The bill granting Bermudians the right to live and work in Britain and hold UK passports was finally passed yesterday.

The House of Lords yesterday gave the British Overseas Territories Bill its third and final reading after a debate lasting just nine minutes and the Royal Assent was given a few hours later.

British lawmakers have already guaranteed that the new law will be operative by May 21 this year - the delay is to allow time for the practical arrangements for issuing new passports.

All British Overseas Territories Citizens will become British citizens and be entitled to a British passport and full rights of work and abode in the United Kingdom and the European Union.

But the benefits of citizenship, such as reduced fees for education, would be only for those who take up residence in the United Kingdom.

Government Junior Whip Lord Grocott said in yesterday's debate: “Throughout the process this bill has been warmly and widely welcomed by all parties in both houses.”

Former Bermuda Governor Lord Waddington welcomed the passing of the act and said it would allow Bermudians the chance to pick up valuable work experience which could help them in their careers when they returned to the Bermuda. He told The Royal Gazette “When I lived in Bermuda I always thought the situation was very unfair - some people would have liked the opportunity to get work experience in Britain, such as with the big banks, but they lost out.

“The main benefit now is they can come and go freely without immigration controls and stay as long as they want.

“They could stay here if they wish but that's highly unlikely. Obviously it's a very great improvement on the present situation.”

He said that the bill would rectify the situation created by a series of nationality acts in the UK dating back to the 1960s under both Labour and Conservative Governments which created immigration controls for certain categories of British citizens.

He denied the blame lay with the British Nationality Act 1981 passed by the Conservative Government of which he was a member. He said that bill formalised the process by created a new category of British citizenship.

However this was refuted by independence advocate Walton Brown who said Lord Waddington bore direct responsibility for the British Nationality Act because he was Home Secretary when the bill was actually implemented in 1983.

He said: “This current piece of legislation is rectifying a problem created by the Conservative Government.

“It grants privileges to individuals but it does nothing about the structural relationship between the British Government and the overseas territories. It remains an issue.”

He said under the The United Nations charter governments with colonies had to move towards granting them full self-government.

Mr. Brown added: “I have no intention of holding British citizenship. I only want to be a Bermudian citizen.”

The law will automatically confer British citizenship to the people of the 14 overseas territories but they are not compelled to accept it and can renounce British citizenship and retain their current status.

Bermuda's Acting Governor Tim Gurney said: “I am delighted to see it's been passed and I am looking forward to it being implemented.”

He said that the three-month delay in allowing practical use of the act was to give the FCO time to sort out administration problems. British lawmakers have been actively mulling the British Overseas Territories Bill since 1998. A 1999 White Paper on a modern partnership with the colonies promised that full citizenship rights will be restored to the colonies.

One of the amendments in yesterday's bill was to include the Ilois people who were forcibly removed from the Chagos Islands, in the Indian Ocean, in the 1960s and 1970s, to make way for an American military base on Diego Garcia.

During the House of Commons debate earlier this month, Ben Bradshaw, the parliamentary under secretary of State for Foreign and Commonwealth Affairs, assured his colleagues that the law would be operative by May 21 - the 500th anniversary of the settlement of St. Helena, one of the 14 colonies affected by the bill.

The British Overseas Territories Bill also changes the name of British Dependent Territories to British Overseas Territories.

On the streets of Hamilton the new bill was greeted with moderate interest.

Vernisha Cann said: “It's doesn't mean anything to me. I haven't been following it but I will look into it now.”

And Eardley Fleming told The Royal Gazette: “It doesn't concern me but in general it will be a good idea. The way things are going now people might want to exploit the chance to go elsewhere. It's getting crowded here.” His views were echoed by Ina Creighton. She said: “It doesn't appeal. I haven't considered England but I have considered going away. The cost of housing is so high.”