Ministerial Statement The Honourable L. Craig Cannonier J.P. M.P. Premier of Bermuda The House of Assembly Friday, 20th September 2013 MEETING WITH HEADS OF OVERSEAS TERRITORIES Mr. Speaker, I rise this morning to inform this Honourable House and the people of Bermuda about the purpose and content of my recent meeting with Heads of Overseas Territories. Mr. Speaker, The meeting was held on the beautiful island of Gibraltar from 8th through 11th September 2013. I was pleased to be in the company of: • The Honourable Fabian Picardo, Chief Minister of Gibraltar; • The Honorable Hubert Hughes, Chief Minister of Anguilla; • The Honourable Orlando Smith, Premier of the British Virgin Islands; • The Honourable Alden McLaughlin, Premier of The Cayman Islands • The Honourable Ian Hensen of the Falklands; • The Honourable Reuben Meade, Premier of Montserrat; • The Honourable Dr. Rufus W. Ewing, Premier of the Turks and Caicos; and • Deputy Mayor Simon Young of Pitcairn. Mr. Speaker, I hasten to add that in December 2012, at the end of the last Political Council meeting of the United Kingdom Overseas Territory Association, or UKOTA, the Government of Gibraltar extended an invitation to the Leaders of the Territories to attend a plenary meeting in September 2013, prior to our next meeting with the United Kingdom as a group in November 2013. As host Government, Gibraltar paid for our attendance. For the avoidance of all doubt, the costs and expenses incurred through this trip were borne by the host Government, the Government of Gibraltar, and not by the Government of Bermuda. Mr. Speaker, It was interesting to note the commonalities that we share not matter our size or our location. From Pitcairn to the British Virgin Islands, from Anguilla to Bermuda, we found that we faced similar challenges: how do we stimulate creation of jobs to set our citizens on the path to prosperity?; what can we do to jumpstart our respective economies?; how do we balance the need to attract foreign investment with the need to protect the rights of our citizenry? Mr. Speaker, The primary focus of the meeting was to plan and set the agenda for the November 2013 meeting of the Joint Ministerial Council in London. The Joint Ministerial Council, or JMC, comprises political leaders from the Overseas Territories and Ministers from Her Majesty's Government. The JMC first convened in December 2012 to progress the implementation of the vision and strategy set out in the June 2012 UK White Paper entitled The Overseas Territories: Security, Success and Sustainability. A communique on the meeting was published immediately thereafter in December 2012. Mr. Speaker, In the Executive Summary of the White Paper, one can find the statement attributable to Her Majesty's Government which indicates that the United Kingdom is committed to defend the Territories and protect their peoples from external threats, ensuring their right to self-determination. This was also reiterated in the December 2012 JMC Communique, where mention is made of a shared vision for the Territories as vibrant and flourishing communities, proudly retaining aspects of British identity and generating wider opportunities for their people. Mr. Speaker, At that meeting III December 2012, it was collectively agreed by all Leaders, together with the UK Government, that a modern relationship should be built, based on partnership and shared values. All parties shared a commitment to the principle and the right to self-determination. Much has been made of the principle of self- determination, so if you would allow me a few minutes, Mr. Speaker, I would like to read and to reiterate an extract from the communique: It was agreed that the people of each territory have a right to choose whether or not their Territory should remain a British Overseas Territory. Any decision taken to sever the constitutional link between the UK and a Territory must be on the basis of the clear and constitutionally expressed wish of the people of the Territory. Mr. Speaker, Bermuda needs to continue to have a say and, where applicable, more say, III charting its future. Mr. Speaker, In Gibraltar, we discussed that each Territory is indeed unique and operates under its own Constitution, albeit some Constitutions are more sophisticated than others. We reviewed the commitment made in December that work will continue on modernizing Constitutions to ensure that they operate effectively. More importantly, we confirmed our beliefs that we will engage in mature dialogue on Constitutional issues and take into account the wishes of our respective peoples. Mr. Speaker, Our very meeting in Gibraltar was the outcome of an agreement made in December 2012 that the Territories would work more closely together. In fact, it was agreed that UKOTA would work on facilitating and reforming the ongoing relationship amongst the Territories, with particular focus to be placed on building greater capacity between us. As President of the Political Council I will be intimately involved in the implementation of the new strategy for cooperation amongst the Territories, which will be launched during the November 2013 JMC meeting. After that launch occurs, Mr. Speaker, I will bring a further update to this Honourable House. Mr. Speaker, In Gibraltar, there was the recognition that individually, we might not be regarded as great world powers, but that collectively, we have unharnessed potential to influence particular sectors of the world. Collectively, we represent approximately 500,000 people. We are world leaders in international business. We are world leaders in environmental initiatives. We are world leaders in biodiversity. Preparing to speak with a unified voice, Mr. Speaker, was our guiding principle. There was a realization, and I was proud to be a part of it, that the Territories must unite because there is strength, power and influence in numbers. Mr. Speaker, I wish to give a snapshot of the situation in some of our sister Territories. I do this because often in Bermuda we tend to lose perspective on just what we have achieved, even in the face of daunting economic times. Mr. Speaker, Montserrat continues m recovery and as a result, relies on most of its annual budget to come by way of financial aid from Her Majesty's Government through the Department for International Development (DFID). That notwithstanding, Montserrat, in collaboration with DFID, has focused its strategy in redeveloping its tourism market. Gibraltar has fared fairly well during the global recession and still remains the world's leading facilitator on gaming. Its biggest threat is that its right to self-determination is being challenged from Spain with potential impact for possible investment. Despite this challenge, Gibraltar has seen a 7.8% growth in GDP. Mr. Speaker, As one might imagine, the resumed powers given to the Turks and Caicos Islands following the suspension of its Constitution has left matters within the Island somewhat complicated. However, it is reported by the leadership that the Island's people are optimistic about the future. Even in spite of the suspension of the Constitution and the global economic downturn, tourism remains the main pillar of the economy in the Turks and Caicos. The tourism industry has allowed the Government to maintain its budgetary targets and keep the Territory operating above a deficit. The Government is now exploring options for economic diversification within tourism, such as building an eco-tourism market by utilizing nature reserves and natural park systems. Mr. Speaker, Honourable Members may be interested in knowing that the Turks and Caicos have identified a need to expend in access of $100 million to build a new terminal to meet the demand of tourists. The goal, Mr. Speaker, is not just to develop a new air terminal, but rather to situate the Turks and Caicos as an aviation hub for the Caribbean, given that currently, the only hub is located in Puerto Rico. Mr. Speaker, A second major project envisioned in the Turks and Caicos is to reconnect all the islands by way of bridges. This will assist in facilitating investment and also in consolidating social services for the Government. I wish to add that while this all sounds very promising, a major challenge exists for the Turks and Caicos on the international financial front, as there still remains in place a sovereign guarantee with several conditions. Mr. Speaker, On Monday 8th September, UK Prime Minister David Cameron stated in the House of Commons that it was no longer fair to label Crown Dependencies and Overseas Territories as Tax Havens. I can report, Mr. Speaker that the Territory Leaders responded through the media by stating the following: 'We, the Premiers and Chief Ministers of the Overseas Territories, welcome David Cameron's statement made in the House of Commons on Monday that it is unfair to label our Territories as Tax Havens. Our Territories are well regulated, independent financial services jurisdictions, and play an integral role in facilitating global business. We will continue to lead on meeting international standards of tax and transparency. This is a critical statement of support, Mr. Speaker, and useful in addressing at least one recent report that unfairly listed Bermuda on a black list. Mr. Speaker, In closing, I wish to inform this Honourable House that the Government will continue to utilize vehicles such as meetings of the Joint Ministerial Council and its sub-groups, to promote the interests of Bermuda in a global environment. While some may consider Bermuda as a mere dot on a world map, it is through such partnerships and efforts that we are able to boldly engage with others on a world stage as we stand firm and seek to promote our interests and those of our people. Thank you. .