It's all in the shares

December 8, 2004

Dear Sir,

I refer to your editorial of December 6 in which you were critical of the haphazard policy that the Government was pursuing with regards to economic empowerment and affirmative action. Whilst I thought the article was spot on and to the point, I believe you didn't go far enough to offer other options available that would ‘broaden' the economic base and empower our people, particularly those who feel marginalised, whether real or imagined.

In my opinion one of the most intriguing features of Bermuda is our small locally driven services economy. On the one hand our economy seems to be able to support strong competition in the small business sector, such as advertising, painters, tilers, auto mechanics and body shops, carpentry shops, landscapers, plumbers, electricians, lawyers, retailers, gift shops and smaller construction firms etc. But in large-scale business entities competitive forces don't seem to take root as easily and our economy has development quasi monopoly and duopoly structures. BELCO, as an example is a monopoly and provides an essential service to our community and quite frankly, there is no room for another provider of electricity to enter our market as a competitor.

Many of these larger companies require a sizeable amount of capital to equip and operate their businesses and due to the small size of our economy it would not be feasible or profitable for others to enter into the same type of businesses. For example, there are two or three large food and goods distributors, only a few large scale mechanical engineering and air-conditioning firms, a few large scale car importers, a few large scale construction/contracting firms, one dairy processor, a couple of cement and block companies and a few wine and liquor merchants. There is also a major financial services institution and insurer that is privately owned. Most of us know the identity of these businesses and we also know that a good majority of them are white owned and operated.

Through the guise of “affirmative action” and “economic empowerment” the present Government is trying to introduce new entrants into these larger business sectors by issuing government contracts to certain entities. Such plans generally fail or get derailed, as we have witnessed with the Berkeley fiasco. Whilst the Government's intention might be considered a noble one, in my humble opinion it is misguided.

Government policy should be one that creates opportunity for all rather than just a few. What benefit falls to the average Bermudian - black or white or in-between - when Government awards large multi million dollar contracts to small groups of businesses that may or may not have had such contracts in the past? The answer is not much. The only people to benefit are the owners of these businesses, and in the end these misguided policies merely create another elitist class structure. There is, in my opinion, a better way to broaden the economic interests in our Island for the benefit of all.

If Government required all large scale public contracts and or leases be awarded only to companies that are publicly quoted on the Bermuda Stock Exchange, versus privately held entities, then all of Bermuda could benefit versus a small group of private business owners. Whilst Wedco's handling of the lease for the Bermuda Cement Company (BCC) is an embarrassment, the recent discussion of widening the share ownership of the company is the way forward in my opinion.

Ownership, however, should not be extended to the select few, but rather to the whole of Bermuda. I understand Mr. Jim Butterfield made such a reference in a recent article when he said: “The company will broaden its ownership by listing its shares on the BSX.”

If and when the shares of BCC are listed on the BSX, this will permit the opportunity for any Bermudian to own shares of the company. The next move by policy holders should be to require a small percentage of the pension assets in Bermuda be invested in Bermuda companies on the BSX. By doing so every person with a pension plan will be able to boast of owning a piece of those Bermuda companies listed on the BSX. I call that sharing the wealth for all versus the select few and by consequence broadening the economic pie for everyone.

ALLAN D. MARSHALL JP

Smith's Parish

Advice for the UBP

December 4, 2004

Dear Sir,

Please allow me the space to respond as an outsider, of Bermuda heritage/birth of Portuguese/British parents, to the UBP and their latest attempt to heal alleged old wounds to the black community of Bermuda. From where I observe the politics of Bermuda, this is nothing more than an effort to court the support and vote of black Bermuda. With all due respect to Dr. Gibbons and the UBP, this has to be the dumbest idea to come from the UBP in a long time.

This effort can best be described as condescending and pandering; condescending and pandering to both black and white Bermudians.

Dr. Gibbons if you want to impress the black Bermudian, if you want to help black and white Bermuda you might consider retiring or resigning as head of the UBP. The consideration may also be given of a name change to UBDP (United Bermuda Democratic Party). In the year 2005 Bermuda does not need a black party and a white party. Bermuda needs political parties that are representative of all Bermudians regardless of colour and gender. Dr. Gibbons, with all due respect and with all that you and your family have done on behalf of Bermuda and her people, you cannot win sir. Blood is thicker than water.

On the issue of a memorial to the black slaves of Bermuda, might I suggest that we have a memorial to the Portuguese slaves. Yes, Portuguese slaves: Portuguese men brought to Bermuda from the Azores for the specific reason of doing the work that black or white Bermudians would not and could not do. Those Portuguese men were housed in sub-standard living conditions in one room dwellings up at Fort Hamilton for one place. I know because I lived up there on occasion back in the 40s. Bermuda is still importing Portuguese men to work at minimum wage and less, 16 hours and more a day seven days a week. We will not at this time discuss the contracts they had to sign in regards to their families and how long they had to sign up for.

No memorial, Mr. Gibbons, but there needs to be change. Difficult decisions have to be made on behalf of the Bermuda people and Bermuda. Those decisions have to be made by the UBP. A memorial to black Bermuda slaves will not cut it. In the words of old Bermudians: “How you sound.”

MICHAEL PITTS

Inverness, Florida

In defence of BCC

December 5, 2004

Dear Sir,

It is a public outrage that (Lt. Col. David) Burch and the rest of the arrogant and incompetent staff at Wedco are trying to steal the Bermuda Cement Company Limited from its shareholders. In his press release the other day, Burch referred to the ‘monopoly enjoyed by the company' in a way that inferred that the cement company had been ripping off the community for forty years.

To the contrary, Bermuda Cement has been the engine of growth of this island. Since the company was started we have had uninterrupted cement supply at a very fair cost. He alluded in a very disparaging way to the annual rent they pay as if this were the only benefit to the public. Quite apart from the enormous values in land tax and everything else that accrues to Government and the community through any development which requires cement, there is the matter of the ship which comes in some five or six times a year paying port dues, pilotage, tugs, duty, wharfage, line crews, dock security, agency fees just for starters.

When the investors in BCC started their plant there was nothing but a desolate half acre site and they were very welcomed tenants. At huge cost, the silos and all the machinery were built and maintained by the company; the docks and all the buildings that Wedco so incompetently supervise were inherited. If ever there was cause to have a public enquiry, Wedco's affairs would qualify. I have no financial interest in this company but as a taxpayer I am appalled at our Government's lack of ethics in this case.

TAXPAYER

Paget

Tough questions

December 9, 2004

Dear Sir,

The question has to be asked, how come BCC are only paying $48,000 a year on the land? A company that has made thousands. You can't get a two-bedroom house for that. Why is it, that when the lease was questioned, suddenly they need to “upgrade and re-invest”, when they have had the area for what, 20 to 30 years, and probably never spent too much on it. Up the rent, pay it, or go, same as everyone else. Isn't it funny how, people who have had it so good, cry the loudest when the ship comes in.

NON STICK

Devonshire

Jobs for the Ombudsman

December 6, 2004

Dear Sir,

The most important function of any just government is to protect the rights of all individuals under its jurisdiction. The announcement by the Premier that the appointment of an Ombudsman who will have powers to investigate, mediate or review any government process in order to prevent abuses, is to be welcomed by everyone who is interested in freedom and fairness. May I suggest that one of the first investigations be the actions of the Bermuda College who dismissed mathematics lecturer Sean O'Connell after 29 years service because he allegedly made a derogatory remark overhead by a subsequently disgraced lecturer now gone because he lied about his qualifications. A possible second could be how Mr. Raymond Russell, a former supporter of the PLP, has been denied access as to how funds have been used by the BIU. If an independent review of the above cases were undertaken, the public might believe the promise that government “will entrench accountability within government.” It remains to be seen if the Scott Government has a real interest in justice for individuals.

ROBERT STEWART

Smith's Parish