February 21, 2020

And then we have with us this morning,
as you will notice here to my right, a delegation visi ting us from one of our sis ter islands. We have the
Premier from Turks and Caicos.
Welcome, Premier Cartwright -Robinson.
And we have with her the Minister of Educ ation. Welcome to Minister Karen Adams -Malcolm. I
stress the Adams because there is a Bermudian connection in there; ho w is that? Welcome.
And with them we have the Premier’s husband and other members of the delegation represent-ing the Ministry of Education. So, welcome to Berm uda. They have been here enjoying themselves
and doing a little business as well, over the last couple
of days.

HOUSE VISITOR

Yes.
3068 21 February 2020 Official Hansard Report

Bermuda House of Assembly The Speaker: So, Minister of Finance, would you like
to present your Budget Statement this morning?

Hon. Curtis L. Dickinson: Thank you, Mr. Speaker.

BUDGET STATEMENT
IN SUPPORT OF THE ESTIMATES
OF REVENUE AND EXPENDITURE
FOR 2020/2021

INTRODUCTION
Hon. Curtis L. Dickinson: Mr. Speaker and Honourable Members of this House, we are a mere seven
weeks into this third decade of the 21
st century , and
governments around the world are engaged in a del icate act to balance the realities of this technology -
driven modern era and the twin demographic forces of ageing populations and declin ing birth rates. Bermuda
is no different.
The demand for seamless, contactless interfaces between people and their banks, their food suppliers and the traditional service industries in everyday
life has seen retailers from Fifth Avenue to UK High
Street c lose their doors and yield to the demand for
less human service and greater speed of delivery. Bermuda is no different.
Mr. Speaker, larger, faster aircraft and larger,
more luxurious cruise ships have shortened the di stance between busy city streets and the sandy sundrenched paradises that vacations are made of. Fierce competition rages , between destinations from
the Maldives to Barbados , to secure the luxury tourism market share, and the result is an unending race
to remain relevant, providing value for money for a
traveller who can genuinely claim the world as their oyster. Bermuda is no different.
Young people—men and women of working
age— question the fundamentals of economies that
seem geared to income inequalities of the past and remain dominated by vested interests determined to
preserve their market share at the expense of the very
people from whom they profit. Disappointment with
the status quo is such that these people, on whom economies rely to drive activity and growth, determine
that their for tunes lie somewhere other than their
homeland. Bermuda is no different.
Mr. Speaker, senior citizens from Las Vegas
to London voice their frustration at the paradox of li ving longer but being unable to afford the quality of life
that increased longevity s hould bring. Pensions, in far
too many instances, strain under the weight of the
demands of the ageing population and the reduced
number of people paying into them because of slow job growth. Health care reform descends into a debate
spent fending off fals ehoods and scaremongering, so
precious time is wasted instead of achieving the r e-duced costs to end users and patients so desperately
needed. Bermuda is no different.
Mr. Speaker, in the year 2000, only two years
after an historic general election victory, the late C.
Eugene Cox presented a Budget Statement to this Honourable House a mere seven weeks into the new millennium. He forecast ed the change that would be
ushered in, with these words (and I quote) :
“The new economy is radically different. S ervices, information, skills and to some extent small e nterprises will be its cornerstone. It will be difficult to
touch, weigh or measure with a yardstick most of its
output, and its most valuable assets will be knowledge
and creativity.”
Mr. Speaker, pr esenting this Statement in
support of the Estimates of Revenue and Expenditure
for the year 2020/21 demands of this Government that we continue the work required to perfect the accurate
forecast of Mr. Cox. This economy is radically different, and we must nurture in our people the knowledge
and creativity required for them to drive it and drive its
success.

THE CURRENT STATE OF THE ECONOMY

Hon. Curtis L. Dickinson: Mr. Speaker, I will now
focus on the domestic economy. In 2019 we have
seen real signs that the Bermuda economy is improving. Many of the major economic indicators such as
employment, cruise visitors, visitor spending and construction activity increased in 2019, indicating a
strengthening of the Bermuda economy.

Employment

Hon. Curtis L. Dickinson: Mr. Speaker, employment
and unemployment are the driving forces behind ec onomic growth and stagnation. Over the last few years
employment numbers have been positive and the
pace of job growth has been steady, but moderate.
I am pleased to repor t that the preliminary
data from the 2019 Employment Survey indicates that
the total number of jobs in Bermuda grew by 441,
from 33,862 in 2018 to 34,303 in 2019, a 1.3 per cent
increase. This was the fourth consecutive increase
and the strongest since 2006. Importantly, the number
of jobs held by Bermudians increased, reversing the
decline observed in 2018.
Mr. Speaker, the report also shows that there
was growth in the following sectors: hotels; public administration; construction; real estate; business se rvices; education, health and social work; transport and communications; wholesale trade and motor vehicles;
other community, social and personal; and, most i mportantly, international business. Ther e were offset s
by declines in retail trade repair servic es, financial
intermediation, restaurants, caf és and bars, among
others.


Bermuda House of Assembly In the fi rst three quarters of 2019, employment
income increased by $75.5 million to $2.72 billion, an
increase of 2.9 per cent . This level of compensation
represents one of the high est on record.

Pockets of Growth

Hon. Curtis L. Dickinson: Based on figures released
by the Department of Statistics, real gross domestic
product [GDP ], the primary indicator for economic
growth, increased by an average of 3.5 per cent in the
first two quarters of 2019. However, while we are see-ing economic growth, this increase is not broadbased, signalling that there is more to be done to ensure that economic prosperity reaches all segments of Bermuda’s society.
Imports increased by 8.2 per cent over the
first three quarters of the year to register at $864.3
million. This was driven by an increase in imports of
machinery, due in large part to BELCO’s new power
station construction project. Mr. Speaker, the estimated value of construc tion work put in place increased
from $162.2 million in 2018 to $183.3 million over the first three quarters of 2019, an increase of 13 per
cent. The majority of the increase can be attributed to
an increase in the levels of work performed on docks, bridges, the airport project and tourism -related co nstruction.
Mr. Speaker, headline inflation continues to
remain low in Bermuda, as reflected in the 2019 Consumer Price Index, which indicates an average infl ation rate of 1 per cent . This rate is below the UK ,
which observed a 2.6 per cent rate of inflation; Canada, 1.9 [per cent ]; and the U nited States, 1.8 [per
cent]. Mr. Speaker, low inflation is beneficial for the
economy, as it encourages consumers to purchase goods and services and also supports productiv e
planning and investment.
Bermuda’s balance of p ayments continues to
record relatively high current account surpluses, which
are an important strength in the Bermuda economy. Bermuda’s total current account surplus over the first
three quarters of 2019 w as recorded at $635 million.
This figure is 16.4 per cent less than the $760 million
recorded over the first three quarters of 2018. The decrease in the current account surplus was mainly due to changes in the primary income account, which
saw a decrease of $81 million driven by a decline in
investment income.

State of Tourism

Hon. Curtis L. Dickinson: Mr. Speaker, recently r eleased tourism figures reveal a growing reliance on
cruise visitors to shore up declining air arrivals. While
the expanded cruise s eason adopted by the Bermuda
Tourism Authority [BTA] provides some economic
benefits to specific sectors, decreased air capacity contributed to a more challenging landscape for Ber-muda’s tourism industry in 2019. Total visitor numbers
of 770,683 were recor ded in 2018. In 2019, that number grew by 4.9 per cent , to finish at 808,242. Air arr ivals in 2019 decreased by 4.4 per cent , while the
number of cruise passengers increased by 10.6 per
cent. Total visitor spending in 2019 rose by $13.2 mi llion, or 2.6 per cent, settling at $518.5 million.

State of International Business

Hon. Curtis L. Dickinson: Mr. Speaker, in 2019, the
international business sector provided 3,995 jobs in
the economy, reflecting a growth of 0.3 per cent year
over year, or an increase of 10 jobs. During 2019,
[there were] 846 new international companies and
partnerships registered in Bermuda, representing a
decrease of 164 registrations when compared with 2018. This decrease was mainly attributed to new
economic substance requirements imposed by the
European Union.
Mr. Speaker, over the first nine months of
2019, foreign exchange earnings of the international
companies increased by $59 million to $1.53 billion,
representing growth of 4 per cent .
As of 31 December 2019, Bermuda mai ntained its position as the premier jurisdiction for captives, with a total of 715 captives writing gross prem iums of approximately $40 billion. There were 22 new
captives registered in 2019, compared with 19 in
2018. The BMA also registered a total of 69 new i nsurance entities in 2019, including 58 new insurers/reinsurers and 11 intermediaries. The international
insurance sector continues to show sound financial
strength and a firm market position.

State of Local Small and Medium -sized
Businesses

Hon. Curtis L. Dickinson: Mr. Speaker, small and
medium -sized businesses are an important part of the
Bermuda economy , and they employ just over 6,300
persons, the majority of whom are Bermudian.
Based on statistics from the Office of the Tax
Commissioner, the remuneration paid and headcount
of small businesses have grown in 2019. This growth
can largely be attributed to the payroll tax concessions
provided by the Government in 2018 for new small
business entrepreneurs. The Bermuda Economic D evelopment Corporation [ BEDC ] has advised that b etween 1 April and 31 December 2019, 18 new bus inesses have been approved creating 27 new jobs.
This is a good example of how tax policy can be used
to create jobs.
In the medium -sized business sector, job
growth and compensation have remained relatively
unchanged year over year. The Government will again
use tax policy to promote job creation in this sector of the economy by creating new payroll tax bands b etween the annual payroll tax thresholds of $200,000
3070 21 February 2020 Official Hansard Report

Bermuda House of Assembly and $500,000. As the new rates will be below the current 7 per cent rate for this sector, it is anticipated that
this relief should allow them to expand their employee
base.

Retail Sales

Hon. Curtis L. Dickinson: Mr. Speaker, total retail
sales for the first 11 months of 2019 decreased by
2.4 per cent to register at $1.02 billion. Many of the
difficulties being faced by local retail stores are not
unique to Bermuda, as many brick -and-mortar stores
have found it difficult to compete with mostly web -
based businesses like Amazon. Retailers who are
adapting best to this environment are those who are
providing an enhanced customer experience, often
utilising technology in their service delivery.
Mr. Speaker, the Government is very much
aware of this pressure on certain segments of t he retail sector and over the years has provided the follo wing relief:
• elimination of the employer portion of payroll
tax during the months of January, February
and March;
• customs duty relief measures on capital
goods for the renovation and refurbishment of
retail s tores ; and
• targeted payroll tax relief to retailers whose
annual payrolls are greater than $1 million .
The Government will continue to fi nd ways to
assist this important sector of the economy.

Personal Consumption
Hon. Curtis L. Dickinson: Mr. Speaker, another i mportant measure that offers an understanding of the
strength of consumer spending and is often overlooked is personal consumption. Personal consum ption expenditure is a measure of national consumer spending. It tells you how much money residents spend on goods and services. It is an important
measure of private consumption expenditure on services, which is not covered in the more popular retail
sales data that the Government releases on a monthly
basis.
The most recent estimates by the Department
of Statistics for household personal consumption are
for the first two quarters of 2019. I can report that , during that time period, total household personal con-sumption was $1.71 billion, reflecting an increase of
0.7 per cent over 2018.

GDP E stimate 2019

Hon. Curtis L. Dickinson: Mr. Speaker, considering
all economic indicators and the information presented,
the Ministry of Finance estimates that Bermuda’s GDP
has increased by between 1 [per cent] and 2 per cent
in 2019 , following growth of 0.1 per cent in 2018. WHAT HAVE WE DONE SINCE 2017?

Hon. Curtis L. Dickinson: Mr. Speaker, since our
election in July of 2017, the Progressive Labour Party
Government has taken steps to fulfil our election promise to transform the Bermuda economy into one
that is more fair and ready for the future.
Last year during the Budget Statement, I r eviewed the Government’s economic plan. However, for the benefit of Bermuda, it is important that I reiterate this plan for folks. There are five planks:
1) Build on what we currently do well in financial
services and tourism .
2) Diversify our economy so that we can attract
companies in new industries to our shores .
3) Reduce the cost of living and the cost of doing business in Bermuda.
4) Make our government more efficient .
5) Reduce regulations and red tape to stimulate
investment while promoting competition in the
Bermuda economy.
Over the last 32 months , we have made pr ogress on all five measures. In building on what we do
well in financial services, despite challenges from the
US tax reform and a wave of mergers and consolid ations in our insurance sector, there are almost 100 more international business and business services
jobs in Bermuda than there were two years ago. This can be attributed to continued growth in the long- term
insurance sector , and international law firms being
permitted to operate in Bermuda.
In tourism we have seen additional investment
in Bermuda’s tourism product, with investments now
confirmed for the redevelopment of the Fairmont Southampton Hotel and the upgrade and re- opening
of the St. George’s Club. Mr. Speaker, there were 355
more tourism jobs in Bermuda as at the end of 2019
than there were in 2017.
On the economic diversification front, the
Government is making sure that we attract new types of comp anies to Bermuda. Our investment into
FinTech has created 50 new jobs in the FinTech i ndustry locally, with many Bermudians being trained to assume roles as this industry continues to grow.
Mr. Speaker, we have made progress in r educing the cost of living and the cost of doing bus iness in Bermuda. Since 2017, we have reduced pa yroll taxes for working Bermudians to their lowest level
in 23 years, and there are more reductions to come.
We have not increased payroll taxes on employers,
and we have given targeted reductions to struggling sectors such as retail. We have also seen energy
costs go down for the first time in a generation, while
the rate of inflation is running at a 56- year low.
Mr. Speaker, efficiency within the operations
of government has also been achieved. It is important
that the public is aware of the facts surrounding the size of g overnment. In December 2016 there were
4,470 persons on the g overnment payroll; in DecemBermuda House of Assembly ber 2019 there were 4,446, a decline of 24. Contrary
to the narrative espoused by various component s of
the Opposition, we have been successful in making
the government more efficient while keeping a firm lid
on our headcount in government. We have increased
head count where it matters, in the areas of education,
health care and s ocial services, while red ucing it in
others. Therefore, uninformed commentary that speaks to the “expanding government ” needs to be
taken for what it is —a falsehood that has no bearing
in fact ; the numbers speak for themselves.
Mr. Speaker, we have also made progress in
reducing regulations and red tape to stimulate inves tment and promote competition in the Bermuda economy. We have eliminated payroll taxes for start -up
businesses , as well as having streamlined the process
for starting new local companies. In this budget session we will introduce a B ill which will reduce the r equired ownership of a local company from 60 per cent
Bermudian to 40 per cent Bermudian, while maintai ning the requirement for the board of directors to be at
least 60 per cent Bermud ian. We have supported
competition in the permission of international law firms to operate in Bermuda and have been aggressive in
courting additional financial services institutions to set
up in Bermuda to provide competition to established
players.

CAROL INE BAY —THE IMPACT,
THE WAY FORWARD

Hon. Curtis L. Dickinson: Mr. Speaker, in 2016 the
former Bermuda Government entered into an agre ement with the developers of the Caroline Bay project
at Morgan’s Point and their lenders, providing $165
million in guar antees with respect to project debt.
In February 2018 , work partially stopped on
the development and has since been fully suspended. Following receipt of letters containing n otices of d efault from various project lenders in June 2019 and August 2019, the Government entered into a loan
agreement for $200 million with the Bank of N. T. Bu tterfield & Son Limited and HSBC Bank Bermuda Li mited to facilitate the purchase of the interests of those lenders.
Mr. Speaker, the Bermuda Government also
purchased the c laims from project contractors and
supervised the payment of Bermudian subcontractors, who had until that point remained unpaid for goods
and services they had provided at Morgan’s Point. To
date, the Government has borrowed $182.4 million to make good on its guarantee to purchase claims owed
to contractors and subcontractors associated with the
project, and to fund other expenses relating to professional services.
Mr. Speaker, while discussions with the d evelopers of Caroline Bay continue, it is the intention of this Government to protect at all times the interests of
the people of Bermuda. 2020 AND BEYOND

Tourism

Hon. Curtis L. Dickinson: Mr. Speaker, tourism continues to lay claim as one of Bermuda’s economic pi llars, and for at least the last decade the industry has
been in recovery. Now there is cause for guarded optimism that we can grow this industry into one that
delivers the value demanded by Bermuda’s price point. Plans for the Fairmont Southampton Hotel should significantly upgrade Berm uda’s hospitality
product, joining new sites like The Loren, St. Regis
and Azura.
In 2018, Bermuda saw 771,000 visitors to our
shores, of which 68.2 per cent were cruise ship arrivals. Like so many of our economic drivers, Mr.
Speaker, we must act now to prevent Bermuda from
becoming primarily a cruise destination to the excl usion of the longer -staying air visitor. BTA data for
2018 versus 2019 indicate that cruise ship visitors are
up 14 per cent while air arrivals are down 6 per cent .
This trend, uninter rupted, will minimise the economic
impact Bermuda needs from its tourism industry. The
appropriate balance must be struck.
Bermuda tourism works best for Bermudians
and Bermudian businesses when air arrivals are up
and hotels are full. Travellers of all i ncomes have i ncreasingly more destinations at their disposal. Mr.
Speaker, our tourism product is no longer unique
enough to stand out from the noise of an increasingly
crowded marketplace. We must “ up our game” and
improve it. Even the best marketing will struggle long -
term to overcome these competitive headwinds. To continue charging these prices, we must evolve beyond a singular narrative of the island paradise. As
part of the work to be done in this fiscal year, we
must:
(i) restructure the BTA to focus mor e directly on
its sales and marketing role;
(ii) devise and introduce a slate of annual events
that drive visitors to Bermuda and better r eflect our claim to be a luxury destination; and
(iii) renew the efforts of air service development to
expand airlift capacity from key markets.

New Areas for Growth
Hon. Curtis L. Dickinson: Mr. Speaker, Bermuda’s
strength continues to be its sound legal system and
strong jurisdictional reputation for appropriat e regul ation and a high standard of financial services provi ded. Using these strengths to our advantage means
developing new areas for growth that require those
ingredients to succeed. The first phase of the Ottiwell
A. Simmons Arbitration Centre, the demolition of the old police headquarters, will begin next week, and
from that site Bermuda will firmly establish itself as the
jurisdiction of choice for dispute resolution.
3072 21 February 2020 Official Hansard Report

Bermuda House of Assembly In partnership with the private sector, a targeted Asia Strategy is in hand and will be deployed to
promote Bermuda as an alternative to those jurisdi ctions, one where there is political stability and bus iness is welcomed.
Mr. Speaker, the Incorporated Segregated
Accounts Companies Act 2019 received assent on 26
November 2019 and introduces a new company structure product —the incorporated segregated account
company (otherwise known as ISAC). Honourable Members will recall that this legislation has been de-veloped to create a new and innovative product to
meet the needs of business stakehol ders in Bermuda.
The ISAC provides greater certainty via a statutory
and common- law basis for the segregation of assets
and liabilities by creating separate corporate bodies.
This new product has been embraced by industry and
further diversifies Bermuda’s corporate offerings in a
competitive global marketplace.

Stimulating the Real Estate Market

Hon. Curtis L. Dickinson: Mr. Speaker, no sector
has been more resistant to market forces than real
estate in Bermuda. Prices remain relatively high when
compared with what similar purchase prices can buy
outside Bermuda, and sluggish sales have contributed
to dented consumer confidence in the economy.
There are 81 condominium units on the market today,
and the average unit takes almost two years to be
sold. Land i s rare and must be protected for future
generations. Strategies to open previously restricted
markets must not harm the economic interests and aspirations of Bermudians. This is a complex area,
and it cannot be ignored that seemingly conservative
lending practices by banks continue to frustrate potential first -time homeowners from entering the marketplace.
Mr. Speaker, during this fiscal year this Go vernment will advance measures to stimulate the real
estate market. Hard- working young Bermudians and
their families must be at the forefront of our polic ymaking in this area, along with those Bermudians who
have invested in property and wish to see a legitimate return on that investment.

Investing in Communities

Hon. Curtis L. Dickinson: Mr. Speaker, during t his
past fiscal year the Government has been forced to
find money for things that did not form part of what we
promised the people of Bermuda. When the glow of an election victory fades, the cold, harsh light of governance tests our ability to prioritise a nd often means
choosing the unpopular, and at the time misunderstood, in the name of preserving the wider interests of the economy which serves the people.
Millions of dollars had to be spent to meet
tests imposed by the Financial Action Task Force, the EU and the OECD in the areas of anti -money laundering, [anti -] terrorist financing and economic substance.
Still more millions were required to meet the call on
the previous administration’s guarantee of the Car oline Bay development. We expect to see a return on
both of these expenditures, Mr. Speaker, but it is cold
comfort to the people we represent when there are
needs in the here and now that have been delayed as
a result.
The people should not have to wait any longer. Therefore, Mr. Speaker, this budget will feature the largest capital spending plan in a decade and will see
increased grants and contributions to invest in our
communities. Mr. Speaker, this budget will
(i) provide an additional $1 million in capital
spending to support local improvements in t he
Town of St. George’s and other local comm unities;

[Desk thumping]

Hon. Curtis L. Dickinson: [Mr. Speaker, this budget
will]
(ii) provide a $2 million grant over two fiscal years for the community club development;
(iii) allocate $1.5 million over two fiscal years to
support the development of a f ishing cooper ative via a shoreside facility at Southside;
(iv) deliver on the much- needed renovation and
move of the Marine and Ports H eadquarters
and workshop;
(v) deliver on our promise to take proper care of those young people who have aged out of the
DCFS [Department of Child and Family Services] regime , but need a base from which to
live and work in the community; —

[Desk thumping]
Hon. Curtis L. Dickinson: —and
(vi) deliver on our promise for mental health
treatment for currently underserved popul ations.
[Desk thumping]
Hon. Curtis L. Dickinson: Mr. Speaker, in that 2000
Budget Statement, Mr. Cox said, in words that apply
as much today as they did then, “We cannot afford to
waste any Bermudian lives and opportunities if they as individuals and we collectively as a people are to
progress into the next century with confidence, fulfi lment and prosperity.”

GOVERNMENT’S ROLE

Increase in Capital Development Spending



Bermuda House of Assembly Hon. Curtis L. Dickinson: Mr. Speaker, governments
have an obligation, in fact a duty, to invest in their i nfrastructures in order to drive the momentum and
growth of their economies. Fiscal constraints over the
last decade have resulted in substantial re ductions in,
and in some cases the elimination of, funding for certain critical infrastructure investments.
In the 2020/21 Estimates of Revenue and E xpenditure, we propose to increase the amount allocat-ed to capital development spending to $60.1 million,
an increase of $16 million, or 36.2 per cent. These
monies will be used to fund necessary investments in
building repairs, relocation of courts, school repairs
and road repairs.
Approximately $4.4 million of the increased
spending will be funded from revenues raised from the
new transportation infrastructure tax on cruise ship
passengers, which is intended to be used to fund i mprovements in Bermuda’s tourism and transport infr astructure.

Specific Capital Projects —Capital Acquisitions

Hon. Curtis L. Dicki nson: Mr. Speaker, this Government is committed to tackling the challenge of
making government more efficient and more responsive to its citizens. The expressions of constructive
criticism of how government works —or does not
work —have not fallen on deaf ears. There is signif icant work to be done to streamline government pr ocesses and improve the interactions of government
workers with the taxpaying general public.
One only need look at the Department of I mmigration to see how the use of technology and col-laboration with private sector stakeholders have i mproved processing times for immigration services. In
this vein, the Government will be making additional
funds available for significant investments in information technology with the goal of making gover nment work better and be more responsive to the
needs of our citizens.

Public Sector Spending

Hon. Curtis L. Dickinson: Mr. Speaker, the 2020/21
budget development cycle saw the reintroduction of
zero-based budgeting [ZBB], which was intended to
bring greater discipline to the allocation of limited f inancial resources which is in line with the Gover nment’s overall policy i nitiatives and objectives.
Assessments were performed of programmes,
and decisions were made to fund those that were deemed high priorities, thus reducing or eliminating
funding for those with limited efficacy or lower priority.

Efficiency Committee Upda te

Hon. Curtis L. Dickinson: Mr. Speaker, the Gover nment established an efficiency committee in March 2018 with the mandate to review the functioning of all
government departments and to make recommendations of improvements to operations. The Efficiency
Committee concluded its work at the end of the last
fiscal year and submitted its final report in April 2019.
The recommendations contained in the Efficiency
Committee’s final report were referred to the various
government ministries and departments for fur ther
review and implementation. Additionally, some of the
recommendations were incorporated into the deliverables under the Government reform initiative.
Mr. Speaker, as a result of this committee’s
work, the backlog of un- adjudicated stamp duty for
property conveyancing in the Office of the Tax Co mmissioner continues to decrease and collections to
steadily increase. Resources, processes and proc edures to strengthen the team at the Office of the Tax
Commissioner to ensure payroll tax collection remain
in sharp focus and have been addressed.
Other Efficiency Committee recommendations
that have advanced include the completion of a review
of the Information and Digital Technologies Depar tment and the establishment of an IT Governance Po licy with a view to mov ing the overall IT structure from
a decentralised, “ siloed” one to a centralised structure,
to ensure a more coordinated, efficient and effective
system for the acquisition and maintenance of IT equipment, software and applications.
This is not an exhaust ive review. The initi atives mentioned herein are intended to demonstrate
the effectiveness of the committee in stimulating active engagement, which has resulted in change initi atives across the service. Other initiatives commenced
as a result of the commit tee’s work are in channel and
are likely to be highlighted by individual heads during the course of the budget debate.

STIMULATING THE ECONOMY

Hon. Curtis L. Dickinson: Mr. Speaker, during last
year’s Budget Statement I stated that it is incumbent
upon t he Government to create the conditions necessary to foster economic growth that results in increases in jobs, incomes and the standard of living for Bermudians. In this vein, the Government will take a number of measures intended to provide a stimulative
effect on the Bermuda economy.

Tax Relief

Hon. Curtis L. Dickinson: Mr. Speaker, in this year’s
budget there are no proposals for any new taxes.

[Desk thumping]

Hon. Curtis L. Dickinson: One more time: There are
no proposals for any new taxes.
[Desk t humping]
3074 21 February 2020 Official Hansard Report

Bermuda House of Assembly Hon. Curtis L. Dickinson: Instead, the Government
will make a series of selective tax cuts aimed at r educing payroll taxes for those persons earning less
than $96,000, bringing the rate paid in the $0 –$48,000
band of gross taxable compensation to its lowest level
ever.

[Desk thumping]

Hon. Curtis L. Dickinson: The objective of this initi ative is simple. It is to put money into the pockets of
approximately 75 per cent of the employees in Bermuda. The cost of this tax relief will be partially offset
by modest increases in the employee portion of the payroll tax for those who earn more than $96,000.
Additionally, after careful consideration and in
an effort to assist small and medium -sized busines ses, the Government will introduce two new emplo yer
payroll tax bands between $200,000 and $500,000,
which will have the effect of lowering the payroll tax
burden for those businesses. The Government will also expand the successful taxi industry payroll tax
scheme to those persons who own and operate public
service vehicles which include airport limousines, li mousines and minibuses.

Mortgage Guarantee Programme

Hon. Curtis L. Dickinson: Lowering the cost of borrowing directly impacts the cost of housing. The cost of financing continues to be a major contributor to the
cost of housing in Bermuda. In last year’s Budget
Statement I announced that the Government would work with private sector banks to pilot a mortgage
guarantee programme that would lead to lower rates
on mortgages. While progress on this initiative has
been slow, in December 2019 the Government entered into a 15- month exclusive arrangement with one
of the local banks to advance the development of a mortgage guarantee programme.
Over the coming months, the Government will
work in earnest wit h the local banking partner to deli ver a mortgage guarantee programme which will be designed to deliver lower financing costs to middleclass families seeking to secure mortgages of
$750,000 or less. This programme will be built around strong underwriting standards to protect the interests
of the borrower, the lender and the Government.

Union Deposit Company
Hon. Curtis L. Dickinson: Mr. Speaker, Bermuda’s
unions have a proud history of advocacy in the deve lopment of innovative rights on the behalf of wor kers.
Today several of our unions have sought the support
of the Government in taking the next step in that jour-ney with the creation of a union deposit company. As
an idea, it is compelling. Bermuda’s unions represent
thousands of workers who are fully em ployed and co l-lectively represent an existing market for Bermuda’s
lenders. Many union members are already mortgage
holders who have demonstrated an ability to faithfully
discharge their obligations. For any bank a mortgage
is a product, and who better to purchase that product
from than your own financial institution?
Enthusiasm, however, must be matched with
responsibility for the public finances. Further, financial institutions must be properly managed with a level of
discipline in order to be successful over the long term.
This Government has determined that, in keeping with
best practice, prudent planning is the best next step in
this journey. The Government will provide assistance
of up to $250,000 towards the development of a bus iness plan to determine how a union deposit company
might compete in a market with established players.

[Desk thumping]

Hon. Curtis L. Dickinson: As a financial institution,
any future deposit company would come under the
independent regulation of the Bermuda Monetary A uthority and would have to convince depositors to pr ovide it with funds to lend. However, we believe a union
deposit company may play a viable role in offering an
alternative to its members, and in doing so provide
further competition and a reduction in mortgage len ding rates.

Financial Conduct Authority

Hon. Curtis L. Dickinson: Mr. Speaker, this Government is committed to performing regular asses sments of the appropriateness and efficacy of Berm uda’s regulatory and legislative regimes to ensure that
they are appropriate for the jurisdiction and consistent
with global best practice. There has been a growing movement in leading jurisdictions towards having the
activities of the prudential regulator supplemented by those of a financial conduct authority. A conduct a uthority is primarily tasked with protecting consumers
and promoting healthy competition.
The Bermuda Monetary Authority serves as
Bermuda’s prudential regulator and is responsible for,
among other things, the promotion of financial stability and the effective supervision and regulation of Bermuda’s financial services sector. Today Bermuda
does not have a financial conduct authority.
Over the coming year, the Government will
work with key stakeholders to take the necessary
steps to establish an appropriate financial conduct oversight entity which will focus on protecting the i nterests of consumers of financial products and services in Bermuda. It is the Government’s responsibility
to ensure that the financial services sector works well
and that it has products and services that are priced
competitively and fairly benefit customers.




Bermuda House of Assembly Family Office Legislation

Hon. Curtis L. Dickinson: Mr. Speaker, the Bermuda
investment environment provides competitive advantages for businesses striving to compete globally. Bermuda’s own competitiveness in global markets is
based on a unique set of strategic advantages, which
includes but is not limite d to the following:
1. proximity to US capital markets;
2. UK and US compatible law and regulation;
and
3. extensive regulatory cooperation, as well as
recognised regulatory quality .

Investment keeps our economy open, dynamic and competitive, and helps to ensure that Bermuda
continues to be the best place in the world to do bus iness. However, as a small and open economy with
limited economic diversification, the Bermudian eco nomy is vulnerable to external factors. These include
changes in international tax policy and regulatory
standards which could adversely affect our business
sector and impact our way of life.
In a similar vein to priority actions taken in
many other sectors, the Government is working with a
number of stakeholders to introduce a new private
family office product to further meet the needs of ultra -
high net worth individuals who require a different wealth management model to meet their estate plan-ning objectives.
It is because of Bermuda’s strength as an i nternational financial centre that many i nstitutions have
worked closely with the Government to develop sol utions tailored to the specific requirements of the financial services sector.
The development of a family office product is
an expansion of wealth management sectors in Bermuda, thus demonstrating Bermuda’s commitment to
these sectors and to the Government’s diversification
mandate. With a broadening of Bermuda’s wealth management product set, there is an expectation that
opportunities for Bermudians in this sector will grow.

DEALING WITH THE COST OF LIVING

Hon. Curtis L. Dickinson: Mr. Speaker, at the begi nning of the session of this Honourable House, the
Government pledged to focus on reducing the cost of
living for Bermudians. Over the last 15 months, we
have made some progress, but there is more that
needs to be done.
The main contributors to our high cost of living
are energy, health care, housing and food prices.

Energy Costs

Hon. Curtis L. Dickinson: The Government is committed to reducing energy costs and has supported a
number of initiatives. Last year we funded an LED
bulb exchange programme which saw thousands of Bermudians participate to reduce their energy bills.
Recently, Bermudians saw reductions in core energy
rates due to a tough line the Government has taken
with Bermuda’s energy supplier.
Additionally, the Government has made it
clear to the proposed new owner of BELCO that i ncreased costs to the people of Bermuda will not s ecure our approval.
Finally, to support the transition to renewables
outlined in last year’s T hrone Speech, the Gover nment in partnership with international companies will
set up a Green Energy Fund to provide capital to deploy solar installations throughout the Island. The o bjective is simple: to provide jobs for solar installers and relief from high energy bills. Bermuda can lead
the world in renewable energy adoption, and this
Government will work to make that a reality.

Health Care Costs

Hon. Curtis L. Dickinson: Mr. Speaker, the goal of
the Bermuda Health Plan is to reduce the amount of
money that Bermudians spend on health care. Health
insurance and out -of-pocket costs provide a real cha llenge to most Bermudians, and that is why the Go vernment is focused on bringing needed reforms that
make our system more efficient while reducing co-pays and providing better coverage for preventative
care.

Housing Costs

Hon. Curtis L. Dickinson: Mr. Speaker, when it
comes to housing, the Government has taken and will
take further steps to reduce the cost of housing and
mortgages. First, we boosted competition in the mor tgage market by eliminating taxes when you transfer your mortgage to a bank that may have had a lower
interest rate.
This year the Government will, in partnership
with a local financial institution, pilot a mortgage guarantee programme aimed at reducing mortgage rates
for some Bermudian families. Last year we changed
laws which will allow international companies to invest
in approved residential schemes in our economic em-powerment zones. Investment in city residential de-velopments will result in construction jobs and an i ncrease in the available housing stock.
The objective of this initiative will be to i ncrease the supply of quality affordable residential ac-commodations in Bermuda.


Food Costs

Hon. Curtis L. Dickinson: Mr. Speaker, the Gover nment acknowledges the impact that food prices have
on the cost of living. In an effort to promote more price
transparency and aid consumers in identifying alterna3076 21 February 2020 Official Hansard Report

Bermuda House of Assembly tive food pricing, the Government will be amending
the Cost of Living Commission Act to require reporting
of prices from grocers to the Government. This information will be made availa ble to the public via mobile
application so that consumers can compare the differences in prices of staple goods.
Finally, the Government is working to support
start-up and cooperative companies who are looking
to supply foods at lower prices, by partneri ng with the
Financial Assistance programme to reduce costs not only to taxpayers but also to the general public. This is an innovative way in which money that is already being spent by the Government can be redirected to
support competition in Bermuda and reduce food pri ces.
[Desk thumping]

2019/20 FISCAL PERFORMANCE
Hon. Curtis L. Dickinson: Mr. Speaker, before co mmenting further in detail on the estimates for the fiscal
2020/21 [Budget], it is important that I provide an update on the Government’s financial performance and
the forecast for the current financial period. The for ecast of the current year’s financial performance is the
base from which the budget for fiscal 2020/21 is for-mulated.
Mr. Speaker, the Government is forecast to
earn $1.111 billi on in revenue in 2019/20. This is $7.5
million (0.7 per cent) less than the $1.118 billion in the
original estimate and is due mainly to lower than ex-pected stamp duty, hotel occupancy tax and fees for sale of land to non- Bermudians. These amounts were
partially offset by a higher collection in payroll tax.
The projected 2019/20 operating expenses for
the Government are $940.2 million, or $10.3 [million] (1.1 per cent) higher than the $929.9 million originally
budgeted. This was primarily due to a strategi c dec ision to provide financial support of $3 million to secure
winter air service from New York and Boston and subsidy funding of $7.8 million for the Bermuda Hospitals
Board as part of the block grant provided to the hosp ital in relation to the reform of health care.
Mr. Speaker, included in total operating expenses is the 2.5 per cent salary increase awarded to
some public officers. As this amount was unbudgeted,
departments have had to find savings from within their
existing budget allocations.
Revise d capital expenditures for the year are
predicted to come in at $66.1 million, or $1.3 million
[2 per cent] above the budget of $64.7 million. This
increase was due to a delay in the receipt of new buses and additional grant funding provided to the N ationa l Sports Centre to resurface the track in anticip ation of the CARIFTA Games being held in Bermuda in
April of 2020.
Debt service costs for 2019/20 are forecast to
be $2.7 million above the estimate of $116.5 million. This is due to interest and facility f ee costs in relation
to the borrowing incurred to make good on the Car oline Bay guarantees by purchasing the interests of the
Tranche B and Tranche C lenders for the project.
Given the factors outlined above, the revised
estimate of the overall deficit is $14.6 million, $22 mi llion more than the $7.4 million surplus that I projected
last year.
Mr. Speaker, while I am disappointed at this
outcome, the reality is that budgets are dynamic funding plans which are subject to unanticipated events. There is a reason these are termed “ estimates .” Considering the increased complexity of government, on
occasions we have to facilitate additional funding for
underbudgeted and/or unanticipated additional expenditures that may arise during the year, such as the Caroline Bay situation.
During this fiscal year, $180 million of Private
Placement Notes matured and were paid off from the
Sinking Fund, which reduced interest expense on an
annual basis by $12.1 million. Conversely, the Go vernment had to draw $182.4 million to meet its obligations for the Caroline Bay project and may have to
borrow another $14.6 million to fund the projected deficit for fiscal 2019/20. With regard t o the Caroline Bay
project, while the Government has a legitimate expectation to recover these costs, they had to be funded by
either new borrowing or using funds from the Consol idated Fund.
Mr. Speaker, for the remainder of this fiscal
year, the Government will continue to look for savings to offset the aforementioned overages, and the Mini stry of Finance will exercise prudent management of
funds to ensure that we do not incur any additional
borrowing. Therefore, on 31 March 2020, net debt will
stand at $2.658 billion. The Sinking Fund is projected
to be approximately $38.9 million in balance at the end of 2019/20.

2020/21 BUDGET ESTIMATES

Hon. Curtis L. Dickinson: Mr. Speaker, the 2020/21
National Budget allocates $1.141 billion in total spending over the next 12 months. This level of spending
represents a $30.9 million, or 2.8 per cent, increase
over the 2019/2020 original estimates. Revenues are
forecast to rise by a modest 0.3 per cent, or $3.7 mi llion, and the current account balance before interest
on debt and capital expenditure is budgeted to be a surplus of $186.6 million.
The current account , after interest, is also
[projected] to come in at a surplus in the amount of $65.2 million. This represents a slight decrease in the
current account surplus of $6.9 million when compared with the 2019/20 Budget. Given the aforementioned, Mr. Speaker, the Government plans to run a
deficit of $19.8 million.
The projected current account balance (excluding debt service) indicates whether revenues can


Bermuda House of Assembly support the day -to-day running of government, excluding interest on debt and capital expenditure. This
year’s budget, with a current account surplus of
$186.6 million, has sufficient revenue to cover not only
the day -to-day running of government but also interest
on debt.
Mr. Speaker, the Government anticipates
long-term borrowing in this fiscal year of $19.8 million.
This borrowing will be used to fund a portion of the
capital expenditures and is in line with one of our fi scal rules that net borrowing can only b e considered to
finance capital spending.
Mr Speaker, as at the 31st of March 2021, it is
estimated that gross public debt will stand at $2.717
billion and debt net of the Sinking Fund will be $2.678
billion, $72.4 million below the debt ceiling.

Revenues

Hon. Curtis L. Dickinson: Mr. Speaker, the revenue
estimate for 2020/21 is $1.122 billion, a modest $3.7
[million], or 0.3 per cent, higher than the original est imate for the previous year. The most significant i ncreases will be in relation to taxes on cruise ship passengers and uplifts to immigration fees. Other than
these adjustments, there are no new or increased taxes contained in the budget for the upcoming fiscal year. Rather, Mr. Speaker, we will be providing payroll
tax relief to workers and to s mall and medium -sized
businesses. We will also extend payroll tax relief to
employers with payrolls of $500,000 and above for the
creation of new jobs in Bermuda.
Mr. Speaker, the total fiscal impact of the pa yroll tax relief to workers and small and medi um-sized
businesses will be a reduction in the Government’s
payroll tax yield of approximately $6.4 million.
Honourable Members are aware that the
Government released the Pre- Budget Report in advance of this budget. The Pre- Budget Report provides
an oppor tunity for stakeholders such as businesses
and social groups to understand and comment on options for the next budget. This can give stakeholders
confidence that the Government’s budget policies are grounded in longer -term fiscal and budget strategies.
In addition, the report contains some policy options
which were under consideration by the Government.
I would like to thank all stakeholders who pr ovided submissions during the consultative pre- budget
process. It is an example of the approach this Gov-ernment will take to ensure that we conduct our bus iness in an open and transparent manner.
Following consultation, the Ministry will take
the following actions to meet the Government’s rev enue target in 2020/21:

Payroll Tax

Hon. Curtis L. Dickinson: Mr. Speaker, payroll taxes
remain a highly effective and reliable way to raise rev-enue. The yield from payroll tax is estimated at $467 million in 2020/21, or 41.7 per cent of total gover nment revenues.

Reduce the Lower Band of
Payroll Tax for Employees

Hon. Cur tis L. Dickinson: As mentioned earlier, the
Pre-Budget Report indicated that the Government
would consider reducing or eliminating the lowest
band of payroll tax to provide relief to the workers in that band. It was noted that if the Government r educed or eliminated the lowest band, it would seek to
make the yield for the employee portion of payroll tax [revenue] neutral by raising the rates in the remaining
three bands. Following the pre- budget consultation,
the Government proposes to amend rates as follow s:
• remuneration of $0– $48,000 , the rate will be
adjusted from 4 per cent to 2 per cent ;
• remuneration for $48,001– $96,000, the rate
will be adjusted from 6.5 per cent to 8.5 per
cent;
• remuneration of $96,001– $235,000, the rate
will be adjusted from 7.75 per cent to 9 per
cent; and
• remuneration greater than $235,000, the rate
will be adjusted from 8.75 per cent to 9.5 per
cent.
Mr. Speaker, following this reform, anyone
making less than $96,000 will see a reduction in t axes; anyone earning more than $96,000 will see a
slight increase in their taxes.
Additionally, the Government’s projected pa yroll tax yield is estimated to be reduced by approx imately $3.8 million as a result of this reform. An illus-tration of the combined tax savings under the new
rates for selected salaries for fiscal year 2018/19,
when we last reduced the lowest band, and this year
is set as follows: (Tax savings in more detail for this
fiscal year are in Table X in the Appendix.)


Salary Reduction
in Taxes in
2018 Reduction
in Taxes in
2020 Total
Reduction
Since 2018
$36,000 –$270 –$720 –$990
$48,000 –$260 –$960 –$1,320
$60,000 –$270 –$720 –$990
$72,000 –$180 –$480 –$660
$84,000 –$90 –$240 –$330

Incentive for Job Creation

Hon. Curtis L. Dickinson: Mr. Speaker, following the
pre-budget consultation, the Government will extend
payroll tax relief for the creation of new jobs in Bermuda to employers with payrolls of $500,000 and above. This programme will provide a two- year e mployer payroll t ax concession for additional jobs created in Bermuda.
3078 21 February 2020 Official Hansard Report

Bermuda House of Assembly Payroll Taxes for Small and
Medium -Sized Businesses

Hon. Curtis L. Dickinson: Following the pre- budget
consultation, the Government will create two new pa yroll bands between the annual payroll thresholds of
$200,000 and $500,000. This tax relief to small and
medium -sized businesses should allow them to expand their employee base. The proposed bands are
as follows:
• between $200,000 and $350,000 at a tax rate
of 3.5 per cent (a 50 per cent reduction); an d
• between $350,000 and $500,000 at a tax rate
of 6.5 per cent .

Payroll Taxes for Public Service Vehicles

Hon. Curtis L. Dickinson: Mr. Speaker, the Gover nment will expand the successful Taxi Industry Payroll
Tax scheme to all persons with public service vehicles. This includes limousines, airport limousines and
minibuses. Further consultation will occur with owners
of these vehicles in this sector before any decisions
are finalised.

Assessing the Deductible on Dividends
Paid to Shareholders

Hon. Curtis L. Dickinson: The Pre- Budget Report
signalled that the Government would assess the cost
of increasing the deductible on dividends paid to
shareholders from the $10,000 limit. Following this
initial assessment, the Government will not be i ncreas ing the deductible. Rather, we will further eval uate this proposal during the ensuing year in order to
gain a clearer understanding of the effect that it will
have on the payroll tax yield.

Customs Duty

Hon. Curtis L. Dickinson: Mr. Speaker, the yield
from customs duty is estimated at $235 million, or
21 per cent of total government revenues. There will
only be minor changes in the customs tariff such as
raising the rate on cigarettes containing tobacco substitutes in line with the rate of cigarettes, and zerorating certain items.
However, Mr. Speaker, to assist retailers, the
Ministry of Finance will expand the scope of goods
which receive relief under the Retail Shops (Temporary Customs Duty Relief) Act 2008, which provides a
zero rate of customs duty on imported capital goods
intended for the renovation and refurbishment of retail
stores.
Also, the Customs Department will ease the
financial burden on retailers by making the customs duty deferral process more user -friendly. This will a ssist retailers with their c ash flow as customs duty will
not be paid upfront but rather after they have sold at least a portion of their goods. Appropriate checks and
balances will be put in place to mitigate the risk of
non-payment of deferred duty.
Mr. Speaker, poor health choices in Bermuda,
among other things, contribute to our collective high health care costs. One of the measures put in place
by the Government to encourage healthier choices
was the sugar tax. In October 2019, following six
months of the full implementation of the sugar tax, the Cabinet authorised a review of the policy to ensure
that it was having its intended effect. Consumption of
items affected by the sugar tax in Bermuda has de-creased. People, where they can, are making healthier choices as the costs of items with sugar have i ncreased.
However, Mr. Speaker, the broad application
of the sugar tax through the customs tariff has led to
some items containing “ relatively small ” amounts of
sugar being taxed. For example, items like Sugar Free
Coffee Mate have bee n caught up by the tax when
they were not the intended target. During this session,
we will introduce amendments to the sugar tax to allow greater discretion for customs officers to waive
sugar tax duties for items containing “relatively small”
amounts of sugar.
During this fiscal year up to the 31
st of December 2019, the sugar tax has raised an additional
$4.7 million in revenue. Although monies were earmarked for programmes to assist with healthy choi ces, the needs and demands for additional funding in
the areas of mental health, public education and add itional support services for young Bermudians who
have aged out of DCFS are considered higher prior ities for the Government.
Notwithstanding the forego ing, additional
funding from sugar tax receipts has been allocated to
the Ministry of Health to work with local restaurants on an initiative to add nutritional i nformation to menus.

Biennial Fee Increase

Hon. Curtis L. Dickinson: Mr. Speaker, every two
years since 1996, the Government reviews all fees
charged for government services, such as vehicle l icences and various permits. The last biennial review of government fees was conducted in 2018, when fees were increased generally by 5 per cent. Although
this is the year in which these increases were due,
this Government will not add to the cost of gover nment services for the people of Bermuda.
So for the first time in 24 years I am happy to
let the people of Bermuda know that the Government
will not be asking you to pay more to license your car!

[Desk thumpi ng]






Bermuda House of Assembly Cruise Ship Passenger Tax

Hon. Curtis L. Dickinson: Mr. Speaker, following last
year’s notification to all cruise lines, the Ministry of
Tourism and Transport proposes to redefine the “Large Ship Infrastructure Tax” as the “Transport I nfrastructure Tax.” Additionally, the tax rate will be i ncreased from $22 to $25 per [passenger] over the age of two. The new rate will take effect from the 1
st of
May 2020 for all cruise ships that berth in Dockyard
between the 1st of April and the 31st of October, r egardless of the size or passenger count. The increase
in revenue yield from this change is estimated at $4.4
million. The majority of the revenue received from the
infrastructure tax will be used to invest in new tourism and transport infrastructure.

Inter national Company Fees

Hon. Curtis L. Dickinson: Following the pre- budget
consultation and mindful of the impact of any further
increases in company fees on Bermuda’s compet itiveness, the Government will not be amending any company fees. Mr. Speaker, the R egistrar of Companies is actively going through a transitional period.
Consequently, Mr. Speaker, to keep in step with the
modernisation of the department, the registrar has undertaken to perform a complete and holistic review
of the department’s corporate fee structure.
Mindful of the comparative consideration of
our competitive jurisdictions and Bermuda’s intention to continue attracting premium entities, and balanced
with the understanding that effective regulation of any jurisdiction brings inevitable costs, the approach will
be measured in contemplation of all of the factors that
impact industry and Bermuda’s economic framework.
The registrar, working with external consultants, is
committed to robust industry consultation and engagement as he navigates through this process with a
view to making recommendations to the Ministry by July 2020 as to what possible next steps may be a ppropriate.

Increase in Immigration Fees

Hon. Curtis L. Dickinson: Mr. Speaker, after consi dering the Tax Reform Commission’s recommendation
to increase the yield from immigration fees, the Go vernment will increase all immigration fees by 5 per
cent to ensure there is reasonable cost recovery for
the provision of the various services offered by the
Department of Immigration.

Managed Service Tax

Hon. Curtis L. Dickinson: The Pre- Budget Report
signalled that the Government was considering lev ying a tax on professional services provided by nonBermudian businesses to local and international com-panies. Following consultation, the Go vernment will
not introduce this tax.

Tax Collection and Accounts Receivable

Hon. Curtis L. Dickinson: In their recent report, the
Fiscal Responsibility Panel noted the following (and I quote):
“The Budget” (2019/20 Budget) “does, as recommended in several of our previous reports and by
the TRC, incorporate a much more determined effort to improve the efficiency and timeliness of tax collection, by increasing the resources of the Office of the
Tax Commissioner, modernising payment methods,
and improving enforcement. We are impressed by the
pace of the modernisation effort in the Tax Commi ssioner’s Office. The Government should continue to attach a high priority to ensuring that this work has the
necessary political and financial support.”
Mr. Speaker, despite this endorsement, the
Government recognises there is much more work to
be done in this area.
As per recommendations from the Caribbean
Technical Assistance Centre (CARTAC) and the Eff iciency Committee, the Office of the Tax Commission-er [OTC] has decided to modernise its tax administr ation into an organisation that operates according to modern standards and that is enabled by powerful information technology support.
Mr. Speaker, the Government will use all
available means to collect overdue taxes, t hereby i mproving the Government’s cash flow. To this end the Government is currently considering ways to suppl ement and enhance the debt collection function within government and is working through the procurement
process to engage relevant service providers that can
assist with this matter. Other options that will be eva luated include a “ tax amnesty programme. ” The pr oposed amnesty would provide eligible taxpayers with
nine months from the determined commencement
date to settle 75 per cent to 85 per cent of the total
amount overdue by more than 90 days. The remaining 25 per cent to 15 per cent will be forgiven.
Finally, the Government will assess the feas ibility of “ factoring” our accounts receivables. Mr.
Speaker, factoring is a financial transaction and a type
of debtor finance in which a business or government
sells its accounts receivable to a third party (called a
factor) at a discount. A business will factor its receiv ables to meet its present and immediate cash needs.
Mr. Speaker, too much of the OT C’s time and
resources are devoted to processing manually filed
tax returns. A new policy was implemented on the 1
st
of April of 2019 for taxpayers of gross annual payrolls
in excess of $500,000 per year. It was made manda-tory for taxpayers over that thres hold to file electron ically, using the e- tax system, starting with the quarter
ending June 2019. It is now proposed that this policy
3080 21 February 2020 Official Hansard Report

Bermuda House of Assembly be expanded to require all taxpayers with payrolls
greater than $250,000 per annum to file electronically.

Expenditures
Hon. Curtis L. Dickinson: Mr. Speaker, total expenditure including debt service of $121.4 million and capital investment of $85 million is estimated at
$1.142 billion, [which is] $30.9 million, or 2.7 per cent,
higher than in 2019/20. The primary reason for the
increase relates to the proposed increases in capital spending of $20.3 million to strengthen our infrastructure after periods of underinvestment. Mr. Speaker,
this level of spending will enable the Government to
execute on its priorities of educating our children, and
providing health care and security for our citizens and
assistance to the less fortunate. It will also allow us to
provide targeted investments to grow and diversify
Bermuda’s economy and revitalise our infrastructure
in a fiscally prudent and responsible manner.
Operating expenditure in 2020/21 is forecast
to be $935.6 million. This amount represents an i ncrease of $5.7 million, or 0.6 per cent, over the
2019/20 original estimate of $929.9 million. Holding nominal programme spending gro wth to this level this
fiscal year means that, in real terms, the Government
is reducing spending across the board.
Mr. Speaker, the increase in operating expenditure is directly related to the vision of improved and expanded services and programmes. The major
drivers for this adjusted operating expenditure by the
Ministry are as follows:
• Cabinet Department —to fund an implement ation team in central government to support the implementation of various government pr oposals;
• Ministry of Legal Affairs —funding f or oper ational programmes for young people too old for children’s facilities , and increased grant
funding;
• Ministry of Finance —funding for additional
posts in the Registrar of Companies for ec onomic substance regulatory framework , and
increased grant fundi ng for the Bermuda Pu blic Accountability Board;
• Ministry of Health—funding for community
mental health programmes and increased
grant funding; and finally,
• Ministry of Education—funding for enhanced student behaviour management services, educational therapists and counselling services .
Mr. Speaker, the Government is committed to
aggressively managing our expenditure, and in order
to determine high- priority policy programmes, the
Budget Office reintroduced zero- based budgeting
[ZBB] for the upcoming f iscal year. Policy prioritisation
at the start of the budget process will facilitate a better
alignment of the allocation of limited resources with the Government’s overall policy initiatives and objectives.
ZBB is a method of budgeting in which all expenditures must be justified starting from zero. ZBB
involves a fundamental re -examination of all depar tment business units/services, and justification of funding and performance. This method requires that each
department analyse its entire budget request in detail,
both current and proposed new services, in order to
identify the most effective and efficient methods for
service delivery and resource allocation. This analysis includes examination of the service’s purpose or objectives, alternative service deliv ery models, proposed
service levels and resource requirements, cons equences or risks of not providing the service and the benefits and outcomes of each service level. Once the
analysis has been completed, all service levels for each department are ranked and a consolidation and
final ranking of all the departments within a ministry
are composed.
Mr. Speaker, the respective Ministers have
reviewed the final ministerial rankings and agreed the
priorities and spending proposals, after which all su bmissions ha ve been presented to the Cabinet.

Debt Service

Hon. Curtis L. Dickinson: Mr. Speaker, debt service
costs for 2020/21 are projected at $121.4 million. A pproximately $7.9 [million] of this expenditure is related
to the Caroline Bay project. It is well recognised that
interest rates are relatively low, and the Ministry will therefore use the opportunity not only to finance the
2020/21 deficit but also to refinance the loan agreement arranged to facilitate the Caroline Bay obligations and to refinance existing more expensive go vernment debt at a more favourable [interest] rate, therefore reducing debt service pressure on the budget.

Capital Expenditures

Hon. Curtis L. Dickinson: Mr. Speaker, I will turn
now to capital investment. The Government remains
commi tted to making sound capital investments which
will revitalise the country’s infrastructure, support
growth, create jobs and improve our quality of life.
The capital expenditure component of the
2020/21 Budget is set at $85 million, $20.3 million higher t han the 2019/20 original estimate. The most
significant items of capital development expenditure in
the 2020/21 Budget relate to upgrading the Parliament
Building and relocating the courts ($3.2 million), major
building upgrades ($3.1 million), school maintenance
($3 million) and roadworks ($2.8 million). While most
of the planned investment is related to construction
projects, there is a capital acquisition provision of $24.9 million, which includes IT developments across
government ($9.1 million) and new public buses ($4.4


Bermuda House of Assembly million), ferries ($2 million) and other vehicles to support public service delivery.

MINISTRY HIGHLIGHTS
Hon. Curtis L. Dickinson: Mr. Speaker, I will now
review highlights from the 10 Ministries that form the Government.

Ministry of Education
Hon. Curtis L. Dickinson: Mr. Speaker, the Ministry
of Education will receive a budget allocation of $137.6 million, which is $512,000 higher than last fiscal year.
The Ministry of Education has allocated an
estimated total of $2.1 million in fiscal year 2020/21
for funding additional initiatives that support the ex ecution of Plan 2022 strategies, and to continue the administration of the merit -based College Promise
programme for public school graduates to attend the
Bermuda College.
Focus wil l be placed on the restructuring and
redesign of the Bermuda Public School System and the provision of key wrap- around services needed for
students who exhibit severe behaviours in public
schools.
Mr. Speaker, changing severe student beha viours requires c onsistent, daily intervention and support. Accordingly, two support centres will be intr oduced in the public school system for the primary
school level and the middle/senior school level at a
cost of approximately $520,000. Full -time professionals that inc lude education therapists and school counsellors will be hired.
Mr. Speaker, a total of $1.4 million will support
the commencement of redesigning and restructuring
the Bermuda Public School System in alignment with
adaptive strategies outlined in Plan 2022. In addition
to the Government’s platform initiative to phase out
middle schools, Plan 2022 outlines the longer -term
transformational strategy of establishing specialised
schools which focus on the projected needs of the
community. Plan 2022 also states the need for reno-vating and/or consolidating school facilities. This r equires the redesign and reconfiguration of schools.
Mr. Speaker, the Bermuda College will continue to receive a grant to give our public school senior students greater access to the college. As a result,
the Ministry has allocated $250,000 for the College
Promise Programme that was introduced to the college during the previous budget year.

Ministry of Public Works

Hon. Curtis L. Dickinson: Mr. Speaker, the Ministry
of Public Works provides highly visible services and
infrastructure to the Island. This infrastructure must be
well maintained to ensure the safety of users and lo ngevity of use to achieve operational efficiencies. The Ministry provides the stated services and infrastructure through its six departments and has budgeted to
spend $41.2 million in capital development inclusive of
grant funding to quangos, $3.4 million in capital acqu isitions and $73.3 million in operations in 2020/21. The
Ministry’s current expenditure allocat ion is the same
as the last fiscal year.
Mr. Speaker, charged with the responsibility of
efficient management of the government property
portfolio, the Department of Public Lands and Buil dings has an operational budget of $19.9 million in
2020/21 and will be working on the refurbishment of
the Parliament Building, as well as other buildings;
schools maintenance; major building upgrades; and
various office relocations and alterations.
The Department of Land Valuation maintains
an accurate and up- to-date valuation list of all properties in Bermuda for land tax purposes, including the
quinquennial revaluation of those properties in accordance with the Land Valuation and Tax Act 1967.
In this fiscal year, the department will conduct its
quinquennial revaluatio n of land, after which the 2020
Draft Valuation List will be produced.

Ministry of Labour, Community Affairs and Sports

Hon. Curtis L. Dickinson: Mr. Speaker, the Ministry
of Labour, Community Affairs and Sports will receive a budget allocation of $18.7 million, the same as the
2019/20 allocation.
The Ministry has a number of key initiatives,
including modernisation of labour laws, the implemen-tation of a living wage and pay equity for Bermudians,
which will be delivered during the next fiscal year. D epartments within the Ministry will also be increasing opportunities for Bermudians through sports, wor kforce development, and community and cultural af-fairs.
The Department of Workforce Development
will be increasing opportunities for Bermudians, with an increase in budget for scholarships of $100,000 to
$450,000 and an increase in budget for apprentic eships by $25,000 to $420,000. This reflects the commitment of the Ministry and department to the deve lopment of our workforce and assisting Bermudians to
become job- ready.

Ministry of Health

Hon. Curtis L. Dickinson: Mr. Speaker, the Health
Ministry’s budget for next year will be $243.3 million,
which is an increase of $1.9 million. The Ministry of
Health leads the country’s health system to promote
and protect Bermuda’s health. The Ministry comprises
five budget heads that fund seven departments; two
quangos; and 29 boards, councils and committees.
Together these entities work to improve the quality, access and sustainability of health services.
3082 21 February 2020 Official Hansard Report

Bermuda House of Assembly The Health M inistry’s budget is among the few
that have received additional funding for the upcoming
fiscal year 2020/21. This increase reflects the Go vernment’s recognition and commitment to the fragility of some of our health services and funded pr ogrammes, and the significant value health plays in
Bermuda’s economic growth. This increase will assist
in providing new community mental health services
and increased funding to senior care facilities.
Mr. Speaker, the Ministry continues to address the needs of adults wi th intellectual disabilities
and mental health problems, some of whom have no
next of kin and therefore need the care of the state.
Currently, the Ministry has to care for two individuals
in overseas institutions as there is no local capacity to meet their disability or mental health needs, respectively, one individual costing $256,000 per year and the other approximately $350,000 in the upcoming
year.
These are just examples of the extraordinary
circumstances dealt with by this Ministry, which is
charged with a significant mandate over a sector that
consumes 11 per cent of the country’s GDP and represents the largest government budget. This is money
well spent, however, because the health budget is not
just expenditure—it is an investment in the economic
prosperity of the country, which requires a healthy,
productive and economically active population.

Ministry of Finance

Hon. Curtis L. Dickinson: Mr. Speaker, the Ministry
of Finance, excluding debt service, is provided with a
budget of $105.1 million— an increase of $750,000, or
0.7 per cent. The majority of the Finance Ministry’s
allocation ($84.7 million, or 81 per cent) relates to
non-discretionary expenditure, which includes an estimate of government overhead and payments made
under the programme for w ar veterans.
The bulk of the increase in the Ministry’s
budget has been allocated to the Registrar of Companies [ROC]. These funds will primarily be used for additional resources required to monitor and enforce Bermuda’s economic substance regime in line with
the OECD standards. Additionally, the ROC has em-barked upon implementation of a new IT registry sy stem. Phase one of the system, which deals with ec onomic substance, will be rolled out before June 2020,
with the other phases being finalised later in 2020.
Mr. Speaker, Bermuda continues to face a
number of external tax and regulatory threats. These
threats pose a real and present danger to our econ omy. During the upcoming year, the Ministry has had to
reprioritise funds in order to provide additional grant
funding for the Bermuda Public Accountability Board.
The primary function of the board is to oversee the supervision and enforcement of auditors who carry out
business in Europe in accordance with the Bermuda
Public Accountability Board Act 2011. The board’s primary goal is to achieve equivalency with the audit
requirements set down in Article 45 of the EU Audit
Directive. This board has been operating with effect
from the 11
th of July 2012 with minimal funding. The
Government has determined that a ful ly operational
secretariat or office should be set up to add substance to the process. This is also seen as a positive step in
gaining the equivalence stature from the EU.
Mr. Speaker, the Ministry of Finance is r esponsible for the collection of the major ity of gover nment revenue, and in 2018/19 collected $948.5 mi llion, or 86 per cent, of government revenues. Accor dingly, it is critical that the capacity of the revenuecollecting departments to effectively collect revenues
is maintained. The budget of the OTC [Office of the
Tax Collector] has been increased as it seeks to e mbark on a tax administration modernisation pr ogramme.
Additional funding has been provided to the
Department of Social Insurance to fund a much-deserved pension increase for our war veterans. F inally, Mr. Speaker, the Ministry of Finance will keep
the Progressive Labour Party platform promise by i ncreasing pensions for our seniors by the rate of infl ation this year, and every year as long as we are in office.

[Desk thumping]

Cabinet Office

Hon. Curtis L. Dickinson: The Cabinet Office departments will receive a budget allocation of $48.2
million, which is $2.2 million, or 2 per cent, higher than
in 2019/20. Mr. Speaker, of this amount, $1.5 million represents the centralisation of Permanent Secretary
salaries from other Ministries to the Cabinet Office.
Also, key initiatives to diversify the economy
and promote economic growth in Bermuda demand
the attention of specialists and leaders in their respective fields. This can only be achieved for Bermuda if
we commit to the engagement of specific resources
tasked with breaking through the regulatory and tec hnical gridlock that often serves to restrict new ec onomic growth. Therefore, the additional funding for the
Cabinet Office is provided for the assembly of an i mplementat ion team which will drive the delivery of i mportant initiatives identified by BermudaFirst.
Mr. Speaker, the Government’s agenda is
ambitious, and for the pace of reform to increase there
must be dedicated resources to advance initiatives
without the dist ractions of the routine matters assoc iated with public service administration.
The Cabinet Office will continue its drive for
government -wide reform during the budget year.
Some of the long- term goals of this reform are digital isation of government forms, online payment for go vernment services and a paperless office environment.


Bermuda House of Assembly The reform also includes a programme of developing
the potential and leadership within the civil service.
Mr. Speaker, the post office will continue its
phased installation of sys tems which will enable it to
provide enhanced services and products to the public,
such as accepting payment for various government
services at its different locations. The post office is
also looking to enhance its courier service capabilities
with a view to providing a reliable, competitive and
cost-effective parcel delivery service. The post office
is in the second of three phases of this implement ation, with the result being vastly improved services
and offerings.
As recently announced by the Honourabl e
Premier, a new department to be called the Economic
Development Department will be established during
this new budget year. The Cabinet has already approved the creation of this department, and this fiscal
year will see its structure put into place with the redeployment of staff in the Business Development Unit,
the FinTech Unit and the Department of Information and Communication Technology. The primary aim of
this new department is to advance the sustainable
growth, development and diversity of our economy. To
achieve this, the department will create a strategy for
economic development and diversification for Berm uda, which we envision will lead to economic growth
and diversification.
Mr. Speaker, the Department of Information
and Digital Technology will be allocated capital funding for several systems upgrades. These include tel ephone systems upgrades, portal upgrades and digita lisation of a variety of services. In addition, funds will be spent on systems upgrades to accommodate growing business demands across government.
The BEDC will receive a capital grant of $1
million towards the establishment of the Uptown D evelopment Authority. The mission of this BEDC sub-sidiary will be to implement the new North- East Hami lton Development Plan and drive residenti al development projects in North- East Hamilton.

Ministry of Tourism and Transport

Hon. Curtis L. Dickinson: Mr. Speaker, the budget
for the Ministry of Tourism and Transport will remain
at $88.3 million in the upcoming fiscal year. In addition
to funding the Departments of Transport Control, Public Transportation, and Marine and Ports Services, the
Ministry provides grants to the BTA [Bermuda Tourism
Authority] and the Bermuda Airport Authority [BAA].
Mr. Speaker, the National Tourism Plan
[NTP], which w as released in 2018, set out a multi -
year roadmap for our aspirational future for tourism by providing a collaborative way forward from infrastructure improvements to greater year -round visitor balance and greener, more sustainable approaches. The
BTA will work with its partners and stakeholders to
achieve the aims of the National Tourism Plan. The 2020/21 grant to the BTA of $22.5 million
has been maintained at the same level as 2019/20.
However, as noted earlier, the pending restructuring
of the BTA may cause some of this grant to be red irected as a result of the restructuring.
As mentioned previously, the Ministry of Tourism and Transport advised the cruise ships of the i mplementation of the new transport infrastructure tax.
(The large ship infrastructure tax has been repealed.)
The bulk of these increased taxes will be allocated to
the refitting of government marine vessels and the purchase of public transportation infrastructure.
Mr. Speaker, recognising the critical i mportance of air service for Berm uda’s economic and
social well -being, the Ministry of Tourism and
Transport continues to collaborate with the Bermuda Tourism Authority, the BAA, Bermuda Skyport Corpo-ration Limited and other key stakeholders to develop
and implement a comprehensive air service development strategy for the Island.
The goal of this strategy is to attract, expand
and maintain a sustainable air service that meets
Bermuda’s diverse and evolving needs. This Gover nment has set aside $1.2 million in the upcoming financial year to support credible, commercially viable air
service opportunities which align with our strategic
priorities. Additionally, this Government remains
committed to ensuring all community partners play their part to support air service development for the
Island .

Ministry of National Security

Hon. Curtis L. Dickinson: The Ministry of National
Security has been provided with a budget of $134.8
million, the same as last year.
Mr. Speaker, the Ministry of National Security
has embarked on a reallocation initiative within the
Ministry to better align funding with strategic and o perational priorities. This has been achieved by reall ocating funds from the Bermuda Police Service while
still fully maintaining front -line police levels and capabilities at current levels. In particular, the department
will benefit from more than $1 million in savings as a
result of lower costs for its public safety radios.
The Ministry has prioritised an increase for the
Royal Bermuda Regiment to launch the Bermuda
Coast Guard. A dditionally, funding for maintenance
has increased at the Department of Corrections.
Mr. Speaker, the Ministry will continue work in
the area of gang violence reduction initiatives, which
includes the continuation of the Redemption Farm
programme, the wor k placement programme, youth
prevention programmes in selected schools, the expected launch of an anti -bullying app and the restor ative circle interventions. All of these initiatives are f ocused on the target audience of at -risk youth and aim
to increase executive functioning skills. Additionally,
3084 21 February 2020 Official Hansard Report

Bermuda House of Assembly the Department of Customs will start development of
an export control regime for Bermuda.
Capital funding for the Ministry has been a ppropriated for continuing projects in fiscal 2020/21,
which includes the compl etion of the cross -
departmental public safety radio system, and CCTV
upgrades for both the Bermuda Police Service and the
Department of Corrections. The Ministry will complete
the implementation of the border management system
for the Department of Immigration, which is critical for
the opening of the redevelopment of the L. F. Wade International Airport. This is a critical dependency for
the implementation of e- gates at the new airport. New
capital project initiatives for the Ministry of National
Security for fiscal 2020/21 include the purchase of a
new fire truck and a new ambulance for the Bermuda
Fire and Rescue Services, in addition to upgrades and
remediation for airport fire service buildings.

Ministry of Legal Affairs

Hon. Curtis L. Dickinson: The Ministry of Legal A ffairs will receive $50.1 million in the upcoming year.
This represents an increase of $1,063,000, or 2 per
cent, from the current 2019/20 fiscal year.
Mr. Speaker, the safeguarding of children is
paramount. As the representatives of our future gen-erations, our children are valuable members of our
society and deserve to be protected and kept safe.
Therefore, $750,000 of the increase in funds will be
allocated to programmes within the Department of
Child and Family Services. A portion wil l be allocated
to the Psycho- Educational Programme, which has
been underfunded for several years. The programme provides children and youth with protection, care and
nurturance by licensed overseas therapeutic facilities.
It was developed to focus on children who could not
be effectively treated in Bermuda or those who had
exhausted all available local therapeutic/treatment
services.
Mr. Speaker, in the 2020/21 year, a trans itional living regime for children who are too old for the care of Child and Family Services will be established.
At the age of 18, children in care, most of whom have
spent the majority of their childhood receiving services
from the department, shift from being dependent on support from the department to depending on themselves. Many ar e not ready for the transition to adul thood.
A transitional living facility will offer both a residential programme and a community -based pr ogramme, which will be aligned. The residential pr ogramme will ensure housing stability, while the com-munity -based programme will provide case management support, guidance, and connection to educational, vocational, mental health services and life skills coaching. It is essential to ensure that the needs of
these children are addressed to improve the quality of their l ives and afford them the opportunity to be successful, contributing members of our community.

Ministry of Home Affairs

Hon. Curtis L. Dickinson: Mr. Speaker, the Ministry
of Home Affairs has been provided with a budget all ocation of approximately $18 mil lion.
In the upcoming fiscal year, a consumer pr otection Bill will be tabled to address transparency and
equitable treatment of consumers who use banking and mortgage services. The Consumer Affairs Section
will also be introducing amendments to the Landlord
and Tenant Act 1974 and the Rent Increases (Domestic Premises) Control Act 1978 to harmonise the two
Acts to reflect today’s rental market and to provide
tenancy rights to boarding house residents. The Mini stry’s priority is to ensure that the legislati ve framework
reflects the requirements of both the tenant and lan dlord to create a fair and reasonable partnership
through the creation of one comprehensive Act.
Mr. Speaker, to move towards solar energy
and provide opportunity for Bermudians, the Depar tment of Energy will be establishing a training pr ogramme for solar installers.
The Department of Planning is also working
on initiatives for streamlining the planning application
process. The department will also formulate proc edures for emergency applicat ions and other minor or
fast-track developments, such as seasonal structures.
A new initiative that is being explored by the depar tment is the creation of a Competent Persons Register where minor works can be undertaken without the
normal required inspecti ons, provided the industry
tradespersons meet a set of criteria (to be defined) and is therefore licensed.
Finally, Mr. Speaker, there will soon be a le gislative amendment to the Regulatory Act 2011 to i ntroduce a “ regulatory sandbox ” for testing of renew able energy that is not yet commercially available. This initiative is being progressed by a team including the
Regulatory Authority and the Departments of Planning, Energy, and Environment and Natural R esources.

CONCLUSION

Hon. Curtis L. Dickinson: Mr. Speaker, at the dawn
of this new decade the promise of the 21
st century
remains unfulfilled for too many Bermudians. A generation now knows austerity as the new normal. The
governments they have known in their lives thus far
have used numerous terms to explain or justify the
inability of Bermuda to shed the constraints imposed
by a global economic downturn that started in 2008.
There is a palpable frustration across demographics that see Bermuda as a whole; small businesses, hardworking families and eager young people are quesBermuda House of Assembly tioning the fundamentals of our economy and whether
there is hope.
Mr. Speaker, the responsibility of gover nments is to channel the mood and needs of the people
into action. This country needs economic activity. Our economy needs diversification and growth. Our pe ople need work, success and hope. This fiscal year
must be one of action. This Government has taken the
steps necessary to stimulate the activity needed in
this economy. We have added more to the existing
regimens that work to support economic growth and
diversification. And most importantly, we have
strengthened the social safety net that is demanded
by modern societies.
The challenge that is before us amounts to a
call to action for all sectors of our society. The public
service must hone its skills and deliver on the ambitious programmes set by the country’s duly elected Government. We as elected officials on both sides
must put away our petty politics and recognise that
the sacred trust of the electorate means more now than ever. Businesses must treat employees fairly,
paying wage deductions in support of payroll tax, s ocial insurance and pension contributions, and health
insurance premiums, as required by the law of the
land. Those who have more must reach back and
bring al ong those who have less. Young people must
commit to excellence and to sharing that excellence to
build the country they want to see.
Mr. Speaker, this call to action brings to mind
the words of an African proverb: If you wish to move a
mountain tomorrow, you must start lifting stones t oday. Our commitment to leadership is to do just that:
We will lift up people, we will empower people to lift up
themselves and others, and we will build that fairer
and better Bermuda on which our people are coun ting.
Mr. Speaker, I am pleased and humbled
therefore to present for the consideration of this Honourable House the Estimates of Revenue and E xpenditure for Fiscal Year 2020/21. Thank you, Mr.
Speaker.
[Desk thumping]