Allen says there is a need for anti-trust legislation
operators and a competitor who runs tour desks at Bermuda's largest hotels shows the need for anti-trust legislation on the Island.
Mr. Allen said he raised the Bermuda Island Cruises Ltd. controversy in the House of Assembly prior to the 1993 general election, "expressing concern...that some of the boat operators were being locked out.'' "It certainly appears to be a restraint on free trade and a conflict of interest,'' he said of BIC's dual role.
Through its main company and an ownership stake in Reef Roamers Ltd., BIC controls five glass bottom boats and motor yachts. BIC also operates the tour desks at six large Bermuda hotels, which book visitors on tour boats and a range of other activities.
Some operators have complained visitors are steered away from their boats to ones favoured by BIC. Not only are they placed at a competitive disadvantage, but visitors get an incomplete picture of activities the Island has to offer, they said.
When he last complained, Mr. Allen said Tourism Minister the Hon. C.V. (Jim) Woolridge told him such situations were bound to exist in countries as small as Bermuda.
"We do not take that point,'' Mr. Allen said of the Opposition Progressive Labour Party. "It's even more important in a small jurisdiction to assure everyone does get a fair slice of the pie.'' "The United Bermuda Party should initiate some kind of inquiry or committee to investigate some kind of anti-trust legislation.'' Mr. Allen said he was particularly concerned by BIC chairman Mr. Donald Morris' statement that boat operator Mr. Joffre Pitman was "trying to chop off the arm that feeds (him),'' by publicly voicing his criticisms.
"There's a very strong implied threat there,'' Mr. Allen said. "It's not very subtle.'' And Mr. Allen said he was "astonished'' by BIC president Mr. Derek Morris' comments about mark-ups to clients' restaurant bills on group Dine-Around programmes. "Sometimes the higher, the better,'' Mr. Morris told The Royal Gazette . But "the client pays, not the restaurant.'' Mr. Allen said the statement was "very irresponsible''.
"We shouldn't be trying to sock incentive groups...any more than individual tourists,'' he said. "To say one doesn't care how much they pay concerns me a great deal.'' When questioned about the controversy, Mr. Woolridge said "where there's smoke there's fire'', and he hoped hotel managers would assure that companies holding tour desk contracts were "not acting in any way that could be detrimental''.
Mr. John Harvey, executive vice president of the Bermuda Hotel Association, said boat operators raised their concerns with him about a year ago and BIC later assured him the concerns had been resolved. He did not anticipate the BHA taking any further action.