Independence could offer economic opportunities for Bermuda, according to the The Bermuda Independence Commission.

In its first monthly report to cabinet, the BIC, which is tasked to deliver an independent evaluation on the pros and cons of Bermuda going it alone said it was important to look at the economic impact.

The paper, tabled in the House of Assembly yesterday by Premier Alex Scott, notes autonomy could offer opportunities for economic expansion.

It said: "Currently there are limitations placed on Bermuda in negotiating air service agreements. Such limitations may be detrimental to the interests of Bermuda."

Similarly it noted Bermuda's shipping register is limited by the current constitutional status.

"We believe there may well be other potential revenue opportunities beyond civil aviation and the shipping registry that need to be explored." Elsewhere it said: "It is important to look at the critical components that inspire confidence in Bermuda's economy and that would develop further our economic base."

The Commission is seeking the advice of Finance Ministry Consultant Andrew Brimmer, Bermuda Monetary Authority CEO Cheryl-Ann Lister and Bank of Bermuda CEO Philip Butterfield.

The BIC has also requested a paper from the BMA on matters which would fall to it if Bermuda went independent.

"In addition a review of the current pegging of the Bermuda dollar is in order, with the aim of determining whether the integrity of the currency could be maintained in an independent Bermuda.

"Moreover, there is the question as to whether there would be a need in an independent Bermuda for the establishment of a central bank.

"The international companies sector is an essential element for the continued success of the economy.

"Careful investigation needs to be undertaken as to the impact of Independence on both these companies registered in Bermuda and Bermuda's attractiveness as an international business domicile, generally, if independent.

"The impact on tourism of independence would need to be investigated further.

"In fact, in the case of both pillars of the economy, political and social stability are probably more important than constitutional status."

The BIC is seeking information input from Britain and the territories which split from it as it explores all the options. It said: "The UK government has made it clear that no advance on our current constitutional position, short of independence is possible.

"It is therefore important to solicit an updated and official response from Her Majesty's Government on this point.

"A written statement from the UK Government as to what its current policy is on overseas territories and their future self-determination is being requested.

"Additionally it would be helpful to ascertain the methods by which other colonies have moved to nationhood ? whether by election or referendum. The UK government also has promised to clarify its position on which vehicle would be the most appropriate in determining the will of the Bermudian people on the issue of independence for Bermuda."

Bermuda's whole system of Government is another area to be reviewed, said the paper, including whether the Constitution needed to be updated.

"Is the Westminster style of governance for Bermuda, or should alternatives be considered?"

Questions about the role and selection of the Senate are also raised."

The paper said that while most believe Bermuda would stay in the Commonwealth as a constitutional monarchy, the option of becoming a Republic should be explored.

It said: "For those for whom independence represents a severing of ties with Great Britain, however, a constitutional monarchy might not achieve that objective."

The BIC have also promised to look into what sort of checks and balances are needed to ensure a strong democracy and the rule of law.

"The matter of whether Bermuda's highest court of appeal would remain the Privy Council needs to be resolved.

"This point is of particular importance to those businesses that are domiciled in Bermuda and have confidence in right of appeal to the Privy Council in Britain. Whatever style of independence Bermuda adopts, the position and responsibilities of the Governor General or equivalent (President) would need to be defined as would the procedures for the appointment of judges and other public officers."

The impact of independence on nationality also needs to be defined says the paper. "Would an independent Bermuda recognise dual nationality?"

The paper also asks whether Bermudians would enjoy rights of UK citizenship, even though Governor Sir. John Vereker has already said Bermudians without UK family ties are unlikely to retain British passports granted in 2002 if the Island goes independent. The Commission is also pushing for a clearer understanding of the powers of the Governor and to understand what benefits Bermuda gets as an overseas territory and how external affairs be handled if the Island decided to go it alone.

"Would such responsibilities be handled by a new ministry or by the Prime Minister's officer or equivalent head of Government?"

The scope of consular/diplomatic representations needs to be looked at said the BIC with assessment of the number of Bermudians living abroad and their residence. The possibility of having honorary consuls has sparked interest as well as the possibility of out-sourcing Bermuda's passport and visa matters for foreign governments. International associations with NATO, CARICOM and others need to be assessed.