PLP asked to state economic policy
public so businesses won't remain in a cloud of uncertainty if the party wins the upcoming general election.
"We have seen and heard from one side only,'' Chamber of Commerce president Michael Smith said yesterday. "The business community is anxious to know what the PLP's position is in terms of the business environment. It's important that the business environment is not disrupted. There are some fragile sectors.'' He said the retail sector, for one, is under stress due to the decline in tourism and overseas competition. Businesses in the tourism sector face a shakeout, with some failing and others declining in size. Other sectors need to know what lies ahead so as to be able to plan.
"Businesses have to have a comfort level that major programmes initiated by a PLP government don't result in adverse changes,'' Mr. Smith said. "We need to see what they are going to do.'' He also said the organisation disagrees with the UBP's statement that electronic commerce could become the third pillar of the economy. Instead, Bermuda's economy is built on tourism and that's where the focus should remain.
"Tourism is the foundation of business in Bermuda,'' he said. "Without that foundation being healthy the rest of the economy is going to be in serious trouble.'' Nevertheless he believes electronic commerce should be promoted. He called on Government to move quickly with its plans to implement legislation that makes Bermuda an attractive location for such business. Other jurisdictions are in competition with Bermuda for the business.
"Electronic commerce requires a sound legislative and regulatory framework,'' he said. "...We need that regulation and legislation in place.'' He also noted that the Organisation for Economic Cooperation and Development did not consider electronic commerce as a target for its attack on what members call harmful tax competition from tax havens.
Bermuda would therefore not be in danger of being on the OECD's hit list just because the Island began promoting itself as a site for electronic commerce companies.
"Electronic commerce is not viewed by the OECD as harmful tax competition,'' he said. "It is viewed as a positive. They are very supportive of the continued development of electronic commerce.'' PLP Shadow Finance Minister Eugene Cox could not be reached yesterday.
Mr. Smith was answering questions after he released the results of a Chamber of Commerce survey of its 750 members. The 150 members who replied indicated they wanted more input into Government policy and legislation. They also wanted more information about upcoming changes in policy and legislation.
The membership also recommended the Chamber of Commerce focus primarily on issues involving Government taxation of business, the retail and hospitality services, and on education and training.
Mr. Smith said over the next year the Chamber will focus on working more closely with Government and organisations in the tourism sector. The Chamber also plans to "explore'' the issue of British citizenship and Bermuda's relationship with the UK.