Small islands should consider insuring aspects of their economies against the effects of natural catastrophes, Premier Alex Scott told an Overseas Territories conference yesterday.

“The question has to be asked in the context of the principles of sustainable development: ‘Have we reached a point in climatic circumstances and conditions that now we are required to consider the prospects of insuring areas of small developing nations' economies? If, on an undetermined schedule, countries in our region are being devastated by the occurrence and then re-occurrence of Category 3, 4 and now 5 hurricanes, how might these countries sustain viable economies?” he said.

“The answer may lie in the insurance/reinsurance industry. Big nations and corporations insure their products; perhaps the time has come for us as smaller nations to insure and reinsure those key aspects of our environment and economic infrastructure that are central to our future survival.”

Mr. Scott's remarks came as he introduced a session on sustainable development.

“I suggest that it would be in the interest of global superpowers and financial institutions to ensure these economies remain healthy. If regions such as the Caribbean become politically destabilised through economic or environmental disaster, they can become a burden to world economies.”

He told his audience that Bermuda had implemented sustainable development initiatives throughout the last century, listing the one car per household policy, land zoning and foreign ownership of property restrictions among a number of examples.

“In every decision we make, it is imperative we are cognisant of long-term implications,” he said.

He said that the pursuit of sustainable development was a “complex and intricate undertaking”.

“It will require change. Change in our way of thinking - we can no longer do things as they have always been done; and change in our methods of implementation. In every decision we make, it will be imperative that we are cognisant of the long-term implications.”

And Mr. Scott told his audience that efforts must be made to eliminate waste of physical, natural and human resources “and to diminish the damage to our environment by pollutants generated and then ignored under the guise of economic growth. At the same time we must strike the delicate balance which enables us to continue to consider and meet the social needs of our communities, maintain a high level of economic growth and development and engender a healthy respect for the environment.”

He said Bermuda was now grappling with social and infrastructure pressures generated by a shift to international business.

“Unprecedented rates of growth and development have resulted in Bermuda nearing the saturation point, as environmental and social costs are beginning to outweigh the benefits of economic prosperity,” he said.

“Consequently, now in 2004, we are launching an all encompassing cross-ministry initiative called the “Social Agenda” to protect and sustain Bermuda's economic growth and economy. As a result, Bermuda has again embarked on the development of an ‘Action Plan of Social Engineering for Sustainable Development' which will be implemented over the next decade.”

Bermuda's environmental initiatives included a $100,000 grant scheme launched in April, 2003, an “Overseas Aid Programme” and the Biodiversity Strategy and Action Plan which co-ordinates community action on conservation and “encourages integration of environmental considerations into Government's decision-making process,” he said.

“Sustainable development initiatives are ongoing in Bermuda, and more recently an Act to protect Bermuda's endangered species of plants and wildlife was brought into effect.

“Further, Bermuda commissioned specialist consultants from Jamaica to carry out our first Coastal Erosion Study. We are also in the process of developing Bermuda's greenhouse gas inventory in accordance with guidelines published by the Intergovernmental Panel on Climate Change.”