ABIC and ABIR Reiterate Position Statements on Independence

In light of the recently released Bermuda Independence Commission (“BIC”) report, the Association of Bermuda International Companies (“ABIC”) and the Association of Bermuda Insurers and Reinsurers (“ABIR”) today reiterated their concerns surrounding the issue of independence. ABIC and ABIR stressed that the concerns outlined in their written submissions on the topic remain unchanged, adding that some of the statements contained in the BIC report and the media do not fully reflect the positions of these organizations. ABIC and ABIR´s written submissions dated October 22, 2004 (ABIC), June 18, 2004 (ABIR), and February 7, 2005 (ABIR) are attached to this press release.

ABIC and ABIR stated that they view Bermuda as one of the preferred jurisdictions in the world in which to do business. They commented that Bermuda’s attractiveness is based on a number of important features, including the Island’s historically stable social and political structure; its participation in the United Kingdom’s legal system, framework, customs and traditions with which international business partners are comfortable; and the total mix of economic costs and benefits of doing business on the Island.

ABIC and ABIR stated that the current debate regarding dramatic and irrevocable changes to these critical features of Bermuda’s political, legal, social and business environment raises important issues for the international business community.

ABIC and ABIR’s primary concerns, as summarized in their written submissions, include:

  • To ensure a stable and democratic outcome, ABIC and ABIR strongly support the use of a referendum on the question of independence. Their written submissions include information regarding the long history of referendum use to determine questions of sovereignty. They would also support an accelerated timetable for such a referendum in order to end the uncertainty associated with this discussion.
  • Any alteration in the Bermuda market’s relationship with the commercial law, legal apparatus, appellate process and continued common law development of the United Kingdom legal system, with which international business partners are comfortable – and/or the risk of intersection with other judiciary systems less central to the international financial services sector – could impair Bermuda’s international business.
  • The materially increased costs of independence will result in higher taxation and other costs for companies, employees, and business partners, at a time when other dynamics already threaten the cost competitiveness of doing business in Bermuda.
  • Concern over the issues of nationalities and passports, and the prospect of Bermudians losing UK citizenship and the right to live and work in the EU, where many of our members have overseas operations.
  • Concern over the prospect of significant and potentially adverse changes, via newly defined and uncertain processes, to the regulatory regime in which we currently operate, and which has served Bermuda well.
  • Concern that membership in CARICOM would be negative for Bermuda and the Bermuda business community. Joining CARICOM would be costly, and none of the resulting economic ties would materially benefit Bermuda’s international business sector, for which the US and Europe are the largest markets.
  • Concern on sustaining the real value of the Bermuda dollar.
  • ABIC and ABIR’s written submissions point out that the decision to go independent is irrevocable.

 

ABIC and ABIR clarified that this press release and the written submissions referred to above are the only materials which should be attributed to these organizations, until such written materials are updated or supplemented by them. Additional copies of these submissions are available, free of charge, as follows:

With respect to the ABIC submission:
ABIC
P. O. Box HM 655
Hamilton HM CX
Telephone (441) 295-8932
Fax (441) 292-5779

With respect to the ABIR submissions:
ABIR
XL House
One Bermudiana Road
Hamilton HM11
Telephone: (441) 294 7221
Fax: (441) 296 4207

 

Attachments:
ABIC’s Submission
ABIC’s Submission 1
ABIC’s Submission 2