Premier meets powerful US congressman - again

Premier Ewart Brown held an informal meeting with one of the most influential politicians in America discussing issues critical to Bermuda.

At the annual dinner of the Alfalfa Club in Washington DC, Dr. Brown found himself sitting next to New York Congressman Charles Rangel, the chairman of the powerful Ways and Means Committee. Dr. Brown and Finance Minister Paula Cox met with Mr. Rangel last year during a visit to DC.

The congressional body is responsible for the US government's revenue-raising and tax legislation and exists within the US House of Representatives.

Last weekend marked the organisation's 95th anniversary dinner which was also attended by US president George W. Bush and other influential American decision-makers, with each delivering speeches to a room of 600 attendees.

Dr. Brown said: "Quality face time with influential people like Chairman Rangel is so valuable when it comes to protecting the interests of Bermuda.

"It's my job to make sure people in Washington understand the relationship between our two countries as mutually beneficial – Americans need a reliably strong and stable reinsurance industry like the one centred in Bermuda, and we need legislation from Congress that allows our reinsurance industry to remain robust."

He added: "I think that kind of environment provides the perfect setting to talk with legislative decision makers about the interests of Bermuda.

"I think the Chairman and I covered more ground at the Alfalfa dinner than at any other time that we've met."

Dr. Brown and Deputy Premier Paula Cox, in her role as Minister of Finance, communicate regularly with members of the Ways and Means Committee in an effort to protect Bermuda's position in the international business marketplace.

In the past, some American politicians have talked about closing the so called tax loophole which currently allows the many American companies based in places like Bermuda to escape paying millions of dollars in US federal taxes.

And some have mentioned Bermuda by name in addition to the Island's sister territory, the Cayman Islands.

However, US Consulate General Gregory Slayton this week moved to alleviate such fears and told The Royal Gazette: "We've worked very hard in the two-and-a-half years that I've been here to establish a bipartisan partnership in Washington DC.

"The Premier has done a fine job, the Deputy Premier has some good strong contacts here as well and obviously, we've worked hard on both sides of the aisle.

"You'll notice that during the process of the Presidential campaign, which has been going on for a few months now, there has been zero Bermuda bashing – that's not a coincidence. American political leaders, not all of them but many of them, now understand the importance of Bermuda and the importance of the Bermuda-American partnership.

"And I think that's a key difference from a year ago – and hopefully that's going to expand our partnership – the strong partnership between the US and Bermuda."

However, there still remains a risk that any politician in any House of Congress could introduce a bill designed to close the loophole, darkening Bermuda's bright future as an offshore domicile.

According to Mr. Slayton, there's always the possibility, emphasising: "There's always risk and there's always people saying, 'this is unfair, blah blah blah, tax evasion' – look, those people have every right.

"And there are some bills in the US Senate moving forward but again, I think there is a much greater level of understanding now in both the US Senate and the House on both sides of the aisle, in the importance of Bermuda to the United States and the United States to Bermuda."

Courtesy of Royal Gazette reporter Tari Trott