Govt. further clarifies Immigration Act
Government last night provided further clarification of the impact of the Immigration and Protection Amendment Act 2007 on Bermudians married to non-Bermudians.
A spokesman said Bermudians could buy as many properties as they liked as long as their non-Bermudian spouses did not contribute any money towards the purchase.
Under the Act, a Bermudian married to a non-Bermudian will not be able to buy a second property where the spouse provides financial assistance or will 'benefit' from that property, such as from rental income. This restriction would no longer apply if the spouse was granted 'Bermudian' status after ten years of marriage. Until then however, the couple are only allowed one licence for one property.
The Act was passed in June to combat 'fronting', whereby foreigners have obtained property illegally by using a local resident as a 'front'. Labour and Immigration Minister Derrick Burgess says the new law is needed to protect local residents on an island where land and housing are in short supply.
Yesterday, a Government spokesman said: "If the Bermudian buys the property without requiring financial assistance or mortgage guarantee from the non-Bermudian spouse who then would have no interest in the land, then the Bermudian can buy whatever property he or she wishes to.
"Where the non-Bermudian spouse provides financial assistance then only one parcel of licensed land can be held by the Bermudian either jointly with the non-Bermudian spouse or as the non-Bermudian spouse's constructive trustee."
Meanwhile on the Island's political websites yesterday, residents expressed their views.
On the website Bermudasucks.com, one entry addressed Mr. Burgess' statement to the Press, in which he attempted to clarify some of the confusion over the Act.
The contributor said: "I must admit the cherry picking that Derek Burgess undertook in his statement today is quite outrageous. The one particular point he (and the Department of Immigration) has got wrong is in connection with the following statements: (Mr. Burgess:) 'This statement is particularly misleading (referring to The Royal Gazette article which stated 'Couples who already own another property, such as to rent out, will be breaking the law from June 2010'), as I have already announced that Bermudians who acquired land before the 2007 Act came into effect on June 22, 2007 will be granted a licence on application for every property that they hold as constructive trustees for their non-Bermudian spouse'.
'As the constructive beneficiary of the Bermudian spouse's constructive trust, the ability to benefit (under licence) from multiple properties acquired in the Bermudian spouse's name prior to June 22 2007'."
The contributor said: "If the Department of Immigration and Mr. Burgess would only consult with the Attorney General's office, they would discover that the Bermuda case of William v Williams (1982( (Court of Appeal) provides that there can be no constructive trust in respect of something that would otherwise be illegal. This case is entirely on point and deals with real property and a non-Bermudian spouse.
"I guess they have been relying too much on their overpaid UK legal consultants since in the UK a constructive trust could arise in these circumstances — but not in Bermuda as a result of Williams."
Yesterday a lawyer for The Royal Gazette said: "The point about Williams v Williams is correct". Referring to the Bermuda Immigration and Protection Amendment Act 2007, he said: "If there's any financial assistance from the non-Bermudian spouse then in the absence of a licence it's deemed to be an illegal transaction."
Christian S. Dunleavy, writing on Politics.bm, said the Act implied "that as a Bermudian you lose rights once you marry a non-Bermudian".
He said: "Why should a legitimately married couple, where one spouse is Bermudian and the other not, have less rights than a married couple of two Bermudians?
"What business is it of any government to be in the personal finances of individuals or families, whether 100 percent Bermudian or not?
He said: "This is a very slippery slope, and one that is bigger than just the issue of property ownership. It speaks to the role of Government and personal liberties and freedoms.
"There is a fundamental principle here of how much you want the Government in your life and your wallet. I say not at all thanks."
Last night, Ronnie Viera, who has formed a protest group against the new law, said members now numbered "several hundred people". He claimed that a request to meet with Mr. Burgess to outline people's concerns had "not had a positive response".
"We are disappointed that we are not able to meet with the Minister now," said Mr. Viera. "He seems to suggest all questions should be addressed to the Chief Immigration Officer rather than meeting with him directly, but it is the Minister who sets policy so we are disappointed. It seems he does not want to meet with us."
Mr. Viera said: "What the Minister has not addressed is the impact this Act is having on Bermudians. It is affecting Bermudians.
"I would also question the timelines of the licences (property licences on behalf of non-Bermudian spouses of Bermudians). What we are hearing is it's taking a lot longer than 16 days (the average time stated by Mr. Burgess), and we have heard of one case which was 11 weeks.
"We are not going to stop this fight. We will either put our concerns to the Minister or we'll have to do it in other ways."
Mr. Viera and Philip Barnett, president of the Chamber of Commerce, have called for more information from Government on property ownership restrictions for Bermudians married to non-Bermudians to end confusion over the Act.
Government says it will release the guidance notes on the legislation on Wednesday, at: www.immigration.gov.bm
A Government spokesman said a further Government response and information on property licences and those with Permanent Residents Certificates will be issued today (Friday).
