Mr. Speaker, Honourable members will no doubt be aware that the Chancellor of the Exchequer announced in the UK Parliament this week that the UK Treasury is to cause the conduct of a review into the operations of those Crown Dependancies and Overseas Territories that operate as financial centres. Along with Bermuda, there will be a review of the financial operations of Cayman, Isle of Man, Guernsey, Anguilla, Turks and Caicos and the British Virgin Islands.

The terms of reference for this review are being worked out but it appears that the conduct of the review will be outsourced to an individual of international repute who is capable of undertaking this task at relatively short notice. It is anticipated that the UK Government will announce the reviewer later today.

Mr. Speaker, I rise today to make two important points as a response to this intervention:

First, to assure the people of Bermuda, and in particular our important international business sector, that nothing negative can come of this review. This Government’s finances have been in the very capable hands of the late Honourable C. Eugene Cox CBE, JP, who was succeeded by our very own Minister of Finance, Paula A. Cox. At every turn, this jurisdiction has been on the cutting edge of pristine regulation, and is the envy of other jurisdictions as a result. As I indicated to this Honourable House previously, as recently as last month, a senior UK Treasury official had cause to comment that he wished that other jurisdictions were as well run as Bermuda. Bermuda can pass this financial review, and any other review, with glowing result. We have nothing to fear by this action, and we have nothing to hide.

What we do have, which goes to my second point, is just reason to be offended and insulted. What we have is reason for all to take note of the downside of being a British colony. I do not dishonor the United Kingdom or Bermuda when I speak the truth of our relationship with regard to this action. Here, they are a supreme power, who does not contribute one penny to our livelihood, who just announced that they have determined we, and some of their other territories, need a review. They have the authority, by grant of our colonial relationship, to simply announce that they want to come, and we are obliged to receive them. Whether UBP or PLP, whether young or old, whether Black or White, whether royalist or revolutionary — this should be an affront to every Bermudian.

What we have is a colonial relationship which costs the taxpayers $2 million a year. We pay that - without comment or notice - for the upkeep of the palatial Government House and its 30-plus pristine acres - at a time when land is at a premium in Bermuda. We pay that - without comment or notice - for the Governor and Deputy Governor’s salary and their cars, their security, their travel, their housekeepers and their maidservants.

I particularly want our young Bermudians to take note - those who so highly value their lower tuition fees and ability to travel freely inside and outside the European union. At what price convenience?

I say to older Bermudians who relish the idea of having a British passport. At what price convenience?

To the young people I say, what if your mother had you stay at home forever - and for that, you had a supremely comfortable existence laden with enviable amenities - but anytime she wanted, she could barge into your room and search any of your private possessions. At what price convenience?

I say to older Bermudians, what if this or any Bermudian government just decided - because it could - that you and other citizens would have your bank accounts reviewed because we were concerned about widespread bank fraud? At what price convenience?

To all Bermudians who want Independence and to all Bermudians who do not want Independence, I say to you that Independence will rightfully and righteously come - perhaps not soon and perhaps not on my watch. But, Independence will come - because it is the inherent right and desire of any individual and any nation - to be free.

There is an irony in the timing of this UK Treasury review. At a time when nations around the world are basking in the glow of the historic US election, some of the British territories are being brought to the knees of our colonial master by this intrusive intervention.

Nonetheless, this government will cooperate with the UK Treasury in every respect - because that is the nature of our colonial relationship. But we will do so with comment and under protest.

This Government is firmly of the view that issues of taxation and fiscal policy are solely the purview of the Government of Bermuda. Any attempt to breach the principle of internal self-government will be stridently resisted. We will be as vigilant as our colonial status allows and ensure that this review is not a cloak by which to intrude on matters appropriately left to the internal government.

Mr. Speaker, significant public resources and by extension, revenues raised from our international business sector, have been devoted to constructing and preserving this regulatory environment. The Bermuda Monetary Authority, our independent regulator, is well staffed and admirably led by a world-class board and equally capable senior executives. Bermuda only recently experienced prompt and unprecedented success in addressing the findings of the IMF and other agencies, and achieved a clean “bill of health”. International business has confidence in Bermuda’s existing structure and with good reason.

So, Mr. Speaker, whilst we protest this review for obvious and stated reasons, we are confident that Bermuda will survive this latest round of scrutiny and maintain its strong, stellar position amongst the great financial centres of the world.

Thank you Mr. Speaker.

* Full story and reaction in tomorrow's Royal Gazette