The full text of Bermuda Chamber of Commerce President Mr. Robert Rego's address at the Chamber's annual general meeting last Thursday, June 27.

Bermuda is facing tough and challenging times. There has been little economic recovery and prospects for an upturn look bleak.

Global competition is growing.

The technological developments have revolutionised business forcing dramatic changes and creating intense uncertainty.

Businesses world-wide are re-thinking their future and re-creating their strategies.

If Bermuda is to compete and prosper, we must be prepared to take on this global revolution, to anticipate change and to take a leadership role. Now is the time to think carefully about our future, to create a collective vision and national strategy. Now more than ever we must unite to form partnerships and take action.

As the pace of global change accelerated in 1994, Bermuda has had to face issues of pressing, national consequence -- issues as diverse, fundamental and complex as Independence, the base closures, education reform, taxation and pension reform, race relations and violence and crime. The uncertainty associated with these issues, particularly independence, has created political strife, divided the community and slowed economic growth.

Our economic challenge remains great. While our international sector experienced its strongest year of growth ever in 1994, 1995 has since seen a drop in registrations. Our mainstay industry, tourism, was neither as healthy nor as buoyant experiencing marginal growth in 1994 and a disappointing 6% decrease in air arrivals in the first six months of 1995. The pressures to rejuvenate this sector are intensifying. New directions are vital to the on-going health and success of the tourism sector.

In addition, the base closures and resulting loss of income requires the full concentration of those whose responsibility it is to conduct the business of the economy. It is doubtful the Island can sustain its high standard of living on the basis of existing industries and its limited population pool.

New revenue sources must be sought and the opening up of new sectors for growth is vital for the future economic health of the Island.

To overcome these challenges we need cooperation and coordination, yet we are in conflict. In times of globalisation we need strong international links, yet we talk of independence. In the face of increasing world-wide competition, businesses need to contain costs, yet they continue to be burdened by high taxation. Now is the time to expand our horizons and seek new business opportunities, yet we are restricted by burdensome taxation on international and professional business, limitation on the purchase of real estate by non-Bermudians; customs duties and the current Sunday trading restrictions.

The Chamber feels strongly that Bermuda must come together and take action.

Government must be more sensitive to then needs of business and must be prepared to work in partnership in planning for our future. Whilst we recognise the efforts made in this direction, what we need now is a commitment to taking action. Energies must be directed toward resolving the many issues on our national agenda forging international links. This cannot be accomplished without careful planning and action.

The Chamber has been active in 1994.

One of our primary goals for 1995, is to ensure that the Report of the Commission on Competitiveness regain its "top billing'' status on the national agenda. The Chamber compiled a study of these recommendations and have participated in a serious of meeting with members of Cabinet to discuss plans for action.

We would like to see: Relaxation in Government restrictions on business -- namely the restriction on non-Bermudians purchasing condominiums; less burdensome forms of taxation; a reduction in customs duties; and a relaxation of the Sunday Trading restrictions.

A reduction in the cost of Government.

A more collaborative approach to managing our tourism product; to name but a few.

The Chamber conducted a survey of our members on Independence.

Survey results indicate strongly that the uncertainty associated with independence is damaging to business. A clear 95% majority of those responding to the questionnaire see little or no economic benefit to independence for Bermuda and have grave concerns about the inevitable increased costs. The Chamber has expressed its concerns at the approach taken in the preparation of the Green Paper. We question the process adopted of seeking input from the community when there was no apparent attempt made to address the issues raised. We feel strongly that the community is not apparent attempt made to address the issues raised. We feel strongly that the community is not well informed and have called upon Government to be more specific about the pros and cons of independence prior to the upcoming referendum.

On August 15th the country will vote on Independence. On August 16th, irrespective of the result, businesses will continue to focus their energies on development and growth. We encourage you all to participate in the ongoing debate on Independence and to cast your vote.

Promoting equal opportunity is high on our agenda. The Chamber has recently appointed an action team to review and implement many of the recommendations in the report by Carol M. Swain. The Chamber commends the Ministry of Human Affairs in the creation of CURE and is working with Government and other industry groups to develop "equal opportunity'' policies that will end discrimination in the workforce.

In 1994, Bermuda Harbour Nights became a huge success with visitors and the local community. It brought additional business to retailers, restaurateurs and small business vendors and at the same time provided entertainment value to the Bermuda vacation. We extend a special thanks to our corporate sponsors and programme participants -- for without their support, we would not be able to offer this important business-building programme. Education is always a priority for the Chamber. We are strong advocates of the need for business/education partnerships. We need to prepare our young people for the tough realities of the workplace. To do this, we need to build stronger partnerships with our young people, with educators and with parents. The Chamber will continue to actively participate in legislative reform, curriculum development and career planning for students. We have a dedicated Education Committee who are committed to building a link between business and schools.

While the times are calling on us to be ever more competitive there is an equally urgent need to be a more caring community. The current escalation in crime and violence led to the tragic loss of our respected colleague Rochelle West on January 5, 1995. The tragedy brought violence to our doorstep.

Business can no longer afford to turn a blind eye to the social ills of our community.

The Chamber supports the Crime Stoppers programme and we encourage all our members to participate. We also support the return to parish policing and are pleased that the new Commissioner of Police is implementing many of the very sound recommendations made in the Tumin Report. By recognising the problems and taking action, we are positive that we will be able to turn this situation around.

Financial Report: We are pleased to report a net income of $61,400 in 1994 representing a turn around of $235,900 over 1993. This is certainly a step towards achieving our objective of reducing our accumulated deficit.

The successful membership drive in 1994 and revenue earned from the many Chamber programmes contributed to the 1994 operating income.

Closing Comments: We must recognise that Bermuda is now experiencing a period of intense change, probably more so than every before.

Business must react and face this uncertainty by initiating change and taking action. If business in Bermuda is to expand and grow, we need to embrace a whole new way of doing business -- we need to re-kindle the entrepreneurial spirit, place the highest value on people development and recognise the need for life-long learning.

We need to foster a more open, flexible management style, with renewed emphasis on team-work and quality. Only by changing our work styles will we be able to build a solid foundation for Bermuda's future.

I would like to thank all our members who offered their support during our difficult times. Special thanks goes out to Adolf Luttke and Corange Limited for providing us with temporary offices; to Deborah Carr and the entire EAP team for their professionalism and support; and to Eurotile, Pembroke Paint.

Gorhams, and Treecon Limited for helping us refurbish our offices on Front Street.

Thanks too to the Executive, the Council and to all our members who donated their time to serve on our many committees.

Most importantly of all, I would like to thank our Chamber administrative team -- Carolyn, Shirley, Rhonda, Heather, and our newest team members, Kelli Pettingill and Laquita Philpott for all their hard work this past year and to the Visitor Service Bureau staff for their service to our visitors.

I would like to take this opportunity to thank and extend best wishes to Vincent Ingham for his service to the Chamber. Vince has resigned from the Executive Board and we wish him well in the future.

It is the involvement and unfailing dedication of all those involved that keep the engines of the Chamber so well turned.

`CHALLENGING TIMES' -- Chamber of Commerce president Mr. Robert Rego.