March 29, 2021

Thank you, Senator Wight.
I think we have a difference with regard to
timing. It is roughly 12:10 right now. And I think it’s fair
in view of all that Minister Peets has done this mor ning, to ask if he would like to proceed straight into Legal Affairs and Constitutional Reform, or if he would
like to begin the lunch break now.
Minister Peets, I am happy to agree to whatever you would like.

Good after noon , everyone. Senators ,
we are in Committee of the whole [Senate] for further
consideration of the Appropriation Act 2021 together with the Estimates of Revenue and Expenditure for
the fiscal year 2021/22.
This afternoon the Ministry under consider ation is the Ministry of Legal Affairs and Constitutional
Reform. The Heads for debate under this Ministry are
Head 87, which is the Ministry of Legal Affairs and Constitutional Reform Headquarters, which can be
found on page B -83; and Head 88, which is National
Drug Control, and that can be found on page B -107.
Two hours are allocated for the debate on these
Heads.
The Senate Minister in charge is Minister the
Honourable Dr. Ernest G. V. Peets, Government
Leader in the Senate, Minister of Youth, Culture and
Sport and spokesman on Legal Affairs.
It is now 1:41 pm and we will begin the debate. Senator Peets, Minister Peets, how do you wish to proceed?

Thank you, Madam
Chairman.
Madam Chairman, the mi ssion statement for
the department objectives for the Ministry of Legal Affairs and Constitutional Reform Headquarters begin
on page B -83 of the Estimate Book. The mission
statement is, if I may proceed to read, to facilitate fair
and equitable administrat ion and access to justice by
delivering effective legal services and enhancing pol icies and legislation that preserve the rule of law and affirm social justice progress and constitutional r enewal.

Department Objectives

Madam Chairman,
the Ministry Headquarters accepts that its offices will
be more innovative, responsible, and continuously hard- working as a result of the needed responses due
to the brunt of the COVID -19 pandemic.
The objectives of this Ministry Headquarter s
are: to advance Government policy initiatives under the direction of the Minister of Legal Affairs and Constitutional Reform; additionally, to ensure that the
Government’s legislative framework is updated and
current with pol icy directives; to effect synergies
amongst Ministry departments to ensure that overall
policy objectives are met; to implement and monitor
the targeted financial sanctions regime; and to ensure
Government’s compliance with UN and UK obligations
and to mitigate any associated risk.

Current Expenditure

Madam Chairman,
the Ministry’s budget commences on page B -82 of the
approved Estimates of Revenue and Expenditure for
the year 2021/22, also known as our Budget Book. A
budget ceiling of $31,956,000 was allocated to the
entire Ministry for 2021/22 fiscal year. Due to the fiscal
constraints imposed largely by the ongoing pandemic, this figure represents $1.739 million, or a 5 per cent
decrease from the current 2021/22 fiscal year. It was necessary to und ertake a comprehensive analysis of Ministry expenditures before achie ving this figure. A balance had to be obtained between
optimising spending limits without overly compromi sing the efficient delivery of service and programmes.
Madam Chairman, of the all ocation to the Mi nistry’s overall, [the] particular allocations are as follows:
• The Ministry of Legal Affairs and Constitutional Reform Headquarters, $5.802 million;
• Judicial Department —$8.80 million;
• Attorney General’s Chambers —$5,437,000;
• Department of Court Services —$4,656,000;
• Department of Public Prosecutions —
$2,961,000;
• Department of National Drug Control —
$4,292,000.

Revenue

Madam Chairman,
as it relates [to] the Ministry’s budget, I begin with a
brief synopsis of it s revenue stream. The only depar tment under the Ministry’s portfolio whose mandate
entails directly generating revenue is through the J udicial Department. Currently this revenue stream is projected to yield $5,422,000 during the 2021/22
budget cycle. This amounts to $591,000 less than
2020/21 original estimates. A 10 per cent shortfall is
mainly projected from the anticipated decrease follo wing estates of deceased individuals and the impact of COVID -19 pandemic which has drastically slowed the
judicial proc ess.

Current Expenditure Chart

If I could provide
some information here. I will first start with Ministry Headquarters. This is a 2020/21 versus a 2021/22.
The original estimate for the 2020/21 was $6,735,000.
The estimat e for the 2021/22 is $5,802,000. That is a
decrease of $933,000 which represents a 14 per cent
decrease.
Madam Chairman, a total of $5,802,000 has
been allocated to Headquarters. This represents a decrease, as I have mentioned, of 14 per cent, repr esented by $933,000 from our original estimates for the
previous year.
Madam Chairman, the Ministry of Legal A ffairs and Constitutional Reform Headquarters is furthermore functionally subdivided into six fiscally ident ifiable programmes as follows:
• 97000— Adminis tration;
• 97010—Financial Intelligence Agency ;
• 97030—Legal Aid;
• 97070—Justice Protection Programme;
• 97080—Financial Sanctions Implementation
Unit; and lastly


Bermuda Senate • 97090— Mirrors Programme.
I will now proceed to address them individua lly as follows:

Administrati on—97000

The original est imate for the previous fiscal year is $1.37 million. The
estimate for the year 2021/22 is [$1.148] million,
which is a decrease of $189,000, or 14 per cent.
This programme provides the administrat ive
costs associated with the Ministry Headquarters to which $1,148,000 has been allocated. This represents a decrease of 14 per cent from the original estimate.
The decrease is mainly due to the grant of $150,000 that has been transferred under the new Mi nistry of
Social Development and Seniors. The remaining de-crease is mainly due to reduced and only crucial travel costs budgeted as a result of the pandemic.
Throughout the fiscal year, in addition to sal aries, $52,000 has been spent on telephone expens es.
Out of the consultancy vote, collectively $174,000 was
spent on litigation guardian, a political consultant, and
a law student consultant at Legal Aid. [There was] $113,000 spent on the grant to the Centre Against
Abuse, and $13,000 was spent on office supplies. A lso included in the Administration cost centre are sal aries and related costs for seven Ministry Headquarters
staff. These include an administrative assistant, an
executive assistant, a policy analyst, two pupils and the Minist ry comptroller. T he remaining post is being
redefined to provide policy and administrative services to the Law Reform Commission.
Madam Chairman, Ministry Headquarters i ntends to continue to focus on the codification and the
efficient delivery of Ministry policy initiati ves. There
are a total of six policy documents during the past fi scal year. Our Ministry’s most recent commitments i nclude: formulating policies to best encapsulate the
vital role played in realising the medicinal and responsible adult uses of cannabis through a structured and
regulated cannabis licensing framework which pr ovides equitable economic benefit to the Bermuda pub-lic. Also crucial and in alignment with this policy is the
establishment of the administrative infrastructure to
facilitate the expunct ion of criminal records of persons
previously convicted for possession of small amounts
(seven grams of cannabis) before the decriminalis ation law was enacted. This was operationalised on
12 March 2021.
Madam Chairman, the convictions for small
amounts of cannabis has plagued many local res idents for years and this has impeded their emplo yment, has impeded their educational as well as travel
endeavours. Moving from limited decriminalisation of cannabis to ending unnecessary continued criminal isation and la ying the framework for a regulated cannabis industry continues apace despite the recent le g-islative hurdles pertaining to the Cannabis Licensing
Act 2021.
The Ministry’s expanded scope for cannabis
reforms as aligned with the Ministry’s mandate of drug
prevention and law reform broadly continues to evolve
as the progress to effective implementation of a regulated cannabis licensing framework for Bermuda takes
shape. Thus, work will continue in this 2021/22 budget
year to advance from limited decriminalisation of cannabis to establishing a robust regulatory licensing r egime that will create a comprehensive framework e mbracing the science of cannabis benefit s for therape utic and medicinal purposes and to capitalise on likely
economic benefits for the regulat ed cannabis industry.
This will be achieved by allocating appropriate r esources to redress any perceived shortfalls with the
Cannabis Licensing Act 2021 and continuing work
across Government to realign the delivery of social,
health, educational, and treat ment services tackling
the prevention and treatment of substance abuse associated with cannabis.
I will now turn our attention to the Legal Aid
Office.

Legal Aid —97030

For the expenditure,
this will be 2020/21 versus the 2021/22 numbers. The
original estimate of $1.851 [million], the current est imate $1.68 million which is a decrease of $171,000,
or 9 per cent.
Madam Chairman, the purpose of the Legal
Aid Office is to ensure that the legal advice and repr esentation is readily available to those who need it
most, and who, because of limited financial means,
would otherwise be unable to secure access to justice.
Furthermore, the Mission Statement of the
Office is to provide high quality legal representation to
those who qu alify for assistance under the Legal Aid
Act 1980. The Office fulfils this role by providing cl ients who qualify for the scheme with accessible, pr ofessional legal services in a timely manner.
Madam Chairman, the Legal Aid’s scheme is
administered by the Legal Aid Committee under the authority of the Legal Aid Act 1980. For 2021/2 2, its
budget allocation is $1,680,000. As mentioned, t his is
a 9 per cent, or $171,000, decrease from the original
number from 2020/21 original estimate. The decrease
in the budgetary needs is primarily attribut ed to the
salaries being prorated for a 10 per cent cut up until
July 2021.
In addition to the two pupil PIDs that were
under salaries in the prior year , [these] have now
been reallocated to the Ministry Headquarters budge t
portfolio. Also, there was a decrease in legal services
as we expect costs to decrease for outside counsel
with the hiring of a full complement of permanent in -
366 29 March 2021 Official Hansard Report

Bermuda Senate house counsel which is expected to be completed by
June 2021.
Of the 2021/22 allocation, $831,000, or 50 per
cent, represents salaries for the administrative and
managerial staff. [The amount of] $610,000, or 36 per
cent, represents costs allocated for legal services.
The remaining $239,000, or 14 per cent, represents
administrative expenses incl usive of committee fees
and professional indemnity insurance required in r espect of annual legal practising certificates for in -
house counsel for the effective operations of the Legal
Aid Office. For the current fiscal year, in addition to
salaries expenses incurred to date were legal fees of
$394,000; telephone expenses of $4,000; $259,000
was spent on consultants filling the role of legal coun-sel posts; $6,000 was spent on board and committee
fees; $96,000 was spent on electricity and rent;
$9,700 was spent on cleaning; $15,000 has been
spent on office supplies and printing.
Madam Chairman, the Legal Aid Office has
focused primarily on increased operational control
over client litigation as well as administration efficiency. Reduction of expenditure has been a primary o bjective but not at the expense of a reduction in the
quality of legal services.
The largest area of expenditure, with the exception of salaries, remains legal fees , which is in
keeping with historical trends. The office was able to
contai n spending within its budget for 202/21 through
prudent management, coupled with the cost reduction
and budget control initiatives outlined in the previous
budget. The transition to the reformed legal aid model
commenced in June 2018 and continues underway .
In keeping with the objective of decreasing
previously outsourced work, recruitment moved forward in 2020 and to date two out of three legal cou nsel posts have been filled. Recruitment for the third post, that of junior legal counsel, is currently underway. Although the full permanent staff is not yet in
place, contrasting fees paid for external legal services
from the period 1 June 2019 to 31 December 2019
which amounted to $996,000.
Budget expenditure for legal fees paid to external
counsel for the period 1 January to 31 December 2020 was the sum of $639,065.51. This figure is also
reflective of the decreased number of cases that pr ogressed through the courts as a result of COVID -19
restrictions. It is anticipated, however, that costs will continue to trend downward in tandem with full impl ementation of the reformed model. The reformed model
has derived cost savings thus far and will continue as
a full staffing complement is secured. A demonstration of the costs over the past years, for example, is as
follows:
• years ending 2014 and 2015, $3,747,450.09;
• year ending 2016, $2,436,432.49;
• year ending 2017, $2,138,729.99;
• year ending 2018, $1,932,956.14;
• [year ending] 2019, $1,650,046.97; • [year ending] 2020, $1,111,528.32.
Madam Chairman, I now move to Legal Services.

Legal Services

Madam Chairman,
between the period 1
st April 2020 and 31st January
2021 the Legal Aid Office managed a combined total
of 114 matters . The breakdown: 10 domestic matters ;
7 matrimonial matters ; 30 civil matters ; and 67 crim inal matters.
The Legal Aid Office continues to maintain a
general roster of counsel from private practice, who
provide legal services to persons granted Legal Aid Certificates in instances where there may be a perceived conflict of interest. For the period of 1
st April
2020 to 31st January 2021, 80 counsel including two
Queen’s Counsel, representing 40 law firms, were
listed on the Legal Aid roster.
The current initiative to reform the Legal Aid
service delivery model will:
• ensure sustainability;
• provide employment and training opportunities
for Bermudian counsel;
• improve succession planning; and
• significantly reduce expenditure on legal fees, which has historically been an area of budget
overspend.
The Legal Aid Office continues to be a major
stakeholder in the specialist court programmes, such
as Drug Treatment Court and Mental Health Treatment Court, providing defence counsel for these courts. In addition to the traditional rosters of counsel
participating in the Legal Aid and Duty Counsel
schemes managed and maintained by this Office.
Small rosters are also in place for these specialist
courts. Madam Chairman, if in- house counsel are not
available, private practice counsel who are competent in these areas will be utilised.
The Legal Aid Office is currently collaborating
with the Mid- Atlantic Wellness Institute, the Depar tment of Court Services and the Bermuda Police [Service] on an initiative aimed at providing pathways for
diversion of persons with mental health challenges who find themselves involved in the criminal justice
system. A three- month pilot project aimed at providing
a trained liaison and diversion officer who can offer
mental health support including advice, screenings
and assessment, and treatment is scheduled t o commence in March 2021.

Output Measures

Madam Chairman, I
bring our attention to O utput Measures . The Legal Aid
Office retains the ability to process applications for
legal aid certificates within 14 working days. Howe ver,
achieving this objective is dependent on whether apBermuda Senate plicants have submitted the required information in a
timely manner. The Legal Aid Office continues to pr ocess applications for temporary certificates, commonly
known as emergency certificates, within three working
days. This is feasible once all relevant financial information is submitted at the time of the application, and
applications for temporary certificates can be approved by the senior Legal Aid counsel, provided that
they are capped below a certain monetary value and
are ratified by the Committee within 28 days.

Staff

Madam Chairman,
in regard to Staff, at present, the Legal Aid Office is
comprised of three administrative posts and five legal
posts. The three administrative posts are the office
manager, accounts officer , and an administrative assistant. The five legal posts are the senior legal aid
counsel, two legal aid counsel, one junior legal aid
counsel and one paralegal. These four counsels will
attend court and represent clients at a reduced cost to
the public purse since they will be on salary as opposed to drawing hourly fee rates. We expect to see
appreciable savings using this model. In the coming
months there will be two pupils on rotation from within
the Ministry pupillage scheme.

Training and Development

The Legal Aid Office
continues to focus not only on present service prov ision, but also development of the quality of the adv ocates who appear in court on behalf of their clients. A
main focus is also the movement towards a paperless
office in keeping with the overall Government objec-tive to be paperless by 2023. To this end, training to
include both new and existing staff on the current
case management and scheduling software currently
in use, namely Legal Files and Clio is scheduled to be completed by June 2021. In- house counsel also have
access to legal research tools such as Justice and
Westlaw UK to support the litigation conducted under
the scheme.
The diversity of legal work in the Legal Aid O ffice makes it an attractive option for pupils, law st udents as well as summer students. It is integral to f acilitating the Ministry's thrust to train and retain competent and qualified Bermudians. At present there is a
roster which allows pupils to spend time working in all
of the relevant government legal environments on a
rotation, at the end of which they will be able to draw on a wide base of knowledge and eventually choose a
specialisation area and settle into practice.

Justice Protection Programme —97070

I can speak specif ically to the Justice Protection Programme, which will be 97070, as it relates the budget projection for the
2020/21 versus 2021/22. Original estimate of
$520,000, the new estimate for the new fiscal year is
$325,000, which represents a $195,000 decrease, or 38 per cent.
Madam Chairman, the Justice Protection Pr ogramme has been allocated a budget disbursement of
$325,000 for the fiscal year. This reflects a $195,000,
or 38 per cent, decrease from the original estimate
from 2020/21. For the 2018/19 fiscal year, actual expenditure incurred was $520,000. Thus moving on to the next fiscal year , the actual expenditure decreased
to $372,000. For the current fiscal year, expenses to
date are now $264,000.
Madam Chairman, this programme has operated pursuant to the Justice Protection Act 2010 and
provides protection for witnesses who support the
prosecution process and meet the legislative requir ements for entry into the program me. Over the past
fiscal year, five individuals have been serviced with
protections and relocation, if necessary. One individual is currently being considered for the programme as well, taking the total active cases to six participants.
These individuals are afforded protection whilst they
provide evidence in high- profile or high- risk cases b efore the courts. In the 10 years since the programme
has been in existence, there have been 33 partic ipants which represented 51 people who were protec ted in total.
Seven additional applications were consi dered but were denied entry into the programme as
sufficient assistance was provided to allay the threat
risk. The average duration of enrolment in the pr ogramme protection f or assistance is three years.
Payments are made to meet a participant’s
reasonable living expenses including the appropriate
living expenses of his or her family. Payments are also made for other reasonable financial assistance and
for the purpose of meeting costs associated with rel ocation and se ttlement. This includes providing assi stance to the participant in obtaining employment, access to education and health care, and providing other
assistance to the participant with a view to ensuring
that the participant becomes self -sustaining.
Over the 10 years there have been 22 trials
where the participants have testified, and convictions were obtained in all but three. This amounts to an
86 per cent conviction rate. T he indispensability of this
legislative initiative is apparent from the noticeable
increase in successful prosecutions, particularly those
that are gang- related and involve violent offenders.
This profile is similar to that established in pr ogrammes within other jurisdictions. The impact of the
COVID -19 pandemic slowed the dispensation of court
cases as remote work became necessary. Notwit hstanding, the rest of this programme was operational
as much as possible. However, the number of cases reviewed was at a minimum due to the impact of the
pandemic. The privacy and need to protect these in di368 29 March 2021 Official Hansard Report

Bermuda Senate viduals is not subject to public scrutiny so that their
identity and locations are not revealed.

Financial Sanctions Implementation Unit—97080

The original est imate for 2020/21 was $348,000. The estimate for
2021/22 is $327,000, a decrease of 6 per cent, or
$21,000.
The Financial Sanctions Implementation Unit
(FSIU) was established in 2018, subsequent to the
transfer of the National Anti -Money Laundering Committee [NAMLC ] office to the Ministry of Finance. This
unit’s role is vital to ensuring that Bermuda maintains
its reputation as a cooperative jurisdiction in the inter-national effort to impose financial sanctions on rogue
states and other ill -intentioned individuals where warranted.
With the 2021/22 allocation, the decrease of
$21,000, or 6 per cent, from the prior year is mainly
due to a reduction in travel costs as well as the sal aries being prorated for a 10 per cent cut up to July
2021. Madam Chairman, $320,000, or 98 per cent,
represents salaries for administrati on. The remaining
$7,000, or 2 per cent, represents overhead costs for
the unit. [For] the current fiscal year, 99 per cent of the
expenses incurred under this cost centre are salaries.
The remaining 1 per cent was for telephone expenses.
Madam Chairman, the FSIU oversees the
implementation and monitoring of targeted financial
sanctions in Bermuda, and also advises the Minister
of Legal Affairs and Constitutional Reform on wider matters relating to anti -money laundering and countering the financing of terr orism. Madam Chairman, the
Governor is the competent authority in Bermuda r esponsible for the implementation of targeted financial sanctions. Her powers are set out in the various Overseas Territories Orders that are in force in Bermuda
pursuant to the Int ernational Sanctions Act 2003 and
International Sanctions Regulations 2013. The Attorney General and the Minister of Legal Affairs and
Constitutional Reform carries out certain functions of the Governor that have been delegated to the Minister
pursuant to the International Sanctions [(Delegation of
Governor’s Powers) ] Notice 2018, since September
2018.
Madam Chairman, this delegation of power of
the Attorney General does not remove the overall responsibility for external affairs which befalls the United
Kingdom via special responsibility of the Governor for
external affairs and defence under section 62 of the
Constitution of Bermuda. It is also noteworthy that
Bermuda’s sanctions regime implements sanctions
brought into force under the UK’s legislative regi me,
primarily the Sanctions and Anti -Money Laundering
Act 2018. Previously, such sanctions were made pur-suant to the EU regulations. However, this ended on the 31
st December 2020 at the end of the Brexit trans ition period.
For ease of reference, it is not ed that under
the said Orders the Minister of Legal Affairs and Constitutional Reform has the power to:
a) obtain evidence and information by taking
such steps as considered appropriate to c ooperate with any international investigation r elating to the funds, economic resources or f inancial transactions of a designated person;
b) issue and revoke licences, with the consent of
the Secretary of State, and may grant a l icence authorising an activity that would ot herwise be prohibited under the said Orders. Such lice nce can be varied or revoked by the
Minister at any time with the consent of the Secretary of State;
c) serve as a Reporting Depository to whom a
relevant institution reports or informs if it credits a frozen account pursuant to an Order;
d) authorise persons with power to search and
investigate suspected ships , aircrafts and vehicles; and lastly,
e) specify, by Regulations, in the currency of the territory, the amount which is to be taken as
the equivalent to sums expressed in sterling in
the relevant Order.

Output Measures

Madam Chairman,
as we shift to Output Measures, the FSIU role i ncludes ensuring Bermuda’s sanctions framework is up
to date and effective. To that end, the FSIU is responsible for making sure all Overseas Terri tories Orders
in Council for the various sanctions’ regimes are
brought into force in Bermuda in an efficient and tim ely manner. The end of the Brexit transition period
meant that amendments were required to Bermuda’s sanctions regime. Thus, the Internatio nal Sanctions
Amendment Regulations 2020 updated the sanctions
regime to comply with the changes being made to the implementation of sanctions in the United Kingdom.
The Brexit transition period ended on the 31
st
of December 2020 and amendments to the Ber muda
framework were made and came into force at the
same time. The effect of the said amendment regul ations was that 34 Sanctions Overseas Territories O rders were repealed and new orders were substituted
in their place including two Orders that consolidated
certain regimes. Further, in January 2021, t he Libya
(Sanctions) (Overseas Territories) Order 2021 was
brought into force by the [International Sanctions]
(Libya) Amendment Regulations Act 2021. These
changes added a total of 33 new sanctions OT orders to Bermuda’s sanctions’ regime. The updated regime
is listed in schedule 1 of the International Sanctions Regulations 2013.


Bermuda Senate Madam Chairman, in addition the FSIU ensures that the sanctions webpage of the Government
portal is updated within 24 hours of receiving updated
notifications from the UK Treasury. These updates are
required in order to notify the public of additions or de -
listings of the various sanctions’ regimes in force in
Bermuda. Thus, upon notification from the HM Treasury’s Office of Financial Sanctions and Implement ation, the FSIU updates the webpage and also notifies
supervisors to immediately advise their supervised
entities of the changes.
However, the FSIU will continue its outreach
initiative to relevant government ministries and departm ents as well as with the private sector in order to
increase awareness of sanctions obligations and e nsure that persons know and understand the role of the
FSIU in the implementation of targeted financial sanctions. The FSIU also continues to work closely with
the UK authorities and its operational partners to ensure effective implementation of targeted financial
sanctions in Bermuda.

Staff

Madam Chairman, I
will talk a little bit about our staff. Currently the FSIU is
comprised of the head of the FSIU and the Legal
Counsel. The team is responsible for implementing
targeted financial sanctions including bringing relevant
Overseas Territories Orders in Council into force in
Bermuda; reviewing licence applications in respect of
the various sanctions’ regimes; liaising with Gover nment House and UK authorities on sanctions matters;
and assisting Headquarters with Bermuda’s AML/ATF
global obligations.

Mirrors Programme —97090

The original est imate for 2020/21 is $874,000. The estimate for the
2021/22 is $698,000, which is a decrease of 20 per
cent, $176,000.
Madam Chairman, the Mirrors Programme
continues to execute its mission of empowering young
people to reach their full potential through pers onal
transformation that promotes healthy relationships .
[For] its 2021/22 budget, $698,000 has been allocated. Madam Chairman, $456,000, or 66 per cent, re presents salaries for administration. The remaining
$242,000, or 34 per cent, represents overhead an d
programming costs. The Mirrors Programme allocated 2021/22 budget represents a $176,000, or a 20 per cent reduction over last year’s budget. In addition to salaries for the current year, $35,000 was
spent on local training for youth, parenting and volunteer programming; $6,000 was spent on telephone
expenses. Advertising and marketing equated to
$10,000 as programming pivoted to a remote platform. Consulting, contractors and rental facilities which are directly related to programming totalled
$72,000. Off ice supplies, printing and general stationary supplies were $8,500. Office equipment repair and
maintenance was $4,500, [$400] was spent on computer software, and office chairs; $900 was to replace a broken office chair.
Mirrors continues to focus its ef forts on best
practices to meet the desired outcomes for Bermuda’s youth. COVID -19 impacted programming for 2020/21
as most services shifted to a remote learning platform for training, recruitment and enrolment of both volun-teers and participants. The school -based programmes
also pivoted to a virtual training model for teachers
and parents. Mirrors’ technology remains with socio -
emotional skills development, performance coaching
and personal transformation for all participants. The
programme continues to pr oduce results towards its
long-term objective to make better learners and to
build a resilient community of young adults who have
positive life outcomes in education, employment and
lawfulness.
The two- year post programming data of the
core senior school population remains pretty con-sistent with 93 per cent of clients demonstrating la wfulness (that is, not offending or not reoffending);
81 per cent of students connected to education (that is
graduating or currently in school); and 41 per cent are
currently employed at the last checkpoint which was
September 2020.
The organisation is committed to using data to
guide programming for positive youth outcomes. The senior school service is the flagship programme, and its data guides the middle school prevention pr ogramming. The overall success of the work is attribut-ed to Mirrors’ robust evaluation system. The essential
role of monitoring an evaluation system is to access
the performance of programming initiatives and examining their relevance, effectiveness, eff iciency and i mpact of activities in light of the specified objectives.
The outcomes are well established since the
programme’s inception. Systemic collection of information as part of monitoring ensures an availability of
information to help Mirrors, the Ministry and stak eholders access the extent of advancement, achiev ement of objectives and progress in the use of allocated funds. Evaluation establishes the significance of
policy or programming for youth development to determine the relevance of the objec tives, its efficacy of
the programme design and implementation and sustainability of the result.
In the current environment while Government
must exercise cost -cutting measures, Mirrors is able
to focus on the most needed areas based on the data
to conti nue the outputs of reducing risk and raising
protective factors in our community for societal and
cultural public benefit. Mirrors continues to use a paper-driven evaluation system as it has not been successful in financing an electronic case management
and recording system. This places significant strain on
370 29 March 2021 Official Hansard Report

Bermuda Senate the Mirrors team in terms of data entry and gener ational reports.
Analysis is secured by an outside vendor
which is costly and it is stored every two to three
years. It will be beneficial in the near future to finance
an electronic recording system to improve efficiencies.
The middle school evaluation system is shifting to a
Google platform to ease the man- hours necessary to
capture the data. Mirrors’ reach continues to increase
year over year, and as such the alumni charity is
seek ing community support for an electronic capacity -
building system. To date Mirrors has served a who pping 4,485 youths and trained 4,977 adults. This i ncludes parents, teachers and volunteers in positive youth development .
Madam Chairman, as a result of the pandemic
Mirrors pivoted to support parents virtually, which pr oduced a 638 per cent increase in parents served over
the previous year. That represents 1,057 parents
served in 2020/21 to date. Research indicates that
strengthe ning parents is one of the strongest protective factors in strengthening our youth. Madam Chai rman, Mirrors introduced a new Parent Connect series
after consulting with parents during the pandemic and
offered six sections on prevention science with the
Department of National Drug Control:
• Cybersecurity; What Every Parent Should
Know;
• Brain Science & Learning;
• Performance for Success;
• Standards -based grading with the Department
of Education;
• Paying It Forward, financing college and p arental involvement; plus
• School Equals Successful Students .
These sessions were succ essful as indicated
by 98 per cent positive feedback from parents’ perception of training content and 97 per cent reported
positive training experiences. Madam Chairman, the
20 per cent reduction for the last year will reduce the
amount of programming. However, the team has strategis ed to maximise the outputs to ensure the
number of students needing service are supported in a modified programme with the intention to produce
similar results. The ri gour in developing local trainers
will allow the facilitators to execute the Quantum
Learning curriculum and the lead camps.
The virtual model, albeit not the best option,
will allow Mirrors to provide two Junior Forums over the new fiscal year. Four new facilitators joined the
Mirrors team this month to support local facilitation of
the SuperCamp methodology. One teacher , one Department of Child and Family Services staff and two
community partners joined the Mirrors Facilitating I nspiration and Transformation Team. ( We call that our
FIT team.) Resources in the current budget are all ocated to continue to advance the local FIT team cert ification, which will result in overall cost savings in the
long term. The team is expected to serve the same number of students, parents and teachers in the u pcoming 2021/22 fiscal year. The number of training
days will be reduced to maintain the rich experience in
the current year.
This will reduce the overseas consulting
costs. With travel being restricted it is unlikely for st udents to travel to Villanova University in Pennsylvania
this year. As such, the cost savings would be allocated to a modified programme to ensure senior students
have access to a life coach. The out -of-school suspension ( sometimes known as OSS) suppor t conti nues to serve the highest -need students requiring s upervision. Ten students have been served to date,
which was earlier in the school year than experienced
in previous years. Mirrors usually serves OSS st udents during the latter part of the school y ear. Students are also experiencing the effects of reduced
social and interpersonal interactions as a result of the
pandemic. Based on the changes in the current pr ogramming due to COVID -19, Mirrors will experience
cost savings in the 2020/21 budget of approximately
$140,000.
Madam Chairman, the middle school Character Development student output was 407 for the
2020/21 fiscal year. The same [number] is expected to
participate in the All In! 8 Keys of Excellence programme in 2021/22 based on enrolment projections at
Dellwood, Clearwater and Sandys Secondary Middle Schools. With 216 teachers in the same middle
school, they will continue their Quantum Learning E xcellence in Teaching certification training process.
Madam Chairman, most of the programmes
have shifted to an electronic format and the newly produced Parent News Letter has proven successful
to support an extension of the character development lessons from school to home. Students and parents
learn the 8 Keys of Excellence, which are characteri stics m ost commonly found in successful people based
on Dr. Bobbi De Porter’s research on people who
have achieved great success while maintaining per-sonal excellence. These keys are an integral part of
the Mirrors SuperCamp curriculum and provide a
basic framework for principles for success in life.
The Mirrors Middle School SuperCamp was
shifted from October 2020 to February 2021 with 47
students recently complet ing the camp. Again, the
shift to a virtual model reduced the cost by approx imately 35 per cent , and with the same hybrid virtual
models, albeit not the ideal, will allow Mirrors, with
minor support from Mirrors Alumni and Friends char ity, to execute two SuperCamp Junior Forum camps in
2021/22.
Madam Chairman, Mirrors engaged a graduate student over the current year to complete the
business plan for Social Enterprise. Fund development is expected in 2021/22 to launch the proposed
high-wire adventure. The business emphasis is to appeal to tourists, local team -building activities and fam ilies with a social focus to develop employment opporBermuda Senate tunities for young adults and to support young entrepreneurs. The Mirrors Alumni and Friends Association
is supporting the Social Enterprise and continues to
back the programme through the volunteer recognition
scheme, the annual Bermuda- themed art competition,
community service clean- up of Southlands and other
community engagements.
Mirrors through the alumni charity took on
coordination of the Lighthouse Connect initiative with
the corporate partner, Legal & General, and the D epartment of Education to provide laptops for schools.
To date, over $100,000 has been raised to support students with devices for remote learning in public and
alternative schools. A sustainable option for the co ntinuance of the programme is under active review with
the aim to incorporate the programme into an existing
department in the upcoming fiscal year.

Grants

Regarding Grants,
the 2020/21 versus 2021/22 fiscal years, the original
estimate for the 2020/21 was $1.95 million; the est imate for 2021/22 is $1.624 million. This is a decrease
of $331,000, or 17 per cent.
Madam Chairman, the budget allocation for
Grants for fiscal 2021/22 is found at page C -17 of the
Approved Estimates of Revenue and Expenditure for
fiscal year 2021/22 Budget Book . For fiscal 2021/22,
$1.624 million has been allocated. This represents a
$331,000, or a 17 per cent, decrease from the prior
year. The decrease is due to the Centre Against
Abuse grant being transferred to another Ministry as a
result of the realignment of ministries. In addition, the
grant given to the Financial Intelligence Agency (FIA)
was reduced by 10 per cent for the 2021/22 fiscal
year.

Financial Intelligence Agency

The Financial Intelligence Agency ( also known as FIA), the original est imate for the 2020/21 [financial] year was $1.805 mi llion. The new estimate for the new budget year is
$1.624 million, a decrease of 10 per cent, or
$181,000.
In continuation of Government’s efforts to
combat money laundering and terrorist financing, t he
FIA was established under the Financial Intelligence
Agency Act 2007. The FIA is an independent agency
authorised to receive, gather, store, analyse and di sseminate information relating to suspected money
laundering and financing of terrorism, which is r eceived in the form of a suspicious activity report or a suspicious transaction report. T he FIA is empowered
to disseminate such information to the Bermuda P olice Service and Foreign Intelligence Authorities. The sum of $1,624,000 was allocated for fiscal year 2021/22, an amount that has decreased by $181,000,
or 10 per cent.
The statutory mandate of the FIA dictates that
the Agency must report its quarterly expenditure and
provide an annual audited report to the Minister of Legal Affairs and Constitutional Reform. It is anticipa ted, Madam Chairman, that despite the limited r esources outlined, this agency will continue its fight to counter terrorist financing and money laundering and
provide outcomes that guard the public interests.
During the fiscal year ending 2021, the FIA
were able to respond to the COVID -19 pandemic in itially by allowing staff to work remotely in a secure
environment. Laptops were purchased and a VPN
environment was enacted to allow staff to work. As a
result of COVID -19, the FIA provided two deep cleanings of its office by a professional cleaning company
and the purchase of additional cleaning supplies i nclusive of hand sanitiser stations.
Undaunted by COVID -19, the FIA continue to
participate in virtual training webinars delivered by
specific businesses that specialise in AML/CFT mat-ters, that includes the Association of Certified Anti -
Money Laundering Specialists, the International Compliance Association, [and] the Association of Cert ified
Financial Crimes Specialists. The FIA also participated in virtual training webinars, delivered by entities
dealing with digital assets and cryptocurrencies, some
of which are [On-Chain] analysis and CipherTrace.
There was also one purchase which al lowed
the FIA to participate in a 24- hour virtual summit by
the Association of Certified Anti -Money Laundering
Specialists which offer virtual training sessions on
AML- and CFT -related matter s (that included, for example, human trafficking, trade- based money laundering, FinTech, cryptocurrencies and other related
items). The FIA also participated in virtual training
courses, webinars hosted by Egmont CFATF and
FATF, of which some went over a period of two to three days.
The FIA also had to purchase a new office
printer, as the one they had previously for over 10
years had difficulties that were not repai rable. In terms
of future spending for the 2021/22 fiscal year, the FIA will continue focusing on trainings, updating the we bsite, preparing for the possibi lity of travel to Egmont
CFATF plenaries, increasing their staff and updating
aspects and features of goAML, which is the FIA’s
operating platform. The FIA did have a few challenges
last year which revolv ed around IT matters, resources
(i.e., staff), and of course, goAML. In light of these
setbacks, the FIA did achieve some accomplishments and continue to address work -related matters. The
FIA participated in two virtual plenaries, one for
CFATF and the other for Egmont.
The FIA were asked to present at one of the
CFATF heads of FIU [Financial Intelligence Unit]
Working Group as it pertained to FIU ’s dealing with
the COVID -19. The presentation was well received,
372 29 March 2021 Official Hansard Report
B ermuda Senate and as a result the FIA were asked to present at the
next FATF virtual meeting. The FIA continue to work
with other agencies during this time concerning the terrorist -financing national risk assessment [and] the
money -laundering national risk assessment.
The FIA analysts completed a virtual training
course with the FIUConnect and received the Financial Intelligence Specialist designation on completion.
This course is made up of 12 modules that included corruption, terrorist financing, environmental crime and other related matters. Within this climate in 2020
the reporting enti ties still filed S ARs (or STRS) t o the
FIA totalling 451 being received. From these reports,
the FIA disseminated a total of 187 disclosures to our
local and overseas counterparts, breaking this down to 147 disclosures disseminated locally and 40 disclo-sures to foreign FIUs.
Also in 2020, the FIA received a total of 53
requests for information, that being 38 from local
counterparts and 15 from overseas foreign FIUs. And
lastly, the FIA sent out a total of 61 requests for information to foreign FIUs and their local counterparts .
Capital Expenditure Estimate

Thank you. I am just
about finished and I will wrap up this particular Head and we will quickly get through the next one and then
we can enter into a period of debate for questions.
Mr. Chairman, the budget allocation for Cap ital Expenditure is found on page C -10 of the Estimates of Revenue and Expenditure. The Ministry has
been allocated a total of $296,000 for fiscal year
2021/22. [The sum of ] $249,000 is allocated for videoconferences. The remaining $47,000 is intended to be used to purchase fully depreciated assets with no residual value for departments under the Ministry.
Finally, Mr. Chairman, we note the decrease
in fiscal allocation in compliance with government -
wide directives and highlight that careful consideration will be given to prioritise service delivery and pr ogramming. It is anticipated that the Ministry of Legal Affairs and Constitutional Reform Headquarters budg-et allocations for 2021/22 as detailed and presented today will enable the Ministry to successfully fulfil its mandate with careful monitoring and continue the exercise of financial prudence.
Mr. Chairman, in concluding this represent ation of fiscal activity and plans for the Ministry of Legal Affairs and Constitutional Reform [Headquarters ], I
humbly thank once again all personnel for their firm support and dedication to the work of the Ministry. That completes Head 87, Mr. Chairman.
As previously agreed, I will now proceed to
Head 88, with your permission.

Mr. Chairman, I will
now present the financials for 2021/22 current account estimates for Head 88, the Department of National
Drug Control which can be found starting on page B -
114 of the Estimates Book.
In the 2021/22 [financial year], the [Depar tment] has been allocated the sum of $4,292,000
which is $126,000, or a 3 per cent overall decrease
from the previous fiscal year. Mr. Chairman, the D epartment of National Drug Control (also known as the DNDC) plays a key role in the Ministry of Legal Affairs and Constitutional Reform with respect to addressing one of the foremost social issues affecting Ber muda
today, namely, substance misuses and abuse.
Under the National Drug Control Act 2013, the
department provides leadership and policy coordina-tion for the planning, development, implementation and evaluation of comprehensive national systems of alcohol , tobacco and other drugs (also known as
ATOD prevention), treatment and rehabilitation services. In its leadership role in the national drug control
effort, including supply and demand reduction efforts, the DNDC coordinates with other agencies. The DNDC is also responsible for establishing targets and
standards of performance for initiatives supporting the National Drug Control Master Plan. Consequently, the
mission of the department is to lead efforts to reduce
the negative impact of drug misuse or abuse on chi ldren and families. The department’s objectives for
2021/22 are as follows:
a)to increase awareness of DNDC services and
initiatives utilising targeted media campaigns;
b)provide research data on the negative impactof cannabis misuse, abuse on young pe ople
and adjust or implement demand reductionprogrammes as indicated;


Bermuda Senate c) improve customer satisfaction for the DNDC
drug treatment and drug co- prevention services;
d) identify critical leadership to oversee the i mplementation of priority actions within the N ational Drug Control Master Plan to ensure
success of the five- year plan.
Mr. Chairman, the board of National Drug
Control manages and administers both grants, funds,
department agencies providing the prevention and
treatment services as well as a budget for administr ation functions. This includes drug prevention, drug
treatment, community development and research pol icy initiatives. Funds are also allocated to assist in the
implementation and the action plans of the National Drug Control Master Plan.
Mr. Cha irman, the department employs 27
staff. The department headquarters is presently
staffed by a director, five technical officers, and one
full-time administrative staff. Direct staffing support to
the Nelson Bascome [Centre for] Substance Abuse
facility is provided by one treatment coordinator that
oversees both the male and female residential treat-ment programmes along with 19 clinical staff that i ncludes clinical coordinators, addiction counsellors,
junior addiction counsellors and addiction counsellor
technicians, and supports posts which include admi nistrative assistant, cook, and maintenance currently
assigned to the Women’s Treatment Centre and the
Men’s Treatment Centre programme. There are currently four vacancies within the treatment programmes
that are in active recruitment with the plan to fill from
within the department following numerous unsucces sful recruitments locally and overseas.
Mr. Chairman, I am pleased to provide anal ysis by the business unit of the Budget Estimates for
the Department of National Drug Control for the fiscal
year 2021/22 compared to the previous fiscal year
ending 2021. The original estimate for the last fiscal
year was $1.144 million. The new estimate for the
year ending 2022 is $1,021,000, a decrease of 11 per
cent, or $123,000. Administration provides the organisational framework in support of the mission and mandate of the DNDC. Its resources are aimed pr imarily at current expenditure and grants and contribu-tions to the treatment and prevention partners that provide serv ices before and in behalf of the depar tment. The administration allocation of $1,021,000 is
$123,000, or 11 per cent less than the 2020/21 alloc ation. The budget covers employee salaries and other operational expenses, including facilities, utilities,
main tenance costs, supplies and training and grants.
The 11 per cent decrease represents a decrease of
funding for overseas training, travel and reduction in
grants.
The Department of National Drug Control is
established in part as a service delivery unit but cannot provide all of the needed services required within
the community. The DNDC depends greatly on pur-chasing services in the treatment and prevention ar eas through grant allocations to realise its mandate.
• PRIDE provides evidence- based life skills
programming within some of the primary schools to support drug education and drug
prevention.
• Salvation Army provides residential drug
treatment and community life skills programming for 10 males.
• Focus Counselling provides transitional or
supportive housing for up to 28 persons r ecovering.
These individuals have participated in the
primary drug treatment, at any of the treatment facil ities including prison, hospital, inpatient or outpatient services to assist in reintegrating them back into the
community as productive citizens, thus improving the
number of individuals maintaining a drug- free lifestyle.
The highlighted agencies have provided an integral
part of the drug prevention and drug treatment conti nuum of services for Bermuda for many decades in
collab oration with the Department for National Drug
Control. You can see the contributions under
Grants/Contributions on page C -17.
Regarding Community Development, I bring
your attention to business unit 98010, which can be
found on page B -107. I would like to talk real briefly
about the fiscal year ending 2021 and the projection
for 2021/22. The original estimate for 2020/21 ending
fiscal year was $269,000. The estimate for the upcoming fiscal year is $271,000, a minor decrease of 1 per
cent, or $2,000.
Mr. Ch airman, the allocation for the Community Development business unit 98010 is $271,000. This
allocation for fiscal year 2020/21 over last year is a
1 per cent increase in funding for promotions. Funding
is allocated to facilitate activities that are primaril y targeted toward public education, community development, information dissemination to support the grant,
the Council on Alcohol and Drug Abuse, also known
as CADA. You can find that information on page C -17
under Grants and Contributions.
The goal of this unit is to educate the public
about the harms of alcohol and drug use to ensure the provision of clear and sustained messages to our
young people that no use of alcohol, tobacco or other
drugs is acceptable and to involve families and
schools and community organisations in alcohol and drug prevention efforts.
CADA also works in collaboration with the
Department of National Drug Control to provide com-munity education on alcohol misuse as well as to pr ovide the server training programme, also known as TIPS, which is mandated within the Liquor Licensing
Amendment Act 2011. A grant of $100,000 is allocated to CADA to support these activities.
Other initiatives for the Community Development Unit are to assist in highlighting drunk driving,
and [promoting] road safety initiatives through public
374 29 March 2021 Official Hansard Report

Bermuda Senate education and to continue awareness campaigns directed at underage drinking, adolescent drug use that
includes alcohol and marijuana, and emerging drugs
such as fentanyl.
The majority of promotion in advertising funds
for the upcoming fiscal year 2021/22 will be used to
launch the cannabis public education campaign f ocused primarily on adolescence.
Regarding business unit Prevention, which is
98020, I can draw your attention to page B -107. The
original estimate for 2020/21 was $227,000. The est imate for 2021/22 is $220,000 which represents a de-crease of $7,000, or 3 per cent.
Mr. Chairman, the allocation of $227,000 is
provided to support the Prevention unit’s effort in
business unit 98020. This is a $7,000, or 3 per cen t
reduction. The 3 per cent decrease is a reduction in
travel expenses. Funds in this business unit are ut ilised to improve coverage of drug prevention
measures within the community to improve opportunities for school -based prevention interventions and to
increase access for young people to targeted preve ntion programmes.
Funding is also utilised to support the impl ementation of a National School Drug Policy and for
training prevention professionals and community
members to support drug prevention efforts. The Pr evention unit facilitates the Team Peace programme
operating in four public schools and also supports the
implementation and integration of Al’s Pals pr ogramme at the preschool and primary 1 and 2 levels.
Funding is allocated within the business uni t to su pport facilitators and to purchase resources to sustain
these programmes.
Mr. Chairman, the Team Peace programme
includes the utilisation of the Botvin LifeSkills drug
prevention curriculum along with Adventure Educ ation. Both are evidenced -based programmes with
proven positive outcomes among students for making
healthy choices. Botvin LifeSkills training (or LST) is a
comprehensive substance abuse treatment pr ogramme that focuses on targeting the social and ps ychological factors that initiate risky behaviours rather
than simply educating participants on the dangers of drug and alcohol use by building self -confidence and
strengthening the skills needed to successfully handle
challenging situations. LST has been proven to gain
significantly . . . and reduce the risk of alcohol, tobacco, and use and violence. The programme saw 50
students participate over 2020/21 school year across
four public schools.
Mr. Chairman, the DNDC has trained approximately 12 school teachers to deliver the Botvin Lif eSkills p rogramme since 2012, eight are currently active. Teachers have also been trained in socioem otional learning, the Adventure Education programme,
CPR, and first -aid. DNDC has funded and provided inperson and online training for the Botvin LifeSkills program me every other year, either the full pr o-gramme or the refresher course to keep our facilit ators up to date.
Mr. Chairman, prior to COVID -19 the pr ogramme operated as a part of the After School Pr ogrammes with the high- risk students being identified
by the school counsellors to participate.
Mr. Chairman, the Adventure Education is an
experimental learning programme that engages the learner physically, emotionally and mentally. It e ncourages exploring, appropriate risk -taking, and play
that predicts unpredic table outcomes by creating an
adventure, fun and learning. Adventure educators use
a specific framework to facilitate learning. The fram ework includes the Adventure Wave, which surges between three basic phases, brief, activity, and then debrief. The learning begins with the brief, where directions and framing are given. Next is the activity and participants engage in the specific challenges followed
by debrief which can happen throughout the process
but mainly after the activity is concluded. Students
have the opportunity to reflect and discuss the activity,
allowing them to transfer what they have learned from
activity into their lives. The Adventure Education a ddresses the following: Anti -bullying; anti -drug; communication; compassion; critical thinking; empathy; health; leadership; respect; responsibility; problem
solving; self -esteem; socioemotional learning; team
building; tolerance; and trust.
Mr. Chairman, all of the drug prevention pr ogrammes are evaluated throughout the year by observation by the DN DC staff, which are the drug prevention officer and the community development coordinator, to ensure fidelity and appropriate implementation
by the facilitators annually. This programme has not
operated since March 2020 due to COVID -19 r estrictions. Negoti ations are ongoing with the Ministry
of Education to restart the programme within COVID -
19 guidelines. Approximately $65,000 is spent on this programme to purchase supplies and pay programme facilitators annually. However, due to the COVID -19
the majority of this funding was not utilised in the
2020/21 fiscal year.
Mr. Chairman, Al’s Pals programme has continued in collaboration with the Department of Educ ation with the majority of public and private preschool teachers P1 and P2 teachers in public schools conti nuing to provide the programming in their classrooms.
Al’s Pals is also an evidence -based programme with
research supporting positive outcomes for children at
this level. The Al’s Pals programme is an early chil dhood resiliency -based curriculum designed to teach
healthy decision- making skills to children in preschool
grades, grade 2. Al’s Pals also helps children develop
personal, social, and emotional skills through guided
creative play, puppetry, and role playing. It teaches
them how to express feeli ngs appropriately, think i ndependently, accept differences, make good choices,
and understand that the negative impact alcohol, t obacco, and other drugs can have on their lives.


Bermuda Senate Approximately 296 students have participated
in the programme during the 2020/21 school year,
which represents a decrease over the previous year.
This decrease is related to the decline in number of
children in the preschool and the P1 and P2 level. The department for National Drug Control is committed
toward its continued collabor ation and support of the
Al’s Pals programme with the Department of Educ ation and funds initial training, refresher courses, and resource supplies for all educators implemented in the
programme at a cost of approximately $15,000 per year.
Parents in recov ery are faced with a multitude
of challenges if they prepare to address the needs of the children who have been without a worthy parent role model during their active use of substances. This
has caused a breakdown in the family, thus affecting
children. As a result, the DNDC has focused on developing skill sets for persons in recovery through the
Parent’s Toolshop education programme renamed,
Parenting 101. This is designed to encourage persons to develop their communication skills and set goals in
building a beneficial relationship with their children.
Mr. Chairman, Parenting 101 is led by a cert ified parenting facilitator and is a step- by-step guided
programme building on positive parenting skills and
building family relationships that make the hardest jo b
on the planet just a little easier. Parents learn how to
prevent problem behaviours from starting, how to
communicate, and how to help their children problem
solve and make good choices as they grow. Stress
management and positive discipline are also inc luded.
Parents receive tips and strategies that have been
proven by research to work and can be used immediately.
In 2020/21, this programme engaged 5 at -risk
parents at Teen Services, and 11 children. COVID -19
restrictions have impacted programme complet ion but
the programme has recommenced and is due to be
completed with this particular cohort by the 31
st of
March 2021. A Prevention officer and a senior educ ator are the only facilitators of this programme at an approximate cost of $5,000.
In regard to Tr eatment (this will be [unit]
98030, page B -107, Mr. Chairman) , the original est imate for 2020/21 is $411,000. The current estimate for 2021/22 is $411,000, no change. Mr. Chairman,
the Treatment unit business unit 98030, is allocated at
$411,000 which repr esented no change. Treatment
unit funding allocation is used to facilitate the impl ementation of key activities geared toward achievement of goals of the National Treatment Strategy including
Commission on Accreditation of Rehabilitation Facil ities, (also known as CARF), accreditation fees and associated resources, addiction and specific training,
recovery month (which occurs every September) activities and the AccuCare Client Management System
licensing and training. Funds are also allocated to
support the grant for the Bermuda Addiction Certific a-tion Board. You can find this on page C -17 under
Grants and Contributions. For the financial year
2021/22 focus remains on maintaining CARF accreditation for the Men’s Treatment programme, Women’s
Treatment program me, and Turning Point, which is
operated by Bermuda Hospitals Board as required by
National Drug Control Act 2013. All of these pr ogrammes have maintained the gold star, CARF accreditation status throughout the fiscal year of
2020/21. CARF accreditation is spearheaded and
funded by the Department of National Drug Control
Island- wide at an approximate cost of $21,000. Compliance surveys are completed every three years.
Quality improvement reports are submitted annually.
Mr. Chairman, in conjunction with acc reditation, the registration of all treatments services in accordance with National Drug Control Act of 2013 is in
progress. Development and implementation of supporting processes and application fees will hopefully
be implemented through the Regulations A ct in
2021/22.
Efforts will also continue to consolidate the
use of the AccuCare Client Management System in all
drug treatment programmes across the Island to assist in standardised best practice care. All treatment
facilities except Turning Point, BHB, used the Acc uCare system. Required cross -ministry training, such
as CPR, non- violent prevention techniques and A ccuCare training will also continue at an approximate
cost of $20,000.
Grant funding to the Bermuda Addiction Cert ification Board (also known as the BACB) provides international certification testing for both prevention and treatment professionals. For locals, funding to
support addiction- specific training to enhance wor kforce development in this speciality area supports
recertification of professionals and helps to maintain
memberships in the international certification and reciprocity consortium, also known as IC and RC. Certif ication is required for registration of addiction counsel-lors to practice under the Allied Health Professions
Act 1973. There are currently 45 certified and regi stered addiction counsellors, 10 certified clinical supervisors and 5 prevention specialists currently working
in Bermuda.
Regarding Research and Policy Development,
[unit] 98050, I bring your attention to page B -107. For
the fiscal year 2020/21 versus 2021/22, the original estimate for the previous fiscal year was $296,000;
the estimate for the current year ending 2022 is
$301,000. That is an increase of 2 per cent, or $5,000.
Mr. Chairman, the Research and Policy Development, business unit 98050, has an allocation of
$301,000 which is $5,000, or a 2 per cent increase to
the allocation from the previous fiscal year. This 2 per
cent increase is reflected in increased funding for contractors to support cannabis surveillance related to the
cannabis reform initiatives. Funding in this cost code
is used to facilitate information gathering and analysis,
376 29 March 2021 Official Hansard Report

Bermuda Senate monitoring, and evaluation, as well as any relevant
legislation and policy development initiative prioritised
within the department and/or the Ministry.
The primary activities of the Research Unit
are geared toward collection and dissemination of r eliable data through the Bermuda Drug Information
Network, also known as BerDIN, identifying emerging
trends, patterns and drug use, evaluation of the current drug control efforts in providing coordination, i mplementation and evaluation of the National Drug
Control Master Plan and Action Plan.
During the financial year 2021/22, an additional focus will be on implementing cannabis survei llance to assist in monitoring the impact of cannabis reform initiatives. The new National Drug Control Plan is under review. The Research Unit continues to monitor the Action Plan, or the expired plan, until the u pdated plan has been approved.
Mr. C hairman, the 9
th Annual BerDIN meeting
was held with all network members on November 6th,
2020. This annual event continues to greatly increase
collaboration, understanding, and information sharing
between all agencies involved in demand and supply
reducti on activities. The 2020 annual report for the
Bermuda Drug Information Network, which was r eleased to the public following the meeting on November 2020, BerDIN activities incur an approximate cost
of $15,000 annually.
Consumer satisfaction surveys, stakeholder
feedback surveys, and quality record reviews were
completed within the Department of National Drug
Control, Women’s Treatment Programme, Men’s
Treatment Programme, the Right Living House (operated under the Department of Correction). A marijuana use school survey took place January 20 –24, 2020
with a sampling of students from M2 through S4,
across public and private schools. The audit pregnancy survey was completed in September 2020 and the
National Household Survey on Drugs and Health
commenced on February 1st, 2021. Approximately
$49,000 was spent on implementing local surveys.
Regarding our attention to the Men’s Treatment Centre, that will be [unit] 98060, page B -107, the
original estimate for the 2020/21 was $900,000. The estimate for the 2021/22 was $898,000, a small decrease of $2,000.
Mr. Chairman, the Men’s Treatment Pr ogramme business unit was allocated, as I have men-tioned, $898,000, almost the same as it was in the
previous fiscal year. The funding allocation provides
operational and staff ing costs required to provide output to meet the rehabilitative treatment needs and the goals of adult males needing residential treatment at
the Nelson Bascome Substance Abuse Treatment
facility.
The Men’s Treatment Programme is a res idential treatment programme for men 18 years and above. It provides long- term comprehensive primary
treatment for addiction disorders. The programme’s primary treatment is delivered over a 12- month period
using a phased approach. During the last phase a transitional plan is developed which includes partic ipating in volunteer service, job shadowing, and refer-ral to a transitional supportive residency programme and/or aftercare services. There were 19 admissions
to the Men’s Treatment Programme this fiscal year.
Two were discharged to the transitional house; four
were discharged to the community, and one to the
Mental Health Community Group.
Mr. Chairman, each year our research team
conducts consumer experiences stakeholder feed-back surveys for the department’s treatment pr ogram mes. The surveys are made up of several different indicators. The most positive Men’s Treatment
indicators were: Men’s Treatment staff are know ledgeable and helpful . Additionally, Men’s Treatment
staff are professional and competent. Men’s Trea tment staff provide follow -up in a timely manner . And
stakeholder and clients say that they would recommend services to friends and family.

Yes, I am going to
just quickly move past these last pages and give
some attention to the Women’s Treatment Centre,
business unit 98070, which is found on p age B -107.
The original estimate for 2020/21 was $1.146 million.
The estimate for 2021/22 is $1.145 million, a de-crease, a [small $1,000], or no change.
Mr. Chairman, the Women’s Treatment Ce ntre business unit 98070 has been allocated
$1,145,000 for the fiscal year 2021/22. the same as
for the previous fiscal year. No change. The funding
allocation provided is utilised to meet the output and needs of women in residential substance abuse
treatment.
The Women’s Treatment Centre provides residential treatment for women at the Nelson Bascome
Substance Abuse Treatment Centre as well as supportive residency on a separate site. The Women’s
Treatment Centre is the only residential treatment f acility for women in Bermuda. It provides long- term
comprehensive treatm ent for addiction and related
disorders. The programme is delivered over a 12- to
15-month period using a phased approach. The
phased approach to treatment delivery enables the client to reach short -term goals and celebrate accomplishments thus motivating them to continue in trea tment.
Community involvement in re- entry is gradual
and includes a partnership with local businesses and
organisations to facilitate volunteerism in our clients.
There were 10 admissions to the Women’s Pr oBermuda Senate gramme over the past fiscal year, one of whom was
admitted four times.
Mr. Chairman, as mentioned before, each
year our research team conducts consumer exper iences and stakeholder feedback surveys for the department’s treatment programmes. The data for the
Women’s Treatment shows the highest positive r esponses in client reporting, that they have gotten their
needs met by the programme; the Women’s Treatment staff are professional and competent ; and the
clients state that they believe their information is kept
confidential. All of t hese indicators received at least
72.7 per cent rating. Efforts toward improvement will
include a campaign to assist in increasing particip ation in the Women’s Programmes through focus groups, public awareness and partnering with the
community programmes t hat women access. This will
occur in the upcoming fiscal year 2021/22.
Mr. Chairman, admissions were impacted due
to COVID -19 with a temporary freeze in admissions
between March and July of 2020, in keeping with the
various shelter -in-place orders. Specia l thanks today
to Digicel for providing Wi -Fi to both Men’s Treatment
Centre and Women’s Treatment Centre last year during the COVID -19 pandemic. As a result, clients were
able to attend support group meetings online during
the shelter -in-place periods for the 2020/21 admission
rates as Women’s Treatment Centre programme is
currently at 50 per cent.
Mr. Chairman, I move on to National Drug
Control Master Plan. This will be business unit 98080 on page B -107. The original estimate for the 2020/21
period was $25,000. For the upcoming year ending
2022 there is no change. Business unit 98080 is in
place to provide for effective implementation of the
National Drug Control Master Plan cross -ministry init iatives with the Police, Customs and Corrections,
evaluation of the Master Plan and to encourage cooperation and involvement of other government depar tments, the civil society, and implementation of the
Master Plan initiatives.
This business unit has been allocated
$25,000 in the upcoming 2021/22, the same as the
previous fiscal year. The funding will be utilised in part
to assist the HM Customs Canine Unit. Funding all ocated in the 2021/22 budget will also be used to ensure the dissemination and implementation of a five -
year National Control Master Plan in collabor ation with
policymakers, stakeholders and the community. The full implementation was postponed to be in alignment
with the Ministry’s strategic focus and will be finalised
soon.
I will now give some attention to grants and
contributions. Mr. Chairman, the Department of N ational Drug Control is established in part as a service delivery unit, but of course cannot provide all of the needed services required within the community. The
department therefore depends greatly on purchasing
services in the treatment and prevention areas to real-ise its mandate. It is anticipated that the total funding
of $690,000 listed under Grants and Contributions on
page C -17 of the Estimates Book will be used for
providing grants to CADA, the Bermuda Addiction Certification Board, PRIDE, Focus, and the Salvation
Army which has the Harbour Light and Lifeskills pr ogrammes.
Mr. Chairman, CADA and BACB [Bermuda
Addiction Certification Board] [provide] essential activities required by legislation. CADA’s TIPS pr ogramme is mandated with in section 39B of the Bermuda Liquor Licence Act 1974, an addiction counse llor examination and certifications is required for reregistration of addiction counsellors under the Allied
Health Professions Act 1973. As previously mentioned, PRIDE provides life skills programmes within
the primary school levels to support drug education
and prevention. Salvation Army provides residential
drug treatment and life skills training for adult males.
Thus funding for Focus counselling services will assist
in the provis ion of transitional or supportive housing
for recovering males.
Regarding Capital Acquisiti on Schedule,
which is page C -11, Mr. Chairman, the Department of
National Drug Control has allotted $12,000 for the r eplacement of furniture and computer equipment.
Mr. Chairman, I will now discuss the Subjective Analysis for Head 88, which can be found on page B -108 of the Estimates Book. Regarding Sal aries, Mr. Chairman, the budget allocation for Salaries
is $2,014,000 for the upcoming year compared to
$2,393,000 f or the year ending 2020/21. This repr esents a decrease of approximately $384,000, or
16 per cent, as a direct result of the agreement to r educe salaries by 10 per cent until January 31, 2021
and the need to move funding to support contractor
payment that are covering vacancies.
Regarding Wages, Mr. Chairman, the budget
allocation for Wages is $325,000 for the upcoming
fiscal year compared with $3,000 for the previous year
ending 2020/21. The 2020/21 budget was revised to
$315,000 to correct an input error, this increase of
approximately $10,000, or 3 per cent, as a result of
wage increments.
Regarding Training and Travel, Mr. Chairman,
the budget allocation for Training is $17,000. Mr.
Chairman, the budget allocation for Transport is
$4,000. For Communicat ion, Mr. Chairman, the bud get allocation for Communication is $49,000. For A dvertising and Promotion the budget allocation is
$71,000 for the fiscal year 2021/22 compared to
$61,000 allocated for the previous year. The increase of $10,000 of about 16 per c ent is as a result of funds
being reallocated from within the Prevention budget to support the public education campaign for adoles-cents on cannabis during the fiscal year.
The Department of National Drug Control is
responsible for providing community education, drug prevention initiatives, decrease the age of first use,
378 29 March 2021 Official Hansard Report

Bermuda Senate and prevent or diminish drug use in the community.
Funds are directed at a media campaign and educ ational events to meet this responsibility.
Regarding Professional Services, Mr. Chai rman, the budget allocation is $485,000 for the fiscal
year ending 2021/22 compared to $451,000 for the
previous year. This funding represents payments for
contractors to cover the vacancies to keep the trea tment programmes operational, provide relief coverage
for staff, leave at the treatment programmes, and for
facilitators for the Team Peace programme operating in four middle schools.
For brief information regarding the budgets
around Rentals, Repair and Maintenance and Energy, Materials and Supplies, I can report the following: Mr.
Chairman, the budget allocation for Rentals is about
$167,000 for the upcoming fiscal year. It is the same
as previous year. The budget allocation for Repair and
Maintenance is $182,000 for the fiscal year ending
2021/22, representing a $40,000, or 28 per cent i ncrease in that allocation.
For Energy, Mr. Chairman, the budget alloc ation is $144,000 for the year ending 2021/22, repr esenting a small increase of only $2,000 from the pr evious year. Regarding Materials and Supplies, Mr .
Chairman, the budget allocation is $146,000 for the
upcoming fiscal year, which is very similar to previous year, only a difference of an increase of $1,000. This
small increase represents the anticipated need for
materials and supplies required for drug prevention
programmes.
Mr. Chairman, regarding Equipment and Purchases and Other Expenses, and Grants and Contr ibutions —and then I will sum up my remarks. Under
Equipment and Purchases the budget allocation is
$12,000 for the 2021/22 year. A $1,000 or 8 per cent
decrease from the previous year. Under Other E xpenses, Mr. Chairman, the budget allocation is $6,000
for the upcoming year, the same allocation for the
previous year. Regarding Grants and Contributions,
Mr. Chairman, the budget allocation is $669, 000 for
the upcoming year 2021/22. [This is] a $114,000 or 15
per cent decrease from last year. This decrease rep-resents reduction in Grants provided to the community-based treatment and prevention services to assist
in meeting our budget threshold.
Mr. Chairman, in closing, the Department of
National Drug Control will continue to work collabor atively with other key ministries such as Health, Educ ation, Workforce Development, and various depar tments such as Corrections, Court Services, Bermuda
Police Servic e, Customs, and international partners to
ensure the implementation of a balanced approach to
efforts made in achieving a healthier and drug- free
Bermuda.
Mr. Chairman, this completes the presentation
of Head 88. I would like to take the opportunity today ,
personally, to thank the Attorney General and to thank
the entire Ministry and the department —all their staff, for all their hard work —for those at the National Drug
Control for their continued hard work and dedication in addressing the negative impact of the drug misuse
and abuse in our community. Thank you, Mr. Chai rman, I now need a glass of water.

[Laughter]

Roughly 15 minutes.

Sen. Marcus Jones: Okay. Very good, 15 minutes.
If you go to page B -93, under Head 87, and
the line is 97030, Legal Aid, we see that the amount
budgeted for Legal Aid has been decreased by
$171,000 to $1.6 million with the number of staff r educed by two for the 2021/22 budget year.
Can the Minister assure us that with less staff
members for this particular line item the staff that is
there will be able to overcome some of the logjams
within the courts and have persons within our com-munity that cannot afford their own private legal representation to have government -appointed legal aid to
assist them?
Can he also give us the criteria for what is r equired for some of us in our community who cannot
afford it? Is there a means test? Is there other criterion that has been put forward to determine if that person
qualifies for legal aid or not?
Continuing on Head 87, swinging over to page
C-17, you see Grants that have been doled out to di fferent organisations. Mr. Chairman, as you know, especially during this COVID -19-induced period of time,
the level of domestic violence and abuse within the
home has risen significantly. Actually, by the certif iBermuda Senate cates that we have available, the number of domestic
abuse cases has increased over the last three years.
From 2018, it was at 91. And at 2020, it was 171. [The
number of] families in safe houses in 2018 was at
three; now, in 2020, it is at 37.
So my question to the Minister is: Can he explain why under these circumstances this organis ation, particularly the Centre Against Abuse, which was given $150,000 last fiscal year, has now been r educed to zero? Why are these funds that were all ocated no longer a part of the equation?
Also, in an environment where statistics are
very important so we can as a Government draft polices to be able to counteract domestic violence, can
the Minister also explain to me and give me an indic ation of staffing that is there to actually compile this
information?
Also, one thing that has been bandied about
the community is the possibility of a domestic violence
court. Can the Minister inform us whether or not the
Government has a plan to actually enact this type of
court? We recognise through other jurisdictions that
this type of court would be able to reduce some of the
delay in time. We are experiencing a logjam in the
courts. This system will be a little bit more streamlined
and we see, again, from other jurisdic tions, that there
is more of a support network that is put in play to help
and to assist the victims.
Also, continuing with Head 87, there on page
B-83, under the Justice Protection programme. A
$195,000 decrease was allocated for 2021/22. Can
the Minist er please give us . . . and I can see by the
numbers that this reduction is more than austerity
measures. Can the Minister give us more clarification
and justification for the reduction of those amounts?
Continuing there on page B -86, still Head 87,
can the Junior Minister explain the value of adding
training required to obtain a legal aid certificate and whether it requires an annual renewal?
Head 87, page B -84, there was no insurance
cost over the last two years. But here in the 2021/22
fiscal year there is a $30,000 cost allocation for insurance. Can the Minister clear that up for us and let us know how much . . . what is behind that increase in
insurance costs?
Turning now to Head 88, page B -107, the N ational Drug and Control. One of the objectives of this
particular Head (you will find it there in the Objectives
section) is Identify critical leadership to oversee the
information of priority actions. I would like to ask the
Minister, where are those priority actions with the N ational Drug Control Master Plan so that we can get an
idea of where the Government plans to place its prior ities.
We also find on the same page, B -107, under
Prevention, that funds have been allocated to PRIDE. And its allocation has been reduced by $14,000 to
$169,000. We understand through looking at the website of PRIDE, that their donations have been trending down for the last three years. We realise that gifts in
kind have declined, travel donations have declined,
and now the Government which has become its major
contribut or, has now decided to decrease their funding
(from the Government) as well.
What also concerns me, as much as this
Government wants to enact a cannabis regime, and I
am made to understand that in this upcoming year
there is an attempt to be more intense in its education
of preventative measures campaigns in our schools, I
think it is important to note that not all the primary schools have a programme functioning in them. So we
know that there is a lack there. And also it amazed me
to find out that the pri vate schools do not have an o ngoing programme for PRIDE there. So I wanted to
know how the Government is going to keep its promises to actually go the extra mile to educate and i nform its young people about the scourge of drug and
alcohol, and alcohol abus e.
Mr. Chairman, with those quick questions I will
leave time for someone else to ask questions and for
answers to be forthcoming. Thank you.

Thank you, Senator Marcus Jones.
Would any other Senator care to speak on
these Heads?
Senator Michelle Simmons, the floor is yours.
Sen. Michelle Simmons: Thank you, Mr. Chairman.
I just have a few questions. Starting with Head
87, I too would like to ask a question about the Legal
Aid Office and its staffing, in particular. I know that permanent in-house counsel have been hired; two of
them, in fact. And I believe the office is still seeking one more counsel. The question I have about that is:
Will that vacant post still be there when the additional
counsel is sought? Because I know the Minister of
Finance was defunding any vacant post. So I just
wanted to get some clarity about whether that post will still be there.
Also, with regard to the Legal Aid Office, I believe it was stated in the brief that (and it is in the Budget Book) there are eight positions in the office,
three admin, and five legal positions. I believe that the
two people who have been hired are the senior legal aid counsel and one of the legal aid counsels. So am I
correct in assuming that a paralegal has also been
hired? Or, can someone just clarify exactly which positions have been filled because there are five legal
posts, and the numbers just are not adding up for me right now.
My next question is about Head 88, National
Drug Control. I understand why it was necessary to
meet budget thresholds. But I am really sorry that the
capital grants to the Salvation Army, PRIDE, and even
Focus have been reduced, because they do some
really important work in helping people who have suc-cumbed to drug addiction. I just wanted to make it
very clear that I think that if cuts had to be made, I
380 29 March 2021 Official Hansard Report

Bermuda Senate wondered why they were not made elsewhere because those grants are so important for the Salvation
Army —and theirs has been slashed considerably,
from $100,000 down to $20,000. PRIDE and Focus, they have all been slashed and that is most unfort unate.
And finally just one more question. In the subjective analysis on page B -108, there has been a r eduction in salaries. And in the brief Minister Peets i ndicated that part of that reduction is due to contract or
payments in order to cover vacancies. So I assume that there were vacancies in the department and other
people outside of the department had to be hired to fill
those vacancies. Can I get some clarity on that? I am
not clear exactly what that means.
Those are my questions.

Yes. Thank you, Mr.
Chairman.
Just reviewing some of my notes, also being
mindful of the time, I am not going to be able to give a
comprehensive answer to all of the questions that
have been put forth by Senators. As such, I am fully
aware of the time. If said Senators are minded, we will
certainly accept those questions in writing, and of
course we will get those answers back to you in due
course.
Let me quickly try to address some of the
questions as quickly as I can— in no particular order,
Mr. Chairman.
I believe, Senator Jones, you had a question
particularly as it relates to the Legal Aid Office. There
is a means test that is administered for approval. It takes into account the pe rson’s income as well as
their needs. There is a minimum, and that minimum to qualify is $18,000 per year.
There was an additional question I believe
also from Senator Simmons around Legal Aid as well.
I do apologise for the time. That was my timer indicating that we are out of time. There are two in- house
counsel, and [we are] seeking one more. As to the question about whether or not the
posts that are not currently filled, whether or not they
are defunded, I think that was the nature of the question. R ight now those particular FTEs are under active
recruitment at present. So we can confirm, Senators,
that there will be funds available for those posts to be
filled, which is good news for the public as it relates to
the use of the Legal Aid Office. Mr. C hairman, if I can just indulge the time a
little bit more. Basically, this question around domestic
violence is also important as well. There was an ind ication that domestic violence rates had increased over the years.
That is not a good indicator as it r elates to
what is going on in the community. And therefore I
can understand concerns. That concern is something
that we share here as well.

Senator Simmons, I believe it is back
to you.
[Sen. Michelle Simmons, Chairman]
Sen. Michelle Simmons: Thank you, Senator Wight.
I will just remind everyone that we are in
Committ ee of the whole [Senate] for further consider ation of the Appropriation Act 2021 together with the


Bermuda Senate Estimates of Revenue and Expenditure for the year
2021/22.
The Ministry which is coming under consi deration now is the Ministry of Labour. The Heads
which w e will be debating are Head 27, which is I mmigration (we will find that on page B -182 in the
Budget Book) and also Head 60, which is Workforce Development (and that can be found on page B -191 in
the Budget Book).
Two hours have been allocated for this debate. And Senator Arianna J. L. Hodgson, Junior Mi nister for Finance, Youth, Culture & Sport, and Labour
is the Junior Minister in charge. It is now 3:45, and
therefore this debate will end at 5:45.
Senator Hodgson, how do you wish to pr oceed?

MINISTRY OF LABOUR

Sen. Arianna Hodgson: Thank you, Madam Chai rman.
I move that the Committee do now pick up the
consideration of Head 27 —Immigration, and Head
60— Workforce Development.

Thank you. Please proceed.

HEAD 27 —DEPARTMENT OF IMMIGRATION

Sen. Arianna Hodgson: Thank you. Madam Chai rman, notwithstanding the financials contained in the
Immigration Department ’s Budget Brief, the brief contains and highlights the following:
• new Border Management System;
• e-Gates at the L. F. Wade International Ai rport;
• mixed -status families legislation;
• work permit application efficiencies;
• online payment procedures; and
• work permit policy overhaul.
As noted on page B -182, the Department of
Immigration has been allocated a budget of
$5,234,000 for the fiscal year 2021/22. The expenditure has decreased by $270,000, thus reflecting a
5 per cent decrease in comparison to our current f inancial year 2020/21.
Madam Chairman, the material changes of
the subjective analysis of the current account est imates as compared wit h 2020/21 estimates can be
found on page B -183 as follows:
• Salaries estimates decreased by $351,000
which is directly associated with 10 per cent
reduction in salaries due to the short -term
austerity measures put in place for cost saving.
• Professional Serv ices budget increased by
59 per cent. This increase is to cover consul ting services required to implement an elec-tronic online platform for customers to submit applications and payments, along with the additional costs required to print passports.
• Repairs and Maintenance estimates i ncreased by 10 per cent, or $78,000. This i ncrease is directly associated with the maint enance and support required to maintain the new Border Management System [ BMS]
throughout the year, in addition to the new cleaning contract required for the airport.
• Clothing, Uniforms and Laundry estimates i ncreased by $13,000 to replenish the uniforms with the Compliance Section as their uniforms
have not been replaced in a number of years.
• Other Expenses estimates decreased by
36 per cent as a result of the department only
accepting direct bank deposits, which has r educed the commission paid for credit card
transactions.

Revenue Summary
Sen. Arianna Hodgson: The revenue summary is
outlined on page B -183. The total revenue estimate
for 2021/22 is $12,249,000, is a decrease of
$11,698,000, or 49 per cent , in comparison to
2020/21. The most material changes are as follows:
Passport Issuance estimated revenue has
increased by 53 per cent with a projected collection of
$469,000. With the current climate related to COVID -
19, revenue collections declined tremendously for passport applications. It was unrealistic to not have
this reflected in the e stimates.
Work Permits —more specifically, full -time
and part -time, as well as temporary and periodic work
permits, calculated together equal an estimated rev enue decrease of $4,222,000, down 30 per cent from
2020/21. It is not expected to issue as many work permits as the prior year, given the increase of Bermudians and spouses of Bermudians who are unemployed.
Work & Reside permits estimated revenue for
2021/22 has decreased the amount in comparison to 2020/21 by $681,000, which is approximately 43 per
cent.
Work Permits —Appeals estimated revenue
has also decreased by $18,000 in comparison to 2020/21, as it is not expected to receive the same
volume of applications in the upcoming year.
Work Permits —[General], estimated revenue
decreased by $71,000 from 2020/21.
Land acquisition—applications for land l icences and the associated land building charges, in
some cases up to 8 per cent, are now processed by
the Cabinet Office as of June 2020. However, Imm igration continues to report on the revenues associa ted with these transactions until March 31, 2021. From
April 1, 2021, income will be reported under the Mini stry of the Cabinet Office. T he $5.5 million decrease in
382 29 March 2021 Official Hansard Report

Bermuda Senate revenues may be attributed to a reduction in typical
real estate purchases by non- Bermudians and simultaneous increase in purchases of hotel residences at
any hotel development by non- Bermudian purchases,
which would not be reflected in Immigration’s rev enues.
Residence Fees —estimated revenue decreased by $112,000, or 9 per cent , from 2020/21.
These f ees are associated with the residential certif icates issued to non- Bermudians. There was a surge
in applications received for these certificates at the
end of February 2021 associated with the change in
the residential certificate policy and the launch of the
new Economic Investment Certificate policy. And we
expect the revenues collected will exceed the est imates.
Nationality —estimated revenue decreased by
$69,000, or 39 per cent , compared to 2020/21. This is
based on the applications received during the current
financial year, and it is not expected to receive as
many submissions in 2021/22.
The Department of Immigration has taken a
conservative approach for estimated revenues for the upcoming financial year. Predictions have been assessed based on the number of applications received
during 2019/20 and 2020/21, which falls in line with
the actuals thus far for 2020/21.

Existing and New Capital Projects

Sen. Arianna Hodgson: Madam Chairman, funds
estimated for Capital Acquisitions for 2021/22 amount to $80,000 and can be found on page C -13. The
amounts allocated include the amount of $80,000,
which will be allocated for the purchase of a new electronic application system with payment gateway s to
eventually replace the ageing software.

Highlights of Key Accomplishments 2020/21

Sen. Arianna Hodgson: Here are some of the key
accomplishments for f inancial year 2020/21. Immigr ation reform —meaningful step changes for better eff iciencies in processes are afoot in the Department of
Immigration. All of these changes are exciting. Speci fically, during 2020/21 the following actions occurred:
• Emphasised the complaints procedures for
reporting breaches against the Bermuda I mmigration and Protection Act 1956;
• Undertook a review of the immigration appl ication process by implementing or reengineering the process pilot programme with
a view to making the proces s more efficient
and reduce the turnaround time;
• In July 2020, the Department of Immigration
implemented the new border management
system and e- Gates at the old L. F. Wade I nternational Airport. Between July and December 2020 there was a trial period to ensure that the systems were working optimally for the opening of the new airport;
• In August 2020, in an effort to boost the economy, the Department of Immigration launched
the Work from Bermuda programme. The
programme was intended to encourage persons empl oyed by overseas entities and un iversity students who have the ability to work
or study remotely from Bermuda for a year. To
date the department has received 754 appl ications , of which 641 have been approved
and 71 have been refused.
• On the 1
st of September 2020 the Bermuda
Immigration and Protection Amendment Act
2020 came into force to address mixed status
families.
• In another effort to boost Bermuda’s econ omy, on February 1, 2021 the department
launched the Economic Investment Certif icate, the intent of which is to increase and
sustain Bermuda’s economic activity and cr eate job opportunities.

New Initiatives
Sen. Arianna Hodgson: A s a continuance of Imm igration Reform, we have begun work to review and
rewrite the work permit policy ; optimise our application
forms; implement a process for online payments for all
applications; continue to review the structure and pr ocessing procedures to ensure applications are admi nistered more efficiently to reduce turnaround times;
and implement a workflow software solution to handle
digital application processing from the submission of applications by the customers to delivery of their documents.

Recruitment Updates
Sen. Arianna Hodgson: The number of employees
required for the department to operate efficiently is outlined on page B -184. There are 44 established full -
time posts, of which 7 of these posts are currently v acant. A list of the vacant posts consists of
• one corporate services manager;
• one personal services manager;
• one business systems officer;
• two customer service representatives;
• one processing clerk/cashier; and
• one processing administrator.
With the vacancies, there is a requirement to update
job descriptions, and this exercise is currently in train.
Madam Chairman, in closing I would like to
thank the dedicated members of staff at the Depar tment of Immigration. I would like to thank the Immigr ation Team under the leadership of Ms. Marita Grimes,
Acting Chief Immigration Officer; and Mr. Ron- Michel
Davis, Acting Assistant Chief Immigration Officer; t ogether with Ms. Lauren Sadler Best of the Attorney


Bermuda Senate General’s Chambers; the Immigration Board headed
by Mr. Scott Simmons; and the Immigration Appeal
Tribunal headed by Mr. Charles Richardson.
I would also like to thank, Ms. Tionea Effs ,
Ms. Darlene Smith, and Mrs. Jannell Burgess Doucet,
and their respective teams, as well as the Collector of
Customs, Mrs. Lucinda Pearman and her airport team
for administering the airport border control on behalf
of Immigration. Another thank -you to the Information &
Digital Te chnology [IDT] Office for their timely assi stance in ensuring that our systems were operable, particularly at the L. F. Wade International Airport. The
IDT Office and the Bermuda Airport Authority are to
be commended for working tirelessly with the depar tment in respect of the new BMS [ border management
system ] and e- Gates; and the Paperless T eam for
their assistance in helping to establish and maintain
the Work from Bermuda platform ; and the other agencies.
I thank you, Madam Chairman.

Right. That is good.
I see Senator John Wight, and then I see
Senator Robin Tucker .
Senator Wight.

Sen. John Wight: Thank you, Madam Chairman. So
thank you, Senator Hodgson, for that informative
presentation.
Just one question: So with all of the reduced
activity due to the COVID -19, so you made a reference to that reduced number of, for example, passport
applications and the like. In looking at the target ou tcomes for 2021, is the Ministry going to consider in those areas, for example, where the numbers of applications are not being affected by COVID -19, which
in some cases can take several weeks or months. So
what I am saying is that we have the same number of
employees for reduced activity in the coming year due
to COVID -19. So could their time be allocated to other
areas to speed up the process? That is my question.

Thank you, Senator Wight. Senator Tucker, would you like to pose your
questions?
Sen. Robin Tucker: Thank you, Madam Chairman.
Good afternoon, everyone.
My first question is taken from page B -183,
the Subjective Analysis, Repairs and Maintenance. I
just wondered, Madam Chairman, if the Junior Mini ster could provide a breakdown of the estimated expenses of $897,000 within this line item to justify the
$78,000 increase over the 2020/21 budget?
My next question is again on page B -183 with
regard to the Rev enue Summary. This is Work Permits temporary and periodic. With an increased num-ber of closed work permit categories, and the move,
and efforts to employ more Bermudians and spouses
of Bermudians, can the Junior Minister confirm why a 2.99 surplus is a reasonable expectation?

[Inaudible interjections ]

Sen. Robin Tucker: My next question is —

Senator Tucker, can you hear me?

Sen. Robin Tucker: Can the Junior Minister —this is
regarding business unit 37030 on Compliance. Can
the Junior Minister provide some insight as to why the processing time for investigating illegal workers is
three to six months? I am wondering why it takes so long compared to an investigation for an overstay , as
that only requires 10 working days. With so many
Bermudians out of work, could not this performance
measure be improved to ensure that we do not have
people working illegally for extended periods? [I am] just looking for some clarification ar ound that partic ular item.
And then lastly my question is around the I mmigration vacancies. I would just like to know if the
vacant positions, particularly the customer service
positions, do they have or are they having any impact on processing work permi ts? And if so, what is the
timeline for filling those vacancies? Thank you, Madam Chairman.

Thank you, Senator Tucker.
Senator Hodgson —Actually first, let me find
out if there are any other Senators who would like to
pose questions on this Head.
We are debating Head 27, which is Immigr ation.
Are there any other questions?
Senator Jones.
I cannot hear you, Senator Jones. Senator
Jones?
384 29 March 2021 Official Hansard Report

Bermuda Senate [No audible response]

We have not heard a word you said,
Senator Jones! And I am sure we missed something
really important. So you will have to begin your question again!

[Laughter]

Sen. Marcus Jones: Oh no! What a catastrophe.
Okay. Let us start from the top again.
I am on page B -183. The Junior Minister mentioned to us that the line item under Revenue S ummary where Land Acquisition Fees are, last year $5.5
million was the budgeted amount. And then the r evised estimate for 2020/21 was $5.7 million. We can
just see how, in comparison to a whole pot of rev enue, that $5.7 million is a significant amount. She informed us that it has been moved over to the Cabinet Office. And while she was saying that, I quickly took a
look and I could not find it. I realise that the Cabinet Office is not her purview. But if she could just give us
an indication of actually wher e it landed, we can delve
into that at another time and in another place. But if
she could just give us that information, I would appr eciate it.
Same page, Professional Services, we see
there that last year’s budget amount for 2020/21 was
$169,000; it is now $100,000 more, landing at
$269,000. Can the Junior Minister give us further details of the reason for those increases?
And then two lines down under Repair and
Maintenance, if she can give us again another indic ation for that increase of $78,000, I would appreciate that.
And then over onto page B -185, I believe it is,
yes, under Personal Services, looking at Passports —
37020, the fourth line down it says the average pr ocess time for passport issuance phase is four to six weeks. I have sort of a double- barrelled question in
regard to that particular line. And I am assuming that
four to six weeks is standard. My question would be,
What is the actual turnaround time for someone who
had to get a passport for an emergency, whether they had to be airlifted aw ay for health reasons or whate ver? What is the standard express time to get a pas sport? And also, can the Junior Minister give us an
indication of where the Government stands in its plans to move the processing of Bermudian passports back
here to Bermuda. If the Junior Minister just can give
us some indication of what the status of that is. And I
believe that is it, Madam Chairman.

Thank you, Senator Jones.
Senator Ben Smith, you would like to ask a
question?

Sen. Ben Smith: Yes. Good afternoon, Madam
Chairman.
On page B -183, under Revenue Summary,
8301, Status and Naturalisation and Other, we see
that in 2019/20 there were 442. And then there are
709 in 2020/21. And now we are back to 355 in 2021/22. My question is: Is this the category w here we
are going to find the belongers, the people who have
changed their naturalisation and now they are
deemed to belong to Bermuda? The reason I ask that
question is that it gives them a different level of kind of comfort in Bermuda when it comes to their children
who work here.
There are some things that change when they
get that naturalisation that I am not sure that ever ybody in Bermuda is aware of. Specifically on that,
what tends to happen is they get a set of rights that are different, but not fully to status. But it creates confusion because their children now have the ability to
work, but they do not have the ability to represent
Bermuda in sports. And we have seen some legal ac-tion in the public recently about that.
So, in looking at that number I just want to
know if this is the number where we are seeing that
increase. And is this the group that we will continue to
see an increase in the number of people who are get-ting this level of certification and the impact that it
might have going forward?
And on page B -184, the employee numbers. I
noted that the Junior Minister spoke about the acting
roles. If the Junior Minister could give us some clarif ication on how long those roles will be under the acting
designation and when we can expect those r oles to be
made permanent. Thank you.

Please proceed.
Sen. Ben Smith : Madam Chairman, just quickly, I
was trying to get Senator Jones to add to his question
earlier. When he was talking about bringing the pas sports back to Bermuda, where we have that issue with
the coding of the Bermuda passport which is causing
a lot of issues when people are travelling from one
country into the US . . . it is causing a lot of people to
get stopped, and they are asking for ESTAs [Electro nic System for Travel Authorization] when we do not need an ESTA. So has there been any progress in
getting that coding taken care of for our passports?
Thank you.

Thank you, Senator Ben Smith.
Senator Hodgson, would you like to proceed
to Workforce Development, Head 60, on page B -191?

Sen. Arianna Hodgson: Yes. Thank you, Madam
Chairman.

HEA D 60— DEPARTMENT OF WORKFORCE
DEVELOPMENT
Sen. Arianna Hodgson: Madam Chairman, I will now
move to the 2021/22 Estimates o f Revenue a nd E xpenditure for the Department of Workforce Develo pment, Head 60, found on pages B -191 through B -196
of the Budget Book.
Madam Chairman, in preparation of their estimates of revenue and expenditure, the Department
of Workforce Development also conducted a review of
its programmes, services and mission in conjunction
with the National Workforce Development Plan. The resulti ng revised mission statement of the Department
of Workforce Development as highlighted on page B -
191 is To develop a resilient workforce, to provide a
sustainable and stable community.
Madam Chairman, the objectives of the department are • to assist with dev elopment of a draft Policy
Paper and Cabinet Memorandum to obtain
authorisation to issue drafting instructions in
support of P hase 1 of Financial Assistance r eform, to include the development of Personal
Employment Plans;
• to execute Phase 2 and Phase 3 of the Wor kforce Development Re- employment Reintegration Job Strategy;
• to design and facilitate the implementation of
the Training and Development Plan in targeted occupations of restaurants, clean ers, landscaping, certified administrative assistant sec-tors, among others; and
• to complete the project plan and begin impl ementation of the clean- up of the Unemplo yment Benefit database to allow for retroactive approval of applications.
Madam Chairman, the department’s 2021/22
mission statement and objectives ha ve been amended to reflect Government’s reform and new vision
statement —Future Forward Government for the Pe ople of Bermuda.
Madam Chairman, our primary aim is to assist
Bermudians to become work -ready and to position
them to successfully participate in Bermuda’s wor kforce. This starts at school age and continues through
until retirement. The Department of Workforce Development is a partner in ensuring Bermudians are pr epared for the workforce by providing
• job opportunities in the summer for both high
school and college students;
• scholarships for local and overseas study;
• apprenticeships and training;
• national certification training;
• professional development;
• career guidance;
• assistance on redundancy and career chan ges;
• employability skills training;
• job search support;
• graduate trainee and development pr ogrammes; and
• the Bermuda Job Board.
Madam Chairman, as noted on page B -192,
the Department of Workforce Development has been
allocated a budget of $3,601,798 for the fiscal year 2021/22. This budget i s $692,693 less than the
2020/21 budget allocation.
As part of the review and zero- based budget
process, there have been quite a few changes in the budget for programmes within the department . Madam Chairman, the Department of Workforce Devel-opment compris es three programmes as noted on
page B -192. They are General Administration, Career
Development, and Training.
Programme 6001 —General Administration is
responsible for the overall management and admi n386 29 March 2021 Official Hansard Report

Bermuda Senate istration of the Department of Workforce Development. As seen on page B -192, business unit 70000,
Administration, has been allocated a budget of
$586,145 for the financial year 2021/22. This budget
is $80,000, or 12 per cent , less than the 2020/21 all ocation owing to a decrease in all business units in the
reduction of programmes, initiatives and service levels
cost savings. This has been offset in part by a decrease in contractor cost s and cleaning expenses.
This section is staffed by four full -time employees,
consisting of the director, an administrative accounts officer, a customer service representative and a twoyear temporary IT officer , as reflected on page B -194.
The director’s post is currently vacant ; however, it is
anticipated that the recruitment for the post will commence during the new fiscal period.
Madam Chairman, programme 6003—Career
Development comprises Career Development Admi nistration 70300 and Career Development 70400. The
programme is responsible for client assessment, employability skills training and job search support. Where indicated, c lients may be referred for special
skills training and other support services to increase the individual’s prospects for suitable employment and
job retention.
The 2021/22 budget allocation for the entire
Career Development Programme is $1,334,864,
which represents a decrease of $62,136, or 7 per
cent, compared with the 2020/21 budget allocation.
Madam Chairman, the Career Development
Administration is responsible for designing services to
meet the needs of job seekers and reduce emplo yment barriers. The s ection works closely with emplo yers and the Department of Financial Assistance to
assist abled- bodied clients and the Department of
Immigration.
Madam Chairman, business unit 70300, C areer Development Administration, has been allocated a budget of $422,258 for the financial year 2021/22.
This represents a decrease of $10,500, or 3 per cent
less than the original 2020/21 budget allocation owing
to a reduction in overseas training and travel costs.
This section is staffed by five full- time employees co nsistin g of the career development manager, two trai ning and development officers, an administrative assi stant and one intake officer as indicated on page B -
194.
Career Development , business unit 70400,
has been allocated a budget of $912,606 for the f inancial y ear 2021/22, a decrease of $51,554, or 5 per
cent, of the original 2020/21 budget. Funds to support
the Summer Employment Programme [SEP] for college and university students have been moved to
Wages for reclassification purposes, resulting in a correspondi ng increase in salaries of $460,000 in Wages.
This section is staffed by three full-time career deve lopment officers as shown on page B -194.
Madam Chairman, the purpose of programme
6004 Training is to provide administration and over-sight of the National Training Board activities. This section supports the apprenticeship programmes, the
distribution of scholarships, professional designation
training schemes and national certification of desi gnated trades. The 2021/22 budget allocation for the
entire Traini ng Programme is $1,680,789, a decrease
of $551,000, or 25 per cent , compared with the
2020/21 budget allocation.
Madam Chairman, business unit 70014,
Training Administration, has been allocated a budget
of $264,412 for the financial year 2021/22. This repr esents a decrease of $17,825 compared to the 2020/21
budget allocation. This section is staffed by three fulltime employees consisting of a training manager and
two administrative assistants as stated on page B -
194.
Madam Chairman, business unit 70015, Certification, has been allocated a budget of $287,892 for the financial year 2021/22. This reflects a decrease of
$221,237, or 43 per cent. Funds have been reallocated to business unit 70016, Apprenticeship and Pr ofessional Development, and business unit 70400, C areer Development, to support an increase in overseas
scholarships and the increased rate for the summer
employment programmes. The staff complement for
this business unit is two as noted on page B -194,
made up of standard and enforcement officers. One
standard and enforcement officer post is currently v acant. However, funding for this post has been transferred to support Ministry Headquarters staffing.
Madam Chairman, business unit 70016, A pprenticeship and Professional Development, has been
allocated a budget of $1,128,485 for the financial year
2021/22, a decrease of $311,929, or 22 per cent. The
staff complement for the business unit is three training
and assessment officers as noted on page B -194.
Madam Chairman, I will now discuss the su bjective analysis for the Department of Workforce D evelopment found on page B -193 and the employee
numbers found on page B -194. The budget for financial year 2021/22 of $3,601,798 is significantly decreased by $692,764, or 16 per cent. As part of the
Government ’s cost saving plan and zero- based budget process, the overall budget has quite a few changes for programmes and services. I will speak to those object codes where there are major changes.
Madam Chairman, the training budget est imate for financial year 2021/22 is $264,412 and rep-resents a $17,825, or 6 per cent , reduction. Reduction
of these funds represent s staff training, printing and
subscription- related expenses that more accurately
reflect actual spend rates and planned training.
Madam Chairman, the t ravel estimate for f inancial year 2021/22 is zero, a decrease of $13,895, and represents a 100 per cent reduction in cost savings. These funds again relate to staff and overseas training, airfare/travel, accommodation, subsistence and other travel -related expenses.


Bermuda Senate Madam Chairman, the C ommunications est imate for financial year 2021/22 is $14,600 and repr esents a $3,600, or 75 per cent , increase. These funds
relate to increased use of office and cellular telephone
usage and Internet charges due to the Unemployment Benefit initiative and associated cost tasked by the
department for the six -month period March to August
[2020] .
Madam Chairman, the A dvertising and P romotion estimate for financial year 2021/22 is $10,500
and represents a $13,500 decrease, or 22 per cent.
The reduction reflects a more focused use of adverti sing and promotion through the Department of Communication and Information and the increase d use of
social media for this purpose.
Madam Chairman, the P rofessional Services
estimate for financia l year 2021/22 is $45,578 and
represents a $36,525 increase, or 20 per cent. This
increase is related to a combination of factors includ-ing the revision of contracts for the department and to
make savings in the use of contractors to cover and offset cost s for vacant posts.
Madam Chairman, the R epairs and M aintenance estimate for financial year 2021/22 is $48,450
and represents a $96,550, or 50 per cent , decrease.
The decrease primarily relates to a reduced level of
maintenance costs associated with securit y, refuse
and pest control , with the exception of repair and
maintenance cleaning services that actually increased
by $12,000 for additional deep cleaning for health and
safety purposes due to COVID -19.
Madam Chairman, the Materials and Supplies
estimate f or financial year 2021/22 is $34,043, a r eduction of $27,966, or 18 per cent. The reduction in
the purchasing of office supplies, food supplies as well
as printing- related cost s reflect s cost savings using a
more measured estimate and spending rates for the
department.
Madam Chairman, the Grants a nd Contrib utions estimate for financial year 2021/22 is $1,505,000
and represents a $398,000, or 21 per cent , reduction
in costs.
Madam Chairman, details of Grants and Contributions can be found on page C -19. The grants and
contributions will fund the government -sponsored
scholarships, apprenticeship scheme, sponsorship for
trainees, National Certification t raining and the Summer Student Programmes, as follows:
• Eighty thousand dollars has been allocated for the Summer Internship Programme to fund
senior high school students ’ (wages remains
the same) .
• The estimate for overseas Scholarships stands at $350,000. This amount reflects a
$100,000 decrease from the previous fiscal
year 2020/21. Local scholarship allocated
amount for this fiscal year 2021/22 is $80,000.
This represents a decrease of $20,000 in local
scholarships which reflect against additional grants for financial aid at Bermuda College
and other sponsors to meet demand. Based
on multi -year overseas and local scholarship
awards to new and continuing students, this will fund approximately 35 overseas and 25 local scholarship awards for 2021/22.
• The estimate for the apprenticeship scheme
was decreased by $150,000 to $321,000. This
will significantly reduce the apprenticeship
opportunities for young Bermudians to train
and gain entry into the workforce.
• The estimate for Sponsorship Trainees is
$88,000 for short -term training programmes
which are usually less than two years in dur ation. This budget is reduced b y $26,000 from
the 2020/21 budget allocation.
• The estimate for National Certification Trai ning programme is decreased by $115,000 to
$175,000. This reduction represents a more
accurate estimate based on previous years’ expenditure. Funds were reallocated to su pport an increase in overseas scholarships,
apprenticeships and the Summer Student
Programme. The Certification Training pr ogramme is steered by legislation and is designed to ensure a benchmark standard for
the designated trades. Currently there are four
designated occupations: electricians, autom otive technicians, welders and landscape gardeners.
• Funding for the Summer Student Programme
remains unchanged from the 2020/21 budget
at $80,000. The $80,000 is allocated for the
department’s Summer Interns hip Programme
[SIP] which provides an introduction to the
workforce for high school students. Students
will be given the opportunity to participate in a
work placement during the month of July.

Well, I’m not having trouble, but some
people are having trouble hearing you.
Sen. Arianna Hodgson: Okay. Thank you, Madam
Chair man.
388 29 March 2021 Official Hansard Report

Bermuda Senate The Chairman: Okay.

Sen. Arianna Hodgson: Madam Chairman, Revenue
for 2020/21 is listed on page B -193 and is estimated
at $8,000. The estimates are the expected revenue from fees charged to applicants registering for National Certification and Apprenticeship training in 2021/22.
The statutory application fee for each applicant for
National Certification is $265, and $50 for apprentic eships.
Madam Chairman, whilst I have addressed
employee numbers and full -time equivalents in the
various business unit s, you will note on page B -194
that one of the two standard and enforcement officer posts remains vacant and unfunded for this financial year 2021/22, with employee numbers for the depar tment at 19.
Madam Chairman, I will now provide a bac kdrop to share th e hard work and intervention of the
Department of Workforce Development in the context of the c oronavirus pandemic and its relevance to the
implementation of the Unemployment Benefit and the
Re-employment Re- integration Strategic Plan. During
the last quar ter of the fiscal year, the Department of
Workforce Development was charged with administer-ing the Unemployment Benefit utilising the Public
Treasury (Administration for Payments) Act 1969,
which established the Unemployment Insurance Fund
in 2002.
Madam C hairman, the intent of this legislation
provides the authority for the Minister of Finance to make payment out of the Unemployment Insurance
Fund for the purpose of temporary assistance of un-employment benefit to individuals directly impacted by
COVID -19. The Public Treasury (Administration and
Payments) Regulations 2020 were enacted to directly
address this unprecedented crisis of unforeseen magnitude that posed a public health and economic threat
locally and globally, which left thousands of residents
unemployed , presenting unusual disruption to the s ocial fabric and economy of Bermuda.
Madam Chairman, during the unprecedented
COVID -19 pandemic, the Department of Workforce
Development was charged with administering the U nemployment Benefit project during t he months of
March to August [2020] . During this six -month period,
the training and career development sections of the
department’s concentrated efforts shifted to assist
applicants to register online and in person to become
eligible to receive the governm ent’s financial benefit
during their time of financial hardship. At the end of August [2020] , over 10,000 residents received unemployment benefits administered by the staff of the D epartment of Workforce Development , along with a
team of 89 employees recruited from across various government departments. As a result of this unprec edented crisis, normal programmes and services were
temporarily suspended. Subsequently, projected le v-els of programmes and services for the fiscal year
2021/22 were severely curtai led.
Madam Chairman, the Performance
Measures for the Department of Workforce Development are found on pages B -195 and B -196. The number of persons sponsored for local and overseas trai ning during financial year 2020/21 was 150 compared
to financial year 2019/20 figure of 131. Several st udents at the entry level of their occupations elected to
obtain industry -recognised certifications, associate’s
degrees and bachelor’s degrees , and in some i nstances specialised instructor certifications in diverse sectors of the workforce. The breakdown of local and
overseas training programmes is as follows:
Local training programmes:
• Nursing, (Certificate and Associate pr ogrammes) Bermuda College;
• General Education Diploma, C.A.R.E. Learning Centre and Adult Education;
• Safety and Instructor Certification Training
Programme (ICTP), National Centr e for Co nstruction Education and Research (NCCER);
• Learn to Earn Restaurant Training Initiative,
Bermuda Tourism Authority;
• Hospitality Management, Bermuda College;
• Culinary Art s, Bermuda College;
• Horticulture for Landscape Gardeners, Bermuda College;
• Bartending Certification Programme, Bermuda
College;
• Wood Technology , Bermuda College;
• Electrical Wiring, Bermuda College;
• Hairdressing, Bermuda College;
• Business Degree, Bermuda College;
• Associate of Science, Bermuda College;
• Elevator Technician, Otis Elevator;
• Heating, Ventilation and Air -conditioning,
Bermuda College;
• Power Engineering, Tyne’s Bay Waste- toEnergy Facility; and
• Successful Academic and Vocational Educ ation Programme (SAVE), provided by the
Bermuda Government, Court Services.
Overseas training programmes:
• Building Systems & Engineering Technicians;
• Cyber security and Networking;
• Mechanical Engineering;
• Nursing Associate’s and Bachelor ’s degrees ;
• Microbiology;
• Medicine ;
• Actuarial Science;
• Accounting and Economics;
• Electrical Engineering;
• Pharmacy;
• Computer Networking;
• Marine Engineering;
• Automotive Engineering;


Bermuda Senate • Tourism and Travel Management;
• Surgery and Medicine;
• Biomedical Science;
• Information Technology;
• Dental Hygien e;
• Environmental Science;
• Hospitality Business Management;
• International Business;
• Computer Engineering;
• Power Engineering;
• Business Administration;
• Radiology Technician; and
• Veterinary Technology.
Madam Chairman, the department continues
to collaborate wi th industry stakeholders to provide
training and professional development to ensure that
Bermudians have a pathway to national certification.
Madam Chairman, the total number of indivi duals certified as of January 31, 2021, was 203, equal
to the previous year. As a result of staff shortages, the
post for the standards and enforcement officer r emains vacant. It is anticipated that the recruitment for
a standards and enforcement officer will be filled this upcoming budget year. Additionally, due to COVID -19
and department staff and resources /efforts diverted to
administer the Unemployment Benefit for the six -
month period March to August [2020] , the national
certification process was interrupted, having major
impact on its progress. As of January 31, 2021, the
number of individuals certified includes 42 electr icians , 27 welders , 31 automotive service technicians
and 103 landscape gardeners.
The constitution of the new National Training
Board Chairperson and committee will make a [co ncerted] effort to revisit and advance the national cert ification process in partnership with the Occupational
Advisory Committee [ OAC ].
Madam Chairman, t he Apprenticeship Profe ssional Development performance measures are outlined in business unit 70016 on page B -192. The
scholarship programmes included in this business unit
are available to individuals 18 years old or older who are interested in expanding their skills and knowledge focusing on vocational and technical education. F inancial support is provided for local and overseas ed-ucational pursuits.
Madam Chairman, the Training Section
awards scholarships based on local workforce needs, particularly in areas underrepresented by Bermudians. During the period 2020/21 the department provided
funding for a total of 43 students for over seas studies,
of which 12 were new and 31 continuing awards. Due
to the COVID -19 pandemic and the inability of some
students to return overseas, some continue their stud-ies online and others have deferred their education
until 2021/22.
The department sponsored an additional eight
individuals for funding for the General Education D i-ploma (GED) this fiscal year. Of the eight, five atten ded C .A.R.E. Learning Centre and three attended the
Adult Education. The department initially budgeted for
a total of 25 GED sponsorships. However, due to
COVID -19 shelter -in-place restrictions, classes were
suspended. Typically, the department provides spo nsorship for a maximum of 25 individuals, not to exceed $5,000 per person for a three- term semester
annually. However, due to budget cost savings , 17
individuals were funded for the previous year.
Madam Chairman, the Career Development
Section Performance Measures are outlined in bus iness unit 70400 on page B -192. The Career Development Section prepares individuals, particularly the
vulnerable population, for the workforce. As of Febr uary 28, 2021, a total of 1,644 persons were registered
with the department as either unemployed or seeking alternative employment. In the previous budget year,
1,559 persons were registered with the Career Development Section, reflecting a 5 per cent increase in
registrants.
The department has worked diligently to pr ovide career development and transitional services for unemployed persons. As of February 28, 2021, the
department provided services for 1,002 persons during this financial year, of which 249 were new regi strants. Career Development services included:
• career and skills assessments;
• résumé critique and development;
• employability skills training;
• providing resource information for e- learn ing
opportunities and Workforce Development
training;
• job search assistance; and
• career guidance.
As of February 28, 2021, there were 416 c areer assessments administered.
Madam Chairman, as a requirement of the
2015 Work Permit Policy, the Career Deve lopment
Section this financial year received requests for referrals relating to 371 restricted job category positions.
Subsequently, there were 736 suitable candidates referred. As of February 28, 2021, there were 103 r eported hires compared to 114 for the previous year.
The workforce has been significantly impacted this
financial year due to COVID -19 and measures taken
to ensure public health. Additionally, as previously
indicated, normal services and operations were sus-pended for a significant portion of this financial year to
support administration of the Unemployment Benefit
and public health. Although there is a marked decrease in reported hires, the section awaits details of
hires for recent recruitment and training initiatives.
The Career Development Section continues to
utilise the Bermuda Job Board as a job search and referral tool to assist clients. Registration sessions
and introductory computer courses are ordinarily offered regularly. However, during this fiscal year the
section has had to reduc e the number of participants
390 29 March 2021 Official Hansard Report

Bermuda Senate in each training [session] in accordance with Government COVID -19 regulations. Each session is designed to help persons with limited computer literacy
skills to build confidence with technology and apply for
jobs online to incr ease their prospects of employment.
Madam Chairman, as of February 28, 2021,
there were 19,832 candidates registered on the Bermuda Job Board, an increase of 2,369 from the prev ious year. The number of employers currently registered stands at 2,573 , an inc rease of 199 from the
previous year. There were 240 jobs posted as of February 28, 2021.
The Job Board continues to see considerable
activity with 248,095 job applications submitted to date since its initial launch in 2013. This represents an increase of 41,982 submissions from the 2019/ 20 fiscal year. The ability for employers to report on hires was developed in March 2016. Since then there have
been 4,692 reported hires through the Bermuda Job
Board . This represents an increase of 1,336 from the
previous year. The hires consist of :
• 147 hires in 2015 ;
• 974 hires in 2016;
• 759 hires in 2017;
• 738 hires in 2018;
• 924 hires in 2019;
• 1,118 hires in 2020; and
• 32 hires to date in 2021.
Madam Chairman, the Career Development
Section facilitates employability sk ills workshops to
equip job seekers with the tools necessary for employment success. As of February 28, 2021, there
were 417 persons who participated in training such as
interview skills, r ésumé development, navigating
online job platforms, labour market information and
marketing yourself for success. The low attendance is
primarily attributed to no- shows, low registration and
the inability to contact clients who would benefit from the sessions. This was further compounded with the suspension of regular servic es due to COVID -19 and
the deployment of resources to support administration of the Unemployment Benefit. However, the depar tment is positioned to continue to exceed last year’s
total of 421.

Major Achievements
Sen. Arianna Hodgson: Madam Chairman, I n ow
shift to highlight some of the additional work that was undertaken during the 2020/21 financial year. You will
recall in early 2020 the country faced unprecedented
challenges due to the COVID -19 global pandemic.
Efforts to protect the public and minimis e the spread
of virus prompted cautionary measures like shelter in
place. The COVID -19 regulations, though necessary
for public health, have resulted in long- term unintended consequences for Bermuda’s economy, tourism
industry and workforce. In light of these unforeseen
challenges, the Government made a commitment to provide access to temporary unemployment benefits
for individuals directly impacted by COVID -19.
Government has reported that over 10,000
persons have received the temporary assistance to
date. During this period, the department was at the forefront of creating a structure and mechanism to
support administration of the Temporary Unemplo yment Benefit, provide information to the public and
address applicant queries. Subsequently, due to the
magni tude of the Unemployment Benefit Programme,
the volume of applications and COVID -19 regulations,
the department found it necessary to suspend normal operations and services. This has significantly i mpacted planned program mes for the 2020/21 financial
year.
Madam Chairman, whil e Bermudians she ltered in place, the Career Development Section pr ovided the public with information and resources to a ssess their current skill set and contemplate retooling
for future opportunities. Interested persons were pr ovided l inks for free and low -cost training, distance
learning and technology skills training. And d uring the
COVID -19 pandemic, businesses, schools, teachers,
students, families and individuals have had to rely on
a wide variety of emerging technologies to navigate
the challenges in education and work environments.
Additionally, persons expressing an interest in completing a career assessment were provided with links for the CareerScope online assessment , which enhances the career and educational planning process
by measuring both interests and aptitude.
In spite of the challenges with the onset of
COVID -19 and the need to shift operationally, the C areer Development Team has deliberately engaged in
several public –private partnerships to respond to
workforce needs. In September 2020 the department
learned of the planned closure of the Fairmont Sout hampton Hotel to support an 18- month period of renovations. Following the news, the Ministry and Depar tment immediately arranged to meet with the Fairmont
Southampton and Hamilton Prince ss Hotel and Beach
Club Talent and Culture teams, the Bermuda Hotel
Association and representatives from the Chamber of Commerce Restaurant Division to understand the
scope of planned redundancies and discuss rede-ployment of talent and training needs for existing and
future opportunities.
Further, the department was invited to partic ipate in a career fair hosted by the Fairmont Sout hampton Talent and Culture team in October 2020. The
career fair was designed to connect employees and
employer s. Additionally, it was an opportunity to pr ovide resource information to assist with transition and
support services. The Career Development Section
continues to support those who expressed an interest
in working with the department to assist with their e mployment and career goals.
Madam Chairman, the department continues
to take a collaborative approach to create opportunity


Bermuda Senate for Bermudian jobseekers and engage employers to
address Bermuda’s workforce needs. For similar purpose, the Ministry and department team met with local
recruiters in October 2020 to determine how we might be able to work together to address the unemplo yment crisis. The conversations proved fruitful and
covered a range of topics which included policy, a
mechanism for information sharing, rebranding, par tnering on career readiness training and networking for
corporate professionals.
The Career Development Section partnered
with professional recruitment agencies to host two virtual networking events for Bermudian corporate
professionals living on Island and abroad. The event
specifically targeted accounting, legal and corporate
professionals. Public interest was overwhelming, r esulting in over 100 registrants enlisting their interest to participate in the networking event.
This prompted the need to coordinate an add itional event on a separate date to accommodate the volume of registrants. The events were hosted over two consecutive weeks during February [2021] with 10
participating recruitment agencies. Given the event was recently held a nd the timelines required for r ecruitment, it is too early to report hires. We have,
however , been advised of some initial hires and are
hopeful that we will learn of many more. The local r ecruiters participating in the events included:
• Acumen Group;
• Detai ls Management Ltd.;
• Elevate Executive Selection;
• Executemps Ltd.;
• Expertise Group Limited;
• Frontier Financial Services Ltd.;
• Island Employment Partners;
• Ontru;
• The Platinum Group Ltd.; and
• Performance Solutions Ltd.
The feedback from all of the recruiters was
overwhelmingly positive, with some very excited that
they were able to identify talent to meet their clients’
needs. Each recruiter has advised that they will continue to work with participants to help them to secure
employment.
Madam Chairman, this i s just one of the initi atives ensuing from our meeting with local recruiters. In addition to the networking event, recruiters desired a
mechanism for information sharing regarding corporate Bermudian talent. The event enabled the depar tment to launch this information exchange and provi ded access to a pool of corporate talent. This has pos itioned the Career Development Section to respond to
requests for professional talent.
Madam Chairman, in the coming weeks the
Career Development Section will introduce a standard work readiness curriculum and credential which will
help job seekers to differentiate themselves and
demonstrate that they have the workplace skills that employers demand. Persons completing the curric u-lum from the Center for Work Ethic Development will
be positioned to earn the Certificate of Work Ethic
Proficiency by demonstrating mastery of the work et hic concepts. The work ethic programme, Bring Your ‘A’ Game, focuses on the following seven skill areas
which are strong indicators of job perform ance and
work success (attitude, attendance, appearance, ambition, acceptance, appreciation and accountability):
• Attitude —staying positive in every situation,
taking control of the way in which you react .
• Attendance—showing that you are relia ble in
every phase of your life; be on time every
time.
• Appearance —being professional both in the
ways you work and the way you look .
• Ambition —taking initiative and adding value,
doing more than the minimum .
• Acceptance —having respect and following direction, be ing coach able and play ing by the
rules .
• Appreciation —demonstrating your gratitude
towards others, providing selfless service .
• Accountability —living honestly and having i ntegrity with every decision that you make, r efusing to rationalise bad decisions.
Madam Chair man, the Summer Employment
Programme (SEP) coordinated by the Career Deve lopment Section assists Bermudian college and un iversity students in the development of their career goals by connecting work experiences to their ac ademic learning. Work assignments are professional in
nature and based on entry -level job descriptions. I nterns receive placements within government, private
and non- profit sectors where they learn leadership
and decision- making skills, time management, conflict
resolution, and career and work competency stan dards.
This year, although the pandemic presented
unique challenges, the Summer Employment Pr ogramme commenced in June 2020 with a total of 73
students being placed in internships. Placements are ordinarily based on area of study. Howev er, because
several businesses had not resumed normal oper ations in June and many of their staff were continuing to work remotely, interns were placed in areas of the greatest need.
For example, there were several pre- med and
science interns on the frontl ine for COVID -19 testing.
The programme ran from June through August. Each
intern completed up to 10 weeks and received a
$6,000 stipend for work performed. During this finan-cial year, the stipend amount increased from $5,000,
or $500 weekly , to $6,000, or $600 week ly, at a maximum of 10 weeks. This year the d epartment originally
budgeted for 75 students. However, because some
students were not able to complete the full 10 weeks,
the department was able to provide opportunity for an
additional seven student s.
392 29 March 2021 Official Hansard Report

Bermuda Senate Madam Chairman, there were several extremely talented interns who participated in the 2020
Summer Employment P rogramme. Some of the ac ademic programmes the interns were pursuing includ-ed:
• Law, Social Policy and Political Science;
• Business (Accounting, Finance, International
Business);
• Health (Pre- Medical, Pre -Dentistry, Nursing,
Radiology, Occupational and Physical Ther apy, Speech and Language Pathology, Public Health, Biomedical Science, Pharmacy);
• Sciences (Environmental Science, Pre-Veterinary Animal Science, International Wil dlife Biology);
• Human Services (Psychology, Social Work,
Forensic Psychology);
• Education (Early Childhood, History, Art, Sp ecial Education);
• Architecture; and
• Criminology and Criminal Justice.
Madam Chairman, we wish to make mention
of one of our earlier college interns , Aljalia Julio, who
first participated in the Department’s Summer E mployment Programme in 2015 and continued to parti cipate each summer until 2018. During her time in the
programme, she obtained a Physiotherapy an d Occ upational Therapy Assistant Diploma and a Bachelor’s
in Sports Therapy. Aljalia was placed with InTouch
Therapy where she received hands -on experience
under the guidance of seasoned physiotherapists. We have recently learned that Aljalia went on to complete
her Master ’s Degree in Physiotherapy in July 2020
and has continued to work each summer with InTouch
Therapy. Aljalia is now a licensed physiotherapist .
She is currently completing a six -month intern period
for experience and has been offered full -time e mployment with InTouch Therapy.
This is only one example of developing a talent for Bermuda’s workforce and Government’s return
on investment in the Summer Employment Pr ogramme. We wish to congratulate Aljalia on her signi ficant accomplishments. Her commitment and hard
work have paid off. We also wish to acknowledge
InTouch Therapy and the numerous employers who
partner with us year after year to provide each intern
with a meaningful experience. InTouch Therapy in
particular has been a committed indus try partner for
several years and has given each intern an opportun ity to connect theory to the world of work.
Madam Chairman, the Career Development
Section also coordinated the Summer Internship Pr ogramme for high school students. The programme
runs for the month of July and provides participants
with an introduction to the workforce as well as career
exposure. As a result of the programme, S ummer I nternship Programme participants are better equipped to make informed decisions about their future career path. This year there were a total of 52 participants
from the public, private and home schools.
Madam Chairman, the programme rate prev iously totalled $400 for the entire four -week period. As
previously reported, the rate was re- evaluated in the
2019/ 20 financial year. This resulted in an increase
from $400 in total to $400 weekly, with a maximum $1,600 stipend. The rate increase has created the
opportunity to restructure the S ummer Internship Pr ogramme with a more deliberate emphasis on work
readiness and developing talent [for Bermuda’s wor kforce] .
Madam Chairman, it is important to highlight
the work the s ection continues [to do] each summer to
prepare youth for Bermuda’s workforce and address
youth unemployment. Similarly, the Career Development team has facilitated employability skills sessions for private and public schools. Although we could not
have a physical presence in the schools this fiscal
year, the team facilitated several virtual sessions for
Mount Saint Agnes School, grades 9 through 12 , for
their Career Day. Each grade level had two streams participating in the sessions. The emphasis was on
understanding where the career opportunities are in
Bermuda. We also demonstrated how to access st atistics on employment in Bermuda. Supporting career
awareness and work readiness in the schools is a
worthwhile partnership, one that we hope will bear fruit for many years to come.
Madam Chairman, during this financial year
the department has been intentional about addressing
youth unemployment. Youth under age 26 have hi storically seen the highest unemployment levels , according to sequential Bermuda Job Market: Emplo yment Briefs. COVID -19 has compounded the challenges this age group faces when trying to enter Bermuda’s workforce. Therefore, the Career Development Section launched a pilot Graduate Trainee Pr ogramme during this financial year. It is important to
note that the department received 54 applications in
response to the Bermuda Job Board advert. Appl icants were shortlisted and interviewed with a final 15
recent college graduates being selected for the opportunity.
The Career Development Section enlisted the
support of industry partners Kelly Francis of Performance Solutions and Amrita Bhalla of AB Consulting
to develop a Career Readiness Programme [CR P] to
support participants in the Graduate Trainee Pr ogramme and position them to enter Bermuda’s wor kforce. The CRP is a component of the Graduate
Trainee Programme designed to support the Ministry’s
Youth Employment Strategy. The readiness pr ogramme prov ided training in the following areas:
• Develop Your Brand;
• Emotional Intelligence and Communication;
• Diversity and Inclusion;
• Office Etiquette; and
• Business Writing and Presentation Skills.


Bermuda Senate In addition to the training, each trainee was
provided several one- on-one coaching sessions to
offer personalised development and support. Each
participant also benefited from the D iSC self -
assessment tool , debriefs to increase self -awareness
and improve teamwork, communication and producti vity in the workplace. A privat e social media group was
also formed to allow for messaging and to illustrate
how such tools can be used for business.
To help each trainee build financial literacy
skills, each were sponsored to participate in the F inancial Literacy Course offered through the Bermuda
College Division of Professional and Career Education
(PACE) , in partnership with the Chartered Financial
Analysts (CFA) Society Bermuda. The course is designed as an introduction to basic money and financial
concepts to build practical financial skills and to help
participants to take control and manage their financial
future. The course covered the following modules:
• Part 1 , the Basics of Budgeting and Savings;
• Part 2 , Income, Expenses and Debt;
• Part 3 , Planning for Retirement; and
• Part 4 , Putting it All Together.
These components of the Graduate Trainee
Programme concluded with a virtual closing session
with the Minister of Labour, the Workforce Develop-ment Team, Performance Solutions and AB Consul ting on the 15
th of February. Each trainee s hared key
takeaways from the sessions.
To highlight a few, Ailey McLeod stated that
the course really highlighted the advantage of using
personal branding to stand out to potential employers. It also demonstrated the importance of being inte ntional in how I present myself, to ensure that this
aligns with how I want to be perceived professionally .
Brighton Swan added, While I enjoyed the
whole programme, the financial literacy course, which included personal sessions with others in the pr ogramme, enabled me to learn strategies from more
experienced Bermudians to help improve my financial
position in Bermuda.
Daijon Taylor said, My key takeaway was the
personal branding. I have social media but never rea lly used it for business. In the future, I will use soc ial
media as a way to help brand myself and network with
people outside my immediate circle.
Kelly Francis, President of Performance Sol utions and Amrita Bhalla, Managing Director of AB
Consulting, stated, It has been a pleasure for us to
partner with Wor kforce Development and Minister J ason Hayward to support Bermudian job seekers
through the first cohort of the Career Development Programme. This programme has been designed to
support the participants with developing key skills in
the workplace and equip them with the knowledge and
tools to be successful in their career journeys. We
thank each of the participants for their time and dedication on the successful completion of the pr o-gramme, and we look forward to a continued partnership with the Department of Workforce Development.
The graduate trainees include:
• Shanya Bashir, Bachelors of Arts Early Years
and Childhood Studies, Manchester Metr opolitan University;
• Christian Belboda, LLB Law & Legal Practice
Course, Nottingham Trent University;
• Etteleon Burchall, Bachelor of Science Biolo-gy, Spelman College;
• Zya Fraser, Bachelor of Business Administr ation Risk Management and Insurance, Bach elor of Arts Computer Information Systems with
a concentration in Cyber security, Georgia
State University;
• Japhia Lightbourne, Bachelor of Science A ccounting and Finance, University of West
England;
• Samara Hunt, Bachelor of Science Human
Resource Management and Business, Leeds
Beckett University;
• Ailey McLeod, Bachelor of Social Science A nthropology and Politics;
• Jalen Means, Bachelor of Science Criminology, University of Tampa;
• Meshellae Payne, Master of Arts Principles of Conservation, University College of London,
Bachelor of Science Archaeology, University
of Southampton;
• Raichelle Johnson, Bachelor of Business A dministrat ion Marketing Management, Mount
Saint Vincent University;
• Jessica Sharpe, Bachelor of Science International Relations, London School of Economics
and Political Science;
• Braxton Stowe, Bachelor of Science International Business and Marketing, St. Louis University;
• Brighton Swan, Bachelor of Arts Business and
Human Resource Management, University of
West England; and
• Daijon Taylor, Bachelor of Commerce A ccounting, Saint Mary’s University.
Madam Chairman, although we were only
able to accept 15 recent graduates in the programme,
we extended our services and the opportunity to work
with human resource p rofessionals to support their
job-seeking efforts to the remaining applicants. We
are pleased to report that 15 of the remaining appl icants took us up on our offer. Each have been provi ded one- on-one coaching sessions and will participate
in a series of career -readiness seminars covering the
following areas:
• Developing Your Brand;
• Résumé and Cover Letter Preparation;
• Interview and Presentation Skills; and
• Recognisi ng and Leveraging Your Skills.
394 29 March 2021 Official Hansard Report

Bermuda Senate Madam Chairman, due to COVID -19, staff
were unable to participate in overseas professional
development opportunities. However, where possible
they took advantage of virtual training sessions. C areer Development staff particip ated in the following
professional development courses and opportunities:
• Compassionate Care Advocacy and Awar eness;
• Facilitating Career Development (previously ,
the Global Career Development Facilitator
course) ; and
• Northwestern State University, Doctorat e Program in Adult Learning and Workforce Development, which is self -funded.
Madam Chairman, staff training and professional development opportunities are vital to providing services for the unemployed, youth and special pop ulations. More importantly, it i s imperative that officers
remain current with workforce trends and labour mar-ket information in order to provide proper guidance.

Senator Hodgson, I am just going to
interrupt and let you know that you have about 29
minutes left.
Sen. Aria nna Hodgson: Thank you, Madam Chai rman. We are getting through it.
It is also critical for officers to obtain the necessary training to adapt with the new norm in the
workforce and to implement the recommendations
outlined in the National Workforce Develo pment Plan.
Lastly, the Career Development Section continues to hold membership with several professional organisations , namely, the National Career Development Association (NCDA), the National Council on
Workforce Education (NCWE) and the Bermuda H uman Resources Association (BHRA). These member-ships increase the opportunity for training, professional development, understanding how similar organis ations are redefining services post COVID -19, networ king and employer engagement.
Madam Chairman, the Learn to Earn resta urant training partnership initiative was originally
launched in November 2019 with 13 young Bermudians. Due to the COVID -19 pandemic, the programme
was temporarily suspended. This public –private trai ning and development program aims to attract B ermudian jobseekers to restaurant careers and includes the following partners:
• Bermuda Tourism Authority;
• Bermuda College;
• Tomasz Tabor Memorial Fund;
• Harbourside Holdings (which includes Flana-gan’s Irish Pub, Divots, The Loft, Snug Café
and Outback Sports Bar);
• Island Restaurant Group (which includes Barracuda Grill, Brew, Hog Penny Pub, Pickled
Onion, Frog & Onion); • Take Five (Devil’s Isle, Village Pantry, Buzz
Cafés); and
• Yellowfin (which includes Astwood Arms, Bi stro J, Café TEN, Pearl, Port of Call and Yours
Truly).
Madam Chairman, as a result of the COVID -
19 pandemic shelter -in-place restrictions, the pr ogramme was suspended and the hospitality industry was significantly impacted. This resulted in major
business closures, unemployment and layoffs , wher eby the practical training component of the programme
was revisited and recently relaunched in February
2021 in accordance with COVID -19 protocol r estrictions. The programme was back on track and is
scheduled to conclude March 2021. Participants r eceived c ertification from the American Hotel and Lodging Educational Institute [ AHLEI ] as well as industry -
specific training certification as baristas, food ha ndlers, wine servers, Fire and Life Safety , and TIPS
[Training for Intervention Procedures] for on-premis es
training certification. Nine Bermudians were employed
at various participating restaurants as a direct result of this industry -driven partnership training initiative.
Madam Chairman, the department in partnership with the MEF Group of Companies designed and
implemented a Food & Beverage training programme
to strengthen and provide industry -specific training for
Bermudians in the restaurant industry. The unique approach to this programme provided opportunity to
include Bermudians with limited- to-no experi ence to
work in various restaurant locations in various aspects
of the business. Opportunities ranged from the least
skilled to the more highly skilled individual. Other benefits of this comprehensive training programme i nclude:
• providing Bermudians with a better understanding and perception of the restaurant i ndustry;
• identify ing a clear pathway in various areas in
the restaurant [industry] as an occupation;
• better retention and monitoring of participants;
• develop networks and establish contacts in
the restaurant industry; and
• Bermudians to obtain certification aligned with
industry standards, quality of service, marketable skills and experience required in the restaurant industry.
Currently there are 12 participants in the trai ning programme consisting of 6 males and 6 females. It
is anticipated that the practical rotation component in the 12 MEF Group of Companies -Restaurants will
conclude April 2021. The Ministry of Labour and D epartment of Workforce Development recognises and commends this mutual benefit partnership with the owners and management of the MEF Group of Companies.
Madam Chairman, I now shift to the work of
the Training Section. The Apprenticeship and Trainee
programme has successfully engaged industry par tBermuda Senate ners in developing opportunity for full-time emplo yment and training for apprentices, specifically promoting employer incentives for formalising apprenticeship
and training opportunities. Steady progress continues
to be made in formalising apprenticeship and training
[schemes] with both the government and private sector. This fiscal year the training section expanded
training opportunities to include an additional 2 companies and 4 Bermudian apprentices , for a total of 22
companies registering a total of 97 apprentices as of
January 31, 2021. The companies include:
• Brilliant Solutions —Electrical;
• Temperature Control and Plumbing;
• Strikeforce Carpentry;
• Sunny Side Solar;
• Mid-Atlantic Wellness Institute;
• Crisson’s Construction;
• Perfect Pass Welding;
• J & B Complete Fashion;
• Teacher Pet Nurser y;
• Port Royal Golf Course;
• Sylvia Richardson Care Facility;
• Bermuda Government, Department of Public
Transportation;
• BAC Universal Electric Group of Companies;
• H. S. & J. E. Crisson Ltd;
• Noble Automotive;
• Efficient Technologies Bermuda;
• Otis Elevator Bermuda;
• Fairmont Southampton;
• Bermuda Electric Light Company;
• Bermuda Energy Services Company Limited (BESCO); and
• Tyne’s Bay Waste- to-Energy Facility; and
• Government Quarry, Motor Mechanic Facility.
Madam Chairman, a total of 13 companies
and 30 Bermudians w ere awarded approval for trai ning schemes in the 2020/21 budget year, an increase
of two companies and seven trainees. Benefits of this
training scheme to employers and trainees include
payroll tax waiver , subsidized wages , paid on- the-job
training , work experience and industry qualifications.
This payroll tax exemption from the Office of the Tax Commissioner provides relief for employers who are
committed to training Bermudians. The companies
receiving approval include:
• Chartered Professional Account ants—two
trainees;
• Orange Bay company —five trainees;
• Otis Elevator Bermuda Limited—three trai nees;
• Marshall Diel & Meyers Limited —one pupi llage;
• Canterbury Law Limited— two pupillages;
• Elevate Executive Selection Bermuda Li mited—one trainee; • Arthur Morris, Christensen & Company —two
pupillages;
• BESCO —two trainees;
• Walkers (Bermuda) -Taylors law firm —one
pupillage;
• Meritus Trust Company Limited —four trai nees;
• Appleby Bermuda—two trainees;
• Tuteca Limited—three trainees; and
• Mazars Limited— two trainees.
Madam Chairman, the department continues
to provide sponsored training programmes and initi atives to fill the gap of Bermudians employed in the hospitality industry in general , and more specifically
the culinary arts field. This information is captured in
the Berm uda Job Market 2021 Employment Brief. The
department uses this data along with the information
from the Statistics Department’s closed and restricted
job categories list to determine areas of training and
development programmes for Bermudians.
Currently, there are seven apprentices regi stered in the Culinary Arts Apprenticeship Programme
with Fairmont Southampton. Two apprentices are on
schedule to complete their four -year training on the 6
th
of March [2021] . Each year the apprentices attend five
weeks of training at Holland College, Prince Edward
Island, Canada. At completion, they will have acquired
the relevant number of work hours to qualify them to
sit the Red Seal International Certification exam in
Culinary Arts.
Madam Chairman, the Training Section sponsored 10 apprentices with the Bermuda Electric Light
Company [BELCO ]. Four of the ten apprentices have
completed their four -year programme. Specific areas
of training for these Bermudians included an Industrial
Electrician, Millwright Industrial Mechan ic, Electrical
Fitter and Power Line Technician. In addition, the d epartment sponsored three new apprentices with Bermuda Air Conditioning Group of Companies (BAC
Universal). Currently, BAC Universal has a total of 12 apprentices in the training programme at Bermuda
College.
Madam Chairman, in direct response to wor kforce needs, the d epartment in collaboration with the
Construction Association of Bermuda [ CAOB ]
launched a pilot masonry apprenticeship programme
designed to ensure opportunity for Bermudians t o
qualify, gain experience and upgrade competencies in
masonry. The programme utilises the National Center
for Construction and Research [ NCCER] masonry
curriculum and includes a combination of on- the-job
training and theory. Since the initial launch, eight
companies each registered one apprentice. Six of the
eight apprentices were employed, and two were newly
hired. The department continues to work with other
training providers to advance this programme and expand apprenticeship and internship training and employment opportunities in the technical and vocation al
[areas] and the trades.
396 29 March 2021 Official Hansard Report

Bermuda Senate Madam Chairman, the Training Section in collaboration with the National Training Board is in the
process of revisiting the policy to advance National
Certification. Madam Cha irman, as of January 31,
2021, National Certification s in Landscape Gardening
were awarded to 103 individuals. The Horticulture
Programme was established in partnership with the
Bermuda College Division of Professional and Career
Education [PACE ] to create a pathway to National
Certification. Similarly, the department and PACE launched an accredited Automotive Technician Trai ning Programme. The standard for this training is City &
Guilds and also provides a pathway to National Cert ification. As of January 31, 2021, a total of 31 individuals received National Certification for Automotive
Technicians.
Madam Chairman, to streamline the National
Certification process for Welding, the department upgraded the welding facility at Bermuda College, Tech
Hall, to be used for welding instruction and testing
locally. The facilities upgrade supports National Cert ification and allows for remote video testing, invigilated
by the Canadian Welding Bureau [ CWB ] in Canada.
The upgrade will provide on- demand testing locally
and eliminates the need to bring in overseas invigil ators, resulting in reduced cost to the department. Also
this year the department trained two local welders and
members of the Occupational Advisory Committee
[OAC ] as Level 1 Welding Inspectors. This allows for
the test to be administered locally and invigilated vi rtually by CWB. As of January 31, 2021, there were 27
individuals who achieved National Certification for
Welding.
Madam Chairman, the Department of Wor kforce Development continues to work with the Occupational Advisory Committee to promote National Certification and recertification for electricians. The Trai ning Section plans to launch an online training and tes ting platform for electricians in collaboration with Bermuda College and the National Tr aining Alliance. Ut ilising an online platform provides greater access to
requisite courses for National Certification. Further,
the online platform will be augmented by traditional classroom training. The online virtual training, testing
platform and tradi tional classroom instruction will be
aligned with the [ 2017] National Electrical Code
Standard. As of January 31, 2021, there were 42 electricians who received National Certification.
Madam Chairman, the Training Section funded training programmes for 13 at-risk individuals. The
Successful Academic and Vocational Education Pr ogramme [SAVE] is a collaborative partnership with the
following stakeholders:
• Court Services;
• Bermuda College;
• Mirrors;
• Department of Financial Assistance;
• Bermuda Housing Corporat ion (BHC); and
• Department of Corrections. SAVE coordinates services and resources for
at-risk individuals to increase access to academic and
vocational training. Apprenticeships, on- the-job trai ning, internships and professional development are
avenues uti lised to help participants to achieve self -
sufficiency and sustainable employment.
Madam Chairman, in collaboration with the
Department of Works and Engineering, through nat ural attrition and the competitive job market led the
Tynes Bay Waste- to-Energy Facility to look at their
training projections and need for power engineers.
In an effort to assist Tynes Bay to meet its
mandate of developing certified power engineers, the
department sponsored Marcal Wilkinson, a graduate
of the Berkeley Institute and Hez ekiah Rampersad, a
graduate of CedarBridge Academy , to attend Cambr ian College of Applied Arts and Technology. The school’s curriculum is endorsed by the Technical
Standards and Safety Authority [TSSA] , a standard
accepted for power engineers working in Ca nada and
Bermuda. The programme will help these two young
men to maximise their career opportunities by prepar-ing them to challenge the various TSSA examinations
after each year level. At completion, each will have
the opportunity to interview for availabl e positions.

Plans for the Upcoming Year
Sen. Arianna Hodgson: Madam Chairman, I now
shift to highlight the work that will be undertaken dur-ing the 2021/22 financial year. The department will
continue to lay the groundwork to implement identified element s of the National Workforce Development
Plan. During this period, the department will work with the National Training Board to advance the p lan for
Bermuda.
Madam Chairman, the Career Development
Team will utilise a standard work -readiness curriculum
and a ward a Certificate for Work Ethic Proficiency for
persons demonstrating a proficiency in the skill areas
which are strong indicators of job performance and
work success. This will better equip persons for the
workforce and ensure that they have the skills r equired by employers. Further, the department will promote learning as a lifelong concept by offering learning opportunities and launching the Workforce
Development Learning Academy.
Madam Chairman, the department, in collaboration with Financial Assista nce, will support the i mplementation of Phase 1 of Financial Assistance r eform to include the development of Personal Emplo yment Plans. This initiative will incorporate elements of financial literacy training to support able- bodied F inancial Assistance cli ents as they transition towards
self-sufficiency. This will improve clients ’ ability to
make financially responsible decisions which are essential for everyday life.
Madam Chairman, the department will conti nue to execute Phase 2 and Phase 3 of the Workfor ce


Bermuda Senate Development Re- employment Re- integration Job
Strategy. This strategy, in alignment with the Gover nment’s platform initiatives and Ministry priorities, is
designed to implement a phased approach to provide
training and career development opportunities to facilitate the ease of finding employment for Bermudians.
This is in direct response as a result of the COVID -19
pandemic, resulting in thousands of Bermudians being
unemployed.
Additionally, due to the contraction of the
workforce, the plan includes col laborating with industry partners to provide quality training and development programmes for Bermudians to reskill, upskill
and become equipped . It will reduce the number of
work permits in specific occupations which have a
higher number of expatriate work ers. The primary o bjective is to get Bermudians back to work doing jobs
that Bermudians can do.
Madam Chairman, consultation and collabor ation meetings with key industry partners aim to design and implement industry -driven training and career development programmes, apprenticeships, internships
and the like that work in the interest of unemployed
Bermudians , as well as those that add public value to
the country. These programmes and services for cl ients aim to provide targeted training and development in identified areas of workforce need that directly connect Bermudians with employment. Project teams will
match and track industry partners ’ and clients ’ progress to better connect employers with trained and
qualified unemployed Bermudians for employment
oppor tunities.
Madam Chairman, to further advance the d evelopment and implementation of the Re- employment
and Re- engagement Training and Development Plan,
guided by current and projected industry -based needs
and information from the Department of Immigration,
focus will be targeted in occupations of the workforce
that include but are not limited to restaurants, clea ning, landscaping, certified administrative assistant and
accounting designations to facilitate employment opportunities in high- demand occupations held by guest
workers based on workforce trends and labour market
information.
Madam Chairman, the Department of Wor kforce Development was charged to administer the Unemployment Benefit project for the period March to
August [2020] to assist the thousands of unemployed
individuals with the application process during the
COVID -19 pandemic to apply for financial assistance
during their time of financial hardship. To complete the project, the department has convened a small team for the review and compliance of the Unemployment
Benefit database.
Madam Chairman, the department will conti nue to increase the number of training programmes and apprenticeships to reduce youth unemployment
and align with industry needs. The section continues
to experience considerable success with employer engagement and public –private partnerships. For this
reason the Training Section, in consultation with the
National Training Board, will establish a more deliberate approach of engaging key industry stakeholders.
The approach will be more measured to understand
what resources are needed and what additional ince ntives can be implemented to increase the number of
on-the-job training opportunities for Bermudians. The
section will target the following industries for the
[2021/22] budget y ear:
• hospitality;
• vocational/technical trades;
• information technology;
• health; and
• other high- demand occupations.
Madam Chairman, the department will work
closely with the Department of Communications to
launch an awareness campaign, utilising digital an d
social media platforms to encourage all tradespersons
to register for National Certification in the designated
occupations.
Additionally, the department plans to use a
more focused approach in the options for scholarships to support a talent pipeline for Bermuda’s workforce.
We recognise there are individuals who do not have
the economic means to pursue higher learning. The
department will award scholarships on the combined
basis of financial need and workforce priorities. Again,
scholarships will be awarded to persons pursuing pr ofessions in areas traditionally underrepresented by
Bermudians , to reduce the number of work permits in
occupations that have a high number of expatriates
and to get Bermudians back to work in entry -level,
mid-level and high- demand occupations in the wor kforce.
Madam Chairman, the need for more strategic
succession planning within Government, particularly in
the trades and technical professions , is evident. In the
upcoming financial year, the department will continue
to collabor ate with government departments , as well
as the private industry sector who employ tradesmen,
to understand their forecasted needs. For example,
the department will co- sponsor local and overseas
training, career development and internship pr ogrammes to inc rease employment opportunities for
Bermudians in the various trades, vocational [occupations] and technical occupations held by guest wor kers.
Madam Chairman, the department remains
committed to ensuring that Bermudians are not disadvantaged and that they are sufficiently prepared to meet the needs of the workforce. As I conclude, I
would like to take this opportunity to acknowledge the
hard- working staff of the Department of Workforce
Development under the leadership of the Acting Director, Dr. Patricia Ch apman. This department remains at
the forefront of providing training and career develo pment programmes and services for Bermudians in
398 29 March 2021 Official Hansard Report

Bermuda Senate preparation for the world of work, moreover during
these unprecedented times.
Madam Chairman, this now concludes my
presentation for Head 60 . the Ministry of Labour.
Madam Chairman, if you would like I can go
back and try to answer some of the questions from
Head 27. I am not sure how to go.

Sen. John Wight: Yes. I think, Senator, in the a bsence of . . . I think Senator Sim mons will be back in a
second. So that would be a good suggestion.
Sen. Arianna Hodgson: Okay. Perfect.

[Pause]

Senator Hodgson, thank you for that
rather extensive brief.
There are about four minutes left of the time
that we have.
Are t here any Senators who have questions
that they would like to pose?
Senator Robin Tucker. You need to unmute
yourself.

Sen. Robin Tucker: Good afternoon again, Madam
Chairman. Thank you very much. And also, thank you
very much to Senator Hodgson, Junior M inister Hod gson, for the very comprehensive brief that she gave.
I do have several questions. However, in the
interest of time, I would ask permission to be able to
provide my questions for Head 60 in writing and anti cipate response if that is okay. In th e meantime,
though, if she can at least, in the few minutes that we have left, give answers to as many questions that she
is able. Thank you very much.

Thank you, Senator Tucker. So you
are submitting all of your questions for Head 60 in
writing. Okay. Thank you.
Are there any other Senators who would like
to ask questions on this head, Head 60, Workforce Development? I do not see anyone else indicating that they
would like to ask a question.
Senator Hodgson, do you have answers to
any of the questions under Head 27— Immigration?

Sen. Arianna Hodgson: Yes. Yes, I do, Madam
Chairman.

Okay. Please proceed.

Sen. Arianna Hodgson: I guess I will go back to the
first question regarding the salaries estimates and
whether or not there are any vacant posts that were cut. And so, no, [there were] no vacant posts were
eliminated in this instance. But the decrease is directly associated with the 10 per cent reduction in gross salaries.
Regarding the Professional Services budget,
the department employed a business analyst/consultant to continue the process re- engineering
work. And that included documenting workflows, revi sing those workflows for developing job ads, business
rules, training materials and presentations to inform
staff of changes. The consultant also assisted with
documentary requirements for future IT systems
works. So I hope that provides some context.
Regarding the Repairs and Maintenance —

Sen. Robin Tucker: Madam Chairman.

Yes, Senator Tucker.

Sen. Robin Tucker: I am sorry. Excuse me, Senator
Hodgson.
I would just like to ask a supplementary question if that is okay. I am just interested in the b usiness
analyst and the latent contract fees.

Sen. Arianna Hodgson: Yes. And let me just confirm
the contract . I will make a note of it because I do not
believe time will permit. But I will definitely get that
information to you.
Part of the first -year maintenance costs for the
new border management system are reflected in the capital development budget for fisc al year 2020/21.
However, there would be some minor additional
maintenance in the current account that may have been incurred in support of maintaining new e- Gates
at the L. F. Wade Airport Terminal. And again, I can
confirm the value of contracts for the cleaning at the
airport.
Ideally, the decrease from accepting the direct
bank deposits, this will be a permanent change. And
we hope to see, obviously, a change in savings mov-ing forward.
With regard to the work permits of full -time
and part -time, and the temporary and periodic ones as
well, we do think that this has something to do with
the moratorium and, you know, highly likely that this
was in fact about the moratorium. However, the bi ggest impact would have been a result of the COVID -
19 pandemic. And for that reason, a substantial number of work permit [applications] were not submitted.
Let’s see. I will also provide some clarity on
the transfer of the $5.5 million. I can put that in writing for the Senators.
So regarding the capital acquisition, the
$80,000, this $80,000 is for the purchase of an off -theshelf version of Microsoft Dynamics, which will be used partially as a client relationship management
system. The project entails building a web portal for
the online receipts of applications, the i mplementation
of a payment gateway and dynamics of the back end
to coordinate a portion of the workload in the depar tBermuda Senate ment and to reduce reliance on paper files. This pr oject specifically does not relate to the border management system.

We have actually exceeded our time
now. Do you have any further responses, Senator
Hodgson, or would you prefer to submit the remaining
answers in writing?
Sen. Arianna Hodgson: I can submit the remaining.
But I do have the information that the new cleaning
contract for the Immigration area at the L. F. Wade
International Airport, [it] is $36,000 annually.
Thank you, Madam Chairman.

Thank you very much, Senator Aria nna Hodgson.
So we can move on. Senators, we are in
Committee of the whole [Senate] for further consider ation of the Appropriation Act 2021 together with the
Estimates of Revenue and Expenditure for the year
2021/22.
The Ministry now under consideration is
Transport. The Heads for debate are Head 30 —
Marine & Ports, found on page B -202 of the Budget
Book; and Head 35— Public Transpor tation, found on
page B -212 of the Budget Book.
One hour has been allocated to the debate of
these two Heads. The Senator in charge is Senator
Curtis P. Richardson, Junior Minister for Health, N ational Security and Transport.
It is now 5:49, and the debate on these two
Heads will end at 6:49.
Senator Richardson, Junior Minister for
Transport, how would you like to proceed?

MINISTRY OF TRANSPORT

Sen. Curtis Richardson: Thank you, Madam Chai rman. I would like to proceed by presenting the two
Heads. I move that the Committee do now take under
consideration Head 30 —Marine & Ports Services and
Head 35— Public Transportation.

Thank you. Please proceed, Senator
Richardson.

HEAD 30 —MARINE & PORTS
Sen. Curtis Richardson: Madam Chairman, I do believe it is important to outline the mission statement of
the Department of Marine & Ports. It states that it is
the regulation and safe operations of Bermuda’s mar itime affairs including marine border security, search
and rescue, and public transportation. I feel this is v ital. Speaking to the budget, it is found on pages B -202
through to B -207 of the Estimates of Revenue and
Expenditure for the year 2021/22.

Expenditure Overview

Sen. Curtis Richardson: Madam Chairman, the total
current expenditure for th e Department of Marine &
Ports, Head 30, is estimated to be $19,572,000, which
represents a decrease of $2,090,000, or a decrease
of approximately 9.65 per cent, over the 2020/21
budget. The decrease was achieved through (1) the
defunding of vacant funded posts; and (2) a decrease
in the department’s operating costs resulting in a modified ferry schedule that was achievable and in line
with the budget allocation.
The Marine & Ports Department’s services
expenditures are set out under the following three
business units and can be found on page B -202 of the
Budget Book:

3006 —West End (Dockyard) cost centres
• 40040—Navigational Aids, $678,000;
• 40140—Tug Service, $1,673,000;
• 40210—Tender Service, $377,000; and
• 40260—Dockyard Maintenance, $3,259,000.

3007 —Centra l (Hamilton) cost centres
• 40090—Ferry Services, $6,742,000;
• 40150— Mooring and Boat Registration,
$285 ,000; and
• 40220— Administration, $2,762,000.

3008 —East End (Fort George) cost centres
• 40100— Maritime Safety and Security,
$1,872,000; and,
• 40180— Pilot Serv ices and Offshore Search
and Rescue, $1,924,000.

Revenue

Sen. Curtis Richardson: You will find Revenue pr ovided on page B -203 of the Budget Book. Madam
Chairman, it is anticipated that in 2021/22 the D e400 29 March 2021 Official Hansard Report

Bermuda Senate partment of Marine & Ports Services will generate approximately $6,004,000. Keep in mind that these a nticipated revenues may be adjusted based on conti nued restrictions in place due to the pandemic. This will
be realised primarily through fees charged for the pr ovisions of the following:
• ferry services;
• tug services;
• boat haulage;
• pilotage fees;
• boat moorings; and
• port dues.

Capital Expenditure

Sen. Curtis Richardson: Capital acquisition expend iture for the department, found on page C -13 of the
Budget Book, is set at $5,648,000. The sum of
$170,000 is set aside for navigational aids , which re presents a decrease of $80,000 below the budget of 2020/21. The capital budget for the vessel traffic
management information system is set at $270,000,
which is also a decrease (over the 2020/21 budget ) of
$80,000. A ne w capital allocation is provided for ferries in the amount of $5,200,000 and represents funds
for the department’s vessel fleet refit as a replacement
project. Also, $8,000 is allocated to the purchase of new computer equipment.

Manpower

Sen. Curtis Rich ardson: Madam Chairman, under
Manpower, t he department’s full-time equivalents
[FTEs ] (found on page B -204 of the Budget Book )
have decreased from 161 to 148 through the defunding of vacant posts.

Performance Measures

Sen. Curtis Richardson: The department’s performance measures, found on pages B -205 through to
B-207 of the Budget Book, remain positive despite the
challenges presented by the coronavirus pandemic
and continue meeting the targets set in line with international standards. Maintaining these l evels continues
to be challenging with the rapidly ageing fleet that r equires extra maintenance. Nonetheless, the depar tment continues to work diligently to manage these
processes and to ensure that the delivery of safe and
reliable services is maintained.
Madam Chairman, the Department of Marine
and Port Services represents one of the most critical operational arms of the Government of Bermuda as it
facilitates the movement of vital shipping commerce in
and out of Bermuda’s ports. Shipping was greatly i mpacted by the coronavirus pandemic with the suspension of all cruise ship [calls] to Bermuda for the 2020
season. There were a total 476 international shipping
movements in Bermuda’s waters over the recorded year, representing a 52.9 per cent decrease in shi pping movements —a direct impact of the coronavirus
pandemic .
The services that the department provides
include pilot boats, tug boats, tender services and the Bermuda Maritime Operations Centre. Additionally,
the department is responsible for the coordination of
international search and rescue operations in the r egion of the North Atlantic, and retains oversight of
overseas seaport security and marine border control
in compliance with international standards. During the 2020/21 fiscal year, the department responded to over
355 search and rescue cases assisting both ships and
aircraft locally and internationally.
Madam Chairman, the Sea Express ferry service—another service provided by the department —
represents a comfortable and efficient means of public
transport supporting the local commuter and visitor
markets that was severely impacted by the coron avirus pandemic. And today ridership remains som ewhat low with signs of slow improvement.
Madam Chairman, the Boats and Moorings
Section is located at the ol d Paget [Post] Office buil ding and continues to provide services to both recreational and charter boats, including moorings alloc ations. In the upcoming year this section will be closely
monitoring the registration and use of moorings to e nsure that the pr inciple of one boat to one mooring applies to all boat owners. So if you own one boat but have multiple moorings, please know that the Boats
and Moorings Section is clamping down.
Madam Chairman, the 2021 cruise ship se ason is somewhat difficult to predic t. The start -up of
scheduled cruise ship calls is fluid. It is anticipated
that once they do start up, they will be at 50 per cent
passenger capacity.
The Department of Marine & Ports continues
to work towards the IMO (Instrument Implementation Code, whic h is the III Code) review, addressing all
gaps identified by the UK Maritime & Coastguard
Agency [MCA], including supporting legislation for
both port and coastal states. The audit date continues
to be pushed back because of the coronavirus pandemic and is expected to take place in May 2021.

Output Measures

Sen. Curtis Richardson: Madam Chairman, the target outcomes for Marine & Ports operations for
2021/22 are to continue delivering the required marine
services in a timely and professional manner to e nsure customer satisfaction, also observing restrictions
put in place as a result of the pandemic.

Major Policy Changes

Sen. Curtis Richardson: Madam Chairman, major
policy changes will be implemented based on the
United Kingdom’s Maritime & Coastguard Agency’s


Bermuda Senate gap analysis undertaken ahead of the upcoming I nternational Maritime Organization’s (IMO) audit in May
2021. These areas of change will include oil pollution
control, ferry operations, off -shore search and rescue,
and better control over the importati on of dangerous
goods through our ports, along with other areas ident ified in the gap analysis. All outlined areas of change
are fully supported by the new Marine & Ports Service
Act 2021 legislation (in its final stages of coming into
law). Bermuda has made great progress in tackling
the identified issues highlighted in the MCA gap anal-ysis and is currently well positioned to succeed in the
upcoming audit.

Plans for the Upcoming Year

Sen. Curtis Richardson: Plans for the upcoming year
will include the following:
• continued educational and training opportunities for departmental staff to international
standards (once the travel restrictions for government business are relaxed) to ensure
the department provides our customers with
safe, reliable and professional marine trans-portation and services ;
• continued progress with the department’s
succession planning to ensure that highly
technical posts within the department are filled
by qualified Bermudians;
• continue providing training for the tug captains
and engine ers ahead of the new tugs coming
into full service, estimated to be in May 2021;
• continue with the refit and replacement of the department’s fleet of vessels;
• progress the renovation project of Marine &
Ports workshops scheduled to commence
June 2021;
• continue repairs to our navigational aids and
offshore beacons;
• installation of a new user -friendly online boats
and moorings registration system scheduled to go live April 2021; and
• review legislative amendments to assist with
the removal of abandoned, dereli ct boats
across Bermuda left behind by hurricanes.
Madam Chairman, I would like to thank the
staff of Marine & Ports Services for their excellent
search and rescue and pilotage services , as well as
for delivering an efficient, consistent and reliable ferr y
service.
Thank you, Madam Chairman. This concludes
the brief for the Department of Marine & Ports Services, Head 30. I now move on to Head 35, the D epartment of Public Transportation.

Thank you, Senator Richardson.
Please proceed.
HEAD 3 5—DEPARTMENT OF PUBLIC
TRANSPORTATION

Sen. Curtis Richardson: Thank you, Madam Chai rman.
Madam Chairman, I would like to present the
budget for Head 35, the Department of Public Transportation, found on pages B -212 through B -215 of the
Budget Book. The m ission of the Department of Public
Transportation is moving Bermuda with a quality public bus service.
Under the expenditure overview, Madam
Chairman, the total current expenditure, on page B -
212 of the Budget Book, is estimated to be
$19,532,000, which is $2,836,000 less than the
2020/21 budget. The department has three business units: Transportation, Maintenance and Admini stration. The budget breakdown is as follows:

3501 —Transportation cost centre
• 45101— Bus Operations, $9,647,000.
3502 —Maintenance cost centres
• 45090—Repair Services, $4,239,000;
• 45115—Inventory Management, $1,656,000.

3503 —Administration cost centres
• 45120— Administration, $3,241,000;
• 45200— Management Support, $749,000.

Transportation, Bus Operations

Sen. Curtis Richardson: Madam Chair man, the public bus service operates 18 hours per day seven days
per week. Additionally, the school bus service oper-ates on weekdays during term time.
The current account expenditure for Bus O perations, cost centre 45010, is estimated at $9,647,000 for 2021/22. This is a decrease of
$1,119,000, or 10.4 per cent less than the prior year’s
budget.

Maintenance and Repair Services

Sen. Curtis Richardson: Madam Chairman, the department employs a team of professionals in repair
and servicing to maintain the fl eet of public buses,
support vehicles and equipment.
The current expenditure for Repair Servicing,
cost centre 45090, is estimated to be $4,239,000 for
2021/22. This is a decrease of $1,385,000, or 24.6 per
cent less, than the prior year’s budget.
Invent ory Management. P arts for vehicles and
equipment are procured, stored, controlled and issued by the Storage Section, which falls under Inventory
Management. The current expenditure for Inventory
Management, cost centre 45115, is estimated to be $1,656,000 for 2021/22. This is a decrease of
402 29 March 2021 Official Hansard Report

Bermuda Senate $524,000, or 24 per cent less, than the prior year’s
budget.

Administration

Sen. Curtis Richardson: The Administration Section
is primarily responsible for developing department strategies, policies and procedures ensur ing that the
people, processes and resources are available to deliver a quality public bus service. The expenditure for
Administration, cost centre 45120, which accounts for salaries, utilities and shared services, is estimated to
be $3,241,000 for 2021/22. This is an increase of
$337,000, or 11.6 per cent higher, than the prior
year’s budget due to the increased electricity costs for
fuelling the new electric buses. This is offset by a corresponding reduction in diesel fuel costs under Repair
Services.
The Management Support Team is respons ible for the selling and processing of bus and ferry fares, and providing administrative services for ac-counts, procurement and human resources. The expenditure for Management Support is estimated to be
$749,000 for 2021/22. This is a decrease of $145,000,
or 16.2 per cent less, than the prior year’s budget.
Madam Chairman, it is anticipated that in 2021/22,
Department of Public Transportation [DPT] will gene rate approximately $2,864,000 in revenue , found on
page B -213 of the Budget Book. This will be attained
primarily from bus and ferry fares.

Capital Expenditure
Sen. Curtis Richardson: Madam Chairman, the capital acquisition estimate for the department, as seen on
page C -14 of the Budget Book, totals $7,394,000.
This is primarily for the acquisition of new electric
buses consistent with the procurement strategy for
replenishment of the aged bus fleet. The capital
budget also includes implementation of a digital fare
media system that will facilitate app- based mobile
ticketing, contactless payment and real -time passenger information. The Digital Fare Media Project aims
to provide frictionless, convenient and secure access
to public transportation.
The automated bus washer is past its useful
service life. This will be r eplaced with a modern sy stem capable of washing the buses and large comme rcial vehicles.

Manpower

Sen. Curtis Richardson: Madam Chairman, the total
complement of full-time equivalents [FTEs] in the new
2021/22 fiscal year is 207, as recorded on page B -214
of the Budget Book. This is 25 fewer FTEs , or
10.7 per cent less, than the 2020/21 budget. The
breakdown of full- time equivalents by each section is
as follows: Cost centre 45000 —Auxiliary Bus Service has
zero full-time equivalents, two less than the pr ior
year’s budget. This cost centre has been merged with
cost centre 45101—Bus Operations.
Bus Operations, cost centre 45010, has 142
full-time equivalents, 15 fewer than the prior year’s
budget , reflecting reduction in the number of funded
vacant posts.
Cost centre 45090 —Repair Servi cing has 45
full-time equivalents, five fewer than the prior year’s
budget [due to] the reduction in the number of funded
vacant posts.
Inventory Management, cost centre 45115,
has been allocated four full- time equivalents . This is
unchanged from the prior year’s budget.
The number of full-time equivalents for the
cost centre 45120 —Administration is four, which is
one less than the prior year’s budget due to the transfer to the newly formed Department of Employee and
Organis ational Development.
And Management Support, under cost centre
45200, has 12 full -time equivalents, a decrease of two
funded vacant posts.
Madam Chairman, I take this opportunity to
thank this dedicated group of individuals for their efforts in deliverin g a safe public bus service to our res idents.

Major Policy Changes

Sen. Curtis Richardson: Madam Chairman, the department is focused on delivering a reliable public bus
and school bus service. To this end, it is replenishing
the aged bus fleet, recruiting operations and maint enance staff, and investing in new technologies. In 2020, with the support of the Rocky Mountain Inst itute, the department concluded an RFP for the next generation of buses. The department will introduce
appropriately sized electric buses at significantly r educed cost while also reducing fuel and emissions
and improving road safety. The department’s moder nisation plan also includes the introduction of digital fare media, real -time passenger information and computer -aided dispatch.

Plans for the Upcoming Year

Sen. Curtis Richardson: Madam Chairman, the D epartment of Public Transportation is committed to
moving Bermuda with a quality public bus service. To
achieve this, the department will implement initiatives that ensure reliability and dependability, improve the
passenger experience and enhance operations. The
department has concluded an exhaustive research
and procurement exercise for appropriately sized low -
emissions buses for Bermuda and in 2021 will take
delivery of its first 30 e lectric buses. To support this,
charging infrastructure will be developed at the Fort
Langton Bus Depot. This initial order will provide


Bermuda Senate meaningful replenishment of the aged bus fleet and
begin the transition to zero emissions.

Asset Management
Sen. Curt is Richardson: Madam Chairman, w ith the
introduction of new technology, the department is committed to technical leadership and enhanced asset management. Continuing investment will be made
in the training, development and recruitment of technicians and tr ades responsible for fleet maintenance.
The department will establish a work planning function
and retool the Maintenance Section to support the
next generation of buses. Considerable improvements
are underway to the facilities and infrastructure.

Passeng er Experience
Sen. Curtis Richardson: The Department of Public
Transportation aspires to be Bermuda’s preferred
transportation solution. To achieve this, the depar tment will focus on improving the passenger exper ience both in person and through technology . The
Ambassador Training programme will continue in
2021 for all front line representatives. The advanc ement of projects such as digital fare media and real -
time passenger information will improve access to the
public bus service and provide for a safe and co nsistent frictionless travel experience.
Madam Chairman, this concludes the brief for
the Department of Public Transportation Services,
Head 35. Madam Chairman, in closing I would like
give special thanks to the Ministry’s Acting Permanent
Secretary, Jasmin Smith; the Director of the Depar tment of Marine & Port Services, Rudy Cann; the Ac ting Director of the Transport Control Department, Terry Spencer; the Director of the Department of Public
Transportation, Roger Todd; the Ministry’s Acting
Controller , Deanna Warren; and the Accounts Team
throughout the Ministry for their hard work during the budget preparation.
Thank you, Madam Chairman. This concludes
the brief for the Ministry of Transport.
Madam Chairman, if I could ask for any questions to be as ked individually per Head at a time. And
also, to save what seems to be a continuing trend to
save time and energy, if anyone asking a question
could have their volume up so that they can hear r esponses. And their microphone is not on mute.
Thank you, Madam Chairman.

Senator Richardson, thank you very
much for the two briefs. They were both very, very informative.
We have 31 minutes left in this debate. And I
would invite any Senator who has questions to ind icate now.
I see Senator Marcus Jones. And we will start with Head 30. So please direct your questions to that Head. And once everyone
has had a chance to speak, then we go to Head 35.
Senator Jones, you have the floor.
We cannot hear you, Senator Jones.

[Pause]

Thank you, Senator Jones. Now we
can hear you.
Sen. Marcus Jones: Now you can hear. Sure.
As I was saying, we do extend a thank -you to
the Junior Minister for giv ing us this brief. And I am
going to do my best to cut down on my questions so
that he has sufficient time to answer them.
Looking at Head 30, page B -202 under bus iness unit 3006, [my] question for the Junior Minister
will be, Will the Dockyard maintenanc e and its complementary operations be moved to the vacant facil ities made available since the America’s Cup event, closer to Cross Island? Once you go through Doc kyard and you see that so much of that space and that capacity can be used that is currently occupied by the Dockyard Maintenance Team, it surely can be used
for revenue- generating and businesses that can a ppeal to the tourists who come on the cruise ships. So
if I can get some clarity on that one.
Same page, business unit 3008, with only one
full-time equivalent being reduced from last year’s
budget, what will be the impact of a $766,000 redu ction in line item Maritime Safety and Security in this
year’s 2021/22 budget? So if the Junior Minister can
give us a more detailed explanation of how that w ill be
impacted, that particular line.
Still on Head 30, business unit 3401 . . . that
is not right. Boy, my notes are a little bit messed up
here. Let me swing over to another question. I am a
little bit off on that one.
Page B -206 under Moorings and Boat Reg ulations, business unit 40150, under that particular category, can the Junior Minister justify the percentage of
removals in last year and this year of —how we can
have removals of moorings of boats of 70 per cent this
year, and last year’s budget onl y coming in at an actual at 30 per cent? How can we justify still having a high percentage of 70 per cent? I think we need to consider having a more realistic percentage of being
able to remove these bad- looking moorings and boats
from off of our waters. A more realistic figure, in my
mind, would make sense. But possibly the Junior Mi nister will have a better explanation for that.
Okay. A couple of questions for Head 35.

Thank you for those questions.
Would any other Senator like to put questions?
Senator John Wight, you have the floor.
Sen. John Wight: Thank you, Madam Chairman.
It is more of a comment than a question. But
on page B -203 in the Revenue Summary, at the bottom there, if we look at the 2019/20 year as being the
last pre- COVID -19-affected year, our revenues were
roughly $5.5 million. And for the coming year, which
will most certainly be affected by COVID -19, we are
expecting an increase of roughly $450,000 increased
revenue. So I guess you could say . . . the question
. . . but it just seems like the revenues for the coming
year are very, very ambitious relative to what I think
they realistically should be. But I think if we can match
the revenues from the 2019/20 year, Bermuda will have done really well. To expect it to go up by
$450,000 is a real climb for us. So anyway, it is just an
observation, not a question.
Thank you, Madam Chairman.

Thank you, Senator Wight.
Senator Smith, I think I saw your hand? Thank
you.

Sen. Ben Smith: Yes. Thank you, Madam Chairman.
Still on page B -203, I just have a question
regarding in the Revenue Summary. Has there been
any thought of doing individual licences for ind ividuals
for boats the same way that we have car licences for
individuals’ cars? One, it would be a revenue stream.
But on top of it, it actually would improve the safety on
our waters. A lot of times in Bermuda, we get by by
luck because things have not happened before. But it
would be an issue where potentially there could be
tiered licences depending on the size of the vessel
that people are going to have.
There would be training for safety. I know that
there are courses that are available for that. Not to
make it too onerous, but at least so that everybody
who is operating a boat or any kind of vehicle on the water would have some indication of the safety and
how they actually deal with being on the water, tying
up ropes, docking, just so that we can have some
comfort that there is safety on our water. And at the
same time, like I said, there is a potential revenue
stream for it. Thank you.

Thank you, Senator Smith.
Are there any other questions on Head 30?
Senator Richardson, there do not seem to be
any other questions on this Head. Would you like to
respond to these, or should we now proceed to ask
questions on Head 35— Public Transportation? Sen. Curtis Richardson: Madam Chairman, I appr eciate that. If we can move to the questions for H ead
35, please.

Okay. We will proceed.
Senator Jones, please make sure we can
hear you.
Sen. Marcus Jones: Yes. Thank you, Madam Chai rman.
Page B -212, under Repair Servicing, we see
there is a reduction of $1.3 million. And corresponding
to that on page B -214, full -time equivalent, on that
same line of Repair Servicing, 45090, there is expected to be five fewer workers within that particular
line item. My question to the Junior Minister would be,
Can you justify the need to reduce those c osts, esp ecially since we have had . . . I realise a lot of these
buses are in poor condition. In the event that we have
a delay in these electric buses coming and we have to
use what we have, I am just concerned that there are
not sufficient bodies and not sufficient funds in there to ensure that we have enough buses functioning.
Also a suggestion that I have even heard in
the community is, Would it not be productive and eff icient if we were able to have a shift at night where
workers can actually be fixi ng the buses between
midnight and 6:00 in the morning when no one is using the buses so that we can maximise the number of
buses that are available on a day -to-day basis?
Also, right there on page B -214, just if I can
get an explanation of what management support is. It
is 12 persons who work in that particular line item, which is 45200— Management Support. If I can get
just a summary of what in fact they actually do. We are excited to see that there are going to be thirty new
electric buses that are coming online. I notice there in
page B -213 under Training, Training has been r educed from $100,000 budgeted for the 2020/21 year
to $40,000 in 2021/22.
I would like to think that with these new electric buses coming online, there is going to be a need for added training of those who are going to be repai ring the buses and for those who are going to be oper-ating the buses. There may be a need for folks to go overseas to get training from the manufacturer. So
can the Junior Minister please give us some sort of
understanding of why, when there is a new fleet of
buses coming in, we are actually reducing the training
budget by 60 per cent? It seems a little bit high to me.
And with that, Madam Chairman, I will leave it
for someone else to comment or ask questions.

Thank you, Senator Jones.
Are there any other questions from Senators
with regard to Public Transportation, Head 35?
Senator Robin Tucker.

Sen. Robin Tucker: Thank you, Madam Chairman.


Bermuda Senate I just have a question on page B -214. And it is
in re lation to business unit 45010—Bus Operations.
The number of positions is being reduced by 14. And
so I just wanted to know if at any point these positions
will be refilled? Or is it the plan to reduce the numbers permanently? Thank you, Madam Chairman.

I can, and everyone else can as well.

Sen. Marcus Jones: Great. Just one last question, a
very important one. On page B -213 I see there that
this Ministry is looking for revenues of $561,000 under
the line item Cash, 8685. My concern and question for
the Junior Minister was, If this cash, this large amount
is expected to be generated, can we confirm that cash
payments for PTB service is allowed for both ferries
and buses? And what security measures are in place to keep that untraceable cash safe?
Thank you.

The Ch airman: Thank you, Senator Jones.
Senator Richardson, I am coming back to you
because that appears to be all of the questions.

Sen. Curtis Richardson: Thank you, Madam Chai rman, and thank you to the Senators for their ques-tions. I am glad that you asked these questions. They
are quite interesting because they lead me to the v ision of the department. With regard to the Marine &
Ports Department, the vision of this Ministry is to move
this industry forward and move this Ministry in a more
consistent manner to provide what the mission of this
department states.
The question by Minister Jones I can quickly
answer. You asked if the Dockyard maintenance will
be moved. The answer is yes. As a matter of fact, be-ing more proactive, the Hamilton as well as the Doc kyard maintenance will be moved to the old Oracle
building up in the Dockyard area. So that is going to
add to something that has been asked of.
Maritime Safety under cost centre 3008 . . .
not cost centre . . . one second. Under the [Moorings]
and Boats Regulations it was asked, the removal of
70 per cent versus 30 per cent. Well, that is pretty directly related to COVID -19. There is less movement in
the waters, and there is less willingness and ability for
people to pay for such movements in the waters.
The revenues, asked by Senator Wight —the
revenues are ambitious for a modest cruise ship se a-son. This Ministry has looked at things with regard to
the cruise lines generating revenue through homepor ting. And what is homeporting? Homeporting creates a
balance of our air and cruise visitors. And with this
initiative, no longer do these travellers need separate classification. Basic scenario —a cruise passenger
books a [cruise] through the cruise line, [and] they will
fly straight into Bermuda from [their] air port. They go
straight to the ship. They will do the ship excursion
cruise. And returning from the cruise, it could be two
parts. We have looked at the option that people may go straight back to the airline, and there may be pe ople who want to come back and stay at a hotel for a
number of days. So all around, this increases the
hospitality benefit. And this is important because we at
the Ministry are strong in saying that there is no tourism without transportation. And the Ministry of Transport aims to cont inue to provide transport in a
safe, reliable and consistent manner.
More specifically to questions asked, individual licences, by Senator Smith. Individual licences for boat operators, this is nothing new. This Ministry of Transport has already made it public, and the Chair of
the Water Safety Council, who is Minister Weeks, he
has already made it public knowledge that these l icences will be looked into, going forward, with that
initiative. And there will be the opportunity for persons
to acquire these li cences if they own and operate a
boat. So it is nothing new. It has already been made
public. And sure, the boating community is well aware
of it already.
The 30 new buses, if I jump onto the buses,
the new electric buses will require less maintenance
as a result of putting together the accounting numbers. The cost for servicing any of the Department of Transportation vehicles at night -time will actually cost
more in overtime.
I just want to impart some knowledge when it
comes to the electric versus [dies el] buses and trai ning, and the concerns of people knowing how to repair these buses and maintenance. Keep in mind that the
electric versus the diesel buses, the chassis remains
the same. All of the mechanical stuff that is needed to
[service] on the diesel buses for the axle and the truck
chassis, this is all going to remain the same. So the training would not be needed and required for that.
The only thing that changes is how these
buses are powered. Being electric -powered, its
maintenance is a lot different. And some would say it
is a lot easier than diesel. But those would be the
people who are more in tune with the electric buses than the diesel. So the training, the cost of the trai ning, I wanted to point out that the investment into trai ning has somewhat increased because the training, the cost of training is included in the purchase of the buses. So it is all intertwined in an accounting fashion to
be there and available for the continued maintenance of these buses.
406 29 March 2021 Official Hansard Report

Bermuda Senate Senator Tucker, as to your questi on . . . I think
it was something to do with the bus [and] how do we
have fewer employees. And that is because we have
permanent vacant posts that have been removed. So
those vacant posts are no longer there. So the num-bers drop naturally as you would see in the trend wit hin the Budget Book itself throughout many ministries,
having removed the funded vacant posts.
If I could look at other questions. As far as the
securing of what Senator Jones has labelled as untraceable cash (I think he said), the Departm ent of
Public Transportation has highly robust security services already in system. And that is not something
that has been overlooked at all.
The vision of this department —I am very
pleased with the questions because I mentioned what
homeporting will do and how that will bring increased
revenue for the entire hospitality market. I also want to point out that other than Ministry of Transportation
Headquarters budget, $21 million went towards the
minimum regulated revenue guarantee that we have now at the a irport that we have had to pay. That is a
significant amount of money. I would like to let people know that $21 million could have paid for so many
things. It could have paid for the complete overhaul of
every four -wheeled government vehicle. Twenty -one
million dollars is even more than what Minister Peets
would have for his Ministry.
You know, it has been the minimum revenue
guarantee that we have at the L. F. Wade Airport,
though that partnership is quite different from what we had in place prior to that agreement. That agreement
is costing us so much more than even the money that
we are looking at paying as a result of it. You know,
we were not able to maybe do things to the upgrades
to the Ministry of the entire bus fleet. That $21 mi llion—you know, our buses are something that we hold
precious to our Ministry. And as a result of not having the money, we were not able to ensure that the bus
fleet was kept up to date. Another thing that we lost
out on is Oasis, which is a class of ship. It is the lar gest class of ships that we could have had. We have
lost an approximate $40 million with $2 million for ev ery call that those ships would have— with the number
of ships that would have come into our ports. So we
could not improve the Dockyard ports in order to f acilitate [those ships].
And we just have to look at the knock -on effect because it is important to realise that this budget is reflecting not only what revenues this Government
is able to generate, but it is also reflecting on the
amount of money that we are losing as a result of
deals that are in place. So I think it is important that
we need to be mindful of that.
I give a lot of respect to the Ministry of F inance because they have done everything that they
can imagine possible. And they have made a really
good effort in putting together this budget. I talked about, mentioned in my brief the fri ctionless transportation, this data that we will be getting
and gaining with these new modern systems. B ecause when I think about what is your optimal bus service, you know, an optimal bus service will require
every existing schedule —it would be 88 buses for wi nter and 65–– which will be 65 operational and 25 to 30
in continuous maintenance. Budget savings will be reached with the removal of unfunded vacant posts ,
as I mentioned earlier. And I just want to let people know that this Ministry is doing all that it can. And we will deliver on the promises of providing a safe and
well-robust public transportation service.
We are diversifying air service revenue o ptions. In air service development, I can mention that
the economy of scale, which is based on —it has been
identified by the Bermuda Tourism Authority that there
are 23 million potential travellers in the tri -state area,
which has been the focal point and remai ns to the target clientele. However, in retrospect it has been ident ified by this Government that 44 million potential trav-ellers—[there are] 44 million potential travellers in the
Caribbean alone. I believe that the Caribbean ought to
be the core focus of the Ministry with nonstop travel
that will benefit what is predicted to be—for every one
Bermudian who leaves Bermuda, we could potentially
get 17 Caribbean travellers into Bermuda. So we
know that we are not a Caribbean Island, but we have very close ties to the Caribbean. And that market must
be tapped into. And I think that it is important for people to realise that this Ministry under the current leadership is doing an amazing job of looking at options to ease the burden on taxpayers, you know, with bi lls
that we have to pay that are just based on bad deals.
And with this said, I want to close in my
statement and answering these questions to say that
this Government has a task to do all that is possible to
generate revenue as a goal to keep our economy in a
viable state. Thank you, Madam Chairman.

Is there any objection to that motion?
I see none.
So approved.

[Motion carried: The Ministry of Transport, Heads 30
and 35, were approved and stand part of the Est imates of Revenue and Expenditure for the year
2021/22.]



Bermuda Senate The Chairman: Thank you again, Senator Richar dson.

Sen. Curtis Richardson: Thank you, Madam Chai rman, and thank you, fellow Senators.

So that concl udes our debate on the
Heads which were selected.
And I would like to call on the Junior Minister
for Finance, Senator Arianna Hodgson, to continue so
that we can close out this portion of our work today.
Senator Hodgson.

Sen. Arianna Hodgson: Thank you, Madam Chai rman.
Madam Chairman, I move that the following
Heads be approved as printed:
• Non- Ministry Department Heads 1, 2, 5, 56,
63, 85, 92, 98, 101;
• Cabinet Office Department Heads 13, 14, 43,
51, 61, 80, 94;
• Ministry of Finance Heads 11, 28, 39, 58;
• Ministry of Legal Affairs and Constitutional Reform Heads 3, 4, 74, 75;
• Minister of Education Heads 18, 4 1;
• Ministry of Health Heads 24, 91;
• Ministry of Labour Heads 44, 5 5;
• Ministry of Transport Heads 48, 34;
• Ministry of Public Works Heads 36, 53, 68, 81, 82;
• Ministry of Youth, Culture & Sport, Head 52;
• Ministry of National Security Heads 8 3, 12;
and
• Ministry of Home Affairs Heads 9 3, 29, 32, 49,
79, 89, 97.

Is there any objection to that motion?
I see none. So those Heads are approved.
Thank you, Senator Hodgson.
[Motion carried: The Estimates of Revenue and E xpenditure for the Financial Year 2021/22 were consi dered by a Committee of the whole Senate and
passed.]

Sen. Arianna Hodgson: Thank you, Madam Chai rman.
Madam Chairman, I move t hat the Capital
Account Estimates be approved and stand part of the Bill.
I move that clauses 1 through 6 of the Bill, t ogether with Schedule 8, inclusive, be approved and
stand as part of the Bill.
I move that the preamble be approved and
that the title stand as part of the Bill. And I move that
the report of the Committee on the Bill entitled the A ppropriation Act 2021 be adopted by the Senate.

Is there any objection to that motion?
I hear none. I see none.
Therefore, it is all approve d.

[Motion carried: The Appropriation Act 2021 was considered by a Committee of the whole Senate and
passed.]

Sen. Arianna Hodgson: Madam Chairman, I move
that the Bill be now read a third time. I move that the Bill entitled the Appropriation Act 2021 do now pass.

We have to come out of Committee
and let Madam President take over again.

Sen. Arianna Hodgson: I do apologise.
The Clerk: If the Committee’s work is complete then,
Madam Chairman, you can turn over to Madam Pres ident.

Sen. Arianna Hodgson: Madam Chairman, I move
that the Committee rise and report . . . should I report
progress?

The Clerk: No, no. You jus t have to move that the
Committee report its findings to the Senate.

Sen. Arianna Hodgson: Madam Chairman . . .

Thank you, Senator Hodgson.
And I am handing back over to Madam Pres ident. Thank you very much.

408 29 March 2021 Official Hansard Report

Bermuda Senate Senate resumed at 7:12 pm

[Sen. the Hon. Joan E. Dillas -Wright, President, pr esiding]

REPORT OF COMMITTEE

APPROPRIATION ACT 2021

ESTIMATES OF REVENUE AND EXPENDITURE
FOR THE YEAR 2021/22

The President: Thank you, Senator Arianna Hodgson. Thank you also to both Senator Simmons and
Senator Wight for handling the Committee.
So the Committee has risen and rep orted to
the Senate. Is there any objection to that motion?
No objection.
Senator Arianna Hodgson, it is over to you for
the third reading.

BILL

THIRD READING

APPROPRIATION ACT 2021

Sen. Arianna Hodgson: Madam President, I move
that the Bill be now r ead a third time.

The President: Is there any objection to that motion?
No objection.

Sen. Arianna Hodgson: Madam President, I move
that the Bill entitled the Appropriation Act 2021 do now
pass.

The President: Is there any objection to that motion?
No objection. Therefore, the Appropriation Act
2021 is passed.
[Motion carried: The Appropriation Act 2021 was read
a third time and passed.]
The President: Thank you, Senator Arianna Hodgson. And thank you, everyone, for your participation in
the debat e process for the Budget Debate.
We will now move on to the Orders of the
Day, and the next Order of the Day is consideration of
the draft Regulations entitled the Bermuda Immigr ation and Protection (Rental and Use) Amendment
Regulations 2021. And this is in the name of Senator
Darrell, Junior Minister of the Cabinet Office.
You have the floor.
Sen. Owen Darrell: Lovely good evening to you,

And good evening to you.
Sen. Owen Darrell: Madam President, I move that
the Senate do now take under consideration the draft
Regulations entitled the Bermuda Immigration and Protection (Rental and Use) Amendment Regulations
2021 .

The President: Is there any objection to that motion?
No objection.
Carry on, Senator Darrell.

Sen. O wen Darrell: Madam President, I move that
the said draft Regulations be approved and that the
following message be sent to Her Excellency the
Governor.

The President: Is there any objection to that motion?

The Clerk: Do you want to do your brief?
The P resident: Oh, Senator Darrell. Have you got a
brief? You need to read your brief.

The Clerk: And they will do the debate, and then you
move that the Regulations be approved.

The President: Yes. We are back in the Senate pr ocess now. So, Senators, you need to move and then
read your briefs, and follow the usual process.

Sen. Owen Darrell: Madam President, can you move
on to number 3 until I can figure out where this brief
is?

The President: Certainly.
Senators, we will now take on item number 3
on our O rders of the Day, which is consideration of
the Draft Regulations entitled the Government Fees
Amendment (No. 2) Regulations 2021. And that is in
the name of Senator Hodgson, Arianna Hodgson, the
Junior Minister for Finance.
Senator Hodgson, you have the floor.

DRAFT REGULATIONS

GOVERNMENT FEES AMENDMENT (NO. 2)
REGULATIONS 2021
Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President, I move the Senate do now
take under consideration the draft Regulations entitled
the
Government Fees Amendment (No. 2) Regul ations 2021 .

The President: Is there any objection to that motion?
No objection. Carry on, Senator Hodgson.



Bermuda Senate Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Every two years the Government reviews all
fees charged for government services. This review is
to ensure that there is reasonable cost recovery for the provision of the various services offered by a
range of government departments.
Government fees were last reviewed and
amended in 2018 and were increased generally by 5 per cent. The Government took the decision not to
amend government fees for 2020/21; the next scheduled review and fee increase would have been due
next year, 2022.
Madam President , as announced in the
2021/22 Pre-Budget Statement , Government will be
amending a few of the government fees in 2021, while other government fees will remain at their 2018 rate.
Madam President, t he following fees within these regulations will be amended within the existing Heads in
the revised 2021 Fee Schedule and are as follows:
• Head 14: Children Act 1998, provisions section 3(a), (b), (c) and new fee section 6.
• Head 24: Electricity Act 2016, new fee section
6.
• Head 42: Marine Board Act 196 2, all fees i ncreased by 5 per cent, exception section 6
remains at 2018 rates.
Thank you, Madam President .
The President: Thank you, Senator Arianna Hod gson.
Would any Senator care to speak on this
brief?
Senator Marcus Jones, I see you . . . you
have the floor.
Sen. Marcus Jones: Thank you, Madam President.
We have no objections to this piece of legisl ation. We understand it is administrative in nature, i ncreasing the various number of fees. That has got to be done before April the 1
st in time befor e it expires.
So we support these [Regulations], Madam President.

The President: Would any other Senator care to
speak on this brief?
No? Seeing none, hearing none, Senator
Hodgson, it is back over to you.

Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President, I move that the said draft
Regulations be approved and that the following mes-sage be sent to her Excellency the Governor.
“May it please Your Excellency:
“The Senate, having had under consideration
the Draft Regulations entitled the G overnment Fees Amendment (No. 2) Regulations 2021, proposed to be
made by the Minister of Finance under the provisions
of section 2 of the Government Fees Act 1965, have
the honour to inform Your Excellency that the Senate
has approved said Draft Regulations.”

The President: Is there any objection to that motion?
No objection.
A suitable message will be sent.

[Motion carried: Draft Regulations entitled Gover nment Fees Amendment (No. 2) Regulations 2021
were approved.]

The President: Thank you, Senator Hodgson.
We will now move on to item number . . . oh, I
should check to see whether or not . . . Senator Darrell, are you ready to resume?

Sen. Owen Darrell: Not quite. I am still working on it,

All right. Then we will move on to item
number 4, which is the Customs Tariff Amendment
Act 2021. And that is also in the name of Senator
Hodgson.
And you have the floor.

BILL

SECOND READING

CUSTOMS TARIFF AMENDMENT ACT 2021

Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President, I move that the Bill entitled
the Customs Tariff Amendment Act 2021 be now read
a second time.
The President: Is there any objection to that motio n?
No objection.

Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Honourable Members are requested now to
give consideration to the Bill entitled Customs Tariff
Amendment Act 2021. Madam President, this Bill pr oposes to amend the Customs Tariff Act 197 0 (the
principal Act) with measures that introduce certain
new end- use duty relief and reform selected existing
end-use duty reliefs. The measures of the Bill affect
the Fifth Schedule to the principal Act and make consequential changes to certain outlying statutory i nstruments.
In support of the Estimates of Revenue and
Expenditure the Government promised that we will
410 29 March 2021 Official Hansard Report

Bermuda Senate through legislation and regulation create an enviro nment that encourages innovation, entrepreneurs,
businesses and start -ups. Madam President, in partial
fulfilment of that promise, this Bill proposes to intr oduce both new and amended end- use relief that affords zero and concessionary rates of duty for approved businesses.
Madam President, the Bill proposes to intr oduce new end- use CPC 4237 providing 100 per cent
duty relief for goods imported for and used wholly and
exclusively for business purposes by an approved business. Under this new business end- use relief, the
Minister will have enhanced authority and flexibility to
approve appropri ate businesses and goods for import
duty relief.
The President: Sorry, Senator Hodgson. You are fading in and out of sound. So can you—

[Crosstalk]

The President: Senator Hodgson?
Sen. Arianna Hodgson: The Minister will decide the
description and quantity —yes?
The President: Senator Hodgson.
Sen. Arianna Hodgson: Yes, Madam President?

The President: I am sorry. But you have been fading
in and out. And we have not heard what you had to
say a few minutes ago. Can you repeat what you just stated, pleas e?

Sen. Arianna Hodgson: I will try and switch to the
mobile data. Can you just give me one second?

The President: Yes, I will. Thank you.

Sen. Arianna Hodgson: Going offline.
[Pause]
[Inaudible conversations ]

Sen. Arianna Hodgson: I hope that this is a bit clea rer. Shall I start at the beginning? Or did it cut off at
some point? Are you able to hear me, Madam Pres ident?

The President: I am hearing you; sorry. Carry on.

Sen. Arianna Hodgson: Okay. Perfect.
Madam President, this Bill proposes to intr oduce new end- use CPC 4237 providing 100 per cent
duty relief for goods imported for and used wholly and
exclusively for business purposes by an approved
business. Under this new business end- use relief, the Minister will have enhanced authority and flex ibility to
approve appropriate businesses and goods for import duty relief.
This new relief requires the Minister to publish
policy guidelines on the approval of the scope and quantity of goods for any particular approved bus iness. The policy guidelines w ill be published on the
government portal.
Madam President, the policy guidelines will
provide that the Minister will decide the description and quantity to be approved in any approved business notice made under new CPC 4237 on a case- by-case
basis and i n accordance with the following policy crit eria:
1. The Minister will only approve businesses and
goods where he is satisfied that the business
undertaken in question is of sufficient benefit to the general economy of Bermuda, or the
balance of payments (expo rts of locally manufactured goods).
2. The goods must be appropriate to the relevant
approved business.
3. Approved goods may include raw materials;
mixtures or combinations of materials or substances; finished goods, whether or not pr esented unassembled or disassembled; i ncomplete or unfinished goods; and composite
goods consisting of different materials or
made up of different components or modular
parts.
4. The quantity of approved goods may take account of normal wastage in processing, co nstruction or installat ion; damage; natural det erioration; wear and tear ; or obsolescence.
5. In deciding the grant or scope of relief, the
Minister may take account of (a) other avail able or granted drawbacks, exemptions, reliefs, remissions, and concessions; (b) other assi stance received from Government or other organisations such as grants, duty deferment,
Bermuda Economic Development Corporation
loans; (c) the need for relief in any particular
case bearing in mind the existing level of capitalisation of any particular business; (d) the
uniqueness of the approved business with a
view of encouraging appropriate diversific ation of local business undertakings; and
(e) the suitability of the business with a view
to encouraging undertakings that are not del eterious or harmful to Bermuda’s reputation,
culture and ethos.
6. The Minister may tailor the scope of relief to
address any potential mischief such as the
unwanted or unintended effects of any special
duty rate.
7. The Minister will treat applications from similar businesses equitably so as to avoid trade di stortion, subject nonetheless to the foregoing
criteria.


Bermuda Senate Madam President, the Bill also proposes to i ntroduce new end- use CPC 4238 with a concessionary
duty rate of $105 per kilogram for loose- leaf tobacco
imported for use in the local commercial manufacture
of tobacco products. A normal duty rate for loose- leaf
tobacco is $500 per kilogram. Concessionary rate is
intended to assist local commercial manufacturers of
cigarettes and cigars to maintain competitive pricing of
their products in relation to imported cigarettes and
cigars , and thereby continue to employ Bermudian
workers with local manufacturers.
Madam President, the Bill further proposes to
amend existing CPC 4229, goods for local commercial
manufacturing, to allow local manuf acturers of tobacco products and fermented alcoholic beverages (such
as beer) to be designated as approved businesses
and benefit from the 5 per cent concessionary rate in
respect of goods such as manufacturing machinery, equipment and tools. CPC 4229 currently provides
duty relief for goods for local commercial manufacturing but , unhelpfully , excludes manufacturing of tobacco and alcohol products.
Madam President, I now turn to the proposed
reform of selected existing end- use reliefs. Madam
President, the Bill proposes to repeal and replace existing end -use CPC 4110, school equipment, statio nery and educational supplies, with a new CPC 4110, goods for educational institutions. The existing CPC
4110 is currently , unhelpfully , restricted to registered
school s only and to a limited scope of qualifying
goods. Under this new education end- use relief, the
Minister will have enhanced authority and flexibility to approve any appropriate educational training or d evelopmental institution for import duty relief.
The Minister will also be able to tailor the
scope of qualifying goods in any particular case. This
new relief requires the Minister to publish policy guidelines on the approval of the scope and quantity of
goods for any particular approved institution. Policy
guidelines will be published on the government portal.
Madam President, those policy guidelines will provide
that the Minister will decide the description and quant ity of goods to be approved in any approved institution
notice made under the CPC 4110 on a case -by-case
basis and in accordance with the following policy crit eria:
1. The description of goods approved must be
appropriate to the particular object and purposes of the relevant approved institution.
2. Approved goods may include (a) raw mater ials; (b) mixtures of combinations of material or
substances; (c) finished goods whether or not
presented as unassembled or disassembled;
(d) incomplete or unfinished goods; (e) composite goods consisting of different materials
or made up of different components or mod ular parts.
3. The Minister will only approve goods where he is satisfied that they will be of sufficient benefit to those enrolled in an approved inst itution.
4. Approved goods must be in a quantity appr opriate to the physical size, enrolment num-bers, and nat ure of the relevant approved i nstitution.
5. The quantity of approved goods may take account of normal wastage in processing, co nstruction or installation, damage, natural det erioration, wear and tear, or obsolescence.
6. In deciding the scope of relief, the Minister
may take account of (a) other available or
granted drawbacks, exemptions, reliefs, r emissions and concessions; (b) other assi stance received from Government or other organisations such as grants, duty deferments
or Bermuda Economic Development Corpor ation loans; and (c) the need for relief in any
particular case, bearing in mind the existing
sources through level of funding of any parti cular approved institution.
7. The Minister may tailor the scope of relief to
address any potential mischief such as t he
unwanted or unintended effects of any special
duty rate.
8. The Minister will treat applications of similar
institutions equitably, subject nevertheless to
the foregoing criteria.
Madam President, the Bill proposes to amend
existing CPC 4140, goods for youth organisations, to
remove the specific reference to St. John Ambulance
Brigade, which relief is covered elsewhere. The Bill
also proposes to relax the end- use conditions and
restrictions to permit the reasonable use in common of qualifying goods by pers ons other than approved organisations .
Madam President, the Bill proposes to intr oduce new end- use CPC 4236 that consolidates and
rationalises existing duty relief for certain international organisations. The structure of the new relief helpfully
affords t he Minister discretion to extend duty relief to
such other international organisations as may be expedient from time to time. This new relief requires the
Minister to publish policy guidelines on the approval of
the scope and quantity of goods for any part icular a pproved institution. The policy guidelines will be published on the government portal.
Madam President, th ese policy guidelines will
provide that the Minister will decide the description
and the quantity of goods to be approved in any approved organisation notice made under CPC 4236 on a case- by-case basis and in accordance with the following policy criteria:
1. The description of goods approved must be appropriate to the particular mission of the
relevant approved organisation.
2. Approved goods may incl ude (a) raw mater ials; (b) mixtures or combinations of material s
or substances; (c) finished goods whether or
412 29 March 2021 Official Hansard Report

Bermuda Senate not presented unassembled or disassembled;
(d) incomplete or unfinished goods; and
(e) composite goods consisting of different
materials or made up of different components
of modular parts.
3. Approved goods must be in a quantity appr opriate to the scale of the activities of the rel evant approved organisation in Bermuda.
4. The quantity of approved goods may take account of normal wastage in processing, construction or installation damage, natural det erioration, wear and tear, or obsolescence.
5. In deciding the grant or scope of relief, the
Minister may take account of (a) other avail able or granted drawback exemptions, reliefs,
remissions and concessions; and (b) other
assistance received from Government or ot her organisations such as grants or duty de-ferments.
6. The Minister may tailor the scope of relief to
address any potential mischief such as the unwanted or unintended effects of any special
duty rate.
7. The Minister will treat similar organisations
equitably , subject nonetheless to the foreg oing criteria.
Madam President, the Bill also proposes to i ntroduce a new end- use CPC 4239 for goods for the
NASA Space Flight Temporary Mobile Tracking St ation. Currently , the NASA Station enjoys temporary
importation relief under CPC 5033. However, it transpires that NASA has need to keep certain goods for
the station in Bermuda for longer than the statutory six-month period of importation. The introduction of
this ne w end -use relief is done to perfect the range of
duty relief afforded for the NASA Station in accor dance with the agreement between NASA and the Government of Bermuda. This is the agreement between the National Aeronautics and Space Admi nistration of the G overnment of the United States of
America and the Ministry of Economic Development of
the Government of Bermuda for a space flight tempo-rary mobile tracking station, dated of March 7, 2012.
Madam President, I should mention that an
amended CPC 4110 and ne w CPCs 4236 through
4238 will require the Minister of Finance to make no-tices to approve the institutions, organisations and
businesses that are to be eligible for the end- use relief
and to approve the applicable description and quantity
of qualifying goods in each case. Such notices do not
form part of this Bill but will be done by notice in the
official Gazette.
Madam President, in addition to its principal
measures, the Bill proposes to make certain other
consequential revocations and repeals . It also m akes
clarifying amendments to the title of four existing Customs tariff approval notices to specify the particular
CPC codes to which they relate.
Thank you, Madam President. The President: Thank you, Senator Hodgson.
Would any Senator care to speak on this Bill?
Senator Jones, are you indicating you want to
speak? You have the floor.

Sen. Marcus Jones: Madam President, we recognise
the intent of the Government in giving the Minister broad powers when it comes to giving Customs tariff
relief for certai n sectors. We see the wisdom in doing
it. We are a little bit concerned and would watch car efully the products that may be questionable. But we understand why the Government is doing it, and we
support it. Thank you, Madam President.

The President: Thank you, Senator Jones.
Would any other Senator care to speak on
this Bill?
Hearing none, it is over to you, Senator Hod gson.
Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President, I move that the Bill entitled
the Customs Tariff Amendment Act 2021 be now read a second time.
The President: Is there any objection to that motion?
No objection.

SUSPENSION OF STANDING ORDER 26
Sen. Arianna Hodgson: Thank you, Madam Pres ident.
I move that [Standing Order] 26 be suspended
in respect of this Bill .

The President: Is there any objection to that motion?
No objection.

[Motion carried: Standing Order 26 suspended.]

BILL

THIRD READING

CUSTOMS TARIFF AMENDMENT ACT 2021

Sen. Arianna Hodgson: Thank you, Madam Pres ident.
I move that the Bill entitl ed the Customs Tariff
Amendment Act 2021 be now read a third time.

The President: Is there any objection to a third reading?
No objection.

Sen. Arianna Hodgson: Thank you, Madam Pres ident.


Bermuda Senate I move that the Bill entitled the Customs Tariff
Amendment Act 2021 . . .

The President: —do now pass.
Is there any objection to that motion?
No objection. The Bill is passed.

[Motion carried: The Customs Tariff Amendment Act
2021 was read a third time and passed.]

The President: Thank you, Senator Hodgson.
We w ill now move on to the next item —

I am sorry to interrupt you at this time. I would just like to make a recommendation. Our frontline officers at Health are
standing by. And in the interest of making sure they
are actually keeping the country safe, we were won-dering if we could actually do number 8, which is the
Bermuda Health Council Amendment Act so that once we are done with that we could let our health workers,
who are busy with COVID -19, get about keeping the
country safe.
The President: Absolutely, Minister Peets.
So we will have then the second reading of
the Bermuda Health Council Amendment Act 2021, and this is in the name of Senator Richardson, the
Junior Minister of Health. You have the floor, sir.

Sen. Curtis Richardson: Thank you for your understanding, everyone.
Madam President, I mov e that the Bill entitled
the Bermuda Health Council Amendment Act 2021 be
now read a second time.

The President: Is there any objection to that motion?
No objection.
Carry on, Senator Richardson.

BILL

SECOND READING

BERMUDA HEALTH COUNCIL
AMENDMENT A CT 2021
Sen. Curtis Richardson: Madam President and
Honourable Senators, I appear before you this even-ing to introduce the Bill entitled the
Bermuda Health
Council Amendment Act 2021 , hereinafter “the Bill.”
Madam President, the Bermuda Health Cou ncil Act 2004 gives the Bermuda Health Council (the
Council) the authority to regulate the price at which drugs are sold to the public under section 5(h). The
Act also pr ovides for the Minister to make regulations
as are necessary for carrying out or giving effect to
the Act as pursuant to section 15(1)(h).
Madam President, the Bermuda Health Cou ncil Amendment Act 2021 will give effect to the Coun-cil’s authority to regulate drug prices by providing for
the Bermuda Health Council (Drug Formulary) Reg ulations 2021 under which the Bermuda Drug Form ulary (or the drug formulary), will be established. The drug formulary will provide for the list of drugs to be
sold at a regulate d price to the public.
As previously stated, Bermuda’s high cost of
health care and ageing population and an increasing
incidence of chronic diseases such as diabetes all
contribute to the burden felt by many in the community. Even though we can appreciat e that science co ntinues to give us new medication and treatments for managing our health, it has been clear for at least the
last 10 years that our people are concerned about the
price that they have to pay for these medicines. In
fact, the cost of medications is the largest out -ofpocket health expenditure for most.
Madam President, while insurance covers
80 per cent of the cost of the majority of the medic ations that we use, some medications costs tens of
thousands of dollars. And for those with chroni c cond itions, having to pay 20 per cent of every single medication that they need quickly becomes very expen-sive. For seniors on FutureCare, the coverage for
medication comes with a cap of $2,000 per year. F inancial Assistance pays for its clients to recei ve pr escription medications; however, those not on Financial Assistance but with the Health Insurance Plan (HIP) must pay for all medications out of pocket. This has
been underscored during the current coronavirus
pandemic as more companies move their empl oyees
to HIP, leaving them without equitable access to medications.
Madam President, at a time when access to
medication is not promised, medications that can keep
people out of hospital, away from life- changing complication, we need to have more regulat ions to combat
their cost. We have to purchase these medications at better cost in the international market, and we have to
be more efficient locally so that savings can be seen
in the hands of our residents. Right now, cost controls, price setting, cost r egulation, cost limits and the additional fees for medications are privately set by private
companies without government control or intervention.
While many may say private industry is best
at managing retail products, experts including the
World Health O rganization and Pan American Health
Organization consistently urge country governments
414 29 March 2021 Official Hansard Report

Bermuda Senate to become more involved in the process of buying and
regulating medications . They know that health sy stems’ affordability is strengthened by the ability of a
country to be efficient in its handling of prescription
medication. While all pharmaceuticals must be purchased abroad and are imported duty free, there is
currently a lack of clarity around the pricing structure
of drugs at the final point of sale to the public. Som e
pharmacies provide discounts; some do not. Some
use their own relationships to produce medication for
their pharmacy at better prices, while others only pr ocure through the major importers. Each of these i nconsistencies leads to a variation in price. And without
an easy way to price- shop, consumers can be left out
of luck —out to the luck of the draw.
Investigation undertaken by the Health Cou ncil, including extensive stakeholder consultation with public and private insurers, pharmaceutical wholesalers, pharmacy owners, the Pharmacy Council, phys ician representatives and others identified an introduction of a national drug formulary as an appropriate means by which drug affordability could be proceeded. This included more than 35 meetings, either co llectiv ely or individually, with these relevant stakehol ders. The process of consultation has been rigorous and has extended over multiple years and across multiple governments . While consultation decreased at
the onset and during the pandemic, the concepts that
have been discussed and dissected over time remain
true to the goal. The Health Council remains commi tted to the involvement of all parties as this work is i mplemented and practices are refined.
Madam President, per the Bermuda Health
Council (Drug Formul ary) Regulations 2021, the Bermuda Drug Formulary will comprise the list of medic ations and other products used in medical treatments to
be sold at a regulated price to the public. This list of
clinically relevant medications will leverage current
science and evidence to promote best prescribing
practices for the conditions that our people are living with. The purpose is not to control the price of every
medication sold in Bermuda, but to focus on the list of
common, essential medications that treat well -
documented public health concerns such as diabetes,
hypertension, cardiovascular disorder and pulmonary
disease. Select medications such as Prednisone, used for the treatment of arthritis, blood disorders,
cancer and eye problems, along with associated
products and devices used in medical treatments will
be included on this list.
As we continue to obtain data on our public
health profile, so shall medications be added to and deleted from this list. This list is to be responsive to
our national priorities for health care and it will include
feedback from health professionals and pharmacists
on the ground.
Madam President, as Honourable Senators
will be aware, affordable universal health care for all is one such national priority of this Government. It is a multi-year phased project, but immediate steps can be
taken to reduce the costs for residents. Implement ation of a national drug formulary is a step we can take
now to reduce the costs to patients and provide relief
to those on fixed incomes. A literature re view of 26
research studies on the topic shows that most studies
found that drug formulary policies reduced costs and
did not negatively impact patients.
Madam President, the regulations provide for
the Health Council to be advised on the drug form ulary b y a pharmacy and therapeutics committee as
appointed by the Minister in consultation with the
Council. The pharmacy and therapeutics committee
will have a key role in, among other matters, evaluating drug utilisation in Bermuda and assessing new
drug class es and clinical indicators. The committee
will also determine how medical products will be added to or deleted from the drug formulary. The commi ttee will develop its recommendations on the drug fo rmulary’s list of medications for final approval by the
Bermuda Health Council. In doing so, the committee
will make decisions that are supported by scientific
evidence and appropriate standards of practice.
The committee will comprise a member of the
board of directors of the Council who shall be the chairperson of the committee, a member of the secr etariat of the Council, a representative of the pharm aceutical market in Bermuda, a representative of the health services market in Bermuda, and one international member representing the pharmaceutical market in the r egion. The legislation also calls for the appointment of up to four additional members such as
importers, pharmacy owners or experts in the health
field of high pharmaceutical demand. Subcommittees
can also be formed with ad hoc members based on
the clinic al topic of interest. For example, if a cancer
treatment is to be discussed, the committee will invite an oncologist to participate.
Madam President, the Government is aware
that Jamaica and Islands of the eastern Caribbean
have well -established drug for mularies and procur ement mechanisms in place, and we will look to engage a committee member from a sister island. The
reason for including international representation on
the committee is to gain better insight into the markets and trends in similar jurisdictions. It is notable that
Bermuda pays much more for the same drugs than
these counterpart countries. So we will seek common
ground to achieve savings. The Eastern Caribbean
created a process, although not easy, which resulted
in a savings of 20 per cent a year within its pharm aceutical market. It is these insights that can lead to
reducing the price that a vulnerable senior may pay
for a drug that will keep him or her out of the hospital.
Madam President, under the regulations, to
support understanding of the local use of medications
and the conditions they can best treat, the Council will
have the authority to require the submission of select
data from insurers, pharmacies, medical practices,


Bermuda Senate hospitals and/or importers in respect of medical products. Th e purpose is to assist in the proper maint enance of the drug formulary and fair setting of drug
prices. Price setting must be based on the actual data
available so that prices are not set lower than the cost at which a drug can be bought from the internati onal
markets.
Madam President, it is important to point out
that the basis of a drug formulary is partially in place
already. Beginning in 2017, the Health Council undertook research and consulted with pharmacies, phar-maceutical professional bodies, the Pharmacy Cou ncil, local importers, physicians and insurers and r eviewed claims data to create a list of medications that are critical for our common chronic conditions. The list includes medications such as insulin, used in the
treatment of diabetes; Rosuv astatin, used in the
treatment of high cholesterol; and penicillin, used to fight infection. The Council published this list as the
Consumer Price List in February 2018. The regul ations provide for the Consumer Price List to be used
on the initial drug for mulary.
Information about the process of developing
this list and the consultation undertaking can be found
on the Council’s website under Resources, Consumer
Pricing Guidance for Prescription Drugs.
Madam President, for the purpose of monitoring complia nce with and the safety of the drug form ulary, national drug codes will be established by the
Council. The drug codes will be unique 10- digit refe rence numbers associated with all of the medical products making up the Bermuda drug formulary and will
be required for all prescription medications whether or not part of the formulary. The regulations will require
these codes to be stated on transaction documents.
These invoice or receipt documents show what is b eing procured, imported, purchased at the pharmacy
and reimbursed by insurers. In addition, the reference number will be listed on the label of the drug that is
dispensed to the consumer.
Madam President, at present it is not possible
to accurately ascertain what drugs are imported, in what quantities and at what cost. The implementation of national drug codes will enable [improved] tracking
and reconciliation of these data. Most immediately,
the Council will work with dispensing pharmacies to implement the code on drug labels as would be r equired for ins urance claims in any case. Recognising
many systems in Bermuda are paper based, a full i mplementation will rely on actions by international vendors and others.
The implementation of a standard reference
number will be very important for optimising inventory
management of prescription drugs on Island, which
will reduce the amount of unnecessary waste of these
products. While these products will in the short term introduce some administrative burden, the Health
Council is working with local pharmacy market r epresentatives to create options for the various small and large pharmacies to achieve the same date requir ements without significant cost.
The Health Council anticipates that the rollout
of the drug formulary will take place in phases, and in
that regard will develop a roadmap for implementation
which will be shared and discussed with stakeholders.
Madam President, to achieve cost -effective
best-price medical products, the regulations also pr ovide for the Council to participate as a negotiator on
behalf of Bermuda in the procurement of those products from international and local vendors. In so doing, the Council may cooperate with the Government, any
pharmacy, or other supplier. The Council anticipates
efficiencies in procurement through better bidding
processes. A significant goal of this part of the legisl ation is to achieve optimum volume discounts so that those savings can be passed on to our community members.
Finally, Madam President, the regulations
make it an offence to fail to comply with
(a) requirements to appropriately dispense medic ations for treatment in accordance with the Bermuda
Drug Formulary; (b) sale prices stipulated in the drug
formulary; (c) requirements to submit information and
data to the Council; and (d) requirements to use the
national drug code. A person is liable on summary
conviction to a fine of up to $50,000.
Madam President, this represents the full
amendments and regulations proposed by this Bill.
With these remarks, I am pleased to introduce this Bill
today. Thank you, Ma dam President.
The President: Thank you, Senator Richardson.
Would any Senator care to speak on this Bill?
Senator Wight, you have the floor.

Sen. John Wight: Thank you, Madam President.
I should start off by saying that I want to cite a
conflict of interest. I am the CEO of BF&M, and one of
our divisions is health insurance. So I put that up front.
This issue has many sub -issues under it. I
would say [that with] my research in the last week and discussions with the Bermuda Pharmacy Owners A ssociation, I guess the comment about much consult ation . . . I might challenge that comment just based on
taking that Association at their word. I understand that
a letter had been sent [by the Association] to the
Health Council on April 12
th, 2019, and it has not been
responded to yet, with their opposition to some of the
elements in this Bill.
So I start by saying that there are pros and
cons. It is a very noble idea. Everybody wants to r educe the cost of health care in Bermuda; that is a very
noble cause, without question. I would say that . . . I
will ask some questions. Will the current wholesalers
in Bermuda continue to be the purchasers of drugs
going forward? Or will Government or the Health
Council be involved in the acquisition of drugs going
forward under this Bill? Or will it remain [with] the cu r416 29 March 2021 Official Hansard Report

Bermuda Senate rent wholesalers? Because obviously the challenge
that was [put forth] made reference to the difference
between what we buy it for in Bermuda and then sell it
for—

[Crosstalk]

An Hon. Senator: Madam President , you are not on
mute. Madam President, you are not on mute! You
are not on mute. Madam President.

The President: Thank you.

Sen. John Wight: Yes, so I guess my first question:
Will Government or the Health Council be part of the
process going forward? W ill they be acquiring drugs
directly? Or will the private wholesalers that supply Bermuda continue to be in that role, going forward?
That would be my first question.
I guess a second question is, you know, there
are many ways to reduce the cost of health care. And
reference was made to the out -of-pocket expenses,
which is not good for anybody. But as we know, with
generic drugs, typically 100 per cent of generic drugs
are reimbursed [to] people in private health plans. And
we know that more and more peopl e are choosing
that option versus the brand choices which do cost,
you know, a co- pay. So I guess, in just researching
also some of the islands of the Caribbean, yes indeed, there are instances of being able to purchase drugs at
reduced prices [compared to] where Bermuda is right
now. That does come with, in some cases, some additional risks. When drugs are purchased from . . . some
of the cheaper drugs are purchased from countries
that are, I would say, less respected than the regulated countries that we are purchasing our drugs from at
the moment in Bermuda.
So I think [it is] a very noble cause to consider
all alternatives for reducing health care costs. But I
would just . . . I think the devil is in the detail with how
we proceed forward with this one. So I will just caution
that we need to put together a very strongly governed
group to make sure that we achieve the objective that the Government is putting forward on this one.
Thank you, Madam President.

[Inaudible interjections ]

The President : Thank you, Senator Wight.
I believe Senator Michelle Simmons has indicated she would like to speak.
So you have the floor.

Sen. Michelle Simmons: Thank you, Madam Pres ident.
Madam President, as was noted in the brief
by Senator Richardson, the Health Counci l was esta blished in 2004. And one of its functions was to regulate the price at which drugs are sold to the public. Obviously, work has been done behind the scenes on
this for quite some time. And I think it is fair to say,
Madam President, that we are al l concerned by the
cost of health care in Bermuda in general. And ther efore, we are anxious to see steps taken to reduce those costs.
I will give you an example. As Senator Wight
mentioned a minute ago, I think it has been more than 10 years now that phar macies have been encouraging
clients to use generic drugs. And that has already helped to reduce prescription costs. If this would be more widely accepted by the general public, I think we
would continue to see prescription costs come down.
However, there are still many people in our community who are demanding to have the branded drug. I
was wondering, Madam President, if incentives can
be built into insurance policies to encourage people to accept generics rather than the branded drugs. And I
know this has nothing to do with this Bill. Well, maybe
it does because it all adds up. It is money all going
into or coming out of the same pot.
We are now in 2021. And we have this
amendment Bill before us today, which has been d esigned to control the cost of presc ription drugs by the
creation of a drug formulary, which is basically a list of
medications and related products which are frequently
prescribed by physicians in the treatment of various
medical conditions in Bermuda. Some have already been mentioned—diabe tes, hypertension and so on.
As I did my research I found that here in Bermuda, Madam President, there are currently 26 regi stered pharmacies. There is a list online. I have forgot-ten where I found it, but there are 26 registered pharmacies currently oper ating. Therefore, the implementation . . . sorry, Madam President. All of those pharmacies are operating under different business models.
I believe there might be about four of them that are all under the same umbrella, but most of those pharm acies are operating under different business models.
Therefore, implementation of a drug formulary will
have an impact on all of the pharmacies since there
are some things that they will have to adopt in common.
For example, they will have to obtain their
medicines, [ through] a supplier identified by the Bermuda Health Council, which will participate in negoti ations for the drugs. And in listening to the brief earlier,
I heard Senator Richardson say drugs obtained in this
way could be from international suppliers, but also
from local suppliers. But basically, the Health Council
will indicate which suppliers can be used to obtain the necessary drugs in the drug formulary.
I was quite stunned when I met with the [Bermuda] Pharmacy Owners Association. I was quite stunned to hear that there are so many different ways
in which they obtain their drugs. Or I should say the proportion of drugs obtained by direct sourcing or by purchasing from a local supplier, it varies from one
pharmacy to the next. I even found that one pharm aBermuda Senate cy, or one group of pharmacies, get all of their drugs
from a local supplier. The point I am trying to make,
Madam President, is that their business models are all
very, very different.
However, moving forward, the drugs in the
drug formulary will be imported in bulk. And in order to do that, we have to have a very efficient system in
order to ensure that there is a steady supply of drugs.
They have to be maintained on this Island. Reme mber, we are a very small jurisdiction. And even when you put all of t he pharmacies together in Bermuda, the
volume of drugs which they will be importing is almost
inconsequential when you compare it with larger
coun tries and larger organisations which are negotiating with the same drug manufacturers. And the manufacturers w ill supply to the larger organisations first,
placing us at the bottom of the totem pole. So the ne-gotiations for supplies of drugs need to be handled
very, very efficiently. Otherwise, we will see shortages
of drugs on this Island, and we do not want to s ee
that.
I also want to note here, Madam President,
that the Council will also have the power to determine
the price of each medical product. And that is in
Schedule 1, [paragraph] 13 of the Bill. So the Council
can determine the price of the drugs and an y assoc iated products that are needed that go with those
drugs.
I also want to note, and this was mentioned in
the brief as well by Senator Richardson, that the
pharmacies will all have to make modifications in order for their operations to be able to inc orporate a national drug code, not just for drugs in the formulary,
but for every single drug that they sell. Some pharm acies have computerised systems; some have had
them for a long time now. Others do everything in a
different way, more manually operated. So undoubtedly there will have to be significant changes to pharmacy operations.
While I support the intent of this Bill —i.e., the
desire to reduce the cost of prescription drugs —I
guess my biggest concern is that while there may have been 35 consultati on meetings with stakehol ders, those consultations seem to have ground to a halt
in April 2019. And that was well before COVID -19. Up
to that point, I am sure people were appreciating the
engagement with the Health Council. But when it
ceased, I think that some goodwill was lost. I believe
that the pharmacy owners and other stakeholders are
very willing to work with the Bermuda Health Council
to enact the intent of this Bill. But there are many specifics which have to be addressed. And therefore, I implore the Council to resume talks, resume consult ation to ensure that the intent of the Bill is realised.
Thank you, Madam President.

The President: Thank you, Senator Michelle Si mmons. Would any other Senator care to speak on
this Bill?
Yes, Senator Tucker. You have the floor.
Sen. Robin Tucker: Thank you, Madam President.

The President: Senator Tucker, can you hear me?

Sen. Robin Tucker: Yes. Yes, Madam President. I
can hear you.
The President: Yes. So you have the floor.

Sen. Robin Tucker: Thank you, Madam President.
Madam President, I think we all agree that
everyone in such a well -to-do Island as ours should
be able to obtain medications when they need them.
My fellow Senators have already reiterated that point.
And certainly we in the Opposition agree with that.
Many of us either know someone or know of someone
who has had to restrict medications or go completely
without because they could not afford them. So I do not believe that there is any argument about the need
to reduce the cost of medications in Bermuda. I do not
know anyone who does not want to see the cost of
health care or prescription medications reduced. This
has been a topic of discussion for quite some time. And as I mentioned, I am certainly in support of cost -
containment efforts, and that would see a reduction in
prescription medication costs.
The Bermuda Health Council Amendment Act
attempts to reduce costs by regulating prices through the establishment of the drug formulary, as fellow
Senators have mentioned. But, Madam President, I
think that it is important for us to be able to recognise
as well that the Bill will not affect all medications, only
the ones which are listed on the formulary and the
ones that are going to be approved by the Pharmacy
and Therapeutics Committee that wi ll be set up within
the amendment Act.
So, Madam President, implementing a drug
formulary has the potential to be a good thing for Bermuda. But I have to say that I am concerned if it
will fully accomplish its intended purpose and provide
commonly used pr escription medications at a lower
cost for Bermudians. Drug formularies work pretty well
in larger countries. But how well it will work in Berm uda with our smaller numbers as compared to the
countries that have larger populations is a big question. As we are so small, I am not sure how impactful
our bulk purchases will be to translate into a tangible savings for the patients. And by that I mean I am joi ning my sentiments with Senator Simmons in that bu ying in bulk will be useful, but again when we are look-ing at [Bermuda in comparison with] a larger jurisdi ction that is a different sort of an approach and conver-sation.
Also to be considered, Madam President, is
something that Senator Simmons did raise, and that is
418 29 March 2021 Official Hansard Report

Bermuda Senate about the stakeholder consultation. Obtaini ng feedback from all industry experts is vital in ensuring that
all parties have an equal chance to contribute to the
discussions before establishment of the drug form ulary and to get an understanding of how it will impact
all stakeholders, including patients. An effective consultation process can mitigate issues that are not
thought of which we can prevent from arising later on.
Certainly we want to make sure that anything that we
do, we get it right from the beginning.
Following discussions with certain key stak eholders, they advised that while some consultation has been held with the Bermuda Health Council, there
has not been consultation held such as is sufficient for
them to have a comprehensive review and under-standing of the design and practicalities of how the
formulary will work and how it will be controlled once it is established.
With such a critical undertaking as a drug
formulary, all key stakeholders absolutely should have a clear understanding of the Bill’s intentions and u nderstanding of the impact on themselves, the patients
and all parties concerned. There are basic questions that stakeholders need to have answered such as . . .
pharmacists have to order medications through the
Bermuda Health Council supplier. And if that supplier
is provid ing medications to others, and obviously to
much larger places, and they run out of a particular
medication or if it is in short supply, this could lead to
shortages on the Island. How would this be handled?
Currently, pharmacists bring in their own medication,
so if one pharmacist runs out or one is low, then they
are able to refer patients to another pharmacy.
Other stakeholders will want to know how the
pricing will be set by the Council for supplied medic ations. What factors will be considered so that we can
be assured that there will be lower costs for patients? How soon will the Council expect the formulary to be
up and running? Will subcommittees be created such
as a safety committee to ensure and to evaluate the
medication’s safety and to make recom mendations?
There is a lot to consider, Madam President, and a lot
to put in place in order to get this right and also avoid unintentional consequences someplace down the
road. As has been said on numerous occasions, we
must measure twice and cut once.
Madam President, I will end my comments as
I started. We all agree —I believe we all agree —that
the cost of prescriptions in Bermuda is too high and is unsustainable. Reducing the cost of prescription drugs
overall is complicated. But we must ensure that to
achieve the goal of lowering prescription costs for
Bermudians, that we have a structure in place that
helps us to do so. Thank you, Madam President.
The President: Thank you, Senator Tucker.
Would any other Senator care to speak on
this Bill?
Sen. Ben Smith: Good evening, Madam President.
The President: Yes, Senator Smith. You have the
floor.
Sen. Ben Smith: So, Madam President, I just want to
add a couple of words to this debate specifically from the standpoint . . . obviously every Senator so far has
spoken to the cost of prescription drugs, and how ev erybody would want to have those drugs lowered in
their costs.
But in listening to the brief that was laid out,
one of the things that I noted was that there has a lready been a process to determine the drugs that
were used most often. And with that, do we have an
understanding of whether there is already a reduction
in the price of those particular drugs that are being used on an ongoing basis by the population? Because
what it seems to me is that if we have already gone
out and received really good pricing for those items, when we go through this process of creating all of the
administration that is going to be needed from not just the committee but the administration that is now added to each of the pharmacies, what is the reduction
that we are going to see from the drugs that are being
put on this list?
You know, really it is the details. The popul ation is going to want to know that the drugs that are being used most often are going to see a real reduction in their cost. If that is what happens, then ever ybody will be supportive of what we are doing here t onight. But we need to know what that is. We need
some details to that. Because if really what we are
saying is that the items have already been iden tified,
and most of the pharmacies have already looked for the lowest -possible price for those items, how are we
going to see a reduction?
Because those items that we talked about that
are in the tens of thousands, the one- off that certain
people in Bermuda need to have in order to stay alive, those drugs are not going to be in this system because they are not going to buy them in bulk. They
are not going to buy them at a level that is going to get
you this reduced cost. So if that is the case, then we
should be focused on the items that we will be looking towards buying in bulk and have an idea of what kind
of reduction we could be getting by going through this
process.
There are a lot of questions that have been
asked by the Pharmaceutical Association. A nd I believe there are a lot of questions that are being asked
tonight that are not telling me that we have the a nswers that this is going to do what all of us want it to
do.
What is this process going to look like from a
detail standpoint to get the end result of the lower cost
of drugs? If we do not have that answer, then there is a lot of information in this document, but it is not going


Bermuda Senate to give the population of Bermuda the result that they
are looking for. Thank you, Madam President.
The President: Thank you, Senator Smith.
Would any other Senator care to speak on
this Bill?
I will just repeat it. Would any other Senator
care to speak on this Bill?
I see the Cabinet [Office] showing up.

Sen. Lindsay Simmons: Madam President.

The President: Senator Arianna, you wanted to
speak on the Bill? Senator Arianna Hodgson?
Sen. Lindsay Simmons: No, it’s Senator Simmons.
The President: Senator Simmons, I beg your pardon.
Senator Simmons, you have the floor.
Sen. Lindsay Simmons: Good day, Madam Pres ident.
I just want to make a couple of points. First of
all, I want to say that the Minister of Health is working to bring down the cost of health care overall, and this
is just one step in the right direction. We must r emember that the PLP established FutureCare, which
has allowed seniors to get medication and to have a
$2,000 cap for the year. Madam President, also we
must remember that we do have an ageing popul ation, and our birth rates are down. So it makes sense
that we pass this Bill.
We already have leg islation in place about
where we can buy supplies from. And as somebody who runs a business, buying in bulk is always the best
way to go. You buy things at a cheaper rate because
you are buying in bulk.
I know that a couple of Senators have stated
about b uying in bulk. Definitely you will be buying in
bulk because it does make sense. And we will conti nue to use . . . we will continue to encourage the wider
community to buy generic drugs. So basically, that is
what I have to say, Madam President.

The Presi dent: Thank you, Senator Simmons.
Would any other Senator care to speak on
this Bill?
Hearing none, I would just like to make a few
comments myself. I have heard . . . oh, I beg your
pardon.
Sen. Marcus Jones: Yes, Madam President.

The President: Yes. Senator Marcus Jones, you
have the floor. You just about caught me.

Sen. Marcus Jones: Oh, okay. Can you hear me
now, Madam President?
The President: I can hear you, yes.
Sen. Marcus Jones: I just want to reiterate first of all
and state the obvious, that a common intention of all
of the Senators, regardless of what side of the political aisle you sit on, is the need for lower health care
costs. I think one thing that the community should r ealise is that this particular legislation could very well
be one of the first steps to fully socialised medicine.
And that always has my concern because, as much as we see in other jurisdictions that socialised health care can work to lower costs, it also can produce uni ntended consequences, such as a lack of choice, s uch
as a delay in services. So when we make or consider a big step such as this, this being a possible first step,
it is very important that the necessary consultations be
held amongst all of the stakeholders.
I think what I was able to observe and take
out of the time spent with the pharmacists in this
coun try is that, as much they are a profit -generating
company (so there is an incentive to be able to maximise their bottom line), they also realise that the community has spoken and spoken loud. And I believe that they also know that eventually full regulation
is going to be a necessity, not just an option.
I think the feet -dragging and the hesitation are
understandable. But we also realise that the question
was raised about generic drugs. I have been made to understand that even with FutureCare and GEHI, the
stipulation for those consumers or users of those two
health care programmes, they do have an option to
take branded medication when that could have been a first step in ensuring to help to put a limi t on the high
rising costs is if this would have been done from its inception, where generic drugs would have been the
choice and the preferred choice. Despite the fact that
it removes that freedom, it would have gone a long
way in ensuring that those pric es remained at least
stable.
I am also reminded of a precedent that was
set a couple of years ago when this present Gover nment came into power. We recognised that the Bermuda Health Council did their best to limit health care
providers from referring access to operations ove rseas, [they] restricted [excessive] MRIs and C -scans
from being done. And we recognised [this] at the time
with the OBA Administration that was in power. And
when the PLP Government came into power they
were approached by one of the health care providers
who felt that they had been hard done by. And it is
common knowledge that this particular health care provider was given a remedy for their (shall we say)
misfortune of being a part of this move to regulate. So
a precedent was set.
So I have to ask the question, Madam Pres ident, as some of the pharmacists have communicated
to us that some of the smaller ones can possibly go out of business. That is not just conjecture, but that is
a clear and present danger and fear of many within
420 29 March 2021 Official Hansard Report

Bermuda Senate that particular industry. And we know that lost bus inesses mean lost jobs, right? And then if there are too
many of these small pharmacists that will close down,
we are then going to have a monopoly which then can
have a counter result, or another unintended cons equence, where if you have fewer choices of providers
of this medication, the prices may in fact go in the opposite direction.
So we still have questions. We still have co ncerns. Our intentions are the same as everyone
around this table, which is for lower costs. But we do have a certain level of hesitation, Madam President.
Thank you for my opportunity to contribute.

The President: Thank you, Senator Jones.
Would any other Senator care to speak?
No. Then I just have a few words myself to
say on this Bill. It has been said that the Health R eview Committee came into force in 2004. I was a
member of the Health Care Review subcommittee that
was chaired by Senator Alfred Oughton in 1996, commonly referred to then and today as the Oughton
Report. One of th e key recommendations of that r eport was the creation of the Health Council, which was
to be an independent body to coordinate the various
entities of health care in the Island. It was to be
formed as a quango to regulate, coordinate and en-hance delivery of health care in Bermuda, including
pharmaceuticals.
I have been very pleased over the years to
see the role of the Health Council evolve because that was the intent, that we needed to have an overriding
body to oversee health care in Bermuda. Not just be-cause Bermuda happens to be one of the highest . . .
next to the United States, it has the highest cost of
health care in all of the OECD countries.
Bermuda’s health care cost is at $693.1 mi llion per year, or 12.4 per cent of Bermuda’s GDP
compared to the average OECD countries, which r eport an 8.4 per cent of GDP. I give this as a bac kground because at that time, and I know I am talking
years ago, but at that time it was really felt that what
was needed in the Island was this Health Council.
With respect to what the Council intends to
do, it will have, as has been stated, a Pharmaceutical and Therapeutics Committee— nine persons, which
will advise the Council on the medical products and
information. And even at this point much of the information that is going on with regard to not just health
care and the issues that Bermuda faces, but all of this
information goes into the Council. The Council does
receive much information. In fact, it is a registering body. So it really knows all of the medical personnel
and you name it. All personnel involved in health care
are really known by this Health Council.
And I understand. I have heard some very,
very good comments and questions that have been
raised by the rest of the Senators here tonight. And I
do believe that it is absolutely important for these questions and concerns that you have raised to be
taken on board. And I am sure that they will. But I
would like to . . . I support this move by the Council to
set up a formulary, to set up a council which will ove rsee medical products and the information to be i ncluded in a drug formulary. I know that there are major
concerns that have been expressed, and I think they
need to be taken on board. But I really do feel that in
this Island we do need to have an independent body
and a body that will oversee the drug formulary.
And I believe this is a step in the right direction. Even though there are concerns and hesitations
on so many fronts, I do believe that the concerns can
be taken on board, and we will arrive at a posi tion
where we will be able to address all of the issues and
be able to provide the medications and the drugs that
are required in this Island.
So from my perspective, I support this move
on the part of the Council, not just because it was
something that w as thought of years ago. But I believe
that the Council is moving in the right direction. And
as I said, I would hope that it take will on board all of the concerns that have been raised tonight.
So with that, Senator Richardson, I hand it
over to you.

Sen. Curtis Richardson: Thank you, Madam Pres ident, and thank you, fellow Members of the Senate for
the questions, comments and support.
I would like to offer as a result of the questions . . . first of all, I wanted to point out for ever yone’s understandi ng something that came across on
more than one occasion during the questioning. Not
all drugs will be included in this formulary. I made the
statement when I read my brief. It was outlined that
drugs that are specific to our region, drugs that have
been id entified and will continue to be identified over
an ongoing process to be added to the list and taken
off of the list. So it must be restated that not all drugs. That is just a false narrative to make that statement or
have that opinion or that view for an ybody.
I want to mention that this particular Act has a
regulation that enables the Council to participate as a negotiator on behalf of Bermuda. In the procurement
of medical products in bulk, the word bulk keeps coming up. And I just want to let you know that this buying
in bulk from international suppliers at a reduced rate and at a reduced rate from local suppliers . . . in doing
so, the Council may cooperate with the Government,
any pharmacy or other suppliers of medical products.
The purpose is to achieve cost -effective medical
products. I feel it is important for me to point out . . .
and the answers to some questions will come out as I
talk. I just want to make it known that I have listened
to the questions. And Senators who posed the questions, I wi ll do my best to get you the answers as I am
making this statement.
It was asked as far as the purchasing, private
importers will continue to play a significant role in the


Bermuda Senate procurement. The Health Council will only (again) participate to support. There was somewhat of a stat ement as far as the Caribbean islands. I cannot speak
to it as with the Caribbean islands or what was stated
by Senator Wight, less -formed countries. I cannot say
exactly where they get their drugs from and the quality
of their drugs. I can speak, I know that Bermuda, we
. . . first of all it has been stated, I already stated it at
another time that we have never had an issue with the supply of drugs in quantity in Bermuda. And I think it
was pointed out (I am pretty sure) that this is an amaz ing fact, being such a small jurisdiction.
We will purchase our drugs and continue to
purchase these drugs that are FDA, EU and through Canadian authorities [approved]. Our quality will not
change. I believe another thing that will not change is
the fact that we as a Government have advocated to
not have our citizens having to choose between the cost of food, electricity, you know, their rent over the
cost of their medication.
So it is important for ever yone to realise that
this is about promoting th e cost of drugs that normally
would have someone making those hard decisions to
no longer be a part of their daily routine or their
mont hly budget routine. So, I want to let people know
that the dialogue and the consultation will continue.
We are committed to re asonable, affordable health
care for everyone.
This particular initiative started years ago,
back in 2012. This is nothing that is new. It has taken
time to get to the point of putting together a formulary.
This formulary has come together as a result of years
of consultation. I cannot say exactly —I did mention,
but I cannot say exactly —what the statistics are for
when COVID -19 hit us and the consultation, whether it
slowed or not. However, this is an ongoing process.
And I just want people to know t hat we are committed
to this process. And this process will benefit all Bermudians and all citizens of this country and residents
of this country. Because health care and the cost of
health care have always been a major issue.
This Bill points out certain illnesses and cond itions that people have at the moment, like diabetes ,
for instance. That may change. And hopefully people [with these conditions will] do things in their personal
lives to improve their health. That statistic may change one day. And agai n going back to what I stated, this
Bill speaks to removing and adding drugs to [the formulary].
COVID -19 has shown us many different
things. And one of the things it has shown us is that
people are struggling. And we want that struggle to end. In regard to the cost of living in Bermuda, we
want to do all that we can to reduce this cost.
So with that said, Madam President, if there is
nothing else, I move that [Standing Order] 26 be suspended in respect of this Bill.
SUSPENSION OF STANDING ORDER 26

The P resident: Is there any objection to this motion?
No objection.
[Motion carried: Standing Order 26 suspended.]

BILL

THIRD READING

BERMUDA HEALTH COUNCIL
AMENDMENT ACT 2021
Sen. Curtis Richardson: Madam President, I move
that the Bill entitled the Berm uda Health Council
Amendment Act 2021 be now read a third time.
The President: Is there any objection to the third
reading?
No objection.
Sen. Curtis Richardson: Madam President, I move
that the Bill do now pass.

The President: Is there any objection t o that motion?
No objection.
The Bill is passed.

[Motion carried: The Bermuda Health Council
Amendment Act 2021 was read the third time and
passed.]

The President: Thank you, Senators.

Thank you so much
for your patience tonight. I believe the Junior Minister
for Cabinet does have an update regarding the con-sideration of the draft Regulations entitled the Berm uda Immigration and Protection (Rental and Use)
Amendment Regulations 2021.

The President: Good.
So, Senator Darrell, then, if you are ready
then you can proceed with the second Order of the
Day that we had.

Sen. Owen Darrell: Thank you, Madam President.
Madam President, I move that the Senate do
take under consideration the draft Regulations entitled
the Bermuda Immigration and Protection (Rental and Use) Amendment Regulations 2021.

The President: Is there any objection to that motion?
No objection.
422 29 March 2021 Official Hansard Report

Bermuda Senate Carry on, Senator Darrel l.

DRAFT REGULATIONS

BERMUDA IMMIGRATION AND PROTECTION
(RENTAL AND USE) AMENDMENT
REGULATIONS 2021

Sen. Owen Darrell: Madam President, today I pr esent to this Honourable Senate the Bermuda Immigr ation and Protection Amendment Act (No. 2) 2020 [sic].
These amendments pertain to the laws and
regulations governing the granting of land licence and
will streamline the process associated with them.
Madam President, the Efficiency Committee
became aware of the challenges when it presented its report in 2019. The Ministry of the Cabinet Office met
with the Chamber of Commerce, Real Estate Division,
reviewing the processing of alien licences for the purchase of Bermuda property. We held several discussions with the legal fraternity and we discussed with
individuals within government departments regarding the process.
Madam President, it had long been advanced
that the extended processing delays negatively affec ted sales, and as a consequence, potential buyers had lost interest and were terminating purchases. T he
processing impediments also represented a loss of
revenue to the government. Madam President, this
Government is committed to streamlining its internal
processes in order to facilitate better business in Ber-muda. In this regard, we have identified speci fic areas
for improvement in the approval of land licensing.
Madam President, the objectives, therefore, of
the proposed legislative amendments are to better
facilitate the sale of property to international buyers,
those who are eligible to do so in accor dance with the
law, thus contributing to the economy of Bermuda. Madam President, there have been considerable delays in processing approval of applications for alien land licences. Many of these delays have been ran ging in excess of six months, resulting in some properties not being sold and amounting to a significant re venue loss for government.
Madam President, several realtors have
raised concerns about the length of time it takes for our overseas buyers to purchase property that they
are eligible to acquire that has a negative impact on
the real estate market. The process is cumbersome
and manually driven through three government d epartments and has caused unacceptable and frustrat-ing delays. One of the delays that we identified was
the requirement for the Minister to publish a notice in
the Gazette before approving an application for a land
licence. This notice invited [objections] to the applic ation to purchase property and allowed two weeks in
which to lodge such an objection. This served to cause a delay in the whole process. Madam President, I hasten to point out that
over the two years there has been only one objection to an application, and that [objection] was unsucces sful. Whereas a property is purchased in accordance with the law, there are no grounds for the purpose of
objection, making the provision in the Act redundant.
Madam President, to better understand solutions
which may be adopted, we invited discussions from
industry -leading realtors and those technical officers
who were responsible for the administration of this function. The aim of these discussions was to identify why the alien land licence process was so elongated
and stagnant, with a view to streamlining the process
in order to complete the transaction in less than four
weeks.
Madam President, there was considerable
dialogue with realtors on this matter. Two critical rec-ommendations came from these discussions, and
they were (1) to address the requirement for gover nment to advertise (and presumably the seller already does so); an d (2) provide exemption for condominiums which currently are subject to the same regimen
as freehold properties.
Madam President, additionally this Bill seeks
to provide certainty regarding the authority to grant approval of application for land licences, and this is
reflected in the definition of “Minister.” This ensures that the function of approval is unambiguous and al-lows for more functionality whenever there is a
change in responsibility for land licences.
Madam President, in reviewing the process
for application to acquire land by restricted persons
we noted that there was a plethora of information that
we deemed unnecessary, intrusive and irrelevant. For
example, in the first Schedule to the 2007 Regul ations, [applicants] are required to provide details about
the nationality of their parents and spouses, information that has no bearing at all on the decisionmaking process. This Bill seeks to remove the r equirement for this useless information. Also, Madam
President, as part of the application process for purchase of a condominium, a potential purchaser or
their agent had to submit three copies of plans drawn
to scale by a registered surveyor. This too has proven
to be cumbersome, especially in the condominium market. We are therefore amending the 2007 Regul ations to exclude condominiums from this requirement,
and we also are reducing the number of plans r equired for other properties to one.
Madam President, in closing I would like to
thank the realtors who assisted the Government in
this legislative project. Finally, I would like to thank the
public officers in the Cabinet Office, the Department of
Immigration and the Attorney General’s Chamber who
assisted with this project.
Thank you, Madam President.
The President: Thank you, Senator Darrell.


Bermuda Senate Would any other Senator care to speak on
these [Regulations]?
Senator Jones, you have the floor.

Sen. Marcus Jones: Thank you, Madam President.
If the purpose of this amendment is to regularise and streamline the process and remove delay —
and I do believ e that is the intent of this amendment —
then we support this, and we look forward to its going
through and ensuring that the purchasing of items
such as this will not be delayed.
Thank you, Madam President.

The President: Thank you, Senator Jones.
Would any other Senator care to speak on
these [Regulations]?
Senator Wight, you have the floor.

Sen. John Wight: Thank you, Madam President.
Yes, I voice support as well. The Real Estate
Division of the Chamber of Commerce have been in
discussions for quite a while on this one with the Go vernment. So I am very pleased to see this coming to fruition now. So I fully support it. Thank you.

The President: Thank you, Senator Wight.
Would any other Senator care to speak on
these [Regulations]?
Hearing none, it i s over to you, Senator Darrell.
Sen. Owen Darrell: Thank you.
Madam President, I move that the said draft
Regulations be approved and that the following message be sent to Her Excellency the Governor:
“May it please Your Excellency:
“The Senate, having had under consideration
draft Regulations entitled Bermuda Immigration and Protection (Rental and Use) Amendment Regulations
2021, proposed to be made by the Minister respons ible for land licences under the provisions of section
102C(1)(c) of the Bermuda I mmigration and Protection Act 1956 has the honour to inform Your Excellency that the Senate has approved the said draft Regulations.”

The President: Is there any objection to that motion?
No objection.
A suitable message will be sent.
[Motion carried: Draft Regulations entitled Bermuda
Immigration and Protection (Rental and Use) Amendment Regulations 2021 were approved.]

The President: Thank you, Senator Darrell.
We will now move on to item number 5, which
is the second reading of the Retail Shops (T emporary
Customs Duty Relief for Capital Investments) Amendment Act 2021. And this is in the name of the
Junior Minister for Finance.
Senator Arianna Hodgson, you have the floor.

BILL

SECOND READING

RETAIL SHOPS (TEMPORARY CUSTOMS DUTY
RELIEF FOR CAPITA L INVESTMENTS)
AMENDMENT ACT 2021

Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President, I move that the Bill entitled
the Retail Shops (Temporary Customs Duty Relief for
Capital Investments) Amendment Act 2021 be now
read a second time.

The President: Is there any objection to that motion?
No objection.
Carry on, Senator Hodgson.

Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President , Honourable Senators are
requested now to give consideration to the Bill entitled
the Retail Shops (Temporary Customs Duty Relief for
Capital Investments) Amendment Act 2021. Madam
President, this Bill seeks to amend the Retail Shops
(Temporary Customs Duty Relief for Capital Inves tments) Act 2008 (the principal Act) to extend the per iod of customs duty relief of capital investments and to expand the scope of goods to which the principal Act
applies.
The measures of the Bill affect the principal
Act and the Schedule to the principal Act. Honourable
Members will recall that the principal Act provides a
zero rate of customs duty on a wide range of imported capital goods for the Minister of Finance approved
schemes to renovate or refurbish retail shops.
Madam President, Government is committed
to supporting the upgrading of this country’s retail sector as a part of our continuing effort to support Berm uda’s economic recovery. Accordingly, in the 2021/22
Budget Statement in support of the Estimates of Revenue and Expenditure, the Government promised that
retail shops temporary customs duty relief would be
extended for a further five years through the 31
st of
March of 2026. Madam President, t his Bill fulfils that
promise and goes further by widening the scope of
qualifying goods to take account of technology enhancements in retail sales.
Madam President , the Retail Division of the
Bermuda Chamber of Commerce has reached out to Government requesting that the scope of qualifying
relief be widened to support new ways to find and pay
for retail items. In accordance with their needs, the Bill
amends the Schedule to the principal Act to encom424 29 March 2021 Official Hansard Report

Bermuda Senate pass modern retail innovations such as new payment
systems; virtual fitting rooms systems and components, parts and accessories; together with the back -
of-house information systems required to support
them.
Madam President, since the last extension of
the Act in 2016, the retail sector in Bermuda has benefited by receiving approximately $1.98 million in duty
relief on the renov ations and refurbishment of their
shops. Fortunately for Bermuda, a growing number of retailers are committing to upgrading their facilities. In the prevailing economic climate, a larger proportion of
retailers will be in greater need of this assistance th an
in the past. Over the next five years the Government
expects the customs duty concession will be of i mmense benefit to retailers and to the economy of Bermuda.
The Government is equally committed to supporting Bermuda’s retail sector as it provides vit al employment to a wide cross section of Bermudians.
Therefore, Government commends this Bill to the House.
Thank you, Madam President.

The President: Thank you, Senator Hodgson.
Would any other Senator care to speak on
this Bill?
Hearing none —

Sen. M arcus Jones: Sorry. Yes, Madam President.
The President: You caught it just in time, Senator.
Senator Jones, you have the floor.
Sen. Marcus Jones: Yes, yes. Okay. Thank you,
Madam President.
Extending the expiry of this duty relief for retail
shops is welcomed by the Opposition and will give this
sector the relief and assistance needed for a signif icant length of time when retail sales the last few years
have been trending down. So we see the good in this,
the benefits of this. Extending it will give th e retailers
some confidence and some comfort that it is going to
be extended beyond just the one year.
So, yes, Madam President, we support this.

The President: Thank you, Senator Jones.
Would any other Senator care to speak on
this Bill?
Hearing none, then, Senator Hodgson, it is
back over to you.
Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President, I move that the Bill entitled
the Retail Shops (Temporary Customs Duty Relief for
Capital Investments) Amendment Act 2021 be now
read a sec ond time.
The President: Is there any objection to that motion?
No objection.

SUSPENSION OF STANDING ORDER 26

Sen. Arianna Hodgson: Madam President, I move
that [Standing Order] 26 be suspended in respect of this Bill.

The President: Is there any obj ection to that motion?
No objection.
[Motion carried: Standing Order 26 suspended.]

BILL

THIRD READING

RETAIL SHOPS (TEMPORARY CUSTOMS DUTY
RELIEF FOR CAPITAL INVESTMENTS)
AMENDMENT ACT 2021

Sen. Arianna Hodgson: Madam President, I move
that the Bi ll entitled the Retail Shops (Temporary Customs Duty Relief for Capital Investments) Amendment
Act 2021 be now read a third time.

The President: Is there any objection to the third
reading?
No objection.
Sen. Arianna Hodgson: Thank you, Madam Pres ident.
I move that the Bill do now pass.

The President: It has been moved that the Bill ent itled the Retail Shops (Temporary Customs Duty Relief
for Capital Investments) Amendment Act 2021 do now
pass.
Is there any objection to that motion?
No objection.
The Bill is passed.

[Motion carried: The Retail Shops (Temporary Customs Duty Relief for Capital Investments) Amendment
Act 2021 was read a third time and passed.]

The President : Thank you, Senator Hodgson.
Sen. Arianna Hodgson: Thank you, Madam Pres ident.

The President: We will now move on to the next item
on our agenda, and that is the second reading of the
Payroll Tax Amendment Act 2021, and the Governor’s recommendation signified. And this is also in the
name of the Junior Minister for Finance, Senat or Ar ianna Hodgson. And you have the floor.



Bermuda Senate BILL

SECOND READING

PAYROLL TAX AMENDMENT ACT 2021

Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President, I move that the Bill entitled
the Payroll Tax Amendment Act 2021 be now read a
second time.
The President: Is there any objection to that motion?
No objection.
Carry on.

Sen. Arianna Hodgson: Thank you, Madam Pres ident.
I am pleased to presen t the Payroll Tax
Amendment Act 2021 for the consideration of Honourable Senators. Madam President, section 9C of the Payroll Tax Act 1995 (the Act) defines the circumstances under which an employer is entitled to new -
hire payroll tax relief and was first put in place on of
April 1
st, 2018, with an expiree of March 31st, 2021.
Madam President, the new -hire relief of 2018
was implemented as an incentive to exempt companies and employers with gross annual remuneration of
greater than $1 million to hire new employees. E mployers who qualified for the 2018 relief were those
whose number of full -time employees increased from
that in the baseline period of January through March
2018. Employers benefitting from the relief currently
pay an employer portion of zero per cent on the r emuneration pay to the qualifying employees up to and
including the tax period of April 2018 through March
2021.
Madam President, given the effect of the
COVID -19 pandemic on the economy and the negative impact on employment, the Government made the
decision to extend the new -hire relief for qualifying
employers for one more year. Therefore, Madam
President, what this means is that a qualifying employer will not be liable to pay the employer portion of
payroll tax otherwise payable under t he Act in respect
of the new full -time employees hired up until
March 31, 2022.
Madam President, section 23 of the Act governs the approval of specified schemes for payroll tax
purposes. For the purposes of the Act the scheme can be in the form of a health insurance scheme, a hospital insurance scheme, a life insurance scheme, a r etirement scheme and a training scheme. To obtain
approval for a scheme, an [employer] must first submit
a completed application to the Office of the Tax Commissioner [OTC] for consideration.
All applications received by the Office of the
Tax Commissioner are then vetted in accordance with
established OTC procedures and applicable guid e-lines, including some requirements which are pr escribed by law. OTC also works in partnership wit h the
Pension Commission, the Bermuda Health Council
and the Department of Workforce Development in the
vetting process to ensure that all schemes reco mmended for final approval by the Minister satisfy appl icable criteria.
Madam President, once the applic ation review
process is completed, a draft order is then prepared
by the OTC and forwarded to the Ministry of Finance
for final approval by the Minister. The draft order lists
the names of all applicants and the respected
schemes which are proposed to be approved purs uant to the final order. The signed order is returned to
the OTC, the employer’s file is updated and a notific ation of the approval is sent to the employer. Payroll tax relief is offered after this process is completed, allo wing the taxpayer to receive tax exemption on employer
contributions into the schemes.
Madam President, while the existing process
was fit for purpose in the past, the increase in the number of scheme applications along with the i ncreas ing demands of other high- priority items in the
Ministry of Finance have the potential to put at risk the
time at which approvals are granted.
Madam President, the intent of the Payroll
Tax Amendment Act 2021 is to enable the Minister of
Finance to delegate the authority to approve schemes under section 23 of the Payroll Tax Act 1995 to the
Tax Commissioner acting on behalf of the Minister.
This will, in turn, speed up the time it takes to approve
applications and improve service delivery to taxpa yers.
Madam President, it is important to emphasise that there are no instances to date in which the
OTC has recommended approval of a scheme that
was later rejected by the Ministry of Finance or the
Minister of Finance. The vetting criteria and process, included coordination of reviews by other governm ent
agencies or bodies, are well established, and vetting
is performed as a matter of routine administration by
the OTC. The proposed changes would enable the
OTC to complete the vetting process and issue the
administrative order pursuant to authority delegated
by the Minister without incurring delays.
Madam President, it should be noted that
there is existing precedent for the Tax Commissioner
to issue administrative orders, as he has the power to
do so in conjunction with the enforcement and collection of taxes. Based on the entirety of the circumstances as detailed herein, there is little risk in making
the proposed changes to section 23 of the 1995 Act.
Madam President, as previously noted, the
OTC has plans to become more modernised through communicati on and change management, organis ational structure and processes, IT systems, and legal framework improvements. The proposed amendment to approve schemes is one step in this modernisation
initiative and will decrease administrative burden for
426 29 March 2021 Official Hansard Report

Bermuda Senate both the OTC and the Ministry of Finance and will enhance service delivery and customer satisfaction for
taxpayers. Thank you, Madam President.

The President: Thank you, Senator Hodgson.
Would any other Senator care to speak on
this Bill?
Senator Jones, you have the floor.
Sen. Marcus Jones: Thank you, Madam President.
The Minister of Finance has many tools in his
toolbox to help him incentivise employers to hire new
staff members. And in the environment that we have
just been through, and in fact are still in, where many
of our family members, friends and colleagues are not able to go back to work for whatever reason, it is i mportant that the Minister of Finance has the flexibility and the power to extend this payroll tax relief for those
who are hiring fellow Berm udians to make it possible
for them to be gainfully employed.
So we support this Bill, Madam President.
Thank you.

The President: Thank you, Senator Jones.
Would any other Senator care to speak on
this Bill?
Hearing none, then it is over to you, Senator
Hodgson.
Sen. Arianna Hodgson: Thank you, Madam Pres ident.
I move that the Bill entitled the Payroll Tax
Amendment Act 2021 be now read a second time.
The President: Is there any objection to that motion?
No objection.

SUSPENSION OF STANDING ORDER 26
Sen. Arianna Hodgson: Thank you, Madam Pres ident.
Madam President, I move that [Standing O rder] 26 be suspended in respect of this Bill.
The President: Is there any objection to that motion?
No objection.

[Motion carried: Standing Order 26 suspended.]

BILL

THIRD READING

PAYROLL TAX AMENDMENT ACT 2021

Sen. Arianna Hodgson: Madam President, I move
that the Bill entitled the Payroll Tax Amendment Act
2021 be now read a third time.
The President: Is there any objection to that motion?
No objecti on.
Sen. Arianna Hodgson: Thank you, Madam Pres ident.
I move that the Bill do now pass.

The President: It has been moved that the Bill ent itled the Payroll Tax Amendment Act 2021 do now
pass.
Is there any objection to that motion?
No objection.
The Bill is passed.

[Motion carried: The Payroll Tax Amendment Act 2021
was read the third time and passed.]

The President: Thank you, Senator Hodgson.

Sen. Arianna Hodgson: Thank you, Madam Pres ident.

The President: We are now moving on to item nu mber 9, which is the Education Amendment Act 2021.
And that is in the name of Senator Darrell, Junior Mi nister for Education.
You have the floor.

[Pause]

The President: Senator Darrell.

Sen. Owen Darrell: Good afternoon, good evening,
Madam President. I am just getting myself situated
here.

[Crosstalk]

BILL

SECOND READING

EDUCATION AMENDMENT ACT 2021

Sen. Owen Darrell: Madam President.

The President: Yes. Carry on.

Sen. Owen Darrell: I move that the Bill entitled Education Amendment Act 2021 be now read a second
time.

The President: Is there any objection to that motion?
No objection.

Sen. Owen Darrell: Madam President, in June 1965
Malcolm X said, “Educatio n is the passport to the f uture, for tomorrow belongs to those who prepare for it
today.”


Bermuda Senate Madam President, before I get into the meat
of my brief, I would like to declare my interest. One of
my primary interests is as a father. And it is the role of
raising, along with their mother Tione, two beautiful
children, our daughter Tatum, age 10; and our son
Oliver, age 4. Madam President, we have made a
commitment that they will be educated in the Bermuda
public education school system.
I want to start by sayin g thank you to their current educator, Ms. Janel Allen, who is a P5 teacher at
the Harrington Sound Primary School, my alma mater; and Mrs. Kim Morbey a teacher at the Prospect Pr eschool; as well as all previous teachers whom they
have had; and of course, every single educator in the
public education school system —who, I must add, up
until almost four years ago were my esteemed colleagues.
Madam President, Tatum, Oliver, and all chi ldren of this country I would like to say, will have a
great future. A grea t future because together as a
country, as a Government, and a community involving
educators, families, and young people we are redesigning, restructuring, and re- envisioning public education. In support of these promises to the people of
Bermuda I am pleased to introduce to the Senate the
Bill entitled Education Amendment Act 2021.
Madam President, this Bill is the first phase of
legislative change to dramatically transform education and learning to improve life- long opportunities and
outcomes for our you ng people. We are putting young
people at the centre of learning so that they are pr epared to lead successful and meaningful lives. It is for
our country, our government, our community —
including educators, families and the young people
themselves —to collec tively develop and support a
bold vision of success for young people.
Madam President, success will mean that
young people are empowered and equipped to take their rightful place in the 21
st century. Success will
illuminate Bermudian brilliance whether it shines locally or internationally. Success will mean that all young
people will have the skills, knowledge and attitudes to
enable them to create and access the jobs of the f uture, to be active and caring citizens and, if they so choose, to be the agents of change in Bermuda and
around the world. It is for our young people and their
families to determine what success looks like for them
individually and on their own unique terms.
Madam President, in order to prepare young
people to find their passions and to thrive in school
and beyond, this Bill (1) establishes senior level sign ature schools; (2) defines signature learning pr ogrammes; and (3) changes the enrolment age for senior schools from 14 to 13 years of age. Madam Pres ident, to quote former US Pres ident Barack Obama,
“Change w ill not come if we wait for some other person or some other time. We are the ones we've been
waiting for. We are the change that we seek. ” So, Madam President, some will ask, Why this
change? Why at this time? Why and how will things
be different when so many others have tried and not succeeded? Madam President, honestly, the answer
to the question Why? isn’t that complicated or difficult
to conceive if you truly want to improve educational
outcomes for our children. Why?, one may ask. Well,
here is the why: Because we recognise and accept
that the world has changed, but fundamentally educ ation in Bermuda has not; because our community has demanded and inspired change; and because young people, all young people, with unique gift s and talents
should be given the opportunities to be successful
both locally and globally.
Madam President, it is easier to stay the same
and to do what we have always done. It is easier to make small and incremental changes that do not make a big difference in the lives of young people and
their families. It is easier to chop and change, to make
tweaks and to tinker at the edges. It is easier to lift lightly and move slowly. It is easier to demand change
and act as an agent of prevention rather than to work
with us collectively. But, Madam President, who does
that really serve?
Unfortunately, far too often we can find ourselves resistant to change. Not because we fear
change, but because we fear the unknown. We fear
what we may not want and wish to remain in our personal comfort zones. We have to confront our fears and not allow our personal desires to avoid change at
the detriment of those behind us who require and deserve change. We need to be bold and think not for
ourselves but for the consideration of others. We must have open minds and look at these proposed changes
through a lens not heavily influenced by what we may
fondly remember what school was like when we attended so many years ago.
Today’s students are unique to today’s env ironment. While s ome things never change, there are
many that must, should and have to change. True
leadership is about servanthood and putting the interests of others at the centre of our decisions. Our service in Parliament is to young people and their fam ilies for their success and the success of our economy,
our society and our country.
Madam President, in awe as I am of the co mplexity of the challenge before us, I think of John F.
Kennedy’s reflection on the challenge of going to the moon when he said, “ We choose to go to the moon in
this decade and do the other things, not because they
are easy, but because they are hard, because that
goal will serve to organize and measure the best of
our energies and skills, because that challenge is one
that we are willing to accept, one we are unwilling to
postpone, and one which we intend to win, and the others, too. ”
Madam President, we are a small close- knit
community. We are proud and we are resilient. And we must not only keep pace, but we must meet and
428 29 March 2021 Official Hansard Report

Bermuda Senate rise to this challenge. Bermuda’s children deserve the
best that public education can offer, the best in 21st
century learning, teaching facilities and technology.
Madam President, in support of our aims for
young people, the Bill establishes signature schools
by requiring senior schools to include one or more
signature learning programmes within their curricula.
The Government has already announced that CedarBridge Academy and the Berkeley Institute will open
as the first two signature schools in September of
2022. In the comi ng years there will be three additional senior schools, and each will be required to provide
one or more signatures. The alternative and exceptionality signature schools will be introduced through
future legislation following additional design and developm ental work.
The Bill defines signature learning pr ogrammes, which are learning programmes that focus on skills development; are based on sectors of the
economy including tourism, finance, insurance and
trades or any other sector of the economy; and which consist of one or more learning areas. The Bill ident ifies the first four signatures, that being tourism, f inance, insurance and trades, because these are current and critical future pillars of the Bermudian economy. The curriculum for each signature must include,
as the Minister considers appropriate, learning areas identified in the Bill.
Madam President, according to UNESCO’s
definition, “learning areas” are the “ Grouping of traditionally discrete but related subjects with the explicit aim of integrati ng students’ learning.” Learning areas
provide a clear framework for curricula for what is taught, what is learned and what is assessed for si gnatures. As learning areas are not prescriptive but are
groupings of subjects, they can cover and accomm odate the evolution of a particular subject, skills and
therefore new signatures that will result from advanc-es in curricula and developments in workforce trends.
Madam President, to illustrate, business is a
learning area included in the Bill. There are numerous
subjects that, for example, fall under the umbrella of
business, including accounting, finance, marketing,
entrepreneurship and hotel management. Another example is personal and social development. This
learning area typically includes subjects such as s ocial and emotional learning, self -regulation, psychol ogy, life planning, and collaboration skills. Within social studies and humanities, of course, we have Bermuda
history, world history, economics, sociology, political studies and geography. If we think of the tourism si gnature, the subjects and skills taught and learned will include curricula from the various learning areas outlined in the Bill. Learning is interdisciplinary, as are
curriculum, learning areas and of course signatures.
Madam President, while the Bill introduces
signature learning programmes, signature schools will also provide a transformed senior school education,
and the majority of the schools’ curricula will encom-pass a core foundational tract that will resemble a ty pical but modern senior school experience. Students will take a variety of subjects and learn critical foundational and signature- specific skills. The look and feel
of teaching and learning will be significantly different.
And for all learners it will be high- quality, persona lised, flexible and adaptable.
Madam President, far too often you will hear
the term not academically inclined when describing
our students, even more disproportionately so when
referring to our young men and more specifically our young Black men. I rubbish those remarks every time
I hear them. We need to give our students the opportunities to flourish in their own rights. Our young people are already critical and creative thinkers, but r etrained educators will cultivate and nurture those skills
to drive innovation and entrepreneurship.
Our young people will be tomorrow’s graduates who possess social and emotional skills such as
respect, empathy, self -efficiency, self -regulation, r esponsibility and collaboration. They will possess practical and physical skills like how to do things including
using and creating new information and technology, which are critical components of the modern- day
trades. And the learning of these skills will be mean-ingful and applicable in the real world. We need to
stop trying t o put our students in boxes and instead
give them the tools to succeed while choosing their personal paths themselves.
Madam President, in addition to those outlined in the Bill, there will be other signatures, and
those may be prescribed by rules. They w ill be determined after a truly engaging process involving young
people and their families, who can articulate their i nterests across numerous options. This process will of course involve educators at all year levels, including
those who are codesigning and who will teach in our
signature schools.
Madam President, the Bill also begins to
phase out middle schools by lowering the enrolment age for senior school. Students will typically be 13
years of age when they begin senior school instead of
14 years of age. M3, which is currently the last year of middle school, will effectively become the first year of
senior school. This change will also mean that senior
school will be five years in duration. The first two
years of middle school (M1 and M2) will remain in
place until middle school is phased out completely,
which will be the subject of future legislation. The Government has always indicated that these changes
would be phased in over time, and the Bill reflects this
method.
Madam President, today we stand a t the cusp
of a once- in-a-lifetime decision, a decision that will
chart the next chapter in the history of public educ ation in Bermuda for generations to come. Again, I say
when it comes to education, leadership is not about
the next election; it is about the next generation. It is


Bermuda Senate time for all of us to walk the walk and not just talk the
talk when it comes to education reform.
Madam President, with those remarks I am
pleased to present the Bill entitled Education Amendment Act 2021 and welcome comments fro m my fe llow Senators.

The President: Thank you, Senator Darrell.
Would any other Senator care to speak on
this Bill?
Senator Michelle Simmons, you have the
floor.
Sen. Michelle Simmons: Thank you, Madam Pres ident.
In some ways I am very sorry it is so late at
night because this is a really important Bill that has
come before us this evening. However, we will share
our thoughts.
Madam President, as Senator Darrell has just
said, this Bill is amending the Education Act 1996.
And it is only the first pha se in a number of changes
which Government is making, or intends to make, to the public education system. Unfortunately, there
have been misunderstandings about what this Bill is
seeking to accomplish. And it appeared to many in the
community that this par ticular Bill will allow the Go vernment to close middle schools. But that is not the
case. The most significant change that this Bill will
bring about will be to move the M3 year level back into
senior school. And I am deliberately saying move it
back into senior school because that is where it used
to be. In fact, along with M2, those year groups were originally in senior school.
So we are seeing M3 come back into the se nior school, which will now begin for students at the
age of 13. And they will graduate at the age of 18.
Meanwhile, the middle schools will still continue to
exist for students age11 in M1, and students age 12 in
M2. However, we know the Government intends to
eliminate middle schools in due course. So further
changes, further legislative changes are expected in
due course.
Madam President, I strongly support the i nclusion of students age 13 into senior school for de-velopmental reasons. And I will just give you a few of those. These students at age 13 are beginning to d evelop their own views , their own opinions. They are
beginning to understand figurative language. They are expanding their ability to think logically. All those are
traits that we wish to see in our senior school st udents. (Those are some traits.) I think that the 13year-old is certainly ready for the more challenging
senior school curriculum and an environment where
he or she can begin to explore their areas of interest,
their career areas of interest, without putting them in a box. This is a good change, Madam President.
I also feel that this change will help to reduce
the gap in learning which has been apparent for some time now for many students between primary school
and M3, between the end of primary school and the
end of M3. The senior schools have seen the results
of that gap in learning for several years.
Madam President, the Bill also allows for the
creation of signature learning programmes in the sen-ior schools. And I know Senator Darrell has described
the senior schools as signature schools to come. But I
would like to look at them as senior schools with si gnature learning programmes. I think it helps my understanding and maybe other people’s understanding of what the Bill is trying to accomplish. It is my understanding that these industry -focused programmes will
allow students to concentrate their skill development
around a particular industry such as tourism, finance, insurance (these are all mentioned in the Bill) or the
professional trades, as I like to call them.
This is not a comprehensive list, by any
means, of the signature learning programmes. But it is
the beginning. And I was very heartened to learn, as a
result of the briefing for Senators on Friday by the
technical officers in the Ministry of Education and by the Minister himself, that the programmes to be incorporated into the respective senior schools (i.e., C edarBridge Academy and the Berkeley Institute) will be
arrived at by consultation with the school leadership
team, by reviewing student profiles —and I am sure
that is to see what the students themselves are inter-ested in —and the unique circumstances of each
school. Because I dare say there will be differences
between the senior schools just because of the inter-ests of the students in those respective schools.
And we are trying to cater to the needs of our
individual students and their career prospects —their
interests. So it means that it is highly likely that there
will be different signature learning programmes at the
two senior schools. So CedarBridge may opt for a particular signature learning programme, and Berkeley
may opt for something else. Each one of the senior schools will have to have at least one signature lear ning programme, and hopefully they will have more.
Madam President, I believe from my understanding at the briefing that the senior learning pr ogrammes are going to be optional for students. So it is important for us to understand that some students may decide not to pursue a signature learning pr ogramme. And that is one of the problems I have with
this so far. I actually think that that should be reconsidered since it may lead to some students who, at
that stage in their development, are not thinking far
enough ahead. It may result in some students not reaching their full potential and not positioning themselves to be ready for either the workplace or for tertiary education. So one of the things that I would suggest is that maybe there should be tiers within the si gnature learning programmes, since students will be aiming at different career goals.
Another concern that I have, or tha t I had,
about the Bill , was that there was no mention of en430 29 March 2021 Official Hansard Report

Bermuda Senate trepreneurship education. But I have been assured
that the plan is to infuse that into the curriculum beginning in primary school. And we all know that there
is going to be a change in the deliver y of primary
school education, that there are many changes coming. Not right away, but they are planned. And I am
happy to hear that entrepreneurship education will be
infused in the curriculum beginning in primary school.
Madam President, I will wrap up my co mments by saying that since it is Government’s inte ntion to phase out middle schools, I am very pleased
that this is being done in phases and not just in one
fell swoop. And I am saying that because, Madam
President, I recall what happened when the general
secondary schools were phased out and middle schools were introduced. At that point there was insufficient space to accommodate all of the students who
were supposed to be at CedarBridge Academy. That
caused major upheaval to the school system, and i t
took quite some time to recover from it. Therefore, this
gradual restructuring is a far more cautious approach, and I feel it is a more sensible approach.
So, Madam President, I strongly support the
move of M3 into senior school. And I am very interested in the signature learning programmes, which will
be arrived at by consultation. And therefore, I will support this Bill. Thank you, Madam President.

[Pause]

Sen. Michelle Simmons: I cannot hear you, Madam
President.

The President: Thank you, very muc h, Senator
Michelle Simmons.
And I see that Senator Smith wants to speak.
You have the floor, sir.

Sen. Ben Smith: Thank you, Madam President.
It was very good to hear the brief by the Ju nior Minister this evening. And I would like to thank
Senator Mic helle Simmons for the statement that she
just made. Coming from a very specific expertise, she
is able to look at this through a set of eyes. So I think
it is important that we listen to her position on this.
The briefing that we were able to attend last
Friday I think was really important. It gave answers to
several of the questions that we would have had leading into this debate, and I think it gave all of us a level
of comfort with the direction that things are going.
What I would like to say is that p eople tend to
get anxious during change. And there has been a lot of conversation over an extended period of time about
the state of education in Bermuda. And what we are
seeing is a shift towards change, which creates that
anxiety. So when that happens it is important that we
give the information. And as Senator Simmons has
just said, this phased approach where we are going to
take one step at a time and get everybody acclimated to that level before we move on to the next part is i mportant so that people c an get accustomed to the
change.
What I would like to make sure is happening
in this process . . . as we move and transition towards
the changes that are being put forward, it is important
that we are making sure that our students are going to
have the s upport that is needed as we move through
this transition. And also, we need to have a way to
gauge the improvement that we are going to get as
we make these changes. One of the things that we have noted as we have been looking at where educ ation is now and where we want it to be is just a level of
accountability. We need to make sure that we are training our teachers in the way for them to move into
where we are moving in education. But we also need
to make sure that we are gauging the level of that en-gagem ent from the teachers, what they are taking on
with the new skills that they are learning, and then
assessing the students as we go through this process.
So we are in support of the changes that are
being made. Most of our questions were related to
what c an be said that tells us that the move from a
three- tiered system to the two- tiered system is going
to lead to better education? Not because we want to nit-pick on that, but the last time there was a major
overhaul in education, we moved from the two- tiered
system to the three- tiered system. All we are looking
for is making sure that we are going to get the results
that we are looking for, which is an improvement in
our education. So, each of these steps should be
leading to that goal.
I believe that the i nformation that was provi ded last week and also the statement that was made by Senator Simmons is telling us that yes, we are seeing
the blocks being put in place. It should lead to that
change. But it is going to be important that we have the assessments, that we have benchmarks that we
are going to be able to meet that tell us that this i mprovement is happening each step of the way. And I would encourage us to continue to set those benc hmarks, continue to assess and make sure that we are
not only preparing our teachers for these changes, but
we are giving all of the support necessary to our st udents as we go through this transition.
Thank you, Madam President.

The President: Thank you, Senator Ben Smith.
Would any other Senator care to speak on
this Bil l?
Senator John Wight, you have the floor.

Sen. John Wight: Thank you, Madam President.
So I am fully supportive of this Bill. I must say
this is not my area of expertise, so I lean on experts
like Senator Simmons to educate me on the pros and
cons of t his. But I am supportive.
I would say, as a fairly large employer of Bermudian students, one comment I would make is that,


Bermuda Senate while I think it is very helpful for students to be exposed to, whether it be insurance or accounting or
actuarial or whatever the c ase may be, as an emplo yer, what we really look for is the sort of critical thinking skills that students are able to possess when they e nter the workforce. So, you know, I support this Bill.
I will not say my concern, but my support going forward for students and for the educators is to be able to produce Bermudians with great critical thinking
skills because that is what employers are looking for.
And as we are in an increasingly complex world and, you know, employers do not want to look overseas for
staff; we want to hire qualified Bermudians.

An Hon. Senator: Yes.

Sen. John Wight: So a definite priority to hire Berm udians.
We look forward to the education system ,
across this change we know is going forward, to be
able to support the businesses so that we can be successful going forward. So, long story short, I support
this Bill. Thank you, Madam President.

The President: Thank you, Senator Wight.
Would any other Senator care to speak on
this Bill?
Hearing none, I will just say that based on
what I have heard from the—

[Inaudible interjections]

The President: Hello. Hello.
Sen. Owen Darrell: Madam President, I think I have
some colleagues who would like to speak on the Bill.
The President: Yes. Well, I was waiting to hear. Se nator, which Senator would like to speak from the Cabinet Office here?

Sen. Curtis Richardson: Senator Richardson.

The President: Senator Richardson, you have the
floor.
Sen. Curtis Richardson: Well, I want to apply my
resounding support for this Bill. I believe wholehear tedly in moving the education system in the direction
that we will be moving with this Bill, this initial phase of
the changes that not only this Government has been
advocating for, but also what has been demanded and called upon by the citizens of Bermuda.
I can remember the doorsteps during canvassing over the years. And the number -one has always been education. And no longer is it the white elephant in the room that people might whisper
amongst themselves in closed circles about, you
know, the education s ystem and what their views on it were. This is definitely the right and correct direction
that we are taking.
I believe it is important for all Bermudians to
realise that the change that this will bring for our future
generations will also impact our pres ent generations.
The Bermuda Public Education System ought to be
top-class, and it will ensure that our students are ge tting not only the academic skill sets that they desire,
but also on the trade levels, because we all learn di fferently, and we all know this. So it is important that
we recognise that.
The signature schools are giving an added
twist to the demand that I have heard, and we have all
probably spoken at one point or the other about tradetype schools. But if a student expresses interest and
shows skill sets in areas that are not so much what
the present education system is allowing them to do,
then this is the way to go.
So I do appreciate the other Senators and
their support and the words that they are giving. It just
shows a unification of the building blocks of Berm uda’s education system. And with that, Madam Pres ident, I just want to close my remarks to say that it is an astounding accomplishment. Thank you.

The President: Thank you, Senator Richardson.
Would any other Senator care to speak on
this Bill?
Sen. Lindsay Simmons: Madam President, I will.
The President: Senator Lindsay Simmons, you have
the floor.
Sen. Lindsay Simmons: Thank you, Madam Pres ident.
I am actually really excited to speak on this
Bill, as up until I became a Senator I was a substitute
teacher at the Dellwood Middle School. So I would like to declare my interest.
Madam President, from [the time I was] a
young girl, my father always taught his daughters that education is the key, and education is the foundation
on which we stand. It does not matter where you go in
life, if you have a solid education foundation and you
fall off, you always have that to fall back on. I reme mber in 1993 when I entered the Berkeley Institute, it
was the same year as Ms. Michelle Gabis i Simmons.
She was . . . we started in the same year. So in 1997,
I was in my last year at Berkeley. And it was the year
that middle school started. Ironically, my younger si ster started in the middle school system at the same
time. And the adjustment from going to primary school
to middle school was harsh. And what my sister had
on her side that some did not was that she was ac ademically inclined. So she was able to catch up be-cause there was a misstep somewhere along the way.
And I think that the PLP Gov ernment has
been saying all this time that something is missing.
432 29 March 2021 Official Hansard Report

Bermuda Senate The PLP Government is not saying that the whole education system is a failure. But what we are saying is
that when given the opportunity to improve the educ ation system, why would we not cons ult and take the
data to ensure that our voting constituents get what we promised in our Throne Speech? We definitely
owe it to our children to [give them] a quality educ ation with all children in mind, not just the ones who are
academic inclined.
With th e well of information at our fingertips,
Plan 2022 allows us the ability to be progressive and evolve with time. In 2017 before we took office, MP
Lovitta Foggo was the Shadow Minister of Education
and Diallo Rabain was the Opposition Senate Leader
and the spokesman for Education. And from 2017 till
today they had town hall meetings, and they continuously put Plan 2022 in the forefront. Plan 2022 began
under the OBA Government in 2017 with our now -
Finance Minister Curtis Dickinson as the Chairman of
the Board of Education. The current Minister of Education has carefully taken steps to ensure that Plan 2022 is what Bermuda wants and needs. Our children
deserve the best opportunities in life. And with this
Government leading the charge in reforming our education system, this reform has come out of the public
outcry for a system that [ensures that] no child is left
behind.
Madam President, there is one thing that I will
not compromise on in life, and that is my daughter. And when it comes to her, education is number one. I
only have one shot to get this right, Madam President.
And my daughter is currently in private school because I did not believe in the middle school system. I am a single mom. I have a six -year-old. And I work
day in and day out to ensure that education is key. So
with the new reform . . . I have been on plenty of
meet ings. So with the proposed change, I am excited
to see an education reform that addresses the issues
from pre - and primary with the primary proposal, and
middle to senior school w ith the phasing out of middle
schools and the introduction of signature strands in
our senior schools.
The preschool curriculum will be aligned with
the primary schools, and primary schools will be aligned with the signature schools. This will ensure
less of a dropout when transitions occur. Preschool
and primary schools will be on the same campus, if
not close to the same campus. This is what our Go vernment is proposing. The current average of P1s to
M1s have a dropout rate of 18 per cent. And we see
the same cohort in S1 rise over 20 per cent. I am sure
our Vice President, Ms. Michelle Simmons, can confirm this, as she was in the public school system, as
well as the principal.
So having attended many of the Zoom consultations where Plan 2022 [was discuss ed] and having
listened to the overall plan of professional development for our teachers, more consultation with the pu blic, edu cators and students through Learning First , for the first time in a long time I am encouraged to see
where education is headed. I fully accept and understand that not every answer is available at this m oment. But I can see a grand vision for education.
When I take the time to look at Plan 2022,
Learning First, the parish school proposals and the
Educational Authority development, all make sense.
Anyone who looks at it from only one perspective
would not be able to see the full plan. We have to
widen our scope and put our children first.
Madam President, for example, ongoing di scussions with the Bermuda Educators Council [BEC] abou t the desired enhanced certificates for teachers
have already started. As a member of the BEC m yself, I am sure Senator Robin Tucker can speak to those conversations that have already started between the BEC, the Minister, the Ministry and Lear ning First. Madam President, I am also a member of
the Board of Education. I can personally speak of
those meetings that are ongoing. We have them on a
regular basis.
I was also encouraged when the Minister of
Education spoke about how he spoke to MP Susan Jackson and Senator Ben Smith. They took the time
to come and visit him and discuss education in his
office. Even this week, the Minister extended an invite
to all Senators to discuss this legislation and other
education issues. I am completely vested in the Ed ucation Amendment Act 2021 and look forward to the
change.
Madam President, this Minister and the Mini stry understand that the needs of our children go beyond political alliances and require all of us to be a
part of the solutions. Only if we embrace this approach will we get the answers we seek and the education system we know our children deserve.
Madam President, to sum up everything that
I’ve said, it is imperative for the Education Amend-ment Act 2021 to pass in the Senate today. Our chi ldren are the futur e of Bermuda. So today, Madam
President, I salute the Minister of Education, MP Lovi tta Foggo, the Commissioner Kalmar Richards, Dr. Llewellyn Simmons and their whole team (including
my sister). They have dug deep and have had many
sleepless nights. I do not know how they do it, Madam President.
So today I too want to bring out my green
pom-poms and celebrate all of the hard work that this
team has done to get this Bill to where it is today. We
do have more Bills to pass, but this is the start of a
beautif ul educational journey for our children, including mine.
Thank you, Madam President.

The President: Thank you, Senator Lindsay Si mmons.
Would any other Senator care to speak on
this Bill?



Bermuda Senate Sen. the Hon. Dr. Ernest Peets: Yes, Madam Pres ident, just for a few moments. (It is Senator Peets.)

The President: Minister Peets, you have the floor.

Thank you, Madam
President.
I do understand that the hour is late, so I am
not going to be long in my comments. I can speak
from the perspective of a parent, and I think I could tell
you a story that is indicative of perhaps lots of parents over the course of the last 10 or 15 years.
Most of you know that I am a parent of four
kids, my wife and I have four, three girls and one son. They range right now between the ages of 10 and 21.
I do recall that 11– 12 years ago, there may have been
some very heated debates, I would imagine, in our Houses of Parliament. But there was an ongoing conversation and debate in our kitchen regarding what we
were going to do about middle school for our kids,
who had enjoyed P5 Allen at Harrington Sound, who I think singlehandedly changed the course of direction
of my oldest child. So I am certainly grateful for Harrington Sound, in particular Teacher Allen.
The decision about private versus public at
the middle school level was a very, very difficult co nversation to have around our household. We weighed up the options. We laboured over the decision for
weeks on end. We knew that the decision had pr ofound impl ications, particularly financially. We consulted with our friends and family, of course. Grand-parents also weighed in on the decision. To make a
long story short, we opted for private schools for mi ddle school for our first child and then a few years later
for our second child. When we got to the third child, as
you can imagine, the financial implications of a private
school education became extremely cost prohibitive,
particularly for middle- class working individuals.
So what I am suggesting tonight is that the
story which I shared, which is a very personal one for
my particular family and kids, is one that I think hundreds, if not thousands, of families have had to weigh
up over the last 10– 15 years as it relates to our
thoughts and feelings about middle school.
I do want Senators and those who are still
listening to our broadcast today to know that my issue is not really with the teachers or the administrators
who are currently in our middle school system, but
rather it is the system itself. So I am very , very excited
about the opportunity that the Minister of Education and the entire department, as well as the Gover nment, have as it relates to the opportunity we have to
reform our education system. So the Minister certainly
has my full support. I am very , very excited about the
possible passage of this Bill today and what it means
now for our future going forward.
Thank you very much, Madam President.

The President: Thank you, Minister Peets. Would any other Senator care to speak on
this Bill?
Hearing none, I would just like to say that,
listening to each one of you speak on this Bill so far
this evening, I do believe that your comments have been reassuring and encouraging for the public. And I
agree with Minister Peets. I hope that there are a
number of people in the community who have heard
each one of you make your reassuring comments,
because education is critical.
I think there was so much being said in the
community that people might have thought that there was something aloof about this particular Bill. But I
think your comments have reassured them, and certainly myself. So I join you all in supporting this Bill.
And I will turn now over to Senator Darrell for his final
comments.

Sen. Owen Darrell: Thank you, Madam President.
Before I finish w ith my wrap- up comments, I
just wanted to respond to a couple of the comments
of, firstly, my former principal at the Berkeley Institute, our Vice President, Senator Simmons, and basically
the recommendation that she made about making
signatures mandatory is absolutely noted.
We are consulting, and we will gather additional information and feedback, and we are interested
to see what senior school parents and other communi-ty members have to say regarding your suggestions.
Students still will have access to the signature
subjects and will still have opportunities to do an en-rolment, apprenticeships, et cetera.
Regarding Senator Ben Smith’s comments,
we absolutely agree on the need to ensure benc hmarks, measures and assessments.
And to the comments of Senat or Wight, we do
support your comments in support of critical thinkers.
Our young people are naturally creative and critical in
thinking and in asking questions. It is the job of educ ators, along with parents and families, to cultivate these
skills. Althoug h the signatures are industry - and sec ular-focused, within them are skills needed not only for
the economy, but also for being a well -rounded cit izen.
So, thank you to all Senators who contributed
to this debate, as well as my Senate colleagues this eveni ng.
Madam President, in my closing comments I
would like to emphasise that education reform is much broader than careers and the economy. But let us not
underestimate the power and strength of being able to sustain oneself to have hope for the future of dreams
and to be able to find and live one’s passion. It is finally time to put in place the necessary changes and ultimately the transformation that the people of Berm uda have asked for. It is incumbent upon us to provide the framework and create the condi tions so that all of
our children are entitled to a great future.
434 29 March 2021 Official Hansard Report

Bermuda Senate W. E. B. De Bois once [said] the following,
and I want all of us to listen to the words very carefully
and take them to heart: “ Now is the accepted time, not
tomorrow, not some more conveni ent season. It is
today that our best work can be done and not some future day or future year. It is today that we fit ourselves for the greater usefulness of tomorrow. Today
is the seed time, now are the hours of work, and t omorrow comes the harvest and t he playtime. ”
Now is the time for us to hold hands and
commit to education reform, not for ourselves but for
our children—Tatum, Oliver and their classmates, and
all future generations who are to come. We stand here
today at the start of something great. We stand here
today ready to make the changes that our system
needs. The time is now to make the changes that we
all know in our hearts our children deserve.
Madam President, thank you for allowing me
to make these comments.

The President: Thank you.
And now you will do the second reading.
Sen. Owen Darrell: Madam President, I move that
[Standing Order] 26 be suspended in respect —
The President: Senator Darrell, you must first move,
read a second time.
Sen. Owen Darrell: Madam President, I move that
the Bill entitled Education Amendment Act 2021 be
read a third time . . . sorry, be read a second time.
The President: A second time.
Is there any objection to that motion?
Hearing no objection, carry on, Senator Darrell. [Standing Order] 26.

SUSPENSION OF STANDING ORDER 26
Sen. Owen Darrell: Madam President, I move that
[Standing Order] 26 be suspended in respect of this
Bill.

The President: Is there any objection to that motion?
No objection.

[Motion carried: Standing Order 26 suspended.]

BILL

THIRD READING

EDUCATION AMENDMENT ACT 2021

Sen. Owen Darrell: Madam President, I move that
the Bill entitled the Education Amendment Act 2021
now be read a third time.
The President: Is there any objection to that motion?
No objection.
Sen. Owen Darr ell: Thank you, Madam President.
Madam President, I move that the Bill do now
pass.

The President: It has been moved that the Bill ent itled the Education Amendment Act 2021 do now pass.
Is there any objection to that motion?
No objection.
The Bill is passed.

[Motion carried: The Education Amendment Act 2021
was read a third time and passed.]

The President: Thank you, Senator Darrell.
We will now move on to our final Bill, and that
is the second reading of the Rent Increases (Domestic
Premises) Cont rol Temporary Amendment Act 2021.
And this is in the name of Senator Simmons, the Junior Minister for Home Affairs.
You have the floor.

Sen. Lindsay Simmons: Madam President, I move
that the Bill entitled Rent Increases (Domestic Pre mises) Control Temporary Amendment Act 2021 be
now read a second time.

The President: Is there any objection to that motion?
No objection.

BILL

SECOND READING

RENT INCREASES (DOMESTIC PREMISES)
CONTROL TEMPORARY AMENDMENT
ACT 2021

Sen. Lindsay Simmons: Madam President , I rise to
introduce the Bill entitled Rent Increases (Domestic
Premises) Control Temporary Amendment Act 2021 .
The purpose of this Bill is to (a) increase the
length of permitted rental to a Bermuda resident in a
rent controlled vacation rental unit from an aggregate
of six months in a consecutive twelve- month period to
an aggregate of twelve months in a consecutive twenty-four month period; (b) to increase the v alidity of v acation rental (rent control) certificates from one year to two years; and (c) to make the increase in length of
permitted rental to a Bermuda resident and the validity
period of vacation rental (rent control) certificates
temporary to enable a review of those increases before the expiration of two years.
Madam President, the Rent Commissioner
met with the Real Estate Division of the Chamber of
Commerce to discuss the challenges associated with
holders of one- year residential certificates who are


Bermuda Senate trying to find suitable rental units. The Chamber noted
that there was an inventory shortage of studio and
one-bedroom apartment categories, as these rental
units are mainly occupied by the local rental market. In addition, those who have been granted a one-year
residential certificate are looking for fully furnished
apartments without having to enter into a long- term
contract with a landlord, as they cannot guarantee that
they can or want to remain beyond the term of the
certificate.
Landlords renting in the residential market do
not normally offer furnished apartments for rent. Addi-tionally, landlords are normally seeking tenants who
are prepared to commit to a longer term than one
year. As a result, concerns were expressed about the limitations of th e six -month aggregated length- of-stay
restrictions in a vacation rental unit within the Rent Increases (Domestic Premises) Control Act 1978 (the
principal Act). Most studio and one- bedroom apar tments fall at or below the threshold of the $22,800 for
rent c ontrol units.
Madam President, the vacation rental market
offers units that are furnished and, by their very n ature, offer short -term rentals without the need for a
long-term contract. However, due to the legislative
restrictions in section 6 of the principal Act, a landlord of a vacation unit can only rent the property for an ag-gregate of six months out of a consecutive twelvemonth period. This restriction will require the one- year
residential certificate holder to secure and move into
another rental space for the remaining six months.
The Bill proposes to increase the length of stay from
an aggregate of six months within a consecutive per iod of twelve months to an aggregate of twelve months
with a consecutive period of twenty -four months.
Madam Presid ent, the overarching objective
of the proposed amendment is to stimulate economic
growth by removing any impediments for the one- year
residential certificate holder to reside on the Island. The proposed amendment provides five important
components to address the needs identified by the
one-year residential certificate holder s:
1. They will not be considered tenants; therefore,
a long- term lease commitment is not required.
2. They will not have to vacate a rent -controlled
vacation rental unit after six months.
3. They will be able to terminate their stay if they
wish to leave before their certificate expires.
4. They will have access to fully furnished apartments.
5. The amendment provides an opportunity for holders of vacation rental (rent control) certif icates to begin earning revenue for their pro perties which experience negative financial i mpact due to the COVID -19 pandemic.
Madam President, the Bill will remain in force
for a period of two years from the date the Act becomes operational. The Rent Commissioner and her
team will monitor the local rental market during the two-year period to ensure that locals and helping
agencies have access to apartments within the rent control inventory.
Madam President, presently there are 312
rent-controlled vacation rental units in operation, representing approximately 2 per cent of the total rental
units under the rent control. By implementing the Rent
Increases (Domestic Premises) Control Temporary
Amendment Act 2021, we will be supporting the Go vernment’s firm commitment to provi de financial stim ulus for many industries within our economy.
Thank you, Madam President.

The President: Thank you, Senator Lindsay Si mmons.
Would any other Senator care to speak on
this Bill?
Senator Robin Tucker, you have the floor.
Sen. Robin Tuc ker: Thank you, Madam President.
I just wanted to first of all thank Senator Si mmons for her brief. And just wanted to say whatever
we can do to help stimulate the economy, we are certainly in favour of. So we support the Amendment.
Thank you, Madam Pres ident.

The President: Thank you, Senator Tucker.
Would any other Senator care to speak on
this Bill?
Senator Michelle Simmons, you have the
floor.

Sen. Michelle Simmons: Madam President, thank
you.
Just a very brief comment. I think that this
makes complete sense. We have people coming to
live in Bermuda for a year. And they certainly do not
want to have the headache of finding furniture, kitchen
equipment and everything else. The vacation rental apartments are fully furnished and equipped. And they
would make ideal locations for people to take up res idence for a year. So this Bill just makes sense to me,
and I give it my full support. Thank you.

The President: Thank you, Senator Michelle Si mmons.
Would any other Senator care to speak on
this Bill?
Hearing none, then, Senator Lindsay Si mmons, it appears you have full support. You have the
floor.
Sen. Lindsay Simmons: Thank you, Madam Pres ident.
Madam President, I move that the Bill entitled
Rent Increases (Domestic Premises) Control Temporary Amendm ent Act 2021 be now read a second
time.

436 29 March 2021 Official Hansard Report

Bermuda Senate The President: Is there any objection to that motion?
No objection.

SUSPENSION OF STANDING ORDER 26

Sen. Lindsay Simmons: Madam President, I move
that [Standing Order] 26 be suspended in respect of this Bill.
The President: Is there any objection to that motion?
No objection.
[Motion carried: Standing Order 26 suspended.]

BILL

THIRD READING

RENT INCREASES (DOMESTIC PREMISES)
CONTROL TEMPORARY AMENDMENT
ACT 2021
Sen. Lindsay Simmons: Madam President, I move
that the Bill entitled Rent Increases (Domestic Pre mises) Control Temporary Amendment Act 2021 be
now read a third time.

The President: Is there any objection to the third
reading?
No objection.
Sen. Lindsay Simmons: Madam President, I move
that the Bill do now pass.
The President: It has been moved that the Bill ent itled Rent Increases (Domestic Premises) Control
Temporary Amendment Act 2021 do now pass.
Is there any objection to that motion?
No objection.
The Bill is passed.

[Motion carried: The Rent Increases (Domestic Premises) Control Temporary Amendment Act 2021 was
read the third time and passed.]
The President: Thank you all very much.
We now move on to the final part of the agenda.

MOTIONS

The President: There are none.

CONGRATULAT ORY AND/OR
OBITUARY SPEECHES
The President: Would any other Senator care to
speak on this? Sen. Owen Darrell: Yes, Madam President.

The President: Who is it? Senator Richardson?
Sen. Owen Darrell: Senator Darrell. I will be very
brief.

The President: Senator Darrell (I am sorry). Senator
Darrell, you have the floor.

Sen. Owen Darrell: Madam President, I would like to
send my congratulations to the Bermuda National
Football Team who a few nights ago . . . most of this
country tuned in and watched as t hey took on Canada
under some very difficult circumstances in the lead-ups to this campaign.
And what I did see, apart from the final score
line, was a lot of young men, some of whom I have
taught or watched grow up, put their all on the line for
this country. And congratulations to the Bermuda
goal-scorer, who was Mr. Kane Critchlow, who did get
the lone goal for Bermuda. I think that they put their
best foot forward. And I just want to congratulate ev eryone associated with that team and everything that i t
took to get them to Florida to take on Canada.
You would have seen in that game that Canada had a juggernaut of a player, who played for one of
the top teams in the world. And I think that despite
that, our Men’s Senior National Team did very well. And I want to go a step further and wish them well, as
I think they play Aruba tomorrow night in Florida.
Oh, and just back to that Canada team. I have
just gotten word that Canada beat the Cayman I slands this evening 11 -nil! So if Canada beat them
11-nil, I think that Bermuda’s 5- 1 looks pretty good
right about now.
So, Madam President, I just wanted to congratulate our team and all associated with that team, as they got their World Cup campaign off to a—

The President: A good start.

Sen. Owen Darrell: —baptism by fire. But they did
represent the country well.
Thank you, Madam President.
The President: Thank you, Senator Darrell.
Would any other Senator care to speak?
Sen. Lindsay Simmons: Definitely, Madam Pres ident.
The President: Senator Lindsay Sim mons, you have
the floor.
Sen. Lindsay Simmons: Yes. I am going to be really
brief.
Madam President, I would like to congratulate
Keturah Bulford- Trott. She represented Montverde


Bermuda Senate Academy in Florida for the Women’s Track and Field
at the Mount Dora Chris tian Invitational Meet #2 in
Florida. Keturah Bulford- Trott clocked in at 12:92,
winning Meet #2 of the Women’s 100- metre dash,
which saw her place first overall. So I would like to
take this time to congratulate Keturah. She just nursed
herself back from injury and came out like a rocket.
Thank you, Madam President.

The President: Thank you, Senator Simmons.
Would any other Senator care to speak?
Senator Robin Tucker, you have the floor.

Sen. Robin Tucker: Thank you, Madam President.
I would just lik e to extend condolences to the
family of the late Mr. Keith Rossiter. Keith and I act ually worked together for a number of years in one of
our law firms. And he was certainly a very likable person, very kind, great sense of humour, a person who
got along w ith absolutely everybody. I most recently
had an opportunity to spend a little bit of time with him
and his wife, Gillian. So I just wanted to take this m oment to extend condolences to her and to Stephen, Keith’s son, whom I have also had the opportunity t o
work with, and the entire Rossiter family.
Thank you, very much, Madam President.

The President: Thank you, Senator Robin Tucker.
Would any other Senator care to speak on
Congratulatory and/or Obituary Speeches?
Hearing none, then it is the adjournment. I
turn it over to Minister Ernest Peets, the Government
Leader in the Senate, for the adjournment.
Minister Peets.

ADJOURNMENT