The SpeakerThe SpeakerHonourable Members, the Minutes for July 1st, 2016, are confirmed. And Minutes should have been distributed. If there are no objections, then those Minutes will be approved. Since there are no objections, these Minutes will be approved. [Minutes of 1 July 2016 confirmed]
The SpeakerThe SpeakerMinutes of July 8th are deferred. MESSAGES FROM THE GOVERNOR
The SpeakerThe SpeakerThere are none. ANNOUNCEMENTS BY THE SPEAKER OR MEMBER PRESIDING LETTER FROM HON. SPEAKER BERCOW, HOUSE OF COMMONS, LONDON
The SpeakerThe SpeakerYes. Honourable Members, I do have today . . . Honourable Members, while the Speaker is making announcements, Members should be in their seats. Thank you. Honourable Members, when the Speaker is speaking . . . I would like to read to Members a response that I received from the …
Yes. Honourable Members, I do have today . . . Honourable Members, while the Speaker is making announcements, Members should be in their seats. Thank you. Honourable Members, when the Speaker is speaking . . . I would like to read to Members a response that I received from the Right Honourable John Ber-cow, the Speaker of the House of Commons, in reply to a letter that was sent to him. It says, “Dear Mr. Speaker: “On behalf of the House, may I thank you for your letter and kind words following the recent death of Jo Cox, MP, in the most tragic and unacceptable of circumstances. The manner of her death reminds us all of the democratic objectives which we serve. Members of the House, to many of whom she was known well and to whom her death has bee n a deep personal shock, and I am sure her family , will be grateful for the messages of goodwill and support from friends and colleagues from around the world. “Yours sincerely, “John Bercow.” Secondly, Honourable Members, I want to remind Members —and those who are not here need to hear it more than those who are here— that the House begins at 10:00 am every Friday. And Me mbers are expected to be in their seats at the beginning of the session. Too often, we begin this House without the required number of Members who should be here. I want to remind Members of their responsibility, ha ving been elected by the people of Bermuda, that they should be in their seats.
MESSAGES FROM THE SENATE
The SpeakerThe SpeakerThere are none. PAPERS AND OTHER COMMUNICATIONS TO TH E HOUSE
The SpeakerThe SpeakerThere are none. STATEMENTS BY MINISTERS AND JUNIOR MINISTERS
The SpeakerThe SpeakerThe Chair will recognise the Honourable Minister for Economic Development. Minister Dr. Grant Gibbons, you have the f loor. BERMUDA ENERGY SUMMIT 2016 Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. Good morning. It is n ice to see you back. Mr. Speaker, I wish to advise this …
The Chair will recognise the Honourable Minister for Economic Development. Minister Dr. Grant Gibbons, you have the f loor.
BERMUDA ENERGY SUMMIT 2016
Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. Good morning. It is n ice to see you back. Mr. Speaker, I wish to advise this Honourable House of the successful 2016 Energy Summit that was hosted by the Department of Energy on June 29th at the Hamilton Princess Hotel. Mr. Speaker, the theme for the summit was Powering Our Succ ess, which, in addition to considering future fuel options and new technologies, also addressed the development of expanded energy policies for Bermuda. Attendees were also provided with an update on the Energy Department’s projects for the current 2476 13 July 2016 Official Hansard Report
Bermuda House of Assembly year. The summit provided an ideal platform to di scuss Bermuda’s energy future. Mr. Speaker, an earlier summit held in N ovember of 2014 included a good cross section of Bermudian businesses, environmental interest groups, the electric utility, the renewable energy community , and prospective developers of energy projects both local and overseas. This year, the scope of participants was broadened to include more overseas attendees and the Bermuda Government representatives from r elated disciplines. There were approximately 110 attendees, with over 20 panel lists sitting on five panels. The panels were conducted in a Davos -style format, where each speaker made a short presentation followed by discussion amongst the panellists and with the audience. This year’s summ it was attended by a disti nguished group of regional and Bermuda- based scientists and engineers, energy experts, project finance consultants , and lawyers. Mr. Speaker, the first panel, entitled Snapshot of Progress, included representation from the D epartment of Energy and their consultants, who pr ovided an update on the energy initiatives that are currently underway within the department. The topics included the department’s energy policy development activities, preparations for the commencement of the Electricity Act 2016, and an overview of the RFP process for the solar PV [photovoltaic] project on the Finger at the L. F. Wade International Airport. The attendees heard that the development of a fuels policy is a principal objective for the year; that the Regulatory Authority is expected to begin regulating the electricity sector later this year; and that the selection of a developer for the solar photovoltaic (PV) facility at the Finger is also scheduled for the end of 2016. Mr. Speaker, the second panel, Fuelling Pr ogress: Possibilities and Strategies, included an overview of different fuel technologies that may be appr opriate for Bermuda. Liquefied natural gas [LNG] and a preview of BELCO’s proposed integrated resource plan (or IRP as it is known) wer e both featured. The discussion on LNG delved into elements of its supply and value chain, and provided the attendees with an overview of the intricacies involved when considering the transition to LNG as the primary fuel for generating baseload electricit y. Mr. Speaker, the discussion on BELCO’s IRP was both timely and informative, since this plan was due to be submitted the following day, as requested by the Energy Commission, in accordance with their most recent rate case decision. The complexity and intricacy of the factors that must be considered highlighted the reasons why the review of future IRP’s will be a public and iterative process when it is formally conducted by the Regulatory Authority. Mr. Speaker, the final topic of this panel f ocused on Energy Storage Technology. We tend to think of electricity storage as being used in combina-tion with renewable energy projects in order to smooth out intermittency. But the audience heard about the additional services that storage can provide when d eployed by a utility. These services include energy management, backup power, load levelling, frequency regulation, voltage support , and grid stabilisation. The type of service implemented, however, is dependent upon the storage technology and the strategy of the particular utility. Mr. Speaker, the third panel was titled From Concept to Market: Project Financing. The panellists included speakers from well -known orga nisations such as BlackRock, KPMG, Torys and the Galway Group. While proponents of new energy projects may have great ideas, they sometimes have limited understanding of the financial and legal requirements that must be met in order to launch a viable project. Each of the panellists highlighted different aspects of project financing and offered the audi ence examples of situations that could make the difference between a successful project and a failure. It is noteworthy that the general consensus expressed by the panel is that Bermuda is currently regarded as an excellent jurisdiction for foreign energy investments. This is partly due to BELCO being considered a stable utility, which means being considered a secure off -taker, or buyer, of renewable energy from independent power producers. Favourable comments were also expressed about our new energy polic y, as well as the Electricity Act, which establishes a credible regulatory environment for the electricity sector. Mr. Speaker, the summit’s lunchtime keynote address was given by Mr. Hugo Hodge. Mr. Hodge is the former Chief Executive Officer of the US V irgin Islands Water and Power Authority, who led those islands through a major shift in the fuel that they use for the generation of electricity and a significant reduction in their retail electricity rates. The US Virgin I slands now run on liquefied propane gas (or LPG). In addition, they have built three utility -scale solar facil ities. The USVI now pays approximately 30 per cent less for their electricity than when diesel was their primary fuel. In addition, their carbon emissions have been successfully r educed. Mr. Hodge highlighted the critical factors that drove the shift to LPG and emphasised that a com-prehensive policy, supported by sound economics, was the key driver of change. Mr. Speaker, following the lunch break, a panel entitled On the Horizon addressed new and evolving technologies, including one that is to be p iloted in Bermuda. The presenters on the panel were from the local scientific community, as well as overseas developers. Of particular note was the inform ation provided about the Ceto s ystem, which is named after the ancient Greek goddess of the sea. Ceto emBermuda House of Assembly ploys a technology that harnesses ocean swell movements to actuate a submerged buoy, which drives the generator that produces the electricity transmitted by submarine cables directly to the grid. Ceto has potential use in Bermuda and is anticipated to be tested in a pilot version. Mr. Speaker, the day ended with a panel that summarised the themes of the day and provided per-spectives and the challenges and opportunities that Bermuda w ould need to address. The title of this panel was Moving Towards Success. Issues that we face in Bermuda include the slowing growth in overall demand for electricity, an increase in dramatic global weather events, lower prices for mature renewable energy t echnologies such as wind and solar, and the desire of consumers to convert from being consumers to suppliers of electricity. Mr. Speaker, the energy sector is in a state of rapid transformation. These changes will require both the Department of Energy and ultimately the Regul atory Authority to ensure that their policy development and regulatory decisions continue to evolve for the benefit of all energy stakeholders in Bermuda. Mr. Speaker, the Bermuda Energy Summit 2016 was an unqualified success and anot her example of the commitment this Government has to Bermuda’s energy future. We hope to make this an a nnual event by continuing to engage the public, BELCO, fuel suppliers, potential investors, develo pers, and environmental interests, all of whom have a major interest in Bermuda’s energy sector. Mr. Speaker, copies of the presentation from the summit will be available on the Government portal in the near future so that interested persons who were not able to attend can benefit from the information provide d. Mr. Speaker, in closing, I would like to thank the Planning Committee for contributing to the suc-cess of the summit, and particularly acknowledge the support and resour ces provided by BELCO, Caliper Engineering, Greenrock , and KPMG in helping to define the themes, organise the panels , and procure the necessary moderators and panellists. Mr. Speaker, I would also like to thank a number of overseas companies, who in addition to actively participating in the panels also sponsored portions of the summ it. Th ese companies are Pierce Atwood LLP, Torys LLP and WesP ac Midstream LLC. And of course, finally, I would like to thank the members of the Energy D epartment for their role in making the summit a real success. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you, Minister. That is the only Ministerial Statement. REPORTS OF COMMITTEES
The SpeakerThe SpeakerThere are none. QUESTION PERIOD
The SpeakerThe SpeakerThe Chair will recognise the Honourable Member from constituency 17, MP Walton Brown. QUESTION 1: BERMUDA ENERGY SUMMI T 2016
Mr. Walton BrownThank you, Mr. Speaker, and good morning, colleagues. Mr. Speaker, the Honourable Minister responsible for Energy stated that we are in a period of rapid transformation with regard to energy. And in light of the conference that w as recently held, can the Mini ster inform this House whether or …
Thank you, Mr. Speaker, and good morning, colleagues. Mr. Speaker, the Honourable Minister responsible for Energy stated that we are in a period of rapid transformation with regard to energy. And in light of the conference that w as recently held, can the Mini ster inform this House whether or not the Government has reflected on or is contemplating establishing car-bon emission goals and/or adoption of new technol ogies by our only energy provider, currently BELCO ? I understand there are other people who are coming into market. But as the only current supplier of energy, has the Government contemplated or will they contemplate setting some goals for BELCO in terms of both emissions, adoption of new technology , and r eduction of such emi ssions?
The SpeakerThe SpeakerYes. Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. The answer is the Energy Policy Statement set out aspirational goals for a number of things, i ncluding the proportion of renewables and the proportion of carbon reduction. It is aspirational because, as the Honourable Member said, due …
Yes. Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. The answer is the Energy Policy Statement set out aspirational goals for a number of things, i ncluding the proportion of renewables and the proportion of carbon reduction. It is aspirational because, as the Honourable Member said, due to the rapid change here, it is difficult to predict exactly by how much those carbon emissions can be reduced in a particular time frame. And I understand that a number of other countries have done that, with some success and some without success. But the point I would like to make is that there are two things that we are looking at right now, which could have a f airly short -term— and by that I mean the next couple of years —impact. And the Government has not made a final decision on this yet , because there are economics and other i ssues involved. One is the adoption of liquefied natural gas as a baseload fuel to replace heavy fuel oil and diesel in the utility. LNG basically reduces carbon emissions by 30 per cent. So that would have us well within any Kyoto Protocol targets that have been set by other countries. The other, as I think Honourable Members will be aware from discussions we have had, is the pr oposal to essentially put o ut a request for proposal on a photovoltaic utility -scale facility at the Finger. Obv iously, PV facilities do not have any carbon emissions whatsoever. So they would also contribute to a lowering of the carbon emissions by Bermuda. We are cur2478 13 July 2016 Official Hansard Report
Bermuda House of Assembly rently working through the sizing of that particular f acility. So when we have a clearer sense—and we should in the next couple of months have a clearer sense of what that RFP is going to look like and the sizing —that will also, once that is built in the next year or so, have an impact on carbon emissions. So the combination of the two could have a fairly dramatic impact on the emissions by the utility. Right now, to simply impose emissions in the facility with the use of diesel and heavy fuel oil would be counterproduc tive at the current time. But as we evolve and as we move towards this transformation — and LNG does look like a pretty good bet at this point —we will see a reduction along the lines that I think the Honourable Member is looking for. Thank you.
The SpeakerThe SpeakerYes. QUESTION 2: BERMUDA ENERGY SUMMIT 2016
Mr. Walton BrownCan the Minister give some clarity on the RFP process regarding the photovoltaic pr oposal at the airport? Because the website talks about a period from June to December of 2016, yet it has all these earlier dates for submissions. So I think pr ospective applicants are concerned that there …
Can the Minister give some clarity on the RFP process regarding the photovoltaic pr oposal at the airport? Because the website talks about a period from June to December of 2016, yet it has all these earlier dates for submissions. So I think pr ospective applicants are concerned that there is not full clarity about the process . Has the deadline passed for identification of applican ts? Or what is the significance of December 2016 in terms of the deadline?
Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. I appreciate the Honourable Member’s question. Let me step back for a second and say that one of the things that needs to be done in terms of inviting applications to build a utility -scale facility is you need to be able to set out as clearly as possible in any RFP process all the issues, from planning to si zing to scale to interconnection, in order to reduce what is known as the risk to potential developers, whether they be local or overseas. We are currently going through that process now with the consultants to the Department of Energy, who are working on essentially the drafting of an RFP proposal. The approach that we are going to use is to do it in two phases. So in order to answer the Hon-ourable Member’s question, the first phase will act ually be a request for qualification. And that will go out in August. We are looking for those who would be i nterested in responding to an RFP. We expect to get quite a bit of response to the RFP. So what we would like to do i s, first of all determine who— whether they would be local, whether they would be local with ove rseas partners, whether they would be overseas, who is interested in actually bidding, and what their qualif ications are that would demonstrate that they have the expertise and the capability to be able to do this. So that will go out in August. The actual qualified bidders, which would be a shorter list, we expect to annou nce sometime in Se ptember. And those bidders would then be given a copy of the formal request for proposal, which they would then have to respond to. And we expect to be able to deal through that process by the end of the year, which is the date December 2016. We expect to have, after negotiation with the final approved bidder or bidders (it could be a syndicate), we expect to be able to make a determ ination probably in December or more likely early January. So, hopefully, that will give the Honourable Member a sense of this. This will all be set out. We have not actually got firm dates yet. But I think the months that I have given should be a pretty good indication of what the timetable is likely to be. Thank you.
The SpeakerThe SpeakerThank you, Minister. Yes, M P Brown, third question, yes? QUESTION 3: BERMUDA ENERGY SUMMIT 2016
Mr. Walton BrownThird question. With regard to LNG, my understanding is that BELCO have estimated that the cost of converting to LNG is about $200 million, and that , given they have taken all their profits and given them out in dividends, they have no cash reserves to be able to underwrite …
Third question. With regard to LNG, my understanding is that BELCO have estimated that the cost of converting to LNG is about $200 million, and that , given they have taken all their profits and given them out in dividends, they have no cash reserves to be able to underwrite it. So, is the Government contemplating allowing for an increase in rates to allow BELCO to generate the cash to be able to make that conversion?
The SpeakerThe SpeakerMinister. Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. I guess there are a couple of parts to that question. Government does not essentially determine or respond to rate increases. That has been done, up to this point, by the Ener gy Commission. And the Honourable Member will …
Minister.
Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. I guess there are a couple of parts to that question. Government does not essentially determine or respond to rate increases. That has been done, up to this point, by the Ener gy Commission. And the Honourable Member will know that they recently opined and delivered a decision on a rate case appl ication by BELCO. Those rates will kick in this month. So in the future, if there is an application for a rate case, it will go to the Regulatory Authority, b ecause, as the Honourable Member will remember, we are switching over under the Electricity Act from the Energy Commission to the Regulatory Authority, who will review future rate cases. The Regulatory Authority, as a full -time bod y, will have a lot more (I will say) information and exper-tise at its disposal to delve into all the issues related to a rate case application. And so, I think I am not trying to say that the Energy Commission did not do a good job; I think they did. But t he Regulatory Authority,
Bermuda House of Assembly which is essentially parallel to what happens in other jurisdictions, will have a lot more (I will say) ammunition at their disposal to be able to look at rate cases. With respect to LNG particularly, the Honourable Member, I think, is assuming that it will be BELCO that will be the provider using LNG going forward. That is not necessarily the case, because under the new Electricity Act, there is a process known as the integrated resource plan, where the utility has to come out wit h a proposal for both demand and supply, but that can be challenged by others who feel they can deliver electricity at a lower, better rate, with lower emissions, with all kinds of other issues. We already are aware of a number of interested parties who would like to provide electricity generation using LNG. So that process, which will be transparent and public, will unfold over the next (I will say) six months to a year, once the Regulatory Authority is up and going. Our assessment right now is that conversion to LNG, because the capital costs , would be amortised over a long period of time, and would actually result in a reduction of rates. I cited the example of the US Virgin Islands in the Statement I just gave. And there, they found that conversion, not to LNG, but to liquefied propane gas, actually resulted in a 30 per cent reduction in their rates there. We do not know what the actual impact will be in Bermuda until we go through this process. But on the face of it, LNG , in terms of the energy that it provides , is a lot less e xpensive than diesel or heavy fuel oil, which we are using right now. But there is an upfront capital cost, and that needs to be amortised. So our sense is that LNG actually would result in a reduction of rates, as it has in other jurisdictions. Thank you, Mr. Speaker.
ANNOUNCMENT BY THE SPEAKER
APOLOGY
The SpeakerThe SpeakerThank you, Minister. MP Brown, thank you. Thank you, Honourable Members. Madam Clerk, just before we move on, I failed to indicate, in my announcement, that MP Burt, who is the Acting Leader of the Opposition, is actually away on a parliamentary conference. CONGRATULATORY AND/OR OBITUARY SPEECHES
The SpeakerThe SpeakerAre there any Members who would like to speak? The Chair recognises the Honourable Member from constituency 13. MP Diallo Rabain, you have the floor.
Mr. Diallo V. S. RabainMr. Speaker, it is with heavy heart that I would like for the House to send cond olences to the family of Kamala Smith, who has r ecently lost her battle with cancer. It was a five- year battle, and I am sure most Members in the House should be …
Mr. Speaker, it is with heavy heart that I would like for the House to send cond olences to the family of Kamala Smith, who has r ecently lost her battle with cancer. It was a five- year battle, and I am sure most Members in the House should be familiar with her. She was quite vocal about this rare type of cancer that she did have. As she did have children at Elliot Primary, of which I am the PTA President, I did have a chance to come into contact with her and talk to her quite a bit. She was a joyful, joyful woman. You would never think that anything was particularly wrong, and she was cheerful to the end. And I would like to associate the entire House with those condolences to be sent. Also, Mr. Speaker, on a happier note, I do not normally do birthdays, again, but I would like the House to send congratulations to Dr. Bertram McPhe e, who turned 90. Dr. McPhee has been som eone whom I have known for literally a couple of decades. And he is someone I have learned quite a bit with and someone I can call for advice. And if you see him walking today , you would never think that this man is 90 years old. He came to Bermuda during a time when black doctors were not in fashion. And he was responsible for quite a few births, I do understand— unfortunately not mine or some of the younger Members. But I know when we get together and talk, he will say, Well, I remember when he was born. I r emember when he was born. He is the type of doctor who can do that. He was very personable. And of course, I think everyone remembers his ex -wife, Gloria, who was a Member of the Legisl ature as well. So I would l ike congratulations sent out to Dr. McPhee as well. And I will associate Lawrence; I will associate Cole— we should just associate the whole House to that. Thank you, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you, Honourable Member. The Chair will now recognise the Honourable Premier. Hon. Michael H. Dunkley: Thank you, Mr. Speaker. I would like the Honourable Member to ass ociate me with the condolences and the birthday wishes. I will tell you a funny story quickly about Dr. McPhee. …
All right. Thank you, Honourable Member. The Chair will now recognise the Honourable Premier.
Hon. Michael H. Dunkley: Thank you, Mr. Speaker. I would like the Honourable Member to ass ociate me with the condolences and the birthday wishes. I will tell you a funny story quickly about Dr. McPhee. I played golf with him a number of years ago, and it was a threesome of us playing. And on the 14 th hole, we all hit really good shots. We get up to the green, and there is only one ball next to the hole. And Doc said, Well, that’s not mine. Mine is in the cup.
[Laughter] 2480 13 July 2016 Official Hansard Report
Bermuda House of Assembly Hon. Michael H. Dunkley: And we all just laughed. Well, it was my ball, and his and the other playing partner ’s balls were both in the cup for an eagle two. And he said, I told you. I just thought your ball went over. But he always had a smile on his face, and I wish him many happy returns on his 90th birthday. I would like this Honourable House to send condolences to the lovely wife of Johnny Barnes, who passed away early on Saturday morning. I am sure all Members have their own individual stories to tell about Mr. Barnes. But Mr. Barnes changed Bermuda a number of years ago when he started to stand down at the foot of the lane. And I remember one of the first days he stood down there. At that time, I was doing delivery and sales at Dunkley’s, and at 4:00, 4:15, 4:30 in the morning, the first delivery of that route was to the Crow Lane Bakery. And so, I drove in. It was a dark morning. It was not a very nice morning; the weather was a little stormy. And I am just taking stuff out of the truck to go into the bakery, and I hear, Good morning. Love you. Good morning. Love you. And I turned around. It was dark. I did not say anything. I went back inside. I came out again, and he said, Good morning, my brother. I love you. And there I saw Johnny standing about 5 0 yards away at the foot of the lane on one of his first days there. And he was there for many, many years imparting some community spirit. And on behalf of everyone in this House, I think we should send condolences to his wife for a man who really gave some good spirit to Bermuda every morning, to be at the foot of the lane. Thank you, sir.
The SpeakerThe SpeakerHe bus -drove me when I went to school. He was my bus driver. Yes. [Inaudible interjections and laughter ]
The SpeakerThe SpeakerCareful. Careful. Careful, Honour able Member. Careful. The Chair will recognise the Whip, MP Foggo.
Ms. Lovitta F. FoggoYes, thank you, Mr. Speaker. Mr. Speaker, actually, I would like a prebirthday announcement or celebratory announcement to go out to Mr. Brownlow Place. He lives down there in Ferguson Park. I believe it is on July the 23 rd, he will turn 100. I would like to associate the …
Yes, thank you, Mr. Speaker. Mr. Speaker, actually, I would like a prebirthday announcement or celebratory announcement to go out to Mr. Brownlow Place. He lives down there in Ferguson Park. I believe it is on July the 23 rd, he will turn 100. I would like to associate the whole House. He will turn 100. And I hope Mr. Place is listening b ecause he does pay close attention to what goes on in the political arena. But h e will turn 100 on July the 23 rd, I believe it is. And I think that all of us would like to look like Mr. Place. He does not look a day over 70. He walks every morning down there at Clearwater, and so he walks about two and a half miles every morning. His temperament is always even- keeled, and he is just such a lovely, warm person. So, a pre-birthday, happy 100 years to Mr. Place. Thank you, Mr. Speaker. The Speaker: Thank you, Honourable Member. The Chair will now recognise the Honourable Member Jefferson Sousa, from constituency 28.
Mr. Jeff SousaI hope you had a television while you were overseas.
The SpeakerThe SpeakerI shut it off as soon as that goal was scored. [Laughter]
Mr. Jeff SousaAnd of course, for those in the liste ning audience who might not know which team he was referring to, that was Portugal. Thank you very much, Mr. Speaker. Mr. Speaker, I would certainly like to be ass ociated with the Premier’s comments in regards to Johnny Barnes, who many …
And of course, for those in the liste ning audience who might not know which team he was referring to, that was Portugal. Thank you very much, Mr. Speaker. Mr. Speaker, I would certainly like to be ass ociated with the Premier’s comments in regards to Johnny Barnes, who many in Bermuda and around the world referred to as Mr. Happy. I likewise knew Johnny personally. He had a good inning. We have got cric ket coming up, cricket being played in the I sland right now. So using the term “inning ” is a good innings. But Johnny lived to the ripe old age of 93, and he spent a third of that lifetime at the foot of Crow Lane, greeting the people of Bermuda. And of course, Johnny never had any children. He looked at all of us as his children. And I certainly would like to salute him. Many people who came to the Island who were expats actually thought the guy was cuckoo, crazy. But he certainly was not. He was a very r eligious man, a Christian man, a loving man, one of the most loving, caring men whom I ever knew. Many people probably did not know, but Johnny loved to garden. He had a lovely plot behind St. Paul’s grav eyard, and he also had another place just up the road in Paget. And he loved growing fruit trees, keeping goats, having his vegetable garden. And we chatted often at the Paget Post Office, where I used to have my PO Box. And he loved Bermuda and constantly was talking about Bermuda, concerned about the peo ple of Bermuda and so on. So, certainly we would like to send wishes to his wife, Belvina, who shared Johnny with us for those 30 years. Because I believe he got there at four o’clock in the morning and stayed there until ten. So that is like a six -hour period each and every day.
Bermuda House of Assembly So, in closing, John James Randolph Adolphus Mills, may you rest in peace. I love you, my brother; Bermuda loves you. Thank you, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you, Honourable Member. The Chair will recognise the Hon ourable Member, the Acting Opposition Leader today, MP R oban.
Mr. Walter H. RobanThank you very much, Mr. Speaker. I wish to be associated with the birthday greet ings given to Dr. McPhee. I have known him a long time. He is an example of a man who know s how to take care of himself, but also knows how to live well. …
Thank you very much, Mr. Speaker. I wish to be associated with the birthday greet ings given to Dr. McPhee. I have known him a long time. He is an example of a man who know s how to take care of himself, but also knows how to live well. And there are so many things I can reflect on regarding my interactions with him which showed that he was somebody whom all people should generally follow in how he does many things. And of course, he is also a gerontologist So he is somebody who sp ecialises in [the field of] ageing. So he certainly has taken whatever he studied to heart in reference to how he takes care of himself. And he is a genuine, true sort of . . . even though he was bor n in the B ahamas, he is very much Bermudian and exemplifies such great character. So I am happy to associate m yself with the birthday greetings to him. I also would like to associate and just make a few comments about the birthday greetings to Mr. Place. And I certainly hope that it is appreciated that Mr. Place comes from a very important legacy of the former Bermuda Recorder . And his family’s connection with that and that once -historic newspaper, which certainly prior to its demise was a major important player in the making of news and the reporting of what was going on in Bermuda, particularly for black Bermudians. And so, Mr. Place is a part of history hi mself. And I hope he can live many, many years, and I hope that there is an opportunity that he can share some of that legacy with others in the community if he is not already doing so. Thank you very much, Mr. Speaker.
The SpeakerThe SpeakerThank you, Honourable Member. The Chair will now recognise the Honourable Minister, the Minister for Works . Hon. Patrici a J. Gordon -Pamplin: Home Affairs.
The SpeakerThe SpeakerHome Affairs, excuse me, the Minister for Home Affairs. I miss one week, and I have forgotten who is the Minister for Home Affairs. [Laughter] Hon. Patricia J. Gordon -Pamplin: Thank you, Mr. Speaker. Mr. Speaker, notwithstanding that the whole House has asked to be associated with the condolences to …
Home Affairs, excuse me, the Minister for Home Affairs. I miss one week, and I have forgotten who is the Minister for Home Affairs.
[Laughter]
Hon. Patricia J. Gordon -Pamplin: Thank you, Mr. Speaker. Mr. Speaker, notwithstanding that the whole House has asked to be associated with the condolences to the family of Johnny Barnes, I would be r emiss if I did not stand to my feet to show my appreci ation for him as an individual. I go way back, Mr. Speaker, to t he early 1950s, mid- 1950s, at the time when Mr. Barnes actually was a bus driver. My dad had passed away, and our summer entertainment for my mom was to try to get us together as a family and take us to the beach. Well, we lived in Victoria Street, Hamilt on, and the swimming hole of choice was Pontoon’s . In order to get to Pontoon ’s you had to walk from Hamilton to Pontoon’s. And very often, Mr. Barnes would come, because my mom, and her dragging along her five children, along with our mayonnaise jar with our drink and our Stop & Shop bag with our sandwiches, to go to Pontoon’s to be able to swim. Very often, Mr. Barnes would, I guess feeling sorry for my mom trooping her five kids, would feel sorry for us and let us have a ride on the bus. He used to do the Spanish Point run. And so, many days we had the benefit of Mr. Barnes being benevolent and allowing us to get to our dest ination in a lot quicker time than we might otherwise have done, and certainly a lot less tired. And then on the return trek, he wou ld be there as well. So, you know, when people do kindnesses, and especially [for those] at a young age, they be-come indelible and you do not forget them, Mr. Speaker. So I will be eternally grateful to him. But Dr. McPhee, what is interesting here, Mr. Speaker, is that Dr. McPhee had an office right next to my family home. So as a youngster around maybe nine, ten, eleven, I would virtually spend at least two to three days a week [there], because I suffered with tonsillitis. So he was the first to whom I w ent, som etimes not so much because I felt as ill as I would have had my mom believe, but because he would prescribe for me Dequadin lozenges that were in the little or-ange tube. And they were sweet. So I have always liked candy. So it was like, Oh, my throat is really hur ting. And again, the doctors will always look after other doctors’ families without charge. So we had that benefit. So I was able to walk into his office at any time I wanted. So I hope he enjoys this wonderful celebr ation of a milestone in his life. And I want to speak also to Mr. Place. And my dad had written a poem called Friendship Road. And I remember wanting to have a copy of that poem because it was starting to become faded. And I remember going down to the Recorder and asking if he would be able to reproduce this poem, which he was able to do on some parchment paper that we still have a copy of today. So, Mr. Speaker, these are three people to whom we are giving you the condolences or congratulations at a time when each one of them has had a significant impact on my life, and I am deeply appreciative.
2482 13 July 2016 Official Hansard Report
Bermuda House of Assembly The Speaker: Thank you, Honourable Member. The Chair will now recognise the Honourable Member from constituency 6. MP Wayne Furbert, you have the floor.
Hon. Wayne L. Furbert: Thank y ou, Mr. Speaker. Mr. Speaker, I believe that this Honourable House should send congratulations to (if she is not yet, but soon to be) the new Prime Minister of our mother country, Theresa May. And I would have thought by now, I know she has now been into Number 10 Downing, at least to take a look at the furniture and see whether she needs it changed. Whether she is headed to the Queen, I am not sure. But I am sure within a short order, she will be heading in that direc-tion. So, we would like to send congratulations to her. And we will soon see exactly where her Cabinet lies. Mr. Speaker, also I would like to be assoc iated with the remarks for Dr. Stubbs —I mean—
The SpeakerThe SpeakerMcPhee. Hon. Wayne L. Furbert: McPhee. McPhee, who was my— [Inaudible interjecti ons and laughter ] Hon. Wayne L. Furbert: That was a slip. Dr. McPhee, who was my doctor for many years. And as everyone said, this gentleman does not look at all close to his age. So he …
McPhee.
Hon. Wayne L. Furbert: McPhee. McPhee, who was my—
[Inaudible interjecti ons and laughter ] Hon. Wayne L. Furbert: That was a slip. Dr. McPhee, who was my doctor for many years. And as everyone said, this gentleman does not look at all close to his age. So he has got some genes that I am sure many of us would like to have. In regards to Johnny Barnes, Mr. Speaker, I am going to give a few stories that most of us proba-bly do not know. But when I was the Chairman of the Road Safety Council, way back then, at that time they really wanted to throw Johnny Barnes off that corner. And we were asked to go and approach him and tell him that he had to leave that corner at the time. But he gathered so much steam from the people that we had to bow out of that. The other story is that, and I am not sure whether the Honourable Minister Grant Gibbons r emembers this, but when a person came to Cabinet and asked whether he could put a statue on East Broadway, the Cabinet said, No, we’re not putting a statue down there, until the brother -in-law of a Mini ster came to Cabinet, I think it was a coupl e of weeks later, telling us about the story of his niece who used to wave at Johnny Barnes in the morning. Almost every eye in Cabinet must have been having tears coming out, talking about, Yes, how many statues do you want to put down on Front Street? Th ey were cr ying because he made a very good speech, and that was the (I forget his name now), but your sister’s husband made a speech to us in Cabinet of why his pi cture should go down in Cabinet. And it was interesting that it took place. So I would like to express my condolences to [the family of] a gentleman who did bring some joy to us in the morning. And I am sure there will be an ind ividual who will try to take his place, when you can never take the place of the person who actually started the process . Thank you.
The SpeakerThe SpeakerThank you, Honourable Member. The Chair will now recognise the Honourable Member from constituency 7, the Minister . . . Minister Sylvan Richards (excuse me). Hon. Sylvan D. Richards, Jr.: Thank you, sir. Thank you, Mr. Speaker. Mr. Speaker, I also would like to be affiliated with the birthday wishes …
Thank you, Honourable Member. The Chair will now recognise the Honourable Member from constituency 7, the Minister . . . Minister Sylvan Richards (excuse me).
Hon. Sylvan D. Richards, Jr.: Thank you, sir. Thank you, Mr. Speaker. Mr. Speaker, I also would like to be affiliated with the birthday wishes for Dr. McPhee. I actually met Dr. McPhee about three years ago when I had an ap-pointment at the Brown- Darrell Clinic. And I was si tting there in the waiting room waiting for them to call me in. And this gentleman, a very distinguishedlooking gentleman, came out to me with a smile on his face and said, You’re not Sylvan Richards. I said, Yes, that is my name. He said, You are too young to be Sylvan Richards. I said, Oh, you are ta lking about my dad. So he knew my father. And we had a very, very nice conversation. He was very curious about what I was doing and what I had done with my life. And I really felt good that this gentleman who knew my father took the time out of his day to come and talk to me. So he is a wonderful gentleman, very distinguished. So I want to wish him a happy birthday. I would also like to be affiliated with the co ndolences to [the family of] Johnny Barnes. Actually, probably about a month and a half ago, the Premier, the Health Minister, and I went to visit Johnny Barnes at his home, at the request of his family. And we went there, and he was sitting in his chair, and he had a blanket over him. And he was very animated and very happy that we were there. And he was blowing kisses to us and saying, Have a good day. And we spent about an hour with him. We took a lot of pictures. And I did not realise when I left there that that would be the last time that I would actually lay eyes on Johnny Barnes. So he did a l ot for Bermuda, for Bermuda’s tourism and just making everybody feel happy on the drive in to work. So I want to be affiliated with those condolences to his family. And finally, Mr. Speaker, I would also like to congratulate the Under -20 National Football Team for Bermuda that defeated the Cayman Islands with a score of 3– 1 in Haiti on June 29 th. I actually was at the airport that night when they returned. I did not know that they were coming back on the same flight. I act ually went down to greet the Bermuda Swim Team, who had been competing very successfully abroad. So I killed two birds with one stone that night. And I noticed that one of the players, young David Jones, Jr., actually scored a goal during that 3 –1 victory. And
Bermuda House of Assembly I feel really old, because I remember when this young man was born. His dad and I used to ride motorcycles together. He comes from a very good sporting family. So I would just like to read off the names of those young men who are on the team, because I think they deserve recognition. I hope I get their names correct: Jahtino Richardson- Martin; David Jones, Jr.; Jahkari Furbert; Nathan Rego; Osagi Bas-come; Zenwai Bowen; Jahquill Hill; Detre Bell; Jaz Ratteray Smith; Cameron Neal, Diondre Dowling; Liam Evans; Tehvan Tyrell; Amar Lewis; Paul Doug-las; Tahzeiko Harris; Rai Sampson; Jahnaze Swan; and Ahria Simons. Congratulations!
The SpeakerThe SpeakerThank you, thank you, Minister. The Chair will now recognise the Minister of Health, Minister Atherden. Hon. Jeanne J. Atherden: Thank you, Mr. Spe aker. Mr. Speaker, there are just a few words that I would like to say, one with respect to Johnny Barnes. As Minister Richards said, the …
Thank you, thank you, Minister. The Chair will now recognise the Minister of Health, Minister Atherden.
Hon. Jeanne J. Atherden: Thank you, Mr. Spe aker. Mr. Speaker, there are just a few words that I would like to say, one with respect to Johnny Barnes. As Minister Richards said, the Premier and I went to see him. And it is interesting because everybody has a different reflection of Johnny Barnes. It was so nice to see him, But I went to Berkeley. And the Number 4 bus that Minister Gordon- Pamplin reminded me about was the same bus that, when you went from Berkeley to town, you had to get on that bus. And when you got on that bus, there was a certain bus driver who made sure that you sat quiet, that you did not make any noise. So my earliest reflections of Johnny Barnes were as the person who said, If you don’t sit down, he was going to put you off the bus. So when he then turned and was no longer a bus driver and was the individual who was down at the roundabout waving, it was like, Hey, he’s transformed himself from this person who was a disciplinarian into someone who was out there actually spreading the love. And so when I saw him, it was really good to be able to wish him well, and to know that his birthday, which was the 23 rd of June, if I remember correctly, that we were wishing him well in advance of that. And obviously, he achieved his birthday. And I am sad that he has not lived longer. With respect to birthdays, I also wanted to be associated with the birthday wishes to Dr. McPhee. And I do not know if many of you remember, but Dr. McPhee was the gerontologist. And for the longest while, he was the individual who was out there taking care of the seniors and making sure that he gave us advice with respect to things that were important to seniors and ageing. So I do want to say Happy Birt hday to him. He is so fortunate that he is still playing golf. I wish I was. But at night here, at that poi nt in time, if I am no longer here, I would like to think that golfing will be the next thing that I could do. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you, Minister. Would any other Members care to speak? The Chair will recognise the Honourable Member from constituency 5. MP Dennis Lister, you have the floor. Hon. Dennis P. Lister: Thank you, Mr. Speaker. Welcome back.
The SpeakerThe SpeakerThank you. Hon. Dennis P. Lister: I trust you enjoyed your time overseas from here last week.
The SpeakerThe SpeakerWell, I d o not know about enjoying it, but it was productive. Hon. Dennis P. Lister: Well, we enjoyed our time here, Mr. Speaker. How is that?
The SpeakerThe SpeakerGood. You were happy that I was not here. [Laughter] Hon. Dennis P. Lister: Well, I did not want to go there, Mr. Speaker. But we had a good day. Anyway, Mr. Speaker, I rise this morning to basically associate myself with some of the remarks that have been said …
Good. You were happy that I was not here.
[Laughter]
Hon. Dennis P. Lister: Well, I did not want to go there, Mr. Speaker. But we had a good day. Anyway, Mr. Speaker, I rise this morning to basically associate myself with some of the remarks that have been said already and mainly the remarks in reference to Johnny Barnes. Mr. Speaker, much has been said already, but I just felt it important to get on my feet and associate myself, as Mr. Barnes, as you know, Mr. Speaker, was a member of my faith, a Se venth Day Adventist. And not only will the general community miss his presence, but the church family will as w ell. And so, I would like to just be associated with the many words and remarks that have been said already. Thank you.
The SpeakerThe SpeakerThank you, Honourable Member. The Chair will now recognise the Minister for Education. Minister Wayne Scott, you have the floor. Hon. R. Wayne Scott: Thank you, Mr. Speaker. Again, I associate myself with remarks that have already been made, to Dr. McPhee, who was the doctor of my parents for …
Thank you, Honourable Member. The Chair will now recognise the Minister for Education. Minister Wayne Scott, you have the floor. Hon. R. Wayne Scott: Thank you, Mr. Speaker. Again, I associate myself with remarks that have already been made, to Dr. McPhee, who was the doctor of my parents for many years. I knew him well, a really good man. So I wish him the best. And of c ourse, with the remarks for the family of Johnny Barnes. You know, Mr. Speaker, I went to Bermuda Institute for just about all my schooling. And his wife, Belvina, taught me in grades 1 and 2, and then became the librarian. I have known the family for years. So, you know, when Johnny first started to call on the corner back then, when I was actually riding a bike, I would see him early mornings most of the time. And, you know, we always used to have a good chat and a prayer. So, just condolences to the fami ly. 2484 13 July 2016 Official Hansard Report B ermuda House of Assembly Mr. Speaker, I would like to give congratul atory remarks to High End Construction and Bruce Simons and his wife, Margo, who with Workforce D evelopment facilitated some training for some of our young men for putting down playground surfaces. And these guys just recently did the playground at Devo nshire Pre- School. And I managed to sneak out of the house last week Friday to be down there with these guys who were getting the certificates. And I would like to name these five young men: Bourbon Lambert, Adrian Simmons, Derek Burkett, Justin Ratteray, and Roger Phillippe. And, you know, Mr. Speaker, it touched my heart —and Member Leah Scott and myself went down there —just seeing these young men who are rough. And they actually not only did this surface stuff , but they actually did some work with them of interper-sonal skills and things. It was just a reminder that all of our young people, all of our people have talents. And we have got to reach them where they are. B ecause when they actually succeed and achieve any level of success, it is heart -warming. And seeing some of these young men who were just trying to keep tears from their eyes because they actually got a certificate and they are doing something just . . . we all need to double our efforts to make sure we continue to reach more and more of our young men like this. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you, thank you, Minister. The Chair will now recognise the Honourable Member, the Junior Minister, from constituency 1, Junior Minister Bascome. Hon. Kenneth (Kenny) Bascome: Good morning,
Mr. Speaker.
The SpeakerGood morning. Hon. Kenneth (Kenny) Bascome: Thank you, sir. I would like to be associated with the remarks about the Honourable Johnny Barnes. For many years, Mr. Barnes lived in the parish that I have the privilege to represent, number 1. I knew him person-ally. I know his wife. I …
Good morning. Hon. Kenneth (Kenny) Bascome: Thank you, sir. I would like to be associated with the remarks about the Honourable Johnny Barnes. For many years, Mr. Barnes lived in the parish that I have the privilege to represent, number 1. I knew him person-ally. I know his wife. I knew them quite well. And I am going to tell you, Mr. Speaker, in a little while from now, maybe in another two weeks or so, you will see that Mr. Barnes’s memory will be kept alive. Thank you, sir.
The SpeakerThe SpeakerAll right. Thank you very much, Honourable Member. Would any other Members care to speak? There are no other Members. Just a note. I would just like to say in terms of Mr. Barnes, Mr. Barnes, when he was driving the bus, I remember Mr. Barnes, in fact, for making …
All right. Thank you very much, Honourable Member. Would any other Members care to speak? There are no other Members. Just a note. I would just like to say in terms of Mr. Barnes, Mr. Barnes, when he was driving the bus, I remember Mr. Barnes, in fact, for making sure that all the Hortons were on the bus before he left Somer-set. [Laughter]
The SpeakerThe SpeakerHe made sure we got to Berkeley. He had a long wait sometimes, yes, but he was so good at waiti ng. There were three of us, and the other two were never on time. [ Laughter]
The SpeakerThe SpeakerThat concludes our congratulatory and/or obituary speeches. ANNOUNCEMENT BY THE SPEAKER HOUSE VISITOR
The SpeakerThe SpeakerThe Chair will recognise also Senator Lynne Woolridge, who is sitting in the Gallery. MATTERS OF PRIVILEGE
The SpeakerThe SpeakerThere are none. PERSONAL EXPLANATIONS
The SpeakerThe SpeakerThere are none. NOTICE OF MOTIONS FOR THE ADJOURNMENT OF THE HOUSE ON MATTERS OF URGENT PUBLIC IMPORTANCE
The SpeakerThe SpeakerThere are none. INTRODUCTION OF BILLS GOVERNMENT BILLS
The SpeakerThe SpeakerThere are none. OPPOSITION BILLS
The SpeakerThe SpeakerNo Bills. PRIVATE MEMBERS’ BILLS
The SpeakerThe SpeakerThere are none. NOTICES OF MOTIONS
The SpeakerThe SpeakerOne notice of motion. The Chair will recognise the Honourable Member from constit uency 17, MP Walton Brown.
Mr. Walton BrownThank you, Mr. Speaker. Mr. Speaker, I give notice that at the next day of meeting, I propose to move the following motion: UK'S EXIST FROM EUROPEAN UNION AND INTERESTS OF OVERSEAS TERRITORIES B ermuda House of Assembly Whereas the voters in the United Kingdom have voted to leave the …
Thank you, Mr. Speaker. Mr. Speaker, I give notice that at the next day of meeting, I propose to move the following motion: UK'S EXIST FROM EUROPEAN UNION AND INTERESTS OF OVERSEAS TERRITORIES
B ermuda House of Assembly Whereas the voters in the United Kingdom have voted to leave the European Union; and being mindful of the need for extensive exit negotiations; and where further, most United Kingdom Overseas Territories citizens were not participants in that dec ision while being affected by the outcome; be it r esolved that this Honourable House calls on the United Kingdom government to actively involve the leader-ship of the UK Overseas Territories in the exit discus-sions so that the interests of the Overseas Territories can be fully represented and advanced. Thank y ou, Mr. Speaker.
The SpeakerThe SpeakerThank you, Honourable Member. ORDERS OF THE DAY
The SpeakerThe SpeakerOrders 1, 2, 3, 4, and 5 are carried over. And it has been requested that we do Order 7 before Order 6. If there are no objections to that, we will move to Order 7 and recognise the Honourable Minister of Finance. Minister Bob Richards, you have the floor. …
Orders 1, 2, 3, 4, and 5 are carried over. And it has been requested that we do Order 7 before Order 6. If there are no objections to that, we will move to Order 7 and recognise the Honourable Minister of Finance. Minister Bob Richards, you have the floor. Hon. E. T. (Bob) Richards: Thank you, Mr. Speaker, for your indulgence in moving this up the batting or-der. Mr. Speaker, I move that the Bill entitled the Pens ion Trust Funds Amendment Act 2016 be now read a second time.
The SpeakerThe SpeakerThank you, Minister. Any objections to that? There are none, so please carry on, Minister. BILL SECOND READING PENSION TRUST FUNDS AMENDMENT ACT 2016 Hon. E. T. (Bob) Richa rds: Mr. Speaker, Honourable Members will be aware that the Pension Trust Funds Act 1966 provides for the voluntary registration of …
Thank you, Minister. Any objections to that? There are none, so please carry on, Minister. BILL SECOND READING PENSION TRUST FUNDS AMENDMENT ACT 2016 Hon. E. T. (Bob) Richa rds: Mr. Speaker, Honourable Members will be aware that the Pension Trust Funds Act 1966 provides for the voluntary registration of pension plans and for reports and documents to be submitted to the Registry General, which is respons ible for registering such plans, ensuring that the var ious regulatory requirements are satisfied and other related administrative matters. However, since the introduction of the N ational Pension Scheme (Occupational Pensions) Act 1998, the majority of plans under the 1966 Act are required to be registered under the National Pension Scheme, and leaving a handful of plans remaining under the 1966 Act. The Government is thus propos-ing to transfer the responsibilities for the administr ation of the 1966 Act from the Register General to the Pension Commission. Mr. Speaker, the Pension Commission has been established under the National Pension Scheme Act as a dedicated pension regulatory body and is currently responsible for the regulation of nearly 3,000 plans in Bermuda. In contrast, pension plans regul ation is not the primary function of the Registry Ge neral, and given the small number of plans registered under the 1966 Act, it is not feasible for the Registrar General to continue to provide for the administration of the 1966 Act. Mr. Speaker, therefore, the Registry General and Pension Commission have been con-sulted on various issues relating to the transfer of r esponsibilities and support the proposal. In addition, I am pleased to report that the costs associated with the transfer of responsibilities are not material and will not require any supplemental budgetary support. In concluding my statement, Mr. Speaker, I am desirous to acknowledge the work of the Finance Ministry team, the Attorney General’s Chambers, the Registry General, and the Pension Commission, who provided contributions to assist with the preparation of this Bill. So, Mr. Speaker, I invite Honourable Members to participate. Thank you.
The SpeakerThe SpeakerAll right. Thank you very much, Mini ster. And I understand the Member acting for the [Shadow] Minister of Finance is the Member from constituency 13, MP Diallo Rabain.
Mr. Diallo V. S. RabainThank you, Mr. Speaker, and thank you, Minister, for your brief. Mr. Speaker, I would like to say that the rest of the legislation today will go this way. But I cannot see into the future. So as far as I understand, the co nsequential amendments in there are just …
The SpeakerThe SpeakerAll right. Thank you very much, MP Rabain. Would any other Member care to speak? The Chair will now recognise the Minister again. Hon. E. T. (Bob) Richards: Thank you, Mr. Speaker. On that note, Mr. Speaker, I would like to move that the Bill be committed.
The SpeakerThe SpeakerThank you. It has been moved that the Bill be committed. Any objections to that? There are none. Can I ask MP Brown, would you take the Chair [of Committee], please? House in Committee [ Mr. Walton Brown, Chairman] 2486 13 July 2016 Official Hansard Report Bermuda House of Assembly …
The ChairmanChairmanWe are now in Committee of Supply[sic]. Honourable Member. Hon. E. T. (Bob) Richards: Committee of the whole, Mr. Chairman, not Committee of Supply. That is another debate. [Laughter]
The ChairmanChairmanHonourable Minister. Hon. E. T. (Bob) Richa rds: Mr. Chairman, I would like to move all clauses. That will be clauses 1 through 8. Clause 1 provides the citation for the Bill. Clause 2 provides that the functions of the Registrar General under the principal Act are transferred to the …
Honourable Minister. Hon. E. T. (Bob) Richa rds: Mr. Chairman, I would like to move all clauses. That will be clauses 1 through 8. Clause 1 provides the citation for the Bill. Clause 2 provides that the functions of the Registrar General under the principal Act are transferred to the Pension Commi ssion established under section 54 of the National Pension Scheme (Occupational Pensions) Act 1998. Some of these functions include receiving applications for the registration of pension trust funds, registering pension trust funds and registering amendments to pension trust funds, cancelling the registration of pension trust funds that have been wound up, and determining the form of application for registration and the form of certificate of registration of pension trust funds. Clause 3 amends section 2 of the principal Act to transfer the function of approving persons ap-pointed trustees of a registered fund from the Minister of Finance to the Pension Commission. Clause 4 amends section 3 of the principal Act to provide that an application to register a p ension fund must be accompanied by a fee of $400, which has formerly been set out under the Governments Fees Regulations 1976 and will now be paid to the Pension Commission. Clause 5 amends section 4 of the principal Act to provide that an application to register an amendment to rules or change in address in relation to a registered pension fund must be accompanied by a fee of $115, which was formerly set out under the Governments Fees Regulations 1976 and will now be paid to the Pension Commission. Claus e 6 amends section 5 of the principal Act to provide that a certificate of registration or amendment in relation to a pension fund shall be i ssued upon payment of a fee of $60, which was for-merly set out under the Governments Fees Regul ations 1976 and will now be paid to the Pension Commission. Clause 7 inserts new section 15, which pr ovides that the Minister of Finance may amend the fees set out in the Act by way of order subject to the affirmative resolution procedure. Clause 8 makes consequential amendments to replace the reference to Registrar General wherever it appears in the Act with Pension Commission and to insert the definition of “Commission,” which is defined as the Pension Commission established u nder the National Pension Scheme (Occupational Pensions) Act 1998, and to make related amendments. This clause also amends the Government Fees Reg ulations 1976, by deleting paragraphs (1), (2), and (4), which set out the fees in relation to an application for registration of a pension fund, an applicat ion for regi stration of an amendment or change in relation to a registered pension fund, and the issuance of a certif icate of registration. So those are all the clauses, Mr. Chairman.
The ChairmanChairmanThank you, Honourable Minister. Is there anyone else w ho wishes to speak to these clauses? The Chair will recognise the Honourable Member from constituency 13.
Mr. Diallo V. S. RabainThank you, Mr. Chairman. Again, we recognise that these clauses are technical in nature, and we understand why this is being done. It is looking to streamline a process by taking it from the Minister and moving it over to the Pension Commission. And we fully support these amendments.
The ChairmanChairmanThank you, Honourable Member. Does anyone else wish to speak to these clauses ? The Chair recognises the Honourable Mini ster. Hon. E. T. (Bob) Richards: Therefore, Mr. Chairman, I would like to move clauses 1 through 8 of the Bill.
The ChairmanChairmanSo moved. Is there any objection? Moved. [Gavel] Hon. E. T. (Bob) Richards: I wou ld like to move the Preamble, please.
The ChairmanChairmanThe Preamble has been moved. Any objection? None. [Gavel] Hon. E. T. (Bob) Richards: Mr. Chairman, I would like to move that the Bill be reported to the House as printed. Bermuda House of Assembly The Chairman: It has been s o moved that the Bill be reported to the …
The Preamble has been moved. Any objection? None.
[Gavel]
Hon. E. T. (Bob) Richards: Mr. Chairman, I would like to move that the Bill be reported to the House as printed.
Bermuda House of Assembly The Chairman: It has been s o moved that the Bill be reported to the House as printed. Any objection? Agreed to.
[Motion carried: The Pension Trust Funds Amendment Act 2016 was considered by a Committee of the whole House and passed without amendment.]
House resumed [Hon. K. H. Randolph Horton, Speaker, in the Chair]
REPORT OF COMMITTEE
PENSION TRUST FUNDS AMENDMENT ACT 2016
The SpeakerThe SpeakerThank you, Member. The Pension Trust Funds Amendment Act 2016 has been approved. The second reading has been approved. And we now move on to Order No. 8, which is in the name of the— [Inaudible interjection]
The SpeakerThe SpeakerOh, Order No. 6? It has been carried over?
The SpeakerThe SpeakerNo? [Inaudible interjections ]
The SpeakerThe SpeakerAll right . We move now to Order No. 6, which is the Police Amendment Act 2016, in the name of the Honourable Premier. Hon. Michael H. Dunkley: Thank you, Mr. Speaker. I move that the Bill entitled the Police Amendment Act 2016 be now read the second time. The …
All right . We move now to Order No. 6, which is the Police Amendment Act 2016, in the name of the Honourable Premier.
Hon. Michael H. Dunkley: Thank you, Mr. Speaker. I move that the Bill entitled the Police Amendment Act 2016 be now read the second time.
The Sp eaker: Thank you. Are there any objections to that? Please carry on, Premier.
BILL
SECOND READING
POLICE AMENDMENT ACT 2016 Hon. Michael H. Dunkley: Thank you, Mr. Speaker. Mr. Speaker, the Bill before this Honourable House this morning is the Poli ce Amendment Act 2016. Honourable Members will recall that when the Bill was tabled, I also introduced for the information of the House the Police (Conduct) Orders 2016 and the Police (Performance) Orders 2016. This Bill compl ements those Orders, which are made by the Governor. Mr. Speaker, in the 2015 Speech from the Throne, this Government set out the rationale behind the amendments that are proposed today. And at that time it was said, “The Police (Discipline) Orders 1975 are increasingly out -of-step wi th modern practices. There is also no effective framework to deal with long-term sickness of Police officers or a systemised process for managing the health and the welfare of those officers and ensuring that they remain fit to serve. “The Government will introduce legislation to replace the old discipline process with a modern sy stem that emphasizes performance improvement and learning, although serious cases that warrant formal proceedings will also be provided for. The new system will be more transparent and aligned with the princ iples of natural justice.” Mr. Speaker, this Bill amends the Police Act 1974, the Police Complaints Authority Act 1998, and the Public Service Commission Regulations 2001. It also makes consequential amendments to the Public Service (Delegation of Powers) Regulations 2001. In general terms, these amendments are necessary to import relevant provisions of the respective orders into law and to ensure that they are on all fours with pr ocedures established. Whilst the Orders are tabled for information only, Mr. Speaker, in an effort to inform Honourable Members, I will provide a brief overview of the work done to date in producing the Orders, as well as an indication of some of the main provisions that will now govern how the police manage conduct and discipline. Mr. Speaker, the current framework is best described as a blunt instrument, which is designed to punish the offenders who are found guilty of discipline offences, rather than addressing unsatisfactory performance and misconduct. The current system is f ocused on keeping track of sickness rather than provi ding the means to more effectively manage attendance and monitor the welfare of police officers. These challenges are not particular to Bermuda. And in 2012, the Home Office in England intr oduced comprehensive guidance to cover the stan-dards of professional behaviour for police officers, including special constables, and set out procedures for dealing with misconduct, unsatisfactory perfor mance and attendance, and for appeals in the Police Appeals Tribunal. The procedures in that guidance are designed to accord with the principles of natural justice and the basic principles of fairness. The u nderpinning legislation (regulations) ensures that those principles are administered ac cordingly. 2488 13 July 2016 Official Hansard Report
Bermuda House of Assembly The guidance is issued in England by the Secretary of State under the authority of the Police Act 1996, which allows the Secretary of State to issue guidance as to discharge of functions under regul ations in relation to, among other things, the conduct, efficiency, and effectiveness of police officers and the maintenance of discipline. The Bermuda Police Service is closely aligned with the British policing model. Indeed, much of our policies and training are very similar, including firearms, pub lic order, intelligence and tasking, forensic practices, tiered investigator standards, and the use of the service decision model. As a result, Mr. Speaker, a decision was made to examine the Home Office guidance to determine if it could be adapted for use in Bermuda. Mr. Speaker, currently infractions in relation to unsatisfactory performance or misconduct are all dealt with under the Discipline Code. Where circumstances tend to disclose offences against discipline, an investigator is appointed. At the c onclusion of the investig ation, a decision is made whether to charge the officer and [compel] him to appear at a formal hearing pr esided over by a senior police officer. If this case is proven, Mr. Speaker, the only outcomes for the officer are a range of punishments, ranging from an admonishment to dismissal. Often, the entire process is pr otracted and adversarial, and the conclusion of the case, even for minor offences, often occurs long after the original incident. Thereafter, appeals against conviction can be appealed to the Public Service Commission, where there is often the added expense of a legal counsel. Mr. Speaker, the current system does not help to improve behaviour, and the system can prove stressful for all involved. Each discipline case is viewed in isolation, and there is no mechanism for supervisors and line managers to formalise improv ement goals and supervise action plans as part of the case management in support of the officer. Additionally, Mr. Speaker, the current system of sick leave is unlimited and not directly linked to performance management, and has resulted in unsati sfactory outcomes. Sometimes, officers have embarked on long- term sick leave with very little opportunity for the Bermuda Police Service to formalise a return- to-work plan. In other cases, there has been inadequate follow -up with the officers on sick leave, which has resulted in officers’ feeling isolated, unsu pported, and perhaps undervalued. Eventually, the most severe cases are sent to the Staff Medical Board. And on occasion, officers who are unable to return to work are medically discharged and a new officer is found to replace them. Mr. Speaker, the current focus on discipline and sickness does little to build a performance culture that has its foundations on good ethical conduct, and that approach is therefore inconsistent with the current policing strategy and ethos. Ethical decision- making using the service decision model is the standard bus i-ness practice, and part of that relates to the code of conduct. And yet, the connections between the code and the old discipline and sickness arrangements are tenuous. Additionally, Mr. Speaker, one of the main strategic intents contained in the BPS policing strat-egy 2015 to 2018 is to develop transformational leadership at all levels. The old discipline and sickness arrangements take away opportunities for frontline supervisors and line managers to deal with unsatisfactory performance, misconduct, and attendance management. Mr. Speaker, research revealed that the Isle of Man recently concluded work to develop the home office based framework that was suitable for small island police service. The work was undertaken by Home Office official, Mr. Victor Marshall OBE, and was implemented in April of 2015. In December of 2015, Mr. Speaker, Mr. Victor Marshall OBE, who met with His Excellency the Governor and myself (at the time as Minister of National Security), assembling a working group and also made presentation to stak eholders, including the Bermuda Police Association, on proposals to modernise the management of police performance and misconduct arrangements. There was broad agreement that the existing system should be modernised along similar lines to reforms already implemented in England, Wales, Scotland, and the Isle of Man. Valuable feedback was gathered from all local stakeholders who assisted Mr. Marshall in drafting the proposed policy, which will underpin the proposed legislative changes to the di scipline, performance, and appeals processes, and amendments to the complaints system. Implement ation of the modernised system will be enabled through the delivery of training for all supervisory ranks within the Bermuda Police Service. Mr. Speaker, I am also pleased to advise Honourable Members that the total cost for this pr oject, including training, is $38,060. Funding for these expenses is already within the BPS budget for the Financial Year 2016/17. The BPS is not requesting any additional funding. Mr. Speaker, whilst the proposed changes are focused on reforming the dis ciplinary system and i ntroducing a performance management system, there is naturally a link to the police complaint system, which will need to be considered to ensure all arrangements interact where necessary. The new arrangements are designed to focus mor e on learning and improvement rather than blame and punishment. This will be reflected in the police complaint system. This legislation ring -fences the discussions held as part of the local resolution process to ensure that off icers will have the ability a nd confidence to openly di scuss their actions with complainants with a view to resolving the majority of complaints without the fear of disciplinary action. This will enable a greater empha-sis on resolution of complaints, allow the opportunity
Bermuda House of Assembly for mediated resolutions, and allow apologies, where appropriate, to be given at an early stage. Mr. Speaker, the proposed changes to the present disciplinary procedures, the introduction of performance management procedures, and changes to the complaint and appeals process will result in the following benefits and outcomes: • improvement in personal professional standards —at an individual and an organisational level; • increased public and police (internal) conf idence in the outcomes because they are quicker, more transparent, and focused on modifying behaviour for the future; • a proper balance between complainant and officer interests, where the rigours of policing are recognised and understood; • a simplified process more likely to be understood and supported by officers and the public; • a reduction in the human and monetary costs associated with a lengthy and adversarial process; • greater management engagement and ow nership in the process supporting the modern policing service and fostering innovation and promoting initiat ive; and finally, • promotes decision- making and responsibility at the lowest level of management, thus inhi biting the inappropriate upward referral of con-duct issues, which is certainly a major drawback for all parties . Mediation has been shown to have a beneficial impact on the i mmediate parties involved and on organis ations.
Mr. Speaker, these reforms advocated in this Bill and the concurrent Orders will modernise the arrangements for the management of misconduct and performance in the Bermuda Police Ser vice, and bring the process in line with modern employment practices. Mr. Speaker, those are my general comments, and I would like to take this opportunity to recognise the Minister, Senator Baron, who is here, and also the Secretary of National Security, Major Marc Telemaque. Thank you, sir.
ANNOUNCEMENT BY THE SPEAKER
HOUSE VISITORS
The SpeakerThe SpeakerAll right. Thank you, Honourable Pr emier. And just as you did, I just want to recognise the Minister, Senator Baron, who is in the House. The Chair will now recognise the Acting Leader of the Opposition. MP Walter Roban, you have the floor. [Police Amendment Act 2016, Second Reading …
Mr. Walter H. RobanThank you very much, Mr. Speaker. First, we would like to say that we certainly support these amendments. We support any effort to modernise, particularly aspects of the police service and structure which will contribute to greater transparency; accountability; and also, frankly, protection of the rights not only of the …
Thank you very much, Mr. Speaker. First, we would like to say that we certainly support these amendments. We support any effort to modernise, particularly aspects of the police service and structure which will contribute to greater transparency; accountability; and also, frankly, protection of the rights not only of the officers, but those who interact with them. These changes . . . I appreciate the fact that we have been given a copy of the Orders. And although only for sighting, or for us to have sort of sight of them, it was important that that be done so we can see some of the substanti ve changes that are being made to the Orders for performance and con-duct, which are going to be governing how issues that relate to the police force and their conduct and disc ipline are going to be managed. If I may, Mr. Speaker, just speak to what is in those Orders, because this Bill basically is supporting their establishment. And so, the public is not going to have much sight of them. I am not going to speak long, but yes, I do know the extreme detail that has been put into them as to process and procedure. And clearly, as the Honourable Premier has said, it is an effort to bring a clearer process of natural justice to how discipline, performance, and conduct are handled in the [police] service. And it is important, because the police service and those members’ jobs are proudly unique. They often get into circumstances and situations which per-haps do need to be appropriately scrutinised, but should be reviewed in a very detailed manner to ensure that the rights on both sides of the circumstance are prot ected. And as that is what is afforded any cit izen of the country, it should be afforded [the police] in their carrying out their duty. So I was pleased to see how much has been added to the Performance and Conduct Orders, because I do believe it is going to make that process . . . perhaps it will be more detailed and may even be more complicated for some, but certainly things like ensuring that the police can have a barrister —not only a friend, a police officer or someone else to represent them in certain matters —is good, because that is what any other citizen would be afforded in the capacity of their job rather than in a criminal or civil matter. So these are things that are important. And I do not want to understate them because this is something that the public is not going to be exposed to, really, in general, after it has gone through the process. But it is important to know that these sy stems are in place, that they are as advanced and as modern as can be, and that in the carrying out of their duties, not only will the public have an opportunity if they find a circumstance where they need to file a complaint that there is robust process involved with it, 2490 13 July 2016 Official Hansard Report
Bermuda House of Assembly but also the police, on the other side, know that there is also a clear process by which they can be assured that at least they will have adequate representation. And there is also the part where there is an appeal process to the Public Service Commission [PSC]. The only question I would ask of the Premier is, Does this process include [a situation t hat] if som ething goes to the PSC and there is not, perhaps, agreement, is there an ability to go to the courts in civil or criminal matters for the police? I know that I did not clearly see that in the Orders. Or perhaps I missed it. And if I did, then fi ne. I am sure it will be pointed out to me. But I do believe that these are appropriate changes. And I do believe they will serve the betterment of the [police] service, as well as the general public. Thank you very much, Mr. Speaker.
The SpeakerThe SpeakerAll rig ht. Thank you, Honourable Member. Would any other Members care to speak? Since there are none, then the Chair will recognise . . . the Chair would also recognise the Honourable Member from . . .oh, okay. The Chair will recognise the Premier. Hon. Micha el H. Dunkley: …
All rig ht. Thank you, Honourable Member. Would any other Members care to speak? Since there are none, then the Chair will recognise . . . the Chair would also recognise the Honourable Member from . . .oh, okay. The Chair will recognise the Premier. Hon. Micha el H. Dunkley: Thank you, Mr. Speaker. I thank the Honourable Member for the support of this. And in regards to the PSC, yes, they can take further action if they deem it appropriate. Mr. Speaker, having said that, I ask the Bill now be committed.
The S peaker: Thank you. Are there any objections to the Bill being committed? There are none. So I ask the Honourable Member from constituency 14, please take the Chair [of Committee], MP Smith.
House in Committee
[Mr. Glen Smith, Chairman]
COMMITTEE ON B ILL
POLICE AMENDMENT ACT 2016
The ChairmanChairmanHonourable Members, we are now in Committee of the whole House for further consider ation of the Bill entitled Police Amendment Act 2016 . I call on the Minister to proceed. Minister, you have the floor. Hon. Michael H. Dunkley: Thank you, Mr. Chairman. I would like to move all …
Honourable Members, we are now in Committee of the whole House for further consider ation of the Bill entitled Police Amendment Act 2016 . I call on the Minister to proceed. Minister, you have the floor.
Hon. Michael H. Dunkley: Thank you, Mr. Chairman. I would like to move all of the clauses of this short Bill that the Opposition is in agreement, clauses 1 through 8.
The ChairmanChairmanMembers of the Opposition, are you in agreement that he can move clauses 1 through 8? Thank you. Please proceed. Hon. Michael H. Dunkley: Yes, Mr. Chairman. In the clause- by-clause analysis, clause 1 is the standard citation. Clause 2 amends section 1(1) of the principal Act, thereby adding the …
Members of the Opposition, are you in agreement that he can move clauses 1 through 8? Thank you. Please proceed.
Hon. Michael H. Dunkley: Yes, Mr. Chairman. In the clause- by-clause analysis, clause 1 is the standard citation. Clause 2 amends section 1(1) of the principal Act, thereby adding the definition of a barrister. Clause 3 inserts section 27A into the principal Act to allow for legal representation, by the way of a barrister, for members of the police service, at disc iplinary and other proceedings. Clause 4 amends section 32(1)(g) of the pri ncipal Act by adding after the word “conditions” the words “conduct” and “performance,” thereby allowing Orders relevant to matters of conduct and perfor mance to be made by the way of section 32(1)(g). Clause 5 amends the Police Complaints A uthority Act 1998 by (a) adding a new section11(4) to clarify that a statement made by an officer, for the purposes of resolving any co mplaint, shall not be admissible in subsequent criminal, civil, or disciplinary proceedings save in cases where the statement consists of an admission relating to a matter that has not reached a resolution; and (b) adding a new section 20(3), thereby clari fying that after an Authority has made a recommendation by way of section 20—(i) the Police Commissioner shall not be compelled to give effect to such recommendations; and (ii) in the event that the Police Commissioner decides not to give effect to the rec ommendations, the Authority shall have the right to give effect to its own recommendations. Clause 6 amends regulation 28 of the Public Service Commission Regulations 2001 to allow a member of the Bermuda Police Service, who has r eceived a disciplinary ou tcome of dismissal or a reduction in rank, after a stage 3 meeting under the Police (Performance) Orders 2016 or any disciplinary outcome following a misconduct hearing under the Police (Conduct) Orders 2016, to have a right of appeal to the Public Service Commission. The amendments brought about by way of clause 6 also set out the grounds of appeal. Clause 7 makes consequential amendments to paragraphs 1 and 2 of the Schedule to the Public Service (Delegation of Powers) Regulations 2001. Clause 8 is the commencement provision. Thank you, Mr. Chairman.
The ChairmanChairmanDoes any member wish to speak to any of these clauses? No. Minister. Hon. Michael H. Dunkley: Thank you. With that, I will move the Schedule as well. Bermuda House of Assembly The Chairman: The Preamble and the S chedule. Hon. Michael H. Dunkley: The Preamble and the Schedule, and …
The ChairmanChairmanIt has been moved that clauses 1 through 8 be approved. Is there any objection to this motion? No objection. Agreed to. [Gavel] [Motion carried: Clause 1 through 8 and Schedule passed.] Hon. Michael H. Dunkley: [I move that] i t be reported to the House as printed.
The ChairmanChairmanIt has been moved that the Bill be reported to the House as printed. Is there any objection to this motion? No objection. Agreed to. [Gavel]
The ChairmanChairmanThe Bill will be reported to the House as printed. [Motion carried: The Police Amendment Act 2016 was considered by a Committee of the whole House and passed without amendment.] House resu med [Hon. K. H. Randolph Horton, Speaker, in the Chair] REPORT OF COMMITTEE POLICE AMENDMENT ACT 2016
The SpeakerThe SpeakerHonourable Members, the Police Amendment Act 2016, Second Reading, has been approved as printed. We move now to Order No. 8, which is t he Limited Liability Company Act 2016, in the name of the Honourable Dr. Grant Gibbons, the Minister for Economic Development. You have the floor. Dr. the …
Honourable Members, the Police Amendment Act 2016, Second Reading, has been approved as printed. We move now to Order No. 8, which is t he Limited Liability Company Act 2016, in the name of the Honourable Dr. Grant Gibbons, the Minister for Economic Development. You have the floor.
Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. I move that the Bill entitled the Limited Liability Company Act 2016 be now read the second time.
The SpeakerThe SpeakerThank you. Are there any objections? Please carry on, Minister. BILL SECOND READING LIMITED LIABILITY COMPANY ACT 2016 Dr. the Hon. E. Grant Gibbons: Thank you. Mr. Speaker, earlier this month, I introduced in this Honourable House the Limited Liability Company Act 2016. This significant piece of legislation will establish …
Thank you. Are there any objections? Please carry on, Minister. BILL
SECOND READING
LIMITED LIABILITY COMPANY ACT 2016
Dr. the Hon. E. Grant Gibbons: Thank you. Mr. Speaker, earlier this month, I introduced in this Honourable House the Limited Liability Company Act 2016. This significant piece of legislation will establish the first new corporate structure in Bermuda in over a century. As Honourable Members of this House will be aware, the Government has worked diligently to modernise our legislative framework to increase Bermuda’s competitiveness and gain advantages on other jurisdictions wherever possible. The Bill being debated today is a continuation of this effort. Mr. Speaker, this much- anticipated legislation is expected to benefit both local and international businesses in Bermuda. Currently, businesses operating under a limited liability structure in Bermuda are registered as limited partnerships or limited companies. In the case of l imited partnerships, however, pr otection from personal liability is only afforded to the limited partners. General partners are still subject to unlimited liability with respect to financial obligations arising from activities of the partnership. As such, their personal assets may be used to satisfy their business debts. To avoid exposure to liability beyond the amount invested, many business owners choose the existing limited company structure for their business activities. While this structure often work s well for i nternational businesses, limited companies may not be as attractive an option for many local businesses. The current incorporation process and ongoing compliance with the laws governing limited companies in Bermuda can be cost prohibitive for m any small business ow ners. As a result, many Bermudians perform services as sole proprietors. The Bermuda Economic Development Corporation estimates that 70 to 75 percent of the 7,000 local businesses on their register are unincorporated, in large part du e to the costs associated with registering and operating a limited company. Mr. Speaker, the new limited liability company, or LLC, offers broad flexibility and features that are appealing to both local and international business owners. LLCs can be used for most business purposes and are well -suited for ownership by a single member who is seeking the limited liability protection that sole proprietors do not enjoy. The Bermuda LLC will be a hybrid entity that includes features of both limited companies and par tnerships. Similar to both companies and partnerships that so elect, LLCs have a legal existence separate and distinct from their owners, commonly referred to as members. As is the case with shareholders in a limited company, LLC members are generally not per2492 13 July 2016 Official Hansard Report
Bermuda House of Assembly sonally liable for financial obligations of the LLC. Co nsistent with partnerships, LLCs are governed by contractual agreement amongst the members. However, any LLC member may participate in the day -to-day management and operations of the LLC without losing the liability protection offered by this structure; and there are limited statutory formalities that apply to the management and operation of an LLC. This results in lower overall costs for forming and operating an LLC as compared to a limited com pany. Mr. Speaker, as I had previously informed this Honourable House, LLCs are well known amongst US law firms as a vehicle of choice for private equity funds and asset -holding structures. In Delaware alone, there are nearly 800,000 active LLCs, with jus t over 180,000 being formed since the start of 2015. LLCs are also utilised in some offshore jurisdictions such as the Isle of Man, Anguilla and the Marshall Islands. LLCs have recently been introduced in the Cayman Islands. The popularity of LLCs is based on market demand by persons and entities seeking the same flexibility and protection offered by this corporate structure that Bermuda businesses will soon be able to enjoy. Mr. Speaker, there are few discernible risks to Bermuda in relation to introducti on of an LLC product. LLCs will be subject to the same global standards r egarding transparency and recordkeeping that other Bermuda entities currently observe. They will also be governed by local regulatory requirements in relation to their business activi ties, as appropriate. Given the prominence of LLCs in the United States and their recent introduction and ongoing use in some compet itor jurisdictions, failure to establish an LLC product in Bermuda will result in the loss of business opportunities, partic ularly, for US -based clients. This new corporate product will help position the Island to capture a larger share of the offshore private equity market, which will be beneficial to Bermuda’s economy and will help generate additional Government revenue. Based on the demonstrated preference for the features of an LLC in the funds i ndustry, this is yet another opportunity to show Bermuda’s responsiveness to market demand. A strong private equity and funds market will stimulate other areas of our economy by incr easing the demand for services in other areas such as law, accounting, compliance, investment management and administration. As such, the benefits of introducing LLCs in Bermuda will be enjoyed by local and international businesses, and clients seeking thi s very familiar and useful product in an offshore market. The Bermuda LLC is very likely to be a popular corporate product, which can help enhance Bermuda’s reputation as a premier of fshore financial centre. Mr. Speaker, this Bill is another successful product of close collaboration between the Gover nment and the private sector, and in particular the Le-gal Focus Group of the Bermuda Business Develo pment Agency. In closing, I would like to thank the members of the Legal Focus Group for their continued work to bring forth law reform proposals that assist the Go vernment in its efforts to enhance our legal framework. I would specifically like to thank the law firm of Conyers Dill & Pearman for the substantial resources they dedicated to this initiative. I wou ld also like to thank the Bermuda Monetary Authority, the Registrar of Companies and the National Anti -Money Laundering Committee for their contribution to this project. Finally, I would like to thank the team at the Attorney General’s Chambers and the Economic Development Ministry’s Business Development Unit for their tireless efforts, hard work and dedication in bringing forth this significant and historic piece of legislation. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you, Honourable Minister. The Chair will now recognise the Honourable Member who speaks for Economic Development in the Opposition, MP Jamahl Simmons, from constit uency 33. You have the floor.
Mr. Jamahl S. SimmonsThank you, and good morning, Mr. Speaker. Good morning, colleagues, and good morning to our listening audience. Mr. Speaker, our Leader has been quoted as, and is fond of, saying, To be pro- labour, you must also be pro- business. We on this side have been very glad to support …
Thank you, and good morning, Mr. Speaker. Good morning, colleagues, and good morning to our listening audience. Mr. Speaker, our Leader has been quoted as, and is fond of, saying, To be pro- labour, you must also be pro- business. We on this side have been very glad to support initiatives brought forth by this Government that w e believe will stimulate the economy and that will help generate new business. And so, we will be supporting this legislation today. It is evident that there is a demand for this product. It is evident that many of our competitors have embraced this product, and I think it is important that we not only catch this wave, but continue to stay ahead of it and our competitors as we move forward. Mr. Speaker, the great thing about this, if we are able to draw businesses and encourage people to the country to do this, is it creates opportunities for the support systems —the companies, accounting firms, private equity, legal firms —opportunities. These are opportunities we must continue to work to ensure that Bermudians are prepared to capitalise on, prepared to work in these industries and prepared to reap the benefits, as well. We also believe that this structure . . . and I do not think the Minister touched on this during his remarks, but it is an opportunity particularly for sole business owners, our plumbers, our electricians, to create an LLC to protect their personal assets from liabilities. And it is clear, because we all know the st ories of individuals who have lost everything because they did not have their protections in place. This is a more affordable option; this is a less restrictive option. And we encourage the Government to push this, not
Bermuda House of Assembly just overseas, but into our local market as well so that people are aware of the benefits, aware of the opportunity and can get on board with this. Mr. Speaker, we also [see that] it is very clear that there are those who will use this, misguided ind ividuals who will use this, to continue to bash us with the tax haven label. We have to continue our lobbying efforts in Washington, DC. We have to continue to get the word out that we are a jurisdiction that is above board, committed to transparency and legality and that we are not like the tax havens they seek to power -tar brush us with. And with those remarks, Mr. Speaker, thank you.
The SpeakerThe SpeakerThank you, Honourable Member. Would any other Honourable Members care to speak? The Chair will recognise the Honourable Member from constituency 17. MP Walton Brown, you have the floor.
Mr. Walton BrownThank you, Mr. Speaker. Mr. Speaker, I just want to lend my support to this Bill, along the lines with my honourable colleague from constituency thirty -something . . . three.
The SpeakerThe SpeakerThirty -three. You should know that by now.
Mr. Walton BrownI should know it, Mr. Speaker, but I am a flawed individual. My recall is n ot as great as that of others. [Laughter]
Mr. Walton BrownMr. Speaker, let me just say that it is important to ensure that we retain a competitive landscape so that we can attract business and grow our economy. It is important that we ensure that there are appropriate frameworks in place to facilitate bus iness incorporation. I know that this …
Mr. Speaker, let me just say that it is important to ensure that we retain a competitive landscape so that we can attract business and grow our economy. It is important that we ensure that there are appropriate frameworks in place to facilitate bus iness incorporation. I know that this framework exists in other competitor jurisdictions, and it is the ease with which an individual can incorporate an LLC that has really been one of the primary attr actions. The fee structure is also quite attractive, as well. So I think this is of great benefit. I am not sure that it provides for the comfort for individuals in terms of protection of assets, as people posit, only because the banks are not a very frien dly entity on the best of days, and they oftentimes require that individuals pledge personal assets for any type of financing, even though you have a li mited liability company. So on paper, it provides their protection. The reality in our oppressive financial landscape means that one of the real benefits of a limited liability com-pany does not automatically translate in the Bermuda context. I would like to hear a little more from the Mi nister about the constraints imposed on both the price of land by such companies, as well as the issuance of hotel licences, because from what I read in this pr oposed Bill, which, by the way, we were showered with a number of amendments on with very short notice which placed a challenge in itself . . . But if the idea is to facilitate the growth and stance of business. I would like to hear the rationale for the constraints imposed in terms of acquisition of land, as well as hotel development, given that early this year or last year we passed legislation which will grant companies the ability to purchase property. And just the other general point that I want to make, Mr. Speaker, is that here we have this massive document, this massive Bill that has no doubt taken many, many months of careful research and planning by, what I u nderstand and know to be, highly capable staff in our government. And we are doing this to benefit business development. But what I find disconcerting is just a general statement that we do so much in this legislation to grow business and to give bus iness opportunity; what we do not see is a concomitant obligation that businesses have as a result of any success they might enjoy to ensure that they pay their way fairly. We are in the business of granting so many concessions to business. Businesses, however, in my view, do not fully acknowledge that in terms of proper payment of taxes. And we are going to have a discussion on taxation at a later point, Mr. Speaker. But businesses have to pay their fair share. From a truly business standpoint, this investment of resources and the lack of capital to create this legislation should do som ething more to benefit the society as a whole. Those are my brief remarks, Mr. Speaker. It is an important Bill. It is a massive Bill. It provides for flexibility. It will encour age other people to incorporate with a modicum of protection. The barrier to entry is lowered significantly, and it is a good step forward. And the country, I hope, will benefit. I just hope that we can benefit to a fuller extent than what is currently being contemplated. Thank you, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you, Honourable Member. Are there any other Members who would care to speak? There seems to be none. So, Dr. Gibbons, you have the floor again. Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. And let me thank the two Honourable Members who spoke. I …
All right. Thank you, Honourable Member. Are there any other Members who would care to speak? There seems to be none. So, Dr. Gibbons, you have the floor again.
Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. And let me thank the two Honourable Members who spoke. I am certainly pleased by the support, and I will try and deal with a couple of the issues that were raised by them. Let me just start by saying that this is actually, in some respects, an unusual piece of legislation in 2494 13 July 2016 Official Hansard Report
Bermuda House of Assembly the business sector, because when it initially came up, it was seen primarily, as I have said in my brief, as a way to facilitate, provide another structure, which has been widely accepted in the United States and ot her jurisdictions as a business structure in terms of provi ding limited liability protection. And it was put forward primarily initially, as you would expect, to develop and encourage international business by giving another weapon in the armamentarium of things that Bermuda provides as a business jurisdiction. But there was a fair amount of discussion that this would also be very useful for local companies as well. And in fact, the Bill has been delayed somewhat in order to be able to work in the local component of this, which, as Members have touched on and cer-tainly I did in my brief, we feel will be very advant ageous to small businesses. The Honourable Member talked about plumbers and electricians; I think that certainly makes a lot of sense. I can broaden that to hairdressers, horticulturalists, any number of people who are operating small businesses. As I said in my brief, when we checked with the Bermuda Economic Development Corporation, the small business group, they estimated of the 7,000 businesses that they have on their register, only about 25 to 30 per cent are actually incorporated. That means the other 70 to 75 per cent have personal l iability in the way they are set up so that, for example, if you are a welder and you have a welding business, and you essentially set fire to the building and burn it down, if your insurance does not cover that, presuming you have some, then you personally are liable for that. With respect to setting up as a limited liability corporation, you would have essentially exposure to the amount of money you put into the business, but you would not have personal exposure to your house, other assets that you might have. At least in concept, that is the way this works. So, we think because this is a less expensive way to proceed in terms of getting that limited liability, and because it does not require some of the same (I will call them) governance procedures, like boards of directors and bylaws and things of that sort, it is less complicated, from a legal perspective, to set up. It just simply requires an agreement, which we’ll get to when we get into the Act itself. With regard to the issue the Honourable Member from constituency 17, Mr. Brown, made, with regard to banks, that is a slightly different issue. If a bank is going to lend a business money, then they are going to want some sort of a personal guarantee. That is not quite what we are talking about here. If you borrow money, then a bank or somebody who is going to lend you money usually is looking for collateral of some sort. That is a little bit different than what we are talking about here, which is liability that you may have as a business owner in terms of providing services to clients or customers. And that is the limited liability we are talking about here. Whether you are a large company or a small company or an individual provider, or even somebody borrowing money for a car or things of that sort, often-times a bank will look to have it collateralised. But I think a bank may take some additional comfort if you are a small business if you are actually set up as e ither a limited company or a limited liability company, as we are talking about here. I do not know. That is up to bankers as to how they want to provide loans. With respect to, again, small business es, we have had already some initial discussions with the Bermuda Economic Development Corporation [BEDC]. They are very enthusiastic about this partic ular product. And the Honourable Member from con-stituency 33 had suggested that we promote this, not only overseas, but also locally. We intend to do that. The BEDC has already discussed the possibility of setting up seminars for local businesses, or sole pr oviders in most cases, to give them some of the ben efits and the various features that an LLC might pro vide them. So the point is taken. That is in hand. And we look forward to having this be something, as I said, which is also very useful, a real addition to local, particularly small businesses as well. I think it is also useful to point out that the Hono urable Member did touch on the tax haven label. We are building in here, as the Honourable Member will know, having read the Bill, some of the almost identical disclosure and transparency issues that currently exist with partnerships and limited liability companies. So there should be nothing in this, apart from the fact it is a new business structure, that has any impact on our tax haven accusations that come from all kinds of sources. As I mentioned in the brief, the National Anti - Money Laundering Commit tee have also reviewed this, as well. As Honourable Members will know, we have a review coming up in 2018 with CFATA , which is replacing the IMF. So obviously, they would look at this. But this has been given a good housekeeping seal of approval by them as well. In relation to the issue of acquisition of land that the Honourable Member from constituency 17 suggested, Honourable Members, if they have read through this, will see that the same constraints and provisions and policy that apply to the existing l imited companies also apply to LLCs. So there is no difference in the application of the acquisition of land, or indeed the hotel licensed companies, as would exist with limited companies that are already in the Companies Act. In fact, quite a bit of the B ill that we are looking at is actually borrowed and modified directly from the Companies Act so that it sets out parallel arrangements and parallel requirements for limited liabi lity companies as well. I guess in regard to employers’ doing their thing bec ause we are, as it were, providing additional
Bermuda House of Assembly functionality for them here with this particular piece of legislation, one of the things that we have often said in this House is there is a direct correlation between business and employment. And so, to the degree this provides new businesses here, whether they be ex-empt or local, we feel that will have an impact on employment, as well. And in fact, it may provide, because of the liability protection here, additional risk mitigation and maybe businesses will feel that they are in a better position to hire people, as well. I do not need to get into the charitable aspects of business. I think international business here has done a very commendable job in terms of contributing to local charities, probably done a b etter job in some cases than local businesses have. But that is probably a debate for another place, as well. I will just end on this note, Mr. Speaker. And that is, the timing of this for us is important. We have been, the Honourable Member mentioned, months. We—and by that, I mean, broadly, Chambers, the Business Development Unit and the BDA [Bermuda Business Development Agency], have been working on this for about two years now. I recognise the si gnificant contribution of one of the local law firms, which put a lot of resources, time and effort into developing a first draft of this. What is interesting is that Cayman, which r ecently announced on the 8 th of July that their LLC Bill was becoming operational —that is, a week or so ago— has been working on t heirs for about five years. So I am pleased to say we moved pretty quickly here. I am saying this partially because Honourable Members may get a little frustrated. There are a number of amendments that we have to go through here. One of the reasons that we are doing this is because, as this Bill got closer to the end, we found out that a number of comments were coming back in, both from the pr ivate sector, who reviewed it, but also from the BMA [Bermuda Monetary Authority] and others. So we are going to do our best, Mr. Speaker, and I would simply ask for the indulgence and patience of Members as we work through to try and make this Bill as clean as possible. Like other legislation, I would not be surprised if at some point in the next couple of years, as people use these features and functions of the limited liability companies, we will find ourselves coming back to make additional amendments. But we tried our best to get as much functionality as we could and to be in a position where we could actually brin g the Bill into o peration once it goes through the other place and gets royal assent as well. Those who have been looking at it will note that Cayman have not brought their regulations into effect, so in fact, in a funny sort of way, we may act ually be sl ightly ahead of them once we get this Bill done and through the various upper House and Go vernment House procedures as well. Mr. Speaker, I think I have touched on most of the questions. And I will at this point ask that the Bill be committed. Thank you.
The SpeakerThe SpeakerAll right. Thank you, Dr. Gibbons. It has been moved that the Bill be committed. Any objections to that? There are none. So I will ask MP Jackson if she will please take the Chair [of Committee]. House in Committee [Ms. Susan E. Jackson, Chairman] COMMITTEE ON BILL LIMITED LIABILITY …
The ChairmanChairmanGood morning, Members. Honourable Members, we are now in Commi ttee of the whole for further consideration of the Bill entitled Limited Liability Company Act 2016. I call on the Minister in charge. You may proceed. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Madam Chairman, we have …
Good morning, Members. Honourable Members, we are now in Commi ttee of the whole for further consideration of the Bill entitled Limited Liability Company Act 2016. I call on the Minister in charge. You may proceed.
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Madam Chairman, we have a series of amendments. And I think at this point —at least I am hoping at this point —that they have been distributed. I see Honourabl e Members nodding on the other side. What I am going to propose is that we move clauses up to the clause that needs to be amended, move only that clause, do the amendments and then move on from there. So, I am going to start by moving clause 1, because th ere is an amendment in clause 2.
The ChairmanChairmanWould anyone like to speak to clause 1? Okay. It has been approved that clause 1 be approved. Is there any objection to that motion? No objection. It has been agreed to. Minister. [Motion carried: Clause 1 passed.] Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would …
The ChairmanChairmanIt has been moved that clause 2 be approved— Dr. the Hon. E. Grant Gibbons: No, no, no. Sorry. I have an amendment.
The ChairmanChairmanYou have an amendment? 2496 13 July 2016 Official Hansard Report Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: Yes. Okay?
The ChairmanChairmanAll right. AMENDMENT TO CLAUSE 2 Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Clause 2, as Honourable Members will see, is primarily definitions. And the amendment I would like to move is by deleting the definition of “ officer ,” which is on page 10 of the …
All right.
AMENDMENT TO CLAUSE 2
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Clause 2, as Honourable Members will see, is primarily definitions. And the amendment I would like to move is by deleting the definition of “ officer ,” which is on page 10 of the Bill, and substituting the following: “‘Officer’ includes any person named, designated or appointed as secretary of a limited liability company or any person empl oyed in an executive capacity by a limited liability company.” Honourable Members will note that we have taken out the word “director.” And that is really to avoid confusion with the existing limited companies who use directors as part of their governance structure. It is unusual for a director to be part of an LLC, but to the degree that actual term is used in an LLC, we feel we can cover it in the amendment I made— “any person employed in an executive capacity by a limited liability company.”
The ChairmanChairmanWould anyone like to speak to clause 2? Member, you have the floor, from constit uency 33.
Mr. Jamahl S. SimmonsThank you, Madam Chai rman. Before I get into clause 2, I forgot to mention and join the Minister in congratulating the work of the Econom ic Development Ministry’s Business Deve lopment Unit, the Legal Focus Group of Bermuda Business Development Agency, as well as the Attorney General Chambers. The …
Thank you, Madam Chai rman. Before I get into clause 2, I forgot to mention and join the Minister in congratulating the work of the Econom ic Development Ministry’s Business Deve lopment Unit, the Legal Focus Group of Bermuda Business Development Agency, as well as the Attorney General Chambers. The amendments are accepted. We find the definition in clause 2 is acceptable, and we will su pport that.
The ChairmanChairmanThank you. Would anyone else like to speak to . . . The Floor now recognises the Learned Member from constituency 36. Hon. Michael J. Scott: Thank you, Madam Chairman. I am looking at the definition section of “off icer,” and I hear d the Honourable Minister indicate that he …
Thank you. Would anyone else like to speak to . . . The Floor now recognises the Learned Member from constituency 36.
Hon. Michael J. Scott: Thank you, Madam Chairman. I am looking at the definition section of “off icer,” and I hear d the Honourable Minister indicate that he has removed “director” from the existing definition. And yet I do not see it in the definitions. So I am just a little . . . This has been changed as well? [Pause]
Hon. Michael J. Scott: Okay. All right. Thank y ou.
The ChairmanChairmanMinister, you have the floor. Dr. the Hon. E. Grant Gibbons: Yes. Thank you, Madam Chairman. So I guess clause 2, as amended, has been approved at this point? I move that clause 2, as amended, be a pproved.
The ChairmanChairmanGreat. It ha s been moved that clause 2, as amended, be approved. Is there any objection to that motion? No. Agreed to. [Motion carried: Clause 2 passed as amended.]
The ChairmanChairmanMinister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairm an. Madam Chairman, I would like to now move clauses 3 through 8. And just by way of housekeeping, rather than going through each individual clause, I am going to speak to groups of clauses …
Minister, you have the floor.
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairm an. Madam Chairman, I would like to now move clauses 3 through 8. And just by way of housekeeping, rather than going through each individual clause, I am going to speak to groups of clauses to point out the pertinent points. Otherwise, we would be here for a very long time. I see I have some sympathy on the other side. The other thing that I would like to say is, Honourable Members and I think the Opposition Shadow who speaks for this, from constituency 33, has a red- lined version. There are a number of other (what I will call) typographical points that Chambers has advised; we do not need to laboriously go through each of them. Sometimes, it is just rearranging without changing the name of it. We have essentially picked out all of what we call the signif icant or material amendments. But one or two Honourable Members may see that maybe the numbering has changed slightly or something of that sort. But we have been advised by Chambers that that is acceptable and simply will be picked up as we go forward. Oka y? But I think we have got the material ones. I just want to make sure that Honourable Mem-bers recognise that. So, going back to clauses 3 through 8, these clauses provide, as we have said, with two definitions. Also, the appointment and granting of powers to the Registrar of Companies as the officer receiver; r equirements for members of the LLC to enter into an LLC agreement which will govern the operations and management of an LLC. They will provide guidance on the provisions that may be included in the L LC agreement, as well as the enforceability of the LLC. They provide for the establishment of Bermuda law as the governing law of any LLC agreement for any LLC formed under the Act. They provide for the general requirements relating to the primary name and seco ndary name, if applicable, of an LLC.
Bermuda House of Assembly Before I take my seat, I have just been passed a note from the Chambers’ representative here. And that is, Typographical errors will be corrected by the Attorney General under section 11 of the Computerisation an d Revision of Laws Act 1989. So that is what I was referring to. We have got some not material, small changes that are through the Bill, which have been picked up in the last couple of days. Thank you, Madam Chairman.
The ChairmanChairmanThank you. Would anyon e like to speak to clauses 3 through 8? The Chair recognises the Member from constituency 33. You have the floor.
Mr. Jamahl S. SimmonsThank you, Madam Chai rman. We recognise that to err is human and to forgive is divine, but I think it is important t hat we really, as we come to Parliament, try and correct. Because we have many bits of legislation coming through that had to have this process …
Thank you, Madam Chai rman. We recognise that to err is human and to forgive is divine, but I think it is important t hat we really, as we come to Parliament, try and correct. Because we have many bits of legislation coming through that had to have this process to go through. And both sides have done it. But I think we have to work to clean it up a little bit as we go for ward. There are many, many amendments being made. And, thankfully, they are non- contentious. But I do not think we want to get in the habit of doing this at this scale, going forward. But in reference to the specific clauses, we have no objection.
The Ch airman: Thank you, Member. Does anyone else want to speak to clauses 3 through 8? Minister, you have the floor.
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I appreciate the Honourable Member’s indu lgence. We wanted to get this done before the House rose before the summer, for all the reasons we have talked about earlier. I appreciate your patience, Madam Chairman. You will need it as we get through this. I would like to move clause 9, and there is an amendment in clause 9.
The ChairmanChairmanBefore we move on to clause 9, can I just approve the clauses 3 through 8? So, it has been moved that the proposed amendments to clauses 3 through 8 . . . No, there were not any amendments. So we are just going to move the clauses. Is there …
Before we move on to clause 9, can I just approve the clauses 3 through 8? So, it has been moved that the proposed amendments to clauses 3 through 8 . . . No, there were not any amendments. So we are just going to move the clauses. Is there any objection to the motion to approve clauses 3 through 8? No objection. Agreed to.
[Motion carried: Clauses 3 through 8 passed.] The Chairman: Minister, we can now move on to clause 9.
AMENDMENT TO CLAUSE 9 Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. In clause 9, which sets out an interpretation section that really basically says that circumstances . . . It sets out details regarding local LLCs which have been drawn largely, as Honourable Members will recognise, from the Companies Act, and includes provisions such as persons and entities that are deemed to be Bermudian and circumstances in which local LLCs may carry on business in Bermuda. The clause 9 amendment that I would like to move is that clause 9(1)(e) is amended by deleting the words (and I quote) “or a local statutory LLC.” And the reason we are taking this out is because a statutory company or a statutory LLC would be, for example, a Corporation of Hamilton. So it is unlikely that a stat utory body would use an LLC structure. So this is being taken out because we do not think it is necessary.
The ChairmanChairmanThank you. Would anyone like to speak to clause 9, with the amendment? Fine. Minister, you may have the floor. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 9 as amended.
The ChairmanChairmanIt has been moved that clause 9, as amended, be approved. Is there any objection to that motion? No. Agreed to. [Motion carried: Clause 9 passed as amended.]
The ChairmanChairmanMinister, you have the floor. AMEN DMENT TO CLAUSE 10 Dr. the Hon. E. Grant Gibbons: Thank you. I would like to move clause 10. Clause 10 basically sets out the circumstances in which a local LLC may carry on business in Bermuda. And it is almost identically parallel to …
Minister, you have the floor.
AMEN DMENT TO CLAUSE 10
Dr. the Hon. E. Grant Gibbons: Thank you. I would like to move clause 10. Clause 10 basically sets out the circumstances in which a local LLC may carry on business in Bermuda. And it is almost identically parallel to what happens in t he Companies Act with respect to a local company. In terms of its ownership and that it be licensed or that it be listed on a stock exchange— very similar provision, almost identical provisions to a local company. I would like to amend clause 10 by inserti ng, after clause 10(3), the following new subsection (and I quote) “10(4) subsections (1) to (4) of section 26 shall apply with the necessary modifications to local LLCs formed under this Act.” And the reason I am making 2498 13 July 2016 Official Hansard Report
Bermuda House of Assembly this amendment is because, as we wi ll see in clause 26, we are essentially taking the identical provision from clause 26, deleting it there, and moving it to clause 10. So it is simply kind of a housekeeping arrangement. The drafters felt that this particular clause 10(4) would be more appr opriate in clause 10 than in clause 26.
The ChairmanChairmanThank you, Minister. The Chair now recognises the Member from constituency 33.
Mr. Jamahl S. SimmonsJust in reference to clause 10(3), we hope that the Minister will consider revie wing the fine structure; $100 a day may be a hit for smaller businesses. And I think we do not want to get into the business of driving people out of business who contravene thi s. …
Just in reference to clause 10(3), we hope that the Minister will consider revie wing the fine structure; $100 a day may be a hit for smaller businesses. And I think we do not want to get into the business of driving people out of business who contravene thi s. But in the future, this should be reviewed to make sure that it actually acts as more of a deterrent. Thank you, Madam Chairman.
The ChairmanChairmanThank you. Would anyone else like to speak to the clause? The Chair recognises the Member from constituency 36. Hon. Michael J. Scott: Thank you, Madam Chairman. Madam Chairman, with your indulgence and the indulgence of the Minister, we went past [clause] 9, and I do not know how we …
Thank you. Would anyone else like to speak to the clause? The Chair recognises the Member from constituency 36. Hon. Michael J. Scott: Thank you, Madam Chairman. Madam Chairman, with your indulgence and the indulgence of the Minister, we went past [clause] 9, and I do not know how we would do this, given that we seem to have approved it. But if the Minister w ould look at clauses 6 and 8, there appear to be some . . . they are slight, but they . . . so that we get it into the Hansard and into the record that those amendments actually also apply. And I will leave it to the Minister.
The ChairmanChairmanThank you. Would anyone else like to speak to the clause? Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you, Honourable Member, for that. Those are changes that are not material, which the drafting section will clean up in the course of — [Inaudi ble interjection] …
Thank you. Would anyone else like to speak to the clause? Minister, you have the floor.
Dr. the Hon. E. Grant Gibbons: Thank you, Honourable Member, for that. Those are changes that are not material, which the drafting section will clean up in the course of —
[Inaudi ble interjection]
Dr. the Hon. E. Grant Gibbons: Yes, under that section. So, we did not think anybody would have any issues with it. It is simply a consistency issue, calling a limited liability company a local LLC, for example, and making sure the numbering was correct in the prev ious one. But I appreciate the Honourable Member. He will find a few more of those as we get further along. So that was the request for indulgence, to some degree. With respect to the fine, I was not quite sure whether the Honourable Member felt that $100 was too much or too little.
[Inaudible interjection]
Dr. the Hon. E. Grant Gibbons: It is too little. I will certainly take that comment under advisement. I think what we will find is that there is probably an identical fine that occurs in the Companies Act in a similar section. So a lot of this is very parallel to what exists in the Companies Act. But I think I take the point that the Companies Act probably needs to be looked at in terms of some of the fines that are in ther e as well. So I thank the Honourable Member. Okay. I am moving now clause 10, as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 10 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion car ried: Clause 10 passed as amended.]
The ChairmanChairmanMinister, you have the floor. Dr. the Hon. E. Grant Gibbons: Right. I am now g oing to move clauses 11 through 15.
The ChairmanChairmanWould you like to speak to it, Mini ster? Dr. the Hon. E. Grant Gibbons: Very simply, these set out essentially —and again, it is adopted primarily from the Companies Act —the provisions to be complied with by a local limited liability company carrying on business in Bermuda. In terms …
Would you like to speak to it, Mini ster? Dr. the Hon. E. Grant Gibbons: Very simply, these set out essentially —and again, it is adopted primarily from the Companies Act —the provisions to be complied with by a local limited liability company carrying on business in Bermuda. In terms of the ownership provisions, the 60/40 rule, they are identical here to what they are in the Companies Act. The procedure for an application for a licence, the granting and rev ocation of licences, fees payable by a licensed local LLC, special provisions relating to hotel LLCs, again identical to those which occur in the Companies Act. And I think that takes me up through clause 15.
The ChairmanChairmanThank you, Minister. Would anyone like to speak to clauses 11 through 15? The Chair recognises the Member from constituency 17. Bermuda House of Assembly Mr. Walton Brown: Thank you, Madam Chairman. Just revering to clause 12(3), the application for a licence will be advertised in an appointed new spaper. …
Thank you, Minister. Would anyone like to speak to clauses 11 through 15? The Chair recognises the Member from constituency 17.
Bermuda House of Assembly Mr. Walton Brown: Thank you, Madam Chairman. Just revering to clause 12(3), the application for a licence will be advertised in an appointed new spaper. I just would have thought in 2016 we would be much more comfortable with using modern technology and have an official Gazette that is just available online. It may well be just a carbon copy of what is in the Companies Act. But surely we can do better, and just at some point have an amendment that says that there will be an official Gazette identified somewhere. And in this day and a ge, it should really be online and not have it in some appointed newspaper, just to facilitate ease of access to it.
The ChairmanChairmanMinister. Dr. the Hon. E. Grant Gibbons: Thank you. I take the Honourable Member’s point. He is exactly right. It does occur exactly this way in the Companies Act. And I think we need to look at the Companies Act as well. I suspect there are similar provisions with r …
Minister.
Dr. the Hon. E. Grant Gibbons: Thank you. I take the Honourable Member’s point. He is exactly right. It does occur exactly this way in the Companies Act. And I think we need to look at the Companies Act as well. I suspect there are similar provisions with r espect to licences under the Companies Act, with r espect to permit companies and 114Bs and all the rest of it. S o I think it is something that we need to have a broader look at. But at this point, we are simply trying to keep this consistent with what a limited company would do, as opposed to what a limited liability com-pany would do. I would like to move clauses 11 through 15, as printed.
The ChairmanChairmanIt has been moved that clauses 11 through 15 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 11 through 15 passed.]
The ChairmanChairmanMinister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I have got an amendment in clause 16, so I would like move clause 16.
The ChairmanChairmanOkay. You may proceed. AMENDMENT TO CLAUSE 16 Dr. the Hon. E. Grant Gibbons: Clause 16 basically sets out penalties for improper exercise of voting rights in the event that there is a breach, for example, of the 60/40 rule for a limited liability company.
The ChairmanChairmanWould anyone like to speak to clause 16, with the amendment? Dr. the Hon. E. Grant Gibbons: Sorry. Do you want me to make the amendment now? I have not moved the amendment yet.
The ChairmanChairmanYes. Let us make the amendment. Dr. the Hon. E. Grant Gibbons: Okay. Clause 16(1) is amended by deleting the words (and I quote) “the proviso to that subsection” and subst ituting the words “subsection (5) of that section.” It is simply a housekeeping clean- up change.
The ChairmanChairmanWould anyone like to speak to the clause with the amendment? The Chair recognises the Member from constituency 33.
Mr. Jamahl S. SimmonsThank you, Madam Chai rman. Just as well, not to belabour the point, but I think that it is important that we, for the record, just call on the Government . . . I think the Minister accepts the point that the fines should be reviewed going forward on a …
Thank you, Madam Chai rman. Just as well, not to belabour the point, but I think that it is important that we, for the record, just call on the Government . . . I think the Minister accepts the point that the fines should be reviewed going forward on a regular basis, just to make sure that they are not just in line with global standards, but also to make sure that it actually has impact and serves as a deterrent, that it serves as a short, sharp shock to anyone who chooses to run afoul of this legislation. Thank you.
The ChairmanChairmanWould anyone else like to speak to the clause with amendment? Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you. I take the point. I think he is referring to the fines in clause 16(3). Yes, exactly, $1,000. And I think, again, it is parallel to …
Would anyone else like to speak to the clause with amendment? Minister, you have the floor.
Dr. the Hon. E. Grant Gibbons: Thank you. I take the point. I think he is referring to the fines in clause 16(3). Yes, exactly, $1,000. And I think, again, it is parallel to the Companies Act. But I would take the point that a lot of this stuff has not been looked at for a number of years. I would like to move clause 16, as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 16 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 16 passed as amended.] AMENDMENT TO CLAUSE 17 Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move …
It has been moved that the proposed amendment to clause 16 be approved. Is there any objection to that motion? No objection. Agreed to.
[Motion carried: Clause 16 passed as amended.]
AMENDMENT TO CLAUSE 17
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 1 7. And this sets out a return of holdings for LLC interests. And it r equires the LLC to file with the Registrar the holdings of LLC interests in the local LLC. And it goes on to talk 2500 13 July 2016 Official Hansard Report
Bermuda House of Assembly about the date as to when those filings will be effective. I would like to move, again, an amendment to clause 17, which is as follows: Clause 17 is amended in subsection (1) and (2) by deleting the words “for-ward to” and substituting the words “file with.” So, delete “forward to” and substitute the words “file with.” The lang uage is simply more appropriate, from Chambers’ perspective.
The ChairmanChairmanWould anyone like to speak to clause 17? Would anyone like to speak to clause 17 with the amendment? Minister. Dr. the Hon. E. Grant Gibbons: Thank you. I would like to move clause 17 as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 17 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 17 passed as amended.]
The ChairmanChairmanMinister. Dr. the Hon . E. Grant Gibbons: Thank you. I would like to move clause 18, and I have an amendment in this one, as well.
The ChairmanChairmanYou may proceed. AMENDMENT TO CLAUSE 18 Dr. the Hon. E. Grant Gibbons: Clause 18 essentially sets out the issuance and assignment of LLC interests. And the amendment is as follows: Clause 18(7) is amended by deleting the words “the members or” in the first two instances in which they …
You may proceed.
AMENDMENT TO CLAUSE 18 Dr. the Hon. E. Grant Gibbons: Clause 18 essentially sets out the issuance and assignment of LLC interests. And the amendment is as follows: Clause 18(7) is amended by deleting the words “the members or” in the first two instances in which they appear. And the reason for this is it is felt in this particular [clause] that it is more appropri ate to have managers be involved as the ones responding, b ecause sometimes members could have conflicts with each other; whereas if you are a manager of an LLC, you actually have management responsibilities. So this is based on feedback that we are getting from the private sector that it would be more appropriate to have the word “ members ” taken out here and simply rely on the word “ managers, ” who have management responsibilities.
The ChairmanChairmanThank you, Minister. Would anyone like to speak to clause 18? Would anyone like to speak to clause 18 as amended? Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 18 as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to claus e 18 be approved. Is there any objection? No objection. Agreed to. [Motion carried: Clause 18 passed as amended.]
The ChairmanChairmanMinister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I wish to move clauses 19 through 20.
The ChairmanChairmanYou may proceed. Dr. the Hon. E. Grant Gibbons: Thank you. Basically, clause 20 sets out (again, we talked about this a little bit earlier) the acquisition of land by local LLCs. It is exactly parallel to the acquisition of land by a local company and ess entially sets out …
You may proceed.
Dr. the Hon. E. Grant Gibbons: Thank you. Basically, clause 20 sets out (again, we talked about this a little bit earlier) the acquisition of land by local LLCs. It is exactly parallel to the acquisition of land by a local company and ess entially sets out the provisions. And it requires that a local company cannot carry on any restricted business activity, such as land holding, without first obtaining ministerial con-sent, which again is consistent with what is happening in the Companies Ac t for a limited company.
The ChairmanChairmanThank you, Minister. Dr. the Hon. E. Grant Gibbons: Let us see. We have got [clause] 20. Yes, that it is.
The ChairmanChairmanYes. That is it. Would anyone like to speak to clauses 19 and 20? No? Okay. Minister, you ha ve the floor. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I move clauses 19 and 20.
The ChairmanChairmanIt has been moved that clauses 19 and 20 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 19 and 20 passed.]
The ChairmanChairmanMinister. AMENDMENT TO CLAUSE 21 Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: I would now like to move clause 21. And I have an amendment to clause 21. Clause 21 now gets us into the definition of an exempted LLC as opposed to a local LLC. And …
Minister.
AMENDMENT TO CLAUSE 21
Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: I would now like to move clause 21. And I have an amendment to clause 21. Clause 21 now gets us into the definition of an exempted LLC as opposed to a local LLC. And bas ically, it defines this new Part 3, which is Exempted LLCs. The amendment that I wish to move is deleting the words “and continued” and substituting the words “recognised as an exempted LLC.” And the reason for that is that we wanted here a little bit more of a catchall, because it is not just the formation of a limited l iability company, but it could be a limited liability com-pany which has been converted from a limited company or is a surviving entity or has continued into the jurisdict ion. It is sort of a catch- all for a variety of ways in which an exempt LLC can be formed. So this is a little bit more of an umbrella, as opposed to setting out all of the different categories which may involve the formation of an LLC, both from conversi ons, mergers, amalgamations, continuing into the jurisdiction, which are all provided for in the legi slation.
The ChairmanChairmanWould anyone like to speak to clause 21? Clause 21 as amended? Would anyone like to speak to the clause? All right. Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you. I now would like to move clauses 22 and 23.
The ChairmanChairmanJust before we move on, let me just, for formality, it is has been moved that the proposed amendment to clause 21, with amendment, be ap-proved. Is there any objection? No objection. Agreed to. [Motion carried: Clause 21 passed as amended.]
The ChairmanChairmanMinister, you may proceed. Dr. the Hon. E. Grant Gibbons: Thank you. Clauses 22 and 23 are again dealing with exempt LLCs. Clause 22 provides that an LLC that is exempt can have the same protections under the E xempted Undertakings Tax Protection Act. And clause 23 allows the LLC …
Minister, you may proceed.
Dr. the Hon. E. Grant Gibbons: Thank you. Clauses 22 and 23 are again dealing with exempt LLCs. Clause 22 provides that an LLC that is exempt can have the same protections under the E xempted Undertakings Tax Protection Act. And clause 23 allows the LLC interest to be denominated in any currency as the LLC thinks expedient.
The ChairmanChairmanWould anyone like to speak to clauses 22 and 23? Minister . . . The Chair recognises the Learned Member from constituency 36. Hon. Michael J. Scott: Thank you. I am going to test the Minister’s being au fait with the Companies Act, as I should be. But is that …
Would anyone like to speak to clauses 22 and 23? Minister . . . The Chair recognises the Learned Member from constituency 36. Hon. Michael J. Scott: Thank you. I am going to test the Minister’s being au fait with the Companies Act, as I should be. But is that exactly the wa y the denomination of currency —same as the Companies Act? Okay. Thanks.
The ChairmanChairmanThank you. Would anyone else like to speak to clause 22 or 23? Minister. Dr. the Hon. E. Grant Gibbons: I move clauses 22 and 23.
The ChairmanChairmanIt has been moved that clauses 22 and 23 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 22 and 23 passed.]
The ChairmanChairmanMinister. AMENDMENT TO CLAUSE 24 Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would now like to move clause 24. And clause 24 sets out restrictions for an exempt LLC to be carrying on business. And it sets out a number of provisos there, which again are …
Minister.
AMENDMENT TO CLAUSE 24
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would now like to move clause 24. And clause 24 sets out restrictions for an exempt LLC to be carrying on business. And it sets out a number of provisos there, which again are very similar to the provisos in the Companies Act for an exempt co mpany. I have an amendment for clause 24. And that is, by inserting after clause 24(8) the following new sub - clause, and it is going to be clause 24(9). And I quote: “The provision of section 20 shall apply with the necessary modifications to exempted LLCs formed under this Act.” And what that does is it makes an exempt LLC subject to the same conditions for landholding as an exempted company would be under the policies that exist with respect to landholding in the Compa-nies Act.
The ChairmanChairmanOkay. Would anyone like to speak to clause 24, with amendment? Anyone? Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 24, as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 24 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 24 passed as amended.]
The ChairmanChairmanMinister. 2502 13 July 2016 Official Hansard Report Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: Thank you. I would like to move clause 25. Clause 25 basically sets out the circumstances und er which an exempted LLC may carry on business in Bermuda, the same kinds of …
Minister. 2502 13 July 2016 Official Hansard Report
Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: Thank you. I would like to move clause 25. Clause 25 basically sets out the circumstances und er which an exempted LLC may carry on business in Bermuda, the same kinds of provisions that allow an exempted company to carry on business in Bermuda. And it sets out the same conditions and issues the Minister needs to consider in licensing. It would be parallel to the 114B considerations for the Companies Act for an exempt company. The same considerations are applied to an LLC as are required to an exempted company that wants to carry on bus iness in Bermuda. And it covers the same conditions that, looking at the economic situation, advantages or disadvantages may result from the exempted LLC carrying on business in Bermuda, and provides that the Mini ster may revoke this particular licence, which would be equivalent to a 114B licence, if the exempted company does not follow the conditions or it is dissolved or other provisos, basically.
The ChairmanChairmanWould anyone like to speak to clause 25? Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 25.
The ChairmanChairmanYes. It has been moved that clause 25 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 25 passed.]
The ChairmanChairmanMinister. AMENDMENT TO CLAUSE 26 Dr. the Hon. E. Grant Gibbons: Thank you. I woul d like to move clause 26. Clause 26 sets out provisos in relation to the registered office and the requirement as it is with limited companies for ex-empted LLCs to have a resident representative, unless …
Minister.
AMENDMENT TO CLAUSE 26
Dr. the Hon. E. Grant Gibbons: Thank you. I woul d like to move clause 26. Clause 26 sets out provisos in relation to the registered office and the requirement as it is with limited companies for ex-empted LLCs to have a resident representative, unless they are covered by a Licensed Corporate Service Prov ider. I have an amendment to clause 26, which is simply to delete sub- clause (11). You will recall that this was a sub- clause we moved to the clause earlier on.
The ChairmanChairmanThank you. Would anyone like to speak to clause 26? Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I move that clause 26, as amended, be approved.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 26 be approved. Is there any objection? No objection. It has been agreed to. [Motion car ried: Clause 26 passed as amended.] AMENDMENT TO CLAUSE 27 Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to …
It has been moved that the proposed amendment to clause 26 be approved. Is there any objection? No objection. It has been agreed to.
[Motion car ried: Clause 26 passed as amended.]
AMENDMENT TO CLAUSE 27
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 27. Clause 27 basically sets out, again in parallel with the Companies Act, the ability for the affairs of exempted LLC to be inspected and for the Minister to set up an inspector and an examination. The amend-ment that I would like to make to clause 27 is in 27(4). And it is amended by inserting after the word “any” in clause 27(4) the word “member.” So we are simply inserting the word “member” in clause 27(4). It was a typo. It was left out in error.
The ChairmanChairmanUnderstood. Would anyone like to speak to clause 27, with the amendment? Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 27, as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 27 be approved. Is there any objection to that motion? No objection. It has been agreed to. [Motion carried: Clause 27 passed as amended.] Dr. the Hon. E. Grant Gibbons: My inclination is this is not a bad time to …
It has been moved that the proposed amendment to clause 27 be approved. Is there any objection to that motion? No objection. It has been agreed to.
[Motion carried: Clause 27 passed as amended.]
Dr. the Hon. E. Grant Gibbons: My inclination is this is not a bad time to take a break. I can see eyes gla zing over here, and I think we all need some lunch.
The ChairmanChairmanGreat. We are going to adjourn for lunch, and we will return at 2:00 pm. [Gavel] Proceedings suspended at 12:28 pm Proceedings resumed at 2:02 pm [Mrs. Susan E. Jackson, Chairman] Bermuda House of Assembly COMMITTEE ON BILL LIMITED LIABILITY COMPANY ACT 2016 [Continuation thereof ]
The ChairmanChairmanWe resume in Committee and we are debating the Bill entitled Limited Liability Company Act 2016. We are about to resume with clause 28. Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Madam Chairman, I would like to move clauses 28 through 52. …
We resume in Committee and we are debating the Bill entitled Limited Liability Company Act 2016. We are about to resume with clause 28. Minister, you have the floor.
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Madam Chairman, I would like to move clauses 28 through 52. There are no amendments in this set of clauses, so clauses 28 through 52.
The ChairmanChairmanWould you like to speak to them? Dr. the Hon. E. Grant Gibbons: I would, yes, thank you.
The ChairmanChairmanPlease proceed. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Clause 28 involv es the preservation of books and assets of the exempted LLC. Clause 29 begins Part 4 of the Act which sets forth specific requirements for forming and registering an LLC. The framework is intended to …
Please proceed.
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Clause 28 involv es the preservation of books and assets of the exempted LLC. Clause 29 begins Part 4 of the Act which sets forth specific requirements for forming and registering an LLC. The framework is intended to largely be con-sistent with the requirements of the Companies Act. Clauses 29 through 31 set forth the proc edural requirements for forming an LLC in Bermuda as well as establishing that an LLC formed under the Act is an entity, firstly, with separate legal personality and, secondly , which has the capacity, rig hts, privileges and power of a natural person subject to any limit ations described in the LLC agreement. Clauses 32 through 35 generally describe procedures and requirements for amendment and cancellation of certificates of formation and execution of cert ificates and other documents related to an LLC. Clauses 36 through 39 provide details on the filing with the Registrar of various certificates, such as certificates of correction, merger , and continuance by LLCs , and sets forth the effective date of the s aid filings. Part 5, which begins with clause 40, contains provisions related to the contribution of cash, properties, services , and promissory notes to an LLC by its members , and rules regarding allocation of profits, losses , and distribution to members. Clause 41 describes the members’ liability for contributions to an LLC and sets forth potential rem edies and consequences that may apply when a mem-ber fails to contribute the promised assets or services. Clauses 42 and 43 provide the allocation of profits, losses, and distributions shall be made in ac-cordance with the LLC agreement. If the LLC agre ement is silent, then such allocations shall be made on the basis of the agreed value as stated in the records of the LLC. Clause 44 restricts certain defences in relation to obligations of a member or manager of an LLC. Part 6, which begins with clause 45, is i ntended to set forth rules governing rights and responsibilities of members of the LLC. Part 6 establishes limitations on any personal liability of mem bers in rel ation to debts, obligations, and other liabilities of the LLC absent any express agreement by a member to be personally liable for such debts and obligations and liabilities. This limitational liability is a fundamental characteristic of a limit ed liability company and is consistent with the limitations of liability for shareholders of any company governed by the Companies Act. Clauses 45 through 47 provide general guidelines concerning the admission of members into an LLC, classes of membership, and rights of members, including voting rights. In particular, clause 45 r equires the prior consent of the BMA in a case where an issuance or transfer of an LLC interest would result in certain shifts in voting rights, except that the consent of the BMA is not required where the LLC has its register office at the register office of a licensed corporate service provider. Clause 48 provides guidance regarding the liability of an LLC and its members to third parties. This clause places a general restriction on the personal liability of LLC members in relation to debts, obligations , and liabilities of the LLC. Clause 49 details the impact of any bankruptcy filings by an LLC member on his or her me mbership status. Clause 50 and the next couple of clauses, (and I am going to stop at [clause] 52), set forth the general guidance pertaining to the financial record keeping. And at this point I will take my seat. Thank you.
The ChairmanChairmanThank you, Minister. Would anyone like to speak to clauses 28 through 52? The Chair recognises the Member from constituency 33.
The ChairmanChairmanThank you. Does a nyone else care to speak to the clauses? Minister, you may proceed. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. So I move clauses 28 through 52. 2504 13 July 2016 Official Hansard Report Bermuda House of Assembly The Chairman: It has been moved …
Thank you. Does a nyone else care to speak to the clauses? Minister, you may proceed.
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. So I move clauses 28 through 52.
2504 13 July 2016 Official Hansard Report
Bermuda House of Assembly The Chairman: It has been moved that clauses 28 through 52 be approved. Is there any objection to the motion? No objection. Agreed to.
[Motion carried: Clauses 28 through 52 passed.]
The ChairmanChairmanYou may proceed. AMENDMENT TO CLAUSE 53 Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 53 for which I have an amendment. And basically clause 53 pr ovides access to confidentiality and inform ation r ecords. The amendment in clause 53 is …
You may proceed.
AMENDMENT TO CLAUSE 53 Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 53 for which I have an amendment. And basically clause 53 pr ovides access to confidentiality and inform ation r ecords. The amendment in clause 53 is basically tw ofold. In essence in subsection (7) by deleting the words “Any action to enforce any right arising under this section shall be brought in the Court.” And then go to delete subsection (8) and replace it with the following —effectively subsection (8) is being reformatted, but rather than try and do it we are just going to delete the existing one and put in the reformatted section—so subsection (8) reads: “The Court” —and I am amending—“The Court is hereby vested with exclusive jurisdiction to (a) de-termine whether or not the person seeking such i nformation in entitled to the information sought; and (b) may summarily order the limited liability company: (i) to permit the demanding member to obtain or man-ager or resident representative to examine the information described in subsection (1) and to make copies or abstracts therefrom; or (ii) to furnish to the demanding member, manager or resident representative the information described in subsection (1) on t he condition that the demanding member, manager or resident representative first pay to the limited liability company the reasonable cost of obtaining and furnis hing such information and on such other conditions as the Court may deem appropriate.” And th en finally by inserting after subsection (12) the following subsection (13), which reads: “Any action to enforce any right arising under this section shall be brought in the Court.” And that really is just moving the deleted subsection (7) words and moving them to subsection (13).
The ChairmanChairmanVery good. Would anyone like to speak to clause 53? Would you like to speak to the amendment to clause 53? Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I move that cla use 53 as amended be a pproved.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 53 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 53 passed as amended.]
The ChairmanChairmanMinister ? Dr. the Hon. E. Grant Gibbons: Thank you, the next amendment is going to be in clause 69, so I will move clauses 54 through 68.
The ChairmanChairmanYou may proceed. Dr. the Hon. E. Grant Gibbons: Thank you. Let me see, we did [clause] 53, so [clause] 54 starts with remedies for breach of the LLC agreement by members. [Clause] 55 sets out the register of members. [Clause] 56 allows inspection of the register of members. [Clause] …
You may proceed.
Dr. the Hon. E. Grant Gibbons: Thank you. Let me see, we did [clause] 53, so [clause] 54 starts with remedies for breach of the LLC agreement by members. [Clause] 55 sets out the register of members. [Clause] 56 allows inspection of the register of members. [Clause] 57 allows the power of the Court to rectify the register of members. Let us see, [clause] 56 allows inspection of the register of members. [Clause] 57 . . . I am sorry, I am repeating m yself here. So that brings us up to essentially [clause] 58 and this is Part 7 of the Act, which pr ovides guidelines regarding the management of an LLC. This includes guidance as to the admission and resignation of managers, capital contributions by a manager in his or her capacity as a member, voting rights, remedies for breach of the LLC agreement by a manager , and other rights of the manager in r elation to management of the LLC. In addition, Part 7 pr ovides that a member or a manager of an LLC may delegate powers to manage the LLC and control of its business affairs unless otherwise provided in the LLC agreement. Let us see, that brings us up to Part 8 and that is clauses 66 through 73. I am going to go up to [clause] 68. Part 8 sets forth guidelines on permitted bus iness activities and rules regarding restricted and pr ohibited business activities of LLCs. These guidelines are consistent with the approach taken in the Companies Act. Additionally, Part 8 generally provides for an LLC’s contracting authority guidelines regarding bus iness transactions between an LLC and a member , and procedures for contesting certain matters invol ving the selection of the manager or managers of an LLC. Let us see, I think that is everything up to [clause] 69 . . . just bear with me a brief second. Yes,
Bermuda House of Assembly a couple more clauses there which [deal with] the powers and nature of the business permitted under [clause] 66. And [clause] 67 sets out restricted business much as it does in the Companies Act. And [clause] 68 sets out prohibited business, again, in parallel with the Companies Act. I will stop there. Thank you, Madam Chai rman.
The ChairmanChairmanThank you, Minister. Woul d anyone like to speak to . . . the Chair recognises the Member from constituency 33.
Mr. Jamahl S. SimmonsThank you and good afternoon, Madam Chairman. Just for the benefit of the listening audience and for people who just tuned in, I would just like to draw attention to clause 56(4) —I am sorry —(3). Just for the benefit of the audience, again, not to belabour the point, it …
Thank you and good afternoon, Madam Chairman. Just for the benefit of the listening audience and for people who just tuned in, I would just like to draw attention to clause 56(4) —I am sorry —(3). Just for the benefit of the audience, again, not to belabour the point, it is obvious that we need to look at the Companies Act and look at the fines that we are lev ying for these offences. They are outdated, outmoded, and certainly are no deterrent. And that is the last time I will raise this during this debate, but I just thought it was important for people who may have just tuned in to get that point. Thank you, Madam Chairman.
The ChairmanChairmanThank you, Member. Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I appreciate the Honourable Member’s co mment and, as I said earlier, we will take that on board and start to have a look at some of the fines under the Companies Act which are p …
Thank you, Member. Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I appreciate the Honourable Member’s co mment and, as I said earlier, we will take that on board and start to have a look at some of the fines under the Companies Act which are p aralleled in this LLC Bill as well. All right. I guess I am moving clauses 54 through 68.
The ChairmanChairmanIt has been moved that clauses 54 through 68 be approved. Is there any objection to the motion? No objection. Agreed to. [Motion carried: Clauses 54 through 68 passed.]
The ChairmanChairmanMinister, you have the floor. AMENDMENT TO CLAUSE 69 Dr. the Hon. E. Grant Gibbons: Thank you. I have got an amendment in [clause] 69, so I will move clause 69 which sets out the form of contracts, very much parallel to a section in the Companies Act as well. …
Minister, you have the floor.
AMENDMENT TO CLAUSE 69
Dr. the Hon. E. Grant Gibbons: Thank you. I have got an amendment in [clause] 69, so I will move clause 69 which sets out the form of contracts, very much parallel to a section in the Companies Act as well. The amendment that I would like to make is in [clause] 69(1) by inserting after the words “two or more” , wherever they appear , the word “private.” And it looks like there are at least three places where that occurs. And the reason for that is the word “private” is used in the Companies Act as well (we want to be consistent with that) and I am informed that there is also jurisprudence which revolves around the use of the word “private” as well, so we want to be consistent with that as well.
The ChairmanChairmanWould anyone like to speak to the clause . . . the clause with the amendment? All right then, Minister. Dr. the Hon. E. Grant Gibbons: Thanks, Madam Chairman. I move that clause 69, as amended, be approved.
The ChairmanChairmanIt has been moved that clause 69 be approved. Is there any objection to that motion? Dr. the Hon. E. Grant Gibbons: As amended.
The ChairmanChairmanAs amended? Agreed to. [Motion carried: Clause 69 passed as amended.] Dr. the Hon. E. Grant Gibb ons: Thank you. I would now like to move clauses 70 through 86, because the next amendment is going to be in clause 87. So I move clauses 70 through 86. We started …
As amended? Agreed to.
[Motion carried: Clause 69 passed as amended.]
Dr. the Hon. E. Grant Gibb ons: Thank you. I would now like to move clauses 70 through 86, because the next amendment is going to be in clause 87. So I move clauses 70 through 86. We started to talk about Part 8 and basically these are guidelines in permitted business activities. It also provides for an LLC’s contracting authority, guide lines regarding business transactions between an LLC and a member, and procedures for contesting certain matters involving the selection of the manager or managers of an LLC. I am going up to . . . sorry, it was up to [clause] 86, thanks, that is right. So this takes us up to Part 9, which is entitled “Distributions and Resignation.” Further to the prov isions regarding distributions in Part 5, Part 9 sets forth additional guidelines relating to dis tributions of LLC property and resignations by a manager or member of an LLC. Claus es 75 and 76 respectively provide for circumstances under which a manager or a member of an LLC may resign, which shall generally be in accordance with the provisions of the LLC agreement. Clauses 77 through 79 contain guidelines r egarding the rights of members to receive distributions, including distributions upon resignation and distrib utions of property in kind. 2506 13 July 2016 Official Hansard Report
Bermuda House of Assembly Clause 80 provides for limitations on distributions to LLC members, including specific restrictions on and consequences resulting from distributions that cause an LLC to become insolvent. That brings us up to Part 10 which is clauses 81 through 85. Part 10 will govern the assignment of an LLC interest by any mem ber. This part provides guidelines as to the impact of any assignment of an LLC interest in whole or in part, including the assignees subsequent ability to become a member. The i mpact of any judgment debt of a member which has resulted in a charging order will also be covered under this part. Clause 82 provides that the assignment of an LLC interest does not result in the assignee becoming a member or the assignee being able to exercise the rights and powers of a member of a LLC unless ot herwise provided i n the LLC agreement. The assignment may provide the assignee rights to receive di stributions and allocations of profits and losses. Purs uant to the Companies Act, requirements for the iss uance of shares, clause 82 specifically restricts any issuance of cer tificates of LLC interest in bearer form. Clauses 83 to 85 provide rules regarding a member’s LLC interests when subject to a charging order, guidelines as to when an assignee may b ecome a member of an LLC, and details regarding the powers of the estate of a deceased member or an incompetent member. And clause 86, which starts Part 11, refers to amalgamation and merger of an LLC. I will stop there, Madam Chairman.
The ChairmanChairmanWould anyone like to speak to clauses 70 through 86? Minister, you may proceed. Dr. the Hon. E. Grant Gibbons: Thank you. I have an amendment in clause 87—
The ChairmanChairmanLet us just pass those clauses very quickly then. Dr. the Hon. E. Grant Gibbons: Yes.
The ChairmanChairmanIt has been moved that clauses 70 through 86 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 70 through 86 passed.]
The ChairmanChairmanMinister, you may proceed. AMENDMENT TO CLAUSE 87 Dr. the Hon. E. Grant Gibbons: Thank you. That brings us up to clause 87 and I would like to move clause 87. And I have an amendment. Clause 87, again, refers to amalgamation or merger of limited liability companies and foreign …
Minister, you may proceed.
AMENDMENT TO CLAUSE 87
Dr. the Hon. E. Grant Gibbons: Thank you. That brings us up to clause 87 and I would like to move clause 87. And I have an amendment. Clause 87, again, refers to amalgamation or merger of limited liability companies and foreign ent ities and continuation as a limited liability company. So we are converting from an LLC into a regular . . . sorry, and continuation with a foreign entity into a li mited liability company. So in clause 87(1)[(b)] I would like to delete it and substitute the following: “(b) merge and the sur-viving LLC continue as a limited liability company in Bermu da.” And it is simply being reworded to be consistent with the Companies Act.
The ChairmanChairmanThank you. Would anyone like to speak to clause 87, as amended? Minister. Dr. the Hon. E. Grant Gibbons: Thank you. I move [clause] 87 as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 87 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 87 passed as amended.]
The ChairmanChairmanMinister, you may proceed. Dr. the Hon. E. Grant G ibbons: Yes, thank you. I would now like to move clauses 88 through 96. And clause 88 provides that an LLC may amalgamate or merger and continue outside of Bermuda as a foreign entity to be governed under the laws …
Minister, you may proceed.
Dr. the Hon. E. Grant G ibbons: Yes, thank you. I would now like to move clauses 88 through 96. And clause 88 provides that an LLC may amalgamate or merger and continue outside of Bermuda as a foreign entity to be governed under the laws of such foreign jurisdiction. Clauses 89 through 92 contain procedural rules for effectuating the amalgamation or merger of an LLC including the following requirements: the r equirement for an amalgamation or merger agreement and approval by the LLC members unless otherwise provided for in the LLC agreement. Clause 93 provides for a short form amalgamation or merger between parent and subsidiary LLCs similar to the Companies Act provision for such transactions. Clauses 94 and 95 contain additional proc edural rules regarding a restriction . . . I am sorry, contain additional procedural rules regarding the registr ation of the amalgamated or merged entity and the effect of the certificate of amalgamation or merger.
The ChairmanChairmanThank you, Minister. Would anyone like to speak to the clauses 88 through 96? No. Minister? Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I have a series of amendments now.
The ChairmanChairmanWe are just going to— Dr. the Hon. E. Grant Gibbons: I would like move clauses 90 —
The ChairmanChairman—Minister, if you do no t mind, just for the . . . I am sorry. Let us just approve those — Dr. the Hon. E. Grant Gibbons: I move those clauses be approved as printed.
The ChairmanChairmanGreat. It has been moved that clauses 88 through 96 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 88 through 96 passed.]
The ChairmanChairmanMinister, you have the floor. AMENDMENT TO CLAUSE 97 Dr. the Hon. E. Grant Gibbons: Thank you. Madam Chairman, I move clause 97. Clause 97 deals with the discontinuance of an exempted LLC to a foreign jurisdiction and I have an amendment here under clause 97(2)(a)(i) and I am amending …
Minister, you have the floor.
AMENDMENT TO CLAUSE 97
Dr. the Hon. E. Grant Gibbons: Thank you. Madam Chairman, I move clause 97. Clause 97 deals with the discontinuance of an exempted LLC to a foreign jurisdiction and I have an amendment here under clause 97(2)(a)(i) and I am amending it by deleting the words “approving this discontinuance” because it is simply redundant.
The ChairmanChairmanWould anyone like to speak to clause 97, the amendment to the clause? Minister. Dr. the Hon. E. Grant Gibbons: Thank you. I move that clause 97 be approved as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 97 be approved. Is there any objection to the motion? No objection. Agreed to. [Motion carried: Clause 97 passed as amended.]
The ChairmanChairmanMinister, continue. Dr. the Hon. E. Grant Gibbons: Thank you. I would like to move clauses 98 and 99 and there are no amendments in these secti ons. Clauses 98 and 99 simply set forth procedural filing and documentation requirements for discontin uance of an LLC to a foreign jurisdiction.
The ChairmanChairmanWould anyone like to speak to clauses 98 and 99? Minister, would you like to move those clauses? Dr. the Hon. E. Grant Gibbons: Yes, I would like to move clauses 98 and 99.
The ChairmanChairmanIt has been moved that clauses 98 and 99 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 98 and 99 pass ed.] AMENDMENT TO CLAUSE 100 Dr. the Hon. E. Grant Gibbons: Thank you. I have an amendment in the next clause …
It has been moved that clauses 98 and 99 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 98 and 99 pass ed.]
AMENDMENT TO CLAUSE 100
Dr. the Hon. E. Grant Gibbons: Thank you. I have an amendment in the next clause 100, so I would like to move clause 100 which sets out the provisions for the conversion of a limited liability company to a limited company. Clause 100 provides for the structural conversions from an LLC to a company and . . . yes. And the amendment I would like to move is as follows: In subsection (2)(e) by deleting the words “member” and substituting the word “manager”; in subsection (4) by deleting the word “notice” and substituting the word “certificate”; in subsection (10) by deleting the words “of the limited liability company to a company” and substituting the words “issued by the Registrar.” Again, these are pretty much housekeeping rules and they are consistent with some of the amendments we have made before. Thank you.
The ChairmanChairmanThe Chair now recognises the Member from constituency 33.
Mr. Jamahl S. SimmonsThank you, Madam Chairman. Just to reinforce [the point] that was made by my honourable colleague from constituency 17, as we look at [clause 100(2)(c)(ii)] the reference is to advertise “in an appointed newspaper and in a national newspaper.” I think that we need to investigate the widening of this, …
Thank you, Madam Chairman. Just to reinforce [the point] that was made by my honourable colleague from constituency 17, as we look at [clause 100(2)(c)(ii)] the reference is to advertise “in an appointed newspaper and in a national newspaper.” I think that we need to investigate the widening of this, not just in this, but in the Companies Act, to reflect the 21st century in that there are many other outlets [from] which to get the information that should be considered. Thank you, Madam Chairman.
The ChairmanChairmanThank you, Minister? 2508 13 July 2016 Official Hansard Report Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: Thank you. I appreciate the Honourable Member’s co mments. I did not say it earlier, but in point of fact the Registrar of Companies is actually now working on a …
Thank you, Minister? 2508 13 July 2016 Official Hansard Report
Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: Thank you. I appreciate the Honourable Member’s co mments. I did not say it earlier, but in point of fact the Registrar of Companies is actually now working on a new electronic system which will allow online filing, online registration, and a lot of the issues that w ill bring us into the 21 st century. There is some provision for that now, but a new system, new platform, will . . . is currently under investigation, if I can put it that way. So hopefully that will address many of the issues that not only the Honourable Member from [constit uency] 33 raised, but also the Honourable and Learned Member Michael Scott raised earlier as well. Thank you. I would like to move clause 100 as amended and ask that it be approved.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 100 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 100 passed as amended.]
The ChairmanChairmanMinister, please continue. AMENDMENT TO CLAUSE 101 Dr. the Hon. E. Grant Gibbons: I am going to move clause 101 and I have an amendment in that clause as well and this continues the issue of conversion of a company to an LLC. And there are consequential amendments to the …
Minister, please continue.
AMENDMENT TO CLAUSE 101
Dr. the Hon. E. Grant Gibbons: I am going to move clause 101 and I have an amendment in that clause as well and this continues the issue of conversion of a company to an LLC. And there are consequential amendments to the Companies Act that are also i ncluded later in the Bill as well. In clause 101 I would like to amend subsection (2)(c) by deleting the word “member” and subst ituting the word “director” because we are now talking about a company, a limited company, which has directors, and in subsection (11) by deleting the words “of a company to a limited liability company” and substituting the words “issued by the Registrar” —again, housekeeping.
The ChairmanChairmanThank you, Minister. Would anyone like to speak to clause 101? The Chair now recognises the Member from constituency 17.
Mr. Walton BrownThank you, Madam Chairman. Just for the Minister, I am just struggling to understand why . . . and [this is] not my area of expertise, but why would a company —a limited company — want to convert to a limited liability company? It seems like a step down in …
Thank you, Madam Chairman. Just for the Minister, I am just struggling to understand why . . . and [this is] not my area of expertise, but why would a company —a limited company — want to convert to a limited liability company? It seems like a step down in terms of corporate structure, so I am looking for an explanation why that would be the case. I heard someone say because it’s expensive. . . but I always like to hear the Minister’s explanation. And also I saw in the legislation that it says no matter what takes place, in terms of this conversion, this limited liability company would still be fully r esponsible for any legal challenges or obligations and so forth. And, again, I am looking for elucidation because I recall a number of years ago when a certain insurance company faced a very large significant claim, they changed their name from a fully spelt out name to a set of three initials, and by changing to that new company they were able to avoid any legal consequences because it was deemed to be a completely separate legal entity. So I am looking for clarification. I do not fully understand it and I admit it is not my area of competence, but I would like help . . . a better understand ing of the laws that we are passing.
The ChairmanChairmanMinister. Dr. the Hon. E. Grant Gibbons: Thank you. Let me tackle those two questions in order. The first question was why would a limited company, which is what exists now in our legislative platform , wish to change to an LLC? And I think there could be a variety …
Minister.
Dr. the Hon. E. Grant Gibbons: Thank you. Let me tackle those two questions in order. The first question was why would a limited company, which is what exists now in our legislative platform , wish to change to an LLC? And I think there could be a variety of reasons for that. The Honourable Member may recall that, g oing back a couple of months, we made provisions for companies to convert to limited partnerships and li mited partnerships to convert to companies. We are providing flexibility here. As an example, one might say that perhaps you have a limited company and the nature of its business changes, maybe it becomes a lot simpler, maybe it sells off pieces, and it does not want to have to deal with, what I will call, the normal governance bylaws and all the other issues related to a company because those tend to be expensive— secretarial fees and other things —and maybe because its business is a lot simpler it wants to effectively reduce that type of governance and use an LLC where you simply have an agreement which governs most of those issues. So that could be a reason, but I think the real reason here is we are simply providing flexibility to be able to switch from a limited company to an LLC or an LLC to a limited company in the event that you wanted a board of directors and those sorts of things. So LLCs tend to be more flexible, simpler , and less expensive to operate , and there may be reasons why somebody would want to do that. I am a little out of my depth in terms of trying to explain what happened . . . when was it, 30 years ago, I think, when a local insurer essentially went through some changes. All I will say [is that it] was it was a very prolonged court action. I think it may have gone to the Privy Council, so it was clearly opined upon by multiple lawyers and law firms who were all concerned about that issue of whether somebody was simply trying to remove liability. Sometimes these days what happens, with a bank or sometimes insurance companies, is that they
Bermuda House of Assembly split into a good bank and a bad ban k, but generally there is a lot of legal action as a consequence of that. We have seen it in some of the restructuring of banks in the US where they take, what I will call, the assets that nobody wants and they shift it over to another company, but usually t here is a payment or consider ation of some sort to be able to do that. So, again, it was not something that was in my wheelhouse at the time, I cannot say I was paying close attention, but it was very controversial at the time and the Honourable Member wil l remember that. And I think a lot of the directors were sued as a consequence of that as well. So, anyway, I would like to move clause 101 as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 101 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 101 , passed as amended.]
The ChairmanChairmanMinister. AMENDMENT TO CLAUSE 102 Dr. the Hon. E. Grant Gibbons: Thank you. I would now like to move clause 102 and, again, I have an amendment to clause 102. Clause 102 deals with the conversion of an exempted LLC to a partnership. So clause 102, I would like to …
Minister.
AMENDMENT TO CLAUSE 102
Dr. the Hon. E. Grant Gibbons: Thank you. I would now like to move clause 102 and, again, I have an amendment to clause 102. Clause 102 deals with the conversion of an exempted LLC to a partnership. So clause 102, I would like to amend, first of all, in subsection (2)(f) by deleting the word “member” and substituting the word “manager”; in subsection (4) by deleting the word “notice” and substituting the word “certificate”; in subsection (5) by deleting paragraphs (a), (b), (c) and (d) because they are effectively replicated in subsection (6) so they are really redundant; and in subsection (11) by deleting the words “of an exempted LLC to an exempted partnership” and substituting the words “i ssued by the Registrar.” Again, these are very similar to some of the amendments we have just been making and they are effectively housekeeping. Thank you, Madam Chai rman.
The ChairmanChairmanThank you. Would anyone like to speak to clause 102? Would anyone want to speak to the clause as amended? Minister? Dr. the Hon. E. Grant Gibbons: Thanks, Madam Chairman. I would ask that clause 102 be approved as amended. The Chair man: It has been moved that the proposed …
Thank you. Would anyone like to speak to clause 102? Would anyone want to speak to the clause as amended? Minister? Dr. the Hon. E. Grant Gibbons: Thanks, Madam Chairman. I would ask that clause 102 be approved as amended. The Chair man: It has been moved that the proposed amendment to clause 102 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 102 , passed as amended.]
The ChairmanChairmanMinister? AMENDMENT TO CLAUSE 103 Dr. the Ho n. E. Grant Gibbons: I would like to now move clause 103 and I have an amendment. Clause 103 deals with the conversion of an exempted limited partnership to an exempted LLC. And in clause 103 I would like to amend it …
Minister?
AMENDMENT TO CLAUSE 103
Dr. the Ho n. E. Grant Gibbons: I would like to now move clause 103 and I have an amendment. Clause 103 deals with the conversion of an exempted limited partnership to an exempted LLC. And in clause 103 I would like to amend it by in subsection (2)(c) inserting the word “general” before the word “partner” and secondly, in subsection (11) by deleting the words “of an exempted limited partnership to an exempted LLC” and substituting the words “i ssued by the Registrar.” The word “general” is important because there is a difference between types of partners in a partnership. A general partner is the one that has the liability and has the responsibility for managing the partnership; limited partners do not, so we want to make sure we specify which partner we are talking about here. Thank you.
The ChairmanChairmanWould anyone like to speak to clause 103? Anyone like to speak to the clause as amended? Minister. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I would like to move clause 103 as amended.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 103 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 103 , passed as amended.]
The ChairmanChairmanMinister? Dr. the Hon. E. Grant Gibbons: I think everyone will breathe a sigh of relief. I would now like to move clauses 104 through 221. [Inaudible interjection] Dr. the Hon. E. Grant Gibbons: Sorry? [Inaudible interjection] 2510 13 July 2016 Official Hansard Report Bermuda House of Assembly Dr. the …
Minister? Dr. the Hon. E. Grant Gibbons: I think everyone will breathe a sigh of relief. I would now like to move clauses 104 through 221.
[Inaudible interjection] Dr. the Hon. E. Grant Gibbons: Sorry? [Inaudible interjection] 2510 13 July 2016 Official Hansard Report
Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: I think I have an amendment . . . sorry, le t me see, when is the next amendment ? All right, I am happy to move clauses 104 through 252, then, if the Honourable Member would . . . is comfortable. Yes?
The ChairmanChairmanYes, you may proceed. Dr. the Hon. E. Grant Gibbons: Thank you. All right, let us see, basically Part 13, which is clauses 104 through 221, includes provisions regar ding the winding up and dissolving of an LLC. This part includes extensive guidelines that mirror Part 13 of the Companies …
Yes, you may proceed. Dr. the Hon. E. Grant Gibbons: Thank you. All right, let us see, basically Part 13, which is clauses 104 through 221, includes provisions regar ding the winding up and dissolving of an LLC. This part includes extensive guidelines that mirror Part 13 of the Companies Act which contain the provisions for win ding up and dissolving a Bermuda company. Part 14, which are clauses 222 through 228, also mirror the Companies Act with provisions regar ding establishment and maintenance of a register of charges by the Registrar of Companies along with the procedures for register ing and prioritising charges against the assets of an LLC. Part 15, which is clauses 229 through 235, is the default fine procedure. And Part 15 sets forth the default fine and the procedures for how to fairly assess and impose a default fine. A would- be violator is provided with a warning notice and a decision notice which contains specifics as to why a default fine is being proposed and provides a deadline for contesting the fine. Lastly, this part provides that the default fine shall not apply in cases where a person has also been convicted of an offence under the Act and any dec ision by the Registrar to impose a default fine may be appealed to the Court. That brings us up to clause 236 and clauses 236 through 259 are Part 16, which is a miscellaneous section. I am going to stop at clause 252 here. But Part 16 sets forth a number of miscellaneous prov isions which are needed to ensure proper implement ation of the Act. For example, this part will specifically address application of the Act and the construc tion of the LLC agreement and will detail the statutory intent in order to give maximum effect to the principle of freedom of contract and to the enforceability of LLC agreements. Other provisions in this part include, but are not limited to: the certification of the sufficiency of delivery of electronic records; the form of registers required under the Act; the production and inspection of books upon suspicion of an offence; Court appeals against revocation of a licence to compete in the local market; penalties for false statements, records, or fai lure to make a statement or file a report as required under the Act; powers of the Court to grant relief to an officer or auditor of an LLC; and to enforce orders. I will stop there. Thank you.
The ChairmanChairmanThank you, Minister. Would anyone like to speak to clauses 104 through 252? The Chair recognises the Member from constituency 17.
Mr. Walton BrownThank you, Madam Chairman. Madam Chairman, if I can bring your attention to clause 144, the “Powers to arrest absconding contributory,” I find this section perverse because this section grants the Court the power to arrest someone in anticipation that they might commit a crime. I thought you only got …
Thank you, Madam Chairman. Madam Chairman, if I can bring your attention to clause 144, the “Powers to arrest absconding contributory,” I find this section perverse because this section grants the Court the power to arrest someone in anticipation that they might commit a crime. I thought you only got arrested if you actually were believed to have committed a cr ime. So I need some help with this. I need to understand how we can pass a law which allows the Court to arrest someone because of what they think they might do, because I can think of a lot of people who should be arrested , if that is the case, Madam Chai rman. So, again, it may be in the Companies Act, but it just seems perverse, and I just need some help understanding how this could possibly be a sound piece of legislation.
The ChairmanChairmanThank you. Minister? Dr. the Hon. E. Grant Gibbons: Thank you, M adam Chairman. It actually caught my attention as well. I did look and you are correct. It is almost word for word in the Companies Act. Let me just read it so everybody has a sense of what …
Thank you. Minister?
Dr. the Hon. E. Grant Gibbons: Thank you, M adam Chairman. It actually caught my attention as well. I did look and you are correct. It is almost word for word in the Companies Act. Let me just read it so everybody has a sense of what we are talking about. It says —this is [clause] 144—“The Court, at any time either before or after making a winding up order, on proof of probable cause for believing that a contributory is about to quit Bermuda or otherwise to abscond or to remove or conceal any of his property for the purpose of evading payment of cal ls or of avoiding examination respecting the affairs of the li mited liability company, may cause the contributory to be arrested and his books and papers and movable personal property to be seized and him and them to be safely kept until such time as the C ourt may order.” I think the protection there is that it requires a Court action to be able to do that. So I am sure the, I will say, the potential absconding member or his legal attorney can make provisions to the court to be able to do it. It is in the Companies Act and we have simply replicated what is in the Companies Act here. I understand that it sounds a little draconian, but on the other hand, I think when you do have cred itors and someone leaves the country or absconds with something that is the proper property of the company or, in this case, the LLC, I think that is the re ason this power is in there. I am not aware of any situation recently in which it has been used. It may be a little bit archaic and I think it is something we probably should l ook at in the Companies Act, but that is the reason.
The ChairmanChairmanThank you. Bermuda House of Assembly The Member from [constituency] 17?
Mr. Walton BrownReplication cannot be justific ation. So can the Minister at least give an undertaking that what is clearly a very draconian piece of legisl ation will be re- examined? Because if we had ( what are they called ?) immigration exit controls like other cou ntries have, then you could …
Replication cannot be justific ation. So can the Minister at least give an undertaking that what is clearly a very draconian piece of legisl ation will be re- examined? Because if we had ( what are they called ?) immigration exit controls like other cou ntries have, then you could catch an absconding person in the act. But to grant the Court the power to arrest someone in anticipat ion is sort of like that movie Minority Report where you try to get people because you know they are going to commit a crime. And it just seems inappropriate. So can you at least give a commitment to examine this section with a view toward harmonising with what we consider to be appropriate and just laws for the 21 st century?
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I am happy to give that commitment. I just had a note that a Court can issue a warrant for arrest and, again, I think . . . read the section carefully. It says basically that there needs to be “on proof of probable cause. ” So that, I think, is the Court’s protection. But I hear the Honourable Member. As I said, I looked at it and I said this sounds a little bit sort of 19th, 20th century. On the other hand , if you are the creditor and someone is about to leave Bermuda simply to evade what is owed to you as a creditor, I think you would probably say , Okay, I wouldn’t mind having the Court detain that person until we can sort out the issues. But anyway, I will take it as something we will have a look at.
The ChairmanChairmanMinister, would you like to move the clauses? Would anyone else like to speak — I am sorry , the Member from constituency 17.
Mr. Walton BrownJust for the record, because it has to be said, we are going to pass this piece of legislation, but there are many women who know they are about to be abused physically and the police are . . . they lack the power to arrest. But here we are …
Just for the record, because it has to be said, we are going to pass this piece of legislation, but there are many women who know they are about to be abused physically and the police are . . . they lack the power to arrest. But here we are pr otecting someone’s money and you are going to arrest someone, and women are told over and over and over it is when you are assaulted that the police can do something. And so, again, it just seems perverse. I just want to put that down for the record.
The ChairmanChairmanMinister? Dr. the Hon . E. Grant Gibbons: Yes, thank you. I am not an expert on matrimonial law or the breakdown of matrimonial law, but I suspect, again, a Court can give a ( what is it called ?) . . . a protection order as well. These are …
Minister?
Dr. the Hon . E. Grant Gibbons: Yes, thank you. I am not an expert on matrimonial law or the breakdown of matrimonial law, but I suspect, again, a Court can give a ( what is it called ?) . . . a protection order as well. These are a little bit different, obviously, and I take the Honourable Member’s point that phys ical abuse is certainly something which is, in many respects, more serious. But I think, again, there needs to be a probable cause and you have got a Court , so you have got somebody who is looking to, as a jud ge, looking to make sure it is fair. But, as I said, we will have a look at it and I understand where the Honourable Member is coming from. Let see, so I would like to move those clauses up to [clause] 252, I believe it is.
The ChairmanChairmanIt has been moved that clauses 104 through 252 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 104 through 252 passed.]
The ChairmanChairmanMinister, you have the floor. AMENDMENT TO CLAUSE 253 Dr. the Hon. E. Grant G ibbons: Yes, thank you, Madam Chairman. I now would like to move clause 253 for which I have an amendment. And the amendment is simply deleting . . . sorry, just bear with me for …
Minister, you have the floor.
AMENDMENT TO CLAUSE 253
Dr. the Hon. E. Grant G ibbons: Yes, thank you, Madam Chairman. I now would like to move clause 253 for which I have an amendment. And the amendment is simply deleting . . . sorry, just bear with me for a second . . . deleting subsection (6) , because subsection (6) is simply unn ecessary, it is already dealt with. So I move clause 253 with deleted subsection (6). Thank you.
The ChairmanChairmanWould anyone like to speak to clause 253? Would anyone like to speak to it as amended? Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you. I move that clause 253, as amended, be a pproved.
The ChairmanChairmanIt has been moved that the proposed amendment to clause 253 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clause 253 , passed as amended.]
The ChairmanChairmanMinister, you may continue. Dr. the Hon. E. Grant Gibbons: Thank you. I would now like to move clauses 254 to the end, which is 259. So, clauses 254 through 259. And these sections basically deal with the submission of an annual declaration, the power of the Minister to make …
Minister, you may continue.
Dr. the Hon. E. Grant Gibbons: Thank you. I would now like to move clauses 254 to the end, which is 259. So, clauses 254 through 259. And these sections basically deal with the submission of an annual declaration, the power of the Minister to make regulations, the power of the Minister 2512 13 July 2016 Official Hansard Report
Bermuda House of Assembly and the Chief Justice (under [clause] 256) to make rules of Court and rules prescribed under this Act. Let us see, [clause] 257 is the provision that says tha t “Nothing in this Act shall affect the prov isions of section 61 of the Bermuda Housing Act 1980.” [Clause 258 says] that the consequential amendments set out in the Schedule have affect, and [clause] 259 is the commencement. So I move clauses 254 through 259.
The ChairmanChairmanWould anyone like to speak to clauses 254 through 259? Minister, you have moved them – Dr. the Hon. E. Grant Gibbons: Yes, I would like to move those clauses, Madam Chairman.
The ChairmanChairmanIt has been moved that clauses 254 through 259 be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: Clauses 254 through 259 passed.]
The ChairmanChairmanMinister? AMENDMENT TO THE SCHEDULE Dr. the Hon. E. Grant Gibbons: Thank you. Finally I would like to m ove the Schedule. And what we are doing here, just for simplicity, is because there are a number of amendments in the Schedule we are simply deleting the current Schedule and …
Minister?
AMENDMENT TO THE SCHEDULE Dr. the Hon. E. Grant Gibbons: Thank you. Finally I would like to m ove the Schedule. And what we are doing here, just for simplicity, is because there are a number of amendments in the Schedule we are simply deleting the current Schedule and r eplacing the Schedule as detailed in the amendment here. And I guess just to comment briefly, the Schedule really sets out consequential amendments to a number of other Acts. In effect it inserts prov isions for a limited liability company into a variety of other legislation like the Companies Act, the Partnership Act, [and] the Inves tment Funds Act. There is sort of a . . . the Honourable Member will see a ne wer section here on the Investment Funds Act. We were a little slow in getting this finished because the BMA wanted to be sure that they had the provisions correct. That is why it is appearing here. But in essence it is doing the same thing, which is setting out the r equirements to permit an LLC to be covered under the Investment Funds Act , and then there are a number of sort of minor changes to the fees —the Government Fees Regulat ions. A couple of things have been left out here, but other than that the Schedule is pretty much intact. I will stop there. Thank you.
The ChairmanChairmanThank you. Would anyone like to speak to the Schedule? The Chair recognises the Member from constituen cy 33.
Mr. Jamahl S. SimmonsThank you, Madam Chai rman. Just looking at the amendments to the Go vernment Fees Regulation 1976, I know this is not Question Period, and the Minister probably does not have that information in front of him, but how much are we looking to take in with the fees at …
Thank you, Madam Chai rman. Just looking at the amendments to the Go vernment Fees Regulation 1976, I know this is not Question Period, and the Minister probably does not have that information in front of him, but how much are we looking to take in with the fees at this current level? And is there any thought to reviewing these in the not too distant future to . . . you know, many of these businesses are quite wealthy and can afford to pay a little bit more than $90 for consideration of an application. Thank you, Madam Chairman.
The ChairmanChairmanThank you. Minister? Dr. the Hon. E. Grant Gibbons: Yes, thanks, Madam Chairman. Again, these fees sort of reflect for the most part some of the similar fees that are charged under the Companies Act. I think the Honourable Member will be aware that they do get looked at, I …
Thank you. Minister? Dr. the Hon. E. Grant Gibbons: Yes, thanks, Madam Chairman. Again, these fees sort of reflect for the most part some of the similar fees that are charged under the Companies Act. I think the Honourable Member will be aware that they do get looked at, I think it is on a biannual basis , and they get increased by the rate of inflation. I take the Honourable Member’s point, since the Minister of Finance is usually looki ng for money, maybe some of these could be increased. But again, I think, we usually get complaints about the cost of doing business here, but I understand where the Hon-ourable Member is coming from and we can have a look at . . . certainly have a look at some of these to see whether we can, as it were, extract a few more dollars from some of the companies involved. I will say to the Honourable Member that this is not all international business. People generally think of this as international business, but a lot of these would apply to local companies as well, so, you know , it is a question of balance. Some of these fees also are looked at by lawyers, particularly in Hong Kong and the Far East, where they tend to be very pars imonious and tend to look at these fees in relation to other jurisdictions like the Cayman Islands , the Isle of Man, Ireland, and jurisdictions of that sort. So there is a little bit of a balancing act going on here as well, but I take the Honourable Member’s point. Madam Chairman, I would like to move the Schedule as amended.
The ChairmanChairmanIt has been moved that the proposed amendments to the Schedule be approved. Is there any objection to that motion? No? Would you . . . do you have any —
Mr. Jamahl S. SimmonsI have no objection; I would just like to speak to the motion in response. And I apBermuda House of Assembly preciate the answer that the Minister has given. I think it is clear that, you know, the balancing act must be maintained and I do not want to give …
I have no objection; I would just like to speak to the motion in response. And I apBermuda House of Assembly preciate the answer that the Minister has given. I think it is clear that, you know, the balancing act must be maintained and I do not want to give the impression that we are interested in soak ing everyone. Bermuda is already an expensive jurisdiction for them to do business. But I do think that as we review we have looked at raising all sorts of things around the I sland that have impacted on people, particularly in the social arena. And if ther e can be a few more pennies here that can add to our coffers and it can be done without inflicting too much pain, we would welcome that. Thank you, Madam Chairman.
The ChairmanChairmanThank you, Member. We will now move to the motion. It has been moved that the Schedules, with amendments, be approved. Is there any objection to that motion? No objection. Agreed to. [Motion carried: The Schedule was passed as amended.]
The ChairmanChairmanMinister? Dr. the Hon. E. Grant Gibbons: Madam Chairman, I am in your hands. Am I moving all of the clauses and . . .
The ChairmanChairmanThe Preamble. Dr. the Hon. E. Grant Gibbons: The Preamble now? Okay, I move the Preamble.
The ChairmanChairmanIt has been moved that the Preamble be approved. Is there any objection to that motion? No objection. Agreed to.
The ChairmanChairmanMinister? Dr. the Hon. E. Grant Gibbons: I move that the Bill, as amended, be reported to the House. Thank you, Madam Chairman.
The ChairmanChairmanIt has been moved that the Bill, as amended, be reported to the House. Is there any objection to that motion? No objection. Agreed to. The Bill will be reported to the House, as amended. [Gavel] [Motion carried: The Limited Liability Company Act 2016 was considered by a Committee of …
It has been moved that the Bill, as amended, be reported to the House. Is there any objection to that motion? No objection. Agreed to. The Bill will be reported to the House, as amended.
[Gavel] [Motion carried: The Limited Liability Company Act 2016 was considered by a Committee of the whole House and passed as amended .]
House resumed at 2:52 pm
[Hon. K. H. Randolph Horton, Speaker, in the Chair]
REPORT OF COMMITTEE
LIMITED LIABILITY COMPANY ACT 2016
The SpeakerThe SpeakerYes, Honourable Member s, the Limited Liability Company Act 2016 second reading has been approved. Order No. 9, I believe, is carried over. We move to the second reading of Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 in the name of the Mini ster of Economic …
Yes, Honourable Member s, the Limited Liability Company Act 2016 second reading has been approved. Order No. 9, I believe, is carried over. We move to the second reading of Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 in the name of the Mini ster of Economic Development. So, Dr. Gibbons, you have the floor again.
BILL
SECOND READING
BERMUDA INTERNATIONAL INTERESTS IN M OBILE EQUIPMENT (CAPE TOWN CONVENTION) ACT 2016
Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. Mr. Speaker, I move that the Bill entitled the Bermuda International Interests in Mobile Equipm ent (Cape Town Convention) Act 2016 now be read a second time.
The SpeakerThe SpeakerAre there any objections to that? Please carry on, Dr. Gibbons. Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. I am pleased to introduce the Bill entitled Bermuda Inter national Interests in Mobile Equipment (Cape Town Convention) Act 2016. The purpose of this Bill is to introduce Bermuda …
Are there any objections to that? Please carry on, Dr. Gibbons.
Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. I am pleased to introduce the Bill entitled Bermuda Inter national Interests in Mobile Equipment (Cape Town Convention) Act 2016. The purpose of this Bill is to introduce Bermuda legislation to enact the International Civil Avi ation Organisation’s (ICAO) Convention on International Interests in Mobile Equipment (and that is known as “the Convention”) and the protocol thereto on matters specific to aircraft equipment (otherwise known as “the protocol”). The combination of the Convention and the protocol are referred to as the Cape Town Treaty. Mr. Speaker, the Convention and protocol are two separate but complementary instruments which aim to support asset -backed financing by providing greater legal certainty, clarity , and confidence to f i2514 13 July 2016 Official Hansard Report
Bermuda House of Assembly nanciers of mobile equipment, primarily aircraft and aircraft engines. The r esult is improved capital avai lability at lower cost to the borrower and better bus iness opportunities for aircraft equipment suppliers. Mr. Speaker, for an aircraft financier the merits of the Treaty are that it aims to protect the party’s title and security interest in aircraft and engines by providing for the registration of international interests at a single web- based international registry that is a lways open. It also subjects those interests to a simple priority regime whose main principles are: (1) registered interests take priority over unregistered interests; (2) earlier registrations take priority over later registrations; and (3) the parties can vary priorities by registering subordination arrangements at the international registry. The Treaty also brings speed, certainty , and cost savings to the process of repossessing aircraft and engines under an insolvency or other default, particularly where these assets are in a country whose legal system would otherwise give cause for concern in such matt ers. Mr. Speaker, in summary, for aircraft and ai rcraft engines the Treaty creates international standards for registration of: sale contracts; security interest or liens; leases and conditional sales contracts; as well as various legal remedies for default in financing agreements, including repossession and the effect of a particular state’s bankruptcy laws. Mr. Speaker, many of the large commercial transport aircraft registered in Bermuda are subject to various leasing arrangements through major banking institutions around the world. The use of Bermuda Special Purpose Companies (SPCs) in aviation financial structures is well known, and being party to the Treaty would make Bermuda more attractive as a j urisdiction for borrowers wishing to arrange aircraft financing. As an Overseas Territory Bermuda was de-pendent on the UK ratifying the Treaty before we could be a party to it. It should be noted that the Net herlands, among other countries, ratified the Treaty after its implementation in 2001 and consequentl y extended the Treaty benefits to their Dutch Overseas Territories in 2007, including their aircraft registries. This ratification provided the aviation registries in these jurisdictions with a competitive advantage. Mr. Speaker, in 2011 the UK Department for Business Innovation and Skills (BIS) conducted a call for evidence to seek views on whether it would benefit the UK to ratify the Treaty. The majority of respondents to the consultation, including Bermuda, were in favour of ratification. The expectati on was that airlines and leasing companies would benefit from lower f inancing costs for aircraft equipment due to a reduction in the risk to financiers involved in aircraft transactions. In May 2013 a delegation from the Ministry of Economic Development, i ncluding the Minister and Permanent Secretary, participated in an Aviation Po l-icy Consultative Conference in London organised by BIS and the Department of Transport that included representation by other Overseas Territories in the Crown Dependencies. At that meeting the Bermuda delegation underscored the importance of UK treaty ratification. We were joined by the Cayman Islands in highlighting the competitive disadvantage to date for the Overseas Territory registries of not having the commercial benefits of the Treaty extension. Our pos ition was endorsed by other Overseas Territories and the Crown Dependencies. BIS subsequently pu blished a response to the call for evidence in December of 2013 setting out the UK Government’s intention to proceed with ratification. The Treaty includes a number of options for implementation, and a further consultation paper was issued in June 2014 asking for views on how the UK should implement the Treaty with the intent to ratify the Treaty in the UK by April 2015. The Treaty c ould then be extended to the Overseas Territories through an Order in Council if the Overseas Territory so d esired. Mr. Speaker, ratification and extension of the Treaty to Bermuda can increasingly be viewed as an essential development to keeping Bermuda c ompet itive with these other jurisdictions, which have already ratified the Treaty and adopted it as law. To date, almost 70 countries and territories have ratified the Treaty demonstrating that it has become the international norm by which aircraft financi ng transactions are measured. Bermuda needs to be a party to the Treaty in order to avoid being at a competitive disad-vantage to other jurisdictions, such as Aruba, the Cayman Islands, Guernsey, Ireland, Malta, and San Marino. The Treaty permits contracting states to make declarations opting in or out of certain provisions. In order for the UK to extend ratification of the Treaty to Bermuda, the specific qualifying declarations to the Treaty and local legislation must be submitted for r eview and agreement. As the UK Department for Bus iness Innovation and Skills have been involved with the development of the declarations in the legislation, no issues are anticipated upon the formal submission of this Bill once passed by Parliament. To the extent any conflict or inconsistency exists between this Act and any other Bermuda Act or statutory instrument, this Act prevails. Mr. Speaker, following an extensive consult ation period with local law firms, the Attorney General’s Chambers, and the Department of Civil Aviati on, the local legislation was drafted following the Australian and Cayman models. While consideration was given to the UK legislative model , it is more aligned with the European Union and was, therefore, deemed less appropriate for Bermuda. Mr. Speaker, upon acceptance of Bermuda’s declarations to the Treaty and legislation the UK will deposit the ratification papers with the International
Bermuda House of Assembly Institute for the Unification of Private Law (UNIDROIT). Three clear months then need to pass before they come into ef fect and then the UK will extend the ratification to Bermuda by an Order in Coun-cil. Mr. Speaker, Bermuda currently has a well - established aircraft and aircraft engines mortgage register enacted through the Mortgaging of Aircraft and Aircraft Engines Act 1999. This will be retained and remain an option for aircraft owners and financiers as not all registry clients may be able to utilise the Treaty. Pre-existing international interests will retain their pr iority without the need for retroactive registrations with the international registry. Thank you, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you, Honourable Member. The Chair will now recognise the Honourable Member from constituency 24, MP Lawrence Scott, the Shadow Minister for Transport. You have the f loor.
Mr. W. Lawrence ScottThank you, Mr. Speaker. As much as I would love to stand here and give my honourable friend across the aisle a hard time on this, this is something that comes with . . . it is a necessity so that we can maintain our competiti ve advantage for our …
Thank you, Mr. Speaker. As much as I would love to stand here and give my honourable friend across the aisle a hard time on this, this is something that comes with . . . it is a necessity so that we can maintain our competiti ve advantage for our aircraft registries and our aircraft mortgage and engine. . .
[Inaudible interjection]
Mr. W. Lawrence Scott—platforms as well. Thank you. So on this side , in principle , we do agree with it.
The SpeakerThe SpeakerThank you, thank you, Member. Any other Member care to speak? The Chair then recognises Dr. Gibbons again. Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. I appreciate the collaboration. I am glad the Honourable Member woke up not wishing to give me a hard time today. And …
The SpeakerThe SpeakerAll right. Thank you. It has been moved that the Bill be committed. Are there a ny objections? There are none. So Deputy [Speaker], would you please take the Chair [of Committee] ? House in Commi ttee at 3:03 pm [Mrs. Suzann Roberts -Holshouser, Chairman] COMMITTEE ON BILL BERMUDA INTERNATIONAL …
The ChairmanChairmanMembers, we are now in Committee of the whole House for further consideration of the Bill entitled Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 . I call on the Minister in charge to proceed. Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank …
Members, we are now in Committee of the whole House for further consideration of the Bill entitled Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 . I call on the Minister in charge to proceed. Minister, you have the floor. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. Madam Chairman, let us see . . . I would like to move . . . why not do all the clauses here?
The ChairmanChairmanAre there any objections to moving clauses 1 through 11. There are no objections. Please proceed. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. This Bill seeks to establish the Bermuda I nternational Interests in Mobile Equipment, otherwise known as the Cape Town Convention Act 2016, and give …
Are there any objections to moving clauses 1 through 11. There are no objections. Please proceed. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. This Bill seeks to establish the Bermuda I nternational Interests in Mobile Equipment, otherwise known as the Cape Town Convention Act 2016, and give effect to the Convention on International Interests in Mobile Equipment concluded at Cape Town, South Africa, on 16 th November 2001. Clause 1 is the citation. Clause 2 is the interpretation section. Clause 3 affirms by way of the Bermuda I nternational Interests in Mobile Equipment (Cape Town Convention) Act 2016, that the Cape Town Treaty shall have force of law in Bermuda. Clause 4 affirms by way of the Bermuda I nternational Interests in Mobile Equipment (Cape Town Convention) Act 2016 that international interest, as provided for by Articles 2 to 7 of the Convention but subject to the Convention, Protocol and the Protocol Regulations, shall be rec ognised in relation to aircraft objects. Clause 5 clarifies that registration of an international interest or other matters, in accordance with the Convention, only has effect for the purposes of this Act if and to the extent that it complies with the provisions of Articles 18 to 20 of the Convention as modified by Article XX of the Protocol and by the Pr otocol Regulations. Clause 6 grants power to the Minister to amend, revoke, or replace Schedule 3 of the Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016. Clause 7 affirms that, for the purposes of settling disputes between parties by way of the Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016, the Supreme Court shall be the relevant court . 2516 13 July 2016 Official Hansard Report
Bermuda House of Assembly Clause 8 is the conflict of laws provision. In particular clause 8 specifies that, save in the case where there is a pre- existing right or interest (which, actually under clause 9, retains the priority it enjoyed under the laws of Bermuda before the comi ng into force of the Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016) , and where there is a conflict or inconsistency between the Act and any other Act or statutory instrument of Bermuda addressing any matter governed by the Cape Town Treaty, that the Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 shall prevail. Clause 9 is the transitional provision. Clause 10 is the Schedules provision. Clause 11 is the commencement provision. And I will stop there.
The ChairmanChairmanThank you. Are there any Members that would like to speak to clauses 1 through 11? There are no Members. Minister, please proceed. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I move that clauses 1 through 11 be a pproved.
The ChairmanChairmanIt has been moved that clauses 1 through 11 be approved as printed. Are there any objections to that motion? No objections. Agreed to. [Gavel] [Motion carried: Clauses 1 through 11 passed.] Dr. the Hon. E. Grant Gibbons : Thank you. Now Madam Chair I am going to move the …
The ChairmanChairmanWe are going to move the Schedule. Is there a ny objection to that motion? Dr. the Hon. E. Grant Gibbons: Actually there are . . . I beg your pardon, there are three Schedules. So I am going to move all three.
The ChairmanChairmanThank you. Are there any objections to moving all three? No, there are no objections.
The ChairmanChairmanPlease proceed. Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. The Schedules basically set o ut the Convention, the Protocol , and the various declarations which effectively talk about aircraft and aircraft engines. And I think the Schedules effectively are the provisions that we are now giving force …
Please proceed.
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. The Schedules basically set o ut the Convention, the Protocol , and the various declarations which effectively talk about aircraft and aircraft engines. And I think the Schedules effectively are the provisions that we are now giving force of law to Bermuda and they are effectively as they come from the Cape Town Treaty , so there is nothing much we can do about them if we want to make this provision operational in Bermuda. So I will leave it at that. Thank you.
The ChairmanChairmanThank you. Are there any Members that would like to speak to the three Schedules? There are no Members that would like to speak to the three Schedules. Minister, please proceed. Dr. the Hon. E. Grant Gibbons: Thank you, I appr eciate the support from Honourable Members. Madam Chairman, I …
The ChairmanChairmanIt has been moved that the Schedules be approved as printed. Are there any objections to that motion? No objections. Agreed to. [Gavel] [Motion carried: Schedules 1, 2, and 3 passed.] Dr. the Hon. E. Grant Gibbon s: Thank you, Madam Chairman. I move the Preamble.
The ChairmanChairmanAh— Dr. the Hon. E. Grant Gibbons: Oh, is there a Pr eamble?
The ChairmanChairmanThat is right, that is right. Dr. the Hon. E. Grant Gibbons: Yes, I move the Pr eamble.
The ChairmanChairmanIt has bee n moved that the Preamble be approved. Are there any objections to that motion? No objections. Agreed to. [Gavel] Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I move that the Bill be reported to the House. Bermuda House of Assembly The Chairman: It has …
It has bee n moved that the Preamble be approved. Are there any objections to that motion? No objections. Agreed to. [Gavel]
Dr. the Hon. E. Grant Gibbons: Thank you, Madam Chairman. I move that the Bill be reported to the House.
Bermuda House of Assembly The Chairman: It has been moved that the Bill be reported to the House. Are there any objections to that motion? No objections. Agreed to.
[Gavel] [Motion carried: The Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 was considered by a Committee of the whole House and passed without amendment.]
House resumed at 3:08 pm
[Hon. K. H. Randolph Horton, Speaker, in the Chair]
REPORT OF COMMITTEE
BERMUDA INTERNATIONAL INTERESTS IN M OBILE EQUIPMENT (CAPE TOWN CONVENTION) ACT 2016
The SpeakerThe SpeakerMember s the Bill entitled the Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 has had its second reading approved. We now move to Order No. 11 which is the second reading of the Maintenance Orders (Recipr ocal Enforcement) Amendment Act 2016 in the name of the …
Member s the Bill entitled the Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 has had its second reading approved. We now move to Order No. 11 which is the second reading of the Maintenance Orders (Recipr ocal Enforcement) Amendment Act 2016 in the name of the Learned Attorney General and Minister of Legal Affairs. Attorney General Trevor Moniz, you have the floor.
BILL
SECOND READING
MAINTENANCE ORDERS (RECIPROCAL E NFORCEMENT) AMENDMENT ACT 2016
Hon. Trevor G. Moniz: Than k you, Mr. Speaker. I move that the Bill entitled Maintenance O rders (Reciprocal Enforcement) Amendment Act 2016 be now read the second time.
The SpeakerThe SpeakerThank you. Any objections? Carry on please, Attorney General . Hon. Trevor G. Moniz: I am obliged , Mr. Speaker. Mr. Speaker, I am pleased to present to the House today an amendment to the Maintenance O rders (Reciprocal Enforcement) Act 1974. This Bill has a simple and straightforward purpose, …
Thank you. Any objections? Carry on please, Attorney General .
Hon. Trevor G. Moniz: I am obliged , Mr. Speaker. Mr. Speaker, I am pleased to present to the House today an amendment to the Maintenance O rders (Reciprocal Enforcement) Act 1974. This Bill has a simple and straightforward purpose, Mr. Speaker, to provide for Orders designating a country or territory under the Act that is a reciprocating country as not being subject to parliamentary scrutiny. Honourable Members will recall the recent debate on adding the Canadian Province of Ontario to the Maintenance Orders (Reciprocal Enforcement) (Desig nation) Order 1975 for the purpose of mutually enforcing Judicial Maintenance Orders or provisional orders as defined by the Act. During that debate, Mr. Speaker, the Honourable Member from constituency 17 questioned whether it was appropriate to bring such orders before the Honourable House at all and doing so may be r egarded as a cumbersome process for such straightforward technical matters. I certainly agree with him and following his suggestion I am bringing the Bill t oday. I expect that Honourable Mem bers can agree to this Bill in the principle that the Legislature should not be troubling itself over simple and technical matters such as designating territories and countries. This will free up our time to debate and decide matters requi ring more detailed and forensic consideration. And we thank that Honourable Member for his suggestion. Government and all were receptive to possible amendments and to collaboration which would serve only to improve the administration of the affairs of this H onourable House. And Mr. Speaker, Members will recall that in the one before Ontario, I think about a year ago, we did the State of Minnesota in the United States, so there is a list of countries (and I read it out in the debate at that time) of about 20 or 25 which have been done over the years , and they are done one by one, but there is no need for them to come for the scrutiny of this House. So that is all I have to say on the matter, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you, Attorney General . Any other Member care to speak? The Chair will recognise the Shadow Attorney General, the Learned Member Michael Scott from constituency 36. Hon. Michael J. Scott: Thank you, Mr. Speaker. And Mr. Speaker, in the light of the collabor ation that is completely …
All right. Thank you, Attorney General . Any other Member care to speak? The Chair will recognise the Shadow Attorney General, the Learned Member Michael Scott from constituency 36. Hon. Michael J. Scott: Thank you, Mr. Speaker. And Mr. Speaker, in the light of the collabor ation that is completely reflected in the Bill, plainly we have every intention of supporting this with great e nthusiasm. And I expect that my colleague from [co nstituency] 17 ought to weigh in.
The SpeakerThe SpeakerAll right. Thank you, thank you, Honourable Member. The Chair will recognise the Honourable Member from constituency 17, Walton Brown.
Mr. Walton BrownThank you, Mr. Speaker. I am obliged to rise. I had no intention of speaking on this, but I want to express my gratitude to the Honourable Attorney General. It is noteworthy that 2518 13 July 2016 Official Hansard Report Bermuda House of Assembly there are times when we can …
Thank you, Mr. Speaker. I am obliged to rise. I had no intention of speaking on this, but I want to express my gratitude to the Honourable Attorney General. It is noteworthy that 2518 13 July 2016 Official Hansard Report
Bermuda House of Assembly there are times when we can listen and learn from each other and work together. This is an example of collaboration and it bodes well. So with those brief remarks , I will take my seat.
The SpeakerThe SpeakerAll right. Thank you, Honourable Member. Any other Honourabl e Member care to speak? Then Attorney General , you have the floor. Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I move that the Bill be committed.
The SpeakerThe SpeakerAll right. Thank you. Are there a ny objections to that? The Bill will be committed and I ask that the Deputy [Speaker] please take the Chair [of Commi ttee]. House in Committee at 3:14 pm [Mrs. Suzann Roberts -Holshouser, Chairman] COMMITTEE ON BILL MAINTENANCE ORDERS (RECIPROCAL E NFORCEMENT) AMENDMENT …
The ChairmanChairmanMembers, we are now in Committee of the whole House for further consideration of the Bill entitled Maintenance Orders (Reciprocal Enforc ement) Amendment Act 2016 . I call on the Attorney General . You have the floor. Hon. Trevor G. Moniz: Thank you, Madam Chairman. I move . . . …
Members, we are now in Committee of the whole House for further consideration of the Bill entitled Maintenance Orders (Reciprocal Enforc ement) Amendment Act 2016 . I call on the Attorney General . You have the floor.
Hon. Trevor G. Moniz: Thank you, Madam Chairman. I move . . . effectively there are only clauses 1 and 2 of this B ill, so I move clauses 1 and 2.
The ChairmanChairmanAre there any objections to moving clauses 1 and 2? No, there are none. Please proceed. Hon. Trevor G. Moniz: Clause 1, as usual, provides the citation for the Bill. Clause 2 amends section 15 of the princ ipal Act to provide for Orders designating a country or territory as …
The ChairmanChairmanThank you. Are there any Members that would like to speak to clauses 1 through 2? There are no M embers that would like to speak to clauses 1 through 2. Attorney General ? Hon. Trevor G. Moniz: In that case I move that clauses 1 and 2 be approved …
The ChairmanChairmanIt has been moved that clauses 1 and 2 be approved as printed. Are there any objections to that motion? No objections. Agreed to. [Gavel] [Motion carried: Clauses 1 and 2 passed.] Hon. Trevor G. Moniz: I move the Preamble.
The ChairmanChairmanIt has been moved that the Preamble be approved. Are there any objections to that motion? No objections. Agreed to. [Gavel] Hon. Trevor G. Moniz: I move that the Bill be r eported to the House as printed.
The ChairmanChairmanIt has been moved that the Bill be reported to the House as printed. Are there any objections to that motion? No objecti ons. Agreed to. [Gavel] [Motion carried: The Maintenance Orders (Reciprocal Enforcement) Amendment Act 2016 was considered by a Committee of the whole House and passed without amendment.] …
It has been moved that the Bill be reported to the House as printed. Are there any objections to that motion? No objecti ons. Agreed to. [Gavel] [Motion carried: The Maintenance Orders (Reciprocal Enforcement) Amendment Act 2016 was considered by a Committee of the whole House and passed without amendment.]
House resumed at 3:16 pm
[Hon. K. H. Randolph Horton, Speaker, in the Chair]
REPORT OF COMMITTEE
MAINTENANCE ORDERS (RECIPROCAL E NFORCEMENT) AMENDMENT ACT 2016
The SpeakerThe SpeakerThank you, Honourable Members. That is , the Maintenance Orders (Reciprocal Enforcement) Amendment Act 2016 second reading has been approved. Order No. 12 is going to be dealt with a bit later. Order No. 13 is the Bermuda Immigration and Protection Amendment (Adoption) Act 2016 in the name of the …
Thank you, Honourable Members. That is , the Maintenance Orders (Reciprocal Enforcement) Amendment Act 2016 second reading has been approved. Order No. 12 is going to be dealt with a bit later. Order No. 13 is the Bermuda Immigration and Protection Amendment (Adoption) Act 2016 in the name of the Minister of Home Affairs. Is she here?
Bermuda House of Assembly Hon. Trevor G. Moniz: Mr. Speaker, the Minister has not arr ived back yet from an appointment. So I am jumping in to cover for her.
The SpeakerThe SpeakerOkay, Attorney General . Hon. Trevor G. Moniz: So, I will do that. BILL SECOND READING BERMUDA IMMIGRATION AND PROTECTION AMENDMENT (ADOPTION) ACT 2016 Hon. Trevor G. Moniz: I move that the Bill entitled the Bermuda Immigration and Protection Amendment (Adoption) Act 2016 be now read the second time.
The SpeakerThe SpeakerAre there any objections to that? There are none. Please carry on, Honourable Attorney General. Hon. Tr evor G. Moniz: Thank you, Mr. Speaker. Mr. Speaker, today I rise to introduce for the second reading the Bill entitled Bermuda Immigration and Protection Amendment (Adoption) Act 2016. The Bill seeks to …
Are there any objections to that? There are none. Please carry on, Honourable Attorney General.
Hon. Tr evor G. Moniz: Thank you, Mr. Speaker. Mr. Speaker, today I rise to introduce for the second reading the Bill entitled Bermuda Immigration and Protection Amendment (Adoption) Act 2016. The Bill seeks to amend the Bermuda Immigration and Protection Act 1956 to provide for the automatic acquisition of Bermudian status by adoption. Mr. Speaker, Honourable Members will be aware that in March 2016 the Government withdrew the Bill entitled Bermuda Immigration and Protection Amendment Act 2016 and agreed to the creation of a consultative working group comprising of key stak eholders with the express purpose of discussing issues relating to the original Bill. The consultative working group would make recommendations on and consider different aspects of the Bill in stages, following princ iples of good consultation. The first stage being addressed by the wor king group deals with the children and family provisions in the original Bill. The first issue to be addressed in this stage was a review of the adoption provisio ns in the principal Act. Mr. Speaker, the Consultative Immigration [Reform] Working Group was constituted in April of this year. The first report was submitted in June 2016 to the Honourable Premier. The working group deli berately extensively on the issue of the grant of Bermudian status to adopted children of Bermudians who either adopted in Bermuda or overseas. The current legislation provides for an adopted child to apply for the grant of Bermudian status between the ages of 18 and 22. Under the current provision such children must prove that he or she has been ordinarily resident in Bermuda for a period of five years immediately pr eceding the application and must also be deemed to possess and enjoy Bermudian status for that same period. If the adopted c hild fails to apply for the grant of Bermudian status before his or her 22 nd birthday, he or she will then become a restricted person and must seek permission to reside and work until such time that he or she can make application for Bermudian status under section 19 of the said Act. Mr. Speaker, you will appreciate that if a child is adopted in infancy there are occasions when parents may forget that the child must apply for the grant of Bermudian status. The child may then only learn of the deadline after he or she has reached or is over the age of 22. The proposed amendment will allow nonBermudian children under the age of 18 who are Commonwealth citizens to obtain Bermudian status where that child: (a) is adopted in Bermuda under the Adoption of Childr en Act 2006 and on the date of adoption one of his adoptive parents possesses Bermudian status; or (b) is adopted outside Bermuda in an approved country, under the Hague Convention on the Protection of Children and Cooperation in Respect of Inter -Country A doption, where such overseas adoption is recognised by the law of Bermuda and on the date of this adoption one of his adoptive parents possesses Bermudian status and is domiciled in Bermuda. Mr. Speaker, for a child to be eligible for the automatic acquisi tion of Bermudian status the ado ption process must be initiated before the child’s 16 th birthday and must be completed before the child turns 18. The former requirement has a dual purpose: (1) accommodating any administrative delays in the adoption process ; and (2) avoiding a probability of an adoption application being submitted where the child will become an adult before the process is completed. Mr. Speaker, this is the first of the legislative reforms under the Pathways to Status initiative and the enac tment of the Bill will give security by the automatic privilege of Bermudian status to adopted children. I am extremely appreciative of the work pr oduced by the Working Group whose membership i ncludes Mr. William Madeiros (Chairman), Ms. Crystal Caesar, Mr s. Malika Cartwright, Mr. Dennis Fagundo, Mr. Stephen Todd, Ms. Lynne Winfield, Mr. Gordon Woolridge, Mrs. Belinda Wright, Honourable Members of the House MP Walton Brown and MP Marc Petti ngill, and Mr. Marvin Hanna, the Group’s recording secretary. Mr. S peaker, I now move that the Bill entitled Bermuda Immigration and Protection Amendment (Adoption) Act 2016 be read the second time and I will take my seat. Thank you.
The SpeakerThe SpeakerThank you, Attorney General . The Chair will now recognise the Honourable Acting Leader of the Opposition, MP Walter Roban. 2520 13 July 2016 Official Hansard Report Bermuda House of Assembly You have the floor.
Mr. Walter H. RobanThank you very much, Mr. Speaker. I wish to firstly say that we are supportive of these amendments as has been presented by the Government. We had always stated publicly that we were supportive of any provisions that were to come forth from the discussions of the Working Group that …
Thank you very much, Mr. Speaker. I wish to firstly say that we are supportive of these amendments as has been presented by the Government. We had always stated publicly that we were supportive of any provisions that were to come forth from the discussions of the Working Group that dealt with the adoption question. That was always a matter that we, on this side, had said we support any measures to rectify any chall enges that had been experienced in the past by families in this area. And we recognise that how the law had been crafted and had been operating did create some distress and some displacement of families in a manner that needed to be corrected. So we are s upportive of the fact that this pr ovision is going to allow a child who is adopted by at least one Bermudian parent or a family —a Bermudian family —upon the adoption recognised by the Bermuda law, they become Bermudian. I think that is . . . we believe that that is the right thing. As the Attorney General has articulated, it is in keeping with international practice and what is seen as being best for fa mily life and the stability of family life, so we are happy to support the changes being made to section 16 and section 18 and the provisions that are going to normalise it with the Children Act as well. Thank you very much, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you, Honourable Member. The Chair will now recognise the Deputy Speaker from constituency 5, no 4, excuse me.
Mrs. Suzann Roberts -HolshouserThank you very much, Mr. Speaker. I just wanted to take the opportunity as an adoptive parent to stand to my feet today to salute and congratulate the Minister, the Government, for seeing this portion of the Bermuda Immigration and Protection Amendment Act through. Mr. Speaker, adopting a child is …
Thank you very much, Mr. Speaker. I just wanted to take the opportunity as an adoptive parent to stand to my feet today to salute and congratulate the Minister, the Government, for seeing this portion of the Bermuda Immigration and Protection Amendment Act through. Mr. Speaker, adopting a child is one of the most, I believe —one of the most —stressful cha llenges that we have going forward. Not only is it stressful for potential adoptive parents, there is a lot of thought that has to go into adopting a child. And one of the things that . . . as we are members of the Hague Convention, one of the auspices of the Hague Convention is the safety and well -being of our chi ldren. And so, therefore, as we follow within the remit of the Hague Convention, I am pleased to see that with the Bermuda Immigration changes that we recognise the child of adoptive parents and recognise that they should have the stability of the nationality of their parent. Mr. Speaker, what we are offering to our child and, therefore, society is the stability that every child deserves, whether they are from broken homes, whether they have been put in orphanages from around the world, I would take this opportunity, Mr. Speaker, to ask people in our society to look outside their own family, look outside their own hearts and take into consideration the possibility of adopting a child, be it from Bermuda—and in Bermuda there are a number of children, Mr. Speaker, who are in our foster care systems who would love to have an opport unity of stability. There are children around the world who would also love to have the opportunity of stabi lity, a safe home. And I can think of nothing better than adopting a child, raising them as your own, and a country gi ving it the stability that that child deserves. So once again, Mr. Speaker, I take this brief opportunity to extend my gratitude and thanks to not only the Minister, but also to the departments that have played an important part in seeing this through. Thank you, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you, thank you, Honourable Member. The Chair will now recognise the Member from constituency 17, MP Walton Brown. You have the floor.
Mr. Walton BrownYes, thank you, Mr. Speaker. Mr. Speaker, I think it is important to provide some of the context for this legislation for the sake of the record and to ensure that there is full awareness and understanding on the part of the public about what it is that is taking …
Yes, thank you, Mr. Speaker. Mr. Speaker, I think it is important to provide some of the context for this legislation for the sake of the record and to ensure that there is full awareness and understanding on the part of the public about what it is that is taking place. You will note that a few months ago we had an unprecedented development take place on these grounds. We had Parliament shut down for a week — over a week —because the people demonstrated their concern about the manner in which immigration legi slation was being proposed. You will know that for a number of years there was an effort on the part of Members on this side of the House to have collaboration on immigration reform precisely because immigration remains one of our more contentious issues, precisely because a unilateral approach is inherently divisive, and despite that recognition the Government had initially proposed a very broad and what many considered to be sweeping approach to immigration, which was not reflective of either collaboration or an understanding of the sens itivities tha t existed around the issue. And so the people did what they felt was r equired of them to do. I was accused of acting in an unlawful manner because I believed very strongly that we needed to stop the proposed legislation. And I will stand in this House and say, Mr. Speaker, with full respect to you, no disrespect to you whatsoever, but if we had to face a similar situation yet again, that I would do exactly the same thing because we were obliged to do so based on what the likely outcome would have been.
Bermuda House of Assembly In the end, Mr. Speaker, the Government did accept that collaboration was a far better alternative than increased tension and possible instability in the country. And I am hoping that we can have this kind of collaboration on critical issues going forward because unilateralism does not do well for anyone. Bermuda took a hit because of it. But as I say , it was absolutely necessary. I just want to make one point about the strat egies that were adopted because there was extensive criticism of the role of civil diso bedience to bring us to the point where Government would accept collabor ation. We are here as Members of the Legislature and so we pass laws. But some laws, Mr. Speaker, are unjust. Some laws are inherently problematic. And when you face such dramatic legi slation or proposed legislation, civil disobedience is an appropriate r esponse. It is okay and it is something that is part and parcel of a democratic society to embrace that. There are consequences to engage in civil disobedience and the people that I was involved with, we were fully aware and fully accepting of any consequence of our commitment to civil disobedience to bring about a more appropriate means of addressing these issues. So I think it is just important to state that for the record because we are here today talking about a piece of legislation and 10 years from now, 20 years from now, someone reading the Hansard would have no idea what the context was. It would be almost as if the Government had just decided that it wanted to propose an amendment to the Immigration Law r egarding adoption, but that is not the case. So context is important and it is important that Hansard reflect that context. The outcome of the Government commitment to withdraw the Bill . . . I was very surprised when I heard t he Attorney General say this was the first part of the Pathways to Status Bill. I do not know whether that was just political posturing or if he misspoke. Oh, he just read his brief. But the Minister needs to do bet-ter. He cannot simply say because he read his brief it is justifiable. You need to read your brief and agree with what you read.
[Inaudible interjection]
Mr. Walton BrownYou will address it. Okay. So this is not part of the . . . this is not the first step of the Pathways to Status Bill ; it is part of a collaborative undertaking by the Government with key stakeholders to address these issues , and we are making …
You will address it. Okay. So this is not part of the . . . this is not the first step of the Pathways to Status Bill ; it is part of a collaborative undertaking by the Government with key stakeholders to address these issues , and we are making progress. The Immigration Reform Working Group, we have been meeting since April to look at these issues. The Government has proposed a series of steps in order to accomplish these goals, but the working group has the autonomy and has the power under the Letter of Agreement that empowered this working group to have flexibility both in terms of dates and schedules that have been adopted, as well as the s equence with which we look at issues. And so we have decided, in dealing with i ssues of children and families and family status, that the first issue would be that of adoption. And we also stated–– and we were in regular contact with the Honourable Premier ––that the initial deadline proposed was unrealistic because part of what we had to do was ensure that there was genuine collaboration. How could we protest about the need for collaboration and then simply meet among a group of 10 people and come up with proposed legislation? So we collaborated. We identified key stakeholders, we sent out press releases and invitations to people to be able to make submissions on this issue. Many people saw the issue of adoption as low -lying fruit that would be easily and readily agreed upon, but our obligation and our commitment as a working group was to engage in co llaboration. So we had one public meeting where we got lots of information submitted to us. We had a lot of technical input from technical officers in the Gover nment. And we had some unexpected findings which led to a proposal which the Government has largely adopted, although they have made one modification to make it much more legally sound in term s of the age of adoption. We had believed initial ly that for most of the adoptions the children were around the age of five or six. When we did our research, we found that the vast majority were age 12 and over. So that created a very different sort of consideration and we were compelled to recognise tha t you could not legally treat an adopted child at age 13 any different than you would treat an adopted child age 4 or 5 and so that is why we proposed that it be a higher age of 16 so that it could be completed by the age of 18. We also were informed and our research confirmed that , on average, there are about five or six adoptions a year of foreign- born children. The adoption process is very rigorous. It is not for the faint - hearted. Some people apply and never go through with it because it is a very rigor ous process and, therefore, it does not lend itself to abuse. So we are comforted by the excellent work performed by the staff that works in Child and Family Services in terms of the assessment process, so we are comforted by that. The numbers are low enough that it creates no fundamental challenge, although, if all of a sudden you saw a massive increase in the number of parents seeking adoption of children, that might give pause for concern, given that over the last 20 years the numbers have been about fiv e or six [per year] . In most of these cases —in almost all of these cases —the adopted child is the child of the spouse, the foreign-born spouse. So it is the stepchild of the Bermudian parent and we believe that there should be an abs olute commitment to ens uring that there is integrity in the family unit and, therefore, a relatively easy matter to proceed with. 2522 13 July 2016 Official Hansard Report
Bermuda House of Assembly So, Mr. Speaker, this is the first part of an ongoing process of collaboration and engagement with the community, and we are now set to consider our next issue, which is the issue of what is called “mixed status families.” And when we say “mixed status ,” it does not mean Bermuda status, it means people who have different levels of permission to reside in Bermuda and the powers that are attached to it, i.e., PRCs, Bermuda status, and so forth. So that is the next step of the working group. Just for the listening audience and Members of this Honourable House, the working group met three times weekly for the first two months, and we now stepped our schedul e down to twice weekly for a minimum of two hours per meeting. And I would ve nture to say, Mr. Speaker, that every member on that group takes his or her responsibilities very seriously. We do so because we are fundamentally committed to having a proper res earch- based approach to immigr ation reform that balances a number of competing i nterests. And I dare say, without trumpeting our horn too much, that we are perhaps the hardest working Government committee because of the frequency with which we meet.
[Inau dible interjection]
Mr. Walton BrownI am not used to being heckled by my own colleagues, so I do not even know how to r espond to that, Mr. Speaker. Mr. Speaker, what I will say is that this is an encouraging first step. We have a good working rel ations hip with both the …
I am not used to being heckled by my own colleagues, so I do not even know how to r espond to that, Mr. Speaker. Mr. Speaker, what I will say is that this is an encouraging first step. We have a good working rel ations hip with both the Premier ; the President of the Bermuda Industrial Union, Mr. Chris Furbert ; and the Leader of the People’s Campaign, Reverend Tweed. We believe this is a sound template for going forward and I would hope that we could adopt the same te mplate when it comes to other contentious issues. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you very much, Honourable Member. The Chair will now recognise the member from constituency 33, MP Jamahl Simmons. You have the floor.
Mr. Jamahl S. SimmonsThank you very much, Mr. Speaker. I would like to echo my colleague’s sentiment and I do think that a very important lesson was learned during those brief weeks . . . brief days of pr otest around this House. I think a lesson, not just for the Government, but …
Thank you very much, Mr. Speaker. I would like to echo my colleague’s sentiment and I do think that a very important lesson was learned during those brief weeks . . . brief days of pr otest around this House. I think a lesson, not just for the Government, but for all future Governments. A former Premier, Premier Alex Scott, used to say , Bermuda works best when we work together. Alex Scott, Premier Alex Scott —Bermuda works best when we work together. And on immigration with the history of abuse, the history of discrimination, the history of injustice surrounding this, it is more critical than ever to believe that immigration works best when we work together. We owe a tremendous debt to people like Enda Mathie, Reverend Tweed, the leaders of the BIU and the unio ns, people who stepped out and made their voices heard and got the Government to understand that we must work together. This, I think, is really . . . when we look at how the collaborative efforts have enhanced, in this as-pect, what the Government wanted to do and taking it to another level, it merely reinforces the point that we work best when we work together. And I hope that this will be reflected in the other legislation that comes forward from the Government that the collaboration, work , and contribut ion of people will make this som ething more productive and something that we can all agree on. But it is clear that comprehensive immigration reform is needed. It is needed and we will continue to push for that on this side as we go forward from this legislation, which we do support. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you very much, Honourable Member. The Chair now recognises the Honourable Member from constituency 5, MP D. V. Burgess. Hon. Derrick V. Burgess, Sr.: Thank you, Mr. Speaker. Mr. Speaker, I just want to make some points clear . I will be very brief on this here. This is …
Thank you very much, Honourable Member. The Chair now recognises the Honourable Member from constituency 5, MP D. V. Burgess. Hon. Derrick V. Burgess, Sr.: Thank you, Mr. Speaker. Mr. Speaker, I just want to make some points clear . I will be very brief on this here. This is not a Government committee. This is a committee that was formed based on the campaign that was headed by the Bermuda Industrial Union, the BPSA, and Reverend Tweed f rom the People’s Campaign. Had it been a Government c ommittee, it would have been six Government Members, five O pposition Members, and that is normal, [I have] no di sagreement. But with this committee it is evensteven —if the c ommittee is 10, it would be 5 of one side, 5 of the other side. So I am very happy about that. Mr. Speaker, being a parent of some adopted children I have some concerns about this Bill where one can adopt a child up to the age of one day less than 18 years old. I think at that age, if you adopt somebody at 17 you are really adopting a woman or a man. You know , I really think the age limit should be lower , at least . . . just as high as 15, maximum, but I think going past that I think we are adopting adults. In some jurisdictions that is what it is, it would be adults. So, Mr. Speaker, I am not very happy with that part of the Bill, certainly we will speak more about it when we go into Committee. But I am certainly glad that we have a committee that is working together, you know, whic h bodes well for the country, partic ularly on a Bill such as the Bermuda Immigration and Protection Act , and “protection” is a very serious word
Bermuda House of Assembly when we mention this Act because we only have 22 square miles , and we have to protect that. As you know, most of the immigration matters in the history of this country have been forced upon us in order to get the demographics of white and black to almost even. Because as has been said in a conference, a forum held just recently , had it been left alone [in Bermuda] like it was in the Caribbean, the popul ation would have been less than 3 per cent of whites, and the rest being black as it is in most Caribbean countries. So every aspect of our immigration has been forced upon us , and just what happened the other day, we are giving loads of people status as if we have hundreds and hundreds of acres and miles of land to inhabit , but we do not. And so that is why we had to protest, because we believe that there should be immigration reform and more so because of the size of this country , and we must protect it. In fact , it was the last Government —the UBP Government — that put a quota of 40 per year on the granting of Bermuda status , and it is something that we probably should stick with—40 or less —because of our size. Yes, you need people to make money and to stimulate the economy as most people say, but at the same time we have to protect the future of this country, we have to protect jobs for our citizens, our young folks, because there are many of our young folks co ming back home , you are seeing it in the media r ecently, people coming back with degrees, master ’s degrees, and Bermudians cannot find suitable employment , particularly black Bermudians cannot find suitable employment. So anything we do on immigration is a sens itive issue to all Bermudians because of our size. And so, Mr. Speaker, whilst I support most of what is in this Bill, I have some concerns. Thank you.
The SpeakerThe SpeakerAll right. Thank you, Honourable Member. The Chair will now recognise the Honourable Member f rom constituency 21, MP Rolfe Commi ssiong. You have the floor.
Mr. Rolfe CommissiongMr. Speaker, thank you for acknowledging me. The Bermuda Immigration and Protection Amendment (Adoption) Act 2016 I think does repr esent what a previous Member had characterised as being the low -hanging fruit out of the suite of tasks that have been attached to that committee, which, as the Member …
Mr. Speaker, thank you for acknowledging me. The Bermuda Immigration and Protection Amendment (Adoption) Act 2016 I think does repr esent what a previous Member had characterised as being the low -hanging fruit out of the suite of tasks that have been attached to that committee, which, as the Member from constituency 5 pointed out, was formed out of the unprecedented protest that occurred around this House. And an agreement between the Government and principally the BIU and its key ass ociates who led that effort, not exclusively, but with the support of organisations such as IRAG, but more i m-portantly, the Bermudian people who were there in the thousands. It is wise that this be the first piece of pr oposed legislation that comes out of that agreed effort because it can assist , I believe, in contributing to the people of Bermuda having growing confidence in this collaborative process. And so I welcome this today as the first step. I would just, by way of an aside, note that my Honourable Member did not get it exactly right, the threshold is at 16 years of age as it states here and not higher than that. Nonetheless , immigration has been the third rail of Bermuda politics for a very long time and it has been one that has been fraught with racial, class, and immigration —purely immigration— issues that have frequently roiled Bermuda because they are so tied in to the most salient divides that have characterised this society over the last 50 or 60 years, although it goes way before that. But in the modern era, in particular, immigration was used as a tool by which the racial oppression of principally persons of African descent was effectuated, coming out of the 1960s with the ad-vent of universal adult suffrage. Racial oppression to the extent that it was designed to maintain, partic ularly, Anglo -Saxon, white hegemony over Bermuda’s political affairs. Immigration was a chief tool to realise that. And so, again, as we saw in March, it h ad the impact of causing deep- seated wounds to be touched in a way that resonated throughout the community. Mr. Speaker, again, we support, as has been indicated by the Shadow Minister, who I think summed it up quite, quite appropriately , we support this f irst step. I want to just make one little note before we probably hear from other Members and then move into Committee. I think we need to be careful that we do not indulge in what I would term invidious comparisons. The Attorney General did use the term “Pathways to Status.” We do not need anything that is going to cause growing disquiet and unrest amongst those who again place their confidence in this process. He says he will address it later, and I hope he will , and I hope that he will not continue to use that nomencl ature. Once again, we support this on this side and I thank you for your indulgence.
The SpeakerThe SpeakerThank you, Honourable Member. The Chair will now recognise the Honourable and Learned Member from constituency 32 [sic], MP Shawn Crockwell. You have the floor.
Mr. Shawn G. CrockwellYes, thank you. 2524 13 July 2016 Official Hansard Report Bermuda House of Assembly The Speaker: Thirty -two is my constituency number.
Mr. Shawn G. CrockwellYes, it is. You always want to put me i n your constituency, Mr. Speaker. Thank you. Mr. Speaker, I certainly understand the purpose of this Act which is to correct a mischief where you have children who are adopted by Bermudians or a parent with Bermudian status not being …
Yes, it is. You always want to put me i n your constituency, Mr. Speaker. Thank you. Mr. Speaker, I certainly understand the purpose of this Act which is to correct a mischief where you have children who are adopted by Bermudians or a parent with Bermudian status not being deemed to be . . . or not having Bermudian status themselves. So, again, this was one of the uncontroversial aspects of the entire immigration reform that was ad-dressed. And you would note, Mr. Speaker, that there is no one outside protesting, no one is objecting to this amendment because, by and large, most of the issues that are being addressed from an immigration perspective are not objected to by the majority of ind ividuals, particularly those that I speak to. Even the one that is considered to be more controversial, and that is individuals who have been here for 15, 20 years and the like, most people understand that in those circumstances that individual has developed an expectation. So I believe the fact that we are here today, there seems to be no objection, there has absolutely been no issue or I have not heard any commentators out there being critical of this move , and so I think sometimes it is indeed the method rather than the initiative. And again, if we would have addressed this approach in this way in the first instance I think that we would have been able to achieve some things in collaboration and we would not have the animus around this issue. But there is one thing that I do not quite get, Mr. Speaker, in the Bill. And that is the fact that the Bill, and we can probably delve into it more in Committee, but the Bill allows an individual . . . so where, on or after commencement of the section, the individual is both a Commonwealth citizen and under the age of 18. So we have had two Members already talk about the age 18. And someone else said no, it is 16. So for clarification the child has to be under 18, but the adoption proceedings must be initiated before the child’s 16 th birthday. I just do not understand why. I have gone through the Act . I will go through it again, trying to ascertain the justification for that , because it does not take two years , normally , for an adoption to go through. There could be some issues which can make it complex and long, a long process, a protracted process. But to me it seems t o be creating another loophole . . . not a loophole, but creating another mischief in that if you have someone who is being adopted by Bermudians . . . and this is . . . I heard the Honourable Member from [constituency] 5 talking about , Well, at this age y ou are talking about almost adults. But that is not why people are availing themselves of this section. They are availing them-selves of this section, not because they are trying to adopt a child to have a family and have a family life with that child, they are availing themselves of this section because they want that child to have access to status , is what I am understanding. So in the event that you have a situation where maybe the child was adopted in another juri sdiction by a Bermudian, but they are not in possession of Bermudian status, they may want to adopt that child in that child’s later years now because they want that child to have Bermudi an status and this is going to grant them Bermudi an status. Why not allow the child, any child under the age of 18? Why have that period between 16 and 18 where the child would not qualify? I just do not understand why they said 18, but the application has to be initiated before their 16 th birthday. So we could have a child right now who is 17 or 18 and that chil d has a Bermudian parent and they want to get adopted here in Bermuda so they can avail themselves of this Act, it seems as if they would not qualify. Even if the process takes two years and the child becomes 20, but the purpose is they want that child to have Bermudian status, which would be a long-term benefit to the child. So I just do not quite understand why the restriction of initiating the pr oceedings before the 16 th birthday. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you, Honourable Member. Is th ere any other Honourable Member who would care to speak? Then the Chair will revert back to the Attorney General . Attorney General , you have the floor. Hon. Trevor G. Moniz: Thank you, Mr. Speaker. There are only a couple of points there …
Thank you, Honourable Member. Is th ere any other Honourable Member who would care to speak? Then the Chair will revert back to the Attorney General . Attorney General , you have the floor.
Hon. Trevor G. Moniz: Thank you, Mr. Speaker. There are only a couple of points there which I really need to address. One of the Honourable Members was extremely sensitive to the use of the words “Pathways ,” but you know , effectively what the working group is looking at are the proposals that were contained in the Bill that was originally tabled in the House, which was called “Pathways.” So I think they are putting too much weight upon that. As Members understand, I am filling in for the Minister and reading the brief that was supplied to the Minister. I am not making my own speech. I am trying to keep editorial to an absolute minimum. I am trying to do that. With respect to the Honourable Member from constituency 17, Walton Brown, he also mentioned “mixed status” couples as the next sort of tr anche that they are looking at. And I hope there they are al so looking generally at children who are born in Bermuda and know no other home. So sometimes you have children grow up [here] who know no other home. S o, is that not part of that?
[Inaudible interjection]
Bermuda House of Assembly Hon. Trevor G. Moniz: Okay, okay. With respect to the protest, as I say, I am going beyond the brief here and it was not addressed in the brief at all. With respect to the protest, and this is sort of a personal statement, from my point of view , I understood the emotion that people felt at the time. The approach that was taken did not allow the time for consultation that would be desirable because of a v ariety of matters, which the Minister at the time took into effect. And I understand the protest . I understand the upset of people . I do not condone il legal actions. So my own view was that the extent of illegal actions and bad behaviour was not called for and I do know that the organisers of the protest tried to keep that to a minimum, but at times it seemed in danger of getting out of control. So these are unfortunate situations all around. With respect to the point made by the Honourable Member , Mr. Crockwell , the situation here is that the . . . I have been handed a copy of the Ado ption of Children Regulations 2013 and section 4 of that or regulation 4 in subregulation (2) says “A parent or guardian who wishes the Director to place a child for adoption shall, not less than twenty -four months before the date on which the child attains the age of eighteen years —[(a)] make a request” for the plac ement. So normal adoptions take a time of 24 months, so they take that period of time in any case. Now, I am not sure if that applies in the case of stepchildren and in the case of . . . I do not want to go too much into what we are doing in Committee, but in the case of stepchildren, under the main Act you have a provision whereby a stepchild is deemed to enjoy Bermudian status under section 16 of the 1956 Act. And , you know, provided they are deemed, I think for five years, they can apply . As long as they apply before the age of 22 they will get their status in any case. So it is not that these children were not getting that status. They were getting it. This provides for i nstantaneous status. And what we are dealing with today is really a tiny point, so I mean my personal view is I am su rprised it took this long. I am hoping the committee will be able to move much more efficiently now on much larger issues.
[Inaudible interjection]
Hon. Trevor G. Moniz: Well, this was not very eff icient in my view, but anyway. [Inaudible interjection]
Hon. Trevor G. Moniz: That is just my view. And I now move that the Bill be committed.
The SpeakerThe SpeakerAll right. Thank you, Attorney General . It has been moved that the Bill be committed. Are there a ny objections? There are none, so Deputy [Speaker] please take the Chair [of Committee] . House in Committee at 3:58 pm [Mrs. Suzann Roberts -Holshouser, Chairman] COMMITTEE ON BILL BERMUDA IMMIGRATION …
The ChairmanChairmanMembers, we are no w in Committee of the whole House for further consideration of the Bill entitled Bermuda Immigration and Protection Amendment (Adoption) Act 2016 . I call on the Attorney General. Hon. Trevor G. Moniz: Thank you, thank you, Madam Chairman. I move clauses 1 through 4.
The ChairmanChairmanIt has been moved, clauses 1 through 4. Are there any objections to that motion? No objections. Agreed to. Hon. Trevor G. Moniz: The Bill seeks to amend the Bermuda Immigration and Protection Act 1956 to pr ovide for the automatic acquisition of Bermudian status by adoption. Clause 1 g …
It has been moved, clauses 1 through 4. Are there any objections to that motion? No objections. Agreed to.
Hon. Trevor G. Moniz: The Bill seeks to amend the Bermuda Immigration and Protection Act 1956 to pr ovide for the automatic acquisition of Bermudian status by adoption. Clause 1 g ives the citation and it is self - explanatory. Clause 2 amends section 16(2B) to include a reference to section 18AA (inserted by clause 3). Clause 3 inserts section 18AA (acquisition of Bermudian status by adoption). Currently, under sec-tion 16(2), every child adopted (in a manner recognised by Bermudian law) by a person who has Bermudian status is “deemed” to possess Bermudian status. But, in order to acquire (actual) Bermudian status, that person must, after he reaches the age of 18, but before reaching 22, apply under section 20 to be granted Bermudian status. Section 18AA provides for automatic (actual) Bermudian status to be acquired by a child who is legally adopted by a person with Bermudian status, provided the adoption is initiated before the chil d’s sixteenth birthday. Or in the case of a child who is already adopted, if on the date of enactment of this Bill the child is under the age of 18, on the date of enactment shall become Bermudian. Clause 4 is a consequential amendment to the Government Fees Regulations 1976. Thank you, Madam Chairman.
2526 13 July 2016 Official Hansard Report
Bermuda House of Assembly The Chairman: Thank you. Are there any Members that would like to speak to clauses 1 through 4? The Chair recognises the Member from constituency 15, Mr. W H. Roban. You have the fl oor.
Mr. Walter H. Rob anThank you, Madam Chairman. My one question relates to clause 3 section (3)(b) the description of “approved jurisdiction.” I do not know if the Honourable Minister [can provide] (because he is sitting for the principal Minister ) the defin ition of “appr oved jurisdiction. ” Is there a list of …
Thank you, Madam Chairman. My one question relates to clause 3 section (3)(b) the description of “approved jurisdiction.” I do not know if the Honourable Minister [can provide] (because he is sitting for the principal Minister ) the defin ition of “appr oved jurisdiction. ” Is there a list of countries which it refers to or is it just a description of what an “approved jurisdiction” is in the Adoption Act?
Hon. Trevor G. Moniz: Madam Chairman, I believe that refers to the Hague Convention. They must be a country that is a Hague Convention signatory, which is a very broad range of countries.
The ChairmanChairmanThank you. Are there any other Members that would like to ask any questions on clauses 1 through 4? The Chair recognises the Member from constituency 17.
Mr. Walton BrownYes, thank you, Madam Chairman. The Hague [Convention] list of countries, there are about 80 countries that are on the list , and it means that they are in compliance with internationally approved standards for adoption to ensure that there is parental consent, there is a proper vetting of the …
Yes, thank you, Madam Chairman. The Hague [Convention] list of countries, there are about 80 countries that are on the list , and it means that they are in compliance with internationally approved standards for adoption to ensure that there is parental consent, there is a proper vetting of the application, so that any adoption that will be recognised in Bermuda is facilitated, made easier, by having the Hague Convention country listed. If there is not a Hague Convention country where t he child has been adopted, then that can still be recognised, but it just becomes a little bit more challenging. On the other point regarding the distinction between “deemed” to be Bermudian and actually b ecoming or holding Bermuda status, many have seen this as being a distinction with no difference. But in practice there is a significant difference to a young person, for example, applying for a scholarship, because if the application says that person needs to show their Bermuda status certificate, and yo u are deemed to be Bermudian but you do not hold Bermuda status, you cannot apply for that scholarship. So it does create a practical challenge for a student seeking financing. Also, if you want to represent Bermuda internationally in a sporting event and you have to demonstrate that you are an actual citizen of that country, countries do not recognise our creations of “deemed to be” and so forth, so if you do not have Bermuda status then you will not in many (not all , but in many ) instances not be able to actually represent Bermuda.
The ChairmanChairmanThank you very much, Member. Are there any other Members that would like to speak to clauses 1 through 4? The Chair recognises the Member from constituency 31.
Mr. Shawn G. CrockwellThank you, Madam Chairman. In relation to the “deemed” Bermudian, I have never liked that. I have never liked the fact that som eone is “deemed” to be a Bermudian and, therefore, was the benefit that . . . and the Honourable Member who just spoke explained that they do …
Thank you, Madam Chairman. In relation to the “deemed” Bermudian, I have never liked that. I have never liked the fact that som eone is “deemed” to be a Bermudian and, therefore, was the benefit that . . . and the Honourable Member who just spoke explained that they do not actuall y get all the benefits that a Bermudian would have. I have had numerous situations where people have come to me—parents —and said that, you know, either they were not aware or their child was away in school , or for some reason they missed their 22 nd birthday , and then they have a nightmare on their hands to try and address out of time. And so I have never really understood why . In my view, if the child has a parent that is Bermudian the child should enjoy the rights as Bermudian. But that could be a whole o ther debate that I do not want to get into. I am just going to raise again the issue in clause 3, [new section 18AA] (1) because I still just do not understand why we have two ages here. If we are being told that these adoptions take 24 months and, therefore, you need to initiate it before you are 16 so that you can get it before you are 18, then make the age 16. Just make it so all the children under 16 can apply. To say you are under 18 but you have got to apply before you are 16 just seems unnecessarily cumbersome to me. But 24 months may make logical sense in relation to a fresh adoption because you have pr ospective adoptive parents who are interested in an available child for adoption and Family Services must satisfy themselves: (1) that the home envir onment is suitable; (2) that the proposed parents and the child will get along . . . there is a long process that Child and Family Services must go through before they are satisfied that this is a good match and that the child will benefit from it, the par ents will benefit from it, and the like. When you are talking about a child that is a lready adopted, has been living with these parents for years, the child is a teenager in some cases, surely that 24 months is going to be truncated significantly because no one needs to establish their suitability and the like. You may want to go and check and the like, do your due diligence, but I would assume that you are dealing with an advanced case because the child has already been under the care and supervision, et cetera, of these parents. This is just a formality to re- adopt the child in this jurisdiction for the purposes of why we are pas sBermuda House of Assembly ing this legislation today. So I do not see why it would take 24 months, but I just do not understand why we are setting the age at 18 years, but saying do not apply if you are past the age of 16 just does not make sense to me.
The ChairmanChairmanThank you, Member. The Chair recognises the Member from constituency 17.
Mr. Walton BrownThank you, Madam Chairman. I just find it ric h when a lawyer says that a piece of legislation is cumbersome. I mean, I thought that was their stock in trade, to deal with cumbersome matters, because— [Inaudible interjection]
Mr. Walton BrownOkay. So I just found that interesting. But just for cl arification on the Honourable and Learned Member’s point, a lot of these cases are not actually a child who has been living with the prospective adoptee for long periods of time. These are situations, for example, and practical situations …
Okay. So I just found that interesting. But just for cl arification on the Honourable and Learned Member’s point, a lot of these cases are not actually a child who has been living with the prospective adoptee for long periods of time. These are situations, for example, and practical situations where someone has gone off to say another country and within a week has fallen in love and gotten married. And then the new spouse has a child who is 13 or 14 years old and the spouse, naturally, wants to ensure . . . and in many cases it is a “she, ” that she is united with her children in her new country where she has fallen madly in love with this guy. And so the Department of Child and Family Services do have to do extensive examination. So in many cases it is not the situation where they have been living with the parents for a long period of time, it is relatively new. And if it is only five or six cases a year, I could think of at least two cases each year where these matters are being assessed.
The ChairmanChairmanThank you, Member. The Chair recognises the Member from constituency 5. Hon. Derrick V. Burgess, Sr.: Thank you, Madam Chairman. Madam Chairman, on [clause] 3 [new section 18AA] it says that . . . well, may I read from there?
The ChairmanChairmanYes, you may. Hon. Derrick V. Burgess, Sr.: It says “ [(1)] Where, on or after commencement of this section, a person not possessing Bermudian status who, on the date of his adoption, is both a Commonwealth citizen and under the age of 18 years” —and it goes on to …
Yes, you may. Hon. Derrick V. Burgess, Sr.: It says “ [(1)] Where, on or after commencement of this section, a person not possessing Bermudian status who, on the date of his adoption, is both a Commonwealth citizen and under the age of 18 years” —and it goes on to say in (a) —“is adopted in Bermuda under the Adoption of Childre n Act 2006, and on the date of his adoption, one of his adoptive parents possesses Bermudian status ; or . . .” Well, [sub- clause] (b), I think, and again, it says “or” now is either [sub- clause] (a) or (b) is what it says. Now, [section 18AA(1)] (b) says “is adopted outside Bermuda, under the law of an approved jurisdi ction.” Probably you should be saying just in [subclause] (a) after “Bermudian status” it should be in accordance with Bermuda law . Because, you know, in some jurisdictions you have children at 14 who have done something wrong and can be tried as an adult. So it should be “in accordance with Bermuda law.” That is what it should be. And then in, also in [section 18AA] (2) , to take from the Honourable and Learned Member , Mr. Crockwell , is about the children can, you know, the initiation of this adoption must start before they are 16 . Well, I think it should be 16 because, again, if you adopt somebody at 17, you are adopting an adult. You know , and the only reason they want to be here is to enjoy the privileges of Bermuda. Is there one . . . you know, I mean, you adopt children. When we look at adoption, most people are looking at adoption as adopting a child; that is what you are looking at. But when one goes 16, 14, you know, they are establis hed in their ways of life. Some of them have done some things that the parents are not proud of, nor is the country proud of. Do we want to take that on? And it has no criteria in here as far as the record of these children. And that should be in here, Mad am Chairman, because as I will say again, during their time in Bermuda it may be still in place, when you have done something wrong you can be sentenced to a period of corrective training at 16. And they used to call it “9 to 3” when I was a little boy —“9 to 3” meant 9 months to 3 years. At 16 they could give you that sen-tence. So we have nothing in here. We could be adopting children that have some problems, have some anti -social behaviour problems. No country needs more of that, particularly a country of our size. And that should be clarified somewhere in here that if , Derrick, you want to adopt somebody then they must come with a clean record —as simple as that. Thank you.
The ChairmanChairmanThank you, Member. The Chair recognises the Member from constituency 36. Hon. Michael J. Scott: Thank you, Madam Chairman. May I just weigh in on the knot or the conundrum that the Honourable Member from [constit uency] 5 is presenting? I did look at the principal Act, the 1957 Act, …
Thank you, Member. The Chair recognises the Member from constituency 36.
Hon. Michael J. Scott: Thank you, Madam Chairman. May I just weigh in on the knot or the conundrum that the Honourable Member from [constit uency] 5 is presenting? I did look at the principal Act, the 1957 Act, and there is a definition there for “dependent.” And as the Learned Attorney [General] has indicated, ste pchildren are included in that definition of a dependent, but the concept of dependent is also part of the defi ning criteria for a child too. It says . . . or a dependent is described as a child and so you have a concept of 2528 13 July 2016 Official Hansard Report
Bermuda House of Assembly “dependent” that is featuring in a family structure. And so at 18 you still can be dependent, you may still need to have your university education dealt with. And so we have in the broad rubric of our legislation, and certainly in the parent Act, the concept of dependency includes a stepchild, an adopted child, a number of the normal categories. And I think that begins to ameliorate the concern of just the arithmetic of 16 and 18 because certainly a person can still be dependent at 18, and you do not want . . . and I take this opportunity to embrace the concept that was established in the decision that Mr. Julian H all, my friend, took to the Privy Council, the Fisher case , that had to recognise the whole concept of recogni sing a child belonging to this I sland with the connector of a person who was here. So all of these work and have been working, may I respectfully submit, have been working to try and get us to a rational position about this question of an 18- year-old stil l being accorded this rights of belonging, particularly when they get engaged in a family structure. Thanks.
The ChairmanChairmanThank you very much. Are there any other Members that would like to speak to clauses 1 through 4? There are no other Members. The Chair recognises the Attorney General. Hon. Trevor G. Moniz: Thank you . Thank you, Madam Chairman. With respect to the last comment from the Honourable …
Thank you very much. Are there any other Members that would like to speak to clauses 1 through 4? There are no other Members. The Chair recognises the Attorney General. Hon. Trevor G. Moniz: Thank you . Thank you, Madam Chairman. With respect to the last comment from the Honourable and Learned Shadow Minister, yes, the Fisher case spoke to . . . that case involved a lady who had c hildren who were not born inside of marriage and under the Act they were not included as the dependents of the Bermudian husband. And that case went to the Privy Council , and the Privy Council d ecided that they were protected under the Constitution and the European Convention on the Right to Family Life as belonging to Bermuda, so they were given certain protections. But with the Children Act that has all changed and we progressed from that to a more, more liberal approach. The Honourable and Learned Member , Kim Wilson , pointed out that the Hague list is a little bit restricted in the Adoption of Children Act because there are certain restricted countries on the Hague list. So while the Hague list may be 80 countries, there are certain countries on there which do not quite meet the requirements or have done something wrong and they have been put on restriction. So it is slightly limited. So when the Honourable Member , Mr. Burgess , from constituency 5 raised the point, you know, that is the fear of some peopl e that you might have adoptions . . . and obviously in some countries adoptions can have a negative connotation of slavery , or sexual slavery , or all sorts of untoward things , and that is why we are sticking with the Hague countries and the countries which are not restricted on the Hague list. So they are countries which do not have those issues which have resolved them. As the Honourable Member from constit uency 17 pointed out, there are very few adoptions in Bermuda. So, you are talking about generally a half dozen or less per year. And when you are talking about adoptions from foreign countries you are probably talking about two or three per year , maybe, so it is a very small number. So I do not think we need fear any influx, but if anything , obviously u ntoward was seen by the Immigration Department they would i mmediately take steps to come to the Attorney Ge neral’s Chambers to get the law changed. The Honourable and Learned Member , Mr. Crockwell , raised a point about the 22 nd birthday. You know in our I mmigration Act it says if you are going to apply for status you have to apply for status between the ages of 18 and 22. And if you do not do it by the age of 22, then you are out of luck. And I absolutely agree with him that that is a harsh position for us to take because there is no notice to those people. And it is the parents who are at fault, but the child who suffers. Quite often children grow up thinking they are Bermudian and then it is only at some point when they go to get a job or go to sign up f or something or go for a passport that they suddenly are told, Oh, you’re not Bermudian, and you turned 22 two months ago and you are too late, you are out of luck. So I have seen, unfortunately, cases like that and I think that is an i ssue that the Minist er may want to address in the f uture. I think I pretty well addressed the points that were raised, Madam Chairman.
The ChairmanChairmanThank you. The Chair recognises the Member from constituency 17.
Mr. Walton BrownRight, I just wanted to give one example of how problematic that 18- to 22- year-old period is. I had a student, a very, very bright student, who for some reason decided to enter the Miss Bermuda contest. I forgave her for it. [Laughter]
Mr. Walton BrownShe actually won the contest . She won t he contest and she was designated Miss Bermuda. At the age of 22 she was no longer deemed to be Bermudian and it took her a number of years to . . . I do not know, re- qualify or get …
She actually won the contest . She won t he contest and she was designated Miss Bermuda. At the age of 22 she was no longer deemed to be Bermudian and it took her a number of years to . . . I do not know, re- qualify or get that status back, but she is now a Bermudian. But it just proves the sort of . . . she did not know . She was completely innocent . It was up to her parents to make application, so we have a Miss Bermuda who was “deemed” to be Ber-mudian, and at age 22 she was no longer Bermudian.
Bermuda House of Assembly And that shows of the inherent challenges in the ex isting legislation.
The ChairmanChairmanThank you, Member. The Chair recognises the Attorney General. Hon. Trevor G. Moniz: Yes, Madam Chairman, and just to add to that , you know, in those situations where you have these hard limits it really does require sens itivity and discretion on behalf of the Minister of the day …
Thank you, Member. The Chair recognises the Attorney General. Hon. Trevor G. Moniz: Yes, Madam Chairman, and just to add to that , you know, in those situations where you have these hard limits it really does require sens itivity and discretion on behalf of the Minister of the day and the Immigration Department to help people along. And I have certainly done a lot of it in my practice to direct people when they suddenly discover they are in a very difficult situation. Usually the Minister has the discretion, but some Ministers have more compassion than others . I trust that the Minister who is now sitting beside me— the present Minister —has great compassion for people in those difficult circumstances. But we will look at reviewing that limit nevertheless and it might come up as a recommendation from the group that is meeting, the working group. So it is something maybe— [Inaudible interjection] Hon. Trevor G. Moniz: I never . . . you know, that is right. Madam Chairman, just to understand, I never said that it was simple. It is certainly not simple. And just, again, to address the point by the Honourable and Learned Member , Mr. Crockwell, you know, to some degree you are talking about a compromise here. You know in the UK, I think, they just have the age of 18. It is just , if you adopt a child by the age of 18, once you turned 18 you are not a child anymore so you cannot be adopted after that age. So, you know, that is how they do it in the UK. But that was not the position we were able to arrive at, that is sort of a consensus situation. Thank you, Madam Chairman.
The ChairmanChairmanThank you. Are there any other Members that would like to speak to clauses 1 through 4? If there are none, the Chair recognises the Attorney General. Hon. Trevor G. Moniz: Madam Chairman, I would move clauses 1 through 4.
The ChairmanChairmanIt has been moved that clauses 1 through 4 be approved as printed. Are there any objections to that motion? No objections. Agreed to. [Gavel] [Motion carried: Clauses 1 through 4 passed.] Hon. Trevor G. Moniz: I move the Preamble.
The ChairmanChairmanIt has been moved that the Preamble be approved. Are there any objections to that motion? No objections. Agreed to. [Gavel] Hon. Trevor G. Moniz: I move that the Bill entitled Bermuda Immigration and Protection Amendment (Adoption) Act 2016 be reported to the House as printed.
The ChairmanChairmanAre there any objections to having the Bill entitled Bermuda Immigration and Protection Amendment (Adoption) Act 2016 be appr oved and reported to the House, as printed? No objections. Agreed to. [Gavel] [Motion carried: The Bermuda Immigration and Protection Amendment (Adoption) Act 2016 was consi dered by a Committee of …
Are there any objections to having the Bill entitled Bermuda Immigration and Protection Amendment (Adoption) Act 2016 be appr oved and reported to the House, as printed? No objections. Agreed to.
[Gavel]
[Motion carried: The Bermuda Immigration and Protection Amendment (Adoption) Act 2016 was consi dered by a Committee of the whole House and passed without amendment.]
House r esumed at 4:22 pm
[Hon. K. H. Randolph Horton, Speaker, in the Chair]
REPORT OF COMMITTEE
BERMUDA IMMIGRATION AND PROTECTION AMENDMENT (ADOPTION) ACT 2016
The SpeakerThe SpeakerThank you, Honourable Members. We have had the second reading of the Bermuda Immigr ation and Protection Amendment (Adoption) Act 2016 approved. Order s 14, 15, 16, 17, 18, 19, 20 are carried over. Hon. Trevor G. Moniz: Mr. Speaker.
The SpeakerThe SpeakerYes, we will get to your — Hon. Trevor G. Moniz: I want to do the actual Bill as the Opposit ion have agreed to debate the actual Bill today, so I want to replace the Bill and debate it t oday—the Proceeds of Crime. I have that motion in …
The SpeakerThe SpeakerYes. Wait a minute. I was understanding that — 2530 13 July 2016 Official Hansard Report Bermuda House of Assembly Hon. Trevor G. Moniz: Under Order No. 12, the Pr oceeds of Crime Amendment (No. 2) Act 2016—
The SpeakerThe SpeakerYes, yes. Hon. Trevor G. Moniz: I am going to table the new Bill and the Opposition have agreed we can go ahead— it is uncontroversial —and debate it today to get off the . . . so Frid ay will not be a busy day.
An Hon. Member An Hon. MemberThere is no objection.
The SpeakerThe SpeakerThere is no objection? All right, then I think first of all you will have to withdraw the Bill. Hon. Trevor G. Moniz: Yes.
The SpeakerThe SpeakerYes. WITHDRAWAL OF BILL PROCEEDS OF CRIME AMENDMENT (NO. 2) ACT 2016 [Standing Order 48] Hon. Trevor G. Moniz: I am obliged, Mr. Speaker. Under the provisions of S tanding Order 48, I move to withdraw the Bill entitled the Proceeds of Crime Amendment (No. 2) Act 2016 that was …
Yes.
WITHDRAWAL OF BILL
PROCEEDS OF CRIME AMENDMENT (NO. 2) ACT 2016 [Standing Order 48]
Hon. Trevor G. Moniz: I am obliged, Mr. Speaker. Under the provisions of S tanding Order 48, I move to withdraw the Bill entitled the Proceeds of Crime Amendment (No. 2) Act 2016 that was tabled 1 July 2016.
[Proceeds of Crime Amendment (No. 2) Act 2016 withdrawn.]
The SpeakerThe SpeakerYes? SUSPENSION OF STANDING ORDER 14 Hon. Trevor G. Moniz: I move that Standing Order 14 be suspended to enable me to introduce the first reading of the Bill that has been revised.
The SpeakerThe SpeakerYes? [Motion carried: Standing Order 14 suspended.] BILL FIRST READING PROCEEDS OF CRIME AMENDMENT (NO. 2) ACT 2016 Hon. Trevor G. Moniz: I am introducing and reading the first time by its title a Bill entitled Proceeds of Crim e Amendment (No. 2) Act 2016.
The SpeakerThe SpeakerYes. Hon. Trevor G. Moniz: Which has been distributed to Members.
The SpeakerThe SpeakerYes. And then you are asking that the Bill be— Hon. Trevor G. Moniz: —be set down on the Order Paper.
The SpeakerThe SpeakerNo, no, you ask that the Bill would have to be debated. Hon. Trevor G. Moniz: Then I move that the Bill be debated.
The SpeakerThe SpeakerI think maybe we can, since the Opposition has agreed to do this, then what it does is cut down on the challenge that we had in the previo us Bill that Dr. Gibbons brought where there were all kinds of amendments and so we go straight to the Bill. …
I think maybe we can, since the Opposition has agreed to do this, then what it does is cut down on the challenge that we had in the previo us Bill that Dr. Gibbons brought where there were all kinds of amendments and so we go straight to the Bill. If Members can agree to that , I have no problem with us moving ahead in this way.
Hon. Trevor G. Moniz: I thank you, Mr. Speaker —
The SpeakerThe SpeakerGreat. Hon. Trevor G. Moniz: —and I supplied the Honourable and Learned Shadow Attorney General with a copy of my brief.
The SpeakerThe SpeakerIf you would , that would be very much appreciated. Hon. Trevor G. Moniz: I have done so. BILL SECOND READING PROCEEDS OF CRIME AMENDMENT (NO. 2) ACT 2016 Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I move that the Bill entitled Proceeds of Crime Amendment (No. 2) Act …
The SpeakerThe SpeakerThank you. Are there any objections to that? All right, please carry on, Attorney General . Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I am pleased to introduce to the H onourable House the Proceeds of Crime Amendment (No. 2) Act 2016 to address matters pertinent to Bermuda’s co …
Thank you. Are there any objections to that? All right, please carry on, Attorney General . Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I am pleased to introduce to the H onourable House the Proceeds of Crime Amendment (No. 2) Act 2016 to address matters pertinent to Bermuda’s co mBermuda House of Assembly pliance with international standards and the credibility of Bermuda’s regulatory practices. The Bill amends Bermuda’s Anti -Money Laundering and Anti -Terrorist Financing legislative framework to bring high value dealers and real estate agents, respectively, within the scope of those laws. It will further authorise the Financial Intelligence Agency to make permitted disclosures to the Governor to enable him to discharge his statutory responsibilities under Bermuda’s international sanctions regime. Mr. Speaker, there are also amendments to the Anti -Terrorism (Financial and Other Measures) Act 2004 to: (a) criminalise the financing of individual terrorists for any purpose; and (b) criminalise the financing of foreign terrorist fighters. These amendments will seek to address specific technical requirements of the Financial Action Task Force’s International Standards on Combating Money Laundering and Financing of Terrorism and Proliferation, inclusive of changes made by FATF in the latter part of 2015 in relation to the requirements on terrorist financing. Mr. Speaker, these provisions are part of the phased improvements to Bermuda’s AML/ATF regime as specified within the National Anti -Money Laundering Committee’s National AML/ATF Strategy and A ction Plan. This plan was specifically des igned to plot the improvements to Bermuda’s AML/ATF regime as well as to order the preparations for the upcoming evaluation of Bermuda’s AML/ATF regime. Mr. Speaker, these measures are crucial to Bermuda’s preparation for the next Mutual Evaluation of its AML/ATF regime, which is scheduled to take place starting in mid- 2017 with the onsite examination scheduled for the first quarter of 2018. In this regard the FATF standards and methodology now place the onus on the jurisdictions to demonstrate that their AML/ATF regime complies with FATF’s technical r equirements and that the regime is effective in combating money laundering, terrorist financing and the f inancing of the proliferation of weapons of mass de-struction. The key word there is “effective” so it is not just having a regime, but that you can show that it is an effective regime. Mr. Speaker, ultimately the effectiveness of the regime will be measured based upon the evident statistics and other supporting factors that are pr oduced by the jurisdiction for a period of at least two years prior to the date of evaluation. In summary, Mr. Speaker, the exhaustive list of enactments amended is as follows: • Proceeds of Crime Act 1997; • Proceeds of Crime (Anti -Money Laundering and Anti -Terrorist Financing Superv ision and Enforcement) Act 2008; • Financial Intelligence Agency Act 2007 ; • Anti-Terrorism (Financial and Other Measures) Act 2004; • Proceeds of Crime (Anti -Money Laundering and Anti -Terrorist Financing) Regulations 2008; and the • Real Estate Agents’ Licensing Act 1976.
Correspondingly, Mr. Speaker, these amendments will achieve the following: they will place high value dealers within the scope of the AML/ATF r egime; place real estate agents within the scope of the AML/ATF regime; authorise the Financial Intell igence Agency to make disclosures to the Governor to enable him to discharge his statutory functions in relation to international sanctions; and finally, amend the Terrorist Financing Offence to cri minalise the financing of individual terrorists for any purpose as well as to criminalise the financing of foreign terrorist fighters, all of which bodes well to uphold the reputation of Ber-muda’s financial sector. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you, Attorney General. The Chair will now recognise the Shadow A ttorney General from constituency 36, the Learned Member, Michael Scott. You have the floor. Hon. Michael J. Scott: Than k you, Mr. Speaker. Mr. Speaker, of course, it is the expedient of Bermuda keeping up to date and …
Thank you, Attorney General. The Chair will now recognise the Shadow A ttorney General from constituency 36, the Learned Member, Michael Scott. You have the floor.
Hon. Michael J. Scott: Than k you, Mr. Speaker. Mr. Speaker, of course, it is the expedient of Bermuda keeping up to date and enhancing our fight and enhancing our capacity to be ever . . . both in compliance and ready to deal with the whole question of stopping money laundering and stopping terrorist financing, is always both efficacious and it is supported, certainly, entirely by myself today on behalf of the Opposition. And so I am grateful to the Learned Attorney General for bringing this measure and supplying me with the rational for . . . the very clear rational, and it is an obvious rational, of what we are doing, the exped iency of amending all of the regime of legislation in this country that deals with this whole question now being driven by these awful things that we read about in the ISIS campaigns and the ability to keep terrorists, whether they are ISIS or these other terrorist organisations, from being financed and wreaking disorder both internationally and locally. And because we are an international centre, we have to ensure that we keep our . . . play our part in stopping this , and erad icating these terrorist financing and money launderi ng that often feeds into it. And so the Bill, in large measure, is supported. There is a question and a concern that myself and at least one other Member of my team have questions about and that is the listing and including of the Governor as a person to w hom a protected disclosure can be made. I mean, by and large , I think we are successful, Mr. Speaker, in preventing and detecting efforts or energy being deployed to either launder money and/or to . . . in connection with crime, or to 2532 13 July 2016 Official Hansard Report
Bermuda House of Assembly finance terrorism. By and large , we are dependent upon people like you and I and people in even more enhanced positions of intelligence and information in very specific areas of expertise providing information about these events and giving information. And my colleague, the Honourable Member from [constituency] 17, Mr. Brown, was asking me about the list that we did establish for persons to whom protected disclosures can be made to make sure that this engine works and works well. And it the Customs , the head of Customs, it is t he police off icers, starting with that, the Customs, the Chief Med ical Officer, the Chief Environmental Officer, and the list goes on in the principal Act. But to the Learned Attorney [General] , I have not been able to appreciate or support the idea of it being the Governor for one particular reason. Well, first of all, the Learned Attorney’s brief says it enhances His Excellency’s, the Governor’s capacity to discharge his functions under the sanctions regime. But that can still be discharged by the carrying . . . the giving of that protected discl osure to a p olice officer. In fact , the Financial Intell igence Agency is a police body , largely, or it is largely supported by the p olice in this country. Here is the nub of my concern. Just in case, and not only “ in case” as life would have it, if we allow the Governor to be listed in this jurisdiction of persons to whom protected disclosures can be made, and in the event where these listed persons, these classically listed persons —police officers, Customs , the Head of Customs, the Head of the Environmental Protection— are introduced into an administrative function by r eceiving these protected disclosures and if something goes awry, and it is required that their administrative functions or omissions be reviewed, it c an be done. And the country is protected, the Government is pr otected by having this capacity to review in judicial r eview these omissions or commissions. The Governor under section 17 of our Const itution, [his] actions cannot be questioned. And so I really have that concern that the Governor is listed now. He is a supernumerary of great protection. He is listed now in this administrative framework and yet he has this very special status of being a person under section 17 to whom is accorded the protection of no court inquiring into his or her actions. And so for an otherwise supportable regime of an expedient of enhancing our provisions, I take issue with that. Thanks.
The SpeakerThe SpeakerThank you, Honourable Member. The Chair recognises the Honourable and Learned Member from constituency 34, MP Kim Wi lson. You have the floor.
Ms. Kim N. WilsonThank you, Mr. Speaker. Mr. Speaker, notwithstanding the issues raised by the Shadow Attorney General, my learned and honourable friend, concerning, I think it was s ection 8 with respect to . . . yes, section . . .
Ms. Kim N. WilsonEight. I would like to rise and also commend the Government for preceding with this very important legislation. You will recall, no doubt, Mr. Speaker, that the volume of legislation that came concerning the Pr oceeds of Crime Act and the establishment of the FIA and all the other supervisory …
Eight. I would like to rise and also commend the Government for preceding with this very important legislation. You will recall, no doubt, Mr. Speaker, that the volume of legislation that came concerning the Pr oceeds of Crime Act and the establishment of the FIA and all the other supervisory and regulatory regimes started in the latter years of the PLP as the Gover nment and recognising that Bermuda, as we heard this morning by the Honourable Minister Grant Gibbons , from constituency 22, when he was dealing with his matter this morning, spoke about the fact that Ber-muda is going to be assessed in 2018 , a Mutual Evaluation will be happening in Bermuda which will deal specifically to whether or not and to the extent in which Bermuda as a jurisdiction is compliant with i nternational standards as it relates to money laundering and terrorist financing. So the amendments that we see here today will go a long way towards us being able to confirm to the assessments that we are showing technical compliance in that our legislation is being amended in line with some of the most recent recommendations from FATF in 2015. Mr. Speaker, for many persons who may have forgotten or not been completely aware of exactly how money laundering operates and how it is related to the amendments that we see today, effectively , there are three layers of money laundering. We have got the placement of the money, the layering and then the integration, in other words, the cleaning of dirty money or illicit money that are the proceeds of crime, which is what we are amending today, and putting it into the system. So you are taking dirty money and cleaning it. And when we look at two of the areas of increas ing vulnerability, which is where money laundering is taking place (and terrorist financing to a lesser extent) is with respect to the areas of the real estate arena as well as high value dealers, which is of course the subject matter of these amendments. So for example, Mr. Speaker, high value dealers —you will see in the legislation we are speaking about sums equated to in any currency at $7,500. But what might happen, which we are trying to prevent through this legislation, is an individual who has illici t money —cash—from illicit, ill- gotten means , money laundering, and then they attempt to purchase assets such as gold or jewels, et cetera, so thereby cleaning the dirty money. So they have acquired money from the proceeds of criminal activity and they are money laundering it by taking that money and purchasing gold or diamonds or high value items. So therefore once that money is put into the system with respect to the purchase that money launderer now walks out
Bermuda House of Assembly with a watch and the money is then, no doubt t he company that actually sold the item will then take it to the bank and then you can see how the dirty money has now been cleaned because it has gone through this system. So, unfortunately, when we take steps to amend our legislation, the persons that are . . . their motive of operation is to continue to do money laun-dering and so forth, they will continue to move on. So the reality is we have seen in other jurisdictions, and Bermuda is no exception, where money laundering and terrorist financing started i n the financial services industry, then we saw that there was an increase in money laundering events happening within the law firms, within the accounting firms, and within the trust industries, corporate service providers. Now we are seeing that money laundering through those stages that I spoke to you about previously, Mr. Speaker, is happening within the areas of high net worth valued entities such as jewellery and, of course, real estate. I think , fortunately , Bermuda is a little bit pr otected by that r egime insofar as there is probably a lesser of a vulnerability because the banks are doing their due diligence. So if a person wants to purchase property , you are not going to walk into a law firm and, you know , put down a couple hundred thousand do llars a nd say this is what is going towards the purchase of the property without red flags being raised and processes taking place. So, again, Mr. Speaker, I am commending the Government for taking steps to amend the legislation so that we can be compliant with t he new regulations that are coming out of the Financial Action Task Force. I think that, hopefully, this will take us one step closer to being successful in our Mutual Evaluation in 2018. I do have one question for the Minister and I will talk about it mor e in Committee, but it is a general observation as it relates to the competent authorities in section 6 A where we are amending the legislation to allow for one of the competent authorities to be the Superintendent of Real Estate. And I am not trying to be devilish to the Honourable and Learned Attorney General, but I wonder at some stage if he would pr ovide some kind of information as to the existence of the competent authority of the Financial Intelligence Agency insofar as them providing their supervision, so to speak, over the Bar and the ICA B [Institute of Chartered Accountants of Bermuda] board. Thank you, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you. Thank you, Honourable Member. The Chair will recognise now the Honourable Learned Member from const ituency 31, MP Shawn Crockwell. You have the floor.
Mr. Shawn G. CrockwellThank you, Mr. Speaker. A few brief remarks, certainly, after the Honourable and Learned Member who just took her seat, who is far more learned in this area than I. And this is becoming, Mr. Speaker, a very specialised area. You know , I keep saying to myself I need …
Thank you, Mr. Speaker. A few brief remarks, certainly, after the Honourable and Learned Member who just took her seat, who is far more learned in this area than I. And this is becoming, Mr. Speaker, a very specialised area. You know , I keep saying to myself I need to go and take some courses because as we continue to expand the areas that must be compliant with AML and anti - terrorism measures , it is now capturing almost any entity that is dealing with significant sums of money. And so all of these organisations and companies want to ensure they have a compliance officer that has this type of understanding and expertise. So it has become its own sort of niche area of the law. My only concern in relation to the Mutual Evaluation in 2018 —clearly a very important evaluation for this jurisdiction— we must get a good evaluation and then get the . . . I do not know how they grade it, but however they grade it, we need to come out on the better end of that as a jurisdiction. And at the end of the day, Mr. Speaker, we have to do these things and I am sure the Attorney General has on his agenda other measures that may need to be done before 2018. My only question for the Attorney General is , understanding that we do this, and I quite often have conversations with individuals involved in this industry and I say , Okay, is this really just window dressing? is sometimes what I wonder. I mean, we pass all of this legislation; we have a significant volume of legislation as it relates to AML and the like, but when we look at the enforcement side, I could not tell you the last time I have seen a case where someone has been pros ecuted for AML and other infractions. It may happen and it may not be gett ing reported, I do not know. But I just do not know if we have the resources in order to really enforce this, if . . . and particularly when we are dealing with a jurisdiction . . . well, we have a budget that is restrictive, so I would encourage the Gover nment to ensure that as we bring the legislation on this side, then we must make sure that on the other side that we are providing sufficient resources, sufficient funding and the like, so that we can certainly ensure that we are implementing and enforcing the rules and regulations that we are passing. So, certainly , we need to have this on the books . We have got to make sure that we have these laws in place and, at the same time, we have to en-sure that those who are empowered to enforce it, to make sure t hat everyone is compliant, that they have what is necessary to do so. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you, Honourable Member. The Chair will now recognise the Honourable Member from constituency 17, MP Walton Brown. You have the floor.
Mr. Walton BrownThank you, Mr. Speaker, 2534 13 July 2016 Official Hansard Report Bermuda House of Assembly Mr. Speaker, I think it is important for us to be compliant with international best practices regarding anti-money laundering and anti -terrorist financing, and it is all very well and good. But we should ensure …
Thank you, Mr. Speaker, 2534 13 July 2016 Official Hansard Report
Bermuda House of Assembly Mr. Speaker, I think it is important for us to be compliant with international best practices regarding anti-money laundering and anti -terrorist financing, and it is all very well and good. But we should ensure that there is not a level of hypocrisy in how we examine and act on these issues. We have in this proposed legislation the incl usion of the Governor as one of the people you can make confidential disclosures to. If you look at all the other individuals or positi ons that are identified, they are all technical positions. It very studiously avoids having any political appointee as someone who you can make a disclosure to. But for some reason we find a way to justify including the Governor, who is a polit ical appoint ee. If the concern really is about intern ational obligations and so forth, then identify the Deputy Governor, who is much more of a technical person than the Governor. So I do not buy the argument that we need to include the Governor. I do not know why we continue to devolve power back to the Governor. If there is any merit whatsoever in having a level of disclosure i nvolving international obligations, then give it to the Deputy Governor. We have avoided political appointees in this list . All of these technical people have been identified. We need to take the Governor out of it. Otherwise we are just going to play a political game. The bigger game, the bigger hypocrisy, Mr. Speaker, is that we are doing this in compliance with international obligations and, I presume, some direction or pressure from the United Kingdom. But how hypocritical can that be? And I say that, Mr. Speaker, because we had one of the global banks engage in money laundering on an epic scale—HSBC —in Mexico. They laundered a billion dollars of drug money . A billion dollars ! The person responsible for Mexico ended up getting a job in Bermuda. So where was the anti-money laundering and the vetting process to deny that person an opportunity to work in Bermuda, first of all? So I am not sure I take all this stuff very seriously. Secondly, we f ound out yesterday in a Senate Report , which came out of the United States Senate, that George Osborne . . . the former now, what was he?
Mr. Walton BrownHe is gone now . Right. So George Osborne, the Chancellor, the F inance Minister equivalent, he appeals to the United States Federal Reserve and Senate to say , Do not press charges against HSBC because they are too big to be charged. So when I hear all this rhetoric …
He is gone now . Right. So George Osborne, the Chancellor, the F inance Minister equivalent, he appeals to the United States Federal Reserve and Senate to say , Do not press charges against HSBC because they are too big to be charged. So when I hear all this rhetoric about our compliance with anti -money laundering policies , it rings hollow because the global community is not s erious about it. We are this itty -bitty little country. We are concerned about our rating and wheth er we get the right rating in 2018. The global community only applies laws to the little guy, the little person, the little country. And so if the United Kingdom Government can put pressure on the United States Government , successfully, it appears , because HSBC was not charged . . . they paid a $1 billion fine. So we have a situation where the wealthy and the powerful are i mmune to anti -money laundering legislation. So what a joke—what a joke. Are we going to allow the wealthy and powerful here to also be i mmune? I just do not take it very seriously. And so if we are going to be serious about what we are doing, we do not politicise the information disclosure process . You do not give power to a polit ical appointee, like you do not give power to a Minister, you do not give power to a Premier from a disclosure standpoint, we certainly should not be giving power to the Governor. And when it comes to the international component, it seems that the big powers, the big compa-nies, can get away with it. In an assessabl e global economy that took anti -money laundering seriously, HSBC would have faced far more serious cons equences. The people who had oversight of HSBC would have faced far more serious consequences. We are going after the guy who was bringing in $20,000 to buy the ring; we are going to focus on that and not focus on where the real money laundering takes place? If you recognise that our drug economy . . . when I did the research 20- odd years ago, we were estimating that it was about a $250 million economy back in the mid- 90s. I have no idea what it would be today. But who on earth is processing $300– 350 mi llion worth of drug money? It is certainly not the people who are going down and exchanging gold for cash at the . . . what is that ? Whatever that place is c alled . It is not those people. So money laundering is obviously taking place. When have you ever caught anybody? Sorry, when have you ever charged anybody? I am sure people have been caught, when has anyone ever been charged? So we are going to pass this law, we are going to do what we have to do to be compliant with i nternational obligations and regulations and so forth, but we are not serious . We are not serious. And we need to call it as we see it. I would implore the Go vernment to reconsider granting t his ridiculous power to the Governor. I would implore the Government to take a much more strident stance within the international arena to the extent that we can. Thank you.
The SpeakerThe SpeakerThank you, Honourable Member. Any other Honourable Member care to s peak? Bermuda House of Assembly So the Chair will revert back to the Learned Attorney General. You have the floor. Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I take the opportunity to recognise the draft sman, Anthony Richardson. …
Thank you, Honourable Member. Any other Honourable Member care to s peak?
Bermuda House of Assembly So the Chair will revert back to the Learned Attorney General. You have the floor.
Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I take the opportunity to recognise the draft sman, Anthony Richardson. He is here in the Chambers today , and in the S peaker’s Gallery as well is the National Coordinator [at the Office of NAMLC ], Ms. Paula Tyndale, who is here today as well. So they are giving me some assistance on the matters which have been raised by Members of the Opposition. With respect to the poin t, I think raised by the Honourable and Learned Member , Kim Wilson, with respect to the competent authority, I think with the respect to real estate, initially it is the Registrar of Companies. So I think that is dealt with initially , whether there will be any . . . the Registrar of Companies is the competent authority for real estate agents at the moment. And I know that Honourable and Learned Member is employed in the compliance area, but there will be discussions of changes going forward. And I am being delicate here because it may touch on areas where you are employed and areas in which we are interested in, but that is not for the Bill today. But to say that the overriding effect of the Bill today is to . . . and moving forward FATF is looking for effectiveness, so a number of Members —the Honourable and Learned Member , Mr. Crockwell, and the Honourable Member , Mr. Walton Brown —have raised the issue of . . . you know , whether we are really ser ious about this . And the answer is yes. Across jurisdi ctions t hey are moving to the next level, so before they were saying, Do you have these things in place? Now what they are saying is, Are the things you have in place effective? Are they accomplishing their purpose? And that is part of the situation with respect t o the Governor. The Governor has executive respons ibilities with respect to treaty obligations and it is as a result of that that he needs to have certain matters reported to him. And these are normally dealing with international obligations, such as sanct ions where there are sanctions against , you know, foreign countries, et cetera. So the note that has been passed to me here, and I will just read it for your benefit: “The Governor is a competent authority in relation to all international sanctions legislation extended to Bermuda by the UK. This is a necessary part of AML/ATF regime. Financial institutions are required under legi slation to report to the Governor if sanctioned persons are their clients. It is a necessary feature that the Governor should also have the benefit of intelligence from the FIA to understand whether financial instit utions are complying with sanctions r equirements.” So, it is really to deal with international sanctions and those are within the Governor’s purview with respect to inter national obligations and not to be mi s-taken with respect to people locally who may be mi sbehaving. So, you know , all of us heard this year, obv iously, with respect to the Panama Papers , for example, and obviously those highlighted certain abuses in certain jurisdictions by, as the Honourable Member Walton Brown said, the wealthy and the powerful that seem to be immune from the provisions. But I think the case is that people are becoming less and less immune. Obviously , the outgoing Prime Minister of the UK, Mr. Cameron, had a very strong agenda in that regard, which we had some differences from what we here in this jurisdiction saw as an effective regime and what that Honourable Prime Minister was looking for as an effective regime. But I think Bermuda acqui ts itself extremely well in this area. Are we perfect? No. But have we been highlighted in things like the Panama Papers? And the answer is no. We are not. We get very little mention amongst thousands or hundreds of thousands or millions of mentions . There are very few that involve us to this point. And I touch wood on that and hopefully that will continue. I am just trying to make sure I covered the points that I had written down. I think those cover the main points that were raised in the general debate and I would now move that the Bill be committed.
The SpeakerThe SpeakerThank you, Attorney General . It has been moved that the Bill be committed. Any objections to that? There are none, so Deputy [Speaker] , please take the Chair [of Committee] . House in Committee at 4:56 pm [Mrs. Suzann Roberts -Holshouser, Chairman] COMMITTEE ON BILL PROCEEDS OF CRIME AMENDMENT …
The ChairmanChairmanMembers, we are now in Committee of the whole House for further consideration of the Bill entitled Proceeds of Crime Amendment (No. 2) Act 2016. I call on the Attorney General. You have the floor. Hon. Trevor G. Moniz: Thank you, Madam Chai rman. I am going to be so …
The ChairmanChairmanIt has been proposed that we move clauses 1 through— Hon. Trevor G. Moniz: Fifteen. 2536 13 July 2016 Official Hansard Report Bermuda House of Assembly The Chairman: —Fifteen . Are there any objections to that motion? No objections. Please proceed. Hon. Trevor G. Moniz: Thank you, Madam Chai rman. …
It has been proposed that we move clauses 1 through— Hon. Trevor G. Moniz: Fifteen.
2536 13 July 2016 Official Hansard Report
Bermuda House of Assembly The Chairman: —Fifteen . Are there any objections to that motion? No objections. Please proceed.
Hon. Trevor G. Moniz: Thank you, Madam Chai rman. Clause 1 is the citation. Clause 2 amends section 42A(1) of the princ ipal Act by: (a) adding a definition for dealers in high value goods; (b) broadening the definition of superv isory authority to include the Financial Intelligence A uthority as a supervisory authority in relation to relevant persons that are dealers in high value goods; (c) broadening the definition of supervisory authority to include the Superintendent of Real Estate as defined in section 1 of the Real Estate Agents’ Licensing Act 1976; and (d) adding a definition for real estate agent. Clause 3 amends section 49(4)(a) of the pri ncipal Act to allow regulations made by way of this section to include dealers in high value goods who, by way of business, accept a total cash payment (in any currency) that is equivalent to at least BMD $7,500 in any single transaction or series of linked transactions. Clause 4 amends section 2 of the Anti - Terrorism (Financial and Other Measures) A ct 2004 by: (a) adding a definition for dealers in high value goods; and (b) adding a definition for real estate agent. Clause 5 amends section 5 of the Anti - Terrorism (Financial and Other Measures) Act 2004: (a) in subsections (1)(b), (2)(b) and (3)(b) by making it an offence for a person to finance a person’s travel to a country, other than that person’s or persons country of nationality or residence, for the purpose of the perpetration, the planning or preparation of, or the participation in acts of terr orism or the providing or recei ving of training for the purpose of terrorism; (b) in su bsections (1)(b)(iii), (2)(b)(iii) and (3)(b)(iii), by adding the words “whether or not the money or other property is likely to be used for that activity or for any other purpose,” thereby broadening the scope of culpability under subsections (1)(b)(iii), (2)(b)(iii) and (3)(b)(iii). Clause 6 amends section 12A(2)(a) of the Anti-Terrorism (Financial and Other Measures) Act 2004 to: (a) allow regulations made by way of this section to include dealers in high value goods who, by way of business, accept a total cash payment (in any currency) that is equivalent to at least BMD $7,500 in any single transaction or series of linked transactions; and (b) allow regulations made by way of this section to include real estate agents when they carry out transactions for their clients concerning the buying and selling of real estate. Clause 7 amends section 120(2) of the Anti - Terrorism (Financial and Other Measures) Act 2004, broadening the definition of supervisory authority to include: (a) the FIA as a supervisory authority in rel ation to relevant persons that are dealers in high value goods; and (b) the Superintendent of Real Estate in relation to real estate agents. Clause 8 amends s ection 18 of the Financial Intelligence Agency Act 2007, adding paragraph (aa), thereby adding the Governor to the list of persons to whom permitted disclosures may to be made for the purposes of discharging their respective functions u nder any statutory provision. Clause 18 also adds to section 18 a new definition for international sanctions. Clause 9 amends section 2(1) of the Pr oceeds of Crime (Anti -Money Laundering and Anti - Terrorist Financing Supervision and Enforcement) Act 2008: (a) broadening the d efinition for competent authority to include the Superintendent of Real Estate; (b) adding a definition for dealers in high value goods; (c) adding a definition for real estate agents; and (d) adding a definition for Superintendent of Real Estate. Clause 9A amends the Proceeds of Crime (Anti-Money Laundering and Anti -Terrorist Financing Supervision and Enforcement) Act 2008: (a) in section 3(1) by way of the paragraph (aa) thereby adding the Superintendent of Real Estate for real estate agents to the list o f supervisory authorities to section 3(1); (b) in section 6A by way of the new subsection (3) specifying that the Superintendent of Real Estate has the functions conferred upon him by section 5 of the Proceeds of Crime Act (Anti -Money Laundering and Anti-Terrorist Financing Supervision and Enforc ement) 2008 in relation to real estate agents and under the Real Estate Agents’ Licensing Act 1976, thereby bringing the Superintendent of Real Estate and real estate agents into the scope of the 2008 Act; and (c) in section 8(1) by way of a new subparagraph ( ia), adding the Superintendent of Real Estate for real es-tate agents to the list of competent authorities r equired to maintain a register in accordance with section 8(1). Clause 10 amends section 9 of the Proceeds of Crime (Anti -Money Laundering and Anti -Terrorist Financing Supervision and Enforcement) Act 2008 to place an obligation on a dealer in high value goods, who is registered under section 9 and who accepts cash over BMD $7,500, to file a disclosure with the Financial Intelligence Authority. Clause 11 amends the Proceeds of Crime (Anti-Money Laundering and Anti -Terrorist Financing Supervision and Enforcement) Act 2008, adding a new section 18A, to broaden the powers of found within Part 3 of the Act to inc lude dealers in high value goods, whom the Financial Intelligence Authority re asonably suspect of receiving cash payments equal to or in excess of the threshold for high value goods transactions, where the dealer is not registered under this Act to conduct such business. Clause 11A amends section 20 of the 2008 Act: (a) in subsection (1)(a) by inserting after the word “institution” the words “a real estate agent”; (b) in su bsection (1)(a) adding the new paragraph (c) thereby prescribing the civil penalty to be, in the case of a perBermuda House of Assembly son or entity supervised by the Superintendent of Real Estate, such amount not exceeding $250,000 as the Superintendent of Real Estate considers appropriate; (c) in subsection (1)(b) by inserting after the word “i nsurer” the words “a real estate agent” thereby allowing the Superintendent of Real Estate to impose civil penalties upon real estate agents for non- compliance with the provisions of the Act; and (d) in subsection (3)(b) by inserting before the word “regulated” the words “real estate agents” thereby bringing real estate agents within the scope of the 2008 Act. Clause 11B amends section 32(1) of the 2008 Act adding the new paragraph (aa) thereby allowing the disclosure of information by the Superintendent of Real Estate provi ded the disclosure of information is for the purpose of enabling or assisting the discharge of his functions under the 2008 Act or any other stat utory provision. Clause 12 amends Schedule 2 to the Pr oceeds of Crime (Anti -Money Laundering and Anti - Terrorist Financing) Regulations 2008: (a) in column 1, by adding dealers in high value goods to the schedule of regulated non- financial businesses and professions; (b) in column 2, by adding an obligation, to the schedule of regulated non- financial businesses and professions, requiring dealers in high value goods to meet the fit and proper test in section 11A of the Proceeds of Crime (Anti -Money Laundering and Anti - Terrorist Financing Supervision and Enforcement) Act 2008. Clause 12A amends the Real Estate Agents’ Licensing Act 1976 by: (a) inserting after the word “Superintendent” wherever it appears the words “of Real Estate” thereby referencing the Superintendent’s correct statutory title of Superintendent of Real Estate; and (b) adding the new section 2A thereby clarifying that for the purpose of detecting or preventing money laundering, the financing of terrorism, or the financing of the proliferation of the weapons of mass destruction the Superintendent of Real Estate shall be the supervisory body for real estate agents. Clause 13 amends regulation 2(1) of the Pr oceeds of Crime (Anti -Money Laundering and Anti - Terrorist Financing) Regulations 2008, thereby broa dening regulation 2(1) to include: (a) a definition for dealers in high value goods; and (b) broadening the definition of supervisory authority to include the F inancial Intelligence Authority as a supervisory author-ity in relation to relevant persons that are dealers in high value goods. Clause 14 amends regulation 4 of the Pr oceeds of Crime (Anti -Money Laun dering and Anti - Terrorist Financing) Regulations 2008, broadening the application of the Regulations to include dealers in high value goods. Clause 15 is the commencement provision. Thank you, Madam Chai rman.
The ChairmanChairmanThank you. Are there any Members that would like to speak to clauses 1 through 15? The Chair recognises the Member from constituency 36, the Learned Member , Mr. M. Scott. Hon. Michael J. Scott: Thank you, Madam Chairman. Madam Chairman, I heard the explanation given by the Learned A …
Thank you. Are there any Members that would like to speak to clauses 1 through 15? The Chair recognises the Member from constituency 36, the Learned Member , Mr. M. Scott. Hon. Michael J. Scott: Thank you, Madam Chairman. Madam Chairman, I heard the explanation given by the Learned A ttorney General , questioning the Governor being listed as one to whom a protected disclosure can be made. And clearly, and it is entirely accepted, the Government has . . . well, the Governor (it says so in the legislation ) is the competent authority for the administration of sanctions in our Island. But I adopt the other gloss given by my friend from con-stituency 17, Mr. Walton Brown, that the Governor remains a political appointee and the other persons to whom a protected disclosure can be made are non - political. Now, as I made this analysis about the Governor being included in the list, I also recognise that in the prerequisite justification language for persons to be enabled to trigger a protected disclosure, the pr erequisite language or justification . . . jurisdiction is not in the amendment. So if we are going to purport to give the Governor listing, how am I assisted in my argument about that? If you consider the legislation u nder the Good Governance Act where we make pr otected disclosure . . . where the protected disclosure list is contained, it refers to, with your permission—
The ChairmanChairmanYes. Hon. Michael J. Scott: I am reading from section 1[clause 7] : “[29A (1)] A person makes a protected disclosure if, in good faith, he notifies a listed per son that he has reasonable grounds to believe—(a) that his employer or any other employee has committed, is committing, or …
Yes.
Hon. Michael J. Scott: I am reading from section 1[clause 7] : “[29A (1)] A person makes a protected disclosure if, in good faith, he notifies a listed per son that he has reasonable grounds to believe—(a) that his employer or any other employee has committed, is committing, or is about to commit, a criminal offence or breach of any statutory obligation related to the employer’s business; (b) that he himself has been directed, either by his employer or by one of his supervisors, to commit such a criminal offence or breach of statutory obligation; or (c) that information tending to show any matter falling within paragraph (a) or (b) has been, is being, or is li kely to be, altered, erased, destroyed or concealed by any person.” So those are the triggering criteria for . . . the point I am making is that there is no reference to the jurisdiction in which a Governor of this Island in rel ation to a person making a disclosure to him that is pr otected . . . where it falls. It simply is introducing this addition to the list of persons to whom protected di sclosures can be made, albeit the competent authority is the Governor . My governing point is that he is a pr otected person himself for the purposes of section 17. So I have got it into Hansard and I have got it into the record. I hope I am being accurate when I
1 Good Governance Act 2011 2538 13 July 2016 Official Hansard Report
Bermuda House of Assembly linked section 29A of the Governance Act criteria and jurisdiction to my concerns that there is no such equiv alent language to justify the Governor’s presence in the list. And I am not calling for an amend-ment today . Perhaps this is something that we can examine. And if I can be given more assurances that my concerns are without basis or foundation, perhaps, then I will be content. But beyond that clauses 1 through 15 are ones with which I am content, save for the . . . in clause 8. Thanks.
The ChairmanChairmanThank you. Thank you very much. Are there any other Members that would like to speak to clauses 1 through 15? The Chair recognises the Member from constituency 17.
Mr. Walton BrownYes, Madam Chairman, I would like to speak to clause 8.
Mr. Walton BrownI listened to the explanation given as to why the Governor is included because he is deemed to be a competent authority in such matters. Can the Honourable Attorney General inform this House if there is any other jurisdiction that we r espect in which a confidential disclosure can be …
I listened to the explanation given as to why the Governor is included because he is deemed to be a competent authority in such matters. Can the Honourable Attorney General inform this House if there is any other jurisdiction that we r espect in which a confidential disclosure can be made to a Head of State, which the Governor is, and/or a Government Minister —two political functions —is there any other example in a respected jurisdiction where such ability to receive confidential information is in place legally?
The ChairmanChairmanThank you, Member. The Chair recognises the Attorney General. Hon. Trevor G. Moniz: Thank you, Madam Chairman. You know , what we are trying to do here is deal with the necessary steps so that we can, as a jurisdiction, pass our Mutual Assessment, particularly undertaken by the FATF regime. …
Thank you, Member. The Chair recognises the Attorney General.
Hon. Trevor G. Moniz: Thank you, Madam Chairman. You know , what we are trying to do here is deal with the necessary steps so that we can, as a jurisdiction, pass our Mutual Assessment, particularly undertaken by the FATF regime. And what we have in all of our sanctions orders and the international sanc-tions regulations —all of them for Bermuda—refer to the Governor. So that is . . . as he is the competent authority and that is why matters are referred to him and he has those powers, those reserve powers, u nder our Constitution. So our point of view is that he is the appropriate person. You know, whether the Honourable Member views him as a political person, you know, that is debatable. He is the Head of State, but he has those responsibilities under i nternational conventions . He has those powers . So with those powers goes responsibility. He is not the only person, but he is one of the people who has those authorities as a competent authority in this jurisdiction. I cannot do anymore than say that tha t is a ppropriate and that we need this in order to move for-ward with our framework so that we can pass our Mutual Assessment. We will not meet it as we are at the moment because we have these lacunas, we have these gaps in our reporting, and the whole thin g here is to make sure that there are no gaps so that we have that effectiveness criterion that is now being r equired. So I hope the Member can be satisfied with that—well, both Honourable Members , the Shadow Attorney General and the Honourable Member Walt on Brown.
The ChairmanChairmanThank you. Are there any other Members that would like to speak to clauses 1 through 15? There are no other Members. I call on the Attorney General. Hon. Trevor G. Moniz: Thank you, Madam Chairman. I then move clauses 1 throug h 15 be approved.
The ChairmanChairmanIt has been proposed that clauses 1 through 15 be approved as printed. Any objections to that motion? No objections. Agreed to. [Gavel] [Motion carried: Clauses 1 through 15 passed.] Hon. Trevor G. Moniz: Madam Chairm an, I move the Preamble.
The ChairmanChairmanIt has been moved that the Preamble be approved. Are there any objections to that motion? No objections. Agreed to. [Gavel] Hon. Trevor G. Moniz: Madam Chairman, I move that the Bill be reported to the House as printed.
The ChairmanChairmanIt has been moved that the Bill be reported to the House as printed. Any objections to that motion? No objections. Agreed to. [Gavel] [Motion carried: The Proceeds of Crime Amendment (No. 2) Act 2016 was considered by a Committ ee of the whole House and passed without amendment.] Bermuda …
It has been moved that the Bill be reported to the House as printed. Any objections to that motion? No objections. Agreed to. [Gavel]
[Motion carried: The Proceeds of Crime Amendment (No. 2) Act 2016 was considered by a Committ ee of the whole House and passed without amendment.]
Bermuda House of Assembly House resumed at 5:15 pm
[Hon. K. H. Randolph Horton, Speaker, in the Chair]
REPORT OF COMMITTEE
PROCEEDS OF CRIME AMENDMENT (NO. 2) ACT 2016
The SpeakerThe SpeakerYes, Members, the Proceeds of Crime Amendment (No. 2) Act 2016 has had its second reading approved. And as far as I have been made to understand, all Orders are to be carried over? All the rest of the Orders , rather, are to be carried over. So, therefore, the …
Yes, Members, the Proceeds of Crime Amendment (No. 2) Act 2016 has had its second reading approved. And as far as I have been made to understand, all Orders are to be carried over? All the rest of the Orders , rather, are to be carried over. So, therefore, the Chair will first call on the Minister of Finance . . . Dr. Gibbons, you will do that for him?
Dr. the Hon. E. Grant Gibbons: Yes, I am happy to assist here, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you. Dr. the Hon. E. Grant Gibbons: The Pension Trust Funds Amendment Act 2016.
The SpeakerThe SpeakerYes, yes. Dr. the Hon. E. Grant Gibbons: Okay. SUSPENSION OF STANDING ORDER 21 Dr. the Hon. E. Grant Gibbons: Mr. Speaker, I move that Standing Order 21 be suspended to enable me to move, on behalf of the Minister of Finance, that the Bill entitled Pension Trust Funds Amendment …
Yes, yes.
Dr. the Hon. E. Grant Gibbons: Okay.
SUSPENSION OF STANDING ORDER 21
Dr. the Hon. E. Grant Gibbons: Mr. Speaker, I move that Standing Order 21 be suspended to enable me to move, on behalf of the Minister of Finance, that the Bill entitled Pension Trust Funds Amendment Act 2016 be now read the third time by its title only.
The SpeakerThe SpeakerAre there any objections? Carry on, please. [Motion carried: Standing Order 21 suspended.] BILL THIRD READING PENSION TRUST FUNDS AMENDMENT ACT 2016 Dr. the Hon. E. Grant Gibbons: Pension Trust Funds Amendment Act 2016. I now move that the Bill do now pass.
The SpeakerThe SpeakerThank you, Honourable Member. The Bill is now passed. [Motion carried: The Pension Trust Funds Amendment Act 2016 was read a third time and passed.]
The SpeakerThe SpeakerHonourable Premier? SUSPENSION OF STANDING ORDER 21 Hon. Michael H. Dunkley: Thank you, Mr. Speaker. Mr. Speaker, I move that Standing Order 21 be suspended to enable me to move that the Bill ent itled Police Amendment Act 2016 be now read the third time by its title only.
The SpeakerThe SpeakerAre there any objections? Carry on, Premier. [Motion carried: Standing Order 21 suspended.] BILL THIRD READING POLICE AMENDMENT ACT 2016 Hon. Michael H. Dunkley: Thank you, sir. I move the Police Amendment Act 2016 do now pass.
The SpeakerThe SpeakerAll right. Thank you. The Bill is now passed. [Motion carried: The Police Amendment Act 2016 was read a third time and passed.]
The SpeakerThe SpeakerThe Chair will recognise the Honourable Minister for Economic Development. SUSPENSION OF STANDING ORDER 21 Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. Mr. Speaker, I move that Standing Order 21 be suspended to enable me to move that the Bill ent itled Limited Liability Company Act 2016 …
The SpeakerThe SpeakerAre there any objections? Carry on. [Motion carried: Standing Order 21 suspended.] BILL THIRD READING LIMITED LIABILITY COMPANY ACT 2016 2540 13 July 2016 Official Hansard Report Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: Limited Liability Company Act 2016. I now move that the Bill do now …
The SpeakerThe SpeakerThank you, Minister. Any objections to that? There are none. The Bill is now passed. [Motion carried: The Limited Liability Company Act 2016 was read a third time and passed.]
The SpeakerThe SpeakerDr. Gibbon s, again, please. SUSPENSION OF STANDING ORDER 21 Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. Mr. Speaker, I move that Standing Order 21 be suspended to enable me to move that the Bill ent itled Bermuda International Interests in Mobile Equi pment (Cape Town Convention) …
Dr. Gibbon s, again, please.
SUSPENSION OF STANDING ORDER 21 Dr. the Hon. E. Grant Gibbons: Thank you, Mr. Speaker. Mr. Speaker, I move that Standing Order 21 be suspended to enable me to move that the Bill ent itled Bermuda International Interests in Mobile Equi pment (Cape Town Convention) Act 2016 be now read the third time by its title only.
The SpeakerThe SpeakerAre there any objections? There are none, carry on. [Motion carried: Standing Order 21 suspended.] BILL THIRD READING BERMUDA INTERNATIONAL INTERESTS IN M OBILE EQUIPMENT (CAPE TOWN CONVENTION) ACT 2016 Dr. the Hon. E. Grant Gibbons: Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016. I now move …
The SpeakerThe SpeakerThank you. Any objections to that? There are none. The Bill is now passed. [Motion carried: The Bermuda International Interests in Mobile Equipment (Cape Town Convention) Act 2016 was read a third time and passed.]
The SpeakerThe SpeakerAttorney General ? SUSPENSION OF STANDI NG ORDER 21 Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I move that Standing Order 21 be suspended to enable me to move that the Bill entitled Maint enance Orders (Reciprocal Enforcement) Amendment Act 2016 be now read the third time by its …
Attorney General ?
SUSPENSION OF STANDI NG ORDER 21 Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I move that Standing Order 21 be suspended to enable me to move that the Bill entitled Maint enance Orders (Reciprocal Enforcement) Amendment Act 2016 be now read the third time by its title only. The Speaker: Are there any objections? There are none, carry on.
[Motion carried: Standing Order 21 suspended.]
BILL
THIRD READING
MAINTENANCE ORDERS (RECIPROCAL E NFORCEMENT) AMENDMENT ACT 2016
Hon. Trevor G. Moniz: Maintenance Orders (Reci procal Enforcement) Amendment Act 2016. I move that the Bill do now pass.
The SpeakerThe SpeakerThank you. Any objections to that? That Bill is passed. [Motion carried: The Maintenance Orders (Reciprocal Enforcement) Amendment Act 2016 was read a third time and passed.]
The SpeakerThe SpeakerAttorney General , again. SUSPENSION OF STANDING ORDER 21 Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I move that Standing Order 21 be suspended to enable me to move that the Bill entitled Bermuda Immigration and Protection Amendment (Adoption) Act 2016 be now read the third time by its …
The SpeakerThe SpeakerJust a moment, I am — Hon. Trevor G. Moniz: That is Order No. 13.
The SpeakerThe SpeakerOrder 13, yes, yes, yes. Hon. Trevor G. Moniz: We took them out of order.
The SpeakerThe SpeakerYes, sir. Ye s, sir. Bermuda Immigration . . . yes. Are there any objections to that? There are none, carry on, Attorney General . [Motion carried: Standing Order 21 suspended.] BILL THIRD READING BERMUDA IMMIGRATION AND PROTECTION AMENDMENT (ADOPTION) ACT 2016 Hon. Trevor G. Moniz: Bermuda Immigration and Protection …
Yes, sir. Ye s, sir. Bermuda Immigration . . . yes. Are there any objections to that? There are none, carry on, Attorney General . [Motion carried: Standing Order 21 suspended.]
BILL
THIRD READING
BERMUDA IMMIGRATION AND PROTECTION AMENDMENT (ADOPTION) ACT 2016
Hon. Trevor G. Moniz: Bermuda Immigration and Protection Amendment (Adoption) Act 2016.
Bermuda House of Assembly I move that the Bill do now pass.
The SpeakerThe SpeakerAll right. Thank you, Attorney General . [Motion carried: The Bermuda Immigration and Pr otection Amendment (Adoption) Ac t 2016 was read a third time and passed.]
The SpeakerThe SpeakerThe Chair will now recognise the Attorney General again. SUSPENSION OF STANDING ORDER 21 Hon. Trevor G. Moniz: Thank you, Mr. Speaker. I move that Standing Order 21 be suspended to enable me to move that the Bill entitled Proceeds of Crime Amendment (No. 2) Act 2016 be now read …
The SpeakerThe SpeakerAre there any objections? There are none, carry on. [Motion carried: Standing Order 21 suspended.] BILL THIRD READING PROC EEDS OF CRIME AMENDMENT (NO. 2) ACT 2016 Hon. Trevor G. Moniz: Proceeds of Crime Amendment (No. 2) Act 2016. I move that the Bill do now pass.
The SpeakerThe SpeakerThank you. Any objections to that? The Bill is now passed. [Motion carried: The Proceeds of Cr ime Amendment (No. 2) Act 2016 was read a third time and passed.]
The SpeakerThe SpeakerHonourable Members, that concludes our business for today so I recognise the Honourable Premier. ADJOURNMENT Hon. Michael H. Dunkley: Thank you, Mr. Speaker. I move that we now adjourn to Friday , 15 July 2016.
The SpeakerThe SpeakerAll right. Thank you, Honourable Pr emier. The Chair will recognise the Acting Leader of the Opposition, MP Walter Roban. COMMISSION OF INQUIRY FOR THE AIRPORT REDEVELOPMENT
Mr. Walter H. RobanThank yo u very much, Mr. Speaker. I rise today to kind of bring something to the attention of not only the Members but also the general public. I am not sure it was appropriately recognised. It was reported on in the media. But it has, perhaps, not gotten the …
Thank yo u very much, Mr. Speaker. I rise today to kind of bring something to the attention of not only the Members but also the general public. I am not sure it was appropriately recognised. It was reported on in the media. But it has, perhaps, not gotten the att ention as some other interesting activities as it relates to matters of public concern. In June, a couple of weeks ago, it was r eported in the newspaper, Mr. Speaker, that the Commission of Inquiry of which the Premier orchestrated its appointment under t he Commission of Inquiry Act , will also, amongst the other matters that they are i nvestigating relating to recently published Auditor’s statements, be investigating the a irport redevelopment. And if you will allow me I will just read a short paragraph whi ch was published in the newspaper.
The SpeakerThe SpeakerWe do not want to get too heavily into that since it is something that the Commission of I nquiry is looking into, so be careful —
Mr. Walter H. RobanFine. I am not going to get too heavy, but I think it is important to raise —
Mr. Walter H. Roban“The Government’s disputed airport redevelopment” —and these are the words of the . . . the paper, not mine— 2“The Government’s di sputed airport redevelopment contract is to be invest igated by the Commission of Inquiry.” That, Mr. Speaker, is interesting only because, certainly in this House during parliamentary questions …
“The Government’s disputed airport redevelopment” —and these are the words of the . . . the paper, not mine— 2“The Government’s di sputed airport redevelopment contract is to be invest igated by the Commission of Inquiry.” That, Mr. Speaker, is interesting only because, certainly in this House during parliamentary questions and the m otion to a djourn, we have wi tnessed and it has been reported (because as we know, these matters are being discussed in other parts of the parliamentary process ) a failure to di sclose despite certain requests made by a certain committee. Matters have been raised by the c hairman of the c ommittee on th e floor of the House and certainly have been answered, at times, by the Minister of Finance, answers that perhaps can be judged as less than adequate. Well, it is very interesting. We, on this side, would like to know . . . well, will the Commission of Inquiry experience the same reception and response to questions as has the Public Accounts Committee?
2 Royal Gazette , 28 June 2016 2542 13 July 2016 Official Hansard Report
Bermuda House of Assembly We know what the powers of the Commission of I nquiry are. We know, as is with the Public Accounts Committee, those powers are legally sanctioned. But as has been reported widely in the public domain and in this House, there has been a failure to respond to certain requests of that c ommittee. Well, we raised the questions . It is going to be very curious to us to see how the Government will respond to requests when they are made by this Commission and, depending on their response, what will happen. We do hope, Mr. Speaker, that the Premier will perhaps give some direction in this in that this is a Commission that was embodied by himself under the Commission of Inquiry Act to investigate certain matters. And certainly it is hoped that its efforts will not be inhibited in any way. So the question begs to differ, will the r esponse of the Government [to] its own Committee— not a House Committee, to its own Committee—be in the same way it has responded to the Public Accounts Committee, which is embodied under the Parliament Act 1957? We would hope that the response to that committ ee will be in keeping with the law, in keeping with the true spirit and letter of whatever request is made, and that the Government does not find itself in a very difficult position of perhaps not fulfilling its obl igations under which that Commission is embodied. Because if this process of a Commission of Inquiry is to be as truthful , disclosing and fair , the Government should certainly respond to its requests for all the matters fully, to all the matters upon which that Commi ssion is embodied to actually address. And we do hope we do not find, Mr. Speaker, the response of this Government to the Commission of Inquiry , as has been witnessed and at least explained , perhaps the Government disagrees with those explanations, but these have been explanations that have come from the Public Accounts Committee itself to requests that it has put to the Government and the lack of response to those requests. So that is what we are relying on. So we do hope in the future as this Commission continues to do its work and that work is reported on, we do not find that certain matters the Government is prepared to answer but then there are others which the same level of lack of disclosure is experienced. We believe that will be a problem for our democracy, that will be a problem for good governance, and for all efforts at achieving transparency, disclosure, and openness that are desired. That at some point in time when the process that this Commission is engaged in we do not find the Government’s response to be as equal to what it has done to the Public Accounts Committee. I raise this concern because, Mr. Speaker, I believe it is important. It does seem as if this issue has been kind of passed over as to the fact that this Commission has decided to look at this airport development very much different from the other matters which it is addressing, which are specifically to the Audit reports that were presented. So we look forward to seeing what is ult imately disclosed and that it contributes positively to the work of this Comm ission. Thank you very much, Mr. Speaker.
The SpeakerThe SpeakerAll right. Thank you, Honourable Member. Honourable Members, the House is adjourned to Friday , July 15 th. [Gavel] [At 5:28 pm, the House adjourned until 10:00 am, Fr iday, 15 July 2016.]