June 2, 2025

Thank you, Minister Wilkerson, for
summarising and responding to the issues and questions that were raised.
Senators, that completes the General Economic Debate. We will now enter the specific debate
of the Schedule that you have before you. This afternoon we will be debating the General Economic Debate in Finance Committee, and at this stage the
President removes herself from—

[Crosstalk]

The President: Yes.
Minister.

Sen. the Hon. Kim Wilkerson: Thank you , Madam
President.

The President: You will move us into Committee.

Sen. the Hon. Kim Wilkerson: I move that we move
to Committee of the whole.
The President: Thank you.
And I will call on the Senator John Wight, the
Vice President, because in Committee stage it is run
by the Chairpersons of the Committee.
Senator Wight, you have the floor.

Sen. John Wight: Thank you, Madam President. I'll
do my best to make you proud of me.

[Laughter]

Senate in Committee at 2:34 pm

[Sen. John Wight, Chairman]

COMMITTEE OF SUPPLY

ESTIMATES OF REVENUE AND EXPENDITURE
FOR THE YEAR 2025/26

So, Senators, we are now in the
Committee of the whole for further consideration of
the Appropriation Act 2025 together with Estimates of
Revenue and Expenditure for the year 2025/26.
The Ministry under consideration is Finance.
The heads for debate under the Ministry are Head 10
. . . and for those with their Budget Book in front of
them, this is on page B -107. Head 11 is on page B -111. Head 38 is on page B -120. And Head 58 is on
page B -132.
The number of hours allocated to these heads
is two. The Senator, Minister in charge is Crystal Cae-sar. The start time is 2:36 [pm]. So, our finish time will
be 4:36 [pm].
Senator, how do you wish to proceed?
Sen. the Hon. Crystal Caesar: Mr. Chairman, good
afternoon.
I move that the Committee do now undertake
consideration of Head 10 Ministry of Finance Headquarters; Head 11 Accountant General; Head 38 Office of the Tax Commissioner; and Head 58, Debt and
Loan Guarantees.

Thank you, Senator.
Please proceed.

MINISTRY OF FINANCE
Sen. the Hon. Crystal Caesar: Thank you, Mr.
Chairman.
Mr. Chairman, the 2025/26 Budget Estimates
for the Ministry of Finance are found in section B of
the Estimates Book on pages B -106 through B -132
and in section C on pages C -4 (Capital Development),
C-11 (Capital Acquisitions), and C -[17] (Grants).
The Finance Ministry comprises seven departments led by the Ministry of Finance Headquarters (HQ) and includes the Accountant General, Customs
(in relation to Revenue), the Department of Social Insurance, the Office of the Tax Commissioner, the Registrar of Companies and Land Valuation. Allocations to cover the interest on government debt, guarantee management, the Bermuda Public Accountability Board, Gaming Commission and the Corporate
Income Tax Agency are also included in the Ministry
of Finance budget.
Mr. Chairman, the Ministry has a total staffing
establishment of 188 posts, an aggregate current account budget of $266.6 million and is responsible for
collecting $1.31 billion, or 91.6 per cent of all government revenue. Of the $266.6 million in expenditure,
$127.1 million (or 47 [.7] per cent) is for interest charges, $100.2 million (or 37.6 per cent) for costs associated with pension and health care for all government workers and war veterans. Leaving $39.3 million (or
14.7 per cent) for operational spend. A snapshot of
key information for the Ministry of Finance is shown
on page B -106 of the Estimates Book.
Mr. Chairman, the Finance Ministry plays a
pivotal role in the work undertaken to ensure the on-going stability and prosperity of Bermuda, particularly
given the serious local and global economic uncertain-ty currently faced by our country and others around
the world. Over the past eight years since this Government took office, you would have noted a recurring
theme; that is, the Government’s resolve to develop
130 2 June 2025 Official Hansard Report

Bermuda Senate and implement a consistent and considered strategy
to diversify and strengthen Bermuda’s economy and
to support its people, while executing a sound and
prudent fiscal management strategy. It is noteworthy
that after many years of deficit budgets, this budget follows last year's budget by delivering a budget surplus.
The Ministry of Finance has been a key player
in overseeing the execution of this Government’s fiscal strategy. The key areas of focus in this strategy
are
• targeted investment and tax policies to enhance economic growth by attracting investment that creates jobs and reduce the costs of
businesses.
• by also making Bermuda’s tax system fairer
while reducing the tax burden for workers
• modernising Bermuda’s regulatory regime,
• maintaining fiscal discipline by meeting, and in
many cases exceeding, budget targets; and
• by developing and finalising the Corporate Income Tax Regime in support of Bermuda’s
continued commitment to global compliance
and transparency.
Mr. Chairman, we have a responsibility to the
people of this country to provide the best fiscal and
economic management possible. To this end, we will
continue to make necessary decisions —often tough
decisions that are not politically expedient –required to
sustainably grow Bermuda’s economy in the long term, reduce the tax burden on workers, and provide the necessary support and services to make [Bermuda] a quality place to live and work.
Mr. Chairman, Bermuda continues to be faced
with significant challenges which, if not appropriately
managed, can damage our economic security and
stability. To that end, the Ministry of Finance budget has been carefully constructed to ensure that the Ministry’s in -house team, supported by various external
stakeholders and consultants are able to lead the
Government’s fiscal and economic policies aptly and
responsibly. Given the ever -increasing threats and
expanding obligations which Bermuda must address
ensuring that the Ministry is appropriately resourced and structured continues to be a priority.
During the past year reviews of resources in
key areas were undertaken, and active steps are already being taken to address identified gaps. The additional funding required has therefore been included
in the cost estimates for the relevant units and departments, contributing to notable increases in some
areas, with appropriate reductions in other areas. Key
initiatives which will have to be progressed include:
• Banking, tax and pension reform.
• More targeted debt collection.
• Expanded compliance and regulatory oversight, and enhanced adherence to international requirements. • Enhancing Bermuda’s reputation as a global leader in FinTech by maintaining and developing our robust regulatory framework for digital
assets.
• Support the important work required to
strengthen the Financial Literacy of our population. Help empower people to take ownership of their finances and make well -informed
financial decisions.
• Support the work of the Tax Reform Commission to recommend a revised tax framework
for Bermuda.
• And finally, the Registrar of Companies will
advance the implementation of a central register for beneficial ownership, in line with Bermuda’s international commitments.

Mission Statement and Key Goals and Objectives
Mission Statement

Sen. the Hon. Crystal Caesar: Mr. Chairman, the
Ministry of Finance’s mission [statement] reads as
follows: Achievement of economic prosperity and to
ensure the financial security of Bermuda.
In line with this, the Ministry’s objectives can
be found on page B -107, and they are broadly in line
with the objectives from the previous year.
During the past year we were able to move
forward in a number of key areas and in this brief we will highlight the key accomplishments. These include
improvement in the collection of tax and pension arrears totalling $29.5 million, the development and implementation of landmark corporate income tax legislation, the provision of additional relief to the workers
and businesses in Bermuda, cutting payroll taxes by 86 per cent of Bermudians, continued compliance with
international requirements, maintenance of strong
credit ratings, and continued successful implementation of a sound and prudent fiscal management policy
resulting in achieving an estimated surplus in 2024/25
of $20 million compared to the original budget surplus
of $210,000.
As we go forward into this coming year, we
will continue to build on the strong foundation that has
been established with focus on economic growth;
maintaining Bermuda’s positive reputation as a repu-table international financial centre, executing a prudent fiscal strategy balanced by our commitment to
appropriately meeting the needs of the people of
Bermuda, while seeking to build a more fair and more
just society.
I will now speak to the various units and departments that comprise the Ministry of Finance start-ing with Head 10, Ministry of Finance Headquarters.

HEAD 10 —MINISTRY OF FINANCE
HEADQUARTERS (HQ)



Bermuda Senate Sen. the Hon. Crystal Caesar: Mr. Chairman, the
Ministry’s Headquarters core functions are conducted
under Head 10, Ministry of Finance Headquarters
which can be found on page B -108.
The Ministry of Finance Headquarters’ mission is as follows (as I have previously stated):
Achievement of economic prosperity and to ensure
the financial security of Bermuda.
In discharging its functions under the overall
policy direction of the Minister of Finance, the Ministry
of Finance HQ seeks to achieve the following out-comes:
• A Bermuda that maintains its position as a
domicile of choice for international business.
• A Bermuda where citizens have confidence in
Government’s stewardship of the public
purse.
• A Bermuda where funding and resources are
available for key programmes and initiatives.
• A Bermuda where citizens regard Govern-ment’s policy responses to economic and financial challenges as appropriate and in the national interest.
Mr. Chairman, in seeking to fulfil this mandate, the Ministry of Finance HQ has a staff estab-lishment of 19 (18 in the prior year) permanent full -
time posts as per page B -109 of the Budget Book. Its
total budget for 2025/26 is $11.82 million, split be-tween operational costs of $6.20 million and grants of
$5.58 million. Total costs have risen by $4.20 million,
or 64.6 per cent against the original budget, but decreased against the 2024/25 revision of $12.70 million, by $850,000, or 6.7 per cent. The noticeable increase in spend from the original budget to the revised estimate is due to an additional $3.50 million
being granted directly to the Corporate Income Tax Agency and an additional $993,000 being issued to
the Policy, Planning and Business Units.
The main driver for this increase is now that
the matters related to cyber insurance at a cost of
$560,000. The policy began in 2024/25 and costs
were allocated after the prior year’s budget was completed.
A further $427,000 is to cover the union negotiated wage increase plus the additional head to ena-ble guarantee management being bought in house. Within the department $450,000 has been allocated to
the Tax Reform Commission. Funding for the following entities remains the same as the prior year: Bermuda Public Accountancy Board, $400,000; Gaming
Commission, $800,000; and the Pension Commission,
nill.

Revenue Projections

Sen. the Hon. Crystal Caesar: Mr. Chairman, a revenue summary for the Ministry of Finance Headquar-ters can be found on page B -109 of the Budget Book.
I am pleased to announce that $187.5 million has been budgeted in 2025/26 for the first instalment of
the Corporate Income Tax.
Within the 2024/25 revised estimate, there is
an additional $6.85 million of revenue as the Bermuda
Monetary Authority achieved a significant surplus through higher fees and stringent cost control and returned 50 per cent of the operating surplus net of fines
in accordance with the Bermuda Monetary Authority
Act 1969.
The $2.6 million in 2023/24 can be broken
down into $917,000 re- imbursement costs related to
the Morgan’s Point project and $1.7 million relating to
legal costs for the Fairmont Southampton Princess.
These costs are within Head 58.

Capital Spend

Sen. the Hon. Crystal Caesar: Mr. Chairman, the
capital spend for 2025/26 can be found on pages C -4
(capital development) and C -11 (capital acquisitions).
There are no capital developments for the Ministry of
Finance in 2025/26; however, capital acquisitions are
budgeted at $160,000, down from $866,000 in
2024/25. The majority of this reduction is due to the
Ministry not funding the CITA (the Corporate Income
Tax [Agency]) via a capital grant.

Key Performance Measures

Sen. the Hon. Crystal Caesar: Mr. Chairman, the
Key Performance Measures for the Ministry of Finance can be found on page B -110 of the Budget
Book.
Bermuda’s Gross Domestic Product (GDP),
the main measure of economic growth, is estimated to
have expanded in real terms between 4.5 per cent
and 5.0 per cent in 2024. This positive momentum
reflects the strength of our international business sector and the continued recovery in tourism, supported
by robust job growth, rising employment income, increased visitor arrivals and spending, and strong foreign currency earnings.
Looking forward, the Government is prudently
budgeting growth of 3.5 per cent in 2025/26, this together with projected revenues from the corporate
income tax, will see important metrics for debt and
interest ratios reducing in 2025/26, and even further
[reductions] in 2026/27 when a portion of Bermuda’s
debt is expected to be paid off.

Cost Centre 20000, Policy Planning and
Management
Sen. the Hon. Crystal Caesar: [This is] in the amount
of $3.6 million, an increase of $993,000, or [37.1] per
cent.
Mr. Chairman, the 2025/26 budget estimate
for the Policy, Planning and Management unit is $3.67
million, an increase of $993,000, or 37.1 per cent (as
132 2 June 2025 Official Hansard Report

Bermuda Senate previously mentioned) over 2024/25. This unit, under
the leadership of the Financial Secretary provides advice and support to the Minister of Finance, as well as
overall strategic direction, oversight and management
of Ministry Headquarters and the departments that comprise the Ministry of Finance.
The total staff in the unit is eight persons. In
the prior year there were seven.
The Tax Reform Commission continues to be
funded in full by the Ministry in 2025/26. This entity comprises of participants from both political parties, the trade unions, business communities and the third
sector. In 2025/26, they will deliver their final report
focusing on three key areas:
1. Reviewing the implications of the Corporate Income Tax for local and international business. They also have a broader remit to rec-ommend a framework to encourage investment and economic activity in Bermuda
through appropriate incentives.
2. Developing a strategy to reduce the cost of
living and business operations in Bermuda.
This includes evaluating the social and economic impacts of proposed reforms on various
demographics and modelling the impacts of revising two larger cost categories —payroll
tax and health care —for both individuals and
companies.
3. Educate, inform and engage stakeholders to
develop their policies and strategies.

Key Highlights for 2024/25 for the Ministry of Finance
Headquarters

Sen. the Hon. Crystal Caesar: Key highlights for
2024/25 for the Ministry of Finance included
• Coordinating the activities of the International Tax Working group, culminating in the introduction of Corporation Income Tax legislation
and subsequent Corporate Income Tax Agen-cy.
• Oversight of the Fairmont Southampton Princess deal, which was finalised in October
2024, to bring additional beds back to the Is-land, which will substantially increase tourism
revenue.
• Managed relationships with the sovereign tax
rating agencies and assisted in ensuring that Bermuda kept its rating of A+, a key driver for
the international business sector.
I would like to express my sincere thanks to
the team who have supported both myself and the
Financial Secretary, Mr. Chidozie Ofoego, who joined
the Ministry in April 2024 and has successfully navigated the first year in office, or just over a year.
For the upcoming year, key projects will include:
• Continue advancement of the corporate income tax regime both internally and in part-nership with the Corporate Income Tax Agen-cy.
• Work with quangos to further strengthen fi-nancial accountability and governance.
• Work with other teams to assist in the analysis
of costs and to assess the financing options
for major projects including health care reform, education reform, and the Tynes Bay
Waste -to-Energy Facility replacement.
• Work with the Bermuda Monetary Authority and industry stakeholders to review home insurance regulations and explore policy reforms.
• Support Chambers to strengthen laws to protect mortgage and lending customers facing
financial difficulties, ensuring that banks treat Bermudians fairly in their borrowing practices.
• Support for the Tax Reform Commission so
that the burden of taxation remains fair and
balanced.
• Support and establish a Sovereign Wealth
Fund, an independent body that will invest excess proceeds from the corporate income tax to benefit future generations of Bermudians.
• Support the Cost of Living Commission and
the Ministry of Home Affairs to implement a
grocery pricing app to give Bermudians full
visibility of essential goods pricing across the
Island as well as supporting the Cost of Living
Commission with analysis as to how to reduce
the cost of living in Bermuda. I am sure that
residents are eager for that to happen.
• Manage the budget effectively in light of additional revenues from the CIT, or corporate income tax.
• And finally, support the important work required to strengthen the financial literacy of
our population, helping to empower people to
take ownership of their finances and make
well-informed financial decisions.

Cost Centre 20010, Fiscal Planning & Control

Sen. the Hon. Crystal Caesar: Mr. Chairman, the
budget for the Fiscal Planning and Control U nit in
2025/26 is $589,000, which is marginally up on the
prior year due to the wage increase. Salaries make up
over 80 per cent of the Budget Team’s allocation for
2025/26 and provides for a four -person team led by
the Budget Director.
Mr. Chairman, the Budget Team has continued its significant work to manage overall Government
expenditures and increase revenues. This work has
resulted in the reductions of budget deficits over the past years and enabled the Government to provide
additional support to Bermudians and their families.
Notwithstanding, we have been able to maintain
and/or exceed our targets as we move toward in
achieving a balanced budget .


Bermuda Senate Mr. Chairman, the Budget Statement detail s
the final performance in 2023/24, which resulted in a
$29.5 million budget deficit, a $14 million reduction in
the 2023/24 original budget deficit of $43.5 million.
Mr. Chairman, last year during the 2024/25
Budget Statement the Government announced they
are expecting its first balanced budget in 21 years ,
which we heard earlier in our debate. The 2024/25
Estimates of Revenue and Expenditure projected a
$210,000 surplus for fiscal year 2024/25. The projected Consolidated Fund surplus for the fiscal year just
concluded will in fact be $19.7 million. This surplus is
$19.5 million more than the original estimate of the
$210,000 and represents the first Consolidated Fund
surplus to have been achieved in 21 years. Such a
milestone is not just a testament to this Government’s
commitment to fiscal responsibility but it is a culmina-tion of many years of fiscal discipline.
Mr. Chairman, the 2025/26 budget marks a
turning point for Bermuda. For the first time in over
two decades, our fiscal planning is no longer going to be consumed by managing deficit after deficit. Instead, we stand today with a budget surplus, a strong
economy, and later this year we will expect to receive
the first revenue inflows from Bermuda’s new corpo-rate income tax. This is not just a new budget year. It
is the beginning of a new era of budgeting in Bermu-da. And with that opportunity comes the obligation to ensure that benefits of economic growth are shared
fairly across our society.
Mr. Chairman, if the Government is not expecting to spend all of these funds, why are they in
the budget? Well, the answer is not simple, but it is a
reality of public sector budgeting. If all these funds are not appropriated, then the ministries will be constrained and the resources necessary to deliver public services that taxpayers expect. Experience has shown that it is better to allow these funds to be appropriated
with the knowledge that some funds will not be spent
rather than try to reduce those funds prior to appropriation which results in reduced service delivery. The
2025/26 expenditure budget totals $1.2 billion, which
includes $468 million in salaries and wages inclusive
of pay awards. This amount is not fully expensed due to the fact that there are lag times in the recruitment of
public officers. This results in salary savings recognised in the year and improve the scope of performance.
Mr. Chairman, the 2025/26 budget consists of
further tax reductions to provide relief for taxpayers and increased expenditures to support health care
investments for Bermuda’s residents. The details of all
2025/26 Estimates of Revenue and Expenditure can
be found within the Budget Statement; however, the
main highlights for the 2025/26 estimates are that the
revenue is expected to reach $1.43 billion, which is 16.0 per cent or $198 million above the original estimates for 2024/25. Current account expenditure is
estimated at $1.1 billion, an increase of $118 million or 11.9 per cent above the original estimates for last
year.
The estimated current account balance before
debt service is expected to be $320 million, $80 million, or 33 per cent more than the original estimate for
2024/25. The current account balance will cover the
costs of servicing our debt, projected at $127.5 million. This results in $193.1 million available to meet
capital expenditure.
Capital expenditure is estimated at $149.7
million, $37 million, or 33 per cent higher than the
original estimate for 2024/25.
Mr. Chairman, based on the above- mentioned
estimates, the Government is projected a second consecutive Consolidated Fund surplus. The 2025/26
surplus of $43.3 million is more than double the surplus achieved last year.
Moving on to cost centre 20020, International
Affairs and Regulatory.

Cost Centre 20020, International Affairs & Regulatory
Sen. the Hon. Crystal Caesar: Mr. Chairman, the
2025/26 budget estimate for the International Affairs and Regulatory Unit, or the International Affairs Unit,
may be found in section B of the Estimates Book on
page B -108. Accordingly, the budget estimate for this
unit in 2025/26 is $738,000 an increase of $55,000, or 8.0 per cent over 2024/25. Salaries make up 58 per
cent of all costs, and wage inflation is the main driver
for the increase.
Mr. Chairman, the International Affairs Unit is
the lead policy division within the Ministry of Finance Headquarters in relation to the financial services sector and the corporate sector . . . whilst oversight of the
Office of National Anti -Money Laundering and the
Registrar of Companies .
Mr. Chairman, the International Affairs Unit is
involved in a variety of policy and management areas from regulatory reform and financial stability to anti -
money laundering and market access issues at home and abroad. Globally, the International Affairs Unit
contributes to international meetings.
The scope of the International Affairs Unit’s
activities are as follows:
• to support the Minister [of Finance and the Financial Secretary] in coordinating the financial
services regulatory policy initiatives of the Government;
• to oversee the Ministry of Finance component
of the financial services legislative programme
together with the Bermuda Monetary Authority
and the Ministry of Justice;
• to provide policy and strategic advice in relation to anti -money laundering;
• to provide policy and strategic advice on matters related to transparency, in line with multiple external directives; and
134 2 June 2025 Official Hansard Report

Bermuda Senate • to provide policy and strategic advice to the
Financial Policy Council together with other
domestic agencies and/or committees regarding matters related to financial services.
Measures and Indicators of Success
• Promotion of policy approaches at home and abroad that foster a level playing field.
• Regular and normalised sharing of information
affecting the financial services sector at home
and abroad.
• Improved processes for registering entities in
Bermuda.

Full Implementation of Recommendations made by the Financial Policy Council, and the Fiscal Responsibility Panel Where Appropriate
• Timely completion of international assess-ments, and timely publication of international
assessments, where required.
Mr. Chairman, in order to achieve its priorities,
and pursuant to the Ministry of Finance’s Business
Plan, the Unit will undertake the following key strate-gic ownership goals in 2025/26 as follows:

Matters Related to the European Union

Sen. the Hon. Crystal Caesar: The Unit in partnership with key stakeholders will help to coordinate
Bermuda’s compliance with various European Union
(EU) directives.
This will include the provision of technical and
strategic advice on legislative and policy matters. The
Unit will contribute to and support the implementation
of Bermuda’s Anti -Money Laundering Strategy which
includes providing strategic and technical advice related to Bermuda’s compliance with the standards set down by the Financial Action Task Force.

Matters Related to the Organisation for Economic Cooperation and Development (the OECD)

Sen. the Hon. Crystal Caesar: Mr. Chairman, the
International Affairs Unit will work with the Registrar of
Companies to coordinate the Ministry of Finance re-sponse to OECD assessments as well as providing
technical and strategic advice on all aspects of Bermuda’s corporate and regulatory framework. The Unit
will support the Gaming Commission assess the supervisory framework and offer advice on relevant aspects of gaming in Bermuda.
And finally, the Unit will work with the Bermuda Deposit Insurance Corporation and the BMA to
continue with the development of Bermuda’s resolution framework.
Mr. Chairman, in 2024 and 2025 the International Affairs Unit was primarily focused on technical and strategic assistance regarding the financial ser-vices sector at home and abroad. Additional key mile-stones achieved by the International Affairs and Regulatory Unit in 2024/25 included:
• Maintaining regulatory stability by ensuring
the completion of the Ministry of Finance
component of 10 financial services sector Bills
and/or statutory instruments but not limited to
banks; investment businesses; currency/coins and the corporate framework.
• As appropriate, the International Affairs Unit
provided technical advice on relevant UK, US
and European Union matters, as well as assisted in advocacy and domestic and external
engagement initiatives. This includes regular
meetings with the Bermuda Monetary Authority, the Financial Policy Council and the Fiscal
Responsibility Panel.
Mr. Chairman, the Unit’s primary role going
forward in the next year will be to continue to work
with the relevant stakeholders to meet Bermuda’s
domestic and international commitments and to continue to implement the structural adjustments to the International Affairs Unit as outlined in the main body
of this statement.
Moving on to cost centre 20030, Domestic Affairs and Economic Policy.

Cost Centre 20030, Domestic Affairs
and Economic Policy

Sen. the Hon. Crystal Caesar: Mr. Chairman, the
2025/26 budget allocation for the Domestic Affairs and
Economic Policy Unit is $306,000. This unit provides leadership and oversight to the Accountant General’s Department, the Department of Social Insurance, the
Office of the Tax Commissioner and Customs (as it
relates to revenue matters). The team will also provide
research and analysis of economic and financial conditions to help facilitate sound decisions on public policy, fiscal, debt and guarantee management. The unit also manages relationships with credit rating agencies.
Mr. Chairman, I am pleased that this unit has
supported the assessment of several rating agencies
throughout 2024/25 and has resulted in positive ratings be granted by Standard & Poors, Moody’s and
KBRA. I am very pleased to announce that Standard
& Poors issued their 2025 report only a few weeks
ago and have re- affirmed Bermuda’s A+ long- term
rating and A1 short -term rating with an outlook of Stable. Equally of note we are hopeful that Bermuda’s
already impressive standing will be further upgraded
when we achieve our economic targets and full CIT implementation.
Other key initiatives include:
• Continuing to improve the sustainability of the
government’s funds, the Public Service Superannuation Fund (PSSF) and the Contributory Pension Fund (CPF) in an updated
framework that allows for progressive contriBermuda Senate butions. In addition to the proposed changes
in the contribution structure, adjustments will
also have to made to the other levers, namely
retirement age and benefits.
• Working with a leading audit firm who has
provided a draft scope of work to assist the
Accountant General’s department in bringing
the outstanding audits of the Pension Funds
up to date, we recognise the importance of these efforts as part of the wider work on pension reform and sustainability and have taken
the decision to enlist additional resources to address both challenges within the current fis-cal year.
• Continuing to work on the development of
economic models for the forecasting of key
economic indicators and Government medi-um-term fiscal data to, among other things,
enhance the execution of the government’s
fiscal and economic management strategy
and consideration of reform of the tax system.
• In conjunction with the Ministry of Public
Works, completion of the long- overdue plan
for the formation of a Government -owned captive insurance company to further reduce
[costs] and create efficiencies in relation to the
provision of insurance for Government assets.

Cost Centre 20100, Office of the National Anti -Money
Laundering Committee (NAMLC)

Sen. the Hon. Crystal Caesar: Mr. Chairman, the
Office of NAMLC's budget for the fiscal year 2025/26
is $936,000, an increase of $57,000 from 2024/25.
The increase is in part due to the increase to accommodate the union agreed pay increases but also to
allow for more necessary travel in 2025/26. This budget represents the minimum level of funding required to successfully provide core secretariat services to NAMLC, including Bermuda meeting its financial obligation to the Caribbean Financial Action Task
Force (CFATF). A separate grant of $415,000 was
received in 2024/25 from the confiscated assets fund
to progress a range of required initiatives in preparation for Bermuda’s upcoming mutual evaluation in
2025/26. The balance as of 31 March 2025 is
$242,243. This balance will be spent in 2025/26.
Mr. Chairman, the salary provision for the Office of NAMLC in 2025/26 is $536,000, which represents a 57.28 per cent of the total cost and covers
three posts. This is in line with the 2024/25 budget.
You will note that on page B -109 the revised headcount in 2024/25 stands at two. Recruitment for the
post of Junior Legal [Aid] Counsel is now closed and we are assessing the suitability of candidates who
applied. It is hoped that this position can be filled in
short order. As already mentioned, the NAMLC office
has an increased travel budget of $30,000 in 2025/26.
This is to facilitate participation in several critical over-seas conferences and training sessions which will en-able the Office of NAMLC to prepare for Bermuda’s
forthcoming mutual evaluation. Noticeably, the CFATF
plenaries in May and November 2025 provision is also
made for Bermuda’s annual membership contribution to the CFATF of $100,000.
Mr. Chairman, the purpose of the Office of the
National Anti -Money Laundering Committee (Office of
NAMLC) is to provide secretariat support to the National Anti -Money Laundering Committee, and to enable the Government to advance its anti -money laundering, anti -terrorist financing and counter proliferation
financing policy initiatives thereby ensuring an effec-tive regime. You can see the detailed objectives on
page B -107 (objective 10).

Highlights of Achievements During 2024/2025

Sen. the Hon. Crystal Caesar: Mr. Chairman, during
the current fiscal year NAMLC has continued its criti-cal focus on maintaining and, where needed, enhancing the effectiveness of Bermuda’s AML/ATF/CPF framework through the progress of several initiatives
geared towards ensuring that we are technically com-pliant with the revised FATF standards and ensuring
our preparedness for the 5
th Round Mutual Evaluation
scheduled to commence in October 2026. The 5th
Round is focused on the effective implementation of
AML/ATF/CPF laws.
It is in this vein the following key actions were
undertaken by NAMLC:
(i) Due to the changes in the FATF standards and also some deficiencies highlighted in our
2020 Mutual Evaluation Report, NAMLC completed a
technical and operational gap analysis which sought
to identify any gaps within our legislation and operational frameworks.
(ii) NAMLC has organised and managed
the review and updating of Bermuda’s National
AML/ATF/CPF Policy to reflect Bermuda’s updated
understanding of ML/TF and PF [money laundering
and terrorist financing and proliferation financing]
risks, as well as to reflect the changes to the international standards and best practices. Updates to this policy were approved by Cabinet in November 2024.
(iii) Further, NAMLC has coordinated, managed and updated Bermuda’s understanding of its money laundering and terrorist financing risks and the
findings thereof are documented in the 2024 Money
Laundering and Terrorist Financing National Risk As-sessment report. This risk assessment is completed
and will be subjected to ratification by Cabinet prior to
publication.
(iv) NAMLC procured technical assistance
for conducting Bermuda’s first Proliferation Financing
National Risk Assessment (or PFNRA) which commenced in January 2025 with work being undertaken
by AML/ATF supervisors and competent authorities.
136 2 June 2025 Official Hansard Report

Bermuda Senate The expected completion date is 2 July 2025 (which is
right around the corner).
(v) In preparation for the 5th Round of
NAMLC secured training from the Caribbean Financial Action Task Force (CFATF) for all competent authorities on the revised FATF standards. This training was
conducted virtually on 6 February 2025.
(vi) NAMLC developed an [internal] assessment which focused on the FATF’s immediate
outcomes and revised technical standards to ensure that Bermuda identifies any gaps within its AML/ATF
framework and corrective measures are undertaken
prior to Bermuda’s upcoming evaluation. An independent reviewer was contracted to ensure Bermu-da’s written submissions are reviewed against the
standards followed by an onsite [which took place on]
5 May through 9 May 2025) which probes further into
our AML/ATF framework. The reviewers will then provide their findings to AML/ATF competent authorities,
permanent secretaries and heads of agencies.

[2025/26 ] Key Initiatives of the Office of NAMLC

Sen. the Hon. Crystal Caesar: Mr. Chairman, their
focus continues to be to ensure that Bermuda maintains its position as a global leader in the fight to combat money laundering, terrorist financing and proliferation financing. Of critical importance is our 5
th Round
Mutual Evaluation scheduled to commence in October
2026. This evaluation will focus on technical compliance where deficiencies were identified and those
standards with significant revisions which are termed
Recommendations Under Review [RUR]. The evaluation is primarily one of effectiveness which requires
Bermuda to demonstrate how effective it has been for
the last five years since its mutual evaluation in implementation of the FATF standards.
Mr. Chairman, the key national initiatives for
which the office will provide support to NAMLC during
the financial year 2025/26, the majority of which will
be funded by a grant in accordance with section 55A
of the Proceeds of Crime Act 1997, are as follows:
i. Agencies are required to keep action plans to ensure that all gaps identified [and] remediat-ed before the end of this year to allow time to
demonstrate effectiveness. The identification
of technical and effective compliance gaps
was completed just recently on May 5 through
May 9, for which the final report was provided.
ii. Continue to coordinate, manage and provide
technical leadership in the publication of the
2024 Money Laundering and Terrorist Financing National Risk Assessment and ensure the
proliferation financing risk assessment is completed within the timeframe.
iii. Additionally, there will be continued training of NAMLC’s senior executives, technical officers,
public service executives and responsible
Ministers in relation to the revised FATF Standards and Methodology, as well as to expose them to the new procedures that will apply to Bermuda’s 5
th Round Mutual Evaluation.
iv. Provide technical support to the supervisors for the Designated Non- Financial Business
and Professions (lawyers, accountants, real
estate, high- value dealers and dealers in precious metals and stones) through a secondment of supervisory expert to the Office of
NAMLC.
v. Keep abreast of any further revisions to FATF
standards that may impact Bermuda’s 5
th
Round Mutual Evaluation which may require
legislative changes to ensure technical compliance.
vi. Organise and manage NAMLC’s review of
Bermuda’s National AML/ATF/CPF policy to
propose updates for the consideration of Cabinet to ensure that Bermuda’s national policy is updated to reflect Bermuda’s updated understanding of the 2024 money laundering
and terrorist financing and proliferation financing risks which arise out of the aforementioned risk s.
Mr. Chairman, in order to progress all of these
initiatives the Chair and Office team will continue to work closely with the National Anti -Money Laundering
Cabinet Committee, NAMLC member agencies and
other stakeholders.
I wish to thank Ms. Cheryl Lister, OBE, who
after her time as Acting Financial Secretary returns to
the position of Chair of NAMLC . Equally, I would like
to thank Ms. Kozel Creese, our national coordinator ,
who since joining in January 2024 has significantly
advanced that department.

Cost Centre 20070, Pension Commission

Sen. the Hon. Crystal Caesar: Mr. Chairman, as a
result of significant cash reserves held by the Commission which have grown over the last few years due
to the increase in regulatory fees and effective cost
control, no grant was allocated to the Pension Com-mission for this upcoming year.
Mr. Chairman, the Pension Commission is a
corporate body established under the National Pen-sion Scheme (Occupational Pensions) Act 1998. The
Commission also has responsibility for the administration of the Pension Trust Funds Act 1966 and pension
trusts established and administered under this Act.
Mr. Chairman, I am pleased to advise that in
2024 the Commission provided policy advice and guidance to the Ministry of Finance relating to the capping of administration fees charged by plan administrators, providing for greater domestic investment
opportunities for plan members and first -time homeowner refunds.


Bermuda Senate With respect to the capping of fees, the
Commission is working toward introduc ing the regulations later this year. The team have produced an initial
version of drafting instructions for internal review.
With respect to first -time homeowner refunds
specific legislation commenced in December 2024 in
which a member or former member of a defined contribution plan or local retirement product who has not
attained normal retirement age may apply to the
Commission for a first -time homeowner refund for the
purchase of a principal residence in Bermuda, by
themselves, husband, wife or child.
An applicant under the age of 45 years of age
may receive a refund of up to 30 per cent of their pension plan account balance and an applicant who is 45
years of age or older but has not yet attained the age
of 65 years of age, may receive a refund of up to 15 per cent of their pension plan account balance.
Mr. Chairman, detailed analysis of what the
Commission has done was included within the brief. In order to save time, I have excluded this from this statement; however, statistics are available if colleagues wish.
Mr. Chairman, the National Pension Scheme
(Financial Hardship) Regulations 2010 allows Bermudians with a demonstrated financial need to get access to a portion of their private sector pension funds,
based on prescribed criteria for hardship.
During 2024, Mr. Chairman, 120 applications
were approved, amounting to $2 million. Looking ahead to 2025/26, Mr. Chairman, for the upcoming year the Pension Commission has a number of goals:
1. Continue to review issues and challenges
facing the occupational pension plan sector in Bermuda in order to make recommendations to the Minister of Finance on further
legislative and/or policy adjustments .
2. Improve the understanding and compliance
by regulated entities with key regulatory is-sues and requirements.
3. Introduce a financial awareness campaign
on the importance of saving and retirement
planning and the important role occupational
pension plans play in achieving successful
outcomes .
4. Continue to enhance the Commission’s financial independence and sustainability via the identification of additional sources of
revenue.
5. And finally, t o continue to complete outstanding audits.
Please note that points 2 and 4 above are
multi -year objectives as they are fundamental to the
Pension Committee going forward. The delay in getting outstanding audits up to date is due to resources
and is one of the reasons why headcount is budgeted to increase in the up coming year.

2025/26 Projected Revenue and Expenditure Items Sen. the Hon. Crystal Caesar: Mr. Chairman, t he
Commission’s projected revenue for 2025/26 is $1,350, 000, primarily from regulatory fees and collections. The projected total expense for the year is $2.06 million, sa laries for 10 staff members which
makes up of $1.6 million of the budget. The Commission is therefore projecting a net deficit of $710,000
which will be funded from cash reserves.
The 2025/26 spend is an increase of
$540,000 from the 2024/25 budget. The headcount
increase from seven to ten accounts for $380,000 of
the increase.
I would like to extend my thanks to the staff in
the Pension Commission for their work in the past
year.

Cost Centre 20110—Gaming Commission

Sen. the Hon. Crystal Caesar: Mr. Chairman, t he
2025/26 budget estimate for the grant contribution for
the Gaming Commission is $800,000. The grant of
$800,000 represents partial funding for the Commission. The remainder of their income will be generated
by the collection of external fees, primarily from cruise
ship operators who apply for permission to open their
casinos whilst in port in Bermuda.
The total [ projected] expenditure of the Commission for 2025/26 is approximately $1.5 million. This
is a significant reduction from the 2024/25 budget of
approximately $1.9 million ($1.5 million of unaudited
expenditure) and the 2023/24 budget of approximately
$2.4 million (approximately $1.946 million in unaudited
expenditure).
The funding will support the Commission in
executing the programmes set out in the 2025/26
workplan, which includes continuing to support the
resolution of banking services being provided to casino operators and exploring potential new lines of
business for the jurisdiction.
During fiscal year 2024/25, the Commission’s
focus has been on investigating new lines of business
for Bermuda and corresponding banking challenges in
order to make evidence -based recommendations
where prudent.

Cost Centre 20120—Corporate Income Tax , Grant

Sen. the Hon. Crystal Caesar: Mr. Chairman, in late
2023, following extensive review and analysis of the
relevant international requirements, passed the Ber-muda Corporate Income Tax Act 2023. This agreement requires a 15 per cent tax to be levied on a jurisdictional basis to in -scope entities and is commonly
referred to as the Global Minimum Tax (GMT) agreement.
Bermuda’s regime has followed the OECD
guidelines, and the Act imposes a 15 per cent corporate income statutory tax applicable to Bermuda busi138 2 June 2025 Official Hansard Report

Bermuda Senate nesses that are a part in the multinational group with
an annual revenue of €750 million or more.
The Corporate Income Tax legislation came
into effect on the 1 January 2025.
In formulating its position and moving forward
with legislation, the Government has worked closely
with all relevant stakeholders to achieve an appropriate balance between the need to ensure that the
mechanisms for the collection and the determination
of tax liabilities are effective on the one hand, and to
minimise administration and taxpayer compliance costs on the other.
Mr. Chairman, under the new legislation fullyear tax filings for the 2025 tax year will be due in 2026. The first instalment of tax is due for payment in
[August ] 2025. As per page B -109 of the Budget
Book , this is estimated at $187.5 million for fiscal year
2025/26.
Mr. Chairman, t he administration of the regime will be the responsibility of the Corporation In-come Tax Agency (CITA ). This entity was enacted in
July 2024. The aim of the agency is to continue to develop and implement an appropriate and effective
corporate income tax regime to meet the changing
global tax environment. Operationally its primary functions will include taxpayer services, return filing and
processing, audit and compliance, enforcement and collections, dispute resolution, and law interpretation
and international tax cooperation.
Mr. Chairman, the CITA is led by an experienced tax professional. His task is to build out the
Corporate Income Tax Agency operations and deliver
its strategy. As part of the strategy they are building a Tax Administration Platform (or TAP) which will be the key interface with taxpayers. The project is well underway.
Mr. Chairman, t he CIT regime and CIT Agency reinforces Bermuda's continuing commitment to
global compliance and transparency and maintains
Bermuda's international competitive positioning.
Mr. Chairman, the Corporate Income Tax
Agency has been granted an operational grant of
$4.78 million in 2025/26 which is in line with the current year spend. Further funding will be required in the
current year to support successful implementation of
the IT systems infrastructure and to ensure there are
the required staff and related resources. It is envisaged that the Corporate Income Tax Agency will be
self-funding in future years through the interest from
revenues that they collect . Any additional funding for
this year will likely be as a loan against that future ex-pected revenue.
Finally, I wish to thank all of the team within
Finance Headquarters, which has been led by Mr.
[Chidozie] Ofoego, our Financial Secretary, who has
been in post, like I said, since April 2024 . It has been
a steep learning curve since joining and he has found his feet with remarkable ease. This concludes the Estimates for Head 10. I
will now move on to Head 11, Accountant General.

Thank you, Senator.

Sen. the Hon. Crystal Caesar: Mm-hmm.

HEAD 11 —ACCOUNTANT GENERAL

Sen. the Hon. Crystal Caesar: Mr. Chairman, I now
present the budget for the Accountant General’s De-partment (Head 11) which is found on pages B -111 to
B-115 and C -11.
The Accountant General’s Department was
established under s ection 4 of the Public Treasury
(Administration and Payments) Act 1969. The department has responsibilities for the administration of
the Consolidated Fund, and accounts for and reports
on the other public funds which are all subject to their own legislations. The [ functions ] and responsibilities of
the Accountant General’s Department are critically
important in the role of governance. The d epartment is
key in helping to undergird the financial controls and
processes that are in place with respect to the public
purse.
The department’s mission statement is , To
develop and maintain quality financial reporting, employee health insurance, treasury function, internal
control and effective use of technology to aid in decision-making.
The department is divided into two programme centres, as follows:
1101 —Consolidated Fund Administration,
which oversees all of the activities of the Consolidated
Fund. This is further broken out into six sections :
• Policy Planning and Management —
developing long- term goals and strategies in
alignment with governmental priorities and
general administration of the department;
• Financial Reporting—accounting for and reporting on the Consolidated Fund and the
other public funds;
• Compliance and Disbursement —execution of
payments for purchased goods and services;
• Revenue Receipting and Treasury Management;
• Bank Reconciliation;
• Financial Systems; and finally
• The department also has legislative responsibility for benefits.



Bermuda Senate 1102 —Fund Administration, which represents
the Government’s share of employee benefits programmes, namely,
• Public Service Superannuation Fund (PSSF);
• Contributory Pension Fund (Social Insurance)
(CPF);
• Government Employees Health Insurance Scheme (GEHI) and administration of the
scheme and payment of health claims; and
• Ministers and Members of the Legislature
Pension Fund (MMLPF).
The department continues to operate at staffing levels below its total complement. Forty -one posts
are budgeted in 2025/26, an increase of three heads from the 2024/25 [budget ]. The increase is predominantly down to the full year impact of staffing, following recruitment of two key posts to support the audit
process. Currently there are five vacancies within the department. Notwithstanding the vacancies, the department persists in efforts to identify efficiencies within its approved organisational structure.
Its accomplishments in fiscal 2024/25 are as
follows :
• Completion of the online payment portal, one of the first revenue stream utili sing, is for the
payment of parking tickets .
• Work ed with several government departments
to increase automation/digiti sation of financial
processes .
• Worked closely with the Office of the Auditor
General and m inistries to complete the annual
audit of the Consolidated Fund and progress
the audits of the other public funds .
• Delivered scheduled Financial Instructions
training in conjunction with the Department of
Employee and Organi sational Development .
• The Compliance and Disbursement section continues to make vendor payments timely
and accurately notwithstanding staffing challenges .
• Treasury functions and other operational service levels were maintained throughout the
year.
• As well as these accomplishments , as you will
see from the KPIs on page B -114, the department has managed to succeed in 17 of its 18 measures, or a 94 per cent success rate.
The only measure that was not achieved was
the timing of year -end files. This was due to a
labour shortage which has now been rectified
by the recruitment of two management accountants.
Mr. Chairman, t he Accountant General’s Department has been allocated a total budget of $106.7
million for the fiscal year 2025/26 which is broken out
as follows:
• Consolidated Fund Administration estimate—
$6.31 million; • Fund Administration estimate— $100.24 million; and
• Capital estimate—$153,000.
This budgetary allocation represents an increase of $20.15 million, or 23 per cent above the
2024/25 year original estimates —which is primarily
due to the additional $19.3 [ million ] of Government’s
contributions to the GEHI scheme of which $18 million
is part of the Government’s investment in health care
and a start in funding the recent years of shortfalls
from the GEHI Fund. Also, to support the shortfall
GEHI rates will be increased for public sector employ-ees and the remainder of the increase is due to the
Government’s matching contribution.
The 2025/26 Revenue estimate of $500,000,
a decrease of $1.4 million, or 75 per cent, below the
2024/25 original estimate. This revenue primarily relates to interest earned on the investments in the
Sinking Fund.
The Current Account Estimates can be found
on pages B -111 through B-112.
Mr. Chairman, if you could give me two seconds. I am just estimating the additional . . . as I do
want to leave time for questions.

Explanation of Significant Programme Expenditures
Sen. the Hon. Crystal Caesar: The current year’s
request reflects an increase of $34 2,000, which is
primarily reflective of the uplift in salaries from the recently concluded salary negotiations and increases in
staffing level from the recruitment for two vacant posts. It should be noted that the items that drive the department’s overall expenditures are salaries, technical support maintenance fees for the various soft-ware systems used by the Accountant General and
rent for premises occupied at 51 Church Street.

Fund Administration
(Page B-111)

Sen. the Hon. Crystal Caesar: This represents the
Government’s cost for employees’ benefits. These costs are a function of the number of Government
employees and the rates relating to the respective
benefits (Employer Overhead). For example, Contributory Pension (Social Insurance) is directly related
to the national Contributory Pensions rates of contribution.
As the employer, the Government ordinarily
matches its employees’ contributions to the PSSF, Social Insurance contributions (CPF), GEHI contribu-tions (premiums), except for Police, Corrections, and
the Regiment, for which the Government pays both
the employer and employee share, and the Ministers’ and Members’ contributions to the MMLPF. Contributions made into the PSSF and CPF are invested to
fund future pension payments to vested retired Gov-ernment personnel. The increase in the 2025/26 esti140 2 June 2025 Official Hansard Report
B ermuda Senate mates for the Government’s cost for employees’ benefits is primarily reflective of the additional overheads expected from funding increases for PSSF and GEHI contributions and the additional $18 million being pro-vided to fund the annual GEHI deficit.
The GEHI Scheme has experienced annual
deficits in recent years. This year the estimated deficit of $31 million will be partially funded by an additional $18 million from the Consolidated Fund. As part of the agreement with the Unions for public sector employ-ees the GEHI contribution rates will be increased by $600 per year over the next three years to close this
shortfall. The Minister of Finance will also continue to
review further options for delivering value for money to GEHI to protect the public purse, including the recent measure to ensure that the lowest cost is paid to pharmacies for identical medication.
Capital Estimates
Page C- 11: Capital Funding
Sen. the Hon. Crystal Caesar: Technical support
and ongoing maintenance will be required in the
2025/26 fiscal year as the Oracle E1 System is continually enhanced to improve the business processes and other important services provided. The depart-ment’s focus remains on leveraging the latest ad-vancements in JDE E1 to optimi se financial operations and drive continuous improvements.
The 2025/26 capital allocation will be used to
progress the following projects:
• Implementation of a purge and archive solution for JDE Enterprise I;
• JDE Enterprise One 9.7 update. This update promises enhanced user experience andperformance and expanded cloud capabilities .
Mr. Chairman, I would like to extend my appreciation for the work undertaken by the manage-ment and staff of the Accountant General’s depart-ment under the leadership of the Accountant General, Mrs. Dionne Morrison- Shakir.
I will now move on to Head 38, the Office of
the Tax Commissioner.
HEAD 38 —OFFICE OF THE TAX COMMISSIONER
Sen. the Hon. Crystal Caesar: Mr. Chairman, i t gives
me great pleasure to present the budget for Head 38, the Office of the Tax Commissioner (OTC), found on
pages B-120 through B- 124 of the Budget Book.
Mand
ate or Mission
Sen. the Hon. Crystal Caesar: Mr. Chairman, the
mission of the Office of the Tax Commissioner is to
leverage modern technology to ensure taxpayer com-pliance through quality service and effective enforce-ment. Expenditure Overview
Sen. the Hon. Crystal Caesar: Mr. Chairman, a total
of $4. 638 million has been allocated for this head
across both cost and capital. This represents an increase of $87,000, or approximately 1.9 per cent
higher than the budget for 2024/25 and constitutes
1.6 p er cent increase of the budget allocated for the
Ministry as a whole.
Mr. C hairman, the OTC is s trategically di vided
into f our c ost c entres, as f ollows :
•The Administration T eam (48000) ;
•The Stamp Duties Team (48050);
•The Audit and Compliance Team (48070) ;
and
•The Operations T eam (48080).
Subjective Analysis
Sen. the Hon. Crystal Caesar: There is a subjective
analysis in the current account estimates of the Office
of the Tax Commissioner, and it is found on page B -
121. And I will highlight the material object cod e
c
hanges.
Current Expenditure
Sen. the Hon. Crystal Caesar: Under Current Expenditure, the Office of the Tax Commissioner’s cur-rent expenditure is estimated to be $4,303,180. This represents an increase of [$252,000], or approximately 6 per cent higher than the budget for 2024/25.
The increase is primarily due to the creation of
a Temporary Additional Department Comptroller posi-tion which is essential to address the increasing com-plexity of tax reporting and the resultant workload within the department. The efficient running of OTC is critical in the collection of a significant portion of the Government ’s revenue and this role will ensure that
financial operations are managed efficiently, compli-ance with regulatory requirements is maintained, and strategic financial planning is enhanced.
Capital Expenditure
Sen. the Hon. Crystal Caesar: There is a decrease
in Capital Expenditure allocated for the department in
2025/26. It is $335,000, and this represents a decrease of $165,000, or 33 per cent from 2024/25.
The capital expenditure budget will be dedicated to advancing modernisation and efficiency initiatives within the OTC —especially with respect to the
continuing focus on reducing the level of accounts
receivables. This includes upgrading the SmartCase debt management tool to enhance debt collection out-comes, streamline year -end reporting, and to develop
performance management tools. These investments


Bermuda Senate aim to optimi se operational effectiveness and accurately measure operational activity.

Revenue Overview

Sen. the Hon. Crystal Caesar: The total projected
revenue for 2025/26 is $827 million, an increase of
$34.9 million, or 4 per cent, from the 2024/25 estimate
of $792.6 million . The material differences in projected
revenue are as follows :
• Payroll Tax Revenue is anticipated to increase by 7 per cent to $621.6 million. This is
due to expected increase in employment
numbers , especially in the International Business Sector .
• Corporate Services Tax is projected to increase by 10 per cent to $5.8 million based on
current level of activity in this industry .
• Financial Services Taxes are projected to in-crease marginally by 4 per cent for both Bank
Services and Insurance Services to $8.6 million and $6.1 million, respectively .
• Money Services Tax is projected to rise by
22 per cent to $435,000 due to an expected
increase in outcoming money transmissions.
• Land tax revenue is expected to decline by 5 per cent to $87 million, following the reduction in the annual base rate for residential
properties which has been lowered from
$300 .00 to $150 .00.
• Projections indicate a 6 per cent increase in
the Foreign Currency Purchase Tax to $32.9
million, attributable to an anticipated rise in
foreign currency purchase transactions by
residents .
• The estimated Hotel Occupancy Tax has
been raised by 29 per cent to $7.1 million
based on industry trends .
• Transport Infrastructure and Cruise Ship De-parture tax estimates have been reduced by
9 per cent and 12 per cent to $10.9 million
and $23.2 million, respectively, based on expected cruise visits this year .
• Stamp Duty on Land Conveyance on sales is projected to decrease by 12 per cent to $16.8
[million ] based on anticipated activity .
• The outlook on all other miscellaneous taxes remains stable.

Manpower

Sen. the Hon. Crystal Caesar: Mr. Chairman, t he
budget allocation for salaries for the department in
2025/26 is $3.17 million, an increase of $247,000 , or
8 per cent from 2024/25. This represents a 98 per
cent of the department ’s budget increase. • The OTC had 33 full -time equivalent (FTE s)
staff budgeted in 2024/25, which will increase
to 35 FTEs in 2025/26.
• The two additional posts include the previously discussed Temporary Additional Comptroller and the recruitment of the currently vacant
Administrative Support Clerk post.

Performance Measures by Business Unit

Sen. the Hon. Crystal Caesar: Mr. Chairman, I am
pleased to report that the d epartment’s forecast performance measures, on page B -123, for fiscal year
2024/25 were substantially achieved, and this has led
to increases in performance measures for the 2025/26
in several areas, as the d epartment remains committed to continuous improvement. In particular:

Business Unit 48050 —Stamp Duties

Sen. the Hon. Crystal Caesar: [The Stamp Duties
section] has had a target of 90 per cent for completing
the late stamping of instruments that are less than six
months out of time within 60 days of receipt. In
2025/26, the section expects to increase its performance for stamping such instruments to 100 per cent .

Business Unit 48080 —Operations

Sen. the Hon. Crystal Caesar: The target was to
have 75 per cent of Payroll Tax returns filed electronically. For 2025/26, the Operations Section aims to
have 80 per cent of Payroll Tax [ returns ] filed electronically.
In 2024/25, the target for the Operations section was to reduce the Accounts Receivable by $10
million. The section exceeded this goal by collecting
$227 .3 million in tax arrears by continuing taxpayer
education, managing payment plans and escalating
matters for collection through the courts. It is worth
noting that this is a sizeable increase from the prior
year where a target of $7.5 million was set and the
department collected $15.6 million.

Plans for the Upcoming Year

Sen. the Hon. Crystal Caesar: Mr. Chairman, in fiscal year 2025/26, OTC will continue its efforts to modernise its technology, to enhance its reporting capabilities and operations to support effective debt collection, improved customer service and successful resolution of taxpayer non- compliance.
In addition, the OTC will implement the following initiatives :
• Reduction of Land Tax for all categories .
• Elimination of the Employee Portion of Payroll
Tax on Redundancy and Severance Payments .
142 2 June 2025 Official Hansard Report

Bermuda Senate Conclusion

Sen. the Hon. Crystal Caesar: Mr. Chairman, I would
like to thank the Office of the Tax Commissioner, and
in particular the Assistant Commissioners; Ms . Kim
Richards, Ms . Joelene Li ndsay and Mr . Antoine Lightbourne. These individuals have been overseeing the
Tax Office for the last year and their dedicated service
to the Government and to the people of this country
should be recognised.
I would now like to move to Head 58.

HEAD 58 —INTEREST ON DEBT AND GUARANTEE
MANAGEMENT
Sen. the Hon. Crystal Caesar: Mr. Chairman, the
2025/26 budget allocation for interest on debt (Head
58) is $127.5 million. Of this estimate, $127.1 million
represents ongoing debt service costs for the various
debt instruments held by the Government of Bermuda,
while $400,000 is allocated to facility fees and other related costs.
The $250,000 reduction is due to bringing
guarantee management in- house as the Fairmont
Southampton agreement was concluded in October 2024. The issuance of guarantees by the Government
is not a cost, nor off balance sheet debt, merely a contingent liability. The Ministry only supports a guaran-tee if it is in line with its prudent economic strategy
which will advance the economy of Bermuda whilst
ensuring there is no cost to the government.
If anything, the issuance of a guarantee can
result in additional revenues for the government. With-in the terms of the Fairmont Southampton Princess guarantee, Government will receive an annual fee
equivalent to 1 per cent of the outstanding balance of
the loan; hence, the $750,000 revenue projected for 2025/26 on page B -132 of the Budget Book. The project is well underway and Bermuda can expect reo-pening of this iconic building in April 2026 with a full
opening later the year.
Mr. Chairman, within the cost estimate on
page B -132 you will note that there is nil cost budgeted for Morgan’s Point and Other Guarantee costs.
Any costs that are incurred will be recharged to the
relevant entity.
A key achievement in 2024/25 was the launch
of a $50 million Mortgage Guarantee Scheme to support Bermudians with purchasing property at lower
interest rates. At the start of April 2024, Mr. Chairman, 26 mortgages with a value of $4.1 million was covered
under the guarantee scheme, as of today, I am
pleased to inform that this has increased to 74 [mortgages ] either closing on their new homes or receiving
mortgage approvals as they actively look for a home.
Of the $50 million facility, $11.1 million has
been utilised so there is still considerable guarantee
headroom left to support Bermudian homeowners. Mr. Chairman, there is no further refinancing
of the $3.2 billion
of debt until January 2027. However, with the increased revenues from CIT, the Ministry of Finance is
looking to reduce the Government’s debt position. Within page A -1 of the Budget Book you will note that
within the estimate for 2026/27 a minimum repayment
of $500 million is included which will reduce the annual interest [rate] charge by circa $18.6 million.
Mr. Chairman, work is continuing to ensure
that entities with loans or credit facilities guaranteed by the Government, are effectively managing their
obligations and are appropriately managing their financial affairs. The diligent execution of work in relation to the establishment and oversight of guarantees
is consistent with this Government’s commitment to
ensuring appropriate and effective risk management, the maximisation of economic benefit and prudent
economic and fiscal management while supporting
economic growth.

Conclusion

Sen. the Hon. Crystal Caesar: In conclusion, Mr.
Chairman, I wish to again thank all the teams who are
part of the Ministry of Finance for their dedicated professionalism.
There have been many challenges faced over
the past year, but they have persevered. This submission has highlighted the various threats and challenges facing Bermuda. We will continue to proactively
address these matters to ensure Bermuda’s continued
stability and security. We remain committed to serving and protecting the people of Bermuda through fiscal
prudence and effective management of our resources
and extending economic relief where possible.
Thank you, Mr. Chairman. Here ends my
presentation of the brief.

Thank you, Senator, the Honourable
Crystal Caesar, for that fulsome presentation. Thank you also for allowing sufficient time for the Opposition
and Independent Senators to ask questions.
So, would any Senator wish to speak on these
heads?
Senator Jones, over to you.

Sen. Marcus Jones: Thank you, Mr. Chairman. And
thank you to Senator Caesar, Minister of Education
and spokesman for Finance, for bringing us this brief.
I would also like to thank and to show appreciation to the technical officers, the Finance Secretary
and their staff for the hard work that they do in preparing the finances for the Government. I know it can be
very stressful at times because you are on deadlines,
and you want to do things accurately and proficiently.
So, we definitely want to say thank you for your hard
work.


Bermuda Senate I will say as well there was . . . I don’t know if
the Minister was going to provide us with answers for
the pre- budget [questions] or if she would like for us to
ask our additional questions now and then you will come back with the pre . . . how do you want to do
this?

Sen. the Hon. Crystal Caesar: If you would like, you
can ask your additional questions now and then I will include the pre- questions in my final response, if that
is okay.

Sen. Marcus Jones: That’s fair enough. That wasn’t
. . . the original intent was to get the answers to the
pre-budget questions and then from them we would
have additional supplementary, so I would prefer if
you could give us those answers first and then we will follow along with —

Sen. the Hon. Crystal Caesar: Okay. You asked me
what I would like to do, but that’s okay. I can answer
the pre- budget questions ahead of time, such that I
have those answers in front of me.
I do have a few [answers]. I can read them.

Well, maybe for the benefit of the listening public I can just say that we want to thank Government for the new process this year whereby the Opposition and the Independent Senators were
allowed to provide questions in advance which many
of us did. So that allows the session, I think, to be more meaningful for everybody involved.
So, Senator, over to you. Thank you.
Sen. the Hon. Crystal Caesar: Okay. So, the first
question that I received was with regard to providing the number of companies within the international business sector that fit into the category of those who
earn gross revenue of at least € 750 million and qualify
to be taxed under the corporate income tax regime. I
think that my Senate colleagues would be aware that
that question was previously posed in another place
and the answer remains the same.
The $187.5 million is a prudent estimate
based on the estimated portion of the €750 million that we expect . And stress testing has taken place on that
number , particularly , by looking at maybe some years
of downturn, including the 2022 year where Hurricane
Ian had an increase in interest rates resulting in losses to insurers .
So, the estimate is , as I said, p rudent and
conservative and allows for potential receipts and the
need for refunds . We recognise that the €750 million
is an average. But once we have actuals , which will
not commence until August of this year , it would be
difficult for us to say with any particular certainty . And
entities that are in- scope have until 10 days before
initial payments to register . So, the Corporate Income
Tax Agency , at that point , will be in a position to pro-vide information on the number of registered C IT
players subject , obviously , to confidentiality .
So, at this point , as indicated in another place,
we are unable to give specifics . But modelling is taking place, o bviously based on sensitive commercial
information.
An ad ditional question also was asked with
regard to how much of the CI T receipts will be held
back as refunds reserved. A nd will it be held separate
and apart ? Again, this question was previously asked .
It will be fully covered by the draft Tax Reserve Fund
Bill which is due to be debated in the House of Assembly . And that should happen before the summer
recess which would mean within the next six weeks or
so. But what we can confirm is that generally the
50 per cent of estimated taxes are due in August of
2025 , and then 90 per cent by December 2025, and
then a final true -up will be paid following the tax filing
in October 2026.
Additionally , another question asked was , Can
we provide the number of persons who will be employed in the newly C orporate Income Tax Agency ?
Again, my understanding is that this question was
asked and answered in another place. There is the
chief executive which I did refer to in the brief . At present there are four employees with a plan to grow that
number by the end of the year to 20, which is considered reasonable under the amount of revenue that is
estimated to be collected. And, in fact , it is actually
small . Their mandate includes not only collections but
also to develop a regime where necessary and operationally to collect tax return filings , processing, auditing of the filings , et cetera, and any dispute resolution.
As was already stated, this will in time be
brought to the fore, and detailed information will be
included once the Corporate Income Tax Agency, who
has to file its annual report within six months of its
year-end, additional information will be provided at
that point.
There were some questions with regard to . . .
and if I could Mr. Chairman, this is specifically the
question that you did pose. [This] is around Head 10,
revenue sources of business unit 8885, which recorded $6.8 million of BMA revenue profits for 20 24/25.
And the question was , Was the BMA going to operate
as a profit centre? The BMA profits for 2024/25 were
exceptional . With regard to timing of revenues versus
expected employee costs , due to a delay in recruitment , the BMA has a budgeted deficit in 2024 /25. But
again, in 2025/26, it is budgeting a deficit . So, it was a
timing difference, specifically . So, the answer to the
question is , no, it is not going to be operated as a
profit centre for Government .
Additionally , I will say , Senator Wight, you had
an additional question around expenditures for H ead
11, business unit 21030, which has an estimated increase in government employee health insurance .
And the question or the statement was that this is very
large. Is it for this item only or is it also for business
144 2 June 2025 Official Hansard Report

Bermuda Senate unit 21010, the Superannuation Fund and 21020, the
Contributory Pension Fund? The answer is the $ 90
million is purely related to the GEHI deficit , not the
others . Actuarial deficits within the pension fund and
how best to manage these are being worked through
at this time. And will obviously be debated at a later
time. But it is being worked through. So that is the answer to that specific question.
I do have one final pre- debate question . And
that again is on Head 11, page B -112. What was the
reason for the employer overhead increase of $ 19.8
million , or 25 per cent? A nd I do believe I covered it in
the budget, but I will repeat it here for everyone's
edification. It is that the additional $19.3 million of
Government ’s contributions to the GEHI scheme, of
which $18,000,000 is part of the Government's investment in health care and start in funding the recent
years shortfall that the GEHI fund had. And it will support the shortfall for GEHI , which rates will be increased in the public sector . And the remainder of the
increase is due to government matching contribution.
That is all of the specific pre- debate questions
that I received on the budget . So, as indicated, if colleagues have additional questions , Mr. Chairman, I
would be happy to entertain them now .

Thank you, Senator.
Senator Jones , further questions from you?

Sen. Marcus Jones: Thank you, Mr. Chairman.
And again, I would like to thank the Minister of
Education, spokesman for Finance for providing us
and furnishing us with those answers. Like was said
by Mr. Chairman, having those pre- budget answers
does a lot to the effectiveness of this debate period.
Let me move on to questions that I have from
business unit 211 10. It’s on page B -108 and it has to
do with the Gaming Commission . For the listening
audience, there is a grant that is given to the Gaming
Commission (has been for the last year ) of $800,000.
And my question to the Minister would be, Which
companies are on the list for gaming and are casinos
that the Gaming Commission administers licences [to]
and how much revenue in taxes and fees do these
companies generate for the Commission?
Now I did hear her say in her brief that casinos on the ships . . . that this C ommission was responsible for actually collecting those funds . And I
was just curious to see how much on an annual basis ,
I guess an estimate. And I guess your technical officers can use past year ’s numbers to give us an idea of
how much revenue is taken from that sector of the
gaming industry within this jurisdiction, s o that we can
get a sense of how much money is being generated
from that standpoint .
Also, same business unit , same page, when
were the last audited financial statements completed
for this Commission and what is the statutory requirement in terms of annual reporting? I do have one more question or two in regard
to this line item , but I will say this . Since the time before when I was in the Senate and even up to now,
there are some performances of this Commission that
definitely come into question, which makes us on this
side of the aisle question the validity and the going
concern of this C ommission .
We do understand the statutory requirements
for this for this C ommission . And we can appreciate
the fact that there needs to be certain things put in
place or a legal standpoint that makes it imperative that this C ommission exists . But I do believe that we
wouldn't be doing our due diligence as the Opposition
if we were not asking critical questions , the number -
one question being whether this particular Commission is worthy of staying active.
I mentioned earlier about the delayed audited
statements that are part of the statutory requirement
that we do not have . The report from the Auditor General reads like a naughty -boy's list of things that this
Commission has not done. Now there also have been
issues with the PATI requirement of certain answers
to questions that was on . . . the PATI A gency had to
just about strongarm the officers there to be able to get answers from a Commission that , to date, since its
inception in 2014, has been able to run through over
$16 million .
Now, one thing I would also like to know is ,
Does the si ze of the staff still remain the same ? I believe in the last count there were 11 staff members
and we know that most of those professionals in that
Commission are making very attractive on salaries . I
don't begrudge them . I don't begrudge the employees
at all. But I think it is worth the G overnment having
another look at this C ommission because if one would
measure this entity [against] any private going concern there would be some serious changes made from the top down to ensure that the G overnment is
not bleeding money in sort of what I would call a mon-ey pit .
So, my further question would be, same line ,
$800,000 in funding for this Commission . Does this
grant cover the entire annual expenditure for the Commission ? And if not , how is the shortfall covered
and who underwrites it ? Now we were made to understand that back in June of 2023 the Bank of Butterfield
actually suspended its overdraft . Partially , I have been
made to understand through the Auditor’s report , [due
to] a lack of reporting of finances .
Now, for a staff of 11 , with very little . . . shall
we say there are no casinos in operation. Th e betting
shops have closed down. And from what I understand
it is only the casinos on the ships that represent the
work that is being done f rom a licensing supervisory
position. One would think that there would be sufficient staffing and time in that particular C ommission to
have these statutory requirements be done on a timely basis . And so, we on this side have said in successive budget cycles that either this Commission get to


Bermuda Senate doing what it was initially mandated to do, which is to
be able to generate the businesses and write up businesses for casinos and gaming, or get out of the business .
It is time to either fish or cut bait . Because I
think it is unconscionable, egregious even, that this
country has to spend this type of money on a Commission that's hardly bringing in any revenue of substance to make it worthwhile as a going concern.
In addition to that , I have another question.
What is the accumulated deficit . . . I'm sorry . I think
you already answered that question, so I can leave
that alone. It was $16,000,000 that this C ommission
has run through since 2014 .
I now go to H ead 11, the Accountant General. I am just looking over my notes . And you did answer the question for me about the G EHI. The $19.3
million increase. So, we know what that is .
The Superannuation Fund, business unit
21010, on page B -11. We see there that there was an
increase of $837,000 , this year's estimate compared
to last year's original estimate. It seems like a low
number if one considers the 5 per cent increase in
salaries and no increase in the grant contribution. Can
we get an explanation for that ?
Then business unit 21001. There was a
23 per cent increase of $713,000. My question would
be, What role do the five full -time equivalents play in
ensuring that government entities have up- to-date
audited statements ? Now that may be just a question
of clarity because we see that this line has to do the
financial reporting . But we know that there are several
entities , the GEHI being one of them, that are still in a
position, according to the Auditor General, where the
audited statements are delayed and even are several
years behind.
Maybe the Minister can give us some clarity
on what responsibility or what oversight this line item
of financial reporting plays in entities outside its direct
remit to ensure that these audit statements are delivered in a timely manner .
I would also have a question under the same
head , business unit 21001 , but it has to do with performance measures . And you will find that on page B -
114. In the 2024 /25 budget , the $580,000 estimate
was revised to $329,000. C an we assume that the
actual full -time equivalent position was not filled resulting in the failure to achieve this performance target? And what is the intention for the upcoming year ?
Now, we realise that that particular performance line has to do with the provision of audited an-nual financial statements of the C onsolidated Fund
within 240 days of 31 March. W e find that in 2023/24
that particular objective was not achieved. And that
particular objective was then put out there that it will
be completed within that time frame. And then we find
in the 2024 /25 year that same objective was not
achieved. Now, I would suggest to you that something
has to be done differently if time after time that par-ticular objective is not being met . So, the question that
I have asked in regard to the full -time equivalent position . . . if the technical o fficers can give us some explanation, that can help us understand why that particular objective was not meant .

—stop and give you time to respond
to the ones he has asked already ?
Sen. the Hon. Crystal Caesar: Okay. Yes. I can start
with particularly the Gaming Commission.
Under cost centre 20110, specifically . As
those I believe . . . those are the questions he's started with, so those are the answers that the team has
been able to respond to. And we will give them some
time to look at the additional Accountant General
questions whilst I respond to the Gaming Commission
questions , if that's okay.

That's fine . Thank you.

Sen. the Hon. Crystal Caesar: Okay.
So, the question specifically was , When was
the last audit of the Gaming Commission?
I'm sorry . . . No, the first question was , Which
specific companies are on the list of those companies
regarding gaming and what is the amount ? It does
actually . . . as I said during the brief , the Gaming
Commission does actually collect revenue from casi-nos which are on the cruise ships , which are in dock.
Which I think you did indicate—
Sen. Marcus Jones: Yes.

Sen. the Hon. Crystal Caesar: —during your question as well.
And roughly $700,000 is generated [from]
cruise ships . And then any additional revenues obviously come from the grant . So specifically , you would
have just had to look at which cruise ships are . . .
which come into Bermuda, specifically .
Now, if you want additional details I would assume that that would be something that would be out146 2 June 2025 Official Hansard Report

Bermuda Senate lined in the annual report of the Gaming Commission.
Which does inform your additional question, which
was with regard to the last audit of the Gaming Com-mission and what is the statutory requirement ?
So, it is required to submit to the Minister of
Finance a report of its audited financial statements
and an annual report dealing with the activities of the
Commission pursuant to sections 25 and 26 of the
Gaming Act. And it has actually filed that for 2024 with
the Government of Bermuda. They've been tabled in
the House of Assembly and I believe also . . . sorry ,
the Commission’s annual reports up to 2023 have all
been tabled in the House of Assembly and additionally
the Senate.
The audited financial statements that relate to
. . . just give me two seconds here. It appears that the
additional statements remain with the Auditor General
and the Commission is working with the Auditor General to resolve this case. And I think one would know
that the Auditor General also has had some resourcing challenges as well in terms of having enough indi-viduals to address some of the outstanding audits that
it has .
And so, there was additionally . . . Well, is the
Gaming Commission still a worthy venture for Bermuda to be pursuing? Well, there actually is still a desire
publicly for gaming in Bermuda . Whilst as I stated in
my brief , there have been challenges in getting the full
regime up and running particularly because we need
some cooperation from some of the banks , which of
course those are issues for which we are working
through. B ut there is still a desire for having a Gaming
Commission in Bermuda and for having gaming .
There was a restricted banking licenc e that was created or expanded under the Gaming Act and so ,
again, we are working through those particular issues .
There was a question with regard to the number of staff , I believe within the Gaming Commission .
The Commission has been reduced considerably over
the last few years . There are currently six full-time
equivalent positions , but there are two vacancies . And
so, the Gaming Commission is aware of the need to
ensure that it makes cost savings . It is aware that this
is an area that it needs to address in terms of ensuring that we have a proper regime in place. A nd that is
something that they are actively working through . But
the number of people who were employed previously
has decreased based on . . . in comparison to previous years .
I just want to see what other questions there
are here on gaming. Okay. A s it pertains to gaming, I
believe that that is most of the questions that you did
ask.

Sen. Marcus Jones: In regard to that, yes.

Sen. the Hon. Crystal Caesar: Yes. Okay. So, if you
would like to continue , I would be happy for you, or anyone else, to propose any additional questions they
have.

Senator Jones .

Sen. Marcus Jones: Yes. I just have a few more
questions from the two other heads that are still remaining.
Head 38, which is the Office of the Tax Commissioner on page B-120. O ne of the objectives of the
Office of the Commissioner is to reduce receivables
by $15 million. I would like to know how much is the
total receivables that are outstanding and why is
$15,000,000 the magical number that has been set up
as the objective?
Also, Revenue, 8017. Let’s see if I can read
my notes here . Sorry. That’s not revenue. That’s payroll. That has received $ 41 million . I believe that you
gave us the answer for that in the brief .

Thank you . Senator Jones, can I just
. . . maybe for the sake of other Senator s who might
have questions as well , can I just ask if other Senator s
have questions just to allow some—

[Crosstalk]

Sen. Marcus Jones: Absolutely, Mr. Chairman. A nd I
do ask if there is any extra time, that you can come
back to me and I can ask some more questions . But I
will yield . Thank you, Mr. Chairman.

Very good. T hank you, Senator
Jones .
Senator Tannock, questions ?

Sen. Tawana Tannock: Yes, Thank you, Mr. Chairman.
This question is actually in relation to one of
the written questions that the Minister responded to
about CIT . And I just wanted to get some clarity on a
couple of things that were stated. I wonder if we could
get some information.
So, by 31 January of this year to the ROC,
companies would have to indicate whether or not they
were in- scope. I would like to know how many companies indicated that they were in- scope. T hat's my
first question to follow -up on that .
And then the second part of that is , Of the
companies that indicated that they were in- scope, for
those companies they would have more than likely ,
not all of them, declared deferred tax assets over the
past year or two . What is the value of those deferred
tax assets given the maximum that the O ECD will allow? The combined value of those declared tax assets
given the maximum declared tax assets that the
OECD has said that they would allow . Thank you.

Thank you, Senator Tannock.


Bermuda Senate [Any] other Senator s?
No.
So, I can assess , Senator Jones , we come
back to you for further questions .

Sen. Marcus Jones: I just have two more questions
Mr. Chairman.
And it goes right to H ead 58, which is debt
and loan guarantees . I would like to see if the Minister
can give us a list to indicate the items that were spent on to reduce . . . we know that the S inking Fund reduced year on year from $93.9 million to $39.9 million .
Can she give us a listing of the items that that Sinking
Fund was actually spent on ?
And finally , we find on page C -30, under capital . . . is it . . . page C -30, debt and loan guarantees .
There is a big number staring at us from the Bermuda
Hospital s Board of $696 million. I guess my question
would be, For w hat and to who m is this guarantee
made and how many years until the Government will be released from this obligation of this guarantee and what are the terms ?
Thank you, Mr. Chairman.

Just as a time check for everybody ,
we have roughly eight minutes left for this Ministry.
[Pause]

Sen. the Hon. Crystal Caesar: Okay. I have . . .
There were several different areas for which the team
is trying to garner information. And just for the listening public and for other Senator s to realise , there are
different individuals who work in different areas and so
we are trying to gather information from each of those
individuals . I can say that with regard to the question
around Head 58 and the debt and loan guarantee,
there is a list of questions regarding the S inking Fund.
The team has indicated that at this particular time that
is information that they are going to have to pull together . And they can give that answer at a later date.
There isn't sufficient time to get that for you right now .
But they have given an undertaking to ensure that
those questions can be answered. Okay?
And we do have notes here as to what questions have been answered so we will ensure that we
do get that information and share it with colleagues . I
am just trying to get a couple of additional answers so
if you just bear with me, please.
[Pause]

Sen. the Hon. Crystal Caesar: Okay. S o, on page C30, Mr. Chairman, Senator Jones did ask about the [Bermuda] Hospitals Board grant. Why is it so large,
who is it to , and how long . . . how much is left ?
I can indicate that the team has provided information as it pertains to that and the guarantee was provided to Paget H ealth Services to facilitate the
completion of the Acute Care Wing. And that guarantee was provided in December 2010. And the guarantee is for an approximate 30 years .
Yes, it looks like a couple of the questions but
particularly with regard to the O ffice of T ax Commissioner , the outstanding amount that . . . the amount of
$15,000,000 . I believe you asked about , or Senator
Jones asked about , Mr. Chairman. A gain, that is . . . I
keep losing my place. I'm sorry . Someone is typing , so
it's moving.
Okay. Yes, with regard to Head 38, the objective on page B-120. I believe , again, that was Senator
Jones' question. (If it would just keep still, I could find
it.) I apologise. Okay. S o, the Office of the Tax Commissioner has approximately $200 million outstanding
and they are steadily increasing the collection goal. I
must say that we have to commend them because
there was . . . the goal that they had in the previous
year actually was far outweighed in what they had
actually collected. But in terms of specifics —

[Pause]
Sen. the Hon. Crystal Caesar: They currently have
three. The number , the $15,000,000 that you asked
about is not necessarily a random number . It is because they have actually three debt collectors . And
they have given each of those debt collectors a goal
of $5 million each. S o that is where the number has
come from. So those are the goals for each of those
individuals in terms of the objectives that they have
. . . that they are looking to collect . So that is where
the $15,000,000 comes from.

—how were in-scope and the deferred tax asset balance .

Sen. the Hon. Crystal Caesar: Yes, again , that is
one of those questions that . . . Senator Tannock, if I
could just repeat it . That did indicate as at 31 January
of this year companies had to indicate how many were
in-scope for meeting the threshold. But unfortunately,
that is something that the team is unable to break148 2 June 2025 Official Hansard Report

Bermuda Senate down at this time. I believe in due course that will be
something that they will be able to give a bit more information [on.]
I do believe that Senator Tannock has sort of
spoken to that topic previously , but at this stage the
team is still unable to provide. I don't actually have
specifics as to what that is , but I do have here that
that can be provided at a later date. S o again, that is a
question that they have made note of and would be
able to provide information on at a later time.

Okay. Senator, and Senators, I think
we have completed our two hours for the F inance
Ministry. S o, Senator Caesar would you like to move
these heads ?
Sen. the Hon. Crystal Caesar: Yes, I would. T hank
you. Sorry. Just give me two seconds . I need to get
the wording. I do have it somewhere here. Yes.
Mr. Chairman, I move that Heads 10, 11, 38,
and 58 be approved as printed.

So, I can officially have the honour of
giving my seat back to Madam President now .
Thank you.
[Pause]

Senate resumed at 4:36 pm

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

REPORT OF COMMITTEE

ESTIMATES OF REVENUE AND EXPENDITURE
FOR THE YEAR 2025/26

The President: Senators, you have been asked
whether th e Committee can rise and sit again tomorrow.
Was there any objection to that motion ?
No. Then the Committee will rise and resume
tomorrow .
I would like to take the opportunity to thank
Senator Wight, Vice P resident , for chairing the Committee of Supply.
We will now move on with our O rders of the
Day. The next item we have on our O rders of the D ay
is consideration of the Government Fees Amendment
Regulations 2025. A nd that is in the name of Senator
the Honourable Crystal Caesar, spokesperson for Finance.
Senator Caesar , when you are ready, you can
resume.

SUSPENSION OF STANDING ORDER 71(2)

Sen. the Hon. Crystal Caesar: Thank you, Madam
President .
I move that Standing Order 71(2) be suspended.

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



Bermuda Senate [Motion carried: Standing Order 71(2) suspended.]

Sen. the Hon. Crystal Caesar: Madam President , I
move that the Senate do now take under considera-tion the G overnment Fees Amendment Regulations
2025 proposed to be made by the Minister of Finance
in exercise of the power conferred by section 2 of the
Government Fees Act 1965 .

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

[Pause]

Sen. the Hon. Crystal Caesar: Madam President , at
this time I would like to open the floor if any Senator s
have any questions about this particular R egulation ,
the Government Fees Amendment Regulations 2025.
The President: Is there any . . . does any Senator
wish to . . .
[Crosstalk]

The President: You don’t have a brief or . . .

[Pause]

The President: Senator, since you don't have the
brief then we are asking that this be carried over until
tomorrow and the Senators will be provided with the
brief. Or at least you will be provided with the brief that
can be presented.
We will then move on to Item No. 3, the second reading of the Customs Tariff . . . I beg your pardon.
[Crosstalk]
Sen. the Hon. Kim Wilkerson: Madam President ,
that is fine. Items 2 through 6 can be carried over .

The President: Yes.

Sen. the Hon. Kim Wilkerson: Thank you.

The President: Thank you, Madam Attorney General
and Government Leader in the Senate.
Therefore, Senator s, we will move on then
since all are being carried over , we will move on.

MOTIONS

The President: There are none .

CONGRATULATORY AND/OR OBITUARY
SPEECHES
The President: Would any Senator care to speak?
Senator Cunningham, I believe I see you.
Sen. Victoria Cunningham: Thank you, Madam
President.
Last week I had the privilege of attending the
celebration of life service for Dr. Eva H odgson ( I believe a number of us were there .) which marked five
years since her passing, since she passed in 2020
during COVID -19. The service hosted by her family
and CURB was a powerful reminder of her fearless
advocacy for racial justice and social equity in Bermuda.
As an educator , historian and activist , Dr.
Hodgson never shied away from speaking uncomfortable truths . And she challenged this country to do better. While I may not share her lived experience, I
stand in solidarity with the principles she fought for :
justice , dignity and equality for all . Her legacy definitely reminds us that it is not enough to be non- racist , we
must be actively anti -racist . In a time when division
can come easily , Dr. Hodgson’s life calls us towards
unity , the kind rooted in honesty , accountability and
the shared determination to build a fairer Bermuda .
Her voice may be gone but her words still echo. And
we each have a role in ensuring that they are not only
remembered but acted upon.
And, Madam President , secondly , I would like
to take a moment to recognise an extraordinary accomplishment by one of Bermuda’s finest athletes . On
May 26 , Jessica Lewis won the gold medal in the 200
metres at the W orld Para Athletics Grand Prix in Switzerland. And she also secured bronze medals in both
the 100 meters and 400 meters showcasing her exceptional talent and dedication.
Jessica's success on the international stage is
a testament to her hard work and perseverance.
When I was at Tokio we actually sponsored her in her
bid to get to the Paralympics and I have to say she is
quite the young lady. And I believe she continues to
inspire all Bermudians demonstrating that with a little
determination and support , our athletes can achieve
greatness . So, I would like to celebrate Jessica's
achievements and continue to support all our athletes who represent Bermuda with pride and excellence.
Thank you, Madam President .

The President: Thank you, Senator Cunningham.
Would any other Senator care to speak at this
time?
Madam Attorney General, Minister.

Sen. the Hon. Kim Wilkerson: Thank you , Madam
President .
I would like to join the comments by Senator
Cunningham. I was off the Island last week , but certainly honouring Dr. Hodgson was a worthy venture
and well -deserved .
150 2 June 2025 Official Hansard Report

Bermuda Senate And I would also like to add in the obituary
speeches condolences to the family of Dr. Melvyn
Bassett who passed away . A blow to the Somerset
families . And I am sure Senator Jones joins me in that
regard. H e will certainly be missed. There will not be
an event, you know , without him just fritting around,
seeing that everyone is okay, tending the bar . He
seemed to be . . . he was never my teacher , but he
was everybody's teacher in Somerset that we know.

[Laughter]

Sen. the Hon. Kim Wilkerson: And particular condolences to his family and to sister , Ms. [Barbara] Dillas.
I would say we are planning, she has worked on a
documentary in relation to a mural project on the bus stop, on a main road in Somerset . And certainly, her
brother was meant to be a part of the opening of that
this coming weekend. So, I would like to congratulate
her on the efforts for the documentary , but also to
acknowledge that we will miss him and our prayers
and thoughts are with the Bassett family .
Thank you, Madam President.
The President: Thank you, Minister of Justice , with
your comments .
And Senator Mischa Fubler, you have the
floor.

Sen. Mischa Fubler: Thank you, Madam President .
I will start off by associating myself with Senator C unningham's remarks for Dr. Hodgson. I was also
in attendance. And as well to Ms. Lewis for her athletic success. I also want to give congratulations to the
students of Purvis Primary School who hosted their
Bermuda Day Parade last week . And I declare my
interest, my daughter is a student there, but even with
that notwithstanding, it was an excellent display of
creativity by the students . They had several themed
groups including Bermudian athletes and national heroes. There were Gombeys and majorettes and Long
Riders even. It was quite an interesting reflection of
the real parade, and it was very much enjoyable. And
so again , kudos to the school and teachers and students who made that happen.
And I would also like to give congratulations to
all the people who helped make the actual Bermuda
Day Parade a success. I very much enjoyed observing from the pavilion , as it were, there on Front Street.
We spent the majority of the day there. My children
had an amazing time to the 60- plus entrants in the
parade. Congratulations to you. I am sure countless
hours went into preparation for your floats and per-formances and also especially to the Department of
Culture who were the overarching organisers of the
event . It is another great success . And here is to
many more. Thank you.

The President: Thank you, Senator Fubler. Would any other Senator care to speak ?
Hearing none, then I would just like to support
the comments made by Senator Victoria Cunningham
with regard Dr. Eva Hodgson, as well as Senator
Fubler, because I was also in attendance and it was a
very moving tribute I think to her . And I was really
pleased that CURB took the time out to organise it .
And the famil y spoke very , very well and they were
certainly in good numbers there. So, it was a wonderful event and apparently this is the first time that was done because so much time had passed she since she did pass . So, kudos to everyone who was in attendance to support her and to recognise all that she
had done for Bermuda in the past .
I also would like to associate myself with the
comments that Minister of Justice had given regarding
Melvyn Bassett , whom I knew very well too. His passing was a bit of a shock to quite a number of people.
So, I also would extend sympathies to the families .
And I would like to also associate myself with
the comments from Senator Fubler with regard to the
parade. I understand, like you said, it was over 60 entrants, and they went on to 9:00 pm. Everyone, you
know , really enjoyed themselves that day . And I think
it was really . . . it was a well -organised event . And
like Senator Mischa Fubler, I want to extend kudos to
the Department of Culture because it was so well -
organised, and I think for the first time we had over 60
entrants. A nd it was really quite wonderful .
Now with that, where are we? Item No. 16,
Minister Wilkerson.

ADJOURNMENT
Sen. the Hon. Kim Wilkerson: Thank you , Madam
President .
I move that the Senate do now adjourn until
tomorrow , 3 June.

The President: Thank you.
Would any Senator care to speak on the motion to adjourn ?
Hearing none , then Senator s, I want to thank
you for your participation and all that went on today . I
think we did quite a lot and you need to be very
pleased and to commend yourselves for getting
through the day , the budget . And I think it was a very
healthy response. And I also want to commend the
Opposition for presenting questions in advance. And I
want to thank the Go vernment Ministers for accepting.
This is a new process, and I think it worked out very
well.

[Desk thumping]
The President: So, thank you and thanks again , Vice
President John Wight for chairing the Committee.
With that , the Senate stands adjourned until
tomorrow morning at ten o’clock.


Bermuda Senate Have a good evening.

[Gavel]

[At 4:52 pm, the Senate stood adjourned until
10:00 am, Tuesday, 3 June 2025.]
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