Bermuda Government Boards & Commissions

 2018. January 19. Mark Fields, chairman of the organisation tasked to oversee the management, operations and redevelopment of the airport, said: “Our organisation is less than a year old. “We essentially started from nothing, but we are pleased with the leadership of the Authority’s chief executive officer, Lester Nelson, in moving quickly to establish a strong, experienced team of aviation, engineering and financial professionals, as well as internationally recognized technical advisers to oversee Bermuda’s interests in this large and important infrastructure project.” The Authority, which owns the airport on behalf of the Government and people of Bermuda, was established on March 2 last year. It was set up to ensure contractual value is delivered throughout the 30-year public-private partnership with Bermuda Skyport Corporation. The authority’s responsibilities also include air traffic control, meteorological services, aeronautical information services, and airport rescue and firefighting. The Authority is also responsible for regulating fees and charges. Walter Roban, the Deputy Premier and Minister of Transport and Regulatory Affairs, said: “I’m delighted to join the Bermuda Airport Authority board and staff in welcoming stakeholders this afternoon. I’m happy to say that the authority has moved quickly to position themselves in this important role. The LF Wade International Airport is Bermuda’s only air link to the rest of the world and therefore it is vital to our economic lifeblood, essential to international business and tourism. We are happy to have these highly qualified Bermudians involved in the protection of our collective interests.” Members are Ian MacIntyre, Robert Steynor, Marshall Minors, CEO Lester Nelson, Walter Roban, Deputy Premier and Minister of Transport and Regulatory Affairs, chairman Mark Fields, deputy chairman Andrew Parsons, Judith Hall-Bean, Lawrence Scott.

2020. February 7. Four new members have been appointed to the board of the Bermuda Business Development Agency. They are Susan Pateras, Barclay Simmons, Marc Telemaque and Leon Thomas. “We are very pleased to welcome Susan, Barclay, Marc and Leon to the board. Each new member brings with them a wealth of knowledge and experience that complements the skill set of our current board members and we look forward to their contribution,” Paul Scope, chairman of the BDA board, said. “We are confident they will provide valuable insights, fresh perspectives and vigorous oversight supporting the BDA’s mission to advocate for Bermuda’s economic development domestically and worldwide, encourage inward direct investment to benefit Bermuda’s economy and work with our stakeholders to ensure Bermuda’s legislative and regulatory framework remains the gold standard. We bid a fond farewell to Jessel Mendes, David Cash and Lydia Dickens, all of whom have chosen to retire from the board, and I extend my sincere thanks for the stellar service they have provided. They have been, and continue to be, huge supporters of Bermuda, and the BDA, and we appreciate all of their hard work and commitment.” Mrs Pateras is an insurance industry expert with more than two decades of experience across London, New York and the Bermuda marketplace. She was appointed chief operations officers of Liberty Specialty Markets (Bermuda) in 2018 and is responsible for driving business support and development, strategic initiatives and operational change across the organisation. She previously worked as a senior vice-president at Integro Bermuda Ltd and Willis Bermuda Ltd, and was vice-president for Marsh New York’s Global Broking Healthcare Unit. She also serves on the board of the Association of Bermuda International Companies and Ironshore Insurance Ltd. Mr Simmons was an investment banker with Goldman Sachs in New York and returned to Bermuda in 2006 as managing partner of ASW Law Limited. Previously chairman at Butterfield Bank, he is currently chairman of the Public Funds Investment Committee, with responsibility for advising on the investment of Bermuda’s pension funds, and chairman and CEO at Rose Investment Limited, an advisory firm. Mr Telemaque was sworn in as Secretary to the Cabinet in 2018, a position he served previously from 2006 to 2010. He has been a member of the Civil Service executive for more than seventeen years. During that time, he has served as Secretary for National Security and Permanent Secretary with the ministries of tourism and transport, public safety and housing and health. He joined the public service as Aide-de-Camp to the Governor in 2000 and was awarded the LVO [Lieutenant of the Royal Victorian Order] in 2009. Mr Thomas has spent more than 20 years advising governments and international businesses on policy, regulation and corporate strategy. As head of the Business Development Unit for the Government of Bermuda, he is responsible for policy and legislative programmes to support and grow the country’s international business sector. Prior to joining Government, He gained significant experience in North America and the Caribbean working for a multinational professional services firm.

The 2011 Bermuda legislation to provide deposit insurance of up to $25,000 per depositor (compared to 375,000 in the UK and the equivalent in the USA and Canada) is the result of a collaborative effort between financial regulator the Bermuda Monetary Authority (BMA), the Ministry of Finance and the Bermuda Bankers Association (BBA). In addition, technical advice was provided by the International Monetary Fund. Deposit insurance is a guarantee to depositors in a bank that they will be compensated up to a maximum specified amount of $25,000-of their deposits upon failure of that institution. It has three main objectives, to protect small depositors; promote stability in Bermuda's financial system and economy by providing prompt reimbursement or access to insured depositors' funds; and promote competition between financial institutions in Bermuda. Under the legislation, membership of the scheme is compulsory for all relevant financial institutions. The premiums are paid by the banks as a fixed percentage of insurable deposits and are recouped from customers by bank charges on current and other accounts. The Bermuda Deposit Insurance Corporation has a Bermuda Government/ Ministry of Finance-appointed board of directors to run the scheme. The legislation also entails elements on protection from personal liability and preservation of confidentiality.

P. O. Box HM 2273, Hamilton HM JX. T. 441-298-0151. F. 441-296-1072. An independent organization founded as the formal charitable arm for accepting donations and fundraising on behalf of the Bermuda Hospitals Board (BHB). A separate entity from the BHB and Ministry of Health, governed by its own Board of Trustees who determine policy and are responsible for its own sound fiscal management.

2016. September 19. The Bermuda Hospitals Charitable Trust has named Lisa Sheppard as its new development director. Ms Sheppard, a former reporter at The Royal Gazette, will be tasked with fundraising for both the BHCT and the Bermuda Hospitals Board after being promoted to her role from within the Trust. “I am very excited by this opportunity to give back to my community,” said the Bermudian in a statement. “There are so many great initiatives being under taken by the BHB. Healthcare is so important for all of us, and it’s an honour to be able to help in such a tangible way.” BHCT chairman Jonathan Brewin said: “I am delighted that Lisa has strengthened our team, as we strive to maximize support to the BHB. She has already demonstrated great energy and commitment to the development of the BHCT, and I look forward to working closely with her.” BHCT executive director Ralph Richardson added: “Lisa’s maturity, experience and temperament have been the key influencers in our decision to promote her to this new role. “We are looking forward to great things from her.”

2019. August 23. Bermudians were called on to “dare to invent the future” at a packed forum last night on national independence. See http://www.royalgazette.com/assets/pdf/RG407638823.pdf. The call came from panellist Ryan Perinchief, who brought the audience to its feet at the Bermuda Industrial Union’s EF Gordon Hall. Mr Perinchief, founder of the Future Leaders Programme, added: “It is time for us as Bermudians to set forward a new vision, before we are thrust into someone else’s.” The final of the five speakers prompted Alex Scott, who served as premier from 2003 to 2006 and appointed the Bermuda Independence Commission in 2005, to tell the room: “Ryan gives me hope, but despair in that I let him down. It was under my watch that we brought out the basis of going independent — but were unable to move it forward.” Mr Perinchief spoke of Bermuda’s “colonial predicament” as an island viewing itself as far from the Caribbean nations that embraced independence decades earlier. He said: “Due to this disconnect, we have consistently told ourselves we are out here on our own, another world, and not ready for independence.” Organisers of the forum highlighted Mr Perinchief as the night’s youngest speaker. Calling for Bermudians to connect with their identity and embrace “a psychological shift”, Mr Perinchief grounded the island’s decades of hesitation over national sovereignty in its colonial status. He said: “I lament that it is impossible to have a unified conversation on independence as Bermudians. Bermuda is fundamentally, as the oldest British colony and the first to import African slaves, a tribalist state.” Voicing regret at his inability to move independence forward, Mr Scott said: “When I listen to young Ryan, it’s like a race car being kept in a garage or being made to go at 20 miles an hour.” Mr Perinchief told the audience a referendum on independence was unlikely to succeed unless opinion was tilted by interference on the part of Britain. He said: “A unique opportunity that might have the potential to change is with the UK’s recent announcement that they want to legislate for Bermuda on beneficial ownership — as well as with Brexit.” Mr Scott opened the talks with an overview of the UK’s brewing political chaos over leaving the European Union. To applause, he said: “Bermuda will not become a democracy until the majority of Bermudians make it one.” He added that the push for sovereignty was being made primarily by the Progressive Labour Party and black Bermudians. Cordell Riley, a statistician and vice-president of Citizens Uprooting Racism in Bermuda, said reports and papers on independence went back to the civil unrest of the 1970s. Mr Riley said: “When I hear people say we need more information, I don’t know how much more information we need.” Issues surrounding independence were catalogued in the Bermuda Independence Commission’s report, he said. Several speakers noted Bermuda’s racial divide, both socially and on the issue of independence. Lloyd Williams, a Bermudian living in the independent Caribbean country of St Kitts and Nevis, said he had been disturbed at the racial divisions he had witnessed back in Bermuda. Mr Williams said: “When I walked around on the 24th of May, it was a black Bermudian parade. This is supposed to be a Bermuda parade.” He told the gathering of hundreds: “We have been preconditioned to think of black and white; colonialism not only brought us the government system, but it brought us a religion which perpetuates racism. Unless we see these truths, we won’t be able to address that properly and see ourselves as human beings.” The room at the BIU had filled to capacity before the forum had begun last night, with attendees listening in the hall outside. David Burt, the Premier, was present along with a host of government MPs, and Michael Dunkley, an Opposition backbencher. The event, organised by activists LaVerne Furbert and Raynol Todd, also heard from Phil Perinchief, a former attorney-general and a vocal advocate for independence. He is also the uncle of Ryan Perinchief. Mr Perinchief questioned people who had opposed independence 20 years ago by saying “yes, independence — but not at this time”. He added: “When asked the question again, they say the same thing. So when? And what time?”

2019. August 21. A former premier who appointed the Bermuda Independence Commission in 2005 has asked young people to turn out for tomorrow night’s special forum on the topic. Alex Scott, who served as premier from 2003 to 2006, said: “The political times here and internationally require us to think soberly about what are going to do.” Mr Scott added that the discussion was like taking part in a family conference. He said: “If you are a young person becoming an adult and you wish to have an influence and a place that you really feel is home, you should join the discussion. A people cannot have total authority if another parliament can take your decision and thwart what you want.” Mr Scott added that Bermuda “was and still is a divided community” that remained split along racial grounds on independence. He said: “It is the penultimate step for the sovereignty of a community. Bermuda has one of the most advanced constitutions in the remaining British territories. To paraphrase the BIC’s report, there is no other country more prepared for independence than Bermuda. There has been occasion when the British have given us the nudge towards independence, which was the case with the White Paper on independence in 1979.” Mr Scott sat on the Pitt Commission, appointed to investigate Bermuda’s inequalities in the wake of riots that engulfed the island in 1977. He said: “Out of its report came a call for Bermuda to move towards independence. The commission came out of the series of disturbances before it, but there has never been a riot since. The commission’s prescription for Bermuda, from a governance perspective, has worked. That was the beginning of the end for the vice-like grip that the United Bermuda Party had on Bermuda The political pendulum swung towards the PLP, and 20 years later the Government was transferred to the PLP for the first time.” Independence was put to the public as a referendum in 1995 by Sir John Swan, a former UBP premier, who resigned from office when it was rejected. Mr Scott suggested that, if white people had supported Sir John’s push for independence, the UBP might have remained in power. He added: “He could have written the rules and constructed a constitution that would have probably sustained the UBP for far longer.” Mr Scott said independence was “relevant to now, as opposed to just historic — the discussion is not independence for independence’s sake. All informed observers feel Bermuda is ready.” Independence has been a goal of the Progressive Labour Party since its formation in 1963. However, Mr Scott traced Bermuda’s push for self-determination to earlier decades, including the work of activist E.F. Gordon and the labour movement in the 1940s. The forum, entitled Independence for Bermuda — Now, or Never? will be held from 6pm to 8pm at the Bermuda Industrial Union on Union Street. The topic of independence will be up for discussion at a forum tomorrow night. Panellists scheduled for a “now or never” review will examine self-determination for the island from 6pm at the Bermuda Industrial Union headquarters in Hamilton. The panellists are:

• Phil Perinchief: a political activist and former Progressive Labour Party attorney-general, Mr Perinchief was a member of the Bermuda Independence Commission set up in 2005
• Ryan Robinson Perinchief: founder and director of the Future Leaders Programme to mentor and develop Bermudian students, Mr Perinchief is a law graduate of Durham University’s in England
• Cordell Riley: a statistician and former president of Citizens Uprooting Racism in Bermuda, Mr Riley has served since 2014 as the Bermuda College’s institutional and research co-ordinator
• Alex Scott: a former premier under the PLP, Mr Scott initiated the creation of the Bermuda Independence Commission, and served on the Pitt Royal Commission investigating the social and economic roots behind the civil unrest of 1977
• Lloyd Williams: Lives in St Kitts and Nevis. He is a musician and hydroponic farmer in Nevis but in Bermuda as a caregiver for his mother. He was invited to speak as a Bermudian living in a small independent nation.

2019. August 30. The island’s financial regulator and currency issuer has struck new coins (see photo below) to celebrate its 50th anniversary.   The Bermuda Monetary Authority has issued triangular coins featuring a compass rose and a map of Bermuda which is available in $5 in gold, $2 in silver and 25c in cupronickel. The authority has also issued a Bermudiana coin, the first in a series of six designed to feature the island’s national flower. The Bermudiana commemorative coin has two colour versions that highlight the distinctive purple petals and yellow centre of Bermuda’s national flower, as well as gold, silver and cupronickel denominations, The BMA is responsible for currency and also regulates the financial services sector. The coins are available at market prices from the Note & Coin Exhibit at BMA House, Victoria Street, Hamilton, Monday to Friday, 9am to 4pm. For more information on the BMA’s Commemorative Coins, email currency@bma.bm, or call 295 5278.

2019. January 17. The Bermuda Monetary Authority announced changes to its Board, which includes a new Executive Chair and Deputy Chair. After nine years on the BMA Board, six as Chair, Gerald Simons has retired as Chair of the Board, and will be replaced by Jeremy Cox as Executive Chair for three years. Mr. Simons said, “Serving on the Board of the BMA has been an honour and a privilege. It gave me a unique perspective of financial services. I have been impressed by the dedication of the Board and the expertise and commitment of staff of the Authority at all levels.” Other departures from the Board include Deputy Chair, Allan Marshall and Peter Hardy, who served on the Board for six and three years, respectively. Mr. Cox thanked the departing Board members and wished them well in their future endeavors. The BMA welcomes its new Deputy Chair, Donald Scott, to its Board,” Mr. Cox said. “As Bermuda’s former Secretary to the Cabinet & Head of Civil Service, and Financial Secretary, Mr. Scott brings a wealth of experience to this important role. Additionally, James Newsome and Francine Mason joined our Board in late 2018. Dr. Newsome is a former Chairman of the US Commodity Futures Trading Commission and was President and CEO of the New York Mercantile Exchange. Ms. Mason is a Certified Public Accountant with two decades experience working in Bermuda’s trust sector. Their blended experience is a valuable addition.”

2018. December 11. New, wide-ranging fee increases by the Bermuda Monetary Authority have been approved by the Bermuda Government. However, the changes will be phased in over a three-year period rather than two years as had originally been proposed. A review this year concluded that the BMA will require up to 39 additional full-time staff by 2020 to continue effectively discharging its duties, while its annual operating costs have been projected to rise to $61 million by 2020, up $11.7 million on last year. Against this backdrop, Curtis Dickinson, Minister of Finance, passed an order in the House of Assembly on Friday that provides for amendments to the fees charged by the BMA. Insurance and reinsurance companies, banks, corporate service providers, trusts and credit unions will be among those affected by the changes. Mr Dickinson made reference to the review conduced by the BMA with assistance from an international consulting firm, that resulted in fee change proposals. The authority recorded a budget deficit of $1.63 million last year, its fifth annual shortfall in the last decade. It expects to record a further operating loss this year. It has previously covered budget shortfalls from its general reserve account. Last year its reserves shrank by $2.1 million. As a regulator, the BMA works to protect and enhance Bermuda’s reputation and position as a leading international financial-services centre. It has said it is enhancing its risk-based supervision approach, coverage and service levels; meeting evolving international standards, but to do so it needs to further enhance its operations and add to its supervisory resources. One way this can be achieved is by raising fees. Mr Dickinson said the BMA recognized market conditions remain challenging in a number of regulated sectors, and this had been taken into account when the proposed revised fees were assessed. During the global financial crisis that started around 2008, and continuing in recent years, fee increases by the BMA were moderated to reduce the impact on the financial-services industry. Mr Dickinson said: “This has, however, contributed to the authority operating at a deficit, with resultant budget shortfalls being covered from existing reserves.” He added: “Consequently, certain existing fees will be adjusted and/or new fees be introduced to reflect the authority’s resource utilization for these ongoing supervisory activities. Also, the basis on which fees are charged will be simplified so that entities will find it easier to determine what fees they need to pay.” One of the four guiding principles that will inform the revised fees is the need for the island to maintain its competitiveness and “account for pricing relative to peer regulatory bodies to ensure Bermuda remains competitive”. Mr Dickinson said that during the consultation process and subsequent meetings between the BMA and industry stakeholder groups, the most prevalent comment was the need for the fee changes to be phased in over a longer period of time, which has resulted in the proposed timescale being altered from two years to three. He added: “The insurance industry’s request that the authority have greater flexibility regarding fees to be applied in specific circumstances, such as where affiliated insurers have similar risk profiles and in cases where combined application fees would otherwise be payable, has also been addressed via separate creation [in the Insurance Act] of a power to exempt or reduce fees.”

2019. November 29. Prison officers fought against changes that require them to make health insurance payments in the Supreme Court yesterday. The Bermuda Prison Officers Association argued that it had a substantial expectation that the officers would be exempted from making the payments based on their employment contracts. But the Government said, despite the officers receiving free insurance for more than 30 years, their contracts never guaranteed it. The Labour Dispute Tribunal ruled in August that prison officers would have to begin to pay the employee portion of their Government Employee Health Insurance contributions. The tribunal also granted the officers pay increases of 2.5 per cent in the first financial year and 2 per cent next year. Delroy Duncan, lawyer for the BPOA, said that even with the pay increases, the decision would result in a net loss for the prison officers. He told the court that prison officers had received free medical care since the 1960s and employment contracts drawn up to 2017 still included provisions to allow free medical and dental care. But the Government had recently tried to remove that benefit in negotiations in an effort to “equalise” the requirement that government workers make GEHI payments. Mr Duncan said: “That effectively means taking away the free GEHI as documented in the contracts of employment for employees of the disciplinary forces.” The lawyer argued that the decision, if allowed, would go against the officers’ employment contracts and, as such, that tribunal’s powers. He said the Government had attempted to use the tribunal to resolve matters when public-sector negotiations grind to a halt, but added that such matters should be dealt with through agreed arbitration. “The issue is when the public-sector mediation team runs out of steam, what happens then?” Mr Duncan questioned. “For expediency’s sake, people have gone along with expanding the powers of the tribunal beyond their statutory remit.” Mr Duncan added that the tribunal had wrongly classified the free insurance as a “procedural” benefit, rather than a “substantial” benefit. He called on the Supreme Court to order the Government to abide by the prison officers’ existing employment contracts and to reimburse them for any health insurance payments already made. However, Gregory Howard, from the Attorney-General’s Chambers, said the officers’ contracts did not mention insurance, but instead that they could receive medical care without out-of-pocket expenses. Mr Howard said the contracts essentially offered to cover any co-pay — a benefit prison officers would retain — but it did not exempt them from deductions for health insurance. He said the Government had paid both the employer and employee share of GEHI contributions for prisons officers since 1986 — an annual cost that has grown to $1.69 million. Mr Howard said he had “no information” about why the Government had made the payments for the past 33 years. He told the court that the prison officers had no legitimate expectation that they would continue to receive free insurance, and that the Government had made clear the intention to ensure that all those who benefit from the GEHI pool actually pay into it. “We have a period of protracted negotiations about the matter where one party refused to even have it on the table for discussion. We have an announcement for a policy change from the House of Legislature. We have offers to cushion the change sent out in a letter prior to the hearing and they were not accepted by the officers. There was an offer to grandfather in existing officers. There was no give at all.” The hearing continues.

2019. May 2. The Prison Officers Association has blasted the Government for “platitudes, no actions, just promises for 20 years” over “unaddressed adverse matters pertaining to safety, security, and work conditions”. The group has also sent a vote of no confidence against six members of the senior management at the Department of Corrections. A statement sent out this afternoon, after the announcement on Monday by national security minister Wayne Caines that Westgate prison faced “indefinite” lockdown, accused both the Progressive Labour Party and the One Bermuda Alliance of lagging on addressing officers’ “safety and health”. The POA also criticized the lack of notice, or any official statement, on the continuing secondment of Lieutenant-Colonel Eddie Lamb, the Commissioner of Corrections, who was moved to another department for nine months. The officers’ group said Colonel Lamb’s absence was now more than one year. Members are working from a Collective Bargaining Agreement dating to 2008, with “no increase in salary for a decade, inclusive of any allowance for cost of living adjustments”. The POA also castigated the Public Service Negotiations Team, which has been in talks with the association since 2016. “The POA recently discovered in discussions that the PSNT did not have a mandate to negotiate in 2016-17 and has not met with management of Corrections to discuss the CBA proposals since March 2018,” the statement continued, saying talks had been held with Mr Caines along with Collingwood Anderson, the Permanent Secretary, and senior management at Corrections, over “outstanding matters”. The statement confirmed that members had voted to go on work to rule, which was announced on Monday by Mr Caines. Last Friday, officers were assaulted by inmates at the prison, and the POA meeting with the move for industrial action would result in Westgate on lockdown under a “skeleton crew”, the minister said on Monday. In the statement today, the POA said its unanimous vote of no confidence in department leaders had been sent to Mr Anderson. The statement closed: “The POA requests the respect and remuneration so belatedly forgotten and yet well deserved.”

2018. March 5. Parliament has approved legislation to update the regulation of psychologists. The Psychological Practitioners Amendment Act 2018 replaces 20-year-old legislation governing the profession. Anyone not registered in Bermuda will now be prohibited from practising as a psychologist. Practitioners also have to get indemnity insurance against claims of negligence and malpractice. The updates were made in consultation with the Bermuda Psychologists Registration Council, which will become the Bermuda Psychologists Council. Jeanne Atherden, the Leader of the Opposition, and shadow health minister Susan Jackson backed the legislation. Tinée Furbert of the Progressive Labour Party said the updates were “succinct as regards psychology”.

2017. July 25. The Bermuda Shipping and Maritime Authority opens for business on Monday at its new offices on the fourth floor of Mintflower Place on Par-la-Ville Road. The quango was set up on October 1, 2016 to take over from the former Department of Maritime Administration — with its greater independence credited with boosting Bermuda’s shipping registry. The authority will move from Global House this Friday, and will be closed accordingly while the relocation takes place. A spokesman said that the BSMA’s existing main telephone number, 295-7251, will continue as usual, along with its fax number 295-3718 and cellular phone numbers.

Blockchain Legal and Regulatory Working Group members

• Michael Scott, JP, MP, former Minster of Telecommunications & E-Commerce
• Kevin Anderson, Senior Analyst Policy, Legal Services and Enforcement – Bermuda Monetary Authority
• Sean Moran, Business Development Manager – Bermuda Business Development Agency
• Paula Tyndale, National Coordinator – National Anti-Money Laundering Committee
• Sean Smatt, Head of Corporate Banking – Butterfield Bank
• Chris Garrod, Director – Conyers Dill & Pearman
• Stephen Gift, Assistant Financial Secretary – Ministry of Finance, Government of Bermuda
• John Narroway, a veteran of the entrepreneurial and mobile technology scene in Bermuda, co-founder and Executive Vice President of Saker Aircraft, developing the world’s first personal supersonic jet.

Blockchain Business Development Working Group members:

• Alec Cutler, Director – Orbis
• Chris Garrod, Director – Conyers Dill & Pearman
• Stuart Lacey, Founder and CEO – Trunomi
• Stafford Lowe, Chief Administrative Officer – DrumG
• Artie Darrell, President and CEO – Darrell International.

Commission, set up in 2011, has specific terms-of-reference which include:

• To look into the price of food on the Island to ensure consumers are protected from “unwarranted increases’ the Premier announced. In her budget brief for the Ministry of Finance in March 2011, she made the following statement: ‘Recently, the prices of food staples in global commodity markets have risen in worrying leaps. The Ministry of Finance has considered the implications for Bermuda and the policy options available to Government. Given that Bermuda imports substantial proportions of the food consumed on Island, we are in the position of ‘price takers’. In these circumstances, a regime of price controls could have unintended consequences including the disruption of supply lines. Accordingly, Government will use the powers of enquiry available under the Price Commission Act 1974 to obtain information from food importers about their import costs and margins to ensure that consumers are protected from unwarranted price increases. Indeed, subsequent to this statement, both the Bermuda Public Services Union and the Bermuda Industrial Union have publicly echoed my own concerns. The Price Control Commission has been empanelled and gazetted. 

• Obtaining the relevant economic data from the Department of Statistics to identify the essential goods and services that should be the focus of the enquiry.

• Inviting interest groups, consumers and individual Bermudians, who wish to provide data, statistics and other information, to make submissions to the Commission;

• Inviting input from wholesalers; supermarkets; convenience stores, discount stores, other businesses and services that provide essential goods and services;

• Consulting with the various unions including: the Bermuda Trade Union Congress, the Bermuda Industrial Union, the Bermuda Public Services Union, the Fire Services Union, Bermuda Union of Teachers, the Prison Officers Union, etc;

• Consulting with the Bermuda Small Business Development Corporation, and employer groups including the Chamber of Commerce, Bermuda Employers Council, etc;

• Obtaining information from shipping companies and other importers regarding the current cost of shipping, both air and freight;

• Producing a report for the Minister recommending how Government can assist in ensuring that consumers can get the most reasonable price for essential goods and services.

This will be a collaborative team effort between Government, suppliers, retailers and consumers.

2019. September 23. Victims of violent crime are finally getting their claims for compensation heard by a government board which has been criticized for its “serious backlog” of cases. The Criminal Injuries Compensation Board met on September 11 when members heard applications and approved financial awards for a number of victims, The Royal Gazette understands. Another hearing is set to take place this Wednesday, when more applications for compensation will be dealt with. But one man, who was shot and injured in 2014 and has been waiting for a decision on compensation since he applied for an award in 2015, pledged this week to pursue a civil claim for damages against the board and the Government over the delay in handling his case. The 26-year-old, who has suffered severe leg and back pain and depression since the attack, said: “It’s been such a long time. I have been struggling financially for so long. I have lifetime injuries because of it. The job I had before I got shot was a good paying job. Now I’m struggling with a job that doesn’t pay that much and they are trying to let me go from that because I’m not capable of doing certain things.” The man, who asked to remain anonymous, added: “The delay makes it harder. I have a child that I need to support.” His lawyer, Vaughan Caines, wrote to the Government on August 23 to say he’d been instructed to “issue proceedings seeking constitutional relief, inclusive of damages” against the board and “by extension, the Government”. Mr Caines wrote that his client’s constitutional right to a fair hearing within a reasonable time had been breached. He claimed the CICB had “failed to act on an embarrassment of applications for a number of years. Specifically, in [this] case, four years have passed since his application was first launched with the board.” The man’s compensation claim is now due to be heard at the CICB hearing on Wednesday and Mr Caines is expected to attend to make representations regarding the amount of any award. Separately, legal proceedings are expected to be filed in the Supreme Court if a settlement is not reached regarding the constitutional claim. Mr Caines wrote in a letter dated September 3: “That [the victim] has had to wait at least four years for his matter to be heard is bordering on unconscionable.” The Royal Gazette revealed last October that victims of crime were having to wait years for their compensation claims to be processed, prompting the Ombudsman to launch an investigation into possible maladministration. A Court of Appeal judgment the following month said it appeared the CICB had no “plan for disposing of the serious backlog” of compensation claims. The panel of judges criticized the board, chaired by Puisne Judge Nicole Stoneham, for failing to provide the court with enough detail on whether most cases were dealt with in a timely fashion. It noted it was the responsibility of the Attorney-General to ensure the CICB was “properly funded with adequate administrative support” to enable it to fulfil its statutory duty. The court heard there were 37 outstanding applications from those who had lost a loved one or been injured themselves because of a violent crime. Annual reports for the CICB do not appear to have been tabled in Parliament since 2015. It met only once in 2018, when it did not consider any cases. According to this year’s Government Budget book, $170,000 was spent on criminal injuries in the financial year 2017-18 and $325,000 was set to be spent in 2018-19. A further $380,000 was allocated for criminal injuries in this year’s budget. Questions to the Government about the spending received no answers earlier this year. A request for comment for this article from Mrs Justice Stoneham and Kathy Lynn Simmons, the Attorney-General, went unanswered by press time.

• Review, and subsequently approve or disallow variations to the price or charge for electrical power submitted to the Commission by a specified businesses;
• Set out the terms and conditions under which a specified business may make a variation to the price or charge for electrical power;
• Conduct inquiries into the price or charge made for any energy-related commodity;
• Conduct inquiries into other matters concerning the cost or supply of any energy-related commodity;
• Conduct inquiries into any matter which may affect the exercise of the Minister's powers under the Energy Act 2009; and
• Advise the Minister in the discharge of the Minister's functions under the Energy Act 2009.

It does not release its annual reports to the public — nor does it have to. The Energy Act requires only that it provides the relevant Minister with a report on its activities, not taxpayers. Visit www.energy.gov.bm for more information on the Commission and the Department of Energy.

2018. August 15. Financial activity in Bermuda worth a combined total of more than half a billion dollars was flagged up as suspicious during a 12-month period. The island’s Financial Intelligence Agency received 494 suspicious activity reports between April 2016 and the end of March last year. That was up 12 per cent on the previous reporting period. Of the 10,363 separate transactions contained in those reports, with a collective value of $564,249,836, some 40 were in excess of a million dollars. Once the reports had been analyzed and reviewed by the FAI to assess whether the suspicious activity was as it appeared, 371 of the reports were ultimately included in 97 disclosures of classified information and intelligence to partner agencies, with 85 being disclosed locally — the majority to the Bermuda Police Service. The other 12 were disclosed to overseas agencies. While the number of suspicious activity reports increased for a second consecutive year, and was the second highest recorded since the FAI was formed in 2008, the agency said it was pleased. “This can be attributed to the continued training and presentations provided by the FIA, which has assisted in improved suspicious activity report filings.” The agency noted: “Due to the training and presentations given to new entities, different sectors started to identify suspicions activity within their businesses and filed SARs accordingly. It was evident from the presentations given that many sectors were hesitant to file as they did not have an understanding of money laundering or the role of the FIA.” The data is contained in the agency’s 2016-17 annual report, which was tabled in Parliament on Friday. It provides a snapshot of the independent agency’s work to receive, gather, store, analyze and disseminate information relating to suspected proceeds of crime and potential financing of terrorism. Suspected fraud totaling almost $395 million was referenced in 49 of the reports, affecting eight sectors, namely banks and credit unions, fund administration, insurance companies, investment service providers, and long term insurer services. Meanwhile, suspected corruption to a combined total of $71.5 million was featured in 23 reports. The most reported suspicious activity is cash exchanges of Bermudian currency to a foreign denomination — usually US dollars. In the one-year period, suspicious cash exchanges at banks totaled $22.1 million, in 8,322 separate transactions. There was also $419,713 worth of suspicious wire transfers. Money laundering, and money laundering/cash exchanges made up the largest number of SAR reporting indicators, followed by corruption and fraud. Other indicters included tax offences, insider trading, sanctions and terrorist financing. SAR filings in the money service business more than doubled to 155, while in the banking sector they fell from 295 to 246. Separate to the 12 spontaneous disclosures made by the FAI to foreign partners, there were 30 requests for information from foreign financial intelligence units in 16 countries. Nepal and Bangladesh made the most requests at five apiece. The other countries that made multiple requests were the UK, US and France. With Bermuda’s financial sector regulated, and designated non-financial businesses and professions such as real estate agents, lawyers, accountants and corporate service providers, also regulated or in the process of having anti-money laundering and antiterrorist financing oversight regimes implemented, the island has now put a focus on so-called “high value dealers”. Particular emphasis has been placed on car, boat and motorcycle dealers, jewelers, precious metal and stone dealers, and auctioneers. Following consultation and legislation, a supervisory framework is in place that gives entities considered high value dealers to organize their operations to obviate the need for them to be registered and subject to supervision by the FIA. The FIA’s supervision is focused on those businesses that wish to be able to accept cash payments of $7,500 or higher in a single or series of transactions. Sinclair White, director the Financial Intelligence Agency, in an introduction to the annual report referenced preparations for the Caribbean Financial Action Task Force’s upcoming mutual evaluation of Bermuda. He said the agency has been playing a pivotal role as the island prepares for the evaluation. It has participated in a number of National Anti-Money Laundering Committee working groups. Mr White has been providing weekly updates to Cabinet on the agency’s preparedness for the review.

2019. October 16. It was announced today that on 25th July 2019, the Bermuda Monetary Authority (BMA) hosted the tenth meeting of the Financial Policy Council (Council) at its offices in Hamilton, Bermuda. The meeting was chaired by the Minister of Finance, the Hon. Curtis Dickinson JP, MP. The role of the Council is to assess possible threats to Bermuda’s financial stability, and to identify policies and actions to mitigate or eliminate such threats. It also advises the Government on the development of the financial stability framework in Bermuda, and makes policy recommendations designed to support the general economic and financial well-being of the country. Members of the Council are the Minister of Finance the Hon. Curtis Dickinson (chair), Sir Andrew Large (deputy chair), BMA Executive Chairman Jeremy Cox, Michael Butt, Dame Amelia Fawcett, Gil Tucker and Dr. DeLisle Worrell. At their meeting of 25th July, Council members discussed recent international and domestic economic developments and assessed the impact these might have on Bermuda’s financial stability. Council members raised concern that, globally, not enough attention has been given to risk from distorted asset pricing, especially for entities outside the banking sector. Members stressed the importance for Bermuda to continue closely monitoring this risk and to assess its potential impact to Bermuda. Mr. Phil Butterfield, Chair of the Bermuda First Advisory Group, gave a presentation on the objectives, structure and scope of work of Bermuda First. The Council and Bermuda First will look for areas for continuing cooperation. Members were provided with an update on the actions that the Minister of Finance was taking with regard to economic substance to ensure Bermuda addresses the Organization for Economic Co-operation and Development’s requirements and to remain competitive with other peer jurisdictions. Members noted that the progress being made on this matter was positive and applauded the government’s efforts on this. Members noted that the task will now be to get Bermuda off the grey list and to continue engaging with the international community to manage any emerging threats. Members examined the current state of the banking sector in Bermuda, including the critical functions it performs, challenges the banking sector may face in providing services to existing and new sectors of the economy, and the progress being made in the development of the recovery and resolution framework. Members discussed potential ideas that could be further developed as part of the banking strategy in Bermuda. In addition, the following topics were discussed:

• Bermuda’s fintech strategy being developed by the government which has the underlying objective of growing the economy and creating jobs;
• The Initial Coin Offering (ICO) regulatory framework, with particular focus on the rules around disclosure, communications, information technology, cyber security, AML/ATF as well as record-keeping; and
• Activities underway at the Bermuda Government and the BMA in respect to continuing with the development of a robust cyber risk management framework for financial institutions and the jurisdiction.

The Council’s next meeting is scheduled for December 2019

2019. July 8. Records of the Financial Policy Council will be exempt from public access to information requests if newly tabled legislation is passed. Gitanjali Gutierrez, the Information Commissioner, said the move would mean the council would be the first financial public authority whose non-administrative records were removed from Pati. A statement from her office said: “It is the Information Commissioner’s view that records related to the financial and economic interests of Bermuda are already adequately protected under existing exemptions under the Pati Act, including section 31. This section protects the disclosure of records which could have a serious adverse effect on the financial interests of Bermuda or on the ability of the Government to manage the national economy, unless their disclosure is in the public interest.” The statement said that in jurisdictions such as Britain, records related to financial operations or monetary policy were exempted from public disclosure, but such exemptions were balanced by a “formal transparency governance framework” to ensure appropriate information was made public. The statement added: “It is the Information Commissioner’s view that, from a public access to information perspective, the proposed framework for the Financial Policy Council does not meet the same standards as the formal transparency governance frameworks adopted by other jurisdictions, including the United Kingdom. If the Amendment Bill is adopted as proposed, the Information Commissioner strongly urges that it be supported by a robust and formal transparency framework for the Financial Policy Council, to ensure that the public’s right to access information is protected.” The Public Access to Information Amendment Act 2019, tabled in the House of Assembly on Friday would put any records obtained or created by the Financial Policy Council outside of the scope of Pati requests. Legislation already exempts records of the Auditor-General, the Ombudsman, courts and tribunals, and the Attorney-General’s Chambers from Pati. The ICO statement said: “The functions of those public authorities fall into three categories; oversight over other public authorities, judicial functions and the provision of legal advice to the Government. The Information Commissioner notes that the Financial Policy Council does not fall into the above categories, nor are its functions and responsibilities outlined in any provision of law.”

2019. July 6. This government financial advisory body will be exempted from public access to information laws if legislation tabled in the House of Assembly yesterday is approved. The amendment to exclude the Financial Policy Council from Pati was brought to the House by Wayne Furbert, above, the Cabinet Office minister. The council was created in 2015 as a public authority to monitor potential risks to the island’s economy and to advise the Government on financial stability.

2019. June 11. An expert panel has urged Government to review the possible linkages between immigration policy reform and sustained economic growth. Members of the Financial Policy Council made the recommendation after their latest meeting. The prospect of declining demographics represent a major risk to Bermuda’s government finances, in particular as it relates to sustained funding for healthcare and pension benefits, the council said. FPC members also discussed Bermuda’s fiscal situation and debt outlook at the meeting. While noting the improvement in the medium-term fiscal outlook in the wake of decisions taken in recent budgets, FPC members urged Government to continue to identify ways of making progress in reducing the large level of outstanding government debt. Several areas of Bermuda’s emerging fintech sector were also discussed during the meeting, including the regulatory framework for digital asset business firms and initial coin offerings. Members reviewed some international comparisons and examined the balance of risks and opportunities emerging from fintech, and how best to promote the further development of Bermuda’s fintech sector, while ensuring that Bermuda’s reputation as a world-class international financial centre was robustly protected. FPC members also discussed the work under way in Bermuda aimed at strengthening the jurisdiction’s resilience to cyber incidents, including measures taken by the Bermuda Government, regulated financial institutions and the BMA, as well as activities under way at the Ministry of Finance and the BMA with respect to continuing with the development of a resolution framework for Bermuda banks. Set up in 2015, the role of the FPC is to assess possible threats to Bermuda’s financial stability, and to identify policies and actions to mitigate or eliminate such threats. It also advises Government on the development of the financial stability framework in Bermuda, and makes policy recommendations designed to support the general economic and financial wellbeing of the country. 

2018. January 4. The Financial Policy Council has advised the Bermuda Government to take a proactive approach in dealing with risks to the island’s economy emanating from the “Paradise Papers”. Bermuda Monetary Authority, the financial regulator, hosted the sixth meeting of the FPC at its offices in November and some details of what was discussed were released today. The “Paradise Papers” refers to a slew of international media reports last year based on millions of documents stolen from law firm Appleby. “FPC noted that Bermuda enjoys a longstanding history as a trusted jurisdiction, with the highest regulatory standards,” a government statement said. “Council members urged the Government and BMA to continue to pursue proactive international engagement efforts with governmental and financial authorities aimed at promptly addressing risks emerging from the event.” The main purpose of the FPC, which was established in 2015, is to assess possible threats to Bermuda’s financial stability, and to identify policies and actions to address them. Members of the FPC include chairman David Burt, the Premier and Minister of Finance, deputy chairman Sir Andrew Large, BMA chief executive officer Jeremy Cox, Sir Courtney Blackman, Michael Butt, Dame Amelia Fawcett and Gil Tucker. The FPC also reviewed work under way by the National Anti-Money Laundering Committee towards strengthening Bermuda’s anti-money laundering and counter-terrorist financing framework in advance of the Caribbean Financial Action Task Force mutual evaluation of the island’s regime. Council members stressed the critical importance of a sound anti-money laundering and counter-terrorist financing framework to Bermuda’s economic viability and welcomed the formation of a Cabinet committee tasked, among other things, with monitoring progress in this area. Finally, members urged all relevant authorities to continue to attach priority and to assign adequate resources to ensuring its timely implementation so as to lead to a favorable assessment. Council members also discussed the European Union’s initiative to develop a common system for listing of non-co-operative jurisdictions or “blacklist” and stressed the importance of staying off it. The EU published its blacklist in December, after the FPC meeting, and Bermuda was not on it. The statement added: “Bermuda recognizes the importance attached by the EU to clamping down on tax evasion and avoidance, and promoting fairer taxation. “Bermuda believes that its regulatory and tax environment meets most of the expectations sought by the EU. Moreover, Bermuda has been an active participant in the OECD’s Tax Information Exchange Agreement and will continue to actively engage with the EU in order to reach mutual understanding on EU demands and on the most appropriate way of addressing these.” The FPC reviewed the impact on the Bermuda reinsurance industry of the recent active catastrophe season. Overall, while the unique frequency and severity of events was likely to affect the reinsurance sector’s profitability for 2017, it did not raise any concerns regarding the sector’s solvency. Other topics discussed included Government’s plans to improve its fiscal situation and recent developments in shadow banking, especially the work under way at the Financial Stability Board. The meeting was the last one to be attended by Sir Courtney Blackman, whose term has ended. The Premier thanked Sir Courtney for his contribution to the work in FPC during its important start-up phase. The FPC’s next meeting is scheduled for early this year.

2017. December 6. Ten years after the start of the global financial crisis that shook the world, a panel of experts discussed the issue of where financial stability is today. The topic was explored at a Bermuda Monetary Authority industry event, held following the conclusion of a meeting of the Group of International Financial Centre Supervisors. Present were 30 representatives from more than 20 jurisdictions. It was the first time in 40 years that the group had held its biannual plenary session in Bermuda. On the panel was John Aspden, former banker and supervisor, and now chairman of the Group of International Financial Centre Supervisors He was joined by Dame Amelia Fawcett, chairwoman of the Standards Board for Alternative Investments and a member of Bermuda’s Financial Policy Council, Sir Andrew Large, deputy chairman of Bermuda’s Financial Policy Council and a former deputy governor of the Bank of England, and Professor Karel van Hulle, university professor, member of the BMA board of directors, and former head of insurance and pensions at the European Commission.

2016. September 6. Two new members have joined the think-tank set up to advise Government on financial stability. Dame Amelia Fawcett and Gil Tucker have both been added to the Financial Policy Council. Bob Richards, the-then Finance Minister, who is also chairman of the council, said: “Since its inception last year the council has been developing an important role in advising the Government and the Bermuda Monetary Authority on the vulnerabilities and risks in the global economy and the Bermuda economy that might impact Bermuda’s financial sector. Dame Amelia and Gil will bring extensive experience and wisdom to the council’s work.” Dame Amelia, a British and American national, is a former banking executive and chairman of the Hedge Fund Standards Board in London and a non-executive director and chairman of the risk committee of State Street Corporation in Boston. She is a former vice-chairman and chief operating officer at Morgan Stanley International in Europe and was also chairman of the Guardian Media Group. Dame Amelia is chairman of the Prince of Wales’ Charitable Foundation and deputy chairman and member of the governing body of the London Business School. Mr Tucker, a chartered accountant, was managing partner for Bermuda with professional services firm Ernst & Young and later chairman. Although retired, he is active on a number of boards, including Government advisory boards and was three years ago made a Fellow of the Institute of Chartered Accountants of Bermuda. The two new appointees will join Sir Andrew Large, who acts as deputy chairman, Jeremy Cox, the Bermuda Monetary Authority CEO, Sir Courtney Blackman and Michael Butt on the council.

2015. December 8. This new advisory body set up to help Bermuda safeguard its economy from systemic risks met for the first time yesterday. The Financial Policy Council (FPC) will aim to monitor areas of potential financial systemic risk, recommend moves to strengthen regulation of the financial-services industry and also help devise plans for when things go wrong — such as bank failures. The advisory body is chaired by Bob Richards, then finance minister, and its members include Jeremy Cox, the chief executive officer of the Bermuda Monetary Authority and three independent experts. Mr Richards said: “In today’s uncertain global economic environment, it is essential that we remain focused on maintaining the health of the financial sector in Bermuda — and the potential risks to the economy. All countries, including Bermuda, are facing threats to their financial stability and many are responding to them. For us in Bermuda this development represents a vital move further to underpin our own financial stability.” The external members include Sir Andrew Large, former deputy governor of the Bank of England, now an adviser to central banks and governments. Sir Courtney Blackman the former Governor of the Central Bank of Barbados and Ambassador for Barbados to the US also sits on the council, as does Michael Butt, a veteran of the insurance industry and chairman of Bermuda-based Axis Capital Holdings Ltd. The FPC will meet three times a year. Mr Cox said: “It is critical that existing customers and those considering doing business in Bermuda see us as a jurisdiction where safety, soundness and fiscal credibility have top priority. Bermudians must continue to feel that their hard-earned assets are safe and secure and that decision-making as it relates to Bermuda’s long-term financial stability is of the highest standard. This work is key to the Authority’s objective of maintaining financial stability and the soundness of financial institutions in Bermuda, as well as being aligned with supporting Bermuda’s role as a leading international financial centre.” Many countries began to take financial stability more seriously after the global financial crisis in 2008, when US investment bank Lehman Brothers folded and many other institutions were kept afloat by government-funded bailouts. Bermuda was not as badly affected as some, as its flagship insurance industry came through largely unscathed. However, Butterfield Bank suffered hundreds of millions of dollars in losses on investments linked to soured US residential mortgages before its future was secured by the combination of a government-guaranteed capital raise and a huge cash injection from a group of private-sector investors. Government stated: “The formation of the council will overarch a strategic project begun five years ago to strengthen the financial stability framework in Bermuda.” The work done in that time includes the formation of a deposit insurance scheme and the implementation of tougher international-standard regulations, which require banks and insurers to maintain larger capital buffers to be able to withstand a severe economic downturn or financial shock. Bermuda’s major banks started this year to report under Basel III banking regulations, while the BMA’s insurance regulation was earlier this month given “third-country equivalence” with the European Union’s new Solvency II regulations by the European Commission. In 2011, the BMA also formed a dedicated systemic monitoring and analysis function to provide early warnings and take necessary actions to enhance its existing regulatory framework. The BMA’s Financial Stability department’s team of six is led by senior adviser George Pickering. More recently, the Financial Stability Committee (FSC), a committee comprising senior officials from the Ministry of Finance and BMA, was established to provide a supporting role to the FPC including in relation to implementing its recommendations. The Ministry of Finance and the BMA, along with the Department of Statistics, will also work closely with the FPC to provide it with data relevant to its work. The FPC’s recommendations will include early warning functions, but will extend to further development of the recovery and resolution regime in accordance with standards laid down by the Financial Stability Board set up in Basel by the G20.

2018. January 5. Accounting and legal services are set to be taxed in next month’s Budget, according to a report by independent advisers of the Bermuda Government. The Fiscal Responsibility Panel’s annual assessment, published last month, also estimates that Government is provisionally planning for a deficit of around $65 million in the next fiscal year — around $39 million higher than had been projected in last February’s Budget. The previous One Bermuda Alliance government had planned to introduce a general services tax this year, expected to bring in around $50 million. But the FRP says the new Progressive Labour Party administration has put the GST on the back-burner, while it can be considered by the Tax Reform Commission. “The GST will not be implemented in 2018 as proposed by the previous government, but we understand that, possibly as an interim measure, a professional-services tax is to be implemented in 2018-19, limited initially to services provided in the legal and accounting professions,” the report states. Asked for comment, a Ministry of Finance spokesman said more on the upcoming Budget would be revealed in the coming days. “The Ministry of Finance will next week be issuing a Pre-Budget Report that will advise on the proposals under consideration by the Government for the coming fiscal year. Final positions by the Government with regard to fiscal matters are usually revealed on Budget Day, which is normally during a Parliamentary sitting on the third or fourth Friday in February.” In its third yearly report, the FRP, comprising David Peretz, Peter Heller and Jonathan Portes, offers clues on the projected Budget deficit for 2018-19. David Burt, the Premier and Minister of Finance, is due to deliver his first Budget next month. “Looking forward, our understanding is that the new government’s current intention is to target a deficit in 2018-19 that is no greater than the Sinking Fund contribution, ensuring that net debt falls over the course of the year,” the report states. “This implies a deficit, on the government’s preferred definition (that is, after Sinking Fund payments) of about $65 million, more than double the $26 million target set out in the 2017 Budget, with expenditure roughly flat in cash terms (instead of falling by about $18 million) and revenues also falling short. While this would still represent a significant reduction in the deficit from the current year, this further slippage, coming on top of that seen under the previous government’s budget, is unwelcome.” The deficit for the 2017-18 fiscal year, which runs through March 31, was projected to be about $135 million. The panel argues that the island’s tax regime is inadequate to face the looming challenges posed by an ageing population, the need for debt reduction and the need for infrastructure and human capital investment. Bermuda should, the FRP said, aim over time to bring its revenue take to about 22 to 23 per cent of gross domestic product — four to five percentage points above where it is now — in line with some other island economies. It noted that the current tax structure was “excessively weighted towards the taxation of labor and goods” and added that dividend income from partnerships, “much of which is effectively labor income”, went untaxed, a privilege that should end in the interests of a fairer tax system. “It also has the perverse effect of taxing companies that bring employment to the island, through the payroll tax, while leaving those that do not bring employment largely tax free,” the report states. This week, a Bloomberg report showed how Alphabet, parent company of internet giant Google, has slashed its tax bill by funneling about $19 billion to a Bermuda subsidiary which employs no one. Such examples have provoked anger overseas and harmed the island’s reputation without bringing meaningful financial benefit. The FRP had a suggestion to address this issue: “A very significant increase in registration fees charged to companies that do not have a genuine economic presence on the island, perhaps graduated according to their turnover. This would both raise revenue, and represent a clear ‘down payment’ on the Government’s commitment to address this issue in the context of the EU Code of Conduct Initiative.” The FRP also urges an increase in the staffing of the Office of the Tax Commissioner to address the large amount of uncollected tax. And it argues that a GST is needed “on equity, efficiency and revenue mobilization grounds”. Other ideas included moving away from fixed-rate social insurance contributions to a percentage of income, and taxing capital income of residents, such as dividends, interest and capital gains, with an exemption for an initial tranche of such income. “It is worth noting that other similar jurisdictions, such as Jersey and Guernsey, tax income from capital in the context of normal income tax regimes,” the FRP said. In his Reply to the Budget speech in March last year, Mr Burt hinted at targeting capital income. “There are vast swaths of domestic wealth and income that have never been subjected to tax, which by its very construct fosters continued economic inequality,” Mr Burt said in the House of Assembly. “This is why our taxation system promotes and fuels economic inequality. Tax reform and broadening the tax base cannot be effective if they are unwilling to look at taxing the passive income of the privileged persons in society.” During last year’s successful General Election campaign, the PLP stressed it did not plan to tax rental income.

2015. October 2. Three leading international experts in public policy finance have been appointed to serve as members of the newly created Fiscal Responsibility Panel. According to the Bermuda Government, the panel will increase transparency and international credibility by providing an independent, external report of its actual fiscal conduct against the fiscal rules established. Finance minister Bob Richards said in a statement: “I am pleased to announce that we have put in place a Fiscal Responsibility Panel to help tackle our looming fiscal challenges. This group will publish, on an annual basis, an independent report assessing the Island’s fiscal strategy, focusing on progress in meeting our medium term objectives for public spending, taxation, borrowing and debt reduction.” In his 2015-16 Budget, Mr Richards said that the Government aims to balance the budget within three years. He said at that time: “To increase transparency and international credibility, Government intends to establish an international, independent committee to review, monitor, assess and publicly report on the fiscal progress of the Government. Several other islands have also adopted similar outside assessors and it has helped bolster credibility and confidence. The report prepared by this panel will be an input into the overall work to create a framework for financial stability policy in Bermuda.” The Fiscal Responsibility Panel will be chaired by David Peretz, an independent consultant on international financial issues who has worked in the British Treasury, the International Monetary Fund and the World Bank, with particular experience in advising on strategic and economic issues affecting small countries. He is joined by Jonathan Portes, the director of the National Institute of Economic and Social Research, whose expertise covers economic policy issues including labour markets, skills, migration poverty, and international economic and financial issues. The third member, Peter Heller, is a 30-year veteran of the International Monetary Fund, professor and lecturer on public policy finance. The Government’s press release states that its medium-term target is that, by 2019, Bermuda would be paying for the operations and programmes of the Government and not increasing debt relative to the size of the economy. Mr Richards added: “We look forward to the panel beginning its important work for the Bermudian people and for the first report to be published.” Mr Peretz stated: “We are pleased to be asked to take on this important role for Bermuda and look forward to producing our first report later this year.”

2019. September 27. An iconic shipwreck was badly damaged as a result of Hurricane Humberto. The Montana, a paddle steamer and civil war blockade runner, which was wrecked off Bermuda’s North Shore in 1863, forms an important part of Bermuda’s maritime cultural heritage. Chris Gauntlett, the chairman of the Historic Wrecks Authority, who has visited the site to witness the impact of last Wednesday’s storm, told The Royal Gazette: “It looks like a bomb hit it — it is very, very different.” The extent of the damage is being assessed by the Department of Environment and Natural Resources, which will publish an extensive report on it. Mr Gauntlett said that the Montana’s history included being hit by the Constellation, the wreckage to the northwest of Bermuda, which inspired the book and movie The Deep. The chairman said: “It is a big old story.” Mr Gauntlett, the owner and operator for Blue Water Divers and Watersports, added: “You can see a lot just by swimming over it. It is iconic. It is one of Bermuda’s most famous spots.” Falko Kuester, an engineering and virtual reality professor at University of California San Diego, has been working with the Government to create the Bermuda 100 Project, a digital atlas of underwater sites surrounding Bermuda. Dr Kuester said: “The damage to marine heritage, which is now emerging, is gut-wrenching. We are very sad to hear that among the impacted marine heritage sites is the beautiful Montana.” He said the Montana had been an “incredibly important site” in the development and application of new tools, techniques and technologies in documenting and preserving underwater heritage. Dr Kuester added: “Now we will work with our partners in the Bermuda Government to help them fully assess the damage, creating a new data set so that the recovery of coral and this unique heritage can move forward.” Philippe Rouja, the government custodian of historic wrecks, who will be working on the project, said: “The Montana has had extensive and incredibly detailed high-resolution imagery data sets produced of the site prior to Hurricane Humberto.”

• For more information on the Bermuda 100 Project, visit bermuda100.org. 

2019. March 20. A clear-out of Human Rights Commission watchdogs has sparked concern about continuity at the anti-discrimination body. Tawana Tannock, the former chairwoman of the Human Rights Commission, said she was worried important work could “fall between the cracks” if every board member was replaced. A fresh team of 12 was expected to be named today. It is understood that none of the new appointments have served on the Human Rights Commission before. The decision to appoint a new board was made despite applications from a handful of sitting members last November. Ms Tannock’s fears were backed by her former deputy chairman, while others claimed the last board was surprised that none of them were re-selected. One source said: “Whether political or not, I have no clue, but obviously one wonders.” The HRC was set up to oversee the application of the Human Rights Act for all Bermuda residents and provides a way to resolve complaints related to areas such as sexual harassment or disability. It is made up of between five and 12 people, appointed by an independent selection committee for terms that last up to three years. The previous group of commissioners included four people on their second stint, after they were first appointed to the 2013-15 board and returned for 2016-18. It was thought at least four of those appointed in 2016 reapplied for the new group of commissioners, but none were successful. Ms Tannock, who did not reapply, said: “In the private sector, the wholesale replacement of a governance board is virtually unheard of. “If there is no continuity on the board, there is a real risk that in transitioning to a new board, governance issues, organizational goals and ongoing matters that require the board’s attention may fall between the cracks or suffer from lack of a consistent approach.” She explained that, based on her own experience of sitting on several boards, including two terms on the HRC, it was “integral to any organisation to have some continuity at the board level, especially a governance board that is accountable to the public for use of government funds and fulfilling a legislative mandate”. Ms Tannock added: “When the HRC commissioners were only involved in adjudication of complaints, education and advocacy of human rights, there still should have been some continuity, but the need would not have been as great as it is now that the board effectively has oversight of the management of the organisation.” John Hindess, who served as deputy chairman until December, said he agreed “wholeheartedly”. He said yesterday: “If there was not one returning commissioner from the old commission, that would be a grave concern. Continuity on boards is very important; it just makes common sense.” Mr Hindess applied to be chairman for the new term but was informed last month that he was unsuccessful. He said: “I really valued my work on the commission and I wanted to continue it. I felt there was a lot of unfinished business in Bermuda for human rights protection.” Mr Hindess added: “It’s also concerning that there still hasn’t been a commission publicly appointed yet and we’re on March 19 — that’s very concerning.” Another well-placed source said: “I am shocked that we are two-and-a-half months without a new set of commissioners.” It is understood that the first quarter, which ends in 11 days, would be used to set out plans for the rest of the year. The source added that this also meant no commissioners were in place to oversee HRC operations, judge complaints or carry out other requirements outlined in the legislation. It appeared new commissioners were announced in March or April in previous years. The selection process was opened to the public for the first time for the 2013 intake and more than 70 applications were received for the latest posts. Amendments made to the Act in 2012 provided that a selection and appointment committee would be made up of a head, who can be chosen by the government minister responsible for the HRC, one representative each recommended by the Premier and the Opposition Leader, and two members of the public chosen by the head of the committee. The legislation said that the minister would consult with the HRC executive officer and the department responsible for human rights to determine the criteria for choosing commissioners. Jens Juul, who served two terms from 2013 to 2018, said: “If there is no continuity, I would be surprised.” An annual report released last July showed that in 2017 the commission received 112 complaints and managed 23 investigations — a quarter of which involved racial discrimination. Ms Tannock said in January, after she stepped down, that the same-sex marriage row was the most difficult subject she had tackled over her six years in office. During that period, same-sex marriage became legal, was banned again and then legalized once more. The Government will attempt to ban it again through an appeal to London’s Privy Council. The HRC supported legal recognition of rights for same-sex couples, but Ms Tannock felt “disheartened” over a lack of clear leadership for Bermuda on what should be done to safeguard the rights of some citizens. She also called at the time for extra legislation to protect the independence of human rights commissioners. Ms Tannock said that the HRC had experienced no political interference during her two terms. The HRC did not respond to a request for comment yesterday.

2018. December 7. Bermuda’s human rights laws need updating to reflect social change, according to a civil liberties watchdog. Tawana Tannock, chairwoman of the Human Rights Commission, said: “Upholding the integrity of the Human Rights Act underpinned our engagement with the former and current government during the course of 2017. The Constitution was written at a time when racial segregation still existed in Bermuda and it remains limited and dated in its scope. The Human Rights Act emerged to address stark omissions and provide both a practical and aspirational framework for protecting distinct, yet intersected, rights in our community.” Ms Tannock was writing in the HRC’s annual report for last year. She said: “Amendments that seek to manipulate or weaken the function of the Act risk undermining all protections within it, and must be vigorously guarded against and examined. The Act must continue to evolve to meet the needs of our diverse and developing island and to serve as a measure of our commitment to creating an inclusive and equitable community.” The report, released last Friday, said the commission received 112 complaints last year. A total of 19 per cent of the complaints alleged racial discrimination, 11 per cent were on the grounds of disability and ten per cent were on the grounds of place of origin. But 39 per cent of complaints failed to identify a protected ground of discrimination. The HRC managed 23 investigations over the course of the year, including ten new cases and 13 that were carried over from 2016. The report said that a quarter of the investigations involved racial discrimination, with 21 per cent based on sex discrimination and 14 per cent on place of origin. Several of the investigation involved allegations of discrimination on several grounds. The HRC resolved 11 cases over the course of the year — six through conciliation or mediation and two through a tribunal hearing. The other three complaints were withdrawn. In once case detailed by the report, a complainant claimed they had been harassed in their workplace and a co-worker had called them a derogatory name based on race. The complainant claimed he went to the company’s management, but nothing was done. The HRC approved an investigation into the case, but the complainant withdrew the allegation and said they had reached an agreement with management. Another case involved a Bermudian employee who complained that non-Bermudian staff had been given preferential treatment. The complainant said he had been suspended after it was alleged he confronted a non-Bermudian employee — which he denied. The HRC conducted a preliminary investigation, but found the complainant’s behavior had been “less than stellar”. The HRC report added: “The manager further stated that the investigation into the incident with the non-Bermudian was viewed on camera and another co-worker provided a statement supporting that the complainant approached the staff member aggressively. Based on this information, the executive officer determined that there was no evidence that the Human Rights Act 1981 had been violated and closed the complaint.” The HRC report also detailed several high-profile court cases that took place over the course of the year. These included the Winston Godwin and Greg DeRoche civil suit, which opened the door to same-sex marriage in Bermuda. The report also highlighted several cases involving controversial speaker Ayo Kimathi, who was banned from the island after he delivered a lecture which included what was described as hate speech. The HRC said the case highlighted the limits to free speech and the Supreme Court finding that there was no Constitutional protection for hate speech in Bermuda. The HRC report said: “While it remains a mission of the Bermuda Constitution to attack modern manifestations of historic racial discrimination, there is also the need to suppress, with equal vigor, new manifestations of discrimination as well. Moreover, the free speech rights established by the Constitution carry with them corresponding duties and responsibilities because these rights can only be exercised in a way that does not prejudice the rights and freedoms of other people or the public interest.”

2016. April 8. A fresh chapter has begun for the Human Rights Commission in its new headquarters at Milner Place, Hamilton, where the latest set of commissioners held its first meeting. Tawana Tannock, the HRC chairwoman, praised the work of the selection committee in bringing together commissioners from a broad variety of backgrounds. “I’m very pleased that we have this diverse body of 12 to help move the commission into a new era of greater independence,” Ms Tannock said, referring to the HRC’s official move out from the auspices of the Ministry of Community, Culture and Sports. Continuing member Jens Juul, a certified insurance arbitrator, has served on several local boards as well as operating Scandinavian Re, while new member Dany Pen, the education and communications officer for the Bermuda National Gallery, holds a special interest in women’s rights, gender equality and education. New member Jonathan Young said he took inspiration from the service of his mother, Kim Young, as a commissioner; he comes from an insurance background, as well as teaching at the Bermuda College, where he was a shop steward. Carla George, a new commissioner coming from a legal background, has also served on a variety of boards, including CedarBridge Academy, the Bermuda Hospitals Board and the Board of Education, and gave education as one of her main interests. Returning commissioner Kim Simmons, a corporate attorney, expressed a broad interest in human rights, particularly in how the topic was perceived by young people. Ms Simmons said she looked forward to continuing her advocacy for persons with mental disabilities. Donna Daniels, a former teacher and principal of Dellwood Middle School, is also executive director of the Adult Education School. Ms Daniels gave education as her “passion”, along with the protection of the vulnerable, the links between unemployment and poverty, and issues concerning mental health. New member Ben Adamson, a lawyer with 15 years’ experience, has served as a human rights mediator for the past six years, while Quinton Butterfield, also new, works in the Bermuda Government’s information technology office. Mr Butterfield said he looked forward to seeing the island “move forward on marriage equality, gender equality and gender identity”, and gave another interest as education and advocacy on the topic of human rights. Absent from the gathering were members Carolyn Thomas Ray, Franklin Fahnbulleh, and deputy chairman John Hindes.

2006.  The head civil servant at HRC resigned weeks after the chairman of the Government board also stepped down. Mr. David Wilson’s resignation came after Rod Attride-Stirling, then chairman of the HRC, called for jobs to be lost over the Commission’s repeated failure to produce annual reports in compliance with the Human Rights Act. The last annual report for the HRC was filed in 2001 and a report for 2005, which should have been presented to the Minister for Community Affairs by June, had not been delivered.

Established in July 2011 by the House of Assembly as an independent but Government-appointed tribunal on immigration matters. In July 2012 it began to schedule its first appeals, more than a year after it was established. Itl makes the final decisions on grievances relating to issues such as Bermudian status, permanent residency and work permits. It replaced a Cabinet committee that previously heard appeals of Ministerial decisions. This committee ran the risk of being seen as biased, so the independent tribunal was established instead. There are 12 members of the panel. The tribunal has sought guidance from Government lawyers in drafting rules for the tribunal’s use and the guidance of appellants and lawyers.

2019. July 30. An independent Law Reform Commission has been set up — ten years after legislation paved the way for its introduction. Kathy Lynn Simmons, the Attorney-General and Minister of Legal Affairs, said this week that in 2009 it became “unarguably clear that Bermuda lagged behind international best practice”. She told the Senate that the six-strong group will study and review Bermuda’s legislation to identify areas where development or change is needed. The commission’s chairman will be Delroy Duncan, a founding partner at law firm Trott & Duncan. Commissioners will include former attorneys-general Michael Scott, a Progressive Labour Party backbencher, and Mark Pettingill, a director of law firm Chancery Legal. Ms Simmons said: “This government acknowledges that the need for comprehensive and systemic reform of Bermuda’s laws is as urgent today as it was in 2009 when a formalized law reform body was conceived. Therefore, I am pleased today to inform senators and members of the public that we are advancing this initiative. Over the next several weeks, the contact information for the commission and how persons can make submissions will be provided.” The Upper House heard that Bermuda has had an ad hoc law reform committee since 1968, but the PLP saw the need to introduce a statutory body. Ms Simmons explained that throughout the Commonwealth, it appeared that law reform was best carried out by a permanent body with a defined role. She added that a review of other jurisdictions during the development of legislation in 2009 showed that a range of countries had law reform agencies that shared common characteristics. Ms Simmons said: “It was unarguably clear that Bermuda lagged behind international best practice previously in establishing an independent statutory law reform agency.” She added that the Law Reform Commission Act 2009 came into operation in February 2011. Mr Scott, then the justice minister, said in March that year the commission was expected to be “fully operational” by April 1. However, Trevor Moniz, at the time the One Bermuda Alliance’s shadow attorney-general, said in August 2011 that he believed the Law Reform Commission had still not started its work. The other commissioners named were lawyers Rod Attride-Stirling, Kim Wilkerson and Jacqueline MacLellan. Ms Simmons said: “All appointees bring a wealth of experience and commitment to advancing the much needed reform of Bermuda’s laws.” The commission’s work will include law development “with the aim of making it more responsive to the changing needs of Bermudian society” and the adoption of more effective ways to use the law and serve justice. Another function is to make recommendations “for the elimination of anomalies in the law, the repeal of obsolete and unnecessary Acts or provisions of an Act, and the simplification and modernisation of the law”. Ms Simmons explained that the commission would be able to consider suggestions for law reform from others and start or commission research. The body will be staffed by public officers and a parliamentary counsel will be assigned to help with its work. Ms Simmons said that consultants and experts can be hired by the commission and paid at rates approved by the Government. She added: “The expenses of the commission will be met out of funds to be appropriated annually by the legislature. It is intended to use existing resources to support the commission during this initial stage. During the remainder of this fiscal year, the expenses of the commission will be monitored and assessed to determine the level of funding to be appropriated during the next Budget.” Ms Simmons said the commission must produce annual reports of its work, which will go before both houses of the legislature. The Royal Gazette asked for more information about what had happened with the Law Reform Commission since the Act came into operation in 2011, but Government did nor respond by press time.

2015. December 19. Retired Cabinet ministers are set to have their pension pots restored, after a resolution proposed by the Premier passed at the House of Assembly. Michael Dunkley explained on Wednesday night that ministers’ salaries were reduced by 10 per cent in March 2013 to help cut costs, a move which remains in effect today. However, any minister who retired after that point has seen their pension from the Ministers of the Legislature Pension Fund (MMLPF) similarly docked. “This was an unintended consequence of the resolution, and is also unfair to the members who, for the most part, would have paid into the MMLPF at the higher salary,” said Mr Dunkley. The Premier suggested the introduction of a retroactive resolution to fix the issue, which went through uncontested. “For the avoidance of doubt, nothing in this resolution shall be taken to modify the annual salaries actually payable to members of the legislature,” Mr Dunkley added.

2013, February 12. The pension fund set up for Bermuda’s legislators is worth well over $8 million. According to the latest audited financial statement of the Ministers and Members of the Legislature Pensions Fund, a total of $8,528,514 was available for benefits payable by the Fund on March 31, 2009. Assets increased by $1,449,348 during fiscal 2009 — $446,060 of that increase came from members’ contributions, a matching amount was contributed by Government and the fund earned $557,228 in interest. Assets decreased by about $690,000, the largest share of that being $490,000 paid out in benefits. But the year started with net assets of $7.7 million. The Fund receives 25 percent of salaries paid to parliamentarians, senators and staff of the legislature, split equally between the Government and the contributors. Pensions are paid to contributors from age 60 if they have served at least eight years or at age 55 if they have served for 20 years or more. The pensions fund financial statements were tabled in the House of Assembly on Friday.

2015. September 30. This office, set up in 2011 to strengthen financial accountability in government has only half the staff it needs, it has been revealed. And a suitable candidate to lead the Office of Project Management and Procurement (OPMP) has yet to be found, despite the job being advertised twice and having a salary of more than $100,000 a year. A statement released by the unit under new public access to information requirements shows that it should have eight employees but lacks a director and is understaffed. Asked about the situation, a government spokesman told The Royal Gazette: “There are eight positions in the Office of Project Management and Procurement, of which four are filled. They are the contracts and compliance manager, the senior project manager, the procurement manager and an administrative assistant. The position of director is currently vacant and has been advertised twice. We are looking for the right person who will work to ensure the OPMP fulfils its mission to provide oversight and guidance to public authorities and implement the soon-to-be released code of practice on procurement and project management. The contracts and compliance manager is acting as director while the position is being recruited.” The spokesman said the director, once recruited, would assess the skills needed to “assist the department and the managers to perform their oversight and audit functions. As a result, the recruitment of the procurement operations analyst, the procurement systems officer and the contracts and compliance officer will be completed after a director has been appointed.” The OPMP was created under former Premier Paula Cox under the Good Governance Act 2011 and falls within the remit of the Cabinet Office. Michael Dunkley told parliament earlier this year, in reference to the office being set up under the Progressive Labour Party, that Ms Cox “had to do something … because those guys on that side were pilfering.” The Premier withdrew the word “pilfering” but questioned what had happened to “missing assets.” The office’s website says it “provides oversight and guidance to government departments and ministries regarding project management and procurement activities to ensure fairness, transparency and consistency in awards of contracts and adherence to applicable rules and industry best practices.” 

Appointed in 2013 by the Minister of Finance. Reviews Bermuda Government borrowing arrangements and practices used to finance ongoing budget deficits. Formation of the group was promised as part of the OBA’s election campaign and Government gets free expertise. It's a group of people involved professionally in the investment industry.

2018. December 20. Judith Hall-Bean has been appointed chairwoman of the Public Service Negotiation Team. Former chairman Jonathan Smith has stepped down due to work commitments. Minister for the Cabinet Office Walton Brown said: “I anticipate that Mrs Hall-Bean will bring significant expertise and professionalism to the role, having served as lead negotiator for the Government during the course of her career at the most senior levels of the public service. “The public is aware that the PSNT is responsible for leading our union negotiations. I wish to thank Mr Smith for his service to the PSNT and acknowledge his dedication and commitment to the negotiations process. This Government will continue to work with the unions to settle outstanding issues related to the terms and conditions of service whilst simultaneously cultivating improved organizational performance as we work towards a future-forward Government for the people of Bermuda.” Vincent Hollinsid and Orrin Simmons are the other members of the PSNT.

2018. April 6. Jonathan Smith, Vincent Hollinsid, and Orin Simmons have been appointed as the Bermuda Government’s new Public Service Negotiating Team. The group, who replace Gary Phillips, Martin Law and John Harvey, will continue ongoing negotiations with the Prison Officers Association and the Bermuda Police Association. Mr Smith, is a former Progressive Labour Party senator and Commissioner of Police; Mr Hollinsid is a former Chief Fire Officer; Mr Simmons is a former negotiator with the Bermuda Public Services Union. Since the PLP returned to power, Government has completed negotiations with the BPSU, the Fire Services Association, the Bermuda Industrial Union, and made interim agreements with the Bermuda Union of Teachers and the School Principals who are represented by the BPSU. Government reform minister Lovitta Foggo acknowledged the dedication and commitment of the outgoing team. She said: “We are thankful for their hard work in guiding the negotiations to a conclusion. Their work verified for this Government that the application of a negotiations’ model that relies on non-union members to represent the Government’s interest is a reasonable approach. We are grateful to have the services of Mr Smith, Mr Hollinsid and Mr Simmons. They each have a wealth of knowledge and negotiations experience. We very much look forward to seeing the positive results of their engagement with our unions. This Government remains committed to engendering a respect for the workers in the public service. In that regard, we will continue to work with our unions to cultivate improved organizational performance, which will ultimately benefit the Government, the employees, and by extension the people of Bermuda.” Responding, shadow government reform minister Michael Dunkley noted that negotiations were ongoing with the Prison Officers Association and the Bermuda Police Association. He said: “I would have expected in announcing the new negotiating team the minister would have provided a detailed update on the current state of affairs.” Mr Dunkley asked for details on the mandate, terms of reference, payment and length of appointment for the new team. He said: “What are the terms of any settlements reached? Has any harmonization been reached among various union agreements? Providing these answers allows accountability and transparency which this government always talks about.”

2017. November 20. A deal to give government workers a 2.5 per cent pay rise was struck yesterday with the Bermuda Public Services Union. The new three-year collective bargaining agreement was signed between the public sector negotiating team and the BPSU. Lovitta Foggo, Minister of Government Reform, said the deal was “a very important development for the Government and for the BPSU membership. Since coming into office, this government committed to upholding fairness. And with this new CBA, we are fulfilling our promises while demonstrating that we appreciate the good works of our public service. While the negotiation process continues with various other unions, the Government is pleased to highlight the successful completion of the BPSU agreement.” Negotiations have been under way since July. The Government’s offer of a 2.5 per cent pay increase was backdated to the start of April. Ms Foggo thanked the Public Sector Negotiation Team composed of Gary Phillips, Martin Law and John Harvey.Jason Hayward, president of the BPSU and a government senator, said the agreement would operate until September 2020. Mr Hayward said it was the civil service’s first negotiated CBA since 2008 and “a significant milestone for our membership”. He added the increase other contractual gains were “a morale booster for our members, especially after years of sacrifice”. Mr Hayward said: “This agreement was achieved through a collaborative process of interest-based negotiations. The new collective agreement will ensure a working environment where public service officers can focus on providing world-class service both locally and internationally. The agreement also strengthens the BPSU’s working relationship and partnership with the Government and will enhance working conditions for public service officers.”

2018. February 15. The Tax Reform Commission is facing a difficult but achievable challenge, according to new chairman Ronald Simmons. Mr Simmons, a former director of the Bermuda Monetary Authority, said he was honored by the opportunity to serve as chairman. He said: “The Premier has selected a great team of distinguished individuals. Given the numerous risks, uncertainties and challenges facing our economy, we have a lot of work to accomplish. However, I am confident we will be able to provide the Premier and the Government recommendations for comprehensive tax reform that is equitable, efficient, effective, transparent and fair, while enhancing Bermuda’s global competitiveness.” David Burt, the Premier and Minister of Finance, unveiled the members of the bipartisan commission yesterday. The commission, designed to make Bermuda’s tax system fairer, stimulate economic activity and create jobs for Bermudians, was one of the Progressive Labour Party’s General Election pledges. Mr Burt said: “I think the work of the Tax Reform Commission will go a long way in dealing with some of the biggest challenges which we have. Our system of taxation creates inequality by its very nature and structure and our over reliance on payroll tax at the same time discourages job creation in Bermuda. We have to balance those aspects and I’m quite certain that this diverse team will be able to look at the issues that we have and will be able to arrive at recommendations that will help Bermuda.” In addition to Mr Simmons, the commission will include Jeanne Atherden, the Opposition leader, and Wayne Furbert, the Junior Minister of Finance. Other commissioners include Donald Scott, a former Cabinet Secretary, Mitch Blaser, chief operating officer of Ironshore Inc, Craig Simmons, Bermuda College economics lecturer, and Brian Holdipp, senior corporate lawyer at MJM Ltd. Mr Burt said: “These commissioners have a mammoth task ahead of them, but I am confident they are up to the challenge. As promised, this commission has representation from both political parties and a cross-section of expertise in Bermuda’s economy.” He said he believed the commission would be fair, and that he looked forward to receiving its report in six months.

2019. July 22. MPs have approved setting up a commission to look at the creation of a minimum wage. Lovitta Foggo, the Minister of Labour, Community Affairs and Sport, said that the purpose of a minimum wage was to “protect workers against unduly low pay”. She added: “The days of Bermudians being able to pick and choose jobs are gone. The current economic climate puts the demand-and-supply equation for labour in the employer’s favour. Unskilled workers now have to compete for jobs and exploitation of workers is occurring.” Ms Foggo, speaking in the House on Friday night, highlighted a job advertisement this year that had looked to hire a live-in caregiver. The post offered pay of $10 an hour, less room and board, for a 60-hour week. She added that the employee was also expected to be on call seven nights a week. Ms Foggo said: “I think that we can all agree that this embodies the term ‘exploitation’.” The Employment (Wage Commission) Act 2019 will create a six-strong Wage Commission made up of a chairman and five members. It will also include two ex officio members from the ministries responsible for labour and finance. Its main function will be the recommendation of a minimum hourly wage and a living wage. The Act defined a living wage rate as the “amount of income necessary to afford an employee and his household a socially acceptable standard of living” and covered food, clothing, housing, medical treatment, childcare and transport. Ms Foggo said that the chairman would be paid $100 a meeting and members would be paid $50 a meeting. Leah Scott, the deputy Opposition leader, said that the Bill was a “step in the right direction”. She said: “People should be able to live with dignity and they should be paid for the jobs that they do.” Ms Scott, a member of the parliamentary joint select committee on the establishment of a living wage, said that the cost of living on the island also had to be looked at. She explained: “You can’t have wages go up and other things are going up at the same time.” Ms Scott said that business input on the wages was also essential. Rolfe Commissiong, also a committee member, said that the Bill showed Bermudians that “help is on the way”. He added: “This is not going to solve all of our problems — but certainly this is going to offer some relief and benefit to those who have been struggling with low-level, even poverty-level wages in our country.” Mr Commissiong, a Progressive Labour Party backbencher, said that both Bermudians and non-Bermudians would benefit. He added that Bermudians should “stop pointing the finger” at non-Bermudians that worked in low-paying jobs. Mr Commissiong said: “They are trying to support their families back home. Let’s put the focus on the systemic problem which has precipitated this ... and focus on those unscrupulous employers who have been very happy to be reaping those profits.” Derrick Burgess, the Deputy Speaker, said that he took exception to the exploitation of workers, “particularly the workers from overseas”. He added: “We shouldn’t be allowed modern-day slavery in terms of what they are paid in Bermuda.” Jeanne Atherden, a One Bermuda Alliance backbencher, questioned the use of the phrase “socially acceptable standard of living” to define the living wage rate. She asked: “How does one define what is a socially acceptable standard of living? That depends on who you are and what you think.” Ms Foggo said that Bermuda was “clearly behind the times”. She added: “Today, we are on the road to making a living wage a reality for Bermuda. Our people deserve to live with dignity, they deserve to enjoy decent work, and a part of that is to provide for a living wage. This legislation will make it happen.”