Best of friends with US
Relations between Bermuda and the US are on a solid footing, said Premier Ewart Brown and US Consul General Gregory Slayton in a joint interview this week.
In a wide-ranging conversation at Camden, the two men touched on issues of last week's bilateral talks in Washington and the mutual benefits of the relationship in terms of international business and tourism.
It was made clear that the two countries' rapport has improved markedly during the three years that Mr. Slayton has been America's top representative on the Island. He and the Premier vowed to build on those foundations, even if Bush administration political appointee Mr. Slayton has to relinquish his post next year, when there will be a new man in the White House.
Speaking of last week's trip to the American capital — the third set of annual bilateral talks arranged by Mr. Slayton — Dr. Brown said: "The outcome was terrific. We're used to the fact that it will never be a slow-paced affair. The Consul General made sure that, other than a few moments to stop to eat, we keep going and that's good. That's also the nature of Capitol Hill. Nobody takes too long, because there are so many people trying to see the Congressmen."
"Making friends before you need them" was an important aspect of the visit and the Government would continue to keep the relationship on the front burner because it was so mutually important. Dr. Brown characterised his time working with Mr. Slayton as "friendly, busy and productive".
Mr. Slayton said: "Bermuda has dramatically strengthened its representation in Washington, which I think is a great thing. And the Premier and Deputy Premier [Paula Cox] have been working hard for a long time to establish relations on their own. It's easier every year, because more people know about Bermuda, they know the leadership."
Asked whether an independent Bermuda would have been able to forge event stronger links and strike more agreements, Dr. Brown said that could be so. However, he rejected the notion that Britain, which is responsible for Bermuda's foreign affairs, had got in the way.
"I haven't found Britain to be getting in the way," Dr. Brown said. "When I wanted to talk with China, I played by the rules. I had to get an entrustment from Government House and there was no problem at all. And the same thing with the US. When Government House knew that we needed an entrustment for this to happen, they provided it. So I can't say that the Brits get in the way. But any independent country can move faster."
Dr. Brown met US President George W. Bush at the White House during the visit, but perhaps even more significant was the Letter of Intention signed with Homeland Security Secretary Michael Chertoff to implement US Customs pre-clearance for private aircraft users flying out of Bermuda.
Mr. Slayton said Secretary Chertoff was keen to have the agreement finalised by September and added that Governor Sir Richard Gozney and his staff had worked "tirelessly" to allow the signing of the pre-clearance agreement. Dr. Brown said that would mean a high-end tourism boost for the Island.
"It's not just about private jets being pre-cleared," Dr. Brown said. "It goes to the issue of maybe on a trans-Atlantic charter that the operators could choose to first come to Bermuda for a few days and then pre-clear, going into the US, which makes for a much more hassle-free trip.
"Then you're talking about people here with less time to spend, realising that they can clear here in Bermuda and not have to worry about the hour or hour-and-a-half experience in the States. It's going to open up the possibility of a 30- to 35-percent increase in flights coming into Bermuda that wouldn't normally have come. That means that you're looking at an increased tourism business.
"On the surface, it may seem like something that's just for the rich and famous, but it's not, it stimulates the economy for people. "
Mr. Slayton said the agreement, which also involved the UK, had been more than a year in the making. "You don't make good policy and good agreements in a vacuum," Mr. Slayton said. "This is something that our DHS believes is going to increase private jet travel to and from Bermuda by 20 to 30 percent at minimum. And that means every single taxi driver, restaurant owner, hotelier will benefit because these people are going to spend a significant amount of money."
Dr. Brown also attended the Caribbean Tourism Summit in Washington last week and spoke with fellow tourism ministers from the region on the subject of flights withdrawn by US airlines in response to rising jet fuel prices. So far, the impact on Bermuda has been limited.
"We give thanks that it hasn't happened here yet," Dr. Brown said. "The cuts in the Caribbean have been drastic. Flights out of San Juan to the eastern Caribbean have been cut back 30 or 35 percent.
"We, on the other hand, simply have a plan by American to cut back a second flight in September so far, not too bad.
"I think it's a testament to our relationship with American Airlines, in addition to the fact that the Bermuda flights are relatively lucrative, consistently so. And our proximity to the east coast is not something that we can ignore either, because that's less fuel consumption and therefore less cost."
There was no suggestion that Bermuda might reconsider its currency's pegging to the weak US dollar both men said this was a boon to tourism.
"From a tourism product perspective, Bermuda's one of the last deals, if you would, for Americans in the world," Mr. Slayton said. "It makes it easier for Americans, coming here and knowing that they can spend American dollars here.
"That's a big deal, especially for first-time tourists thinking 'where do I want to go'? The fact that the language is English, the people are so kind and the money is interchangeable, all that can influence a lot of tourist decisions."
Dr. Brown said: "Over time this has been tested and this is not the first time that the US has experienced a downturn. So we stay with the US dollar in good times and bad. Eighty-five percent of our visitors come from North America and 80 percent of those come from the US and we want to make it as convenient as we can for them. Bermuda is considered an expensive destination, but Americans continue to come."
Dr. Brown said Bermuda would continue to seek visitors from countries other than the US. "We have noticed that since Zoom Airlines started flying from London, we've seen anywhere from a ten-percent to a 20-percent increase in air arrivals from the UK," the Premier said. "We intend to encourage that.
"We've reached out to begin working in China, something that some people sneered at months ago when we went more than to Beijing, but in this business you have to have some vision and you have to plan for the future. There is nowhere on the planet that we are not willing to accept tourists from, or encourage participation in our international business." Although Bermuda is currently experiencing rising food and fuel prices and the vast majority of the Island's imports come from the US Mr. Slayton said the phenomenon had its roots in the wider world.
"I am an economist by training and I would say that it's a result of the BRIC (Brazil, Russia, India and China) countries rising so quickly, in their consumption per capita," Mr. Slayton said. "There are four billion people coming from virtually nothing and into the middle class and that means a great deal of consumption.
"I think you are going to see dramatic changes in the way the world consumes petroleum-based products. For the first time in history, the amount of gas being consumed in the United States is going down and so are the number of miles being driven. And I think those are very hopeful signs.
"Of course it's terrible to see the pain being felt in Bermuda and the US, but those are rich countries. Even more so in the Bangladeshes of this world, there are very difficult situations and obviously our heart goes out to those who are impacted by the dramatic rise in the cost of staples like gas, lentils and rice. But that's the way economics works."
Dr. Brown said Bermuda had to keep on doing what it did best, regardless of factors beyond its control.
"Economic hardship is not new to most people who have lived through downturns in the US economy and people will adjust," the Premier said. "Our Government is taking steps, we are not just relying on the US to reduce our discomfort. We're taking steps, for example, with the day care programme that we intend to roll out this year. That's a programme that's going to save a mother with one child, $7,200 a year at the day care centre. And if you have two, that's $14,400."
Mr. Slayton did not rule out the possibility of staying on at Bermuda's US Consulate beyond next year.
"Who's knows, it's not impossible that we will still be here," he said. "It all depends on what happens. I don't want to be presumptuous it's better to be humble and expect a successor to be here by the first half of next year but you never know."
He added that "good policy is made when you have good information and good relationships" and vowed to ensure his successor unlike him would receive a full briefing book. He or she would also inherit an excellent team, Mr. Slayton added.
Dr. Brown added: "As long as I'm in place, I'll build on what is there. In some instances we had to start from first base. Let's just say, everything hadn't been completed.
"But Mr. Slayton is an energetic person and I suppose the energy in him feeds the energy in me. And we put it together. We've attacked things the public doesn't even know about. But they are important things to Bermudians and Americans and we just work together.
"The reason we can do that is he focuses on doing his job and I focus on doing my job. I don't get into his politics and he doesn't get into mine."
Mr. Slayton said the warmth of the people was what had impressed him most about Bermuda. Speaking for himself and his family, he said: "We'll always have a place in our hearts for Bermuda, there's no doubt about that."