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E-commerce success linked to legislation

Bermuda can "leapfrog'' to the front of the race to capture the world's e-commerce industry, a local business leader said yesterday.

But BIBA chairman Glenn Titterton said to achieve that it was vital a tight schedule be adhered to in drafting our e-commerce legislation properly so businesses were attracted while Bermuda's reputation was protected.

One of the key architects of the e-commerce legislation spoke to The Royal Gazette yesterday about the huge task in front of her. Australian-born Robyn Durie is a partner at United Kingdom law-firm Linklaters & Paines which last month won the contract to draft the legislation in conjunction with the Attorney-General's chambers and the Finance Ministry.

She is in Bermuda this week taking part in workshops with local businesses, government officials and overseas experts leading up to the June 1 deadline for the firm to have their proposed draft to the AG.

Ms Durie said the planned laws were in an outline stage at the moment but Bermuda was still in line to be one of the first countries in the world to pass the legislation although Singapore did so at the end of last year.

While BIBA chairman Mr. Titterton said business and Government leaders in Bermuda were leaning toward "skeletal legislation'', Ms Durie said it would be "simple rather than skeletal''.

"The plan is to have a clear framework in place. No one knows where e-commerce is going to develop in even a few years from now so the legislation can't be too intrusive. But laying down the legislation can't make the industry develop, business has to do that itself.'' She said while the finished product would be unique to Bermuda it had to also stick to several international norms because of the international nature of the Internet and e-commerce.

"It is important that any legislation Bermuda puts in place is internationally recognisable and follows certain global norms in order for it to give businesses the certainty they require to set up here.

"Under the auspices of international organisations like the OECD there have been model laws or guidelines already developed.

E-commerce success linked to legislation "Most countries working on e-commerce legislation are basing what they do on those norms so there will certainly be some commonality in different jurisdictions.'' Bermuda's business and Government community had this week clearly indicated they wanted to have a lot of flexibility in the framework to allow the e-commerce industry to flourish without hindrance, she said.

And this could be a boon for Bermuda in attracting businesses to its shores as it was significantly different to Singapore's legislation which "tried to pin down specifics'' in many issues.

"Technology is changing so fast that in a lot of ways it could be very unwise to try to set everything out in that way.

"Instead of going down that road we're working toward a clear legislative framework that should still address many different contingencies years down the track.'' She said one surprise to come out of the firm's research was how keen both the private and public sectors were to completely preserve the process of vetting all businesses opting to operate in the district.

Finance Ministry official Shauna Mackenzie said Bermuda's new laws would have similarities with those in Singapore or the directives issued in the European Union because everyone had to deal with the same issues.

But she said local officials had impressed on Ms Durie the importance of incorporating Bermuda's system of screening all businesses which were to operate from the Island into the legislation.

BIBA chairman Mr. Titterton said the skeleton-type of legislation the community wanted would allow Bermuda to be more flexible and agile as the industry expands.

He said Singapore and Ireland were considered Bermuda's main competition to win e-commerce business but Australia was also doing a lot of drafting to prepare for the new industry.

"We believe Bermuda, as a relatively small jurisdiction with an excellent working partnership between the private sector and the Government, has an edge because as a country we are more agile and more able to respond.

"We can adopt this legislation very quickly and get out in front, leap-frogging the people ahead of us at the moment like Singapore, to create something well out in front and quite unique.'' He said the drafting legislation was "pushing ahead very rapidly'' and should be completed before next year.