Health Minister Kim Wilson presented the Ministry of Health's budget for the 2022/23 fiscal year, totaling approximately $73 million across four budget heads. The largest budget increase was for Ministry Headquarters, rising 69% to $15.9 million primarily due to continued COVID-19 response needs. Minister Wilson emphasized that the pandemic is not over and Bermuda must remain vigilant while also progressing toward universal health coverage through the Bermuda Health Plan.
Ministry of Health budget presentation for 2022/23 fiscal yearCOVID-19 pandemic response funding and operationsUniversal health coverage initiative and Bermuda Health Plan developmentBermuda Health Council operations and health system regulationDepartment of Health programs including health promotion and wellness
Bills & Motions
Motion to resume Committee of Supply for consideration of 2022/23 budget estimates - passed
Ministry of Health budget Heads 21, 22, 24, and 91 taken under consideration for debate
This was the opening session of detailed budget debates, with Minister Wilson beginning her comprehensive presentation of health ministry spending priorities and programs.
Notable Moments
Minister Wilson reported over 11,000 COVID-19 cases and 123 deaths in Bermuda to date, with vaccination teams having administered over 125,000 doses
The government is spending approximately $30 million annually on dialysis for 200 patients, with kidney transplants potentially saving $700,000 per patient over 10 years
A minor discrepancy was noted between budget documents regarding SART (Sexual Assault Response Team) funding ($9,000 vs $10,000)
Debate Transcript
203 speeches from 13 speakers
The SpeakerThe SpeakerGood morning, Members. It is now 10:00 am. We are just waiting for the Sergeant to come to the door and we will be starting. Sergeant -at-Arms: Mr. Speaker.
The SpeakerThe SpeakerThank you, Sergeant -at-Arms. Members, the House is now in session. We will start with the morning prayer. PRAYERS [Prayers read by Ms. Shernette Wolffe, Clerk]
The SpeakerThe SpeakerThank you, Madam Clerk. Members, we are now in session. CONFIRMATION OF MINUTES
The SpeakerThe SpeakerThe first Order on the Orders this morning is the Minutes from the last sitting, which was the 4th of March. Those minutes have been deferred for confirmation. MESSAGES FROM THE GOVERNOR
The SpeakerThe SpeakerThere are none. ANNOUNCEMENTS BY THE SPEAKER OR MEMBER PRESIDING
The SpeakerThe SpeakerThere are none. MESSAGES FROM THE SENATE
The SpeakerThe SpeakerThere are none. PAPERS AND OTHER COMMUNICATIONS TO THE HOUSE
The SpeakerThe SpeakerThere are none. STATEMENTS BY MINISTERS AND JUNIOR MINISTERS
The SpeakerThe SpeakerThere are none. REPORTS OF COMMITTEES
The SpeakerThe SpeakerThere are none. QUESTION PERIOD
The SpeakerThe SpeakerThere are none. CONGRATULATORY AND/OR OBITUARY SPEECHES
The SpeakerThe SpeakerDoes any Member wish to make a contribution at this time? There are none. MATTERS OF PRIVILEGE
The SpeakerThe SpeakerThere are none. PERSONAL EXPLANATIONS
The SpeakerThe SpeakerThere are none. NOTICE OF MOTIONS FOR THE ADJOURNMENT OF THE HOUSE ON MATTERS OF URGENT PUBLIC IMPORTANCE
The SpeakerThe SpeakerThere are none. INTRODUCTION OF BILLS
The SpeakerThe SpeakerThere are none. 544 7 March 202 2 Official Hansard Report Bermuda House of Assembly NOTICES OF MOTIONS
The SpeakerThe SpeakerThere are none. ORDERS OF THE DAY
The SpeakerThe SpeakerThat now leads us, Members, to the purpose for our sitting today, which is the actual start of the Budget Debate. For the listening audience, the last two weeks we have done the Budget presentation and the Budget Reply, which concluded with the open economic debate on Friday. Today we …
That now leads us, Members, to the purpose for our sitting today, which is the actual start of the Budget Debate. For the listening audience, the last two weeks we have done the Budget presentation and the Budget Reply, which concluded with the open economic debate on Friday. Today we start the individual debates on the department heads that are down for the debate today. For the public, the listening audience, again, each day is scheduled for eight hours of debate on the particu-lar heads that are going t o be debated on that day. For those eight hours the House is in Committee of the whole House, which means that the Speaker will not be present during that eight -hour period. When we are in Committee the House is chaired by [a panel of] Chairme n, which is headed by the Deputy Speaker . His panel of chairs will relieve him during the particular debates. The proceedings will not resume in the House until the eight hours are over. At that time the Speaker will return to the Chair. So, during this next eight -hour period you are in the hands of the Chairman, the Deputy Speaker, and his panel of chairs. We now call on the House to resume the debate on the Estimates of Revenue and Expenditure for the year 2022/23, and at that point they will be in the hand of the C hairman for the rest of the day. Mr. Premier, would you like to move us in?
Hon. E. David Burt: Thank you very much and good morning, Mr. Speaker.
The SpeakerThe SpeakerGood morning. Hon. E. David Burt: Mr. Speaker, I move that the House do now resume in Commit tee of Supply to consider the Estimates of Revenue and Expenditure for 2022/23.
The SpeakerThe SpeakerAre there any objections? There are none. This morning is it MP Foggo ?
The SpeakerThe SpeakerMP Foggo is in the Chair this morning. MP Foggo is one of the Members that sit on that panel of Chair men that I just referred to. And she will be chairing the first session this morning. So, the House is now going into Committee and it is in …
MP Foggo is in the Chair this morning. MP Foggo is one of the Members that sit on that panel of Chair men that I just referred to. And she will be chairing the first session this morning. So, the House is now going into Committee and it is in the hands of MP Foggo as the Chair man. MP Fo ggo, you now have the mike.
Ms. Lovitta F. FoggoThank you, Mr. Speaker, and good morning to you and good morning to Members and good morning to the listening people of Bermuda. House in Committee at 10:0 7 am [Ms. Lovitt a F. Foggo, Chair man] COMMITTEE OF SUPPLY ESTIMATES OF REVENUE AND EXPENDITURE FOR THE YEAR 202 2/23
The ChairmanChairmanHonourable Members, we are now in Committee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year 2022/23. The Heads 21, 22, 24 and 91 are now to be debated. And this is under the Ministry of Health. So, I, therefor e, call on said …
Honourable Members, we are now in Committee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year 2022/23. The Heads 21, 22, 24 and 91 are now to be debated. And this is under the Ministry of Health. So, I, therefor e, call on said Minister in charge to proceed. Minister, you have the floor.
MINISTRY OF HEALTH Hon. Kim N. Wilson: Thank you, Madam Chairman, and good morning. To initiate consideration of the Heads, Madam Chairman, I move that the following Heads: 21, Ministry of Health Headquarters; 22, Department of Health; 24, Hospitals; and Head 91, Health Insurance be tak-en under consideration.
The ChairmanChairmanThank you, Member. Hon. Kim N. Wilson: Thank you, Madam Chairman. I am here today with great pleasure to present the Budget for the Ministry of Health overall, starting with Head 21, the Ministry of Health Headquarters, found at pages 149 to 154 of the Budget Book. HEAD 21 —MINISTRY …
Thank you, Member.
Hon. Kim N. Wilson: Thank you, Madam Chairman. I am here today with great pleasure to present the Budget for the Ministry of Health overall, starting with Head 21, the Ministry of Health Headquarters, found at pages 149 to 154 of the Budget Book.
HEAD 21 —MINISTRY OF HEALTH HEADQUARTERS
Hon. Kim N. Wilson: Madam C hairman, the mandate of the Ministry Headquarters is to make Bermuda healthier.
Expenditure Overview Hon. Kim N. Wilson: Madam Chairman, the Headquarters allocation constitutes approximately 8 per cent of the budget allocated for the Ministry as a whole. A total of $15,890,000 has been allocated for this Head for 2022/23, which represents an increase of $6,482,000, or 69 per cent, over the original budget of 2021/22. The majority of the change is due to right - sizing the pandemic response budget. The fundi ng will allow the Ministry to continue to have in place the ser-vices required and the mitigation efforts needed for
Bermuda House of Assembly the COVID -19 virus, inclusive of the operations of the Bermuda Molecular Diagnostic and Research Laboratory. Bermuda, the pandemic is not over. We must remain vigilant and prepared and not let our guard down. Therefore, the increase in funding will provide for any actions we must take for the potential onset of new and dangerous variants and to even manage the so-called “non- dangerous” variants that could still cause deaths. I will now speak on each of the sectors and business units under this Head, Madam Chairman.
General Administration and Corporate Services
Hon. Kim N. Wilson: Madam Chairman, the business unit 2101, General, comprises a team of 10 persons and a budget largely dedicated to grants, the national health emergency for the COVID -19 pandemic, and the universal healthcare initiative. Over $3.6 million of the unit’s total budget of $14.678 million is for grants, and $7.8 million i s for the national health emergency. Three point three million dollars is the balance which supports the strategic and operational compo-nents of the Ministry through the accounts section and our corporate services policy directorate. Madam Chairman , under head 31000 General Administration, the Government is committed to a healthier Bermuda, which is reflected in our commitment to universal health coverage. The aim is to ensure equitable access to necessary healthcare services, contain healthcare costs, and engage prevention and health promotion strategies to produce better health outcomes. The transformation to universal healthcare— The Clerk: Good morning.
An. Hon. Member: Morning, how are you today?
The Clerk: I am fine, thank you.
An. Hon. Member: Good.
The ChairmanChairmanMadam Clerk, would you please turn off your microphone. Madam Clerk, your microphone is on. Continue, Minister. Hon. Kim N. Wilson: Thank you, Madam Chairman. The transformation to universal health coverage through the Bermuda Health Plan is rooted in the organising principle of integrated care and will be delivered via …
Madam Clerk, would you please turn off your microphone. Madam Clerk, your microphone is on. Continue, Minister. Hon. Kim N. Wilson: Thank you, Madam Chairman. The transformation to universal health coverage through the Bermuda Health Plan is rooted in the organising principle of integrated care and will be delivered via a single- payer mechanism. Integrating health services across the continuum of care that is public health, mental health, acute and post -acute care and community services will contribute to improved health outcomes and greater resiliency. It is intended and anticipated that the integrated service model will reduce duplication, enhance information sharing, and realise synergies, efficiencies, and economies of scale that cause savings to be real-ised with respect to our healthcare costs. For this, Madam Chairman, there is an allocation in the Ministry’s Headquarters’ budget in the amount of $750,000 for consultants, and an allocat ion in the Department of Health’s budget of $323,456 for health promotion resources. Madam Chairman, the Ministry has an initial high-level year roadmap to strengthen our health system and achieve universal health coverage. The recently released Bermuda Health Strategy 2022- 2027 provides the strategic principles the Ministry will follow in executing this key Throne Speech initiative. Madam Chairman, the Ministry of Health will focus on the year one priorities of the roadmap in the upcoming year. This wi ll begin with establishing the transition governance structure needed for our health system’s transformation, including setting up new working groups for stewardship and collaboration. A key element of this is the Project Management Office , which is necess ary to drive the change. This year the Ministry will be working with our partners along several concurrent work streams. We will develop and pilot integrated essential care pathways, working with stakeholders to determine which patient journeys to pilot. T his patient -centred approach enables Bermudians to get the care they need when they need it and to have quality care provided at fair value. The Ministry will also establish the necessary baseline of our current health condition, which means bringing our health accounts up to date and determining our population’s health needs. In parallel, we can begin identifying and prioritising efficiencies and cost saving projects across the health system. Madam Chairman, part of ensuring future efficiencies is havin g a national digital health strategy to fully take advantage of technology and create options for consolidating the Government’s health plans. This is an Island -wide effort to create a more efficient and value- driven health system where residents enjoy better health outcomes. It starts with each of us doing what we can to live a healthier life. Living healthier lives reduces the burden on Bermuda’s health system and produces economic benefits. In the upcoming financial year, the Ministry of Health will also continue to receive a budget allocation for the COVID -19 pandemic response in the amount of $7,767,803 which will also support the operation of the Bermuda Molecular Diagnostic and Research Laboratory. From the 1 st of April the MDL will come within the fold of the Department of Health, which already operates the Government’s Central Laboratory. As I mentioned prior, Madam Chairman, the pandemic is not yet over, but changes to our border policies, largely enabled by good vaccination rates both in Bermuda and in our gateway cities, should 546 7 March 202 2 Official Hansard Report
Bermuda House of Assembly decrease the pressure on the Island’s health system and allow for efficiencies in the management of our response. These anticipated efficiencies are reflected in the reduced budget for the pandemic response. The Ministry of Health, with the start of health system transformation at its core. The Ministry has a busy year ahead and cannot do this work alone or function in decision- making silos. That is why we value building on our community partnerships with organisations such as the Bermuda Health Council, the Bermuda Hospitals Board, the Bermuda Medical Doctors Association, BermudaFirst, Allied Health Professionals, the Island’s private insurers, the Chamber of Commerce, local and international businesses, our union partners, and patient advocacy groups. We look forward to collaborating with the wider community to make this a success. Madam Chairman, regarding business unit 31015 Grants Administration. Madam Chairman , I invite you to look at page C-18, which lists the Ministry of Health’s grants to a number of agencies, providing essential frontline services to aid public health and social assistance. These are as follows: • $2.5 million for the LCCA [Lady Cubitt Compassionate Association] to cover overseas medical care for uninsured and underinsured persons; • $125,000 for the Bermuda Nursing Council to support the regulation of nurses and midwives; • $1 million for the Bermuda Health Council; • $10,000 for SART, Sexual Assault [ Response] Team. Charities and other supporting agencies provide the Ministry of Health with supporting services that are vital to the community and complement the Ministry’s mandates.
Hon. Michael H. Dunkley : Madam Chairman . Sorry, to disturb the Minister, just a point of clarification.
The ChairmanChairmanYes. What is your point of clarification, if the Minister yields? Minister, are you? Hon. Michael H. Dunkley: Just on the number amounts, that is all.
The ChairmanChairmanYou are talking about the $10,000 versus $9,000? Hon. Michael H. Dunkley: Correct. Yes.
The ChairmanChairmanMinister, at C -18 it quotes $9,000 as opposed to $10,000. Hon. Kim N. Wilson: I will clarify that. That may very well be a typo, but I will clarify that during the course of the brief, Madam Chairman. Hon. Michael H. Dunkley: Thank you very much. Hon. Kim N. …
Minister, at C -18 it quotes $9,000 as opposed to $10,000. Hon. Kim N. Wilson: I will clarify that. That may very well be a typo, but I will clarify that during the course of the brief, Madam Chairman. Hon. Michael H. Dunkley: Thank you very much.
Hon. Kim N. Wilson: Madam Chairman, charities and other supporting agencies provide the Ministry of Health with supporting services that are vital to the community and complement the Ministry’s mandates. The LCCA, the Bermuda Health Council, the Bermuda Nurses Council, and the Sexual Assault [Response] Team are all critical services and they are fundamental to the success of the Ministry.
Office of the Chief Medical Officer
Hon. Kim N. Wilson: The Office of the Chief Medical Officer, Madam Chairman . This can be found on pages B -150 through page B -154 of the Estimates of Revenue and Expenditure. Madam Chairman , business unit 2102 under Head 21 is the Office of the Chief Medical Officer (OCMO), and that can be found at page B -150 of the Budget Book. Its total budget for fiscal year 2022/23 is $1,212,000, which funds two cost centres: 31030 Healthcare Registration and Regulation, and 31040 Epidemiology and Surveillance Unit. The office ordinarily consists of eight full -time equivalents, and one part-time consultant pharmacy inspector, and a relief pharmacy inspector providing a combined service of 0.25 full -time equivalents. With the onset of the COVID -19 pandemic, an additional 39 staff members were assigned to the Of-fice of the Chief Medical Officer to urgently assist in the management of the widespread impact of the COVID -19 pandemic, including the dramatic loss of human life and the unprecedented challenge to public health service delivery in Bermuda. This assistance included the formulation and support of a myriad of activities relevant to management of a global pandemic, including the establishment, development and maintenance of essential contact tracing and testing teams, as well as the deliv ery of a quality vaccination programme, the equivalent of any other country across the globe. The remit of the Office of the Chief Medical Officer consists of four primary duties: (a) registration and regulation of healthcare professionals; (b) pharmaceuti cal drug control; (c) epidemiology and surveillance; and (d) statutory public health responsibilities. Over the past eight years, the Office of the CMO has undergone significant reorganisation of its structure in order to facilitate optimal efficiencies an d to ensure deliver y of an effective and robust statutory service. Previously, the OCMO registered all healthcare professionals besides the nurses and psychologists, as well as registering healthcare facilities namely, hospitals, pharmacies, clinical labor atories as
Bermuda House of Assembly well as diagnostic imaging facilities. From 2020, the office transferred the majority of its registration and regulatory functions relative to healthcare professionals and facilities to the Bermuda Health Council. The Office of the CMO currently manages the registration and re- registration of medical practitioners as well as the initial registration of allied health professionals, dental health professionals, opticians and optometrists and pharmacists. The OCMO also provides administrative suppor t to the health professional statutory boards and councils, with the CMO acting as an executive officer of the Bermuda Medical Council. The office also retains functions relevant to medical practitioners and pharmacy regulation. This includes oversight of the registration processes, the management of patient concerns, and ensuring best practice clinical standards are in place and maintained to pro-tect and support the delivery of ongoing high- quality medical and pharmaceutical care in Bermuda. Madam Chairman , the Office of the CMO’s pharmaceutical drugs control responsibilities include ensuring that annual inspections of pharmacies are conducted and monitoring the importation of prescription drugs. This includes ongoing checks of controlled (or banned) drugs to ensure these items are kept safe and are only received by appropriate, responsible healthcare businesses and individuals. The office also ensures that Bermuda stays within the assigned quotas of controlled drugs, and reports on controlled drug importat ion to the International Narcotics Control Board (INCB), which is in Vienna, Austria. The INCB monitors compliance with the United Nations International Drug Control Conventions. Health protection and community health assessment are two essential public health functions carried out by the Office of the C hief Medical Officer ’s Epidemiology and Surveillance Unit (ESU). The ESU monitors the occurrence of diseases on the Island, both infectious or communicable diseases , and select chronic non- communicable diseases, to help prevent and control their spread and impact. The ESU also receives reports from individual healthcare providers and laboratories and will investigate unusual disease occurrences. The provision of contact tracing and case management functions and services are integral to preventing and/or mitigating any future outbreaks of disease. Periodic community health surveys are conducted to monitor and document the health of Bermuda’s population. The STEPS to a Well Bermuda sur-vey, which is planned for 2022/23, is just one example. Data from community health surveys provide population health information which is essential to setting health system priorities and for planning. Madam Chairman, additional functions of the Office of the CMO are to facilitate l egislative functions, advise government departments on health matters and to support the essential regulatory work of statutory boards and councils. The Office also serves as Bermuda’s public health focal point for communica-tions from regional and internat ional authorities such as the World Health Organization [WHO], the Pan American Health Organization [PAHO], and the Caribbean Public Health Agency (CARPHA). Essential collaboration with these partners provides Bermuda with access to facilities to develop and train our public health professionals and to support and implement strategic plans and technical assistance for the prevention, mitigation and management of public health emergencies, including preparedness for disaster management and extreme weather ev ents. Madam Chairman, [part] of the Office of the CMO’s budget, $621,000 is allocated to healthcare registration and regulation. Over the past year the section has ensured the administration of a variety of professional services relevant to more than 200 r egistered medical practitioner professionals, processed over 130 requests for controlled pharmaceutical drug licence requests, and completed 54 pharmacy inspections. The Registration Section continues to meet its performance targets by publishing accurate healthcare professional registers and supporting the professional statutory boards in their registration and complaints -handling responsibilities, duties and efforts. For fiscal year 2022/23, $591,000 is budgeted for the work of the Epidemiology and Survei llance Unit [ESU]. Capacity -building in public health, which was supported by CARPHA, PAHO and Public Health England in 2020, has assisted the staff of the ESU, as well as the staff in the Department of Health to meet the challenges of preventing and contr olling emerging diseases such as the novel coronavirus pandemic, and in managing outbreaks of vaccine- preventable diseases such as whooping cough. Through the tireless work of the Public Health Emergency Response Team (PHERT), the Office of the CMO coordi nates and collaborates with a broad range of health and other community stakeholders Island wide to prevent and mitigate public health threats. The relationships established and maintained via PHERT have proven to be priceless for the efforts of mitigating the COVID -19 virus during this past two years plus. Madam Chairman, to date there have been over 11,000 cases of COVID -19 identified in Bermuda and, sadly, 123 deaths. This pandemic has impacted the lives of all Bermudians and has also had a profound impact on our economy and the fabric of our society. Madam Chairman, it is fair to say that without the dedication and expertise of the OCMO, the Epidemiology and Surveillance Unit and the entire Ministry of Health team that Bermuda could have fared so much worse. The Office of the Chief Medical Officer’s entire work force has dedicated their lives to the response to 548 7 March 202 2 Official Hansard Report
Bermuda House of Assembly the COVID -19 pandemic, which has spread around the entire world and has spared no country. Throughout 2021/22 the ESU has overseen an extended team providing case management, contact tracing, traveller and school surveillance as well as data management and analysis support to the incident command structure that was established to manage and coordinate our response to the COVID -19 pandemic. This also included, Madam Chairman , the investigation and response to more than 10,000 labconfirmed cases of COVID -19 and their associated contacts, the surveillance of over hundreds of thousands of travellers, and the weekly reporting to international public heal th agencies. To this end, the ESU continues to work closely with public health partners, including WHO, PAHO, CARPHA, and the new United Kingdom Health Security Agency (UKHSA). Madam Chairman, we continue to see a decrease in reported communicable diseases other than COVID -19 in 2021, which may indeed be related to the public health measures implemented to control the COVID -19 pandemic, such as physical distancing and mask wearing. The ESU has, in addition, managed 225 individual case reports of communicabl e diseases in addition to managing the COVID -19 period. Madam Chairman, the OCMO has also provided critical support to the vaccination programme to ensure that all eligible residents of Bermuda are vaccinated and protected from the COVID -19 virus. Working with colleagues in the Foreign Commonwealth and Development Office and the Government House, OCMO worked tirelessly to secure vaccines for all the residents of Bermuda. We must also acknowledge the incredible efforts of both Government House and the UK to assist us with the supply of these critical vac-cines at this most challenging of times. As of the 26 th of February, Madam Chairman, our vaccination teams have administered over 125,000 vaccinations, 85.6 per cent of our residents over the age of 65 years a re fully immunised with two doses, 72.2 per cent of the general population are immunised with two doses, with 71.5 per cent of those eligible for a booster having received their booster. Madam Chairman, if I could, I would stand here today and use the enti re five hours allocated to this Ministry to applaud and salute the tireless efforts and contributions of the entire health team across the Island, including our volunteers and all of our partners. Not only, Madam Chairman, have we held our own against this powerful foe, but we have also managed, at the same time, to sustain delivery of essential medical services across the board. This historic pandemic threat that has held our small nation to ransom has only been managed due to the dedicated and tireless efforts, devotion, and collaboration of every single sector and person in our community. Our nation has, once again, shown how our camaraderie and community spirit has allowed us to triumph over adversity and we are going to require the same ongoing dedicat ion and effort to overcome the long- term impacts of the pandemic in the future. Madam Chairman, finally, the development of the important Chronic Disease Register continues to evolve and be refined. In 2019, the initial Phase One of the Register was completed. This phase piloted the process of collecting data on diabetes and chronic kidney diseases in three entities: Bermuda Hospitals Board, the Bermuda Diabetes Association and the private endocrinology practices. Progress with this work has slowed wi th the onset of the pandemic in 2020, and it is our intention to restart this initiative as soon as we have capacity to do so. Madam Chairman, this ends my presentation on Business Unit 2102, Office of the Chief Medical Officer.
Bermuda Health Council Hon. Kim N. Wilson: Turning now, Madam Chairman, to the Bermuda Health Council. This is the last one with respect to Head 21. And I want to highlight, Madam Chairman, the work of the Bermuda Health Council, which is a quango under the Ministry of Health. They receive operational funds in part from a Ministry grant and are positioned to continue to advise and make recommendations to the Ministry on health system matters. Madam Chairman, the Bermuda Health Council’s mandate is to regulate, coordinate and enhance the delivery of health services. The grant for the Bermuda Health Council can be found on page C18, object code 6895 under the Ministry of Health. In 2022/23, the Health Council’s grant will be $1 million. The Council has been continuously involved in critical initiatives in support of health system improvement. During the coming year the Health Council will play an essential role, Madam Chairman, in progressing the Bermuda Health Plan reform goals and strategic initiatives around digital health. These projects are in addition to the daily activities that they perform around data analytics and outcome research, health system strategy and part-nerships, health regulation and policy, long- term care, kidney transplant coordination, public health research and programmes, registration and compliance, and communication and education. Madam Chairman, the Health Council’s total revenue is primarily supplemented by a transfer from the mutual reinsurance fund [MRF], licensing fees paid by health insurers, and licence and registration fees paid by regulated facilities and health professionals, for a total budget of $3.1 million for 2022/23. Madam Chairman, in 2021/22, the work of the Health Council centred on four strategic areas: regula-tion, quality and standards, and finance and economics, with oversight by audit and governance. Some of
Bermuda House of Assembly this year’s achievements, Madam Chairman, are as follows: Regulation: As the primary regulator of the health system, the Council facilitated the administrative functions of health pr ofessional bodies and health professional conduct committees and licensing functions in respect of select health facilities, namely, diagnostic imaging facilities, laboratories, hospitals, nursing homes and residential care homes. As part of the pandemic r esponse, the Health Council used this registration framework to support the identification of healthcare entities that could be provided exemptions due to the critical nature of their services. The Health Council used a paperless process for the registrati on of over 650 non- physical, non-nursing health professionals. This modernisation of processes and the change [which] management required to be effective has had its challenges as any process transformation would have. However, these interventions do align with the Health Council’s objective to reduce the administrative burden of statutory board members so that they have increased bandwidth to strategically enhance the specialised fields towards improvement of population health in Bermuda. As part of their regulatory framew ork, the Health Council enhanced the alignment of inspection criteria to the standards in the Care Homes Code of Practice and made the associated inspection reporting more transparent and action oriented. The Health Council understands how important long- term care is to this country and is continuing to put in place a stronger foundation that will not only support the sector, but ensure that there is adequate accountability entrenched in its operation. In addition, in respect of long- term care regulatory activities, the Health Council continues to work collabora-tively on streamlining the complaints reporting and handling processes, which involve partnering with the teams of Ageing and Disability Services under the Ministry of Social Development and Seniors, as well as the Bermuda Nursing Council. In response to concerns about the affordability of prescription medication, the Health Council contin-ued to work with relevant stakeholders towards the implementation of the Bermuda Dr ug Formulary. This work has also involved consultation with the World Health Organization to best define a list of essential and effective medications, and with local stakeholders to address concerns with the regulation of the market. The work with various local and international stakeholders for sustainable implementation will continue in 2022/23. Again, the goal of this work is ultimately to create a more cost -effective prescription medication market by setting the prices of select medications, monitoring compliance with regulated pricing, and negotiating the price at which medications are imported. Similar interventions are being undertaken across the globe. And with an ageing population it is imperative that Bermuda stays ahead of the curve when it comes to having an efficient prescription medication marketplace. Quality and standards: Madam Chairman, within its goal to enhance the integrity and best use of local health system data, the Health Council is finalising the development of unique patient identifiers for individuals and national provider identifiers for healthcare businesses and professions. While this transition towards greater standardisation is still evolv-ing, we believe that this modernisation of data will lead to a much better understandin g of our population’s health needs going forward. Data enhancement efforts are ongoing as the Health Council continues to work with health system partners to identify gaps in data collection and reporting and the resources re-quired to close these gaps. Madam Chairman, having participated in regulatory oversight of various health professions and facilities, in response to an obvious pandemic -related need, the Health Council led in the development of standards and criteria for the operation of COVID -19 testin g facilities and the selection of COVID -19 tests available publicly, established the close to home vaccination programme, provided reimbursement guidance to health insurers and businesses, supported the directorship transition process for the government lab, and provided advice on a variety of other health related activities. The Health Council also manages the programme in support of kidney transplant coordination. Through this programme, education on kidney trans-plants is being conducted and comprehensive coordination is provided to those who have been designated to receive a new organ. Through this programme we have seen additional patients put on the kidney transplant eligibility list and successful transplants taking place. Right now, Madam Chairman, dialysis costs approximately $135,000 per patient, per year, and collectively we have 200 patients, [so] close to $30 million a year we are spending on dialysis. Each transplant that is done is estimated to save as much as $700,000 over a 10- year period for each of those kidney patients transplanted. This is what the Health Council coins as “value- added investment” in the healthcare system that produces better health for our residents and savings for our healthcare system. The Health Council is working with the Ministry of Health to update legislation that would allow more individuals to have the opportunity to obtain a transplant. Madam Chairman, financing and economics: The Health Council continues to publish annual national health account reports. These r eports detail total health system expenditure during each year. The latest figures have healthcare spend at $736 million, including more than 12 per cent of that spending be550 7 March 202 2 Official Hansard Report
Bermuda House of Assembly ing in overseas care. During the year the Health Council continued to regulate the prices of standard health benefit services. The prices of these services continue to be guided by the Resource- Based Relative Value Scale, or the [RB]RVS structure. The Health Council receives and adjusts pricing and coding on a regular basis to maintain i nternational consistency. The RBRVS structure was also used in guiding reimbursement pricing for COVID -related activities, which both providers and insurers found to be extremely helpful during a rather chaotic time when uncertainty was global normative. Understanding the spend that takes place within our health system is an important variable in understanding where there are opportunities to be more efficient or opportunities to take on new innovations or progressive challenges. The Health Council has a st ructure for reviewing such opportunities through its health technology assessment process. Madam Chairman, this process includes a review of peer review research and market literature from around the world, an analysis of local utilisation demand data, an d a discussion by local experts on potential advantages and disadvantages of change. The Health Council has worked closely with the Pan American Health Organization on a health technology assessment process and is also in the process of adding the calculat ion of quality -adjusted life years to its cost assessment portfolio. The Health Council in 2021/22 continued to refine this process so that there is more evidence-based decision making involved in the financing of local healthcare. In 2021/22 the Health Council became part of the Executive Committee of the newly established Caribbean Health Economics Association. This body is made up of leading health financial ex-perts from the region with the goal to ensure that in-vestments in health are done strategically and that research on the impact of investment is properly car-ried out and reported for the other jurisdictions to learn from. In addition, the Health Council continued to be a valued part of the Health Reform Steering Committee, even as reprioritisation a ctivities were taking place due to COVID. Madam Chairman, the Health Council also worked on updates to claims regulations, standard premium rate legislation, health insurance licensing regulations, and the initiation of the maternity benefit programme. The latter being a programme intended to ensure, Madam Chairman, that inequities which exist in child -bearing due to a family’s economic position are eliminated by providing each person equal access to the resources that are known to reduce risk and complicat ions during pregnancy and delivery. Madam Chairman, Audit and Governance: The Council has a track record of timely financial transparency, and through working in close collaboration with the Auditor General, have year over year tabled on time an unqualified audited financial state-ment. The Health Council’s annual reports and financial statements have faced some delays during the pandemic, but are close to completion and being processed by the auditors respectively. The Health Council has continued to meet i ts legislative requirement to submit financials to the Office of the Accountant General within three months at the end of its fiscal year. The Health Council continues to have a successful paperless office, with the vast majority of all information sharing occurring via electronic means. The Council also continues to review and enhance its information technology tools so that it can continue to become more efficient and thus being a cost -effective resource to both the Government and the health system alike. The future: Madam Chairman, looking forward to 2022/23, the Health Council will continue with its wide remit of performing functions that improve the health system. As the population and its health needs evolve, it is important for the Health Council to maintain agility in how it accomplishes its mandate. As it continues to promote community involvement and solution generation through the innovation programme, the Health Council also looks to support the next generation of health professionals through education, mentorship and exposure programmes. Of note, Madam Chairman, for 2022/23, the Health Council will continue its work on creating more structure and planning for long- term care, support frameworks that are effective in reducing risk and pr eventing disease, identifying ways to better manage healthcare financing, listen to the concerns of the public, and ensure that patients, providers and business-es are afforded fairness, privacy, and protection in their dealings. Lastly, Madam Chairman, I would like to acknowledge the reappointment for 2022/23 of Ber-muda Health Council Board Members whose expertise will continue to contribute to its ongoing achievements: Dr. Sylvanus Nawab is the Chair and he provides a paediatric clinical perspective; Mr. Anthony Richardson is the Deputy Chair who provides expertise in public -private partnerships; Mr. Anthony Santucci who brings a view of the integration of healthcare and social determinants of health and community; Ms. Cynthia Thomas who brings her legal expertise to the table; Ms. Kirsten Beasley offers a health system related reinsurance sector perspective; Ms. Ann Daniels gives the public -private sector financial perspective; Ms. Shelle Hendrickson who shares the view of overseas healthcare models; Dr. D arrien Ray ensures a mental health perspective; Dr. Michael Richmond shares a medical provider and hospital perspective; and Ms. Keechia Tuckett brings years of experience in the government health insurance market. In addition, Madam Chairman, I acknowledge that the ex -officio members of the Board, namely: the Health Council’s CEO, Dr. Ricky Brathwaite; the Acting Permanent Secretary of Health, Ms. Shivon WashBermuda House of Assembly ington; the Chief Medical Officer, Dr. Ayoola Oyinloye; and the Acting Financial Secretary, Ms. Cheryl Ann Lister. Madam Chairman, revenues for the Ministry of Health are projected to reach an estimated $22 mil-lion for 2022/23. These estimates can be found at page B -151 of the Budget Book. The majority of the revenues is derived from the anticipated inc rease in travel foot traffic in 2022/23 and the associated travel authorisation application. Madam Chairman, this concludes my remarks for Head 21, Headquarters.
HEAD 22 —THE DEPARTMENT OF HEALTH Hon. Kim N. Wilson: Madam Chairman, turning to Head 22, the Department of Health and that can be found on pages B -155 to B -166 of the Budget Book. Madam Chairman, it gives me great pleasure to present the budget for Head 22, the Department of Health, again found at pages B -155 to B-166 of the Budget Book. Madam C hairman, the total current expenditure is estimated to be $28,690,000 for 2022/23. Vision and Mission: Madam Chairman, the Department of Health’s vision is Healthy People and Healthy Communities . The Department’s mission is to promote and protect optimal health and well -being in Bermuda. The 285 Department of Health officers, which is found at page B -156, work in 25 programmes to assure the health and well -being of the general population. Madam Chairman, the 2022/23 budget estimate for administration progr amme of the Department of Health is listed at cost centre 32230 on page B -156 and the budget estimate is $429,000. Madam Chairman, public health services are more important now than ever, given the toll that the COVID -19 pandemic has taken on our community . The Department of Health’s efforts will refocus on non-communicable chronic disease prevention and mental health throughout the life course. The Depart-ment has begun to integrate mental health services into its clinic -based services in partnership with t he Mid-Atlantic Wellness Institute as well as work with collaborative partners to develop greater awareness and support, Madam Chairman, of mental health in our community and remove the stigma. A life course approach will be used to improve collaboration for better service integration with assurance of health outcomes to detect and address vulnerabilities and opportunities. And the first 1,000 days will be an integration project with the health system and the wider society and community partners. Madam Cha irman, the 2022/23 budget estimate for the Health Promotion and Wellness Programme of the Department of the Health is listed at cost centre 32240 on page B -156 of the Budget Book and the estimate is $507,000. Madam Chairman, the Health Promotion and Welln ess Programme develops and implements policies, programmes and products that will promote health and wellness in the community in collaboration with public health partners. Madam Chairman, Health Promotion annually sponsors two Department of Health initiatives: The Public Health Week , and Celebrating Wellness. Madam Chairman, in 2021, due to the lower COVID -19 numbers, in- person activities were held each day for Public Health Week under the theme “Commit to Change— Small Changes, Big Results.” Each day of t he week staff promoted a healthy habit that the public were encouraged to adopt. And these included: choosing to exercise for at least 30 minutes daily, reducing stress to help mental well -being, drinking eight glasses of water daily (and you see that is why I keep pausing, Madam Chairman), and eating at least three servings of vegetables daily. The Department of Health staff thanked the public for the role they played in preventing the spread of coronavirus by adopting and maintaining safe habits like was hing hands, wearing masks, physical distancing, and uploading the WeHealth app. Madam Chairman, celebrating wellness, however, had to go virtual, and the team adapted the event to the virtual platform using vFair’s virtual plat-form. And this annual event i s geared toward increasing awareness and promoting measures to address the epidemic of non- communicable diseases (NCDs), which continue to severely impact the health, economy and development of Bermuda. The focus for 2021 was “Power through Collective Acti on, In it Together, Building Healthy Communities.” The pandemic has clarified how important health inequities are for the country and how im-portant, Madam Chairman, healthy communities are for all of us. Achieving health for all means attaining and sustai ning healthy environments. The build environment, which provides for sidewalks, bike lanes, community parks and green spaces can influence lifestyles, body weight, and improve mental health. The Health Promotion team were able to raise awareness, Madam Chairman, of the Department of Health’s programmes through regular use of radio PSAs, social media posts (such as Facebook, Twitter and Instagram), the Health Promotions Calendar, and online directory of services. The COVID -19 pandemic has challenged the Health Promotion team to be creative in delivering health messaging, but the team has risen to the challenge, all while working concurrently in areas such as contact tracing, producing communications and guidance through documents for COVID -19. Madam Chairman, the Speech from the Throne 2017 stated, “The Government will lead the way in wellness by encouraging its employees to make healthy choices, and will contribute to their well - being by offering programmes, incentives and educa552 7 March 202 2 Official Hansard Report
Bermuda House of Assembly tion to support the journey to a healthier public service.” In 2021, Madam Chairman, the Government of Bermuda Employee Wellness Committee, which is a collaboration between the Department of Employees and Organisational Development, the Department of Health, and the Department of Communications focused on mental health and well -being under the theme “Mental health matters.” Madam Chairman, research suggests that the current coronavirus pandemic requires greater focus on mental health, improving the mental health of public officers, maki ng them more resilient to the stress from the COVID -19 pandemic. Madam Chairman, over 900 staff participated in a workplace stress survey to identify the impact of workplace stress and the factors contributing to stress that will assist the committee in developing and offering programmes to reduce stress levels. As a result, Madam Chairman, several trainings for managers and staff on mental health and mental health well -being will be offered. Madam Chairman, the Nutrition Services subprogram me of the Health Promotion and Wellness Programme is committed to providing sustainable nu-trition community programmes to connect, engage and strengthen the community’s awareness of strategies to improve healthier lifestyles and healthier eat-ing. The Grow, Eat, $ ave (GES) programme is demonstrating significant increases in participation as local food costs increase. The goal for the community programme is to improve availability and affordability of healthy food by promoting sustainable food sys-tems for Ber mudians to grow their own food and promote food security. In 2021, Madam Chairman, the Grow, Eat, $ave programme had 74 graduates com-pleting eight -week virtual classes, practical sessions, and five- month practice planting sessions. The 2022 Grow, Eat, $ ave programme has 1 03 participants involved already. This session will pursue an added extension with the virtual sessions during the five- month practice planting sessions offering gardening talks twice a month on gardening topics for support. The Complete Health Improvement Programme (CHIP) provides education for sustainable behaviour changes using lifestyle interventions for a three- month period. Madam Chairman, in 2021, three CHIP graduates completed the course, which changed from in- person to vi rtual. For 2022 seventeen persons are enrolled and committed to attend virtual courses and in- person demonstrations. Madam Chairman, Client Referrals had a significant increase during the COVID pandemic. Medical Nutritional Therapy (MNT) is provided to high -risk persons, the most vulnerable, such as uninsured and underinsured, inmates, senior nursing homes, group homes, schools, and adult wellness clinic clients. An overwhelming number of referrals are being received for this programme which only has one of ficer. Senior homes and prison institutions have nutritional as-sessments performed virtually to ensure that they are following mandated nutrition components for their res-idents. Nutritionists remain on the COVID -19 taskforce in the national food security planning under the leadership of Mr. Dean Rubain. Madam Chairman, the Healthy Schools subprogramme of the Health Promotion and Wellness programme promotes health in schools through such government departments as Education, the National Drug Control, Mirror s, community health partners including the Bermuda Diabetes Association, the Bermuda Cancer and Health, the Bermuda Underwater Exploration Institute, and the Department of Health school -based programmes such as child and school health, nutrition services, oral health, community rehabilitation services, and environmental health. Healthy Schools has been adopted by 31 of the 33 public and private schools since 2007. Healthy Schools is working more closely with the Department of Education to limit all fast -food deliveries to schools for any reason and food- focused fundraisers to once per month in schools. Healthy Schools has provided schools with a list of non- food fundraisers. All but one public school has a bottlefilling station, making fresh, clean water the easiest choice. Healthy Schools will continue to work with the Department of Education’s curriculum officer for PE and Health to improve the completion of the fitness ground assessments for P5 to S4 students in terms 1 and 3. Healthy Schools and the Department of Education’s Facilities Manager, with Environmental Health, will continue to work closely with the school custodians and cleaning companies that clean schools to raise schools’ cleansing standards through frequent cleanliness inspections and requi red COVID - 19 reopening inspections. Healthy Schools will continue to provide updates to the COVID -19 phases for school protocols, as required, to reflect Bermuda’s COVID -19 status and conduct weekly COVID -19 compliance inspections. Since 2020, Healthy Scho ols has been working with public and private schools to ensure optimum environmental health in schools by having schools reduce clutter in classrooms and other school areas and improve compliance to the Bermuda School Asthma Policy. Healthy Schools has been working closely with and providing support to school surveil-lance since November 2020. And finally, Madam Chairman, Healthy Schools has been coordinating out -of-school camps since the summer of 2021, providing public health up-dates and visiting camps to conduct surveillance and monitor compliance to the COVID -19 protocols for camps.
Bermuda House of Assembly Child Care Regulations
Hon. Kim N. Wilson: Madam Chairman, the 202 2/23 budget estimate for the Child Care Regulation Programme is listed at cost centre 32290 on page B -156 and is $308 ,000. Significant steps , Madam Chairman, continue to be made to increase oversight and support quality child care in our day -care settings, day -care centres and our home day -care providers. Partnership and collaboration remain the focus as the Child Care Regulation programme streamlines processes and updates policies based on best practice. Over the last fiscal year all active and registered day -care providers (DCPs) have completed the trial STARS inspection, while some day -care providers with provisional registration underwent the trial STARS inspection as they worked towards full registration. This tool is comprehensive and allows the officers to evaluate aspects of child care while providing support and guidance throughout the process. The ai m of the trial period was to evaluate the new inspection tool with the intention of publishing the STAR ratings of the day -care providers this year. Due to multiple waves of COVID -19 infections, all officers guided DCPs and DCCs through the COVID -19 waves , completing risk assessments and producing Ministry of Health Public Health Measure letters whilst also tracking statistics —all in an effort to reduce the spread of COVID -19 infection within the day-care population. This did have an impact on officers completing their main duties. The trial stars inspection tool will be a priority for this year. In addition to oversight and monitoring to both DCPs and DCCs, the Education Officer facilitated a focus group on COVID -19 guidance and phases, created a file des ignated for the community to keep abreast of the standards and regulations of child- care in Bermuda, and created and hosted several presentations. Topics ranged, Madam Chairman, from policies and procedures on registration and licensing, how to complete a risk assessment, to the SCARS training (which is required for all child-care staff). In order to meet the diverse technology abilities of the group, the officer ensured all presentations were offered virtually and in person. The Education Officer’s focus this year is to work with local and overseas partners to reinstitute educational opportunities in Early Child Care in Bermuda. During this fiscal year 11 complaints were received and investigated regarding DCPs and DCCs. The majority of complaints were inv estigated within the allotted time frame.
Child Health
Hon. Kim N. Wilson: Madam Chairman, the 2022/23 budget estimate for Child Health is listed at cost centre 32030 on page B -155, and is $2, 664,000. Madam Chairman, the Child Health Programme consists of four sub- programmes: Immunisation, Child Health, School Health, including Asthma Education, and Travel Health. The programme provides preventive and curative health services for in-fants, children, adolescents, adults , seniors and the traveling public. This is conducted through various clinic, school and community settings. Services consist of health and developmental assessments, screenings, referrals, treatment of minor ailments, health education, health promotion, a nticipatory guidance, adult and seniors ’ immunisations and travel consultation for travel to high- risk areas. Bermuda’s Expanded Programme on Immunisation (EPI) plans for the needs of vaccines in the child and adult schedules. The EPI, Madam Chairman, procures most vaccines through the Pan American Health Organi zation’s revolving fund. This mechanism assures safe, effective and quality vaccines. Universal access for many of the vaccines is provided through the public and private sectors. Madam Chairman, all of the programmes in Child Health, 32030, have been impacted by human resource reallocation in response to the COVID -19 pandemic . Resources were diverted to support epidemiology and surveillance, contact tracing, COVID - 19 screening and testing, port health , COVID -19 vaccination clinic, and long- term care homes . The few remaining members of the team have been support ing school surveillance, development of school protocols for COVID -19, and health education on public health prevention measures for students, school staff and parents. The team also did education for the launching of the COVID -19 vaccine in Bermuda to healthcare providers as well as the private sector. In spit e of the challenges, data on immunisation coverage was 88 per cent for two- year olds. This is a four per cent decrease from the previous year and factors contributing to this may be: the COVID -19 restrictions, reduced access resulting from scheduling and physical distancing in waiting rooms, perceived reduced access, closure of satellite clinics due to human resource depletion, and challenges with physical structures for safety and health. Vaccine hesitancy remains a challenge and has been exacerbated by th e COVID -19 vaccine roll -out. Persons who were not previously vaccine hesitant began to question all rou-tine vaccines. The status of the vaccine hesitancy strategy 2018 to 2021 remains on hold along with the launching of the Healthy Bermuda app, but the vaccine’s webpage was established. The 10 to 8 appointment system was set up to assist clients visiting the clinics. This assists in control-ling the number of clients in the waiting area as well as physical distancing. It also provides reminders to reduce mis sed appointments. The Expanded Programme of Immunisation (EPI) online training contin-ues for health professionals in the public, private, institutional settings and allied partners with emphasis on 554 7 March 202 2 Official Hansard Report
Bermuda House of Assembly COVID -19 vaccine and the annual flu vaccine. There was a h igh demand for the annual flu vaccine with over 1,250 doses administered through the Flu Express. Flu vaccine was also administered in our clinics and was distributed to the long- term care facilities and the private sector. Intersectoral collaboration prov ided the support necessary for traffic flow and management, facili-ty access, and coordination for Flu Express. The Bermuda Immunisation Information System was populated with back data entry from childhood immunisations. Since 2021, the Electronic Immunisat ion Registration is used in all Department of Health clinics for vaccines administered and stocked. The annual flu vaccine 2021 clients were able to sign their consent form online. This was an important paperless initiative in collaboration with the paperl ess team. Madam Chairman, the Child Health programme has realised contact with 91 per cent of all patients of newborns and 55 per cent of mothers contacted at six to eight weeks after birth. Of those con-tacted at six weeks, 6 per cent were screened for mental health well -being using the approved tool and 4 per cent were referred for further services. These were done primarily via telephone due to the health risk COVID -19 restrictions, country status for the disease, and limited staff availability due to reassign-ment. Child protection has been a concern during COVID -19 restrictions and is a consequence of the same. This is and will be an area of continued vulner-ability. Madam Chairman, the School Health programme did not realise any screening due to the COVI D-19 restrictions. The programme participated in school surveillance and health education and was provided virtually to some schools for students and/or PTAs. Travel health was negatively affected by global travel restrictions. However, there were 145 cons ultations conducted in 2021, which is 58 per cent of an-ticipated forecast travel. This reflects the uncertainty of the COVID -19 pandemic. Madam Chairman, the 2022/23 budget estimates for Physiotherapy and Occupational Therapy are listed at cost centre 32080 and 32120 on page B - 155 and the budget estimate is respectively, $1,057,000 and $1,023,000. Madam Chairman, the remit of the Community Rehabilitation Services Occupational Therapy [OT] and Physiotherapy services [PT] are to maximise the functioning potential of individuals with delays in normal motor development or with physical movement challenges. This service, which spans the age spectrum, is split into three teams: early intervention, school -based paediatric therapy, and seniors. The staff is comprise d of nine registered occupational therapists, eight registered physiotherapists, one coordinator, and one team secretary that is shared with the Speech and Language Pathology programme. There currently is a vacant post in physiotherapy, which is being covered by a temporary relief post while we are waiting for the position to be filled. Since the arrival of the COVID -19 virus to our shores, our services have continued to be impacted and challenged. A number of our staff members were redeployed to several te ams to help mitigate the virus spread. For example, our team of physiotherapists and occupational therapists provided support with contact tracing and assisted in the vaccination centre. As a result, the programme had to shift slightly, reducing the number of home and school visits, prioritising caseloads, and implementing tele- consults and using virtual meeting platforms to ensure that our clients had access to services. Amidst these challenges and changes the service continued to adapt and strive to-wards providing and delivering a quality and evidencebased service to our community. Within the Early Intervention team (EI) dedicated specialists, OTs and PTs provide early intervention for babies and young children ages 0- 4 years of age at risk of development al delays and/or disability. The OT and PT Early Intervention sub- programme aims to complete a full assessment on referred clients within 20 working days to ensure the appropriate intervention is provided and mitigate any delays in func-tioning. Approximately 79 per cent of clients were assessed within the established timeframe this fiscal year and an estimated 91 per cent of clients on the caseload were making steady progress towards established goals. It should be noted, Madam Chairman, that cancellations due to COVID -19 and quarantine status impacted figures, particularly as it relates to attending therapy assessments this period. Assessment clinics take place weekly to quickly identify and provide interventions for babies and young children at high risk of sensory motor delays to facilitate an optimal level of functioning and quality of life. In addition, parent multi -disciplinary training sessions were delivered throughout the year in the community. It must be noted that these interventions continue to reduce the number of referrals sent from EI teams to school -based services, it also empowers parents with knowledge and strategies to promote optimal development for their children. The school -based paediatric team aims to increase early recognition of devel opmental delays and provide a more equitable service for school -age children with sensory motor delays throughout the year and not just during the school term. It must also be noted that school -aged children with additional learning needs due to complex health conditions and/or sensory motor delays require regular monitoring and intervention to retain their functionality, ability, and to access education. During this reporting period the team successfully conducted sensory motor screens for each child enter ing Primary 1 in the government system. Services were also provided to summer
Bermuda House of Assembly camps with children with complex medical needs, such as , WindReach and Dame Marjorie Bean Hope Academy, to prevent regression of skills attained throughout the school year. The O T and PT school -based sub- programme aims to complete a full assessment on referred clients within 20 working days. Approximately 55 per cent of the referrals received were assessed within the established timeframe and an estimated 80 per cent of school -aged clients on caseload were making progress towards established goals. It should be noted that cancellations due to COVID -19 quarantine status school closures impacted figures, particularly regarding attending therapy assessments this period. The OT and PT seniors’ team aims to support clients to remain as independent as possible in their homes. The seniors’ team conducts home safety and falls risk assessments for all seniors that are referred to minimise the risk of falls at home. Client and caregiver trai ning was provided to maximise function and promote ageing in place. In addition, several health promotion education activities were conducted to further educate and promote healthy ageing within our community. The OT and PT seniors’ -based subprogramme aims to complete a full assessment on referred clients within 20 working days. Approximately 85 per cent of referrals received were assessed within the established time frames and an estimated 87 per cent of clients on caseload were making progress towards es tablished goals. It should be noted that cancellations due to COVID -19 quarantine status impacted figures, particularly regarding attending therapy assessments this period. Madam Chairman, the 2022/23 budget estimate for Speech and Language Services is lis ted at cost centre 32100 on page B -155. And the budget estimate is $1,655,000. Madam Chairman, t he Department of Health ’s Speech and Language Programme provides speech, language and feeding/swallowing assessment s and intervention services across the commun ity. When fully staffed the programme consists of 14 speechlanguage pathologists [ SLPs ] and one programme coordinator. Of these, three speech- language pathologists provide early intervention services in collaboration with the Department of Education’ s Ch ild Development Programme for children aged from birth to four or five years of age. Eight speech- language pathologists are school based, providing services across all levels of the Bermuda Government Schools (from ages 4 to 18 years old). One SLP provides services to students with special needs who attend Dame Marjorie Bean Hope Academy ( for ages 4 to 18 years), and one SLP provides school -based activitie s to students who attend Bermuda’s private schools and home schools. Three posts have been vacant and are under recruitment during this period, while one additional post has been under secondment. The post un-der secondment is to be released. Two candidates have been approved by the PSC, one candidate has accepted the post and we await a response from t he other. Madam Chairman, speech and language pathologists work closely with parents , school personnel, allied health professionals in private homes and clinic settings to raise awareness of speech and lan-guage delays and disorders, to promote functional communication skills, as well as to prevent life - threatening complications that may occur during eating and swallowing. Speech and Language Pathology therapy services include the provision of prevention and promotion information, screenings and assessments , consultations, as well as intervention. Objectives are measured in terms of provision of timely and responsive assessments; delivery and provision of treatment for those identified as needing intervention; and client improvement , for example, the effecti veness of treatment as measured by reduction in the severity of the communication or swallowing challenges. Madam Chairman, this year 41 new referrals were received within the Early Intervention Programme, adding to the waitlist for an initial assessment , and a total of 23 young clients from this waitlist were seen for an initial assessment. The decline in numbers is reflective of the measures put in place due to COVID -19. Agencies such as the CDP and local paediatricians began conducting screenings, but due to limited in -person contact, many were conducted online. Oftentimes these screenings were incomplete. Staffing also played a factor in the lower number of children screened during the period as well. While current programme time guidelines aim to provi de an initial assessment for young children within three months of initial referral, the average wait for an assessment is now running between nine months to a year. Seventy cases were referred to the school - based programme for students attending Bermuda’s Government schools, while zero new referrals were received for students attending Bermuda’s private schools . There were no current referrals for the private sector as we currently have no therapists to support them. Due to COVID- 19 not all of these students received an initial assessment within the programme’s time guidelines of 35 working days. Once identified as needing services, clients are provided with therapy intervention. Currently, there are no students on a waitlist . Clients are reassessed on a routine basis to assess their status and to measure progress. Services were also provided to Dame Marjorie Bean Hope Academy. Currently, 19 students receive support from the speech team. A combined 430 cases were followed for intervention by Speech and Language Services this year. Caseloads can vary between 40 and 68 clients per officer. 556 7 March 202 2 Official Hansard Report
Bermuda House of Assembly The 2022 /23 budget estimates for Community Health and Community Health Administration are listed at cost centres 32060 and 32010 on page B - 155, and the budget estimates are $1, 538,000, and $1,057,000, respectively. Madam Chairman, community health nurs ing services is made up of a number of highly skilled nurses. Staffing is currently down with only four offic-ers when the full complement is nine nursing posts. We are working on the onboarding of new nurses in order to meet the community health needs. Communi-ty health w orkers and nursing assistants work in partnership with nurses, ensuring the best care possible for the adult population, from 18 years until end of life . We are committed to providing a high standard of pro-fessional care for individuals within the communit y setting. We holistically assess and plan appropriate care and treatment in partnership with our patients. Our care is patient -centred, researched, and evidence- based with the emphasis on empowering individuals to self -care to the best of their abilities . Adult community nursing works in partnership with the statutory, voluntary, and independent providers to meet healthcare needs, offering continued support, health education information, and advice to patients, families, and their carers and the community population. Our adult preventative healthcare clinic is designed to support and reduce stress while increasing capacity, educating individuals and families, providing life skills to enable healthy living practices. Care in this setting also supports indiv iduals who do not have access to healthcare providers or cannot afford their co-payment. Funding for these two areas of healthcare assist s in addressing the community’s social detriments of health. Performance measures for the year 2022/23 to date is 87 per cent in an effort of servicing individuals within a 48- hour period. Madam Chairman, the Community Health Administration consists of Administration Support and Health Education. The programmes provide adminis-trative support for the programmes operating i n the main Hamilton health centres as well as the satellite clinics. Preventative and curative services include: child, school, travel, immunisation, community, sexual and reproductive health, nutrition, clinical laboratory, rehabilitation, speech and lang uage, as well as two long-term care facilities, vaccine storage, medical, office supplies and logistics. The programme assures conditions in which the facility can operate safely, effectively and efficiently for clients and staff. Much of the efforts of t he programme, staff and education were either directly involved with COVID -19 pandemic response, COVID -19 vaccinations, administration of routine health maintenance to clinic services. There were leadership changes in managing teams and services with resource constraints was the focus. The impact of COVID -19 al-tered the flow, function and wait times of clients attending for services. In many instances, services were assessed, screened and/or conducted via telephone in the first instance. Attendance was impacted by space restrictions to minimise potential exposure to COVID -19. Staff wore personal protective equipment to reduce the risk of COVID -19 transmission from client interactions, and cleaning regimes were en-hanced. These factors required additional investment of resources, both financial and physical. In collaboration with Public Works, a portico was built at the entrance of the Hamilton Health Centre to ensure client protection from the weather elements, both sun and rain. This improved the client exper ience and averted further complaints. Two ultralow temperature freezers were procured and installed in central stores and then used for the COVID -19 vaccine storage. The Stores sub- programme supported the initiative of fixed and mobile COVID -19 vaccine sites as well as the annual Flu Express. Collaboration across sectors realised the goals of these initiatives. Community Outreach real-ised 90 per cent of the client referrals for the social worker within 72 hours. In spite of the chall enges, staff persevered in less -than- ideal circumstances. COVID - 19 has highlighted the inequities of the Hamilton Health facility and the need for investment to modern-ise technological approaches, service delivery, and ensure approved systems for communication, health education , and documentation practices. In 2022/23 budget estimates for the Sexual and Reproductive Health is listed at cost centre 32040 at page B -155 and is $882,000. Madam Chairman, the Sexual and Reproductive Health Services programme consists of two sub - programmes: the Communicable Diseases Programme and the Maternal Health and Family Planning Clinic programme. Under these programmes, services are available to prevent and control the spread of communicable transmittable infections including HIV, other communicable infections and the provision of health education to promote sexual health. Collaborative services , for example, the Bermuda Assessment and Referral Centre ( BARC ) and Turning Point are provided for persons with high- risk behaviours to minimise the spread of infection and promote education and behavioural change. Services also include collaborative pregnancy care with the obstetricians for the under - and uninsured, immunisations for pregnant women, family planning, and both women and men’s health screenings . Madam Chairman, the HIV programme continues in its success with encouraging medication compliance. Some 97 per cent of the HIV population in Bermuda are receiving treatment. I n 2019 Bermuda was reviewed and approved validation for the elimination of mother -to-child transmission (EMTCT) of HIV and syphilis by the World Health Organization. This validation is currently being reviewed as we continue
Bermuda House of Assembly to offer the recommended HIV and syphilis testing, ensuring treatment guideli nes are implemented immediately . Bermuda also continues to work towards moving to a real time electronic data system to capture all of the EMTCT processes and impact implica-tions. Madam Chairman, the maternity benefit commenced on 1 November 2021 to assist antenatal clients with payment to their assigned OBGYN. We continue to work in partnership with the Bermuda Health Council to address the needs of the community in St. George’s. Services at the clinic restarted on 1 November 2021 offering antenatal care, family planning, sexual health screening, cervical screening and breast examinations. Community Mental Health Well - being Services, based in the Communicable Diseases (CDC) commenced on 8 October. Ther e have been 14 clients seen by M WI teams to date with more referrals pending. Madam Chairman, we continue to improve and provide sexual health services that respond to the needs of our young clients. This includes providing information on and access to modern contraception, emergency contraception, HIV and STI testing and treatment, gynaecology, pregnancy testing and ser-vices, safe terminations and counselling. We work in partnership with and refer to the Teen Haven and Child Family Services to provide extra support. Madam Chairman, the Sexual Reproductive Healt h Clinics have experienced lengthy challenges with human resources remaining lower than usual par levels. We have, however, assisted with contact tracing, COVID -19 vaccines, COVID -19 screening for the Salvation Army, emergency housing complexes and Lightho use residential facility, Flu Express, and fit testing essential service workers for the N95 mask. In spite of such challenges, education and the promotion of health and wellness has continued. We have provided all of the usual services to the community an d will continue to do so. Madam Chairman, quality sexual reproductive health services are essential for the well -being of the community. We plan to continue to meet the people’s needs for accessible, affordable, client -centred care. Sexually transmitted infections, including HIV/AIDS and unplanned pregnancies remain present. Clients are encouraged to attend at the clinics for education and counselling on safer sex, women’s health, family planning advice, and awareness of HIV/AIDS. Madam Chairman, we want th e public to value health education, promotion and clinical support, which are important parts of sexual and reproductive health because sexually transmitted infections including HIV/AIDS have not gone away, and neither have unplanned pregnancies. The pandemic has had a devastating financial impact on many which makes our services even more essential. Clients are encouraged to attend our clinics for education and counsel-ling on safer sex, women’s health, family planning ad-vice and awareness of HIV/AIDS. Mada m Chairman, the 2022 /23 budget estimate for the Clinical Laboratory is listed at cost centre 32090 on page B -155, and the budget estimate is $268 ,000. Madam Chairman, the government Clinical Laboratory is a COLA accredited laboratory situated at the Hamilt on Health Centre. The government Clinical Laboratory supports the programmes within the clinic, such as maternal health and family planning, the communicable disease clinic, the adult health programme, child health and oral health as needed. The Clinical L aboratory also serves as the Public Health Clinical Laboratory for Bermuda, assisting with outbreak investigation and public health emergencies. Madam Chairman, the Clinical Laboratory provides specimen referrals for highly infectious organisms that cannot be tested locally. Transportation of specimens to the Caribbean Public Health Agency [CARPHA] Laboratory, or Public Health England La-boratory can be arranged for advanced testing for diseases which have major public health significance. The government Cli nical Laboratory continues molecular testing for sexually transmitted infections, the most sensitive and specific testing for gonorrhoea and chlamydia screening. The laboratory will further expand its test menu to support communicable disease screening of tuberculosis, as well as the Ebola virus, if necessary; the norovirus; and trichomonas in males — all of which is detected using PCR methodology. The Government’s Clinical Laboratory will soon provide a rapid panel, which includes COVID -19, RSV, and Influenz a A & B, as requested only by the Medical Officer on duty. The government Clinical Laboratory continues to enrol in proficiency testing as a quality assurance initiative, providing competency and assessing the capabilities of all who work within the laboratory. The laboratory will continue to participate in anti -microbial surveillance as this remains a potential threat world-wide. Madam Chairman, as supplies are in demand for local testing for COVID -19, the laboratory continues to support the production of t he testing media. This operation has allowed Bermuda to continue to test with rigour amongst a global shortage of supplies. As we are still in a pandemic, the Hamilton Health Centre’s Clinical Laboratory continues to support the various needs for the healt h and safety of the public. Madam Chairman, the 2022/23 budget estimate for Oral Health is listed as cost centres 32150, 32155, and 32160 on page B -156 at the combined budget estimate of $1,514,000. Madam Chairman, t he Oral Health s ection continues to prov ide comprehensive public health dental services to Bermuda’s children ages 0 to 18 years -of-age and seniors aged 65 years and older. We have also been asked to assist many more adults 558 7 March 202 2 Official Hansard Report
Bermuda House of Assembly between the ages of 18 to 65 who currently do not have comprehensive health insurance or are unable to pay for private treatment. The COVID -19 pandemic has resulted in changed clinical care protocols across the Island. We have collaborated to heighten the protection of our staff and patients. Our service is based on high quality patient -centric care including dental examinations, consultations, preventative and dental hygiene appointments, as well as a range of restorative clinical treatments including extr actions and fillings. There is an overall strong emphasis on prevention and working with our community, and we also offer emergency services during regular working hours. However, in the last year we have added to our skillset by main-taining patient connec tivity by repurposing current technology to increase the introduction of teledentistry for assessment and medical history. Madam Chairman, the school -based programmes are an essential part of the Oral Health Sec-tion’s service . In spite of COVID -19, oral health education is offered to our school children with as little disruption as possible, limited to our primary schools, and a school -based fluoride supplementation programme for children aged 6 months up to 11 years of age. We have been streamlining thes e programmes. Madam Chairman, Oral Health Month 2022 went forward with the theme “Gateway to Health,” which highlighted the correlation between chronic diseases and oral status. New programmes include first stages of collaboration with the Mid- Atlantic Wel lness Institute family, as well as a new programme for our pre-primary schools, which will highlight the importance of good oral health and diet and the essential role it plays in maintaining optimal general health. This will also assist us to reengage wit h parents and families as we look to improve the levels of oral health across the Island. Madam Chairman, the 2022/23 budget estimates for the Department of Health’s Central Laboratory are listed at cost centre 32200, 32210, and 32220, and are listed at page B -156. The co mbined budget estimate is $1,272 ,000. Madam Chairman, the Central Government Laboratory (CGL) provides a wide range of analytical services. The forensic programme performs seized drug and toxicology analysis. The instrument required to determine the amount of THC in a plant material and produced was installed in July. The installation was severely delayed due to the technician who was assigned for the installation, who was based in Trinidad, whose borders remained closed for unauthorised travel. Special thanks to senior colleagues in the Department of Immigration who assisted us with facilitating the travel request to the Ministry of National Security of Trinidad and Tobago. And this assistance was instrumental in securing the travel plans for the technician to travel from Trinidad to Bermuda to install the equipment. The delay in the installation of the equipment resulted in a backlog of cases. The backlog was immediately worked through and I can confirm that all bail date cases are now up to date. Toxicology analysis, Madam Chairman, is performed on coroner’s cases, driving under the influence, and urine analysis for stakeholder agencies. The compounds that are routinely tested for are common drugs of abuse in Bermuda, which include cannabis, cocaine, heroin and ecstasy. There was an increase of 116 cases to 192 cases, equivalent to a 65 per cent increase from the previous year. These analyses are quite labour intensive, and the forensic programme completed 73 per cent of the cases within three months, which is equal to international standards for turnaround times for toxicology cases. Madam Chairman, the Water and Food Programme perform analysis of potable drinking and nonpotable drinking samples, dairy products and food. It is primarily a laboratory support service to Environmental Health, with the results used to identify bacteriological and chemical risk to human health and animal health. It is through this collaboration that the Department of Health can maintain a low incidence in water and foodborne disease. Potable (or drinking) water samples are analysed with Works and Engineering, Watlington Waterworks, Rocon, private dwellings, restaurants, care facilities, to name a few. Non- potable water samples include seawaters, sewage effluent , and water from animal habitats. Madam Chairman, there were a total of 3,636 water samples tested during the budget period, representing a decline from the previous fiscal year. This decline was due to the pandemic, which saw environmental health staff being redeployed to assist with the response. It also meant that the public and other non-essential agencies had to shelter in place and could not access our water testing service. As a re-sult, our revenue for this service declined by 7.2 per cent. Our current data indicates that we will set a new record for the amount of water samples tested for the present fiscal year with revenue also increasing. It is noteworthy that the water quality of our main bathing beaches met the United States Envi-ronmental Protect ion Agencies guidelines value every week through our routine seawater testing. Dairy products are tested monthly to determine that they meet legislated limits as set out by the Public Health (Milk and Dairy Farm) Regulations 1952. Food testing is currently performed when there is a suspected case of foodborne illness. This programme continues to meet all of its performance measures. For the 2020/2 1 fiscal year turnaround times were 5 to 10 days for disseminating water. Dairy and food testing results were achieved 99 per cent of the time and we are on target to accomplish the same for the [2021/22] fiscal year. Furthermore, all analytics
Bermuda House of Assembly achieved proficiency test scores that met an international standard. The WHO also recommends the global elimination of trans -fatty acids by 2023. To this end, by using some of the financial resources from the 2022/23 budget, we will collaborate with Environmental Health to undertake a baseline survey to determine the amount of trans -fatty acids in various food samples in Bermuda. And this project is supported, Mad-am Chairman, by the United Kingdom’s Department of Health and Social Care. This programme also assisted with COVID -19 response in several ways, namely, by vetting online COVID -19 test kit applications, helping to procure COVID -19 testing supplies and reagents, collaborating with the Bermuda Molecular Diagnostic and Research Laboratory to ensure their programme deliv-ery, and providing operational support during its transition period. Madam Chairman, the 2022 /23 budget es timate for Vector Control is listed at cost centre 32190 and is listed on page B -156. The budget estimate is $1,593,000. Madam Chairman, Vector Control is a hardworking team that ensures that threats of rodent - borne and mosquito- borne diseases do not manifest themselves in Bermuda. It is a credit to the team that as an essential service they managed to continue to maintain an active programme for complaint investigation and proactive baiting and monitoring for pests during 2021 /22, which was a very challenging year. No doubt 2022 /23 will also prove challenging as the pandemic continues. However, Vector Control plans to be able to continue to provide the essential ser-vices. During 2021/22 the unit continued to operate an increased baiting programme within parks, public docks and other hot spots. Consequently, these areas are now serviced on a weekly basis. Residents are reminded that the best way to limit rodent numbers is to deny rodents access to food sources such as garbage, by using lidded metal trash containers and not putting trash out on a non- pickup day. In order to reiterate this important message, Vector Control staff took part in a number of radio and press interviews throughout the year. Staff also liaised with colleagues in other jurisdictions through involvement in the Pan American Health Organi zation and the Caribbean Public Health Agency . This networking helps in the training and development of the Vector Contro l staff, who will continue to collaborate with the PAHO and CARPHA during the 2022/23 year . Madam Chairman, the 2022 /23 budget estimates for the Environmental Health section of the Department of Health are listed at cost centres 32170, 32270, 32171, 32172 , 32173, 32175, 32180, and 32285, all found on page B -156. And the combined budget estimate, excluding Vector Control, is $2,378,000. Madam Chairman, the Environmental Health Section is an essential service provid ing monitoring, investigative and regulator y functions in such diverse areas as food safety, occupational safety, nuisance control, water quality and tobacco control . In order to meet the challenges posed by the COVID -19 pandemic during the year, it was necessary to change the focus of the team. The team was realigned to provide support to the Port Health function along with colleagues from other sectors from the department at the L. F. Wade International Airport and the other ports of entry into Bermuda. This work involved ensuring compliance with the quarantine legislation and supporting the COVID -19 testing regime, which was established. In particular, the team managed the collection and transport of samples to the MDL Laboratory. Madam Chairman, the Environmental Health team also worked with busi nesses and other stakeholders to produce a range of guidance documents aimed at managing the pandemic in a range of settings. The team also supported our colleagues in the epidemiology surveillance and case management units in the investigation of clusters and outbreaks of COVID -19. The team also assist ed in the investigation of breaches of quarantine and COVID -19 regulations. They also helped to monitor compliance with regulations and guidance. The Occupational Safety and Health team was rejuvenated with the appointment of a new Occupational Safety and Health Inspector in January 2022. This will help to enable more proactive inspections and industry outreach in collaboration to be carried out. The aim of the unit is to increase adherence to Occupational Safety and Health Standards, thereby reducing the number of workplace accidents, ill health conditions, and dangerous occurrences. In order to enhance safety and health awareness, training courses were organised in relation to asbestos abatement and safety. Numerous workplace risk assessments for COVID -19 have been carried out in association with the contact tracing teams within the Epidemiology and Surveillance Unit. COVID -19 guidance was produced for many work categories, and associated advice giv-en to empl oyment sectors and businesses on best practice. This work will continue in 2022/23. Accident investigations were carried out in order to identify potential uncontrolled risk and to work with businesses to improve occupational health and safety standards. Madam Chairman, t he Port Health Unit of Environmental Health assists in the monitoring of persons arriving on Island at the airport and other ports of entry in order to provide controls against any infectious diseases arriving on Island from overseas. This includes carrying out inspections of cruise ships and other vessels visiting the Island. The unit also moni-tors food products arriving on Island to ensure that they are safe for human consumption. Th e port health 560 7 March 202 2 Official Hansard Report
Bermuda House of Assembly function is central to Bermuda’s complying with international health regulations. During 2021 /22 the number of vessels visiting Bermuda was greatly reduced from pre- pandemic years and, therefore, the number of inspections required to be carried out was equally greatly reduced. As mentioned previous ly, Madam Chairman, much more work was required to be carried out at L. F. Wade International Airport and at the ports of entry to ensure compliance with quarantine and other legislation. Madam Chairman, a new quarantine and isolation room is now operational within the airport. This enhances Bermuda’s reputation as an international destination and ensures compliance with the international health regulations. A new Port Health and Preparedness Manager joined the Port Health team in September 2021. This officer has begun the process of establishing the new Port Health Unit, which will comprise of the manager and three port health officers. It is hoped that these port health officers will be appointed during 2022/23. Madam Chairman, this will greatly enhance the team’s ability to provide the necessary checks and controls at the Island’s ports of entry and, thereby, strengthen the degree of protection provided to our citizens from infectious diseases and further enhance Bermuda’s international reputation. The department continues to work, Madam Chairman, with Skyport and other government stake-holders to ensure that the cargo shed is brought up to international standards for processing, where necessary, and inspecting shipments of food, medicines and human re mains. During 2022/23 it is likely that some of the work of the Port Health Unit will again be focused on the management of COVID -19. The Unit is in discussions with other government departments and other stakeholders in preparation for what is hoped will be a much busier cruise season. Madam Chairman, the Department of Health operates two exemplary long -term care facilities, namely, the Sylvia Richardson Care Facility (SRCF) in St. George’s and the Lefroy House Care Community (LHCC) in Sandy’s Parish —the w inner of the upcoming Cup Match . (Just making sure you are listening.)
An. Hon. Member : No, no, Minister. Well done, Minister!
Hon. Kim N. Wilson: I thought I might have put you to sleep.
The ChairmanChairmanNo, I am not asleep. It took forever before I turned on my microphone. An. Hon. Member: Whenever you talk about Somerset, Minister of Health, we are wide awake! Hon. Kim N. Wilson: Madam Chairman, the 202 2/23 budget estimate for Lefroy House Care Commun ity is listed at cost …
No, I am not asleep. It took forever before I turned on my microphone.
An. Hon. Member: Whenever you talk about Somerset, Minister of Health, we are wide awake! Hon. Kim N. Wilson: Madam Chairman, the 202 2/23 budget estimate for Lefroy House Care Commun ity is listed at cost centre 32000 on page B -155, and the budget estimate is $4, 817,000. The 2022/23 budget estimate for Sylvia Richardson Care Facility is listed at cost centre 32015 on page B -155, and the budget estimate is $5, 713,000. Madam Chairman, b oth provide care, promote independence and optimal health for persons aged 65 years and ov er, who have significant nursing and care needs requiring 24- hour facility -based care. Madam Chairman, the two facilities are residential care communit ies, provid ing comprehensive medical nursing, environmental , and recreational services to the resident, respite, and day -care elders . Our aim is to maintain and improve quality of life for elders and their loved ones. At both facilities, due to the pan-demic, day care services were suspended and all short -term respite care admissions were curtailed when necessary. No doubt this has continued to impact families and seniors living in the community. Both facilities have been closed to visitors at times during the pandemic, essential visits and outside visits have been permitted. Throughout the pan-demic, residents and staff have undergone regular COVID -19 screenings and testing as required. Voluntary vaccinations and boosters for those who consent continues. Madam Chairman, demand for nursing beds continues to very much exceed capacity. Sylvia Rich-ardson and Lefroy House continued to work along with Ageing and Disability Services, Community Health, and the Bermuda Hospitals Board social work team to prioritise and fill the vac ant beds as they become available. Madam Chairman, internal projects are underway at Lefroy House to provide and/or improve the recreational area for elders and to optimise the current space. Plans are also underway to replace the roof and other much needed internal refurbishments to the kitchen and dining areas and w ork on these areas will continue into the 2022 /23 budget year. Madam Chairman, as LHCC is an old facility structurally, general repairs and maintenance occur on a regular basis in order to mai ntain a safe and comfortable environment for our resident elders . The HVAC system is under repair, upgrades to the security and fire alarm systems have been done. And Madam Chairman, plans to build a new Lefroy House at a new location were mothballed, unfortunately, during COVID -19 but they will now be revisited at this point, Madam Chairman. Other areas affected by COVID -19 were increased use of overtime in order to maintain safe staffing levels as staff were required to quarantine/isolate as they became ill or were deemed closed for household contacts. There was also increased need and cost for personal protective equipment.
Bermuda House of Assembly Madam Chairman, the HVAC and fire alarm systems at Sylvia Richardson Care Facility need to be upgraded. A new Internet based Cisco t elephone system is currently being trialled and an IT computer up-grade is required. Capital funds have been requested for the necessary upgrades, including upgrades to the laundry equipment, flooring and furnishing replacement. Transportation is a concern. Replacement of the ageing CS wheelchair accessibility vehicle is a priority along with the purchase of a new second smaller vehicle.
Revenues
Hon. Kim N. Wilson: Madam Chairman, revenues for the Department of Health are projected to reach $3,672,000 for 2022 /23. T hese estimates can be found on page B -157. These revenues come from the sale of medications, vaccines and biologicals; fees for clinical ser-vices; pati ent fees from the two long- term care facilities, as well as fees for licences and permits issued by the Environmental Health Section of the D epartment of Health. Madam Chairman, that concludes Head 22.
HEAD 24 —HOSPITALS
Hon. Kim N. Wilson : Madam Chairman, Head 24, Hospitals, can be found at pages B -167 to B-168 of the Budget Book. Madam Chairman, the Bermuda Hospitals Board (BHB) delivers the only round- the-clock emergency and acute medical, psychiatric, palliative care, and substance abuse detox inpatient hospital services. It also delivers diagnostic, surgical and outpa-tient services and residential long- term care for seniors, a s well as a range of outpatient residential and acute services for mental health and intellectual disability service use rs. Services are provided from King Edward VII Memorial Hospital, the Mid- Atlantic Wellness Institute [MWI] and the Lamb Foggo Urgent Care Centre, and 26 group homes with certain administrative functions such as the medical concierge, HR, fi-nance and IT in the Craig Appin Building in Hamilton. As Bermuda’s only hospital, Madam Chairman, in what has been the deadliest year of the COVID -19 pandemic, the BHB has not only managed to keep services running, but worked hard to improve service delivery throughout t his fiscal year. This has been due to the hard work by BHB staff, leadership, vendors and partners and a dedicated board, all of whom have Bermuda’s thanks for their achievements.
Review of the Current Fiscal Year Current financial position
Hon. Kim N. Wilson: In a year when all of Bermuda has felt financial pressures and the economy has been challenged, BHB has continued to work within the envelope set by Government. Ninety -seven per cent of BHB’s income is reliant on Government. By the end of January net revenues were below budget by $6 million due to lower than anticipated mutual re-insurance fund funding levels in the first seven months of the fiscal year 2021/22. Activity has been lower than projected, related to the COVID -19 waves. Twice in this fis cal year during the alpha and delta waves, BHB ceased selective surgeries and postponed non- urgent outpatient appointments. Although emergency and urgent surgeries and outpatient appointments continued throughout these waves, outpatient activity revenue was 11.3 per cent down and inpatient activity revenue was down 10.1 per cent. Expenses have been well managed and by the end of January this year, were below budget by 4.4 per cent or $12.7 million. Salary and employee benefits were down 1.7 per cent and operating expenses were below budget at 6.1 per cent. BHB expenses were also helped by $6.3 million in Government concessions and $4.3 million in EMR -related salary savings. Madam Chairman, cash continues to be the most pressing issue for BHB and the trend of declining cash balances began to turn around only in Janu-ary of this year due to funding increases, receipt of $11.1 million of the original funding and the receipt of the MWI’s capital grant of $4.5 million. Over the fiscal year 2021/22 cash balances have fallen by $11 million. By the end of January this year BHB had cash on hand of $16 million, of which $4 million is restricted cash and can only be used for specific purposes. This represents less than 13.4 days of cash on hand to fund operations. Although this is an improvement from 5.6 days in December, it is also far below last year’s figures of 41 days cash in hand. Most hospitals aim for 60 to 90 days. Additionally, there are no longer any funds in reserve deposits. Madam Chairman, improving cash bal ances is critical for Bermuda’s only hospital. This reserve enables investments in maintaining and improvement services. During the pandemic, available cash ensured BHB could fund unanticipated COVID -19 related costs and it also is a reserve for all unanti cipated costs in investments as well as ensuring stability for the organisation. Madam Chairman, the financial pressures on BHB did not require it to access its overdraft facility in this fiscal year. It had to draw down $5 million . . . sorry. The financi al pressures on BHB did require it to access its overdraft facility in this fiscal year. It had to draw down $5 million, although funds were returned by the end of January. Savings Programme. Madam Chairman, part of BHB’s plan to achieve financial stabilit y has been the continuation of a multi -year savings programme, which continues to be a priority for BHB in this fiscal 562 7 March 202 2 Official Hansard Report
Bermuda House of Assembly year. The savings goal in 2021/22 was increased to $13.8 million, up from $12.3 million, which includes $1.3 million cost of delivery, or a net target of $12.5 million. The team has now identified $20.1 million in total savings, with $19.3 million highly likely to be achieved. Madam Chairman, work continues on the balance to ensure that all identified saving targets are met. While savings y ear to date have been successful, BHB must develop savings that are cash releasing to ensure that its cash challenges are reduced signifi-cantly.
Response to the COVID -19 pandemic
Hon. Kim N. Wilson: For the second year in a row, Madam Chairman, the COVID -19 pandemic has had a serious impact on our hospitals and group homes. The year 2021 was by far pressured and more deadly than 2020 with surges in the spring from the alpha variant, and late summer and fall from the delta vari-ant, and since December throu gh to today we are seeing omicron variant cases. Madam Chairman, throughout the entire two years of the pandemic, it should be noted that BHB staff have continued to deliver uninterrupted urgent and emergency care, surgeries and diagnostics across all ser vices at King Edward and MWI. Where the impact has been felt most has been in non- urgent, or elective surgeries and appointments which were ceased twice in this year during the alpha and delta waves. Madam Chairman, one of the most demanding aspects of t hese surges or waves has been that each variant has had significant differences in respect of infectivity, incubation periods, severity, and mortali-ty. Each wave has required adjustments in visiting, quarantine and isolation requirements for staff and patients at BHB. This impacts how care is given, the pressures on staffing, and the ability for people to visit. For example, Madam Chairman, delta caused the most severe patient surge with over 70 people in hospital and 17 people in the intensive care unit at its peak. And staff who tested positive or who had contact with a positive case were off for more days as the incubation was longer. About 60 staff were off during the peak of delta. Omicron has been, by far, the most infectious of the variants, but the i ncubation period was shorter and the disease less severe. This meant fewer hospitalisations. More staff were impacted [by] delta, with about 150 off work at the peak. The constant adjustments have not been easy for patients, visitors and staff. However, se tting the standards based on the particular variant is critical for maintaining the safest possible care environment. For the less severe omicron, for example, Madam Chairman, BHB did not cease any services and did not further restrict visitations with the exception of when there were cases in the long- term care units. There is much gratitude, Madam Chairman, to the BHB staff who have worked through all the waves and shouldered the additional pressures that the pan-demic has caused to keep care services running for all of us in Bermuda. Madam Chairman, BHB has been cognisant of the impact of stress on its workers, not only in the workplace, but those caused by the general impact of the pandemic on families in Bermuda and overseas. There has been a focus on pr oviding mental health support, especially to teams on the front line. Along with mental health advisories, sharing of support materials and videos, and access to the confidential employee assistant programme, staff from the MidAtlantic Wellness Institute also provided support for individuals and teams within BHB, and there has been a proactive encouragement for staff to take breaks and vacation to recuperate as the successive waves have waxed and waned. Madam Chairman, I would also like to add that the support for BHB staff during the pandemic has been greatly appreciated. There have been cards, gifts, flowers, food and financial donations —all of which help staff feel connected and supported by the community through some of the darkest days of the pandemic. Over 6,500 meals have been donated between September and December 2021, and this covered some of the most challenging times during the delta surge when staff were working around the clock with the highest number of very sick and dying patients. It made a difference to feel cared for and sustained, and BHB staff want the community to know how much it meant to them and helped them. Madam Chairman, sadly, however, whilst virulence and infectivity varied between the SARS -CoV-2 variants, we have seen deaths and serious illness in every wave. There are many in our community who remain vulnerable to COVID -19, even in less severe forms, such as the omicron variant. People who are not vaccinated have been most at risk of severe illness and death. But also at risk are people who are immunocompromised, such as cancer patients, peo-ple with transplants, or who have weaker immune sys-tems, such as seniors and those who have comorbidities.
The ChairmanChairmanMadam Health Minister, can I get you to pause for one second ? I am going to have Mr. Pearman take the seat, but I just want to remind you, the House and the listening public that this debate will end at 4:37 pm. And Mr. Pearman, are you available …
Mr. Scott PearmanI am, Madam Chairman. Can you hear me? Bermuda House of Assembly The Chairman: Yes, I can hear you. I cannot see you, that is the only problem.
Mr. Scott PearmanI can see me, but I guess if you cannot see me, that . . . let me fix that.
The ChairmanChairmanI need to find out from other Members if they can see you. Members, are you able to see—
Mr. Scott PearmanHonourable Minister, can you see me? Hon. Kim N. Wil son: I can see you.
The ChairmanChairmanOkay. I hand the Chair over to you MP Pearman. [Mr. Scott Pearman, Chairman]
The ChairmanChairmanThank you, Madam Chairman. Honourable Members, we are in the Committee of Supply for further consideration to the Esti-mates of Revenue and Expenditure for the year 2022/23. This is a five- hour debate on the Ministry of Health, which will conclude today at 4:37 pm. And cur-rently addressing the House …
Thank you, Madam Chairman. Honourable Members, we are in the Committee of Supply for further consideration to the Esti-mates of Revenue and Expenditure for the year 2022/23. This is a five- hour debate on the Ministry of Health, which will conclude today at 4:37 pm. And cur-rently addressing the House is the Honourable and Learned Minister for Health Kim Wilson. Minister, p lease continue. Hon. Kim N. Wilson: Thank you, Mr. Chairman. I can both see and hear you. Mr. Chairman, there are many in our community who remain vulnerable to COVID -19, even in less severe forms, such as the omicron variant. People who are not vaccinat ed have been most at risk for severe illness and death. But also at risk are people who are immunocompromised, such as cancer patients, people with transplants or who have weaker immune systems, such as seniors and those with comorbidities. Such people, Mr . Chairman, who may be family members or colleagues, are reliant on all of us to help protect them, because vaccines are less effective for them individually. Mr. Chairman, many such vulnerable people are outpatients, inpatients, or long- term care residents at BHB, so there is a heightened vigilance within our hospitals to protecting people. This is why there are still visitation restrictions at BHB, why some people are still expected to use screens for temperature and mask checks when entering BHB facilit ies and remain masked even when visiting loved ones in their rooms, and why people are asked to call ahead if they think or know they have COVID -19 but need emergency services. Additionally, Mr. Chairman, there was a strong encouragement for staff to get vaccinated at BHB. By the end of 2021, 80 per cent of all BHB nurses and 85 per cent of all BHB doctors were fully vaccinated. Mr. Chairman, BHB was able to support Government’s national COVID vaccine programme thanks to major donations from individuals and companies through the Bermuda Hospitals Charitable Foundation. These donations helped pay for nurses, facilities costs, and the supplies needed to deliver the Pfizer vaccine. The BHB clinic gave 43 per cent of all vac-cinations in Bermuda, which translates to over 50,000 vaccinations. It is a great testament, Mr. Chairman, to the hard work of BHB staff that outbreaks in patient units within the hospital have been limited. Where they have occurred, they have been picked up quickly and infection prevention processes, such as unit quarantine were implemented immediately. It has helped that all admissions and transfers between areas are tested first, but the limited number of outbreaks and how they have been controlled is also down due to the actions of many staff in the care environment. Mr. Chairman, we can begin to look forward with some hope: a clear majority of people have stood up to protect themselves and their community by getting vaccinated, and new treatments, such as the antivirals, are proving effective at reducing severe disease in at -risk populations and will make a difference when enough are manufactured and become available for purchase. This will help us reduce pressure on our hospitals as well as help us protect those whose lives remain at ris k from COVID -19. Mr. Chairman, while the pandemic has been a major impact on the hospitals, however, the launch of a new strategy and the focus on key improvement projects means that a great deal has been achieved to improve care and improve outcomes for our communi-ty in addition to the COVID -19 response.
New Strategic Plan Hon. Kim N. Wilson: Mr. Chairman, as was communicated in the budget debate last year, BHB was in the process of developing a new strategic plan that would outline its plans for the fiv e years from 2021 to 2026. Over 360 leaders and staff from across BHB attended forums, workshops and filled in surveys, and over 400 community members participated with their insights and perspectives. In April 2021, the new strategic plan was published, and the shift was to focus BHB on a vision to pursue excellence through improvement, to make Bermuda proud. The document can be read in full on the BHB website. The key pillars of the strategy are: care, people, performance and collaboration. Major projects such as the electronic medical record, performance reporting and an integrated healthcare programme, are foundational stones of the strategy. 564 7 March 202 2 Official Hansard Report
Bermuda House of Assembly Key performance indicators
Hon. Kim N. Wilson: Mr. Chairman, BHB built on its performance focus in this year, wi th integrated key performance indicators tied directly to the new strate-gic plan. This report goes to the Board each quarter to ensure oversight and governance, and includes clinical, workforce, support and administrative metrics. It includes trend data as well as monthly data, and highlights where variations require attention. In the last report made in January this year with figures up to December 2021, metrics included patient satisfaction for overall services which saw 90 per cent of patients rate servi ces as satisfactory for King Edward and 8 2 per cent for MWI. Elective surgery activity has been active following the postponements during the alpha and delta waves. Although non- pandemic -related surgery postponements remain a huge inconvenience for patient s when they happen, the cancellation rate for non-clinical reasons was at 1.8 per cent (which represented 10 cases) in December, and the mean for the fiscal year was 2.5 per cent . Reasons for non- clinical cancellations include d bed capacity, but also patie nts eating or drinking before surgery, patients cancelling the procedure, patients forgetting to call, patients not showing up or refusing, or the surgery was postponed as the surgeon ran out of time. Mr. Chairman, t he latest performance report also shows that hospital -acquired infections, which have always been quite low, were still declining. There has not been an MRSA bacteraemia infection, when an MRSA infection gets into the blood stream, recorded since February 2021. Improvements made to pres-sure injury processes continued to see relatively stable numbers, mostly on acute rather than long- term care wards. Mr. Chairman, t he Emergency Department in December was seeing increasing numbers with 2,301 attendances. Overall, Emergency is seeing slightly lower attendances compared to the start of the pandemic in March 2020. Year -to-date up to December 2021, on average it took about 21 minutes for a patient to be triaged after their arrival, and about 30 minutes to see a physician once in an emergency bed. The average time to complete care for an emergency visit is within three hours for people who are discharged. Where delays are felt most is in the admission from emergency to a bed. In December it took 442 minutes to get a bed assignment from emergency and an average of 596 minutes to be admitted to the ward. This relates to the very high occupancy rates on the wards which has been at about 95 per cent most times. There is a patient flow board working on improving bed availability, and the implementation of the electronic medical record which I will cover in this brief includes a bed management component which will also assist in the efficient management of this pro-cess. Within Diagnostic Imaging, wait times have been impacted during pandemic waves when nonurgent elective scans were postponed. Emergency and urgent scans have never been postponed, and are usually carried out within 24 hours. On average, the wait time for other scans has been nine days, so less than two weeks from referral. Cardiac diagnostics were on average 21 days from referral. BHB’s vacancy rate was 11.6 per cent in January with 12 active nurse vacancies, although 42 nurses are appointed but not yet on Island, resulting in pressures that were exacerbated by the absences caused by omicron espec ially.
Accreditation
Hon. Kim N. Wilson: Mr. Chairman, BHB undertakes a number of specialist accreditation surveys as well as a hospital -wide process. These are processes in which external surveys mark BHB’s adherence to pa-tient quality and safety standards. They are checked through documentation checks, process checks and interviews. Hospital -wide accreditation is with Accreditation Canada and the next survey is 2023. Last year, BHB’s substance abuse services achieved specialist accreditation with the Commission on Accreditation of Rehabilitation Facilities. This year, two specialist accreditation surveys were successfully maintained. The BHB lab was accredited by the Joint Commission International, and its mammography services was accredited by the College of American Radiology.
Primary Stroke Care Centre Certification
Hon. Kim N. Wilson: Mr. Chairman, i n 2018, BHB entered into an agreement with Johns Hopkins Medi-cine International, part of which was to establish a primary stroke centre at BHB and to be certified as such by an accredited body by 2022. BHB has worked very closely with the Johns Hopkins team during this time, and impressive improvements have been made that are improving outcomes for stroke patients in Bermuda every day. Mr. Chairman, there are about five stroke patients every week who come to BHB, and the response within BHB involves emergency, diagnostic imaging, pharmacy, critical and acute care inpatient, and rehabilitation services. In 2020, 25 per cent, or one in four people who had strokes in Bermuda, were under the age of 60. Seventy -three per cent of strokes occurred in the Black population. Mr. Chairman, education has been ongoing about recogni sing stroke symptoms because the most important factor in getting effective stroke t reatment is seeking care within the first four hours. Getting to hospital in time can make the difference between lasting disability and a near -normal recovery.
Bermuda House of Assembly Mr. Chairman, i n addition to education, BHB has a multi -disciplinary team working with Johns Ho pkins to ensure that when someone does present at Emergency with a stroke, we deliver the best possible care. A Brain Attack Team (BAT) has been estab-lished and uses a crisis communication cascade to quickly respond. In 2021, BHB announced it had launched the world’s first trans -oceanic telestroke service in partnership with Johns Hopkins. Mr. Chairman, this allows BHB patients to benefit from BHB and Johns Hopkins clinicians working together in real -time to make the time- sensitive treatment recommendations . Mr. Chairman, a local telestroke service was initially established including Emergency physicians with hospitalists and local neurologists. In December 2020, it went trans -oceanic with Johns Hopkins physicians joining the local team. And in July of this year it was reported that there had been the first trans - oceanic transfer from BHB to a comprehensive stroke centre in the US for the removal of a large clot, a sur-gery that is not possible in Bermuda. This is a time sensitive procedure, as patients have t o be at the overseas hospital within 16 hours of the onset of symptoms. Depression screening for stroke patients has also been established to cater to the emotional and mental health toll that strokes can have on an individual. Mr. Chairman, aiming to be c ertified as a primary stroke centre requires BHB to demonstrate ex-cellence in the care of stroke patients across multiple departments, for staff across the organisation to demonstrate they can recognise strokes, and for there to be proof of ongoing educati on in the community. BHB is required to report on key performance indica-tors, including having all clients with suspected stroke getting timely brain imaging, timely treatments and assessments, admission to a dedicated stroke unit, avoidance of preventable complications, length of stay, mortality rates, rehabilitation rates, undertaking timely falls assessments, depression screening, and cognitive impairment screening. At the end of February, BHB underwent a certification process with Accreditation Canada as a pri-mary stroke centre. We are looking forward to the results in the near future.
Other clinical improvements
Hon. Kim N. Wilson: Mr. Chairman, breast screening took a big leap forward at BHB in 2021 with the introduction of BHB’s first 3- D mammography machine and first breast ultrasound equipment. 3- D mammography offers improved image quality, and breast ultrasound will be offered to women with denser breasts as these are harder to read on mammograms. The earlier breast cancer can be diagnosed, Mr. Chairman, the better the chances people have of a full recovery, and this improvement in clinical equipment will help us diagnose earlier and improve outcomes for women in Bermuda.
Integrating care in the community
Hon. Kim N. Wilson: Mr. Chairman, BHB has been shifting its clinical structure over the last year to better reach patients where they are in the community. This shift has been across King Edward and MWI. It is part of BHB’s strategy to deliver existing services closer to the people who need them, to connect services around the patient, and to collaborate in the delivery of care across departments within BHB, and with other organisations and providers in the community.
Supporting people with mental health issues in court
Hon. Kim N. Wilson: Mr. Chairman, in September of 2021, BHB announced a joint initiative between the Mid-Atlantic Wellness Institute, the Magistrate’s Court, the Department of Court Services and Bermuda Police Services following a pilot that started in February 2021. The pilot w as for a new liaison and diversion officer position (LDO), filled by a psychiatric nurse, who will support people with mental health challenges who are attending court or interacting with the police. Mr. Chairman, “A ttending court and interacting with poli ce can pose unique challenges for some people with mental illness es.” This is according to Mr. Preston Swan , who added : “There are specific methods that can be used to effectively communicate with such persons, but it is complex as the methods vary based on the person’s particular challenge or diagnosis. Psychiatric professionals are best qualified to recognise this and interact appropriately. ” During the 11-month pilot, the LDO had 510 encounters with individuals seeking support . Thirty - three per cent of them were known to MWI, and 18 per cent were current clients.
Integrated healthcare clinic at the Lamb Foggo Urgent Care Centre Hon. Kim N. Wilson: Mr. Chairman, in June of 2021, BHB launched an integrated healthcare clinic at the Lamb Foggo Urgent Care Centre. Run as a pilot, the clinic brought together mental health outpatient services, patient -centred medical home appointment s, asthma and diabetes appointments , and offered patients who needed these services the opportunity to receive their care from th ese areas in the east end, rather than travelling to King Edward or MWI. Despite going through the delta and omicron COVID -19 surges, the clinic has continued running offering mostly in- person, but also some remote appointments via phone and W ebex. As of February, there had been nearly 400 attendances at the clinic 566 7 March 202 2 Official Hansard Report
Bermuda House of Assembly which runs once a week in the daytime, when the UCC is not being used for urgent care services. Mr. Chairman, not only is this more convenient for patients in the east end, but the centre runs from an available vacant space owned by BHB. Over time, this type of multi -clinic service in the community is easier for patients to access, hopefully improving the management of chronic illnesses and reducing emergency and inpatient admissions.
Other mental health services in the community
Hon. Kim N. Wilson: Mr. Chairman, in October of 2021, BHB announced that it would be piloting the delivery of mental health services from the Hamilton Health Centre in partnership with the Department of Health. A simil ar pilot was also underway in partnership with a GP’s community office. The goal is like the integrated healthcare clinic, aiming to bring mental health services closer to those who need it and in settings where people will feel more relaxed.
Community in tellectual disabilities team launched Hon. Kim N. Wilson: Mr. Chairman, a community intellectual disabilities team was launched in July of 2021 to support clients with intellectual disabilities who are living at home with their families. A residential service in group homes is offered by the Intellectual Disabilities Department, as is a day service. However, this multi- disciplinary team brings a number of professions together to support families and clients at home, improving access to safe and equitable c are, increasing levels of independence and helping clients develop new skills so they can thrive in their community.
Systems and Technology
Hon. Kim N. Wilson: Mr. Chairman, t he major system implementation at BHB was the launch of the electronic medical record implementation. This is a huge undertaking for BHB, and while over 95 per cent of non-federal acute care hospitals in the US have electronic medical records, this is BHB’s first organisation-wide, integrated system. The selected vendor is Cerner and their EMR product is called Millennium. It was selected in 2019 after a competitive RFP process that involved approximately 100 BHB staff, and was approved following a full business case going to the Board. The implementation timing was driven by the retirement of an old clinical system that was no longer supported by the vendor, and had been planned to start in 2020 and go live in 2021. I first , Mr. Chairman, announced this project in the budget debate in March of 2020, but it was postponed due to the emergence of COVID -19, by a year. The project launched last April and is due to go live later in 2022. Mr. Chairman, this is a significant implementation programme. Over 350 BHB staff were involved in over 1,000 workshops and meetings in 2021 just for the design and build process. Looking ahead, a further 1,000 staff will be involved in testing the system and training ahead of the go- live, expected by early Fall.
The ChairmanChairmanMinister, is this a convenient place to pause? Or would you like to finish up thi s topic. Hon. Kim N. Wilson: This is a convenient place to pause, Mr. Chairman, thank you.
The ChairmanChairmanThank you very much. Members of the public, we are in the Committee of Supply dealing with the Estimates of Revenue and Expenditure for the year 2022/23. You have been listening to the Health debate led by the Minister of Health Kim Wilson. This debate lasts five hours and will …
Thank you very much. Members of the public, we are in the Committee of Supply dealing with the Estimates of Revenue and Expenditure for the year 2022/23. You have been listening to the Health debate led by the Minister of Health Kim Wilson. This debate lasts five hours and will conclude at 4:37 this afternoon. Minister Wilson, if you could kindly take us to lunch and then the Committee will return in Committee at 2:00 pm. Minister Wilson. Hon. Kim N. Wilson: Thank you, Mr. Chairman. Mr. Chairman, I move that we now recess to lunch and return at 2:00 please.
The ChairmanChairmanThank you. We will see you in Committee at 2:00 pm. Thank you all. Proceedings in Committee suspended at 12:33 pm Proceedings in Committee resumed at 2:00 pm [Mr. Scott Pearman, Chairman] COMMITTEE OF SUPPLY ESTIMATES OF REVENUE AND EXPENDITURE FOR THE YEAR 2022/23 MINISTRY OF HEALTH [Continuation thereof]
The ChairmanChairmanHonourable Members, and the listening public, we are in Committee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year 2022/23. At the moment, this is a five- hour debate on the Ministry of Health covering Heads 21, 22, and currently 24. We have [Head] …
Honourable Members, and the listening public, we are in Committee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year 2022/23. At the moment, this is a five- hour debate on the Ministry of Health covering Heads 21, 22, and currently 24. We have [Head] 91 still to follow. [We have] the Honourable and Learned Minister for Health, Kim Wilson, who is currently addressing Parliament.
Bermuda House of Assembly Thank you, Minister. When you are ready, please continue.
HEAD 24 —HOSPITALS
Systems and Technology
[Continuation thereof] Hon. Kim N. Wilson: Thank you, Mr. Chairman. Prior to lunch I was in the midst of discussing Head 24, the Hospitals, and I was drawing Honourable Members’ attention to the Systems and Technology initiatives of the hospital. Mr. Chairman, there is a significant implementation programme concerning systems and technology. Over 350 BHB staff were involved in over 1,000 workshops and meetings in 2021 just for the design and build process. And, Mr. Chairman, you w ill recall that before lunch I was speaking in particular about the Cerner project, the electronic medical records. Looking ahead, a further 1,000 staff will be involved in testing the system and training ahead of the go- live, expected by early fall. Mr. C hairman, why have an electronic medical records system, or EMR, now? The retiring clinical system does not have a replacement. Hospitals around the world are moving to electronic medical records because they bring much compelling benefits to the quality an d safety of patient care, offer innovation opportunities and support improved operational efficiency. Patients will not have to repeat information between departments. They can schedule multiple appointments with one call, and there will be built in alerts that help clinicians avoid medication errors or duplicating tests, or flag for sepsis or stroke which both require very fast treatments to save lives. For BHB, it means several IT systems and platforms can be replaced. Indeed, the cost of one integrated E MR across clinical and support services, if you take out implementation costs, is about the same as the total cost of the different systems which all had to be individually supported with maintenance and upgrades . Mr. Chairman, as was communicated in 2020 and 2021’s budget speeches and communicated via release and the Public Access to Information contract listing, the total cost of the entire EMR contract cost over 10 years including implementation, consultation, maintenance and upgrades is about $55 millio n paid over 10 years. However, with the savings made on other IT systems, the actual cost is closer to $30 million paid over 10 years, and if operational efficiencies offered by the EMR over the longer term are considered, the project is expected to be cos t-neutral after 10 years. The electronic medical record is not the only system and technology improvement at BHB. A new platform for patient safety reporting that provides eas-ier reporting and follow -up and risk management capabilities went live in October 2021, and a new policy management system that supports policy updating and compliance went live last month. In conjunction with the increased reliance on technology, cybersecurity training is now required by all BHB staff using computers, and there was a special cybersecurity awareness month to improve awareness and understanding of how to spot phishing and hacking attacks. Multi -factor authorisation was introduced for remote access in this year, and access to email outside of BHB changed to improve securi ty.
Facility Improvements
Hon. Kim N. Wilson: Mr. Chairman, BHB installed its new generators in 2021 for the KEMH General Wing following the failure experienced in 2020 during the BELCO blackout. The cost of the generators, as was listed in the 2020 PATI listing, was in the order of $1 million, but they will ensure that services can safely transfer to generator power in the event of any future disruptions. At MWI, a new electrical system was installed and new air handlers were installed in the KEMH General Wing.
Community Activities
Hon. Kim N. Wilson: Mr. Chairman, BHB undertook a number of community activities in 2021, including a live Zoom panel with MWI and community experts discussing addiction and recovery for recovery month in September, a motorcade through Bermuda to rec-ognise International Day of Disabilities, the annual art and photography exhibition for MWI clients took place at the Bermuda Society of Arts, and a “Be Kind” promotion was run with a logo on Marketplace bags. There was also activity around World Blood Donor Day in June, with the theme ‘give blood and keep the world beating. ’ Following a remote launch by the Pan American Health Organization which included Bermuda, the BHB’s Bermuda Blood Donor Centre held a virtual dance off to draw attention to the need for blood donation with loc al youth dance group DanceSations, the Royal Bermuda Regiment, H&H Gombeys and the BHB’s Allied Health team who had won an internal blood drive competition in 2021. There were online interviews with local donors. The Hamilton Princess donated gifts that went into a raffle for new and existing donors, and Freisenbruch Meyer was announced as the winner of the Corporate Blood Drive Competition 2021.
Looking Ahead Electronic Medical Record
Hon. Kim N. Wilson: Mr. Chairman, BHB’s implementation of the new EMR is expected to go live late in 2022. This year, BHB’s focus will be dominated by 568 7 March 202 2 Official Hansard Report
Bermuda House of Assembly the testing of workflows in the new system and training of over 1,000 staff. It is a major implementation and BHB is shifting from many manual and paper - based processes to streamlined electronic ones, and many fragmented systems are being replaced by the one EMR. It offers so many benefits to patient safety, and opportunities to improve quality that the project is one of a clinical transformation, not j ust installing an IT system. I look forward to seeing the successful im-plementation and the benefits being realised by patients in Bermuda.
Laundry Upgrade Hon. Kim N. Wilson: Mr. Chairman, BHB will start its laundry upgrade project in the upcoming fiscal year, which will cost more than $4 million in total costs. The Laundry department supports the entire hospital service and is critical to the delivery of safe, high- quality patient care. Like all departments, the demands on it through the pandemic have only increased due to in-creased infection prevention processes. The ageing washing machines had been experiencing increasing maintenance and repairs issues and have had to be supplemented by a commercial laundry operation to ensure services were not interrupted. While new equipment has been purchased and used in the older laundry, a full upgrade of the area is required to make best use of the equipment and to ensure the work area and flow is improved for staff.
Integrated Health
Hon. Kim N. Wilson: Mr. Chairman, BHB’s healthcare integration programme is looking to improve healthcare access and outcomes by offering existing services in the community, collaborating with partners outside of BHB and involving patients and partners in the planning of improvement s.
MWI Directorate Plan Hon. Kim N. Wilson: Mr. Chairman, I was personally very pleased to see that a plan for mental health, substance abuse and intellectual disability services was being developed by staff and clients at the MidAtlantic Wellness Insti tute. It is very close to publication and the community can expect to see it published in late spring. I was given an overview of the plan, and I am very excited that it is addressing some of the key is-sues being experienced by people who need MWI service s, from shifting outpatient and residential services from the institutional environment to community settings, being a part of a promotion that overcomes stigma, to addressing the gap that currently exists on Island for youth with complex needs. At its heart is the recovery model of care, which seeks to include pa-tients in their recovery journey as an equal partner with clinicians. Initially introduced in the 2010 MWI Mental Health Plan, at a time when the recovery model was quite new internationally, this current Plan will be building on what has been achieved so far and recognises that the recovery model is now the standard of care recognised around the globe.
Cancer Pathway
Hon. Kim N. Wilson: Mr. Chairman, work on the cancer pathways of care at BHB st arted in 2021, and an incredible amount of work has been undertaken that has involved patients, as well as local and overseas partners. Focus has started on the breast cancer care pathway. Out of this collaborative process, as we enter into 2022, we are going to see the appointment of a cancer coordinator who will help support patients through their emotional and clinical journey. There will also be a rapid pathway for newly diagnosed breast cancers to help improve the time between diagnosis and treatment, as well as a rapid diagnosis clinic, which will enable people with suspected cancers to get all their required tests together, such as mammograms, ultrasounds and biopsies, rather than booking appointments and having tests separately. This is not only more convenient, but can also help reduce the time it takes for a diagnosis to be made. A similar process improvement is underway in the prostate cancer pathway and will continue through 2022.
Palliative Care
Hon. Kim N. Wilson: Mr. Chairman, there is also work in the palliative care service that will be working in collaboration with patients, families and partners to improve care in Bermuda. Mr. Chairman, this concludes Head 24, Hospitals. Mr. Chairman, moving on to the final Head, 91, insurance.
HEAD 91 —HEALTH INSURANCE
Hon. Kim N. Wilson: Mr. Chairman, I will now present to you the budget for Head 91, Health Insurance, found on pages B -169 to B -171 of the Budget Book. Mr. Chairman, the mission of the Health Insurance Department (HID) is to provide equitable ac-cess to affordable benefits and collaborative programmes, leading to improved community health outcomes. As the demand for affordable health insurance in Bermuda continues to grow, the Health Insurance Department provides a viable option that is accessible to all Bermuda residents. If the last two years have
Bermuda House of Assembly shown us anything, it is that the availability of an affordable health package remains essential. Mr. Chairman, for fiscal 2022/23, $2,669,000 has been allocated for this Head. The Head 91 budget remains the partial source of funding behind the Health Insurance Department (HID), which is responsible for developing and administering the Government’s social health insurance products offered to the public, including the following: • the Health Insurance Plan (HIP); • the FutureCare Plan (FutureCare); • the Mutual Reinsurance Fund (MRF); and • the Government Subsidy Programmes (Sub-sidy), which pay towards the hospitalisation costs of select populations. Mr. Chairman, effective Nov ember 1, 2021, HID’s policyholders saw premium increase of $30.00. The HIP monthly premium increased from $429.24 to $459.24, which is an increase of 6.9 per cent, while the monthly premium for FutureCare increased from $500.14 to $530.14, an increase of 6 per cent. Prior to the said increases, the plans had seen no increase to monthly premiums since 2015, due primarily to Government’s financial support and transfers from the MRF. HID was very pleased to introduce a new prescription drug benefit, which cov ers 100 per cent of costs up to $1,000 per policy year for HIP policy hold-ers, and an increase of $1,000 to the existing FutureCare prescription drug benefit raising it from $2,000 to $3, 000 per policy year, which also covers 100 per cent of costs up to the said amount. Since the inception of HIP’s prescription benefit four months ago, 1,432 policyholders have benefitted with almost $350,000 paid in claims, while the increase in FutureCare’s prescription drug benefit has benefitted 1,108 people thus far and resulted in an additional $385,000 in claim payments since November. The Health Insurance Department is also pleased to be administering the Maternity Benefit Pro-gramme, which was implemented last November. The goal of the programme is in keeping with th e Government’s mandate of ensuring equity and access to essential care, in this case, maternity -related care. The programme pays maternity -related claims for up to 100 pregnant women who qualify, based on their uninsured status. Mr. Chairman, eligible pol icyholders continued to benefit from the Personal Home Care (PHC) benefit during fiscal 2021/22. The Health Insurance Department continued to provide the Personal Home Care (PHC) benefit to eligible policyholders, resulting in homecare gaps being filled for our seniors, as well as providing a means of income for family members who act as caregivers for their loved ones. At this present time, approximately 305 policyholders consistently use the Personal Home Care benefit, with HID receiving an average of sev en requests for the benefit on a weekly basis. HID’s estimated expense in Personal Home Care claims over fiscal year 2021/22, is $7.2 million, an approximate increase of 2.1 per cent from the previous 2020/21 year. Proper assessments and education by our Nurse Case Management Team have effectively managed cost containment for the Personal Home Care benefit, while COVID -19 and natural departure from the programme have also played some role. As families navigate a new normal with COVID -19, HID is seeing a sm all increase in care claims, which accounts for the estimated increase previously noted. As a result of the pandemic, HID continues to administer their in -home assessments via telephone and video. The average wait time for assessment is seven business day s and the nurse case management team can complete as many as eight to nine assessments per day. This includes reassessments, which are administered at the request of the family, responsible party or healthcare provider, when clinically indicated, or on an annual basis to ensure appropriateness. Mr. Chairman, HID remains committed to the Enhanced Care Programme (ECP), for the treatment of chronic non- communicable diseases for the underinsured and uninsured within our community. The programme continues to pr ovide access to primary care, which enables participants to receive treatment that they may not have had access to otherwise. Currently the programme has 99 active participants. From inception, the ECP has provided participants with access to their primary care provider and prescription medications required to manage their chronic disease without the burden of a high co- pay. The programme’s clinical measures demonstrate that for this cohort the overall disease trend is moving in a positive direction. Mr. C hairman, it is evident that the ECP continues to provide access to healthcare services for those most in need. Mr. Chairman, the final review of the 31 March 2017 Draft Financial Statements has recently been completed by the OAG. The department continues to work through the remaining fiscal years. Mr. Chairman, I will now summarise the operating results of the various funds under HID’s administration, followed by a discussion of the performance indicators for the department over the period.
Operating Results
Hon. Kim N. Wilson: HIF (Health Insurance Fund) Operating Results: The HIF includes two products and policyholder groups, those being HIP and FutureCare. The Fund projects to have a total estimated headcount at the end of fiscal year 202 1/22 of 8,540 which is a -1 per cent decrease compared to fiscal year 2020/21. • Projected, gross policyholder HIF premiums earned for fiscal year 2021/22 are $49.4 mil570 7 March 202 2 Official Hansard Report
Bermuda House of Assembly lion, an increase of $4.2 million or 9.3 per cent from 2020/21. • Claims incurred in 2020/21 equalled $33.4 million with 2021/22 claims estimated to be at $37.7 million. • HIF has allocated approximately $3.95 million in administrative expenses in fiscal 2021/22.
FutureCare Operating Results Hon. Kim N. Wilson: The projected headcount for Futur eCare is approximately 4,781 persons at 31 March 2022, a decrease of four [persons] or 0.1 per cent compared to 31 March 2021. • Projected FutureCare premiums earned for fiscal 2021/22 are $29.4 million, an increase of $1.9 million, or 7 per cent from 2020/21. • Claims incurred for 2021/22 are estimated to total $31.1 million as compared with $26.4 million in 2020/21.
HIP Operating Results Hon. Kim N. Wilson: The projected headcount for HIP is approximately 3,759 persons at 31 March 2022, which represents a decrease of 70 persons or 2 per cent compared to 31 March 2021. • Projected HIP premiums earned for fiscal 2021/22 are $20 million, which represents an increase of $2.3 million, or 12.9 per cent from 2020/21. • Claims incurred for 2021/22 are estimated to total $6.6 million as compared with $7 million in 2020/21. • Administrative expenses of approximately $1.98 million will be incurred by HIP for the fiscal year 2021/22.
MRF Operating Results
Hon. Kim N. Wilson: The MRF premium for 2021/22 remained the same as 2 020/21 at $331.97 per person per month for the months of April through October 2021. Effective November 1, 2021, the MRF premium rate was changed to $376.97, an increase of $45.00, or 13.6 per cent. This increase from the 2020/21 premium of $331.97 resulted from a reallocation of premium in the remodelling of the Standard Health Benefit payment structure primarily to support the modernisation of the BHB Standard Health Benefit reimbursement as discussed previously. The total projected premiums to be received by the MRF for the year ended 31 March 2022 total $192 million, representing an increase of 4.4 per cent compared to fiscal 2020/21. Administrative expenses of $288,000 have been allocated to the MRF for the 2021/22 fiscal period. Subsidy Operating Results Hon. Kim N. Wilson: The total forecasted claims paid for hospitalisation under the Youth, Aged and Indigent Subsidy Programmes are $116.6 million for the year ended 31 March 2022. These claims, which are processed and adjudicated by the Healt h Insurance Department, are paid from the Consolidated Fund in the hospital budget and represent an increase of [$]11.1 million when compared with fiscal year 2020/21.
Performance Measures (Qualitative Service Performance)
Hon. Kim N. Wilson: Mr. Chairman, we will now consider the d epartment’s Qualitative Service Performance found on page B -171 of the Budget Book. HID reviewed and revised its performance indicators, with a focus on the following objectives: • improving HID stakeholder level of engage-ment and ease of doing business; • reducing paper use; • operationalising Personal Home Care means testing; and • improving reliability and efficiencies in the use of digital applications. Mr. Chairman, I would like to thank HID’s business partners: Sutherland Healthc are Solutions, Argus Insurance, LifeWorks, Global Medical Man-agement Inc, and ProServe, who continue to provide support to the d epartment. I would also like to thank the team at the Health Insurance Department, as well as the Health Insurance Committee, for their hard work, commitment and perseverance, during what has been another challenging year for Bermuda. Mr. Chairman, this brings me to the end of my presentation on Head 91, Health Insurance. Mr. Chairman, just before I close, there are just two quick matters that I wanted to raise. One was with respect to the question that was asked at the beginning of this debate, Schedule 1, found at page C - 18. The SART [Sexual Assault Response Team] programme, the sum is $9,450. In my brief I indicated $10,000 and the Budget Book says $9,000. The exact amount was in between, $9,450.
The ChairmanChairmanSorry, Minister can I just stop you? What page? Did you say C -18? Hon. Kim N. Wilson: Page C -18, Schedule 1, SART.
The ChairmanChairmanYes. Hon. Kim N. Wilson: Line item 7088.
The ChairmanChairmanYes. Bermuda House of Assembly Hon. Kim N. Wilson: I represented in my Budget Brief, $10,000. The Budget Book says $9,000. The actual sum is in between, $9,450.
The ChairmanChairmanI see, $9, 450 on line item 7088 at page C -18 of the Budget Book. Thank you, Minister, for that correction. Hon. Kim N. Wilson: Thank you. And one more thing, again before I wrap up, is an issue from last week as it relates to the question of …
I see, $9, 450 on line item 7088 at page C -18 of the Budget Book. Thank you, Minister, for that correction. Hon. Kim N. Wilson: Thank you. And one more thing, again before I wrap up, is an issue from last week as it relates to the question of guarantees, again in the Budget Book, the BHB increase of $500 million guarantee. Las t week a question was raised regarding the reported Bermuda Government Guarantee for the Bermuda Hospitals Board in relation to last year’s Budget Statement report at $276.8 million versus the current 2022/23 Budget Statement reported guarantee figure of $ 787.7 million, essentially an estimate of $500 million difference, Mr. Chairman. Previously the Bermuda Government financial statements for the Consolidated Fund reported the principal value of Bermuda Government guarantees; however the Bermuda Hospitals Board guarantee amount has more recently been adjusted on the financial statements to record the full obligation amount of the guarantee. Therefore, the prior year’s Budget Statement recorded the BHB guarantee with a princi-pal amount of $276.8 million. How ever, this year it has been adjusted to be consistent with the Bermuda Government’s 2021 Consolidated Fund Financial Statement and it is recorded in the Budget Statement at the full obligation amount of $787.7 [million].
The ChairmanChairmanThank you, Minister. Are you able to tie in a particular page for that correction? Hon. Michael H. Dunkley: Page C -29.
The ChairmanChairmanI am grateful to the Honourable Member. Page C -29, Minister? Hon. Kim N. Wilson: Schedule 5, p age C -29. That is correct.
The ChairmanChairmanAnd can you just assist us with what number needs to change on that page? Hon. Kim N. Wilson: No number needs to be changed on that page. It is correct. I am just explaining the justification from the question that arose previously by members of the media i nsofar …
And can you just assist us with what number needs to change on that page?
Hon. Kim N. Wilson: No number needs to be changed on that page. It is correct. I am just explaining the justification from the question that arose previously by members of the media i nsofar as [to why there] was a difference [between the current and] the previous Budget Book.
The ChairmanChairmanI am grateful. Thank you, Minister. Honourable Member, and members of the listening public, we are in Committee of — Hon. Kim N. Wilson: Mr. Chairman, sorry, Mr. Chairman —
The ChairmanChairmanYes, go ahead, Minister. Hon. Kim N. Wilson: I had a little insert before I concluded.
The ChairmanChairmanOh, please do. Hon. Kim N. Wilson: In closing, as you can see, the mandate of the Ministry of Health is wide ranging and expansive. We are lucky to benefit from the dedication and expertise of a broad range of health and business professionals whose commitment to public health is …
Oh, please do. Hon. Kim N. Wilson: In closing, as you can see, the mandate of the Ministry of Health is wide ranging and expansive. We are lucky to benefit from the dedication and expertise of a broad range of health and business professionals whose commitment to public health is unwavering, despite the deep challenges with resources and the growing heal th needs in the community. I am indebted to our staff and to our health partners who work miracles on a daily basis to plug gaps and catch people who have fallen through the net, to care for their health and social needs. Their herculean efforts have to b e recognised and applauded by the whole community because, without them, Bermuda would look very, very different. We look forward to further reforms of the health system coming soon, to address the known deficits and achieve the Ministry’s vision for “ healthy people in healthy communities .” Mr. Chairman, this concludes my budget brief for the Ministry of Health and the four heads, namely, Head 21 Headquarters; Head 22 Department of Health; Head 24 Hospitals; and Head 91 HID. Thank you, Mr. Chairman.
The ChairmanChairmanThank you, Honourable Minister. Members, and members of the listening public, we are currently in the Committee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year 2022/23. This is a five- hour debate focusing on the Ministry of Health. We have just over two …
Thank you, Honourable Minister. Members, and members of the listening public, we are currently in the Committee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year 2022/23. This is a five- hour debate focusing on the Ministry of Health. We have just over two hours left to run in this debate. We just heard from the Honourable Minister, Kim Wilson. The debate will end at 4:37. And I see on the screen before me the Honourable Shadow Minister, Michael Dunkley. Yes, MP Dunkley. Hon. Michael H. Dunkley: Thank you, Mr. Chairman, I appreciate the opportunity to speak. Can you hear me clearly?
The ChairmanChairmanYes, I can. Hon. Michael H. Dunkley: Thank you. I would like to start by thanking the Minister for the bri ef that she provide d today. It certainly helped to answer a lot of questions. I will have some questions and comments along the way. 572 7 March 202 …
Yes, I can.
Hon. Michael H. Dunkley: Thank you. I would like to start by thanking the Minister for the bri ef that she provide d today. It certainly helped to answer a lot of questions. I will have some questions and comments along the way. 572 7 March 202 2 Official Hansard Report
Bermuda House of Assembly I want to start out by thanking all of the staff throughout this Ministry. Quite often they are unsung heroes in what they do. I also want to take this opportunity to thank the Minister, the Honourable Member herself, for all of the work that she has done. We have not always agreed on the approach, on the strategy, but the Honourable Minister needs to be acknowledged for her time and effort, which has been very commendable certainly through a very difficult period with COVID -19 continuing to be on our shores and causing us challenges. I say that, Mr. Chairman, because as I go through my presentation today I will have much com-ment and along the way I will have some criticism. But it should never be taken personally or to a party or to an entity. It is about trying to understand the budget, trying to put us in a better position because as the Minister has shown through her pres entation, we have some very serious challenges that we face in the world of health and certainly with our economy in Bermuda that I think is manifested in a higher rate because of the challenges we face with our economy. So, starting my comments, Mr. Chairman, in regard to the Ministry of Health, it is interesting, when I look at the numbers, because I have been doing this for quite some time and I appreciate the opportunity to look at the numbers. To me the Budget Book is a catalogue of useful information, if you understand how to interpret it and follow it through the years and do some research back, as I am sure most Members do. The Ministry of Health has now grown to be the second largest Ministry within government at $194.5 million. Only [the Ministr y of] Finance is larger. And [the Ministry of Finance is larger] because of the $130 million in debt and loan guarantees that we have to honour. And so the Ministry of Finance tops out at $239 million. But the Ministry of Finance, while it may be number one, the Ministry of Health certainly is ––in expenses put towards the people ––the most critical ly important Ministry with these four departments —the Ministry itself, the Department of Health, the hospitals, and insurance. Interesting enough, Mr. Chairman, as we will talk about hospital financing through this five- hour debate, the hospital is now 32 per cent of Ministry funding, which is a significant amount. And the hospital, if you look at it in the bigger picture of government funding, is now 14 per cent of government funding. This does not include the mutual re- insurance fund payments to the hospital of about $330 million. So, Mr. Chairman, these numbers certainly illustrate the importance of the Ministry, illustrate the importance of the chall enge we face within the Ministry, illustrate the significance of the challenge within the Ministry and goes to show that in this Budget Debate and throughout the year we need to keep digging and looking at the numbers because, while we spend a lot of money , we need to make sure that we are getting value for money and we are saving where we can and how we can, but never jeopardising the quality of care for the people of Bermuda and those who might be living on the Island or visiting and need services. So, t here is no doubt that the Minister has reflected on [this] during her presentation, that we have some serious challenges. Hopefully we are at the tail end of the COVID -19 pandemic, and I believe we are. And by the tone and the comments in the Minister’s brief, I believe Government thinks we are as well because we have to live with COVID -19. But we certainly have not heard as much about COVID -19 this year as we did last year. And we have other challenges to deal with, but certainly COVID -19 is still with us and we still need to pay attention to it. No doubt, we have a number of chronic diseases that are taking a lot of time, energy and expense to deal with, such as diabetes, obesity, stroke, heart issues, and kidney challenges. It is sad, it is a very sad reflection of ourselves, Mr. Chairman, that Bermuda as a country where you can be outdoors almost every day of the year, other than when the weather is very poor , that our health generally as a society is not as good as it should be. There is no excuse for t hat. It is just lifestyle. It is just a sedentary state that we are too often in. I know the OBA supports any programmes to try to improve prevention and get people moving out and about . What is concerning about that as well, Mr. Chairman, is that the you nger people seem to be living a life of less action and less movement and more sitting around playing on phones or on games. And this causes a real challenge as we go forward. In addition to the challenges we face there is the cost of healthcare, which thi s Government has wrestled with for a number of years, and, certainly, the cost of insurance. So, as I start this examination of the budget today, it is clear that we have real and pressing concerns. And they are compounded by the fact, Mr. Chairman, and I say this with all due respect, that critical reports ––which are legislative requirements ––are lacking in so many areas, not only to some extent at the Bermuda Health Council, but to a large extent at the hospital. And I will come more to that in my comments. In addition, Mr. Chairman, COVID -19 has, for all intents and purposes, consumed our lives for the past two years. Thankfully, we see less talk about it because people are ingrained that we still must pay attention to what is going on around us, and we see less talk about it in the media because we have other more pressing problems. But it is still with us. For two years it has consumed us. It has drained resources, it has increased debt. But, most importantly, it has changed and altered people’s lives. Meanwhile, within this department, specifically, and looking at health, usual and arising conditions and illnesses have been dealt with [promptly], if they are an emergency. But much of the rest of that had to
Bermuda House of Assembly be put aside because COVID -19 has consumed us and taken our attention and resources , and there has been a lack of availability for elective surgeries, as the Minister outlined. So, now as we try to catch up, Mr. Chairman, there will be a big impact on our facilities, there will probably be an impact on the cost involved. There will be an impact on insurance. And there might even be capacity issues. So we must figure out a way to deal with these challenges, because against the backdrop of the financial situation, we need to make sure that people get t he healthcare that is critical, especially in light that we have an ageing population with more and more seniors and they need their health conditions attended to at a quicker rate than most people because time is not on their side. And I can say that because I am approaching [being] a senior, and I feel time easing away quite quickly, Mr. Chairman. So, there is much to be done. I was pleased to hear the Honourable Minister reflect on mental health through her presentation today, because we cannot underesti mate, or we cannot forget the impact on our mental health of COVID -19. We know it is an issue; we have talked about it. Individuals express it in different ways. There is still much that is underneath the surface [which] has not come out yet. Some only show it through time. Certainly adults tend to cover it up. And children tend to get involved in other things. But we do have a critical issue with mental health that must be dealt with over time. And that is another equation in the health of our community that is critical, and I am pleased to see that Government is putting some focus on it as the Minister outlined in her budget brief today. But if we do not think, if some people are not convinced that we have some real challenges in healthcare, just look at articles that come out all the time, not only throughout the world, but in Bermuda. And today, Mr. Chairman, if you will allow me to refer briefly to an article in the Royal Gazette today, by the Business Editor, Mr. Fox, it says, “Bermuda to face a ‘tsunami’ of chronic disease.” Well, I do not think we are due to face a tsunami of chronic disease, I think that the tsunami is here and we have to deal with it now. Typically, when people talk about tsunamis and hurricanes, the outlook is bleak and there is not much hope. But against that backdrop, Mr. Chairman, I want to make a brief point that it does not have to be that way, because through history we have managed to deal with significant challenges that we face d. Now, in the tsunami of chronic health [issue s], we will manage to deal with that as long as we are accountable, we are transparent and we get value for money. We cannot spend dollars chasing inefficient solutions and ineffective care. So this tsunami has to be dealt with, not only publicly but privately as well. We should appreciate just how severe it is, appreciate that we are all involved, even though we have good health, because we pay for it one way or the other through insurance premiums. And there will come a time when we will need our healthcare. But appreciate that we are all involved and we should do what we can to make sure that we face up to this tsu-nami of chronic diseases. First and foremost, when you are sick you need treatment, Mr. Chairman. But we need to do a better job of prevention, which is all of us. How many times, Mr. Chairman, have you and I and honourable colleagues heard about the person who gets sick and says, I’ll never let that happen to me again. But why do we have to wait until that time? The number of diabetics that I have bumped into my life down at the hospital who have had, unfortunately, a limb amputated and they will say, I’ll stop smoking; I will never do that again, and the next thing, there’s another limb gone because they have not been able to stop. We need to do better than that. So, with prevention there also has to be education in this crisis, because the crisis is here. So, with those introductory comments, let me start my comments specifically on page B -149 and I will roll into B -150 and B -151, Mr. Chairman, because the big issues —
The ChairmanChairmanYou said B -14 . . . sorry — Hon. Michael H. Dunkley: I will start with B -149, and then go to page B -150 and B -151. And I will keep you abreast of the pages as I move through hem.
The ChairmanChairmanSo this is Head 21, for those following in the Budget Book — Hon. Michael H. Dunkley: Ministry Headquarter.
The ChairmanChairmanPage B -149, the Ministry of Health. Thank you. Hon. Michael H. Dunkley: I thought the Minister laid out her brief quite well, the only unfortunate thing about it was when we got to Head 22, the Department of Health, there was jumping back and forth. But I managed to …
Page B -149, the Ministry of Health. Thank you.
Hon. Michael H. Dunkley: I thought the Minister laid out her brief quite well, the only unfortunate thing about it was when we got to Head 22, the Department of Health, there was jumping back and forth. But I managed to work through that. So, Mr. Chairman, the critical issues that we have to face today are the tail end of COVID -19, accountability of the Bermuda Health Council, our Na-tional Health Plan, the ability to put the hospital in a better financial position because, Mr. Chairman, quite interestingly enough, I was shocked that at the end of the two- and-a-half hour presentation by the Minister, that the guarantee on page C -29 was only sparingly referred to. And I will come to that more when I get to the Hospitals Board, but, Mr. Chairman, for that guarantee to have t o be written at a high level illustrates the severity of the financial challenges that we face at the hospital. I will deal more with that. 574 7 March 202 2 Official Hansard Report
Bermuda House of Assembly And then the fifth point is that we need to continue to deal with the myriad of responsibilities within the Departm ent of Health. And I will speak to those when I get to that Head. So, looking at the Ministry of Health in particular. It is quite interesting that in the Budget Book it is the first time that you will see the final numbers from two years ago. So, the Mi nistry of Health two years ago had an original budget of $193 million, and the final numbers came in for 2020/21 at $202.5 million. So, an increase of about $9 million. And that has tended to be an ongoing challenge through the years. If you look at page B -149, Mr. Chairman, the original numbers for 2021/22 and the revised numbers in the column next to it, you can see that the original number for 2021/22 is $187.2 million, and it has risen to $210.1 million, an increase of $22.9 million. That is significant . Now, I would suggest , [as I am] following the Minister’s presentation, that about $12.5 million of that to the Ministry of Health Headquarters is due to our attention to COVID -19. And as we [stated as] the loyal Opposition last year with the allocation for COVID -19 funding for this current financial year, which ends at the end of this month, we said that the funding was deficient. And that has now proved to be the case by $12.5 million. Thankfully, we have managed to deal with many critical issues along the way. Some mistakes have been made, but we managed to deal with many critical issues. But that was a significant shortfall. And then the other increase in the funding from the original to the revised estimate, and, Mr. Chairman, you will know that t he final estimate will come out this time next year, is another $11 million to the hospital which the Minister covered very briefly during her presentation. And then there is about a half a million [dollar] increase in the health insurance Head 91. So, if we look at the estimates for 2022/23 we see that the Headquarters, which we will talk about very shortly, has dropped to $15.9 million, so about a $5 million decrease. And most of that is because of less funding to COVID -19 as we hopefully face the tail end of it. There has been a decrease in the hospital funding back to the original hospital budget of 2021/22 of $147.2 million . And there has been a decrease in funding for Head 91, even though it does not show that in the Budget Book. I see a decrease beca use, actually, for the revised estimates, if you are following, Mr. Chairman, for 2021/22 it was $3.1 million. So, it was budgeted at $2.6 [million], we will actually spend $3.1 [million] and we are going back to $2.7 million. If you just reflect a bit do wn to the next line, Revenue, always of critical importance for the Government especially at this time of real challenge, we see a line that is very interesting (I will come to that more in a minute) where the revenue for the Ministry of Health Headquarter s, the original estimate for 2021/22 was $4.26 million. It actually ended up at $14.185 million, Mr. Chairman. And the budget estimate for 2022/23 is $22.1 million. I am rounding up very slightly. It is actually $22,055,000.
The ChairmanChairmanI am going to in tercede here for a moment, Honourable Shadow Minister. We are at page B -149 of the Budget Book for those following. And you are identifying the revenue numbers at Head 21 of the Budget Book at that page. Hon. Michael H. Dunkley: That is correct. …
I am going to in tercede here for a moment, Honourable Shadow Minister. We are at page B -149 of the Budget Book for those following. And you are identifying the revenue numbers at Head 21 of the Budget Book at that page.
Hon. Michael H. Dunkley: That is correct. And while you provide that clarification to those listening, I am not aware of the Budget Book actually being in PDF anywhere, and that might be very helpful for people following along, because I have had a couple of people contact me today . . . so, just a thought .
The ChairmanChairmanRight. Hon. Michael H. Dunkley: So, in my view, those revenue numbers are–– and I believe that they are vastly [underestimated] because of the travel authorisation application that has to be paid for ––so Government drastically underestimat ed the $4.26 [million] and then we took in $4.1 [million] and they …
Right.
Hon. Michael H. Dunkley: So, in my view, those revenue numbers are–– and I believe that they are vastly [underestimated] because of the travel authorisation application that has to be paid for ––so Government drastically underestimat ed the $4.26 [million] and then we took in $4.1 [million] and they are budgeting for $22 million. And I will come more to that as we go through. So, turning the page to B -150, going into the Ministry itself.
The ChairmanChairmanHead 21? Hon. Michael H. Dunkl ey: Head 21, the Ministry Headquarters itself. Obviously it is perhaps the smallest part of the Ministry other than Head 91, in terms of employees with 18. But 39 additional staff were added to the Office of the Chief Medical Officer through COVID -19. …
Head 21?
Hon. Michael H. Dunkl ey: Head 21, the Ministry Headquarters itself. Obviously it is perhaps the smallest part of the Ministry other than Head 91, in terms of employees with 18. But 39 additional staff were added to the Office of the Chief Medical Officer through COVID -19. And a question to the Honourable Minister is why don’t those staff show up, even in the employee numbers, on page B -152? If you look at page B - 152 you will see the employment numbers for the department for this fiscal year was supposed to be 18. It turned out to be 16 because there were two less in general administration and next year it goes back to 18. But 39 staff were added to the Office of the Chief Medical Officer. I would have thought that those numbers would have been added to the Budget Book just for proper accountability. Going back to page B -150, starting at the top, General Administration, [line item] 31000, in the current financial year, $2.28 [million] was allocated, $1.98 [million] was due to be spent, and that rises again to $2.7 [million] next year. I did not catch from the Honourable Minister’s brief what has taken place to ne-cessitate the decrease in use of funding through the year and then the increase for the next year. Interestingly enough, Mr. Chairman, the actual number for 2020/21 was $1.061 million when the original estimate
Bermuda House of Assembly was $2.295 million. So I would just like to get some clarification on the movement back and forth on the numbers. The next line item, 31015, grants and administration, Mr. Chairman, you will find the explanation for that on page C -118.
The ChairmanChairmanYes. Hon. Michael H. Dunkley: I want to take this opportunity while we look at those grants to commend the charities that receive grant funding, and also to commend those charities that do not receive grant funding who help in the healthcare area because now is the most critical time …
Yes. Hon. Michael H. Dunkley: I want to take this opportunity while we look at those grants to commend the charities that receive grant funding, and also to commend those charities that do not receive grant funding who help in the healthcare area because now is the most critical time in my lifetime for the need for healthcare and the need to get healthcare at an effective and reasonable price. So, charities are getting involved. The LCCA [Lady Cubitt Compassionate Ass ociation] does a great job helping. Certainly the Nursing Council is greatly needed, and there are other charities who raise their money outside of that which we should be thankful for because they do help people who fall through the cracks who do not qual ify for help in other ways. What I would like to do, Mr. Chairman, is just focus for a moment on the grant to the Bermuda Health Council, which is line item 6895. Mr. Chairman, you will see that in 2020/21 the grant was actually $1.413 million.
The ChairmanChairmanThis is on page C -18 of the Budget Book? Hon. Michael H. Dunkley: That is correct. I recall during the Budget Debate last year that the Honourable Minister said the Bermuda Health Council would be given an extra $800,000. Well, the grant for this current financial year is $1 …
This is on page C -18 of the Budget Book? Hon. Michael H. Dunkley: That is correct. I recall during the Budget Debate last year that the Honourable Minister said the Bermuda Health Council would be given an extra $800,000. Well, the grant for this current financial year is $1 million. We see it has risen to $1.332 million. But then it drops again to $1 million for the next financial year, which starts on April 1. Now, clearly, to me there is a challenge with funding. The Minister showed during her brief, and I am trying to refer to my notes as we go along, but the Minister did illustrate in her brief, and I appreciate that, where the money comes from, from the Bermuda Health Council, that they had four main principal goals: 1) regulation; 2) quality in standards; 3) finance and economics; and 4) audit and governance. And that the total budget (and I believe I wrote it down correctly) for the Bermuda Health Council was $3.1 million . So, that means with the $1 million that will be given the next year with a budget of $2.1 million ha s to be raised through licenc e fees, which the Minister said the Health Council is responsible for licence fees, and I think those are for imaging machines and things like that, and through their percent-age of the Mutual Reinsurance Fund. Mr. Chairman, I did not catch if the Minister said what their percentage given from the Mutual Re-insurance Fund was, but clearly if you just look at the last three years with the grant given and how the money has fluctuated from the grant to a higher level, we are not getting it right. And that is concerning for me and, I would assume, many other people as well, Mr. Chairman, because, as we have seen as Members of Parliament, we have seen more responsibility being given to the Bermuda Health Council. We have seen signific ant responsibility being given in many areas, and as we have debated those changes, we have talked about their ability to get the job done, the resources to get the job done, not only in funding, but in people to actually get it done. So, the question to the Honourable Minister is, Does the Honourable Minister believe that with the significant responsibilities that the Bermuda Health Council has are they up to date on those responsibili-ties and if not , where are they falling behind and how can we help them along? Obviously we know that with the National Health Plan we have fallen behind on that. And I say “we,” the Government has fallen behind on that. And I will come to that in a minute. But not only with the National Health Plan, which has been put on the back burner to some extent because of COVID -19, and I can understand that, but these other responsibilities, these four points that I just mentioned, remain, Mr. Chairman. And the ability in straying from the budget shows me that there are some challenges there. And another area, Mr. Chairman, that I would like to focus on is points three and four that I men-tioned in their primary responsibilities: 1) was regulation; 2) was quality in standards. And the Minister talked about quality in standards and a unique patient identifier. And I think this is important. I think we would all agree with that. But when we look at finite econom-ics audit and governance, the Minister very quickly went through that. But if you go on to the Bermuda Health Council site, you w ill find that their reports are late. And that is significant to me because if Government is funding an entity, and that entity is in public service, or even private service, [then] having the proper financial reporting in a timely fashion is critical, not only for those people who need to look at it to understand it, but for the confidence of the public that things are getting done and we are moving forward. So, I would ask the Honourable Minister when will the reporting be brought up to a more timely fas hion, especially since all of that money is coming from the Government and the people of Bermuda? Specifically as it relates to the reports, the last annual report was March 31, 2019. And what is concerning about that, Mr. Chairman, while I have looked at that and the [20]18 report, you will find out that the annual deficit in 2018 was $256,000. But in 2019, it increased to $349,000. That makes it critical that we have an understanding of what is going on as far as the numbers are concerned to arrest this tide that is going the wrong way. And along with that, there has 576 7 March 202 2 Official Hansard Report
Bermuda House of Assembly been increased funding. So I am concerned based on the primary functions, the significant responsibilities, that we are going in the wrong direction. They have a significant responsibility which is to regulate, to coordinate, and to enhance the delivery of healthcare in Bermuda. But, at the same time, there is a critical responsibility to make sure that their reporting is up to date and accurate, which allows us as legislators in Parliament, t o look at it and give it the stamp of approval that it needs. Now, I applaud a lot of the work that the Bermuda Health Council is doing. As a Member of Parliament, and certainly as a Shadow Minister, I stay as aware as I can of the work. And a lot of it has good initiatives. But in my book . . . and I have always been like this. I have been in business for 40 years; a Member of Parliament for almost 25 years now. If you do not watch your finances you have serious problems going forward. And in a difficult economy we have to deal with that. So, sticking with the Bermuda Health Council and Ministry Headquarters, Mr. Chairman, I will be speaking to Head 21, and expenditure programme 2101 and grants 31015.
The ChairmanChairmanWhich is Budget Book page B -150. Hon. Michael H. Dunkley: Correct.
The ChairmanChairmanPlease continue, Shadow Minister. Hon. Michael H. Dunkley: I listened very closely to the brief by the Minister earlier, and the comments in relation to the National Health Plan. Mr. Chairman, I have to say that my level of questioning and concern rises even more. Why do I say that? …
Please continue, Shadow Minister.
Hon. Michael H. Dunkley: I listened very closely to the brief by the Minister earlier, and the comments in relation to the National Health Plan. Mr. Chairman, I have to say that my level of questioning and concern rises even more. Why do I say that? Because looking back at information , I believe that the genesis of this National Health Plan under the PLP started around 2010, 2011, when the first report was done. Then there was a change of Government. And now the PLP is back in the saddle of governance again and they have picked up the health plan and they want to move forward, Mr. Chairman. In my view, simplifying it for the listening audience, there are two main reasons why the Government is keen to do this. One it makes sure that the cost of healthcare is affordable; and secondl y to make sure that those who are not covered by insurance have some good insurance. And I think every Member of the Honourable House, all Members of Parliament, will support that 100 per cent. There is no doubt about that. But how we get there has been t he challenge. And the PLP, in my humble opinion, Mr. Chairman, seem like they faced some headwinds along the way, because there has been a lack of progress since 2010 and 2011. And last year when we debated in the Chamber about this head and the National H ealth Plan I said that I believed that Government was hav-ing a re -think on the issue. Not on the main objectives, Mr. Chairman, but a re- think on the issue because they were having challenges with understanding how to cost significantly and who will cover the cost, and how the system will be funded. And here as we go, and COVID -19 has gotten in the way, unfortunately, and slowed the work, but that should not be the only excuse we look at. We have seen a lack of progress. In fact, it seems that we have gone backwards because [with] the latest plan that was tabled in a press conference and then rolled out by the Minister with a Statement in the House of Assembly, [there] seemed to be less meat on the bone than was previously talked about before the 2017 elect ion, and more questions to be asked. I will refer to the opportunity to question the Minister on the Bermuda Health Strategy 2022 –2027 (and I think the dates have changed). I asked the Honourable Minister [about] bullet point four —and in the Statement that the Minister gave, there were I believe, eight bullet points that were important as far as the Health Plan. And bullet point four was, providing universal access to healthcare coverage. So I asked the Honourable Minister, “ How will this be done, who will pay for it, and what will be involvement of the insurance companies?” So the Minister came back and said, and I am quoting from the 1Hansard of the [answers to my] questions, and I will summarise it at the end. [The Honourable Minister said:] “ At this point answers to questions such as the cost and/or the particulars as it relates to how that particular bullet point number four, core option number four, will be delivered are still matters that have to be considered. ” I find that quite interesting becaus e we have gone on a decade now and we are still considering what, to me, Mr. Chairman, are critically important parts of this plan, if we want to move forward and have anything that is measurable. And the Minister went on to [say] “the Government . . . [will] work collaboratively to deliver universal health care that will encompass providing access to health care for our residents [at an] affordable price as well as ensuring that we take steps to have a people- centred[ -focused health] care. ” But Mr. Chairman, before the last election, I believe (so that would have been . . . time flies when you are having fun . . . 2020, October 1, 2020) the PLP Government even put out a comparison of bene-fits currently for those on Government healthcare to this new health plan. Well, that comparative has disappeared. It is not being talked about anymore. The Minister is saying that we are inviting members of the public to collaborate and join us with the work as we go forward. So we have gone backwards. And then I asked another question to the Honourable Minister. Will the Honourable Minister
1 Official Hansard Report 18 February 2022, p. 323
Bermuda House of Assembly please inform the Honourable House, “ What will be the involvement of the current insurance companies in providing universal access to health care coverage?” And the Honourable Minister said, and I quote, “ Mr. Speaker, as we have indicated before, the access to universal health care, we will be looking to provide essential care to individuals at a cost that can be attained as well as when it is needed. However, we have always maintained t hat there will always be a need for supplemental insurance, so the insurance companies will still be able to offer a supplemental benefit. ” So, Mr. Chairman, what I quote [from] the Minister is that we are still trying to figure out how to do this thing w hile Rome burns. But everyone will be able to get a basic level of insurance coverage which was what was put out prior to the 2020 election. There were some changes to the typical coverage you could get through Government now through FutureCare or HIP, but it was not that much magnified. But then you would still have to go out and buy a supplemental benefit. Now, I do not see how that is going to help us allow more affordability for healthcare. Yes, it might cover more people for healthcare, but, Mr. Chair man, when you take a look at the headwinds we face in Bermuda with less people, less people paying into insurance, rising costs, more seniors and retired peo-ple, and the lack of Government action, we have the ability to have a perfect storm. And so when it comes to the National Health Plan, we look forward to significant progress this year. And it has to start with consultation. You recall previously, the Patient First [Bermuda] Group, Mr. Chairman. It showed a very significant pushback in regard to consult ation. And I would hope now — it appears we have gone backwards; we are pretty much at the start; we understand the objectives —that we can all get in this room and make sure we find something that works. Because the last thing we want to see is something that is passed by Government —they have a significant majority, they can pass it —that does not work, where the doctors did not get the input, where the people did not get the input, where the insurance companies did not get the input. Because, Mr. Chairman, i t is very clear to me right now that there are certain segments of the community who are not getting the input that they deserve at the present time. The current plan seems longwinded on words and very short on substance. And so, I want to know, how will G overnment pay for this universal health plan whenever they finally finish their consultation? Will there be new taxes or will there be a reduction in benefits and services? Or, will they make the private sector and individuals pay more for healthcare? We know KPMG has been hired to work on the plan. And there has been some accounting of the cost to date on that. I would ask the Honourable Minister what contracts they have entered into from today going forward and what future costs we would have to bear. Another question for the Honourable Minister,
Mr. ChairmanSome time ago when this National Health Plan was discussed before the 2020 election, there was discussion about models in the Caribbean. Is the Government still looking at models in the Caribbean? And if so, which ones? Another question for the Honourable Minister: There has been a lack of consultation …
Some time ago when this National Health Plan was discussed before the 2020 election, there was discussion about models in the Caribbean. Is the Government still looking at models in the Caribbean? And if so, which ones? Another question for the Honourable Minister: There has been a lack of consultation with local doctors to date, and I would like to know if the Govern-ment will consult with the doctors and if they are considering a cap on physician fees, diagnostic testing? And [what are the] caps on any fees which would be important to understand so people can take a look into that and understand it. And the last question in regard to generally the National Health Plan, Mr. Chairman, I think you are aware that over recent years we have seen the involvement of insurance companies in purchasing doctor’s facilities. And I would like to know the Minister’s and the Government’s position on the continuing roll-up acquisition of physician offices by insurer s. Because that is a new change to the way that healthcare is done in Bermuda, and it can have significant impact with the current lack of oversight we have. And so, I put those questions to the Honourable Minister and I am looking forward to some feedback on them.
Mr. Chairman . . .
The ChairmanYes. Hon. Michael H. Dunkley: I am just scanning page B - 150 and —
The ChairmanChairmanWhile you do so, I will pause you very quickly. Again, Honourable Members and the listening public, we are in the Committee of S upply. This is the debate over the budget for the Ministry of Health. We are dealing with four heads, Heads 22, 21, 24 and 91. Currently …
While you do so, I will pause you very quickly. Again, Honourable Members and the listening public, we are in the Committee of S upply. This is the debate over the budget for the Ministry of Health. We are dealing with four heads, Heads 22, 21, 24 and 91. Currently addressing the House is the Honourable Shadow Minister, Michael Dunkley. For those who are following in the Budget Book , we are under Head 21, the Ministry of Health Headquarters, at page B -150 of the Budget Book. Please continue, Shadow Minister.
Hon. Michael H. Dunkley: Thank you, Mr. Chairman. Yes, so on page B -150, the line item 31020, corporate services. There is quite an up and down in funding, allocation and usage. You can see in referring to the line in the past financial year it finished at $654,000, budgeted for $526,000 this year, actually estimated to finish at $700,000, and then the budget is $543, 000 for the next financial year. Can the Honourable Minister provide some clarity and explanation to that? 578 7 March 202 2 Official Hansard Report
Bermuda House of Assembly The next line item is the national health emergency, 31997. Now, Mr. Chairman, you can see how the numbers have gone up and down. Under the Ministry of Health there was a final national health emergency budget for 2020/21 of $3.693 million. And sadly, the Government got it wrong when they budgeted $1.5 million last year. And I think that actual amount was changed at $3 million because I think there was a mistake in the Budget Book. But anyway, a very small amount. And we will see that for 2021/22, actually, $13.936 million is estimated to have been used. And that is a gross understatement of the budget. We called it out last year, and we feel much more comfortable in the number in the budget of $7.768 million for this year. But I would like some more clarity on how that money will be used. The Honourable Minister when she presented her brief did say that the Molecular Diagnostic Laboratory [MDL] was now rolled into the Ministry and would work with the Government laboratory. I think that makes good common sense. One of the things that I would like to hear the Minister provide more clarity on ––when the Honourable Minister has time to reply, I would like t o leave some time and I would hope Members would as well ––is why was MDL not put into the Ministry to start. Because that always seemed like the better fit; there is no perfect fit. [The Ministry of Health] always seemed to be the better fit. In the Cabinet Office there are many different things that are on the go all the time, but certainly the Ministry of Health has the expertise, the Min-istry of Health can certainly hire any advisors they want at any time, with the permission of the Premier. And I would have thought that this would have been the most appropriate way to do it. So I would look for a little bit of understanding from the Honourable Minis-ter as to why it was done that way and now it comes back into the Ministry of Health. So, some questions for the Honourable Minister in regard to MDL: You can look back at previous budgets and you kind of draw out an understanding of what a budget would be for the laboratory part of the Ministry, but in regard to MDL, what is the specific budget for MDL for t he year 2022/23? And will their work specifically only relate to COVID -19? What was the revised budget for MDL for 2021/22? And what was the original budget for MDL for 2021/22? Mr. Chairman, as we talk about testing, I think it is only appropriate that I revolve my comments and my thoughts here in regard to the travel authorisation application [TAA]. I have already briefly referred to it, but you see it laid out on page B -151. On the revenue source, line item 8110, travel authorisation fee, which was orig inally budgeted for 2021/22 at $4.2 million. The revised estimate is $14 million.
The ChairmanChairmanYes. Hon. Michael H. Dunkley: And I am sure Government would love to get that money in the coffer. And the estimate for 2022/23 is $22 million. Well, Mr. Cha irman, I and colleagues have been on the record for some time stating that in the beginning the travel authorisation …
Yes. Hon. Michael H. Dunkley: And I am sure Government would love to get that money in the coffer. And the estimate for 2022/23 is $22 million. Well, Mr. Cha irman, I and colleagues have been on the record for some time stating that in the beginning the travel authorisation application was needed. But for some time now I think we can wean ourselves off that application. It has been a significant deterrent for a lot of people. And even with the $40 fee for visitors and families coming to Bermuda, it still is a deterrent. While the programme has worked rea-sonably well most of the time, there have been, and I am sure we are all aware of stories, accounts from peopl e where they have had challenges with it. Countries all over the world made sure they protected their borders. And so I am not here to debate the need for it originally. It was a way for us to open up. It was a way for us to get information. But other cou ntries, Mr. Chairman, have figured out a way to get the information in a less costly way and an easier way. The United States never closed their borders. Flights were limited for certain parts of the world. And then only very recently through the COVID -19 period, which now is about two years to the day, Mr. Chair-man, were over six million people [who died worldwide]. I just heard on the news this morning, over six million people have passed [away] with COVID -19 symptoms. They say ‘due to COVID -19’ but with COVID -19 symptoms I think is an appropriate way for me to put it. So the United States only recently, I think (and I can stand to be corrected) but at the end of last year they put in a form which you filled out online and you just had to attest to that you had a negative test to arrive. And then more recently they put in the need to be vaccinated when you travel to the United States. And there was no fee to it. And the penalty for filling out that form incorrectly was severe. And the US Government never really questioned you on it, it was up to the airport and the airlines to question. And that system worked well. But here in Bermuda we did it slightly different, perhaps because of the need to get revenue, but every country needs revenue. But you have seen that we have raised $14 million, so over three times more, three and a half times more than we budgeted for because of that fee. And now, the Government has said that this travel authorisation application will still be required until at least April 1, 2023. Now I say with all due respect that I believe that the only reason why we are having it in this form with a $40 fee is because Government needs the revenue. But while it was a deterrent before for people coming to the Island, it will still be a deterr ent with $40. We should not forget the need for people to trav-el. We live on an Island. We should not forget that our visitors can go anywhere else in the world and it is ease of movement. I was fortunate enough to take some time off after Christmas and go to the DominiBermuda House of Assembly can Republic. And it was easy to get into that country. There was a form to fill out. You had to show that you were vaccinated, and [when] travelling through the states you had to show that you had the test, but it was easy to do it. It was online and you did not pay a fee. Many other countries do the same thing. Why do we have to be different? Why do we have to make it more difficult? Mr. Chairman, I was approached by international business last year when things started to open up and, thank God for international business as we said earlier through this debate, but international business did well through the lockdown because they could still do their work remotely from home. However, when the world started to get going again and people were t ravelling, their bread and butter is face to face, not sitting on a Zoom call. Their bread and butter is entertaining people, having meetings with people. And part of that bread and butter is the ability to do it in Bermuda because we have so much to show off. We have so much to show off, our facilities, our landscape and all that type of stuff. So people enjoy coming here, even if it is just for two or three days for meetings, a little recreation, or whatever. It hurt me, Mr. Chairman, when one of the leading international business companies before Christmas said to me, We are having a significant anniversary for Bermuda. I won’t name the anniversary because I do not want people to get caught up in the name of the company. But [they told me], we are thinking of taking it offshore because of the challenges of getting in on Island here in Bermuda. It can easier be done elsewhere. That is taking bread out of our breadbasket. And so I say to the Government today, Please reconsider this. Yes, we need the revenue. But will that revenue offset the deterrent of people coming to the country? Americans want to spend money now, Mr. Chairman. They want to spend money. But it is ease of travel. When I came back from a trip, sitting behind people and I heard the wife say to her husband, when the stewardess said over the intercom that you have got to fill out these forms and you got to do this, and you got to do this, and you got to do this, and the wife turned to the husband and said, Tell me why we are going to Bermuda again when we can go other places easier? That hurt! That really hurt, Mr. Chairman, because the TAA was required. But n ow I think it is a money grab. And I think we can do better. So, I have spoken enough about that and I am sure that the Government has listened to that because we have eased restrictions. And today, March 7, we have seen that you just need a prearrival test and no more testing after that. So people are paying $40 now when they do not even have to use a government testing facility. So what are they paying for? And that draws me to the point of contracts that are not put out to tender. Now, Mr. Chairman, I say this with all due respect. And I know some people in the PLP Government will get a bit upset about it. But as we have gone through a pandemic and we have spent tens of millions of dollars on COVID -19, now is the time to think about a full inquiry in acc ounting in to how that money was spent to make sure that it is accounted for, to make sure that in the future we learn from any mistakes, and so that the people have an understanding as well as to what is going on. I do not care who is in Government, it c ould be the next party around. Everyone should make sure that the tens of millions were spent in an appropriate way, because it should not just be left to an Auditor General. As we saw last year during the budget, the Auditor General put out a preliminary report that had some questions. And so now we need to look at a full inquiry into how the money was spent [and] where the money was spent. We in the Opposition have asked questions about COVID -19 spending and we learned that resQwest got millions of dollars and that amount fluctuated to north of $3.5 million, and then the Government came back and said it was $2.7 million, but they did not say what the difference was. So almost a million dollars was cut off that contract, but they did not explain what the difference was. That was an unbid contract. Now, it is not to say that in times when you are under pressure you need to do that. But it has to be dealt with through the appropriate channels, and the Office of Project Management and Procurement did not sign off on that. And so we need to make sure that we have a full understanding of COVID -19, where the money went, how it was spent, and the entities that received the funding, because if the Government does not hear the call today, that call will continue. Not just from Opposition, but from other people involved in the corridors of making sure there is trans-parency and accountability. So, I ask that in all due respect. And if I was still the Premier of this country I would ask for it to be done because I think it serves Bermuda well. Mr. Chairman, I think you will see in other countries they will start to do these types of things and some of them already have. So, as I continue to deal with COVID -19, because now the bulk of it is going to fall under Head 21 as we learn to live with COVID -19. As we learn to live with COVID -19, I think we can eliminate the TAA, certainly the fee for it. We can simplify it. And I will ask the Honourable Minister when will the contract end? Because resQwest [is] not paid, in my understanding of it, for doing the work. They get payment for everything that is done in regard to the services going forward. I think we need to wean ourselves from that. That is a significant amount of money in a short period of time and no bid certainly has not helped us. We got up and running, but the no bid did not help the taxpayers of this country. 580 7 March 202 2 Official Hansard Report
Bermuda House of Assembly The other thing, Mr. Chairman, I ask the Honourable Minister to address in the time that she has to wrap up is: As we see other countries ending mask mandat es, where does Bermuda fit into this programme? It has gone quiet as far as Government’s meeting with the body who wanted to get rid of mask mandates in school. I have seen in many parts of the states in the UK mask mandates have ended and a number of school districts in the United States just today ended their mask mandate. So when will it be our turn to consider ending mask mandates? Because it still a big impediment to us. If we are going to learn to live with COVID -19, if we have the tools to live with COVID -19, if we have learned something about COVID -19, I think we are responsible enough to keep progressing forward. And at the same time, I hope, Mr. Chairman, that we do not have the extension of the Emergency Powers of the Government extended anymore. I will just briefly look at my notes. I am on page B -151.
The ChairmanChairmanWhile you do so, Honourable Shadow Minister, let me just remind the listening public that this is the Committee of Supply and we have further consideration of the Estimates and Revenue Expenditure for the years 2022/23. This is a five- hour debate on the Ministry of Health which is due …
While you do so, Honourable Shadow Minister, let me just remind the listening public that this is the Committee of Supply and we have further consideration of the Estimates and Revenue Expenditure for the years 2022/23. This is a five- hour debate on the Ministry of Health which is due to conclude at 4:37 pm this afternoon. Currently we are hearing from the Honourable Shadow Minister Michael Dunkley who is posing questions largely on Head 21, but I think perhaps you are moving on Head 22, as well, Shadow Mi nister.
Hon. Michael H. Dunkley: Very shortly.
The ChairmanChairmanOkay, well, I will give you back the floor should you wish. [Inaudible interjection]
The ChairmanChairmanSorry, I think heard someone else. Is that MP Hayward, Minister Hayward. Hon. Michael H. D unkley: Minister Hayward. Hon. Jason Hayward: Mr. Chairman, I rise on a point of order just to seek your clarity on a matter.
The ChairmanChairmanYes, go ahead. POINT OF CLARIFICATION Hon. Jason Hayward: Should the discussions and questions be limited to the revenue and expenditure estimates? Or are we also entertaining policy ques-tions as well? For example, mask mandates. I do not see how that ties in to the revenue and expenditures. Now, I …
Yes, go ahead.
POINT OF CLARIFICATION Hon. Jason Hayward: Should the discussions and questions be limited to the revenue and expenditure estimates? Or are we also entertaining policy ques-tions as well? For example, mask mandates. I do not see how that ties in to the revenue and expenditures. Now, I will take your advisement whether or not that is acceptable, but I know in the past we have been asked to try to confine the dialogue to the revenue and expenditures. And so I will take your guidance on that, Mr. Chairman.
The ChairmanChairmanWell, I am grateful for the int ervention from the Minister. The Shadow Minister was discussing line item 8110, travel authorisation fee, on page B - 151 of the Budget Book. I think it is a fair point in terms of the mask mandates. So obviously, Honourable Shadow Minister, if …
Well, I am grateful for the int ervention from the Minister. The Shadow Minister was discussing line item 8110, travel authorisation fee, on page B - 151 of the Budget Book. I think it is a fair point in terms of the mask mandates. So obviously, Honourable Shadow Minister, if you could try to keep your comments linked to the Budget Book as closely as possible. Please continue, I think you are moving on to Head 22 now.
Hon. Michael H. Dunkley: Not quite yet.
The ChairmanChairmanOkay. Sorry. [Crosstalk] Hon. Michael H. Dunkley: I thank the Honourable [Minister] for his interjection. Let’s put it this way then, Head 21 is the Office of the Chief Medical Officer. He gives advice to the Government and I would ask the Honourable Minister what is the advice of the …
Okay. Sorry.
[Crosstalk] Hon. Michael H. Dunkley: I thank the Honourable [Minister] for his interjection. Let’s put it this way then, Head 21 is the Office of the Chief Medical Officer. He gives advice to the Government and I would ask the Honourable Minister what is the advice of the Chief Medical Offic er [CMO] on mask mandates? It is important for people to understand. And while I am on that head, Chief Medical Officer, I appreciate the work that they have done. Last year there was conversation about Bermudianisation of that position. I asked the Honourable Minis-ter for an update. Not to say that the current CMO has not done a reasonable job; but their contract will come to an end. And I hope this Government, like the Opposition who support Bermudianisation, is trying to put itself in a good position when that time actually does take place. Mr. Chairman, I would just like to try to wrap up Head 21 by looking at the expenditure item on salaries, and some clarification [from] the Minister as to why the revised budget for the salary line has gone from $1. 751 million to $2.481 million in the current financial year. Advertising and promotion, you will see half - way down that page, was $171,000 for 2020/21, budgeted for $64[,000] for this year and went to $107[,000] and $161[,000 for 2022/23]. Can the Minis-ter give me an understanding of why it was budgeted so low and then the change? I would appreciate it if the Honourable Minister could outline professional services because pro-fessional services are something that you typically have an understanding of what y ou are going to contract in advance, but professional services were $8.145 million in 2020/21 numbers that just came out. We budgeted $2.051 million, and now the revised budget is $11.796 million. And I believe that relates to
Bermuda House of Assembly COVID -19 and that is why I call for a full understanding. So if the Minister could lay out the professional services aspects of that. And then the same applies to materials and supplies. The materials and supplies for 2020/21 was $4.87 million, only $619,000 was budgeted for this year. It will end at $2.268 [million] and then it is budgeted for $1.154 [million] next year. Would the Honourable Minister explain that ? I assume that it is for COVID -19 supplies and I would appreciate a breakdown of that because obviously this is what the budget is all about. Now, last year the Honourable Minister throughout the Ministry, certainly in Heads 21 and 24, gave an overview of vacant and funded positions. So I would ask if the Honourable Minister could give an understanding of how many vacant posit ions there are, and how many of those vacant positions are actually funded in the budget as we move forward into the next financial year. Mr. Chairman, I am on page B -153, if you will allow me, the performance measures . . . and I say it all the time and I won’t stop saying it until I see some improvement. There is some improvement in some of these areas, but quite a lot of these performance measures, Mr. Chairman, are pretty shallow. For example, the first one at the top of the page on B -153, business unit 31000, general administration, “Improve employee satisfaction in the Ministry of Health from 61%.” It was deferred in 2020/21. There was an increase of 61 per cent in the original and the revised, and it stays at 61 per cent targeted for next year. Well, how was it measured? If you are going to have a per-formance measure, it means that you have got to have some parameters behind it. So I would like to know more because 61 per cent does not appear too great to me. I would like an understanding of how it is measured and how often it is done. Improve public perception of the Ministry of Health (just dropping down one line) from 49 per cent. I would like to know how they arrived at that because I certainly have a good public perception of a lot of the work that is done there so I am quite surprised by that number in itself. So I would like to have more of an understanding of that. If you look at business unit 31020, corporate services, I mplement Bermuda Health Strategy initiatives to reduce standard premium rate and per c apita health expenditure, that just says it all right there, Mr. Chairman. It shows that they have gone backwards, and they are facing headwinds. Because it is revised, revised, and now in 2022/23 [it is] NA, not applicable. Well, that says a lot. And then the next line, Increase health insurance coverage from 92 [per cent] to 100 per cent, well, the dates keep changing. So that shows there has been a lot of talk and no action; promises but no delivery. So that will wrap up my comments for Head 21, Ministry Headquarters.
The ChairmanChairmanThank you, Honourable Shadow Minister. If I could just pause you there, I think I see Mr. Tyrrell ready to take the baton. Is that correct, Mr. Tyrrell, MP Tyrrell?
The ChairmanChairmanGrateful. Well, I will just close out by saying that we are in the midst of the Committee of Supply for Estimates and Revenues for the year 2022/23. And this is a focus of five hours on the Ministry of Heal th, concluding at 4:37. I will pass the chairmanship …
Grateful. Well, I will just close out by saying that we are in the midst of the Committee of Supply for Estimates and Revenues for the year 2022/23. And this is a focus of five hours on the Ministry of Heal th, concluding at 4:37. I will pass the chairmanship to the Honourable MP Neville Tyrrell. Thank you both to the Minister and Shadow Minister for your presentations thus far. Thank you. [Mr. Neville S. Tyrrell, Chairman]
The ChairmanChairmanThank you again, MP Pearman. You have introduced [him] already so I will just refer back to the Shadow Minister Dunkley. You have the floor. Hon. Michael H. Dunkley: Thank you, Mr. Chairman. Welcome to the Chair, first time in the debate.
The ChairmanChairmanThank you. Hon. Michael H. Dunkley: It is going to be a long two weeks.
The ChairmanChairmanIt is. Hon. Michael H. Dunkley: Head 22, Department of Health. I appreciate the brief by the Minister although I did say earlier that she has jumped around. To me th is is the engine room that is often forgotten. And the work that they do is very valuable. So …
It is.
Hon. Michael H. Dunkley: Head 22, Department of Health. I appreciate the brief by the Minister although I did say earlier that she has jumped around. To me th is is the engine room that is often forgotten. And the work that they do is very valuable. So I have a lot of respect for the work that is done within this broad department. From vector control — which was under the gun, I would guess, about two years ago, w hen it appeared that we were having problems with the trash collection, but they have jumped on top of it now and I think it is a greatly improved position there —to testing that is required to be done, oral health, environmental health and the central labo ratory as well as administration and health promotion. I will examine page B -155, Mr. Chairman. I am cognisant of time so I will try to keep moving through so I can give opportunity for others and the Minister to speak. The Minister, in giving some comment on Lefroy [Care Community], which is 32000, and Sylvia Richardson Care Facility, which is 32015, did say that demand has exceeded capacity. So a 582 7 March 202 2 Official Hansard Report
Bermuda House of Assembly question to the Honourable Minister is, How much has demand exceeded capacity? What opportunities do we have to mount up that capacity? Because obviously we are talking about our seniors so it is critically important. I think we have the same challenge at the hospital with the extended care units. So I look forward to some understanding in that because that was raised last year as well, and I am sure the situation has not gotten any better over time. Mr. Chairman, there are a number of different areas in the expenditure category which those two heads come under where we see the numbers bump all around. And I wi ll not get involved in some of the smaller changes in numbers, but [with] some of the larger changes I am just curious, because I have listened to the brief intently and I made notes, but I might have missed something along the way. Physiotherapy in [busi ness unit] 32080, you will see, Mr. Chairman, that the allocated number was $1.39 million, it is revised at $9.73 [million] and the allocated number goes $1.57 million. The reason for that drop in the amounts spent and the reason that it is up again next y ear . . . am I correct in assuming, Honourable Minister, that there wasn’t a full staff allocation for the current financial year? And what hap-pens to the workload at that time? Is it just pushed back over time? Same question, Mr. Chairman, to speech and language. I thought I wrote down that the Minister said that there were vacant posts at that time. But speech and language shows that there are 15 posts for the current financial year and 15 [posts] for the next financial year. But if you look at the Budget Book the amount spent is $1.6 million and dropped to $1.12 [million], rounding, for the current financial year and then goes back up to $1.6 [million] again. So I ask for some clarity from the Honourable Minister in that re-gard. Mr. Chairman, in lookin g at the next page on B-156, the Minister gave an overview, so I do not need to dwell too much on the numbers that the Minis-ter provided there other than in regard to health promotion. Obviously, health promotion is critical. We have got a big challenge wi th chronic diseases and it is better to try to prevent than to treat. And the Minister did give an outline of Public Health Week and “Celebrating Wellness.” There are challenges that we certainly are not putting enough attention to at the present time. Well, certainly, the Grow! Eat! $ave! initiative is important. In light of the fact that I believe that younger people are smoking more and at an earlier age now, and in light of the fact that there is going to be some changes to cannabis legislation, is Government going to devote some attention to a promotion to a healthy lifestyle in this regard? This hits home for many of us, Mr. Chairman, because one of the common causes of death in Bermuda is stroke. Unfortunately, I lost my father at a young age from smoking. That, sadly, was a life changing moment for me, but I have always been dead set against it. But when I see young people smoking, certainly whether it is cigarettes or cannabis it still has a very negative effect on you and it has a huge impact on the cost of our healthcare. So I would like to understand Government’s commitment to making sure that we do all we can to get our young people to follow a healthy lifestyle. Especially in light of the fact that the performance measures go through here and show, if you look at (and I am not going to go through them) pages B -159 right through to the end of performance measures here which go through to page B -166, that obesity is a problem especially amongst our young people. It is something that we need to pay attention to, Mr. Chairman. I fully support the Healthy Schools initiative. And the Minister gave an overview of that and the focus on eliminating as much as we can the use of fast foods in our schools. And I am pleased to see the Minister mention that there were refillable water supplies in the school and only one public school did not have that. And I don’t want that school identified necessarily, but I would hope there is something being done to make sure that there is a source at that school that will b e taken care of very quickly. Mr. Chairman, I asked for the number of vacant and funded posts because if you look at page B - 157 of the Budget Book, salaries, you will see that for 2021/22 —
The ChairmanChairmanMember, just refer to page and the number again, ple ase. Hon. Michael H. Dunkley: Page B -157.
The ChairmanChairmanOkay. Hon. Michael H. Dunkley: You will see right at the top line, salary.
The ChairmanChairmanYes. Hon. Michael H. Dunkley: It was budgeted [at] $19.548 million, revised $7.56 million and back to $20 million for this year. And so I want an understanding of that. Obviously, if you look at the Budget Book you will see that there were 14 less people. On the next …
Yes. Hon. Michael H. Dunkley: It was budgeted [at] $19.548 million, revised $7.56 million and back to $20 million for this year. And so I want an understanding of that. Obviously, if you look at the Budget Book you will see that there were 14 less people. On the next page, on B -158, you will see that 14 less people were employed through the various parts of Head 22. And you will see that next year that number goes up to 285. And so I think that explains the drop in expenditure, but with an increase of nine people coming on the books f or the next year, it does not accurately explain the increase in totality for me. So I would like an understanding of the vacant post.
Bermuda House of Assembly I am sure they all funded now. What happened to the money that was funded last year because it would have been not used for people, and how successful does the Minister believe we will be in funding those posts? Because looking through this Ministry of Health those are critical areas. But it is physiotherapy , whether it is sexual and reproductive health, whether it is in our care homes, those are critical areas. And certainly poor health, we have seen there was only one funded position for the current year and that is understandable in light of COVID -19. But will we be able to fill those [vacancies] with the expertise we need to get the job done to make sure that those critical functions are done. Before I move off this head I just want to take a quick look the performance indicators, performance measures.
The ChairmanChairmanIs that page B -159? Hon. Michael H. Dunkley: It starts at page B -159 and it goes on for a number of pages. But if just go to the third column from the bottom, percentage of 5- yearold students who are overweight or obese, that just tells you itself …
Is that page B -159?
Hon. Michael H. Dunkley: It starts at page B -159 and it goes on for a number of pages. But if just go to the third column from the bottom, percentage of 5- yearold students who are overweight or obese, that just tells you itself that at 16 per cent, that is significant — from five years old. If you are in a difficult position at five, we have got a lot of work to do. And it would certainly benefit not only the individual but all of us as a community as we go forward. One thing that has always bothered me, even when I was the Minister of National Security, Mr. Chairman . . . if you turn to page B -162, Mr. Chairman.
The ChairmanChairmanYes. Hon. Michael H. Dunkley: Performance indicator there, Performance measure. Number of Westgate correctional inmate- physician consultat ions. It tells you that but then the next one, [percentage] of all inmates received in c orrectional institutions who rec eive an initial medical evaluation . It should be 100 per cent. …
Yes. Hon. Michael H. Dunkley: Performance indicator there, Performance measure. Number of Westgate correctional inmate- physician consultat ions. It tells you that but then the next one, [percentage] of all inmates received in c orrectional institutions who rec eive an initial medical evaluation . It should be 100 per cent. There is no reason why it should not be 100 per cent, and I would l ike to see that targeted outcome changed to 100 per cent. And especially since there has been a downward trend of people incarcerated, it should be an easier number to get to. Mr. Chairman, the performance measure on page B -163 is interesting, when it rel ates to drinking water samples compliant with standards, domestic premises at 44 per cent, that is quite concerning. And that shows that there needs to be more of an emphasis [there] because as you know yourself it is not a difficult fix to make sure that your tank water is clean. But, you know, 44 per cent is not a good number. I am pleased to see the main supplies are at 95 per cent and commercial premises even needs to do a better job than that. I am just flipping through them quickly. Mr. Chairman, on page B -165, second from the bottom, [proportion] of public and private schools completing the Fitness Gram test during terms 1 and 3. Now, the Minister mentioned a number of different things that have taken place within the schools in this Ministry of Health. And I want to say that as we lead more sedentary lives, because we get stuck in front of computers, and even younger people have got the Game Boy, the computer in school and stuff like that. We need to make sure we gear up physical education in our schools because these performance measures clearly show that we have a challenge. And so while we have a Healthy Schools initiative, I ask the Honourable Minister, Does that Healthy Schools initiative mean that there will be at least physical education in every school week? Because it is important. It is one thing for us to promote it, but actually living it is the key way. So, Mr. Chairman, I will take my attention off of Head 22 and I will turn my attention to Head 24.
The ChairmanChairmanHospitals, yes. Hon. Michael H. Dunkley: Hospitals, yes. Thank you, Mr. Chairman. First of all, let me start off by commending the hundreds of people who work in healthcare, and certainly at the hospital which is what we debate today. They provide a quality of care that we sh ould …
Hospitals, yes. Hon. Michael H. Dunkley: Hospitals, yes. Thank you, Mr. Chairman. First of all, let me start off by commending the hundreds of people who work in healthcare, and certainly at the hospital which is what we debate today. They provide a quality of care that we sh ould all be proud of. They did it uninterrupted through the twoyear challenge of COVID -19. I can speak for myself and many Bermudians that I think the hospitals provide a level of comfort for us knowing that if something would happen we can go down there and get the quality of care. I think it is an envy of a lot of communities, especially one as small as Bermuda. But the challenge, Mr. Chairman, is that because we are small, because we are a sophisticated economy with international business and all the other areas that we are trying to grow, because we have a number of visitors come in from all over the world, because we are so isolated we have to have some services that are timely and you cannot get off the Island to get them, although for emergency care if you have to be flown out you can be flown out. And that makes it all the more important, Mr. Chairman, that the finances of the hospital are in a strong position. But unfortunately at this time we are still in a precarious position. And so while I never have a hesitation in going to the hospital and I feel comfortable going there (thank God I have not had to be there recently) it is a place that I have no problem in rushing somebody to or being rushed to if I have to go there. But if we do not get t he hospital finances in an appropriate position, then we will start to see some real challenges with the quality of care and the ability to get the care we need or expect in certain areas. 584 7 March 202 2 Official Hansard Report
Bermuda House of Assembly So, I thank the Honourable Minister for her overview of the hospi tal, Mr. Chairman. I guess the last thing that the Minister said in the brief, and I was surprised that the Minister did not speak about it when the Minister brought up the hospital, but if you turn to page C -29, Mr. Chairman, you will see that in the Budg et Book the Bermuda Hospitals Board guarantee is written up at $787.7 million. That is over a $500 mil-lion increase in one year. And the Minister gave an explanation that is a reclassification (my words; not hers) on the financial position of the hospital . That says it all! If for years the guarantee was $500 million, more or less, to have a reclassification in one year . . . you cannot go to sleep at night because you are seeing so many red lights. And healthcare is important to Bermuda, so I do not want anybody to be concerned about the quality of care if they are going to get in the hospital. But we need to be real about the finances of the hospital. Mr. Chairman, the Bermuda Hospitals Board statements have been late for some years now. And the Minister last year in the presentation said that the financial statements for the hospital for 2015 were tabled shortly before the debate last year. That was for the last annual report 2015. We have not seen 2016, 2017, 2018, 2019 and 2020. Now, I am not pointing a finger at a political party. But you yourself know, you have worked in insurance (I am not making this a personal thing), but you know if you do not see numbers you got a problem. You can’t just make it up. You cannot judge a premium. You cannot cost a s ervice. You cannot understand how you are doing [financially] unless you see those numbers. But here we are now. The hospital is behind in the statements and by the end of this year they will be another set behind. This is unacceptable. It is alarming. And it cannot be allowed to continue. Now, Mr. Chairman, when you look at what the Minister outlined today, and I am looking at my notes here, the hospital gets 97 per cent of its funding from Government —97 per cent! This year it was given an extra $11.5 mi llion worth of funding which has increased the budget. And it was given $4.5 million, [for a] MWI capital grant. It has savings of $4.3 million—thank you to the employees for the savings there. There was a Government concession of $6.3 million. The hospi tal cash reserves are being depleted faster than anyone could ever imagine. Last year when questioned, the Honourable Minister mentioned that cash reserves had dropped to $28 million, a de-crease of $17 million in a year. And if you go back, Mr. Chairman, and look in the Budget Book at the money that Government gives to the hospital every year you will see that one year they meet the budget and the next year it goes over the budget because they give extra money. Well, the year they meet the budget is because they have drained the cash reserves. So Government did not have to give money. That is what happened last year. [There was] $17 million [from cash reserves] for 2020/21. But, Mr. Chairman, what is alarming about this year is the cash reserve balance is $16 million. So it has dropped another $12 million and $4 million of that is restricted so it cannot be touched. So if we keep going like this, the cash reserve is going to be blown. And the Minister said that there is 13 days cash on hand, when last year t here were 41. And the average comfort zone for cash reserve is [between] 60 and 90 [days]. It is a bleak picture, Mr. Chairman. And then we learn that they had to access the overdraft. Now, if this does not tell us that triage is not working, I do not know what will tell us. We are in the emergency ward now with the funding of the hospital and we need to do better. And the only way we can understand this as Members of Parliament . . . I am hamstrung here today because I cannot look at any recent annual re ports. Now, Mr. Chairman, I am not getting anybody drawn into this debate. But anybody who is a Shadow Minister who looked at this today would be aghast that you cannot find recent reports. And I searched over the weekend, looked for them hoping they would just show up. It is unacceptable. It is not allowed to continue anywhere else in the world. So all the good work that the hospital is doing . . . we need to make sure that we fix this situation so we can have information so we can make decisions and we can stop this tide of cash reserves being depleted and the hospital getting in a poor position, because it is just deteriorating still. And that could impact the ability of what we got to do. And then, you see what happened with the guarantee. That restat ing of the guarantee by $500 million more says it all. It says it all! And Government had the audacity not even to mention it until the end of the debate. What do you think, we are going to fall asleep and not pick that up? Come on! And if you look at th e numbers in the hospital, clearly they are under pressure. And they are doing a good job of keeping themselves giving the quality of care under the pressure they are in. The length of stay has gone up from 18 to 19 [days]. And I got these numbers from financial reports that are put up, you know, tidbits of information they leave out, like the internal management account that are put out by the hospital. The length of stay has gone up from four and a half days two years ago to five and a half days. In 2021 it is five and a half days, so in two years it has increased by a day. Now, maybe some of that is due to COVID -19, but the length of stay has gone up. And patient days have jumped alarmingly since 2018/19 [from] 11,925 days to, two years later, 13,838 days . Occupancy in the acute care wing is 94 per cent and in long term it is 95 per cent. Houston we have a problem! We have to deal with this challenge. The first way to deal with this challenge is to make sure that we have accurate statements. Because when I hear the
Bermuda House of Assembly Minister talk about savings programmes, yes, I look forward to that. But they rang really hollow in my ears because, one, it was hard for me to believe them based on the lack of financial information, and two, it is like you are putting your litt le finger in a dam but you need to put your fist in it. And I understand the hospital operates 365 days a year, and it has to give the patient care, but we need to have people who are devoted to fixing this financial situation. And one of challenges that we have, Mr. Chairman, is when the hospital went into a block grant. When fee for service went away, in my humble opinion, a lot of the incentive was lost to actually get revenue because Government will just give it to us. (Those are my words.) You need to have an incentive. All hospitals, all businesses, anybody needs to have an incentive to do things. If you are just given some-thing, you just keep asking for more. And that is what is happening now. We just keep giving the hospital more. They keep dwindlin g the reserves. And in two years’ time we are not going to have any reserve, we are going to give more, and the cost of healthcare is going to go up, and we are going to be looking at each other like What do we do now? So let’s give some incentive to get more service going through the hospital. In talking to doctors recently elective surgeries are put off. And I get that with COVID -19, you have to do that. It is important that we make sure we deal with COVID -19. And we did a commendable job in many areas. C ertainly the hospital weathered the storm. In spite of COVID -19 in the hospital [in the recent times], they weathered the storm. But now we have —
The ChairmanChairmanMember, if I could interrupt you and just remind you to stick with the Budget Book page and hea dings, please. Hon. Michael H. Dunkley: Sure, Mr. Chairman, I am on page B -167 and talking about the allocation to the budget.
The ChairmanChairmanOkay. Hon. Michael H. Dunkley: Because if we do not allocate . . . and I will move on fairly quickly but I just have to make this point because there was a change a couple of years ago where there was a block grant given. And the incentive for …
Okay.
Hon. Michael H. Dunkley: Because if we do not allocate . . . and I will move on fairly quickly but I just have to make this point because there was a change a couple of years ago where there was a block grant given. And the incentive for fee for service went away. And right now we have hundreds, if not thousands, of elective surgeries that could be done but ar e not being done because doctors cannot get operating facilities. Whether it is knee operations, whether it is eye service, whatever it might be, that is money the hospital needs. We should be opening up our operating theatres and generating revenue throug h there. Talk to the doctors, they know how it can be done. That way we can save our hospital because we are going in the wrong direction and we are going in that direction at a much faster pace than people understand. And that guarantee in itself is damni ng. And I would have thought that there would have been more said about that than just at the last minute of a two- and-a-halfhour presentation. Simply unacceptable. If the shoe was on the other foot, we would hear about it for the next 10 years. Mr. Cha irman, the Honourable Minister did say that the vacancy rate I believe was 11 per cent in the hospital so I would like to hear from the Honourable Minister. Do they feel comfortable that this vacan-cy rate can be brought to a more sustainable level? And the percentage of Bermudians versus nonBermudians staff in the hospital and what we are doing to try to improve that. I appreciate the update from the Honourable Minister on the electronic medical records implemen-tation. What is interesting, again, is that last year the Minister talked about it that it was 10 years of work and it would cost $50 million. Well, lo and behold this year we find that it is 10 years of work and it will cost $55 million. But we can get some savings because we are not going to use other IT that we typically use, so it is going to cost us $30 million, but in 10 years it will be cost -neutral. Well, you know, I think that was always the case when it cost us $50 million. Why is there a $5 million increase this year? I would like the Honourable Minister to give us an explanation as why is there a $5 million increase this year. I am just looking at some questions that I had before I try to close up this part. I would like to know from the Honourable Minister since the financial statement s have not been provided for the hospital, what was the hospital profit or loss for the last financial year? I am sure they have internal accounts that show this. Also, how much did the KEMH capital grant figure of $330 [million], [by] how much was that exceeded this year? Is that grant being capped for the next financial year? And the last question in regard to the Minister on that is, What are the current overdraft facilities of the hospital? I know the Minister said that they were tapped into. I would li ke to know what the current overdraft facilities of the hospital are. Mr. Chairman, I think that does it on Head 24. On Head 91, I appreciate the Minister’s overview of that head. I am going to keep my comments on it very brief because I am cognisant of t ime and I would like anyone else [who wants to] to speak and have an opportunity and leave some time for the Minister, or else all could be in vain. But if you look at the performance measures it is very clear. It shows you the challenges we have in that policyholders have dropped but claims for policyholders have gone up in regard to HIP. The same for FutureCare. Policyholders have dropped but claims have gone up drastically. So that shows the problem that we have and the need to deal with that situation. So having said that, Mr. Chairman, let me finish where I started and thank all of those involved for 586 7 March 202 2 Official Hansard Report
Bermuda House of Assembly the work they did. Please accept my comments as constructive, because we have a problem. It does not make sense to shoot the messenger. If we do not deal with this problem . . . I do not want to be back in the same place next year or the year after, whenev er, and say, I told you so. We can fix this problem but we need to work together to fix it, and we cannot avoid it. And we cannot just restate guarantees worth $500 million and not talk about them and say how we are going to get out of this mess. So with that, I appreciate the opportunity and look forward to the Minister’s answering questions. And if I have some more time I will jump in at the end. Thank you, Mr. Chairman.
The ChairmanChairmanThank you, Honourable Member. Are there any other Members who wish to speak? Hearing none, I will turn it back to the Minister. Hon. Kim N. Wilson: Thank you, Mr. Chairman. And I thank the Honourable Member for his contributions in this very important debate. I appreciate his acknowledgement from …
Thank you, Honourable Member. Are there any other Members who wish to speak? Hearing none, I will turn it back to the Minister.
Hon. Kim N. Wilson: Thank you, Mr. Chairman. And I thank the Honourable Member for his contributions in this very important debate. I appreciate his acknowledgement from the outset of recognising that we unfortunately do have a very severe and dire situation in Bermuda as it relates to chronic diseases as well as the need for us to ensure that we educate about lifestyle choices and prevention which is one of the pinnacles of the Bermuda Health Strategy that we just announced a few weeks ago. And it relates specifically promoting healthy living and pre-ventative care. I also appreciate the Honourable Member’s submissions as it relates to some of the other chal-lenges that we are having with respect to organising healthier lifestyles as well as addressing the high in-creasing cost of healthcare in Bermuda. Again, [these] are factors that the Government is committed to addressing, and, as was relayed recently concerning the release of the recent Health Strategy, as well as our importance insofar as ensuring that we adhere to the Throne Speech and its platform pledges relating to universal health coverage. We have indicated some of the submissions made by the Honourable Member who just spoke. They deal specifically with the need for consultation, which we have repeatedly indicated that the next steps of the roadmap that we released a couple of weeks ago do relate specifically to the need for collaborative and consul tation with the medical community, the insurance companies, patient representatives and the like. So more information as was . . . I did a Ministerial Statement about two weeks ago as was re-leased and revealed in that Ministerial Statement, Mr. Chairman, more details will be forthcoming and I have committed and the Government has committed to ensuring that we provide regular updates as to the progress of this extremely important initiative to the House. Mr. Chairman, I will try to answer the questions I b elieve in the way that they were asked. So forgive me if I jump a little bit around. But first and foremost, I want to speak specifically about the issues concerning the BHB audits. Mr. Chairman, much was said about that, and I can report that there are cl ean, unqualified audits up to 2019 now with respect to the financial statements. With respect to the annual reports, the 2016 report has just been delivered to the Ministry and I anticipate that to be tabled this legislative session. The 2017 annual report , Mr. Chairman, is going through the final proofing and hopefully we anticipate having sign- off for that in April. Mr. Chairman, the 2018 and 2019 annual reports are close to being sent for design for completion and the 2020 and beyond are not through the audit process yet. So that does provide an indication of the progress made on the important aspect as it relates to filing the audits by BHB and again they are clean, unqualified audits up until 2019. Mr. Chairman, much was said concerning the issue with respect to the BHB guarantee that I spoke about at page C -28 in the Budget Book.
The ChairmanChairmanMm-hmm. Hon. Kim N. Wilson: And as I indicated, during the submissions this was a question that was raised by the press. If I can just provide a general overv iew, but I would anticipate that the more fulsome details as it relates to the reporting of that particular entry …
Mm-hmm. Hon. Kim N. Wilson: And as I indicated, during the submissions this was a question that was raised by the press. If I can just provide a general overv iew, but I would anticipate that the more fulsome details as it relates to the reporting of that particular entry at page C-28 will be revealed next week Friday when the Ministry of Finance provides their account. If you can [INAUDI BLE] in accordance with the financial statements previously they were reporting simply the principal, so as you know, you have mortgage, you have the principal and the interest and then you have the legal cost and other costs that are added to that. But initially, the financial statement reporting of such guarantees was simply the principal aspect. There was a change with respect to how the financial statements needed to be reported, which reflects the figure that was released in page C -28. But, again, I anticipate that the Mini stry of Finance will be able to provide further details concerning that. But I just want to provide a little bit of a point of clarification as it relates to the financial reporting of the financial statements and the change for this year as to why that number reflects a difference. Mr. Chairman, with respect to some of the questions that were asked, page B -150, Mr. Chairman, [business unit] 31000, under general administra-tion, there were questions as it relates to the number of employees and why that number represents 39 increases of staff members of the OCMO. That represents contract workers, Mr. Chairman. And as is generally the case, contract workers are not part of the
Bermuda House of Assembly establishment so therefore they are not listed as FTEs in the Budget Book. Mr. Cha irman, with respect to the question as to how the National Health Emergency accounts will be used. They will be used in the following mecha-nisms. One will be for the continued operation of the call centre, which you can appreciate has been pretty much a li feline throughout this COVID -19 pandemic. It is staffed by a very, very dedicated group of individu-als and they will continue to provide services to the community through the auspices of the call centre. In addition, the National Health Emergency fund wil l be used for minor testing supplies, the provision supplies. One of the questions was what type of supplies will be needed or what type of material supplies would be needed under page B -155 as it related to the performance measures. There was a question about what type of COVID -19 supplies. I can advise, Mr. Chairman, it would include testing supplies, PPE, the medium that is used for the test as well as hazardous bags and the like. So those will be the materi-als. And the question akin to that, what does professional services relate to. Again, still under Head 21, page B -155, those professional services would be the numerous contract workers who were hired by the Ministry in furtherance of further resources for COVID - 19 such as case management, contact tracers, testers, swabbers, and the like. As well as some of the port health services also come under that provision of contractors, as well as the National Health Emergency funds being used for some of the port health services. You would recall in the brief I spoke about the importance of port health to ensure that they minimise the importation of COVID -19 into our Island and they played a very critical role along with all the other team [members] concerning the COVID -19 response at the airport for persons who were entering our Island. Mr. Chairman, there was another question as to why was MDL not set up in Health from the commencement. You may recall previously the Honourable Premier did indicate the rationale behind that. At the time I was the Minister of He alth and was dealing with the COVID -19 pandemic and the thought at the time was that the MDL would fit under the Cabinet Office so as to provide further capacity within Health to deal with the other emergent issues as it related to COVID -19. The Government now realising and realigning the services, Mr. Chairman, that there is . . . since we have a lull in the pandemic, and [we are] currently living with COVID -19, so the last two years have been focused on mitigating the effects of the virus, and additionall y MDL has always had a reporting responsibility to the Ministry, so it just formalising that reporting line. Mr. Chairman, there was another question concerning some of the staffing numbers, not only on the performance indicators, but in particular [business unit] 31000 which is at page B -150, Mr. Chairman. In the 2021/22 original budget it had $2.28 million. Then there was a revised budget of $1.977 million. And the [INAUDIBLE ] behind that is that there was less funding that was needed for the normal operations as we focused on COVID -19, therefore there was a lower revised budget. You can appreciate, Mr. Chairman, and this is also an answer to a number of questions that were asked concerning staffing levels, many of the staff members within the Ministry of Health and the Department of Health in particular, such as occupational therapists, physical therapists, nur sing, et cetera, moved from their position to the instant command dealing with COVID -19 activities. The recruitment for some of the vacant positions obviously was delayed because we were in the midst of dealing with COVID - 19. We are now reconvening those r ecruitment processes and so forth so that we can get full establishment of some of those positions that have remained vacant because of our inability to recruit. So that answer is two -fold. One, we were unable to recruit during the COVID -19 and, two, those individuals . . . because why is there a reduction in the funding? Many of those individuals were actually dealing with COVID - 19 as opposed to their actual other full -time jobs, if I could say it.
[Inaudible interjections]
Hon. Kim N. Wilson: Pardon me?
The ChairmanChairmanDay-to-day job, yes. Hon. Kim N. Wilson: Yes, yes. Thank you. However, there was an increase that was revised in 2022/23 due to the salary increases that will be used on the termination of austerity measures which you will recall [occur red] throughout the Government in 2021. Also, Mr. Chairman, …
Day-to-day job, yes.
Hon. Kim N. Wilson: Yes, yes. Thank you. However, there was an increase that was revised in 2022/23 due to the salary increases that will be used on the termination of austerity measures which you will recall [occur red] throughout the Government in 2021. Also, Mr. Chairman, with respect to the performance measures at page B -153, there was a question concerning that. The performance measures concerning the 61 per cent employee satisfaction, public perception of the Ministry of Health . . . I’m sorry, line item 31000, general administration, improving em-ployee satisfaction at 61 per cent. The question was, How was that measured? It is measured, Mr. Chairman, by a survey. The previous survey that was completed prior to COVID -19 has 61 per cent which matches the last survey. In between that we had to defer the survey in between because of COVID -19. So the 61 per cent does measure the previous survey pre-COVID -19.
The ChairmanChairmanUnderstood. Hon. Kim N. Wilson: Currently , Mr. Chairman, there was a question concerning the resources and the funding. There are currently 48 vacant and funded 588 7 March 202 2 Official Hansard Report Bermuda House of Assembly posts under recruitment with respect to the Department of Health. The Department …
Understood. Hon. Kim N. Wilson: Currently , Mr. Chairman, there was a question concerning the resources and the funding. There are currently 48 vacant and funded 588 7 March 202 2 Official Hansard Report
Bermuda House of Assembly posts under recruitment with respect to the Department of Health. The Department of Health has 19 unfunded frozen posts while the vacanc y rate seems high on average, the Department of Health, Mr. Chairman, has between and 15 [per cent] and 20 per cent of its posts vacant. The new DEOD, the Department of Employers and Organi sational Development (which was formerly the DHR) is giving full support to the Department of Health to bring this ratio down. Mr. Chairman, there was a very important question, and I thank the Honourable Member for raising it, as it relates to the regrettable statistics concerning five -year-olds and the level of obesity. It was one of the performance measures that was on page . . . well, one the performance measures. I don’t have the page right in front of me right now, Mr. Chairman. But unfortunately, this is a dire statistic. And the Honourable Member is right insofar as us needing to get a handle that sooner rather than later. And we can advise, Mr. Chairman, that in regard to the overweight obese population in that group, school nurses are back into the schools doing screening and that screening has resumed again. Unfortunately, for the last period of time the school nurses were over at the Ministry helping with COVID -19 management, but they are back into the schools and commencing the screening of those individuals to start to tackle [that statistic] with the emphasis on tackling the obesity, Mr. Chairman. Mr. Chairman, there was a question concerning the BHB and the overdraft facility of $30 million. This has been used once in the sum of $5 million as was noted in the brief and that has been repaid. Mr. Chair man, the cost for the EMR given last year was service implementation in a 10- year cost. This year the BHB also included the consultancy of the sale and purchase and therefore Cerner and the S&P contract are listed as per public information as it was the su bject of the PATI request regarding the contracts for the EMR. So that is a matter for public consumption. Mr. Chairman . . . just a minute. I’m reading my notes. Forgive me.
The ChairmanChairmanTake your time. Take your time. I will just remind the listening public that we are coming toward the end of this five- hour debate on the Ministry of Health, Heads 21, 22, 24 and 91. We actually have about 22 minutes left. Thank you, Minister. Hon. Kim N. Wilson: …
Take your time. Take your time. I will just remind the listening public that we are coming toward the end of this five- hour debate on the Ministry of Health, Heads 21, 22, 24 and 91. We actually have about 22 minutes left. Thank you, Minister. Hon. Kim N. Wilson: Thank you, Mr. Chairman. I think the final questions that were asked relate to . . . I just want a point of clarification. The Honourable Member indicated with respect to BHB that they have a $330 [million] capital grant, that is actually a block grant. And I just wanted to make sure that this part is clari fied. Health promotion, Mr. Chairman, which is again one of the pinnacles of the Health Strategy that I spoke about, will focus on healthy eating as well as active living initiatives. That is referred to as the HEAL, Healthy Eating and Active Living initiative. And the Commit to Change initiative which we have spo-ken about previously encourages daily health habits of physical activity, increasing vegetable consumption, as well as water consumption, as well as balancing the importance of mental health well -being. So those are obviously preventative measures that are to be continued and it is consistently in alignment with the Bermuda Health Strategy. One of the eight points of the Health Strategy as it relates to prevention and health promotion. Mr. Chairman, I believe that answers it. I know that we have some more time, so there may be more questions, but let me just look at my last page, which I believe answers the questions that were posed to me. Thank you very much for your time, Mr. Chairman.
The ChairmanChairmanThank you, Minister. Are there any other speakers? [Inaudible interjection]
The ChairmanChairmanIs that [you], Shadow Minister? Hon. Michael H. Dunkley: Yes, Mr. Chairman. Just a couple of questions.
The ChairmanChairmanGo ahead. Hon. Michael H. Dunkley: To the Honourable Minister, the question in regard to the overdraft facilities and the debt and any other loans that the hospital might currently have on its books. And also, is Government capping the grant in 2022/23 for the hospital? The Ch airman: Minister. …
Go ahead.
Hon. Michael H. Dunkley: To the Honourable Minister, the question in regard to the overdraft facilities and the debt and any other loans that the hospital might currently have on its books. And also, is Government capping the grant in 2022/23 for the hospital?
The Ch airman: Minister. Shadow Minister, I should have asked you. Were there any other questions before I called— Hon. Michael H. Dunkley: I have one more in relation to the hospital. I see the Minister has come on. The other one in relation to the hospital is , What was for the latest financial year statements that the Minister has for the hospital? What was the profit or loss for that financial year?
The ChairmanChairmanThank you. Minister. Hon. Kim N. Wilson: Thank you, Mr. Chairman. With respect to the profit or loss of that one particular fiscal year, it was $1.3 million. Hon. Michael H. Dunkley: Which year was that, Minister? Hon. Kim N. Wilson: The last fiscal year. Bermuda House of Assembly Hon. …
Thank you. Minister. Hon. Kim N. Wilson: Thank you, Mr. Chairman. With respect to the profit or loss of that one particular fiscal year, it was $1.3 million. Hon. Michael H. Dunkley: Which year was that, Minister?
Hon. Kim N. Wilson: The last fiscal year.
Bermuda House of Assembly Hon. Michael H. Dunkley: So, 2019/20 or . . . Can you repeat that?
The ChairmanChairmanMinister, you are muted. Hon. Michael H. Dunkley: She is buffering too. Hon. Kim N. Wilson: [It is] 2021. Hon. Michael H. Dunkley: And what was that amount again? Hon. Kim N. Wilson: [It is] $1 .3 million. Hon. Michael H. Dunkley: Okay. Hon. Kim N. Wilson: And then with …
Minister, you are muted.
Hon. Michael H. Dunkley: She is buffering too.
Hon. Kim N. Wilson: [It is] 2021. Hon. Michael H. Dunkley: And what was that amount again?
Hon. Kim N. Wilson: [It is] $1 .3 million.
Hon. Michael H. Dunkley: Okay. Hon. Kim N. Wilson: And then with respect to the overdraft facility, I do not have that information in front of me; however, insofar as the questions that relate to the block grant, yes, it will be $330 [million ] again.
Hon. Michael H. Dunkley: Okay. Does the hospital have any other debt that needs to be declared? Hon. Kim N. Wilson: Mr. Chairman—
The ChairmanChairmanMinister, I was going to remind the Shadow Minister to come through the Chair, but go ahead Minister . You can answer the question. Hon. Kim N. Wilson: Yes. Mr. Chairman, to answer the question with respect to any other debts that the hospital has, that will be released in …
Minister, I was going to remind the Shadow Minister to come through the Chair, but go ahead Minister . You can answer the question. Hon. Kim N. Wilson: Yes. Mr. Chairman, to answer the question with respect to any other debts that the hospital has, that will be released in the financial information that I, again, anticipate tabling in due course. Thank y ou.
The ChairmanChairmanThank you, Minister. Are there any other speakers? We have six minutes left. If not, I will ask the Minister to move her heads. Does any other person wish to speak? Hon. Michael H. Dunkley: I am still looking, but do not wait on me.
The ChairmanChairmanMinister, it looks as if we can move ahead with moving your heads, please. Hon. Michael H. Dunkley: One last question for the Honourable Minister.
The ChairmanChairmanGo ahead, MP Dunkley. Hon. Micha el H. Dunkley: Thank you, Mr. Chairman. In regard to the sugar tax, has Government measured any benefit from the sugar tax and how much has gone toward health education or health programmes?
The ChairmanChairmanMinister. Hon. Kim N. Wilson: Yes, Mr. Chairman, that is not a line item in the budget. That was actually discussed previously. It is not a line item in the budget; however, I will repeat the position that was stated when it was a line item as it relates to …
Minister.
Hon. Kim N. Wilson: Yes, Mr. Chairman, that is not a line item in the budget. That was actually discussed previously. It is not a line item in the budget; however, I will repeat the position that was stated when it was a line item as it relates to the fact that the funds generated from that do go into the Consolidated Fund and the last Omnibus survey that was conducted with regard to that saw a measurable decrease in the consumption of sugary drinks by adults. Mr. Chairman, on that note I would move the following Heads —
The ChairmanChairmanGo ahead, Minister. Hon. Kim N. Wilson: Never mind, Mr. Chairman, I should wait for your direction. I apologise.
The ChairmanChairmanWell, let me just ask one last time. Does any other Member wish to speak? It does not appear. Minister, please, go ahead. Hon. Kim N. Wilson: Thank you, Mr. Chairman. Mr. Chairman, I move that Heads 21, 22, 24 and 91 be approved as printed.
The ChairmanChairmanMembers, the Minister has moved Heads 21, 22, 24 and 91. Is there any objection to that? There appears to be no objection. It will be reported to the House, Minister. Thank you all. [Motion carried: The Ministry of Health, Heads, 21, 22, 24 and 91, were approved and stand …
Members, the Minister has moved Heads 21, 22, 24 and 91. Is there any objection to that? There appears to be no objection. It will be reported to the House, Minister. Thank you all.
[Motion carried: The Ministry of Health, Heads, 21, 22, 24 and 91, were approved and stand part of the Estimates of Revenue and Expenditure for the year 2022 /23.]
The ChairmanChairmanMembers, we are now going to move to the next Ministry, and we will move again to Committee of the whole for further consideration of the Estimates of the 2022/23 and the next Head is Economic Development. I call on the Minister. MINISTRY OF ECONOMY AND LABOUR HEAD 94 —ECONOMIC …
Members, we are now going to move to the next Ministry, and we will move again to Committee of the whole for further consideration of the Estimates of the 2022/23 and the next Head is Economic Development. I call on the Minister.
MINISTRY OF ECONOMY AND LABOUR
HEAD 94 —ECONOMIC DEVELOPMENT
Hon. Jason Hayward: I move that Head 94, Economic Development, be now taken under consideration.
The Cha irman: Minister, before you go ahead, may I just remind Members that this is a three- hour debate? Minister, please proceed.
590 7 March 202 2 Official Hansard Report
Bermuda House of Assembly Hon. Jason Hayward: Mr. Chairman, I am pleased to present the budget for Head 94, the Economic Development Department, which is found on pages B -194 to B-197, and the associated grants which are found on pages C -17 and C -19 of the Budget Book. Mr. Chairman, the subjective analysis for the Economic Development Department [EDD] is found on page B -195. It shows that the total expenditure for the EDD is estimated to be $7,695,000 for 2022/23, which represents a $5,565,000 increase over last year’s budget. It is largely accounted for by the fact that the department will soon also be responsible for the grants of both the Bermuda Economic Development Corporation [BEDC] and the Business Development Agency [BDA]. This reorganisation aims to enhance efficiencies within the Public Service and better represents organisational alignment within it. The transfer of the BEDC and the BDA in to the department will take effect on April 1, 2023. Mr. Chairman, the reorganisation of the Economic Development Department as a key entity in the implementation of Bermuda’s Economic Recovery Plan has allowed for increased efficiencies, in keeping with t his Government’s persistent focus on fiscal prudence. Importantly, in terms of revenues, which are shown on page B -196, the department is expected to generate up to $8,000,000 in revenues related to land acquisition fees and to the Incentives for job maker s programme. This amount constitutes a 45 per cent increase over last year’s budgeted estimate of $5,500,000. Mr. Chairman, the Economic Development Department is expected to be active on several fronts over the next fiscal year. Turning back to page B -194, I note that its mission is “to advance the sustainable growth, development, and diversification of Bermuda’s economy.” In order to achieve that, Head 94 is expected to • facilitate, create, and implement policies to support the Economic Recovery Plan; • in collaboration with industry stakeholders, position Bermuda as an ideal test market for innovative product and industry development; • analyse innovative developments and trends through research and stakeholder engagement; • identify the jurisdiction’s market fi t, clearly communicate its message, and drive action that leads to economic activity; and • identify, develop and implement policy and legislative initiatives that generate industry confidence. Mr. Chairman, in the coming fiscal year the Economic Development Department will continue to dedicate its energy, resources and expertise to stimulating growth and diversifying the Island’s economy. In more practical terms, the department is working on achieving the Island’s economic develop-ment and diversification go als by prioritising the competitiveness of the Island globally and by ensuring its attractiveness internationally as the place to move for individuals and organisations. In relation to the pandemic, and like many countries around the world, Bermuda is look ing for economic recovery and enhanced resilience. The EDD appreciates that with economic development and diversification come the opportunity to grow on multiple fronts, spurring job creation and revenue generation. Through the work of its various divisio ns, it therefore continues to lead the effort by engaging with public and private leadership as well as with the business and education communities.
The Concierge and Engagement Services Division:
Hon. Jason Hayward: Mr. Chairman, as Members of this Honourable House may know, the Economic Development Department works in close partnership with the Bermuda Business Development Agency, and supports both its management and operations. The Director of the Economic Development Department is a member of the BDA Board of Directors and, as such, has heretofore served as the Government’s liaison to the BDA. The department has also regularly worked with the BDA to provide concierge services for new companies seeking to conduct business in Bermuda. The BDA helps to determine whether inquiries and proposals for new international businesses are viable business opportunities for Bermuda. It also connects new businesses with private service provid-ers on the Island. On the other hand, the department’s role is to support the BDA’s efforts in identifying new business opportunities and, importantly, it serves as a central point of contact to assist and direct new com-panies with government -related processes. The EDD provides assistance with a wide range of matters which include facilitating meetings with government officials, advising on applicable poli-cies and initiatives aimed at attracting and sustaining international business, providing guidance on immigration strategy, ensuring the expedited processing of regulatory applications, and arranging for the expedit-ed arrivals processing for certain business visitors. The department’s Concierge and Engagement Services Division sustains this effort, which aims to boost jurisdictional economic growth, by expediting government proces ses. This in turn shortens the amount of time it takes for new businesses to start operating in Bermuda, thereby generating revenue. These important and valuable services are extremely well-received by visitors and clients of existing Bermuda businesses as well as by new entrants to our business community. The EDD’s Concierge Division also collaborates with other government departments such as the Department of Immigration, the Department of Social
Bermuda House of Assembly Insurance, the Office of the Tax Commissioner and the Regi strar of Companies, to ensure that new businesses who are relocating on the Island from over-seas are properly registered with the government and paying the appropriate taxes and fees. In doing so, it pays particular attention to job creation trends as reported by the new businesses which it assists. For 2021/22, the EDD’s Concierge Division therefore reports that companies which it assisted as they relocated to Bermuda created 66 jobs on the Island, 6 of which were filled by Bermudians.
The Research & Legi slative Support Division: Hon. Jason Hayward: Mr. Chairman, the Research & Legislative Support Division of the Economic Devel-opment Department is focused on activities related to international business. These include legislative reform and working in part nership with, and in support of, the BDA. To remain competitive and maintain the Island’s reputation as a leader in the offshore business community, Bermuda must continue to monitor its legal framework and, when necessary, take steps to amend current legi slation or adopt new legislation. Working with internal and external stakeholders, the department therefore assists in advancing new policies and legislative initiatives to help improve Bermu-da’s standing as a jurisdiction of choice for international business. Initiatives progressed by the division are targeted at meeting market demands through comprehensive and carefully tailored policies related to corporate products and service offerings. These policies are integrated into what is already a robust yet f lexible regime, designed to meet the needs of even the most sophisticated businesses and transactions. To ac-complish this, the Economic Development Department works with various entities including government ministries and departments; the Bermuda Monetary Authority; the BDA and its industry groups; and other members of the private sector. Mr. Chairman, in 2021/22, the EDD’s Research & Legislative Support Division worked with these stakeholders to successfully develop and present to the legislature several public and private Bills which made significant changes to our legal framework. The department’s assistance on legislative initiatives resulted in the enactment of two public Acts and two private Acts. Also, several important amendment s to Bermuda laws were adopted. More specifically, the Economic Development Department was responsible for leading the Government’s efforts to make various amendments to the Segregated Accounts Companies Act 2000. The two substantive amendments resulting from passage of the Segregated Accounts Companies Amendment Act 2021 were: i) the introduction of new requirements concerning the appointment of segre-gated account representatives; and ii) the expanded application of the principal Act to enable use of segregated accounts company structure, commonly referred to as a SAC, by limited liability companies formed under the Limited Liability Companies Act 2016. These amendments were necessary to update and modernise the SAC Act in order to ensure consistency with i nternational standards and to fully integrate limited liability companies, more commonly referred to as LLCs, into Bermuda’s corporate product offerings. Other amendments to the Act included incorporating provisions that ensured consistency with oth-er Act s and clarifying the application of several other laws as they related to SACs. In addition, some exist-ing provisions were streamlined and recast to allow for a more modern approach to various sections of the SAC Act. Mr. Chairman, in 2021/22, the EDD’s R esearch & Legislative Support Division also assisted with another initiative in collaboration with the Ministry of Finance and the Bermuda Monetary Authority to facilitate passage of the Incorporated Segregated Companies Amendment Act 2021. Amendments to the Incorporated Segregated Accounts Companies Act 2019, commonly referred to as the ISAC Act, were necessary to enable the registration of an incorporated segregated account as a company at the time of initial registration. The changes to the ISAC Act wer e intended to resolve industry concerns about the legal status of Incorporated Segregated Accounts by clarifying the status of incorporated segregated accounts as companies at the time of initial registration; and enabling an incorporated segregated account to continue operations as an independent company, once the registration under the ISAC Act is cancelled. The amending legislation also included a change to effect a more streamlined and efficient process for registration of digital asset businesses as ISACs. In particular, digital asset businesses are now able to register as ISACs without the need for approv-al by the Minister of Finance. This amendment will eliminate administrative burdens for both the Registrar of Companies and the Ministry of Finance w hile also shortening the time it takes to complete the registration. Mr. Chairman, the passage of both the Segregated Accounts Companies Amendment Act 2021 and the Incorporated Segregated Accounts Companies Amendment Act 2021 will enhance Bermuda’s SAC an d ISAC products and make the Island more competitive with jurisdictions that boast similar offerings. The Economic Development Department coordinates the internal consultation process and leads the presentation of the Government’s position to the Joint Se lect Committee for Private Bills. 592 7 March 202 2 Official Hansard Report
Bermuda House of Assembly Last but not least, over the past period, the EDD assisted with the passage of two private acts: the Walsingham Trust Amendment Act 2021, and the Willowbank Foundation (Amendment) Act 2021. Mr. Chairman, in the upcoming fiscal year, the Economic Development Department will assist in the completion of various legislative initiatives. At a minimum, this will include updates to laws governing intellectual property, the introduction of additional economic incentives for desig nated investors and the introduction of a comprehensive cooperative legislation to strengthen the development of cooperatives in Bermuda, aiming to facilitate a more equitable distribution of benefit and to combat social exclusion. Work on modernising laws governing intellectual property began in 2021/22 and will continue in 2022/23. The Department therefore aims to implement new legislation and to update and modernise current legislation in this next fiscal year. The target is to enact or to amend five pi eces of legislation.
The FinTech Division:
Hon. Jason Hayward: Mr. Chairman, Bermuda is nurturing FinTech space by leveraging its expertise in regulatory management and by enhancing its progressive legislative framework. This has created a deliberately diverse ecosystem of which the multitude of elements interact and complement each other. Let me begin by stating that the EDD’s FinTech Division pays particular attention to job crea-tion trends as reported by oncoming FinTech companies. As such, for 2021/22, it reports that FinTech companies created 40 jobs on the Island, 17 (or 42 per cent) of which were filled by Bermudians. Regarding where the FinTech sector is on the Island, allow me to report that the introduction of the Class T DABA licence by the Dig ital Asset Amendment Act 2020 resulted in three companies receiving the proper licensing to test innovative business solutions. In January of 2022, Ensuro Re Limited received Class T licen ces to develop decentralised underwriting solutions and Apex Fund S ervices Ltd. In January of 2022, Apex Fund Services Ltd. received a Class T licence to test innovative fund management services. In April 2021, CrossTower Bermuda Ltd. became the first digital asset business to graduate from a Class M to a Class F licence . In April of 2021, Blockchain Triangle Systems Ltd. received a Class M l icence from the BMA to issue and sell digital assets and securities to investors. In July of 2021, [the] 24 Exchange Bermuda Limited, an institutional grade trading platform, re-ceive d the first Class T Digital Asset Business licence from the Bermuda Monetary Authority. In January 2022, BlockFi received a Class F DABA licence from the BMA, centralising their existing products and services for non- US retail and institutional clients in Bermuda. In January 2022, AkinovA (Bermuda) Ltd. was granted the first insurance marketplace provider licence by the BMA. In the coming fiscal year, the EDD’s FinTech Office shall continue to foster collaboration amongst stakeholders to facilitate the adoption of digital asset business activities in Bermuda. This will include supporting initiatives that incentivise the adoption of 1:1 [ratio] USD/BMD backed stablecoins that are issued by licence d DABA entities. Expanding upon the Currency Standard Initiative will also be prioritised to ensure that efforts to facilitate retail acceptance of sta-blecoins are continued, as we look to bypass the age of central bank digital currencies and to demonstrate the potential of programmable money. Mr. C hairman, the Economic Development Department’s business development efforts will also be geared towards expanding the number of Bermudian-owned businesses licenced to conduct digital asset business activities. Supporting the InnoF und Innovation Incubator a nd further enhancing the Tech and FinTech Education and Training Plan will also be prioritised as we develop Bermudian tech talent and expand the number of Bermudians building businesses and entering the workplace in the FinTech space. In 2022/23, Bermuda will witness an increase in the local engagement and outreach efforts undertaken by the Office of FinTech to raise awareness of the potential opportunities which Bermuda’s framework can provide. It will also witness an increase in the number of educational programmes designed to raise the general public’s awareness of the opportunities that new FinTech innovations can provide. Concurrently, the EDD will continue to raise the awareness of Bermuda’s international business community when it comes to t he multitude of innovations being made in the Island’s FinTech ecosystem. The aim will remain to encourage integration into our more traditional financial infrastructure. Raising awareness will take place through the implementation of the Tech and FinTech Education and Training Plan which will also address the needs of traditional finan-cial industry associations with a view to increasing the integration of digital asset business activities into banking, insurance, and reinsurance infrastructure with a risk -management focused approach. Last but not least, the launch of digital- assetfriendly banking institutions will improve the marketa-bility of Bermuda as a jurisdiction capable of realising the full potential of FinTech.
The Business Services Division:
Hon. Jason Hayward: Mr. Chairman, the world is constantly evolving and with new challenges come new opportunities. We must learn how to do things differently.
Bermuda House of Assembly In addition to its core functions, the Economic Development Department advances various economic development projects. This includes external outreach, investigating the feasibility of various projects for development in Bermuda, and interfacing with pri-vate entities to advance potential programmes on the Island. To ensure that Bermuda remains competit ive as a jurisdiction and stays on the bleeding edge of technology, the EDD strongly and actively encourages local innovation as well as the training and employ-ment of Bermudians. It also internally helps other Government departments become more efficient. For instance: the traditional models of procurement have heretofore been the most commonly used delivery model for public services. It has been a vital approach to make sure that we receive services in the most time-efficient manner. However, conventional models can also be expensive and may limit the engagement of local stakeholders. To bypass these limitations, the Economic Development Department renders its focus on developing strategic partnerships which are wider encompassing than conventional procure ment and which are focused on fundamental principles of open Government. Over the past year and moving into 2022/23, the EDD has been steady in building an integrated tech ecosystem that enables the growth of new indus-try through tech incubation and by creating pipelines for industry to flourish. Adopting the concept of “smart city,” Innovation Island is the Department’s approach to optimising the efficiency of operations and services and to connect them to citizens. The Innovation Island concept will allow Government to interact directly with both community and Government infrastructure and to monitor what is happening on the Island. Capitalising on the strategic partnerships that will assist us in building it, our goal is multi -pronged: • to enhance the qual ity, performance and interactivity of public services; • to reduce costs and resource consumption; and • to enhance contact between citizens and the Government. This innovation touches every sector, every person, and every need from healthcare to transportation, and from environment to food security. As we advance the interests of our citizenry, recognising the constraints we face as a small jurisdiction. Mr. Chairman, t he Economic Development Department is functioning with a triple objective in mind: economic diversification and development, revenue generation, and job creation. These objectives cannot be achieved without deliberate inclusion: I t is imperative that as many Bermudians as possible take part in and benefit from the growth of new industry and of the economic sectors that are coming onboard. To that effect, the EDD is developing and implementing an education and development strategy, which I referred to earlier today as the Tech and FinTech Education and Training Plan. This plan will allow inbound interest to locate and participate in nur-turing, on the Island, the skilled workforce that is required to flourish and contribute to the economy. The plan builds on the following cornerstones: • Skills development, enhanced access to knowledge, and foundational learning, which will allow those persons who wish to enter the workforce at any age to re- skill and equip themselves with the necessary skill set, knowledge and experience to gainfully work in these new industries . • Fostered entrepreneurship, which w ill boost incubation linked to supporting, and feeding into and out of, the aforementioned new sectors. • Enhanced adoption, which will ensure that the community at large is sufficiently familiar and comfortable with the new technologies, therefore more apt to partake of innovative products and services. • Each of these building blocks require a skilled workforce as well as knowledgeable consumers and end- users. Both groups must be comfortable with the new sectors of the economy so that they may actively engage in them by joining the workforce through employment or self-employment, and/or by partaking of their products and services as consumers and endusers. Mr. Chairman, in addition to providing multiple yearly learning and networking opportunities, the Plan demands that the Economic Development Department host events that are valuable to the public in order to: 1. share information and arrange for subject - matter experts to speak directly to the Bermu-da-based learner and consumer ; and 2. celebrate the Bermuda- based e ntrepreneurs who continue to innovate in this space and lead the charge locally.
Allow me to list a few of these annual opportunities: • The Tech Education Summit, which is part of Tech Week , focuses on the development of emerging technologies and on how we can best deploy them locally. The event reaches a wide audience inclusive of students, recent graduates, and seasoned professionals. • Safer Internet Day provides our local seniors with the opportunity to interact with industry experts and to learn about the latest tech tools, how to avoid online fraud, and how to use technology to their benefit. • The Digital Leadership Conference [DLC] is targeted towards middle and high school students. It promotes the safe use of technology 594 7 March 202 2 Official Hansard Report B ermuda House of Assembly and encourages students to research and pursue technology -related careers. Last year, the DLC focused on “Thriving in a Virtual World” as the pandemic rapidly changed the way we sourced, interacted with, and gained acce ss to information. [There were] 1,300 participants from 10 local schools participated in the event.
The ChairmanChairmanMinister, if I could jus t pause you there for the benefit of the listening public as well. Just to remind persons that we are in the Committee of the whole with further consideration of the Estimates of Revenue and Expenditure for the year 2022/23. We are debating Head 94, …
Minister, if I could jus t pause you there for the benefit of the listening public as well. Just to remind persons that we are in the Committee of the whole with further consideration of the Estimates of Revenue and Expenditure for the year 2022/23. We are debating Head 94, whic h is actually Economic Development, which is a three- hour debate. Mi nister, you can continue, please. Sorry about that. Hon. Jason Hayward: [Continuing] •This coming year, the Digital Leadership Conference will focus on “Sustainable Technology –Creating a Better Bermuda through Sustainability, Leadership, and Community.” This year’s edition will add an international compo-nent by inviting students from Barbados and New York State to join our local students. •Girls in ICT Day: A yearly global salute that, in Bermuda, celebrates the winners of competi-tions that recognise women in the Information and [Communication ] Technologies sector on the Island. Among others, the event announces the year’s “Bermuda’s Inspiring Woman inICT.” •Global Entrepreneurship Week [GEW ]: Th e Department is a member of Bermuda’s GEWhosting committee and as such, it supportsand hosts events and competitions that cele-brate local innovation in technology in manyforms, such as the Pitch Tech promotions of the Rocket Pitch C ompetition and the TechAwards. •Last but not least, every year the Cybertips Programme visits local schools and community organisations with the single goal of pro-moting good digital citizenship. In addition tostudents, the programme also trains membersof the Bermuda Police Service, teachers andcommunity members to become “restorative practitioners. ” In the past year, 80 members of the public service and the community were fully trained through Cybertips. The EconomicDevelopment Department facilitates theseworkshops, events and programmes to enhance Bermuda’s overall offering as an eready jurisdiction.Mr. Chairman, over the coming fiscal year, th e Economic Development Department expects to continue to work with the community and industry to pro-mote Bermuda as a leader in economic diversification. We will continue to work with business partners both locally and internationally through formal partnership agreements that aim to develop new economic oppor-tunities for the Island. To meet the needs of Bermuda’s business environment today, the Incentives for Job Makers Programme must strike a balance between recogn ising the need for companies to retain senior execu-tives, and the need to provide an enabling environ-ment for the private sector to create new jobs for Bermudians and to maintain the existing ones. Both the Incentives f or Job Makers Programme as detailed in the Economic Development Act 1968 and the Incentives for Job Makers Acts 2011 and 2013 (Job Makers Act) provide an avenue for companies to obtain concessions and exemptions that enable their senior executives, who are responsible for the continued presence of jobs for Bermudians in Bermuda, to be exempt from work permit control. In 2021/22, the Incentives f or Job Makers Programme earned the Government over $300,000 in revenues, reflective of 17 successful exemption applications. Mr. Chairman, last but not least, the E - Commerce Advisory Board (ECAB) is a statutory Board created under the Electronic Transactions Act 1999 (the ETA) to advise the Minister responsible for e-commerce. This Board comes into effect upon publication in the Official Gazette. With s ecretarial support from the EDD and for this coming fiscal year, ECAB plans to focus on updating and moderni sing the ETA along three distinct lines: 1.Electronic Transactions Act 1999–g eneral updates and amendments; 2.Standards for e lectronic t ransactions; and 3.ETA harmonisation with the Personal Information Protection Act 2016.Mr. Chairman, the Economic Development Department has proven to be a valuable asset to the Government and to the private sector. In addition to serving as a liaison to the BDA and assisting new businesses, it also provides much needed assistance to existing Bermuda businesses by facilitating in-creased communication, clarifying Government poli-cies, and resolving issues between the business community and the Government. It is expected that the Department will continue to lend its services to benefit international busi-nesses in the upcoming year by continuing to serve on various relevant boards and committees. It is also expected that in the upcoming year, the EDD will continue its work in helping Bermuda to build on its success in the global market and to increase its ability to compete internationally. Mr. Chairman, I will now move on to the Grants of the Business Development Agency. Grants of the Business Development Agency
Bermuda House of Assembly Hon. Jason Hayward: Mr. Chairman, the Grant of the Business Development Agency can be found on pages C -17 and C -19 of the Estimates of Revenue and Expenditure. It is found on multiple pages because that particular grant moved from the Ministry respon-sible fo r the Cabinet Office to the Ministry of Economy and Labour. Mr. Chairman, the Business Development Agency was founded in 2013 as an independent public-private partnership to encourage inward direct investment and growth for Bermuda. The vision was for Bermuda to be the most respected and innovative financial centre in the world. The mission was to promote and encourage inward direct investment that positively contributes to Bermuda’s economy and strengthens Bermuda’s image on the world stage.
Grants and Contributions
Hon. Jason Hayward: Mr. Chairman, the Grant and Contributions for the 2022/23 fiscal period is located on page C -19 of the Budget Book and is listed as $3,420,000 which represents a minor decrease of $180,000, or 5 per cent from the allocat ed budget of $3,600,000, which is listed on page C -17 of the Budget Book.
2022/23 Strategies and Goals Hon. Jason Hayward: Mr. Chairman, the Bermuda Business Development Agency (BDA) will pursue targeted business development opportunities in key industr ies aligned with Bermuda’s value proposition and anticipated future growth potential. These include: Risk and Insurance Solutions (with a particular focus on climate risk finance); High Net Worth Services (i.e., trusts, private clients, and family offices) ; Asset Management (i.e., funds, Insurance- Linked Securities (ILS) and private equity); Technology (i.e., Tech, Financial Technology (FinTech), and Insurance Tech [InsurTech]; and Infrastructure (i.e., hotel development, subsea cables, space and satellites , renewable energy, and the blue economy). In terms of what lies ahead in 2022, from March 14 to 16, the BDA will host the first major inperson risk event to be held in Bermuda since 2019, the inaugural Bermuda Risk Summit. From April 11 to 14, the BDA w ill organise a delegation to RISKWORLD in San Francisco, combining attendance at this large international event, with additional business development meetings in Silicon Valley, focusing on technology, climate risk finance and venture capital. On May 11, t he BDA will promote Bermuda at its inperson Executive Forum in New York City, then on May 24, the BDA will hold an invite- only Bermuda Climate Summit. This in- person event will focus on how Bermuda is the perfect platform for climate risk finance. Finally , the BDA will host its fourth annual Bermuda Tech Summit, being held in- person this year as part of Bermuda Tech Week from October 24 through 28.
2021/2022 Highlights
Hon. Jason Hayward: Mr. Chairman, during the fiscal year 2021/22, the BDA continued t o promote and protect in collaboration with Government and the private sector, sustainable and equitable economic growth and prosperity in Bermuda, focusing particularly on the five industries mentioned above. Highlights from the 2021/22 fiscal year include the following: • In June, the BDA attended its first in- person event since 2019, by leading a delegation to Miami, and held multiple business development meetings, specifically targeting technol-ogy and climate risk finance. • During the last four months of 2021, the BDA organised three climate risk finance road-shows in New York City, the last of which included meetings with leading global capital allocators with combined assets under man-agement of nearly $11 trillion. • The culmination of our year -long effor ts to promote Bermuda as a leader in the devel-opment of innovative technology was our third annual, Bermuda Virtual Tech Summit on October 13 –15, which welcomed nearly 800 delegates from 500 companies across 52 countries. • From November 3 through 7, attended the 26 United Nations Climate Change Conference (COP26) in Glasgow, Scotland, to tell how Bermuda is the perfect platform to be the world’s climate risk capital. On November 6, the BDA hosted a luncheon for a diverse group of [30] technology leaders, NG O heads, asset allocators, and senior government offi-cials. Events in Glasgow were followed by several business development meetings in London from November 7 through 9.
Economic Impacts of Key Programmes
• Hon. Jason Hayward: Mr. Chairman, [following are] the economic impacts of key programmes: [There were] 47 Economic Investment Certificate [EIC] leads generated since March 2021; 13 EIC applications approved for a total investment of $256 million; • The [BDA] was also instrumental with assisting with the promotion of Bermuda’s Work From Bermuda (WFB) initiative. Since the launch of Work From [Bermuda] initiative, 1,081 applications were received, of which 937 have been approved with 638 moving to Bermuda. In the first year of i mplementation 596 7 March 202 2 Official Hansard Report
Bermuda House of Assembly WFB has added an estimated $23.3 million into Bermuda’s economy.
Bermuda Economic Development Corporation
Hon. Jason Hayward: Mr. Chairman, I will now move to the Bermuda Economic Development Corporation grant. It is found on Budget Book pages C -17 and C - 19. Mr. Chairman, it gives me great pleasure to present the budget for the Bermuda Economic Development Corporation, a quango under the Ministry of Economy and Labour, found on page C -19 of the Budget Book. BEDC is currently responsible for overseeing the operations of the Economic Empowerment Zones [EEZs], for providing financial support and technical advice to small and medium -sized businesses, for managing the operations of outside vendor markets, and for managing vendors and issuing vending licences. The organisation’s key objective remains to assist the Government in encouraging economic growth for Bermuda’s local small and medium- sized businesses.
2022/23 Projected Revenue and Expenditure Overview
Hon. Jason Hayward: Mr. Chairman, for fiscal year 2022/23 the BEDC will receive an operating grant from the Economic Development Department compa-rable to the pre- pandemic grant received two years ago from the Cabinet Office. The 2022/23 grant, in the amount of $2,238,752, represents a 193 per cent increase on the capital grant of $764,000 provided to BEDC in fiscal year 2021/22 following a 70 per cent decrease in the grant in 202 1/22 compared to 2020/21. The projected Board approved 2022/23 budget is comprised of the Government grant, carry over funds from the 2021/22 budget, revenues from products and services, and realised investment funds.
2021/22 Revenue and Expenditure Over view
Hon. Jason Hayward: Mr. Chairman, for this current fiscal year 2021/22, BEDC received a reduced grant from the Cabinet [Office] in the amount of $764,000 for general operations and annual BEDC programmes as listed on page C -17 of the Budget Book. In addition, a balance of $974,176 for the research, development, and establishment of the Uptown Development Authority initiative assisting with the regeneration of the NE Hamilton Economic Empowerment Zone; and a balance of $120,000 for assisting with deve loping a Fishing Cooperative for Bermuda were carried over from fiscal year 2020/21. Additionally, a balance of $8,400,000 from the supplementary grant that the Ministry of Finance pro-vided BEDC during fiscal year 2020/21 to directly support local small and medium- sized businesses impacted by COVID -19, was carried over into fiscal year 2021/22. Due to the devastating economic impact of the coronavirus locally, businesses continued to re-quire funding support which was provided through BEDC’s COVID -19 Busines s Sustainability and Continuity Funding as well as through BEDC’s COVID -19 emergency grants. Initial requests for funding in 2020 were mainly to meet the immediate business sustainability needs for business owners to weather the COVID -19 storm, essentiall y, triage funding. In 2021, BEDC saw funding requests for long -term business continuity needs due to the economy remaining challenged, in which businesses are pivoting, shifting, and embracing new and innovative ways of doing business. It is clear, that in 2022, further funding support is needed to shore up Bermuda’s local small and medium[ -sized] businesses. As such, remaining funds from the 2020/21 supplemental grant will be deployed to continue to further assist businesses in fiscal year 2022/23. Between April 2021 and January 2022, BEDC has approved 157 funding applications thus far in fiscal year 2021/22 from small and medium- sized businesses through the Ministry of Finance’s $12 million grant to support businesses impacted by COVID -19 pandemic. In the previous fiscal year 2020/21 there were also 158 applications approved resulting in a cumulative total thus far of 315 funding applications approved throughout the COVID -19 support. BEDC currently has applications in process and expects to remain busy in F ebruary and March 2022, resulting in increased approvals for this fiscal year. So far during this current fiscal year we have [disbursed] an additional 12 per cent or $1.5 million of funds within the $12 million grant with more applica-tions being processed. A total of 46 per cent or $5.5 million of the $12 million grant has been [disbursed] thus far to local small and medium enterprises [SME] in a range of funding products. The demand is just as high as the prior year and, as such, BEDC will continue to develop new products that can continue to support local small and medium enterprises. Products under development to assist local small and medium enterprises are: • guarantees for facilitating purchase of commercial buildings within the EEZs; • increased direct micro loan lending up to $50,000; • professional service grants for businesses to access needed accountancy, legal, website, e-commerce, and marketing services; and • innovation grants to support the development of innovative business concepts .
Bermuda House of Assembly Mr. Chairman, as such, BEDC continuously grants funds to develop new products that can continue to support local small and medium enterprises. BEDC knows that there will be continue d demand in fiscal year 2022/23 as the impacts of COVID -19 pandemic rema in within Bermuda’s economy and businesses require continued long- term funding support. At least $1.15 million has been allocated in 2022/23 for direct funding to assist local small and medium[ - sized] enterprises.
Capital Expenditure
Hon. Jason Hayward: Mr. Chairman, BEDC is currently completing capital works on its three Economic Empowerment Zones (EEZ) Incubator Hubs. [A full] $165,000 was allocated in fiscal year 2021/22 for in-frastructure and capital works associated with developing incubator spaces across the Island. In the Somerset Economic Empowerment Zone, the EEZ Incubator Hub is located at Forth House, 68 Somerset Road, Sandys, in the prominent location of the former Il Palio restaurant space. In the St. George’s Economic Empowerment Zone capit al works are being completed on the EEZ Incubator Hub located on the top floor of the St. George’s Post Office at 11 Water Street, Town of St. George, part of the former police station. In the North East Hamilton Economic Empowerment Zone capital works is being completed on the EEZ Incubator Hub and Uptown Development Au-thority offices located in the Donald French Building, 19 Elliot Street, City of Hamilton, in the former Bermuda Sun location. COVID -19 has impacted the completion of the Incubator Hubs, but all are scheduled to be completed by March 2022 for acceptance of innovative and hun-gry entrepreneurs looking to start up businesses to enhance and regenerate all three zones by May 2022. The highly competitive process will see a total of 20 start-ups selected annually between the three incubators. Building off the success of BEDC’s Enterprise Bermuda Incubator programme, housed in BEDC’s main office, and supporting 30 start -ups over the last 4 years, the EEZ Incubators will ensure entrepreneurs get beyond the idea stage and start to bring their businesses to fruition, while regenerating the zones. Each location will not only be used to conduct client meetings and facilitate community engagement, but also to expand on the incubator programme. BEDC is excited to announce that it has partnered with The Accelerator Centre out of Waterloo, Canada, to offer a one-year curriculum to entrepreneurs commencing in May 2022. Mr. Chairman, $90,000 was earmarked in fiscal year 2021/22 for infrastructure costs to build an accessible Wi -Fi network within the North East Hamilton EEZ as one of several initiatives to attract and en-hance the visitor and resident experience within the zone. Economic development tools such as accessible Wi- Fi in public urban areas is commonplace in many jurisdictions around the world. That project was put on hold, given the focus on the Economic Recov-ery Plan priority projects, and will be advanced late in fiscal year 2022/23. Mr. Chairman, as mentioned earlier under the projected 2022/23 budget, BEDC has set aside $3,200,000 for major capital investment projects and initiatives aligned with the Government’s Economic Recovery Plan and economic development goals. Specifically, investment in the development of the Vertical Farm project to facilit ate food security, lower food cost, develop farm co- ops, and create jobs in a new evolved area of the agriculture industry, as well as investment in the Approved Residential Schemes pro-ject, facilitating foreign direct investment in the construction of res idential developments and purchase of residential units within the Economic Empowerment Zones, thereby increasing the residential population within the city and the other zones. Lastly, much progress has been made on the plan for the Fisheries Development Centre with $1,500,000 previously earmarked within the Govern-ment’s own capital budget towards the ERP initiative. The goal for BEDC is that the draft plan is approved within the next few months and the next action steps progress steadily shortly after th e approval so that breaking ground on the innovative facility can commence by the fourth quarter of fiscal year 2022/23.
BEDC’S Manpower
Hon. Jason Hayward: Mr. Chairman, for all it achieves BEDC is a relatively small organisation. In 2021/22 BEDC added four temporary one- year posts and has a staffing complement of 18 full -time posts. There are currently three vacant posts actively being recruited.
2021/22 OUTCOMES
Hon. Jason Hayward: Mr. Chairman, 2021/22 has been an extremely busy year for the Corporation given the overriding goal to assist as many businesses as possible due to the ongoing impact of COVID -19 pandemic on local businesses. I would like to share some of BEDC’s major achievements over the past year, in part due to the supplemental grant funding it received. Key achievements were: • Entrepreneurship Financing; • Entrepreneurship Advisory Services ; • Entrepreneurship Catalyser; • Entrepreneurship Education; • Youth Entrepreneurship (which includes the Summer Entrepreneurship Programme, Youth Pitch); 598 7 March 202 2 Official Hansard Report
Bermuda House of Assembly • Entrepreneurship Networking and Promotion; • Entrepreneurship Development (which includes Enterprise Bermuda Incubators, Enterprise Bermuda Accelerator); • Entrepreneurship Communication and Outreach; • Economic Empowerment Zones; and • Economic and Cooperative Development (which includes Fisheries Development Centre and improvements to Cooperative [Legislation].
2022/23 FOCUS
Hon. Jason Hayward: Although much progress has been made in ensuring new products and services are developed to continue to facilitate entrepreneurship and new business formation on Island, with the devastating impact of the global pandemic on local businesses, the Government is desirous of BEDC focusing on key projects and initiatives in 2022/23, many of which are in the Economic Recovery Plan, and can provide further benefit and positive impact economically in Bermuda. These areas are: i. Virtual Marketplace—COVID -19 highlighted the importance of the role of technology in Bermuda’s future and the future of work. As businesses pivoted to online and e- commerce platforms in order to conduct business and remain relevant during the pandemic, issues such as accessibility, affordability, and availa-bility plagued businesses being abl e to pivot quickly. BEDC recognises that access to af-fordable virtual markets is a must for business success and is actively developing an option for Bermuda’s local small and medium enterprises. The primary purpose of the BEDC vir-tual marketplace is to pr omote economic development in Bermuda by providing small businesses with an online platform to allow them to sell their goods locally and internationally. The BEDC contracted with Jahde Eve of Code441 to build the ByBermuda virtual market. ByBermuda was soft launched during this fiscal year and BEDC is currently working with the vendor to troubleshoot and resolve design issues discovered during the testing phase. Early in the 2022/23 fiscal year, BEDC anticipates a full broader public launch of the ByBermud a market, providing an accessible and affordable e- commerce solution to many small local businesses and start -ups. ii. Food Cooperatives —In March 2021, the Government asked BEDC to work with the Farm-ing Industry to determine the viability and appetite to form Agriculture/Food Cooperatives with the goal of facilitating food security and reducing the cost of food to consumers. BEDC commenced research to understand the farming community and facilitated multiple meetings with the Department of Environment and Natur al Resources, conducted a site visit to the Agriculture Service Centre, held two vir-tual public meetings with farmers, conducted a survey of the agriculture industry, and held individual meetings with various “farmpreneurs.” (That is a new word for me, Mr. Chairman.) As a result of this project and the outreach, farmers have become aware of the financial support BEDC offered and, as a result, BEDC has recently approved three applications for direct funding to this industry. BEDC is currently developing a fo od cooperative policy based on the research and en-gagement conducted with recommendations for Cabinet to consider. Some will be closely aligned with recommendations BEDC is making on its work with the fisheries industry. Given the other competing ERP projects, and a defined human resource complement, BEDC’s goal is to provide the policy paper to the Cabinet with recommendations and next steps for the next fiscal period. iii. Approved Residential Scheme—This scheme allows for developers and investors to have a tool and a process for Government support of residential development schemes in all three EEZs. The document and the process public document has been completed and with the Economic Development Department, a process for receipt and review of proposals has been developed. BEDC is currently discussing with the Department of Planning a process for their involvement when developers show interest so that there is a road show and a wrap- around approach to facilitating that interest. iv. Fisheries Development Centre—In fiscal year 2022/23 the following action areas will be completed for successful development of the Fisheries Development Centre. While a draft business plan and financials have been completed, refinement of these based on feedback from industry stakeholders and policy makers is key to the success of the centre. Fishers will be engaged in a PR and consulta-tion process focusing on a summary of the key parts of the business plan to allow for best co-op membership decision- making. In order for fishers to under stand their role as members and owners of the cooperative, education experiences will be rolled out. Further actions to be realised over the next four months are: (1) confirming fisher members that will pro-duce the tonnage required for the Fisheries Develo pment Centre to be profitable; (2) finalising incentives for member fishers to further help positively reshape the fishing industry;
Bermuda House of Assembly (3) eliminate impediments to growth of the fishing industry; (4) grade pelagics caught within our marine EEZ for quality as sessments; (5) develop the framework to test the profitable export of pelagics to overseas mar-kets; (6) finalise the capital budget required for successful development of the Fisheries Development Centre; (7) develop job descriptions inclusive of board member positions/skill sets; and (8) finalise the construction partners to begin costing, contracting, and Fisheries Development Centre construction. v. Uptown Development Authority —The BEDC has been tasked with the establishment of an authority which will overs ee the regeneration of the North [East] Hamilton Economic Em-powerment Zone through facilitating residen-tial and mixed- use development projects. In early fiscal year 2022/23 BEDC will progress this plan through legal establishment of the body. Progress has been made on substantial completion of key tools needed for the success of this authority such as a physical location for the authority in North Hamilton, the public review of the draft North Hamilton Local Plan, the online platform for development [opportunity] sites, the approved residential scheme policy and process, and the business directory and map. Recruitment for a Head of the Authority will commence at end of February 2022. With the completion of the Authority office in late March 2022, the success ful candidate will have a central home within North East Hamilton/Uptown when they commence. In the interim, BEDC and the Economic Development Department will continue to facilitate discussions with developers.
The ChairmanChairmanMinister, can I ask you to pause? I am about to be replaced. So I am just reminding the listening audience that we are debating Head 94, Economic Development. I will now hand it over to Deputy Speaker Burgess. [Hon. Derrick V. Burgess, Sr., Chairman]
The ChairmanChairmanThank you, MP Tyrrell. Minister Hayward, you may continue. Hon. Jason Hayward: Mr. Chairman. vi. Southeast Hamilton EEZ Extension—The MSME Unit of BEDC has been working to gauge the feasibility of extending the Northeast Economic Empowerment Zone to businesses bounded by Victoria Street to the north, King Street to the …
Thank you, MP Tyrrell. Minister Hayward, you may continue. Hon. Jason Hayward: Mr. Chairman. vi. Southeast Hamilton EEZ Extension—The MSME Unit of BEDC has been working to gauge the feasibility of extending the Northeast Economic Empowerment Zone to businesses bounded by Victoria Street to the north, King Street to the east, Front Street to the south, and Court Street to the west. GIS mapping has been used to identify the build-ings, businesses, and uses and survey emailers to all businesses in the area has c ommenced this week with responses due by the end of March. Analysis will take place after with a recommendation report to Cabinet in late March. The goal is to facilitate synergy within the two EEZs, extend economic development tools to the expanded zone, and facilitate more investment and development within the zones. Mr. Chairman, other initiatives that will be undertaken [include the following]: • EEZ Digital Token Initiative; • NE Hamilton/Uptown Development Map; • Continuation of the Annual Business Registr ation; • Advancement of Cooperative Legislation; • Underutilised Commercial Kitchens for Community Users; • Co-op Educational Seminars & Workshops; • Cooperative Public Relations; and • Co-op Economic Development Opportunities.
In closing, Mr. Chairman, businesses create jobs, thereby growing our economy. In fiscal year 2022/23, the Bermuda Economic Development Corporation, will continue to enhance its products and services to provide further opportunities for Bermuda’s local micro, small and medium- sized businesses with the goal of facilitating economic growth and empow-erment in this sector. It is therefore vital that BEDC receives the budgetary support it requires to continue fostering economic stability and growth in Bermuda’s local entrepreneurs. Thank you, Mr. C hairman. Mr. Chairman, that brings an end to the Budget Briefs for Head 94, which are found on pages B-194 to B -197 and the associated grants which are found on pages C -17, C -19. Thank you.
The ChairmanChairmanThank you, Minister. Any further speakers in reply to the Minister’s Statement?
The ChairmanChairmanMr. Richardson, you have the floor.
Mr. Jarion RichardsonThank you, Mr. Chairman. And I thank the Honourable Minister for presenting a thorough brief as it relates to Head 94 on the Economic Development Department, its activities, structure and its grants to both the Bermuda Economic Development Corporation and the Bermuda Business Development Agency. To that end, Mr. Chairman, …
Thank you, Mr. Chairman. And I thank the Honourable Minister for presenting a thorough brief as it relates to Head 94 on the Economic Development Department, its activities, structure and its grants to both the Bermuda Economic Development Corporation and the Bermuda Business Development Agency. To that end, Mr. Chairman, I will speak and ask questions as it relates a lot to the structure of the department and what we have in the Budget Book, 600 7 March 202 2 Official Hansard Report
Bermuda House of Assembly specifically on pages B -194 through B -197, and page C-19, relat ing to grants and contributions. To that end, Mr. Chairman, I will start. The mission statement of the Economic Development Department is to advance sustainable growth, develop-ment and diversification of Bermuda’s economy with some clear department objec tives. My question will relate to how these department objectives are getting accomplished as outlined in the performance measurements. So the department objectives are outlined on page B -194 and the performance measurements are on page B -197. My questions will relate to the correlation between the two because I am concerned that there is no clear set of steps outlined in the performance measures to accomplish the department objectives. From that stage, I will then go into the individual spends, revenues an d estimates for expenditure, Mr. Chairman. To that end, Mr. Chairman, how would you prefer me to do that? My current chain of thought is simply to launch into [pages] B -194 and B -197 and then have the responses back from the Honourable Minister, and then ask questions.
The ChairmanChairmanWhatever is comfortable with you. I am sure the Minister will accommodate you also.
Mr. Jarion RichardsonPerfect. Thank you. And again, I thank the Honourable Minister. To that end, Mr. Chairman, I note that the department objectives to facilitate and create and implement policies to support the Economic Recovery Plan. I suppose the first step is to make sure that the Minister gets his due as …
Perfect. Thank you. And again, I thank the Honourable Minister. To that end, Mr. Chairman, I note that the department objectives to facilitate and create and implement policies to support the Economic Recovery Plan. I suppose the first step is to make sure that the Minister gets his due as it relates to the Economic Re-covery Plan because in the previous Budget Book there was a mission to create a plan and that has subsequently been completed and circulated, so to that end, I thank the Minister. There seems to be an outstanding question though with this department objectives to facilitate and create and implement policie s to support the plan. And I would like the Minister to give an example of what he means by a policy to support the Economic Recovery Plan. I get that there is a plan. I get that there are actions and steps and milestones and deliverables within it, I am j ust not entirely sure I understand what is a policy is to support it. My next question on page B -194, Mr. Chairman, is [that] we have two department objectives from last year and I wanted to ask the Minister what the progress is on these two objectives. N amely, and he read it, in collaboration with industry stakeholders, position Bermuda as an ideal test market for innova-tive product and industry development . This was [also] in last year’s Budget Book and I would like to under-stand how that proceeds. I see in his Ministerial Statements a couple references, especially relating to Class T licences, and the like. If he could just specify which ones he was speaking to. The next is [to] identify the jurisdiction’s market fit, clearly communicate its message, and drive action that leads to economic activity . Again, if he could speak to the progress on that specific depart-ment objective. And, Mr. Chairman, the Honourable Minister has a department objective [of] analyse innovative developments and trends through research and stakeholder engagement s. These questions will relate to the structure of the department because on page B - 196 the employee numbers, full -time equivalents, under [line item] 104000 administration, [under] description it has some 11 employees. But what I do not see is that they do not seem to be broken out into the de-partments that he had mentioned in his Ministerial Statements or that is in his PATI statement for that department, that is the Public Access to Information statement. He has got depar tments here for Research and Legislation, FinTech, Business Services Division, and I just do not see the match up with the Budget Book. So if he could just speak to the structure of the department and which one of those sub- departments or teams, where they are within the Budget Book. And in his brief, the Honourable Minister mentioned e- commerce and mentioned how he is in fact (I just want to be clear) that he is responsible for ecommerce. I think I heard that mentioned. My next question [is] on structure and after that I hope the Minister would be able to assist me with understanding the structure of the department. I will stop talking and leave some space for the questions before I move on. My next question for structure would be that the Minister’s Statement mentioned a couple of times the Incentive for Job Makers fee. And as we look on page B -196, under revenue summary, the only fees I see being incurred by the department is under business unit 8291, land acquisition fees. And so my question is: Where are the fees for the Incentive for Job Makers that he had mentioned? Those would be my questions for page B -194,
The ChairmanChairmanYes, I’m sorry. Thank you. Would you like to respond to that Minister? Hon. Jason Hayward: Certainly. I thank the Member for his questions, Mr. Chairman. As he stated, there are five main departmental objectives. The first will be facilitate, create, and im-plement policies to support the Economic Recovery Plan. …
Yes, I’m sorry. Thank you. Would you like to respond to that Minister?
Hon. Jason Hayward: Certainly. I thank the Member for his questions, Mr. Chairman. As he stated, there are five main departmental objectives. The first will be facilitate, create, and im-plement policies to support the Economic Recovery Plan. And so as it pertains to the Economic Recovery Plan blueprint, this department has two functions. Number one, it has the overall site function as it pertains to all the items within the plan, as advancing this plan is in line with the objectives of t he department.
Bermuda House of Assembly And then number two, promotion and building policies for specific initiatives, which fall within the Economic Recovery Plan. As so the department can be the oversight department where information gets reported to that department, and that de partment can be the lead on a specific project or initiative and that is why the implementation of policies is drafted into the objectives. In terms of in collaboration with industry stakeholders, this positions Bermuda as an ideal test market for innova tive products and industry development. You would note that this department works in conjunction with other Government departments. So I [will] give you one example of where they carried out that objective [and that] is the regulatory sandbox that we heard [about] as it pertains to Home Affairs. That is one example where synergies were created between the two departments to come up with a product that will enhance Bermuda’s standing as it pertains to technology. Analyse innovative developments and trends through research and stakeholder engagement. I think you would recognise that part of attracting new businesses to Bermuda is, number one, having engagement with potential investors, but also understanding not just Bermuda’s economic market, but overseas markets to see [where] opportunities may lie. And I think that this particular department does both of those functions. The department works extremely close with the Business Development Agency [BDA]. And it is under the BDA where you would have seen they are moving in a space of also trying to draw businesses that will increase a level of innovation on Island as well. As it pertains to identifying the jurisdiction market fit they communicate its message and drive up opportunities that lead to economic act ivity. And thirdly, our primary focus of the [BEDC] is advances in attracting innovative businesses. And so they are the primary concierge for FinTech businesses that actually want to do business on the Island. So if I can just give you a pipeline. The BD A goes to a conference, they have a discussion with a potential investor, the BDA markets Bermuda as a jurisdiction which persons would want to open up their business or move their business venture to it. When they get to the stage about in terms of what the next step is, then the Economic Development Department is that natural next step and they have more in- depth conversations with the . . . developed in terms of what type of legislative framework the business can fall under in terms of immigration and e mployment policies that are on Island, and then commercial real estate and things of that nature. So it is an all -around concierge service where we try to build that business perspective to potential investors. So if somebody ever approached you and they w anted to start a business in Bermuda, the department that you will invite them to contact is the Economic Development Department. Identify and develop and implement policy and legislative initiatives that generate industry confidence. This department has somewhat of a legal arm to it. And that legal arm is part of a system with the development of legislative policy. So I would have spoken about the segregated accounts and the “I” sector, some of the work they were focused on last year. But moving forward c ertainly when we get to a place where we want to advance initiatives, but it is not supported by our current legislation, then that arm of that particular department will actually be doing that. The department is not broken down in departments, as such, b ut they are broken down in terms of function. I will work to ensure that I get the numbers in terms of how many individuals are working within each area so that you are clear. But I am just waiting on those numbers from the technical officers as to it, as it pertains to each area. As it pertains to the performance measures that you outlined and how do they meet, or how do they match with the department objectives, you would see that the performance measures are broken down by the specific areas and so the t asks are all associated with the objectives at a very high level. One objective could have multiple tasks. So, for example, if you want to [ attract ] a new FinTech company to Bermuda, they may intersect with the analyst and policy section. They may also intersect with the concierge section. And they may also intersect with the research and legislative support section to determine if there is a legislative fit for the company or to determine whether or not legislation needs to be amended. And if legislation needs to be amended, that is where the research and legislative support section would actually recommend that sort of change. As it pertains to the way in which the target outcomes are actually set, if you can look at the Book, there is not really . . . the target outcomes are not as defined as you would probably expect them to be. And it is because this particular department deals with a level of uncertainty. You don’t know how much business opportunities you may fall into, but you continue the outreach in a number of overseas markets to see if you can connect with businesses. The other thing in terms of business development, I think what we do is develop a strategy and then we are working toward the execution of that strategy. You will see that those targets will be built within the strategy. And you would not find them in the current Book. It is very difficult for them as well to put a target for new legislation. Legislative targets will, or legislative amendments will be driven from the Ministry and you can appreciate that this department just moved under the Ministry Economy and Labour and so the policy direction for those areas have not been provided as of yet. 602 7 March 202 2 Official Hansard Report
Bermuda House of Assembly In terms of concierges, I think what they aim to do is try to stick to business rules in ter ms of time periods to assist persons who put in applications through the concierge service. And so they are more of service standards rather than having a number of concierge applications that you handle on an annual basis. And so this is where the targets are, a kind of written as a set of business rules rather than what you would consider to be performance indicators. Did that cover that set of questions that you asked?
Mr. Jarion RichardsonMr. Chairman, that did cover those questions. I am happy to move from page B -194 onto my questions for page B -195.
Mr. Jarion RichardsonThank you, Mr. Chairman. Thank you, Honourable Minister. I note, Mr. Chairman, that under page B -195 under general summary for expenditur es, that we have no expenditures under concierge and engage-ment, business unit 9405. And this goes to my question with the Minister earlier as it relates to structure …
Thank you, Mr. Chairman. Thank you, Honourable Minister. I note, Mr. Chairman, that under page B -195 under general summary for expenditur es, that we have no expenditures under concierge and engage-ment, business unit 9405. And this goes to my question with the Minister earlier as it relates to structure because we actually do have performance measurements for business unit [9405], concierge and engagement. And he did mention it during his Ministerial brief. But we do not see any expenses being incurred in the undertaking of those performance measurements. Specifically, the performance measurements we are looking at are work permit applications for stra-tegic business partners, we are looking at a pro-cessing time of no longer than 10 days, we are looking at social insurance applications from new strategic business partners, application processing time no longer than three days, payroll tax appl ication no longer than three business days, and one discontin-ued item. So to that end, we are not seeing expenses incurred. And my question is, Why aren’t we seeing expenses incurred? Where have those expenses gone? Because clearly we are going to incur ex penses in providing the service, but we just don’t see how much they cost for us to provide. So my first question on page B -195 is, Where are those expenses tracked in the budget? I have additional questions on page B -195,
Mr. Chairman.
The ChairmanMm-hmm.
Mr. Jarion RichardsonThank you. [These] are a little bit more specific. I note under subjective analysis of current account estimates on page B -195, we are seeing object code . . . we are seeing descriptions for expenses including salaries, training, travel, communications, advertising and promotion, professional services, rentals, repair and maintenance, …
Thank you. [These] are a little bit more specific. I note under subjective analysis of current account estimates on page B -195, we are seeing object code . . . we are seeing descriptions for expenses including salaries, training, travel, communications, advertising and promotion, professional services, rentals, repair and maintenance, materials and supplies, other expenses, and grants and contributions. My questions really do relate to three of these quite speci fically. Although, to be fair, if the Minister could speak to any of those numbers as to how those numbers were reached, it would be of assistance, but these specific questions,
Mr. Chairman.
The ChairmanMm-hmm.
Mr. Jarion RichardsonUnder the descri ption advertising and promotions we are seeing a requested spend of $270,000. Given that we have the Bermuda Business Development Agency and the BEDC, who undoubtedly have their own budgets and line items for advertising and promotions, can the Minister speak to how we got to the …
Under the descri ption advertising and promotions we are seeing a requested spend of $270,000. Given that we have the Bermuda Business Development Agency and the BEDC, who undoubtedly have their own budgets and line items for advertising and promotions, can the Minister speak to how we got to the number of $270,000? Why we need it? If he could justify that spend, or explain—sorry, that spend. The next question I have is [about] professional services, Mr. Chairman. Specifically, we are looking at a requested spend of $259,0 00. Again, which professional services will be consumed? Again, because we have agencies who are supposed to be for all intents and purposes, selling Bermuda. But also, Mr. Chairman, to that question, the Minister has made the point of the department being in charge of oversight and monitoring of the Economic Recovery Plan. And we know that there has been a recent hirer for KPMG to create a project management office that feeds into Cabinet Office. So my question is, Is the $259,000, part of that the hiring of KPMG for the provision of setting up monitoring and oversight of the Economic Recovery Plan? And my last question . . . sorry, second last. We see rentals, Mr. Chairman, under subjective anal-ysis of current account estimates at $88,000. But I do not se e what we are renting in the Budget Book, under Head 94. My reading of the rentals is under Schedule 3, page C -27, but I do not see Head 94 there. So I just want to get some clarity around what it is that we are renting. And most especially because the department has gone from . . . sorry, the head, the economic development department, has gone from an original spend on rental of $7,000 which was revised to only $4,000, and then it literally jumps up, we are expecting or requesting a spend of $88,000 which the Budget Book reflects as a 1,000 per cent increase. So I think if the Minister could explain that item this would be appreciated. Thank you, Mr. Chairman. Thank you, Honourable Minister.
The ChairmanChairmanMinister. Hon. Jason Hayward: Thank you. Mr. Chai rman, I want to go back to the previous question that was asked regarding the department and the teams within the department and how [many] individuals are on Bermuda House of Assembly each team. So there are 11 full -time employees [FTEs] …
Minister. Hon. Jason Hayward: Thank you. Mr. Chai rman, I want to go back to the previous question that was asked regarding the department and the teams within the department and how [many] individuals are on
Bermuda House of Assembly each team. So there are 11 full -time employees [FTEs] within the Economic Development Department: Compliance, Communication and Education. There are two FTEs . Research and legislative support, there are two FTEs. Administration is one [FTE]. Business service division there are five [FTEs]. And concierge and engagement division, there is one [FTE] indi vidual aligned with that. Just as it pertains to when I was discussing the policy work that [BEDC] draws an alignment with the other units and the Economic Recovery Plan. Things such as vertical farming, the improved residential schemes, the uptown market [and] even given the consultation on the economic investment certificate is some of the policy work that EDD would have assisted with in the development of those. As it pertains to the concierge and engagement, you were asking why under [business unit] 9405 there are no . . .
The ChairmanChairmanNo funds. Hon. Jason Hayward: No funds associated with that. I will seek clarity for that, but it could be one of two things. For example, if you look at the FinTech unit, the FinTech unit, the employee that is under the FinTech unit is actually seconded. And so at …
No funds.
Hon. Jason Hayward: No funds associated with that. I will seek clarity for that, but it could be one of two things. For example, if you look at the FinTech unit, the FinTech unit, the employee that is under the FinTech unit is actually seconded. And so at this point in time there were no direct funds associated with that item. I am assuming that could be the same for the concierge service, but I will endeavour to get you the correct information as to why that is not there. Or whether the funding comes under, is lumped up with the salaries under the general administration.
[Pause]
Hon. Jason Hayward: I still waiting for information as it pertains to what the $88,000 for the rental —
The ChairmanChairmanYes. Hon. Jason Hayward: —would be, and also the advertising fees that are required. But what I would say is outside of just external advertising, we have internal advertising the EDD is responsible for. So, for example, when you have local initiatives whether i t be on cybersecurity, whether it …
Yes. Hon. Jason Hayward: —would be, and also the advertising fees that are required. But what I would say is outside of just external advertising, we have internal advertising the EDD is responsible for. So, for example, when you have local initiatives whether i t be on cybersecurity, whether it be on Tech Week that we have for our students, all of that is not really external outside of Bermuda, but internal. And those do have some level of branding and advertising associated with it, but I am certain that I will provide you with a more in- depth detail. So, Mr. Chairman, if you allow the Member to carry on with his questions and by the time he finishes that set of questions, I will have the answers to the previous questions asked.
The ChairmanChairmanYes. MP Richardson, you can continue. Mr. Jarion Richardson: Thank you, Mr. Chairman. Thank you, Honourable Minister. So, moving on to page B -196 as it relates to Head 94, for the revenue summary. I did ask this earlier and I think it is coming with the last batc h …
Yes. MP Richardson, you can continue. Mr. Jarion Richardson: Thank you, Mr. Chairman. Thank you, Honourable Minister. So, moving on to page B -196 as it relates to Head 94, for the revenue summary. I did ask this earlier and I think it is coming with the last batc h of questions. But just to be sure I get it out there.
Hon. Jason Hayward: If I can answer that question.
The ChairmanChairmanMm-hmm. Hon. Jason Hayward: The revenue associated with that particular item will be captured under the Department of Immigration as the . . . those are permanent resident certificates applications that will be granted and the revenue will be associated with that cost centre as that is the way in …
Mm-hmm.
Hon. Jason Hayward: The revenue associated with that particular item will be captured under the Department of Immigration as the . . . those are permanent resident certificates applications that will be granted and the revenue will be associated with that cost centre as that is the way in which finance has it laid out. So even though the Economic Development Department does th e work and does the administration, the way in which it is looked at underneath the . . . how finance is broken down, that revenue will be received by the Department of Immigration.
Mr. Jarion RichardsonThank you, Mr. Chairman. I thank the Honourable Minister. I would just say from my experience, I hope he gets credit because I would hate to raise money and not get it in my performance appraisal. But, okay, so the question here, Mr. Chairman, revenue summary, we see under business …
Thank you, Mr. Chairman. I thank the Honourable Minister. I would just say from my experience, I hope he gets credit because I would hate to raise money and not get it in my performance appraisal. But, okay, so the question here, Mr. Chairman, revenue summary, we see under business unit 8291, land ac quisition fees. We saw that this went up. We are anticipating it going up by 45 per cent and we have seen some increased activity in the real estate market. So, if the Honourable Minister could speak to why we are anticipating a 45 per cent increase. I am very mindful that the 2021/22 original was $5,500 [million] and then we saw a $9 million coming through and now we are estimating $8 million, but I just want to be very clear, What is the basis (if we could get it on record) for that? A question as it re lates to employee numbers, full-time equivalents. Given that there are some 11 team members working across a few different teams and subdepartments, I would like it if the Minister could speak to how they are going to avoid duplication of services. There i s, not so much with the Economic Development Department, Mr. Chairman, but there is a Law Reform Committee (or Commission, I can’t remember the name) and they deal with a lot of legisla-tion and I know they have members from the private sector. And also as it relates to business development with Bermuda Business Development Agency, given that we have everyone organised under [line item] 104000, administration, they are operating under (it looks like) five subdepartments. How does the Minister plan to avoid duplication of work? That is my question on [page B -]196, Mr. Chairman. I am won604 7 March 202 2 Official Hansard Report
Bermuda House of Assembly dering if we are ready for the answers on page B - 195?
The ChairmanChairmanAs soon as the Minister get them here, he will let you know.
Mr. Jarion RichardsonOkay. Hon. Jason Hayw ard: Mr. Chairman, I am in a position to answer the—
The ChairmanChairmanGo ahead, Minister. Hon. Jason Hayward: —questions as it pertains to page B -196 that were just asked. I am still awaiting the answers from the other areas.
The ChairmanChairmanRight. Hon. Jason Hayward: When you look at the land acquisition fees, what we would have done is we would have underbudgeted in 2021/22. I think what happened during the pandemic was somewhat a phenomenon where even the real estate market did not even know how well the performance of …
Right.
Hon. Jason Hayward: When you look at the land acquisition fees, what we would have done is we would have underbudgeted in 2021/22. I think what happened during the pandemic was somewhat a phenomenon where even the real estate market did not even know how well the performance of the market was going to do during the pandemic. And what we are now seeing is a reflection of a more realistic estimate as it pertains to what our economy is actually doing. And so that is why we can see that increase, because by all measures the real estate market and the real estate industry, which is our second largest industrial sec tion in Bermuda, are performing extremely well. As it pertains to duplication of services, when we start to talk about the [INAUDIBLE ] there is a BDA legal focus group, so these agencies do work togeth-er. But the policy analysts are in EDD, so even though those other agencies may discuss and determine that legal changes are required, the EDD has the policy resources to draft that particular legislation. And so a lot of work that is done is also done on behalf of the Registrar of Companies, and so the Regis trar of Companies actually consults with the EDD and the EDD would draft proposed legislation for that group as well. And so I do not want it to be thought that these organisations are working in silos. There is actually a legal focus group where they come together to determine what the legal changes may be and the section within the EDD actually has the policy expertise to carry out those functions.
The ChairmanChairmanOkay, Mr. Pearman . . . I’m sorry, Mr. Richardson. [Laughter]
The ChairmanChairmanWell, you know how it goes, sir.
Mr. Jarion RichardsonYes, sir. Thank you, Mr. Chairman. Thank you, Minister. Hon. Jason Hayward: Mr. Chairman, one other question.
The ChairmanChairmanYes, Minister. Hon. Jason Hayward: The Honourable Member did ask a question about my responsibility as it pertains to e-commerce.
The ChairmanChairmanMm-hmm. Hon. Jason Hayward: So I just wanted to make it clear that the Electronic Transactions Act does fall underneath the responsibilities of the Ministry of Economy and Labour.
The ChairmanChairmanOkay. Thank you, Minister. Mr. Richardson, continue.
Mr. Jarion RichardsonThank you, Mr. Chairman. And thank you, Honourable Minister. My questions now move on to page B -197 which we spoke about in general before as it related to the objectives outlined on page B -194. I want to ask a bit more specific questions. Especially giv en, Mr. Chairman, …
Thank you, Mr. Chairman. And thank you, Honourable Minister. My questions now move on to page B -197 which we spoke about in general before as it related to the objectives outlined on page B -194. I want to ask a bit more specific questions. Especially giv en, Mr. Chairman, with all due respect to this format, I am more familiar more with something a little more broken out in terms of these measurements. Typically they are sequential and they add up to an objective, and the Minister alluded to the familiarit y with that process. And so I find that these ––and this is just part of me adding comment, Mr. Chairman–– would be difficult to manage and probably not as successful as other methods of managing performance. I am mindful of the entire government apparatus s eems to use this mechanism, but I would hope that sooner rather than later we would move away from it because I do see . . . I do not think this would work as well as clearer ways of managing performance. That is just my opinion there, Mr. Chairman. Okay, so if I could ask the Honourable Minister, relating to the Head 94, performance measures on page B -197, under programme 9403, analysis and policy, we have row number six, so we are past economic development and diversification strategy , past articles , and we are past the three discontinued items of privacy officers being trained and public officers being trained, and organisations certified in the B ermuda- based cybersecurity and privacy programme. And we are talking about stakeholder engagement initiatives . The Honourable Minister did speak to stakeholder engagement and initiatives offered in the comBermuda House of Assembly munity, business partnerships, strategic business initiatives, and business partner compliance. I think the Honourable Minister has already spoken to there is a level of uncertainty in planning, which is understanda-ble in this space, but we would look for [something] a little bit more concrete. Could he speak to what the five stakeholder engagement initiatives are to be completed in this budget year? Again, Mr. Chairman, the reason I am being so specific is because we are looking to spend some $7.6 million on this, so I just want to be exceptionally clear about what it is that we are getting up to. [Next row], initiatives offered in the community. On the next [three] rows, new business partner-ships, strategic business initiatives, and business partner compliance. What does that mean? And how do you reach those numbers? So the first two, they are just numbers. What are the items? Which is stakeholder engagement initiatives, initiatives offered in the community —what are those? And can he tell us what are new business partnerships, strategic business initiatives, and business partner compliance? Those are very big words. They are used a lot in all kinds of material s. I am just trying to nail down what we are talking about.
The ChairmanChairmanBefore you answer, Minister, MP Foggo is going to take the Chair for about five minutes for me. I just got to do something. [Ms. Lovitta F. Foggo, Chairman]
The ChairmanChairmanYes, I have it, Mr. Chairman, thank you. Continue, Member Jarion Richardson, please.
Mr. Jarion RichardsonThank you, Madam Chairman. Last year I butchered your title, so let’s hope I can get it better this year. Yes, I was asking the Honourable Minister if he could define, under the performance measurements, on page B -197, what i s meant by new business partnerships, what is meant …
Thank you, Madam Chairman. Last year I butchered your title, so let’s hope I can get it better this year. Yes, I was asking the Honourable Minister if he could define, under the performance measurements, on page B -197, what i s meant by new business partnerships, what is meant by strategic business initiatives, and what is meant by business partner compliance? And if he could tell us what the five engagement initiatives are and the seven initiatives offered in the community, what those are. Thank you,
Madam Chairman.
The ChairmanChairmanMinister, you have the floor. Hon. Jason Hayward: Thank you. I think that the five is actually a target to achieve. And so let me just give a practical example of a stakeholder or research engagement initiative. For example, the Government would have had in its Throne Speech that it …
Minister, you have the floor.
Hon. Jason Hayward: Thank you. I think that the five is actually a target to achieve. And so let me just give a practical example of a stakeholder or research engagement initiative. For example, the Government would have had in its Throne Speech that it wanted to move forward with a more cost -effective way in terms of growing food.. And so now we have the idea of vertical farming. The EDD would have been responsible for having conversations with potential partners as it pertains to the project. Even though that project is not led by my Ministry, the EDD would have had direct involvement. If the EDD has direct involvement, and it leads to some further progress as it pertai ns to the potential to start up a company in Bermuda, I think that underneath the stakeholder engagement initiative we can log that down as one. In terms of the idea about medical tourism, we floated the idea in terms of medical tourism and we are trying to advance that project as well. Well, EDD will be involved with that process. As that materialises, I think that the EDD can gauge that as being another project. So there are multiple projects. Some are not at a mature enough stage where I can speak to t hem publicly because a lot of these things are in the, what I consider to be the brainstorming phase, where we are still trying to understand whether or not some of these ideas would be a fit in Bermuda. But that is the type of metrics that we are trying t o capture. In terms of the community, you would note that we have Tech Week and Cybersecurity initiatives for our young kids. And I spoke about those. But those would be . . . when we talk about community engagement, I also talk about the work that we ar e doing as it pertains to working for our seniors and ensuring that they are tech savvy as well. So those are the sorts of initiatives that we are looking at when we start to talk about community engagement. So, at this point, some of those are annual initiatives and someone may find that there are new initiatives. But I believe we are on target to do five of those a year and we want to be on target to have at least five concrete engagements a year, where it leads to some type of new businesses starting up and developing in Bermuda.
The ChairmanChairmanYes. You know what? I had my microphone off, so I thought I was telling you, Member, are there any other questions? Please continue, Member.
Mr. Jarion RichardsonThank you, Madam Chairman. Just so you know, your camera is not on, so we wouldn’t be able to say, Oh, you are muted. Just so you know.
The ChairmanChairmanYes, I saw you would be talking, and that is why I just jumped in and spoke.
Mr. Jari on RichardsonGot it. Thank you, Madam Chairman. And I thank the Honourable Minister for his answers. 606 7 March 202 2 Official Hansard Report Bermuda House of Assembly Mindful that we are still waiting on questions on page B -195, for subjective analysis of current account estimates . And the next …
Got it. Thank you, Madam Chairman. And I thank the Honourable Minister for his answers. 606 7 March 202 2 Official Hansard Report
Bermuda House of Assembly Mindful that we are still waiting on questions on page B -195, for subjective analysis of current account estimates . And the next question under the performance measures will probably relate to it, but it is unavoidable. Under Head 94, Economic Development Department, performance measures on page B -197, we have two programmes: Programme 9404, research and legislative support, and programme 9405, concierge and engagement with the performance measurements. My question sort of goes back to what I am waiting on with page B -195, as it relates to the general summary of expenditure. For example, under [programme] 9405, where we are not seeing expenses— Hon. Jason Hayward: Madam Chairman.
The ChairmanChairmanYes, Minister. Hon. Jason Hayward: I do have some answers for the questions he asked and that may enable him to structure his supplementary questions a bit better.
The ChairmanChairmanSure. Member, will you yield to the Minister so he can give you some more answers?
The ChairmanChairmanYes. Minister, continue. Hon. Jason Hayward: So, page B -195, as it pertains to advertising. The advertising consists of the annua l tech events which I just spoke about earlier. Also, ad-vertising of promotion, this [includes] membership to overseas articles and local and international publica-tions. And so to get into …
Yes. Minister, continue.
Hon. Jason Hayward: So, page B -195, as it pertains to advertising. The advertising consists of the annua l tech events which I just spoke about earlier. Also, ad-vertising of promotion, this [includes] membership to overseas articles and local and international publica-tions. And so to get into those business publications, there are some advertising funds assoc iated with that number. And that is the majority of the $270,000. And this will be a separate level of advertising that the Bermuda Business Development Agency ac-tually does. You did ask about professional service, the $259,000, and I can give you that. Part of it is the consultant fees, which would be $175,000; educational services, which would be $76,000: and board and committee fees, which would be $7,500. As it pertains to rentals, the rentals can be broken up into two sections. That rental as it is r eferred to is the building rentals, that is $83,000 annually. And the remainder of the rentals would be office equipment which is actually rented. Also, any consultants, and as we know at this point in time, KPMG is in an engagement up until March 31. And no further engagement is being [planned] for the next fiscal period. But obviously if we want to move forward with further consulting, then we have to ensure that we have appropriate funds budgeted for that particular work. What I would say in terms of rentals, the expenses as it pertains to rentals has gone up because EDD will be moving into a new space. And currently the rent of the EDD is being paid by the Cabinet [Office]. So it would not be reflected under this, the previ-ous fees would not be reflected under this Ministry’s budget.
The ChairmanChairmanMember, is there any further from you?
Mr. Jarion RichardsonYes, Madam Chairman. Not a question, but with any luck a valuable critique. I suppose that will be determined by the Hon-ourable Minister. The $270,000 on advertising, certainly the local advertising is understandable, but the overseas advertising (again, just my contribution) strikes me as an overlap with the BDA. So …
Yes, Madam Chairman. Not a question, but with any luck a valuable critique. I suppose that will be determined by the Hon-ourable Minister. The $270,000 on advertising, certainly the local advertising is understandable, but the overseas advertising (again, just my contribution) strikes me as an overlap with the BDA. So I am not sure what cost savings could be made there. Just my contribution on that point. Thank you, Madam Chairman. Thank you, Honourable Minister. So that takes me past page B -197 and I do have some questions as it relates to page B -195, subjective analysis of current account estimates for the professional services. Madam Chairman, may I continue?
Mr. Jarion RichardsonThank you. I have spoken before that we have the consultant who will be providing the project management office and at the same time this department will coordinate and monitor the Economic Recovery Plan. Honourable Minister, as it relates to the spend of $259,000, how will this work in practice …
Thank you. I have spoken before that we have the consultant who will be providing the project management office and at the same time this department will coordinate and monitor the Economic Recovery Plan. Honourable Minister, as it relates to the spend of $259,000, how will this work in practice given that there appears to be that we are spending money on a consultant to create a project management of fice and we are spending money on a department to oversee and monitor. Could the Honourable Minister elucidate as to how that would work in practice? It looks like there are two people doing one job.
The ChairmanChairmanMinister, you have the floor. Hon. Jaso n Hayward: They are actually two separate functions. Before KPMG was actually engaged, what we would have actually done was work as it pertains to the Economic Recovery Plan blueprint. That Economic Recovery Plan blueprint had a number of distinctly differ ent functions …
Minister, you have the floor.
Hon. Jaso n Hayward: They are actually two separate functions. Before KPMG was actually engaged, what we would have actually done was work as it pertains to the Economic Recovery Plan blueprint. That Economic Recovery Plan blueprint had a number of distinctly differ ent functions for each group. And so if I can just outline how the reporting was designed in terms of the Economic Recovery Plan, the reporting, it may give a better understanding as to why we have a project management office but also the department that w ill be responsible for some level of coordination as it pertains to the priority areas.
Bermuda House of Assembly Madam Chairman, what would happen is, underneath the Government structure, you would have had the Department of Economic Development that the other departments who hav e ERP initiatives actually report up to. And so they will be responsible for the monitoring of the performance of the plan at a very high level, in addition to having some key initiatives fall within the department. The project management office then asses ses individual projects. And so, for example, you may have a project that needs a level of expertise, it is not for the Economic Development De-partment to provide that expertise. It is for the project management office to source the proper support so the project can be effectively executed. So it is operating at two different levels. One is at a monitoring level and one is providing strategic support. So we set up the project management office with the understanding that some of the ministries do not have the capacity to effectively implement some of the initiatives on their own, as it pertains to ERP items. And the project management office will be the office that actually sources the necessary resources and assesses the project by ability and provides tha t strategic support. And so that is why the two will differ, but both will report to the Ministry of Economy and Labour.
The ChairmanChairmanMinister, MP Burgess will now resume his seat. Gentlemen, you may continue.
Mr. Jarion RichardsonThank you, Madam Chairman. Thank you, Mr. Chairman. And thank you, Hon-ourable Minister. [Hon. Derrick V. Burgess, Sr., Chairman]
Mr. Jarion RichardsonWould the Honourable Minister . . . my questions are moving on the grant on page C-19. So I do not w ant to take us away if anyone else has a question as it relates to pages B -194 through B - 197. Mr. Chairman, my intention is to …
The ChairmanChairmanContinue. They can come after you. You are the Shadow, so we would like to hear you first.
Mr. Jarion RichardsonThank you, sir. The Honourable Minister gave a detailed brief as it related to the Bermuda Business Development Agency and the BEDC operat ional grant, on page C - 19. And I have some questions as it relates to the BEDC, business unit 7000. I note, or rather it is …
Thank you, sir. The Honourable Minister gave a detailed brief as it related to the Bermuda Business Development Agency and the BEDC operat ional grant, on page C - 19. And I have some questions as it relates to the BEDC, business unit 7000. I note, or rather it is in public that the BEDC has had some problems, or rather has not presented audited financial statements. And we are going to give them a grant . . . or they are requesting a grant of $2.2 million. Given that they are going to get $2.2 million, but we have not yet been satisfied [concerning] the quality of their previous spends, could the Honourable Minister speak to how we are going t o deal with that? Are they going to catch up on these audited financial statements? When are we going to see them? I am just trying to make sure that the spend is not throwing money down a hole that, you know, they are not reporting out. They are not saying where their spends are [going]. That is one question. I am happy to sort of keep going or to leave it to the Honourable Minister, Mr. Chairman, to reply to that. I know that can be quite a meal.
Hon. Jason Hayward: I can reply to that, Mr. Chairman.
[Pause]
Hon. Jason Hayward: Mr. Chairman?
The ChairmanChairmanYes, go ahead. I am sorry for that. Hon. Jason Hayward: Okay. I think we have a common desire to see that the audited financial statements of any government quango is produced in a timely manner. That should not prevent that quango from receiving additional funds. At this point there …
Yes, go ahead. I am sorry for that. Hon. Jason Hayward: Okay. I think we have a common desire to see that the audited financial statements of any government quango is produced in a timely manner. That should not prevent that quango from receiving additional funds. At this point there is no indication that, you know, there has been a negligent or malice use of the funds, at this particular time. I know that the Bermuda Economic Development Department, when other departments have shut down during the pandemic, played a critical role in providing support to our busi-ness communities and our small businesses who needed funds to have their doors remain open. What I would say is that I will endeavour to get a full briefing as to what the status is of the out-dated reporting and ensure that I communicate what the plan is moving forward. I do not know to what extent the [ INAUDIBLE] as it pertains to audits, but that is certainly something that I will endeavo ur to look into. But the money they are receiving, you would note that it does not cover all of their operational ex-penses. They do have funds that they will receive from the activities that they carry out as it pertains to revenue that they receive from their activities. In addition to that, they have the ongoing funding from the grant money that the Ministry of Finance provided them to provide the grants to the small and mediumsized businesses for relief. And so they use a mixture of relief funding vers us the grant funding and the revenue that they receive to fund their operations.
Mr. Jarion RichardsonThank you, Mr. Chairman. Thank you, Honourable Minister. 608 7 March 202 2 Official Hansard Report Bermuda House of Assembly My contribution on that point is I definitely agree that the good works . . . well, what I am saying is, we are on the same page. The good …
Thank you, Mr. Chairman. Thank you, Honourable Minister. 608 7 March 202 2 Official Hansard Report
Bermuda House of Assembly My contribution on that point is I definitely agree that the good works . . . well, what I am saying is, we are on the same page. The good works should not be stopped. And we are on the same page that financial statements should be audited pursuant to the requirements imposed in legislation.
The ChairmanChairmanWell, let me say this here, Mr. Richardson. That is not a requirement. When we come to do budget, there are many Ministries that have not had an audit. That does not stop them from getting the funds. So it common practice in government that audits are late.
Mr. Jarion RichardsonThank you, Mr. Chairman, for that. Like I said, I am new to the government appa-ratus, so I do want to make sure I am learning. My contribution would also add that when I went to look up the BEDC, not the audited financial statements, but I went to look …
Thank you, Mr. Chairman, for that. Like I said, I am new to the government appa-ratus, so I do want to make sure I am learning. My contribution would also add that when I went to look up the BEDC, not the audited financial statements, but I went to look up the annual report, which is just a report of activities that have taken place, the last one that was available was 2017/18. And that does make scrutiny, from an outside point of view, as it relates to business un it 7000, that much more difficult because . . . that is all . . . I am not fully equipped to bring these questions up. So that is my contribution, Mr. Chairman. It would be helpful to have a report on their activities since they are getting more money.
The ChairmanChairmanThat is another meeting. You have the audit committee within Parliament.
Mr. Jarion RichardsonThe Honourable Minister, again, going back to [business unit] 7000, BEDC op-erational grant, I do have questions. There are within the ERP, which does fall under the Head 94 oversight responsibility, the BEDC are [INAUDIBLE ] own certain initiatives, including creating an online small to medi-um enterprise marketplace, construct residential …
The Honourable Minister, again, going back to [business unit] 7000, BEDC op-erational grant, I do have questions. There are within the ERP, which does fall under the Head 94 oversight responsibility, the BEDC are [INAUDIBLE ] own certain initiatives, including creating an online small to medi-um enterprise marketplace, construct residential de-velopments, continue to provide support, complete work to establish an uptown development authority in North East Hamilton, and create an Economic Empowerment Zone in South East Hamilton. The Minister’s brief did speak to those items, but I would like to put a further question to him from his brief because there were monies mentioned that I don’t see here. So my question would be, Where do I find those monies? May I continue, Mr. Chairman?
Mr. Jarion RichardsonThank you. The Honourable Minister mentioned that capital works for EZZ, he mentioned for uptown authority, but the funds that have been mentioned is . . . Honourable Minister, I am looking for your clarification on this. We set aside $3.2 million for major ca pital projects and ERP, and …
Thank you. The Honourable Minister mentioned that capital works for EZZ, he mentioned for uptown authority, but the funds that have been mentioned is . . . Honourable Minister, I am looking for your clarification on this. We set aside $3.2 million for major ca pital projects and ERP, and then we spoke to vertical farming, developing residential . . . and this is all within the BEDC. And then you said there is $1.5 million earmarked for Shoreside fishing, which again, is under BEDC and your oversight, under Head 94. Could you just clarify . . . that money is not coming from Head 94?
Hon. Jason Hayward: And so the way in which it works is, this quango receives a grant. The grant is in the amount of $2.2 [million], roughly. However, the operating budget for the de partment is roughly around $5.6 million. And so as I articulated, there is funding that comes from revenue generated from services. They also have the grants that were provided by the Ministry of Finance in the 2019 [budget] at the onset of the pandemic th at continued to go to providing support for their activities as well. And so the grant that we see in the [Budget] Book is only a portion of the overall expenditure requirement for any fiscal period. Mr. Chairman, if I may, in terms of the annual report.
The ChairmanChairmanYes. Hon. Jason Hayward: I have been advised that the 2020/21 annual report should be completed by the end of May 2022.
The ChairmanChairmanThank you, Minister. Hon. Jason Hayward: I have also been advised that work is being undertaken to cat ch up on the orders.
Mr. Jarion RichardsonThank you, Mr. Chairman. Thank you, Honourable Minister. Those are all the questions that I have . . . sorry. One more.
Mr. Jarion RichardsonI won’t let you go, Honourable Minister. You had mentioned a couple points in your ministerial brief on the budget that I just want to— [Inaudible interjections]
Mr. Jarion RichardsonThat you had mentioned but I did not see anywhere in the Budget Book, so I was wondering what are they and how are we going to pay for them? Bermuda House of Assembly You had mentioned under the FinTech business unit, which is 9405, that we are developing or …
That you had mentioned but I did not see anywhere in the Budget Book, so I was wondering what are they and how are we going to pay for them?
Bermuda House of Assembly You had mentioned under the FinTech business unit, which is 9405, that we are developing or we are assisting with developing a US dollar to Bermuda dollar stablecoin. That is not in the performance measurements. So my question is, What is that? Mr. Chairman, I am happy to sort of go . . . I have a list of things I noted from his brief. And I can ask them all, which might give an opportunity to collect his materials. Would you be fine with me asking all the questions at once, Mr. Chairman?
The ChairmanChairmanWell, I prefer you stick with the Book. [Laughter]
Mr. Jarion RichardsonMr. Chairman, I would like to but, yo u know, he mentioned something and I didn’t see it.
The ChairmanChairmanRight. Well, you can ask the question, but everybody follows the Book.
Mr. Jarion RichardsonI could ask the question, but I certainly do not want to be adversarial. It is sort of, Why i s that mentioned but not in the Book? Or something like that.
The ChairmanChairmanOkay. That is a fair question for the Minister to answer. Hon. Jason Hayward: Mr. Chairman, how the budget is actually laid out, I believe that the majority of the funding is captured under . . . either human resources or salaries. So the majority of the monies will be …
Okay. That is a fair question for the Minister to answer. Hon. Jason Hayward: Mr. Chairman, how the budget is actually laid out, I believe that the majority of the funding is captured under . . . either human resources or salaries. So the majority of the monies will be captured under salaries. As it pertains to those particular line items, if you see how it was drafted, everything was lumped into general administration. So the re is a slew of zeros in the Book, as it pertains to corporate services right down to intellectu-al property. I believe it is done based off . . . the change to this department took place, or actually be-fore the Budget [Book] was printed. And I think for ease I think everything was just lumped into administration, so I believe it may be an anomaly for this year why you don’t see a general breakout in each of those particular items.
Mr. Richardson.
Mr. Jarion RichardsonThank you, Honourable Minister. Thank you, Mr. Chairman, Mr. Chairman, I would ask the Honourable Minister why in the performance measurements, 9403, 9404, 9405, there is no mention of the developing and education and training strategy plan, which was mentioned as it related to the business services division of Head …
Thank you, Honourable Minister. Thank you, Mr. Chairman, Mr. Chairman, I would ask the Honourable Minister why in the performance measurements, 9403, 9404, 9405, there is no mention of the developing and education and training strategy plan, which was mentioned as it related to the business services division of Head 94. I do not see any mention of that in the Book. Would the Honourable Minister be able to tell us how much it costs, who is going to do it?
Hon. Jason Hayward: So, as I mentioned in the brief, the training is done in partnership with other organisations. It is not specified which of the organisations, but it just has that ongoing training as being part of the initiatives of the department. But I would say that is that performance measures are not— [Inaudible interjections]
Hon. Jason Hayward: —alignment with the areas because if you look at programme 9404 which is research and legislative support, underneath page B - 195, [on page B -197]. I think that this gap that I —
[Inaudible interjections]
The ChairmanChairmanOne second. Member De Silva, you microphone is on. Can you mute your microphone, MP De Silva? Go ahead, Minister. Hon. Jason Hayward: So what I believe you may be looking for is that level of synergy between the two and it does not exist. So I cannot explain my …
One second. Member De Silva, you microphone is on. Can you mute your microphone, MP De Silva? Go ahead, Minister.
Hon. Jason Hayward: So what I believe you may be looking for is that level of synergy between the two and it does not exist. So I cannot explain my way out of that.
[Pause]
Hon. Jason Hayward: Member, your microphone is muted.
The ChairmanChairmanMr. Richardson, your microphone is muted.
Mr. Jarion RichardsonThank you, Mr. Chairman, and thank you, Honourable Minister. And yes, just thank you for those responses. And my contribution and my critique is just that it goes back to that point of we are just not . . . there is some overlap here. It is probably due to …
Thank you, Mr. Chairman, and thank you, Honourable Minister. And yes, just thank you for those responses. And my contribution and my critique is just that it goes back to that point of we are just not . . . there is some overlap here. It is probably due to the anomaly that the Honourable Minister spoke to, but my cont ribution would definitely be that as long as I am in the House, I am going to keep bringing it up so . . . I look forward to working with you in the future to make sure that all the bits align so that we get that value for money.
The ChairmanChairmanI am sure t he Minister will give you whatever information that you require. I am positive about that.
Mr. Jarion RichardsonThank you, Mr. Chairman. Thank you, Honourable Minister. I have no further questions as it relates to Head 94. 610 7 March 202 2 Official Hansard Report Bermuda House of Assembly The Chairman: Are there any further speakers on Head 94? There appear to be none. Minister. Hon. Jason Hayward: …
Thank you, Mr. Chairman. Thank you, Honourable Minister. I have no further questions as it relates to Head 94. 610 7 March 202 2 Official Hansard Report
Bermuda House of Assembly The Chairman: Are there any further speakers on Head 94? There appear to be none. Minister.
Hon. Jason Hayward: Mr. Chairman, I move that Head 94 be approved as printed.
The ChairmanChairmanIt has been moved that Head 94 be approved as printed. Are there any objections to that? There appear to be none. Approved. [Motion carried: The Ministry of Economy and Labour , Head 94, was approved and stands part of the Estimates of Revenue and Expenditure for the year 2022 …
It has been moved that Head 94 be approved as printed. Are there any objections to that? There appear to be none. Approved. [Motion carried: The Ministry of Economy and Labour , Head 94, was approved and stands part of the Estimates of Revenue and Expenditure for the year 2022 /23.]
Hon. Jason Hayward: Mr. Chairman, I move that we rise and report progress and ask for leave to sit again.
The ChairmanChairmanIt has been moved that the Committee rise and report progress and ask to sit again. Are there any objections to that? There appear to be none. [Motion carried: The Committee of Supply agreed to rise and report progress, and sought leave to sit again.]
The ChairmanChairmanMr. Speaker. House resumed at 6:4 3 pm [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] REPORT OF COMMITTEE ESTIMATES OF REVENUE AND EXPENDITURE FOR THE YEAR 202 2/23
The SpeakerThe SpeakerGood evening, Members. Members, the Committee has moved to rise and report progress . Any objections to that? There are none. That brings us to the . . . that was the only Order on the Order Paper that was to be done today. All other matters are being carried …
The SpeakerThe SpeakerMembers . . . is the Premier or Deputy Premier . . . would someone like to move the motion for adjournment? [No audible response.]
The SpeakerThe SpeakerMinister, Hayward, would you like to move the motion for adjournment. ADJOURNMENT Hon. Jason Hayward: I move that the House do now adjourn.
The SpeakerThe SpeakerThe Minister has moved that the House do now adjourn. Would any Member obj ect to that? No. Does any Member wish to speak to that? No Member wishes to speak to that. The House will stand adjourned now until Wednesday morning, 9 March, at 10:00 am. Members, we appreciate …
The Minister has moved that the House do now adjourn. Would any Member obj ect to that? No. Does any Member wish to speak to that? No Member wishes to speak to that. The House will stand adjourned now until Wednesday morning, 9 March, at 10:00 am. Members, we appreciate your participation. Be safe and well and we look forward to a continuation of the annual debate on Wednesday morning at 10:00 am. Members, the House now stands adjourned.
[At 6:45 pm, the House stood adjourned until 10:00 am, Wednesday, 9 March 2022.]