Business partnership laws are to be revamped to make sure Bermuda stays competitive.

The Throne Speech explained that the changes would maintain the Island’s position as an offshore business leader.

The speech, delivered by Governor George Fergusson on behalf of the Bermuda Government, said: “New amendments to partnership laws will provide greater flexibility and certainty with respect to partnership activities, rights and remedies, structural conversions, re-domiciliation and the impact of specific events on the continuity of partnerships.”

The speech added: “Legislation will be introduced to modernise Bermuda’s current legal position on third party rights, giving the jurisdiction maximum flexibility to meet the needs of the market and to match similar rights already enacted in other jurisdictions.”

The Throne Speech, read at the grounds of the Cabinet Office at the start of the new Parliamentary session, stated that amendments would also be made to axe legal restrictions on how long property could be held in trust.

Mr Fergusson said: “It is anticipated that the establishment of a clear and cost-effective approach for Bermuda’s courts to change or eliminate certain restrictions on property held in trust will grow Bermuda’s trust business along with the services required to administer them.”

He added that the Ministry of Economic Development and the Bermuda Business Development Agency were working with the private sector to “strengthen Bermuda’s competitiveness worldwide, diversify the economy and contribute to the Island’s economic growth and job creation”.

There was also a pledge to introduce a new regulatory regime to open up the market as “part of a strategic plan to allow competition in on the generation of electricity and to ensure Bermuda’s electricity service is environmentally sustainable, secure, reliable and affordable.”

Mr Fergusson said that new legislation would also be introduced to regulate the use of fuels and get a better deal for power users.

He added: “Currently, the regulation of fuels is minimal and not transparent to the consumer.

“The legislation is intended to facilitate the purchase of cleaner, less expensive fuels to ensure efficiency in the generation of electricity and to make sure these costs and efficiencies are reflected in consumer pricing.

“Better regulation can mean lower prices and help support Bermuda’s goals in greenhouse gas emissions.”

The Government signalled that a tender would be put out to create a massive solar power site at the airport’s disused “finger”, which could provide up to 20 per cent of the Island’s peak demand for power during daylight hours.

The real estate industry also came under the spotlight, with plans to put it under the Registrar of Companies as a regulator.

Mr Fergusson said: “This initiative will ensure Bermuda’s real estate sector is compliant with programmes recommended by the Financial Action Task Force, a 36-country body that sets standards to combat money-laundering, terrorist financing and other related threats to the integrity of the international financial system.

“Passage of the amendments will help protect Bermuda’s reputation as a first-class offshore financial system.

“The legislation will ensure that brokers and agents involved in such transactions operate in a clear and fair regulatory environment that protects the public.”

The Throne Speech also announced that Customs duty would be amended in line with the Island’s commitment to the America’s Cup competition, scheduled for 2017.

The company set up to facilitate the event, ACBDA, will also be exempt from paying land tax on property at the Royal Naval Dockyard, a major hub of the event’s activities.

The Island’s tax system is also due for reform, with recommendations from the Caribbean Regional Technical Assistance Centre (Cartac) under review at the Ministry of Finance, the International Monetary Fund and by Cartac.

New standards will also be set for insurance intermediaries and asset managers, in line with best practice elsewhere.

The Government will also act to boost the Bermuda’s financial stability standards, with legislation to “focus on improvements to Bermuda’s recovery and resolution framework for banks”.

• For the full text of the Throne Speech and a full outline of planned government initiatives, click on the PDF links under “Related Media”.