Premier’s Remarks: OECD Global Forum
Premier Paula Cox hosted the opening press conference for the 3rd Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes this morning [May 30].
The high level meeting of the Global Forum Steering Group, of which Bermuda is one of three vice chairs, is taking place at the Fairmont Southampton and will be followed by the full meeting of the Global Forum on May 31 and June 1. Powerhouse G20 countries to small island jurisdictions are in attendance, resulting in more than 200 senior government officials descending on our shores.
The Premier’s full remarks follow below:
Good morning:
I am pleased you are able to join me today at the third meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
It is a privilege for Bermuda to host the Forum’s meeting and to welcome to Bermuda the OECD Secretariat of the Global Forum on Transparency and Exchange of Information for Tax Purposes. As this year the OECD is celebrating its 50th anniversary, I note that it is meeting the increased challenges of the 21st century and the rapidly evolving international playing field.
Many international standards, agreements and public policy agreements originated at the OECD. Just last week, at the Meeting of the Council of Ministers in Paris, OECD economies determined that it was important to do more to involve partners from non-OECD economies in all aspects of the policy dialogue – from the Green Growth Project, the Gender Initiative, to innovation in government – in order to face the global challenges of the 21st century and find common solutions.
The OECD’s work on international financial centres was center stage at the Council of Ministers, with much discussion of the tax and development programme. The Global Forum was held up as an example of how the OECD can structure its dialogue with non-OECD economies.
The latest four members of the Global Forum are all non-OECD economies: Colombia, Georgia, Ghana and Nigeria. The Global Forum now comprises 101 member jurisdictions, with a further 20 new members, mostly from developing countries, expected to join in the coming months. This is testimony to the commitment of the international community as a whole to the internationally agreed Standard for Exchange of Information upon request and the relevance and effectiveness of our work and the benefits to be derived from membership.
The Global Forum’s central work is to undertake reviews of the legal and regulatory framework for tax information exchange and to consider how it works in practice. The reviews are carried out by the members of the Global Forum to monitor and review the progress of jurisdictions in implementing the internationally agreed Standard.
The peer review programme has made astonishing progress since its launch in March 2010. To date, around 50 reviews have been launched, and more than 30 peer review reports, including both Phase 1 and combined Phase 1 and Phase 2 reports have been finalized, with the aim of completing 60 reports before the G20 Leaders’ meeting in November 2011.
The Global Forum launched, together with other international organisations, a programme of technical assistance seminars designed to help jurisdictions to prepare for the review process and to improve understanding of their technical assistance requirements.
Bermuda has done much to implement the Standard. We take our role as a responsible and trusted global citizen seriously.
In endorsing the internationally agreed Standard in the year 2000, Bermuda affirmed its long-standing position it does not adopt or promote measures that have been characterized as harmful, such as legislating bank secrecy or embedding in legislation similar measures that prevent disclosure of information.
Bermuda continues to negotiate and conclude TIEAs and other Agreements relating to taxation that provide for the exchange of information on tax matters to the OECD standard – 24 to date.
Bermuda has participated in the peer review process by both contributing assessors, trainers, and being in the first round of those who were peer-reviewed. At its last meeting, the Global Forum reviewed and ratified Bermuda’s Phase 1 Peer Review Report, with the determinations that Bermuda meets all elements, with some recommendations.
On May 20th, I tabled the Specified Business Legislation Amendment Act 2011 that will address these recommendations. I have asked our Legislature to work to pass this Bill through both our Parliament and Senate by the end of June. When it becomes law, we shall forward it to the PRG as part of our 12 Month Report to our Phase One assessment adopted by this body at the September 2010 Global Forum.
Bermuda is also committed to working with fellow Global Forum members to drive the implementation of the Standard on a global scale. We will continue to play our part as a Vice-Chair of the Steering Group and contribute actively to efforts to advance the Global Forum’s mandate, at the same time continuing to ensure that the perspective of small jurisdictions is considered.
The hypocrisy of these remarks is absolutely astounding.
How on earth can Bermuda brag about hosting a Forum on Transparency and Exchange of Information when our own PATI legislation remains permanently (and purposefully) stalled on the back burner?
Typical double-speak … talk left and walk right.
If the Premier is truly “committed to working with fellow Global Forum members to drive the implementation of the Standard on a global scale” then the PLP should, at the very least, start with our own Government and immediately, without delay, permit taxpayers access to all non-personal information.
Until then all these conferences, panel discussions, forums, etc. are nothing more than window dressing for those who need to be seen for the sake of being seen.
what do you wish to know that you don’t know already or cannot already find out ? PATI is the result of blackmail and this Government’s inability to tell people who they have long needed to, to get over it.
PATI is not the ‘result of blackmail’. It was actually promised by the plp years ago but has never been enacted. I remember getting a government leaflet all about PATI when Alex Scott was the Premier (the early 2000′s – almost a decade ago now).
Then there was a period when EW wanted to “redefine” what facts would be made public. Would it apply to only actions taken after the legislation is passed, or would it apply to historical facts? After public outcry Brown was forced to agree it would apply to historical facts.
But that too was years ago. For some reason we can only guess at, giving public information access is not a priority for this goverment.
They passed an SDO bailing out some rich bankers in a few weeks. But access to information has taken them years.
“never been enacted”? Wow. where do you people live. Ever heard of the Public Access to Information Act 2010 ? Steered through the House by, drum roll please, Ewart Brown…….Now ask Paula why she won’t fund it or bring it into force. Doc did his part by passing it BEFORE he left.
Say what, this comment makes no sense. What blackmail? The PLP’s very first election platform was rooted in transparency and operating the Government in the sunshine of public scrutiny (their words) but 12 years later the PLP have yet to follow through on their own publicly stated initiatives.
The Premier supports the idea of openness and transparency in Government’s dealings with other countries, just not within our own. That is hypocritical.
If you fail to understand why transparency is an important element of good governance and prefer instead to be spoon fed whatever line the Government wishes to sell you that’s your problem.
The rest of the taxpaying electorate prefers to think for themselves and not rely on talking heads telling them how and what to believe. Free your mind Hmmmmmmmmmm.
Agreed and in conjunction all the OBA Members of Parliament should resign and have by-elections to show transparency and end the hypocrisy, as we have heard from Sousa and team. Lead by example. transcparency for our country only refers to the PLP government not BDA nor OBA MPs. Did you listen to the house of assembly on Friday? Pettigill sepaking of white suits, was he speaking of his skin?
I agree that the OBA should surrender all of its seats as they were won under the banner of the UBP but wouldn’t that be a waste of time and resources since an election appears to be just a matter of time? I thought the same thing should have happened when Mr Furbert crossed to the PLP and when the BDA was formed but our politicians seem to have a collective problem with integrity.
As for Hmmmmm, there are lots of things we would like to know – for example, how about a detailed accounting of the cost overruns at TCD and the new pier at Dockyard? Or, how about details of the unaccounted for $800 million from the past 12+ years? I guess that’s too much to ask of a cog…
You’ve had both of those about four times over between the Auditor General and the Royal Gazette; do the research and you’ll find it in painful detail. As for the $800m to which you refer, that too has been explained about 100 times, 10 of those by Larry Dennis himself. The fact that you don’t believe it, didn’t see it, didn’t read it or ignore it and repeat the questions, doesn’t mean its a secret.
Indeed its no secret both Larry Dennis and his successor Mrs. Matthews have issued qualified audit opinions on the Government’s financial statements so the problems of poor internal controls, mismanagement and lax accounting polices remain unaddressed.
Do the research. Its no secret the Government has repeatedly failed to follow best practice when it comes to properly accounting for taxpayer funds. Perhaps if you didn’t rely on the talking heads as your sole “access to information” you would already be well aware of that. Another reason why PATI is so desperately needed.
My initial question remains: what is it that you don’t know that you don’t know already or cannot easily find out? I can’t think of a Government that has had more scrutiny and investgation and the like. Have we ever read how many houses and where Sir David and Lady Gibbons own? There are some assumptions in why we have not and never will that make many uncomfortable. In fact, I’m convinced that no UBP Minister ever travelled….Government travel began in 1998.Perhaps its just a coincidence that the public’s “right to know” started with this Government.
The debt ceiling has changed then and now, in fact it is not even comparable how much debt we are in. The recession and how that has changed Bermuda then and now. So like any Government in the present day, the Bermuda government needs to be prudent at not wasting tax payer’s money, $800m is a lot to go missing and in a time of need should definitely be accounted for, or at least made clear why those funds were wasted somehow through mismanagement? When you have people like Andre Curtis running Government sanctioned tourism schemes, you do have to ask transparency questions, that is just one case in point. Simply put, if you waste the people’s money, tell them to take pay cuts but don’t yourself and then avoid complete transparency when it comes to mismanagement of taxpayers’ funds. Your never going to be seen in a popular light. But is that the people’s fault for scrutinizing when judging by your comments the government does not have anything to hide but should just admit the fact that they are currently and previously very good at wasting tax payers money? What I would like to know is how almost every single government run project has had cost overruns in the last 10 years, what were these unaccounted costs, where did the money go and how was it spent. In financial documentation dollar for dollar, is that easy to find out?
The idea of the public having a ‘Right to Know’ started with an election promise by the PLP more than 12 years ago. Why you insist on its genesis being anything else is incongruous with the facts.
The current Premier admitted (almost immediately after being anointed leader by the PLP) there was much work to be done to improve how both Government operates and also regain the public’s trust so they were/are well aware there are serious bridges to mend.
It’s not a matter of wanting to know something in particular (I’m not on a witch hunt), it’s wanting to ensure we have entrenched concepts of transparency and accountability in Government.
Why would you want, or chose to argue against, anything different than that? Are most 1st world countries and modern democracies wrong for promulgating FOI/PATI legislation?
Interesting that you avoided commenting on the qualified audit opinions and the lack of Government compliance with best practices (during Ewart Brown’s tenure).
HMMMMMMMMM change your name to “Defender of the Indefensible” are you going to now turn PATI into a race (though party affiliation argument) or a they did it so why should I….. Oh wait you did ….”Perhaps its just a coincidence that the public’s “right to know” started with this Government.”
LOL PATI should be part of any modern Democratic Government here are the people are you listening.
Wow …you sure said it all….this cog is worse than Brown….the govenor needs to pay attention to what she is doing…. or not doing ….
How could a premier allow what is going on education ? The dame is a joke.
Look at our roads…what a mess they are in !!!! street lights all over the Island are not working….and we can not blame BELCO for this …becaue govt has taken over ordering lights for Belco ? I think it is time for the manager OF BELCO to tell us what the hell is going on !!!
Look at me! Look at me! I’m smart, and witty……
If you thought that for Furbert and BDA, why the excuses for OBA. Seems selectivce? The 40 thieves children are running the country now profiting but has changed the name of the legacy to deceive the electorates. Yes we are smart and witty.
All I’m saying is that it appears to me as though an election is coming up and in these tougher economic times, I would hate to see us pay to have a large number of bye elections only to have the winners sit in parliament for a few days/weeks before a general election is called and we have to go through the whole process again. Had the OBA been formed a year ago, my stance would be the exact opposite.
Maybe we need the 40 thieves back in power? At least they didn’t run this country into debt…
@Truth. ….”The 40 thieves children are running the country now ….”
That’s an emotional statement for sure….there are MANY (sorry, no underlining possible instead of caps) capitalists at work in Bermuda (thank goodness) but not “running” it. Yours is a “Reds under the beds” comment if ever there was one ….although use of that particular phrase is ironic for sure.
If we want a capitalist system successful businesses will always get the attention and give the impression that they are in charge. Comments such as yours have been leveled at businesses worldwide by anti-capitalists for centuries so it’s nothing new.
We should ALL thank goodness that there ARE successful businesses on the Island. And why do we need successful businesses? In order to spread wealth one has first to create it.
Too many times we miss the point that there are many many successful people on this tiny Island of ours of all races who together have over the years given us so much more than other juristictions of all sizes. Look up where Bermuda stands on lists, like the CIA World Factbook, and have some appreciation of how this tiny inconsequential (to the rest of the world) 21 square miles has done so well when others have not. Sure there are many issues from the past but they cannot be resolved by writing emotional comments on this and other websites. Sure there are haves and have nots of all races here but where in the world is there a place without these problems? It’s time that more people watched and read what is going on in the rest of the world and not just the news according to NBC CBS ABC (or FOX). If you are reading this then you have the ability on the screen in front of you to access so much more that is out there that should make more of us appreciate this island of ours.
@MBzizi – its call inherited wealth. How many of the 40 theives offsprings are on financial assistance? Some of our children worked hard and are successful, but still behind the 8th ball. 40 thieves children, most have trust funds, the best education and still dumb, but don’t have to smart because the trust funds takes care of them.
@ Truth, Based on your topic you are lumping 40% of the population as decedents of the 40 thieves. That is pretty ridiculous to imagine.
I hate to tell you like most other capitalist countries in the world 20% of the population holds 80% of the wealth. That means that the rest of the 80% of the population has to WORK hard to get the financial rewards you are talking about.
General, Bermuda is another world. Sad that the 80% don’t run things eh?
Thanks in General thats REAL truth spoken well.
LOL
meant to say “some are still dumb”
@Truth. “Dumb” is such a bad word, why the need to denigrate anyone? There are people of all races of all classes who are wonderful and there are some of all races and classes who are not so wonderful, everywhere in the world. Bermuda is no different.
We need to spend more time in Bermuda debating and not mud-slinging. Writing as if one is shouting minimises the effectiveness of the point one is trying to make…you’ll never convince anyone apart from the people who think exactly as you do. It’s not the way to win over someone to your point of view. Remember when you watched debates at your school?
Back to the trust fund children. Yes indeed, not any on financial assistance I would think. Just as in many other countries in the world. Now, just like in many other countries in the world, there are up and comers who do the same for their children. Is there not a group in the next generation of Bermudians (of all races) who are setting up for their children? Now…The 21st Century does not lend itself to even trust fund children doing nothing, but if you are a parent yourself do you want to try and give your own children the best you can?
We want, we need, there to be successful people in Bermuda. We need to make sure that we create the right environment for them as well as for everyone else.
I’m not sure what you mean by “some of our children…. are successful…….they are still behind the 8 ball”.
WE ARE ALL I GUESS SMART TO FIGURE OUT WE ARE SPEAKING OF BERMUDA? Many of us give our children the best we can and they are still behind the 8th ball. Some of us I speak of are Bermudians. Its mud when we speak of truth, its debate when you speak.
@truth, so on point!
@Liars – who is that directed at?
Bermuda is right to embrace the OECD initiatives for transparency in Offshore Financial Centres and Bermuda is right to support this.
But to try and put a spin on the initiatives and our participation is good for our International Business is totally hypocritical and wrong.
The whole idea of these initiatives is to stop tax evasion, money laundering and tax avoidance. All very acceptable!
However, Bermuda’s International Business model is based upon no taxation of income or capital gains. Commonly we are labeled as a tax haven.
Something wrong with this picture?
Yes, there is no strategy for Bermuda to change its International Business model. The current government and the new OBA can argue all they like about treating international business fairly and how much in the way of funds should be given to Business Bermuda to promote our current Business model “tax haven”.
The bottom line is how are our leaders in government and International Business going to adapt to this new world.
WAKE UP Bermuda!
We are not sleeping. Its the reality