Swan: big changes needed to boost our economy

WEDNESDAY, JULY 13: The next election is less about who wins and more about which party is willing to make the necessary changes to keep Bermuda economically afloat.

This from Sir John Swan, who warns that there are few signs of economic recovery in Bermuda.

He has reiterated his view that we need to open a casino, reform the 60/40 business ownership rule and relax rules on foreign ownership of homes, to make the island more attractive.

“All the indicators I get is our foreign exchange earnings must have fallen — and these are a major component of our economy,” he told the Bermuda Sun.

Move swiftly

“The world has changed and will continue to change. The western world will no longer enjoy the luxuries it had in the past.We have to move swiftly and put in place the kind of things that Switzerland and Singapore have been doing.

“We no longer have the privilege of saying to people what they can’t do. It’s what we must do in order to look after our people.”

Unemployment levels are rising, Sir John said,  and there is “a level of disconnect, on a local and international basis” about the lack of a strategic plan on how the island will move forward.

Sir John said that the way in which economic challenges are met is more important than whichever party forms the next government as they will face the same issues.

The island needs to look at how to attract new international business and to ensure that Bermudians benefit.

Sir John said: “We have to look at things that are going to give us growth so that the economic benefits can filter down, not only to the skilled, but the unskilled. But we need a certain critical mass to do that.

“I’m leery of anyone who says that increased economic activity is unsustainable because what we’re finding out is that decreased economic activity is producing side-effects which are not in Bermuda’s best interests.

“We have to be able to afford to provide programmes which will help people in their economic plight. There is a correlation between economic activity and a social conscience that will allow us to help people who are in economic difficulties.

“If we want to see people sit in school in Bermuda with the object of going abroad to school, provide for the healthcare of our citizens and look after our seniors, rather than seeing these things eroded away, we should be enhancing them.

“At the moment, a lot of people are unemployed and a lot of people are uninsured because as they become unemployed, the insurance goes too.

“That puts a further burden on government and — more important — a neglect of health which will only create another burden later.

“We have to start looking at many areas of our economy — we will have to look at a casino and evaluate the 60/40 rule. We need to operate on an international scale rather than protect a few failing merchants.

“We have to look at providing people with wealth the opportunity of ownership of condominiums under certain conditions, which the country will get tax benefits from, and also the development of condominiums on a large scale with mini-hotels attached to them.

Boutique hotels

“I don’t think we’re going to get the big hotels back — what we will see is smaller, boutique hotels supported by condominiums.

“People should be able to buy these condominiums, domicile themselves in Bermuda and contribute to the economy. They should also be allowed to bring their boats, their planes, their toys without tax. All these things will improve the lives of Bermudians.”

Government on Friday approved the granting of Bermudian status to critical personnel like CEOs and owners in overseas companies after 10 years.

Sir John said: “Status should be available for people who have made a significant contribution and we can put a limit on the number of people involved. People get status if they have been married to a Bermudian for a certain period of time without necessarily having contributed very much to Bermuda.”

He added that Bermudian status grants would boost licensing fees for Government, construction and employment.

Sir John said: “It’s not going to take a lot to move this economy forward, but we can’t sit as we are now, maintain the status quo and have the means to look after our people because there are fewer and fewer finances available.

“We have to step across that line and that’s more important than an election and who wins, because whoever wins will have to do these kinds of things, anyway.

“We are at stage now that we owe it to the public to issue a manifesto sooner rather than later that will enhance the welfare of our people.

“That should be a continuing factor in how we do business. I’d rather have growth than debt — and that debt has to be paid back. I’d like for us to have growth in order to get out of that continuing debt process and that growth will also help create employment.

“We are well placed to do this. We have an educated population, we have a good relationship with the outside world. We have an existing infrastructure that can accommodate growth and development space available.”