Revise land ownership law
I don't get out much, but I greatly look forward to Tuesday evenings. I chair the most dynamic and interesting debate chamber in Bermuda on Tuesday nights, the Alliance Caucus. Idealists, pragmatists, realists, political scientists, lawyers, doctors, shopkeepers, receptionists; we all assemble for the sometimes difficult task of reaching a consensus. As meeting chair it can be a harrowing mission, like piloting a sailboat during a hurricane, but I feel privileged to be in the room. The passion can at times be electric.
Last week we spent a good bit of time considering the Immigration and Protection Amendment Act 2007. That we need to protect our residential land for Bermudians echoed around the room repeatedly. But there is something not quite right about this piece of legislation.
First, there is the motivation behind it, to protect residential land for Bermudians. Undeniably a worthwhile endeavour, but just this last session of Parliament with the passage of the Bermuda Immigration and Protection Act 2010, the Government proposed for the first time to allow foreign corporate entities to purchase residential units. There is also a cumulative total restriction on the amount of land that can be held by License Holders, 2,000 acres which if exceeded will result in a moratorium on licences (a commitment Government has made publicly).
Preserving land for Bermudians is not a new idea; the original 1956 Act had this requirement. But there are huge swaths of land, in St. George's for Park Hyatt, Morgan's Point for Southlands, and others, being offered up to hotel developers with clear intent to sell residential units to non-Bermudians. It's like the left hand doesn't know (or doesn't want you to know) what the right is doing. How can Government be so concerned about these maximums when they are giving away 262 year interests in a significant chunk of St. George's for Park Hyatt, a scheme which calls for 180 condominium units for sale to non-Bermudians?
Then there is the inequity. Choose to marry a non-Bermudian and you no longer enjoy the same rights and privileges that Bermudian couples do. There is increased red tape in securing your first property, and most notably for Bermudians married to non-Bermudians, no chance of securing a second if the non-Bermudian spouse is "financially assisting" in the purchase or "benefiting" from its ownership.
Of course, some are quick to point out that "some Bermudians don't have their first house". This confuses "home ownership" with "housing". There are so many families living on top of one another or even on the streets, desperate for affordable housing. And we applaud Government's housing initiatives, especially the "Geared to Income" and "Homes for People" projects. But not everyone is destined to own a home. Some even prefer renting!
Every Bermudian should be able to invest and reap the benefits in Bermuda property equally. They should not be treated as second class citizens because of whom they marry.
Finally, and most significantly, there are serious flaws in the interpretation and regulation of this document.
The rules are different depending on who you ask, and every law firm in Bermuda is throwing their hands up in frustration at the prospect of advising their clients on compliance. At what point is your spouse "benefiting", therefore requiring a licence? At what point is he or she providing "financial assistance"?
If a Bermudian owns a second property free and clear from any contribution of a non-Bermudian spouse, but he is collecting rent from the second property, with the funds being used to pay for the non-Bermudian spouse's medical bills for instance, is she or he "benefiting" from this? Clearly they are. Will Government prosecute such occurrences? It appears they are saying they will not, but will all future Ministers and Immigration Officers have the same interpretation?
Government advice on what is acceptable has not been totally consistent with the language of the Act. With fines of up to $1 million, who will be taking a chance? We believe that the 2007 amendment needs to be reviewed and revised.
We will be watching with great interest as the inevitable challenges to this law are brought to the Courts.
The Bermuda Democratic Alliance wants fairness and equality for all Bermudian, and values Government policies which are fair and transparent. We are a group of people that are only in it because we care about our island's future. We are looking for a Better Way.
Alex DeCouto is the Bermuda Democratic Alliance spokesman for Labour and Immigration.