AVERAGE HOUSING REACHES $1.6 MILLION

Sometimes it's not enough just to have a place to lay your head, most people want a place of their own to lay their heads. The topic of housing kicked off the year when it was announced that the average cost of a house in Bermuda was $1.6 million in 2006 and more and more Bermudians were turning towards condominiums.

That translated into a 30-year mortgage of about $11,400 a month at current interest rates. The good news was that the inventory of houses available was at an all-time high. Environmental activist Stuart Hayward urged Bermuda to stop the "insane" home cost spiral.

Mr. Hayward said the constant drive to expand the economy and boost tourism was creating a market where only the very rich could afford to buy a house.

"It is out of reach of even the wealthiest among the middle class. It is a testament to one aspect of development in Bermuda that's just not sustainable. If the price of housing gets so high that many people are inadequately housed, you are really striking a blow against the order of every facet of the community."

But former Premier John Swan disagreed with the average price of a home in Bermuda, saying that the sale of several large properties had distorted figures. He wanted to see averages for homes in certain categories.

"Slowing down the economy does not solve the problem," said Sir John. "If you tinker with the economy then you could end up losing what we have."

GWYNETH RAWLINS QUITS UBP

In 2007, the United Bermuda Party was in for some turbulent times, with several prominent members leaving in disgust. One of the first to go was Gwyneth Rawlins, Chairperson of the United Bermuda Party. She tendered her resignation on January 18 as Party Chairperson to the Central Executive Committee, and also relinquished her membership in the Party. She cited her chief reasons for resigning as an inability to work in an environment that had become increasingly uncomfortable because of disrespect and one that did not allow her to grow politically. Ms Rawlins was the Party's first female Chairperson in its history.

In January, before Mr. Simmons resignation, he struggled to keep his Pembroke West seat from party rival Erwin Adderley, who lost an earlier bid to replace Mr. Simmons.

Mr. Adderley, 67, was a former transport minister. Mr. Simmons was accused of neglecting constituency issues — a charge he denied, and canvassing with family members who supported the Progressive Labour Party. After a special UBP meeting, it was announced that Mr. Simmons wouldn't run in the next election, and he later resigned from the party. The UBP's Maxwell Burgess also announced he would not run in the next election.

BRITISH AIRWAYS THREATENED–WITH DISRUPTION

British Airways (BA) flights to Bermuda and other parts of the world were threatened with disruption as talks between BA management and 11,000 crew members ground to a halt throughout January. Issues on the table included sickness, pay and staff. The strike was averted at the last hour.

Statistics

Cost of the new Southside, St. David's police station: $2.8 million.

Bermuda's gross domestic product expanded by 9.1 percent in 2005, giving Bermuda residents the highest per capita GDP in the world.

Bermuda's demand for energy was expected to rise 1.5 percent annually over the next 20 years.

Violent crime was at its highest point in seven years following an increase in attacks by gangs and individuals across Bermuda. As of January there were 93 violent crimes in the last three months of 2006 — more than the corresponding figures for each of the previous six years. In 2006 the number was 70, while in 2004 it was 78.

Cheaper airfares and lower gas station fuel prices were part of the reason for a monthly inflation rate dropping from 3.4 percent to 2.8 percent between December and January.

Consumer Price Index figures released in March showed a fall in clothing and footwear prices in January. Women's fashions recorded the biggest fall with prices dropping by an average of eight percent, while men's clothing also became slightly cheaper.