Ireland poses threat March 4, 2000
Perhaps you have noticed that not one of our elected officials is directly involved in international business. So be concerned that they don't know that companies are already just quietly moving resources to places like Ireland where taxes are low, labour is plentiful and key executives are welcomed.
Ireland is aggressively seeking businesses and their leaders as the teachers for their future generations and to raise their country's overall level of opportunity. Think about the fact that Ireland, previously one of the poorest nations in Europe, is now a major competitor for Bermuda's international business and is already attracting our key companies and people.
Are you worried like me? You should be, because we have begun to strangle the most promising business segment that we could all depend on for our children's future opportunity. During good times it is also easy to forget that as Bermudians we have nowhere to go if we get it wrong and we lose our international business advantage.
JBB Warwick Disturbed by Expat CEO March 1, 2000 Dear Sir, I was most disturbed by the letter headed "Expat CEO speaks out'' in today's edition of The Royal Gazette . While this letter contains a number of very valid and important points, I believe the message is lost and completely negated by the tone of the letter and the obvious anger of the writer.
Unfortunately the approach of all of us in Bermuda today is to take extreme positions and lash out at others with whom we disagree. Instead we should be trying to understand each other's perspective and have a constructive dialogue to bridge differences between us.
Like the writer I too am a CEO, but of a small local company. My company sells little directly to the international companies operating in Bermuda but I am well aware of the "multiplier'' effect and that the success of my local company is very dependent upon the international companies. If the international companies leave Bermuda, the revenue of my local company will be drastically reduced. I will have no choice but to lay off staff and/or significantly reduce the salaries of my employees, all of whom are Bermudian.
The profit and dividends, if any, accruing to the shareholders will decline.
My own personal income will be significantly reduced and the future well-being of my children put in grave doubt. At present I am very worried that Bermuda will experience an exodus of international companies.
On the other hand, as a Bermudian I take real exception to the vary disparaging comments that `An Expat CEO' makes about Bermudians and local companies. Expat is quite correct that my company does not donate anything like $500,000; that is more than 25 percent of the annual revenue of my company. Many of the international companies operating in Bermuda are billion dollar companies. There is no way that my company can match in absolute terms the amount of money that many international companies are able to give. You will not see my name or the name of my company on many plaques around the Island as it is normally those donors who give large absolute amounts who have their names listed. but this does not mean that in relative terms we do not do our bit. My family and I, as a number of Bermudians do, donate a healthy portion of our income and time to local non-profit organisations. In addition, like many other Bermudians I know, we prefer to do our bit quietly and anonymously.
I am well aware that "An Expat CEO'' and all international companies can leave Bermuda and relocate somewhere else at very short notice and as a Bermudian I do not have that luxury or choice. Therefore I am also aware that Bermuda needs the international companies and that it is not the other way around. On the other hand "An Expat CEO'', by his own admission, has lived 20 years in Bermuda and given a substantial amount of his financial resources and time to the Island. He obviously has a real commitment to and probably love of Bermuda and has, I suspect, as much wish as I and most other born-Bermudians to see Bermuda has a healthy and successful future. So we do need each other, we do need to work together and understand each other to achieve our shared goal.
I would ask that "An Expat CEO'' and others like him in the international business community try to understand the concerns. some legitimate and some not, of Bermudians. While I deplore some of the extreme statements of Government Ministers such as Arthur Hodgson and Terry Lister and activists like Stuart Hayward, we do have to be aware that a large influx of outsiders into any community creates social strains and tensions. While I was a student in Canada I was well aware of the almost xenophobic fear the Canadians had towards Americans. A cursory review of overseas media will show the concerns expressed in Britain and other European countries about the influx of foreigners.
Even in the United States, a country that openly welcomed and was built by immigrants, we see today concerns expressed about the level of new immigrants.
the concerns expressed by many Bermudians about the influx of expats resonate internationally and cannot be ignored or swept under the carpet.
Unfortunately the anger expressed by "An Expat CEO'' will inflame these concerns. The lecturing and almost hectoring tone of CEO's letter will turn off Bermudians and so they will not hear the important message for all residents of all Bermuda contained in his letter. I suggest that all of us, Bermudians and expats alike, stop the one upmanship and nasty attacks on each other, treat others with respect and learn to work together for the best future of this fragile island that we are lucky to call home.
GEOFFREY FRITH Pembroke Debate is long overdue March 01, 2000 Dear Sir, In reply to Expat CEO, I once wrote the following: "Imagine, if you will, that tomorrow millions of Germans and Frenchmen woke up to find out that 19 percent of their workforce was made up of, say, millions of Africans. Not two percent, not three percent, but 19 percent of their total workforce.
Compared with Bermuda, the corresponding percentages in Germany and France are relatively small, yet we have witnessed in both countries the rise of extreme racist and/or nationalist parties and sentiment. In some cases, even violence has been used as an expression of dissatisfaction.
While Bermuda has been able to avoid the extreme excesses witnessed in Europe on the question of immigration, we have not been immune entirely from the consequences of developing an economy that appears by its very nature to require -- as alluded to earlier -- an over-reliance on foreign labour.
In addition it would appear that when one factors in demographic trends, i.e.
an ageing local population, coupled with even modest projected growth in the International Business sector over the current decade, the percentages of non-Bermudian workers in the workforce will likely increase.
Granted, in some ways it is inaccurate to compare the economies of Europe with that of Bermuda. However 19 percent is still 19 percent. To some outside observers it is remarkable that resentment levels are not more pronounced than they are.
No one denies that International Business has contributed greatly to the Island's economic well being. Companies such as ACE and XL and their respective CEOs, the two Brians, have been exemplary in their efforts to foster a positive relationship with Bermuda and its people. And they are not alone.
Outside of the issue of the sheer number of foreign workers in the workforce, there have been other factors that have bred resentment: 1) Due to a lack of strategic planning, endemic racism and greed, successive UBP Governments failed miserably in preparing Bermudians, particularly African Bermudians, to take their rightful place within the International Business sector of our economy; a glaring failure when one considers that from the late 1970s, it was apparent that this sector of our economy was growing and growing rapidly.
2) With the decline of tourism many Bermudian workers now find themselves marginalised and essentially unemployable in the only sector of our economy that has experienced real growth.
3) The International Business Community has fuelled and continues to fuel an unprecedented rise in the cost of living in Bermuda, directly impacting on the working poor who find it increasingly difficult to cope, i.e. housing, etc.
4) The Country has become too reliant on International Business for growth and as a generator of foreign exchange earnings. Let's face it, we no longer have a two-leg economy, at least not one that is balanced between International Business on the one hand and Tourism on the other.
This has serious implications not only economically but politically as well.
Nothing illustrates this better than the calls of retailers over the years for the International Business sector to carry its fair share of the local tax burden. Calls that have come from even the likes of Eldon Trimingham of Trimingham Brothers and others who have consistently noted the imbalance and how that has negatively impacted and distorted the Bermudian economy.
Because of space constraints, I close with an excerpt from a letter to the Editor written by Mr. David Wisemann that was published in The Royal Gazette on January 23, 1997: "Everyone knows that offshore financial services have displaced the tourism industry as Bermuda's principal source of revenue. It may not be equally plain that these two businesses are incompatible in three respects: land use, services and morale, Bermuda is less attractive to tourists because it is overbuilt and excessively used: more office buildings, more homes, more cars and traffic.
"Services designed for tourists are displaced by more lucrative services for business people (e.g., hotel properties converted to condominiums). Morale ("friendly Bermuda'') turns business-like and cynical: the one, because efficiency makes time and patience costly, and because the solemnity of expatriate businessmen sets the standard for many kinds of personal exchange; the other, because people know that vast amounts of money are made, and that others make more of it than they do.
Tourism requires the space and ease that Bermuda no longer has to spare.
"Its future pillars are small, expensive enclaves, cruise ships and business travellers who stay for the weekend.'' In defence of Ministers Hodgson and Paula Cox, this is a debate that is long overdue.
ROLFE COMMISSIONG City of Hamilton Wealth doesn't come first March 1, 2000 Dear Sir, An Expat CEO writes (March 1) "put a gag on xenophobic windbags like Arthur Hodgson''. Since Arthur Hodgson was democratically elected, it is evident that the writer is arrogant enough to believe that in exchange for the great wealth he is bestowing on Bermuda we should forego democracy and political representation. If this great wealth was shared equally by all it might even be considered by some a fair exchange. But it is not.
Thus those who are homeless because of high rents resulting from the presence of expat CEOs and those who feel the stress resulting from the frustration of seeing expats' luxurious lifestyle in comparison to their own, and the pressure of ever-increasing traffic and those who experience the problems of drugs and incarceration resulting for the tremendous disparity in the distribution of wealth and education might agree with the "ridiculous remarks'' of the Honourable Minister of Environment. They may believe that the price which they are paying for the "artificially high standard of living'' of others is such that they do not want it increased by an ever increasing number of wealth producing expat CEOs.
Most of us might even be enjoying a higher quality of life if we had put a cap on this ill-advised ever expanding economy long before now. We do not all need a swimming pool and a BMW.
Many Bermudians, more content than we are, lived and died without ever leaving the Island. We should not have missed what we never had.
EVA N. HODGSON Crawl Solutions for tourism March 6, 2000 Dear Sir, Our Tourism Minister in Friday's Royal Gazette states that Bermuda Tourism requires mouth to mouth resuscitation. Everyone in Bermuda would agree.
The Minister also said the Bahamas and Puerto Rico had been creating new opportunities for investors, while Bermuda remained dead in the water.
These resort destinations have several advantages: 1. Low competitive air fares.
2. No restrictive charters.
3. Casinos, which provide something for guests to do, and the funds for live entertainment.
4. Warm winter weather.
5. These conditions assure investors of a substantial return.
What can we do in Bermuda? First and most importantly is the lack of competitive airfares and until this is rectified there will be no significant increase in air arrivals.
The 20-year decline coincides with the deregulation of the airline industry by President Carter, and the full effects were felt in the 1980s.
Prior to deregulation Bermuda had the lowest air fares which was based on mileage and not by competition.
There are thousands of associations in North America that have at least one meeting annually and sometimes more. To take advantage of this type of group business Bermuda needs a proper convention bureau, which would be headed by an executive who has had 15 to 20 year's experience, and has hundreds of contacts.
Most conventions meet in the fall, winter and spring, which is just the time Bermuda needs help.
A Government-owned casino would provide evening activities and also funds for live entertainment. The hotels should be allowed to operate slot machines which are the most profitable element.
Senior citizens sit for hours which they enjoy. The Hamilton city parking lot is an ideal location to provide additional parking space on underground levels. A convention hall seating about 2,000 persons and the upper floors for a casino, entertainment and fine dining.
CONRAD ENGELHARDT Paget P.S. Very recently Virgin Airways advertised in the New York Times a $99 fare New York to London effective during the month of February and slightly higher air fare during March. Not to be outdone British Airways advertised an $89 fare from New York to London.
British tourism is at the highest level and the top luxury hotels in London have rates around 500 ($760).
A lot of hot air March 2, 2000 Dear Sir, Another year has come and soon the warmer days will be here and nothing has been done about the CedarBridge School's air conditioning plant. Right now as I write I can hear it plainly in my home on Mary Victoria Road; what a noise.
We may as well be living near the electric plant.
This is a Government estate and the school is Government-owned; have they no idea how disturbing the noise is. This is a new school and one expects a silent plant in the 90s.
I invite the school board to come and hear it. Why is it on at school when the day is over? A PROSPECT OWNER Devonshire A simple solution March 2, 2000 Dear Sir, Perhaps if I write to you, some people will see themselves.
Supermarket car parks -- you see shopping carts left anywhere the user decides to abandon them, on the grass, in a parking bay, etc.
One solution: if every able-bodied person arriving would push just one cart back onto the store, everybody would be happy! JB RICHARDS Devonshire