February 23, 2014

Dear Sir,

I disagree with the Finance Minister on his proposal to drop the 60/40 rule which guarantees majority ownership of Bermuda incorporated companies to Bermudians. I do agree with him that the 60/40 rules were originally established decades ago by the former white oligarchy to protect their own self interests in order to retain their position of economic dominance. He goes on to state in his 2014 Budget Report that “sources of calls for the retention of the 60/40 rule are most ironic”.

In 2014 the 60/40 rule protects the economic interests of all Bermudian business owners. Considering it was originally legislated to prosper the minority, the “real” irony is that the majority now enjoys this protection. The Finance Minister in his own words has identified that the 60/40 rule results in “economic dominance”. Well surely it is a sound argument that Bermudians should retain control of their own economy? The current legislation requiring that foreigners not own more than 40 percent of a Bermuda company is sensible because it protects Bermudians interests.

The construction industry, restaurant and retail sectors, hair salons, nail boutiques, trucking services, motor mechanic shops, nursery schools, most air-conditioning companies, print presses and fishing industry are all examples of Bermuda owned companies. These Bermudian owned businesses will be detrimentally affected if foreigners are allowed to set up businesses competing against Bermudians.

I will also venture to note, that Bermudians have a tendency to hire other Bermudians (this is sadly changing). Furthermore, the rule should be kept in place for a five-star hotel and casino resort. A way needs to be found to attract 40 percent foreign investment into such a development with 60 percent of shares being sold to Bermudians starting at $10 for each common share with $1,000 per share for preferred shares as a hypothetical argument. I believe it would be prudent and beneficial for all Bermudians including future generations to retain the 60/40 rule.

CHERYL POOLEY

Devonshire