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The Swan bomb

Local businessman Sir John Swan caused a stir at a meeting of Hamilton Rotarians today, with a stinging condemnation of the PLP government.

In an incendiary speech, the former Premier suggested that Bermuda is on the road to becoming a Third World country. Although the UBP didn't get off lightly either, Sir John reserved most of his scorn for the PLP:

They rose to power but they have not risen to the occasion because they view power as an entitlement rather than a privilege to serve.

They bring a sense of confrontation rather then conciliation, belligerence rather than humility and gracelessness rather than gracefulness.

Rather than examining issues with an open mind, they find it difficult to rise above ideology, prejudices and personal biases.

By personalizing power, some of our leaders undermine rather than boost national and international institutions like the Auditor General’s office, the Privy Council and even the office of the President of the United States.

The PLP promise transparency in their administrations, but they are very secretive. Consequently, they become very paranoid and insecure toward people that they perceive as “not like us”.

How times change. Less than two years ago he was singing a different tune. "I don't think Bermuda is under any threat because of the PLP," he told the Royal Gazette in December 2003:

Sir John also praised Government's handling of the six-year term limits on work permits. "The Government still has the right to exercise a level of discretion which it is doing. I think it is acting very responsibly quite frankly."...

He said the fear that Bermuda would go down the tubes under the PLP had been proved wrong. "Some of these boogey men have gone away. I admire the present Premier who's doing an excellent job of communicating and being inclusive.

"I think he recognised that he's got a mission to make sure Bermudians are treated fairly and I admire him for it."

He said Mr. Scott had given a lot of people confidence which was a very good thing for Bermuda.

Perhaps the events of the last two years have changed his mind about the Scott government. Or perhaps he no longer needs their help for his business projects. Either way, it'll be interesting to see what the fallout is from today's blast.

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He's definitely not going to get his McDonalds now.......fries with that?

The tone of John Swan's speeches vary according to how well his personal business is going. Just prior to the launch of Atlantis he was best friends with the Premier, inviting him to all the opening functions and telling everyone what a great visionary the Premier was. Now that the $30m white elephant has flopped the PLP are the worst thing to ever happen to Bermuda.

Where do you stand Sir John? Is it about Bermuda or Sir John?

Actually thought Swan made some excellent points.

It's funny - the extremists in the PLP and the four wackjob yahoos on Bermuda Freespeech are all decrying John Swan this morning. Ergo, he must be doing something right!

Indeed, I thought his speech was reflective of the gnawing worries that the middle of the road people - the vast majority - in Bermuda have.

John Swan believed in independence (under the stability that typified Bermuda at that time) ... I am not sure he feels so rah-rah under the current kleptocracy.

The important thing is that Swan chose a referendum: he let the public decide, even to his own political detriment.

In this age when most people are intimidated by Government into saying nice things they do not believe, I applaud John Swan for stepping foward and speaking his mind.

Onion, you may not be wrong, but don't think for one minute that the PLP performance & his Atlantis blunder are in no way related.

Why can't he fill his over priced tiny little apartments with high priced executives? Could it be that the PLP foreign labour policies have scared them all away????

Every day I hear of how another company is looking to move this department or that area out of Bermuda and back to the US, because they just can't bring in the people to staff it! And in the end THAT will trickle down to smoke the entire economy if we are not careful.

You have to admit, he said aloud what alot of people have been thinking. I specifically appreciated his speech when he pointed out that the media have let so much slide. Maybe this will wake them the hell up.

Combat banker, other developers are not having trouble filling their town houses and condos, believe me. His place is not empty because PLP are scaring away business. His place is empty because b/c no-one wants to pay $900,000 + for a hole in the wall overlooking Court St.

I think there were some very good points made that I agree with. We cannot blame the PLP entirely for where we are now... We have to blame the Electorate... you and I... for putting up with all this. We need to make some noise.... do something.... or we are just enabling.

The PLP's policy with immigration is more lenient than under the UBP. The exempted companies are able to bring in whoever they want for as long as they want it would appear. Forget about what the policy might say in theory - I'm talking about what happens in practice. No-one at immigration is equipped to keep pace with the dynamics of the reinsurance industry growth. Tere is no-one there to argue with a reinsurance COO over who is a key employee and who is not.

Let me just say that I agree with a lot of what Sir John says. But I also take what he says with a grain of salt. If you read his speeches in the press over the last few years you will see how his opinions have fluctuated and it is difficult to know if he is speaking out for a genuine concern for Bermuda or a marketing campaign for his business and/or politcal comeback.

Am I the only one who remembers Sir John just 18 months ago heaping praise on Alex Scott about what a great visionary leader he was? Maybe it was just a coincidence that it was on the eve and during the Atlantis launch.

"Am I the only one who remembers Sir John just 18 months ago heaping praise on Alex Scott about what a great visionary leader he was?"

Yeah you are right. All I can figure is that he was trying to lure young Alex away from the Dark Side of The Force.

Bermuda is so afraid of looking bad in international sectors that most Bermudians - particularly in business - have been trying to put the best face on the kleptocracy. I guess Swan got tired of holding that grin. No one on the outside was buying it anyway.

Combat Banker,

So are you suggesting that Bermuda should simply remove all Immigration policies so that the companies can simply bring as many people as they want to fill jobs.

Bermuda is already one of the most densely populated countries in the world. There has be more to Bermuda than simply trying to make as much money as possible. The infrastructure can only accommodate so much.

Onion has pointed out exactly why Sir John's Atlantis project is failing. Why would anyone want to pay $900,000 for (1) an apartment and (2) and apartment with no view?

Onion - the ONLY reason Sir John seemed pals with the PLP back when Atlantis was opened is because he was hoping for a concession to allow his units to be purchased to non Bermudians, becuase, of course, few of us will pay $900k to look at Court Street....he never praised the PLP then - just tried unsuccessfully win a favour. He's been consistently dismissive of his political opponents - this is his first "public" POLITICAL display - unless you are referring to anyhting he said in private - what speeches do you refer to? There are none.

Nicolette,

Publicly labelling the Premier as a great visionary is praise for the leader and the party in my book. You hit the nail on the head when you speak of "trying to win a favour". That is my point and this is why I always take what he says with a grain of salt.

December 29th 2003 in RG Sir John says:

The PLP is helping to reduce inequality and Sir John said he hoped the UBP would also take up this goal.
"I don't think Bermuda is under any threat because of the PLP."
He said blacks were doing well with renting property while whites were owing equity in businesses. Sir John also praised Government's handling of the six-year term limits on work permits. "The Government still has the right to exercise a level of discretion which it is doing. I think it is acting very responsibly quite frankly."
He denied he had gone PLP but refused to say if he had voted for the UBP although he said he was still a member. Asked if the UBP was wrong to have Grant Gibbons as leader Sir John said: "It is not a question of being wrong, it is a question of can the UBP move on. That's the issue."
The UBP needed to develop a vision for people to rally around.
He said the fear that Bermuda would go down the tubes under the PLP had been proved wrong. "Some of these boogey men have gone away. I admire the present Premier whose doing an excellent job of communicating and being inclusive.
"I think he recognised that he's got a mission to make sure Bermudians are treated fairly and I admire him for it."
He said Mr. Scott had given a lot of people confidence which was a very good thing for Bermuda.

Whatever John Swans motives, don't you think it's timing is great politcally? Alex is under fire for the BIC report, the Bermuda Homes for People nonesense, his comments towards the reforendum folks and now this. I wonder how it feels to be Alex right now.

A little off topic, but did you notice the photo in today's paper with cabinet behind Alex as he was handed the petition? You can almost sense the condescending, patronising sneer of the heirarchy.

Limey, Is there a transcript of his speech to the Rotarians?

Onion - Limey made that point in his original post.

Raptor - it's in today's Gazette.

Onion - Limey made that point in his original post.

Posted by Sergeant Pepper on 21.09.05 at 09:37

Yes, I know, and some people need to read it again.

Thanks sandgrownan, but I'm looking at the online edition, and it's not there, which is odd. It might be more important than the lead article, which is about postmen getting bitten by dogs. I think that's horrible and inexcusable, but one might think what Sir John says is even bigger news.

Raptor - that's still yesterday's edition online.

Among his comments: "The incompetence of the Government does not inspire confidence that this Government can take us to independence in a judicious, orderly, efficient and comprehensive way."

The Gazette missed most of the hardhitting comments that were on VSB.

I thought that Pinnochio was priming for another UBP leadership coup until I read this:

"The United Bermuda Party might have some good aspects but their more recent lack of popular appeal has only given the Government the feeling that no matter what they do, the UBP is not seen as an alternative by the majority of Bermudians.

This is partly to do with a legacy consciously or unconsciously of how blacks within the UBP have been and continue to be treated when there is disagreement. In spite of the majority of its leaders being black for most of its history, the UBP legacy still remains that of a white dominated party. It has depended more and more on blacks for its existence but the party make up does not reflect this reality. Only through partnership amongst the races, local and foreign, can we arrest our decline "United we stand, divided we fall".

It's terribly ironic that the islands most economically successful black entrepreneur and longest running Premier is now accusing his party of mistreating black members whenever they disagree with white members. Do tell, Sir John! You're criticising your own legacy, stupid.

“That’s how fragile we are,” warned Sir John. “We have an infrastructure that would deteriorate overnight. We have to look at alternatives so we do not get caught out.”

While I agree with much of what he said, I find the above comment to be very offensive because it was under Sir John's Premiership that the Bermuda Inc. concept, under which the entire focus for the economy was International Business, was implemented.

It was under his watch that Bermuda became a one pillar economy. I do agree and have stated that Bermuda needs at least one or two more pillars to its economy but for Sir John to say it after his government was instrumental in removing the other pillar is a bit condescending.

Now that he is out of politics he seems to have all the answers to Bermuda's problems but most of these problems are not new by any stretch. Where were his ideas when he was Premier?

The sad fact is that the UBP will not be re-elected while their leader is white (unless the PLP do something really really stupid).

It reminds me of John Major's victory over Neil Kinnock (who I think would have won if he hadn't been both ginger and Welsh)

We might not like it, but there is enough predudice out there (in any country) to swing an election.

Swan's Opinion piece is here:

http://www.theroyalgazette.com/apps/pbcs.dll/article?AID=/20050921/OPINION/50921001

The PLP leadership, for the most part, have education, intelligence and charisma. They rose to power but they have not risen to the occasion because they view power as an entitlement rather than a privilege to serve.
They bring a sense of confrontation rather then conciliation, belligerence rather than humility and gracelessness rather than gracefulness.
Rather than examining issues with an open mind, they find it difficult to rise above ideology, prejudices and personal biases.
By personalizing power, some of our leaders undermine rather than boost national and international institutions like the Auditor General’s office, the Privy Council and even the office of the President of the United States.
The PLP promise transparency in their administrations, but they are very secretive. Consequently, they become very paranoid and insecure toward people that they perceive as “not like us”.

Guilden, I thought you said (and I recalled) that Bermuda Inc. was under Dr. Saul?

That was post Swan.

I think he is speaking his mind and giving his genuine opinions. He was certainly trying to gain favor before, and I don't blame him. $30mm is a lot to gamble and lose.

Yet another Limey: I think a white person could lead the UBP to electoral success. There are a number of white people that I know who call it like it is and get the full support of black and white friends in doing so.

There was a time when a black man leading the country was just as "crazy" an idea. We are growing as a people, black and white Bermudians, and we will get there.

It will take time, but we will get there.

Do I hear McCasino somewhere in his future? Hush John's Poker World. Funny how Clinton chose to come out and berate Bush in the same week. From reading some of his speech I get the feeling he might have checked out a Limey in Bermuda on his way to the club house.

I find it interesting listening to the arguments that go back and forth about the independance issue. And yet I am now living in Bermuda, but I don't feel like I left Canada because I hear almost the same issues. If Bermuda really wants to be independant, perhaps they should look to Canada. NOT because we are better, but perhaps they can see the mistakes that we have done in the process. There were alot. And it alienated, and because almost exclusive, not inclusive. I wish I has something more relevant to say but I have only been on this island a month. Need to learn more.

GG,

It would be a stretch to say that JWS created the international business, that blossomed so fast,government do not play much of a role in that growth.

It is much too easy to say we created a one pillar economy.
While I think the growth was too much too soon, its hard to stifle business coming here when we need the revenue.

The international business spawns pilot business and altogether places an enormous strain on this micro dot, which makes it incompatible with tourism, when all we have is the beauty and tranquility of our Island.

Give some thought to what we could diversify to and you will find that our options are so very limited.

The Casino is one small adjunct to tourism but wont solve the big problem.

I have always feared the fragility of the insurance business too, but as they say beggars cant be choosers and we owe our prosperity to it,with the overstressed infrastructure as the penalty.

Lets hear some creative alternatives as a major source of income, when we criticise our present situation.

Jake,

Bermuda Inc. was devisied when David Saul was the Minister of Finance within the John Swan Government. is that not under David Saul?

Bill,

I never said John Swan created International Business but it was on his watch that Bermuda Inc. was introduced and incepted which made IB the focus of the Bermuda economy. Thus switching Bermuda from a two pillar economy to the single pillar we have today.

Guilden

For the sake of clarity, exactly when (month and year) was the “Bermuda Inc.” concept introduced?

As I read Smoking Gun's post RE: McCasino, I wondered who were the "big names" in Carribean Casinos, after a quick search whilst surfing I found an interesting article; (not Casino but just as good for making money)

http://www.caribbeannetnews.com/2004/04/06/lottery.htm

The part that I found interesting was;
"Under the terms of the acquisition, GTech will gain eight lottery contracts from LILHCo, which operates lotteries in Barbados, Bermuda, and the U.S. Virgin Islands"

It would apprear that "someone" has already sold the rights to organise & run a Lottery in Bermuda. The article was from Tuesday, April 6, 2004...but I wonder when this new bombshell will be dropped on us.

...Makes you wonder doesn't it ????

Observer,

From my recollection it was sometime during the late 80's early 90's, when David Saul was the Minister of Finance.

As I recall, Bermuda Inc was a BIBA marketing campaign .. not a Gov initiative.

Apparently one of the local bookies sells these caribbean LILHCo lottery tickets. Gov has never enforced it.

Regarding just when "Bermuda Inc." was created, one could go back as far as 1947. Front page of yesterday's WSJ has a rather interesting portrayal of just how the IB sector got it's start. Now who was at the controls of "Bermuda Inc." during the years of 1986 -88 is key as that's when the US laws were changed to the benefit of Bermuda/AIG. From then on in it opened the flood gates.

Triple Crown Racing is a "Super Agent" for the Gtech lotteries, per their website. That's Wendell Brown's company. He offers Pick 3, Pick 4, Hot 5, Caribbean Lotto, and Caribbean KENO.

I would say that despite the fact that Sir John seems to contradict what he has said about the PLP previously, I do agree with much of what he has said in this latest speech.

Guilden

I found the answer to my question:

"Dr. Saul's political career began in 1989, when he was elected to the Bermuda Parliament, representing Devonshire South. One day after being elected, he was appointed Bermuda's Finance Minister, a post he held for six and a half years, before being elected Premier of Bermuda in 1995"

Out of curiosity, what problem do you have with operating a Ministry of Finance in a manner similar to that of a company? By its very nature isn’t that a reasonable approach for a Ministry that is dedicated to ensuring fiscal soundness?

After all, it’s not the MoF that determines where a company chooses to set up shop, we only decide whether or not to allow them in the door. Tourism is a cyclical business that spreads the wealth around to a comparatively smaller pool of locals and local businesses. The financial impact of corporate spending is far wider and deeper, trickling down to a much larger economic base (including the tourism trade).

Are you therefore advocating for this door to be closed or for us to turn away these blue chip, multi-billion dollar companies that poor hundreds of millions of dollars into our economy each year? Or is it a matter of poorly managed development of this economic pillar? If that is your reasoning, then I can see some truth to your argument. It should be noted, however, that by far the biggest growth spurt has been in the last 4 years following the 9/11 disaster so it’s not simply a matter of the UBP not being on watch to manage the escalation as the PLP were at the helm for a few years beforehand and the vast gains in the housing market (and related rental prices) are corollary to their time in power.

I would suggest the PLP (and specifically their leadership) don’t have the depth of experience (business, financial, philosophical or otherwise) to adequately comprehend their function or role in government. The UBP, for all their faults, has always had a strong fiscal background and a far better grasp of national and international issues that in turn provided and formed the foundation of our success which we all take for granted today.


observer,

the depth of experience argument is tired and old. Perhaps the premier does not have it.

Don't paint the entire leadership with the brush reserved for him.

Cheryl Lister at the BMA to me is a shining example of what we should be aspiring to as Bermudians. She lacks neither the experience or the talent and has led the BMA well.

I just hope we can get to a time when our leadership operate to such a high standard.

We are not there today.

Observer,

David Saul's Bermuda Inc. concept took all focus away from Tourism toward International Business. I have no problem with a focus on International Business but I would have preferred that Tourism was still given its due respect.

Say what you will be at one time Tourism had more Bermudians employed as an industry than any other industry in Bermuda. The shift away from Tourism had a significant economic impact on many Bermudians who may not have had the education or aptitude for Internatinal Business.

Further, from a stability perspective I think any economy needs for than one economic pillar.

"Or is it a matter of poorly managed development of this economic pillar?"

I would only say poorly managed in that to some degree I do believe the Bermuda market grew faster than was expected and that is not necessarily a good thing because as it stands there is a significant strain on the Bermuda infrastructure.

I would never suggest Bermuda move away from International Business, I think that would be suicidal. What I would like to see happen is at least some diversification of the Bermuda economy.

That diversification could be somewhat linked. Why should Bermuda not market itself as a convention/conference centre? Surely we can accommodate smaller convention groups and conferences. After all Bermuda is a major offshore financial centre. We have golf courses, tennis courts, beaches (during the summer months). This would have a positive impact on Tourism. The hotels would benefit and maybe Bermduians would again see Tourism as a viable employment option. We already have the air routes, why not use tem to their fullest?

Bermuda could also become a larger centre for the administration of mutual funds (outside HSBC and Butterfield Bank). Why not target the other large fund administration companies to establish Bermuda offices? Unfortunately, Cayman, one of the leading offshore fund domiciles has evidenced that a severe hurricane can litterly shut it down.

Some may say that means more expats. Maybe but maybe not. Butterfield Fund Servcies here in the Bahamas, as an example, has approximately 18 staff members, 100% Bahamian under the age of 40. In fact, 100% of the staff in the Butterfield Bank operation here in the Bahamas is Bahamian.

This would also give qualified accountants who are looking to get out of the accounting firms an additional option to insurance.

This would also feed more banking business into Bermuda's three banks.

This process would not happen overnight but Bermuda could begin to diversify its economy.

Why not use some of the former baselands as duty free zone? Similar in nature to Freeport, Grand Bahama. Companies like Merk produce pharmaceuticals in Freeport, Dart has a facility in Freeport where they produce the beads styrofoam cups, etc. (next time you are in the grocery store look at the bottom of the styrofoam cups, if you see the name Dart the cup originated in the Bahamas). The facilities create zero pollution.

Surely there are other areas that can be considered.

Having had the opportunity to see Cheryl Lister in action first hand on a number of public and private occasions I completely disagree with your assertion that she is an accomplished leader of the BMA. Her lack of experience in the private sector is a clear example of why she isn’t a very capable or knowledgeable bureaucrat who was basically given the position as a result of PLP nepotism. In no way would I want to set her as a “shining example of what we should be aspiring to as Bermudians.”

Guilden

Was it really IB that killed tourism, or was tourism already dying? If the former, then doesn't that suggest that at worst, one pillar was merely replaced with another, and at best, that Sir John hoped to establish two pillars? And if the latter, couldn't it be said that Sir John's actions saved Bermuda from having no economy at all?

I wasn't here at the time so I have no idea, I'm just asking.

Limey, Bermuda was a one trick pony from a strong pedigree with a broken leg. Rather than put it down they put tourism out to pasture so that the new horse would have a companion.

By the way, the new horse was a frisky thoroughbred racehorse.

Limey,

I was involved with the hotel industry for over 20 intense years.

The reasons and I emphasise reasons that our tourism declined are multiple,but essentially we ceased to be competitive in a changing market.

The cost of a weeks holiday in BDA just became too high plus we did not give the type of service that the high rollers expected for the high cost.

Beside that we had no really good entertainment for the masses and while we had excellent groups playing for the older genteel crowd ie the Talbot Brothers, Hubert Smith etc
There is just so many times you want to hear Yellow Bird pleasant though it may be but the times changed and we did not.

It was never a case of us dictating the future of tourism it was the tourist who did that, we lack that power.

The trade unions also played a role with disruptive strikes that left visitors stranded
and subjected to unpleasant situations.

Travel agents became reluctant at times to promote the island for that and other reasons.

If however I was to select the primary reasons that would be cost and poor value and mediocre service relative to dollars spent.


"The trade unions also played a role with disruptive strikes that left visitors stranded
and subjected to unpleasant situations.

Travel agents became reluctant at times to promote the island for that and other reasons.

If however I was to select the primary reasons that would be cost and poor value and mediocre service relative to dollars spent."

Thank you BIU !!

I once dealt with a company that had a long history in business. Then the market started changing and they had competition from all sorts of people they never realized they had. As the others started nibbling away at their market share they figured they would try to do business with fewer people but offer better services and better products and charge more. They never upgraded their products or settled on a focused market and the service never truly improved. They sold less and charged more. Then they got hit by a new entrant into the market place that was very big, well funded, offered great service and had fantastic products. The company is a shell of it's former self.

The only difference between that company and Bermuda is they have no money to re-invest and re-invent themselves with. Bermuda does.

Bermuda Inc. started way back with Jack Tucker and the Trade Developement Board. They have all been called thieving racists at one time or another. And some of them were thieves and most of them were racists.

But they played the game hard and cold, like the Medecis of Yor and they succeeded in creating one the richest countries in the world. Those old white guys who no one talks about and everyone despises set up a pattern we follow in lock-step today. What they also did was drive this country's conflicts and contradictions deep into the back ground.

Now those problems are popping up all over the place and no one knows what to do about it. Mostly because no one wants to admit openly that they actually exist. A collection of very unimaginative people who presently happen to be in power believe that independence will be a kind of therapy for decades of all that bad history. But it won't because independence is irrelevant to the whole issue.

THe evil old ones were had four or five briliant economic minds among them and they built something really incredible - a self sustaining money machine. The evil old ones made a nasty bargain after the depression and WWII. Bermuda could buy off its ancient sadness with Money and never have to deal with it. Where would the money come from? A perpetually growing economy.

Now Bermuda is used to having its anxiety paid for in cash. Bermudians believe that thier ancient anguish is the reason for an entitlement. I am talking about black and white Bermudians. This entitlement is the payment they recieve to over look thier neglected selves and go on playing the Bermuda Inc. game. This is an essential aspect of Bermudian personality. You see it everywhere. And independence will have no effect on it.


Jack Tucker was a visionary.

He was the talented opening batsman who came in to bat and set his team up for victory with a record double century.

The middle bat struggled gamely to keep up the momentum but the tail enders were the least skilled and experienced are fading fast and struggling to hold on and are finally reduced to praying for a miracle !!

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