue One - Bermuda | 27


Shutterstock.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48