In order to overcome our decline in economic activity, we need to take some dramatic steps to prevent this continuing decline. This decline has led to the gradual deterioration in the standard of living for all Bermudians and is accompanied by more and more family and civil dislocation.

Following is an outline of some of the problems we face:-

1) A declining GDP (value of goods and services in our economy) between 2008-2013 of approximately 15%.

2) A declining birth rate of Bermudians. The birth rate in 2012 was approximately 500. Assuming that of those born in one year the gender division is 50% female and 50% male, this would represent 250 females at the child-bearing rate of 1.5 per female. The next generation would produce no more than 375 births per annum. If this trend continues, our Bermudian population will decline and become far too small to sustain Bermuda as we know it.

3) Debt being serviced by continued increases of borrowed funds.

4) Reduced demand for residential and commercial properties that sit empty.

5) A rapidly ageing retiring population and a shrinking workforce means there is insufficient support to service our senior citizens, pay off our debts and maintain ordinary services and unforeseen expenses.

6) Financial institutions are not inclined to provide loans if there is no growth as there would be no means of paying off the loans. Thus we will experience tremendous hardship until there is a resurgence in economic activity. We will be in a worse position because we will be unable to pay for what we need, both in the private and public sectors.

7) With a continued decline in our economic activity, our public debt will increase and our G.D.P. will decrease. We will then run the risk of a further downgrade by the Rating Agencies on our Bermuda Government debt, which will result in a downgrade of the private sector assets. This ultimately will lead to a higher cost of borrowing when our ability to pay is shrinking.

8) We need to reduce our debt by creating more economic activity. If we keep piling up debt, we could find ourselves like most of the Caribbean, Greece, Ireland, etc, having to borrow from the International Monetary Fund (IMF), the lender of last resort. We should attempt to avoid borrowing from any international organisation and/or the British Government because access to these funds come with drastic measures that lead to unpleasant social and economic consequences.

9) The issuance of more permanent residential permits is of paramount importance to our economy because it will allow families of guest workers to reside in Bermuda and in doing so, they will create employment, increase government revenue as well as private sector revenue by way of sale of goods and services. As it now stands, many of our guest workers live in congested living accommodations and except for basic necessities, send most of their earnings home. We end up as a country not fully benefiting from our guest workers and economic activity that does not:-

a) Add to the G.D.P.

b) Add to the pensions and social insurance pools.

c) Support services and infrastructure

d) Provide the normal revenue that Government and the private sector would ordinarily receive.

The Global Economic Conditions have and are changing at a rapid rate. We should take note of some of these changes:

a) Rapid advances in technology.

b) More foreign workers are now able to stay in their own countries and enjoy economic activity that they previously had to wander abroad to find.

c) Global and domestic regulations place a greater burden on those companies that are in any way seen to be avoiding their contribution to their respective tax jurisdictions.

d) A virtual world moves information, not people.

We must make some fundamental changes which will seem at first to be unorthodox and maybe they are, but by doing nothing, we will be forced to be told what to do by those who control our debt both in the private and public sector.

This is now the time for action. Procrastination will rob us of the opportunity to act on our own.

HERE BELOW ARE A FEW SUGGESTIONS:

Finance

* Remove the 60/40 ownership of Bermuda businesses, NOT real estate. Allow public utilities to own real estate for the purpose of their business only.

* Expand the City limits of the City of Hamilton.

* Install a tram transport system throughout the expanded City of Hamilton.

* Redefining Hamilton as a more desirable destination by developing the Hamilton Waterfront as many other cities have done, e.g., Sydney, Monte Carlo, Singapore, Cape Town, Baltimore and many other cities, to name but a few.

* In order to enhance the development of the economic activity we need to increase and diversify the opportunity for professional service providers to have an independent presence in Bermuda represented by their human resources.

* Encourage more City residential development, particularly high rise condominiums, which will accommodate future population growth.

* Encourage economic zone development in Morgans Point, City of Hamilton, South Side and Dockyard. Provision should be made so that foreign nationals can own and develop in these economic zones with concessions being given for five (5) years. No land tax, payroll tax, hotel occupancy tax and import duty relief.

Immigration

* Increase application grants to P.R.C. especially those who have made or who have resided in Bermuda for a reasonable period of time.

* When granting P.R.C. to applicants or existing grantees, spouses should automatically be given residency status and the right to work. Children should be given a right of residency and the right to work up to adulthood or school leaving age provided they are in custody of the P.R.C. holder.

* Status should be granted sparingly to long-time residents or long-time P.R.C. holders who have made a significant contribution to Bermuda. This should be done on an annual basis, say approximately 25 to 30.

* Work permit holders will be allowed to bring their spouses and a maximum of two children and more if permitted by the Minister.

* For a three-year period remove licencing fees on P.R.C. real estate purchases. Reduce A.R.V. levels on houses that P.R.C.s can purchase. Allow P.R.C.s to purchase condos at any A.R.V. level.

Discussions we may have but ultimately decisions will have to be made.