MEMBERS of the board of ABIC, the Association of Bermuda International Companies, whose letter last week to Premier Alex Scott drew the ire of prominent PLP activists, rejected suggestions that their contribution to the debate on Independence should have been perceived as political interference, and insisted, in common with corporate interests across the globe, that they "should have the freedom to express their views".

Complaints expressed in The Royal Gazette by Calvin Smith, Rolfe Commissiong and Cordell Riley that the ABIC letter represented "interference by foreigners" appeared not to reflect the views of the Premier, who has welcomed diverse views.

However, as the Mid Ocean News revealed last week, the Premier has clearly expressed his personal preference that Bermudians should vote on Independence at a general election, rather than in the referendum preferred by ABIC.

ABIC is an association of 133 international companies with a physical presence on the island, from relative behemoths like ACE and XL to a one-person office. Members run the gamut of international sector industries, including insurance, reinsurance, brokers, and captive managers; international holding companies like Bacardi and Jardine Matheson; investment managers like Fidelity, Schroders and Orbis; hedge funds; trust companies; fund managers; and shipping managers.

According to a large number of members of ABIC contacted by the Mid-Ocean News, Mr. Commissiong's comment last week to the Gazette that he "hated to think that the opinions expressed in the ABIC letter are shared by the majority of members of that body", displayed a lack of understanding of how such bodies work.

The letter, signed by ABIC chairman David Ezekiel and ABIC's Government Affairs Committee Chairman Gavin Arton, was written only after the views of the organisation had been actively sought by Government, and because the members believed that many Bermudians would be interested in the views of an organisation that represented 70 per cent of Bermuda's economy.

Mr. Ezekiel, and many members, expressed disappointment that what was intended as a contibution to the Independence debate, something specifically sought by Premier Scott, should have been construed by anyone as foreign interference in Bermudian affairs.

"It is obviously a totally personal issue as to how one either feels or votes about Independence," said Mr. Ezekiel. "It's made up of economic considerations and a very valid emotional component. How people decide to weigh those elements has nothing to do with us, but given the importance of the international sector to the economy, we believe that people have the right to know, and deserve to know, how ABIC sees the likely impact of different decisions.

"If people living here know that 70 per cent of the economy is ABIC, before they make a decision, and however much they may want to change the flag, they may want to know what ABIC thinks even if, in the end, ABIC's contributions and views are dismissed.

"That's fine, but I think that everyone here has a right to know how an organisation that represents 70 per cent of the economy feels the people might be impacted. I think it's more about their right than ours."

Mr. Ezekiel did not see the ABIC letter as an intrusion into local politics, but as an opportunity to express ABIC's views of some matters that should be considered thoroughly before irrevocable decisions were made.

"Obviously, we had to think long and hard, but we were invited to contribute to the debate, and we think that we would have been derelict in carrying out our duty, not only to our members, but to the general public, of not letting them know how a sector this important felt about the impact.

"We think that the general public has a right to know our views, and what they do with it is totally their decision. We go no further than providing information."

He complained that some media coverage of the letter had not placed ABIC's views in context, and had left the impression that it entirely disparaged the idea of Independence for Bermuda. He stressed that the letter expressed concern about Independence only from the point of view of its membership. The relevant paragraph of the letter read as follows:

"While there are a number of factors which should, and will, influence our individual decisions on (Independence), ABIC seeks only to provide input on the potential impact on our members, and thus on the International Business sector. In that context, there are almost no positives in any move towards Independence and, as outlined above, a number of potential negatives. These need to be carefully handled if this sector, which has become the lifeblood of the Bermuda economy, is to continue its substantial contribution as employers, taxpayers, and contributors to the community."

Gavin Arton, XL's Senior Vice President and Global Director of Corporate Social Responsibility, and, in his capacity as chairman of ABIC's Government Relations Committee, a co-signatory of the ABIC letter, said that there was nothing untoward or remarkable about giving such advice to the Premier.

"We appreciated the Premier's response," said Mr .Arton, "which was that he welcomed the input of all constituents, and we look forward to talking to him at the appropriate time. In a democracy, everyone should be entitled to voice an opinion.

"It's important that all constituents weigh in, and with our letter, the largest economic sector on the island has weighed in. It's entirely reasonable and appropriate for this constituency to express its view. As companies, we can't vote, but as economic providers, we should be at least entitled to express our opinion.

BOARD member Richard Winchell, Director of Operations at Strategic Risk Solutions (Bermuda) Ltd., stressed that the letter had the full support of the board, and echoed Mr. Ezekiel's comment that it was entirely sensible for the views of an entity which represented 70 per cent of the economy to be heard.

"It's a very delicate balance, "said Mr. Winchell. "Bermuda's reputation hinges on integrity and dependability, and change always causes concern. We have a very stable environment, and the stability engendered by the system we have, with the 'checks and balances' provided by an independent judiciary, is what made Bermuda the domicile of choice.

"Independence of the judiciary is absolutely critical, as is the function of the Government Auditor, the type of 'checks and balances' we know we have now."

Mr. Winchell was dismissive of the idea that the members of ABIC sought to impose their political views on Bermudians.

"Most of the CEOs are not Bermudian, and see themselves here as guests, so they are very reticent about getting into that space. A greater concern for Bermudians should be that these guests not speak up, and instead do what they can do easily, and just move.

"The point of the letter was not to encourage Bermudians to vote 'yes' or 'no' on Independence, but to highlight some of the matters that should be debated, and to consider the process."

Another board member, who preferred to remain anonymous, confirmed that the letter had been approved by the entire 22-person board.

"As a matter of principle," suggested the director, "referendums are considered the best expression of the will of the people, and a very necessary and essential tool of democracy. I don't see any disadvantage to the holding of a referendum, particularly on such an important issue.

"Clearly, it is now the normal method used in the UK and Europe on questions of sovereignty. To suggest that someone doesn't have a voice because they are foreigners would surely be looked at askance in any other part of the world where democracy reigns.

"The whole purpose of what Premier Scott is trying to do is to encourage debate. That should be the key, not that people should be trying to stifle debate. It should be a matter of human rights that people who live and work here can have their say.

"Even if, at the end of the day, they don't have a vote, they should be able to discuss and debate the issue. The Premier asked for informed discussion, and that's what ABIC is trying to do."

Board member Keith White, Chief Administration Officer at ACE Ltd., described himself as being in favour of Independence, but joined his colleagues on the ABIC board in stressing the importance of the process.

"We were just expressing our view, and the need to look closely at all of the circumstances. Personally, I haven't reached any conclusion on how we get to Independence, but I think it is very important that we leave no stone unturned.

"We all discussed the letter, and I had a little input in it. It was not our intent to tell people how they should view Independence, but to let them know our views, and encourage people to think hard about it.

"The mission of ABIC is to protect the business environment that encouraged the member companies to locate in Bermuda. I think Independence will come one day, sooner or later, and perhaps be thrust upon us, but it's got to be thought through and managed properly.

"The point is to make sure that we do what the majority of Bermudians want, but we do have a very good business environment to protect, so please look at everything possible before you make any changes. That's what we meant, whatever some people thought."

ABIC director Peter Everson, president of Schroders Bermuda Ltd., had been travelling and missed reading of Mr. Commissiong's hope that the letter did not express opinions shared by the majority of ABIC members.

"The letter definitely reflects the views not only of the board," advised Mr. Everson, "but also of the membership at large. These were not only the personal opinions of the people who signed the letters. The letter was discussed at some length over several meetings.

"I don't think it's relevant to focus on the size of the group or its importance to the economy. It's important for people to be aware of what effect different outcomes could have. Bermuda's prosperity and stability co-exist, and if you are going to make fundamental changes to the way the country is governed, it is relevant and important to take into account where these changes will lead, and how these changes will be need to be addressed.

"Regardless of how Bermuda got to where it is, you have a relatively stable situation, which is what is attractive to international business. Currently, there isn't enough information as to precisely how the balance of power will be allocated between the executive and the judiciary, for example.

"The rule of law, and the application of those laws, are the fundamental guide points for business. You can only do business in a jurisdiction where you are happy that the rule of law will prevail.

"The independence of the judiciary is vital. In any decision as to where a company incorporates, the views of the lawyers prevail. If legal counsel says 'no', we don't recommend operating in a jurisdiction, even a CEO would not overrule that opinion.

"Comfort with the legal situation is effectively a precondition to attract substantial business. That's not to say that things have to be 'fossilised', and that change should never happen, but if substantial change is made, the end result must give people at least as much assurance as they currently have. In other words, you can't have that level of assurance or comfort weakened, and expect people to carry on business as usual.

"If you make a change, you have got to understand that it will upset the dynamics, and that people will reassess where they stand. It's fairly common across the globe that corporate interests, either singly or in a group like ABIC, should have the freedom to express their views, either in the public domain, or privately, if they believe that their contribution will be helpful to the debate."

A number of questions addressed to the Premier last week had received no response by press time. A question seeking the views of Government Ministers had also not been answered by press time.

See Alvin Williams' Commentary on page 7