BIBA Tells Bermudian Government To 'Put Up Or Shut Up' On Independence

by Amanda Banks, Tax-News.com, London

19 October 2005

Bermuda International Business Association chief, Greg Haycock, is urging the government of Bermuda to bring forward a referendum on the issue of the island's independence from the United Kingdom in order to disperse a cloud of uncertainty that is deterring international firms from doing business in the jurisdiction.

“The message back from our sources of business has been unequivocal – a lingering discussion of independence breeds uncertainty and is encouraging existing and potential clients to look to other jurisdictions for their business,” Mr Haycock observed in a statement.

Mr Haycock's warning comes one year after BIBA wrote to Premier Alex Cox detailing the responses from the financial community to the question of independence, which, it found, were overwhelming opposed to the idea.

The BIBA survey concluded that independence could have "significant economic and social consequences to the future of Bermuda," and lead to a "steady attrition of international business, subsequent loss of jobs and a major downturn in our economy".

BIBA's survey found that international businesses were most concerned about changes to the legal and taxation regimes in post-independence Bermuda. Many of the respondents feared that taxes could rise to cover additional costs, while others members of the financial community feared that an independent Bermuda may become more susceptible to pressure from the OECD, United States or European Union.

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