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Work permit term limits: bad for Bermuda

Tom Vesey has a first-rate summary of why work permit term limits are bad for Bermuda in Friday's Bermuda Sun.

"Beginning over the next year, there will be a mass exodus of perfectly qualified non-Bermudians who have been here six years or longer.

They will be replaced (if replacements can be found, or exasperated employers don’t take their business elsewhere) by new plane-loads of non-Bermudian work permit holders whose primary qualification is they haven’t worked in Bermuda before.

That, in a nutshell, is the problem with the six-year policy. It is completely absurd, and it doesn’t help Bermudians."

He offers a much simpler prescription for preventing foreign workers from acquiring the right of residency here:

"It is simply to take seriously the long list of warnings that already appear on every work permit — declaring that a work permit offers absolutely no rights of residency."

Well worth a read, if you haven't already.

Comments

» Cayman Net News writes "Numerous industry sectors [in the Cayman Islands] have said they are facing serious labour shortages as a result of seven-year term limits including the financial industry, tourism, construction, hospitals and private schools. ..."


» Politics.bm writes "Not surprisingly, today the courts overturned the real estate policy implemented a year ago, which prevented Bermudians who owned property previously eligible from selling to non-Bermudians. The policy was stupid to begin with, and would neither allevi......"


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Additional Comments (106)

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Onion,

These are nice perks, but they'll rarely be elevated to any positions of real power. This must change for Bermudians to want to come back home.

Are you assuming that bermudians abroad are in positions of power? If so, it's a much more competitive environment abroad so those people probably could come home quite easily.

I think it's more likely that staying abroad offers more options in terms of career, partners, entertainment, etc. Plus a much bigger house for less money (even on other islands).

If the only thing to it was positions of power everyone would work for ACE USA or AIG NY for five years and then come home. Someone pointed out above that not everyone is cut out to be a CEO. I just don't see your suggestion as feasible. Unless you have a grad degree and international experience it's not the same league. I wouldn't by that stock.

Not everyone is cut out to be a CEO, particularly of an international company. Per capita I think bermuda does better than average.

I just did a Google search to see what might come up for an interested party looking to work in Bermuda. Very limited scope of work. Much like our hospital has only limited resources it still needs to cover so many areas. Eventually you just have to concentrate on what is the most common needs and get the specialist in as needed. We have a small pool to work from and the fact is not everyone can or even has the slightest desire to be an accountant, lawyer or insurance broker. Even if they had the skill sets for those areas we still have needs in other areas.

Here's a question...

How many Bermudians that want to be in IB aren't?

I know that I, for one, appreciate the business etc. that IB bring to the island, and realize that I am, in fact affected by its presence, but I have no desire, whatsoever, to get into IB. I think there are many others that feel like this, too.

So, how is this six year plan helping us? How does limiting how IB does business here help us more than a better plan to help Bermudians that want them get the jobs?

I don't see the logic of hiring a non-Bermudian that can do the job over a Bermudian, but I'm not IB, so I can't say for sure. Surely, though, it makes more sense to take locals on.

I dunno. I was just curious how this particular thing is a better way of helping.

Uncle,

Its the "Placebo effect"

No real physical value but may offer some psycological comfort !!

"I don't see the logic of hiring a non-Bermudian that can do the job over a Bermudian, but I'm not IB, so I can't say for sure. Surely, though, it makes more sense to take locals on."

It does if they are qualified to do the job. (As H Reardon pointed out.)
But just to hire someone because they are Bermudian isn't going to help anyone. There is the trickle down effect. The better the IB sector does so does the car mechanics, the restaurant trade, the house brokers, painters, cleaners, dog walkers and pool cleaners. And even the entertainers. Not necessarily in that order mind you.

Uncle,

Its the "Placebo effect"

No real physical value but may offer some psycological comfort !!

Posted by Bill Cook on 27.02.06 at 17:26

Hey Bill, do you work in IB?

Onion,

Every country needs to protect its borders, particularly ones with an active social insurance policy. The government should verify that an applicant to work in their country will likely be a productive member of that society and not a drain. So yes, some form of work permit, but not at 4-6 month delays.

Some may think that relaxing immigration policy would lead to a large inflow of ex-pats that will take away their jobs. Who is going to pay them? What are they going to do? The people concerned usually end up being the ones that realize they don't add any value. If their only value lies with a piece a paper saying they are Bermudian, then I can see why they would be concerned with a more open policy.

Smokes, this is what I'm saying.
Wouldn't it be better if, instead of this "They're taking our jobs" (© South Park) policy, we had a policy that guaranteed jobs to locals who were qualified, or something like that? Or a program to get locals qualified?

Mr. Cook,

Yep. That pretty much sums it up, don't it? *grin*
Saying, "Look! We're doing something!", rather than actually doing something.

How many Bermudians that want to be in IB aren't?

Posted by Uncle Elvis on 27.02.06 at 17:08

Perhaps you can also ask ...... How many Bermudians that are in IB don't really want to be there?

I expect many locals are there just to make the mortgage. I know Bermudian who have given up jobs in IB - sick of being dreary corporate stooges.

Uncle E. - On the one hand I wouldn't put any money into an Insurance Company being run by the Bermuda Government but on the other hand there is the Insurance Institute which helps people get training for jobs in the sector.

Oh and by the way. Cut the sad ass "I must be a bigot" crap. If you're a bigot then I must be Satan.....;)

Just calling 'em as I sees 'em... Satan.

SG: Sorry for hurting your ears.

It's just a little frustrating that every time I hear term limits debated the discussion here, in the other media, and in the pub etc seems to spiral into a debate about work permits and opportunities for Bermudians in the job market.

Since term limits do nothing to advance Bermudian employment opportunities, it is disappointing because this 'blurring' of issues tends to provide positive political energy for a policy that is bad for Bermuda (ie term limits) as a result of support for a principle that most in the electorate would support (ie creating employment opportunities for Bermudians).

I agree with your's and Tom Vesey's view that the government should more effectively enforce the immigration policy already in place, as this will both deal with the long-term residents issue perfectly adequately and also promote opportunities for Bermudians in the work place.

Currently the system doesn't really work as its intended, and many firms do play the work permit game very well to the disadvantage of well qualified Bermudians.

They have their reasons for doing this, which are often a lot more complex than the ones that I've seen banded around on this blog. It can be frustrating for locals.

I am not Bermudian, but rather the next best thing in terms of freedom to work here, and I can confirm that I have on numerous occasions been invited to interviews for jobs that I am 100% qualified for (often over qualified), only to find an interviewer going through the motions or probing only to find one small mis-match between my background and experience and that of the advertisement that's been perfectly tailored to someone else's resume.

The ironic thing is that I've never been after somebody else's job, and have even withdrawn my application for roles at interview on two occasions for that reason when the interviewer was actually honest enough to concede what was really going on.

On the flip-side I was recently about to take-up a role in the US (for which the employer was willing to cover all of my costs to commute to and from Bermuda weekly, so that I didn't have to uproot my family), when I was approached by an IB to take up a role in Bermuda. My immigration status was cited specifically as one of the reasons of interest. So...sometimes the system does work in a round-about kind of way.

Out of interest, as I'm not on the island at the moment, what is the public sentiment about this new law? Has there been lots of fuss - enough to warrant a turn around maybe?

A serious question for the legal beagles here.

An expat friend of mine is concerned that if he is required by Immigration to leave the island (as he may well be next year),then he may have a problem with his landlord.

He is required to give 3 months notice to terminate his lease, but is not aware of how much "notice to leave" Immigration might give him if indeed that happens.

Is this a potential worry...or does Immigration take that into account?

I presume the legislation was not drafted to include such an issue!
(Oh where is that irony point)

"Has there been lots of fuss - enough to warrant a turn around maybe?"

Posted by Lost in Flatts on 28.02.06 at 08:42

That would involve the PLP listening to the people. I'm not sure "lots of fuss" would matter at all. I've yet to see an issue where there was backlash from the electorate and this government said, "Oh, we must have made a mistake. Let's reverse our position."

Martin,

The standard Bermuda lease allows the tenant to get out of the lease if he has to leave the island, including if he is transferred by his company (not just due to immigration kicking him out).

Thanks HR. He obviously has not read the lease!

I am another young Bermudian currently employed in IB. However, I am currently working in London for 2 years to gain experience in the Lloyd's market. Being in London has given me more of an appreciation for why we must have ex-pat workers. They bring to the table a wealth of experience that cannot be gained in Bermuda, hence why I am here at the moment. The general business environment is so much more dynamic and you are exposed to many more ‘classes of business’.

The cost of living here is almost equal to Bermuda!! The real killer is that I am paying income tax, council tax etc. I will return to Bermuda one day to work and fingers crossed… be able to afford to move out of my parents house.

Walla, were you in reinsurance here as well? Just curious to see how they compare.

I've heard the UK is also very expensive to live (and certainly noticed it while on vacation there a few years ago). The biggest change for me is that it seems like everything inelastic is 2-3 times the price of Canada, and elastics are anywhere from the same price to 2x. I consider myself lucky that my rent only doubled...

I hope you can come back and buy a house too, I think the insanity of the housing market is a huge problem - and a barrier to having people return to live permanently. Perhaps rather than this "6 years and out" type policy, the government would do better to really honestly tackle housing, and make it *possible* for people to come back and have a life here.

I think one step in that direction should be be finding a way to eliminate "use it or lose it" housing allowances that IB management gets. I know people will just say that they'll just shift that money over to salaries which is true, but at least it's that person's money then... if I have a $10K/month housing allowance (I have no idea if that's a realistic # or not but it's nice and round) then it's in my best interest to find a place ofr $10K - BUT if that money is simply added to my salary, it might be better off for me to find a place for $7K for instance. Something like that would take a lot of steam out of the rapidly rising rent costs, and might even slightly deflate them over the course of a few years. Lower rents would eventually force ownership prices down as the "invisible hand" does it's thing. Cheaper housing benefits everybody, and we might get more qualified Bermudians sticking around if they know they can get their own place before they turn 50.

Although the publicly stated reason for this policy is to prevent the build-up of long term residents and their families, I think the real purpose of this policy may be quite different. There are other ways that you could deal with the long term residents problem that are far less extreme. For example why not make expatriates personally responsible for their decision to stay on the island. All it would take is an annual letter to each work permit holder reminding them that they should recognise that they have no long term future on the island and should plan their lives accordingly.

I think the real purpose involves the issue of Independence. I have heard and maybe someone on this site can confirm, thatinternational convention grants citizenship in newly independent nations to all residents having 10 or more years of residency. When the long term residents policy was enacted the PLP felt that they had a good chance of taking Bermuda to Independence and in my view wanted to limit the potential number of long term residents who may be eligible for citizenship in a newly independent Bermuda.

Canuck,

I agree that "use it or lose it" policy is ridiculous, and I understand that Ace changed it a while back to just be an extra stipend. I believe XL still have the use it or lose it policy. I don't think it would make a huge difference getting rid of it though--at least not enough to significantly move the market.

"Cheaper housing benefits everybody"

Except for the homeowner.


"Cheaper housing benefits everybody"
Except for the homeowner.

H Reardon - Sounds sinister.....

Canuck in Bermuda
"The biggest change for me is that it seems like everything inelastic is 2-3 times the price of Canada, and elastics are anywhere from the same price to 2x. I consider myself lucky that my rent only doubled... "

But you don't pay 50% income tax here, so isn't is a wash?

Yeah... it's more just adjusting to the sticker shock of it all. I think my overall tax rate was around 40%? The whole thing's full of sliding scales and deductions.

I agree on the homeowner point, though if "cheaper" happened gradually and more importantly more or less uniformly it wouldn't be that bad. Some people (likely those who could afford it) would get a little screwed, but my Canadian brain is just permanently wired to put the collective good ahead of the individual ;)

NOW, this 10 year business is the more interesting thing I've heard all day. Verrrry sneaky if true

Lickinalong,

"When the long term residents policy was enacted the PLP felt that they had a good chance of taking Bermuda to Independence and in my view wanted to limit the potential number of long term residents who may be eligible for citizenship in a newly independent Bermuda."

That's it, that's the whole reason behind it because in your world for everything the PLP does there is an ulterior motive that must be negative for Bermuda.

"When the long term residents policy was enacted the PLP felt that they had a good chance of taking Bermuda to Independence and in my view wanted to limit the potential number of long term residents who may be eligible for citizenship in a newly independent Bermuda."

Yeah and all that breeding in the bushes would have come to nought... now where is that irony point!?

Guilden,

This is a commonly held opinon. In fact I'm surprised it took 70 comments before it was mentioned.

And it's not viewed by the public as negative towards the PLP, in fact more than half the Bermudians I know support this reasoning for limiting work permits.

The ones I've spoken to feel status is too valuable to be granted to ex-pats and that the short-term harmful effect on business is worth the long-term protection of Bermuda.

However in the end, I suspect the identified key employees will be given an extension beyond the nine years.

In the event that Bermuda does go independent those key employees will get status.

And while it may not be the plan, it would not be so bad given that these key employees are the cream of the ex-pat crop.

I have a quick question, in the RG today they mention that certain workers will automatically get an exemption – effectively this is anyone in international business along with the butcher, baker and the candlestick maker. So the only people being given the push next year are hairdressers, IT folk and waiters (are there any other big ex-pat sectors on the island?).

Does this exemption mean that these people have 9 years (key personnel) or is it more permanent?

YAL,

The way I understand it, the categories of employees you mention are given an extension of three extra years, so can stay up to nine years.

It's not an exemption, more of a stay of execution.

The only way you can get a full exemption is if you are deemed to be a "Key Employee" of a company that is regarded as a good corporate citizen.

If that's the case then the six (or nine) year rule doesn't apply, but you would still need a work permit which would need to be applied for periodically. The exemption from the rule doesn't offer you any permanent right to stay in Bermuda.

I might be wrong, not being a lawyer, but that was my understanding.


Guilden,
I am all in favour of preventing the recurring problem of long term residents. I am actually impressed that the PLP have tried to deal with this issue which is more than the UBP ever did. But I think that the PLP are using the policy equivalent of a sledge hammer to kill a fly and as a result there will probably be a lot of collateral damage particularly to our economy. To deal with this problem more approriately (a fly swatter policy)I am strongly in favour of placing the onus back on the expats where it belongs. They of course are the ones who in the final analysis decide to stay in Bermuda. So when their work permit is renewed or initially applied for have them sign an affidavit that they forgo any rights to long term residency in Bermuda. Annually send letters to all work permit holders politely reminding them of this fact and suggesting that they and their family should plan their lives accordingly. So when some long term expatriate worker approaches the Minister of Home Affairs complaining that Bermuda is the only home that his children have known, he and she can pull out the reams of letters warning them that they should plan their lives without the expectation of long term residency. It is the simple process of making people accountable for their decisions.

I truly believe that the 10 year issue revolves more around Independence. Now that the PLP have, in the meantime, blown their opportunity to take Bermuda to Independence, we are now left with this stupid policy that will discourage IB in Bermuda.

Paget69

The ones I've spoken to feel status is too valuable to be granted to ex-pats

Who do they think it should be granted to instead? Bermudians?!

Sorry, that just struck me as funny. ;-)

"Who do they think it should be granted to instead? Bermudians?!"

Perhaps ... Spouses of Bermudians ... Children from Bermudian mothers and foreign fathers ... just a thought.


To be provocative, why shouldn't we resume awarding status, but in a less subjective manner than previously used.

We have had, and continue to have, many many non-Bermudians who make great contributions to the community, both economically and socially. Having them leave is a great loss to us.

A lot of us, myself included, wouldn't be 'Bermudian' if it weren't for status grants.

Personally I believe that the practice was stopped because of political pressue, a perception that status was awarded to gain votes by the UBP.

But Lickinalong is correct, that the need to resume citizenship grants is is a real touchy issue around independence that the Government don't want to discuss.

I'd be interested in people's thoughts as I thing it should be resumed, particularly in light of all the concern about our declining birthrate. After all, we need to widen the gene pool.

Sleepy,

I agree. Immigration should be selective, but most countries view immigration in positive light when the person immigrating is a productive, law abiding citizen and who, if they start a small business, will be creating quite a few jobs. Don't leave money on the table is my philosophy.

I doubt many would seriously take up the issue for a number of reasons, but having the option would say alot about the openness of the society to foriegners.

Of course there will be the "there takin' 'ur jobs" (ala South Park) as Elvis noted the other day.

Darkside,

Reference:

" "Who do they think it should be granted to instead? Bermudians?!"

Perhaps ... Spouses of Bermudians ... Children from Bermudian mothers and foreign fathers ... just a thought. "

====

Point of information:

My children are of a Bermudian mother and foreign father, and have Bermudian status.

A few years ago that would have not been the case had they been born outside Bermuda.

That is now not the case.

No Vote,
How do you feel about me? I was born in the US and moved to BDA when I was 5 yrs. old in 1972. I went through all of my schooling in BDA and then went to college in 1985. When I returned in 1990 and applied for a work permit or permission to seek employment I was turned down by the Immigration Dept. I had to move away and have lived in the US since. Both of my brothers have married BDA girls and still live there and my parents have continued to live there until my mother's death in 2004. I call BDA my home BUT I am not allowed to live there because I cannot get a work permit or more so because an employer does not want to go through all of the red tape to do so even though I am qualified. I got screwed, no doubt, and as a result missed being with my family for the past 15 years and missed my mother's passing because of such a rule.
I understand that BDA wants to make sure its citizens have jobs but what about the kids?

19th Hole

Certainly your experiences are not unique and the timing most unfortunate. However, in my view, the government has absolutely no responsibility with regard to ensuring the children of non-Bermudians are entitled to Bermuda status should their parents end up staying here for an extended period. Clearly parents are primarily responsible for their own children and ensuring their citizenship is maintained, wherever that may be.

What happened to 19th is disgusting, but unfortunately not uncommon.

But I thought that children who came here under the age of six could apply for status at 18??

But perhaps thats only British subjects - and 19th may not be.

19th Hole,

What you experienced is the very same reason I tend to support some term limit on work permits. What you went through simply should not be allowed to occur and if Bermuda continues to allow work permits to be renewed indefinitely then situations like yours would be the norm.

This situation presented itself with many children of Portuguese descent. The work permits of their parents were not renewed after being in Bermuda for 15, 20 plus years. Bermuda was the only home these children knew and to be told that you can no longer remain in the only country you knew as your home has to been excruciatingly painful.

Every country has immigration laws and thes elaws must be enforced and they must be enforced such that there are as few cases as yours as possible. Bermuda cannot afford to simply give status to every person who enters it shores and immigration is a very tough subject, especially when the immigrants bear children during their stay and the time comes for them to depart Bermuda.

The bets way to avoid this is to limit the time period of work permits.

Guilden - so the solution is to kick everyone off the island in six years? Do workers not gain some increase in efficiency over that term that a new worker won't have? Does disrupting a workgroups composition constantly not hamper output? Are the chances of filling the position with a perfectly qualified Bermudian everytime a bit slim? Do some of these people not contribute more in their six years in Bermuda than 95% Bermudians do in their lifetimes?

Where does everything think Bermudians came from? How many generations have we all been here? I'd guess 90% of people on here would fall into the 1-3 band. We're all relatively recently re-patriated!

So the only new Bermudians are supposed to be permitted are either those born here as at least second generation, or those imported as a spouse? Anyone else getting scared of our gene pool?

Lost in Flatts,

Where did I say I agreed with the six year term limit? I said that I do believe that there needs to be some limited term. I od not know what that term should be.

Conversely, are you saying that anyone who wants to remain in Bermuda indefinitely once they arrive on work permit should be able to do so?

I understand the concerns of those companies who need expertise that is not available in Bermuda. Surely there has to come a point where Bermuda says we have grown big enough and while we would like to continue to grow, we simply no longer have the physical capacity.

Bermuda is very congested now and from what I have seen the population is expected to grow to 77,000 in a fairly short time frame. How is the infrastruture going to accomodate all these people. Many say build vertical. Doing htis will only develop Bermuda into a concrete jungle, which I doubt most people would be truly happy with.

Guilden - Fair enough, I thought you were saying stick with the six year limits and enforce them strictly. I just think that we should instead be looking at policies and procedures to make the whole work permit system more flexible to accomodate differing needs, rather than lumping it all together. And I still think that ex-pats here long enough should be allowed to apply for citizenship, but that's just me.

Lost in Flatts,

We are all entitled to our opinions and I respect yours.

My view is that Bermuda must always ensure that there are opportunities available to Bermudians for advancement. Where the experience is available and a Bermudian with the required experience makes application for a job that Bermudian should at ALL times be placed before a non-Bermudian. Just so we are clear, when I say experience I also mean the capability of effective and efficiently fullfilling the requirements for the job, the experience does not have to exactly match the job that is available.

Please note, I do not consider spouses of Bermudians to be non-Bermudian from an employment opportunity perspective.

If Bermuda requires a work force of X number of people it must provide them.

You do not increase the population beyond that amount and status has been abolished unless one marries a Bermudian or in some outstanding cases where the children have status and have here a long time the Government can use discretion to grant the parents status.

The point is the workforce does not increse by allowing some work permit holders to renew their permit rather than bring in a replacement worker to fill that vacancy.

The problem as I pointed out in another blog was that there are times when we have been lucky to attract some very gifted people to Bermuda that have much needed skills and are not replacable to the same standard so those standards are reduced.

I am not sure that with a dwindling population we should not allow some to have status linked to our population growth, some would be a clear asset if they fulfilled the standards set etc.

The problem we face with say the police is that in order to have an effective service we need career policemen not temps as common sense dictates that it takes some time to fit in or belong to the society you service because the police rely on the cooperation of the public to be successful.

The other side of the coin is that workers brought in with tight restrictions will not have the same interest in the community and will get what they can and move on which is not our best interest.

Spouses of Bemudians who as yet do not have status are allowed to work with out the usual restrictions of course, but in my opinion I also feel that wives of work prrmit holders should be allowed to find work that Bermudians do not do rather than bring in others to lessen the burden on everything.

It is a really difficult situation as we are dealing with peoples lives and futures not merchandise.

Bermudians are capable of doing most jobs really given time and training but its hard to pin down whose responsibility it is to bring this about.

Personally I feel we have also grown too fast and without planning the consequences and it is now hard to reverse back to a smaller economy.

19th Hole - that is a terrible position to be left in. Much like the many Portuguese families that were used and abused by our Government policy makers. Grandfathering you in is how people in your position should be taken care of.

As a matter of interest, and if I may ask, what line of work are you in and where in the US do you live?

19th Hole,

Yours is yet another unfortunate incident of how difficult it can be with our situation.

Recently there was a case of a young man adopted by a Bermudian who unfortunately died.

The young man did not have status but had grown up in Bermuda and knew no other home.

In fact a relative of the man who died offered to take the young man in as his own but to no avail.

He had to leave to go to the US a country he did not really know.

At the time I said government had the power to grant the young man either status or a residency permit but did not do so.

Many years ago the then minister in charge Jack Sharpe I think arranged to take in some people from the far east perhaps Vietnam or Korea maybe 7 people and granted them status so it not without precedent.

There should always be a way to have individual cases examined on merit and to be fair I think some were.

SmokingGun,
Thanks for the interest... I am in the hospitality business in Baltimore, MD and have been here for the past 5 years. You want know something really funny.. when my late mother was alive she worked for an employment agency and worked quite closely with the Immigration Dept. almost on a daily basis because she had to get ex-pats approved for a variety of positions in business. BUT when it came time for me to apply for permission to seek employment and work legally they said NO.
P.S. I also did apply for dual status(BDA & US) which I was able to do because I had lived in BDA for so long and missed being grandfathered in under the old regime by 3 MONTHS!!!The reply came back......Not Approved
And before anyone thinks I am a trouble maker I have never been in trouble with the law 1 day in my life..except for a speeding ticket on my moby when I was 16!

My famly moved here from the U.K in 1969, when I was 20 months old. I lived & went to school here all my life. I had been working for several years in the hospitality industry when I recieved a letter from Immigration that told me that my work permit hadn't been renewed and that I essentially had 60 days to "wind up" my affairs in Bermuda.

In addition to appealing their decision, I explained to the Immigration Officer that I was awaiting an answer on my status application. This was to no avail, my appeal was denied and I now had 40 days to leave the island. As I left the Immigration office, I noticed Sir John Swan & Jack Sharp across the street, I crossed over to them, and took a chance, and explained my predicament to them this was Monday afternnon...on Thursday morning I recieved a call from Immigration saying my work permit was ready for collection at their office...my status certificate arrived 10 months later.

This is how I was treayed after living here 22+ years...what chance does an ex-pat have after only seven years !!!!!!

19th Hole,

You're not Bermudian ??? I always figured you were.

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