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Bermuda's History from 2000 to 2005

Significant events and social consequences covering this five-year period

By Keith Archibald Forbes (see About Us) exclusively for Bermuda Online

When referring to this web file, use "bermuda-online.org/history2000to2005.htm" as your Subject

2000

• The German color mini TV series "Inselfeiber" was filmed partly in Bermuda. It was written and produced by Jens Fintelmann and Thomas Seekamp. 

• Bear Stearns was ordered pay out $125 million to investors who were left high-and-dry by the collapse of Bermuda-administered Manhattan Investment Fund in 2000. The New York broker continued to accept $125 million in margin payments from the fund's Bank of Bermuda account during the final year leading up to the collapse of the fund in March 2000, which left investors with more than $400 million of losses. It has been argued in court that Bear Stearns continued to extend margin to the boss of the fund Michael Berger, up to a year or more after it should have known he was acting in a fraudulent manner. Austrian-born Berger pleaded guilty to fraud in November 2000, some eight months after the fund collapsed. Investors lost more than $400 million when the fund collapsed seven years ago after being exposed as a "Ponzi" scheme that cheated around 300 investors. Companies involved in administering and auditing for the fund were ordered to pay out tens of millions of dollars in liabilities. Deloitte & Touche, the fund's Bermuda auditors agreed to pay $32 million in a settlement relating to its part in the collapse, while Fund Administration Services (Bermuda) Limited, an affiliate of Ernst & Young who administered the fund, paid out $40.8 million. The Manhattan Investment Fund fraud came to light when Deloitte & Touche withdrew approval for the fund's financial statements for 1996, 1997 and 1998.

• June. Tall Ships arrived in Bermuda for the Tall Shops 2000 Race, second leg, Cadiz to Bermuda, June 9 to 12. The Bermuda Monetary Authority issued three commemorative coins, the Gold 0.5 oz for $300; the Silver Proof 1 oz for $40;; and the Cupro-Nickel 1 oz for $15.Vessels that arrived in Bermuda were splendid.

• July 1. Saul Froomkin, Queen's Council, a former Attorney General of Bermuda, was appointed Canada's Honorary Consul to Bermuda. This was requested by Canada in 1999.

• Sorry, but other 2000 information is not available here. 

2001

• NASA's Cooper's Island base was closed. It was first established in 1961 and used as a tracking and communications facility for various space programmes, including the Mercury and Apollo missions and space shuttle flights because of its key geographical position in relation to launch trajectories for space vehicles blasting off from Cape Canaveral in Florida. After  shut down, it became a collection of abandoned buildings and related structures. Part of the area was earmarked by Government as a future nature reserve and visitor centre.
• July.  Tucker’s Point Club Hotel & Spa, St. George’s was approved via a Special Development Order
• September 9. Legendary Travel Journalist Arthur Frommer was in Bermuda at the Society of American Travel Writers Bermuda conference and advised people to stop "trivial" travel writing. He abhors the kind of "trivial" travel writing that does not make waves; is not relevant; does not believe in travel criticisms when due; and encourages journalist and travel writers to write uncritical pieces after enjoying "junkets" - free trips - from hotels or airlines but at local or overseas taxpayers' expense.
• September 11. The world's worst terrorist attack occured at the World Trade Center, New York. More than 2,974 people were killed when 19 al Qaeda terrorists hijacked four passenger jets. Two aircraft flew into the World Trade Center in New York while another hit the Pentagon and a fourth crashed into a field in Pennsylvania. Among the dead were Boyd Gatton and Rhondelle Cherie Tankard of Bermuda. Mr. Gatton, 38, was working on the 97th floor of the World Trade Center with the Fiduciary Trust Company when the attacks took place. Ms Tankard, an employee with Bermuda-based insurance company AON, had started work there just two days earlier. 
• October.  Harbour Court Tucker’s Point Club, St. George’s was approved via a Special Development Order.
• November 9. Public Health Act 1949 was amended to ensure the regulation of businesses that practice tattooing, electrolysis and body-piercing.

2002

• February 12. An Olympic-sized cheer abounded across the Island yesterday on the news from the Ministry of Telecommunications, CableVision and Bermuda Broadcasting Company (BBC) that coverage of the Winter Games would be expanded. Three local channels will now be broadcasting the 2002 Olympics from Salt Lake City for the duration of the Games - ZFB channel 7 (which holds local broadcast rights for the Games) and cable TV channels 6 (WDIV) and 25 (CNBC). Local coverage of the Salt Lake City games first fell under heavy criticism when technical problems resulted in complete blackout of coverage for a couple of hours Friday evening. While that problem was rectified, hockey fans continued to fume over the CNBC blackout because ZFB 7 was not airing any Olympic coverage at all while the popular winter sport was being shown on channel 25 - which CableVision subscribers pay for but were unable to watch. Yesterday, however the Ministry of Telecommunications brokered a deal to satisfy all fans of winter sports. Although BBC hold exclusive rights to the Olympic feed in Bermuda and originally intended to air coverage only on ZFB 7, company CEO Rick Richardson instructed local cable TV provider CableVision to end the blackout of CNBC last night. "We are pleased that both parties were able to reach an amicable solution," said Telecommunications Minister Renee Webb yesterday. "We believe this decision clearly reflects the Ministry's commitment to ensuring that the best interest of the general public comes first."  ZFB 7 will continue its broadcasting of the Olympics as originally scheduled and that feed will also be carried on WDIV channel 6, the BBC statement added.

• February 19. Yesterday’s front page story in the New York Times — “US companies file in Bermuda to slash tax bills” made headlines. Some weeks ago, in the wake of a series of negative press reports about Bermuda relating to the collapse of Enron and Global Crossing Ltd. and the difficulties facing Tyco and Elan International, the daily newspaper warned that Bermuda needed to mount a media counter-attack. The need for a full response became more pronounced yesterday when the New York Times described how one Bermuda-based company had moved from its New Jersey headquarters to Bermuda and as a result paid $27,000 per year to Government instead of $40 million in corporate income taxes to the United States. Last week, another manufacturing company, the hardware company Stanley Works, announced it was moving to Bermuda as well. The primary reason was to reduce its tax bill. And it said its profits would be $30 million higher in the next quarter as a result. Bermuda has spent decades trying to shed the tax-haven label. The New York Times also added a new twist to the question, by quoting an expert who said the issue for companies was, quite simply, patriotism or profit. Investors and stock analysts may prefer reducing taxes and raising profits, but many Americans, and almost all American politicians, will prefer patriotism in the wake of September 11. The truth is that companies like Stanley Works, which will have no corporate presence in Bermuda, do very little to boost the Bermuda economy. It is the companies with a physical presence — some three percent of the total — that contribute 70 to 80 percent of the money international companies bring to Bermuda. Then too, as Bermuda was at pains to explain to the Organisation for Economic Cooperation and Development last year, Bermuda does not have a preferential tax system. No companies pay corporate income taxes in Bermuda. When the OECD was tackling tax havens, the Bush Administration was reluctant to give it much support , regarding Bermuda and other reputable offshore financial centres as places that increased the efficiency of the global economy. And companies like Stanley Works move because they are at a disadvantage with their overseas competitors. Reducing their tax rate helps them to compete in foreign markets, and that is good news for the US economy. It is also worth noting that companies that move offshore only reduce their tax bills — they do not eliminate them. Even companies like ACE and XL, which were founded in Bermuda and do business all over the world, pay hundreds of millions of dollars in US taxes, they have to do in order to do business there. But that does not mean they should pay taxes to the US on business they do in the UK or Germany. That message must be made to policy makers in Washington and elsewhere. It should be recalled that one prime time TV programme effectively killed the US bases in Bermuda. It is up to Government and the leaders of international companies to ensure that one front page New York Times story does not do the same for international business.

• March 20. The American Consulate submitted plans for multi-million dollar security upgrade and is seeking a special development order from Government to carry it out. Among the changes in store for the Middle Road, Devonshire property will be a steel picket fence around the perimeter of the property, a vehicle barrier at the gate and new controlled access centre (CAC) building at set slightly back from the road. The United States Government chose to revisit security provisions at its overseas embassies and consulates following bombings at two African embassies four years ago. "After the horrific bombings in the American embassy in Nairobi, Kenya, and Dar Es Salaam, Tanzania in August 1998, the Department of State - by mandate of the US Congress - undertook an ambitious project to upgrade the security at all American diplomatic facilities around the world," wrote acting US Consul General Karen Emmerson in a letter accompanying the Planning application to Environment Permanent Secretary Brian Rowlinson .The letter went on to state that the work began in 1999 but was undertaken in order of priority. "The major upgrades needed to bring the Consulate General up to congressionally-mandated worldwide security standards include; construction of a nine foot perimeter wall/fence; a vehicle barrier and access control centre at the entrance gate; `hardening' of the interior walls on the ground floor of the building; and, installation of blast-proof windows." Consulate staff also took measures to inform area neighbours of the upcoming security changes. US Consul Jennifer Schools said every effort had been made to keep the appearance of the Consulate in line with Bermuda architecture. with the CAC building to resemble a small, Bermuda cottage. Ms Schools also said many of the routine forms people seek at the consulate, such as visa applications, will now be held in the CAC building.

• April 5. Surf Side Beach Club last night opened three new luxury three bedroom apartments, which are part of a $5 million facelift at the Warwick resort. Owner Naval Mehra also revealed he is hoping for final planning approval for an additional identical three storey development, which will take the resort to 49 units. The three bedroom seafront units, which cover an entire floor, include sitting room, full kitchen and laundry facilities, are available from April 13 at $850 a night. Alternatively, a one bedroom unit on the floor can be let separately for $350 a night. Mr. Mehra's company, Bermuda Resort Hotels - which also owns the Harmony Club and new Wharf executive suite hotel in Paget that is due to open next month - has spent a total of $5 building the new units and upgrading ten executive suites. At the opening last night, he paid tribute to Tourism Minister David Allen's Hotel Concessions Act for making the new projects possible. "The Minister of Tourism came up with the brilliant idea of the Concessions Act and we did a lot of work with his department to make this happen," he said. "The Government has encouraged people to invest in Bermuda, and this product is the result of the Hotel Concessions Act. My sincere thanks to the Government and Ministry of Tourism for helping us achieve this dream and this goal. We're now bringing Surf Side to the standard we always wanted the property. When we took over, it was 30 years old, but it is a great jewel and we are polishing it and bringing it back to life." Mr. Mehra denied he was involved in moves to buy White Sands in Paget. Mr. Allen, who was at the opening, said the new units at Surf Side were one of the "first fruits" of the Concessions Act, which gives tax breaks to hotel owners to upgrade their property and to rebuild. `I am very happy to say this is an early product of the Hotel Concession Act and I want to congratulate Naval for his faith in the future of Bermuda by investing in Bermuda's future," said Mr. Allen. "This demonstrates what we want to accomplish, not just by reinventing the tourism industry, but also the physical structure and the service."

• June. The Queen's Golden Jubilee was celebrated in Bermuda. at Government House. Thousands of Bermudians were invited.
• June 18. In its "Exchange of Notes" when everything was formally handed back following the end of the US Bases in Bermuda in May 1995, Item 5 reads:....."The Government of the USA will pay the Government of the UK for the benefit of the Government of Bermuda, the sum of Eleven Million Dollars in consideration of the termination of all obligations relating to the maintenance and repair of the Longbird Bridge......"  
• June. The Bermuda Government's  National Office for Seniors and the Physically Challenged was formed to provide a central point of access to government services. 
• Tourism Minister David Allen was airlifted to the United States for medical treatment after undergoing tests in King Edward VII Memorial Hospital. The nature of his illness was not disclosed, but Acting Tourism Minister Alex Scott last night dismissed a report on VSB that Mr. Allen had undergone a five-hour operation for kidney failure. He said Mr. Allen was advised by doctors to get further tests in the United States after he underwent treatment at KEMH. He added that he spoke to Mr. Allen on Saturday evening and he had improved and was in better spirits than when he left Bermuda on Friday. Mr. Allen should be back in Bermuda “shortly” although he could not say when. And Premier Jennifer Smith, who is due back on the Island this week, will decide who will take up his post in the meantime. Mr. Allen was taken out on an air ambulance on Friday to the Lahey Clinic in Massachusetts, which is regarded as one of the top hospitals in the US.
• Tourism Minister David Allen died, of cancer. Minister of Tourism, he was the only white Cabinet member of the PLP Government and had supported it for decades. He had a full state funeral. 

Late Tourism Minister David Allen

• August 19. Patients facing the daunting and ridiculous prospect of having to pay up front to have their babies delivered and for other surgical procedures can, apparently rest easy again after Government announced on Friday that a settlement had been reached between insurers and physicians. But this "settlement" does not constitute a final agreement, merely a ceasefire while a new fee schedule is worked out. That means that doctors and insurance companies may again disagree on what constitutes fair payment for their services. But the row is a chilling sign of how fragile the Island's health insurance system can be and how easily it can be turned on its head. And it is worrying that the dispute could have led to a person being denied an essential medical service because they could not pay up front. It did not come to that, and it is difficult to imagine a physician actually taking this dispute that far; but the possibility nonetheless remained. While the argument between the physicians and the insurance companies has been the most public dispute, it is only one of the potential flashpoints in the health care system. Health Minister Nelson Bascome said on Friday that the health system has worked well, and for the most part he is correct. No one in Bermuda is denied health care. The young and the elderly receive high quality basic care at little or no cost, while Government's Health Insurance Plan (HIP) does the same for people of working age. The private insurance companies provide higher levels of service to people who are employed. The hospital and Government's other health clinics provide a high standard of care, especially given the Island's size. This mixture of public and privately funded health care has served Bermuda well, as Mr. Bascome said. It has avoided the worst problems of 100 percent publicly funded health care, like the years-long waits for "non-emergency" surgery that have come to epitomize Britain's National Health Service. It has avoided the inequities of private health care, as epitomized by the refusal of some US hospitals to treat uninsured patients. Nonetheless, Bermuda's system does face a number of challenges. Clearly, the question of how much insurance companies are prepared to pay physicians is one issue that has to be resolved. More seriously, the issue of elderly patients whose access to major medical health insurance is cut off then they retire has to be addressed, either in conjunction with pension schemes or via some other from of group health insurance. But the notion that a person can pay health insurance premiums for upwards of 40 years, only to be cut off when they most need insurance is invidious. The problem of skyrocketing medical costs is next. Generally speaking, medical costs have risen at three or four times the general rate of inflation in the last five of six years. That's why physicians are arguing with insurers and it is why the insurers are arguing with the hospital, it is also why the hospital runs at a deficit every year and, finally, it is why the consumer keeps having to pay more for health insurance and health treatments. While Mr. Bascome needs to resolve the question of a new rate of payments between the insurance companies and physicians, he needs to solve the more serious issues which are looming for health care.
• September 9. Death, in Canada, at the age of 82, of Edward DeJean, one of the founding fathers of the Progressive Labour Party in Bermuda. Although a Canadian, in Bermuda he was a teacher, school principal, football (soccer) coach, political activist, role model and mentor to many.

• October 23. The Bermudian Business magazine, once a quarterly publication, will now be publishing six issues a year. The issues will be produced every other month starting with the February/March issue, and the first issue will highlight the top ten businesses in Bermuda.

• The Government was given $11 million as part of the Baselands deal signed in Washington D.C. In the deal, the US refused to pay to clean up the pollution of its two former bases, but did give the Island $11 million for Longbird Bridge, which US troops built and which has been plagued with mechanical problems.
• November 8. The first Bermuda Culinary Arts Festival (BCAF) came to a close on Monday after a weekend-long series of seminars, cooking demonstrations and tastings hosted by celebrity chef and Food Network star Sara Moulton, and Gourmet magazine's wine consultant Michael Green. The three-day event, which was held at the Fairmont Southampton Princess Hotel and was developed to encourage visitors to travel to Bermuda, was hailed as a fabulous success and is set to be even bigger next year, according to Graham Redford, managing director of the firm that organized the BCAF, Total Marketing & Communications. "It was a great success. Visitors were absolutely raving about it. And they thought it provided great value for money," said Mr. Redford, noting that he hopes to attract more visitors and locals next year. "The success of the event overall is not only that the visitors come and have a good time, but that the locals accept it as part of the calendar and that they support it and want to be involved," he said. "We definitely want to get more locals to be a part of the festival next year." Presented by the Department of Tourism, the Bermuda Electric Light Company, the Fairmont Southampton Princess and Gourmet magazine, Bermuda's new culinary event was planned to be similar in nature, but sufficiently different from other food festivals around the world so as to differentiate Bermuda as a unique place to visit, according to Mr. Redford. To that end, the organizers partnered with global food and beverage publication Gourmet magazine to garner international media exposure and reach an attractive target market. "The demographics of the Gourmet reader are similar to that of the customer that we were going after so it made sense to partner with them," said Mr. Redford. "As well, we got the added benefit of celebrity chef, Sara Moulton." While the gourmet event was initially planned for November 2001, it was postponed due to the tragedy of September 11 and eventually rescheduled for November 2002. With a star-studded roster of world-renowned chefs from the United States and England, festival visitors were able to see, hear, smell and taste the makings of culinary masterpieces. As well, they were treated to authentic Bermudian delicacies prepared by local chefs in addition to wine tastings, celebrity chef hosted dinners and book signings with Sara Moulton. The Bermuda Culinary Arts Festival also featured the People's Choice Awards, a culinary competition between various Bermuda restaurants sponsored by Butterfield & Vallis and Conagra Foods. The competition, which ran from October 14 to November 2, enabled the participating restaurants to feature a four-course fixed menu with wine pairings. Diners were able to judge and score the People's Choice menu based on specific criteria such as creativity, presentation and visual appeal, culinary techniques, taste, texture, temperature and flavour, service and wine pairing. The epicurean weekend wrapped up with a charity golf tournament benefiting the Windows of Hope relief fund and a local culinary scholarship.

2003 

• February 9. Death of Dr. the Hon E. S. DD. Ratteray, former UBP Minister (Education, Planning), dentist and activist,  only 68. Full details in The Royal Gazette of February 10, 2003.
• April 27. Shaundae Jones, 20, was shot in a car pulling away from the Club Malabar nightclub in Dockyard around 3 a.m. The gunman jumped on the back of a motorcycle ridden by an accomplice. Police believe the Bermuda College student may have been the victim of an "east vs west" revenge attack over a relatively minor incident.
• June 13. Opera singer Jose Carerras - one of the Three Tenors - was at the Maritime Museum to lead an early salute to Bermuda's discovery in 2005. Tickets were over $100 per person.
• July 24. The Progressive Labour Party (PLP) again defeated the United Bermuda Party (UBP), this time by 22 seats to 14. Jennifer Smith was deposed as Premier, replaced by the Hon. W. Alexander Scott JP, MP with Dr. the Hon. Ewart Brown JP, MP as Deputy Premier. Mr. Scott remained Premier for three years. 
• August. Bermuda Immigration Officers denied seven Chinese nationals, who were seeking to use Bermuda as a backdoor to the States by using false Japanese passports, entry to Bermuda from the United Kingdom and sent them back on the plane to London. Earlier in the year they had entered Bermuda from the UK using false Japanese passports but were arrested after being apprehended by US Immigration officials as they attempted to depart Bermuda for the USA using the Bermuda-USA airport pre-clearance system.
• September 5. Hurricane Fabian ravaged Bermuda. It was the strongest storm to hit Bermuda's coast in four decades. It began mildly when Bermuda woke to winds gusting between 25 mph and 37 mph as Hurricane Fabian had it sights set on Bermuda. The hurricane approached the Island from the south, south-west and moved north. The eye of the storm, which was 50 miles from north to south and 30 miles from east to west, then travelled across the Island bringing the highest winds. The wall of the eye skirted to the West sitting on the Island for about three hours in the north-east quadrant, traditionally the strongest part of the storm. By 5.55 p.m. when the strongest winds of 150 mph were recorded, the Island had already lost four lives on the Causeway.  They all died when they were swept from the Causeway during the hurricane.  P.C. Stephen Antoine Symons, 37, P.C. Nicole O'Connor, 29, Station Duty Officer, Gladys Saunders, 48, were trapped on the bridge in one car. Stephen Antoine Symons 'Chicken', 37, was one of two officers escorting Station Duty Officer Gladys Saunders, back to her home in Duck's Puddle, Hamilton Parish. A civilian, Manuel Pacheco, 23, an employee of the Corporation of Hamilton, was stuck in a second care behind them at about 2.30 p.m. He was returning home after securing his boat in St. David's. Although attempts were made to save them, fire fighters, police officers and a constructions worker had to abort the mission when the storm became too bad. The body of P.C. Symons was found two days later and the other victims were never seen again. During the day of Fabian there were reported gusts closer to 160 mph, however, around 4.55 p.m. the Bermuda Weather Service's monitoring equipment had shorted as water surged eight feet above sea level and recording stopped for two hours. The Weather Service crew were lucky to still have equipment to monitor after their meteorologist Brian Kolts told the Royal Gazette that five more knots would have blown the roof off their bombproof US military-made shelter. At about 6.55 p.m., the eye was north of Bermuda and the winds switched direction to come from a westerly direction on the comparatively weaker side of the storm. And by 11.55 p.m the next day, the hurricane winds had officially passed over the Island, with sustained speeds of 40 knots (46 mph) gusting to 52 knots (60 mph) hitting the Island. From then on, there was a steady decline in wind speed as Fabian blew out into the Atlantic northwards, and by 4.55 a.m. on Saturday the Weather Centre was barely registering tropical storm conditions, with sustained winds at 36 knots (41 mph). But what it left in it's wake was anything but calm. Estimated costs for damage from the storm ran in the area of $300 million. Around 25,000 out of 32,000 homes and businesses were left without power, though by mid-afternoon on Sunday, BELCO reported that 11,000 homes had their power restored. A 20-strong team from the Caribbean Electric Association, in Cayman, arrived on the Tuesday to offer help where they could. The East End of the Island, however, was cut-off for days after the Causeway was impassable. Days later it was open to one-way traffic, but still closed at night and finally in October the main artery of the Island was running as normal. Bermuda's hotels suffered, with the majority of the Sonesta Beach Hotel's roof flying off and the Fairmont Southampton also struggled to replace its roof. Fabian conveniently hit at the beginning of the school year and meant the opening of Government schools was delayed a week and they did not open until September 15. St. George's prep spent months recovering after the storm which wreaked havoc on the building and two years after Hurricane Fabian ravaged the Island The Department of Parks and the Ministry of Works and Engineering started repairing the entrance to Church Bay, which was badly damaged. Later, the September 5th Foundation, a registered charity, erected a memorial bench in Kindley Field Park, near to the scene of the tragedy. The foundation since created a scholarship fund for the Fabian victims' children. 

• October 28. The Bank of Bermuda has accepted an offer from HSBC Holdings Plc, the world's second- largest bank by market value, to be bought for $1.3 billion in cash. Bank of Bermuda shareholders will receive $45 per share, 16 percent more than the average closing price for the past three months on NASDAQ, London-based HSBC and the Bank of Bermuda said. "The acquisition will significantly enhance our capabilities in some important lines of business," HSBC Chairman Sir John Bond said in a statement. Founded in 1889, Bank of Bermuda has assets of $11.8 billion and 3,000 employees in 13 countries. The lender earned $83.9 million before taxes, or $2.53 a share in 2002, HSBC said, pricing the transaction at about 18 times earnings. Bank of Bermuda's board of directors will recommend that shareholders accept the deal at a special general meeting. The deal has received the support of the Ministry of Finance. The bank's private client business has about 5,000 clients controlling $21.7 billion in assets. It also helps administer about $113 billion in assets for institutional investors. The board of Bank of Bermuda has approved the sale and will recommend it to shareholders, HSBC said. Bank of Bermuda shareholders will receive $40 per share in cash from HSBC and $5 per share from Bank of Bermuda as a special dividend, according to the statement. Bank of Bermuda will pay the dividend before the acquisition is completed. HSBC shares gained 2.5 percent to 865.5 pence in London. Bank of Bermuda shares jumped to $44.88 in afternoon trading. Bank of Bermuda was advised by Merrill Lynch.

• November 13. Bank of Bermuda president and CEO Henry Smith yesterday confirmed that he will be leaving his post within a year of the bank being bought out by HSBC. Although still subject to shareholder and regulatory approval, multinational banking giant HSBC is set to close on its purchase of Bermuda's largest bank, in a deal worth $1.3 billion announced at the end of last month, during the first quarter of next year. Mr. Smith, who will be leaving the bank after 30 years and having worked his way from teller to the post of CEO for the last seven years, said yesterday in an interview with that he hopes that he will be asked to stay involved as a director of the board, and perhaps also continue to be involved with the Bank of Bermuda Foundation. Mr. Smith said: "It is going to get out so I might as well address it. The intent of HSBC is indeed in the spirit of Bermuda law, we are actually obliged by law to have Bermudian minded management, and we are actually obliged to have a predominately Bermudian board. In the spirit of that law, HSBC intends to keep the senior management in place." Mr. Smith added, however, that he and CFO Ed Gomez were not part of that deal. Mr. Gomez is to be replaced by an HSBC appointed chief financial officer and Mr. Smith has been asked to stay on for up to a year, but not more. A Bank of Bermuda spokesperson yesterday said it was too early to determine whether the post of CEO would go to a local management person or an HSBC executive, once Mr. Smith quit that post. Yesterday Mr. Smith said: "They will not need a CFO. He (Ed Gomez) will be leaving and that is normal. And they have also made it clear to me that they will not need my services after a period of time. That would be the time it would take to bed the transaction, make sure everybody is settled. I am committed to them for one year.. Part of me is a little disappointed to leave the place I have worked in for 30 years � and by then it will be 31 years. I'm losing my job. That is a fact, I will lose my job. And that does concern me, when I lose my job I will be 55. I could retire at that age, but in terms of my abilities and my desires, I am well before retirement age. I am going to have to go find another job," he said, but added: "Is that bad? No, I think I can find one. I have skills that are marketable. But is it sad? Yes, I'll be leaving the place I've spent 30 years in; leaving the people I have worked very close with. But I can tell you one thing I'm not leaving until I make sure that we have done this the best way possible and until we make sure that as much as I can do it, our people are looked after. If we can do that quickly and HSBC no longer needs me, maybe I'll leave earlier but I am committed for a year." As for what he will do after the bank, which is the only place he has ever worked, Mr. Smith said he would look for a new job, either here or overseas, but may take a breather first. "I might take some time off, but I'm not one of these people that is going to sit around. I've always said that I will never work (at the bank) to retirement age. I never intended to do that, there was always going to be a point in my career where I left to do something different. And here is an opportunity for me to do that. I hope that HSBC would want to keep me on the board, I'd like to stay involved, if they'll have me. And hopefully with the foundation as well. But I would like to take some time off. Not necessarily because I need to make a lot of money, but to keep busy. I don't think retirement is all it is cracked up to be. I cannot see doing that." Mr. Smith added that he may have made the choice to leave the bank, even if HSBC had asked him to stay on. "If they had asked me to stay, would I have? Probably not, because I would be going from running a global institution to running really, the Bermuda piece of it. And that is not good enough for me. So, this will be a mutual decision." Mr. Smith concluded that critics of the deal, and insinuations that senior management could have brokered the deal for personal gains, should see his leaving the bank as affirmation of his working to get the best deal for the bank's stakeholders and for Bermuda: "They are not firing me, but I think it is important that when some shareholders try to assign motives to me for trying to make this work, they need to keep in mind that to be fair, I will lose my job. And no matter what way you cut it, no matter how many shares I have, I have enough to be concerned that we get the right price. It affects me as much as anybody. Anyone who knows me will know that I am going to be sure to get the right price for Bermuda and for staff in particular. If I did not think this was the right deal, I wouldn't be sitting here talking about it."

• November 14. Bank of Bermuda chief executive officer Henry Smith told The Royal Gazette this week that negotiations with HSBC were so top secret that he couldn't tell his wife and a family vacation was even cut short. “All of this stuff was going on and she didn't know,” Mr. Smith said candidly in an interview. “It was very frustrating.” For the first time, Mr. Smith shared behind-the-scenes details of HSBC's $1.3 billion acquisition of the Bank of Bermuda. “One of the frustrations was, we - and there I mean the board and executive officers - couldn't tell our wives what was going on. I could not tell my wife, I was going to London, to New York. Some of the meetings were in London (where HSBC is headquartered for its network of banks spanning 79 countries) and others in New York and very few were in Bermuda. Those (on the Island) were near the end (of the negotiation). And most meeting were held on what I would call neutral ground, we would meet in a hotel.” But Mr. Smith said that there still hasn't been a big celebratory night out. “We haven't had one yet but I guess we will. I never count my chickens before they are hatched so I don't believe in celebrating something you have not achieved.” Did he find it intimidating to negotiate the sale to multinational banking giant HSBC? The veteran of the bank, who worked his way up from the post of teller 30 years ago to CEO for the last seven years , said it was daunting initially, but that soon passed. The announcement that the bank, Bermuda's biggest, was being bought out by HSBC came late last month, and following months of speculation that the bank was being targeted for acquisition. Mr. Smith said that negotiations started in February and that HSBC was the one to express interest first. “It was a little intimidating I guess but we went into that process with advisors in place. When we did our listing (on the NASDAQ, which took place in April, 2002), Merrill Lynch was advising us and has for a long time. When we were approached by HSBC we immediately got Merrill on board. So it was a little intimidating, but you get over that quickly. At the end of the day, you either do a deal or you don't. They did not have any leverage us, they could not force it to happen. If we did not like the deal, we would have said no. And even today if someone came along with a better offer, we would have to consider it. Dealing with HSBC was not a real problem. We did have to negotiate; they were tough, and they do not like paying $45 I can tell you, but Mr. Smith, 54, said: “But we were not negotiating without tools, keep in mind none of us is a babe in the woods.” He said that negotiations took place between the bank's top three senior managers - himself, chief operating officer Philip Butterfield and chief financial officer Ed Gomez - with the heads of certain business units at HSBC. He said on the HSBC side, they were dealing with people who report to chairman Sir John Bond. Although both sides were liaising with their own advisors - for the Bank of Bermuda that being Merrill Lynch - they were not at the forefront of negotiations. Sir John, the formidable head of HSBC, has yet to play a direct role in the $1.3 billion acquisition of the bank. Mr. Smith has met Sir John but said that dated back to before the sale, although he said he expects he may come to the Island once the deal is closed. “I know Sir John. I attend a number of forums as head of this bank that he attends as head of his bank. And I first met him years ago. I wouldn't say that I know him terribly well but we certainly know who the other his and we have had discussions at various meetings.” So how does a billion dollar deal take shape? Mr. Smith said it was very business like and since the deal is still awaiting shareholder and regulatory approval, there have been no lavish celebrations. He said: “When the board agreed to recommend it (the deal) to shareholders, we then signed an agreement with HSBC to pursue the transaction. At the signing, I signed and shook hands with Iain Stewart (general manager of group operations for HSBC) who signed on their behalf. But when the transaction goes through, it will be at a higher level. If the shareholders approve the transaction (a meeting to vote on the deal is set to take place in the first quarter of 2004) then there will be a closing ceremony and I assume we'll have Sir John Bond and our chairman, Joe Johnson, there and that would take place in Bermuda.” When asked if negotiations were in a social or business setting, Mr. Smith said: “As a general rule, we raise ideas with clients in social settings like dinners, golf, what have you, but we actually do the business in a business environment. That is true with clients and it is certainly true with something like this. None of our meetings were social at all.” Mr. Smith said he isn't taking anything for granted until shareholders vote on the deal. “Even If you add up all of the votes of the Bank of Bermuda Foundation (the bank's largest shareholder with 11 percent of the bank's shares), the board, and management and so forth, you are still a long way from getting the votes that you would need. Nothing is going to happen until shareholders have the proxy information (which is scheduled to be sent out in the next few weeks and will include Merrill Lynch's fairness opinion on the price of the deal) and get a chance to vote,” he said. Mr. Smith concluded that nothing was certain until those who own the bank, its shareholders, have their say on whether or not the bank should be sold.

2004

• February 27. Independence? No. Retired lawyer and former United Bermuda Party MP and Cabinet Minister William Cox published 2,000 copies of this epistolatory booklet in which he makes plain that his sympathies lie with maintaining Bermuda's current constitutional position. In a foreword to a collection of seven letters mostly relating to Bermuda's constitutional relationship to the UK, Mr. Cox makes the case that "Bermuda has always benefited from this UK connection and the peace and prosperity we have enjoyed throughout our history and still enjoy is in no small measure due to this connection". He advises that "as with all relationships, if it is to work it must be a two-way street, which means it is necessary for there to be good relations between the Governor and the local Government." Mr. Cox takes successive Governments to task, arguing that while "the UK Government has always gone more than half way to meet the aspirations of the Bermuda Government . . . the Bermuda Government has not displayed the same goodwill in return, especially in the last 30 or so years". He lists a dozen events or factors that have made things difficult for the UK Government to work in harmony with the Bermuda Government over these years, including the 1972 murder of Police Commissioner George Duckett, the 1973 murders of Governor Sir Richard Sharples and his aide-de-camp Captain Hugh Sayers, and the decision of "the Gibbons Government" to hang the perpetrators. He alleges that "the 1983 Swan Government, spearheaded by the Finance Minister David Gibbons, publicly hounded Governor Richard Posnett out of office on trumped-up, spurious charges" and that the Pamela Gordon Government did likewise to Police Commissioner Colin Coxall in 1997. The Progressive Labour Party is not spared: Jennifer Smith is castigated for announcing the holding of a general election in 2002 without telling the Governor, and Premier Alex Scott for using the need for the appointment of a Chief Justice as an excuse to make irresponsible political and personal attacks on the Governor in the media. Mr. Cox warns: "If the Bermuda Government wishes to sever all links with the UK, it must hold a referendum and get a significant majority of Bermudians to support such a move." He suggests that "for members of the Bermuda Government not to observe at least the basic minimum of the courtesies which should be observed in ordinary human relations when dealing with the Governor indicates nothing other than bad breeding and ill manners".

• March 9. Campaigning for a referendum as the best means for deciding how Bermuda should decide on whether it should move to Independence is premature, Premier Alex Scott said yesterday. The Premier pointed out that the focus should be on making sure the populace is fully informed on Independence, and related issues, not on swaying public opinion. He added that Opposition Leader Grant Gibbons should be looking into "the merits of going to Independence, if we should choose to do so, by a General Election". Mr. Scott's call for an open, national discussion on Independence at his party's Founder's Day luncheon on February 29, was initially met with an overall positive reaction. But Dr. Gibbons later called for the Country to first agree on how Bermuda should go about the process of constitutional change and the transition to Independence before embarking on an open discussion. And the Opposition Leader said he was concerned that the Progressive Labour Party still held that the General Election is the best way to gauge the will of the people, and has been pushing his party's position for a referendum. Mr. Scott has already said that his party is willing to be guided by the people on the issue and that based on public feedback, the PLP may well decide to abandon its long held position, a stance not adopted by the United Bermuda Party. He said the discussion has not differed much from that in 1995 when the Country held a referendum on Independence. He agreed that the issue was hugely politicized in 1995. The PLP, in Opposition, urged supporters to boycott the 1995 referendum.

• April 1. Bermuda became a 'designated territory' under the Financial Services Act of the United Kingdom. See http://www.fsa.gov.uk/pubs/mou/mou_bermuda.pdf.

• April 30. Premier Alex Scott wants a review of Government departments' financial management systems to clamp down on instances of public money going missing. Last week Government clerk Clayton Albert Busby was jailed for three months after admitting to stealing $159,493.37 from the Government Employee Heath Insurance scheme. Another employee of the Accountant General's department has been charged in the disappearance of $1.9 million. And an Immigration officer is currently on suspension following allegations that money had gone missing. "We are tremendously disappointed with anyone accused of taking advantage of a position of responsibility," the Premier said. "We have fought over the years to have Bermudians realize these positions of importance and it's unfortunate when folks take advantage of that. I think a review is required. Any time something happens like this, it is important to have a review so you know that your systems are the best. Some of these cases have not been heard, so they are only allegations at the moment. The fact you and I can talk about it is because they were caught. There is the thought that the system should have revealed it earlier. Is Government satisfied that they were caught? No. There's an annual review by the Auditor General and we review the protocols. Perhaps we could benefit from a tighter review of the protocols governing financial aspects of our management systems. But you have to be careful in any company or department when people are accused, that you don't make your accusation prematurely, that you don't botch the case against them. You have to have clear evidence of wrongdoing." Last week Opposition Leader Dr. Grant Gibbons called for a review of procedures in light of the money going missing. Because of the lack of progress in the scandals at Bermuda Housing Corporation and the corruption there, some individuals may feel it is open season on tax-payers' money," Dr. Gibbons said. "They may feel there is a sense of permissiveness because of the lack of a strong message in terms of either prosecution, or from the Government."

• June. The Washington DC-based World Bank released its World Development Indicators report for 2004, ranking Bermuda #1 in terms of Gross National Income.
• August. An extensive survey was funded by Bermuda-based Atlantic Philanthropies Limited, and resulted in the report "Ageing in Bermuda: Meeting the Needs of Seniors" by Dr. Irene A. Gutheil and Dr. Roslyn H. Chernesky of Fordham University.
• October. An America-made car arrived on Bermuda’s roads, via Rayclan Limited. The first Chevrolets arrived in Bermuda, with three-quarters of the shipment sold before they hit the docks. Why? Because of the name GM; Chevrolet has a history of being a good car. While the Class D Aveo ($16,500) is by far the most popular model sold by Rayclan, the G Class Optra ($25,500) and Class H Vivant ($26,500) are quickly becoming hot sellers.
• November. The Imperial Hotel which stood at the corner of Church and Burnaby Streets in Hamilton for more than a century was demolished. Built sometime in the late 1890s, the hotel – one of the few black establishments on the Island – played a central role in the movement towards desegregation. Georgine R. Hill, MBE, whose husband Hilton G. Hill, MBE, was a travel consultant dealing largely with the hotel, had remembered some of the hotel’s glory days in Bermuda's socio-economic history as a centre for a great deal of activity. Many famous black people visited the hotel, some from the islands, but most from the United States. One was a young actor named James Edwards who starred in a movie called “Home of the Brave” in 1949, a war movie starring a black protagonist and dealing with racial prejudice. Because of the subject matter, Bermuda’s theatres would not show the movie, Mrs. Hill remembered. However her husband contacted Mr. Edwards, who came to Bermuda of his own volition – bringing with him his own copy of “Home the Brave”. The movie was shown at the Imperial Hotel, and Mr. Edwards traveled throughout Bermuda talking to Bermudians. The Leopards Club also met at the hotel for their famous luncheons, which they broadcast over the radio. At one time, black Bermudians were boycotting the Bermudiana Theatre, which did not allow black people on the basis of being a private club for “those of unmixed European descent”. A Harvard anthropologist visiting the Island had been invited to speak at a Leopard’s Club luncheon at the time, and he explained over the radio the science behind the races – and that there was no such thing as an “unmixed” race. The hotel was a place of great social and political activity, right in the centre of town, a great meeting place. At one point, Frederick Yearwood, an immigrant from the Caribbean, owned it. Jardine Gibbons Properties, who bought it and demolished it, will build a five-storey office block in the hotel’s place, to be used by the Gibbons Group of Companies as well as a local law firm and others. Pending planning approval the development should start early next year and take around 15 months to complete.
• Then-Transport and Tourism Minister Ewart Brown sparked a diplomatic incident when he was accused by the USA of failing to comply with routine security screening at Bermuda International Airport. The US Consulate in Bermuda said Dr. Brown had committed a gross violation of security procedure. US Consul General Dennis Coleman also criticised the Bermuda Government, saying its efforts to foster economic relations with Cuba was sticking a finger in the eye of the USA, which has conducted a long-standing economic embargo of the Communist island.

• December 25.  A Christmas Day fire occured at the Devonshire Tynes Bay incinerator area. The Tynes Bay Waste Facility itself was not damaged in the weekend fire and the plant was back in operation following shutdowns for maintenance. The pile of garbage that ignited was generated when one of the existing streams of the plant was taken down for routine maintenance in mid-November. A second stream was taken down to accommodate system upgrades and repair work on the boilers and furnace. This caused 50 to 60 tons of garbage to accumulate daily. Contractors cleared the site and removed debris to the Marsh Folly waste facility. The plant was again fully operational and normal garbage collection and disposal resumed although the Works and Engineering Ministry said no more bulk wood waste will be accepted at the plant until further notice although residents can still take domestic waste. The blaze was being investigated by the Fire Department and arson had not been ruled out.

2005

• 1st January. Bermuda's seniors who own homes in their own names became exempt from paying land tax from this date.
• February. Lt. Col. David Burch of the Bermuda Government told foreigners trying to get involve in the Island's debate on Independence to "butt out – this has nothing to do with you" when he addressed the Kiwanis Club of Hamilton.
• 40th anniversary of riots between Police and workers outside the BELCO gates. Former BIU organizer Ottiwell Simmons was one of those involved. It proved to be a turning point in labour relations in Bermuda in terms of addressing the inequalities between black and white workers.
• St. George's residents and Mayor E. Michael Jones expressed concern about raw sewage being pumped into the sea near Tobacco Bay through a broken sewage pipe.
• Bermuda is to feature in two documentary films about coral reefs. The films are part of "The Reef Series" being made by award-winning filmmakers Guy and Anita Chaumette.
• New regulations were put in place to prevent foreigners buying property on the Island unless they were buying from non-Bermudians. The policy was criticised as working against Bermudians by limiting their options to sell property.
• Celebration of the 400th anniversary of the discovery of uninhabited Bermuda by Juan de Bermudez, Captain of La Garza, a Spanish vessel. Bermuda is named after him.
• 75th anniversary of birth of radio broadcasting in Bermuda (1930) by Thomas Wadson.

• April 13. The Bank of Bermuda's controversial sale to multinational banking giant HSBC Plc. more than a year ago made it part of a vast global network that spans 79 countries. But what does that mean for bank customers here? On top of upgrades underway at all of the bank's Island branches, bank management say Bank of Bermuda clients, through HSBC, have access to many services which it wasn't possible for the bank to offer when it was a much smaller, albeit global outfit. And in the next year or so, the day will come when bank customers can be universally recognized throughout the multitude of countries HSBC operates in. That means bank customers will be able to get cash and account details from ATMs around the world - at 16,658 HSBC cash points, to be exact. The bank says its integration into the HSBC network is well ahead of schedule - and once the Bank of Bermuda completes its multi-million dollar migration on to HSBC's technological (HUB) system, it will be possible for bank clients to be recognized across the HSBC network. The system is also designed to be more intuitive about customers' buying habits. For example, there are certain dollar amount limits on how much money you can, say, spend or withdraw with a Bank of Bermuda credit card. This will all snap into place with the HSBC HUB system, which is designed to take into consideration a client's individual buying habits. With that information, the bank has the capacity to automatically authorize increases on credit card limits reflective of spending patterns and overall financial stability. But for some of the bank's preferred customers, there is already greater access to the HSBC network through a service designed to give “individual attention to you and your money”. The service isn't something you can sign up for, but it's yours if you have $250,000 and up on deposit or invested with the bank. The service - HSBC Premier - was officially launched from a plush and dedicated fifth floor space at the bank's Front Street headquarters on Monday. But the Bank of Bermuda already knows customers like the service, having been operating in a “soft” mode for several months. The bank has already signed up about 500 clients locally for the Premier service - a service offered in 33 global locations in which HSBC operates. David Lunn, head of Premier in Bermuda, said: “We are a portal into the whole of the HSBC network,” with clients being given personalized access to HSBC products and services, as well as Premier facilities wherever they are available around the world. Richard Brown, head of Bank of Bermuda's Personal Financial Services, said taking part in Premier has been attractive to “top tier” customers in Bermuda for numerous reasons. “Firstly it is the one-to-one service and the ability to have someone by name that you can talk to, and who will get back to you, instead of dealing with a different person every time. And there is a question of the branch environment: If you do have the need to come into the bank, it is a nice environment to come into.” Why set up the Premier service in Bermuda? Mr. Brown said: “Every country has its fair share of affluent customers and Bermuda has more than the average country....” Although offering very personalized service: piping hot coffee is waiting for you in the Premier Lounge, there are newspapers, an Internet terminal, business news on the television, more private access to an ATM from the Premier facility - you don't actually have to leave home to enjoy some of the Premier membership services. Access to specialist help from a dedicated relationship manager is at your fingertips through easy telephone access, or in person at the Premier branch or by personal visit at your home, if that is more convenient. Premier is apart from the private client services the bank offers to its elite group of high net-worth clients, but the former would ideally handle some of the banking needs for private clients as well. As a private client, the bank offers discretionary management of your affairs, including access to trust services, Mr. Brown said. “We are very much integrated. A key issue is identifying the customer need, and that takes place in a conversation between the customer and the relationship manager. If in the course of that discussion we discover, the best opportunity is to have discretionary management, our job is to refer them up to the private client group,” Mr. Lunn said. “The approach is very much to have direct conversations with customers. It is very important that the service that we offer matches the needs of the clients. The Premier banking service is very much personalized and there are some customers who are very happy to do things for themselves, and may determine this is not right for them.” Although the benefits of Premier may not be of interest to all, Mr. Lunn said 99 percent of the bank's conversations with those eligible for membership had been greeted with keen interest. t is not hard to see why, with it appearing that access to Premier services frees up its clients from many of life's more mundane tasks. The job of a Premier relationship manager is to help clients get the most out of what the Bank of Bermuda and HSBC has to offer, and can ‘fast track' members to specialist services within the vast HSBC network, a glossy 30-page brochure tells prospective clients. The Bermuda managers of Premier refer to it as “one stop” banking but stress that the personalized services extend beyond the obvious ones like access to financial planning, investment accounts, loans, multiple ways to access your money, and branded Premier banking accounts, debit cards and credit cards. Really, Premier is a bit like your personal assistant: the service can source emergency cash for you (up to $1,000 in many locations around the world, and around the clock), help you replace lost travel documents, arrange car hire and hotel stays, even have gifts delivered to that special someone when you are on the road. For the business traveler, Premier representatives can help you make arrangements at your destination for use of a conference room, a cell phone or pager, laptop computer, temporary staff services and interpretative services. The perks don't end there: A call from a Premier representative to a popular restaurant may get you a hard-to-get dinner reservation on the spot, they'll chase down lost luggage for you, arrange medical transport if a serious health problem can't be dealt with where you are, and God forbid you die away from home - Premier can assist in the return of your mortal remains.

• Tourism Minister Ewart Brown came under fire from one of his predecessors for an apparent "about-face" over mega-ships. Former UBP Minister Jim Woolridge condemned Dr. Brown's decision to invite mega-ships to the island and extend the cruise ship season until November, pointing to a statement made by the doctor five years earlier in which he said mega-ships would never be welcomed in Bermuda. Dr. Brown was also attacked after the Mid-Ocean News revealed that he attended a banquet hosted by the Reverend Al Sharpton in the USA – at the expense of taxpayers.
• July was a particularly hot month for Government which was even blamed for the weather. A lack of rain had water dealers working around the clock – and chastising the Ministry of Works & Engineering for failing to maintain leaky water tanks.
• An extensive fire at the Belco plant caused an island-wide blackout. The flames took 29 hours to extinguish with up to 75 firefighters battling the blaze at any one time. The Mid-Ocean News revealed that fire inspectors had examined the power plant just weeks before the fire, a precaution that helped them contain the damage.
• Bermudians without family ties to the UK are unlikely retain a British passport if Bermuda goes independent, according to a letter from Governor Sir John Vereker to the Bermuda Independence Commission.
• June. The 30th Regional Conference of the Caribbean, Americas and the Atlantic Region of the Commonwealth Parliamentary Association was held in Bermuda.
• 20th July. The body of young, wealthy accountant and businessman Peter Dimitri Pappas, 37, was discovered hanging in a clothes closet in Bermuda. The official legal inquiry to unearth the facts relating to his death - the Coroner's Inquest - has been repeatedly postponed. He was a US citizen, a long-time resident, certified public accountant and businessman in the Cayman Islands who was visiting Bermuda for personal and business reasons. He is survived by his parents, Sue Kongsli and Jack Pappas of Knoxville, Tennessee.
• July 20. Envirotalk, the publication of the Bermuda Government's Department of Environmental Protection, ceased publication.  Before that, it had been published monthly and was highly regarded.

• July 22. The Bermudian Publishing Company announced yesterday it will cut publication of its namesake 'The Bermudian' magazine from 12 issues a year to four in 2006 and will be making two of the company's four jobs redundant. The company will also print its publications overseas and relocate to an office outside of Hamilton, all in a bid to cut costs. Publisher and editor Tina Stevenson said the changes were the result of "difficult, but necessary business decisions." The company declined to say which posts were being cut, and said Bermudian Business will continue to publish six times a year. From October, 'The Bermudian' magazine will be printed in the US, a move that will reportedly shave approximately 61 percent off what the company has been paying locally in printing costs. 'The Bermudian', to date, has been printed by Bermuda Press Ltd.. a sister company of The Royal Gazette. The company also had office space in the Bermuda Press building. The next issue of the 'The Bermudian' will be the September/October issue, an issue commemorating the magazine's 75th anniversary, and it will not print again until the spring of 2006. The Bermudian Market Digest will cease publication immediately and the Bermudian Business Directory will cease publication in 2006. Beginning in 2006, the four issues of 'The Bermudian' are likely to centre around the Interior Design awards, the Building Design awards, Best of Bermuda awards and Christmas, the Bermudian said in a press statement. The Bermudian said the future of its book publishing business was also under consideration. The company said it was not up for sale.

• September 12. Two years after Hurricane Fabian ravaged the Island The Department of Parks and the Ministry of Works and Engineering are teaming up to repair the entrance to Church Bay, which was badly damaged by the hurricane. Workers will be building a new boardwalk and stairs to replace the damaged access, pictured right. The beach will remain closed until the end of 2005 so that construction can start.

• Auditor General Larry Dennis expressed alarm at another proposed change if Bermuda became Independent – that future holders of the post will be hired by the Public Services Commission on limited terms. Mr. Dennis told the BIC that an auditor appointed by a Government body would be compromised while the idea of a limited term would deter the most capable applicants. In the same week, business executives told the BIC that Independence would not necessarily trigger an exodus of international businesses. Former Attorney General Lois Browne Evans kept the issue bubbling with a further proposal – that an Independent Bermuda should drop the UK Privy Council in favour of the trouble-hit Caribbean Court of Justice. The UK Privy Council is the island's highest court of appeal. International business representative David Ezekiel said such a move had the potential to cause widespread instability in the off-shore sector. When the BIC finally submitted its completed report to the public, it was condemned for containing a glaring inaccuracy on the issue of Independence. The report read: "The Commission learned that, in many cases, the decision on Independence was determined by means of a general election and, in no instance, did the Commission discover the use of a referendum." Pressure group Bermudians For Referendum said the claim was totally inaccurate and illustrated the Commission's bias towards Independence being decided by election rather than referendum.
• Following talks with the UK's Parliamentary Under-Secretary of State in London, Premier Scott revealed details of the meeting to the island's media. He said that his proposal for Independence to be decided by way of a joint referendum and General Election was met with some interest by the British delegation who ruled that "such a unique solution of election and referendum would not necessarily be out of the equation". A Whitehall source later revealed that the UK Government was embarrassed by the leak, adding that protocol forbade either party speaking out on the behind-closed doors talks.
• October. The Premier was at the centre of another political storm. After receiving a terse e-mail from tourism activist Tony Brannon which alleged Government was failing the industry, Mr. Scott sent a memorandum to Department of Communication and Information director Beverley Lottimore – but inadvertently copies it to Mr. Brannon. Mr. Scott's e-mailed memo read: "Madame Director, FYI. "Mr. Brannon. In regard to the Freedom of Speech in Bermuda Mr. Brannon, you exercise it and abuse it every day. "P.S. Madame Director: You can now climb down off the ceiling – I did not send the above . . . I just got it out of my system by sending it to you and you alone. However, I am getting tired of listening to and taking crap from people who look and sound like Brannon." Mr. Brannon, who is white, accused the Premier of racism and made a complaint to the Human Rights Commission. Five days after the Mid-Ocean News broke the story, Mr. Scott issued an explanation through an advertisement in two other newspapers, defending his remarks and referring to Mr. Brannon's original message as "disrespectful and offensive and laced with obscenities". The Premier went on to say that his use of the phrase "people who look like Brannon" was not a reference to Mr. Brannon's colour, but was, in fact, a literary device employed by such scribes as William Shakespeare and Oscar Wilde. He did, however, apologies for using the word 'crap'. And he issued a veiled threat to curb the constitutional right to freedom of speech by launching "a major initiative to address those elements that seek to divide us". The Human Rights Commission later rejected Mr. Brannon's complaint, saying that, under current legislation, no offence had taken place.
• The Isle of Man and Bermuda became locked in a contest over satellite slot rights. The Isle of Man had intentions to use the satellite slot to earn potentially hundred of millions of extra dollars. But Bermuda counter-claimed to safeguard its slice of outer space.
• The Royal Gazette group reported that the issue of Independence came to the boil, with Premier Alex Scott blasting Governor John Vereker over public remarks made at the Speaker's Dinner. Sir John reiterated to his audience that the UK would withdraw citizenship from an Independent Bermuda – a claim Mr. Scott described as "premature and inappropriate. Responding to questions put to him by the Bermuda Independence Commission, the Premier said he gave the Governor a dressing-down, accusing him of allowing an octogenarian anti-Independence activist "right of Attila the Hun" to write his speeches. "I thought it was premature, inappropriate at the time, and it may have, in my opinion, misled the public because some of what he said will be discussed with the British before it becomes engraved in granite," Mr. Scott told BIC commissioners.
• The Royal Gazette group reported that new Works & Engineering and Housing Minister David Burch was accused of breaching Cabinet rules by continuing to host his Sunday night radio show after being appointed to the Ministry. The Premier eventually rejected Opposition calls for the show to be plugged, saying the code did not prohibit Ministers from practicing journalism. But the Opposition was further outraged when UBP Senator Gina Spence Farmer was told that she could not help produce a radio show presented by Bermuda College students – because of a supposed conflict of interest. The College, whose chairman is a Government Senator, told students that the programme might become political with Sen. Spence Farmer at the helm. Minister Burch kept his radio show in the spotlight by referring to programme callers critical of Government as "house niggers." Another caller took the Minister to the Human Rights Commission after alleging that the host cut her off after she confirmed she was white. The outcome of that complaint is still pending. Minister Burch also came under attack after defending the cost of the Berkeley school project. At a Press conference, he claimed that the final cost of the building would be $121.7 million – just $23 million over the original estimate. But Shadow Minister Patricia Gordon-Pamplin then accused Col. Burch of trying to mislead the country. She pointed out that Government figures released by Finance Minister Eugene Cox in 2000 put the total cost of the project at $71.2 million – and that the final cost of the school would be more than $50 million over budget. "How gullible does Sen. Burch believe the people of Bermuda to be when he attempts to mislead them with a statement that the project is only $23 million over budget?" she asked.
• The Royal Gazette group reported that Opposition Health spokeswoman Louise Jackson defended the rights of seniors by exposing supposed neglect at a Government nursing home. Mrs. Jackson revealed to the Mid-Ocean News that seniors were living in sub-standard conditions at the Pembroke Nursing Home while disgruntled and non-accountable staff failed to provide adequate care.
• The Royal Gazette group reported that architect Ian Gordon questioned a Government proposal to place prefabricated homes at Morgan's Point, adding that a requirement for an environmental impact study to be carried out before any development got under way appeared to have been waived. And he said contaminants already recorded at the location could be spread through water run-off from the temporary homes.
• The Royal Gazette group reported that The Bank of Bermuda's plans to build a new head office on the site of the former Trimingham's store were thrown into further controversy when the Mid-Ocean News revealed that Government – which has the final say on whether the plan can go ahead – was looking at buying up the bank's former properties if the project gets Planning approval. The bank was also condemned for "consigning Bermuda's history to the trash can" after it removed a series of parish crests that had been decorating the facade of its current head office for more than 30 years. The Bermuda Historical Society accused the bank and its parent company, HSBC, of trying to re-write history.
• The Royal Gazette group reported that Health Minister Patrice Minors hit the headlines after she lashed at out the Salvation Army. The charity cried foul – and called for more funding – after Government confirmed it was spending nearly $1.5 million refurbishing the Premier's official residence, Clifton. When the organization said the money could have been spent on a new homeless shelter – something which has been continually promised by Government in recent years but always shelved at the last minute – Mrs. Minors said she was "fed up" with the charity's request for more cash.
• The Royal Gazette group reported that the construction industry had its own concerns after the West End Development Corporation failed to secure a deal with cement giant Cemex to take over the Bermuda Cement Company.
• National Dance Foundation of Bermuda (NDFB) amalgamated with the Bermuda Ballet Association (BBA).
• December 7. The Royal Gazette group. From Ord Road to Court Street and from Royal Naval Field, Somerset to North Shore Road, Crawl, drug pushers are now an ever-present of Bermudian life. Whole neighbourhoods have ceded control or live in an uneasy truce, trying to keep their children out of the pusher's clutches. And the tentacles keep spreading, blighting the island's recreational spaces. Daylight drug dealing has been seen in Shelly Bay field car park while addicts have been spotted desperately hunting for a drugs drop off in secluded Devonshire Bay. Where are the Police, comes the constant cry?
  Well, eight years ago the Police took on the drug dealers head on when Commissioner Colin Coxall unleashed Operation Cleansweep. The strategy, months in the planning, was to round up the street level dealers and then work upwards to the big men. But then the politics came into it. Already the whipping boy of the Progressive Labour Party before he had even set foot on the Island, Mr. Coxall then earned the wrath of the ruling United Bermuda Party when cabinet member John Irving Pearman's name came up during investigations. Despite slashing crime and having the dealers on the run Mr. Coxall was forced out even before completing his three-year tenure. Unpopular among the powerful during his time here Mr. Coxall has since experienced an upsurge in popularity. Two year's after his departure PLP backbencher Derrick Burgess said Mr. Coxall was "the best thing since Jesus" while new anti-drug supremo Wayne Perinchief, ironically forced out of the Police by Mr. Coxall, recently also hailed Cleansweep as much needed. This week Mr. Coxall spoke to The Royal Gazette about his aborted mission, halted just before it got to the rotten heart of the Island's drugs network. He was in no doubt about the importance of that mission. Keen to understand Bermuda's criminal population after being "parachuted in" he set up surveys of Bermuda's criminal population. It showed more than 90 percent of those arrested had a drug dependency. "It was our assessment that drug abuse, drug dependency and drug dealing was high by any standards in Bermuda. I came from 35 years of Policing, 15 as a chief officer and had been head of the drug squad at Scotland Yard. I had dealt with drug dealing in major capital cities." With crime rising at about 20 percent per annum Mr. Coxall, backed by Governor Lord Waddington, saw breaking the back of the drugs problem as vital to cracking crime which was hurting tourism through street muggings and burglaries at guest apartments. Detective Superintendent Paul Hoare was seconded from Scotland Yard, the nerve centre of the British constabulary, to head up a purge on street dealers. Sometimes dismissed as the small fry of the drug world, Mr. Coxall points out that in Bermuda the front line pushers were very rich men by anybody's standards. Intelligence gathered by Police and undercover officers borrowed from the DEA (Drug Enforcement Administration) found that individual drug sites were making $20,000 per day or more than $3 million a year. A half gram or bag of cannabis that would sell for $2.50 in the US was costing ten times that on Bermuda streets. Other drugs yielded similar exorbitant profits. Mr. Coxall said: "Street dealers were making huge amount of money because of the mark up – more than anywhere I know of in the western world. "They were hanging around Ord Road doing what they liked." But not after the Police sprung their trap. The operation saw 30 dealers in court. By making the streets a no-go area for the pushers Police hoped to force the criminals to start dealing from premises which would leave them vulnerable to having the premises confiscated. Next on the hit list were the big men behind the operations. An offshore boat was loaned from the DEA to catch drug drop-offs beyond the reef. But key to the plan was to trace the drugs back to the American sources by analyzing how they had been mixed. By studying the tell-tale chemical breakdowns it would be possible to work out which crime gangs in America were selling to Bermuda. Although he believes there were perhaps six or so major importers he estimates they could have been dealing with just two suppliers in America. Further intelligence gathering in the States, perhaps via moles planted into the drug barons operations, would then reveal the names of the bulk buyers in Bermuda. He was confident the plan would have worked, given the excellent working relationship with the American authorities. "The DEA is about the most effective drug enforcement agency in the world. The head of DEA on the East coast was a colleague of mine in drugs intelligence in Scotland Yard, earlier in our careers." That strategy would have taken perhaps another year, maybe two – time Mr. Coxall was not given. "Cleansweep was a breakthrough. We got convictions in every case – about 30-40 people went to prison. We had broken the back of drugs in Bermuda but when you tackle drugs head on you get collateral damage. The politicians got cross – guys were going to prison. Mothers and lawyers complained." Then the Pearman affair ratcheted up the pressure on the Commissioner, eventually forcing Mr. Coxall's resignation. No action was taken against Mr. Pearman through lack of evidence. Now the dealers are back out in the open and Bermuda's drug problem seems worse than ever. It is not likely to change under the present approach argued Mr. Coxall. "In my view sitting back as chief of police hoping you occasionally get a major discovery is not an effective way to deal with drugs in Bermuda. Most effective is to break the supply chain and work up it. If you stop street dealing the whole thing gets totally destabilized. Crime dropped considerably after Cleansweep. As a result of the operation crime went down 40 percent by the time I left. I didn't do it by myself." Although frustrated by the failure to get political backing, Mr. Coxall – a high-flyer before his doomed Bermuda adventure – has hardly had problems finding work since returning to the UK. Now employed as a strategic security advisor to Capita Symonds you get the feeling that Bermuda needed him more than he needed Bermuda. And while he has not kept abreast of the latest developments here, he has not been forgotten. "The citizens of Bermuda still write to us. It is sad reading the Christmas cards from people. One lady said things are now in a terrible state, crime has gone crazy and it is not safe to walk the streets. It is sad for Lord Waddington and other people who put a lot of resources trying to reverse the problem. But ultimately the Bermuda public are the losers. "They are hit by the process, it's sad it wasn't followed through."
  

• December 15. Describing it as one of their most productive annual meetings, Government and hotel owners met at the Fairmont Southampton Hotel yesterday. The meetings are an opportunity for both sides to discuss strategies to improve tourism arrival figures and hotel occupancy, key issues facing the Island's hoteliers and the importance of partnership and co-operation between Government and hoteliers. President of the Bermuda Hotel Association, Mike Winfield, said there was an agreed determination to focus on action, solutions and the future, as opposed to dwelling in the past.. "Having attended probably as many of these meetings as anyone in Bermuda, I think it is fair to say that this is one of, if not the most productive meetings I have attended. We have resolved a number of points for mutual consideration and these will be addressed over the coming weeks with a view to coming back together in the near future and agreeing definitive results-oriented action points." Mr. Winfield said another difference this year was the reduced number of people from both sides who attended. He said hotel owners has spent considerable time preparing presentations for Government's consideration and hoteliers were delighted to hear both the Minister of Tourism and the Premier talk about the need for a tourism team. Hoteliers entered the meeting with what is a commonly understood as less than healthy perspective of the hotel industry to date but with a very clear belief that the health of the industry can be restored. Premier Alex Scott told delegates that while there is no magic answer to how Bermuda can remain competitive in a fiercely competitive market, he was grateful that both groups were committed to combining their time, energy and resources to revitalizing the Bermuda tourism product. It was important for hotels to try and attract young Bermudians into the industry. A financial update and report on the hotel industry as one of the country's largest employers was given by the president-elect of the BHA and general manager of Elbow Beach Hotel. The presentation pointed out clearly what the challenges are facing hotels in the current economic environment in Bermuda. Discussions also focused on the issues of the high costs of airfares to Bermuda, enhancing the destination experience for visitors, the branding of Bermuda's image, revitalizing the entertainment offered to visitors and mixed-use development of hotel properties. Tourism Minister Ewart Brown told the meeting of several positive initiatives already being worked on by his Ministry that he believed would improve the Bermuda tourism product. He said he was looking forward to working with the hoteliers to achieve a resolution of outstanding issues including changes to the Hotel Concessions Act which will be debated in the House of Assembly tomorrow. At the close of the meeting, the delegates resolved to meet early in the new year to report on a number of resolutions that had been put forward. The Premier underscored the need for a collective team approach regarding tourism.

• December 16.  Bermuda Police Service is headed by George Jackson. He became Police Commissioner when Jonathan Smith stepped down. His 2005/2006 salary is $137,000. He is Bermudian, born in St. Vincent. He joined the service in 1975. Roseanda Young is the new Deputy Commissioner.
• The Royal Gazette group reported one of the biggest political rows of 2005 when Government backbencher Renée Webb sought to introduce legislation protecting gays from discrimination. The former Minister planned to force MPs to vote on the issue after tabling an additional amendment to a bill on the Human Rights Act brought by Community Affairs Minister Dale Butler. But MPs dodged the issue after Mr. Butler's original bill was dropped from the House of Assembly's order paper at the last minute.