In response to a statement in The Royal Gazette today, October 18, 2000, Bank of Butterfield wishes to make it clear that it did not "pull out'' of the sponsorship of the Race Weekend, an event with which the Bank has been pleased to be connected for 10 years.

In March of this year, the BTFA asked the Bank to increase the annual sponsorship paid directly to their organisation from $65,000 to $100,000. This amount did not include the prize money and many other expenses traditionally incurred by the Bank which averaged an additional $35,000 annually.

In response to the request for the increase the Bank asked for an accounting of the funds and suggested some ways in which annual costs could be reduced without seriously impacting the events. These suggestions were rejected by the BTFA.

In a meeting held on March 28, the Bank offered to increase the annual sponsorship amount over a period of three years, with the figure of $100,000 being reached in year three. The first response to our proposal came in an ambiguous letter from the BTFA on 2 May 2000 in which they advised that while they were not turning down our offer, they were not ready to accept it either.

In essence, the organisation put the Bank on notice that it was shopping around for a better deal.

It was not until June that the BTFA advised the Bank that it would accept its offer for the increased funding for one year only, to which the Bank responded in a letter dated 7 June 2000, which outlined our concern for continued funding of the entire event with no long-term commitment.

We also stated our desire to continue to sponsor the mile race should the opportunity arise. This offer was rejected by the BTFA in a letter dated 20 June.

While we have continued our discussions with the BTFA, no agreement has been reached and for reasons unknown to the Bank, it appears that the BTFA does not want the continued sponsorship of the Bank for the Race Weekend. Currently Bank of Butterfield is considering an alternative event, so that we can continue to play an appropriate role in the life of the community.

BUSINESS BUC