Bermudians will adjust to economic hardship

But close U.S.-Bermuda relations are in the long-term economic interests of both countries, say Premier Ewart Brown and U.S. Consul General Gregory Slayton.

Bermudians will adjust to any hardships felt by rising food and fuel prices, Premier Ewart Brown said this week.

Dr. Brown's comment came in response to a question about how the warm relations between Bermuda and the U.S. benefit ordinary islanders.

He said that people have weathered economic downturns in the past, and that help from government was just a couple months away.

"Economic hardship is not new," he said.

"Most people have lived through downturns in the economy. Bermudians will adjust."

As an example of how the government plans to help working Bermudians, Dr. Brown pointed to the assistance that single mothers will receive in the coming months through government-subsidized daycare.

"Our government is taking steps, especially with the free daycare programme we are going to roll out this year. A mother who has one child saves $7,200 a year in [expenses]. That's a significant saving. And if you have two children, it's [more than] $14,000," he said.

"It's going to make a major difference when people see that they don't have to spend as much on certain things they're used to spending their money on," the Premier added.

Dr. Brown's comments were part of an interview alongside U.S. Consul General Gregory Slayton on U.S.-Bermuda relations.

Both the Premier and the Mr. Slayton took questions from the Bermuda Sun and The Royal Gazette at Camden House on Monday, in an interview that was filmed by a CITV cameraman and will air on the government's TV station.

It touched upon everything from the Premier's recent meetings with the U.S. senators in Washington, D.C. and how fuel prices will affect tourism, to which of the U.S. presidential candidates would be better for Bermuda.

Asked who would make a better U.S. president - Senator John McCain or Senator Barack Obama - in terms of Bermuda-U.S. relations, Dr. Brown said, "The choice of the American people," and then chuckled slightly.

Sen. Obama has said as president he would shut down U.S. firms evading taxes by channeling capital to offshore tax havens (of which Bermuda made his list).

In contrast, Sen. McCain has taken a more favourable look at offshore jurisdictions.

When pressed on the distinction between the two candidates, the Premier said: "I'm not sitting on the fence, I'm sitting in Bermuda, looking at the political landscape of the U.S.

"Senator McCain I think knows a little more about Bermuda than does Sen. Obama.

"But all in politics learn more about situations sometimes after they're elected. That is why we get more experienced in this work, we try to leave room for post-election manoeuvring.

"If Senator Obama becomes President Obama, he will gain a heightened appreciation for the role that Bermuda plays in the economy of the U.S," Dr. Brown said.

Jets 'will help economy'

On the private jet pre-clearance deal he and Mr. Slayton had been working on while in D.C. recently, both the Premier and Mr. Slayton said it would lead to a trickle-down effect that would benefit Bermuda's economy.

"It's not just about private jets, it goes further than that," the Premier said. "On the surface it looks like something for the rich and famous, but it will stimulate the economy for the people of Bermuda.

"It's going to open up the possibility of a 30-to-35 per cent increase in flights coming to Bermuda."

On this point Mr. Slayton said: "It is going to increase air travel by 20-to-25 per cent at a minimum.

"That means more work for every single taxi driver, every single restaurant owner, every single hotelier.

He continued: "[Private jet travellers] are going to spend significant amounts of money and hopefully it's a boon for everyone involved."

Mr. Slayton also said the flight pre-clearance deal would likely be signed before the end of the summer.

Asked if it was wise for the Bermuda dollar to remain pegged to the relatively weak U.S. dollar, Premier Brown said: "We roll with the punches. We roll with the trends.

"We take steps at home to try to soften the impact, to ameliorate the situation at home.

"This is not the first time that the U.S. economy has taken a downturn. We'll stay with the U.S. dollar in good times and in bad."

Mr. Slayton said this was a smart move, as it encouraged Bermuda's largest pool of tourists - Americans - to continue to visit the island.

Some 85 per cent of all tourists who visit Bermuda are American, Dr. Brown added.

Courtesy of the Bermuda Sun reporter/editor Mark Kennedy