Facts - not scare tactics

October 22, 2004

Dear Sir,

I refer to to two letters appearing in your column in today's paper, one entitled, “It's all in the numbers”, authored by Vox Orientalis and the other entitled, “We need a referendum”, authored by Michael G. Marsh.

While in principle I agree with the authors that any move toward Independence should be by way of a referendum, I do not think a simple one-question referendum will suffice on such an important topic. If a referendum is used maybe it should be used in conjunction with a General Election. This way a consensus on whether or not Bermuda should seek Independence can be ascertained and the political parties can have as part of their election platform how they would govern an independent Bermuda or in the event of a resounding No from the referendum how they will govern Bermuda on a status quo basis.

Rightly or wrongly, the only reason the last referendum failed was because the leader of the PLP at the time, Mr. Frederick Wade, asked PLP supporters to abstain from participating in the referendum because the PLP believed that any vote regarding Independence should be done by way of a General Election. So if my idea is chosen, the entire electorate would have no choice but to cast a vote either for or against Independence, unless persons choose not to vote in a General Election, which I very much doubt will be the case. There would than no longer be an issue of whether or not Bermuda should move toward Independence or remain as is, the true majority will decide.

Vox Orientalis asks two specific questions and offers a challenge to name any former British Caribbean territory, which is doing better under Independence.

1) How would Independence benefit the average working class Bermudian?

2) How much would Independence cost the average working class Bermudian?

Independence for Bermuda would have very little real impact on the average working class Bermudian or any other Bermudian for that matter. Bermuda is a self-governing territory and the UK has no real input on the internal day-to-day affairs of the country. Under our Constitution, Bermuda is deemed to be a dependent territory because Great Britain has responsibility for internal and external security and for external affairs.

Internal security may be the responsibility of Great Britain but clearly we operate this on our own and although it is Great Britain responsibility we pay the costs. Remember the riots in the 70s? While the UK sent troops to assist in ending the riots, we were issued a bill to cover the costs of these troops and their efforts. External security really is not a big issue because due to our proximity to the US and our strategic location in the Atlantic Ocean the US would take immediate action to thwart any attack on Bermuda.

With regard to external affairs, this would constitute negotiations with any outside agency, be it a country or organisation, including airlines. Although Great Britain have this responsibility, as far as I am aware our Government can negotiate with whom ever it wishes but the final sign-off comes from Great Britain. On many occasions if it does not work to the benefit or if it works to the detriment of the UK Government it is not approved, even though it will be beneficial to Bermuda and is residents.

As far as costs to the average working class Bermudian, that is difficult to answer except to say how much do you want to pay? Do we need to have consulates all over the world? My thought is that we do not. We can negotiate an agreement with either the UK government our some other government. As far as Vox Orientalis's challenge to name a former British Caribbean territory that is better off under Independence, that is easy, the Commonwealth of the Bahamas. There is also Barbados. Evidence can be provided, if necessary. Please do not get into any discussions on Jamaica because Jamaica's economic problems have nothing at all to do with Independence.

To address Michael G. Marsh and his concerns over the right Bermudians have to live and work in the European bloc, he should know that there are many persons from former British territories that live and work in the European bloc. Many, if not most of the attorneys within the Caribbean region, attended law school in the UK and many did their pupilage with UK law firms. From what I have seen many were called to the bar in the UK before being called in their home countries. As far as pre-clearance, I believe Mr. Marsh would find that pre-clearance has more to do with the quality and stability of a government more so than a country's state of dependence. Why is travelling to the US without a visa a big issue? Bahamians, as an example do the same thing and the Bahamas is an independent nation. Visas are not very hard to get provided you have a clean criminal record. When going on a cruise a few years ago I obtained a US Visa, no big deal.

Why will Bermuda becoming an Independent nation cause international business to leave when they are in Bermuda because of the economic and political stability? It is the same reason that there is an international business sector in places like the Bahamas and Barbados.

With regard to Mr. Marsh's fears of a terrorist attack on Bermuda, I think it more likely that a Bermudian would be involved in a terrorist attack in the US, unfortunately this has already happened, than he/she would in Bermuda. What does having a Navy, Air Force and Coast Guard have to do with preventing a terrorist attack? The US allegedly has the strongest of these and that did not prevent terrorists attacks.

With regard to foreign corporations pulling out of Bermuda, Mr. Marsh, have you not been listening to or reading about John Kerry, the Democratic Presidential candidate, on the topic of Bermuda? His goal is to shut down the likes of the Bermuda market and other “tax havens” and repatriate the lost tax dollars. This is his goal whether the territory is a British Dependent Territory or not.

For what reason, may I ask, would the Bermuda dollar be devalued? Currencies are generally devalued as a result of hyperinflation and/or to make it cheaper for foreign investors and to attract foreign investment in an unstable economy. If you are referring to Jamaica, the devaluation of the Jamaican dollar was due to its reliance on the sale of bauxite and the bottom fell out of the global market, creating a 25 percent unemployment rate. This coupled with double digit inflation due to rapidly rising oil prices, Jamaica was an importer of oil, led to stagflation. In order to combat this and attract foreign investment the Seaga Government devalued the currency. The devaluation was a government decision, it was not a decision that was forced on Jamaica and it had nothing whatsoever to do with Independence. There are many Internet sites that one can review to understand what happened in Jamaica. All one needs to do is take the time to research.

Foreign exchange controls are generally in place in an effort to protect foreign currency reserves and generally this is done in instances where the foreign currency reserves of the country are significantly lower than M1 money supply (notes and coins in circulation). Most countries with exchange controls in place on have controls on its capital account and not on its current account. Even though there may be controls on the capital account its does not mean that money cannot be exchanged after approval by the local central bank. The foreign currencies reserves of Bermuda are more than twice M1 money supply. With regard to income tax, this does not necessarily have to come into the equation unless it is deemed that rather than having a consumption-based tax, which is a regressive tax structure, i.e. the less you earn the greater your percentage of taxation, a government feels that the population at large would be better served under a progressive tax structure, where the more you earn the more you pay.

Mr. Marsh suggests that maybe one-day Independence may make sense but not right now. Perhaps Mr. Marsh can tell us under what circumstances he would approve of Bermuda becoming an independent nation.

Again, I ask those that are opposed to Independence to oppose it using factual information not scare tactics, which are what ifs.

GUILDEN M. GILBERT, JR.

Nassau, Bahamas

Rayclan to the rescue

October 21, 2004

Dear Sir,

I have on many occasions said I would write a letter to you for a variety of reasons but never did. This time, however, I hope you will allow me a space to voice my opinion on a situation I recently experienced.

I was the cause of damage to my car on September 20. My husband called HWP to tow the car to their garage. After all, the car was bought from them, they had parts and would be able to repair the car. Our hope was to get a timely estimate for the insurance company and just get on with it. After 12 days, two visits and God only knows how many unreturned phone calls from the lady on the tape spilling out at least 20 extension lines ... “your call is important to us” (yeah right) ... no estimate. Shameon you HWP ! You are the talk of Bermuda and it's not good.

Now on a more positive note I would like to thank Rayclan automotive group. I heard about you while moaning about my situation and the treatment from HWP. I went at 3 p.m. on Friday, October 1. I was greeted in the parking lot by Sean Pedro who walked me inside and introduced me to Joanne Richardson and Linda McKeown. Guess what? They all knew how to smile and looked me in my face as we greeted each other. Joanne took the details of my dilemma and said she would be in touch. To my shock and utter amazement she called at 5.20 p.m. the same afternoon and gave an estimate of damage. She also reported that the estimate had been faxed to the insurance company. Wow ... what service. The following week my car was towed from HWP to Rayclan, insurance approved the estimate and repairs to my car began. Because of the nature of my job, Joanne went the extra mile to secure me a loaner vehicle. Talk about “customer service”, these people wrote the book!

On Friday, October 15, I was called to collect my car. It looks brand new including someone cleaned and polished the inside of it. Rayclan , I promise to spread this good news to any and everyone in need of a great, efficient, timely, friendly automotive service. I am praying for your business to prosper and the staff to be blessed personally and in the workplace. Please keep up your high standard ... it is becoming a rare experience in Bermuda.

NETA STEVENS

Devonshire