Swan slammed for `influence peddling' over McDonald's
Former Premier Sir John Swan's attempt to re-open the McDonald's on the former US Naval Air Station smacks of "influence peddling,'' says Opposition Leader Mr. Frederick Wade.
This week, a legal notice appeared in The Royal Gazette which said Sir John, fellow United Bermuda Party MP Maxwell Burgess, Mr. Alexander W.J.A. Swan, and Mr. Leon E. Simmons had applied to incorporate a local company to carry on the business of McDonald's Restaurants in Bermuda.
The popular foodspot, which served the Base but was open to Bermuda residents a couple of days each week, was among the casualties when the St. David's Base closed on September 1. Like Mr. Burgess, Mr. Alexander Swan and Mr. Simmons are businessmen closely connected with Sir John's real estate company, John W.
Swan Ltd.
Sir John stepped down after more than 13 years as Premier in August but remains an MP.
The new company, Grape Bay Ltd., is to have among its objects "to obtain all necessary permits or licences from McDonald's Corporation for the purpose of enabling the company to carry on the business of McDonald's Restaurants within the Islands of Bermuda upon such terms and conditions as may be acceptable to it.'' Bermuda laws strictly limit franchise operations.
Finance Minister Grant Gibbons, who is Sir John's United Bermuda Party running mate in Paget East, has said any application from a company associated with Sir John will be treated like any other.
But Mr. Wade said Sir John's attempt to re-open the McDonald's smacked of "influence peddling.'' While there might be laws in the United States that would prohibit such dealings with Government immediately after leaving Cabinet, there were no such rules in Bermuda, he said. "It leaves a bad taste in my mouth that Sir John would be trying to peddle his influence to get something done,'' Mr. Wade said.
"On the question of franchising I still don't see why we should be paying some foreign company to tell us how to make a hamburger,'' he said. "It just leaves a bad taste in your mouth,'' Mr. Wade said.
If Sir John's company is permitted to open the McDonald's, it will pay a certain amount each month to the US-based corporation for the right to make a McDonald's hamburger, Mr. Wade said.
"The Bermudian hamburger is the best hamburger in the world,'' he said.
"That's why we're against franchising.'' Paying a foreign company for a hamburger recipe was "a waste of scarce foreign exchange.'' Dr. Gibbons said "any application ... would be treated on the same basis to make sure it's in compliance with the Companies Act and companies regulations.'' He had held no "formal talks'' with Sir John, who has said he is acting as a consultant for a group interested in re-opening the McDonald's.
"He has certainly mentioned to me in passing that there was an interest,'' Dr. Gibbons said.
But "lobbied isn't a word I would use necessarily,'' he said. "I think he was acting as an agent, basically.'' Sir John, who in the recent past has declined to discuss the McDonald's project, was off the Island yesterday. Mr. Burgess could not be reached for comment.
While it is often said that franchises are not permitted in Bermuda, "it's fair to say that there already exist in Bermuda many, many franchise type operations,'' Dr. Gibbons said.
