Offshore Financial Sector Is Hot Topic At Conference

The United Kingdom government has no agenda to force the offshore financial sectors in its Overseas Territories out of business, according to a top level official from the Foreign and Commonwealth Office (FCO). Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs Baroness Scotland, made the comments as she addressed the opening Monday April 3rd, at the "Overseas Territories: Into The New Millennium" Conference, Wilton Park. The BVI was represented by Minister for Communications and Works Hon. J. Alvin Christopher, Deputy Governor Elton Georges and Opposition Member of Parliament Hon. Ronnie Skelton. Businessman Douglas Wheatley represented the private sector.

The conference, which looked at the future of the partnership between Britain and the Overseas Territories, comes one year after the publication of the White Paper by the FCO. "Since coming into power, this government has redefined its relationship with her Overseas Territories and I am proud of the approach we are taking," she stated. Baroness Scotland said Britain, in its relationship with the OT's, is tackling the future head on, by recognizing that the future of the islands lies in the hands of those who live there. She said they are forging towards a partnership in which each side accepts its rights and responsibilities and works towards the success of the whole.

She suggested four ways they can make this partnership a success. "Firstly, we need to take a look at the world around us and realize that we live in a world of interdependency. To prosper, all of us need to work with the partners and friends we have...We and the Overseas Territories cannot ignore the world." The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs said secondly, we need to welcome the contribution that our joint history can make to our partnership for the future. "Thirdly, we need to develop an appropriate approach for each bilateral relationship within the overall UK-Overseas Territories relationship (and) fourthly, to make the relationship between the UK and its Overseas Territories succeed, both sides need to face honestly the issues we need to deal with," she declared. The UK official stressed the principles that Britain believes should be the foundation of the partnership - self determination; responsibilities on both partners; the exercise of democratic practices in the territories to allow the people of the territories the greatest degree of control over their own lives; and continuance of British help to those OT's that need it. In the area of human rights, Baroness Scotland said since the White Paper was launched, there has been one notable advance in this area - the decision by the Parliament of Bermuda to abolish the death penalty and judicial corporal punishment.

"We would like to encourage a wider human rights debate in the territories," she stated. Referring to financial relations, she noted that some of the Overseas Territories have made a great success of developing offshore financial industries. She said they believe that the benefits from having a financial sector carry the responsibility and obligation to ensure that the sector is properly regulated, adhering to all international standards of regulation and best practice.

One signal of a change in the relationship between the governments is clear in this sector. Over the past year, the UK government and the governments of the five Caribbean OT's and Bermuda have together set up and jointly funded a major consultancy study to review the existing state of financial regulation and organization in the territories.