Bermuda Government: Surprised & Disappointed

February 8, 2015

The Government of Bermuda noted the comments from UK Opposition Leader Ed Miliband, saying they are “surprised and disappointed that the island has been included in the list of referenced territories which lack openness in such areas as ultimate beneficial ownership of companies.”

This follows after Mr Miliband sent a letter to Overseas Territories and Crown Dependencies saying that within 6 months of the election of Labour government, they will be required to produce a publicly accessible central register of beneficial ownership.

“If any Overseas Territory or Crown Dependency does not meet this deadline, we will ask the Organisation for Economic Co-operation and Development [OECD] to put them on the OECD’s tax haven blacklist,” said the Labour Leader in advance of the UK General Election in May.

Mr Miliband’s statement has not only drawn negative reaction from the Overseas Territories, but also from within Britain, with Chancellor George Osborne dismissing the Labour leader’s plans saying he was “simply not fit for office.”

The BBC quote Mr Osborne as saying, “If you actually look at what he’s saying, he wants to blacklist every country of the OECD that doesn’t have these central registers.

“Britain is leading by example, it is having new central registers, it is insisting that its overseas territories transparently share information with us.

“But the Labour leader is simply not fit for office because he does not think through the consequences of his anti-business, anti-enterprise and anti-our partners abroad policies.”

The full response, which appears to have been issued to the international media, is below:

The Government of Bermuda notes the reported comments of Mr Edward Miliband, the Leader of Her Majesty’s Opposition in the UK, in relation to tax avoidance and British Overseas Territories, and his wish to enforce better levels of transparency and disclosure should he achieve office in the May 2015 General Election.

The Government of Bermuda is surprised and disappointed that the island has been included in the list of referenced territories which lack openness in such areas as ultimate beneficial ownership of companies. Bermuda has in fact had a central registry, of the kind being introduced in the UK, since the 1940s and has been a leader internationally in this area.

Bermuda also have a system of automatic access to the registry by tax and law enforcement authorities of the 70 or so countries with whom it has [bilateral] partnership and disclosure arrangements. Bermuda applauds and supports the UK’s move to establish a Government held central registry on ultimate beneficial ownership, matching the standards long established by the island.

The Premier of Bermuda, The Hon. Michael H. Dunkley J.P, M.P., said: “The Government of Bermuda remains open to discussion with the UK’s Opposition, and all other interested parties, in sharing best practice across borders in areas of corporate transparency, and the fight against fraud and crime.

“We would also remind Mr Miliband of Bermuda’s strategic economic contribution to the UK, which includes direct and indirect employment in the UK of 100,000 people, more than the Japanese motor industry, as well as our role as a global hub for the reinsurance and insurance industries, providing the critical underwriting required for damage arising from natural disasters and terrorist events.”

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Comments (19)

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  1. agatha christie says:

    Don’t be surprised if we see more of this (from all parties) in the run-up to the UK general elections in May.
    Don’t be surprised also, if we see it as the AC comes closer.
    What we need is someone who is monitoring the websites, the wires etc, who has some key messages that can be used to respond.
    We must also not allow these things to go unchallenged locally – the media has a big say in that as well. It is no use running an op-ed/story etc to run without the author/the story being challenged.

    • Mockingjay says:

      And this is the Government when they were the opposition always jumping on P.L.P. about TRANSPARENCY.
      Well the chicken has come home to ROOST.

    • Mockingjay says:

      Funny how when we have Labor issues in Bermuda RACE pops up but in the Colonial Land …………………………………….
      Mmmmmmm

      • Truth Teller says:

        That is because for Anglos in Bermuda race has always trumped class. Just like it has for their cousins to the west of us in the former states of the confederacy.

        Need I say more…

  2. Raymond Ray says:

    Note this excerpt: “The Government of Bermuda is surprised and disappointed that the island has been included in the list of referenced territories which lack openness in such areas as ultimate beneficial ownership of companies. Bermuda has in fact had a central registry, of the kind being introduced in the UK, since the 1940s and has been a leader internationally in this area.
    Bermuda also have a system of automatic access to the registry by tax and law enforcement authorities of the 70 or so countries with whom it has [bilateral] partnership and disclosure arrangements. Bermuda applauds and supports the UK’s move to establish a Government held central registry on ultimate beneficial ownership, matching the standards long established by the island.”

  3. agatha christie says:

    It is the kind of thing that DCI should be really hooked into as a matter of urgency

  4. Ian Waddington says:

    This is fairly typical of an old fashioned labour government and I’m surprised that the PLP don’t fully support it!!!

    • Unbelievable says:

      The PLP won’t support it at all. They’re just going spin it as “the evil British empire telling Bermuda what do.”
      One would think they would support a Labour Govt idea but it won’t work in their favour to win back the BDA Govt.

  5. swing voter says:

    that guy is an idiot….a loud mouth tryna convince people that Labor is for the people, by the people, etc etc….or he simply hasn’t done his homework

  6. labour campaign says:

    Hey Bermuda government. I wouldn’t even take their comments toO seriously. Last time I checked, their biggest revenue comes from Canary Wharf. And 100% of those companies have offshore subsidiaries. That are there biggest profit makers. If I was Ed I would puss off the multinationals.

  7. Jr Smith says:

    well the bright side to this is that both political parties here in bda are united on telling London to bug off….

  8. Huh says:

    Pure postulating politics. Fast Ed trying to get Labour in power by using little Islands as whipping post. Biggest tax haven in the world is London. He won’t threaten to clean up his own back yard because he would lose votes.
    As for independence for Bda., that’s Dr. B stirring the pot so if PLP get back in, they won’t ‘ave the Guv looking over their shoulder……

    • Varied says:

      Don’t worry about the former Premier’s comments. There’s some truth in them (note that it’s the UK dependencies under this fresh assault, not places like Luxembourg), but that’s a separate issue, the going independent discussion.

      Point is that the current Premier has quickly rebutted Miliband’s comments and we should get behind him.

  9. Kangoocar says:

    Just more proof that any political party that has the name LABOUR in it or attached to it, is SCARY!!!!!!

  10. aceboy says:

    The labour party in the UK needs to be elected before they can do anything. Given their past track record I am not sure we need to be overly concerned….yet.

  11. Coffee says:

    Some loopholes should be closed while others must remain open . The political fallout by allowing UK nationals to park money overseas untaxed by the UK Exchequer will hurt Cameron . I wonder how closing this loophole will affect the UK deficit in the long term ? Now the parallels ; the PLP want to close the immigration loophole to protect the born citizens of Bermuda from future harm , however it may show up , by allowing non citizens to gain status in Bermuda . The UK Labour Party want to close a tax loophole that allows billions of pounds to escape untaxed across their borders . For the sake of aurgument the term LOOPHOLE is used .
    Bermudas conservative government wants to continue to allow a very unpopular item of law to exist which benefits their political base and potential continuance in economic and political power . Bermudas conservative government will also lobby to allow a loophole which hurts the average Briton to remain open so that Bermuda could continue to stay in business . With hundreds if not thousands of Bermudians now residing in the UK by choice they (Bermudians overseas )will need that money as much as Front Street does .

  12. Alvin Williams says:

    And if the British labor party does form the next government; what than? the writing is on the wall and it can be seen on both sides of the Atlantic if you go by the recent budget announcement by the Obama administration. No amount apologies on behalf of Bermuda’s colonial status will obscure the fact that when it comes to national interests; British national interests will come before Bermuda’s national interest and that is whether we choose to hide our heads in the sand or not.

    • jt says:

      You either haven’t read what they would require or don’t understand what that request would mean for Bermuda.
      In either case you are throwing around your usual uninformed dribble hoping it will cling somewhere.

  13. Ringmaster says:

    Sad that supporters of labour movements can still be swayed by their leaders who only have their self interests at heart. Bermuda recently had its own and the UK had Tony Blair, now a multi millionaire – hardly a poster boy for Labour. Labour is history, just a convenient way for a few to make their fortunes, leaving behind a trail of deceit, debt and destruction.
    Threats such as those by President Obama and Ed Miliband are merely that. Trying to appeal to the voters but in the end they soon find out that the issues they raise will only cause embarrassment amongst their colleagues and hurt their own people, so they drop them quietly.