Minister: Land Policy Review Working Group

[Updated with video] This morning [July 8] Minister of National Security Wayne Perinchief delivered a statement on the formation of a land policy review working group.

The group will review issues including; annual rental value, if the fee of 18% for the purchase by PRC holders be reduced to stimulate the real estate market, can the moratorium on the acquisition of land by PRC holders be relaxed to permit the purchase of condominiums that are not Government owned and not within a certain ARV bracket, and can the policy on the acquisition of land by non-Bermudians be stated more clearly to eliminate differences in interpretation between relevant stakeholders.

The Minister also mentioned the law enacted last year that saw property owning couples of whom one is non-Bermudian, need to obtain licences costing $1,375, saying, “In particular, I am keenly aware of the feelings of those Bermudians who are married to non-Bermudians and who feel slighted by the law applicable to them in the area of land ownership. Mr. Speaker, I am not empowered to promise change but I can offer an open mind.”

The Minister’s full statement follows below:

Mr. Speaker, if there is a Bermudian parallel to the “American Dream” it involves a peaceful and productive life that most often centres around owning one’s own home. Long before Prudential Insurance we talked about owning “a piece of the Rock”.

In this economy, in good times and in bad, that dream is no less important to the people of Bermuda and to those persons who have chosen to make Bermuda home.

The current state of the economy brings into sharper focus how difficult it is to realize that dream and the realities of the struggles of hard working men and women in this community acts as a call to action for the Government.

Mr. Speaker, the Ministry of National Security is charged with responsibility for land holding policy in Bermuda. This Government makes no apologies for the fact that we give great weight to the rights and legitimate expectations of Bermudians when formulating policy in this area. Our people deserve the assistance of their Government in meeting their aspirations and fulfilling their potential.

Mr. Speaker, land holding policy in Bermuda is a complex area that is a mixture of free market ideals and protectionist regulations. The Government’s role is to balance both effectively. Mr. Speaker, since my appointment as the Minister responsible I have canvassed and discussed land policy issues widely.

The divergence of views, taken with the state of the economy, and recognizing the significant role that real estate has played in the economic fortunes of our people, makes the right to re-asses our policies.

Mr. Speaker, I can advise this Honourable House that I will strike a Land Policy Review Working Group. This Group of technical officers within the Public Service will work closely with private sector stakeholders with whom useful dialogue has already commenced.

The Group will be drawn from the Ministries of Finance, Environment, Planning & Infrastructure Strategy and the Sustainable Development Unit under the policy guidance of the Ministry of National Security.

Mr. Speaker, I will ask the Group to consider the following issues:

• Does the state of the market presently support the creation of three bands of annual rental value (ARV) as a guide to land holding policy and the sale/purchase of land, differentiated by nationality or status?
• Can the fee of 18% for the purchase by PRC holders be reduced to stimulate this sector of the real estate market?
• Can the moratorium on the acquisition of land by PRC holders be relaxed to permit the purchase of condominiums that are not Government owned and not within a certain ARV bracket?
• Can the policy on the acquisition of land by non-Bermudians be stated more clearly to eliminate differences in interpretation between relevant stakeholders?

Mr. Speaker, this is not an exhaustive list and I expect that several other issues will necessarily arise. In particular, I am keenly aware of the feelings of those Bermudians who are married to non-Bermudians and who feel slighted by the law applicable to them in the area of land ownership. Mr. Speaker, I am not empowered to promise change but I can offer an open mind.

Mr. Speaker, the Group will not be long with its work. I expect to have its recommendations by 31st August so that in September, Cabinet can further consider these matters. In the interest of encouraging public participation in this important exercise I encourage interested parties to make submissions to the Ministry of National Security either in hard copy or by email to landreview@gov.bm.

Mr. Speaker, I wish to acknowledge the effective presentation of the Real Estate Division of the Bermuda Chamber of Commerce on many of these issues. Their Chairman, Mr. Leroy Douglas and their members shared valuable information with me on the state of the market and the solutions they proposed were welcomed and will form a useful starting point in our considerations.

Mr. Speaker, Honourable Members will recall that 2010’s Speech from the Throne signposted the wholesale review of the Bermuda Immigration and Protection Act. The work of this Group is among the important steps we are taking to make the law in this area more user-friendly and more responsive to prevailing economic conditions in Bermuda and the world.

Likewise, Mr. Speaker, this Government’s willingness to discuss these issues and to engage in this manner is proof of our continuing mantra of less red tape and more red carpet. We respect the drivers and job creators of this economy. We value our hard-working citizens whose labour is devoted to achieving the Bermudian Dream.

We acknowledge the critical role that real estate investment has played in the economic fortunes of our middle class.

Mr. Speaker, this is an opportunity for many to influence policy-making and for the Government to remain responsive to the needs of all of the people.

Thank you, Mr. Speaker.

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