The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Democratic National Alliance’s (DNA) leader has backed calls for the legal profession to “liberalise”, but wants Bahamians to also be placed on “an equal footing” with foreigners.

Branville McCartney told Tribune Business he supported Hope Strachan, minister of financial services, in her call for attorneys to end a perceived ‘closed shop’ as this had prevented his own law firm from expanding its international business.

Yet he argued that such liberalisation must occur via ‘a two-way street’ where Bahamians were placed on the same competitive platform as foreigners, citing relaxation of this nation’s exchange control laws as the best way to achieve this.

“I have no difficulty with that. As a matter of fact, I would welcome that,” Mr McCartney said of Mrs Strachan’s call for legal liberalisation.

“If we are to compete on the international stage, if we are to be a jurisdiction that invites international business, that will have to be necessary. From a business point of view, I would welcome that.”

Mrs Strachan’s call came at last week’s Bahamas Institute of Financial Services (BIFS) conference, when she revealed that the perceived ‘legal closed shop’ was resulting in significant financial services business being directed away from this nation.

But, while backing the Minister’s sentiments, Mr McCartney argued that the Bahamas should not stop at just the legal profession. He added that liberalisation ought to provide equal opportunities for Bahamians.

“I think it doesn’t only apply to lawyers; it applies to opening up other things to ensure Bahamians are on an equal footing with foreigners,” the DNA leader said, “such as relaxing exchange control laws so Bahamians can access funding and capital internationally, not just locally.”

Mr McCartney called for wide-ranging liberalisation policies that would enable Bahamians to “participate in the economy and finance internationally around the world.

“We’ve pushed from day one to relax these exchange control laws,” he added. “I saw a little hotel that was for sale a few years ago. I said that if I wanted to purchase that I would have a little difficulty, because I would not be able to access capital locally.

“But if exchange control laws are relaxed, I would have been able to access capital internationally and purchase that hotel. It’s a disadvantage to Bahamians.”

Mr McCartney’s point is that exchange controls deny Bahamians access to the cheaper capital that is available to foreign investors on the international markets, thus placing the latter at a considerable advantage when it comes to financing the acquisition of resorts and other major assets in this nation.

While successive administrations have made noises about the ‘gradual’ liberalisation of exchange controls when the economic environment is right, few actual moves towards this goal have been made.

Returning to the legal theme, Mr McCartney said: “Hope Strachan has a point there, I don’t disagree with her, but I also think it ought to apply to Bahamians as well.

“The Government needs to look at relaxing laws that restrict Bahamians, and business persons and investors, so that they can access that internationally and be able to take advantage of finances and capital in other jurisdictions.”

The DNA leader implied, though, that Mrs Strachan’s comments about a legal ‘closed shop’ in the Bahamas were not entirely correct.

He confirmed that as managing partner at his own law firm, Halsbury Chambers, he had been able to bring in specialist, experienced foreign attorneys to handle specific cases when the necessary expertise was not available in the Bahamas.

While in agreement with Bahamas Bar Association president, Elsworth Johnson, on that point, Mr McCartney and he certainly differ on whether to allow foreign law firms and specialist overseas attorneys to practice in this nation.

The DNA leader revealed to Tribune Business that he had wanted to hire specialist foreign attorneys so Halsbury Chambers could “expand into certain areas”, but had been prevented from doing so.

“I had tried to hire foreign counsel and specialists in my firm to attract more international business,” Mr McCartney told Tribune Business.

“I tried that many years ago and was not successful. It could have opened up many avenues internationally, as we didn’t have the expertise or local experience in those areas.

“If we want to move to a first world country, build industries and the economy, these are the things we have to strategically look at. It benefits the country as a whole.”

Mrs Strachan last week said she and the financial services industry had received direct international feedback that the inability of foreign law firms and specialist attorneys to practice in this nation was costing it significant financial services business.

Calling for the Bahamian legal profession to “liberalise”, Mrs Strachan said: “The Bahamas is notoriously recognised for its closed shop policy towards foreign lawyers and certain other industry professionals.

“On a recent industry-related trip, it was communicated that this continues to be an impediment as to why more business is not being referred to the Bahamas, despite our advanced legislation, our location and proximity to the US, our language, political stability, our cadre of well-educated and experienced professionals, and our reputation as a well-regulated and respected international financial centre.

“This was a common unsolicited theme from many of our friends and industry partners. The question is what should be done about it? Are we prepared to recognise the problem and do something to fix it?”

Mr Johnson, in his capacity as Bar president, hit back by saying: ““Nothing could be further from the truth.”

He told Tribune Business he would be seeking a meeting with Mrs Strachan, suggesting that the Minister was recycling an old argument.

Mr Johnson said the Bahamas would have to “disabuse the notion” of a legal ‘closed shop’ that now might be held in international business circles.