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www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 3 February/March/April 2010 EDITORIAL COMMENT Volume 16 / Number 1 Confidence and opportunity in 2010 Contents f we forever look NEWS P6-10 back, we will never New local bank planned see the way ahead”, Banking expands as I tell everyone Five go before when they declare New projects to create jobs 2009“I a terrible year! GDP growth success For in 2010, Gibraltar is Network of Bay ferry services looking forward to the end of high corporation tax, this being the last TELECOMMUNICATIONS P12 year of paying 22 per cent. More secure internet connections From next January, the rate should be cut to 10 per Gibtel opens new routes cent for all businesses based on the Rock, if the European Court of Justice throws out the Spanish appeal against FUNDS P14 Gibraltar having its own tax system separate from the UK. A new home in Gibraltar The government is certain it will happen. It’s encouraging too that – in these days of ‘tight’ PROPERTY P16-18 money availability – institutional and private investors are Office space set to double this year prepared to put significant money into building A 2020 vision new offices on The Rock to satisfy the demand that everyone expects to follow from new businesses attracted PROFILE P20-23 by the low corporation tax. James Gaggero, Still flying high Not many other jurisdictions can boast such a construction display of confidence. DATA PROTECTION P24-25 And local investors too this year seem prepared to Maintaining principles! back Gibraltar in its drive to create a new, national bank, INVESTMENT P26-27 sympathetic to the needs of small business in particular, Revenue lifts 55% tax threat and less well-heeled residents who find it difficult to gain Helping hand for new business mortgages. Satisfying appetites That’s quite different to most other places, where people fight shy of involvement with banks. Soundly PEOPLE AND PLACES P28-29 based, as it must be to meet strict local regulatory conditions, a new Gibraltar bank is certain to be popular. LAST WORD P31 The people of Gibraltar have much to be proud Spathetic! about, given the success of Kaiane Aldorino in translating her new Miss Gibraltar title into Miss World. It’s not been done before and everyone thinks she will be a great ambassador. GIBRALTAR INTERNATIONAL MAGAZINE One obvious potential benefit is in giving tourism a boost, but is anyone planning to turn it to advantage - is Published by Gibraltar No part of this publication International Publications Ltd. may be reproduced without there a mini-exhibition stand travelling with her, 1/5 Irish Town, Icom House, the written permission of the brochures, posters, etc. And what about Gibraltar airport Suite 6/PMB 104 publishers. The publishers and the Border: will there be signs proclaiming “Welcome PO Box 561, Gibraltar have tried to ensure that all to Gibraltar, home of Miss World”? Opportunities like information is accurate, but Editor emphasise that they cannot this seldom arise. Ray Spencer accept responsibility for any This year will see just how popular the new ferry [email protected] errors or omissions. The service between Gibraltar and Algeciras is after a gap of publishers accept no more than 40 years. The operator believes it will spark Sales responsibility for statements C.A. Tanner made by contributors or for interest in a Morocco / Ceuta ferry link with Gibraltar [email protected] any claim made in an too, which would be a practical demonstration of good advertisement. relations with Spain. Design Bil Brooks Gibraltar International The enthusiasm now being shown in La Linea to [email protected] Magazine is available on develop the Spanish side of the new Gibraltar airport subscription, 4 issues posted terminal – albeit in part fuelled by the need to create fresh UK Agent: to: UK £24 - EU £32 - employment and investment in the area – is perhaps the Tel: 0044 (0) 1993 703560 Rest of World £44. most far-reaching sign of a good year ahead. © 2010 Gibraltar International As we enter the second decade of the 21st century, the Publications Ltd. future for business in Gibraltar looks exceptionally bright.

4 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com NEWS NEWS

part social and part private in total, and the government Bank earning higher rates of be controlled and managed by or the Danish Jyske Bank - to housing. is thought to be considering interest than generally avail- professionals independent of pull out; some bankers are New local bank Local businesses are also taking a stake of up to 40 per able, with an option to utilise government, which essentially thought to be “nervous” said to be suffering, despite cent in the project. Post Office Counters. is acting as a catalyst. about the project, fearing the fact that the Gibraltar Rather than provide fresh As such, the venture is “unfair competition”. economy is growing by at cash, this may involve the new Local control expected to be hugely popular David Parody, the to ease funding least 6 per cent (see GDP venture absorbing the State- The amount required to with residents. It is understood Financial Services Commission growth success, page 8) owned Gibraltar Savings finance the new bank depends by Gibraltar International that chief executive officer, last An independent feasibility report has been prepared for Typical business loans by the Bank, where individuals’ on how broad its activities the Bank would be more “sym- Autumn predicted at the new bank would be up to deposits are guaranteed by the will be, and one possibility pathetic” to the local market Finance Centre Council 2015 government to establish a Gibraltar Bank dedicated to local £10,000. government. Or the new under discussion is a staged than the international banks conference, that “there is residents and small businesses during this year, In November, Chief bank may provide the bank- opening, perhaps tackling operating on The Rock. room for another player or Minister Peter Caruana, ing facility for the Savings first either business loans or One concern is that the two in the retail banking Editor, Ray Spencer has discovered. revealed that “the Bank. mortgages. new Bank must not become so sector” which, he felt, The idea has been prompted sidised housing schemes, par- risky in today’s economic cli- Government continues to Local people would be But the Bank’s destiny popular that it causes any of was “under-represented” in by the current difficulties ticularly the new sitting ten- mate, or too small to make actively study the desirability, encouraged to save with the and lending decisions would the others - NatWest, Barclays Gibraltar. being experienced by local ant right-to-buy homes at up the administration worth- viability and feasibility of a predominantly small busi- to a third of the true market while. new locally owned Bank” as nesses to arrange overdrafts price. The commercial rates part of projects foreseen in the to help with short term cash Reportedly, main banks being demanded - typically next two years. Bland new projects to “create many jobs” flow issues, and reasonably with local offices are falling 5.5% over 20-25 years for priced loans for start-up and foul of policies set by head mortgages of under £100,000 Finance promised Five new and on-going invest- it slightly less straightforward expansion projects. offices elsewhere in the UK. - are generally not too high The new Gibraltar bank - no ment projects – three large than elsewhere”, he said. Similarly, residents are They see mortgages, typically for government housing ten- name has yet been proposed - and two smaller ones – that Gaggero added: “I’ve finding it tough to find mort- of £30-40,000, with little or ants, but banks are said to be is already understood to have would create many jobs in learned through experience gages to enable them to take no prospective of owner con- further worried about becom- attracted local investors pre- Gibraltar are being worked that deals are never done until advantage of government sub- tribution, either as being too ing involved in blocks that are pared to deposit some £25m on by the Bland Group for they’re done.” For the future, launch this year, the 200th he says: “We will hold back anniversary of the business. sufficient cash to meet the They will form part of an needs of the Group so that we on-going programme by are never dependent on third Banking expands Five go before! Chairman James Gaggero, to parties, but it is envisaged that If the new Gibraltar Bank goes ahead, it will not be the first replace the economic activity the vast majority – 70-80 per Geneva-based Banque Audi exchange and structured national bank on The Rock. of GB Airways (GBA) – which cent –will be channeled into (Suisse), a private banking products. In mid-1987, George S Moore, the now deceased former had £300m turnover and £6m ment we have for Gibraltar”. hotel is hoped to be agreed investments and businesses subsidiary of one of Raymond Joubaud, a for- chairman of one of the world’s biggest banks - the First profit a year – that Bland sold The privately owned fam- early this year, along with one that we will operate. Lebanon’s largest banks, is to mer General Manager of The National City Bank of New York (later known as Citibank) - in early 2008 to easyJet for ily firm has 16 companies of the planned undisclosed “We are disciplined, dili- open a Gibraltar office this Gibraltar Private Bank set up Gibraltar Trust Bank (GTB) as a joint venture with £103m. operating in Morocco, Spain, new ventures. gent and hard working and Spring having gained a licence Limited (now Lombard Odier Credit Suisse. The Group still has over the UK and Gibraltar, where The Group also operates fortunate to have the from the Financial Services Darier Hentsch Private Bank By then resident mostly in Spain, Moore recruited Joe £100m cash available to the firm originated and the Bland Travel tour coaches and resources to see us through Commission. Limited), is believed to be Gaggero, the now president of Gibraltar’s Bland Group, as a invest in projects that achieve Gaggero family has been Avis car hire in Spain and these testing times: the combi- The move comes as two leading the venture. local director. GTB became Credit Suisse (Gibraltar) in 1991 equivalent or better results, involved since the 1860s. Gibraltar, and its GibAir has nation of those, mixed in with others - King & Co a private His firm, Velay Financial and a wholly owned subsidiary of the Swiss bank. but with less risk, he revealed Fifty years old James long held the ground handling passionate committed man- family banking operation in Services, providing fund Gibraltar’s first bank was the Genoese family owned in an exclusive interview with Gaggero is coy about reveal- contract at Gibraltar Airport. agement and staff with good London and Close Brothers, administration and invest- Galliano’s Bank (GB) in 1855. After three decades, it faced Gibraltar International, (see ing financial details of the Media company Colorworks products and companies, the UK’s largest independent ment management support increasing competition - initially from Anglo-Egyptian Bank Profile, page 20). business, but says there are and ABG, the Forex web serv- hopefully, a recipe for a suc- merchant bank – are awaiting services, was established at (later Barclays) and Credit Foncier (later Crédit Agricole). GB “Airlines are, on the spec- around 740 employees now – ice FX500, both joined the cessful future. Only time will the outcome of their licence Marina Bay in 1998 and did not incorporate until 1978 and nine years later was trum of risk, almost off the in GBA previously it had Group in 2008 and are also tell”. applications submitted more Joubaud is a founding mem- acquired by Jyske Bank. scale. We aim to diminish our 1,000 staff – and almost 160 based in Gibraltar. In December, Bland than two years ago. ber of The Gibraltar By 1900 there were four other small, family-owned exposure to risk, diversifying are in Gibraltar, which Timing of the new ven- Group agreed in principle a Banque Audi (Suisse) Association of Stockbrokers banks - Cuby Brothers, Benzecry (El Banquerito), Rugeroni the spread of economic activi- presently accounts for round- tures depends on a number of £14m joint venture with offers independent advisory and Investment Managers. Brothers, and Marrache and Sons - but all had ceased ties we partake in as well as ly 20 per cent of Group issues. “Gibraltar is not with- Stagecoach for a hovercraft services to clients on all types The FSC approval for operations before World War II. their geographic locations”, activity. out its challenges in that a lot service across Firth of Forth to of securities and provides its Banque Audi comes at a time Gaggero explained. Local Bland Group inter- of things have to be cleared Edinburgh that involves Bland customers with both asset when banking internationally ago revealed their plan jointly 2008. It was seen as “a per- “The three major projects ests include the iconic 104- before major progress can be building two large passenger protection and asset enhance- is under the greatest scrutiny. to establish a Gibraltar-based fect strategic fit” comple- in Gibraltar are of real inter- bedroom Rock Hotel, which made – with government, craft and Stagecoach con- ment, dealing in equities, Close Brothers and Bank under the name, Close menting operations in Jersey, est to me”, he declared and is one of the on-going proj- business partners, politics and tributing two coach depots bonds, mutual funds, deriva- Gibraltar-based law firm, & Marrache. It was expected Guernsey, Isle of Man and added: “They are exciting and ects, where rebuilding or relo- a wide range of prerequisites and operations, subject to tives, precious metals, foreign Marrache & Co, two years to be trading by early summer South Africa. will show the level of commit- cation of the 78 years-old have to be met – which makes planning consents.

6 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 7 NEWS Home from home! EU tax harmonization prospect clouds GDP growth success late a further 5 per cent a year cent from next January. Gibraltar is preparing for new growth until 2012. That The move follows success challenges over company tax and the would mean the economy in the European Court of then would have nearly tre- Justice (ECJ), which last year proposed imminent new low 10% rate bled in just 15 years, a per- reaffirmed Gibraltar’s free- is still not fully secure, writes editor, formance he considered “is dom to have its own very likely to be exceeded”. tax system, separate and Ray Spencer in a 2010 review of the On top of that, now there different to the UK. That is economy. are over 7,500 more Gibraltar something Caruana regards as jobs than in 1996, represent- “absolutely essential to our Gibraltar has been placed every other European country ing an increase of 58 per cent. continued economic, and thus fifth in a list of the most stable where tiny or negative GDP Caruana predicts it will grow social and political, viability and prosperous countries in increases are being recorded. further during 2010. as a small country”. the world, according to a win- Once inflation is taken Gibraltar’s robust GDP But Spain, and separately, ter report by Jane’s into account, the real growth and employment growth in the European Commission on Information Services. in Gibraltar’s GDP last year part is the result of a well- different material selectivity After a one year investi- was around 3.5 per cent. diversified economy, and the grounds, have appealed the gation and analysis of 235 Given that inflation remained overall £15m budget surplus judgment. countries, Jane’s – more usu- steady at 2.8 per cent accord- for the last financial year Caruana is confident of a ally associated with military ing to the latest figures to end- compares to a forecast a successful outcome, but the research – placed the UK at October, the real 2009/2010 £19m for the current year. ECJ has not yet set a date for 7th, Switzerland at 17th and figure will most likely be Expected total borrowing the oral hearings and the final the US 22nd! slightly above 2 per cent. of £350m in the period to ruling. Jane’s system differs from end-March 2010 is more than Both the Gibraltar government assessments of Closer monitoring 80 per cent greater, although Government and UK govern- country risk, because it is The Government has been a rise of £105m in reserves to ment are resisting the appeals based on objective analysis, keen to monitor closely eco- reach £234 million provides a and filed separate submis- “with no politicisation of the nomic indicators, and most of significant off-set. sions. intelligence”. Under the rat- those covering its income – Net public debt should Caruana also is con- ing system, each nation’s PAYE, social insurance and then have risen by 86 per cent cerned that the large G20 political structures, social and duty – are being analysed from £62.2m (or 7.3 per cent countries may seek to economic trends, military and monthly rather than quarterly of GDP) in 2009, to reach ‘encourage’ low tax countries security risks and external as previously, the first two £115.8m (or 12.9 per cent of to cease this form of competi- relations were taken into also providing pointers to the GDP) in 2010. tion that stands to reduce account. state of employment. national revenues. Only the Vatican, Company tax – forecast A very good year Sweden, Luxembourg and to be £26m this year, up In his New Year message, Unified EU taxes Monaco were placed ahead of slightly from an expected Caruana declared: “Despite According to EurActiv, a UK- Gibraltar. £25.8m in 2008/9 - and gam- the economic and financial based information and com- ing receipts however, are crisis that has continued to munication concern, policy Continued GPD reported at the varying finan- grip the world during 2009, it experts advising the European growth cial year ends of businesses has been a very good year for Parliament (EP) in a ‘World in Gibraltar’s economic worth and can only be accurately Gibraltar, not least economi- 2025’ document released qui- conservatively should have assessed over a longer period. cally, as we have mostly etly at the turn of the year, are reached at least £900m a year Peter Caruana, Gibraltar’s avoided the consequences of pressing for deeper integra- by end-March if Government Chief Minister, said in the downturn.” tion of European economies forecasts are correct, the terri- November that “it is a With no capital gains tax, and potentially closer ties on tory having experienced a measure of the extraordinary inheritance tax, or VAT, the direct taxes. year-on-year growth in Gross success of our economy that it appeal to business of the juris- In particular, unified The only airline that flies Domestic Product (GDP) of 5 has grown by 145 per cent diction will be even greater corporate tax rates are set out per cent or more. since 1996” - an average of given the move from the pres- as an objective by the That experience is in over 11 per cent a year. ent 22 per cent Corporation from Gibraltar to Gatwick. marked contrast to almost He went on to extrapo- Tax to a flat rate of 10 per Continued P10

Price correct as at 11 January 2010. For travel from 22 January to 23 March 2010. 8 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com Variable charges for hold baggage apply and some payment methods attract a handling fee. See website for details. NEWS Planning for network of Bay services

Ferry links to Tangier and Ceuta from Gibraltar could be launched early next year if the take-up of initial services to Algeciras is encouraging, says Transcoma, the Spanish transport conglomerate, which has invested d2m in the initial project.

With a schedule of five week- “We have been planning said Oliver. A new ferry ter- potential operators interested day roundtrip services each this for some time and expect, minal is being built at in the route, but the day and three at weekends, if all goes well, to extend the Algeciras only minutes from Transcoma project was the the 150-seat Punta Europa II ferry route to Morocco and the town centre, but initial only one “to have economic catamaran has the capacity to Ceuta using a larger craft”, he services use the old port substance”. ferry 500,000 passengers a revealed. terminal. Both he and Spain’s year. The firm aspires to a net- The service is being pro- director general for Europe But its owners expect to work of metropolitan ferry moted through travel agencies and North America at the average around 60 per cent services in the Bay of and hotels along the Costa del Spanish Foreign Ministry, loading overall if they are to Gibraltar. Sol and in Gibraltar to attract Luis Felipe Fernandez de satisfy the business plan. tourists with tickets costing la Peña, emphasised that Having started just ahead New terminal around d5, “although work- the fery was a practical of Christmas - later than orig- The Group, comprising 35 ers using the early and late demonstration of the outcome inally planned because of companies in shipping and service will pay d3 each way - of the Tripartite Talks involv- administrative problems at transportation, was operating about the same as for buses, ing Spain, Britain and either end - services were sus- at 35 per cent below budget but in half the time.” Gibraltar. pended through bad weather as a result of the world eco- A Spanish Foreign over the holiday period. nomic recession, he said, but Economic Ministry statement noted But Enrique Oliver, the Gibraltar ferry link was substance “Spain is confident that this Transcoma’s general manager, one of a handful of new proj- Joe Holliday, Gibraltar’s example of local co-operation told Gibraltar International ects to which Transcoma was Minister for the Port, told a serves (as is the objective of that the firm was “confident” committed. launch reception that over the forum) to favour econom- about meeting its financial “When we decide to go recent years he had been ic and social development in target. with something, we do it”, approached by several other Gibraltar and the Campo.”

EU tax harmonisation from P8 countries and financial cen- with Gibraltar, although so last June to begin publication tres on the basis of low tax far only one has been imple- this year of a new annual policy team. rates. mented. report dedicated to the publi- Significantly, European “Most of the new EU Several small countries cation of a range of new eco- leaders told Ireland last year member states have very low with little or no connection nomic and public finance sta- that the new Lisbon Treaty taxes, much lower than 10 with Gibraltar have signed – tistics. would not affect its relatively per cent ... there is low tax including New Zealand, Although technically in low corporate tax regime. throughout the EU and Faroes Islands and Finland, the public domain, they are But now EP advisors see Gibraltar is simply mimicking for example – but significant- not available in an easily the world economic crisis as that mode”, he reportedly ly several large countries are referable form. offering “a window of oppor- said. also listed such as France, He expected to be “pub- tunity” to bring about tax And the Chief Minister Portugal, Germany and lishing shortly the list of sta- unity. has also held out the prospect Ireland, as well as the US and tistics that will be included in of lower personal taxes UK. this new publication that will Right to compete alongside lower business be known as the “National In a recent interview, Caruana taxes. More open Economic Statistics”. told the Financial Times that In the meantime, 17 To ensure greater transparen- However, as of January Gibraltar, like Ireland, had the Tax Information Exchange cy and openness in govern- no progress had been made in right to compete with other Agreements have been signed ment, Caruana committed this area.

10 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com TELECOMMUNICATIONS Gaining more secure and higher capacity internet connections Local investment is growing to ensure business can be optic cable ring around The Rock and a 6.5km link through the frontier to Spain. attracted and their future needs are satisfied. Sapphire has also become a certified uch increased internet outsource supplier of Verizon, one of the bandwidth has been largest US telecommunications compa- introduced by Sapphire nies big in banking networks, and former Networks, an independ- 50 per cent owner of Gibtelecom. ent Gibraltar telecommu- At the same time Sapphire has intro- Mnications company, between The Rock, duced an ‘event bursting’ facility to pro- La Linea and Madrid as part of moves to vide gaming companies temporarily with encourage more e-gaming companies to more than eight times their contracted move their main computer servers and bandwidth capacity. This can be for associated equipment to the jurisdiction. events such as the Grand National, And this year the firm will be in a World Cup and Ryder Cup, or to provide position to offer consumers Voice Over ‘emergency’ extra capacity should anoth- Internet Protocol (VOIP) facilities and er supplier suffer an ‘outage’, or even give land lines at cheaper prices, having tied extra capacity to speed up data replica- up agreements with Gibtelecom - its tion between Gibraltar and another site. Internet exchanges in London and Amsterdam add national competitor - for open access to to internet and leased line services out of Madrid New loyalty discounts provide serv- its network, as has happened in the UK ice cost savings of up to 10 per cent pro- and elsewhere. compared to the UK and other European gressively from 18 months to three years. For its core business offering, howev- areas for bandwidth, so we aim to max- er, Sapphire has linked with “global com- imise value by providing the highest stan- panies offering world-class standards, dards of service quality and reliability”, Gibtel opens despite being only a small jurisdiction”, he added. explained managing director, Lawrence “We also invited companies that we new routes Isola. “In a few years we have become a are trying to attract to Gibraltar or which At the same time, Gibtelecom - 50 per leading provider of high-availability we think should be interested in estab- cent owned by the Government and internet services on the Rock”, he lishing a presence here”. Telecom Slovenia - is stepping up the maintained. Sapphire has increased tenfold its competition for internet hungry own network capacity between Gibraltar business clients. Operating profitably and Madrid to reach 7.5 Gbps - around It is investing £18.5m as its contri- The firm has invested £8m over four double that of anything available else- bution to a 13-country joint venture years on developing and enhancing its where on The Rock, claims Isola. that will see a fibre-optic cable linking service, aimed primarily at e-gaming and Europe with India to open a new financial services companies requiring Access to 30,000 ISPs telecommunications route for high speed, secure internet services. Isola The firm has introduced ‘virtual’ connec- Gibraltar that does not depend on says that since July 2008, Sapphire has tions between London, Amsterdam and crossing into Spain. been operating profitably. its Madrid node, to give Sapphire a pres- The result will be to give In Gibraltar’s first live internet pres- ence closer to its customers and access to Gibtelecom greater flexibility and entation to reach gaming companies 30,000 internet service providers. security of connection from later this unable to visit the Rock, Sapphire A Gibraltar-based gaming company year and availability of a higher net revealed how it has further enhanced its with clients in England and northern band width for its customers. network by providing a second presence Europe, for example, will see a real And it has also just completed a in Spain as back-up to avoid a single improvement in service - a speedier and new link between Madrid and point of failure. more efficient connectivity less likely to Gibraltar, constructed under contract “The presentation itself was attend- suffer ‘packet loss’ (which can cost com- by Interoute, that complements ed by 20 existing and potential compa- panies thousands of pounds of business), Gibtelecom’s existing international nies, whose technical teams are in places because under Sapphire’s new link there routes, including via Telefonica and such as Israel and the UK, so it was are fewer routing nodes. Cable & Wireless to give “virtually important that they could all Over £6m has been invested in satis- unlimited capacity to support further participate”, explained Isola. fying ‘high end’ corporate businesses, growth”. “Gibraltar is relatively expensive including completion of a 10km fibre-

12 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com FUNDS

the EU regulated ‘stamp’ on their investment products. Funds find a new This is particularly so at a time when the Gibraltar Funds industry is gathering home in Gibraltar momentum. Developments elsewhere - such as a substantial increase in Cayman registra- Despite numerous tion fees following that country’s well- proposed changes, reported budget deficit – also could assist Gibraltar is well placed Gibraltar in gaining a greater market share. to capitalise on the In the post-Madoff environment, the proposed European trend of domiciling funds in well regulat- ed and supervised jurisdictions such as Directive controlling Gibraltar has gained popularity and we Fund Managers, expect this trend to continue There will be continued interest in argues Joey Garcia. the re-domiciliation of Funds into Gibraltar from various offshore and nitially at least, there was non-EU centres. considerable anger and frustration Now it is suggested that institutional The procedure for re-domiciliation that the European Commission’s investors should be able to choose where under the existing Gibraltar Companies draft Directive on Alternative they wish to put their money, and they (Re-Domiciliation) Regulations 1996 is Investment Fund Managers (AIFM) should be able to invest through existing quick, simple and effective Ihad been prepared with little or no and preserved national placement The process ensures continuity of industry consultation. regimes. performance, allows for assets to remain The Directive affects not only the But the same proposals also suggest untouched without the need for transfers European hedge fund industry, but also a restriction on hedge funds investing or adjustments, and crucially, provides private equity and other sectors including more than 30 per cent in funds domiciled for unit holders to remain registered as real estate investment products. outside of the EU. they did in the foreign jurisdiction In a recent public hearing before the Other suggestions made by Gauzès The fund must be domiciled in a EU Economics and Monetary Affairs also bode well for Gibraltar, including jurisdiction recognised by Gibraltar for (ECON) Committee, Gerben Everts, the removal of the suggestion of regula- this purpose and must have appropriate head of Dutch pension manager APG’s tion of funds with less than 100m in provisions in its laws. global regulations and compliance, was assets under management (AUM). This Continuance of a foreign company in very direct in pointing out that “if it is would keep the niche, boutique or family Gibraltar does not create a new legal indeed the intention of the Directive to office manager out of the scope of the entity or prejudice its continuity, nor does increase transparency on the alternative Directive. it affect the assets or property originally asset management industry, why do you, On the whole, many of the concerns held. The Financial Services Commission honourable members, accept the regula- raised by investors have been taken into needs to be satisfied that the company is tory process to take place in the dark?” account and can be seen percolating into in compliance with local financial servic- But changes to the draft Directive the draft legislation, although there are es supervisory laws before granting EIF mean that Gibraltar still stands to bene- still industry concerns in relation to the status. fit, but possibly less so, in some areas. regulation of short selling and the use of The company is required to appoint Initially, it was intended to restrict leverage. a local fund administrator, auditor and at Alternative Investment Funds not domi- The amendments will receive a sec- least two directors, all authorised by the ciled in the EU being marketed or sold to ond consideration in March and then a Regulator. The existing investors must any professional investors (as defined by vote in ECON in April. The draft also qualify as “Experienced Investors” MiFID) unless a series of strict conditions Directive then faces a maximum of three (as defined in the legislation). were met. The benefit for Gibraltar was readings if the European Council and the Once the foreign company becomes obvious as a jurisdiction offering a European Parliament fail to reach agree- a Gibraltar company, all counterparties European entry point for many Non-EU ment, with a target deadline of January are appointed and the documentation is collective investment vehicles. 2012 for the implementation of the in place, the standard EIF registration However, a series of (138) amend- Directive in national law. procedure is followed, including an opin- ments proposed by Jean-Paul Gauzès, Regardless of these changes, ion from Gibraltar counsel confirming rapporteur for the European Parliament’s Gibraltar continues to offer an attractive that the EIF satisfies the relevant Committee on Economic and Monetary EU base for managers and promoters Financial Services legislation. Affairs, has substantially amended this wishing to bring their products into an Joey Garcia is a senior associate and provision. EU regulatory framework and seeking funds specialist at law firm, Isolas

14 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com PROPERTY PROPERTY Office space set to double Developers and investors are showing fresh interest in building more offices in being the drivers. sometimes by temporarily Gibraltar International understands spreading people around - Gibraltar to meet demand from businesses being attracted to the territory by the that Atlantic Suites has recently been a chess board approach, prospect of low Corporation Tax within the EU, as Ray Spencer discovers. acquired by a UK-based investment consor- Stevendale reports. “We tium that has set conditions on the types of are not anxious to turn Schemes announced and now in the e-gaming companies, private banks and services operation and an asset management business it wants to see occupy the building people away.” planning pipeline are set to nearly insurance firms. business, have taken up most of that space. - hence the low key launch. Edward Macquisten, double the total estimated 94,000m2 But planned new office development Now Ocean Village is investing in director of Gibraltar 2 of existing offices on The Rock. could add an estimated 9,000 jobs in 25% more space now another seven-storey block with 13,000m Chamber of Commerce, Four floors of offices just released at Europort’s Atlantic Suites. Some of the offices could be Gibraltar in little more than two years, However, Europort – at present Gibraltar’s of office space and 600 car parking spaces. points out: “Gibraltar’s Sready for occupation in 2012, and some assuming any existing space that is vacated largest single office development, built in The block on the car park behind lack of office space today can act as a brake estimated £120m project will begin in the unexpected space is available now! (in favour of the new developments) is also 1992 with 47,000m2 as a speculative Marina Bay has outline planning permission on the influx of new businesses; they look at first quarter of this year. The new developments cannot come taken up. That is good news for venture by Danish firm Baltica for an esti- and work is expected to start by summer for what we have and pause before making any Local business leaders had been doubt- fast enough, because a market survey last government revenue in tax contributions. mated £200m - has just increased its useable completion in stages from the end of 2011. decision, although the pressure has eased a ful that the project to create what will summer by leading local surveyor, Brian The Francis survey suggested that area by 25 per cent. little with the current economic situation. become Gibraltar’s largest office develop- Francis, found that an estimated 99 per cent despite the potential demand for offices, Low-key marketing began in December Desperate need “Even so, Gibraltar Inc. needs to be ment - four blocks totalling 38,000m2 at of existing space was at that time sold or let. there were only small amounts of available of 4,000m2 of quality office space in its fifth “We desperately need more office space in able to offer good quality office accommo- Midtown - would proceed! Since then, the current available space is space, each with relatively small floor block – Atlantic Suites - in the 14-storey Gibraltar. There are three large companies dation. Today, banks require more security Rock Tower, the £30m first 13-storey, even less – it has around halved to become plates. building that also offers 120 luxury apart- trying to come here – two have told me that and commitment from prospective tenants 10,000m2 block with parking - on the site 0.5 per cent, just 4,700m2! These included the recently completed ments. they only want to be at Ocean Village and purchasers before releasing money for of a multi-storey car park just outside That creates problems for existing busi- Waterport Place, bought speculatively by Already, a quarter of the office space because of the lifestyle and associated new office development, but certainly there Gibraltar’s city walls - gained detailed nesses – particularly in the e-gam- has been reserved for an expanding leisure and residential facilities”, says Brian is confidence in the medium to longer planning consent in September 2008. ing and finance sector – that are Gibraltar Financial Services Stevendale, the Village’s sales director. term”, he explains. Montagu’s chief executive, James looking to expand their Gibraltar Commission, which will more than “However, we don’t have any space for Brian Stevendale added “Funding is Garbarino, explains: “The delay has been operations and transfer staff, prin- double its present office area in them at present. One is a 40-staff London definitely not a problem for our planned caused both by local land possession issues cipally from the UK. another Europort block from this market trader, the other employs high-earn- Royal Ocean Business Plaza block – being and the global economic situation, but the Finding sufficient office space summer. ers almost exclusively, which is good for creative, we have found several people keen funds are now in place. It is expected to take could also be a problem for new “We have over 96 per cent occu- Gibraltar because of the potential local to invest and the money is in place, although 30 months to complete. firms attracted by low Corporation pancy in the four original blocks, spend on goods and services, as well as not necessarily involving bankers.” “There is a strong demand now for Tax! and since the departure of property. offices – 25 per cent at Rock Towers has Whereas securing sufficient Gibtelecom and S G Hambros, nego- “They bring huge wealth to this £120m project starts been reserved – both for sale and to rent, residential accommodation for staff tiations are in progress with a couple jurisdiction”, he emphasises. As if to reinforce that view, Commercial particularly amongst local firms seeking to used to be an issue, where to locate of other financial services firms “In the meantime, I am attempting a Developments Investments (part of expand or move from rental to owning their the business premises has now Artist’s impression of Mid Town £120m development superimposed on land it requiring extra accommodation,” sticking plaster approach, by accommodat- Montagu Group) has revealed to Gibraltar offices.” One floor of 1,180m2 was sold to will occupy, with Rock Tower (right) now being started. emerged as a potential obstacle, declares Europort managing direc- ing an advance guard of 20 people in a firm, International that construction of its Continued page 18 such has been the success of government private investors where 90 per cent of tor, Lawrence Isola. policies in providing an appealing base for the 7,900m2 space is now let (mainly to Europort originally had nine blocks but companies. e-gaming businesses), and also in odd spots initially space proved difficult to fill; plans and other environmentally friendly and Expansion of business activity is needed within the Ocean Village mixed use marina, to incorporate a 5-star Hyatt Regency Hotel energy efficient solutions, although to help off-set the loss of revenue from a retail and office development. on the Atlantic Suites site also fell through. A 2020 vision Holliday told Gibraltar International that reduction in the present 22 per cent tax rate, BFA’s sales & marketing director, In the late 90s, a Danish insurance com- “we do not rule that out for the future”. only part of which is expected to be made Maggie Mifsud, says that already 220m2 of pany took over the venture when just 40 per “A long term vision on how Gibraltar will ment, whether small or large scale,” Government-sponsored projects are up next year by extra income from the exist- the 780m2 unlet office space consisting of cent of the space was occupied, and shortly develop”, is how the Gibraltar Government Minister for Development, Joe Holliday, not formally subject to the policies and ing Zero Rated businesses, including some four offices, is under negotiation. after, blocks 1-4 were sold to the describes its new Development Plan that told a launch press conference in December. requirements. “Space is going fast; there’s very little Government and transformed into the pres- sets out strategic goals and planning policies “It also encourages a more sustainable Guiding principles set out in the plan, available at present”, she notes. ent St Bernard’s Hospital, leaving an Arab for the next decade. approach to development through energy- include height restrictions for some areas “not many places where In the Village’s Royal Ocean Plaza consortium of private investors to buy the The Plan has been the guide to deci- efficient design and use of micro-renewable and a desire to improve public access to the block all of the 13,000m2 of offices have remaining blocks in 2000. sions taken over several months, even energy generation, although this has to be waterfront wherever an opportunity arises. there’s such commitment been let, and the 3,500m2 of offices at adja- Isola, then a director of BMI estate though it was only formally approved last balanced against aesthetic considerations Gibraltar has been divided into nine land cent Majestic Ocean Plaza was sold last year agency, became part of the Arab deal and he autumn after an extended period of public and the potential impact on surrounding use zones with specific policies and to speculative building to investors for their own use or for letting; succeeded in raising occupancy from the consultation. users,” he said. proposals formulated for each. already around a dozen small firms, includ- then 47 per cent to reach capacity by 2006, “It places much emphasis on improving But there are no cash incentives, nor The Gibraltar Development Plan can be ” ing two insurance companies, a customer with gaming, banking and government the standard of design in all new develop- actual requirement, for adoption of solar viewed at www.gibdevplan.gov.gi.

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Office space set to double from page17 sumption) and sea-water for non drink- ing use, and needs outline planning Argus Insurance more than two years consent. ago. Forty7, in Line Wall Road (and Rock Tower’s second floor has the opposite the Midtown development) has largest floor space with 1,201m2 quoted outline planning permission for a seven- at £4.3m (a cost of £3,550 per m2), while storey block and 1,850m2 of grade A the 500m2 top floor is smallest and most offices with similar design features, expensive at £5,000 per m2. However, including a landscaped roof area and Boyd Group’s Forty7 office development site seen Garbarino says the building design numerous terraces. from Kings Bastion. allows maximum flexibility for space Half of this block has been pre-let to cautionary note. “Gaming for some time configuration from just 200m2 and Marrache & Co, one of Gibraltar’s lead- has been a strong driver for commercial “prices may need to be tweaked”. ing law firms and work is expected to property demand and there is a big “Although we have outline permis- start shortly. dependence on its continued success, but sion for a mix of residential, office and The existing facade of Boyd House the current trend for mergers between the commercial use, my view today is that we on Main Street is being retained and out- companies may lead to a reduced need would build mostly offices with a few line planning consent gained for nearly for existing offices in the medium term”, studio type apartments for use by firms 300m2 of retail space and 700m2 of he feels. with executives requiring temporary offices, with work anticipated to start by Gibraltar’s newest commercial proj- accommodation”, he maintains mid-year. ect is at the ICC shopping centre off “However, it’s difficult to predict Boyd is led by Ronnie Nathan, Casemates Square, where owner Basi future demand when it will take us ten or Capital’s chairman, who intends to Properties is looking to add two addi- more years to complete this tional floors of offices. project.” Garbarino acknowl- Office space winter 2009 In addition, approval was edges. New Locations To be built Sold/let granted three years ago to the Midtown 37,000 2,500 Rialto House 6,400 - Eastside Development master Three more coming Forty7, Boyd House, ICC 2,750 900 plan, incorporating residen- First strong indications that Former MRC site* 8,000 - tial, hotel and potentially the Eastside project 19,190 - investors were looking more Business Plaza, Ocean Village 13,000 - second largest single office positively at office develop- Totals 86,340 3,400 site of 19,190m2, but there ment came late last year when has been no ground works on Existing locations Available now Sold/let Boyd Estates revealed that it Atlantic Suites, Europort 3,000 1,000 the scheme. has spent £12m-£14m over Waterport Place 780 7,130 A 0.24 hectres site – two years acquiring three Leisure Island Business Plaza, Ocean Village 365 3,535 similar in size to Waterport Majestic Ocean Plaza, Ocean Village - 3,500 properties in Gibraltar – two Royal Ocean Plaza, Ocean Village - 13,000 Place - is also marked for office projects and a small Europort 600 15,400 office development near retail and office site. Other (BFA survey, 2009) - 46,000 to Tradewinds on land Totals 4,745 89,565 The Boyd Group is a con- once occupied by the * estimated size of site office potential sortium of Capital & Source: Gibraltar International Magazine research, early January 2010 Mediterranean Rowing Club. Overseas Holdings – with 38 Temporary use as a 86-space years’ experience in redeveloping com- undertake a further three undisclosed public car park is being sought by mercial, retail and residential properties commercial projects in Gibraltar, as part Montagu Properties, a private investor in the UK and abroad - a local private of a separate consortium! (unconnected to Montagu Group), who trust family investor and a bank. As Nathan says: “Gibraltar has tra- bought the site last year from Taylor The nearly 10,000m2 of space is ditionally suffered from a lack of Grade Woodrow. expected to be completed in phases A offices and suitable retail units; there is Further in the future is the potential between 2011 and 2013 bringing the a pent-up demand. These planned proj- for office redevelopment, along with stor- total investment to £60m. ects will go some way towards alleviating age and distribution at the government- The largest, Rialto House on the site the chronic undersupply of space owned old Desalination Plant and cur- of the old Continental Hotel and Rialto available.” rent Electricity Generating Station that is Cinema in Old Town, will account for expected to be decommissioned in two thirds of the investment and provide Some caution too around three years’ time. 6,400m2 of office space, with floor plates He feels The Rock has “escaped the As Ocean Village’s Stevendale of 400 - 1000m2, as well as a 500m2 worst of the global downturn, remaining remarks: “We have found it easy to sell ground-floor retail unit fronting Main stable and continuing to grow as firms off-plan and for rental. We are investing, Street. from the financial, legal and online because we believe in Gibraltar; there It incorporates sustainable features gaming sectors continue to locate in the aren’t many places in the world where such as fixed sun shading, double-glazed territory”. you will see such a level of commitment façades (to reduce air conditioning con- However, Europort’s Isola sounds a to speculative building.”

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London Gatwick. Within three more His father was “exceptionally sup- of the franchise arrangement with BA years, GBA was working 28 flights a portive and experienced in the world and and the change of direction to today’s week from the London hub. prepared to shower business acumen on multi-faceted business. It was a defining Still flying high “We got into the airline business in me from a very early age - the equivalent moment for Bland Group. 1931, it wasn’t until the last 15 years that of a PhD in business”. “After much research and analysis of the airline came to dominate our He worked alongside Joe for 27 options for survival, the exit strategy Compared with the high risk airline business he father) and his younger broth- economic activity and our success as a years. James became chairman of Bland seemed most sensible”, James says. er John, disagreed on the way family”, James observes. Ltd, effectively the trading operation, in Some Group diversification had used to run, James Gaggero now has a range forward for the business and In 1995 – 13 years after joining 1987 and Group chairman 20 years later. begun prior to the sale of GBA. Bland of enterprises spread geographically, with a decided to progress separate- Bland - James bought out BA’s 49 per It wasn’t a question of taking busi- Travel coaches and car hire, and Gibair ly. The shipping agency, cent stake in GBA for a price that he ness risks either: “when you are young, ground handling date back to 1947, the better profit stream and considerably less risk - stevedoring operations and describes as quite modest. you don’t know what the risks are – it Southampton-based Cadogan Holidays and more than £100m cash to invest! Ray cable car facility in Gibraltar, “My father didn’t believe it would be was exuberance and enthusiasm that was a major investment in 1954 and Spencer finds out what makes the Bland Group together with other considera- possible to persuade BA to release its drove some of these things on, in a way Bland acquired the Rock Hotel three tions, were devolved to John interest, let alone at a price which we some people would have said was years later. Travel agencies in Spain, the one of Gibraltar’s most enduring businesses. in a new company, reviving would be able to afford, but he irrational”, he concedes. UK, Channel Islands, Malta and the name MH Bland. supported me.” In 1997 he joined chief executives of Morocco were also added. n a world where even the a matter of months, the financial world James, who having just completed a large business corporations from across But since 2006, to help replace the biggest banks were at risk came unstuck and within six months of short service commission in the Irish Gatwick move ‘fundamental’ the world on the renowned US Harvard GBA business, nine other business – some of failing, to find one’s- the deal most people were being really Guards, joined Bland in 1982 aged 23. Later that year, GBA joined BA as a fran- Business University’s flagship intensive large - have been added, four in the past self without any borrow- quite generous in their acknowledgement “My father was very supportive of the chise partner. “I recognized that it would Advanced Management Programme. year in four key investment areas – engi- ings and a veritable war of our good fortune”. idea that I should come back to Gibraltar allow us to accelerate our growth, but a “I was surrounded by 160 super- neering, transport, travel and real estate. “Ichest was very fortunate indeed”, The Bland Group is this year cele- and join the family business which he point would then be reached where we bright people. The thing that surprised These are at the root of Gaggero’s remarks Chairman James with typical brating its 200th anniversary. James’ viewed as a relay race involving the fam- would not be able to afford to buy them me was that there was nothing that I strategy to diversify risk by location and understatement. ancestor, Joseph Gaggero took over the ily in a multi generational endeavour. It out, so it was critical to execute BA’s exit learnt - a business philosophy, discipline by business sectors, in marked contrast to Rarely interviewed, James is dis- Bland ship agency in 1891 with his was he who persuaded me of the merit of from the company before we took the or anything of that kind – which I hadn’t the previous overwhelming dependence cussing his business strategy following brother Manuel - great-grandsons of the returning to our family’s home town”. risk in expanding GBA. already picked up through good business on the airline. the sale of GB Airways (GBA) to easyJet first Gaggero to settle Initially understudying various Bland “Expansion of services on the practice, through my father and the for £103m two years ago. in Gibraltar 90 years departments, he gained most experience London route was important, but mov- people who I mixed with. Substantial property assets Aviation has formed part of earlier from Genoa. at GBA “where I then learned what our ing the GBA headquarters to Gatwick “However, it put much more struc- Gaggero won’t reveal much financial the Bland Group for three genera- airline operation was about – basically, was absolutely fundamental – we had too ture to the thought process of building detail about the Bland business: “It’s a tions of Gaggeros and began when a small daily scheduled air service many eggs in one basket.” and developing businesses and some of private, family business and I like it that in 1931 Sir George Gaggero across the Strait”. That important decision was taken the key components, and how to set way. Every time we give away some launched the then Gibraltar GB Airways also flew a couple of jointly by Joe and his son, but James about solving problems, creating a detail about our business, people start Airways and pioneered flights flights each week to London under a largely drove it. The decisions to buy out process and becoming more efficient - trying to dissect it, and it’s of no benefit.” across the Straits of Gibraltar to class 5 license operated by Britannia BA, the franchise and the development of that was invaluable,” he notes. Bland now employs some 740 people Tangier using an amphibian aircraft. Airways, which provided crews and air- the route structure- particularly out of GBA had 16 aircraft in operation at in 18 businesses and “the critical thing is At its peak in 2007, GB Airways craft. That meant GBA outsourced the Heathrow - were all key. one time and another as back-up, the that we don’t have any borrowings, plus with a £300m turnover, employed 1,000 business of flying to a third party, “With hindsight, Heathrow was firm buying and operating each for two we have substantial liquid assets – over staff and carried 3m passengers annual- but retained all economic risk and especially lucrative”, James reveals. or three years before entering sale and £100m at present - and substantial real ly in 16 modern A320 aircraft on 44 management. “When we sold GB Airways, it enabled lease back arrangements. estate assets; there are tens of millions of routes from the UK across southern “When the frontier opened I was us to greatly increase the amount we “Frankly, I was always amazed that pounds of property that are not shown Europe, the Canary Islands and North able to exploit my lack of knowledge received beyond that paid by easyJet. we could get credit terms that were anywhere”. Africa. The Gaggeros became one of about the risks to expand significantly James had no previous business incredibly attractive and in many ways Included in the property portfolio “To contemplate exiting from the Gibraltar’s great merchant dynasties, the number of our flights to the point in experience. Having been at English better than BA; we were given very pref- from 2000 is the former GBA headquar- very business that had served our inter- progressively developing further into 1987 where we could justify leasing our schools since age seven, he did not erential, almost Sovereign rates”, he ters at Gatwick Airport, bought from ests so well, was not an easy decision to shipping, introducing port and airport first 737 aircraft – that was quite progress to university and instead went recalls. BAA. The Beehive, a Grade II listed take”, 50 years old Gaggero notes. services, funding the Gibraltar Cable Car exciting”, James enthuses. to Sandhurst Military Academy rather But James saw how BMed, another building, saw a £1.6m refurbishment last “With the benefit of hindsight, it did- project, buying the iconic Rock Hotel By 1989 there were three GBA air- than continue with formal education. BA franchise partner, had been adversely year to provide 47 high-end individual n’t take very long to be proved how right and spreading beyond Gibraltar. craft, and with the airline’s own opera- Nevertheless, it was “a three-year, affected by the Beirut crisis without BA serviced offices in a joint venture with we were in making our decision. Within But in 1986, Joe Gaggero, (James’ tor’s certificate, the base moved to phenomenal life education”. support. In part, that prompted the end specialist, Orega. Continued page 23

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Continues from page21 developed”, James declares. Airport South Terminal that Bland A third of the space has already been He firmly believes: “There is an ele- bought in 2007 – is doing “very well” taken in the building that “dates back to ment of British engineering and manufac- and expects this year to open new offices 1935, right at the very beginning of civil turing excellence with huge potential that in other airports around Britain. aviation, which coincides with our own is seriously under-rated and the challenge “It’s difficult to imagine a set of cir- involvement from 1931”. is to find a way to bring these to fruition. cumstances which could be worse for the Another portfolio property histori- There’s no better time to be going in – airline sector, and some airlines - literally cally linked to Bland is the former there’s no merit in buying into businesses fighting for survival - are doing very Admiralty-owned Cloister Building in when they are at their peak”. dumb things, given there’s too much Gibraltar’s Irish Town. It was remodeled capacity at this time”, James observes. by James’ great, great grandfather Joseph Talented individuals He’s adamant: “Service cut backs Gaggero and his brother Manuel in 1891 Gaggero sees similarities with Bland were inevitable. Gibraltar is not even a to provide a home for the family and for Group’s hovercraft businesses bought in conversation in a meeting, it’s a financial the business, and James now shares the mid-2008 – Hoverwork and Griffon – decision racked up against a multitude of building with his cousins at MH Bland. and merged into a single entity last year. other decisions”. The 1,100 year old Encombe Estate James is candid: “They have been Although it saddens him that easyJet in Dorset, complete with farms and 3.5 around for some 50 years, run by talent- has halved Gibraltar services to just one a miles of World Heritage coastline was ed individuals, who are very good at day for this year, “I have absolutely no bought last June by James Gaggero as a design and building technically excellent reservations about easyJet being the ben- hedge against inflation. “This investment amphibious and hover craft, but lack the eficiary of the efforts of three generations made better sense to me with a long term disciplines and business acumen and of my family”, says James. view than say, owning gold.” finances to get to the world stage”. But if Bland still owned GBA it prob- Bland’s largest single business Adrian Went, Griffon Hoverwork’s ably would not have cut services. acquisition was in late November - managing director, told the Daily “Gibraltar was one of five good business Weymouth-based, Universal Engineering Telegraph: “As a family investor organi- routes we operated. The Gibraltar route (Charlestown), with 250 highly skilled sation (Bland), their eye is on the long in the hands of a focused individual is staff and £25m annual sales of specialist term, whereas a venture capital investor one that works. equipment for the aircraft, nuclear and might only be looking at three years.” oil industries, as well as armoured That has meant the firm adding 30 Economic ‘magic dust’ vehicles for the military. staff to bring the total to 120, supplying “From our perspective it was the main “The challenge for Universal was 39 governments on six continents and show in town. It was our home city and that the enterprise had reached critical forecasting sales rising to £22m this year the economic activity we generated local- mass, but the founders who ran it didn’t – up from £11m in 2009 - and £35m next ly was sufficient to cushion the immedi- have the resources to drive it forward, so year. Using a new body design developed ate impact on airline operations”, with we are adding our business disciplines more from lightweight shipbuilding than people staying at the Rock Hotel, taking and cash to make their further develop- aircraft, and high-performance diesel a tour, travelling on Blands buses, or ment possible”, explains James. engines has both raised performance and using its airport handling company. reduced the price and maintenance costs It’s what James calls “magic dust £4m military investment of its hovercraft. Current orders range sprinkled throughout the economy”. He’s As an early result, the number of from small four-man craft for Abu insistent however, that a new Gibraltar Universal’s demonstration Ranger mili- Dhabi’s special forces, to a 180-seater airport terminal is absolutely necessary, tary vehicles – “a revolution in terms of passenger craft similar to that used by sis- though he was daunted by the reported offering protection so far in excess of ter company, Hovertravel, to link the Isle £50m “eye-watering cost – I just wish it anything on the market today to troops of Wight and Portsmouth. could be done more cheaply”. in counter insurgency roles and opera- Teleticket Travel, a Brighton-based However, James is clear from experi- tions like Afghanistan and Iraq” - is flight consolidator, has had three good ence that “you need good communica- being increased from one to four at a cost years under Bland ownership. “The eco- tions to really have a chance to succeed. of roundly £1m each. nomic downturn has helped provide Gibraltar cannot be isolated; it cannot be The first vehicle is being tested, and opportunities, but it’s very tough,” cut off from its market place”. “the Canadians, Malayans and British Gaggero admits. “The travel trade is Married with two sons James shuns have short-listed our vehicle for final tri- catching the cold that swept across the publicity, although in this Bland Group als, because its extraordinary design financial sector last year.” bicentenary year, “it’s necessary and right focused on protecting those inside makes He nevertheless foresees “a bright that we put a human face on what we are it possible to use it as a tank, rather than and exciting future”, for Teleticket after doing, particularly in Gibraltar.” simply as a mode of transport, but with the next 12 “difficult” months and, simi- Few people will recognise James; his high speed and maneuverability. larly, for Cadogan Holidays, the only photograph (on page 20) is the only one “I am acutely conscious of the inad- Bland businesses now not making profit. he will permit to be used, “not because equacy of fighting wars without proper Conversely, Skybreak - an airport I’ve more grey hair now, but because it’s kit and I know this sort of kit needs to be representation company at Gatwick not about me – it’s about Bland.”

www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 23 DATA PROTECTION DATA PROTECTION

Data controllers are obliged by the is subsequently passed to a third party Data controllers must consider the Keeping personal information next Principle to only collect and keep without the knowledge or consent of the damage that might result if appropriate personal data for one of more specified individual and then used for marketing measures do not exist and requires adop- purpose(s). When collecting personal products or services to them. tion of appropriate security for their own means maintaining principles! data, it is important to ascertain, what it environment. is going to be used for and, more impor- Not excessive The Gibraltar Health Authority, Much of the information and images stored by tantly, make that known to those about The next two Principles providing require Income Tax Office and banks, for exam- the Principles, failure of which will see a whom the data is being collected. data collected to be adequate, relevant ple, are expected to maintain substantial- public and private sector businesses is out of date breach of the DPA taking place. Data controllers must ensure that the and not excessive for the purposes for ly higher levels of organisational and or inaccurate and in breach of the law, much to the data being collected is only for a specific which it was collected. This means con- technical security measures than smaller Fair and lawful purpose. Collecting information about sidering how much information is actual- enterprises that process less sensitive per- surprise of the organisations involved, following Data controllers must obtain and process someone simply because it may serve ly required for the purpose(s) - irrelevant sonal data. There must be adequate pro- investigations by Gibraltar’s Data Protection any personal data in a fair and lawful some purpose at a future date, is or excessive amounts of data breaches tection against unauthorised access to Commissioner’s Office. manner. This is probably the most incompatible with the Principles. the Principle. data through electronic networks. ambiguous Principle in the DPA, because Indeed, the Principle which follows Quite possibly the most common In conclusion therefore, protection ince the Data Protection Act the ‘fairness’ is open to interpretation. states that personal data which has been breach found in Gibraltar of the Act is of personal data goes beyond simply 2004 (DPA) came fully into Fortunately, this has been addressed collected may not be used in a manner keeping data for longer than necessary adopting a password policy and locking force, the Commissioner’s com- on many occasions both locally and by which is incompatible with that for for the original purpose. doors at night. It requires proper consid- pliance teams have been investi- Data Protection Commissioners in other which it was originally collected. Locally, there is a trend - particular eration of the Principles and proper gating complaints and potential jurisdictions and so a clear picture has In essence, even if personal data is within the public sector - to store indefi- implementation in each of the processing Sbreaches of the law. developed of what fair obtaining and collected for a specific purpose and nitely information with little or no plans operations being carried out by the data There has also been a surge in processing is. intended to be used as such, the data con- to discard or purge unnecessary data. controller. Indeed, much of the work enquiries from both public and private Essentially, a data controller must troller is not allowed to then use that Maintaining appropriate levels of being carried out by the Data Protection sectors. the basics of DP are common ensure that when obtaining any personal information for another purpose. organisational and technical security to Commissioner’s Office has been just that knowledge. Although the basics of what data, it does so in a manner which does An example of incompatible use prevent personal data being accidentally – educating data controllers about their is involved are generally understood, we not prove to be intrusive upon an would be information collected legiti- or intentionally accessed, destroyed or obligations to ensure Gibraltar’s personal have found that there is a lot about Data individual’s privacy. mately to maintain client records, which altered is the final Principle. data has a high degree of protection. Protection, which many are not fully Obtaining information about aware of. employees by monitoring their activities This includes the obligation to pro- Maurice M. Hook Gibraltar Data Protection without their knowledge or consent for Commissioner’s Compliance Manager vide information held about individuals example, is likely to be considered unfair. upon request and the need to purge nesses and organisations assert that their Data controllers must ensure that certain information that is no longer rel- data protection requirements are met when obtaining personal data it is done evant or necessary. through the use of computer passwords so, wherever possible, with the full As a result, our teams have been and filing cabinet locks. knowledge and consent of the individuals going out to spread the word that any However, what this actually reveals involved. information or images kept by organisa- is that there exists a lack of understand- tions on individuals must be accurate, ing of data protection requirements. Keeping up to date complete and up-to-date – usually with The DPA is most certainly not an The second Principle provides that per- the knowledge of those affected. easy piece of legislation to follow. It is sonal data must be accurate, complete Failure to do so can involve enforce- lengthy, technical, complicated in many and up to date. ment or compliance notices and legal places and almost certainly indigestible Although this seems to be nothing action resulting in fines. with one single reading. other than good business sense, it has The Data Protection Commissioner’s But within its ambits exist its most been surprising to learn that many local Office has been in operation for over important feature, that being the data data controllers are in breach of this three years and in this time, it has under- protection principles (the “Principles”). Principle! gone a variety of activities all geared The DPA derives from a European In particular, many data controllers towards achieving compliance with the Directive and so the Principles are in the public sector maintain records dat- Act. common to all European Member States. ing back many years meaning that much If an organisation uses personal data of the data stored is now out of date - for Lack of understanding about individuals - either in the form of example, the original CV’s and applica- Throughout this time, one issue regard- customer data, or employee data or even tion forms of applicants who have served ing data protection has arisen continu- CCTV images of identifiable individuals for several years. ously, it is common to both the private (in a retail outlet or for building security Some investigations have arisen after and public sector, and is seen across most for example) - the organisation will auto- finding data controllers processing industries in Gibraltar. matically be a data controller under the inaccurate data - incorrect mailing When faced with the question of definition in the DPA. addresses, for example - which has result- what measures are being undertaken to Data controllers, by virtue of section ed in sensitive data being disclosed to ensure personal data is protected, busi- 6 of the DPA are obliged to comply with unauthorised persons.

24 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com www.gibraltarinternational.com GIBRALTAR INTERNATIONAL 25 INVESTMENT INVESTMENT An oasis... requirements, and applica- rate income tax calculations. UK Revenue to lift tions were put on hold or For individuals who have Helping hand for placed elsewhere. been non-UK tax resident for 55% tax threat to The pension sector – five complete tax years, new businesses including law firms and spe- QROPS provides significant Demonstrating its commitment site, www.investgibraltar.gov.gi cialist management companies benefits over the strict UK to do all it can to Holliday explains that the Gibraltar pensions – argued that a zero tax rate regime. encourage new business, the new initiative recognises that A ‘nominal’ tax on pension Gibraltar is understood to be still amounted to a tax charge They can take control of Government’s InvestGibraltar more people are using the income from funds transferred preparing draft legislation to and gained top level UK legal investments and bequeath any Office has launched a website Internet to conduct business in a busy world under the UK Qualified tax pension income received advice to support their claim remaining funds. to act as a gateway for business and various forms of research Registered Overseas pensions from a QROPS and it is Robin Ellison, Head of But the scheme has been related advice, guidance and and the government “appreci- bedrooms Scheme (QROPS) is to be expected to be implemented Strategic Development – fraught with problems over support. ates that success in business is 104 Bedrooms and suites in a colonial introduced by Gibraltar by summer. Pensions at legal firm Pinsent interpretation of HMRC Joe Holliday, Minister driven by people that are usu- style all with a sea view Government after reaching Local pensions are unaf- Masons LLP, said that it was rules. Schemes based in for Enterprise, Development, ally overcommitted, work long conference facilities agreement with HM Revenue fected by the proposed new beyond the Revenue’s remit to Singapore were removed from Technology and Transport, hours and never have a minute Full upgraded conference facilities & Customs. tax and there will be no tax on demand tax is paid locally, HMRC approved list and says “The business community to spare”. available for board meetings, training The move has been neces- the value of fund transfers. provided rules were observed funds subjected to the penal now has access to relevant and A business support site, as courses and presentations sary because HMRC threat- “A huge amount of busi- to retain the spirit of UK pen- 55 per cent UK “unauthorised up-to-date information twenty- well as a databank of informa- Internet ened to remove Gibraltar as ness has been lost during the sions legislation. payment charge” after local four hours a day, seven days a tion, offers users up-to-date FREE Wireless broadband available an ‘acceptable’ jurisdiction past year as a result of the “We didn’t lose that case, providers allegedly breached week.” information on a variety of throughout the hotel and an internet after ruling that the territory’s uncertainty and other jurisdic- it just that we didn’t pursue it the Revenue’s strict rules. The InvestGibraltar Office business sectors and answers room for our guests to use Zero Rate tax was against the tions have been capitalising on when it became apparent that Guernsey providers also has a remit to encourage, pro- questions relating to commerce weddings spirit of UK pension rules. our dilemma,” acknowledges a solution was possible.” had to change in November mote and facilitate private sec- in Gibraltar. Business tools, The Rock is an ideal wedding venue Failure to agree could David Erhardt, chairman of Gibraltar pension fund the practice of allowing 100 tor development and invest- include guides on ‘How to whether it be a small intimate wedding or large family gathering. We are also a have meant private companies the local Association of providers point out that all per cent cash payouts from ment and has implemented a make a Business Plan’ and an recognised venue for civil marriages and individuals facing up to a Pension Fund Providers. pension income is counted pension funds after UK user-friendly ‘3 clicks and you editable ‘Financial Forecasting and ceremonies can now be conducted 55 per cent tax charge on pen- But he revealed: “We still first in Gibraltar’s progressive Revenue intervention. are there’ approach to the web- Template’. in various parts of the hotel sion funds relocated to the ter- have a lot of transfers waiting Swimming Pool ritory. from people who have been Outdoor swimming pool with pool Hundreds of retired prepared to wait, rather than side bar and pool side menu. We Gibraltarians, who have go anywhere else. They want- welcome private pool membership, worked in the UK for years ed to have their pensions in our lido club, with private pool hire Specialist Tax Advice for parties and barbecues and built their pension funds, Gibraltar.” would face the penal charge, The UK Revenue notified Restaurant and others prevented from The Rock’s providers in April, The restaurant has stunning views over the bay. Our “house” menu is transferring their fund to their of its concerns that Gibraltar’s Tailored to your needs excellent value for three courses home territory. tax treatment for pension including an aperitif Manzanilla, To resolve the problem, income breached its QROPS olives and coffee. A full á la carte menu along with a superb eclectic wine list is also available We provide specialist tax advice on a whole fi eld of private wisteria terrace Satisfying business and business issues, making it easier for clients to safeguard The Wisteria Terrace for lunches, their family assets and wealth. dinner, barbecues, afternoon teas, lunch appetites evening drinks and informal dining Deloitte offers a straightforward personal service specifi cally Business lunches – “simple tainment in the evening, so the Barbary bar tailored to clients’ requirements. We make the most of our and not messy to eat, served jazz on Wednesdays and a Barbary Bar and terrace for a expertise and experience to reduce your tax burden and plan quickly” – were unveiled Saturday £25 set-price, three relaxing drink and for the wine effectively for the future. buff, a choice of nine wines by at a promotional event in course dinner with music for the glass mid-January at Queensway dancing is proving popular Lounges Quay to meet the growing for this year”, says Mike. Take a good old fashioned English needs of Gibraltar’s business The business lunches fea- tea in one of the spacious lounges community. Jazz Nights and turing rack of lamb, guinea intimate dinner dance meals fowl and fresh fish, cost £14 are also part of the innova- for two courses and £17.50 tions being adopted by Mike for three courses and can be Forster, owner of 14 on the served quickly to fit in with For more information, call Joseph L Caruana or Stephen J Reyes on: Europa Road, Gibraltar Tel:+350 200 41200, Nightline: +350 200 48282, Fax: +350 200 41201 Tel: +350 200 73000 Quay restaurant, in 2010. the pace of life for profession- [email protected] Fax: +350 200 73513 “We find that people are als looking to fit in a good E-mail: [email protected] looking for a variety of enter- quality meal. www.rockhotelgibraltar.com www.deloitte.gi

Merchant House, 22/24 John Mackintosh Square, P.O. Box 758, Gibraltar 26 GIBRALTAR INTERNATIONAL www.gibraltarinternational.com © 2008 Deloitte Limited. Member of Deloitte Touche Tohmatsu PEOPLE AND PLACES PEOPLE AND PLACES

Gibraltar’s World old office, separate from the Lectures in June. Relationship grows fixed line, wireless, internet demonstrates what can be elected its Chairman following Director responsible for new Kaiane Aldorino, the 22 years KPMG Isle of Man Hassans, Gibraltar’s NatWest has appointed Paul and data centre services, re- achieved through taking a her election as Chairman of business development. old Miss Gibraltar, operation. largest law firm founded by Sir Miles as Senior Relationship introduced the proactive approach in creating the parent company, Argus Kirby has over 15 years spectacularly has become the Having qualified as an Joshua 70 years ago, decided Director to head a new five- telecommunications opportunities for young Group Holdings. experience working in offshore 59th Miss World! accountant in Liverpool in the to invest in the series of strong corporate team apprenticeship scheme after a people, and equipping them With over two decades of financial services, initially with An administrative officer mid 90s, Mike moved to lectures “covering legal focussing on the financial gap of over 25 years to ensure with the appropriate skills to experience in the insurance Young Ridgeway in the UK as for five years in Gibraltar in 2001 to matters and politics that sector, including trust and Gibraltar trains sufficient serve the local community’s industry, Nicholl has worked an investment adviser building the human concentrate on the audit impact to raise the level of wealth managers, fund young home grown talent. technology requirements for at Lloyd’s of London and the an international client base resources of financial services debate in the territory on administrators, insurance Stefan Agripino, Jarred the future.” New York Insurance across a range of department of the entities and joined international issues”, says intermediaries, the gaming Buttigieg, Richard Cruz, Exchange. jurisdictions, with Gibraltar Health KPMG in May 2008 to senior partner, James Levy. industry and other Jaydan Fortunato, Tyronne A new chair Nicoll, who also is a particular focus Authority, she help re-establish the “We wanted to attract professional service providers. Garcia, Julian Sarmiento, Chad senior vice President of on the mining gained a place in KPMG brand on The influential personalities who Medina and Neil Wink, White Mountains Re sector in West the final after Rock. could make an impact”, he underwent NVQ Level 1 in Bermuda Ltd and Africa. winning the explains adding, “our practice basic hand skills and “on the responsible for She moved to Winning streak beach-wear Kaiane Aldorino is increasingly involved in job” structured training, operations there, is Mauritius to section and now bwin, one of the largest work overseas and has including a health and safety looking to continuing establish an office also carries the title on-line gaming firms in contributed significantly to the course with British Telecom in growth of the Argus Kirby Dupont for The Hemery Continental Queen for Miss Gibraltar has won eGaming growth of the firm.” the UK. Group across its Group - a Jersey Europe. Review Magazine’s prestigious Howard, who will be The apprentices are now Gibraltar, Malta and Bermuda based Offshore Trust Kaiane is expected to be a working towards an NVQ operations. Company and was the resident Sheila Nicoll successful ambassador for the Paul Miles Level 2 and ultimately a Level director. territory in a year when she 3 in Communications Mauritius move Now Kirby travels widely, will visit dozens of countries Paul has 35 years’ Technologies. Sheila Nicoll, a director of After six years in Mauritius, advising clients and third party raising money for charity. experience with RBS Group Luis Montiel Minister for Gibraltar-based Argus Kirby Dupont has joined STM professionals on the benefits of She began an Asia tour in and first moved to Gibraltar Employment, said: “This Insurance Company (Europe) Fidecs’ largest unit, Fidecs offshore structuring and January, including Japan, Around from Canterbury in 1998. Five public/private sector venture Ltd since 2004, has been Management Limited, as establishing personal trusts. Korea and Vietnam, advancing years later, he re-located to the Miss World motto “beauty Guernsey working for the with a purpose”. Bank’s real estate finance It is the first time About team, before returning to Gibraltar has achieved such Gibraltar early last year. recognition since first taking NatWest is now the only part 50 years ago and it is 26 bank in Gibraltar with two 14 On the Quay years since the Miss World & full-service branches for its contest was won by Miss customers, having repositioned Restaurant United Kingdom. ‘Operator of the Year 2009’ almost 69 at the time, was a its former RBS International prize for consistency of frequent visitor to Gibraltar offices at Coral Road to Separating out services, leadership in the and will make the summer complement its Line Wall Eighteen months after joining market, brand strength and Lecture one of his last public Road main office. A quick accountancy firm KPMG in commitment to responsible speaking engagements. He is deposit till has been installed Gibraltar, Mike Harvey has gaming. standing down as Member for and further improvements are A few weeks earlier, bwin Folkestone and Hythe at the promised this year. - which boasts over 20m General Election this year. customers in more than 25 Like Sir Joshua, who Communicating core markets - took first place became Chief Minister of success in the magazine’s ‘Power 50’ Gibraltar whilst working in Eight Gibtelecom apprentices, ranking for the second time law, Howard also has aged 17 to 22, have gained running. combined law and politics National Vocation having been a barrister since Qualification certificates Mixing politics with 1964 and a practising Queens (NVQ), after successfully the law Counsel, a year prior to completing the first year of a Mike Harvey Michael Howard MP, who was winning his parliamentary seat new four year apprenticeship been appointed a director, Leader of the British in 1983. programme, launched in Unit 14, Queensway Quay reflecting “the rapid Conservative Party for two Levy joined Sir Joshua at partnership with the Gibraltar development of the office” as years until 2005, and a former the small firm of Hassans in Department of Employment, Opening hours the result of work to develop Home Secretary, is to be the 1976 and now there are 70 Labour and Industrial 12.30pm-11.00pm, last orders 10.45pm key local relationships in funds inaugural speaker at the lawyers (24 as partners) and Relations. and insurance for the two year- annual Sir Joshua Hassan 245 staff. Gibtel, which provides Tel: +(350) 200 43731

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cousin had started to apply oil of the New Age acolytes - all perilously close to where no are designed to make one woman had gone before. think one is having a time of Spathetic Third, oil and excess self-indulgent, unguent pleas- body hair just do not go. ure when it’s really just re- act: I suffer from a Gaia-Guru, and only because And fourth, this was no hashed sports physio at three bad lower back I’d paid a hundred bucks in gentle, reassuring, quasi-erot- times the price, plus tax. which is treated, advance, plus tax. The Divine ic muscle-relaxant. This was I couldn’t wait for it to usually effectively, Assistant, whose aura-halo hard-core brutality, deep- finish. It was probably the by a medical bloke was almost visible, ushered muscle-and-ligament-stretch- most stressful time of my life. Fwho regularly beats it in his me into a cubicle where hung ing agony. Emasculated in mind, spartan treatment room. And a dressing-gown. Despite an initial brush body and soul, I all too quick- so, on with the story… “Please make yourself with the borders of The ly signed up to the final cost I’ve never really enjoyed comfortable with your experi- Exclusion Zone, the main and hurried out as fast as my cruises, as I don’t like to be on ence attire”, she said, which I ambition of the tips of her fin- oily feet would carry me. But holiday with 900 other, usual- assumed was Guru-Tongue gers was in pulverising the at least I had the wits about ly queue-jumping Italian, peo- for “Strip down to your Y- convoluted knot of fibres sit- me to resist the purchase of ple. Nowadays, even the kids fronts”. She’d probably never ting in my lower back. half a crate of creams, gels have opinions which, whilst heard of, let alone ever seen, a I now understood: my and other liquids. lacking in merit and weight, pair of M&S standard issue, wife, apparently part of this So, why is it called a Spa? are frequently and inoppor- Big Fat Bloke Y-fronts. I was female plot, had told them I still don’t know but it’s tunely articulated. tempted to leave my pair exactly what was needed to hard not to conclude that it’s We were on an Alaskan hanging from a branch of the free me up as the main bag- a female sexist conspiracy to cruise. I’d earlier hurt my Tree of Wellness in reception. gage-handler of the tour. boot men out of the hotel back - badly as it turned out - With some revulsion, I All the paraphernalia - pool and replace us with lugging luggage from donned the dressing-gown the noxious odours, the pastel wellness wave-sounds, pastel Vancouver, inland to Calgary and slippers, something I colours, the incense of rare colours and fancy smells. and back on the driving part never do in a hotel. I don’t Indonesian timber from man- And no hair, anywhere. of the holiday. The kids, know if other blokes are like aged forests, the flowery garb Chris Pitaluga expert in opinions, were con- me but I do not like wearing siderably less so in baggage- an article of intimate clothing carriage. that has possibly been previ- My wife, in a fit of com- ously donned by rugby play- passion and vacational exu- ers, mafia bosses, or George berance and despite my resist- Michael! ance, organised my first non- Another female who, sports massage at ‘The Spa’. I despite stockiness reminiscent was possessed of numerous of a sumo-wrestler and doing questions. Would I – would it her best to speak Guru- - be safe? Would I have to Tongue, asked me to lie face- undress? Should I shave those down on the couch, after bits? And what the hell is a removing the dressing-gown. Spa? With some trepidation, I Good job I’d kept the Y- arrived at the small reception fronts. to be greeted by a large- At this juncture, any haired, heavily-painted, ruth- notion I’d previously enter- lessly slim female, of uncer- tained of a massage being a tain age, dressed in a kimono pleasurable experience was and smiling beatifically at me forever extinguished: she’d as if I were an Enlightened only just started, but I was Being just landed from anoth- already having several er planet. uncomfortable sensations. I was immediately suspi- First, lying face-down cious, the trepidation justi- involves sticking the protu- fied. The place had been con- berant parts of one’s face in a sciously purged of any mas- hole that makes it difficult to culinity. I felt that admission move one’s head from side to had been granted by kind side without dribbling. indulgence of the New Age Second, Genghis Khan’s

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