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BERMUDA | RSS PODCAST

Britain and Bermuda

Premier Paula Cox speaks with the media during a round table discussion on the Overseas Territories white paper on Thursday. (Photo by Mark Tatem)

Many of Government’s submissions to the UK on Bermuda’s future Overseas Territory status are sensible. Some are prime examples of wishful thinking.The submissions are being made as Britain and the OTs review their relationship for the first time since the Partnership for Progress Green Paper in the late 1990s.That Paper led to the granting of British citizenship, which has had a huge impact on Bermuda’s relationship with the UK.Now junior Foreign Office Minister Henry Bellingham, who is responsible for the OTs, wants to look again. And the review is being done against the backdrop of the global recession, which has hampered the economies of the OTs and the UK.In its submissions, Government was right to seek greater freedom to increase direct airlift from Europe to Bermuda. This has been a handicap for Bermuda for decades and its redress is long overdue.Similarly, Bermuda should have greater freedom to set monetary policy through some form of central bank. While Bermuda can control its money supply and can supervise financial institutions through the Bermuda Monetary Authority, the Island’s lack of control over interest rates removes a critical tool in the trying to end the recession. While the details of a central bank remain unclear, Bermuda needs more freedom in this area, and does not get it from Britain.Government’s approach to internal security is more nuanced than it appears at first glance. Its proposal for a national security council similar to the Governor’s Council appears to be aimed at giving Government more input into policing and security without taking away the Governor’s authority. That seems fair, but some caution is needed.When gang violence first broke out, a great deal of time was wasted while Government grandstanded. Care needs to be taken that this approach will not see more of the same. Furthermore, the Governor’s control of internal security and the Police is a critical check over a small government where family and social ties can count for more than they would in larger countries. If there was wrongdoing within Government, it is not entirely clear that Government would be prepared to deal with it. In this context, having a disinterested outsider able to act withoug fear or favour is vital.As for wishful thinking, Bermuda asks Britain to deter UK government organisations from trying to lure business from Bermuda. While this may make sense in the context that the UK is trying to help OTs build revenues, the reality is that it won’t happen while Bermuda tries to attract business from Britain.The paper also seeks assistance in getting visa-free access to European Union countries, but the simple answer to this problem is to get a British passport. For political reasons, the Government is reluctant to encourage this, creating an absurdity.Similarly, the Government document asks if Bermudians would still be able to hold British passports if Bermuda became Independent. The answer has always been no, and it is hard to see the UK changing its mind.It is good that Britain and Bermuda are reviewing the terms of their relationship. There are areas that can be improved on, and at the very least, enabling Bermuda to negotiate more airlift from Europe would be welcome.