Temporary measure?

February 17, 2004

Dear Sir,

So, at long last, Government is about to begin repairs to the Hamilton Police Station. Your readers may be unaware of, and may like to know, the following: When the Hamilton Police Station moved to its present site from its previous location (which was where the Government Administration Offices are now), the Government of the day promised that it was only a temporary measure for an absolute maximum of two years. And how long ago was that? 1978. Go figure.

VOX ORIENTALIS

St. George's

Housing solution

Dear Sir,

Your front page story 'Government is failing on housing' should be of interest to all Bermudians. The article was inspired by an article in the previous day that referred to a rental going for $32,000 a month. This statement immediately brought the inevitable response about the greed of landlords. Yet, the capitalist system that we so proudly espouse is based on 'greed'. According to Adam Smith, the 'patron saint' of capitalism, it is the greed of the individual that makes the price system perform its magic. That magic is efficient allocation of resources and incomes. It is well to note here that the operative word is "efficient" not 'just'.

How does the price system work? In the case of housing, landlords who perceive that rents are rising will try to increase their own earnings by carrying out some combination of the following: raise the rents of their rented premises; upgrade existing rental units or build additional rental units. This activity has a domino effect that reverberates throughout the housing market with people least able to pay the rising rents finding themselves forced to double up or failing that to find themselves entirely without housing. Rents cease to increase and may even fall as more dwelling units come on the market. This effect also reverberates throughout rental market thereby enabling households at the bottom end of the market to obtain accommodation they can afford.

That's how it works in theory. But what if the people at the lower end of the market simply cannot afford the housing they require no matter how low the rent falls. In fact, some of these marginal renters may not be able to afford to rent available housing unless the bottom falls out of the market. This unfortunate event could occur, if the international companies that are driving the rental market left the Island.

No one wants to see this result. Yet, if Bermudians at the lower end of the income scale are not housed, this would create a dangerous circumstance that could initiate a wave of crime that would make Bermudian unsafe place to do business.

The problem that needs to be faced is that everyone has a need for adequate shelter but not a demand. Demand implies that people wanting shelter can afford such shelter. However every household has a need for housing whether or not they can afford such shelter. Rising rents means that there are more households desirous of a dwelling unit than there are dwelling units available. Hence, rents are bided up until there is no one left who is willing and able to pay the going rent who is without a dwelling. However this does not mean that everyone who needs a dwelling will obtain one.

A solution is three-pronged: reduce demand, increase supply and stabilise prices. Reducing the demand for housing can be accomplished by controlling the number of households added annually to the market for housing. Bermuda can accomplish this because Bermuda is one of the few countries in the world that can regulate the growth of households because household growth in Bermuda is due almost entirely to the importation of workers and resident non-Bermudians. Hence, we can reduce the demand for housing by restricting the number of persons admitted annually in each group to the number of expected new dwellings.

Government should enter the market only to provide dwellings for those who do not have the funds to participate in the market interplay of supply and demand. Government already supplies housing for criminals. It needs also to provide housing for those whose incomes are at a level that they cannot possibly compete in the free market for housing.

If we do not recognise the essential difference between housing needs and housing demand, we will not appreciate that the solution to the crises is to restrict the annual additions to the household market through importation of workers and sales to non-Bermudians. Thus we should: 1. Limit the number of new permit workers to a number that does not exceed the expected increase in the number of new dwellings. 2. Limit foreign ownership of dwellings to a number that is consistent with the expected long-term economic growth of the country. 3. Leave the home sales and rental market unfettered by controls. 4. Provide dwellings for those who are non-criminals but cannot compete in the housing market. If the problem is approached along these lines, I believe that an effective solution will be forthcoming.

We need to remember that a solution will be forthcoming whether or not the government acts. Eventually, the cost of setting up a company in Bermuda and of providing service support for that company will be too high and would-be international companies will set-up elsewhere. Such being the case, rents and house prices will plummet, unemployment will rise, crime will skyrocket and Americans will not need their government website to tell them not to visit Bermuda. The choice faced by Bermudians is not to create the conditions whereby this disaster occurs.However, avoidance of this potential disaster demands quick and decisive action along the lines suggested.

CALVIN SMITH

Pembroke

Day of celebration

February 16, 2004

Dear Sir,

On behalf of the Purvis Primary School family, I would like to take this opportunity to thank the many stakeholders who helped to make the official opening of the City of Wonderland, the MicroSociety initiative at Purvis, a success.

On Thursday, February 5, 2004, the Purvis Primary School family enjoyed a magnificent day of celebration. Students, parents, staff and members of our extended school family beamed with a sense of pride as the Premier of Bermuda, the Hon. William Alexander Scott, officially opened the City of Wonderland.

This day was successful because of the collective effort of students, parents, teachers, and numerous partners in education from Government ministries and departments, as well as business and community organisations. We are deeply grateful to the major corporate and government sponsors without which Wonderland would only be a dream. Major contributors include the Bank of Bermuda Foundation, the Ministry of the Environment, Swiss Reinsurance, the ACE Foundation, the Ministry of Education, the Ministry of Works and Engineering, the Bank of Butterfield and RenaissanceRe. A number of other business partners have joined with donations and in-kind support.

In September, 2003, Purvis Primary School began an innovative programme using an international concept called MicroSociety. Once a week, Purvis becomes a city, which was named Wonderland by the students.

Wonderland's 14 ventures or agencies including a post office, bank, farm, travel agency, website, science centre, city council, court, stock exchange, three art and music companies and two news agencies.

In Wonderland, best practices in education, such as differentiated instruction based on the interests and skill levels of each student, multiple intelligences, and higher order thinking skills come alive. In addition, occupational skill development and career interest awakening, that will stand the test of time and will fulfil the skill needs and consumer market of the Bermudian community in the years to come, will be actualised.

ROSECLAIRE BULGIN

Director of Wonderland and Principal of Purvis Primary School

Cheers ? not jeers

February 17, 2004

Dear Sir,

There is a letter to the Editor in today's paper, February 17, arguing against Gilbert Lopes and his plan to develop Loughlands into a condo development. I, for one, am grateful to Gilbert Lopes for having the foresight to develop condominiums. How can the writer say that he is not alleviating the housing crisis on this Island?

My husband and I have been looking for two years to purchase property and thanks to Mr. Lopes we are finally realising our dream and will be moving into our new home ? yes, a condo ? later this year.

Does the reader not understand that the tourism industry is suffering in Bermuda? Do you really think that by keeping Loughlands it would have improved the situation so much?

I think that the residents of this Island should praise Gilbert Lopes. I have full faith that the development of Loughlands will be done with the usual style and grace seen in all of Mr. Lopes' properties.

GRATEFUL, SOON-TO-BE HOME OWNER

City of Hamilton

Time running out

February 16, 2004

Dear Sir,

I'm just trying to get sorted for the coming amazing tourist season this summer season, getting my stock of small goodies and equipment to start May 1 at Church Bay, Southampton servicing the visitors and locals coming to the beach.

Access to the beach is still the simple stepladder built after Hurricane Fabian utilising lumber from Coconuts Restaurant at The Reefs, which relocated to Church Bay during the storm.

This would be a great clean-up project for "work release" at the Channel View Hotel. It is anything but a great destination for anyone but beachcombers at this time and in need of immediate attention.

The Parks Department has created a plan for the redevelopment of the site and Works and Engineering has taken on the project. Tourism is vital to the island and keeping the visitor occupied is a major concern. The problem here is the timing. It's February and snorkelling starts May. Fast approaching is the time when construction will be impeding the access more than allowing it .

Not trying to give them bad PR but I have tried telephoning them for three weeks, seeking a starting point to this project (No info forthcoming...). I know they are overworked and Fabian will keep them going for another year....

I just think it would be wise for the Island if some of these jobs were contracted out to increase the speed with which they could be done. I understand budgets and that W&E will eventually get all the projects done. I just cannot see it being soon. Wishing them luck with this awesome job. Can hardly wait to see how the project at Church Bay turns out. Would love to hear from them on this anytime, it would still be great to see them at our little beach one day soon.

BOYD VALLIS

Church Bay Snorkeling (Maybe)