February 24, 2023

Yes. Thank you, Mr. Speaker.
My question to the Premier and Minister of
Finance is whether he can provide any kind of update
on debt collection. At one point there was an agency, and I am just curious whether anything is in place
now.


Bermuda House of Assembly The Speaker: Premier.

Hon. E. David Burt: Mr. Speaker, I would certainly
refer the Honourable Member to the Budget Stat ement of which we will be debating later today, which
speaks quite plainly and clearly to the Government’s
stance on matters related to debt enforcement. And
as I had noted in the answer which I gave previously,
a total of $32,754,340 has been referred by the Go vernment to the Debt Enforcement Unit of the Attorney
General’s Chambers.

Premier.
Hon. E. David Burt: Mr. Speaker, I will happily refer
the Honourable Member to the Standing Order which
states that if there is a follow -up answer that is asking
for specific information that was not part of the question, the Honourable Member should place that question in writing. And we will certainly try to get the i nformation for him.

Yes. But the Standing Orders refer to
that. The Standing Order says that if it is not par t of
the original context of the question, it means I wouldn’t have brought the information with me because it
wasn’t in the gist of the original question. I don’t have
it with me. But it is not saying that it is not available.
He just said he does not hav e it with him because it
was not part of the construct of the original question. Okay?

[Inaudible interjection]

And then the Standing Order also goes
on to say that if you would like to get that information you can give a formal question for another sitting when the information can be provided.

Hon. N. H. Cole Simons: Okay. Well, [the Honour able Premier] has made a commitment that he will get
the information. So, Mr. Speaker, I ask the Premier to
do a similar commitment and let the Parliament know
how much Oarr Inc was paid for their services.

Yes. I am not sure if he actually made
that commitment the second time around. He directed
you to the Standing Orders, which directed you to be
able to do a substantive question if you wa nted the
answer.
Now let me clarify that because I did not hear,
unless I missed it, whether [the Honourable Premier]
made that commitment. So if he did not, these Stan ding Orders suggest that a substantial question be put
for a later date.
Did I miss an ything? Or did you make a commitment?

Hon. E. David Burt: I will just help the Honourable
Member and refer him to Standing Order 17(9)(a) . . .

Member, Member, Member, Member! I
would not use that terminology in that the position that
the Premier took is within the guidelines of the Stand-ing Orders. Providing he is within the guidelines of the
Standing Orders, he has the right to exercise that.
364 24 February 2023 Official Hansard Report

Bermuda House of Assembly And the Standing Orders make it clear that
any information that has already been released in the
public domain, the person who is seeking the answer
can be directed to the public domain.

The Clerk: May I ask which Standing Order —

Point of order.

POINT OF ORDER
Hon. E. David Burt: Mr. Speaker, I ask that the Ho nourable Member be asked to withdraw his statement
where he said that I refused to answer questions. I
have provided answers to all six questions that have been asked by the Opposition in accordance with the
Standing Orders. And I ask that he be asked to wit hdraw that statement.

Does the Premier believe that
the sharing of information with the Opposition helps us
to find solutions for the problems of Bermuda?
Hon. E. David Burt: Mr. Speaker, I sat in Opposition
longer than the Honourable Member. And so I certai nly understand. And one of the things I can say, when we were in Opposition we made sure that our questions were submitted in accordance with Standing O rders. The answers of which I gave and provided t oday, where there were [questions] that were written
that I could provide the answers to, I did. I provided
the answers that were able to be provided. There
were a number of questions that were answered very
specifically.
They a re asking me to engage in conjecture
and other types of matters which I cannot do. But I will
firmly agree that the sharing of information is vital, and
if the Opposition tables questions in accordance with
Standing Orders, the Government will follow the dire ctions of the Standing Orders and ensure that the i nformation is provided.

Thank you.
I am wondering whether the Premier and Mi nister of Finance might be able to give any indication of
whether any data are being analysed or collected
around the reasons for the high level of taxes or a ccounts receivables that has not been collected? If
people are in hardship or there are other reasons why
the money has not been collected, if there is any kind
of database or data that are being collected so that the Government can understand why there is so much
money that is outstanding?

Premier.
Hon. E. David Burt: Mr. Speaker, I am not entirely
certain what I am trying to answer, but I will refer the
Honourable Member again to the Budget Statement
which was given in this House last week, which I am
sure we will be debating this week. And one key point
that I would like to read into the public record again for
the edification of Members, because I even noted that the Opposition Leader put out a statement last eve ning quoting the number in the public domain of a
ques tion of which he asked about the amount in excess of $300 million . . . $300 million about accounts
receivable. And I just want to make sure to share for the Honourable Member [and] to repeat again, with your permission, Mr. S peaker.


Bermuda House of Assembly It said, “Mr. Speaker, it should be noted, ho wever, that while the outstanding balance recorded at
the end of the fiscal year is high, it includes the taxes
to be paid at the beginning of the next quarter, which
represent approximately [ 35%] of the annual payroll
tax revenue. Therefore, the $314 million OTC [Office
of Tax Commissioner] receivable balance recorded in
the 2021/22 [financial] statements includes payroll
taxes of more than $130 million, which were paid on time a month later. This is required by accounting
standards, but it overstates the amount that is subject to active debt collection efforts. ”
I will also refer the Honourable Member to the
fact that the Statements that were given previously in this House and also the Budget Statement would
speak to the work that is happening at the Office of
the Tax Commissioner with the new IT system with a
data warehouse that will be able to increase enforc ement efforts of which we have already seen bearing
fruits.

Thank you.
I believ e that brings us to a close.
Ms. Jackson, you have had your two suppl ementaries.
Unless someone else had a supplementary?
There are none.
Thank you, Members.
We will now move on to questions on the
Statements that were given this morning.
The first S tatement, which was delivered by
the Minister of Home Affairs. Deputy Premier, you
have a question that will be put to you from MP Jac kson.
MP Jackson, would you like to put your question?

QUESTION 1: LED STIMULUS PACKAGE

Thank you, Mr. Speaker. It is
just a quick question.
But I am just wondering whether the Gover nment will provide any information on the best way to
install the LED lights so that they’re getting the max imum effect.
And just to give an example, maybe just gi ving tips on putting the LED on an external fixture,
which might be a light that is on all night versus a light
in a hallway that maybe is only used for a couple of
minutes a day. Now, people may be undermining that,
but there are a number of people out there t hat may
not consider it. And just as a public service a nnouncement so that, when [the bulbs] go out, a message like that could be included so that people just maximise the efficiency of those bulbs. Thank you.

Fine. Okay. Thank you.
Minister, that is the only Member who indicated that they had questions for you.
We will now move on to the next Statement.
The next Statement is in the name of Minister of
Transport. MP Jackson would also like to put a question to you in that regard as w ell, Minister Furbert.
MP Jackson, put your question.

QUESTION 1: AIR SERVICE DEVELOPMENT
UPDATE

So thank you.
The question that I have for the Minister of
Transport is I am just wondering whether the BTA
[Bermuda Tourism Authority], the hotels and other
stakeholders will now work to make sure that there is
a collaborative effort so that everyone is working in
unison as far as maintaining a clear message and a
solid product proposition to maintain the demand for
and the frequency of air travellers who want to come
to Bermuda.
So I am just curious whether the BTA, the
hoteliers and other stakeholders will now work toget her so that we can sustain this direct flight between
Boston and Bermuda?

Mr. Speaker, I would just like
to ask the Minister whether there will be any sort of
regular and ongoing con versations, especially with the
delicate Boston– Bermuda flight in mind, but whether
there will be regular and ongoing meetings for feedback from JetBlue to make sure that we are able to
mitigate any surprises that may come up in the future,
and we are gett ing any feedback around any concerns
that JetBlue may have so that we maintain a relationship and can respond quickly so that we do not find
ourselves in the situation where the direct flight is cancelled or postponed again?

Okay.
Supp? Second supp?
Hon. Michael H. Dunkley: I am trying to get a little bit
more of a yes so I can ask another question.
[Laughter]

Hon. Michael H. Dunkley: To the Honourable Mini ster: Ca n the Honourable Minister provide more detail if
the talks so far have been successful and if we will
see, certainly for the high season, a return of the daily service from Atlanta and New York? And if the answer
is yes, when will that be?

Hon. Wayne L. F urbert: Mr. Speaker, discussions
continue on.

Okay. All right.
Any further questions to the Minister of
Transport?
None?
Minister, this brings to a conclusion questions
for you this morning.
We now move on to the next Statement,
which is in the name of the Minister of National Sec urity. And, Minister, you have two Members who have
indicated they have questions for you this morning.
MP Jackson, would you like to put your questions?

QUESTION 1: CCTV UPDATE

You have questions. I forgot that. Y ou
have indicated you had a question. Would you like to
put your first question?

QUESTION 1: CCTV UPDATE

Hon. Michael H. Dunkley: Yes. I am trying to change
the line and length. But, Mr. Speaker, it is good to see
that speed cameras will be included.
Mr. Speaker, on the second page of the Mini ster’s Statement, the Minister said there are currently
150 CCTV cameras across the Island, of which 75 are
inoperable. Mr. Speaker, will that current system be
used if possible or be completely replaced?

Members, the Order of the Day is the
business why I think we have all gathered here this
morning, and the country is listening in. Last week we
had the presentation of the Budget for this coming
year. And today it is the Opposition’s Reply to the
Budget Statement. And I am talking a few minutes just
to [allow] those who have got to get their cameras
sorted out and ready in place. And I believe, Mr. Opposition Leader, before
you start, the Premier will move us int o that position.
The Premier will make his comments. And then the cameras will start rolling to record the presentation
presented by the Opposition Leader.
Mr. Premier, would you like to open us for this
session?

MOTION

APPROVAL OF THE ESTIMATES OF REVENUE
AND EXPENDITURE FOR THE YEAR 2023/24

Hon. E. David Burt: Thank you very much, Mr.
Speaker.
Mr. Speaker, I move that the Estimates of
Revenue and Expenditure for the year 2023/24 be
approved.

Are there any objections to that?
None.

Hon. E. David Burt: Thank you very much, Mr.
Speaker.
Mr. Speaker, in the kicking off of today’s general economic debate, which is an annual tradition in
this House, I sincerely hope that the conversations will
be measured and productive. There are serious c hallenges that this country has faced. The Government
has laid out a budget for growth. We look forward to
engaging in a constructive debate today with the
Members of the Opposition as we all look to make sure that we have constructive solutions on a way forward for this country as we continue to deliver ec onomic growth of which we have witnessed and seen, and make sure to set a path for future economic
growth and development despite the challenges that
this country has gone through with a once- in-acentury pandemic and 40- year-high global inflation.
We have acted, and I hope that there are
constructive recommendations that will come out of
this so that the Government can continue to progress
in matters related to the economy of this country. So I
look forw ard to this debate today, Mr. Speaker. It will
be a long one, but I look forward to responding at the end.
Thank you, Mr. Speaker.

While you are making that brief intr oduction, I will remind the Sergeant -at-Arms to distri bute all of the [Reply] booklets for Members.

Hon. N. H. Cole Simons: And, Mr. Speak er, we have
also given electronic copies for the public to follow on
this parliamentary website, thanks to our technicians.
And they can also read it in the Royal Gazette as they
go along.

[Laughter]

Hon. N. H. Cole Simons: Mr. Speaker, I am saying
this because I hope that the Government will next
year present electronic copies for the people of this
country.
Thank you.

[Inaudible interjections]

THE OPPOSITION’S REPLY TO THE
BUDGET STATEMENT 2023/24
Hon. N. H. Cole Simons: Mr. Speaker, I will start my
response to the Progressive Labour Party [Gover nment’s] 2023/24 Budget by summarising some of the
comments from the 2013 SAGE Report, which are as relevant today as they were 10 years ago: Throughout
its more than 400 years of settlement, Bermuda has
braved the winds of adversity, causing us to punch
above our weight and testing our mettle at every pass.
Through it all, Bermudians proved to be resilient and
innovative by responding to adversity with confidence and vigour.
Mr. Speaker, as a people we de veloped a
pragmatic ingenuity, which ensured that the Island
continued to develop from strength to strength. We learned to capitalise on a service- based economy,
leveraging our stunning natural beauty and gift of hospitality, to create a buffer of affluenc e and a level
of comfort for its residents that few other countries
could offer.
Sadly, for the first time in Bermuda’s history,
this buffer is gone! Bermuda is labouring beneath un-precedented costs which continue to rise. The cou ntry’s substantial debt i s seemingly unabated and
threatens to destabilise our fragile financial found ation. Our population continues to decline.
Bermuda’s two principal industries, tourism
and international business, are facing increased and aggressive competition. Bermudians wh o were once
the rival of our neighbours to the south, boasting of
having more than one job by choice, are today faced


Bermuda House of Assembly with rampant unemployment that hovers over the I sland like a dark cloud that is determined to remain in
place. The scenario is unfamiliar to us, and like a
rough tag on the back of a shirt, it is an uncomfortable
label to bear, especially for a proud country whose
reputation was synonymous with adjectives like premier and blue chip destination.
Mr. Speaker, unfortunately the winds of
change that were with us in 2013 are with us again in
2022 and 2023, and there is no end in sight. The One
Bermuda Alliance believes that these challenging winds are not due to climate change or pending hurr icanes; they are due to the Government’s mismanagement of the public purse. How can the country
raise $50 million to close a current account deficit, as
suggested by Bermuda’s Fiscal Responsibility Panel’s
Annual Assessment, when it cannot effectively manage and recover the $300 million due to it in accounts
receivables? Why penalise our people and corporate
citizens with increased taxes when the Government
has totally mismanaged the recovery of the hundreds of millions of dollars due to it in taxes and fees?
Clearly, the Progressive Labour Party Go vernment c annot get its house in order despite the offers of assistance by members of our international
business community. It is a clear sign that the Burt
Government has had an epic failure and they cannot continue to beat their chests and proclaim victory in
the evidence of these failures, especially at the expense of Bermudians.
Mr. Speaker, for years the One Bermuda All iance has been sounding the alarm for the need to
attract new businesses and people to the Island. Those cries have fallen on deaf ears. This Go vernment has known for quite some time that the size and
composition of our population can only be addressed
by increasing immigration and strengthening and expanding Bermuda’s workforce.
This should have been one of their top prior ities, as our workforce challenge is likely the biggest
challenge facing Bermuda and her people today. If we
are to enjoy an economic recovery, Bermuda needs to
expand its current workforce. There is absolutely no doubt about it. The Progressive Labour Party [Go vernment] must develop a bold prospectus that will be attractive to potential investors and attract human cap-ital that will bring jobs to Bermuda and create jobs in
Bermuda.
This prospectus must help us to build trust
and a real bond within our business community
through a sensible plan to deploy taxes and provide
the much- needed business support, through the prior itisation and delivery of green investments, through
strategic investments in tourism and hospitality,
through supporting the arts and creative sectors, to
provi de effective seniors’ care programmes, to support the philanthropic sector, and absolutely to focus
on the critical need to support our students. Mr. Speaker, other than the management of
the pandemic, the Burt Administration has exerted
little to no lea dership since getting re- elected. Go vernment members repeat what they hear people say
on the street, and then say they are listening to the
people —which is not bad, but it is not enough. What
people are looking for and need is true leadership. We need peop le who see the problems, analyse them,
come up with workable solutions and then execute
them. All too often, the PLP Government’s solutions
are unpopular, which is why nothing gets done.
After months —no, years —of calling for imm igration reform, in Februar y 2023 there has still been
no significant movement from the Government. Mr.
Speaker, we need a leader who will eliminate waste in
government. We know that it is easy to hand out giv eaways and throw away money, but it is more difficult
to eliminate waste, and this does not mean—it does
not mean—the automatic reduction of heads. Mr.
Speaker, as most of us know, there are thousands of
Bermudians living in the United Kingdom. Many of
them are young people whom we desperately need to support healthcare and government financial initi atives. The One Bermuda Alliance has been sounding
the alarm on the issue for years, yet there is no clear
plan to retain or attract people. Our dwindling popul ation is Bermuda’s number -one problem.
Mr. Speaker, while on this topic of people
leaving the Island, we also are witnessing a lack of
confidence in the Government’s leadership. Bus inesses are closing or contracting, and the disturbing
incidents of youth violence occur on an almost regular basis with no end in sight. Again, the Government has
failed the people of Bermuda. They have not provided
the resources or social support to curb our country’s
rise in violence, deaths and other antisocial beha viours.
Mr. Speaker, without debate, per capita, Bermuda is one of the most expensive countries to live in.
And they say, The struggle is real . People are finding
ways and means of existing by emigrating to other
jurisdictions. Nearly 8,000 people have left because
many Bermudians cannot afford to remain in Bermuda
and live with digni ty. The cost of healthcare is one of
the highest in the world, food prices continue to i ncrease almost daily, the cost of bank loans and ener-gy is off the charts and there is the perceived dearth
of opportunities and jobs for our young people. Is it
any wo nder why people are leaving in droves? From a
business perspective, the cost of doing business is also one of the highest in the world. Business owners must face high employment costs, rising energy costs,
healthcare costs, payroll taxes and the exorbitant cost
of housing.
Mr. Speaker, in addition, investor confidence
has been battered by the increasing cost of living, the
unprecedented increase of inflation for the past year and rising interest rate costs which appear to continue
unabated. Then there wer e the discussions about the
370 24 February 2023 Official Hansard Report

Bermuda House of Assembly change in our sovereignty status and the real concerns about Bermuda’s economic and social stability
and certainty. Our economic prospects were dealt a
severe blow, especially in the retail, service, and tourism sectors.
Mr. S peaker, when it comes to international
business, despite a hardening market due to the trai ling impact of Hurricane Ian in 2021, we are contin uously challenged by competitive global insurance and
financial service markets. The same currently applies
to our life insurance and annuity industry which is
gaining great momentum despite the exorbitant cost
of doing business in Bermuda. Mr. Speaker, despite
efforts to mitigate the financial impact, as in other
countries, the impact of the pandemic and the chal-lenges just mentioned have all exposed deficiencies in
Bermuda’s fiscal prudence and management and has also exposed the weakness of Bermuda’s social, ec onomic and political landscape.
Mr. Speaker, candidly speaking, the One
Bermuda Alliance believes that th e PLP Government
has failed the people of Bermuda. They have failed
our corporate citizens in the domestic market, and
after 10 years of Government, collectively we are no
better off. When it comes to the accumulation of
wealth in Bermuda, the Premier’s bullish and sunny
outlook for our economy next year may have been driven by the growth of his personal wealth, but for the
average working- class person and even—

POINT OF ORDER

Hon. Zane J. S. De Silva: Point of order. Point of order, Mr. Speaker: I think the Honourable Member
needs to withdraw that defamatory . . . and it reflects
directly to something that has been circulated on s ocial media. I think it is out of order for this budget.

Hon. N. H. Cole Simons: Mr. Speaker, this is not i ntended to be defam atory in any manner.

Let me address the point of order. Let
me address the point of order.
Normally, we do allow the Budget Statements
to be read without the interruption. And it is not customary that we deal with an interruption during this
time.
I am just going to ask you, Member, to be
mindful of tones and comments that are made.
And, Member, I am still talking so you need to
be in your seat.
And I am going to ask the Member just to address this time . . . address the comments in the ti me
that you do have to speak later in the day. But it has
been customary that we do allow him to have a clean
run on the presentation of the Budget and the Reply to the Budget. Okay?

[Inaudible interjection] The Speaker: I have ruled. I have asked you. Y ou
can hold on to your comment, and you can introduce
your comment and make your comment when you
have the opportunity to speak.

For the average workingclass person and even Members of this Honourable
House, they have not seen or enjoyed the same accumulation of wealth during the past 10 years.
Mr. Speaker, as you know, our small popul ation of under 65,000 people are burdened with a debt of $3.142 billion and an annual interest expense of
$130 million, whi ch are both unsustainable. After 10
years in the seat, the Government has failed the people of Bermuda because of the financial burden. Our
people are no better off in the long term. In the same vein, let us look at the financials.
According to PricewaterhouseCoopers [PwC], Go vernment’s debt, liabilities and guarantees exceed $7
billion. The annual deficit for 2023 is more than $7
million above the original estimate of $77 million. The annual revenue- to-debt ratio lies at approximately
275 per cent, while the performance benchmark is
80 per cent. Considering these statistics, a financial
lines underwriter indicated that if she was underwriting
a company with this type of performance, she would
have rejected the application and recommended that the company be wound up. Mr. Speaker, on the demographic side, our own government statistics r evealed that 10 per cent of Bermuda’s population is
now living below the poverty line.
Mr. Speaker, one wonders what the Progressive Labour Party have been focused on throughout their reign? They should have racked up a string of
successes. Instead, all we see is a trail of debt that
has ballooned since they took over managing the pub-lic purse. Mr. Speaker, how can the Premier paint
such a hopeful picture for the people of B ermuda?
Again, something is wrong with his rose- coloured
glasses. His leadership has failed the people of Bermuda.
Mr. Speaker, one of the Progressive Labour
Party Government’s top priorities should be to ensure
that tools are in place to boost our economic growth, reduce inflation, eliminate national debt and reduce
the $300 million due, [to] the people and Government
of Bermuda. If we seek to restore confidence and personal wealth, the Government must address their own
outstanding accounts receivables. In so doing, Ber-mudians will have more money in their pockets and more government services and programmes will be
made available as our government’s $130.4 million of
annual debt services obligations will be reduced.
Mr. Speaker, last year’s societal dis ruption in
Bermuda was grave, and unfortunately it will continue
in the coming year as we have yet to turn tourism around, which employs 14 per cent of the workforce.
The Government states that inflation is currently


Bermuda House of Assembly 5.6 per cent, the highest it has been i n 40 years. This
figure is highly debatable compared to other jurisdi ctions. Even 5.6 per cent inflation is a silent killer of
hopes and dreams of Bermudians, both young and
old. The skyrocketing inflation has impacted salaries and our real purchasing power.
Mr. Speaker, considering this grim reality, we
must examine new ways to work together towards a common end as we collectively chart our way through
the path of economic recovery and rehabilitation.
Bermuda is small and agile enough to do it.
Mr. Speaker, the Bermuda Economic Recovery Plan needs to be more than aspirational. Just like
running a business, the plan must have measurable
timelines and milestones so that progress can be tracked and, moreover, so that we can define our
roadmap to economic r ecovery. As it currently stands,
the Government’s economic recovery plan has proven to be ineffective in delivering real growth to the economy and a large portion of our economic well -being.
Once again, I restate that the Government cannot
continue to be proud of its failures. It has by no means
executed its economic recovery plan, and hence they
are trying to create and deliver a second and i mproved recovery plan which has yet to see the light of
day. Why not fix the original plan?
Mr. Speaker, it is cri tical that a vibrant econ omy must be rebuilt , an economy where jobs are created with a focus on equity, diversity, fair trade and real
opportunities for Bermudians. We must find investors
to support small businesses and our local economy,
and we all must buy Bermuda. This rebuilding process
should be supported by a realistic blueprint. We can-not continue to listen to the same old dusted- off budget promises year after year, which now reads like an
all-too-familiar, yet boring bedtime story. It is also a
story that no one wants to read or believe. Bermuda
needs a recovery plan that is realistic and workable,
and that addresses Bermuda’s fiscal framework, ever -
growing debt and infrastructure investment strategies. If we used all the resources made available to the
Government by all of Bermuda’s stakeholders, inclu ding talented C -suite executives from international
business, our domestic corporate citizens and other stakeholders, we could well have been on a path to
economic recovery.
But no, the Government and their team has
crafted an aspirational growth plan which has been
ineffective in addressing Bermuda’s economic malaise
and recovery. In fact, the recovery plan has been so
ineffective that the Minister of Economic Development
and his team are now reviewing it and adjusting its efficacy and effectiveness. Mr Speaker, the PLP’s
2023/24 Budget lacks courage. It should support
Bermudians by creating new opportunities in the
trades and by helping people to develop the skills needed to succeed. The Progressive Labour Party
Government should continue to help businesses grow
and innovate by creating incentives to hire workers and providing access to financing to scale- up bus inesses. Government must keep out of the way of businesses and let them do their job, and concurrently
ensure that guardrails are in place to ensure that
Bermuda’s reputation is not compromised. In addition, more support must be provided to
our financial service industries, especially for reinsurance and insurance companies, mutual fund and fund
administration companies and trust companies. Add itional support must also be given to our retailers, res-taurants, healthcare and tourism sectors. The conti nued reduction of payroll taxes is not enough. What our
local businesses need is access to capital , as most of
these businesses have depleted their savings, or their
retained earnings, and are all spent. They also need a
more relaxed and efficient employee recruitment pr ogramme which is supported by workforce develo pment programmes, and more efficient immigration processing policies for our guest workers.
Mr. Speaker, the other item to be highlighted
is the salary increase that will be coming to the 4,362
public service employees —this despite the current
economic challenges. What do we tell people in the
private sector who have not had a salary increase in
the past five to ten years? Are they expecting an i ncrease now that the Government has set the standard? Given the huge deficit, where is the funding coming from for these salary increases? I repeat, where is
the money coming from for these salary increases?
Are these pay raises linked to employee output or eff iciencies, as is the case in the private sector?
Mr. Speaker, let us not forget that Bermuda is
a part of the global community. Its economy a nd success are dramatically influenced by external infl uences. Therefore, Mr. Speaker, it would be remiss of me not to look at overseas jurisdictions, which are
very important to us because they fuel our economy
and because we are dependent upon them.

GLO BAL ECONOMY

Hon. N. H. Cole Simons: Mr. Speaker, according to
the International Monetary Fund, the global economy
will slow down this year before rebounding in 2024.
But a global recession is not in their baseline.
The important factors shaping the outlook are,
on the downside, Russia's war in Ukraine and the
global fight against inflation. On the upside, the re opening of the China economy. Overall, they have a
mild upward revision to their projections. The global
economy has shown much resilience. Labour markets
are tight, household spending and business inves tment remain strong, and European economies prove
to be resilient against the energy crisis.
Consequently, global growth is expected to
slow from 3.4 per cent in 2022 to 2.9 per cent in 2023.
The sl owdown will be more pronounced for advanced
economies. China and India will account for 50 per
cent of global growth. Global headline inflation is ex372 24 February 2023 Official Hansard Report

Bermuda House of Assembly pected to fall from 8.8 per cent in 2022 to 4.3 per cent
in 2024. Core inflation, however, is more persistent
and remains too elevated. To sum up, barring new
shocks, 2023 could be the year of turning points, with
growth bottoming out and inflation decreasing. This information is from Pierre- Olivier Gourinchas, the
IMF’s Chief Economist.
Within that same organisation, Kristalina
Georgieva, the Managing Director of the IMF, said
that 2023 will be tougher than last year as the US, EU
and China see their economies slow. It comes as the war in Ukraine, rising prices, higher interest rates and
the spread of COVID -19 in China weigh on the global
economies. She said that a third of the world economy
will be affected by a recession. [She also said,] even for countries that are not in recession, it would feel like
recession for hundreds of millions of people. She went
on to say that while our baseline avoids global recession over the next year, the odds of one are uncomfortably high. Europe, however, will not escape recession and the US is teetering on the verge of it now.
Mr. Speaker, I now move to the US economy.

THE US ECONOMY

Hon. N. H. Cole Simons: Mr. Speaker, as the United
States is Bermuda’s largest trading partner, it is also important that we speak to the prospects of the US
Economy for 2023. Leading US economists forecast
that the economic weakness will int ensify and spread
more widely throughout the US economy over the
coming months, leading to a recession in early 2023.
This outlook is associated with persistent inflation and the Federal Reserve’s hawkishness. In December
2022, JP Morgan indicated that the US economy will
likely slow further in 2023 and enter a mild recession.
They take the view that the US economy is going to
expand at a muted 0.5 [per cent] to 1.0 per cent pace
in 2023, as measured by real GDP, which incorp orates our prediction for a mild recession beginning in
late 2023.
This would lead to a further deceleration in
growth from 1.5 [per cent] to 2.0 per cent in 2022, to
6.0 per cent in 2023 and long- term average annual
growth rate of 1.8 per cent. Considering the major
components of the Gross Domestic Product (GDP), they expect that real consumer spending will rise approximately 2.0 per cent in 2023, which assumes
wage growth of 4.0 [per cent] to 5.0 per cent, inflation
moderating to 3.0 [per cent] to 4.0 per cent and further
downward of excess accumulated pandemic savings.
Mr. Speaker, with the aforementioned for ecasts from the leaders of the global economy, what
does this mean for Bermuda and for the lives of Bermudians in 2023? It means a challenging economy,
with a flat to a possible 1.5 per cent GDP growth. Mr.
Speaker, inflation and the cost -of-living increases will
thrive and cause havoc on our daily lives and our Bermudian families and our Bermudian lifestyle. This cost-of-living crisis continues to be the biggest and
most challen ging issue facing us. Currently, inflation
and the escalating cost of living in Bermuda is hovering around 3.5 per cent. This rate appears to be unr ealistic and flawed, as the inflation rate of our biggest
trading partner currently lies at 6.4 per cent, which has
been crippling.
Mr. Speaker, when it comes to attracting new
inward investment to this country, the Burt Gover nment has failed the people of this country, and as a consequence our people are no better off. Mr. Speak-er, it is with pride that I sta te that during the five- year
term of the One Bermuda Alliance Government, the
Government was awash with new inward capital. The
One Bermuda Alliance had The Loren Hotel. The One
Bermuda Alliance had the St. Regis Hotel. The One
Bermuda Alliance had the America’s Cup. And we have Aecon’s colossal investment in the development
of our award- winning L. F. Wade International Airport,
which provides a world- class experience—

[Desk thumping]
Hon. N. H. Cole Simons: —to locals, tourists and
others when travelling to or from Bermuda. Where
was the new inward capital for the $500 million airport
planned by one of the former Progressive Labour Party Premiers during a previous PLP Administration? Where was the new inward capital that was required
for the shovels to go in the ground in 2022 for the d evelopment of the Fairmont Southampton, yes, the pink
elephant that sits empty on the hill just off South Shore Road in Southampton?
Mr. Speaker, the glaring lack of new foreign
investment on our economy supports the prem ise that
there will be little growth within our economy for the
foreseeable future. Mr. Speaker, one of our locally
respected economists pointed out that the current lack
of investment showed that entrepreneurs and other drivers of the economy had little f aith in government
policy —with the risk that the economy will remain
stagnant. Mr. Speaker, inward investment spending is crucial. It is an excellent indicator of the likelihood of
Bermuda’s recovery and economic expansion potential. Mr. Speaker, what do t he 2023 global dynamics
and outlook mean for Bermuda? Unlike views from
Premier Burt’s rose- coloured glasses, things will not
be as bullish as he professes. Instead, there will be
the following:
• More job losses for Bermudians, especially in beauty salons, fitness -related facilities and
businesses within the hospitality sectors. A pparel stores will also continue to decline as people are shopping online. It also means a 15 [per cent] to 20 per cent closure of retail
stores in Hamilton in the past two years.
• Closures: Retail businesses will continue to face the added threat of closing because of
their commercial financing, supply chain cha lBermuda House of Assembly lenges and inflationary wholesale prices. They
will likely not be able to pay their overhead
costs, rents and other expenses due to the
dramatic decline in revenues of small bus inesses which play a vital role in Bermuda’s
economic engine.
• There will be an increase in the cost of personal mortgages, which in some banks were
increased four times over a series of months,
and t he added cost of credit card interest.
• It also [affects] the construction industry.
There was an estimated value of construction
projects for the coming year; they will be down
by 30 [per cent] to 35 per cent, as there are
no new major hotels coming online in 2023.
• Low wage earners who clean, prepare, and
serve food within the private and public sectors will continue to be significantly impacted.
They will experience the most job redundancies and will be hit with increasing unemplo yment. For those who hav e been able to retain
their jobs, they likely have not had a wage i ncrease for years or are faced with reduced
working hours.
Mr. Speaker, Bermuda’s debt continues to
rise unabatedly because of the irresponsible spending
and because the Government has had current account deficits in all of the past 10 years.
Mr. Speaker, as I mentioned earlier this year,
Bermuda can expect that our national debt will hover between $3.29 [billion] and $4.0 billion dollars during
the next fiscal year. According to the lates t report from
the Government’s Fiscal Responsibility Panel, its re venue- to-debt remains at 275 per cent, which is signif icantly above the target of 80 per cent, which is best
practice. This ratio has been at this level for a number
of years with no improvement. This should be a matter of grave concern. In addition, let us not forget the PLP
Government’s total liability portfolio. In addition to the
$3.29 billion in national debt, we should acknowledge the unfunded liability in our government pension
plans, our social insurance programmes and the so vereign guarantees, which when combined with our
sovereign debt, the total liability is around $7 billion.
Mr. Speaker, the Fiscal Responsibility Panel
said in their 2020 report, and remains so today, that
“an ad verse, but unfortunately far from inconceivable,
scenario” would see Government debt on an unsustainable trajectory, leading to a credit rating dow ngrade and higher interest rates on new debt, the risk of “large emergency tax increases and spending cuts,”
and the possibility of capital flight and a foreign exchange crisis.
They also indicated that given the fiscal pos ition and the limited progress of the Government acting
on their recommendations, they are concerned that
Bermuda will have little fiscal or macroeconomic pol icy spaces to address any crystallisation of these risks.
Over the long term, their key concern is still domestic, i.e., the Island’s shrinking workforce and ageing population. This challenge will put ever -increasing pressure
on both taxes and spending. The issue is not whether
action is needed, or even what actions are needed,
but when and how.
Mr. Speaker, while on the matter of [our] debt
burden, did you know that the average man, woman
and child living in Bermuda at the end of January
2023, is responsible for [repaying] approximately
$50,251.00, of [Bermuda’s] National Debt of $3.14
billion? I repeat: For every [man], woman and child, they are responsible for $50,251.00.
Did you also know, that for the fiscal year
2022/23, each adult and child residing in Bermuda, was responsible for paying $2,241.69 in interest, of
the total interest expense of $138.290 million for this
current fiscal year? Mr. Speaker, did you also know that each man, woman and child currently living in
Bermuda is res ponsible for $52,492.69 for debt r epayment on this year’s loan interest expense, and more than 90 per cent of the [annual] interest payment
of $138.290 million does not stay in Bermuda? It is
paid overseas to the noteholders.
Debt Service: Bermuda’s annua l debt service
is completely out of control. This money is paid to our local and international bondholders. For the year en ding March 31, 2024, this annual expense will total approximately $130 million, or approximately 11.78 per
cent of the estimated total of government expenditures. This is the fourth- largest government expense
after the Ministry of Education, the Ministry of Health
and the Ministry of National Security. It is almost [larger ] than the ministries of Youth, [Culture] and
Sport; Community Af fairs; Social Development and
Seniors; Home Affairs; and Transportation combined.
And Mr. Speaker, most of the money leaves
Bermuda. It does not circulate in our economy for further use by our people.
Revenues: From our perspective, nothing new
and nothing substantive was introduced to deliver an
economic trajectory which will show revenue growth
for the country. The Government’s Economic Recovery Plan is not robust enough. The Premier’s digital
industry focus is not creating the jobs that he said they
would. Recent statistics indicate that approximately 40
jobs for locals have resulted, and the industry is currently having its share of global negative press which
could be a real reputational risk to Bermuda.
Having showcased the challenges, let us not
forget and acknowledge the valued contributions
made by our international business sector, and the gradual recovery in tourism.
Job Creation: On the matter of job creation,
nothing significant was presented to stimulate job cr eation. There are no opportunities in the agricultural
and fishing industries to support food security.
Airlift: Here it should be noted that Bermuda’s
air capacity will remain below 2019 levels if Bermuda
has a limited number of hotel rooms and convention
374 24 February 2023 Official Hansard Report

Bermuda House of Assembly centres [on the Island]. It is fai r to say, that this situ ation will not improve until we have an additional 600
[hotel] rooms and a convention centre on the Island.
We applaud the Air Services Development
Committee for their work, and we hope that the results of their efforts will address our airlift challenge, which
is vital to the success of our tourism and International
Business sector.
Accounts Receivables: Again, this is just the
impact of the global economy.
The current Pre- Budget Report reaffirms that
the PLP Government’s tax collection and accounts
receivables portfolio across the Ministry is still gro wing. In fact, the report indicated that it grew 5 per cent
at the end of the current fiscal year. As a result of the
continued pressure to have this matter addressed, we
are pleased to see that the Government has presented the beginning of an accounts receivables recovery plan. Once again, they want to raise taxes, which they
have not been able to collect.
Guarantee Portfolio: The Government has not
addressed how they are managing Gov ernment’s
guarantee portfolio, which by the way, is not charged
against the debt ceiling. This guarantee portfolio is
valued at approximately $1.138 billion, and includes
[$29.3] million for the Bermuda Housing Corporation;
$[71].8 million for WEDCO; $1.5 million for Bermuda Economic Development Corporation (BEDC); $787
million for Bermuda Hospitals Board; $165 million for
Morgan’s Point; $10 million for the [Bermuda] Tourism
Authority; $2.7 million for the Bermuda Gaming Commission; $25 million for Hotel B ermuda Holdings; $30
million for BLDC; $10 million for Bermudiana Development Company Limited; $3.2 million for the National
Sports Centre; and $2.5 million for the InnoFund. The
source for these values is from the Bermuda Gover nment’s Estimates of Revenue and Expenditure for the
year 2022/23.
Bermuda’s FinTech Sector: As the Royal G azette aptly indicated in its December 19
th issue, Bermuda’s FinTech sector has experienced its fair share
of failures in the past four years and is now feeling the
effect of th e high- profile collapse of FTX, the world’s
second largest cryptocurrency exchange. Other not able headlines include locally registered companies which have filed liquidation petitions to the Supreme
Court, money laundering where a local executive in
the industry was extradited to the United States for
contravening anti -money laundering laws, and other
cases, which continue to cause anxiety for our regul ators. Currently, there are approximately 16 companies
on Bermuda’s company registers who employ b etween 40 to 50 people.
Is the industry’s presence and returns worth
the reputational risk which is currently being bestowed
on Bermuda? Is our robust digital asset regulatory
framework being used as a tool to attract FinTech companies? The Center for Evidence- Based Management indicated that Bermuda can provide legit i-macy for these companies so that they can attract
investors for this high risk and highly volatile industry.
As a jurisdiction, we need to pay very close attention
to the United States’ Securities and Exchange Commission (SEC), and provide increased scrutiny when it
comes to crypto companies, especially those who
wish to transition to publicly listed companies.
In 2022, the SEC failed to issue approvals for
a number of companies which applied to go pu blic
and be listed on a reputable exchange, according to
the January 25 edition of The Wall Street Journal.
This action resulted in the loss of confidence in the
crypto companies, as financial stress, failures, and
losses spread across this volatile indust ry.

REVISED TAX STRUCTURE

Hon. N. H. Cole Simons: Mr. Speaker, the Fiscal R esponsibility Panel (FRP) regarded 2019 as a year of
missed opportunity, and this position remains today. It
is not just because of the further delay in meeting the target for a b alanced budget, it is because of the absence of significant tax reform which was proposed by the Tax Reform Commission and the Fiscal Responsibility Panel.
Added to this there is also the easing of the
Government’s fiscal targets, facilitated by the suspension of contributions to the Sinking Fund. The Fiscal
Responsibility Panel also recommends that the country should brace itself for a revised tax structure. The
Panel feel that the current structure is unsustainable
in addressing Bermuda’s economy. In real terms, this
means more taxes for the people of Bermuda as they
believe that a reasonable tax revenue, as a percentage of GDP, should be around 19 [per cent] to 20 per
cent. This is an increase of approximately $190 million
over three years.
It should also be noted, that with the imminent
embodiment of the Tax Reform Committee, a more
fair and equitable tax structure should be examined.
Recently, we had the topical issue of the proposed
restructure of Bermuda’s payroll tax structure.
Mr. Speaker, the new tax proposals a nnounced by the [Minister] of Finance are likely to have
a significant negative impact on the economy by sol ely targeting the International Business (IB) sector and
virtually no one else. Factually, IB is the only economic growth engine in Ber muda. They already infuse mi llions of dollars of taxes, corporate spending, and
spending by their staff. The other leg of our economy,
which is tourism, was drastically weakened by the i mpact of COVID -19, the closure of the Fairmont Sout hampton, and Elbow Beach. No other sector is signif icant enough in size other than the public sector.
Mr. Speaker, the first rule of public finance for
a jurisdiction like Bermuda, is to mitigate its spending
to the greatest extent practicable. When the OBA was
the Government, we reduced public spending by
12 per cent without laying anyone off. Since that time,


Bermuda House of Assembly spending has increased to levels not seen since 2012.
So far, we have not heard anything from the Minister
of Finance regarding cuts in government spending.
The irony is that he is demanding that IB increase its
funding of a government whose spending is out of
control. This is what business means when they say
that the PLP’s proposals are not “responsible.”
It is not responsible because the payroll tax
[proposals] hit IB especially hard, as traditionally, they
pay both the employer and employee portions of pa yroll tax.
The OBA fully supports the examination of a
progressive tax system, which is fair and equitable for
all stakeholders. We believe that all taxpayers shou ld
share in the tax burden to some degree, as all taxpayers reap the underlying benefits from government
services. Therefore, we do not agree with the pr oposal that those earning below a specific amount should have zero tax. Lower earners should pay pr oportionately less, but not zero.
Interestingly, in its Pre- Budget Report, this
Government indicated that it was looking to IB for new taxes, when they cannot collect the [hundreds of] mi llions of taxes that are already owed. Somehow, it has
never been able to effectively manage and effectively
collect its own back taxes.
Mr. Speaker, on Bermuda’s general tax r eform, we should consider the Fiscal Responsibility
[Panel’s] recommendation and position. They take the
view that our government tax revenue to GDP rati o
should fall between 20.0 [per cent] to [22.5] per cent
because the current level and method of taxation is dated and is not working for the country or our people.
In addition, we should have a clear philosophy
and ensure that there is an equitable balanc e between
consumption taxes, capital taxes, and labour taxes to
support the national tax framework.
But before any of this can be done, the Government must clearly define its taxation philosophy to
the people of Bermuda.

TOURISM
Hon. N. H. Cole Simons: Mr. Speaker, Bermuda’s
tourism industry is in a crisis, a real crisis that has never [been] seen before. Mr. Speaker, according to the Tourism Minister ––and I agree, cruise travel is a
critical revenue earner for Bermuda’s tourism economy––according to government statistics, Bermuda has
enjoyed a strong cruise ship season, with 116 [cruise] calls to Bermuda by mid- September. The team at the
BTA projects that cruise visitor volumes will be up to
400,000 passengers, contributing $162 million to the
local economy.
As the pandemic has waned, and Bermuda
has relaxed some of the stringent requirements, unvaccinated travellers are now being allowed to Bermuda, and the industry has been energised by news
of more welcomed changes to come. Mr. Speaker, airlift and hotel capacity have not yet returned to prepandemic levels. Hotel inventory has proven to be a
limiting factor in the Island’s bid to restore air capacity.
So, the growth of our hotel bed count is a pressing
need for tourism’s recovery.
While it is a challeng ing environment, there
are some promising developments on the hotel front.
Azura has announced that it will complete its final
phase of construction this fall, and that its second
property, Nautilus, is progressing well with a sold- out
phase one, and [the] hotel opening is slated for 2024.
The Bermudiana Beach Hotel, a Tapestry Resort by Hilton, is set to add 110 much- needed hotel rooms
into inventory in 2023. Likewise, Rosedon [Hotel],
which has developed an award- winning sustainable
farm-to-table culinary model at the property’s resta urant, will reopen its boutique hotel next year with 12 luxury rooms.
Cambridge Beaches has invested in renov ations to the property and the opening of new food and
beverage outlets, but the Southampton Princess r emains the greatest question mark regarding Berm uda’s tourism recovery. Without this hotel, Bermuda’s tourism renaissance will be stymied.
Mr. Speaker, looking at our cousins to the
south of us, on January 9, 2023, the Caribbean Tourism Organization [CTO] indicated that in 2022 the
Caribbean was one of the fastest recovering tourism
regions in the world, with some destinations recording arrivals more than in 2019. All Caribbean destinations
are expected to reach or exceed the 2019 level in
2023. Some destinations are expecting to make dr amatic strides in cruise ship arrivals this year. The US
Virgin Islands expects to have 450 cruise ship calls
with 1.4 million people.
Air arrivals/stopover visitors and tourist arr ivals, for the period January to September 30, [2022],
presented some interesting figures. I am not going to go through all the [figures] because of time, Mr. Speaker, but what I will do is just share, as I said, the
statistics presented by Tourism Analytics and the
CTO. So for the period January to Septem ber 202 2,
for airline stopovers
• Jamaica 1,8[17,791]
• Bahamas 1,[064,336]
• US Virgin Islands [728,671]
• Barbados 38[3,360]
• Bermuda 113,[020]
This is telling, Mr. Speaker. When it comes to
cruise visitors, for the same period, January to September 2022
• Bahamas 3,5[74,502]
• Virgin Islands 8[10,632]
• St. Maarten 5[47,907]
• Belize 5[16,803]
• Cayman Islands 5[16,161]
• Bermuda 30[2,777]
376 24 February 2023 Official Hansard Report

Bermuda House of Assembly Regarding the tourism product, more inves tment is needed in our beach facilities. Mr. Speaker, I
have a question: Why has there not been an allotment
to add changing facilities and bathroom facilities at Elbow Beach, which is a very popular beach for both locals and tourists all year around? In addition, may I
also invite the Bermuda Tourism Authority to craft a
conci erge- type service which collects and delivers our
guests to local tourist events and establishments on
the Island? To facilitate this process, it is our opinion
that Bermuda should have a management plan which markets and promotes local tourism products and activities like carnivals, Harbour Nights, the Ag Show,
Cup Match, the Bermuda Festival, and other local
events.
Also, before we go on to the next topic, which
is the Fairmont Southampton Hotel, can the Minister please confirm how he plans to help our taxi drivers,
our tourism ambassadors? What benefits will they
receive? As self -employed professionals, they should
not be paying both the employer’s share of the payroll
tax and the employee’s share of the payroll taxes.
How will this anomaly be addressed?

FAIRMONT SOUTHAMPTON HOTEL

Hon. N. H. Cole Simons: Mr. Speaker, as we all
know the Fairmont Southampton closed in [September] 2020, resulting in the loss of more than 700 jobs.
It also cost the PLP Government $11 million in loans
for redundancy benefits which were later recovered. It
is our understanding that the project financing may be
in place and that there is an existing massive cloud of doubt over the development project’s future. There
are those who have indicated that once the pending
Special Development Order is completed and fina lised, the hotel complex may be prepared for sale.
There are others who feel that the emphasis will be
placed on developing and selling the said villas to a llow the owners and developers to enjoy a capital i ncome stream w hich will feed the various development
phases of this massive development project.
Its future is also in doubt because of the continued escalation in the cost of financing as a result of US interest rate hikes, the pending global recession,
and the ever -increasing cost of cement, associated
other construction costs, and the general supply chain
challenges. There are also the questions around the
competition and closing of the overall development
agreement between the Government and Westend
Development Company/Gencom Limited.
Mr. Speaker, this project is crucial to Berm uda. A P wC (PricewaterhouseCoopers) Impact report
on this topic indicated that in 2019 the hotel account-ed for
• 25 per cent of Bermuda’s hotel room invent ory;
• 31 per cent of Bermuda’s hospital ity industry
workforce; and • 35 per cent of air visitor stay s in hotels.
Going forward, it will provide 716 new construction jobs and $44 million of net additional impact
on our GDP in 2022.
If the hotel remains closed, it will have an $80
million negativ e impact on Bermuda’s GDP in 2022.
The negative impact on GDP considers the loss of
conferences due to limited spaces for large conferences, thus the loss of visitors to the Island.
Mr. Speaker, the P wC [Impact] report said
that based on the operator proj ections, if Gencom or
any other investor does not proceed with the transac-tion or renovation, and shuts down permanently, the
opportunity cost is estimated to be $60 million in 2022
and up to $118 million in 2025, or an accumulated
cost of $404.1 million f or four years from 2022 to
2025.
Mr. Speaker, please allow me to be frank.
Bermuda is desperate to have this 600- room hotel
and its convention facility reopened within the next
two or three years, as the rebirth of this landmark
property will boost staffing levels, provide career
pathways for professionals in hospitality sector and
revitalise Bermuda’s tourism industry. Can the Premier be honest and confirm where we stand with this multi- million dollar project? With all of its twists and
turns, the One Berm uda Alliance will watch the development of this critical project with a forensic focus.

MORGAN’S POINT

Hon. N. H. Cole Simons: Is this going to be Berm uda’s version of the Cayman Island’s Caymana Bay? What is the overall objective of this project? Why is
the Government competing with its newly released
plan to boost a residential development along with a
restaurant and retail complex in Hamilton, Somerset, and St. George’s which will provide opportunities in the retail and hospitality sector?
Mr. Speaker, given the fact that the Gover nment has not built or opened a new hotel in the past 20 years, this reimagined complex sounds like a fairy tale. Is this a betrayal of our commitment to tourism
because of the Government’s inability to close on the
Fairmont S outhampton Hotel deal? Mr. Speaker,
again, this reimagined complex sounds like a fairy
tale.
Mr. Speaker, Mr. Burt is bullish on the pr oposals for Morgan’s Point, although this plan raises
some questions. Mr. Speaker, as the Royal Gazette
indicated, while it makes sense to finish the buildings
on the site, and it may also make sense for the buil ding to be used as housing, and possibly to drop the
hotel element of the project, the Government is under-taking all of this. And that gives rise to uncertainty, as
the Premier has himself admitted.
Mr. Speaker, it appears that the Government
intends to borrow $130 million for the first phase of the project, with at least part of that borrowing secured by


Bermuda House of Assembly a Government guarantee. So, $130 million will be borrowed with the help of a guarantee to recover the
$165 million that the Government had to spend to
make good the guarantee its predecessor in Gover nment committed to. In addition, the Government has
spent a further $50 million for restructuring the project
and payin g other creditors. This seems to mean that
before recovering any money, Bermuda will be $295
million in the hole and each of the 100 units will cost
approximately $1 million [per unit] to build.
Mr. Speaker, when Premier David Burt was
the Shadow Finance Minister, he rightly warned against issuing guarantees to businesses, noting they
were needed only when there is some doubt as to the
ability to repay . The fact that he should be now pr oposing one for Morgan’s Point, on top of the $75 mi llion guarantee given to the Fairmont Southampton, seems a little bizarre. Is he now having a reality
check? A guarantee will be vital for the debt financing
as the environmental remediation challenges still
plague the site in some of the underground caves. Mr. Speaker, this looks like another Bermudiana Beach
complex waiting to happen, and I truly hope that is not
the case.

DIGITAL COMMERCE
Hon. N. H. Cole Simons: Mr. Speaker, while on dig ital business, may I take this opportunity to be a bit flippant (and I mentioned it to you earlier). With all the
Premier’s IT and digital skills, can the Premier please
explain why a digital copy of the Estimates of Rev enue and Expenditure for the Year 2023/24 was not
prepared when he, the Minister of Finance, presented
the Government’s Bu dget for the same fiscal year?
Can he ensure that this happens next year? Thank
you.
Mr. Speaker, quite a lot is also being said
about the opportunities in Bermuda’s digital commerce arena and the One Bermuda Alliance supports
this discussion. With Bermuda ’s legislative, regulatory
and telecommunications framework, and its digital
communications infrastructure, we stand ready to cap-italise on this emerging and growing industry.
Mr. Speaker, as stated by the Fiscal Responsibility Panel, the One Bermuda Alliance does not support this Government’s intention to own or promote
a digital bank in Bermuda. This initiative should be
driven by the private sector —period.
Mr. Speaker, we recognise why the Gover nment is trying to do this. According to their 2020 platform, they want to create the Bermuda National Digital
Bank with ownership shares available to all Bermudians to invest and create wealth for future generations.
The bank will allow for long- stalled industries, like
gaming to commence, creating jobs and econom ic
growth, while connecting Bermuda’s residents and entrepreneurs to the global world of digital payments.
This bank will ensure that Bermudians can benefit from lower mortgage rates to reduce pressure on
middle -class families, while lower rates will incre ase
the value of existing homes.
Mr. Speaker, the Fiscal Responsibility Panel
in their most recent report said it succinctly. I quote: “A
new digital bank will not address all of the factors r esponsible for the lack of access to quality banking
services ex perienced by many Bermudians. Other
potential issues include a lack of competition between
banks and barriers to entry in the retail banking market; banks’ access to retail customer credit scoring and other data, and other barriers to writing new bus iness; strengthening consumer protection in financial
services; payment systems; and the lack of liquidity in Bermudian residential real estate or a secondary
mortgage backed securities market. Also inhibiting
access to finance is the absence of any requirement for businesses to provide routine financial statements
or accounts, and the absence of clear legal proc edures for handling company failures in the non-financial sector. [Especially] for small businesses, this
may hinder their access to capital.”
As the Fi scal Responsibility Panel said, we
expect the provision of robust training and internship
programmes and the creation of new jobs for Berm udians .
In addition, from a taxation perspective, the
digital sector will benefit from the traditional tax
schemes cur rently in place in Bermuda, such as company taxes, payroll taxes and land taxes. The PLP
Government should consider the further examination
of a negotiated value- added tax for the privilege of
booking their local and global Internet business ear nings from Bermuda. This approach is not new, and the industry is familiar with it.
Mr. Speaker, the One Bermuda Alliance is also concerned about some CEOs who have violated
foreign corruption, trading, and international sanctions
laws locally and internationally. We take the view that
enhanced Know Your Customer and Anti -Money
Laundering investigations need to be completed b efore these senior people are granted permission to
operate in Bermuda by the Government and the Bermuda Monetary Authority.
Mr. Speaker, we have had more than our
share of investigations by the SEC, the US Gover nment, and other international agencies. Mr. Speaker,
in fact, I recently read that three federal agencies in
the US have suddenly issued a wide- ranging warning
on the dangers posed to bank s by crypto asset risks.
Recently, the Board of Governors of the Fe deral Reserve System, the Federal Deposit Insurance
Corporation, and the Office of the Comptroller of the
Currency, jointly listed a number of key [risks] assoc iated with crypto assets and crypto asset sector parti cipants, of which they said banking organisations
should be aware. The warning is said to be linked to the significant volatility and the exposure of vulnerabi lities in the crypto asset sector experienced over the
378 24 February 2023 Official Hansard Report

Bermuda House of Assembly last year, when [ the] cryptocurrency exchange FTX
filed for Chapter 11 bankruptcy protection in November. This collapse shook the volatile crypto market. It
caused a near domino effect that saw more than 100
linked companies file for bankruptcy or suffer heavy losses. The market lost billions in value.

BERMUDA’S GAMING INDUSTRY

Hon. N. H. Cole Simons: Mr. Speaker, in the past
two or three years the topic of gaming has been very
popular, as it is an amenity which can support our ever-evolving tourism industry. Mr. Speaker, the Gaming
Commission issued one licence and one provisional
licence to two of our world- class resorts. As you know,
recently one of these resorts indicated that they are
no longer keen on moving ahead with their gaming
offering because the legislative fr amework and oper ational framework are deemed to be very challenging
and cumbersome. Moreover, the banking component
of the structure has not been resolved, even though we are making progress in this space. I have been
advised that the delay in gaming lies squarely at the
feet of the Premier, and that the banking matter can
be resolved if the Premier does what is required.
Again, the Burt Government has failed its people with
its empty promises.
Mr. Speaker, there are other local stakehol ders who believe that the overarching Gaming Com-mission legislation must be amended so that the
Commission is independent of Government influence
and interference. It should include the removal of the
requirement that a Government representative sits on the Board of the Commi ssion. In fact, it was noted that
the Gaming Commission should have the same type
of independence and autonomy as the Bermuda
Monetary Authority.
In addition, one of our local banks has indicated that their US correspondent bank would be r eceptive to moving forward with banking [Bermuda’s]
gaming proceeds if the ultimate responsibility for gaming is removed from under the Premier’s purview, and
that the Premier should also relinquish his role as the Minister of Finance.
As most in our country are aware, the current
Government has indicated that operationally Bermuda will be progressing with a cashless gaming solution.
What does a cashless gaming solution mean? Are we
talking about credit cards only? Are we looking at
crypto currencies like Bitcoin, Ethereum, or Tether
through blockchain solutions? Transparency is r equired as potential operators who were prepared to invest in this industry, are not clear on Government’s
cashless gaming direction. This matter must be r esolved soon. Considering all of this, we m ust get it
right, as Government has a responsibility to fulfil its
obligations as prescribed under the various hotel development agreements.
IMMIGRATION

Hon. N. H. Cole Simons: Mr. Speaker, Immigration
Reform has been a thorny and very emotive issue for
successive Governments of Bermuda and her people.
It has been a political football with the aid of successive PLP Governments. But despite this, the Progressive Labour Party has begun to make progress in this
space. The Government is finally beginning to r ecognise that Bermuda’s workforce and population must
be expanded.
Mr. Speaker, they are finally accepting the
fact that expanding the current workforce is crucial,
and consequently, a good Immigration policy is a
good economic policy, something that the O ne Bermuda Alliance has been stating from its inception. We
need a minimum of 10,000 new residents to bolster our economy. There are no ifs, ands or buts about it.
We need thousands of bodies on our Island who will
bring jobs or create jobs.
As stated in l ast year’s [Reply], Ruchir Sharma’s The 10 Rules of Successful Nations , increasing
populations has accounted for roughly half of econom-ic growth and that if the population is shrinking, it is
close to impossible to generate strong economic
growth. As th e European Commission stated in 2005,
“never in history has there been economic growth without population growth.”
Mr. Speaker, for the edification [of] our community, let me explain why the [expansion] of our
workforce is so crucial. Having more working peop le
in Bermuda means greater payroll tax collection and
more local consumption which increases customs duty. A greater residential population creates a multiplier
effect on our two biggest buckets of tax.
• Healthcare costs: Guest workers are generally
younger and healthier than our average res ident. Increasing the number of guest workers
massively improves the sustainability of our
healthcare system.
• Ageing population: Increasing the working age
population with all else staying the same, directly reduces our maintenance ratio. Total
healthcare costs and ageing population are closely intertwined.
• Global compliance requirements: Many companies are going to have to do more to justify their presence in Bermuda under the new tax regimes. We are competing with other jurisdictions on this front and must [present] a
welcoming attitude.
• Narrow economy: More working age people
on Island decreases the [tax] load per person.
Mr. Speaker, keeping it real, our economy,
social wellness and security are inextricably linked with immigration, more so than nearly any other juri sdiction. We are a service economy with no physical
exports and only two [pillar] industries, one of which
produces much of our foreign exchange, employment,


Bermuda House of Assembly and tax revenues, which is international business . The
time has long been spent. This immigration review
must start now. Immigration reform just makes good
business sense.

RESPONSE FROM THE INTERNATIONAL
BUSINESS (“IB”) SECTOR

Hon. N. H. Cole Simons: Mr. Speaker, in preparation
for this debate, we spok e to a number of stakeholders
in the international business arena, and I would like to
share with you some of their comments.
Mr. Speaker, PwC Global recently released a
survey of 4,410 global chief executive [officers] in 105 countries including Bermuda and the Caribbean. The
findings of the survey suggest that they have one of
the most pessimistic outlooks for international bus iness in more than a decade. The survey also found that 73 per cent of CEOs around the world believe
that global economic growth will decline over the next
12 months. Nearly 40 per cent of CEOs think their
organisations will not be economically viable in a dec-ade if they continue on their present path. The pattern
is consistent across a range of sectors, including i nsurance, telecom munications, manufacturing,
healthcare, and technology.
Mr. Speaker, CEO confidence in their own
company’s growth prospects also declined by 26 per
cent, the biggest drop since the 2008 to 2009 financial crisis when an 8 per cent decline was recorded. Considering this, CEOs face an incredible challenge to
reinvent their businesses for the future. They are see-ing multiple direct challenges to profitability within their own industries over the next 10 years. More than half
believe that changing customer demand and preferences will impact profitability, followed by changes in
regulation, taxation, labour/skills shortages and tec hnology disruptions.
Financial s ervices CEOs cite regulatory
change (60 per cent) as their biggest potential source
of industry disrupt ion, followed by evolving customer
preferences, technology shifts and labour/skills shor tages. Inflation, macroeconomic volatility, and geopoli tical conflict topped CEO concerns.
Mr. Speaker, not surprisingly, the war in
Ukraine and growing concern about geopolitical flas hpoints in other parts of the world have caused CEOs to rethink aspects of their business models. To mit igate exposure, companies are increasing their i nvestments in cybersecurity or data privacy, adapting
supply chains, and adjusting their geographic footprint. Climate risk did not feature as prominently as a
short -term risk over the [year] relative to other global
risks. This was the case as well in the insurance sector where CEOs ranked it as the fourth- biggest risk
they face over the nex t 10 months, while inflation was
number one. Closer to home, Mr. Speaker, a Berm udian lawyer identified shifting reinsurance market
trends that could also alter the future of cat bonds and the issuance of insurance- linked securities in the year
ahead. Appl eby lawyer, Brad Adderley, noted the hard
reinsurance market could be expected to last three to
five years, but there had been no rush to market of
new investors in the wake of the heavy catastrophe claims of Hurricane Ian.
Mr. Speaker, in preparation for this debate,
the One Bermuda Alliance met with a number of inter-national business leaders and attended several IB
events, and the message is very simple. The Government is just not taking the war on human capital
seriously enough. I repeat: The Government is not
taking the war on human capital seriously enough.
They must consider the competitive landscape and that Bermuda’s employee costs are 15.0 [per cent] to
20.0 per cent higher than in other jurisdictions. Added
to which, Mr. Speaker, is the remote work er, who can
deliver their services digitally from anywhere in the
world. And costs continue to escalate, whether for
food, healthcare, housing, energy, government services and immigration permits. They indicate that human resource expenses continue to rise, and now form approximately 22.75 per cent of their total operating cost.
This situation is untenable in the insurance
and reinsurance markets as the underwriting margins
become thinner and thinner. IB also made it clear that the Premier’s Budget Speech s tated that 86 per cent
of Bermuda’s workforce will pay less in payroll taxes
next year. Their question to this is, Where is the ba lance of the 14 per cent coming from? IB takes the
view that the majority of the 14 per cent will be coming
from the internati onal business sector and middle -
class Bermudians. This will also have an adverse i mpact on attracting senior and specialist employees who already come at a higher cost, as some CEOs
may redeploy them to more competitive and less expensive jurisdictions.
ABIR [ Association of Bermuda Insurers and
Reinsurers ] made it clear that because of the spira lling costs and the difficulty in having their employees
assimilate in Bermuda, they are currently reviewing
their options as the Government’s changes will have a
negative net impact on their businesses.
Mr. Speaker, in the past, a number of these
international business companies have been quiet and were not prepared to vent their anxieties publicly.
But more recently their concerns have become overt,
which is out of character for them. They indicated that
without thorough consultation they were shocked when the Government floated the introduction of new disruptors to their businesses in the Pre- Budget [R eport] statement. They said that with the proposed i ncrease of pa yroll taxes and fee bands that are aligned
with company’s assessed capital, they were a ggrieved, frustrated and surprised. They were dishear tened by Government’s friendly fire. They believe that their organisations should be spending most of their
energies and resources on addressing the OECD’s
380 24 February 2023 Official Hansard Report

Bermuda House of Assembly BEPS [ Base Erosion and Profit Shifting] initiatives,
and competing with the EU [European Union], Dubai,
Switzerland and London, and our friends to the south,
like the Cayman Islands. They should not have to continuously look over their shoulders to see what the Government is doing to draw from their arsenal to fire
at them.
Where is the synergy? Where is the certainty?
Where is the respect for these businesses who help our economy? They take the view that with the new
payroll taxes and the inefficiencies and uncertainties
prevalent in the Department of Immigration, they must
reassess some of their decisions. They feel that these
new taxes are divisive and will be punitive for them to
continue to put heads and bodies on the Island.
In addition, they cannot come to terms with
increasing taxes across the board, when the PLP Government cannot recover or collect the $[300] mi llion in accounts receivables on existing taxes. Mr.
Speaker, if we cannot manage these taxes, Bermuda
would look like clowns when it comes to managing the pending tax harmonisation initiative coming down the
road because of the OECD’s BEPS programme. Mr.
Speaker, let’s be real. IB is operating in a truly and
globally competitive environment, and these comp anies are quietly shifting roles out of Bermuda to where
there is more certainty, more cost efficiencies and more value for money. Quietly, through attrition or
nonrenewal of work permits, jobs and positions are
dripping to more competitive jurisdictions .
This is partially attested by the fact that in
2022, ABIR members employed [more than] 87,000 employees around the world. There are 37.94 tho usand people working in the US for ABIR companies.
There are 34.28 thousand people in Asia and Oceania
working f or ABIR companies. There are 8[.13] thousand people working in the UK for ABIR companies.
There are 5[.73] thousand people working in the E uropean Union for ABIR companies. Mr. Speaker, guess how many employees are working in Bermuda
for ABIR companies? [T here are] 1.3[30] thousand
[employees]. That sends a clear message, Mr.
Speaker.
Let’s build on the things that this industry has
achieved and done well. We should nurture our gol den goose, not strangle it.

GLOBAL MINIMUM TAX AND TAX REFORM

Hon. N. H. Cole Simons: Global tax reform is an o ngoing matter for most jurisdictions, and many nations
are responding and readjusting their fiscal frameworks accordingly. In fact, there appears to be tax arbitrage
amongst many jurisdictions. To remain competitive,
Bermuda must be best in class in terms of talent, i nfrastructure, immigration, healthcare, housing, and
lifestyle. Mr. Speaker, despite these challenges, in
principle, we in the Opposition support the direction
taken by the Government. We agree that it is too early to estimate what impact the global minimum tax is
going to have on Bermuda’s future tax structure and
tax collections. In addition, we have yet to determine
how we are going to manage the complexities which
will arise as a result of developing the appropriate framework for Bermuda.
In addition, we will also monitor other compet itive jurisdictions to see how they are going to adopt the OECD’s [global] minimum tax initiative. As far as
we know, the US Republican- controlled Senate has
grave concerns ab out this initiative, and Singapore
has indicated that the earliest that they will implement this is in 2025.
Mr. Speaker, we look forward to receiving the
details on those who will be appointed to the Interna-tional Tax Working Group who will be charged wit h
examining how Bermuda will implement this global
agreement while considering the diversity and complexity of our international business sector. We also
look forward to receiving their findings and recommendations in their report which is due in July of t his
year.

PENSION FUNDS FOR INVESTMENT

Hon. N. H. Cole Simons: Mr. Speaker, Government
actuaries have indicated that the public sector pension fund will be depleted by 2044. Imagine what that sounds like to a young person at the beginning of their
career . This simply cannot happen. If we stay on this
trajectory, we will see even more young Bermudians
emigrating. We must encourage them to stay and [we must] attract talent back to Bermuda. They will need
to see and believe that they are returning to som ething that will offer them real opportunities.
Mr. Speaker, once again, the PLP Gover nment is silent when it comes to the unfunded liability for our Public Service Superannuation Fund, the Government Health Insurance Fund, and the Members of the Legislature [ Pension] Fund. For the record, it
stands at approximately $1.74 billion, based on the
latest Auditor General’s report and the latest Gover nment actuarial report. Will Government employees
have a pension that they can draw on when they retire
in the years t o come? Mr. Speaker, this question is
not unreasonable given that the total liability due to
our pension plan participants, and Government’s
noteholders, now stands at approximately $4.6 billion.
Mr. Speaker, if we are going to be truly transparent, we should note that this Government funded
some of their stimulus programmes on the back of pension funds and the pension holiday, which only
kicked the can further down the road.

ACCOUNTS RECEIVABLES DUE
TO GOVERNMENT

Hon. N. H. Cole Simons: Mr. Speaker, the Ministry of
Finance confirmed that the Government is currently


Bermuda House of Assembly owed approximately $314 million in taxes and fees
and are only prepared to recover a paltry $7.5 million
this coming year. This is a mere 2.3 per cent of the
outstanding balance. What is going on? Again, anot her Government failure.
Mr. Speaker, with the improved enforcement
policies and procedures, and the improved infrastructure investment for debt collection, surely the expected recovery should be at least $62.5 million,
which is approximately 20 per cent of these outstanding receivables. Mr. Speaker, we understand that
Oarrs Inc. and PwC were hired to address and recover these funds. PwC was paid approximately $4.2 mi llion for their services. How much did the Government
pay Oarrs Inc, an unaut horised collection agency, for
their services?
As the Minister indicated in March of last year,
by not collecting these funds, the Government cannot
address or deliver the services that the people of
Bermuda voted to receive, such as the development
of inf rastructure projects like school and road repairs
or issues associated with healthcare, pensions, youth
programmes and many other social initiatives. Interestingly, on another note, in July 2021 the Gover nment overpaid $3.5 million in unemployment benefits
during the COVID -19 lockdowns, which was admitted
by the Minister of Finance. About 2,500 people were overpaid on average $1,300 via unauthorised pa yments by senior civil servants because the applicants did not inform the Government that they returned to
work and continued to receive the money. Who is being held accountable? When will these receivables be
cleared?

CAPITAL EXPENDITURES

Hon. N. H. Cole Simons: Mr. Speaker, the Gover nment has earmarked a lofty $96 million for the
2023/24 fiscal year. We understand their intent as this
forms a part of Bermuda’s Economic Recovery Plan.
But Mr. Speaker, let’s be honest. There could have
been a far less expensive allocation for capital expenditures, if we had proper and ongoing maint enance programmes for our roa ds, buildings, and
beaches. We do not allow our homes to crumble be-fore we decide to work on them, and the same should apply to government real estate and other assets.
They all need to be managed and maintained from
day one.
It is shameful that the ferry dock in St.
George’s became inoperable. It is shameful that the
swing bridge in St. George’s has been out of commi ssion for years. It is shameful that the floating dock at
the Hamilton Ferry dock is one hurricane away from
being inoperable. Look at the challenges faced by the
Tynes Bay Waste [Treatment Facility], which resulted in the temporary landfilling and the inconvenience to
Pembroke residents. This is a trend that must stop
now. Mr. Speaker, the Premier is correct when he
states that the lack of the needed infrastructure i nvestments has caused the risk of catastrophic failures
which we face today. On the positive side, we support
the capital investments in our schools and the deve lopment of a community health clinic in Somerset. We
also support the upgraded facilities that house go vernment employees, which include the Government
Quarry, DPT Depot, and Marine and Ports. We also
support the replacement of ageing public vehicles for
the Bermuda Police Service, the Bermuda Fire Ser-vice, and the Department of Corrections. And finally,
we support the upgrades to our court facilities, and the
increased funding for our paved roads.

Hon. N. H. Cole Simons: Mr. Speaker, I now go into
banking reform —

Mr. Opposition Leader, before you
start, this ma y be a good point to take that recess. I
am looking to see that there are still quite a few more
pages to be read and we will have a long day ahead of us. So, I am going to suggest that we break and do
our lunch at this time and then come back at two
o’clock and you can start at that heading in your
presentation there. Okay?
Madam Attorney General, would you like to
move us for lunch?
Hon. Kathy Lynn Simmons: Mr. Speaker, I move
that we adjourn for lunch until 2:15—

Mr. Opposition Leader, you have the
floor.

382 24 February 2023 Official Hansard Report

Bermuda House of Assembly THE OPPOSITION’S REPLY TO THE
BUDGET STATEMENT 2023/24

[Continuation thereof]
Hon. N. H. Cole Simons: Thank you, Mr. Speaker.

BANKING REFORM
Hon. N. H. Cole Simons: Mr. Speaker, banking r eform i s nothing new to Bermuda. It just takes a very
long lead time for any development to come to fruition.
Mr. Speaker, obviously, the One Bermuda A lliance supports competition in our banking industry. In
fact, our former Finance Minister, the Honourable Bob Richards, was working on this with his ministerial team
in 2012 under the One Bermuda Alliance Administr ation. Like the current Government, they also knocked on a few doors with the hope of enticing new banks to
join us here in Bermuda. In fact, as the team in the
Ministry of Finance can affirm, it is very difficult to ca pture the attention of global banks and blue- chip banks
to come and operate from Bermuda. We don’t have
the scale, we don’t have the air capacity, we are not
competitive when it comes to hum an capital when it
comes to costs and availability.
Furthermore, we are challenged with expensive IT and communications costs and the high cost of
real estate. We are also inhibited because we are
known as the one of the most expensive jurisdictions
in the world and there was little confidence that they
can get a good return on their investments and cap ital.
Mr. Speaker, as previously stated, a Bermuda
digital bank should not be advanced and developed
by the Government of Bermuda. The Government can
set th e environment which can bring it to fruition, but it
should not be involved in its ownership or operations. This should be left for development by private sector players and initiatives. With the advancement of the
crypto economies, and the digital assets and digital
banks we should expect a new level of risk to the
Government’s asset portfolio, which will compromise Bermuda’s sovereign debt ratings, and our ability to
raise financing in the global capital markets at affor dable prices. And I say at affordab le prices.
Here it should also be noted that the vision of
the banking sector presented is not a picture of som ething new and different. It is merely a reflection of the
status quo with some questionable additions around
specialised international banks.
a) Narrow purpose banks: These restricted
licences already exist under the Third
Schedule of the Bank and Deposit Companies Act 1999, and not one has ever
materialised, and nor does there seem to
be any appetite for them because they
cannot get correspondent banking services for the class of business that these banks are targeting. And this class i ncludes gaming and cannabis. It is also the same root problem. It is a matter of trust.
b) When it comes to credit unions, perhaps the Government should direct some of i ts
resources (via the BMA) towards shoring
up the solvency of one of our existing
credit unions on the Island.
c) Specialised banks: I wonder what poss ible reason these banks would have for
wanting to come to our shores? If they aren’t focused on domestic consumers or
businesses, what value will they bring? If
promises have been made, how will those
promises impact Mr. and Mrs. Bermuda?
d) Regarding the Bermuda Commercial Bank mortgage guarantee, it is concer ning to see the Government actively undermining competi tion, whether it be with
courier services or in the banking indus-try.

THE SINKING FUND

Hon. N. H. Cole Simons: Mr. Speaker, for the edific ation of the public, please note that the Sinking Fund
was set up by law specifically to provide for the r etirement of debt. In fact, the original annual contribution was earmarked at 2.5 per cent of the outstanding
debt for the expiring fiscal year. It appears that this
Minister of Finance made it clear that he will not be
hamstrung by this inconvenience.
What will be the Burt Government’s policy g oing forward? Will the Sinking Fund contributions be made only in times of plenty, when we have current
account surpluses, and when we have borrowed more
money than we need from the capital markets? Will
the suspension of cont ributions to the Sinking Fund be
permanently on the table, or will the suspension be
temporary? How are we going to retire the growing
debt that Bermuda faces as a result of the Progressive Labour Party Government?
Mr. Speaker, for 2023[/24], we should expect
to maintain a balance in the Sinking Fund of $[151.68]
million, which is down from $348 million in 2020/21,
down from $297 million in 2021/22, and down from $245 million in 2022/23. What is causing this dow nward trend? Why is the PLP Government raiding the
Sinking Fund? The answer is simple. The Gover nment is raiding the account to pay current account
expenditures or capital account expenditures.
For the record, the Burt Government has not
repaid and reduced Bermuda’s $3.3 billion gross national debt for a number of years. They are intent on
passing this responsibility, and burden to our children and grandchildren for generations to come. There is
no plan or road map to manage or halt the unabated
growth of our national debt, which is a shameful lega-cy for the Burt administration.


Bermuda House of Assembly Mr. Speaker, just last year it went from
$245.376 million to $151.682 million estimated for this
upcoming fiscal year. This is a reduction of $93.7 mi llion or 38.2 per cent. It is our guess that this $93 mi llion withdrawal is be ing used to fund the majority of
this year’s $96 million capital expenditures. Does the
Capex payment fall in line with the original mandate of
Bermuda’s Sinking Fund? The answer is a definite no!

HEALTHCARE
Hon. N. H. Cole Simons: Mr. Speaker, please al low
me once again to applaud and thank Bermuda’s healthcare workers for the work that they have accomplished over two years, for the management and mitigation of COVID -19 and the Delta and Omicron
variants which plagued this Island. It nearly brought the c ountry to its knees economically and medically.
Mr. Speaker, where do we stand with the
Bermuda Health Strategy 2022 –2027? This strategy
formed the foundation of an aspirational plan which would ensure that all people have equitable access to
the needed informative, preventative, curative, rehabilitative and palliative essential health services of sufficient quality to be effective while also ensuring that
people do not suffer financial hardship when paying
for these services and critical medicines.
Mr. Spe aker, the strategy for this aspirational
plan was to be based on seven strategic principles.
1. Promoting healthy living and preventative
care.
2. Focusing on person- centred care.
3. Understanding our population’s health
needs.
4. Providing access to healthcare coverage.
5. Strengthening our healthcare workforce.
6. Harnessing healthcare technology; and
7. Partnership and collaborative working.
Mr. Speaker, we understand that the new n ational health plan will be crafted and finalised through
a graduated phased process. When wil l Bermuda’s
revised national health plan be delivered? How much
will the implementation of this plan cost, and how much has been allotted to it for the 2023 fiscal year?
Mr. Speaker, the One Bermuda Alliance believes that all Bermudians should have access to af-fordable, high- quality healthcare. Through true and
transparent consultation, the OBA agrees that the
Government must work with all sectors involved in the
delivery and financing of healthcare in Bermuda to
reduce the cost of healthcare, tackle chroni c illness,
and ensure equal access to care. Every Bermudian
has the right to health insurance coverage, which is
evidence- based and managed by independent pr ofessionals and not by the Government. The legislation
surrounding healthcare is fragmented and we recom-mend that the laws are brought up to date and unified
to reduce the confusion surrounding our healthcare
regulations. Mr. Speaker, we look forward to receiving this
plan as it will address some of the healthcare weak-nesses, financial hardships, and healthcare access
challenges that presented themselves during the
COVID -19 pandemic. The supplemental benefit for
mental health needs to be regulated and protected to
ensure that insureds are being covered at the same
level as for medical benefits.
Mr. Speak er, all our people need more access
to information about their healthcare policies, to have
transparency regarding the specifics of their coverage. We also recommend that the PLP Government i mplement a Unique Patient Identifier (UPI) for everyone
in Bermuda. This will ensure that everyone has coverage, reduce duplication of services, and drive down
the cost of healthcare for all. It will assist in services
being streamlined and produce a true number of those who are uninsured or underinsured, to assist in d eveloping solutions to reduce this subset of the popul ation.
But, Mr. Speaker, we must do more to tackle
the root causes of poor health. So the One Bermuda Alliance recommends a national physical fitness pr ogramme to encourage well -being, sound health, exercise, and healthy diets from primary school throughout life. We would also recommend the introduction of a
programme that specifically targets noncommunicable diseases, underpinned with food cost reductions for healthy living.
On the matter of medical tourism in Bermuda,
the initiative is another pipedream. We take this view because we cannot effectively manage all of the local patients presented to our hospital on a timely basis. In
fact, patients are waiting five months for a routine pr ocedure to occur at our hospital. In addition, research has revealed that medical tourism has failed in small
tourism nations. The scale is not there to make such
institutions profitable, and the cost of doing business
is exorbitant. In addition, securing medical equipment and reasonably priced medical staff are both very
challenging. Added hospital beds and structural facil ities are also required to make this business work. And
finally, we are years behind the curve when developing and promoting this new industry.
Mr. Speak er, when it comes to the Bermuda
Hospitals Board and the KEMH, I think it is imperative that we focus on their finances. In 2018, Bermuda
Hospitals Board (BHB) changed its funding model. It
went from a fee- for-service model, to a flat -annual -
grant model. I n light of this, BHB receives an annual
grant of $322 million per year, and generally this fee is paid directly to BHB from the Standard Health Benefit
Fund and the Mutual Reinsurance Fund. Recently,
this annual grant has proven to be inadequate, given
that the Government has had to provide $15 million in
additional funding.
To make matters worse, I have been advised
that this annual funding has not been adequately ac-counted for, as BHB has not produced audited finan384 24 February 2023 Official Hansard Report

Bermuda House of Assembly cial statements since 2018, and today thi s entity operates an overdraft facility to support major operations.
Where is the accountability? This is totally unaccept able. How can we increase this annual funding when we have no satisfaction that the funds are adequately applied and accounted for? This truly boggles the
mind. This behaviour is truly a testament to the poor
management and leadership of the organisation.
I was also told that the annual grant is being
used to service the lease which is in place with Paget
Healthcare Partners. Going forward, what additional multimillion dollar top -ups will be required to keep
BHB functional and operating to fulfil its lease with
Paget Health Services? What incentive is there for the
hospital to be self -sufficient from an economic perspective? Will they con tinue to receive handouts going
forward?
Mr. Speaker, does this sound familiar? It is a
Public -Private Partnership, similar to Aecon and L. F.
Wade International Airport. It is the PLP’s version of the OBA’s airport deal. As such, we can close the door on the narratives that the Premier continuously
espouses, that the airport is a bad deal for Bermuda.

OTHER REVENUE MATTERS

Hon. N. H. Cole Simons: Mr, Speaker, on other re venue matters, stamp duty [fees] were raised. Why
would the Government increase the s tamp duties on
mortgages when the Government is also encouraging
homeowners to transfer their mortgages to banks
which offer Government guaranteed mortgages? A pplicants and mortgage holders benefit from reduced
interest rates on one hand, and they then tak e some
of the same benefits to apply to increased stamp duties for their mortgage transfer on the other hand.
On the matter of increasing fines ( there are
fines in our courts), what were the adequacy tests for
the fine increases, and how were these figures arrived
at? How do they compare with other jurisdictions?
On the matter of immigration fee increases,
the Government must tread very lightly, as this will be
added to the exorbitant cost of doing business in Bermuda. As previously stated, this is a major irritant
to our ABIC and ABIR members. A 52 per cent i ncrease is unconscionable, especially if there is no i mprovement in value for money, and no dramatic i mprovement in application processing times. In fact, the
same comments apply to the increases in the D epartment of Planning’s fees.

HOUSING REQUIRED TO
SUPPORT ECONOMIC GROWTH

Hon. N. H. Cole Simons: Mr. Speaker, the Oppos ition supports onward urban planning when it comes to
ensuring that we have adequate housing for our pr oposed growing population. Considering this position, we have no problem with allowing Approved Residen-tial Schemes in the City of Hamilton. We take the view
that it will bring vibrancy to the City, and also it will
provide a great economic boost to the restaurants and
retailers of the City of Hamilton. Hopefully , it will form
an environment which will foster all forms of after di nner entertainment, which the country sorely lacks.
As previously stated, we must ensure that we
do not cannibali se other approved residential
schemes locat ed in Somerset, St. George’ s and North
East Hamilton. As a former Minister of the Enviro nment, I remember approving mixed- use buildings during my tenure, and I am pleased that this continues.
On the matter of housing, the issue is not the
number of affordable houses on the Island, but access
to the number of houses in Bermuda because of
Airbnb’s.

EDUCATION

Hon. N. H. Cole Simons: Mr. Speaker, a lot is going
on in education is Bermuda and, according to people
that we have spoken to, there are varying views on
the delivery of and quality of public education in Bermuda. Be that as it may, we agree with the duty -free
exemption on all school uniforms for all school aged
children. This will come as a needed relief for those
parents in question.
While on education, we note that the B udget
Book shows a 53 per cent increase in professional
services, and an increase in rentals which went from
$6,000 to $356,000. In fact, the overall estimates for
the Ministry’s headquarters increased by 35 per cent
or $1.895 million. It landed at $7.236 million.

SPORTS

Hon. N. H. Cole Simons: Again, Mr. Speaker, there
was very little mention of sports in this budget report, and very little on the further development of our young people. It was noted that the Ministry of Youth and
Sports had an 11 per cent increase in allocation. This
I am sure will be appreciated by the community.
We all know that education and sports provide
discipline, self -respect, responsibility, and growth to
our young people. They are our future, and more
shoul d have been included in the budget to address
their development.

PATI REQUESTS

Hon. N. H. Cole Simons: Mr. Speaker, during the
upcoming fiscal year, the Government indicated that
they will be introducing a nominal fee for PATI r equests which are not from private individuals, for r equests which are about data that the government holds about them. This fee will help to defray the cost
to cover the extraordinary amount of research PATI requests cost government. In principle, we understand
the reason supporti ng this initiative, however, more


Bermuda House of Assembly information is needed to determine who this may or
may not apply to.
Will it apply to law firms and lawyers? Will it
apply to media outlets, like Bernews, or the Royal G azette and others? What will the fee schedule look l ike?
How will the fees operate? Will there be a minimum
fee or maximum fee? It is important that we know as
the Minister of Finance was thrifty with the details.
Mr. Speaker, we also take the view that fees
can be used as a deterrent to arrest the number P ATI
requests, which in our mind could be used as a true
assault on transparency, which is a pillar of democr acy. We will be watching this space very carefully.

SUGAR TAXES

Hon. N. H. Cole Simons: Again Mr. Speaker, we
were pleasantly surprised to see Gov ernment’s
movement on the controversial sugar taxes. It reaf-firmed the OBA’s view that this tax was nothing but a
money grab. It was a last -minute scramble to raise
revenue for the Government during difficult economic
times. It was not used to educate the community on
the negative effects of sugar in our diets and [on] diabetes. In fact, from my team’s research we learned
that none of the fees realised by government were
used to support the Bermuda Diabetes Association in any way. It was used as a sin tax only. It just did not
help Bermudians from a health perspective and these
taxes did not influence our dietary choices.
Again, this scale back is an admission of
Government’s failure when it comes to fiscal policies.

THE ARTS

Hon. N. H. Cole Simons: Given the significant contr ibution of the arts, culture, and creative sector to Ber-muda’s economy and to our social fabric, the Go vernment should take steps to protect this sector and look for ways to increase public and private inves tment in the arts in Bermuda. The 4 per cent reduction
in allocation to the Department of Culture is dishear tening.

THE PHILANTHROPIC SECTOR

Hon. N. H. Cole Simons: Mr. Speaker, in recognition
of its important role in building and supporting Berm uda’s social fabric, the One Bermuda Alliance believes
that the Government should take action to protect the
capacity and financial sustainability of the Third Sector, we should examine the scope for longer term funding arrangements for social services which support our families, seniors, and the development of
young people. There should be new initiatives to i ncentivise private investments in this sector.
In addition, we should also ensure that Imm igration’s Economic Investment Certificates are adjusted so that contributions to the charitab le sector can also be applied against individual investment certificate programme s. In addition, somehow, we should
also work to ensure that such donations are tax deductible.

LOOKING FORWARD

Hon. N. H. Cole Simons: How would the One Bermuda Alliance tur n this economy around?
Mr. Speaker, the One Bermuda Alliance
would implement the following:
• Develop a glide path to balance its budget
within three years and reduce the reoccurring
current account deficit and ultimately our current national debt level.
• Reduce the size of the government through
offering early retirement and through attrition,
as the human resource cost is approximately
40 per cent plus of the current account expenditures.
• Apply more due diligence and provide better
management to recover the millions of dollars
owed to the Government in accounts receiv ables with assistance previously offered by our
IB sector.
• Expand [Bermuda’s] workforce by relaxing
immigration policies so that it is easier for job
creators, executives, entrepreneurs, and individual of high net worth to migrate to Bermuda
and thereby create jobs.
• Reintroduce the travel authorisation fees (not
the application forms, just fees) which can be
imbedded in ticket costs and collected on arr ival in Bermuda.
• Examine the possibility of introducing a minimal VAT tax on healthcare services.
• During these challenging times and the high cost of living, we would suspend Bermuda’s
Foreign Currency Purchase Tax (FCPT).
The problem with this tax is that it increases
the cost of all the goods and services that Bermuda
imports from abroad, it is excessively regressive, and
it has a multiplier effect which means that the relativ ely small revenue it produces for Government might
lead the average person to think that its impact is small.
As an example, if we consider that the cost of
BELCO's fuel is increased by the amount of the For-eign Currency Purchase Tax, and that means that the
cost of electricity will be increased not just by the
amount of the Foreign Currency Purchase Tax but also by the multip le of BELCO's profit margin. The
same applies to our supermarkets and a reduction of
our food costs.
• We would reinstate our Economic Develo pment committee or council, made up of Global C Suite CEOs from IB, the Government, and other stakeholders. The manda te would be to
develop a true economic recovery plan which
386 24 February 2023 Official Hansard Report

Bermuda House of Assembly will benefit Bermuda’s economy and Berm uda’s corporate citizens, be they local or international.
• We would provide additional resources to the
Bermuda College and the Workforce Development team, to train and retool our students
and employees for newly created jobs in the
private and public sector.
• We would reassess sin taxes on cigarettes,
and spirits.
• We would provide resources to the agricultural and the fisheries industries to entice job
creation and help food security.
• In accordance with the reports and recommendations produced by the Fiscal Respons ibility Panel and the Tax Reform Commission, and with feedback from the public and the I nternational Business sector, the One Bermuda
Alliance would al so examine, define, and i mplement the most equitable, fair, efficient and transparent tax system, to serve the needs
and people of Bermuda today and into the f uture, and not a structure which was crafted to
serve the needs of Bermuda’s past and its
legacy.
• We would also consider the G20/OECD Glo bal Tax Initiative which addresses domestic tax base erosion, and profit shifting to multinational enterprises to end tax avoidance.
• We would also make commercial and reside ntial construction cost more affordable, im mediate attention would be given to updating Bermuda’s 2014 Residential [Building] Code Book which is a couple of cycles overdue. In
addition, the same would apply to Bermuda’s
Commercial Building Code to ensure that it adheres to the International Buildin g Code
standards and protocols. These reviews should not only be reviewed by the Architec-tural Board, but also by a newly formed Electrical Engineering Board who represent the
electrical engineering sector.

CONCLUSION

Hon. N. H. Cole Simons: The One Berm uda All iance’s assessment of this 2023/24 Budget is a reconfirmation that the Premier and his Government are
living in a Bermuda which is not in tune with the rest of Bermuda. He, and his associates are living the high
life, while most Bermudians are livin g from day to day,
and are trying to live a life of dignity, despite the unprecedented cost of living challenges, the continued
inflationary pressures, unemployment and underemployment, and a diminishing sense of hope.
Mr. Speaker, let’s face it. The Progr essive L abour Party has been the Government for over 20
years and the people of Bermuda are tired of having the One Bermuda Alliance blamed for the current Government’s inadequacies and woes.
I began this [Reply] by stating that the buffer,
the equity that Bermuda gained over its 400 years of
facing challenges and overcoming them through sheer
grit, determination, and innovation is gone. It has been
decimated. The time has come for the Government to
acknowledge that they have failed Bermudians, and
honestly accept that they have played a significant
role in fostering the challenges currently faced by our Island and our people.
It’s time for them to show real leadership and
create a better future for Bermuda and develop some
real solutions. They must stop ki cking the proverbial
can down the road for difficult national issues.
It is time to have a Government where mai ntaining and consolidating power is not the national
priority. We need a Government that embraces co mmunity involvement that includes getting inp ut from
local and international businesses; that includes li stening to the hard- working men and women of this
country; that means taking into consideration the lives of seniors and students. We have a hard road ahead
of us, but collectively, we can face those challenges
and come out on the other side of it with success.
We’ve done it before, we can do it again. But
to do that, this Government must steer the country in
the right direction where we can all be confident in our leadership, our economy, our saf ety, and our peace.
We must link arms and all march in the same direction. We cannot afford one more minute of a g overnment that continues to fail her people.
Thank you, Mr. Speaker.

Thank you, Mr. Opposition Leader.
Opposition Leader, before I dismiss you off of
this one, how’s that? Before you take your seat, earl ier in your presentation, I think on page 3, there was a
concern raised by a comment that you had made. You and I spoke about it during the lunch [break] and I am
going to ask you to withdraw your comment and you
can restate what you intended to say in a better way,
but I think that the comment needs to be withdrawn.

Hon. N. H. Cole Simons: Thank you, Mr. Speaker. I
withdraw my comment and will restate it.
Mr. Speaker, there was no ill -intent in my
comment. Mr. Speaker, just to be clear, the Premier
basically felt that Bermuda was on a good stead, and
many people thought that the current prospective was
through rose- coloured glasses. Mr. Speaker, all I was
saying is that he may be doing well, but others are
not.
Thank you, Mr. Speaker.

Thank you.
Members, the reason I asked him to withdraw
it and restate it is because we are all human. I had
missed it when he made the comment, and I acknow lBermuda House of Assembly edged that I missed it, and I spoke with him during the
break. He acknowledged the fact that the intent was
not . . . that it did not come across the way that he had
hoped, and he would clean it up. I did that because
we have a long debate ahead of us this evening, t oday and into t his evening, and I remind Members that
our tone should always be one that stays on a higher
ground rather than a lower ground. I did not want that
comment to be missed and left and set an example
that maybe we had lowered our tone.
So, I remind Members to please keep your
tone at a respectful level as we continue through the debates for today.
I understand that Minister Hayward is going to
be the first speaker up for Government. We are going
to take a five- minute break as Minister Hayward sets
himself up.

[Pause]

Good afternoon.
Hon. Jason Hayward: I also want to say good afternoon to Madam President, who is in the Chamber as
well.
Mr. Speaker, at the end of the last session
you encouraged us to be statesmen in our approach.
You discouraged us from descending into levels that
were beneath the standard that has been s et in this
House for decades. Mr. Speaker, the Opposition’s deliberate choice to flagrantly disregard your instruction is highly disrespectful and offensive. And while
you may have spoken to the Member during the lunch
period, in his conclusion he closed w ith equally disr espectful remarks that breach Standing Orders. And I
would ask you—

I would not say that . . . it is the Speaker’s opinion to make that judgment. You can declare
that you are uncomfortable with it, but it is the Speaker’s opin ion to make it. Continue on.

Hon. Jason Hayward: Mr. Speaker, the public had to
painfully listen to the Opposition Leader deliver a n
incoherent speech for the last two hours. He hig hlighted all of the problems that they believe this coun-try faces. And then he asked the question, Mr. Speaker, how would the One Bermuda Alliance turn this
economy around. And in just about a dozen bullet
points they provided a solution. If the One Bermuda Alliance Opposition b elieves that those 12 bullet points are what is r equired
to turn this economy around, they are certainly not fit
to lead!

[Desk thumping]

Hon. Jason Hayward: Mr. Speaker, I would first like
to commend the Government for the consultative approach that they took in terms of delivering this Bud get. I certainly would like to commend the Minister of
Finance for those efforts. Mr. Speaker, you see a si gnificant shift from a pre- budget report to a final budget
report. That indicates that consultation means som ething to this Government, that we are able to list en
and that we are able to be flexible and take into con-sideration the views of all sectors within this economy.
The Budget that was delivered by the Pr ogressive Labour Party Government supports conti nued growth. It increases the purchasing power of
workers. It lowers employee overhead for businesses.
It allocates funding to necessary infrastructure devel-opment. It has been called an election budget. But last
year’s budget was called an election budget as well.
Mr. Speaker, there was no electioneering. The Government is funding its priorities in a fiscally prudent
manner. This Government has demonstrated effective
management of the public purse, and we have mai ntained a glide path to a balanced budget.
Mr. Speaker, there can be no doubt that Bermuda’s economy continues to expand. And the data actually supports this . If we look at quarterly GDP, Mr.
Speaker, the preliminary estimates for the first three
quarters of 2022 indicate that in nominal terms the
economy has expanded by 4.2 per cent and in real
terms 1.4 per cent over the first three quarters of
2022. Mr. Speaker, the Government always puts out
inflation adjusted GDP, which is real GDP. I was concerned when the OBA put out an article to say that our
GDP numbers were inflated, because we did not take into consideration inflation. It means that they clearly
do not understand the term “real” GDP.
Mr. Speaker, the Ministry of Finance is est imating that Bermuda’s GDP may have grown between 3.4 per cent and 3.9 per cent in 2022, driven by
the growth in th e International Business sector, and
the continued recovery of our tourism industry. And
despite heavy foreign inflationary pressure, the major ity of Bermuda’s economic indicators show positive
growth.
Mr. Speaker, last year 14 out of 19 industrial
secto rs showed growth, while over the last five years,
including the periods of economic reduction because
of the pandemic, 9 out of the 19 sectors have had a
five-year trend of positive growth. Mr. Speaker, in
2021 (which is the latest annual GDP numbers) agr iculture, forestry and fishing grew 24.8 per cent. Electricity, water supply and waste management grew
10.5 per cent. Transportation and storage grew
388 24 February 2023 Official Hansard Report

Bermuda House of Assembly 5.1 per cent. Accommodation and food service grew
86.1 per cent. Information and communication grew
1.2 per cent. Real estate activities grew 3.2 per cent.
Professional, scientific and technical activities grew
14.5 per cent. Administrative and support services
grew 17.2 per cent. Education grew 0.1 per cent. H uman health and social work grew by 6.4 per cent. A rts,
entertainment and recreation grew by 17.8 per cent.
Other service activities grew by 26.6 per cent. Activ ities of households as employers grew by 15.8 per
cent. And international business grew by 8.4 per cent.
When we say our economy has been expanding it is because the data supports that, Mr. Speaker.
Mr. Speaker, in the OBA’s article which they
put out this week , they said that only one sector of the
economy has expanded. I just named 14 which have
shown economic expansion.
Mr. Speaker, international business figures. IB
represents 28 per cent of Bermuda’s economy. And in
2021 it experienced the largest growth in 15 years.
The largest growth in 15 years —a testament to Bermuda’s current business environment, a business environment that has been nurtured through ongoing
collaboration and consultation with industry.
Mr. Speaker, I meet with many international
companies in my role as Minister responsible for Economy and Labour. And many businesses have shared with me their growth and expansion strat egies,
so much so that they are having trouble finding suit able office space for the level of their planned expa nsion. During 2022, [there were] 812 new international
companies or partnerships registered in Bermuda. IB now provides 4,642 jobs in our econom y, reflecting a
growth of 5.2 per cent year over year. Last year that
was an increase of 230 jobs. IB’s employment income
for the first three quarters of 2022 grew by $94.3 mi llion or 8.9 per cent.
Mr. Speaker, you do not get that level of
growth, you do not get that level of expansion, you do
not get that confidence in the Bermuda economy
without the businesses feeling that Bermuda is a s ecure, safe, first class, well -regulated business jurisdi ction. The Progressive Labour Party has maintained
Bermuda’s reputation. I cannot agree with the notion
that our reputation has been tarnished. The facts speak for themselves.
Mr. Speaker, real estate activity is the second
largest contributor to GDP in Bermuda. The sector
accounted for $1 billion in output, or 15. 9 per cent of
total GDP in 2021. The sector continues to progress. Over the last five years it has grown by 2.5 per cent
on average per annum. It has not declined or abated
during that period of time. It is wrong for anybody to
try to connect the increase in housing prices or the
shortage in housing [as the reason for] or leading to
the growth in that particular sector.
Mr. Speaker, this has not just been a blip as it
pertains to the growth in our real estate sector. In 2017, the sector grew by 5 .0 per ce nt. In 2018 it grew by 2 .0 per cent. In 2019 it grew by 1.0 per cent. In
2020 it grew by 1.5 per cent. And in 2021 it grew by
3.2 per cent —continued and steady growth representing confidence in the Bermudian economy.
In 2021, Mr. Speaker, the $1 million i n real
value added, that is inflation adjusted, was the first
time another sector outside of international business
exceeded $1 million in value added. Multiple legs of
the economy are growing, Mr. Speaker. Not just one.
Mr. Speaker, our housing inventory has i ncreased by roughly 800 units in the last decade. The
most conservative estimate would say we have 4,000
to 5,000 fewer individuals. If we had fewer individuals
and more housing, the housing inventory shortage is
somewhat of an anomaly because the numbers sim ply do not add up. And they are not contributed to vac ation rentals.
Mr. Speaker, we have a greater issue within
our economy. Landlords are choosing to remove their
inventory from the housing stock. Landlords are
choosing not (and I am hearing this from individuals
within the sector) are choosing to not rent their houses
to Bermudians. And this is also contributing to the
problem. But, Mr. Speaker, this Government has a
commitment to housing. We are committed to provi ding $15 million over the next three years to build more
affordable housing units.
We have committed to providing $15 million
over the next three years to build more affordable
housing units. The Government has delivered 48 affordable housing units over the last five years. We on
this side of the aisle will collectively agree that this is
simply not enough.
We will also transition Morgan’s Point to a
residential community and add an additional 101 units. We have published guidelines for approved residential schemes to expand the housi ng stock in EEZs
and we will also expand those eligibility requirements
so that we can encourage more housing inventory in the city of Hamilton. This Government has a desire
that the city of Hamilton becomes a hub where people
want to live, work and play.
Mr. Speaker, I move to the next sector, which
is tourism. Tourism is not a leading sector as it per-tains to its contribution to GDP, but it is significant in terms of employment and indirect and induced ec onomic activity. The sector continues to expand. Air
visitors increased by 80 per cent. Cruise visitors i ncreased by over 2,000 per cent. Total air visitor
spend ing increased. Cruise visitor spending i ncreased. Yacht calls increased by 84 per cent. Hotel
gross receipts for the first three quarters of 2022 were
up 91 per cent year over year.
Mr. Speaker, I stated that our economy continues to expand and the data supports it. Further, the tourism sector has experienced greater visitor spend
compared to 2021 for both air and cruise visitors. The uptick in the overall tourism activity has resulted in a
rebound in jobs in the accommodations and food secBermuda House of Assembly tors. Those jobs increased by 6.3 per cent when compared to 2021.
Mr. Speaker, tourism presents an excellent
growth opportunity for the Bermudian economy, and
when the number of hotel developments which are currently offline get online, our resilient economy will
not be just growing, it will be booming. Mr. Speaker,
the data stated is not made- up data. It is actual data
and it supports that our economy is indeed growing.
Mr. Speaker, employment income has i ncreased by 6.6 per cent, or $180.6 million for the first
three quarters of 2022, compared with the same per iod of 2021. This means that we have more workers taking home more money. And this is reflected in our
payroll tax receipts as well. Notwithstanding that, Mr. Speaker, I recognise that the world has been grappling with global inflation. Our inflation rate in Berm uda is relatively lower than the rest of the world; ho wever, it remains alarming high for our economy. And
that is putting pressure on the purchasing power of
households within our community, Mr. Speaker. But this Government has implemented policies that have
directly supported households and the most vulner able in our community.
We understand the need for intervention and
we work diligently toward implementing the policies
that are required to ease some of the pressure facing our households. We extended the supplemental unemployment benefit, Mr. Speaker. We assured that
funding was made available for adequate social pr otections. We provided over $47 million in grant funding
for social protections, Mr. Speaker.
Mr. Speaker, we provided $150 per child to
support public school parents. In July 2022, Mr. Speaker, the Government announced a relief pack et
for working families that introduced the Payroll Tax
Rebate so that 75 per cent of the workforce can benefit. Those making less than $60,000 annually receive
$250, while those [making] between $60[,000] and
$96,000 receive $100.
Mr. Speaker, we put a M ortgage Guarantee
programme in place so that home ownership can be-come more achievable for our young people, a scheme that is now being criticised by the Opposition.
How are we being criticised for providing access to
the housing ladder for young Bermudians in this cou ntry? It is a shame, Mr. Speaker.

[Crosstalk]

Hon. Jason Hayward: Mr. Speaker, I will continue
with the support that we have provided for hous eholds. In February the Government promised in the 2022/23 Budget —
[Crosstalk]

Hon. Jason Hayw ard: Mr. Speaker, may I please
have some protection? The Speaker: Members, the Member would like to be
able to hear himself as he speaks.
[Inaudible interjections ]

All Members . . . all Members. Don’t
everybody else start in. Thank you.
Continue on, Minister.

Hon. Jason Hayward: I will do so, Mr. Speaker.
In the February 2022/23 Budget the Gover nment promised to provide relief now and more relief to
come. We reduced taxes for those making less than
$96,000. We reduced private vehicle lice nsing fees by
10 per cent. We did not increase any government
fees. In March, the Government provided further relief,
Mr. Speaker, by freezing fuel prices, saving Bermudi-an families $23.00, and taxis and minibus operators
$35.00 at the pump each month.

Hon. E. David Burt: No, each time they gas up.
Hon. Jason Hayward: Each time?

Hon. E. David Burt: Each time.

Hon. Jason Hayward: I stand corrected.
We extended relief for fuel imports. We extended payroll tax relief to hotels, restaurants, and the
retail sector. We implemented legislation that dropped
duty rates on 21 essential items to lower the cost of
staple food items.
Mr. Speaker, on top of the relief that has already been provided, this Budget provides for even more relief. Any employee making les s than $132,000
will pay less payroll tax than the year before.
Mr. Speaker, this is the fourth time that the
Progressive Labour Party Government has reduced payroll tax since 2017—

[Desk thumping]

Hon. Jason Hayward: —increasing the purchasing
power of workers.
And just so one can understand the cumul ative impact of those tax cuts, since 2017 a worker
making $36,000 has seen their taxes reduced by
$5,220. Since 2017, Mr. Speaker, a worker making
$48,000 has seen their taxes reduced by $6,960. Mr.
Speaker, since 2017 a worker making $60,000 has
seen their taxes reduced by $5,310. Mr. Speaker,
since 2017 a worker making $72,000 has seen their
taxes reduced by $3,660. Mr. Speaker, I am not done
yet. Since 2017 a worker making $84,000 has seen
their taxes reduced by $2,010.
Mr. Speaker, this demonstrates a level of
commitment to the people of Bermuda. They may call
it electioneering, but we call it ensuring that we put
people first!
390 24 February 2023 Official Hansard Report

Bermuda House of Assembly [Desk thumping]

Hon. Jason Hayward: And on top of that, Mr. Speaker, w e will be eliminating duty for school uniforms.
The Opposition has said that they support it.
Interesting about that, Mr. Speaker —not the Oppos ition’s support —but as it pertains to the party that I
represent, the Progressive Labour Party. I was pr ovided documents since 1963. And we were supposed
to reduce duty on all school uniforms since then, as it
was in our election platform then. It may have taken us some time to fully achieve that goal, but Mr.
Speaker, that goal has been achieved. And some
would say that we have lost our way. I would say, you
get that old document, you see what was asked for
then, and what is being accomplished now, and we
are on a good line and length, Mr. Speaker.

[Desk thumping]
Hon. Jason Hayward: And that is why I am proud t o
be a member of the Progressive Labour Party.
[Desk thumping]
Hon. Jason Hayward: We have not changed or
waivered in our ways. We have been consistent in
supporting the people of this country.
Mr. Speaker, I am moving to employment.
Preliminary data from the 2022 Employment Survey
indicates that the total number of jobs in Bermuda i ncreased by 402 posts, from 31,316 in 2021 to 31,718
in 2022. Mr. Speaker, that is significant and that is progress. We now have 402 more people working in
this country than a year ago. It is something we all
should be proud about, but job growth only takes
place in an expanding economy. So when I say, Mr.
Speaker, our economy has expanded and the data
supports it, the job numbers reflect that.
Mr. Speaker, International B usiness [IB] jobs
grew by 5.2 per cent and they accounted for 230 jobs.
Accommodations and food services expanded by 193
jobs and that grew by 63.0 per cent when compared
to 2021. But it is not just IB and tourism, Mr. Speaker.
For the year 2022, 13 out of 19 industrial sectors experienced an increase in the number of jobs filled. Let
me repeat that: Job growth was not just registered in
international business and tourism. Thirteen out of 19
industrial sectors experienced job growth. Collectively,
there wer e 641 new jobs; however, that was offset
because there were contractions in some sectors. Mr. Speaker, how do we have an honest co nversation with the community regarding what is actua lly taking place in Bermuda when they have to listen to
a Budget Reply that is so clouded in mistruths? When
they have to read opinion pieces which disregard the
facts? Why is this purposely being done, Mr. Speaker? Why is stating the facts in terms of what is actually
happening in our economy not something that we all, collectively, should be proud of? Is it done to undermine the Government and the work that the Gover nment is actually doing, Mr. Speaker?
Mr. Speaker, Bermudian employment i ncreased from 22,003 jobs in 2021 to 22,104 jobs in
2022 —[an increase of] 101 jobs. There are 101 more
Bermudians working today than a year ago, Mr.
Speaker. [There are] 101 more individuals who can
provide food for their families, contribute to the ec onomic activity in this country by working dignified jobs. [There are] 101 persons who wil l not be reliant on the
social protections that we provide for individuals in
need. We have a ways to go, Mr. Speaker, but we are
certainly trending in the right direction.
Mr. Speaker, as I look forward in terms of the
outlook for 2023, the Ministry of Finance is estimating
that Bermuda’s economy will expand by between
2.5 [per cent] and 3.5 per cent in 2023. This will hinge
on continual growth in IB, continual growth in the retail
sector [and] continual recovery of our tourism sector.
As the Minister of Economy and Labour, I have been
tasked with the responsibility of facilitating and supporting economic growth, development, and the expansion of jobs.
Mr. Speaker, we have taken a measured approach to determine the needed increase in our wor king populat ion. I heard the Opposition throw out [a
number], 10,000. I am not sure what methodology that
was based upon, but our numbers were certainly
based off a methodology that looked at the old age
dependency ratio and pegged our average with the
OECD average, s o that we have sustainable ageing in
Bermuda. And we have determined that we need over
8,000 workers. I was going to say we need 8,400
workers, Mr. Speaker, but 400 workers . . . that number was achieved in the last period. So we are making
progress in the right direction. But in order to have an
increase in our working population, we need an i ncrease in jobs. In order to have an increase in jobs, we need growth in business activity. That is clearly
understood by this Government, Mr. Speaker. Mr.
Speaker, t he Ministry of Economy and Labour will
provide an economic development strategy that pr ovides a framework that will guide Bermuda to sustai nable economic growth and development.
Industry and community consultation have
begun. So, I saw one of the recommendations from the Opposition was that [they] would put together a
group who will determine how we move forward. And
MP Richardson has a term, in terms of —

[Inaudible interjection]

Hon. Jason Hayward: —and I will allow him to elab orate on that when he sp eaks. But what he basically
says, [is that] he equates the Opposition’s actions to
flattery. Because what they say we should do, we have already been doing.



Bermuda House of Assembly An Hon. Member: Yes.

[Desk thumping]
Hon. Jason Hayward: We said we would focus on
five key ar eas: Local and international business rete ntion and expansion; business attraction; investment promotion; entrepreneurship and small business development; execution of the Economic Recovery Plan;
and focus on people, workforce expansion and development.
Mr. Speaker, we have already left out of the
blocks. We stated that we want to use immigration as
a lever to unlock greater levels of economic activity in this country. We have already left out of the blocks with that, but it has to be done in a measured w ay and
so we are engaged in the necessary consultation. You know, Mr. Speaker, what I find extremely interesting
is, I said I am going to do something different. I am
going to send the Opposition a letter and ask directly
for their feedback as to what are some of the suggestions they have. Mr. Speaker, I am still waiting for the
response.

[Inaudible interjections ]

Hon. Zane J. S. De Silva: That has got to be a point
of order.
[Crosstalk]

Yes.
Hon. Jason Hayward: —the situation is so critical as
it pertains to us working collectively together. I reached out so that they are not left out of the equation. They feel as though they are important stak eholders in this economy, so I recognised them because of the way they feel.
But, Mr. Speaker, you can come and you can
provide shallow suggestions in a Budget Reply, but
when we are trying to actively do the work to progress
initiatives in this country, they do not want to partic ipate. I do not want to read their recommendation via
the Royal Gazette. That is not how the consultative
process works. But we will use immigration for i ncreased economic activity and a sustainable wor kforce. We will seek, when necessary and practical and
where possible, to remove barriers that prohibit our
expat population from fully participating in the Berm uda economy.
Mr. Speaker, there are clear economic deve lopment impacts from immigration, and we need to create an environment that allows expatriates to flourish in the workforce, invest in the economy and create
jobs through entrepreneurship and business inves tment. It is the sensible thing for us to do and we are committed to doing that as a Government. We understand how their participation can boost jobs, boost the
workforce, expand our tax base, better connect Bermuda with the global economy and support infrastructure development. We will continue to support, targeted busi ness development opportunities in key industries aligned with Bermuda’s value proposition.
We are leaders in risk, Mr. Speaker, and we
seek to maintain our reputation as the world risk capital. A reputation we have had for many years. And if I
use MP Scott Pearman’s mathematics, the Progressive Labour Party has been in power 24 of the last 25
years, which has seen that reputation remain intact.

Hon. E. David Burt: Yes, absolutely. Talk about it.

Hon. Jason Hayward: We will also pursue the e xpansion of high- net-worth services, [develop] trust,
private client and family offices, expand in areas such
as asset management [and] expand in areas such as financial technology. Persons like to pick on the Go vernment’s FinTech initiatives. But as I travel, I am extremely proud of the work that the Government has
done in this particular space, Mr. Speaker.
[Desk thumping]
Hon. Jason Hayward: Our Digital Asset Business Act
which we passed in this Parliament under your ste wardship, Mr. Speaker, is one of the most highly r egarded pieces of regulation worldwide. Other jurisdi ctions are now copying Bermuda’s regulation. No, we
do not have a high volume of companies here because not everybody respects a well -regulated bus iness environment. Our environment allows us to protect consumers. We also are not one to jeopardise Bermuda’s reputation.
Mr. Speaker, the infrastructure that we have in
place as it pertains to the tiered system , which allows
companies to test and get a test licence, then a modified licence, then a f ull licence. It is what is actually
attracting the interest of many companies worldwide.
But we do take things for granted, Mr. Speaker, because when I travel, I assume that everybody knows
Bermuda’s value proposition and that is not the case.
And so we ha ve to do a better job at marketing our
value proposition and what Bermuda has to offer. And
we will continue to be out on the road doing exactly that.
As it pertains to my Ministry’s priorities over
the next fiscal period, Mr. Speaker, we will create a Department of Labour to enhance the services avail able to employees and employers, promoting employee
protections and fair workplace practices. We will co ntinue to promote labour standards and the fundamen392 24 February 2023 Official Hansard Report

Bermuda House of Assembly tal rights at work. We will continue to ensure we hav e
a solid labour -relations framework. We will ensure that
we have monitoring compliance and enforcement of
our labour laws and we will continue to advance l abour policy.
Mr. Speaker, I am proud of the work that we
have been able to achieve in the Labour Advisory
Council with the independent contractor guidelines
which helps employees from engaging in precarious
employment relationships. I am proud of the working
in Bermuda guide that we were able to publish recent-ly, Mr. Speaker, which breaks down the Employment
Act into an easily read, digestible format so persons
are aware of their rights.
Mr. Speaker, in this parliamentary term I will
bring a Minimum Wage Order which will establish
Bermuda’s first national minimum wage at $16.40.

[Desk thumping]
Hon. Jason Hayward: [That is] something that many
workers are looking forward to.
Mr. Speaker, we are both progressive and
labour focused, that is what sets us apart from the others. Our commitment to the workers of this country,
our commitment to the work ing-class individuals of
Bermuda, our commitment to ensure there are high
labour standards, our commitment to improving wor ker’s rights, year over year we demonstrate that we have a human- centred approach.
Mr. Speaker, as it pertains to funding prior ities, the Department of Statistics will launch the Labour Force Survey we are funding . We also have
funding for the much- needed Household Income and
Expenditure Survey that is to ensure that the Go vernment is utilising timely and relevant data to inform
our policy decisions so we can have accurate unemployment rates and we can best adjust policy. And the
Household Income and Expenditure Survey is used to
rebase our major economic indicators such as our
Consumer Price Index, our Retail Sales Index, and
our GDP publication, Mr. Speaker.
Mr. Speaker, as it pertains to funding prior ities, we will fund financial assistance reform assuring
that we have the adequate social protections in place
so persons are not slipping into poverty positions in our country. This i s something that I am extremely
proud about, the way in which we have extended support to families in need. So we will change the rules so
that families can hold gifts up to $2,500 so that the
eligibility requirements increase and they can hold
investments up to $5,000 so that child support and
income payments are not factored in, a dollar in and a
dollar out, so that work actually makes sense for r ecipients of financial assistance. So it is a dollar in and
50 cents out.
Mr. Speaker, we have secured funding to expand child day care allowance. We will expand the
eligibility requirements as well as the amount of mon-ey provided for families. At this current time families
receive a maximum of $800; however, the average
cost of child care that has been assessed b y the D epartment of Financial Assistance is that it is roughly around (on average) $1,100 a month. So we will pr ovide additional support. This is important because we
want children to have the best start in life. Child day
care is a critical part of their social development. It is a
critical part of their knowledge enhancement journey.
It is a bigger picture than just giving people handouts.
It is about empowering families. See, the Opposition in their Reply said it is easy to just give out money.
We are gi ving out money in a deliberate way for a
specific reason. Putting people first, empowering fam ilies.
We will also introduce a short -term benefit.
Mr. Speaker, I am one who always has pushed forward employment insurance. It will take some time to
get that f ramework up in place, but it was a goal process. Can we use the current system that we have in place to provide short -term relief to individuals who
might find themselves in the gap of employment for
the short term? And the answer to that was yes. And
so w e will progress with a short -term benefit to support families in this country.
We will also be revising the table of allowable
expenses to ensure that the payouts and the grants
that are being provided to cover the necessity ex-penses of households are met . And so the Depar tment of Financial Assistance funding allocation has
been increased. And I am sure if that money is fully
consumed I would have no problem with entering this House and requesting a supplementary so that I can
support the families of this country because that is our
priority.
We have additional funding in the Department
of Workforce Development to support our jobs pr ogramme, our youth employment strategy, [and] our national reemployment strategy. As indicated, I will be making changes to t he National Training Board Act so
that the new National Certification and Apprenticeship
Board is focused on skills trades certification and a pprenticeship. I was pleased to attend a ceremony this
week, Mr. Speaker, where I was able to award six
Bermuda we lders with their certificates of national certification.

[Desk thumping]

Hon. Jason Hayward: They now possess a card that
says I am nationally certified as a welder.
Hon. E. David Burt: Progress, progress.
Hon. Jason Hayward: And we will continue to ensure
that we expand the certification programme. And I
thank the staff at the Department of Workforce Devel-opment. I also thank the staff at the Department of
Statistics. I also thank the staff at the Department of


Bermuda House of Assembly Immigration. I thank the staff of the E DD (Economic
Development Department). I thank the staff at the D epartment of Statistics. I thank the Labour Relations
Section. I thank the staff at the Ministry because this
Ministry has been working extremely hard to support the people of Bermuda.
Mr. S peaker, the Opposition said that they
would put out a three- year glide path to a balanced
budget. Mr. Speaker, there is a glide path already in
place that is being adhered to. This Government has
demonstrated that we have been fiscally prudent. This Government has demonstrated that we have had effective management of the public purse. We are on
track to ac hieving a balanced budget. One– one– one–
one, Mr. Speaker. That is the $1,111 million that we
were able to collect in revenue which allowed us to
reduce tax es for working- class people of this country,

Yes!

[Desk thumping]
Hon. Jason Hayward: Mr. Speaker, you do not get
one, one, one, one [with] a contracting economy. How
do you raise one, one, one, one if our economy is
contracting? We achieved it while we cut taxes.
Mr. Speaker, they may not want to accept it,
but the evidence and everything else would indicate that this Government has been fiscally prudent and
we have had an effective management of the public
purse and we are on a glide path to achieving a ba lanced budget. This is not electioneering! It is just a
Government that is laser -focused on executing on
behalf of the people of Bermuda.
Thank you, Mr. Speaker.

[Desk thumping]

Thank you, Mr. Speaker.
I rise today to not sit and fight against numbers, but to bring the voice of the people to the House
of Assembly. I have received a number of calls, people stopping me on the street and so I feel compelled to deliver the message that people in Bermuda, hardworking people who have supported the PLP for lif etimes, for generations, who are feeling that they have been failed by the PLP Government. They are concerned and they would like to have a voice in the
House of Assembly. So I rise today, Mr. Speaker, to
be that voice.
Mr. Speaker, a healthy functioning gover nment is supposed to reflect the will of the people. The
PLP Government has promised, has given assurance
of hope and people have bought into that. Mr. S peaker, I listened to the speakers, who have taken their
seats previous to me, sing a beautiful song. And it
sounds absolutely wonderful. But the reality and what people are living on a day -to-day basis, Mr. Speaker,
is very different from what I am hearing in this House
of Assembly. And in particular, Mr. Speaker, my prior ity today is the seniors. There has been very little spoken about it, yet the Minister who just took his seat
has actually created a National Plan around it, like he has actually collected the statistics, he has made the
statement to say this is a concerning situation for our
population in Bermuda. We are ageing and there a lot
more of us to come. And, Mr. Speaker, there needs to
be something done to prepare our community to su pport this growing sector within our community.
Mr. Speaker, seniors are living in damp, dark,
cold, small, dilapidated dwellings. They are silent and they need a voice. They are not well. They are coughing continuously because of the dampness, because of the asthma they have contracted from being in the
conditions of which they live with very little ventilation
(in many situations). They do not have the ability to
get the healthcare they need. It gets worse and it gets
worse. And you know what, genetically, Mr. Speak er,
this is not a reason for them to pass on any sooner,
but they suffer with the longevity with the beautiful
Bermuda genetic makeup that we have, but they suffer for years.
And we have got to do something about it. We
have got to pay attention. And although the PLP are
very quick to say that the OBA does not have any an-swers, I am not here to give those answers. But, Mr.
Speaker, what I can say is that it is time to act. We
can talk and talk and talk but at some point we have
really got to start to put s ome action behind our words.
Mr. Speaker, sticking with the senior popul ation for a moment, we have an opportunity here with all of the conversations and promises that are put out
there around affordable housing and the rest, to build
a sector that support s our seniors. And I know that
there is a very comprehensive and strong ageing- athome strategy, there are seniors health strategies, all
kinds of strategies out there, but it is time to hit the switch and get some of that aggressively started in
our community. And I do not believe that it requires a
lot of money. This is not about the money. This is
about the action. That we need to take a hard look at
where our seniors are ageing and how we can make
that a more comfortable, affordable quality of life for our elderly as they go through their retirement years.
394 24 February 2023 Official Hansard Report

Bermuda House of Assembly We need to be able to come up with and pr ovide support and structure and allow some of our seniors and those who are interested in getting into the
caring sector so that they can become caregivers and
provide the support that is needed. We have workingclass, single members of the family, mostly women,
who are caring for their elderly parents, having to hold
down a full -time job or two, have children who are in
school, and it is too much for them. It i s a lot and it is
breaking down our female (in particular) middle- class
working person who is unable to manage all of that
stress on their own.
Mr. Speaker, we have got to provide that support for them. Because the other side of what is hap-pening ––and the PLP may sit over there and breathe
a sigh of relief, I am not sure––but we are finding that
even our seniors are having to leave the Island. They
are leaving the Island to go to places like the United
Kingdom where they can get the healthcare under a
national health system. They are going there because
they can at least live in an accommodation that pr ovides for a better quality of living than what they are
receiving here in Bermuda.
So, with these alarming rates of elderly who
are not well, they are livi ng in Bermuda in substandard
quality of living, and also those who are leaving the
Island, we must do something to recognise and sup-port that they are here. They have worked for gener ations and they deserve to have the attention that we should provide.
Mr. Speaker, the middle class is decreasing
quickly. And they are the backbone. They are the people who are working every day, that are paying the taxes, that are carrying the financial burden of this
country, and they are finding themselves in greater
and gr eater financial stress. The middle class has to
deal with paying customs duties, the land tax, the
bank loans, the interest rates —all of the costs that are
out there. And let’s not even get into the price of food and home goods. And they cannot take it muc h longer. And they do not understand why the Government
is not seeing that with whatever dollars that they may
give back in payroll incentives or savings from not having to pay payroll tax, all of the costs of everything
to live in Bermuda has risen so far above that, that it is
not making a realistic impression on the daily lives of
the middle class.
And of course, Mr. Speaker, when we look at
things like the added costs of goods based on the sugar tax, people have forgotten about it. They have
gotten used to paying $8.00 for a bag of candy or
whatever it is, and they know that they cannot keep it
up. That it is not sustainable. But yet there is some
expectation within family life and raising children and
having a social life that they have to put up with and
find the money to be able to afford these goods. And they cannot take it too much longer, Mr. Speaker.
The PLP Government has given the sort of
two-line relief of school uniform, custom duty relief. And that is a lovely thing. I have to wonder sometimes
who is selling the uniforms because clearly some of
that customs relief will be added to the price of the
goods. But we are not going to go there right now.
But, Mr. Speaker, what I would like to raise is
the observation of this . . . and I do not know how the
Government or the Ministry or the Minster of Educ ation might be able to look at this, but I take the bus on
a regular basis and oftentimes I am taking the bus in
the morning with the school children and one of my
observations is that the children w ho are going to
school have an entire wardrobe of branded clothing
that they are wearing on a daily basis to school. They
have got branded sweaters. They have got track suits.
They have got the blazers. They have got the trad itional shorts or skirts and the tops now, instead of the sort of standard white, they are now branded golf shirts.
And as I observe this I am realising, Mr.
Speaker, that it is not like there is this standard tie,
shirt and grey shorts or skirt that I grew up with. That
your family co uld use, it did not matter, the grey skirt
kind of translated across schools. It translated year to
year. Now there is so much individualised branding on
school uniforms that parents, I would imagine, are
quite pressured to, one, obtain and spend and inves t
in all of that. But then I am sitting there and I am thinking, Oh my goodness. So, look, not only is my child
going to change in their size of clothing every year,
which means that I am going to probably have to r eplace clothing simply because the child has outgrown
them. But then we have got to look at the fact that
many families have maybe two or three children and
they may be at different levels so one might be in pr imary school, two might be in high school, and forbid if
one is going to one high schoo l and the other is going
to another high school —that is thousands and thousands of dollars that families are having to invest in
school uniforms every year.
So, I am saying all of that to say that as small
an item as it was buried in the Budget Statement, it is
a huge expense for our families. And to say, Oh, we are going to give a customs duty . . . And yes, all right,
that sounds wonderful, some relief. But then we are not considering what actually is being paid in order to get those goods. And it is just astronomical, Mr.
Speaker. And we have got to think about a way in
which we might not only be able to give maybe a
slight price decrease, but how did we get to the point
where a family has to buy 12 and 16 items, different
branded items, to fill a uniform kit every year?

[Inaudible interjections ]

But I have . . . I can stand
here as a single mother who has had to dress their
children, and this is getting astronomically expensive for the families who are trying to raise their children
and keep up w ith the standards that the school is d emanding when it comes to uniforms. And they may
think, on the other side of the floor, that this is some
simple task, but we are talking about a major, major
investment. Which . . . don’t get me started on the
$150.00 relief that was given last year. Thank you
very much, $150.00, we will take anything we can get.
But it is a drop in the bucket compared to what fam ilies have to pay in order to dress their children to go to
school every year, Mr. Speaker.
And of course, being able to pay for all of this,
and looking at the fact that we have wages that on
one side seem pretty good. You know, if you are making under $48,000, you know, payroll tax, there is
some relief there. And all is well. But for the member of the fami ly who is making a little bit more than the
$48,000, maybe is even in a supervisory position, has to pay ever -so-slightly more in payroll taxes. And so in
the final analysis, they are not bringing home a whole
lot more than the person who is getting the pa yroll tax
relief at $48,000.
Mr. Speaker, when I read that and I interna lised it, it gave me a feeling that at some point people
might start to say, You know what? It is going to be easier for me to have two or three jobs, at $48,000,
than it is going to be for me to use my college certif icate or my certification to have a job that is going to pay me $125,000.

Yes, I will heed to the accountant in that.
But it does not change the perception and it
does not change the fact that people are finding that
no matter how much they have it is not enough an y-more. And it is not enough because the cost of ever ything is so much higher than any relief that we are getting that it just feels as though people and their
families are pedalling backwards. And they feel it. And they are let down because when they hear all the messages they feel like things are going to be better
until they have to open up their pocketbook and they
see that they cannot afford it an ymore today than they
could yesterday.
One of the pieces that I am going to interject
at this point, Mr. Speaker, is that the rosy picture that
gets painted that all is well and that all is going to be
just absolutely wonderful because we have seen such
growth . . . and it just hit me today —and I want to say
this publicly —that the statistics of the growth that we
are hearing are based on COVID -19 when the economy, globally, closed down—shut. So when we are
basing our figures on 2021 growth, we are basing it on
[when] we came to zero. And so if I am hearing stati stics that are based on growth from 2019, 2017, then, yes, maybe I can see that there is some potential
there. But I am just saying that it does not feel con-vincing that we are talking about growth based on
2021.

Hon. Jason Hayward: Point of order, Mr. Speaker.

Point of order.

POINT OF ORDER
[Misleading]

Hon. Jason Hayward: Mr. Speaker, the International
Business sector, which is our largest economy, did not
abate during the pandemi c. “Abate” means contract or
get reduced. And as a result, the growth is actually
real growth and it does not mean that it is a reset
growth from a lower period of time.

And I do not know how we
are going to translate that growth from the Interna-tional Business to the grocery store and the school
uniform and what is happening down here, over here on the street, because I thought that the PLP was
about what is happening with us right down here on
the street. And if we are talking about growth in International Business, I have to just ask the question, Mr.
Speaker, Who are we in bed with?

[General uproar ]

Because if we are going to
be hanging out with International Business, then I
think the PLP Government may be losing touch and it
is starting to sound like a whole lot like an old song that we used to sing around the United Bermuda Way.
So, I can see why it is really nice to talk about how
International Business has grown, but since when the
PLP friendly with International Business?
[General uproar]

My point, Mr. Speaker, is that
it sounds to me like the Progressive Labour P arty is
touting a lot of their credit based on the growth of I nternational Business versus the growth or the welfare
of the people of Bermuda.
I am going to leave it right there, Mr. Speaker,
because you know what, we have got local small
business —not int ernational, but local small business.
And do you know the message that they are sending?
At least that they are sending directly to me? It is that they feel as though they have become the Gover nment’s tax collectors. They are the ones who have to
sort out the customs duty. They are the ones who
have to report and give all of the taxes back. And it is
hurting their hearts that they have to top up and mark
up the price of their goods in order to pay the Gov-ernment’s taxes. And they are getting tired of that.

Hon. Zane J. S. De Silva: Point of order, Mr. Speaker.

Yes, I will go back to the first
time I said it. The people in Bermuda are carrying the
burden of the taxes in Bermuda. International Bus iBermuda House of Assembly ness is paying a whole lot less in percentage than
what the man on the street is having to pay.
Hon. Zane J. S. De Silva: That is not true.

Point of order. Make your point.
Hon. Jason Hayward: Point of order, Mr. Speaker.

POINT OF ORDER
[Misleading]
Hon. Jason Hayward: The Member is misleading the
House. That is the fact.
Business taxes for the majority of small bus inesses in this country have been reduc ed in this
year’s budget. The annual payroll tax for businesses
who have a payroll less than $200,000 has decreased
by 43 per cent. Between $200,000 and $350,000, it is
reduced by 29 per cent. Between $350,000 and
$500,000, it is reduced by 19 per cent. Be tween
$500,000 and $1 million, reduced by 17 per cent. A nnual payroll tax less than $1 million, is increased by
2 per cent. Mr. Speaker, small businesses are paying
less taxes underneath this particular budget.

—the shipping duties, they
also have the foreign currency . . . the FCPT [Foreign
Currency P urchase Tax]. They have plenty of other
customs duties that . . . the whole enchilada that they have to pay in addition to the taxes that the Member
just mentioned.
And, Mr. Speaker, keeping in mind all of that,
people are just not earning enough to survi ve here in
Bermuda. And some people are feeling completely left
out. And I am going to bring up one example because
the Minister who has just taken his seat had mentioned the minimum wage. And I would like confirm ation that everybody who gets an hourly rat e should be
included in that minimum wage.
I am about to raise what I believe is a slightly
sensitive topic. But we have a taxi industry in Berm uda, and I am sure that we will debating in future ses-sions of the House the taxi industry and public service
vehicles, but for today under this Budget Statement I
would like to raise the point that our taxi drivers (and this is what they are calculating) are earning about $8.60 an hour. And all they are asking for is a minimum wage.

Hon. Zane J. S. De Silva: Seriously?

I would also like to know . . . I
want all the taxi drivers to hear all the chirping that is
coming from the other side from the PLP Government
because those people who drive taxis have to put up
with a lot and they are not necessarily appreciated when it comes to the —

[Inaudible interjections and laughter ]

They cannot afford the land
taxes. And they cannot bear the c ost of everything
else that has risen beyond their ability to pay. And we
are talking about people who have been here, who have worked hard, who are driving buses, who are
teaching our children, who are providing a valuable
398 24 February 2023 Official Hansard Report

Bermuda House of Assembly service and contribution to this country and they cannot afford it anymore. And it is hurting their hearts, Mr.
Speaker. I heard them. I listen to them. And they cannot go. I said good- bye last night to someone who
cannot do it. Has up and left! [They] have to double
bunk with their gran dchildren in order to leave the I sland. But they cannot afford to stay here another day.
Mr. Speaker, until the PLP Government is
able to get something going to get this Government
and this country back up and running with some substantial projects, bric k and mortar that is convincing,
that is realistic, that is an integrated part of the lives of
the people in Bermuda, we are going to continue to
suffer and it is going to be bad. And one of the big
conversation pieces out there is Morgan’s Point. And you know —

[Inaudible interjection]

—the first thing that people
say that comes out of their mouths, to the point where
I had to go back into that Budget Statement and look
at it one more time, is that the PLP Government, and
[correct] me if I am wrong, has written on the paper
that they would give a $130 million guarantee for the
picture of what looks like Camana Bay to me.

[Inaudible interjections]
Hon. Zane J. S. De Silva: Man, you shouldn’t bring
that up at all.

—but I just saw on the front
page of the newspaper just a few weeks ago the fact
that it is going to be exorbitant to find some of the supplies to build in Bermuda over the coming months
and years. And yes, I und erstand that the Minister of
Public Works is trying really hard to find some alternates, to be able to provide an affordable solution for
building materials. But, Mr. Speaker, we all know that
by the time any building that is going to be construc ted in Ber muda, waterside and all, is not going to be
an affordable situation for a lot of people in Bermuda
who need the housing desperately.
And the question then begs itself —and again
this is not coming from me, I am channelling this from
people who support the P LP Government —why isn’t
the Progressive Labour Party —

[Inaudible interjections]

Oh, sorry.
Today, Mr. Speaker, I am going to stand as a
proud person who grew up in St. George’s. When the
Budget was actually proposed, or stated, it caused me
to go back i n my mind and think about the fact that in
St. George’s, right, we have all these people who are,
not characters, but they are actually icons in the whole
community. Some of those who would know, who are
from St. George’s, right, would know that there were
people named . . . and it is interesting because you
know them by the nickname, not the actual name,
right, there was a [person] named Chop- Chop, Tiller,
(for example) Dickty Trott. The great Alabama. Ever ybody knows him.

[Crosstalk]

Yes, Albari.
—Ms. Patrice Minors .
And so today, Mr. Speaker, I am going to go
through what I call “they say.” So, they say, Mr.
Speaker, that a balanced budget should be easy to
do. And guess what, Mr. Speaker, they are right. A
balanced budget can be done quite easily and, in their
parlance, fire half of the public servants. It can happen
very quickly, Mr. Speaker.
The challenge though, and I will draw some
comparisons later on between the public service and
the private sector in terms of in the public sector, guess what, if you reduce the public service by half,
what happens next? A significant portion will end up
on financial assistance. And so from the Government
perspective, you do not actually get rid of them, you
have to still deal with them on what I call the backend.
In the priv ate sector, guess what, you can decide to
reduce headcount very easily. Because once that is done they are no longer your responsibility. So, Mr.
Speaker, they say, they say, they say.
I will also refer briefly to what Minister Ha yward talked about earli er because, as I said at a di fferent time, imitation is in fact the sincerest form of
flattery. And some of the comments that have been made in the Budget Response actually reflect what
the PLP has already done.
One other diversion, Mr. Speaker, and I do
beg your indulgence, is that on page 1 of the Budget
Reply, toward the bottom, if I may, it says: “How can the country raise $50 million dollars to close a current
account deficit . . . ?” And I will say, Mr. Speaker, that
for some reason, I don’t know what it is, and the
Leader is not here to comment (I suppose), is that
they continuously refer to a current account deficit.
From the work that I have done, and obviously it all is available publicly, is that this is actually not correct in
terms of looking historically for the Government budgets (if you will). The idea of a budget . . . a current account deficit —

Sorry.
—is actually not correct. And you can go back
and look at 2015, 2016, 2017, 2018, 2019, 2020,
2021, 2022 and all the way through. And so I do not
know what happens in terms of correcting the public
record in these instances, Mr. Speaker.
And I will tread lightly on this one because
you, Mr. Speaker, spoke about it earlier. And my rea l
question is, What happens when you edit a document
in terms of if there are inaccuracies, which are now going to form part of the Hansard and be part of the
national record, what do we do? Because as you said,
on page 3, the Leader said that what was wri tten is
not what was intended and so I do not know how that
gets corrected.
And also, Mr. Speaker, what I will say, with
your indulgence again, is that on page 33 of the
Budget Reply, the comment is that “[The Premier] and
his associates are living the hi gh life, while most Bermudians are living from day to day . . . .” And I don’t
know what was intended by that, but if it is in the context of us as PLP Members, that refers to me. And
somehow, Mr. Speaker, this needs to be corrected
because I do not believ e that I am living the high life in
any way, shape or form. And so, Mr. Speaker, I am
not sure how those things can be corrected.

Mr. Speaker, one of my
colleagues always says that we are entitled to our opinions but we are not entitled to our own facts. The
facts must be the facts and this document, in some
respects, is factually incorrect. It is not my opinion; it is factually incorrect. So I do not know how that will be corrected.

400 24 February 2023 Official Hansard Report

Bermuda House of Assembly The Speaker: Well, you can speak from a personal
perspective as to whether you si t in that category or
not. He gave his opinion. The other part that I had —

—I had corrected because I thought it
crossed t he line of more than just an opinion. And I
thought it needed to be cleaned up. So, when I said
he corrected it with what he intended to say, I meant
what he actually had done was that he presented it in
a more palliative manner. If that is a better word f or
you to appreciate.

[Crosstalk]

I will continue on.
They say, and they said, the speaker before
me said that in a strange way, the PLP supporters
have been speaking to an OBA MP. I am not quite
sure what that context was. But, Mr. Speaker, I will
say this. In terms of . . . and this is obviously to the
general public now. In terms of what has the PLP
done in the [ context ] of this Budget, is that we keep
repeating this now, right. But everybody who earns
less than $132,000 will pay less payroll tax. And Mr.
Speaker, in terms of what that means, it came home
to me very clearly the other day. It means that almost
every single educator in Bermuda will benefit. Police
officers will benefit. Firemen will benefit. Custom offi cers will benefit. Correction officers will benefit. Those persons who work for the Government on the various BIU contracts, they will benefit. The majority, Mr.
Speaker, of those persons who are even on the BPSU
[Bermuda Public Services Union] contracts will benefit. And so to say that the PLP is not in contact or in touch with the general public actually makes no sense, Mr. Speaker.
Mr. Speaker, Minister Hayward spoke also
earlier in terms of the fuel savings. Unless you never
buy fuel, you will save. And so that is a direct impact
that recognises the current situation for most . . . actually, ev ery Bermudian. And it does not matter, for
example, Mr. Speaker, whether you earn a million do llars or $5,500 if you fuel your vehicle. And so certainly
everybody will benefit. And the estimates do vary, Mr.
Speaker, in terms of what the impact is, but if you
drive an “average” car, every time you fuel up, whet her it be one week or every other week you are going to save an estimated $20. And so that does add up.
And Mr. Speaker, while I am on my feet, I will
say this, because sometimes what they say is that it is
minimal, it does not matter. But Mr. Speaker, who
amongst us would walk down the road and see $5.00 on the ground and pass it by? None of us. We would
pick it up and put it in our pocket and keep moving.
Mr. Speaker, every penny counts and if you see $5.00
once and then $5.00 a second time, it adds up. And
so these benefits to the average person in Bermuda
will add up irrespective of what the former speaker said.
Mr. Speaker, we all know that the other effort
that the Government has made is to int roduce zero
customs duty on many primary items. The next step which we are starting to observe is for the grocers and
the other importers of either food or beverage—and I
will smile when I say that —will also start . . . they
should start to show us how those items are being
reduced. Because the goal from the Cost of Living
Commission was to ensure that those persons
demonstrate that the savings that arose from the cus-toms duty reductions will accrue to the average consumer.
Mr. Speaker, the former speaker , the person
who spoke before me (sorry) . . . I am trying to be polite. But they tried to minimise the impact of reductions
in cost for school uniforms. Mr. Speaker, my children are now beyond that age and so I do not have to worry about school uniforms. But again, Mr. Speaker, any
reduction in any impact that everyone has to incur
makes sense. It does add up. And so if my uniform
costs $100.00 and it is reduced to $90.00, that is a
$10.00 savings that I could otherwise use and so I want us to make sure, us in this Chamber, but also
the general public, that we understand that all of these
things, Mr. Speaker, do have an impact. It is the c umulative impact that we all need to experience.
And I will say this also, Mr. Speaker, from a
point of view of canvass ing, one of my . . . I want to
say, an ardent supporter, he always asks that ques-tion. Anthony, what does this all mean to me? And


Bermuda House of Assembly that is why I am trying to explain some of these things,
Mr. Speaker, because there are many advantages
that have been put through on the current Budget, and
it does impact every single person. Even all of us in
this room, Mr. Speaker. Mr. Speaker, they say that the public service
in many respects is, I want to say, less than able, less
than capable or otherwise. But, Mr. Speaker, I want to
say on behalf of all public servants that there is a level
of experience that is valued in the public sector, just
as if I worked in the private sector for 10 or 20 years, I do learn and there is a level of experience that you
get. The same thing does apply to the public service.
And I say that because it is a different environment in
terms of even how you manage people, even how you have the PS (and whatever) directing what you do, it
is a whole different environment. And in many cases
for good or for bad, even working in a unionised env ironment is very, very different that many persons in
the private sector do not have to worry about. And so I
am emphasising the point today that we have to stop this thing whereby we act as if those persons i n the
public sector are less than competent. And we speak to this intention for the Premier in his capacity as Mi nister of Finance to do a review to ensure that those
persons who work in the public sector are able to earn
an appropriate salary.
So, Mr. Speaker, I will say again, from my
own experience, that under many circumstances, as a professional when you first start working in the public
sector you probably earn more than you earn in the
private sector. After about five years or so, you actua lly earn probably the same as the private sector. But
certainly, if you are professional and you go beyond
five years, your compensation is a lot less in the public sector than it is in the private sector. And that has
to be understood and appreciated and we have t o
stop this thing whereby we continuously have this narrative (I want to say) whereby we act as if the public
service are not competent in what they do. And they
work very, very hard.
Mr. Speaker, one of the interesting [observ ations] in terms of this whole private sector versus the
public sector ––and sometimes the narrative is that we
do not know, we in the PLP, do not know what we are talking about. But Mr. Speaker, I frequently have the opportunity to speak to persons who are very, very
senior in Inter national Business. And one of the interesting but consistent comments is reflected in what
Minister Hayward said earlier, they are right now so
busy and making so much money that they are finding
it difficult to keep up. And I was in the east recently and it was interesting to see the amount of travel via a
private jet, in this instance. The comment though—

[Inaudible interjection]

—is to see the lines of
taxis, minibuses, and limousines that were involved in
that process. And from that, of course, Mr. Speaker,
what translates is that they are all earning as a consequence of the businesses being busy. And certai nly, Mr. Speaker, the PLP are creating the environment
whereb y the businesses themselves are able to flourish. And so this narrative whereby the PLP is anti -
business is (and I hope this is parliamentary language, Mr. Speaker) absolute nonsense.

[Inaudible interjections]

And so, Mr. Speaker, I will
declare my interest because obviously . . . not obv iously, but I am at the airport. Sometimes we do forget
this reality. And the reality is, Mr. Speaker, that some
persons come to Bermuda for business reasons. They
will ha ve their family with them during the business
process. And, Mr. Speaker, I was (I want to say) fla bbergasted that one person said to me, I have been
here for a business purpose. I like what I see. ( I am
now going to follow what Minister Hayward talks
about , the economic investment certificate.) I am going to purchase a house to allow me to come back.
That would have been, at minimum, another $2.5 mi llion.
And so, Mr. Speaker, they say that we don’t
know. But the reality is the PLP know what they are
doing in terms of managing the economy.
Mr. Speaker, they say that the debt is out of
control. Mr. Speaker, it is factually incorrect. And the reason why it is incorrect is because the debt itself
was actually doubled by the OBA. Now there can be all this con versation in terms of what happened and
why and all the rest of it, Mr. Speaker, but again, we
can have our own opinions but we must have acc urate facts.

Mr. Pearman, Mr. Pearman, I would
suggest you watch the tone of your language there. We are still early in this day and I am sure when you get on your feet this afternoon or this evening you are clever enough . . . you are clever enough to be able to
present the argument that you want to present in a full presentation. So don’t let yourself get sidetracked in


Bermuda House of Assembly an off -set exchange back and forth that may limit your
ability to be able to present your presentation later on
this evening. Thank you.

I did . . . I advised the Member to not
let himself get hot -headed here.
The point is, yes, it is unparliamentary; and I
would ask you to withdraw it. In my comments . . . I
just overlooked it. I was trying to tone you down and
calm you down, but part of it is to withdraw it.

Thank you, Mr. Speaker.
The Member who spoke before me has now
returned so that is a good thing.
Mr. Speaker, the other big point is that the
Government, as the Minister said, is in fact going to
introduce or make it effective in June the minimum
wage. And Mr. Speaker, that is actually a major, major positive for many workers. You may be aware, Mr.
Speaker, that there is an employer (who doesn’t need
to be named at this stage) who actually pays the
workers at $12.50 at this stage, and will move to this
higher rate. And what it means is that those workers
will actually receive a 33 per cent increase. So that is
significant.
I will also note, Mr. Speaker, as they say, in
his own words, that the O pposition were not suppor tive of it when we had the debate in this Chamber.
So I will carry on, Mr. Speaker.

I spoke about the debt, Mr.
Speaker. They say, again, that the debt is never r e-paid or never reduced. But, Mr. Speaker, the Budget
spoke about the fact that this year there is a $50 mi llion note that is due that will be repaid which will represent a reduction in the actual debt of $50 million.
And while I am on that, Mr. Speaker, again, for the knowle dge of those . . . well, those in the Chamber
would be aware, but those in the public, the reality is
that the short -term interests rates as they change do
not have an impact on government debt. And the re ason is that the Government debt is actual bonds. S o
once they are issued the rates are set. So it is only
going to be if and when we have to go back to the
markets if the rates are changed that there will be an
impact on the Government interest amounts.
Mr. Speaker, also, there has been some narrative i n terms of how we are going to finance the debt
and all the rest of those things. Mr. Speaker, the for-mer Minister of Finance, our colleague, Curtis Dicki nson, would have explained some time ago that when
the rates were favourable we went to the market and
we borrowed sufficient funds to ensure that we were
able to fund any deficits until we get back to where we need to be. And in that regard also, Mr. Speaker, this
is where we go back to the idea of imitation and flattery. It is already online for the PLP to move to a balanced budget, as has been suggested or commented
about in the OBA Response.
Mr. Speaker, they say that the BHB executive
team are incompetent. They say because the audit is
not completed that the funds themselves are not accounted for and, by inference, they should not receive
any additional funds. Mr. Speaker, I will leave it at that, but that is what they say, or they said.
Mr. Speaker, I am mindful of my time and I am
going to . . . and those who know me know what I
mean by this. I am going to smile. And I am going to
smile, Mr. Speaker, because they say, they said, he
says, he said that the travel authorisation should have
been ceased, it is a nonsense and we should not have it any more. But today, Mr. Speaker, they say they will
reintroduce it. But, Mr. Speaker, the problem is that
we would know that based upon . . . and here again I
will declare my interest because I do get involved in the amounts that are added on as passenger taxes in
that the Government does not currently have the a uthority to impose what has been suggested in the
OBA [Reply]. Because, Mr. Speaker, the airport contract now permits the airport operator, which is
Skyport, to manage, increase, change, whatever the
case may be, all of those ancillary taxes. And so, Mr.
Speaker, I am not quite sure what is intended or the level of knowledge that went into that recommendation. But again, Mr. Speaker, they say.
Mr. Speaker, the other comment, again, being
mindful of my time, is that . . . there is a comment in
the OBA [Reply] that the opportunity for medical tourism is (if I remember correctly) a pipedream and, by inference, a non- starter. But, Mr. Speaker, one person
in the Chamber right now I think exhaled and I am not
404 24 February 2023 Official Hansard Report

Bermuda House of Assembly quite sure, but I was actually shocked when I was
driving (I believe) listening to a news report when one
Honourable Member said that he actually supports
medical tourism because of the benefits it will bring
and the fact that it will be a tremendous benefit to the Bermuda public.
So, Mr. Speaker, they say , he said, and now
they may not say but it was already said that medical tourism is, but at the same time is not, a benefit to
Bermuda. And so, Mr. Speaker, my comment there
while somewhat facetiously is you wonder how do they do these things in terms of a senior member
would take one position and end up being contrary to
what they say as part of their official response. And
so, Mr. Speaker, I am not sure how those things can be reconciled.
Mr. Speaker, I guess the other comment I
want to make, very brief ly, again being mindful of my
time.

I fail sometimes to understand the coherence of the documents that sometimes
are offered in this Chamber. And I say that politely,
Mr. Speaker, because as I said ear lier, there are
some factual errors in the document and I do not
know how they will be corrected. But what is in my
mind’s eye right now is that they say a lie often r epeated sometimes is thought, assumed, or believed to
be the truth. And so, Mr. Speaker, the factual inacc uracies in this document would hopefully be changed or
somehow corrected because it will be obviously unfor-tunate for this to remain as the official record. And so,
again, I am not sure how that is going to be addressed.
In this last min ute or so, I will say this also,
Mr. Speaker. We have this, I want to say, crazy statement that the PLP was the Government for 21 of
the past 25 years and whatever they say. They say it
as if the PLP created the foundation, Mr. Speaker. But
Mr. Speaker, guess what? The PLP did not introduce
the pension schemes. The pension schemes them-selves, Mr. Speaker, were fundamentally flawed from
inception. And so therefore for persons now to complain or to comment out of context in terms of the Government full debt b eing $7 billion because so
much of it is unfunded with pensions, that needs to be
properly spoken about and explained because, yes,
they may be unfunded, but you cannot say that they
are unfunded if you were part of the process as a party that started the problem from the inception. And so
we have to start to clarify these inaccuracies.
Mr. Speaker, they say, they say, and they say.
But right now, Mr. Speaker, you are going to say that my time is up. And so what I am going to say is thank you, Mr. Speaker .

[Desk thumping] The Speaker: Your time is now up, Honourable
Member.
Does any other Member wish to make a contribution at this time?
Any other Member?
MP Dunkley, you have the floor. You have
your 30 minutes.

Hon. Michael H. Dunkley: Thank you, Mr. Speaker.
Mr. Speaker, I appreciate the comments of
Members who have spoken before me. And while I do
not always agree with everything that is said, I think it
is important that we have a Chamber where we are
allowed to participate in robust debate. A nd som etimes [we] come out of our comfort zone to live and
learn and to try to put Bermuda in a better position.
So, Mr. Speaker, I appreciate your interruptions here over the past couple of weeks in trying to keep the
tone and the tenor of the debates —

Yes.

Hon. Michael H. Dunkley: But you did have to interrupt some people who did not want to be interrupted.
That was where I was going. But, Mr. Speaker, I a ppreciate your interjection in that and you know, obv iously, I think from time to time we all get worked up and I believe you have even had me called to order for that. So I appreciate that.

Probably more than a couple of times.

Hon. Michael H. Dunkley: No, Mr. Speaker, let’s not
exaggerate here.

[Laughter]

Hon. Michael H. Dunkley: But I am going to leave
that alone because I don’t think I have an hour tonight,
which I could gradually use.
But Mr. Speaker, the reason why I raise that is
because I have spoken to this point on a number of occasions that, because we sit on different sides of
the political divide and because many politicians just
look toward the next election ––and I am not saying
party, I am saying politicians look t oward the next
election ––we get worked up over things and we need
to make sure that we are measured when we say ce rtain things and we need to make sure we are measured when we put things in a certain tone that would
offend people.
So while I don’t agree w ith a lot of the PLP
policies, I certainly have always tried to be more car eful at the wording that I choose, especially when it can
be taken personally. And I say that tonight because I


Bermuda House of Assembly can understand how some Members on the other side
took an exception w ith some of the language that was
used. And I applaud you for making sure that we got
back on a better course and I hope we all live and
learn from that, Mr. Speaker. What I would also say is that I thought the
Honourable Member who just spoke before me was
very clever in his speech because he used somebody
who had a deep desire for politics, ran in many elections all up and down the country, I think. Well, maybe
from the central to the East End. Never got elected but he was always involved in politics. H e used what
he would say, they say, without having to try to support it, Mr. Speaker. And I will come back to that a little bit later.
So, Mr. Speaker, as I get started in what I
wish to contribute tonight I want to start by saying that the documents by t he Honourable Premier and the
Honourable Opposition Leader were certainly very
comprehensive. And to me [they] looked like election
documents because I have not seen Throne Speec hes even half as long or in depth as this one is. And
with the Government budget today, we are talking
about Morgan’s Point and there are really no specifics
about it. When the Honourable Premier was asked at
a press conference where the money was going to
come from, it was pretty vague at the time, Mr. Speaker. But in budget debates our goal, our desire,
has to be to be specific and not be vague because the
numbers in a year’s time, or two years’ time, are going
to firm up and are going to be numbers we refer to.
And I refer to all the time.
Having said that, Mr. Speaker, there is a lot in
the PLP budget that we can support, and I certainly can support. I am pleased to see that there will be a
review of the sugar tax because it did not get off on
the right foot. And now the Government is going to
review it. I am pleased to see that.
I am pleased to see a recommitment to imm igration. And I don’t think any of us, even the Honourable Minister who works in Immigration now . . . I think
he will say (privately, probably) that immigration r eform has been slow. And we all need to make sure w e
can pick it up because, certainly, when you talk to business leaders in the community, they say —they
say—let’s get it on. But we support that.
Mr. Speaker, I am pleased to hear the a nnouncement by the Honourable Transport Minister earlier today about ai rlift. Airlift is critical to us in Be rmuda, Mr. Speaker. And while the Honourable Mini ster did touch on some positive improvements, we still
have a long way to go. I do not think we should un-derestimate the challenges that we face in airlift for a
number of reasons. One, we are an island. We are
quite a remote island when you think about it. Even
though we are 700, 800 miles from New York and Boston, the closest air links, it is still very remote. And
Bermudians need to travel, whether it is for business, whether it is for pleasure, or unfortunately for medical
at times. So Bermudians need to travel.
We built our economy around travel, Mr.
Speaker, with International Business. I will get to that
in a little bit more detail later on, Mr. Speaker. We built our economy around having good airlinks to various
parts of the country. We built tourism around that in
the late 1970s and the early 1980s. But sadly, Mr.
Speaker, COVID -19 dealt the whole world a bad blow
and we are taking, in my words and in my colleagues’ words, too long to recover in certain areas. But I am pleased to see that the Government is committed to
doing something about it. And Minister Furbert has
done a reasonable job up to now to show some i mprovement from the position we were in a couple of
months ago.
But Mr. Speaker, having said that, if we do not
do something about hotel development, the extra airlift
that we have compared to when COVID -19 shut us
down, will soon disappear. It will soon minimalise, Mr. Speaker, because the airlines are going to go where
they can make money. They are going to go where people want to spend their money and they are going
to go to the jurisdictions of least resistance, Mr.
Speaker. So we need to make sure that while we are
building that lift again that we do e verything to support
it. And we cannot support it with, so far, failed promi ses on hotel development. It has taken too long to do that.
Now, a number of people probably remarked
in, I guess 2020 when the Southampton Princess closed down, that that was the best time for it to happen because we could get our ducks in a row. We
could start renovating, get the hotel opened up and all
that good stuff by the time we came out of COVID -19.
But that clearly has not happened.
And the challenge that we have in the Opp osition is the Premier is very good when he speaks. So he can convince people that what he is saying is ac-tually going to happen. But if you just look at one i nstance in itself in the Fairmont Southampton, ever ything to date basically, Mr. Speaker ––let me say, a lmost everything to date––has been a failed promise.
Because in my notes right here, Mr. Speaker, I can go
back and look at some of the deadlines that the Ho nourable Premier put in there, talking about hotel development. With the Fairmont Southampton he said
that, just last year, early in the . . . late in the second
quarter he said that the hotel would open up in 2023. And then he came back in November and he said that
construction would start in the first quarter of 2023 and be open in 2024.
I remember him being questioned by the
Honourable Opposition Leader and colleagues as well. We were aghast that we could be standing here
in I think it was November or December asking questions and the Premier was so sure that it would all happen. We would have construction now, and it is
not happening, and it would be opened up in 2024.
406 24 February 2023 Official Hansard Report

Bermuda House of Assembly Well, clearly, Mr. Speaker, even with an SDO and
reading what was in the paper and hearing the conversations, they have a long row to hoe. And as the
Opposition Leader said in hi s comments in the Reply
to the Budget Debate today, as the Opposition Leader
quite rightly said, it is going to be two years.
So, Mr. Speaker, bringing that back, and I do
not want to beat up Fairmont Southampton because let me say very clearly, while I am in the Opposition, I
want Bermuda to succeed. My colleagues are like that
too. But sometimes the Government gives us too much ammunition to fire back on so we have to take
it. We cannot let it go; there are only six of us.

[Inaudible interjections and laughter ]

Hon. Michael H. Dunkley: You know, we have to do
it, Mr. Speaker. And I say that somewhat in jest, Mr.
Speaker. But that is the reality of politics. You have
got to take your opportunity.
But Mr. Speaker, in the case of Fairmont
Southampton it is almost a comedy show. Because
the Honourable Premier is so sure of himself. He
stands up and speaks over and over and over again.
And the deadlines are missed. And if I am missing
something here, Mr. Speaker, I will take a point of order. But everybody is quiet and they are listening, so I
am on a good solid wicket. I am batting on a good solid wicket here, Mr. Speaker.

[Inaudible interjections]

Hon. Michael H. Dunkley: With the Fairmont Sout hampton, if we cannot pick up our game and get som ething t o happen, the airlift will be very, very difficult for
Minister Furbert to maintain. And you know, we are not at a positive position as far as airlift is concerned
because we still have a major gateway in Atlanta that
does not have a daily flight guarantee d for the summer. We have lost the Miami American flight and if you are struggling in the southern part it would be nice
to have Atlanta in the mid part of the southern area to
at least give you some flights to go south.

I agree with that .
Hon. Michael H. Dunkley: And I hear Honourable
Members on the other side say they agree with me.
Look, I want Bermuda to succeed then our job in the
Opposition is easier. We can come up here and sing
Kumbaya, Mr. Speaker, but we are not there yet. We
are not there yet, Mr. Speaker.
So we need to work on getting this hotel d evelopment open. We cannot keep making promises
and have those promises fail. Because as the Ho nourable . . . well, the Member is not in his place but I
will still call him honourable . The President of the BIU,
Chris Furbert, as he said, there can be no economic recovery without the opening of the Fairmont Sout hampton. Mr. Speaker, 700 jobs. Let me—

[Inaudible interjections]

Hon. Michael H. Dunkley: Well, you need to work a
little b it harder former Minister Zane De Silva.
But let me just talk about jobs —

Hon. Zane J. S. De Silva: Okay, former Premier.

Hon. Michael H. Dunkley: Well, I am proud of that
time too, sir.
Hon. Zane J. S. De Silva: I am proud of my time.
Hon. Michael H . Dunkley: Well, you can be proud of
your time but my record is drawn on that. So you will
still see.
But Mr. Speaker, but look at —

Hon. Zane J. S. De Silva: But your record is not be tter than mine, though.

Hon. Michael H. Dunkley: I am not going to get engaged with that.

[Inaudible interjections]

Hon. Michael H. Dunkley: But Mr. Speaker, the Go vernment . . . you know, I hate to take difference with
the Honourable Minister —

[Inaudible interjections]

Hon. Michael H. Dunkley: No, no, I am talking about
my brother over there, the Honourable Minister of I mmigration, because he works hard. He is available.
And I know he has got a passion for Bermuda. We differ on some things but that is cool.

[Inaudible interjections]

Hon. Michael H. Dunkley: I didn’t get that email.

I didn’t either.

[Laughter]

Hon. Michael H. Dunkley: It wasn’t sent to me. And
he is shaking his head.
But I am not going to go there. I do not want
to get into this debate back and forth about the econ-omy. Because here is what I will say, Mr. Speaker —
[Inaudible interjection]
Hon. Michael H. Dunkley: No, I am going to say
something but I am not going to go back and forth for


Bermuda House of Assembly too long because I have only got about 38 minutes
left.
[Laughter]
Hon. Zane J. S. De S ilva: Thirty -eight? Since when
did you get 54 minutes to speak? [Laughter]

Hon. Michael H. Dunkley: Mr. Speaker, I hate to tell
the Honourable Member that all is not well with the
economy.
All is not well with the economy, Mr. Speaker.
And here is why. We have had this conversation a
number of times and I have spoken on this quite a number of times. We are blessed to have International
Business in Bermuda. It started in probably the very
late 1970s and really got going in the 1980s and
1990s, going through there. We are blessed to have
International Business in Bermuda.
Hon. Derrick V. Burgess, Sr.: Yes, we are.

Hon. Michael H. Dunkley: But the challenge is it is
creating a false economy that most Bermudians do
not appreciate and understand in their m inds. Now, do
not get me wrong, Mr. Speaker, I will do everything to
support International Business.

[Inaudible interjections]

Hon. Michael H. Dunkley: I will do everything to support International Business. But the Honourable Member who loves to chirp a lot should just listen. The
challenge is that the PLP before 2017 talked about
Two Bermudas. Those are the Two Bermudas that
they should have recognised then —International
Business and the local economy, Mr. Speaker. And until that day when we realise that we have actually
created something there . . . and I am not saying that
that is bad. We just need to recognise it and fix that
second part, —because if we do not fix that second
part, Bermudians will continue to struggle. And you
cannot say, Mr. Speaker . . . you can throw out all the
economic numbers you want until the cows come
home. You cannot say that Bermudians aren’t stru ggling at this time, Mr. Speaker. Because if they
weren’t struggling, they wouldn’t be emigrating!

Mm-mm.
Hon. Michael H. Dunkley: If they weren’t struggling,
they would not be complaining about the cost of living
in Bermuda! Everyone in this Chamber, and I am getting passionate because it hurts all of us, right. They are our constituents.

[Inaudible interjec tion] Hon. Michael H. Dunkley: They are our constituents.
Everyone in this Chamber gets stopped by people
telling a story. And you know, when you say som ething, they come up to you and say, We appreciate that. We know . . . not just one person is an encyc lopaedia of stories. All of us get it, Mr. Speaker. So we
need to stop and when we want to talk about the
economy growing, what are we growing from? We are
growing from 2020 when— boom —you couldn’t hear a
sound. I remember when we first got locked down, I would walk down to the road and I sat there and I just
reflected—

[Inaudible interjection]

Hon. Michael H. Dunkley: I took a walk down to the
road and I just sat there and I reflected.
[Laughter]

Hon. Michael H. Dunkley: And you know what was
so inter esting about it? There was peace and quiet,
Mr. Speaker. But then I started to think, But wait a
second. At some point we have got to open up again.
And then my wife started calling me and wondered
where I had gone.

[Laughter]

Hon. Michael H. Dunkley: She thought maybe I had
broken curfew.
[Laughter]
Hon. Michael H. Dunkley: But I was down to the
road.

[Inaudible interjections]
Hon. Michael H. Dunkley: But, Mr. Speaker, getting
back to the serious part. So when we were shut down
three main things happened with industry. First of all,
International Business, and we were blessed to have
them because they figured out how to work from
home. And man, that eight cylinder didn’t miss even a beat. That generator kicked in right away and those
guys worked from home. They work from home so
well right now, Mr. Speaker, and I am not talking out
of school because the Government meets with them.
They know that some of them still work from home
and Friday is a workday from home, but Friday is a day in the boat or going to play golf or whatever. But
that is good if they can do that.
That is a positive. Because you know, Mr.
Speaker, if we treat them right we can grow the industry. Because as the Honourable Opposition Leader
said, there are so many jobs outside of Bermuda in companies that they have started or are affiliated with
that if we manage to bring some of that back, that
408 24 February 2023 Official Hansard Report

Bermuda House of Assembly number that we need to get to here, to get on the I sland, to make our economy more sustainable, to cr eate opportunities to give Bermudians a better pay
cheque and have some real peace amongst our country, it would happen quite quickly.

Hon. Zane J. S. De Silva: You said three things, what
is the other thing?
Hon. Michael H. Dunkley: The second thing is, and I
thank the Honourable Member f or keeping me on
track because my time is running short, only 30
minutes left.
The second thing is, Mr. Speaker . . . and I
have to get to them quickly because I lose my train of
thought quickly. I didn’t write it down. The second
thing is that there are some industries that were r equired to be open and they had to find out how to shift into a different gear to make it happen. And they did
that. And I want to say at this time, and thank them
again, all the emergency workers for the time that they put in at that time. Because we were sitting home and
a lot of people enjoyed it for a while, but they were out there all the time and some of them were in harm’s
way. There was an accident right down by my house.
A guy ran a roadblock.
So the third thing, Mr. Speaker, is thinking
about the industries that were shut down, had to open
up, but had never been in that position before. And so,
look, I do not come here just to beat up on the Government. That is not the intent of the day. The intent of
the day is to try to bring some reality from the perspective that we have as the Opposition that, yes, you guys can say that the economy is going in the right
direction, but when you are building from 2022, don’t
even worry with those stats. Because, Mr. Speaker, I
have looked at them quickly in the time that I had
here, my colleague was taking my Budget Book so I
had to make sure that I got it back. But you know, if
we look at 2019, the jobs held in 2019 were 34,378.
Well, currently 2022, preliminary data show 31,718.
So we are still down 2,660 jobs. From 2020, Mr.
Speaker, 32,427 against 31,718. So we are still down
709 jobs.
Now, I am not saying we are not making pr ogress, but please, Government, tell us about the pr ogress that we are making compared to where we were
befor e COVID -19. Because everybody knows we
were shut down. International business kept us here.
Now, Mr. Speaker, I want to talk a little bit
about GDP because the Honourable Minister said, You know, in the first quarter of 2022, it was 4.2 per
cent growth an d going on and waxing eloquently
about it. And I listened, I listened. Then I looked in the
Budget Book. I looked in the Budget Book, Mr.
Speaker, and GDP growth in 2021, because that is the latest number that is in the Budget Book, is still
lower. It is s till lower than 2019. So what we have
done is come back from COVID -19. And that is good. At least we are coming back. Because some countries, Mr. Speaker, are not coming back at the present
time.
So, I make these points because yes, we are
not going downhill anymore, Mr. Speaker, because we were stopped in 2020. The country was stopped. We
did not even have airline service coming in at that
time, Mr. Speaker. We were in a very poor and pr ecarious position. So now we are coming back from it,
but we still ha ve major challenges that we have to
face. And the Government can look at it through their
rose- coloured glasses, as the Opposition Leader said
and as I said previously last week when I spoke about
it, Mr. Speaker. So we still have a long way to go.
The Government, I think they understand, but
they will not say it, Mr. Speaker, that they understand
that there are countless Bermudians who are strug-gling at the present time. And you know, people do
not emigrate . . . they do not emigrate just because
they wan t to go somewhere else and watch football,
Mr. Speaker.

[Inaudible interjections]

Hon. Michael H. Dunkley: Emigrate, em, em. Em igrate. That is what I said, sorry. Or should I say un -
migration . No, this one is emigrate.
People do not leave the Island because they
just want to go play football. They certainly do not go
to the UK for better weather, Mr. Speaker. They are
going because they believe the grass is greener on
the other side of the fence. And, Mr. Speaker, if peo-ple believe that the grass is gr eener on the other side
of the fence, it is always very difficult to bring them back. So the PLP to a great degree has enabled the
Two Bermudas that they talked about in discouraging
terms, about the One Bermuda Alliance at the time, Mr. Speaker. And we need to do all we can to pick up
our Bermudian brothers and sisters to put them in a better position.
Because look. There are many things I support about this. The payroll tax is something that the former Finance Minister, Bob Richards, started. We
did not go far enough because we did not have the
time. But generally, we support that payroll tax
change, Mr. Speaker. The fuel savings —allowing the
savings on fuel, that was a positive move, Mr. Speaker.
Hon. Derrick V. Burgess, Sr.: You are sounding like
you are the PLP, Dunkley.
[Laughter ]
Hon. Michael H. Dunkley: Mr. Speaker, the Honourable Member is not going to let me change my tune.
Sound like I am PLP? No, I am a realist.

[Inaudible interjections ]


Bermuda House of Assembly Hon. Michael H. Dunkley: I am for a better Bermuda.
I am for a better Bermuda, Mr. Speaker. But, Mr.
Speaker, the Honourable Member, while he talked
about the fuel savings, yes. That is something that all
Bermudians can come into. But where are we with the big fuel savings such as BELCO? BELCO bills have
continued to go up through the pandemic, Mr. Speaker. And to make it worse, there are challenges within
the vicinity of the new power plant that we see Go vernment Ministers come out and making damning statements about, Mr. Speaker. Maybe a little bit late in my opinion, Mr. Speaker. But we see BELCO, who
want to be a good neighbour, polluting the country,
and no one can deny it, Mr. Speaker.
And so we talk about, yes, you can get $20.00
fuel savings to fill up your taxi. But what are those
people over there just northwest of me, Mr. Speaker,
what are they feeling? They cannot open their wi ndows. They have got to clean their roofs all the time,
Mr. Speaker. And they still have got to pay an expensive electricity bill.
So while there is a lot that I see that i s important in this [Budget Statement] that we can sup-port, there are still some that we have reservations on,
Mr. Speaker, such as gaming. Gaming has been
talked about for a long time, Mr. Speaker. And I will
reserve my position on the future of gaming un til we
see the legislation coming through the House. B ecause I have talked to people within the industry, and it is a mixed bag of comments about it. But the cha llenge that I have, Mr. Speaker, is that we have made
commitments to at least two establishment s. I think
that they have even paid licence fees and everything.
And now the model is going to be changed.
So I ask the Honourable Government Members, will that money be returned to them while there
is a rethink of what is happening with the legislation?
That is only fair and proper, Mr. Speaker. If you want
those partners to stay at the table and work for it to
make it happen, because there are some people who
would say, Just scrap it. I do not agree with that , Mr.
Speaker. I think it is an important amenity that we can
make work if we get it right. If we let political interfer-ence get out of the way and we all work together to
get a model that works for Bermuda and get the right
people involved, I think it can help Bermuda. We have put too much into it, Mr. Speaker. We have put too
much into it, Mr. Speaker.
[Inaudible interjections]
Hon. Michael H. Dunkley: Now, Mr. Speaker, I have
never heard the Government Members be on the edge of their seats to listen to me speak like this, Mr.
Speaker.

[Laughter]
Hon. Michael H. Dunkley: And you know what, Mr.
Speaker?

[Inaudible interjections and laughter ]

Hon. Michael H. Dunkley: Mr. Speaker, I am flattered. I am flattered. I am flattered so much that —

[Inaudible interjections ]
Hon. Michael H. Dunkley: Yes, this white boy is tur ning red because I am blushing.
But, Mr. Speaker, there are a couple of things
I want to speak to.

[Inaudible interjection]

Hon. Michael H. Dunkley: Well, there might be three
then.
Mr. Speaker, I would like to see us make a
commitment to stop trying to blame each other for the
debt.
[Inaudible interjections]
Hon. Michael H. Dunkley: The debt. Yes. Yes. B ecause we all should take some ownership. We all take
some ownership for it, Mr. Speaker.

[Inaudible interjection]
Hon. M ichael H. Dunkley: You know, the Honourable
Minister Wayne Furbert [says], You have got to give
factual information. That is what I am going to do.
Since you asked me for it, that is what I am going to
do.
But for the PLP to say that the OBA doubled
the d ebt is not correct.

That is true.

Hon. Michael H. Dunkley: No, it is not. Because the
debt when the OBA came into power was $1.57 bi llion. If you double that, what is the debt? It is $3.12
billion. When the OBA left, it was $2.483 billion . If you
want to go another year to 2017/18, it was $2.568 bi llion. So we could talk, you can talk all you want. But,
Mr. Speaker, here is another thing—here are two ot her things I want to say.
The first thing is we can blame each other, but
it is not goi ng to disappear.

Hear, hear!
Hon. Michael H. Dunkley: And we cannot keep kic king the can down the road, Mr. Speaker. Right? So
while the Honourable Premier says next year we are going to start to deal with it, we have heard that before
from a Finance Minister who was well -respected. Now
410 24 February 2023 Official Hansard Report

Bermuda House of Assembly he is gone. I would hope the PLP could heal some
differences and bring the brother back. He had a lot to
offer. He has a lot to offer, Mr. Speaker.
So let us stop trying to talk about the debt to
make it [ an issue] —You won’t vote for OBA. You
won’t vote for PLP. Let me tell you something, Mr.
Speaker. When the OBA got elected in 2012, right at
the end before Christmas, yes, right before Christmas,
I had not even thought about getting a Christmas pr esent for my wife yet, then we got elected. I almost forgot that Christmas present because we were elected. But, Mr. Speaker, the point I want to make is, as soon
as we got . . . we got sworn into office.
And as soon as we got into the office and
started to look at the information, Bob Richards came
into Cabinet, the former Finance Minister. And he
goes, Guys. We have a real problem . We have not
even had the New Year worn off on us yet. We have a
real problem. What is it? We can’t meet payroll. Mr.
Speaker, the civ il servants that we all talk about that
we love so much could not be paid. We had to go out
and borrow money.
So, you are going to blame the OBA because
the PLP did not know what was going to happen in
January? Now, I did not think they thought they were
going to lose the election. But anyway.
So let us forget about the debt. We can argue
about the debt, but at the end of the say, it is on my great -grandchildren. It is on my grandchildren, my
great -grandchildren. And I do not know how they are
going to deal with it. So we have to start being more prudent in what we deal with.
The last thing I will talk about, Mr. Speaker —

Hon. Zane J. S. De Silva: You couldn’t find money for
the payroll but you can borrow money for the Amer ica’s Cup.

Hon. Michael H. Dun kley: And the Honourable
Member says we found money for the America’s Cup. Yes, you know what, Mr. Speaker? We found money
for payroll before that. We found money for America’s
Cup, and it brought $360 million into this country, Mr. Speaker. I ask the PLP to show me anything they cr eated to bring in $100 million to this country, Mr. Speaker!

[Desk thumping]

Hon. Michael H. Dunkley: I will take a point of order.
But none are coming.
Hon. Zane J. S. De Silva: I will give you a point of
order, Mr. Speaker!
[Crosstalk]

Hon. Michael H. Dunkley: Sit down. I have only got
three minutes. Hon. Zane J. S. De Silva: I will gladly give him a point
of order. The Honourable Member is misleading the
House.

Hon. Michael H. Dunkley: Do you want me to speak
about the T A [travel authorisation]?

Hon. Zane J. S. De Silva: Okay. I will sit down if he is
going to talk about TA.

[Laughter]

Hon. Michael H. Dunkley: Now, Mr. Speaker, there
has been a lot of talk about . . . there has been a lot of
conversation about the tra vel authorisation form. And
let me just give you my perspective on it, Mr. Speaker.
Mr. Speaker, I have been a big proponent of
eliminating it, supported by my colleagues. And it
started in January of 2022 for the simple reason, as
we were coming out of C OVID -19, the airport was
open, countries were starting to open up. I was besieged by people saying it was a detriment to coming to Bermuda. Businesspeople, travellers, all the way
through.
And I remember I was actually traveling, and I
penned [an article about] relief for the Royal Gazette
at that time. And it was poo -pooed—

[Inaudible interjection]

Hon. Michael H. Dunkley: So, it was shunned on by
the PLP.
Anyway, fast -forward to a couple of months
later, Mr. Speaker. I was at a function, and the Honourable Premier was at the function. We had a co nversation about a number of things, and I raised to
him at the time, Honourable Premier, please eliminate the TA. It’s a real detriment to this country. Filling out
that form is putting all people off. I hear d, sitting down,
people on the plane. One lady (when I came back
from somewhere) said, Honey, tell me why we’re going here and not going to the Bahamas. That is what I
heard.
Now, Mr. Speaker, the Premier . . . and I said
to the Honourable Premier, Honour able Premier, if
you wish the tax, roll it into a plane ticket fee.
And the Honourable Premier said, We can’t
do that because we don’t have the authority to do that.
I said, Well, look. I don’t think we should be
taxing anybody anymore. Eliminate the form.

[Inaudible interjection]

Hon. Michael H. Dunkley: No, I said, You’ve got to
get rid of the form.
In politics, you know, Honourable Member,
that sometimes you want to go here, but sometimes
you have to go halfway to get there to the next step.


Bermuda House of Assembly So the Premier said, We can’t do that. Well,
eventually the form was eliminated. That was positive.
My honourable colleague, the Leader of the Oppos ition, in meeting with international business, the di scussion came up. They said, Hey, if they have to have the for m, put it into a ticket price. That is where that
came from, Mr. Speaker.

[Inaudible interjection]

Hon. Michael H. Dunkley: And I just said that. I just
said that. The Honourable Member does not need to
say anything to me. What does Park Management do,
like basketball?
[Inaudible interjection]
Hon. Michael H. Dunkley: And there is no form i nvolved with it, Mr. Speaker, that way. Now I still do not believe we should bring the form back in any way. We
should not bring the TA back in any way, Mr. Speaker .
And in politics, we are not going to see 100 per cent
with everything in our Members and our caucus. But we still [move] forward together and try to get the best
route.
So, Mr. Speaker, thank you for the opportunity
to speak. And I will —
[Crosstalk ]

[Timer chimes]

Thank you, Member.
Does any other Member wish to make a . . .
oh.
Minister Furbert, you have your 30 minutes.
Hon. Wayne L. Furbert: Thank you, Mr. Speaker.
Mr. Speaker, let me take my hat off to the
Premier and the Minist er of Finance. If anyone understands particularly when it comes to finance or ac-counting or budgeting, normally individuals or finance
people look at what transactions occurred in the pr evious budget. And what I mean by that is that if a
budget, payroll tax, or whether it is land tax, Ministers
or civil servants will look at the numbers from the pr evious year and say, Well, it should be increased here
and there. Mr. Speaker, we all know that the 2022
Budget, we lost roughly $45 million. And we could not, when we come to this number here in 2023, figure out
how . . . well, what do we do? I lost $45 million. And
so first of all, we try to replace that. That is a cha llenge in itself outside of other increases that take
place. And that is $45 million probably made . . . most
of it was made up of travel authorisation, $25 million.

That’s your problem.

[Inaudible interjections]

Hon. Wayne L. Furbert: And then $17 [million] to $20
million in the loss from the Soviet aircraft registry. So,
we lost a way of raising revenue through the travel
authorisation, and we have lost a means of getting funds from Bermuda civil aviation, which is roughly
$17 [million] to $20 million a year. So where do you
start?
And it would be interesting to see where if the
OBA was in the position, where would they have
started? So, we are starting from a backward part and trying to raise the revenue, knowing the expenses are
not goin g to change much. So my hat, like I said, goes
off to the Minister of Finance, the Premier, on his skills to get us where we are today.
Mr. Speaker, what was interesting in this
Budget, and I am going to take my time to try to ex-plain this, and there are a few accountants in the
room. If the leader —
[Inaudible interjection]

Hon. Wayne L. Furbert: Yes, there are a few of them.
The Leader of the Opposition—and I will read
what he said, Mr. Speaker, on page 23: “The Minister
of Finance confirmed that the G overnment is currently
owed more than $314 million dollars in taxes and fees
and are only prepared to recover a paltry $7.5 million
this coming year. This is a mere 2.3 per cent of the
outstanding balance.” And he asked the question,
“What is going on?” An d his idea was that we have to
try to collect $62.5 million, which is approximately 20 per cent. Aah! If you do not understand accounts
receivable, then that sounds all right. But let me make
you understand what accounts receivable is.

[Inaudible interjec tion]

Hon. Wayne L. Furbert: And the Honourable Member
Michael Dunkley and a few would understand [this] at
the end of the day. That we have a number that we
get to at the end of March of this year based on cash
basis. Because a government is based on cash. So —
[Inaudible interjection]
Hon. Wayne L. Furbert: I am going to get to that.
That was under your Administration. I am going to touch that. I am glad you said that.
[Inaudible interjection]
Hon. Wayne L. Furbert: I found them, but it was your
Administration.
412 24 February 2023 Official Hansard Report

Bermuda House of Assembly But I will get to that, Mr. Speaker, in a few
minutes.
So, the $314 million is made of roughly payroll
tax, land tax, foreign currency purchase tax, stamp
duty and financial services. Those are the large amounts, $314 million. Well, what th e Opposition
Leader failed to tell the public and [those] who do not
understand is that this $314 million consists of, when
you go to the Auditor General, the Accountant General, they accrue for revenue. It is called a modified
cash basis. Modified cash basis consists of cash and accrual.
So what happens is that the Government as
of March 31 had to accrue. So you have got $314 mi llion, as the Honourable Member Cole Simons says, which is right. But it includes cash basis and accrual.
So his projection was t hat we should collect $62 mi llion. Does anybody know exactly how much we col-lected?

How much?

Hon. Wayne L. Furbert: I am glad you asked.

Some Hon. Member s: We did not ask . . .

Hon. Wayne L. Furbert: Yes, they did, Mr. Speaker.
Becaus e they would not tell —because they told us a
number, so they must now be trying to go, What is the
actual number we collected? In April, in April. We collected (Are you ready for this, my accountant friends?) $136 million. Not $7.5 million. The Honourable Member suggested that we should collect $62 million. We
collected double what he had asked for this Honour able House, for Honourable Members, to collect. A full
$136 million we collected for the month of April. B ecause what has happened is when you get to March,
you have got to accrue for the payroll tax, particularly
coming from international business or wherever.
Hence, the accounts receivable roughly at the
end of April —and this is an approximate amount —is
. . . (I had the number here somewhere) $175 mi llion,
$175 [million]. So when he talks about $314 million,
you are off base. You are off. This is not correct. So
the public —

The number $314 million comes
from the Premier’s Budget [Statement].
Hon. Wayne L. Furbert: And I understand that the
Honourable Member is a lawyer and does not understand numbers.
[Inaudible interjections and laughter ]

Hon. Wayne L. Furbert: So the question comes down
to . . . no, it is right. That is right. He does not understand the numbers.
I said the $314 million consists of cash basis
and accrual. He does not understand that. Right? You understand it. But in April the Government collected
$136 million. So the real accounts receivable as of the
end of February it is roughly $170 million to $175 mi llion. Actually, that is a lot of money. So what we are
saying, Mr. Speaker, is that other than that we are
going to try to also collect an additional $7.5 million.
Now, we could be over -conservative. We
could say we are going to collect $90 million. Because
remember, this affects the revenue basis of how we
determine Current Account revenue and expenditure. So the Government is taking a real conservative angle
on how m uch we will collect.
Now, the whole idea is to try to collect more.
So we may end up collecting $10 million, we may end
up collecting $15 [million]. Because there are proc edures that the Government will put in place to go after
individuals who have not paid or who do not have a
payment plan. So you have got to understand how the
$314 million [was calculated] that the Government put
in place.
Mr. Speaker, the Honourable Member said
about the money that we found in the drawer. You all recall, Mr. Speaker, t hat when the PLP took the stage
in 2017, the Premier appointed myself as Chairman of
the Efficiency Committee. And guess what we found, Mr. Speaker? They did not have accounts receivable
because the money was still sitting in drawers. Some
money was still sitting in drawers —$354,000 was si tting in a particular office. On top of that, Mr. Speaker,
$8 million of unadjudicated stamps were sitting in a
department. And we had to go out and collect some
$6 million.

Whose desk was it?

Hon. Wayne L. Furbert: It was under your Admi nistration.
That is the point I am trying to say, Mr.
Speaker. It was under their Administration that they —

[Inaudible interjection]

Hon. Wayne L. Furbert: Because you are blaming us
for the accounts receivable. So we have got to take a
part of each one.

Hon. Michael H. Dunkley: Mr. Speaker, point of order.

Point of order.



Bermuda House of Assembly POINT OF ORDER

Hon. Michael H. Dunkley: I was trying to help the
Honourable Member out.
It is one thing to talk generally about acc ounts
receivable, which is a good political debate. And the
Honourable Minister was doing a reasonable job of
trying to clarify his position and the Government’s position.
But it is another thing to make an allegation
that money was sitting in a drawer so people listening
would think, Well, I wonder whose drawer it is? So it is
clear, that in politics no Government Minister or MP
goes out and collects money that is due the gover nment. So let us be clear on that. Because if they are,
they are doing somethin g that should not be done.
There are accountants in every department who should do that. So it is just a clarification for the Honourable Minister.

Hon. Wayne L. Furbert: Mr. Speaker, I take his point.

Continue on, Minister Furbert.

Hon. Wayne L. Furbert: Mr. Speaker, I just want to
make it clear, particularly when it comes to the accounts receivable part. Now, let us talk about the Honourable Member, Mr. Pearman, was j umping up and talking about
debt. And I am going there. Because Honourable
Member Pearman and . . . Accountants or financial
people look at the year -end.

[Inaudible interjection]

Hon. Wayne L. Furbert: Well, Mr. Speaker, —

Yes.

Hon. Wayne L. Furbert: —the debt as of March 2012
was $1.2 billion as of March—
[Inaudible interjection]

Hon. Wayne L. Furbert: You can do your own r esearch.
It was $1.2 billion. If you go look at the Consolidated Fund under Bermuda Government Consol idated Fund f or 2012, you will see March 2012— I will
give you time to look for it —is $1.2 billion, 2012.

[Inaudible interjections]

The person who borrows the
money is the person responsible for accruing the debt.
414 24 February 2023 Official Hansard Report

Bermuda House of Assembly We do not just say, Oh, well, we look at the year -end.
And, hey, you know what? Not every government
changes on the 31st of December year -end. The debt
by the PLP was $1.574 billion at [page] C-29 of your
Budget Book.

Okay. I think what the Member was
trying to do was trying to present the case of numbers
that he saw as the numbers at the time because I
think he presented those numbers earlier. And you will
be able to present your numbers when you rise to your feet. So present your case and we will see where
the difference lies.

Hon. Wayne L. Furbert: Mr. Speaker, when the Pr ogressive Labour Party had their audited statements as
of March 31, 2012, the value of the debt was $1.2 bi llion, factual. They could search for it, or they could
ask the Accountant General to give them the information. When they left office and [were] taken out at
2017, as of March 31, there was $2.4 billion. All we are saying, Mr. Speaker, it was double. When they
took it over and when they left. Now, that was 100 per
cent.
When we [were] and still are the Government,
the debt is $3.3 [billion]. Now, there was an increase,
$859,000 [sic].

[It was] $859 million.

Hon. Wayne L. Furbert: No, $859 million increase, a
34 per cent increase over that period. And you know
why, Mr. Speaker? Because we had to go out and
borrow money for Morgan’s Point.

Hon. Michael H. Dunkley: We had to borrow money
for payroll!
Hon. Wayne L. Furbert: We had to borrow money for
Morgan’s Point for a decision they m ade which is still
costing us money today, which ended up to be $212
million. We had to borrow money for that. And we had
to borrow money for some other things that the OBA
had done. So, Mr. Speaker, all I am saying to you, and I accept that we both have a fault as far as debt.
We accept that. But I want to make sure that the Honourable Member who kept on standing up talking
about my colleagues are wrong is to be corrected.
Now, Mr. Speaker, the Honourable Member
Cole Simons, a good friend of mine—

[Inaudible interjections]

Hon. Wayne L. Furbert: My friend, who rides his
horses in Hamilton Parish.
[Inaudible interjections] The Speaker: Talk to the Chair, talk to the Chair, talk
to the Chair.

Hon. Wayne L. Furbert: I am looking at the Chair.
Mr. Speak er, said that election . . . Mr.
Speaker, you and I have been around for a while. But
you have an election budget, but you are not taking
care of the people. It does not add up. You have an
election budget which takes care of the people. You
cannot have an election budget that does not take
care of the people. It does not work that way. You
have to have something . . . at the end of the day
when a message has been given to you, you have got
a great election budget, you have got a . . . But that is
the Honourable Member who said the same thing last
budget.
And, Mr. Speaker, I can guarantee the Ho nourable Member as we get close to whatever the day may be or the year may be, he will say next year is an
election budget! As a matter of fact, the Premier said, We’re not increasing any expenditure next year. And it
will be a balanced budget. That is an election budget,
is it not?

The Honourable Member. The Honourable Member. The Honourable Member, Opposition
Leader.
Hon. Wayne L. Furbert: The Opposition Leader.

[Inaudible interjections and laughter ]

Hon. Wayne L. Furbert: That is a joke there. He
would have learned something, particularly under the Honourable Member Michael Dunkley.
Mr. Speaker, it does not add up that way. So I
am trying to make it clear to the Honourable Member
and to the public that some things that they are saying just do not make sense.
Mr. Speaker, my honourable colleague, Mini ster of Economy and Labour, pointed out to us all that if you are talking about us not caring, you are not talking
about the Progressive Labour Party. You are not! He
mentioned about the licence fees for private cars being decreased. He talked about payroll tax being r educed. He talked about extension of the supplemental
unemployment benefit programme. He talked about
relief in hotels. He talked about government removal. . . that was last year.


Bermuda House of Assembly But this year, since you all know it is an election budget and [you] said we do not care about the
people, we come back and say any employee earning
less than $132[ ,000] (I wish they would raise it to our
fee) will pay less payroll tax. Employers . . . and there
are several employers in this room.
And even the Honourable Member, my good
friend Michael Dunkley, I think he got a tax break, too,
did you not?

[Inaudibl e interjection]

Hon. Wayne L. Furbert: No, I think he has got a tax
break also. Everyone will get a tax break, particularly
local companies in the local economy. But when it comes to international business, Mr. Speaker, there
was no increase. There was no increase. The dec ision to take on employees’ costs is up to the emplo yer. The Government said there will be no increases for
the international business.
Now, I understand the process of how they
have been doing business over the years. But I know
some r e-insurance [companies which] have actually
passed on some of these expenses to their emplo yees. This is up to the management of that particular company. But everybody, by far, whether those individuals from the $48,000 or $36,000 up to $132,000 would get a tax break. And those employers . . . you
ask yourself the question, Well, how do you do that?
How do you give all these breaks? When we have
also . . . like I said, we lost [some] revenue basis [and]
the Government methodically looked at what we can
do, and now [we have] come up with a deficit of
rough ly $70 million that we will have this year.
But projecting for next year . . . now I can tell
you right now, my view is that the projection that the
Premier, Minister of Finance, has for surplus, I think it
will be higher. I am not going to tell you why, but I
think it will be higher. So the public will be quite
pleased. Now, we do the one year, and the OBA just
wants to do the three years. Mr. Speaker, these things
do not add up.
So we have a commitment, Mr. Speaker, for
economic growth. And the Minister of Economy and
Labour is doing a tremendous job. Who would have
thought that we would have had hundreds of people coming to this country for the digital nomad [pr ogramme]? Hundreds of people! I believe the last number was over 1,000 people, and there are roughly 200
people still on the Island buying clothes, buying milk,
renting houses.

[Inaudible interjection and laughter ]

Hon. Wayne L. Furbert: Mr. Speaker, I think it is i mportant that we remind the Hon ourable Member that
some policies that the Government has put in place
have affected a wide range of individuals. Whether
you are renting your house—one- bedroom, two-bedroom, studio —it has impacted [the economy]. And
this increases the economic benefit to us all.
Mr. Speaker, I am quite proud of where the
Government is and where the Government plans to take this country. I do not understand when the OBA
Government talks about, There ’s no growth in bus iness ; the PLP hasn ’t done anything for business ,
when w e have doubled support for small business by
increasing the guarantee capacity of the Bermuda
Economic Development Corporation. We eliminated
taxes for new startups to support entrepreneurs. We reduced payroll taxes, as I have just mentioned. And
the Honourable Minister, Jason Hayward, mentioned it
by the percentages. That is huge, Mr. Speaker, a 43
per cent payroll tax deduction. That is huge for small
businesses. Mr. Speaker, the new hire [programme]
introduced by the PLP supported jobs expansion. The list goes on and on.
Mr. Speaker, I am proud of the Progressive
Labour Party and the direction it is heading.

[Inaudible interjections ]
Hon. Wayne L. Furbert: Mr. Speaker, the Honourable
Member is trying to draw me into something that I will
not say.

Talk to the Chair.

[Inaudible interjection]

Hon. Wayne L. Furbert: Yes, Lord.
Mr. Speaker, I am proud. I am sure that the
country . . . yes, and we understand there are difficult
times for individuals. Some people around here have difficult times. I have difficult times. We all have diff icult times. But sometimes, Mr. Speaker . . . how does
the saying go?

Hon. Michael H. Dunkley: When the going gets
tough, the tough get going.
Hon. Wayne L. Furbert: No, it is not that. There is
another one. The Scripture says —

[Inaudible interjection]
Hon. Wayne L. Furbert: Yes, that one too.

[Laughter]

Hon. Wayne L. Furbert: Mr. Speaker, I am proud,
and I will sit down. It is my time. Thank you.

Dinner served soon, yeah?
Mr. Speaker, I am going to try and stick to the
facts. And I am going to also, with your leave, Mr.
Speaker, try to quote quite liberally from things that
have been said, with direct quotes, and tie them t ogether.
I would like to start by talking about the difference between reality and lack of reality. The reality,
Mr. Speaker, is this: This PLP Government has told us
rightly and correctly that the world is seeing the highest rate of inflation in 40 years. That is in the Premier’s budget speech. What does that mean? What does inflation mean? It means that costs are going up
and things are getting more expensive. That is reality.
Against that reality, our Premier, David Burt,
talks about hope. Now, hope is a wonderful thing, Mr.
Speaker. But what is dangerous is false hope, empty
promises, telling someone you will do something but then never actually doing it, or failing to tell someone
the reality on the ground because you do not want
people to think you are doing a bad job or that the
storm ahead may be tougher than it is.
Mr. Speaker, we need to be real. We need to
talk about the reality on the ground and around us. We need to be honest with Bermudians.

Page 9, with your leave. These
are the words of the Premier: “This economic recovery
isn’t touching all of our residents and many fee l they
are going backwards.” Those are his words, and they are right. And Bermudians who feel that they are go-ing backwards are right to feel that because times are
tough.
And, Mr. Deputy Speaker, I pose this question
not just to you, but to all Bermudians who might be
listening. Ask yourself this, Are you better off than you
were five years ago? I think the reality, sticking with
reality rather than lack of reality, is that most people
would answer that question no. No, I am not better off
than I was five years ago. No, my neighbour is not
better off than he or she was five years ago. No, most
of us in Bermuda, sadly, are not better off than we
were five years ago. And if I am wrong about what I
think the answer is, no doubt people who speak after
me can c orrect me with their views. But I think most
Bermudians would agree, and it is their question to
answer, not mine.
Turning then, Mr. Deputy Speaker, to what I
would describe as a lack of reality, and naturally I am in the Opposition, so I would describe t he lack of real ity as coming from this Government or more specifically this Burt Administration. And what I would like to do,
again with your leave, Mr. [Deputy Speaker], is look at
this Government’s own words in the Budget Stat ement. Now, let me take five examples.
I will start first at page 4. And at page 4, the
Honourable Premier and Minister of Finance says this, and I quote—

Quote: “ Inflation is downward
trending and tourism is on a trajectory to reach prepandemic levels. ” Now, those are the Premier’s
words. But again I ask, Do you believe that stat ement? If you look around today, is inflation downward
trending, given th at we both agree and he has already
said that we are looking at some of the highest infl ation globally in 40 years, things are costing more, costs are going up? “Inflation is downward trending,” he says, “and tourism is on a trajectory to reach prepandemi c levels.” I am not so sure, Mr. Deputy
Speaker. So that is one example.
Page 16, if I may again with your leave, and I
will quote directly from the Budget Statement from the Premier.

And I quote, “ American Airl ines’
service from Charlotte and British Airways’ London
Heathrow gateway were bright spots in 2022 . . .”
Well, that may well be true, Mr. Deputy Speaker. But
again there is an air of unreality there. We can talk
about the only two airlines and say they are “bright
spots.” But the reality is that gateway cities have
stopped servicing us. And I am very pleased, and I
commended the Honourable Minister of Transport for his announcement today that we are going to get a
Boston flight back. We can all agree that is a very
good thing. But to sort of say that the London route
and the Charlotte route are “bright spots” in a sea of
darkness . . . there is an air of unreality there.

Turning now . . . There i s an air
of unreality there because the other planes are not flying. That is reality.
Third quote, if I may, Mr. Deputy Speaker, is
page 41 of the Premier’s budget speech. And this one
is right at the bottom. This was something that the
Honourable Minister for Transport was speaking about
earlier in his speech. And it is where he says right in the last paragraph, “ Mr Speaker, the Government has
set a target of recovering $7.5 million of past due tax-es . . .”
Now, Mr. Deputy Speaker, we can argue
about whether the taxes that are owed by the Berm udian public to the Government are $314 million or if
they dropped by $40 million because some came in or
more bills got out. But again, reality. Reality is when
you have that level of unpaid debt due you need to do
a little bit better than setting a target of recovering
$7.5 million. That is reality.
And another quote again from the PLP Budget
Statement, page 7. And this is at the top in the first
paragraph. Again, I quote: “ We are proud of what we
have accomplished thus far. ” Again I am not sure that
this sort of expression of pride is going to ring very
well in the ears of the Bermudian public at a time where I do not think they are very proud of their (lo wercase- G) government. And I do not just mean the
PLP Govern ment. I do not think the Bermudian public
feels they have been served well, and I do not think they are going to welcome hearing how proud this particular Government is of what they have done. So
there is a lack of reality there.
Now we have heard, and I hear some chirping
in the background from the Minister of Economy and
Labour, so let me turn to his speech. We heard a lot
from the Ministry of Economy and Labour.

[Inaudible interjection]

“Lowercase- G” means gover nment as opposed to a particular political party Go vernment.
So we heard a lot of numbers earlier from the
Minister of Economy and Labour. We have heard that
this was going up and that was going up and this was
going up and that was going up. But again there is a
lack of reality there. It is not so hard to go up from the ground zero of COVID -19. One would hope that after
the ground zero of COVID -19, numbers, all numbers,
most numbers would be up. You can go from zero to hero if you start at zero. But there is a lack of realit y
there.

Hon. Jason Hayward: Point of order, Mr. Deputy
Speaker, point of order.

What is your point of order,
Honourable Member?

POINT OF ORDER

Hon. Jason Hayward: The two largest sectors within
our economy, international business and real estate
activity, did not decline during the pandemic. As a r esult, the growth in our two largest sectors is real
growth on year -over-year growth.

418 24 February 2023 Official Hansard Report

Bermuda House of Assembly The Deputy Speaker: Thank you, Honourable Member. Thank you.

And I will come to international
business. And his point on international business is a
valid one. But my point is about his crowing on this
number being up and that number being up, as if
these are great achievements. Zero to hero is not a
great achievement.
Mr. Deputy Speaker, turning now to the four
points of the PLP’s Economic Recovery Plan. This is the old Economic Recovery Plan. We are now told
that there is a new one, and we have heard five new
points elaborated by the Minister of Economy and Labour today. But the old one, let us just look at the one
that has been in place, the one about which David
Burt as Premier is proud. The old one had four fundamental aspects to it. It had Tynes Bay. Well, I think
we can agree that it is good to fix that, and I will come
to infrastructure in a moment. It had vertical farming. I
will leave that one. It had gaming. I will come to that in a moment. And it had the redevelopment of North
Hamilton, something which I think both sides of the
aisle would love to see, but something which ma y
prove to be more difficult than mere words make it.
And again, there is a lack of reality here.
There is a credibility gap. And I am pleased. I may differ from some of my colleagues who, you know,
criticise the Government for changing its Economic
Recov ery Plan. But if you have a bad plan and you
are not delivering, I do not fault them for changing
their plan. And I hope the new plan is better, and I
hope the new plan is delivered, because fundamental-ly we all want a better Bermuda.
Mr. Deputy Speaker, I would like to now turn
to certain things lest it be said that I am being critical
or I am being false or not helping. I would like to turn
to a few things in the budget that I agree with. My colleague, Michael Dunkley, spoke earlier about how we
all want Bermuda to succeed. And we do. And there
are things in here that we fundamentally agree with
and would work with the Government on if it was possible to work in a bipartisan fashion to try to succeed and achieve.
So for example, page 29, the paragraph ri ght
from the end, “ Lack of infrastructure investment poses
real challenges to our successful future and hoping
things will not break is not a sound strategy for go vernance.” “Hoping things will not break is not a sound
strategy for governance.” And, Mr. De puty Speaker, I
entirely agree. And that is why, when we heard that
improvements were being made to Tynes Bay, we were supportive on that. I believe the Honourable
Member Craig Cannonier was supportive of that, and
none too soon given how important it is t o us.
Likewise, at page 22.

We hear the quote from the
Premier, and this is three paragraphs down where he
says this: “Bermuda is a difficult place now to live and
thrive; our costs are high, our labour market is tight,
and people are nervous about their futures. ” Mr. De puty Speaker, I entirely agree. This was David Burt, the
Premier. I entirely agree, and I would respectfully say
to the other side that this sounds awfully like what
some of us on this side have been saying. And yet
when we say it, we are doomsters and gloomsters, or we are trying to talk down the PLP’s success, or we are trying to undermine the Government.
Well, I am going to be a bigger man. When
the Premier says, “ Bermuda is a difficult place now to
live and thrive,” when he says, “ our costs are high, ”
when he says, “ our labour market is tight, ” and when
he says, “people are nervous about their futures”, I
agree with him. And I welcome that sort of honesty
and that sort of reality rather than speaking about being proud.
Mr. Deputy Speaker, still on this page, I would
like to go one paragraph further down. And, Mr. Deputy Speaker, I am going to go slightly off script because
the Premier went slightly off script. And he added a
few words that ar e not on the printed page when he
spoke. When he spoke, just where we see “taxes in
the future will increase,” what he actually said was,
unless we get more people, “taxes in the future will
increase.” That is what he actually said. And I agree
with that. That is why we have been pushing for imm igration reform, comprehensive immigration reform.
We need more people.
And if the debate that this party has with that
party is whether that is 10,000 or 8,000, great! Great! Let’s have that argument about whether it should be
10,000 or 8,000. But it has to be 8,000 at least, and it
has to be now. Now!

Hon. Jason Hayward: Point of order, Mr. Deputy
Speaker.

What is your point of order?

POINT OF ORDER
[Misleading]

Hon. Jason Hayward: I believe the colleague is mi sleading the House in terms of their willingness to work
together. When I took over the portfolio of Labour, I
sent a letter to the Opposition Leader inviting the O pposition to sit as part of the Comprehensive Immigr ation Reform Committ ee. They declined that particular
offer. As Minister of Economy and Labour, I sent a
letter to the Opposition asking them for solutions as to
how we can increase our working population and how
we can improve . . . suggestions to improve the economy. They f ailed to respond to the letter. I will not be
sending a third letter, Mr. Deputy Speaker.



Bermuda House of Assembly The Deputy Speaker: Honourable Member, you —

Hon. N. H. Cole Simons: Point of information, Mr.
Deputy Speaker, if you will allow me.

Well, I am grateful. But let me
just . . . where we got off on this tangent was me
agreeing with the Premier’s remarks that unles s we
get more people here, we are going to pay more tax-es. And why is that? Again forgive me for stating the
obvious. But we need to broaden our tax base. We need more people on the Island paying taxes into the
government coffers to support the government and to
support the Island. And if we continue to shrink and those who are left pay more taxes and more taxes, or
they leave so they do not pay taxes at all, we will fail.
And that is why it is important to recognise the
importance of the growth of the Ber muda population
through comprehensive immigration reform. And as to
MP Caines . . . and I appreciate he is not here, but I
do not think there is anything I am about to say, Mr.
Deputy Speaker, that he would disagree with. And he
can correct me if I do. I w as commending him because when he was Minister he put together a bipart isan committee of MPs and perhaps Senators, I do not know. I know MP Renee Ming was on it. I believe —

And God rest his soul.
And I am grateful for the correction from MP
Famous, the clarification, rather, because it is not a
correction. I do not think we disagree.
So there was a committee. It was bipartisan.
MP Famous I believe was on it. It sat for over a year. I
stand to be corrected, but over a year. It came up with
policy proposals.

[Inaudible interjection]

I am glad to see it is being i mplemented, and we agree. And I personally, speaking
just for me, Scott Pearman, I would go further. Well,
let us exempt all children’s clothing, you know. Why
not? Why stop at uniforms? Let us give working mot hers and working fathers and families a break.
Again, trying to agree here, page 32, and succeeding in certain cases. I entirely agree with the
statement by Premier David Burt that “o ne of t he
hallmarks of a good system of taxation is that it is
simple to understand. ” Absolutely. Absolutely.

And I hope that if and when
there is a consideration of comprehensive tax reform
on this Island, which ther e must be, and I think both
the Premier and the Opposition Leader have called for
that consideration, that we do approach it on the basis
that we must be simplistic in its approach. It has to be
simple. Otherwise, people will not understand it or
they will not follow it or they will not pay, and it will just
get worse. We do not want to have a massive bur-geoning Ministry of Tax Collection. That is a bad idea. We want to keep the system simple so that people
understand it, because when people understand the
law and understand why the law is there, they are
more likely to follow it.
I am going to get a little bit more into the
weeds here on financial matters, and it is a little dry. But some of these points are important and this is the
Budget Debate after al l.

I agree. I have already made the
point that I do not think that $7.5 million is a sufficient
target or anywhere close to a sufficient target of what
we should be trying to achieve if we have debts owed, taxes owed by Bermudians to the government in the region of plus -or-minus $300 million. The $7.5 is just
not even close. It is a joke, respectfully.
Again on a slightly dry issue, this time at page
21. At page 21 we see . . . this is the third paragraph
from the bottom where the Premier says this, and he
is talking about the Global Minimum Tax here. And
that is a big, big problem on the horizon for Bermuda.

And anyone who thinks that the
Global Minimum Tax is some great solution that is
going to solve everything for Bermuda, please do your
homework. Do some analysis. It is not necessarily
going to be good for us.
Now, why do I say that? Because the n umber -
one taxable thing that we have on this Island other than just people generally is international business.
And international business is predominantly —not exclusively, but predominantly —on the insurance and
reinsurance sector. And their balance sheets are not
straight. They are not always cash- positive. And so
you might year -on-year be getting 15 per cent of not hing.

[Inaudible interjection]

I know! And I am agreeing with
you. I am agreeing with you. And I actually was on
page 21. I was just prefacing my remark before, when
the Premier says this: “ So, whereas payroll taxes and
customs duties are always paid and represent a certain stream of tax revenue to the Government, the
same cannot be said for revenue that may come from
the Gl obal Minimum Tax. ”
Again I agree.
The point . . . I am being asked by the Minister
for Economy and Labour. The point of what I am do-ing is I am identifying statements made by the PLP
Government with which we agree. Because Bermudians are getting sick and tired of party partisan politics.
And they want us to come together and work together
and find solutions and deliver them! That is the point I
am making.
So what I am trying to do is demonstrate that
there are many things that have been said here—and I have gone through five or six or eight of them now —
where we can agree. And we should agree. And we should solve them, because Government is about effectively two things. It is about ideas, and it is about
delivery. And if you differ, you have got to look at the
ideas. Do I differ with you, Mr. Deputy Speaker, about a particular idea? Can we work together? Can we find common ground somewhere between your idea and
my idea? Right? Can we agree the problem, can we
agree the solution? That is part of it. That is the idea
part.
But you can have an idea. You can say the
right thing is this. But if you do not deliver, well, what
have you done? And in order to deliver and deliver
effectively, we all need to start working together, all
Bermudians, both sides.
Anyway, that is why I am making the point I
am, Minister.

And on the subject of ideas, we
do not always agree. Because sometimes you think
the solution is A, Mr. Deputy Speaker, and sometimes I think the solution is B . But that does not mean that
we cannot be respectful to each other in understanding your position and my position. It does not mean
we cannot discuss it. That does not mean I cannot
say, You’re wrong about A. If I say you are wrong
about A, it does not mean I hate you. It does not mean
I do not want to work with you. You say, Hey, Mr.
Pearman, you’re wrong about B. I have got to listen to
why you think that is. And you might be right. I might be wrong. I do not know everything. The Minister cer-tainly does not know everything. If he thinks he does .
. .
So that was the bit about the Global Minimum
Tax. And I hear someone chirping about what I was
listening to earlier when I was unparliamentary in my
language, where I suggested that some people were
making s tatements that were false. And they were
making statements that were false, and they were
demonstrably false. And anyone who wants to look in
their Budget Books, it is page C -29. But I will move
on. So there we are. I am not going to listen to the
chirping.
So still now at page 21, there is another
statement further up. And this is again about taxes, this again is dry stuff. But I think it is important to recognise where there is common ground. It is the second paragraph: “ However, it is my view as Ministe r of
Finance that any fundamental shift in the nature and/or level of tax receipts in Bermuda should be used to benefit Bermuda’s residents collectively rather
than representing a way to increase overall tax collections. ” Now, Mr. Deputy Speaker, I entirel y agree with
that sentiment because taxes are just a means to an
end. They are a way for government to raise money to
provide services. And if the services are not being provided, the taxes are a bit of a nonsense.

422 24 February 2023 Official Hansard Report

Bermuda House of Assembly The Deputy Speaker: Yes.

Moving on. Let me just talk about
what I think at a high level Bermuda needs. Let us
look forward rather than back because too often in this
Chamber we look back and we blame each other.
Looking to the future, what we need is princ ipled leadership. We need politicians across the aisle, both sides, with not a hint of corruption, with not a whiff that we have done things wrong. We need to be
held to a higher standard. And we need that on this Island. We need the inward flow of foreign capital.

Hon. Jason Hayward: Point of order, Mr. Deputy
Speaker.

We need the inward flow of foreign capital. We need to find inward investment. And
very regrettably, if I have to identify one fundamental
flaw of this budget, the biggest flaw of this budget is it
does not identify where that inward foreign capital is
coming from. We need to find it.
We need to reduce the cost of government —
the cost of government. We need to eliminate waste.
We need to be firmer. I know, Mr. Deputy Speaker, you have made some comments in the House and some people disagreed. But we have a responsibility
to Bermudians as a whole to mak e sure their gover nment, lowercase- G government, works for them and does what it is supposed to do, delivering on the ideas, not just pontificating on the ideas.
We need to reduce cost and ease the cost of
doing business here. Too many times, and I do not
know if he is still in the Chamber . . . he is still in the
Chamber, MP Richardson. You know, they say, they
say. Well, they do say. And they do exist. They are
not just unicorns. And they say that we need to get the
cost of doing business here in Bermuda down.
I do not know how much time is left, so I will
speed up.

But still I press on. I am a little
disappointed by my colleagues, first by the Honour able Minister Furbert because I had spent some time
trying to prove to MP Pearman how the former Government has doubled the debt. And he has quite acc urately described how we got to that figure. The second
is I am a little disappointed in all of my colleagues b efore me because I believe they have been a bit too
nice.
You see, Mr. Deputy Speaker, after listening
to the Opposition’s Reply today, the first thing that
came to my mind is this has to be the last days of the Opposition Leader’s time in that position. I cannot believe the Honourable Member from constituency 22
will stand aside much longer and allow his party to
release such subpar, poorly written mater ial into the
public.
Mr. Deputy Speaker , before I even get into
today’s Reply, I will refer to a recent statement in
which the Opposition Leader says, and I quote, “ A


Bermuda House of Assembly clearly articulated glide path to balance the budget
must be developed within three year s to reduce the
reoccurring current account deficit .” Now, Mr. Deputy
Speaker, I know the OBA is used to fuzzying the
numbers. But the reason this is baffling to me is be-cause we do not have a current account deficit. In
fact, the last time we had a reoccurring current account deficit was during the entire time they were in
Government!

Exactly.
So what we have is a Shadow Finance Mini ster who is either unaware of what a current account
deficit is or is deliberately misleading the people.
Mr. Deputy Speaker, I then refer to the pr edictable press conference the OBA had shortly after
the budget speech. The Opposition Leader said, “ Let’s
grow the economy first and clearly identify alternatives. ” In fact, quite often I hear Members of the OBA
talk about the need to grow the economy. It is a well -
rehearsed talking point, but there is a difference be-tween a talking point and the facts.
Mr. Deputy Spe aker, according to the apolit ical National Economic Report, in 2022 GDP is expected to have grown between 3.4 [per cent] and 3.9
per cent. Eight hundred and twelve new companies
registered in Bermuda. Total number of jobs i ncreased by over 400. The building materials sector recorded an average monthly sales growth of 7.6 per
cent. So when adjusted for inflation that has surpassed pre- pandemic sales.
Our air visitor arrivals [improved] by 80 per
cent. So let me speak to that for a minute because
that seems to be a hot topic. In 2020 we had 26,000
leisure air arrivals into Bermuda. The very next year it
was 55,000. And last year it was 99,000. Mr. Deputy
Speaker, I am not here to suggest that everything is
great. None of my colleagues on this side of the aisl e
would say that. In fact, on multiple occasions in the budget speech, the Premier acknowledged that more
can and should be done. But what we are proudly seeing is that things are improving. The trajectory is
moving in the right direction. The economy is a bsolutely growing and expanding. You see, GDP is ex-pected to come in at almost pre- pandemic levels. That
is a fact.
But, Mr. Deputy Speaker, another thing that I
find interesting is the fact that if the Premier had an-nounced in this House that we had a multi- year bo rrowing strategy and were going to therefore borrow an additional $50 million that would increase our annual
interest cost by $2 million, there would have been an
uproar. But instead, because of this Government’s fiscal prudence, because of this Government outperforming its expectations, we are in turn repaying down
$50 million of debt that will save our taxpayers $2 mi llion a year. And all of a sudden the OBA stays quiet.
Mr. Deputy Speaker, recognising how i mportant the debt is to the OBA, I k now there is no way
they would have supported a multi -year borrowing
strategy. The country’s debt level is so critical to the OBA there is no way they would have supported a
multi- year borrowing strategy. But is it not interesting
that in the 2014/15 Budget Statement, the former F inance Minister Bob Richards said, after they borrowed $800 million, he said it was done to take advantage of
the favourable rates and was part of the Ministry’s
multi- year borrowing strategy.
So, Mr. Deputy Speaker, pre- pandemic, prerecord global inflation, pre -Russia/Ukraine war, after
borrowing $800 million, the OBA told us that it was
part of their multi -year borrowing strategy, then had
the audacity to stand here today and say they are
concerned about the debt.
Now, Mr. Deputy Speaker, as Chairman of the
BEDC, I am privileged to witness the hard work the members of the team do day in and day out to support
our local businesses and entrepreneurs. It is what
gives them joy, it is what fulfils them. I could not thank
Ms. Erica S mith and her team enough for what they
do on a regular basis. I bring this up because in the
Opposition Leader’s Reply, he said that the Gover nment should help businesses grow and innovate by creating incentives to hire workers and provide financing to scale up businesses. Mr. Speaker, the BEDC
provides startup payroll tax relief which in itself has
created 139 jobs. The BEDC also does payroll tax relief for businesses within the EEZs, which in itself
has resulted in over 247 jobs. Also the BEDC does a
customs duty deferment for businesses within the
EEZs, which has seen over $164,000 of customs duty
deferred for $497,000 of capital investment. We are
assisting our entrepreneurs. We are helping our bus inesses.
Mr. Deputy Speaker, regarding entrepreneurship financing, what I will say is from April of 2020 to
today, which the BEDC provides in order to assist
businesses, the BEDC has approved 343 funding applications which accounts for over $6 million. Mr. Deputy Speaker, we are doing exactly what they say
we should do.
Now, Mr. Deputy Speaker, the current Leader
of the OBA said that they would introduce the travel authorisation fees.

Re-introduce.

424 24 February 2023 Official Hansard Report

Bermuda House of Assembly Mr. Jache Adams: Re-introduce, you are absolutely
right. Re- introduce.
However, just three mont hs ago the former
Leader of the OBA said, and I quote, “ The One Bermuda Alliance is pleased . . . that the Government is
abolishing the Travel Authorisation and associated fee
. . .” You see, he just got up here earlier and said no, it
is just the form that he had an issue with, right?
[Laughter]

Notice he did not even say, I believe. He said, “The One Bermuda Alliance is pleased
. . . that the Government is abolish ing the Travel A uthorisation and associated fee . . .” He said, “It has been a long time coming.”
Now believe it or not, my only question actua lly is, When will the future Leader of the OBA get his
team together so that at the very least they are singing from the same hymn book?

[Inaudible interjection and laughter ]

Conveniently.
Mr. Deputy Speaker, the Opposition Leader
then asks in today’s reply, “Why would the Gover nment increase the stamp duties on mortgages, when
the government i s also encouraging homeowners to
transfer their mortgages to banks which offer gover nment guaranteed mortgages?” It is unbelievable to me that a Member of the Legislature, the Shadow Minister
of Finance does not see in the Stamp Duties Act
where it says if you transfer your mortgage from one
financial institution to another, you will not have to pay
stamp duty on the mortgage if its total value is
$750,000 or less. Wilful ignorance.
But, Mr. Deputy Speaker, you know what
bothers me the most about the remai ning six Members of the OBA? It is that they often ask to put away party line for the betterment of the country.

But when given the opportunity to
work together, be constructive and submit feedback
during the pre- budget consultation phase, the OBA
chose to do, say and contribute nothing. Instead, they resorted to the only thing they know how to do, and that is to complain about the PLP. You see, they often
refer to people on the street and what they say. Well, I
am here to tell you that the people on the street often
say that this Opposition is weak.

[Inaudible interjections]

Mr. Deputy Speaker, hey, any
time, eh? Any time.
Mr. Deputy Speaker, allow me to move on
and say that I support the Premier and congrat ulate
him, other Ministers, technical officers and others for
their putting together this budget. Mr. Deputy Speaker,
it is quite often my starting point when I am discussing
the economy. And that is the fact that for the last 20
years the Governments under the PLP and OBA have been operating at a deficit. For the last 20 consecutive
years we have been spending more than we have
been receiving. And to cover those deficits, the Go vernment has had to borrow the money.
Now, depending on whom you ask, there ar e
many reasons and explanations as to why we are
where we are. But complaining about it, pointing fi ngers or simply saying It wasn’t me will not fix the i ssue. Mr. Speaker, I believe that if there is one thing
we can all agree on in this House, it is that we cannot
afford to borrow anymore. Our current debt is at a le vel where the government is obligated to pay $130 mi llion annually in interest. And as a reminder, every dollar that is spent to cover that interest is a dollar not
spent addressing the cost of living, providing better
care for our seniors and disabled, educating our chi ldren, curbing anti -social behaviour, supporting our
athletes and entrepreneurs, investing in infrastructure.
It is money that leaves the Island and serves no ben efit to the peop le of Bermuda.
Mr. Deputy Speaker, recognising that we ca nnot afford to borrow anymore emphasises the fact that
from a fiscal perspective, the Government’s primary objective must be to get us to a balanced budget, a
place where we are no longer spending m ore than we
are receiving. I want those listening to understand that
the Current Account balance in our sinking fund is
what we have to cover future deficits. So in other
words, we have to get to a balanced budget before the sinking fund runs out. That is the clock, Mr. Deputy Speaker. The clock, as you know, is ticking.


Bermuda House of Assembly But I mention all of this because this then puts
us in a precarious situation because after 20 consec utive years of overspending, we have to at times forgo
political expediency. We have to remain on task. We
cannot afford to keep doing what we have always
done. We cannot normalise a lifestyle of overspen ding. Difficult decisions, Mr. Deputy Speaker. But this is
the job. It is the role we have accepted. And it is what
this Government is prepared to do.
Now, Mr. Deputy Speaker, this upcoming fi scal year is expected to be the last and final deficit year before we reach a balanced budget in 2024/25. And
we have over five times that amount in our sinking
fund. So all is not doom and gloom like s ome would
want the public to believe. Again this upcoming fiscal
year is projected to be our last year at a deficit, and
we have over five times that amount in our sinking
fund.
Mr. Deputy Speaker, this entire week I heard
many people say how pleased they are with this
budget. But on occasion someone would express their disappointment. But it is almost as if individuals expected this one budget to be the answer to all of the
economic issues. It is as if they expected this one
budget to remove all of our debt, to attract 8,000
workers, to fully fund our pension liabilities, to signif icantly reduce the cost of living. Mr. Speaker, we did
not get into this situation overnight, and we certainly
will not get out of it either overnight!
But our economy is growin g. More people are
working. We are paying down the debt. We will have a balanced budget next year. Significant construction
projects are set to begin in the near future.

This Government has never been
more confident in FinTech before in history. We are
expecting a record increase in cruise arrivals. There is
no doubt in my mind that we are heading in the right
direction.
Now, Mr. Speaker, allow me to shift gears
slightly because I would like to speak about fiscal performance and our ability to manage the fiscal purse. See, forget the bells and whistles. Forget the politics
for a second. I want to know, What do the numbers say? Mr. Speaker, government revenue in 2020/21,
as you know during the peak of the pandemic, came
in at $998 million. The very next year, revenue grew
by $87 million. For this fiscal year, revised estimates
project an even further increase by $25 million. And
we are anticipating an additional $44 million in rev enue on top of that for this upcoming fiscal year.
I want it to be clear, the Government is actua lly increasing its revenue while reducing taxes and fees for the majority of the people working in this country. I must say that again. This needs to be emphasised. We are consistently increasing our revenue
while reducing the taxes and fees for the majority of the people in this country. This is no small feat! Our
economy is growing. We are attracting investment.
We are rebuilding tourism. IB is doing incredibly well.
FinTech is ready to take of f. The combined Opposition
cannot escape or deny the facts.
Now, Mr. Deputy Speaker, let us now speak
about deficits, where I would at first encourage an yone who is listening to look at the chart that is avail able in the Budget Statement that clearly lays out the
Government’s glide path to a balanced budget. Our
deficit during the peak of the pandemic, here we go, in
2020/21 was about $184 million. The very next year
after a clean audit was given it confirmed a $180 mi llion improvement, taking us to a defi cit of $66 million.
This means the very next year after COVID -19, the
very next year after the peak of COVID -19 (I should
say) while our local tourism was still devastated, while
we were still paying unemployment benefits, while we
were still paying for Morgan’s Point, while we were still
paying minimum revenue guarantees to Skyport, this
Government performed better than the OBA ever did!

[Inaudible interjections]

Mr. Deputy Speaker, this year we
are now projecting to do even better. We are projec ting a $44 million deficit. And as the Premier said, we
could have forced the issue and had a balanced budget. But it was ultimately decided that we could not
hold off on the inves tment of our critical infrastructure.
We had to stabilise Tynes Bay.

We had to refit our fast ferries. We
have to purchase a new fleet of electric buses. We
have to focus on repaving our roads, Colonel [Burch].
We have to fix the floating dock in Hamilton. There are
many other critical infrastructure projects that have
gone years with under -investment. Do not forget
schools. Cannot forget schools. And these were done for the sake of reducing our spending. So we simply could not continue to do so.
Mr. Deputy Speaker, I am proud to see the
progress being made. Again, I would never say that things are perfect. I would never say th at things could
not be better. But as the saying goes, How do you eat
an elephant? And the response is, One bite at a time.

[Inaudible interjection and l aughter]
426 24 February 2023 Official Hansard Report

Bermuda House of Assembly Mr. Jache Adams: Finally, Mr. Deputy Speaker, I
want to touch base on the Government’s track record
in how much we listen to and care for the people of
this country. I will start with the fact that since retur ning to office in 2017, the Progressive Labour Party will
be introducing or reducing payroll tax for the majority
of the workers in this country for the fourth time—the
fourth time. We are now in a position where we can
say that anyone earning less than $132,000 will pay
less in payroll tax than they are currently paying. It is
86 per cent of the workforce. Mr. Deputy Speaker, those working and earning $60,000, as the Minister of
Economy and Labour said earlier, would have saved
over $5,000 thanks to the decisions of this Gover nment.
Do you want to know why elections matter,
Mr. Deputy Speaker? Because the OBA increased
payroll taxes to its h ighest levels ever in this country,
while the PLP is on its fourth reduction.

[Inaudible interjections]

Mr. Deputy Speaker, we have met
with the stakeholders. We have heard their concerns
and suggestions. And that is why we have ensured
that no business in Bermuda will pay more in emplo yer payroll taxes than they are currently paying. Our
fishermen and farmers will be exempt from payroll tax
absolutely. Small businesses will see up to a 43 per
cent reduction in their payroll taxes. We have not i ncreased payroll taxes for any exempt company. Again,
we are listening to the people.
Mr. Deputy Speaker, all I will say regarding
the sugar tax is that this Government will be revising legislation where many items will no longer be subject
to the sugar tax, and therefore the price on those
items should go down. Now if you do not believe
those items will go down, I would encourage the pu blic to reach out to you, Mr. Deputy Speaker, as the Chair of the Cost of Living Commission, so that you
can investigate. We are doing our part, and I am
hopeful that the supermarkets will do theirs.
Mr. Deputy Speaker, recognising the time—

I stand by each of my colleagues.
I want there to be no confusion. This was a collective
effort and something we should all be proud of. Last
year we reduced payroll taxes for those earning
$96,000 or less, and this year we are reducing taxes
again, this time for those earning $132,000 or less. Last year we provided money to parents of each public school student, and this year we are eliminating
duty on school uniforms so that they can be more af-fordable. Last year we reduced the customs duty on
essential goods to help reduce the cost of certain food
items, and this year we are revising the sugar tax so
that the cost of additional food items can go down as
well. Last year we launched a mortgage guarantee programme so that the mortgages are more affordable
in this co untry, and this year we are increasing the
stock of more affordable houses.
Mr. Deputy Speaker, we have come a long
way, and we still have a long way to go. But with this
budget and the Progressive Labour Party team, I am confident that we are headed in t he right direction.
Gone are the days of the status quo. And brick by
brick we will build a better and fairer Bermuda.

[Timer chimes]

I sometimes forget how new
I am to politics when I see everyone get so worked up
about some stuff. To that end, Mr. Speaker, thank you
very much for t his opportunity to speak tonight to contribute to the economic debate for this budget before
we go into Committee of Supply.
One of the things that really fascinates me
about the budget, Mr. Speaker, is how two groups of people can take the exact same set of facts and run in
here, and then basically one side will say, The eco nomy is on the right track, and all of the previous dec isions were on the whole the right ones, you know, except for the time when you were in charge. And
then the other side says, No, the economy is ruined
and it is on the wrong track. And all of the previous
decisions, you know, those are wrong, too, except for
one five- year period.

[Laughter]

And you just sit there and
go, Man, no wonder people stop us in the street and


Bermuda House of Assembly the taxi stand and talk to us. I go back to my earlier
comment about those guys at the gas station who just
said, Politicians talk about the wrong things. The new
one that someone stopped me [with] and said . . . oh,
rather, no. I was watching the show, the Daily Hour , I
think I want to say. And one of the comments one of the people said was, Politicians are addicted to spend ing the public’s money. I just thought that, man,
that stuck the landing. One of the pretences that we
have to do to cert ainly get as worked up as we are
getting in this Honourable Chamber, Mr. Speaker, is
to believe that the public have not already made up
their mind about most of our economy. Like I said, it is
exceptionally difficult to walk more than a block wit hout someone stopping you and telling you exactly
what they think of the economy as it is right now. And
the previous speaker from constituency (I want to say)
17—

Nineteen? The previous
speaker from constituency 19 was saying that people
are stopping him and the governing party and saying
different things. So that is quite fascinating, considering how small the place is, that we are all being
stopped, but being told exactly, I guess, what we want to hear? I hope we are wrong in this one.
To me, Mr. Speaker, the economy just is not
about numbers. It is one of the great flaws, I think,
with the budgeting process. The economy is a social
science. Economics is a social science. It is just as
much about people as it is anything else. And one of
the experiences that I am constantly encountering is
disappointment in the standards and quality of people’s lifestyle, the quality of the health care they are
getting, how difficult it is to move around the Island,
sometimes to get off the Island a lot of times, the quality of housing, how much there is of it, and definitely
food. I think everyone can agree that the price of food
is certainly no easy thing.
And what it feels like, again speaking for m yself and the few who seem to be speaking to me, Mr.
Speaker, is that it is as if we are working hard, but we are staying in the same place, as if we are not actually
moving anything further forward. You can spend some 10, 15 years working. You are thinking you are saving
money. You are thinking you are forgoing some of the
more pleasant aspects of life. You think you are ge tting somewhere. And then your job makes a couple of positions redundant, or something goes wrong with
the health care and the next thing you know you are shopping around for something else. That is definitely
what Bermuda feels like right now, Mr. Speaker.
The Opposition Leader spoke to rosecoloured glasses, I want to say rose- tinted glasses,
and talking about just how favourable the Budget
Statement is, and just how favourable everyone
speaking about it this evening is. And like I said, I am always baffled by how we can look at the exact same
facts and come up with such different conclusions. But
definitely the Bermuda public is working hard and not
feeling the love.
The emigration is the one [thing] that I think is
the most evident or points out just what everyone is thinking. Just in this last year, I lost another two
friends moving overseas, one into the EU and another
into the UK. And it was the same thing that my cousin
had told me the year before. I can’t afford to live here.
One had a special -needs child and was finding it exceptionally difficult to get care. They found they had to
interrupt their employment to pick up at the right
times. And everything was just hard. And they were
already living paycheque -to-paycheque, Mr. Speaker.
So it came time that they had to go figure out a better way to take care of themselves and their families.
And the first time I had heard of someone
leaving the Island to go somewhere else, Mr. Speaker, I was a little baffled, to be fair. I had a friend who
left years and years ago, maybe five or ten years. And
he subsequently tries to convince me to leave every year. He said that things were not looking right, things
were not sha ping up. He had studied overseas and
gotten a master’s degree. And then his wife had a
master’s degree as well, studied overseas and then
worked overseas, did quite well, came back to Ber-muda. And they were just about to settle down, and I think we all set tle down by purchasing a house. And I
guess it was that exposure to being overseas. But
they said, For the amount of money and work that we
have to put in, what we’re going to get out is a shadow
of the effort.
I never really thought about it. And I had a
very negative opinion of that at the time, Mr. Speaker.
At the time I must have, I do not know, done my time
at camp and then I was in the police. And I just always
think of Bermuda as the place that is worth fighting
for. So when I met someone who was not willing to fight for it, I was not quite sure what to make of it. The
math just did not work for me. And every year as I
lose more and more friends and colleagues and cousins and things like that, the math is starting to add up.
Mr. Speaker, I had spoken before about a lot
of people are working hard, but they are staying in the same place. You know, they are not adding to their
bottom line. They are not adding wealth. They are not
making generational wealth. They are barely being
able to pay off the hous e. And that is what the eco nomy feels like. Certainly, I go down to get a cup of coffee in Brew on Front Street in the morning, and I always walk past Crisson’s (or what used to be Cri sson’s). And I grew up in a time in Bermuda where
there was always a cro wd of people outside that buil ding. So it just feels like it is not working.
[Inaudible interjection]

428 24 February 2023 Official Hansard Report

Bermuda House of Assembly Mr. Jarion Richardson: He is gone now. He is gone
now.
And most of all, Mr. Speaker, the one that
really broke my heart was when I joined this Honour able Assembly and I was debating with the Honourable
Minister of Economy and Labour. And he had pointed
out a statistic that half of everyone in Bermuda on f inancial assistance is a pensioner, is a senior. I mean,
that floored me. I never would have guessed that. I
never . . . that shocked me. I cannot think of a thing
less dignified about a country than its seniors being left in such a state.
I then went . . . and my honourable colleague
Susan Jackson involved me in a matter concerning a nursing home. And then I came across the condition of this home and the financial statement of it. And, you
know, it very much had that blame game going for it
as well. This person showed up at this time, this person did something else. I mean, I guess the folks who
ran the place can come here because it was the same
blame game. And of course it was clearly not suitable
for our seniors.
You know, Mr. Speaker, one of the convers ations I had was with someone who was obviously di sappointed and said, We’re tired of plans. We want to see results. That was the one that really got to me.
Mr. Speaker, I want to talk about the debt because I do not think I paid it enough attention as I was
in the earlier stages of my career. And the debt is yet
again someone else’s problem. It was described to
me as, It’s as if you host a dinner party and had a
bunch of people over. And then everyone left, but
when it was time to clean the dishes, to do the dishes
. . . that is what is happening right now, Mr. Speaker,
with everyone leaving Bermuda. As every person
leaves, the debt is going to get worse and worse or
harder and harder to pay off.
One of the other circumstances the debt is
going to make even worse in Bermuda is government
is going to have to collect more and more taxes to pay
for the exact same things. So we are talking about
reforming certain programmes. We are talking about
improving quality of life and things like that. But until we tackle the debt, we are going to have to just keep
raising taxes to pay for the things we have already .
This means that for the exact same education, we pay
more. For the exact same transport services, pay
more, garbage collection, et cetera. And that is even
before we get to actually paying down the debt. We
are very much in a position where we have a credit
card, and like after a vacation it seems that a lot of us
have decided to pay only the minimum balance. And what is going to happen is we are going to wind up
paying two or three times more for that actual dollar
that we borrowed on that credit card. T he Honourable
Member for constituency 19 spoke about . . . oh, this
is a reminder. I am sorry.
We borrowed some $180 million in July of last
year—I am happy to take a point of order on these numbers —then subsequently deposited some of that
into the sinking fund. And then took $50 million out of
the sinking fund, which came from the $180 million we
borrowed, and we were going to use that to pay down
other borrowed money. So we borrowed money from Visa to pay the money that we borrowed from Mastercard is wha t that looks like to me. Paying down this
debt is not academic whatsoever. We have weathered
more than a few black swan events recently. The
pandemic no one could see, the crisis, the last fina ncial crisis. The war in Ukraine is not going anywhere
any time soon. And the macro- economic headwinds
are making life on a small island harder and harder
every year.
The debt is what makes us unable to respond
to another black swan event. That is the problem with
the debt. And that is why it is so important we pay t hat
down as quickly as possible. Not because of an ac ademic exercise, but rather what it does to us when it
sits where it is.
Mr. Speaker, I wanted to speak also about
something I have introduced in other debates, which
is that the devil is in the details . And there are a few
job-killers right now that are in this budget that we r eally want to make sure that we speak to, most espe-cially as it relates to payroll taxes. Because when we
look at payroll taxes in those bands, and this took me
a bit of reading a nd more than a few interviews . . .
when we look at them in the bands, right now we have
a circumstance, for example, where an international
business startup with some three employees, depending on payroll, would have to pay 10.25 per cent.
One of the reasons I bring this up, Mr. Speaker, is that I work in the applications process when we submit documents to the Bermuda Monetary Authority
on a regular basis and set up international businesses
on a regular basis. And one thing that a lot of people do not know is that when you are in that phase of the
business, you typically do not have a lot of money. And the devil is in the details like that. Now, it is a
sliver in a tapestry of taxes. One of the things that just
baffles my mind is just how complex it is to file payroll
taxes and understand them. And this is only one example, but those things are in there. And those things
are job killers.
Equally, Mr. Speaker, when you move through
the bands of the payroll taxes, all of a sudden you go
from paying one amount of money, let us say $1,900.
When you move into the band you wind up paying a
multiple of that amount. You wind up paying som ething like $6,200. It is insidious how deep it is buried in
there. It is one of the problems we have, Mr. Speaker.
You know, th ere is a whole industry in Bermuda that
deals exclusively with filing payroll taxes. And if we
think that collecting taxes is going to get easier, then
we are going to have to attend to the way we are d oing it, because a lot of small businesses take one look
at the filing process and decide, We want nothing to
do with that. And then if they are not prudent, [they] try


Bermuda House of Assembly to avoid it. But if they are prudent, they then have to
spend even more money just to pay their taxes.
Mr. Speaker, I would like to speak al so this
evening to the Economic Recovery Plan. I want to
speak to the Economic Recovery Plan because I do not think it is going very well. And the Honourable
Minister has pointed out any number of times the
website where we can always get an update on the
Economic Recovery Plan. And so I have that up here
on this iPad here. And I look at these ideas. We have
debated this thing to death, and I do not intend to r ehash that. But there are seven things, and I want to
say 31 ideas in this.
And I am going to start with the first one, Mr.
Speaker, because I think it is important when we talk
about the economy and we talk about the budget, we
talk about the efforts we have made to recover the
economy. And the first idea here is launch a casino
industry, Mr. Speaker . With your indulgence, Mr.
Speaker, can I read the last update we have for the
casino industry? Thank you.
“The casino's opening date entirely depends
on the casino operator meeting all legislative requir ements to open and is subject to the Commission’s review and approval.
“The Department of Workforce Development
continues working with casino operators to define em-ployment and training opportunities within the industry
. . .,” et cetera. That is the update as of the 31
st of
January.
And then, Mr. Speak er, the article that I would
like to refer to from the Royal Gazette speaks to . . .
and with your permission, Mr. Speaker, I would like to read again?
The headline says,
1 “Hamilton Princess cas ino plans fold due to time delays.” There is a quote
here, Mr . Speaker, from the President and Chief E xecutive of Century Casinos, Peter Hoetzinger, “which
has been involved in the development for eight years” —eight years working on this project to get this
up and running. [Mr. Hoetzinger] “said that with the
existi ng legislative framework, the company could not
foresee the project being completed in a reasonable
time, if at all.”
Now, the reason I bring that up, Mr. Speaker,
in the Economic Recovery Plan, if we are going to recover this economy, that is a key. I wa nt to say four
key pillars, it was brought up earlier. And the update does not seem to match the information that we have in the public domain.
The reason this causes a problem, Mr.
Speaker, is that it is our Economic Recovery Plan. For better or for wors e, this is actually how we are going
to make things better for the entire country. And we cannot rely upon the information that is actually pu blished online. So I do not know if the Economic R ecovery Plan is working, although to be fair it has been

1 Royal Gazette , 16 January 2023 stipula ted as such in the Premier’s speech, in the
Budget Statement and obviously by the Minister a number of times. The updates for these 31 projects
are all made at the same time. They are very fluffy
and ill -defined. And some of these ideas are really
quite ri sky, very aspirational —everything from medical
tourism to vertical farming to a shoreside fishing plant.
And what this does, Mr. Speaker, is it causes
uncertainty in the economy. And anyone who has
been involved in business knows the last thing you
need i s uncertainty, especially for investors and
stakeholders. And the reason [for that] is no one is
going to put their money or their time into a lost cause.
You do not put your money or time near a project that
is not panning out, that is not working. You ha ve got to
know when to cut your losses. The theory of —what is
it, sunk costs? —does not actually play out very well in
the business world. That is, that you just keep thro wing more and more money at something, assuming it
is going to get better sooner or later.
And right now this management process for
the ERP [Economic Recovery Plan] shows that a
number of these problems are being left unaddressed. And again that underlying condition creates a lack of
stability and faith. That is what . . . that doubt is w hat
is going to scare away money. So the ERP has been
operating for some time. It is supposed to be making everything work better in our economy. And there are
a number of projects in it that the public just do not
have confidence in. And we are going to have to
work —
[Inaudible interjection]

He makes stuff up. Thank
you.
So to that end, thank you. That is my contrib ution on ERP.
I want to speak to immigration. It has now
been established that our ageing demographics and
reducing working population has created a circumstance in our economy, most notably emigration. This
problem was seen years and years ago. And without a doubt, Bermuda cannot afford to lose any more people. When the problem was first raised politically, at
least t o my mind, it was essentially a question of national policy rather than politics. And as the issue was
addressed and tried to get resolved it got quite hot.
Immigration is a hot topic. It is an emotional topic. There are a lot of people who have been hard- done -
by by previous immigration policies in Bermuda. And when the circumstances that we are attending to t oday were tried to get dealt with last time, it raised quite
a problem.
Mr. Speaker, with your indulgence, I would
like to read from the Premier’s Bu dget Statement.

[No audible response]

430 24 February 2023 Official Hansard Report

Bermuda House of Assembly Mr. Jarion Richardson: This is on page 22 under the
heading Growing the Residential Population. “ Mr
Speaker, the Honourable Member, the Minister of
Economy and Labour, has made it painfully clear what
will happen if we are unable to grow our working
popu lation. Instead of further reductions in taxes as
we are able to deliver in this Budget due to our economy growing and our working population expanding . .
. an increase in taxes will mean an increase in the
cost of li ving in Bermuda, something that we know
Bermuda’s residents and businesses cannot afford.
“But, Mr Speaker, it is important that Honourable Members in this chamber today, and those who are listening . . . understand the difference in a pproach between this PLP Government and the Opposition. ” He goes on to say that the difference is “this
Government has carefully and methodically engaged
in wide consultation when dealing with reforms to
Bermuda’s immigration system.”
This takes us to what happened before when
we tried to fix immigration. It got so hot. There were so
many protests —I think the phrase was ‘civil disobedience’ —that the entire matter got dropped, and it is not
getting picked up until 10 years later. When I took the
job of Shadow Minister of Economy and Labour, I was
very lucky I had come across a file, a number of files
in fact, related to immigration and the previous at-tempts to fix the immigration problem in Bermuda,
reform immigration. And I was very, very lucky. And I
also learned that there w as a huge amount of doc uments that were left over for the current Minister to
review.
One thing that came to my attention was that
this problem has had a lot of research over the years. It has had a lot of political backwards and forwards. It
has not been written on the back of a napkin. This has
been, in fact, assessed, reassessed, discussed, r ediscussed, and beaten to death. There is nothing but information as it relates to immigration in Bermuda at
this point.
So, fast forward to my involvement in the ma tter and the Honourable Minister from constituency 17 bringing up why we have not contributed to the bipar-tisan committee. Mr. Speaker, we have contributed to
the bipartisan committee in the past. We obviously
undertook a lot of research into immigration . Again, it
was not written on the back of a napkin. More than a
few people were thrown at the problem. And more
than enough research has been done. It is my opinion
that the Minister is now well -equipped with all the i nformation required to make a decisio n on how to pr oceed at this point.
I was recently asked by someone in the media
who was asking for comments on the Honourable
Minister’s comment (Lord knows what it was), and I
said the OBA looks forward to the alternative to the
pathways to status. That is a genuine statement, Mr.
Speaker. I really look forward to it. I think that enough
information is present that we are now able to proceed with substantive and comprehensive immigration r eform. And when that happens, we will again critique and participat e in the way that an Opposition does.
One of the reasons why I am loathe to contribute to yet another committee to talk about even more imm igration is because we have been on these commi ttees before. We have talked about it and this line does
not seem to m ove anywhere. And rather than spend
more time talking about something that, again, I think
we have exhausted, I would rather that we present the
solution —or as it were, the alternative—and then just
get on with having that debate.
Mr. Speaker, at this poi nt, I would move on to
a few different items. As it relates to solutions, we have to move on with tax reform. We definitely have to
spread the load right now. There are 30,000 people
working in Bermuda at the time (again, I stand to be guided by a point of order if anyone wants to do that)
with only 4,000 in IB. And yet, IB contributes 44 per
cent of payroll tax. So, it is clear that as we are losing
people . . . and we are not tracking the people who
are leaving . . . as we are losing people, we are going
to have to spread out this tax burden more and more because, as I was saying earlier, with the debt we are
going to have to keep paying more and more for the
current services that we already consume. So, it looks
like if we do not get on with immigration r eform, then
we have to get on with tax reform. But ideally we
would not want to get on with them all at the same
time.
My second to last point for tonight, Mr.
Speaker, is if it ain’t broke, don’t fix it. There are a
couple of points. The disputes that we have seen with
the farmers and fishermen last year were dishearten-ing. And we know that in the ERP (Economic Recovery Plan) there are a number of matters that relate to
them —vertical farming for the famers and shoreside
fishing plant for the fishermen. But this relates the
same to bankers. We really need to stay out of the way of the experts and let the experts do what they do
best and support them in their commercial enterprises
because they are the ones providing jobs. They obv iously have to be well -regulated and overseen, but that
is not the same as competing with them or neglecting
them in any way.
Mr. Speaker, I just wanted to also speak
about the PATI requests. I do not agree that we
should go charging commercial organisations to make
PATI requests. I take the point of the Government that
one PATI request costs $300,000, but that did not
provide any context as it related to any other PATI request either by volume or value. And so I find it very
hard to justify the risk to threaten an organisation that
actually has the capability of making complex, lengthy
PATI requests and then getting that information out
and then digesting that information. Anyone who does
work with these information requests as I do knows that it is one thing to ask for it; it is a whole other thing
to get it digested and work with it.


Bermuda House of Assembly And lastly, Mr. Speaker . . . I did not think that
I would take this long . . . I would encourage the Go vernment to signal to the public the shared punishment
that they are all going through. A great example would
be to get rid of the minist erial cars and get a bus pass,
maybe some of the other government cars, but def initely curtail the oversea s travel. Obviously, the i mpact would be almost minimal if not nonexistent to the actual economy. But it is a n unfortunate circumstance.
So, one of the alternatives I would provide would be, for example, to pool government cars, to pool minist erial cars and things like that. But certainly, right now it
does no good identifying with the public when we currently ar e feeling the pain like that.
Thank you, Mr. Speaker. Have a good night.

Yes.
Hon. Tinee Furbert: I just wanted to speak to the
PLP’s Budget Statement because we were in great
anticipation and excitement in regard to what this
Budget Statement would bring. Because we had done
our consultation in the community with the Pre- Budget
Report, people were wondering what was going to be
the outcome. And I remember the Premier coming
and saying that we are doing pretty well, that we do
not have to increase payroll taxes to what we thought
we would or had reported in the Pre- Budget Report.
And so, I am sure people of our country —employers
and employees —are grateful that this did not come
into fruition, because we are a Government that does
care about our people and does listen to our people.
I did get a bit of comment particularly with the
OBA’s press conference right after our Budget Stat ement. And you know, it was very mellow and sad. And you know, we have so much to be glad for as a coun-try. There are countries, Mr. Speaker, that are going
through much strife. You see in the global media the
natural disasters that are happening in some other
countries and nations with the earthquakes and t he
fires and the floods and the catastrophes that we see with hurricanes. We see countries, particularly in Afr ica, where there is child labour and there is human
trafficking and there is much poverty and there are
children who are marrying early, Mr. Speaker.
And Bermuda . . . I just have to say that we
are blessed; we have been blessed that we have not had the catastrophes that many of these other cou ntries are experiencing. So we must always give thanks. We must always give thanks. I was in church
last week on Saturday, and the pastor was speaking
and he was saying, Mr. Speaker, everyone is talking
about Bermuda and its wealth and the costs are going
up and I don’t want to stay in Bermuda anymore . And
he was just saying it is a choice; it is a reflection, but that he loved his country home and that he would do
anything to make it better for someone else in this
country. And so, I am sure cousin would say that
wealth actually is in what we feel in our relationship
with our Saviour.
But people, Mr. Speaker , are fleeing their
countries because of poverty, and here we have pe ople fleeing their country for a country that is pretty well off. People leave. People are not just leaving for po verty. People are leaving for many different opportuni-ties. They are leav ing for education. [Even though] we
have an institution, Bermuda College, as well as they
do they are limited with their programming. So, people
leave for opportunity for education.
I believe Member Richardson just mentioned
people are looking for opportunity to have better access to health care. People are finding reasons to
leave. For many, maybe they are leaving because
they do not have good relationships with their families,
you know. So, people leave our country for many reasons. It is not just becaus e of poverty. It is not just
because of the cost of living. Because if we studied the demographics around this world, we would know
that the cost of living is high in many places. So we
cannot just single out Bermuda in that aspect even
though we do know t hat Bermuda does have a high
cost of living. We also have high salaries amongst our
people as well.
What we must not do as a Government, Mr.
Speaker, is put a blind eye to the issues and concerns
that our people do have. And I think as a Government,
we hav e not. We have filled in many gaps. We conti nue to assist our people. Other Members have mentioned that we are investing in our housing. Colonel
Burch will speak to more, I am sure, of what we are
doing with putting funds toward the Bermuda Housing
Corporation and increasing our inventory of the housing that is out there with 77 homes. We are providing
mortgage relief. We are investing in the Bermuda Economic Development programme. You would have
seen in the news where we have increased our complement of av ailability to homeless shelters through
the Salvation Army. And this Government does also
support charities that help with our homeless dem ographic.
And I just want to make mention that people
just come into poverty are those who are homeless. In
fact, yo u will note that many of the people on our
streets are not necessarily homeless where they do not have anywhere to go because maybe they are
choosing to live on the streets or there are issues as-sociated with mental health in which people find
themselves on the streets. But this Government is not
432 24 February 2023 Official Hansard Report

Bermuda House of Assembly not doing anything. We will continue to help those who
find themselves in situations of social ills and poverty.
I just want to take the time now to speak to
seniors because we are definitely a Government who
cares about our seniors. And that was greatly demonstrated when we said that every year we will increase
our seniors’ pension to the rate of inflation. We have
demonstrated this and we have done this, Mr. Speaker. I just want to give a bit of statistics because I also
want to show that we are a Government that has done something in regard to our seniors. If we take a senior today who is 90 years old (and today it is 2023) they
would have been born in 1933. And we know back
then, our seniors started to work very young. So, they
worked, maybe some, I know they worked at age 14,
starting to go to work at 14.

Back then we did.
Hon. Tinee Furbert: Eight and nine So they would
have had a long, long time in the workplace. But if we
also would evaluate what their salaries would have been like back then in a time where there was racial discrimination, in a time where there was not equal
opportunity, you know, in a time when it was a hustle
nation. Bermuda still is a hustle nation because people are still trying to get by. Back then someone who
would have saved . . . and back then many people
would have worked not for a decent salary, but they
would have worked to try to get by.
So, over the years, of course, you know many
people fought for many things. The unions fought for
our salaries to increase. You know, there were many
things that were fought for so that we can experience,
as a country, economic growth. But many people back
then still did not have the means, and many were not
paying into pensions. Right? So, employers would hire
people and they were not paying into pensions. So,
we have many people today who actually do not have a pension because they worked for people who were
not paying into a pension plan.
So, the PLP has been very progressive in r egard to reminding employers of the importance of pa ying into pensions. And we even did something that benefited throughout COVID -19 and we had mandated private pension. And throughout COVID -19, that
was a big help for many people. And so, when you
look at things that were implemented years ago and how they can be helpful to people years later, those
are progressive items that we should be very proud of,
because many people throughout COVID -19 had the
opportunity to be able to go into their private pensions
to help them for many reasons.
But the PLP mandated private pensions, were
encouraging people to pay into their social insurance. We also are undergoing pension reform because thi s
is important to make sure that our seniors ––[We hear
some say about the PLP] we are not doing anything in
regard to our seniors ––so that people are more prepared and there are funds that will be available for
seniors as we age. We also introduced FutureC are
and increased the benefits of FutureCare and HIP.
And again, I have to say and I have to remind the
country about our commitment to increasing a pe nsioners’ pension at the rate of inflation.
Mr. Speaker, I want to also let the country
know that this G overnment spends a huge amount of
money as it relates to our seniors. There was a compilation done in 2017, 2018 in regard to the long- term
funding that this Government provides. And gover nment departments and grants in 2017, 2018 . . . and I
am sure you w ill hear more about it from our colleagues as we go through the Budget Debate, that
government departments and grants spent $25.5 mi llion. The long- term care subsidy was $29.8 million.
War vets was $4.47 million, Mr. Speaker. And within
Financial Assistanc e itself, financial assistance for
seniors, $23.1 million, and the disabled $11.4 million.
And out of the HID long- term care claims, $9.87 mi llion, Mr. Speaker.
So where there is a deficit in persons’ pensions not being able to cover expenses, this Gover nment has spent huge amounts of subsidies in helping
our seniors. Mr. Speaker, the older we get the [more]
our dependency [increases]. You know, the older we
get. So, if we are 70 and you end up living to be 90,
we have changes in our bodies, we have changes in our health, and it just increases our dependency levels. And so, we will find that with that increase in d ependency levels, a senior will require more care, more access to health care. And we are not a Government
that denies this. But we are a Governm ent that does
assist in that capacity.
Mr. Speaker, I just want to speak to our economy, our status, you know. And just as a recap . . .
and many of us may already know this, but as a r ecap, because we have to be reminded, particularly
when we are talking about the economy, that the
higher your class is, the more power you have, the more status you have, the more influence you have. And this over the last many, many, many years has
been a massive drive toward many social changes
and social policies and soc ial revolutions.
Also, the definition of classes has changed
over the years. I want to speak to a famous economist, Mr. Kyle Marks, who spoke to a class of those who have means for production or those who basically
have all the physical and monetary things that they
need to be able to make money, such as factories,
tools, real estate, computers, businesses, inves tments. And these people who own this sort of stuff can simply make money off of the profits that they get from renting or investing in this production, which
means that they do not necessarily have to work to be


Bermuda House of Assembly able to survive. A friend of mine called it making money as you sleep.
The upper class refers to the very wealthy
people and very powerful people in society, and they
are those who would be considered in the top per-centage of our population. Defining the middle class
on the other hand is a little trickier, Mr. Speaker, and it
includes people who work in high- status jobs, and
they have jobs that are a little bit more secure and
stable. And t he lower class, Mr. Speaker are those
who work. They have to work. We all have to work to
be able to survive, but these are people who are literally having to work paycheque to paycheque. They
cannot save. They may even be in a huge amount of
debt, and the y have low wages and insecure jobs.
But we all, Mr. Speaker, have value whether
we are high earners or low earners. We all have value in this economic land because we all contribute to the
economy and we all spend money. We take our youth,
for example, who get you to buy things for them for
birthdays or Christmas, and when you go into the gr ocery store, you know, you have to feed your children.
You spend money on education; you spend money on
extracurricular activities. Adults . . . we spend money
by way o f paying a mortgage or paying rent, college
fees, also food. Seniors spend money predominantly in the healthcare industry, but they also contribute to rent and being consumers and buying things and participating in different services. So, we all spend money, Mr. Speaker, and it is important to make sure that
we are uplifting people and we are supporting people
who do not have as much as those people who are
high earners. So, we all have a role in this, Mr. Speaker.
I want to speak to cultural capital. And cultural
capital, Mr. Speaker, is a concept that was developed
by a sociologist, Mr. Pierre Bourdieu, and he spoke
that the levels of class are determined by the attai nment of a specific set of knowledge, behaviours and
skills that allows a person to navigate in society. And I
think it is very important in regard to creating a cultural
capital. And the first thing I can think of, Mr. Speaker,
is that of how we have demonstrated our commitment to education, how we have supported scholarships
through the Mini stry of Education, supported funding
through the Bermuda College, supported funding and
opportunities through Workforce Development and
supported funding through the Ministry of Health for
scholarships. And this shows that as a country we are
putting our p eople’s education first.
So, if we look at cultural capital and the i mportance of education to this Progressive Labour Par-ty, we will see the benefits of this in the years to
come. We will see the economic growth. We will see
the economic opportunity beca use we are putting
funds toward education, not only through scholarships
and financial funding, Mr. Speaker, but also through
education reform. Mr. Speaker, we are also as a country doing
much for small business. The BEDC, Mr. Speaker,
provides 14 product s and programmes that support
small business and Bermudian entrepreneurs. They have been providing financial support to entrepr eneurs at every stage of their business. Actually, today
I was speaking with a young lady, and she was telling
me how the BEDC was helping her more recently with
a loan so that she could invest in some products to
help with her profession. And so, we have supported
persons —business owners —in direct lending of up to
$30,000, Mr. Speaker, and loan guarantees to support
up to $200,000 of an approved loan from a financial
institution. And this is what we are doing, Mr. Speaker.
We are also providing educational support
through workshops and guidance for business developments including startups including validation of
businesses and financial literacy.
We are also providing business development
support to supplement the educational support. And
you will know if you have heard much about BEDC
that they provide an incubator and an accelerator pr ogramme to provide additional hands -on guidance and
support. Loan guarantees —we have provided over $3
million in funding to assist small businesses and en-trepreneurs, and microloans, Mr. Speaker. Throughout COVID -19, we have provided loans and grants to
a total funding of $1.3 million, Mr. Speaker, and even assisted with emergency grants to businesses to pr ovide assistance through hardship support to the tune
of almost $500,000.
So, this is what we have done as a Gover nment, Mr. Speaker, to provide for small businesses in
our economy that provide support and services for
people in our community. These are all very important
programmes and services that help with our economic
growth.
But we all have a role to play, Mr. Speaker, in
investment in Bermuda. We all have a role to play.
And sometimes I real ly do not like the atmosphere of
politics and what it can bring because you know Go vernments can be doing some very good things but there is always something bad about it, Mr. Speaker.
And we share this messaging in our community. Bermuda, being such a small community, can have a det-rimental affect on investors wanting to come and i nvest in Bermuda. And so, we must continue to support
investors, Mr. Speaker, who want to come and help
with our economy and securing our economic growth.
So, the Honourable Premier and the Honourable Minister of Economy and Labour, Mr. Jason Hayward cannot be the only persons who are bringing
up Bermuda as a country to come and invest in while
the rest of us are complaining. We have a duty, Mr.
Speaker, to bring investment to Bermuda and to encourage people to bring investment to Bermuda, and
this includes the Opposition. We have to continue to network, network, network.
434 24 February 2023 Official Hansard Report

Bermuda House of Assembly I want us to know as Bermudians that we
make choices and we have choices. And people will
process in their br ains what options they have avail able to them. And I think it is a good exercise to always reflect on your life experiences and where you want to be and how you should progress and what is the type
of life that you want to have because the world is
global, Mr. Speaker. And people will find that if you
cannot get it in Bermuda, you can surely find it som ewhere else. But for those people, Mr. Speaker, who
choose Bermuda . . . for those people, Mr. Speaker,
who choose Bermuda, I think the PLP Government
has demonstrated time and time again that their only
choice, Mr. Speaker, is the Progressive Labour Party.
We are supporting our people the best way
we can. We are making predictions about our economy. We are providing support for our seniors. We are
providing support for people who are living in poverty.
But we are also encouraging people to be civil and
also to take civil responsibility in their actions. We
want people to be responsible and to contribute to our economy in a positive manner. And that is what we
will see with positive increases in our economic growth.
Mr. Speaker, when we talk about debt, debt
can be concerning. But debt can also be good. And I think we have demonstrated as a Government that we have been able to manage our debts. We pay our
debts . Any banker will tell you that you need debt to
be able to build up your capacity and for people to
trust you to be able to provide more funding to you.
So, you need debt. So, debt is not always a bad thing
as long as you are staying on top of your debt a nd you
are continuing to pay. So, the Opposition cannot continue to use debt as a reason for why this country is
failing. We cannot continue to use that as a reason,
because I am sure that if we went around the table to
each and every one of us, we would f ind that we are
all in some sort of debt.
And you also would know that message of
debt did not win you the election of 2017 nor did it win
you the election of 2020. And people have trust in the
Progressive Labour Government as a People’s party that we would do the right thing and be good citizens
in taking care of the money in this country.
And I will end on that, Mr. Speaker. Thank
you.

Thank you, Honourable Member.
Before we recognise any other Honourable
Member, let me just draw everyone’ s attention to
Standing Order (19)(14)(3) that once we have passed
the seven hours of any debate, the time for speeches
is limited to 20 minutes. We have now passed that.
We are passed those seven [hours]. We started this
debate at 10:56 am. We went until 12:30 pm. That is
an hour and 34 minutes. And at 2:00 pm, we conti nued. And you add five hours and 26 minutes to that, that takes us to 7 [hours and] 26 [minutes]. So, we are going past the magical seven- [hour] mark, and from
now on all speeches will be li mited to 20 minutes i nstead of 30 minutes.

[Inaudible interjection and laughter]

And I can attest that whenever he is in the House, whether for good or bad, he
will make a difference. That is for sure.
I think I want to kind of adjust the tack here.
And I know that sometimes when I get on my feet, people are expecting a bit of controversy and a bit of
to-and-fro because I actually enjoy it. I enjoy listening
to the comments by the Government as well as the Opposition. Because there are different approaches to
the subject matter at hand, and that is the Budget.
I wanted to just qualify something real quick
before I get into much of what I wanted to say. I was
not quite sure on page 43. I am hoping the Premier
clears this up. Well, maybe a colleague here can. He
mentions about the number of persons employed by
Government of Bermuda. And on the bottom of that
page of the Budget, it says a difference of [ -]178 ind ividuals and that the savings was $338,43 1. It does not
quite add up. If you take the 178 and divide it into the 300-plus thousand . . . I do not even know what that is
. . . about 1,300 (somewher e around there) annually.
And so, I was hoping that he might give us some kind of qualification as to if we are losing 178, it certainly
must qualify for more than that in savings.
I do not know if it is a typo or what. And I was
hoping that at some point in time we can qualify it. But
I will say to the Honourable Member, as an entrepr eneur, you have to know your numbers. And that is why
I was smiling when accountants get up and I hear


Bermuda House of Assembly some of the things that I have heard even today that I
consider to be quite questionable.
I will start off by saying I will give accolades to
the Minister of Transport for getting that Boston flight.
I think that was one of the major sticky points. What I would like to know is whether or not a guarantee was
put in place. And I think that is just a simple answer. If
he had to do it, he had to do it. We recognise that in
this predicament and in this environment, sometimes
we are having to do certain things that maybe some
might think are unlikely, in order to get things moving. But I would much prefer to see that we have a flight in
place, even if we have to do that, to ensure that we
are getting more people to our shores, because at the
end of the day, that is the real issue.
The real issue at the end of the day is that . . .
Look. I will be frank with you. I am not for more taxes
at this point in time. What I am for is for more people.
And so what we need to do is find more people. I already stated my case. I am not for more taxes right
now. I am for growing the economy by ensuring that we get more people to the table. Now listen. It is clear
that we have to decide on whether or not we do certain things when it comes to budgeting to balance the
budget. And I recognise also that the international
community clearly stated that the y do not mind paying
more when it comes to their airline tickets. And so,
leaders will have to make decisions —sometimes unpopular and sometimes popular. And I would tend to believe that this Government should know that by
now. So, when it makes its decisions, they are not
always going to be popular, but they are trying to get
to an end here or get to a means of balancing the budget. What I do not agree with is that we continue
to push down the road the balancing of the budget.
And I say that for a reason because the stakehol ders—

[Inaudible interjection]

Next year. Maybe next year.
It has been put off and put off. Maybe next year. That is not an unqualified statement. No, it is not. So, let me . . . let’s give you a little schooling then. All right?
So, the Honourable Member . . . and I really
appreciate the Honourable Member . . . Listen. I think
more of his members need to take a page out of how
he spoke. He spoke actually, for his members. Now, I
differ when he says about what m ight need to happen.
He might need to consider really looking at his own seat and being careful that he gets into his own seat
because the PLP might lose a very good speaker in the House. So, they might need to switch him som ewhere else, because I can assure you that seat for
sure is up for grabs.

[Inaudible interjection]

It is important, Mr. Speaker
. . . We have a really good gallery in the back there.
They have been waiting to hype up there. They are all
together there. They are having a good time over
there. I love them too.
But what I am about, Mr. Speak er, is I am
more for making Government more efficient. And just
as the Honourable Member Richardson said that . . .
you know, what was the word he said? “They say.”

I think there is this undercurrent tha t the OBA is looking to do away with the eff iciencies of the civil service and do away with people.
That is so far from the truth. I remember when we won
Government at that time. That was the cloud hanging
over the OBA that they are going to get rid of all those
people. That is not the case at all. So, the civil service
saw a completely different approach to how we felt
efficiency should be put in place. And so, I am for a
more efficient Government, and I believe that this
Government has plenty more to do i n that area in becoming more efficient. Now, it is up to them to decide
on where those efficiencies are put into place. But at the end of the day, we need more people here paying
into the tax budget coffers, and we need to be more
efficient.
And why do I s ay that? I say that because it
feels like we are on a race to zero when it comes to
taxes. We are doing away with certain duties on things. We are doing away with taxes here. We are
lowering them and the likes. And that is all fine and
dandy. But if we are lowering the taxes at a rate that
our revenues are not increasing fast enough . . . and
understand that they cannot be done equally. You
cannot decrease taxes by $5 million and say you are increasing revenue by $5 million. You are not making
any headway. The revenue has to be ramped up. And
I believe that this Government has the intellectual capital to move faster than [they are]. It has the intellect ual to move faster. What I am imploring upon the Prem-ier is to take advantage of the intellectual capital t hat
he does have and move faster.
436 24 February 2023 Official Hansard Report

Bermuda House of Assembly See, Bermuda and Bermudians are concerned not because the PLP does not have good ideas or that the OBA, for that matter, does not have
good ideas, but it is the pace at which we are moving
that is concerning them. And that is why we see the trickling away with people looking for other areas
where they can thrive. Middle class is becoming
smaller and smaller and smaller. I am not saying the
poor. I am concerned about the middle class that is
dwindling away here. That is my concern. Because it
is the middle class that has the ability to earn a fairly decent wage, go out, buy things, and also when they
need to come to the rescue of cousin, they do. But if
we do not ramp up our revenue stream at a higher
rate than we are loweri ng our taxes, we are in for hi tting, as I said to the Premier, a brick wall. Now, some
may feel like they have hit the brick wall. Some may
feel like , Okay . We have opportunity here.
I mean, we have watched the Premier as he
delivered this Budget and did his victory lap after. He
is quite pleased with the Budget. And quite frankly, a
week later, [we heard] stakeholders slam the Budget.
That is not to say that there was not any good in the
Budget but there are some overriding factors that are
affecting us and our efficiency in thriving. And one of
the biggest of those is the debt and the liability that we
have and the cost of living.
All you need to do is read the articles from
representatives from ABIC and ABIR. They were very clear. And I know the Governm ent wants to talk about
how international business is doing so well. And I
think some of us who have been around maybe a little
bit longer than others . . . I certainly have not been
around for 20 years. We are in 11 years, going on 12
years. And I recogni se that at the end of the day, if we
do not find a clear way of making our own people
more comfortable, we are in a perpetual dive into hi tting a brick wall.
As I said, I am not saying that we cannot
glean some good ideas. And quite frankly all of this nonsense about give me some good ideas and this
and that . . . a lot of ideas have been passed back and
forward. Whether or not the Government takes them
up, that is on them. It does not make sense for me to
open the Budget book and then I see, Well, we coul d
not do this because of the OBA (and it is about eight
times) and we could not do this because of Morgan’s
Point and we could not do this because of that and we
could not do this because of this . Listen. Take on the
responsibility that it is in your hands , just like we had
to when we had no money, and get on with it. There is
no one on this side of the House who is going to squabble over the fact that you are working overtime
to get higher revenue into this Island.
Southampton Princess is a classic exampl e of
taking far too long. And if it is going to take that long,
just be transparent [and] say why. Everybody is like,
What is going to happen; what is going to happen?
We raced that legislation in the House. Put it through that . . . No, we all raced it through to ensure that it
gets done.
Listen, Mr. Speaker. We got the legislation
through—

[Inaudible interjection]