HEN we Bermudians voted the Progressive Labour Party into power, they made many promises that have not been fulfilled including their pledge to be a transparent Government. All we Bermudians have seen since they came into power is a lot of smoke and mirrors. It is time now, before it is too late, for some answers from our Government!

I am writing as a Bermudian seriously concerned with the future of our island. I did not go to college or university ? I, like many other Bermudians, left school young and made my way up the ladder through a combination of common sense, hard work and opportunity.

Being born Bermudian is about the luckiest start in life I can imagine for anyone; being born into such a generous, kind and loving community with such strong foundations as Bermuda, has enabled an exceptionally high percentage of our people to embrace the opportunities afforded to them educationally and professionally and to thrive and flourish, particularly so in the more recent years of our island's history.

With a solid economy, a track record of steady and constant growth and development under the management of a stable and (in large part) honest and responsible Government, our real estate values and our standard of living climbed consistently despite the rest of the world's economic ups and downs. I would say we have been a pretty blessed people generally speaking.

I am not trying to gloss over, ignore or minimise our vitally important social issues thatparties have failed to manage well in their long-term planning: the most serious being housing, health care, our elderly, education, employment for our youth, etc., but I am looking at the overall "Bermuda" and what standards of living we enjoy in comparison to most of the rest of the world ? we are so fortunate).

When I first read last Thursday's news that "New legislation closes property loophole", my knee-jerk reaction was that a drastic decision had been made by the Ministry of Labour & Home Affairs born of their frustration in trying to safeguard Bermudians and our land against one (relatively small) problem: false trusts fronted by Bermudians on behalf of non-Bermudians to avoid the 22 per cent purchase tax which makes up essential revenue for our country and/or to purchase houses not available on the non-Bermuda market.

Very quickly, however, it dawned on me; the ramifications of this decision by Government and the negative impact it will have on ALL Bermudians is so huge, I believe we are being misled by Government's statement that this policy is primarily intended to stop illegal trusts.

Yes, it may go some way towards accomplishing that (if, in fact, anyone out there is still stupid enough to consider becoming involved in an illegal trust situation) but think about it: look at what the real impact of this policy change will be by looking beyond the "surface" intention of Government. We as Bermudians need to start asking some questions very loudly and demanding some answers. There is no way this policy change begins and ends with the trust issue.

I appreciate that Government has had an onerous task on its hands trying to expose these illegal trusts but it appears this is largely a problem of the past. I would imagine the opportunity for getting around the restrictions put in place to protect Bermudian ownership of our land may have presented it self firstly some years ago when our former Government opened up the opportunity for foreign lending to Bermudians.

I remember rumours back then that some non-Bermudians were trying to circumvent the law and save on the purchase tax. IO am sure there were any numbe of very naughty slip-slides around the law designed to avoid the purchase tax and/or to enable a non-Bermudian to dwell in a Bermudian only category house or condo. Of course, this is totally unacceptable. I applaud our Government for investigating and cracking down on this illegal practice and putting a stop to it by exposing it so publicly.

Bermuda has to get revenue somewhere and the 22 per cent Purchase Tax payable by non-Bermudian buyers of Bermuda homes and 15 per cent on condos (in the already very limited pool of houses and condos from which they can purchase) represents a very important contribution to our economy.

But according to every realtor I have spoken to in the last week, this s is a crime attached to the last century, not the current one.

Ever since Government so rightly exposed it, it seems to have died its death. In my humble opinion, this is NOT ultimately what this policy change is all about. I am not saying there may not still be some illegal trusts in existence ? I am saying that I don't think they any new ones are being created.

I don't understand. Has anyone from Government approached the Real Estate Division of the Chamber of Commerce or any member of the real estate profession, for that matter, for some input about the drop in non-Bermuda sales before making such a hugely important policy change (ostensibly to avoid the trust scams they feel are going on all around us)?

I have asked around and have heard consistent feedback that Bermuda simply has not had the same level of overseas interest in purchasing locally of late that we were enjoying a few years ago. The truth of the matter is the real estate market anywhere is like a pendulum swinging. Sometimes it is up in some sectors of the market, other times it is down. Sometimes it all goes up, other times it all levels off. Historically, the only thing our Bermuda real estate market done before is to go down in value! Interesting.

Of late, our real estate market values have mushroomed with local sales going through the roof; unprecedented prices are being achieved. Construction is booming, Bermudians are working in full force, the banks are lending, and it is a real bull market out there. Not, however, in the non-Bermuda market, as I have heard from numerous real estate agents I have asked. As Buddy Rego stated, most of the sales on the non-Bermuda category houses have been to Bermudians, flush with the success of our own independent booming Bermuda economy!

It is wealthy people world-wide who are simply not in buying mode of late (influx of new international clients seeking to purchase holiday homes or set up residence in Bermuda has dried to a trickle compared to a few years ago). Is this unique to Bermuda? No. Just ask those who own homes they are trying to sell in the Bahamas, for example. The sales market there in the multi-million-dollar level is down too.

Why?

As a layman, I would take a guess that the very rich make their decisions to spend or not spend depending on what is going on in the world politically and economically ? as we all know the last few years have been pretty horrendous ? and the very rich become so by being very astute when it comes to investments.

Wealthy people are doing what they always do in turbulent times ? they have pulled in their horns and are riding out the storm. When things settle down again, the wealthy will once again come out to play and they will look to buy in Bermuda, the Bahamas, Barbados and numerous other destinations once again. Only, not right now.

It is just the real estate pendulum swinging NOT the fact that there are all these secretive trusts being formed left, right and centre. Look back over the last couple of decades ? I warrant you will see similar trends, peaks and troughs, in sales to non-Bermudians.

The trust scam is a great "reason", on the face of things, for making this policy change but what are the long-term implications for us Bermudians?

Government has stated publicly that revenue from non-Bermuda sales is down over the last five years, but how much is Government revenue UP by way of all of the Stamp Duty paid by Bermudians who have been buying and selling up a storm in our strong local market (which until Thursday's paper showed no sign of abating).

I don't think for one minute that this policy decision will benefit the majority of Bermudians in the long run. Here is what I see as some of the effects of this policy change:

The value of Bermuda real estate at the top end of the market will drop dramatically. Per capita Bermuda is presently the wealthiest country in the world, but those Bermudians who currently own or have inherited top-end homes or those who have worked hard all their lives to become successful and have finally been able to afford to buy or build for resale a house at the upper end of the housing market, together with a huge percentage of the condo market, are now holding real estate that is worth only as much as a fellow Bermudian is willing to pay for it.

many Bermudians does this immediately affect? How does the restriction of a Bermudian's right to sell these high-end houses and hundreds of condos to anyone other than Bermudians, benefit Bermudians?

I would like that explained to me because as far as I can determine, it doesn't benefit Bermudians in the short term or the long term. In fact, I believe it is going to firstly hurt anyone and everyone who is currently a property owner ? whether you're holding a house, piece of land, or condo ? then the effects will filter down and ultimately negatively impact on all Bermudians. When property values fall at the top, there is a mudslide effect and it ultimately filters down throughout the whole market. Bermuda real estate available to be bought and sold by only Bermudians will surely now begin to devalue.

If you ask me, this policy discriminates against Bermudians. It is not only slicing Government's potential revenue source from licence fees down enormously from where it lay previous to this policy change (all these current non-Bermuda houses and condos owned by Bermudians that can now only be sold to other Bermudians will not bring Government its "much needed revenue" generated by the 22 per cent and 15 per cent purchase taxes) but it has just eliminated a huge percentage of its opportunity to gain revenue from this source.

Government has just dictated that the value of our properties ACROSS THE BOARD ? from affordably priced condos and small cottages to multi-million-dollar properties ? are restricted totally by our fellow Bermudians' capacity to pay whereas non-Bermudians are now afforded an excellent opportunity to benefit enormously from what will surely be a dramatic INCREASE in the value of their real estate because they are now part of a VERY small pool of non-Bermudian home owners that can sell to other non-Bermudian buyers!

With this policy change, only our non-Bermudian guest residents will have access to all those international millions that have heretofore also been available to Bermudians to benefit from ? (and we did all benefit one way or another; whether you are invested in the most expensive or the least expensive piece of Bermuda real estate, even if you own no real estate whatsoever, those millions of dollars landing on our shores that otherwise would have gone elsewhere end up benefiting all of us! Remember ? it all filters down).

Now, our Government is telling us that we are no longer entitled to the opportunity to truly maximise our investment in Bermuda real estate that we so believed to be the best investment out there! We have after all been investing in our own country. How do you all feel about that? Hm?

What path are we being embarked upon? Are we already on the path towards Independence? Will this policy change be followed by currency controls and the devaluation of the Bermuda dollar, then the introduction of income tax, further devaluation of Bermuda real estate? Is our Government taking us on a journey towards becoming part of a Caribbean nation? I hazard a guess that this policy change with regard to Bermudians' right to sell to non-Bermudians is only the tip of the iceberg. I don't know about anyone else, but my knees are knocking.

Is this REALLY in our best interests Bermuda? Please will someone in Government explain to me and to the rest of Bermuda how, apart from eliminating the trust scam, Bermuda and Bermudians will BENEFIT from this policy change?

How can Government say on the one hand it is making this policy change so it doesn't miss out on revenue from license fees when in one fell swoop it has wiped out the majority of this area of revenue itself by reducing the market size for overseas buyers so drastically! It is just absurd!

It will not benefit the Bermuda economy when a non-Bermudian with his millions of dollars is no longer able to buy that multi-million-dollar house from a Bermudian. We will be missing as a whole the injection of that wealth into our island's economy. The non-Bermudian will instead pay his off-shore money to another off-shore recipient and off they will go; Bermuda will see none of it.

To all of us hard-working Bermudians who believed in Bermuda's future and have scrimped and saved and mortgaged ourselves to the hilt to invest in our real estate market and take advantage of good rents being paid by our guest workers ? Government is now saying "Sorry, we have decided to make a policy that dictates that your property is now going to be worth considerably less than you paid for it". How does that make you feel, Bermuda?

If what our Government is trying to achieve in making this policy change is to stop Bermuda trusts from being formed through which non-Bermudians can channel their money as "lenders" into purchasing real estate illegally, why on earth would it make a decision that will so dramatically and devastatingly negatively impact on ALL Bermudians across the board rather than implement a much more specific way of stopping these illegal trusts?

If the trust issue is what our Government is looking to safeguard against, is there not a simpler way to achieve this that will not have such devastating effects on all of us? Can't we explore perhaps a law being passed that ANY Bermuda trust or Bermudian private purchase of Bermuda real estate must be made with Bermuda generated dollars? (With exceptions such as monies received by Bermudians by legitimate inheritance from non-Bermudians or Government approved commercial/office developments with overseas participation or Government approval or undertaking of housing developments for the benefit of Bermudians that may have to be financed overseas).

that this may be difficult on the face of it to police, but if it were legislated, a legal document provided by Government could be appended to ALL Bermuda market only sale and purchase agreements which must be signed by the purchaser swearing that the funds used for the purchase of Bermuda real estate by the trust or private individual were obtained through legitimate Bermuda enterprise, inheritance, or a private Bermudian lender or local lending institution and that in no way are foreign funds being used!

Is that or a similar suggestion so difficult to put into practice? Legislate Government's right to prosecute to the fullest extent of the law with the threat of serious jail terms and forfeiture of property for anyone who breaks this law! I don't care how good friends I may be with our guest residents and guest resident workers ? I am a whole lot smarter than being willing to commit perjury and risk being locked up for fronting for a "friend"! (Let's face it, real friends don't ask friends to break the law for them!)

But to seek legislature to enforce this policy change as presented is scaring me because it may stop the trust scam issue, but it will over a relatively short period of time also knock the bottom out of our property market.

Is this instead perhaps a move to intentionally devalue our real estate and limit our market so that more of our Bermudian "have-nots" can be afforded the opportunity to buy a piece of the Rock? If so, then I do not support it because that will not in fact be the outcome. I support in the strongest terms every Bermudian being afforded the opportunity to own a piece of the Rock, but why does our entire country have to be driven down in order to achieve this? I don't get it.

Would you take a profitable business and sell off a huge chunk of its assets in order to pay your workers a higher salary? Of course not ? you wouldn't be able to sustain payroll! You would surely go about looking to see how you could maximize or expand upon the assets you already have in order to raise benefits over the long term for all of your employees.

What has our Government done to maximise Bermuda's land assets in order to help our people? What of all the land that is sitting empty while we have children sleeping in cars? If our Government had done what it said it would and had made housing a priority, if it had provided all Bermudians with a very real opportunity to fulfil their dream and to own a piece of the Rock, this destructive move would not be necessary.

We should be continuing on the strong path we are travelling; we are entitled as Bermudians to retain our real estate value and our standard of living. We should plan long term affordable housing for all Bermudians using our available assets.

Let Government seek financing (we are a rich banking community) ? create a comprehensive long- term development plan to build houses for Bermudian purchase (made of stone!) in well planned, eco- and child-friendly residential environments and then offer these houses for sale with reasonable interest rates (higher, of course, than the borrowing rate) to low-income families with 30-year mortgages?

Less fortunate Bermudians should be afforded dignified opportunities to respectably house their families, they should be paying the equivalent or less in mortgages than they would have had to in rent, their children should have a home, they should FINALLY be afforded the opportunity to own a piece of the Rock. If a plan such as this could be made to work, Government would have a guaranteed return on its investment of time and money into providing housing for our people which would further assist with the cost of running this country for at least the next 30 years.

Stagger these developments as far and as responsibly as our land mass will allow with ten-year plans as we maintain a close eye on our population and its need for housing. With a long-term plan to solve our housing problem we would be on a winning path!

I an idealist? Probably, but I make no apology for genuinely wanting all Bermudians to be afforded every opportunity to own their own home as our wealthy community progresses. It should be our primary concern to be building a strong Bermudian foundation by first and foremost taking care of our own.

I know both Governments have tried to address the housing problem, but it is not being done on a large enough scale with a significant enough long-term vision and plan. We do have the land! We do have Southside. We do have Morgan's Point. We do have the failed Eco Village (some of Bermuda's most beautiful waterfront property). Why do we still have such a HUGE housing problem with no long-term plan in place? Twenty condos here and 20 condos there are not going to solve it. I am not presuming to have the answers; I am posing these questions as food for thought.

I am seriously proud to be Bermudian and I am passionate in my love for our island and our people. I care very, very much about the future of our country and I am feeling a deeply disturbing wind of sudden and dramatic change blowing through our Island.

It disturbs me enormously that with this policy change, our Government, which came into power on a tidal wave made up of Bermudians' hopes, prayers and dreams for a better Bermuda, may now be exposing itself to be, in fact, the PPLP: the Pied Piper Labour Party that is quietly and secretively leading us all into the drink with its hidden agendas!

Do we as Bermudians really have a clue about the direction our Government is leading our island with some of these decisions its is making? Where is our Government's "PLAN"? How much is it really communicating with us, the people of Bermuda? Do we have any idea how these decisions will impact on us as a community long term?

Why is Government not explaining its game plan in simple language that we can all understand and consider? Why are our questions not being answered? I, for one, do not believe that this policy is anything other than the beginning of dramatic and sweeping changes for us all.

Is this what we want?