March 22, 2019

Thank you, Senator Hayward.

Sen. Jason Hayward: Madam Chairman, the department sponsored eight Bermuda Electric Light
Company [BELCO] apprentices for training in the
United Kingdom. Three apprentices attended Uniper
Engineering Academy, and five apprentices received
training from W estern Power Distribution. All eight
apprentices were hired by BELCO in July 2018 and commenced overseas training the following month.
The programme is a four -year apprenticeship, which
consists of 18 months of overseas training in the Uni ted Kingdom and t he remaining four years consists of
on-the-job supervised training with BELCO.
The department sponsored five Bermuda Air
Conditioning Group of Companies apprentices for
training at the Bermuda College this [fiscal] year. The
apprenticeship is for a five- year period, including theory and supervised training monitored by the Training
and Assessment Officer.

Plans for the Upcoming Year

Sen. Jason Hayward: Madam Chairman, I will shift
and try and highlight the work that will be undertaken
in the 2019/20 fi scal year. The department, along with
the National Workforce Development Plan Working Group, will lay the groundwork to support the impl ementation of the National Workforce Development
Plan. The plan is very comprehensive and includes
multiple recommendati ons. During this period, the department will work to achieve the following towards
realising the plan for Bermuda:
• establish the National Workforce Development Board;
• create the framework for Bermuda’s One- Stop
Career Centre; and
• consult with key stakeholders to review the
facility needs for the creation of Bermuda’s
first One -Stop Career Centre.
352 22 March 2019 Official Hansard Report

Bermuda Senate During the 2018/19 fiscal period, considerable
consultation occurred with key stakeholders around
the plan. Stakeholders and employers have given
their support of the recommendations. The depar tment recognises the importance of marketable work
skills. During the consultation period, employers and
human resource professionals consistently indicated
the need for job seekers to develop and strengthen in
the areas of soft and life skills.
Madam Chairman, these are critical characteristics needed for employee hiring and retention in
the workplace, apart from the requisite technical skills.
As such, with the transfer of staff from the Community
Education and Development Programme, the Career
Development Section plans to expand its offerings of employability skills training to include online and eve ning courses in community clubs, churches and schools. In other words, the Career Development Section will elevate the level of in -house training offered to
clients and to the general public. Funds have been
allocated to utilise experienced facilitators to deliver employability skills and additional training.
Madam Chairman, the Department of Wor kforce Development is making significant efforts to pr ogress National Certification and recertification for electricians. In collaboration with Bermuda College, the
department will launch an online training and testing platform, which will be facilitated through the Bermuda
College National Training Alliance. This initiative will
provide greater access to requisite courses for N ational Certification. Further, the online platform will be
augmented by traditional on- demand classroom trai ning. Both the online platform and traditional classroom
training will be aligned with the 2017 National Electr ical Code Standard.
Madam Chairman, the department is commi tted to ensuring that Bermudians are not disadva ntaged and that they are prepared to meet the needs of
the workforce. As I conclude my pres entation, I would
like to take this opportunity to acknowledge the hard-working staff of the Department of Workforce Deve lopment led by Director George Outerbridge. This
group is at the forefront of assisting Bermudians in preparing for the world of work.
Madam Chairman, this now concludes my
budget presentation for Head 60, Department of Workforce Development.

Thank you, Senator Hayward.
Would any other Senator like to speak to
Head 60, Workforce Development?
Senator Robinson.

Sen. Dwayne Robinson: Thank you, Madam Chai rman.
This was a very comprehensive brief. Most of
my questions are actually answered, so I am very
pleased by that. My two remaining questions are just
for my personal clarification, Madam Chairman, the average spons orship per person, which is on page B -
267, under business unit 70015, I just simply want to know the reason for the fluctuation in the amount of
sponsorship per person. It probably could be because
of the allocation or reallocation of funds. But just for my personal knowledge, I just want to ask that question.
Now, I would like to go to [page] C -19. I am
looking at line item 6866, and I noticed there was a
marked decrease in funding in this particular section,
from 2017. But the funding has remained the same throughout the original estimate and the estimate of
2019/20. I was just wondering if less funds are being
dedicated to the scholarships in this particular line
item, or is there a marked decrease in those receiving
or applying for these particular scho larships?

Sen. Jason Hayward: Which line item was that? For
clarification, Madam Chairman.
Sen. Dwayne Robinson: Under the Department of
Workforce Development, line 6866.

Would any other Senator like to
speak to this head?
Senator Kempe.

Sen. Nicholas Kempe: Thank you, Madam Chai rman. Thank you, Senator Hayward.
My questions were actually on a similar line. A
lot of my questions were answered, but looking at t he
average sponsorship per person, I guess what I was
trying to understand was is there a fixed bucket of
money per sponsorship, and if more people applied
than were expected does the amount per person get [reduced]? Or is it completely needs based, and it is
[because] people who come and apply are above that
median threshold and that is why the amount goes
down? And how does that relate to the sitting target.
I think we already have the answers to why
Career Development has increased this year and I belie ve it is because that is the entirety of the alloc ation from the Department of Education from the year
we are in and from Cultural Affairs and Sports the
year before. I think I have seen that same $700,000
floating across a number of heads. But I did not w ant
to make any assumptions.
Looking at the Job Board results, I am very
pleased that this initiative is still going strong. Sorry,
on page B -268, it is one of the performance
measures. The board seems to be more and more
engaging each year as it goes for ward, exceeding
forecasts, which is excellent news. It is also good to
see that it is not just people registering jobs on the
Job Board because they have to; but we are also se eBermuda Senate ing a number of individuals hired through the Job
Board increasing and exceeding forecasts.
I guess my question comes down to . . . and I
ask this because I do not have sort of cable subscri ption at home, is the cablevision channel that ran the
Job Board adverts still running?
Looking at C -19, and, again, my colleague,
Senator Robinson, has asked this. I noticed that this amount is similar to the amount in scholarships that
were increased under the . . . I cannot remember
whether it was the Department of Education or the
Bermuda College line item. So I am wondering if the
scholarships were transferred from Workforce Deve lopment to Education, or where that funding allocation
went. I noticed that apprenticeships have been bo lstered, but the actual scholarships line, I want to know
if that was transferred to the Education budget in
2018/19.
Those are all of my questions. Thank you,

Senator Hayward, do you have some
answers?
Sen. Jason Hayward: Yes, the average sponsorship
per person will fluctuate because the sponsorship is
needs based. And so it is not a fixed amount set per
head.
Scholarships remained flat with the cost centre; you will find the missing amount is actually the
money that was transferred to Bermuda College.
The Job Board is still running on the cable
television, free of cost on channel 87.

Are there any other Senators who
may wish to speak?
Senator Hayward, if we cannot have answers
to all of the questions, then maybe we can just defer until afterwards. But would you like to proceed and move your head . . . or do you have more answers?

Sen. Jason Hayward: I believe I sati sfied the questions that were asked.

Thank you, Senator Hayward.
Now, we are moving on to the next Ministry,
which is the Ministry of Health. We are going to look at
Head 24, which is the Hospitals, and Head 55, which
is Financial Assistance. I believe that Senator Jason
Hayward is up again.
Do you need to take a breath? Have some
more water.
We will be going to page B -184 for the Hosp itals, and we have two hours for both of these heads.
Senator Hayward.

MINISTRY OF HEALTH

HEAD 24 —HOSPITALS
Sen. Jason Hayward: Madam Chairman it gives me
great pleasure to present the budget for the Ministry of
Health, Head 24, Hospitals, which can be found on
pages B -184 to B -185 of the Budget Book.
Madam Chairman, the mission of the Ministry
Headquarters is to make Bermuda healthier.
Some highlights of the Ministry’s performance
measures are better demonstrated in the Ministry of Health Roadmap 2019, which serves as the Ministry’s
annual corporate plan and provides a helpful overvi ew
of the Ministry as a whole. The Roadmap 2019 has been published on our website at www.gov.bm
under
the Health Library.
Madam Chairman, Head 24, Hospitals, repr esents the amount dedicated by the Government t oward hospi tal care for subsidised persons, which is
100 per cent of children from birth to age 18, or 21 if in
full-time local education; 100 per cent for indigent; and
70 per cent of hospital costs for seniors aged 55 to 74;
80 per cent of hospital costs for senior aged 75 years
and older. This contribution by the Government, fund-ed from the taxes all of us pay, serves to dramatically
reduce the burden of insurance costs on families and
seniors. It is a tremendous contribution to the comm unity and [accounts] for alm ost 50 per cent of all hospital funding.
Madam Chairman, page B -185 of the Budget
Book lists the allocations of the Hospitals Subsidy
Budget to the various population it serves. However, it should be noted that these are prorated estimates
and, in fact, the legislation requires the hospital to provide the care to the eligible subsidised population
for the contribution appropriate in the budget.
Madam Chairman, Bermuda remains severely
challenged, like many developed countries, in provi ding affordable health care services to an ageing and
increasingly unhealthy population. Having the Island’s
only hospitals, and being the largest provider of health
care services, Bermuda Hospitals Board [BHB] is fr e354 22 March 2019 Official Hansard Report

Bermuda Senate quently a focus in discussions of how to manage
costs.
I wou ld like to start with a national view. Ma dam Chairman, whilst diagnostic technologies and services, specialist physicians and surgeons, and lea ding-edge therapies have all been developed and pr ovided at our local hospitals, and increasingly in the
private sector, these do not address Bermuda’s bi ggest issues related to health: a growing senior popul ation that has increased from 14 per cent in 2010 to [a
projected] 20 per cent in 2020, and people with mult iple chronic diseases called “multimorbidity.” We cannot lose specialist services which serve many people
on the Island very well.
But the bigger question is how the entire sy stem can respond to the community’s most pressing
health needs. These tend to play out in the hospital at
the moment, as it is frequently the only safety net for
some of the most vulnerable and unwell people in our
community. This is the big picture that we have to address, and BHB is a willing partner in seeking to ad-dress it. For just as government, businesses, and i ndividuals in Bermuda cannot afford the spiralling health care costs, neither can our hospitals.
Both King Edward and the Mid- Atlantic Wel lness Institute are working with increasing demand, co -
morbidity, limited ability to reduce the surge of people in need coming through t he doors, and limitations on
discharging people safely, all in the context of restric ted finances and suboptimal facilities to manage the
increase.

BHB Financial Position
Sen. Jason Hayward: Madam Chairman, perhaps
the most complex challenge facing our health care budget is that Bermuda Hospitals Board cannot fully
reduce the country’s burden of hospital costs on its
own. An effective solution to reduce hospital costs
requires the development of solutions outside of the
hospitals, both to avoid admissions and to care for
post-acute patients when they are discharged.
BHB is in the second year of its Financial R ecovery Plan, which was developed in response to a one-off $25 million budget cut to hospital subsidy in
fiscal year 2018. The Financial Recovery Pl an ident ified a total savings requirement of $29 million over a
four-year period. The expectation of a fixed income
agreement being introduced in 2019 means that this
plan is now being revised and further savings will
have to be made.
Madam Chairman, in f iscal year 2018/19,
BHB expects to achieve a break -even position, having
delivered a deficit of $21 million in the fiscal year end-ing 2018. This position is, however, non- recurrent and
will be supported by a number of technical and one- off
adjustments. These include changes to accounting policy on inventory, changes in depreciation policy,
and a one- off change relating to the Nurses Superan-nuation scheme where provision for this payment is
no longer required.
Although not cash- backed, this has allowed
BHB to reach agreement on fee [charges] related to
MRI and CT imaging without any requirement for additional funds, thus supporting the wider governmental
financial position.
While there have been early successes in
holding expenses close to the level last year, reduc-tion in revenue related to dialysis and inpatient rev enue are projected to decline to $87 million, compared
to $91 million in 2018. Long- term care revenue for
2019 is projected to be $27.5 million (compared to
$29.6 million in 2018), with average occupancy exceeding 95 per cent for both years. Dialysis revenue
for 2019 is projected to be $23 million, and has continued to cause significant pressure on BHB finances.
Madam Chairman, turning to financial year
2019/20, BHB expects operational expenses t o increase by at least 1 per cent, reflecting the impact of
inflation. This will add $3.5 million to the forecast out-turn expenses position for 2019 of $335 million.
BHB expects to continue to invest capital
funds in its ageing infrastructure, but it is f ocused on
its future strategic requirements by reserving funds within its capital programme for two key developments: (1) the development of an electronic health
record which will benefit the entire population of the
Island and will support strategies to i mprove popul ation health; and (2) the production of a business case
for the redevelopment of our KEMH and MWI sites. An initiative that will dramatically improve the facilities’ health care is provided, while reducing annual running
costs.
Madam Chairman, BHB has invested signif icant resources in the delivery of its Strategic, Clinical
Services, and Financial Recovery Plans. These plans aim to deliver high- quality care within available r esources. BHB will not negatively impact clinical quality
or financial balance as a result of moving to capped
revenue. However, in order to manage utilisation,
which, along with inflation, is the main driver of costs,
it may have to place clinical controls on the access to
non-urgent care.
This may be accompanied by a revi ew of the
current clinical thresholds in place. The new funding model will require BHB to be more efficient in its use
of resources. All processes and procedures will be
carefully reviewed, and redeployment roles for staff
will be sought where possible.

Hospital Utilisation and Capacity

Sen. Jason Hayward: Madam Chairman, like most
hospitals, Bermuda Hospitals Board has evolved and grown in line with international best practice and tec hnology. It can treat infectious diseases, manage trauma, mental healt h and substance abuse issues, and
provide the latest specialists and therapies for diseasBermuda Senate es such as cancer. BHB has also followed intern ational standards by transferring intellectual disability
residents out of the institutionalised hospital setting
into its group homes.
Madam Chairman, BHB currently sees over
36,000 attendees annually at the Emergency Depar tment, admits about 500 patients per month for inp atient care, has over 1,100 child and adult mental
health service users, undertakes over 8,900 surger ies
per year in the operating room, conducts over 56,000 diagnostic imaging tests and 3 million lab tests, su pports the births of over 500 babies, and cares for 142
dialysis patients, 102 long -term care residents, and
108 hospice patients per year.
Its sk ill set is deeper with a range of specialists including cardiologists, urologists, neurologists and emergency. It runs every day, all day, and r esponds to national disasters, flu outbreaks, and an ytime someone in our community has an accident, a
stroke, a heart attack or other life- threatening illness
or accident.
At the same time, as people visiting the
Emergency Department may have experienced, BHB
is under increasing pressure. It is not just the numbers
of people coming into Emergency, but it is the complexity of the cases and the multiple health issues
they have, the length of time that they need for assessment and diagnostics, and the increased likel ihood of their being admitted to hospital. Admissions are up nearly 20 per cent compared to last year. Pe ople are having to wait in the emergency room for a
bed on the ward, and at one point in January, 19 of
the 23 emergency beds were filled with people on the
ward. And yet, discharging patients remains challenging.
Families may resist their senior’s return , there
may not be a nursing home space, community care services are not available enough to support seniors
safely back in their homes, and sometimes it is just
because it is raining, or a family member does not
come to pick up them up.
Madam Chairman, t his is a major issue in
King Edward, but there are similar problems at the
Mid-Atlantic Wellness Institute where beds are also
limited. The secure ward, Somers Annex, is over -filled
by 30 per cent, and the Somers Ward inpatient unit is
nearly 80 per cent f ull. Even in Child and Adolescent
Services, where normally occupancy has historically
not exceeded much above 20 per cent, inpatient occupancy in the last two months of 2018 was 88 per
cent and 85 per cent [respectively], and this continued
into January.
In pure numbers, mental health inpatient
numbers rose from 207 in 2016/17, to 277 in 2017/18, a 35 per cent increase.
Madam Chairman, fiscal year 2018/19 also
saw the culmination of work between BHB, the Mini stry of Health, and the Ministry of National Sec urity to
relocate a prisoner with a challenging mental health diagnosis to St. Andrew’s Hospital in Northampton,
England. Secure facilities and trained specialist staff
of the kind required to house a patient with this individual’s complex mental health needs do not exist in
Bermuda. Working with Government, BHB did suc-cessfully provide round- the-clock care while the individual waited to be transferred to the UK at a cost of
$400,000. BHB continues to liaise with St. Andrew’s
so that ongoing needs are asses sed. It manages an
annual budget of $280,000 to support this individual’s care.
There are also changing dynamics in the
group homes due to the ageing of people with intellectual disabilities and mental health problems. About
55 per cent of the people in m ental health group
homes are over 65. That is a considerably higher rate than the community, and the increasing physical health issues that this population is experiencing are
straining the service.
Intellectual disability group homes are similarly pressured by the increasing number of ageing res idents and increasing numbers of intellectual disability
service users who are currently residing in the community and need more support. But the staffed group
homes, being at capacity, cannot accommodate them.
Madam Chairman, this increased pressure
was predicted by BHB’s 2018 Clinical Services Plan, a
document publicly available on the BHB website. It includes input and insight from over 450 BHB staff
leaders, community partners and members of the public. This pla n looked ahead to 2023.
On the acute care medical side, if no changes
are made to strengthen community health and post -
acute care and so reduce admissions and help BHB
discharge patients, 75 more hospital beds will be
needed in just four years. But beds i n hospitals are
not easily the answer as patients, especially seniors, quickly lose physical strength in a hospital bed and
are more prone to infection and mental health issues. Hospital beds are also vastly more expensive than
community care. Our country cannot afford it and our
loved ones deserve better in care.

Reducing Utilisation

Sen. Jason Hayward: Madam Chairman, the Patient -
Centred Medical Home has continued to care for peo-ple who have chronic illnesses who may be underi nsured or not insured. Numbers have increased from
167 last year to 213. Last year, the Government pr ovided the clinical data supporting reduced Emergency
[Department] attendances, fewer admissions to hosp itals and improved health outcome. And this has continued regarding referr als persons and demographics.
Of all referrals to this service, 57 per cent
come from GPs, 11 per cent from the Department of
Health, 29 per cent come from BHB hospitalists in the Emergency Department, and 10 per cent from specialists. Fifty -one per cent of patients are men; and
356 22 March 2019 Official Hansard Report

Bermuda Senate 49 [per cent] are women, with the biggest age group
being from 50 to 69 [years old]. Fifty -three per cent of
patients are uninsured with the remainder on different
health insurance policies. Nearly 50 per cent of patients are obese and 28 per cent of patients have five
or more co- morbidities. The most prevalent diseases
are hypertension (60 per cent) and diabetes (40 per
cent).

BHB Strategic Activities

Sen. Jason Hayward: Madam Chairman, against the
clinical pressure to do more i s the pressure to reduce
costs while improving quality. These are key platforms
of the BHB strategy, which took on the Institute of Healthcare Improvement’s triple aim in 2016 to reduce
the per capita cost of care while improving quality and
the experience of patients.
As part of this strategic plan, BHB recently
partnered with the prestigious Johns Hopkins Med icine International [JHMI]. While the primary goal of this association is to support the education and trai ning of its clinical staff, BHB is workin g with Johns
Hopkins specialists to assess its stroke service with a
view to making improvements and is going to accept
residents from JHMI on one- month rotations, starting
in the Emergency [Department].
BHB is also working with the acclaimed patient safety and service improvement experts from the
Institute of Healthcare Improvement, initially focusing
on reducing the incidence of falls, pressure injuries,
and central line infections. A service improvement
programme is also underway with the support of
KPMG who are providing people experienced in supporting hospital services to become more efficient.
Madam Chairman, two service improvement
projects provide good examples of this work. Weekly
multidisciplinary board meetings which discuss patient
cases i n detail are now supplemented by daily 30minute bullet rounds where the activity for each pa-tient is reviewed. Delays are picked up quickly and
potential roadblocks to discharge are highlighted earlier so discussions with families and patients can start before problems arise.
Pilots have run in two inpatient wards in the
Acute Care Wing. The result has been a reduction in length of stay in both wards despite increases in a dmissions. It should be noted that a reduction of one
day in length of stay can inc rease up to 15 per cent
more capacity in a ward, helping open up beds more quickly to more people. Comparing December 2018 to
December 2017, on one ward length of stay fell by 2.4 days, despite admissions rising by 39 patients over
the same time period, an d on the second ward, length
of stay fell by 3.1 days, despite admissions rising by
27 patients over the same period.
Meanwhile a project in surgery has seen a
reduction in surgery cancellations —a record of zero
cancellations between September and December 2018, was only broken when a surge of admissions
that included a number of very serious flu cases, i mpacted King Edward in January. Improving communication with patients prior to surgery is reducing one of
the biggest causes of cancelled surgeries, patie nts not
showing up, or showing up but not having completed
their pre- surgical preparations or being too unwell.

Estates Management and Facilities

Sen. Jason Hayward: Madam Chairman, while the
maintenance of the Acute Care Wing is paid for as
part of the public/private partnership, the median age
of the Bermuda Hospitals Board’s General Wing and
Mid-Atlantic Wellness Institute facilities is over 50
years old and has been subject to decades of under -
investment. How BHB can best maintain or replace its ageing facilities in the future is already being invest igated. As already mentioned, an Estates Master Plan
has been developed, looking at several options as to
how best to deliver services from our facilities. Further
work is underway to finalise the business case for i nvestment, which will deliver annual revenue savings.

BHB People

Sen. Jason Hayward: Madam Chairman, like many
workplaces in Bermuda, BHB acknowledges that har-assment, bullying and incivility contribute to a poor
work environment. This past year, in response to an
invitation by myself, the presidents of the two organisations partnered with me in my capacity as president of the Bermuda Public Service Union . . . the two organisations partnered with the Bermuda Industrial U nion to roll out the Standing Strong Against Haras sment, Bullying & Incivility Campaign. The campaign
included a new policy, with tools to support employees
and managers in combating harassment, bullying and
incivility in the workplace.
The roll -out of the campaign featured over 30
presentations to 1,800 BHB staff, led by myself and
the BHB Chief Operating Officer, Scott Pearman. A nchored by BHB’s newly restructured Organisational
Development Department, Human Resources is both
supporting staff and managers by developing positive work environments and driving accountability via the
introduction of an Attendance Management Pr ogramme which holds unjustified excessive leave while
better supporting those staff with legitimate illnesses.
Bermuda Hospitals Board has also continued
to of fer opportunities to young people interested in
health care careers. In 2018, a record 70 local st udents took part in BHB’s Summer Student Programme
and, for the second year, Bermuda Hospitals Charit able Trust donated $350,000 to BHB to fund its scho larshi p programme and also support training for staff.
Madam Chairman, this concludes my presentation for Head 24, Hospitals.



Bermuda Senate The Chairman: Thank you, Senator Hayward.
Would you like to go on to the next head, F inancial Assistance, after a brief pause? That i s Head
55 in the Budget Book for those following, and it begins on page B -186.

HEAD 55 —FINANCIAL ASSISTANCE

Sen. Jason Hayward: Madam Chairman, Head 55,
Financial Assistance, found on pages B -186 to B -189
of the Estimates of Revenue and Expenditure.
The mission of the Department of Financial
Assistance is to ensure that Bermudians with insuff icient financial resources have access to services in order to gain, maintain or regain a minimum standard
of living while encouraging personal and economic
independence.
Madam Chairman, the total current expenditure is estimated to be $51,484,000. This is $200,000
less than the prior year because the grant funding for
Teen Haven was transferred to the Department of Child and Family Services when the two departments
were moved to separate ministries.
The Department of Financial Assistance
budget constitutes 21 per cent of the budget allocation
for the Ministry as a whole. This allocation of funds will
continue to maintain grants, Financial Assistance pr ogramme support, and the child day care scheme during the fiscal period.

[Change in Chairman]

Sen. Jason Hayward: Mr. Chairman, before I present
the budget, I would like to set the context about the
Financial Assistance programme, as there are many
misconceptions about the programme and the popul ation it serves.
To begin, it is important to understand that
most Fin ancial Assistance recipients are seniors, di sabled persons, and child day care recipients. Only 26 per cent are able- bodied adults. In fact, as at January 2019, there were 3,258 recipients in total, as follows: 1,184 pensioners, seniors; 896 persons with disabilities; 214 able- bodied unemployed; 352 persons with low earnings; and 612 child day care allo wances.
Financial Assistance is committed to making
work pay and its award structure provides a foundation for this as persons do not lose all benefits if t hey
find some employment. More work is being done to advance this policy to help get more people back to
work. Mr. Chairman, in light of the profile of the per-sons in need of such assistance and the type of support granted, it has become clear that in order to bring
much needed improvements to the programme we
have to focus on making the programme financially sustainable, improving efficiency, and ensuring a
more equitable allocation of awards. Mr. Chairman, I now move on to the present ation of this budget.

Capital Expenditure

Sen. Jason Hayward: There was no project planned
for the year 2019/10

Manpower
Sen. Jason Hayward: The full -time equivalent [FTE]
count for 2019/20 remains at 34, as detailed on page
B-188. The caseloads at the department conti nue to
remain steady, with Financial Assistance workers
maintaining over 200 clients per worker.
Management Consulting Services has commenced a review of the organisational structure and operation of the department to determine the optimal
design or framework to meet current and projected
client demand. This was the first recommendation accepted from the 2018 Reform Group Report.

Output Measures

Sen. Jason Hayward: The Output Measures for
2019/20 budget estimates are listed as two business
units at page B-187. They are, 65050, Grants and
Administration; and 65080, General Administration.

[Sen. Michelle Simmons, Chairman]
Sen. Jason Hayward: Madam Chairman, cost centre
65050, Grants and Administration, is estimated at
$49,511,635. These funds maintain grants to Fina ncial Assistance and the child day care programme. There is no change in the amount from the prior year,
and all programmes remained static in activities whilst
the department transitioned, with the introduction of a
new director.
Madam Chair man, there are two types of
grants awarded from these estimates. The first i nvolves the issuance of funding to support community -
based programmes such as the Society for the Blind,
Meals on Wheels, STAR (Supportive Therapy for persons with AIDS and their R elatives), Salvation Army
Shelters, and Teen Haven.
The total support to these helping organis ations amounts to $828,000. The remaining $48,683,635 serves as the total budget divided between the assisted programmes for eligible individuals
of $45,283,635, and the child day care scheme of
$3,400,000.
Madam Chairman, this year, the department
addressed recommendation number 5 of the Reform Group Report by eliminating the job search sheets
once used by able- bodied and earnings -low Financial
Assistance client s to perform job search activities. The
recommendation read, “firmly establish the job search component for able- bodied unemployed financial as358 22 March 2019 Official Hansard Report

Bermuda Senate sistance clients under the Department of Workforce
Development and target job searches as part of a
case management plan that provides appropriate
guidance.”
In a previous Ministerial Statement, there was
mention that clients, who must participate in job search activities as a part of their eligibility requir ement to receive a financial award, must now utilise the
Bermuda Job Board. The officers at the Department of
Workforce Development stand ready to assist them in
finding suitable employment opportunities.
Madam Chairman, there were 38 investigated
cases of alleged abuse during the reporting period.
Some of the reported cases involved overseas travel,
overstated timesheets from caregivers, receipt of f inancial assistance whilst being gainfully employed,
undisclosed income, returned to the Island less than
one year ago, and unreturned funds from rest or nur sing homes where client passed without notification to
the department.
Madam Chairman, a total of $197,018 was
owed at the beginning of the year. The inves tigative
officers were successful in recouping $29,729, leaving
an outstanding amount of $167,288 owing to the department. The department is working closely with the
Attorney General’s Office to consider all options to
obtain these funds.
Madam Chairman, the total estimate for cost
centre 65080, General Administration, for 2019/20 is $3,172,263. There is no change from the prior year.
The largest expenditure in this unit is for the manpo wer that manages cases and conducts oversight; ther efore, salaries represent the largest component, as can
be seen in the analysis on page B -187. Nevertheless,
salaries represent less than 6 per cent of the total
spend on Head 55.

Major Policy Changes

Sen. Jason Hayward: Madam Chairman, there were
no policies changes this current year. However, as a
result of reform planning and feedback captured from
the various audit reports, the following proposed changes are being considered for the coming year:
• Re-examine the overseas travel policy in an
attempt to reduce abuse of the financial pr ogramme. The penalties should be more punitive. The department should have the author ity to refuse future applications from individuals where it can be proven that they disr egarded the rules on multiple occasions. Perhaps better known as the ‘ three strike rule.’
• Amend the Financial Assistance legislation to
clarify the definition of a “senior” as being di stinct from a person who receives a pension
before the age of 65. There are instances where employers are providing the option of
early retire ment. In some cases these indivi d-uals are still able to work, and should be
treated as ‘able- bodied.’
• Amend the Financial Assistance Act 2001 to
more clearly define “financial assistance” by indicating what a “minimum standard of living”
actually means in terms of a basket of goods
and services. The cost of living from year to
year has constantly increased making this
welfare programme difficult to sustain. Extensive research in respect to the ‘low income threshold’ and other market data like rental
and uti lity costs will be examined to determine
where changes should occur.

Plans for the Upcoming Year

Sen. Jason Hayward: Madam Chairman, in keeping
with the work performed by the reform group, the department will undertake to complete the following:
• Conduct more frequent public awareness m edia activities to ensure that the community is well informed.
• Request the Attorney -General’s Chambers to
provide a legal opinion advising whether a person who inherits a property from a senior who has benefited from financi al assistance
could be statutorily required to pay back some portion of the funds to Government.
There has been much debate in the media in
respect to this topic following its first announcement in
the House. The department has many examples
where parents convey property to their relatives wit hout receipt of benefit. The parent is then removed
from the home only to seek financial assistance. In
this instance, the “reclaim” is two- fold: Where a senior
conveys a property, receives no benefit of sale and
then requests to be a recipient of financial assistance,
the government should be able to recoup a percent-age of the funds used to sustain the well -being of the
senior from the inheritance;
Secondly, as expressly stated, if one inherits
a property where the own er received financial assi stance prior to their death, a portion of the sale should
be provided to the government to recognise the ben efit received during life.
Madam Chairman, nobody wants or intends to
deprive seniors of their properties. But in the face of
an ageing population and a rising need for assistance,
the country has to find other ways to fund the long -
term care of financial assistance recipients. It is fairest to taxpayers that seniors use their assets to fund their care, rather than the government paying and their
next of kin keeping the assets.
• Review social policy in other jurisdictions to
determine whether any mechanisms are in
place to enable governments to recover financial benefits paid to seniors who own property.


Bermuda Senate • Financial Assistance s taff will participate in
extensive customer service training to i mprove client experience.
The department plans to work with the go vernment nutrition team to promote a nutrient -rich
shopping list. There are plans to increase the list of
forbidden items, or those goods that cannot be pur-chased using a food card issued by the department.
Currently the only items banned for purchase are a lcohol and tobacco.
Madam Chairman, that ends my presentation
of Head 55, Department of Financial Assistance.

Any other Senator wish to speak?
Senator Robinson.

Sen. Dwayne Robinson: Thank you, Madam Chai rman.
I am looking now at B -184, in the general
summary 2401. My biggest question here as far as
this section was the mental health initiative that the
government had mentioned, and especially with us passing similar legislation to assist in these matters , I
was interested as to why there had not been any add itional funding to the Mid- Atlantic Wellness Institute. I
figured that this would have been one of the leading places which would benefit from this additional
awareness of mental health.
Now, moving over to the breakdown over here
on page B -185. I noticed that the, as we all know, that
the seniors are the largest subsidy. But I realised that the number here under Aged is the exact same nu mber that is budgeted for 2018/19 that has been bud geted for 2019/20. However, we see in the rev ised estimate that this is already been eclipsed by $9.2 mi llion. So, I am wondering if that has already gone over,
according to the revised estimate how exactly the
Government intends to meet the 2019/20 estimate
amount with an ageing population, Madam Chairman.
Moving to Head 55, I would like to ask if the
same number of people are receiving financial assi stance, [unless] this is just a result of efficiency, [why do] I notice that the amounts of expenditure and funding here are trending to decrease? The Chairman: Which items are you looking at —

Sen. Dwayne Robinson: I am just speaking, speaking broadly, here.

Just in general, then.

Sen. Dwayne Robinson: As far as the 2019 est imates for pretty much all the categories. The decrease is not very large, but across the board there
have been decreases in the budgeted amounts. So, I
am just wondering if this is a result of the efficiency
that was mentioned in the brief, or if there is just fewer
people receiving financial assistance.
And my other question is, has the shift in directors, or the transition from one director to another,
affected the 2019/20 estimate, and if so, can we get maybe a bit of a . . . I would not say a sneak peak, but
a bit of a heads -up on what type of impact that might
have if it did affect the 2019/20 estimate as far as
funding goes.
Now, moving over to page B -188 where I
have heard as well in the brief and from my own r esearch that there will be increased scrutiny as far as
how the awards are given and how they are received,
I am wondering if we see here in the full -time equiv alents that the staff has remained the same. I am just
going to ask if this increased scrutiny is sustainable with the current staff? Will this be enough that they
carry out that increased workl oad? Or is there a sy stem that is currently in place to make it efficient that
the current staff is able to keep up with this increased scrutiny as far as who is awarded?
And just to jump over to B -189, for my personal knowledge, I would like to ask under business
unit 65080, number two. The goal here is to complete
700 site visits for financial assistance clients during
the year. And as we see, this has not been achieved
since 2017/18 and the target outcome of 2019/20 is only 500. So, it comes back to whether or not we have
an issue here with resources or if this is just a strategy
being employed by the Government.
But my question is, are there any negative
implications for not visiting the targeted [number of]
assisted clients? And if so, what might they be? And
with that, I conclude my questions, Madam Chairman.
Thank you.

Senator Joan Dillas -Wright —

Sen. the Hon. Joan E. Dillas -Wright: Yes, thank
you, Madam Chairman.
360 22 March 2019 Official Hansard Report

Bermuda Senate I would just like to, first of all, start with Head
24, the Hospital, and I wanted to ask a question about
the patient -centred medical home. I mean, I am aware
of, you know, the high nu mbers of patients that do
turn up at the hospital. And some of them arrive be-cause of financial situations or whatever, they will go
to the emergency department rather than go to their
GP and if they do have, as I say, financial problems,
then that is wher e they will end up and it ends up putting quite a number of patients, you know, having to wait for beds. But I know that the hospital did intr oduce the patient -centred medical home [programme]
and I wanted to find out how many diseases must the
patient hav e, or the client in the emergency depar tment is presenting. Is it —because it has been stated
that the average individual will have about five medical issues or medical problems and it could be hypertension, diabetes and a whole host of things. So, I just
wanted to know if there was a criterion for the number
of diseases they must have to be entered into this p atient-centred medical programme.
The other question I wanted to ask is, How
many doctors are assigned to this programme? And
do they volunteer or ar e they, you know, budgeted
and paid by the hospital? So that was one thing.
I wanted to ask, just for my own edification I
suppose, a little bit about the nurse superannuation scheme, and I am aware of it in the past and I just
wanted an update on exactl y . . . I know it has ended,
and I just wanted to have some information about the
scheme and whether or not there are any more nur ses at the hospital, or staff at the hospital, who would
have qualified or if they have all been dealt with.
I want to ask a question about dialysis because dialysis has certainly been a major issue in the
Island and, so, I think I heard the Junior Minister say
that there were about 140 people on dialysis. I just
wondered, I know there has to be some communic ation with the dialy sis programme in the community,
and I just wondered whether they are also put on a
. . . if we have patients who are on dialysis who qual ified for a kidney transplant, whether or not the hospital
has some means of working with them or do they do their own programme and with the overseas provider.
I was not sure, I have not checked with regard
to the costing now of the dialysis, so if I can just be given some information about the current cost and the
number of patients. I think he did say 140, but I just
wanted to know whether or not that is a constant
number or are we still adding to it. And the other thing is I know we have an arrangement with the New England Bank for transplants and I just wondered—I am sure that continues, but whether or not there has b een
any transplants this past year.
I may have some more, but I will just go over
to the . . . I just wanted to ask a question about . . .
yes, okay. The MWI . . . I think we are . . . as som ebody who knows the hospital quite well, I think it is really di sturbing that the number of clients who are living in the group home, the residents are ageing.
And so, aside from the fact that we have a number of,
you know, in the regular population that we have
these individuals . . . and I wonder if there are any
plans for them in terms of how much help they are
going to require because if they are ageing and they are also having the physical problems. I know that
there is something in the budget about rebuilding . . .
not rebuilding it, but doing some renovations to MWI. I
just wondered if these clients who live in these res idences in the community whether or not they have
been factored into whatever the future holds for these
clients.
With the St. Andrews hospital, I was pleased
at long last to see that there was an arrangement with
St. Andrews, although it is costing the board and MWI
tremendous amounts of money. I think in the past there was always the view that Bermuda . . . we do
not have that many patients at MWI who need a s ecure environment and what it would c ost at the time to
have built such a forensic unit. I mean, at one time it was talked about doing it at the other end, at the pri son service, having part of it turned over. But anyway,
$400,000, is it dollars or is it pounds? I am not sure I
heard it right . But that is a tremendous amount of
money, and I wanted to know in terms of a time frame,
is there continuous treatment or is there any plan for
review after a year or two? Or is there any plan for —in
the future—that this person can be brought back to
Bermuda, you know, treated and returned? Usually
such individuals commit criminal offences. So, I do not
know if this individual was committed for a particular span of time.
I think I heard that . . . I just want confirmation
that they said there were 75 for the group homes. I am
sorry I am going back and forth (I just picked up my
notes, here) . . . that 75 more beds are required for
the learning disabled. And I just wanted to know, are
these clients, patients, are they in MWI at the moment or are they wait ing to be placed or are they in the
community who have aged, and they need to be in a
group home or an environment?
I was glad to hear that the Johns Hopkins . . .
I mean medicine, that is a very, very good arrange-ment. It has been in the past and we kno w that Dr.
Malcolm Brock is there, so we do have some history
of some communication and they have been extrem ely good in providing nurse training as well as helping
our doctors when they have to . . . creating their skills
and things like that.
I will go over to financial assistance, and I
may have to come back to the hospital, but I just
wanted to ask . . . I was very concerned to see, I
mean, this has always been a problem, but when you
read that the case workers there have 200 clients —

Thank you.
Sen. the Hon. Joan E. Dillas -Wright: My question is,
in terms of what is the ratio of clients that are healthy,
clients per case worker, because there is always the
issue of burnout with people who have, you know, the
very high number of clients that they have to see. So, that was a question that I had for that. I may have a nother question on financial assistance, but those are
my questions for the moment.
Madam Chairman, thank you.

Junior Minister.
Sen. Nicholas Kempe: The Junior Minister of Health,
as well?
The Chair man: He is the Junior Minister.
Sen. Nicholas Kempe: Okay, well there you go. My
apologies, Junior Minister.
I would like to expand, I guess, on a couple of
questions that have been asked by the two Senators
that preceded me. When we look at the King E dward
Memorial Hospital line, we see that the age subsidy is the one—

Thank you.

Sen. Nicholas Kempe: We see that there was that
$10 million, I guess, not an overspend, because we
are not in the actuals yet, but the revised estimate is
running at about $10 million more than the original estimate. And given the fact that we do have an ageing population, an d the trends are running for that
weighted average in the community to be ever more
senior in age, I guess I would like to know on two fronts, what is it that caused the overspend so far this
year? And what has been put in place, or what information and tr ends that seem to buck the population trends that we are seeing in census reports and that
kind of thing justify that the subsidy amount be put
again next year at the same amount it was budgeted
for this year, when there has been such a large
swing? It is the only line item that has such a large swing. So I would just be curious to find a little bit
more about why it happened and why we think it will
not happen again next year.
When I look at the Financial Assistance head,
Head 55 on page B -187, I guess I am going to look at
the employee number, or number of employees, from
a slightly different angle.
We note that there is some wildly . . . not wild,
it is not that huge of a fluctuation, but we have a fairly significant fluctuation between the 2017 actuals, the
original for this year, the revised for this year and the estimate for that year. The difference between the highest and the lowest spending amount is about
$164,000. Is that due to changes in employees and
there being uncovered posts? Is it due to overtime?
Because $164,000, given that there has been no
change in the [number of] full -time equivalents during
that entire period and yet $164,000 swing in salary
spend . . . my question is, given that I believe the a verage employment cost in the ci vil service is about
$85,000, what is the cause of that fluctuation? If it is
overtime, has the department considered an additional hiring, because $164,000 would cover approximat ely two more employees. So, I just wanted to get a little
bit more information into what was going on there.
I am pleased to see that we have realistic target outcomes again. Last year the forecasts were i ncreased both on the percentage of awards to day cares for the last month and increased with the number of site visits. However , there was no increase in
funding. So, I was questioning how that would have
occurred last year and the revised forecast and the
target forecast seems in line with a department that
has had a pretty static amount of resources attributed.
If I may, I am flipping to the grants and contr ibutions page in Schedule 1 on [page] C -17, Madam
Chairman. And I will give people a second to find it if they are flipping there.
The first line . . . and my apologies if I missed
it from the brief, but the grants to exter nal bodies line
has had a fair amount of . . . S o I just was not sure if
that was transferred into other grants and contribution
lines that are detailed in the budget or where that
went. I am also curious with the LCCA medical care
overseas, what has cause d the almost 33, 40 per cent
decrease in the revised estimate this year? That
seems to buck the trend. The actual, the original
budget and the estimate for next year all sit a little
north of $2.8 million, but this year so far, the revised
estimate is at $1.8 million. So, I just wanted to get a
little bit more perspective into why we have that di screpancy on the revised estimate this year.
My other question is on Summerhaven. I
would just like to know what it is that caused the orig i362 22 March 2019 Official Hansard Report

Bermuda Senate nal estimate for this year to be almost half of the act ual spend from 2017/18 because the revised estimate
showed that it was back up to the 2017/18 levels and
yet we are budgeting for a decrease again for
2019/20.
My last question, Madam Chairman, relates to
health insurance. I am on C -18 now, on the following
page. I just want to know what caused the almost $1 million increase in reimbursement of the HI fund from
the 2017/18 actuals to the 2018/19 original, revised
and 2019/20 estimates.
Thank you, Madam Chairman.

The Cha irman: Thank you, Senator Kempe.
Would any other Senator like to speak?
Okay, Senator Hayward, we are going to back
to you for some answers to the questions.
Thank you.

Sen. Jason Hayward: Some money has been moved
from the Financial Assistance [FA] department and is
now under t he Attorney General’s Ministry.

Sen. Nicholas Kempe: A point of clarification.
[Crosstalk]
Sen. Jason Hayward: That is what you were asking
for, Summerhaven or Teenhaven—

POINT OF CLARIFICATION
Sen. Nicholas Kempe: Summerh aven.
Sen. Jason Hayward: Oh, Summerhaven. Let me
begin with [Senator] Kempe’s questions. The ques-tions applicable to [pages] C -17 and C -18 that Senator Kempe asked are not covered under the Heads 24
and 55.
The number of persons on financial assi stance has increased. But the budget is decreased due
to efficiencies that will be achieved.
The director change did not impact the funding level at all.
When we talked about the structure of the
Financial Assistance department, Madam Chairman, the question was asked and the answer is that, as I
stated in the brief, the department is going through a
management service review to ensure our programme
is staffed appropriately. So at the end of that management service review, we would have the answers
to the ques tions that were asked.
In terms of the touchpoints regarding the staff
within FA, the visits are projected to increase because
FA has now been able to acquire a vehicle for visits.
Madam Chairman—

Sen. Nicholas Kempe: I am sorry, just a point of
clarification on that note. The Chairman: What is your point of clarification,
Senator Kempe?

POINT OF CLARIFICATION

Sen. Nicholas Kempe: It is about the number of visits
in the performance measures for financial assistance.

Thank you, Senator Kempe.
Senator Hayward?
Sen. Jason Hayward: I am not going to get into the
technical si de of the desired outcomes. Right now, we
have a number of visits. The Senator asked, do you
expect visits to increase next year? We were hindered
in the number of visits we can do due to the lack of a
vehicle. The visits will increase. Whether or not that
has an impact on that particular line item or that performance indicated in the book, I do not know.

Thank you.
Do you have a few more questions?

Sen. Jason Hayward: Yes, I do, in regard to MWI.
We are actively considering how challenges of
ageing clients can be addressed. That is a problem
that we do acknowledge. In addition, St. Andrews f orensic medical health . . . it will be more expensive to
provide the treatment there. This case is being treated and his return is planned i n three years. The intent is
that the treatment will mean he will live in our comm unity safely.
Patient -centred medical home, a question,
Madam Chairman, was asked around that. And this
has been very successful in reducing hospitalisation.
Only one condi tion is needed for an individual to be
eligible.
Contracts, doctors and . . . it is largely nurse
led. Big programmes. Unfortunately, we do not have
the information you require on the nurse’s superannuation fund. But we will endeavour to get that respons e
to you. Madam Chairman to Madam President, these
dialysis providers collaborate when patients move between them. Overall, there are 201 dialysis patients.


Bermuda Senate There were roughly around four or five kidney transplants this year.
Regarding MWI, on page B -184, they will r eceive some additional funds from the current year to
support mental health, the Mental Health Act.
Under page B -185, the $10 million, this is to
cover subsidising dialysis premiums. Adjustments will
be announced which will prevent subsidi es incurring
these claims. And so it is an adjustment that will be
made. The announcement will be made, but it will
prevent the subsidy incurring those sorts of claims and that is why you see the difference in that amount.

Sen. Nicholas Kempe: A point of clarification, Ma dam Chairman.

Thank you, Senator Kempe.
Senator Hayward?
Sen. Jason Hayward: The $10 million did occur this
year. We are not expecting fewer dialysis patients, but
what we are going to do is do a premium adjus tment
and, like I said, that will be announced that would pr event subsidies incurring on those claims. And so, the financial outlay would not be the same in the future.

Thanks. Do proceed, Madam Attorney General.

NON -MINISTRY DEPARTMENTS

HEAD 63 —PARLIAMENTARY REGISTRAR

Sen. the Hon. Kathy Lynn Simmons: I would now
like to present, Madam Chairman, the brief for the Parliamentary Registrar, which is Head 63, found on
pages B -20 through B -23 of the Estimates of Revenue
and Expenditure.
Senators are reminded that these are n onMinistry departments.

Mandate
Sen. the Hon. Kathy Lynn Simmons: The mandate
of the Parliamentary Registrar is to serve the elec-torate of Bermuda, irrespective of their race, creed,
colour, or political affiliation, with respect and unb iased attention to their needs, whilst pursuing the full
objectives of the democratic process.
And you can find the department objectives on
page B -20 and they are as follows:
• Maintain and ensure that the continuous registration process is ongoing, open, compliant
and t ransparent.
• Maintain a complete, accurate and up- to-date
register for voters.
• To protect the rights of qualified citizens to
register and prevent the unlawful or fraudulent
registration or removal of persons.
• To provide prompt and timely issuing of apostille certificates in efficient manner.

[Change in Chairman]

364 22 March 2019 Official Hansard Report

Bermuda Senate Sen. the Hon. Kathy Lynn Simmons: Mr. Chairman,
the Parliamentary Registrar is appointed by the Go vernor under the provisions of the Parliamentary Election Act 1978, and as such, is required to discharge
the duties conferred or imposed under that Act. The
Parliamentary Registrar is subject to the general d irection of the Governor, and in the exercise of his
statutory duties, is assisted by such number of public officers as may from time to time be authorised to be
employed.
The Parliamentary Election Act 1978 (as
amended) and the Bermuda Constitution Order 1968
are the instruments by which the activities of the Parliamentary Registry are governed. On occasion the
Houses of the Legislature may pass other Acts such as the Capital Punishment Referendum Act 1989, the
Independence Referendum Act of 1995, the Referendum Act of 2012 and the Municipalities (Election) O rder 2011 that have a direct effect on the office’s activ ities.
Mr. Chairman, the staf f at the Parliamentary
Registry consists of five full -time positions under the
direction of the Parliamentary Registrar, Miss Tenia Woolridge. It is intended that the department will have
two additional workers to assist with election prepar ations for the Bermuda Municipal Elections scheduled
to take place in May 2019.
Mr. Chairman, the Parliamentary Registry
continues to make strides in improving our processes
and procedures for registration of voters and general
maintenance of the Parliamentary Register. We continue to look at the quality of our service delivery (and
I am speaking first -hand to that) and have committed
to allowing staff to take the necessary training in order
to ensure continued quality of service. As always we
are committed to maintaining the Parliamentary Register to ensure it is accurate in accordance with the
Parliamentary Election Act 1978.
In this current fiscal period the department
conducted bye- elections for constituencies 22, Paget
East, and 25, Warwick North East, on the 7
th of June,
2018. These bye- elections saw a turnout of 52 per
cent and 54 per cent, respectively. Both elections
were conducted and managed with great efficiency and integrity, and there were no reported incidences
of electoral fraud.
Mr. Chairman, the Parliamentary Registry is
committed to continued dialogue with all stakeholders of the democratic process with a view to ensuring the integrity of the process and identifying areas for i mprovement. In the next fiscal period we intend to push forward with initiatives to improve the electoral pr ocess for all voters, including those with visual impai rments who can benefit from tactile voting devices that will allow them to vote independently in the future.
This year during Voter Awareness Month in
April, the Parliamentary Registry will hold a series of
presentations throughout the senior schools, with a focus on educating new voters on the electoral pr o-cess in Bermuda and the voter registration process,
giving voters the opportunity to ensure they are regi stered to vote correctly, to apply to register to vote for
the first time, ensure they know which constituency
they live in and if that constituency has proposed
boundary changes that will take effect in the next
General Election.
Furthermore, Mr. Chairman, t he department
will be pushing forward to integrate all the apostille
receipting and invoicing within Accountant General
Enterprise Resource Planning, known as the E1 sy stem, thereby shifting away from the uses of several
spreadsheets for reconciliation. In addition, it will
manage and operate its own bank account to meet
the demand and preference by international and major
private sector clients for the domestic and wire transfer mode of payment rather than cheque. Overall, this initiative will align with t he Internal Auditor recommendations for improvement in the audit trail and efficiency of the revenue stream.

Administration —73000

Sen. the Hon. Kathy Lynn Simmons: Mr. Chairman,
I now turn my attention to the specific estimates of
expenditure and revenue in the five cost centres of the
Parliamentary Registrar’s Office.
The total budget allocation for the Parliamentary Registrar’s Office in respect of fiscal year 2019/20
as shown on page B -20 of the Budget Book is
$1,571,000, which remains relatively unchanged to
the original budget for 2018/19.
Mr. Chairman, with regard to administration,
which is cost centre 73000, the proposed budget for the Administration of the Parliamentary Registry for
2019/20 is $944,000, which is an increase of $79,000,
or 9 per cent over the original budget for 2018/19.
This increase is mainly due to the alignment of bona
fide administrative expenditure to Administration, cost
centre 73000. The funds in this cost centre enable us
to carry out the daily functions of the Parliament ary
Registry to include:
• supplies and issuing of voter identification cards;
• supplies and issuing of apostille certificates;
• overtime costs associated with voter awar eness month initiatives;
• general office supplies and cleaning;
• printing of all registration forms and parli amentary registers;
• content management of the website; and
• maintenance of the PRO+ electronic register and database.

Boundaries Commission —73005

Sen. the Hon. Kathy Lynn Simmons: Mr. Chairman,
with regard to the Boundaries Commission, c ost ce ntre 73005, the proposed budget for the Boundaries


Bermuda Senate Commission for 2019/20 is $38,000 which represents
a decrease of $5,000 from the original budget in
2018/19.

General and Bye- Elections—73010

Sen. the Hon. Kathy Lynn Simmons: Mr. Chairman,
with re gard to General and Bye- Elections, under cost
centre 73010, the proposed budget for the General
and Bye- Elections cost centre for 2019/20 is
$250,000, which represents a decrease of $61,000
from the original budget in 2018/19. This decrease is
mainly due t o the allocation of bona fide administrative
expenditure to cost centre 73000. The proposed
budget will serve to cover the costs of any Bye -
Elections that may occur over the next fiscal period.

Municipality Elections —73015

Sen. the Hon. Kathy Lynn Simmons: Mr. Chairman,
with regard to Municipality Elections, cost centre
73015, a proposed budget allocation for that cost centre of $76,000 has been allocated to this cost centre
for municipal elections. This will cover the next ordinary municipal electi on scheduled for May 2019,
which will see elections for the Corporation of St.
George’s and Corporation of Hamilton.

Electoral Reform Research —73017

Sen. the Hon. Kathy Lynn Simmons: Mr. Chairman,
with regard to Electoral Reform Research, cost centre 73017, a proposed budget allocation of $263,000 to this cost centre is for electoral reform research and
development.
The current global trend of mature democr acies stands on some form of political finance regul ations and regulated environments. It is neces sary to
ensure the effective management of money in politics
and is important to maintain the integrity of the dem ocratic process. The Parliamentary Registry will conti nue to press forward with research and deliberation with the government on this topic. T he funds will be
used for legal advice, research and any overseas
training required.

Subjective Analysis of Current Account Estimates

Sen. the Hon. Kathy Lynn Simmons: Mr. Chairman,
I would like to turn your attention to page B -21, subjective analysis of current account estimates.
Under that cost centre we see the salaries i ncrease of $8,000. The estimate for 2019/20 is
$515,000, as I said, an increase of $8,000, or 2 per
cent increase over 2018/19.
With regard to Advertising and Promotion,
which is a decrease of $33,000, and I will give details.
The advertising and promotion budget is $280,000 in 2019/20, which represents a decrease of $33,000, or a 11 per cent decrease over 2018/19. The aim of the
advertising and promotion requires the use of a vari ety of media outlets and out -of-home advertising veh icles to ensure coverage of all demographics of the electorate.
Professional Services, that budget is
$261,000 in 2019/20, which represents a decrease of
$7,000, or 3 per cent over 2018/19. These services
include independent legal advice, field registration
officers and internal software maintenance of the electronic registration system known as the PRO+. Addi-tionally, the office is working on improving the online
registration process in an effort to make i t more eff icient and secure.
The Materials and Supplies budget is
$126,000 in 2019/20, which represent a decrease of
$3,000, or a 2 per cent decrease over 2018/19. This
line item consists of expenses associated with office
and election supplies including a ll stationary items,
repair and replacement of any broken polling booths or ballot boxes, uniforms and badges for election officers and agents.
The Other Expenses budget is $20,000 in
2019/20, which represents a decrease of $1,000, or a
5 per cent over 2018/19 figure. This line item consists
of expenses associated with training and development
of staff, team building, and other administrative expenses that arise from the day -to-day operations of
the Parliamentary Registry.

Revenue

Sen. the Hon. Kathy Lyn n Simmons: Mr. Chairman,
revenue is generated from the issuing of Apostilles.
Total revenues for the 2019/20 fiscal year are est imated at $350,000, an increase of $75,000, or 27 per
cent over the approved budget 2018/19. The Parli amentary Registrar’s Offic e continues to provide
prompt and timely issuance of apostille certificates to our international and private sector clients.
And I will now draw your attention to the performing measures on page B -22, which are worthy of
note. If you look closely, you wi ll see that with regard
to the number of new voter registration forms pr ocessed they are looking to have a target outcome that is increased with regard to Form 1, new registrations.
That figure is anticipated to go to 500, and Form 2 to
250. The Registry w ill continue to review legislation,
we see that category, with the view to strengthen and
modernise the legislation to accommodate technological advances and efficient administrative processes. And Senators can read these performance measures
accordingly.
So, Mr. Chairman, in closing, I would like to
thank the staff of the Parliamentary Registry for their commitment and dedication to their duties over the
past fiscal year.

366 22 March 2019 Official Hansard Report

Bermuda Senate The Chairman: Thank you, very much, Madam Attorney General for your presentation.
Would any Senator wish to speak to these
heads?
Senator Kempe, you have the floor.

Sen. Nicholas Kempe: Thank you, Mr. Chairman.
Thank you, Madam Attorney General for your
presentation. I still have a couple of questions,
though, as it relates to the Parliamentary Registrar.
The first one relates to the relation between
the salaries line and the full -time equivalents of employees. We see that both the revised . . . sorry, for
those following along, it is on page B -21.
The revised 2018/19 estimate sho ws a spend
of $405,000 for six full -time equivalent employee
members. And the 2019/20 estimate shows the exact
same number of staff, however, a $110,000 increase
in salary spend. If you could provide some clarity on
that figure it would be appreciated.
I would also like to know what is driving the
increase of $40,000 in the travel spend between the
2017/18 actuals and the 2018/19 both revised budget
and estimate for the upcoming fiscal year. I am hoping
this is an errata, Mr. Chairman, but if we look fart her
down the page under the Revenue Summary, at line
8440, Apostille Fees, we have a revised estimate of zero dollars, however, $275,000 was budgeted, and
for the next year we are budgeting an increase on this
year’s original budget of another $75,000. So, this
zero dollar apostille fee, I would just like to understand
how that came to be, and how it is included in the
book.
I also have a question about the election r eform research, which is detailed on page B -20 under
the general summary. It is line 7301 1 [sic]. We had
over this year and the upcoming year, about half a million dollars in spend. And I know this is an initiative
that goes back to—

POINT OF CLARIFICATION

Sen. the Hon. Kathy Lynn Simmons: Point of clarif ication.

Sen. Nicholas Kempe: Yes.

Sen. the Hon. Kathy Lynn Simmons: I am sorry, I
don’t see —

Thank you, very much. Continue.

Sen. Nicholas Kempe: So, we have a revised est imate of $273,000 and an estimate for the upcoming year of $263,000. So, more than half a million dollars
right there. However, this is an initiative that goes
back to I believe the 2014/15 budget. The name of the
line item changed, but if I am looking at the perfor-mance measures on page B -23, it appears to be the
exact same initiative, which generally revolves around
absentee voting.
My understanding was that there had been
conclusions relating to absentee voting and the ge neral premise of it was that you cannot have both s ecure and anonymous digital solutions to absentee voting because you need to verify that the person on the
other end of the vote is someone eligible to vote. And
without having fixed term elections, the Parliamentary
Registrar felt that the timeline to send out postal ba llots for the absentee voting was too short to impl ement. But I would just like to know what changed from
that conclusion from two years ago to justify an additional half a million dollars, or more, in spend furthering that conversation. Is there something else about
fixed term elections that we are unaware of? Could the Attorney General enlighten us on that?
Thank you, Mr. Chairman.

Thank you, Senator Kempe.
Would any other Senator wish to speak on
this head?
If not, then Senator , Madam Attorney General,
you can answer those questions please. Thank you.

Sen. the Hon. Kathy Lynn Simmons: Thank you,
Mr. Chairman.
Unfortunately, the representative for this head
is not here to answer those questions. And so what I
can do ––the comptr oller was [planning] to come and I
think we are a bit ahead of time––and so I will take it
under advisement and come back, hopefully, today.

Thank you, very much, Senators, for
all of your attention this afternoon.
Senate resumed at 4:50 pm
[
Sen. the Hon. Joan E. Dillas -Wright, President, pr esiding]
The President: Good afternoon, Senators, we are
now back in the Senate, having had a healthy debate on the department heads.
We will now move on to the business at
hand, which is, continuation of the Orders of the Day.
The second order is the second reading and
resumption of the Municipalities Reform Act 2019.
Sen. Crystal Caesar: It is my Bill.
The President: You can take the second reading?
BILL
SECOND READING
MUNICIPALITIES REFORM ACT 2019
[
Continuation thereof]
Sen. Crystal Caesar: Madam President, I move that
the Bill entitled the Municipalities Reform Act 2019 be
now read for a second time.
The President: Is there any objection to that motion? No objection.
Senators, I do believe that every Senator has
spoken on this Bill, and it was just left to me to make
my contribution.
In the Senate on Wednesday, we deliberated
on what was and is a weighty subject, namely, the modernisation of the municipalities in today’s Berm uda, implying that Bermuda today is different from the Bermuda of yesterday. I listened very carefully to each and every one of you and to all of the views and se ntiments of each and every Senator here.
The idea of setting a platform for the growth
and development of the municipalities in Hamilton and
St. George’s as centres of commerce, tourism, with a
culturally vibrant milieu, and a thriving community is laudable. Also the idea, or notion, that what obtained for Bermuda years ago for the respective municipal ities of Hamilton and St. George’s no longer applies today; certainly not in a modern Bermuda. But what,
we may ask, is the hallmark of a modern Bermuda?
And how is that to be measured?
What we are given to believe is that a modern
Bermuda will be marked by more tourists, a culturally vibrant milieu, more economic activity and a spirit of
vivaciousness by the citizens, you and I, and all those
listening. Of course, more tourists, increased econom-ic activity and a spirit of vivaciousness is not neces-sarily translating into a better and more decent Ber-muda which, presumably, is to be built upon and around a 21
st century technological apparatus characteristic of a smart city.
The fact that key personnel, such as the representatives of the municipalities have been able to impress upon Government that St. George’s should have its own Municipality Act, apart from Hamilton, speaks to this fact. I just want to share that I was sent
an email that was sent to the St. Georgian individuals,
the residents and various others, and it was sent to
me. And when I read it, I thought to myself, Wait a minute now, and I had already looked at Bernews
and, if I may, I would like to read what this said.
The title is “Stand- alone Legislation for St.
George’s .” And it says, “Government will develop
‘stand- alone legislation for St. George’s’” And this was
attributed to the Minister, Walter Roban.
ANNOUNCEMENT BY THE PRESIDENT
SENATE VISITOR
The President: I am sorry, Minister, I should have
acknowledged that you, the Deputy Premier, are in
the Gallery and is listening. I want to welcome you, sir.
I do apologise.
[
Municipalities Reform Act 2019, second reading co ntinuing]
368 22 March 2019 Official Hansard Report

Bermuda Senate The President: And a spokesperson on his behalf
said, “Home Affairs Minister Walter Roban on Friday
reconfirmed his pledge that the Government would
develop stand- alone legislation for St. Georges that
recognises the unique qualities and heritage of the
Old Town.”
Minister Roban went on to say, “MPs Renee
Ming and Kim Swan made a solid case on behalf of the people they represent and serve, and we listened.
Their call on the floor of Parliament for a model featuring the direct election of the Mayor and three Counci llors while advocating for greater financial attention to
support infrastructure, tourism marketing support for
St. George’s and the preservation and enhancement
of the World Heritage Status, is one that working t ogether, we will pursue.”
So, I was struck by that, because the fact that
key personnel, such as the representatives of the m unicipality, have been able to impress upon Gover nment that the town should, by having its own Munic ipality Act apart from Hamilton, speaks specifically to this fact. I have just read the article for you.
Indeed, this fact also underscores that both
municipalities cannot be conceptualised in the same
way regarding the development of a smart city. I ndeed, what St. George’s has, Hamilton does not. I
think we all agree with that. Yet, each complements
the other. The acquiescence of the Government to the
request of St. George’s MPs on behalf of the residents
for their own Municipality Act, separate and apart from
Hamilton, in which they would elect their own mayor
and at least three of the councillors, as opposed to the
appointment by the Minister is a recognition of this
fact. But if it is the case that the Government has been
giving thought to reforming the municipalities, yet the
Government has acquiesced to St. George’s request,
then it means that the process in modernising the m unicipalities is emboldened, and that it will require add itional time before the process can be brought to a satisfactory conclusion.
What has been promised to St. George’s,
while in the public domain, is not reflected in this Bill
that is before us today. Indeed, the Bill before the Senate entitled “The Municipalities Reform Act 2019”
speaks to both the Hamilton and St. George’s munic ipalities. It seems to me, then, that because the effort
to modernise the municipalities is a process, more
time will need to be expended to formulate the right fit
for Bermuda’s two municipalities. Consequently, at
this point I will support any movement for more
thought to be given to this objective. If it is another
year wai ting or if an amendment is made it will not be
too long to get the right fit regarding the modernisation
of Bermuda’s municipalities. I am not saying it is not
needed; I am saying that I have an issue right now.
However, the Government is to be commended for wanting to inject new life into the municipalities.
But in doing so, it needs to take the people along
democratically which, in consequence, will take some time. Otherwise it will experience backlashes, as is
presently the case, that in the long run wil l evade its
ultimate objective.
Therefore, Senators, I cannot support this Bill.
I think it goes without saying that Hamilton is
the focus for the smart city, because it is the economic
seat of Government and its physical location has the
hallmark for suc h development. My reading of smart
cities is that they are built around technology, perfec ting commerce, business, transport, infrastructure,
health care, city living. Smart city development r equires a shift in thinking, and is aimed, if you will, at
the y oung population. And I would not say that it is
entirely, because I know I am at an age now, but there
are people who need additional help when it comes to
working with technology.
And I can tell you that I have been to Sing apore . . . I have been to several places where a smart
city exists. And there are ads all around, and you can
pick up your phone and . . . it’s fantastic.
And I also think of Bermuda as . . . sometimes
[while] growing up we could go somewhere where we
could hear music. You know, we hav e been talking
about how dead Bermuda is. And I think that one of
the Senators has said that after hours there is not very
much [going on]. So we do need a vibrant city, we do
need change.
However, back to this, most, if not all Berm udians believe that . . . sorry, I left out a paragraph
here.
Arguably the people in the cities of St.
George’s and Hamilton are linked by a common democratic bond and share in what is now a cultural trait
that taxation without representation is contrary, both to
the culture and to the ethics of democracy. That is
simply to say that most, if not all, Bermudians strongly
believe in this principle grounded in the fight of our forefathers. Yet, this cultural norm has not been r eflected in this Bill, and has not been reflected in an y
attempt to get the community’s feelings about the Government’s plan for those two municipalities.
If there was a community, or, more specifically, the residents of both Hamilton and St. George’s, specifically the residents and the country as a whole,
they have not even been told about the survey results.
It has been reported here by one Senator, and we
were told it was a 90 per cent against, and probably
4 per cent or more for. So, if you want the people to
be supportive, they must be given all of the info rmation.
Government plans to modernise the munic ipalities, then. But what does that mean when St. George’s has a World Heritage Site that is culturally
different? (I think I am repeating, and I am reinforcing
my point.) The question is asked, because in recognition of this fact the two MPs from the old town have argued, and they argued really well for St. George’s having its own municipality, and they did make a very
strong case. And we also know, as I have indicated, it


Bermuda Senate was accepted by the Minister, it has been shared with
the public through Bernews , and the idea of each m unicipality being brought together as a quango no longer obtains, if this is what is in the public domain.
If, like any other Bill, the Municipalities [R eform] Bill is to be considered as a statement of intent,
then the concessions made to St. George’s MPs r egarding the municipality of St. Georges clearly ind icates that this Bill, the Municipalities Reform Act 2019 needs to be revised. That is my view. People do not
have to agree with m e, but that is my view.
The revision is all the more necessary because St. George’s and Hamilton constitute the m unicipalities each of which were to be administered by
a quango, that is what is reflected in the Bill, and that the Minister would appoint the mayor of each and at
least four councillors. Now it appears that with St.
George’s to be given its own Act and the ability of the
residents to elect their own mayor and three of its
councillors, then the clauses in this Bill apply specif ically to Hamilto n. The premise for the formulation of a
quango to administer each of St. George’s and Hami lton, in my estimation, has now changed. And, as
such, a new premise will now need to be formulated
for the administration of Hamilton. Until that is done, I
am not i n a position to support the Bill that is before us
today.
Those are my comments, Senators.
Senator Caesar.

Sen. Crystal Caesar: Thank you, Madam President.
It looks like it is just you and I to speak today,
as all the other Senators have had an opportunity to
weigh in on this debate.
I had originally intended to begin with another
statement, but, if I could, I need to clarify some information that I believe Senators may not understand. As
we know, oftentimes news media quotes a Minister.
And there is the [possibility] to misquote a Minister.
And at this juncture I have to point out that Bernews
actually has misquoted the Minister, as that was spoken of specifically, indicating that St. George’s would
be given its own municipality Act and that they wou ld
be able to elect the mayor and councillors. That is actually incorrect; the Minister and I have spoken in this
regard, and he is aware of the article in Bernews, and
this it is actually not the case.
The Minister has undertaken to give St.
George’s a s tand- alone municipalities Act, but it does
not mean that elections will be a part of that. So I
need to make that clear to all at the table.
So, I believe we have made a decision based
on hearing that somehow St. George’s will now be
given a stand- alone A ct and they will be electing their
councillors and mayor. That actually is not factual. So
the decision- making around maybe how one has
come to their decision may need to be revised.
We have had 96 years of the municipalities in
Bermuda, both in the Corporation of Hamilton and in St. George’s. Growing up I had someone quite wisely
say, and I am sure we have all heard it, What is the
definition of “insanity”? Insanity is doing the same
things the same way and expecting a different result.
We all agree that the municipalities need attention,
upgrading, upkeep in some form or fashion to keep
trend, not just with Bermuda, but with the world. E xamples cited are, specifically in Hamilton, that the
dock is in really bad shape. We know that cruise ships
are becoming more technologically savvy, a lot of
them are newer, the older models are being replaced. And our current dock in Hamilton is unable to allow
them to berth sufficiently.
We have heard not just in the past, but most
recently just last week that the residents of North Hamilton, and businesses for that matter, have felt
largely overlooked in support of their upkeep, maint enance and attention. Something as simple as trash
pickup, where . . . if one were to go one or two blocks,
Front Street trash cans are em pty; North Hamilton’s
are full.
We have also heard that the fire hydrants actually belonged to the government and that is why they have not been updated or maintained. If I could
re-read what the Bermuda Fire and Rescue Service
Act 1982, section 19, actu ally says, with your permi ssion, Madam President —
The President: Indeed, you may.

Sen. Crystal Caesar: “On 1 April 1983 any engine,
equipment, vehicle and other movable property”
(moveable property) “and assets belonging to the
Corporation of Hamilton and used by that Corporation
in connexion [sic] with its fire services shall be transferred to, and shall vest in, the Government.”
I am not quite sure, but I do not believe that
the fire hydrants move, nor do the underlying infr astructure move, so one may deduce who the fire h ydrants belong to. And an example has been given that
some years ago that they were not working, they have
not been maintained, and, unfortunately, that led to
the demise of one of our Front Street buildings.
In addition, it has been acknowledged by the
Corporation of Hamilton that they have an ageing sewer system which pumps raw sewag e into our
ocean. Are they screened? Yes. But the water is not
treated. Hamilton has a plan to update that pumping
system. Updating does not actually include a more
sustainable and environmentally sensitive water
treatment process. And, therefore, it might be more
efficient, but this water will still be untreated, and I,
personally, think it is quite egregious in this more ecofriendly world in which we live that such an undertaking would even be considered. Who knows? We may
be violating some sort of inter national ecological best
practice.
Now I turn to St. George’s and some of the
examples that have been cited in terms of why St.
370 22 March 2019 Official Hansard Report

Bermuda Senate George’s needs attention. We have all been there. It
is an ageing city. It is a fact; the city is ageing. Ther efore, the infras tructure is ageing. I spoke previously on
the financial stability, the resources, both monetarily
and through experience, at the Corporation of St.
George. We had the auditors of KPMG give a qual ified audit because of the lack of financial stability in
the Town of St. George.
In addition, we have heard much about the
new marina which is planned for St. George’s. What
one may not actually know is that the Municipalities Act does not allow for the newly envisioned marina to
actually go forward. So remaining the same means no
marina.
Government’s vision is to see our municipal ities become smart cities. And our learned Madam President has given us a definition of smart cities, but
I would like to expand, as well, as to what a smart city
is, because I hear it. We do not live in one, so I do not
know what it is exactly. So I had to look it up. A smart
city . . . the aim is to promote cities that provide core
infrastructure and give a decent quality of life, which
means social services, which the Corporation of H amilton does not yet do. It is left to government to do. It
includes access to water, electricity, a clean and sustainable environment —a clean and sustainable env ironment through the use of technology information
and data. It enhances the quality and performance of
services, such as, energy, transportation and utilities.
Redundancies save money and streamline respons ibilities. It reduces resource consumption, wastage and
overall costs. And I could go on and on, but I think we
get the idea.
The argument has been made that we should
look to countries like New Zealand or Australia. And I
ask why? Their populations are 4.8 million and 24.6
million people. Why are we comparing ourselves to
countries with dissimilar demographics and size? Pr eviously I spoke of Cay man, Barbados, and the Bahamas. Cayman’s population is very similar to ours,
61,559 people; [Barbados], more, but similar demographics nonetheless, 285,719; The Bahamas,
395,361. So why are we comparing ourselves to
popu lations that actually do not reflect the same demographics and size, one would ask?
It has been suggested that municipalities have
a great working relationship with the government, and
I beg to differ. I remind colleagues of the quite ten uous relationship to date that the corporations have
had with government, and quite litigious. For instance,
there have been at least four writs served by the corporation in relation to labour issues recently, right up to 2017/18. Three of these writs questioned the authority of the permanent arbitration tri bunal because
the corporation did not want to appear in front of the
tribunal to resolve labour issues. I don’t know about anyone else, Madam President, but that does not
seem cooperative to me. In addition, it has been cited that there are at
least six ot her cases between 2013 and 2015 in which
the corporation has brought an action against som eone or the government. In addition, in 2015, the former Senator the Honourable Michael Fahy, had to take action to direct the Corporation of Hamilton due
to actions that he deemed to be untenable by the
Corporation. That is not a good relationship—quite
litigious right up to just a year ago.
Much has been said about the abolition of
elections. But I ask Members to think about why the municipalities were set up from the very beginning.
The Municipalities Act of 1923 indicated that a muni cipal freeholder —and that definition is a person who
owns a freehold estate valued at more than a certain amount —could vote. Now, let’s think back to 1923.
Was that one man, one vote? Who was protected by
that Act, and why do we continue to want to hold on to
that? I find it alarming that we cannot take ourselves
out of what we are used to and think more progressively. Let’s come into the 21
st century.
It was a PLP Government in 2010 that enac ted the Municipal Reform Act to make the process more democratic. And what did that PLP Government
do? It allowed the residents of those municipalities [to
vote] —not people who owned businesses, the res idents, those who were most affected by what ha ppened in those municipalities. Not to say that owners
could not be [affected] as well, but up to that date [the
residents] had not had a say in how the area in which
they lived was maintained, upgraded and kept up.
Turn around in 2013, what happened? Bus inesses were then allowed to vote again. So, again,
conceivably, let’s think about it. A business owner
lives in Warwick. They vote in the general election, so
they have one vote. They own a business in Hamilton.
That municipality has an election; they vote again.
And they have a branch of that store in St. George’s.
That business owner votes again.
Now, at one point, it depended on how many
businesses you owned. It could have been 1, it could
have been 10, and you were able to vote based on
the number of bus inesses you had. Is that fair? I ask
Senators to think about that. That is how municipal ities were set up originally. Is that what we want to
continue? We heard in the Senate previously that we
are eroding democracy. But I say no. I say we are actually mov ing it closer to what democracy is supposed
to be —one man, one vote.
And what about the larger democracies?
Bermuda, all of us, all 60[,000] plus residents of us . . .
should we not all want the collective success of not
just the Corporations of Hamilton and St. George’s,
but of Bermuda as a whole? Why should we allow one
man or woman to vote in a general election then again
in one municipality and then another, and another?
That bothers me. It is not one man, one vote. It is not democracy. And most recently, if the corporation has
its way, the democracy that we know today will be no


Bermuda Senate more. It will harken back to 1923. And we all know
that this is harkening back to a despicable vestige of
slavery from almost 100 years ago. That means res idents will no longer be able to vote, only business owners. And why? Why should they be given the priv ilege?
Have we really not evolved as a society that
we cannot see the problem in this? It is a sorry day in Bermuda when we want to protect white slave ow ners, or former sl ave owners’ business assets. That is
shameful. And I certainly hope that this is not what we are going to do today. And what about the ability to
meet the needs of a country to show off our gems? St.
George’s was our original capital, our founding capital.
We want to show it off in pristine condition. They do
not have the money. They do not have the resources
to do that. Why would we not allow economies of
scale to assist?
And one thing that I wanted to point out that I
did miss is that the sewage system i n St. George’s is
actually not being planned by them, it is being planned by the government. What does that tell you? They do
not have the ability to do it. We have the economies of
scale . The government has the economies of scale to
assist to make this happen , and the capital, Hamilton,
again, where a growing number of visitors have begun to return to our shores . . . why would we not want that
place to be a smart city to have all the amenities to be
. . . why would I direct some of my Airbnb tourists
there? I tell them to stay in Somerset. There is not
much going on in Hamilton after a certain hour. Tour-ism is our second pillar of the economy, so we need to
make sure that the entire Island is taken care of. We cannot allow 700 people to determine the futur e of this
Island. Someone would come and say, Oh, it is a
beautiful island I have come to. But, Hamilton? I can’t
even get a Wi -Fi signal. I can’t find out what’s going
on in that country.
I ask Senators, remaining the same will do
what for us, exactly? D on’t we want to see change?
Don’t we want to see this country grow and excel t ogether? Shall we not be brave and do something di fferent for a change?
So, I am going to finish with a quote that I was
originally going to start with, and that is, What is the
definition of “insanity”? Doing the same thing the same way and expecting a different result.
Madam President, with that said, I move that
the Bill entitled the Municipalities Reform Act 2019 be now read a second time.

The President: Yes, it has been moved that the [M unicipalities] Reform Act 2019 be now read a second
time.

ANNOUNCEMENT BY THE PRESIDENT

SENATE VISITORS
The President: I was hesitating because I want to
acknowledge the presence of the Premier of Berm uda, and also many of his Cabinet who are here in the
Gallery.
I also wanted to acknowledge the presence of
the Permanent Secretary, Ms. Rozy Azhar, and the
Parliamentary Counsel. I wanted to acknowledge that
they are all here. Thank you, for your presence.

[Municipalities Refor m Act 2019, second reading co ntinuing]

The President: Any objections to the second reading?
An Hon. Senator: Yes, we object.
We would like to call a division as well.
The President: You need more than one . . . so all
three of you are objecting?

Anot her Hon. Senator: I object to the Bill.

The President: The Clerk will take a division.

DIVISION
[Municipalities Reform Act 2019, Second Reading]

Ayes: 5 Noes: 6
Sen. the Hon. K. L. Simmons Sen. Nicholas Kempe
Sen. Anthony Richardson Sen. Marcus Jones
Sen. Jason Hayward Sen. Dwayne Robinson
Sen. Crystal Caesar Sen. Michelle Simmons
Sen. Vance Campbell Sen. James S. Jardine
Sen. the Hon. J. E. Dillas -Wright

The President: The division is six to five, the motion
is defeated.

[Motion defeated: Second Reading of the Municipal ities Reform Act 2019 was defeated by majority on
division.]

The President: Thank you, Senators.
We will move on to the third item on our O rders of the Day, and that is the second reading of the
Land Tax Amendment Act 2019, Governor’s recommendation signified.
Whose Bill is that?
Senator Campbell, you have the floor.

BILL

SECOND READING

LAND TAX AMENDMENT ACT 2019

Sen. Vance Campbell: Thank you, Madam President.
I move that the Bill entitled Land Tax Amendment Act 2019 be now read the second time
372 22 March 2019 Official Hansard Report

Bermuda Senate The President: Is there any objection to that motion?
No objection.
Carry on Senator Campbell.

Sen. Vance Campbell: Thank you, Madam President.
The Bill now before the House is the Land Tax
Amendment Act 2019 . This Bill provides for revised
land tax rates for various annual rental value (ARV)
bands.
Madam President, land tax is charged under
the authority of the Land Valuation and Tax Act 1967 and the Land Tax Act 1967. It is assessed on the annual rental value of each valuation unit depending on
whether the unit is a private dwelling or a commercial
property.
The Tax Commissioner’s land tax officer calculates the amount of land tax charged on all valu ation units and demands notes are issued to taxpayers
half-yearly. The amount of tax is determined by mult iplying the ARV by the appropriate tax rates. Annual rental values are established every five years and are
updated periodically to reflect improvements to property. The owner of each valuation unit is liable for tax.
Madam President, private dwelling units are
taxed on an extremely progressive scale of tax rates. There are seven annual rental value bands with a
minimum rate of 0.8 per cent and a maximum rate of
47 per cent. Bermudians who are 65 years or over,
who own and occupy a private dwelling are exempted from tax on the first $45,500 of the annual rental value. Commercial properties are currently taxed on the
single rate of tax at 12 per cent.
Madam President, the progressive rate structure for private dwellings is heavily skewed to higher
value properties, making the property tax highly sens itive to reassessments in value. To illustrate that the
tax structure is heavily skewed, the assessed value of
properties up to $44,000 ARV band accounts for
84 per cent of the tax base, but is only 18 per cent of
the tax revenue, while properties at the higher band with an ARV over $120,000 account for 1.6 per cent of
the properties, but provide for 43 percent of the taxes
collected.
Madam President, currently, the land tax bills
range from $28.80 per year to $228,720 per year, fur-ther illustrating the highly progressive nature of the
system.
Madam President, in their report presented to
the Government, the Tax Reform Commission rec-ommended that the land tax structure for residential
property should be amended by levying a flat rate of $500 for ARVs under $22,000. This procedure would
replace the bands under $22,000 with a $500 flat rate
which will provide for a more equitable distribution of
the land tax burden. The view of the Tax Reform
Commission [TRC] was that the existing rate structure
is not fairly weighted. It is clear from this proposal t hat
the TRC considered that the tax rates for the two lo west bands were too low. An important principle in any tax system is the ability to pay, and from this proposal
it appears that the TRC are of the view that persons
owning properties of $22,000 or les s could afford to
pay $500 per year, or $41.66 per month for their properties. The Tax Reform Commission expects that this proposal for a residential tax rate reform to yield
an increase in revenue of approximately $8 million
before seniors’ exemptions.
Madam President, Senators will recall that the
TRC also proposed a tax on residential rents which
would have yielded $26 million. During the prebudget
consultation process, the Ministry carefully considered
all land tax proposals and it was announced in the
2019/20 National Budget that Government would be
amending the land tax rate structure for residential
properties to generate additional revenue. The pr oposal is as follows: All properties with an ARV of $1 to
$22,000 will pay a flat rate of $300. All properties with
an ARV above $22,000 pay a flat rate of $300 plus the
[following] rates.
So, from $22,001 to $33,000 that rate would
be 3.5 per cent, which is what it currently is. So that
will not change. The next band, $33,001 to $44,000 at
6.5 per cent wi ll not change. So the only change will
be the flat rate of $300.
And then five, $44,001 to $90,000, the rate
would move from 12 per cent to 17 per cent. And then [band] six, Madam President, that is from $90,001 to
$120,000, the rate moves from 25 per cent to 30 per
cent. And above $120,000, Madam President, that
rate will move from 47 per cent to 50 per cent. Madam
President, this proposal will yield an additional $12.6
million in land tax revenue per annum.
A little more information about the impact of
this proposal, Madam President. In the first band the
average increase in tax per year is expected to be
$224. In the second band, the expected average i ncrease is expected to be $113. In bands three and
four the increase is $300, which is the flat base r ate.
In band five the average increase in tax per year is
expected to be $1,094. And in band six, $3,299. And
in the highest band, above $120,000, the average i ncrease in tax per year is expected to be $5,542.
Madam President, the maximum dollar exemption afforded to seniors under the new rate structure [which] will be effective July 1
st 2019, is $1,941
per annum.
Madam President, the reality is that to mai ntain government services at a reasonable level and to avoid financial failure, the Government needs to in-crease revenue. Madam President, the Ministry of
Finance is confident that this approach will provide the
government with additional revenue from land tax and
believes that the revised rate changes are both equitable and fair. The proposed amendments maintain
the progressive nature of land tax with those who own
the most expensive homes paying more land tax than
others. These points are clearly evident when one
examines the figures I have just provided.


Bermuda Senate Madam President, there may have been some
misunderstanding in the public relating to these new
land tax rates, and the Government would like to
apologise for any confusion around them.
With regard to commercial land tax, Senators
are aware that in the 2018/19 Budget Statement, as a temporary measur e, land tax rates on commercial
properties were increased by 5 per cent, raising an
additional $15 million in land tax revenues. This prov ision will expire on June 30, 2019, and the legislation
provides for the rates to revert back to 7 per cent. It is
now proposed to amend the land tax on commercial
properties from 7 per cent to 9.5 per cent, and the
land tax on tourist properties from 7 per cent to
8 per cent.
Madam President, with your permission, I
would like to read the definition of a tourist propert y as
contained in clause 2 of the Act.

ANNOUNCEMENT BY THE PRESIDENT

SENATE VISITOR

The President: Just before you do, I would just like to
acknowledge the presence of the Financial Secretary,
Mr. Anthony Manders. Welcome, sir.
Do carry on, Senator Campbell.

[Land Tax Amendment Act 2019, second reading continuing]

Sen. Vance Campbell: Thank you, Madam President.
Under clause 2 [new section 2](a) “‘tourist
unit’ means a valuation unit which is used as or forms
part of a hotel, cottage colony, guest house, lodging
house, club or tourist accommodation for reward, but
does not include a vacation rental unit as defined in
section 15A(1) of the Bermuda Tourism Authority Act
2013.”
Madam President, vacation rentals will be
taxed under the residential, or private, tax code under
the appropriate band.
Madam President, Government has always
maintained that everyone in Bermuda needs to do
their part in helping to pay off the deficit. Therefore,
the primary purpose of this Bill is to amend the land
tax rates t o ensure additional revenue to the Gover nment so that this Government can continue to do the
work the people elected us to do, which is to provide a
better and fairer Bermuda.
Before I close, Madam President, I do want to
go, with your permission, to [cla use] 4 of this amendment Act.
The President: Yes, continue, Senator Campbell.

Sen. Vance Campbell: [Clause] 4, indicates that after
section 2 of the principal Act insert section 2A, “In r espect of any valuation unit (other than a private dwel l-ing) which is situated in any of the economic empowerment zones designated under section 2A of the
Economic Development Act 1968, tax shall be
charged, levied and collected at the rate of 7% of the
annual rental value of the unit.”
This will remain the same; it is currently 7 per
cent, it will remain at 7 per cent, Madam President. I
just wanted to make that clear.

The President: Absolutely, I think it’s important that
you do. Thank you.

Sen. Vance Campbell: Madam President, in closing,
Senators are advised that the land tax valuation department is in the process of conducting the five- year
revaluation of land, which is due to go on deposit the
31st of December [sic] 2020 and come into effect on
January 1, 2021. During this process, the Ministry will
have to make further adjustments to rates to maintain
the level of land tax collected. Also during this time, the Ministry will look to transition the land tax structure
so that it is less susceptible to large changes in valua-tion.
With those introductory remarks, Madam
President, I conclude my presentation. Thank you.

The President: Thank you, Senator Campbell.
Would any Senator care to speak on this Bill?
Senator Kempe, you have the floor.

Sen. Nicholas Kempe: Thank you, Madam Pres ident.
So, I listened to the spokesperson for Finance
talk about how Bermudians may have been confused.
And I would like to talk a little bit about why that may
be.
If we look at the Bermuda Tax Reform Co mmission’s Report, yes, they did talk about a $500 flat fee on the first two ba nds. But, they spoke of that as a
replacement for everything in those first two thres holds. They did not prescribe adding $500 to band
three, band four and band five and basically everyone
that pays tax getting hit with an additional fee. What
they spoke about was replacing the percentage being
levied at the lowest level so as to cover processing
fees, which is a concept that the Finance Minister
spoke to at the budget breakfast.
What we were sold in the Budget Statement
was a proposed tax rate of 0.0 per cent, which is essentially what [clause] 3 [new section 2](a) gives us
here, and replaces with the $300 flat fee. But, what we are looking at on the amendment here is just that.
That we are getting hit with this base charge on top of
it. So, whilst we are talking about the progressive nature of land tax, someone who had a home paying at
an ARV of $11,000 for, they were paying $88 on their
land tax. Now, they are going to be charged $300, which is an increase of some 240 per cent. And I u nderstand we are st arting with low values so the per374 22 March 2019 Official Hansard Report

Bermuda Senate centages will be quite high. But, even if we get it up to
a kind of middle of the road assessment number,
where we are into band three, for example, a home
that has an ARV of between $22,000 and $33,000,
the land tax is goi ng to go from $671 to $971, which is
a 30 per cent increase. And that is right in the middle
bands of the ARV scale.
You look at band four, again, it is going to go
from a land tax of $1,386 to $1,686, which is an
18 per cent increase. So, trying to pass off this add itional charge as being thinking of the Tax Reform
Commission I think is somewhat misleading, Madam
President, because the Land Tax Reform Commission
only spoke about replacing the percentage calculation
on the lowest two bands for a flat fee so as to cover the collection and the basic contribution for trash collection and the other items that the Senator across
from me mentioned. But what they did not speak to
was adding an additional flat fee on top of bands that
were in the higher levels. It was a replacement value.
So, I would also like to query the calculations
that are put in here for the total yield for land tax slated to be at $85 million. Is the figure that is in the
Budget Book accurate? Or is it what is in the Land
Tax Amendment? It is somewhat misleading.
The President: Thank you, Senator Kempe.
Would any other Senator care to speak on
this Bill?
Senator Michelle Simmons, you have the
floor.
Sen. Michelle Simmons: Madam President, we seem
to have two different things which have b een presented. And I have tried to understand, but I am failing.
In the Budget Statement, the proposed tax
rates in bands where the ARV is between zero and
$11,000 and also $11,000 to $22,000 . . . the pr oposed tax rate is 0.0 per cent. In the Land Tax Amendment Act 2019, for those two bands respectiv ely, the rate of tax is given as 0.8 per cent and 1.8 per
cent, which are the old rates. But, I am confused b ecause I thought that those rates should be set at zero.
I thought that was the proposal.
I unders tand about the flat rate. But I just
need some clarification as to whether in the first band and the second band there are still respectively rates
of tax at 0.8 per cent and 1.8 per cent, because it is
totally different from what is in the Budget Statement.
And that is my only question.
Thank you.

The President: Thank you, Senator Michelle Si mmons.
Would any other Senator care to speak on
this Bill?
Senator Jardine, you have the floor.
Sen. James S. Jardine: Thank you, Madam Pres ident.
I, too, share exactly the same views as Sen ator Simmons. I was totally confused when I read this,
because when we received our Budget Statement there was a Schedule in there which I thought made it
quite clear that for ARV bands one and two the pr oposed tax rate was zer o. And that each person falling
within any of those bands paid $300 once. When I see this, I see $300 plus 0.8 per cent, which is where I get
confused.
Perhaps I could receive some clarity on that,
for those first two levels, one and two. I do not have
an issue with the remaining levels, I understand there
is a payment of $300 once, and then you pay the sli ding scale as you go up. But I was confused on levels
one and two, where I thought that they paid $300 only, and nothing else, [which I understood] when I looked
at the Budget Statement book for 2020. So perhaps I
could get some clarification of that.
Thank you, very much, Madam President.
The President: Thank you, Senator Jardine.
Would any other Senator care to speak on
this Bill?
No? Then Senator Campbell, you have a few
questions to answer. And as you are conversing with
the Financial Secretary, we will give you a few m oments.

[Pause]

Sen. Vance Campbell: Madam President, I am just
getting clarification.
The President: Yes, I have already informed the
Senators. We understand that you are conversing with
the Financial Secretary to get the answers to the
questions that have been posed. So we will give you the time you need.

[Pause]

The President: We are still waiting fo r Senator
Campbell to get his responses to the questions, which
are quite important.

[Pause]

The President: All right, Senator Campbell.
[Inaudible interjection]

The President: No, that’s fine. It is important for the
Senators to get their answers to the questions. So you
have the floor.
And thank you, Financial Secretary, for . . .

[Pause]


Bermuda Senate The President: For the listening audience, we are still
getting our questions answered.

[Pause]
The President: All right, Senator Campbell.

Sen. Vance Campbel l: Madam President, I will start
with some of the other questions, because we are still
working on clarification.

The President: Carry on.

Sen. Vance Campbell: The first thing I want to stress
is the Report of the Tax Reform Commission. The r esults, the points that they have in there are recommendations.
The Government did not have to go hard and
fast with everything that they recommended. And in
some cases, the Government has gone with a vari ation of what they have recommended. That is the first
thing. They were only recommendations.

Sen. Nicholas Kempe: Point of clarification.
The President: Point of clarification, Senator Cam pbell. (He has to respond.)
Sen. Vance Campbell: I will accept.

The President: All right, carry on Senator Kempe.

POINT OF CLARIFICATION

Sen. Nicholas Kempe: When the Senator says a
“variation,” can he please confirm whether the vari ation is more or less than the Tax Reform Commi ssion’s report?
Sen. Vance Campbell: Madam President, I provided
an example in my brief where I s aid the Tax Reform
Commission recommended a flat rate, a base rate of
$500. And the Government has chosen to go with $300. That is an example of what I am talking about.

The President: Thank you, Senator Campbell.
Carry on.

Sen. Nicholas Kempe: Point of order, Madam Pres ident.

The President: What is your point of order?

POINT OF ORDER
[Misleading]
Sen. Nicholas Kempe: The Senator may be ina dvertently misleading the Senate. For homes over
$22,000 the effective flat rate is now $586, as op-posed to $500. So it is actually higher than what was
in the Tax Reform Commission’s report.

The President: Thank you.

[Pause]

Sen. Vance Campbell: To one of the other questions,
I believe what we have to remember is there are two
parts to this Bill. T here is the residential and then
there is the commercial. In the instance of the reside ntial, some of the bands have increased. And in i nstances of commercial we have to remember they
have come down from 12 per cent. So what we have
in that $85 million [wh ich] I believe Senator Kempe
was concerned about, that is the net effect of moving the residential bands up and the commercial bands down from 12 per cent to 9.5 per cent, and 8 per cent
as far as the tourist accommodations.

The President: Thank you, Senator Campbell, for
that explanation.
Carry on.

Sen. Vance Campbell: We are still waiting . . . we are
trying to get on the same page in regard to this last
matter, Madam President. So if you could give me a
few more minutes. Thank you.

The President: Carry on.
[Pause]

The President: We are still waiting for answers to the
questions. And we will give the Financial Secretary
time to give his explanation (for the listening aud ience). We are still waiting for information.
Senator Campbell.

Sen. Vance Camp bell: Madam President, I apologise
for that. I am being advised by the technical people
that in spite of our interpretation of what we see here,
the maximum tax in bands one and two will be $300.
The tax for bands three to seven will be the
base rate of $300 plus the applicable tax rate in that band. I am not sure if that clarifies the confusion that
Senators have expressed.

The President: There are three Senators who want to
respond. So, Senator Jardine.
Sen. James S. Jardine: Madam President, I think
what I was trying to get at, and correct me if I am
wrong, is that in the Budget Statement it said levels
one and two were going to be 0.0 per cent, and that is
now 0.8 per cent and 1.8 per cent [respectively].

The President: Senator Campbell, did you hear the—

376 22 March 2019 Official Hansard Report

Bermuda Senate Sen. Vance Campbell: No, I didn’t, Madam Pres ident, I was —

The President: Senator Jardine, would you repeat?
Sen. James S. Jardine: Thank you, Madam Pres ident. I see Anthony shaking his head on the other side, so, pr esumably, I got that wrong.
The President: Senator Richardson.
Sen. James. S. Jardine: But, what I am saying is that
in the Budget Statement it showed the bottom two levels, one and two . . . the rate of tax was going to be
zero and zero, and are you now saying that is not zero
and zero but 0.8 per cent and 1.8 per cent?
Sen. Vance Campbell: That is what we are trying to
get clarified.
Sen. James S. Jardine: Ah. Okay.

The President: Senator Kempe, do you want clarif ication?

Sen. Nicholas Kempe: Yes.
Could Senator Campbell please advise what
the tax bill for a home valued under the ARV banding
of $22,001 . . . what it was prior to this tax amendment
and what it will be after it passes?
Sen. Vance Campbell: Madam President, I did explain that. I do not have the exact dollar value, but the
bill prior to this, the . . . sorry, you said band three?

Sen. Nicholas Kempe: A home valued $22,001. I
have it being $586 and change, versus $286 and change prior to this Bill. The Tax Reform Commission
recommended that it be $500. My point is that this Bill
actually makes it more onerous than what the Tax Reform Commission was proposing. So any allegations that they have eased off of what the Tax Reform
Commission [proposed] is misleading for all homes over $22,000.

The President: We are awaiting a response from the
Financial Secretary.
Senator Campbell, you are smiling.
Sen. Vance Campbell: I am smiling. I am.
The President: You have the floor.

Sen. Vance Campbell: The lightbulb has gone off,
Madam President. When we calculate the land tax, we
still have to account for tax in each band even though you may be in, say, band five. You still have to calc ulate an amount in band one, band two and three, and band four and then band five. So, that is why we still have to have the 0.8 per cent and the 1.8 per cent in
the bands one and two.
But for someone whose home only falls in
band one, their tax will be $300. For someone whose
home falls in the next band, band two, their tax will be
the same.

Sen. Nicholas Kempe: Point of clarification.

The President: Senator Kempe.

POINT OF CLARIFICATION

Sen. Nicholas Kempe: Will the Senator concede that
both the Tax Commission Report and the Budget
Statement did not suggest that cal culation format?

The President: Senator Campbell.

Sen. Vance Campbell: No. I think . . . No, I will not
concede that, Madam President. I think it is a misunderstanding or a lack of understanding in how the land tax amount is calculated. And that is where the conf usion is. And I am guilty of that myself in basically . . .
this is something I should know.

The President: Thank you, Senator Campbell.
Carry on.
Sen. Vance Campbell: I should know. But I think that
is where the confusion is, that our mind thinks, My
land is $33,001 so I go straight to that band and just
think 6.5 per cent plus three. But we have to calculate
the incremental amounts in each band until we get to
the value —

Sen. Nicholas Kempe: Point of order, Madam Pres ident.
The Senator may be inadvertently . . . I abs olutely calculated each $11,000 at its respective rate
and added them up. Progressive payroll tax, progressive land tax are all added up the same way. So that is not a confusion on my part, the numbers are the
numbers.
The President: Senator Campbell, carry on. That was
not a point of order.
Sen. Vance Campbell: Madam President, I think I
have explained what the confusion was. I see now it is
from some of the other Senators who had that same confusion where it is now clarif ied so, with that, I think
that is the last question that I had, or point that was
unclear for the Senators.
The President: So you will do the second reading.
Sen. Vance Campbell: I will do the second reading.



Bermuda Senate The President: Thank you.

Sen. Vance Campb ell: Madam President, I move that
the Bill entitled the Land Tax Amendment Act 2019 be
now read a second time.

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

[Motion carried: The Land Tax Amendment Act 2019
was given a second reading.]

SUSPENSION OF STANDING ORDER 26

Sen. Vance Campbell: Madam President, I move that
Standing Order 26 be suspended in respect of this
Bill.

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

[Motion carried: Standing Order 26 suspended.]

BILL

THIRD READING

LAND TAX AMENDMENT ACT 2019

Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Land Tax Amendment Act 2019 be
now read a third time.

The President: Is there any objection to the third
reading?
No objection.
Carry on, Senator Campbell.
Sen. Vance Campbell: Madam President, I move that
the Bill do now pass.

The President: Is there any objection to that motion?
No objection.
The Bill entitled the Land Tax Amendment Act
2019, is passed.
Thank you, Senators.
Sen. Vance Campbell: Thank you, Madam President.
[Motion carried: The Land Tax Amendment Act 2019 was given a third reading and passed.]
The President: We will move on to the fourth item of
the Orders of the Day, the second reading of the De ntal Practitioners Amendment Act 2019.
Senator Richardson, you have the floor.
BILL

SECOND READING

DENTAL PRACTITIONERS AMENDMENT ACT 2019

Sen. Anthony Richardson: Madam President, I
move that the Bill entitled the Dental Practitioners
Amendment Act 2019 be now read a second time.

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

Sen. Anthony Richardson: Madam President, I am
pleased today to present the Bill entitled the Dental
Practitioners Amendment Act 2019.
Madam President, the Ministry of Health is r esponsible for the legislation that provides the fram ework for the regulation of healthcare professionals.
The Dental Practitioners Act 1950 is the legislation
that guides the regulation of dentists, dental hygien-ists, and dental technicians. The Bermuda Dental
Board (the Board) is the regulatory authority charged
with ensuring high standards of professional competence and conduct for the dental profession and to
advise the Ministry on issues pertaining to them. A ccordingly, the Board and the Ministry’s efforts to a dvance standards for professional practice are ongoing.
Madam President, the Bill entitled the Dental
Practitioners Amendment Act 2019 proposes to i mprove the regulation of dentists by making explicit pr ovision for appropriate indemnity insurance coverage
and regis tering dentists for specified procedures.
Madam President, the Board has registration
criteria that set forth what is required to satisfy an a pplication for registration as a dentist. Required doc umentation includes those documents that attest to the
educ ation and professional qualifications, experience
and character of an applicant. Additionally, the Board
requires proof of indemnity insurance coverage for
practice as a dentist, and this requirement is currently
outlined in standards for the profession in their stat ement of conduct.
Madam President, indemnity insurance is a
best practice standard for healthcare practitioners and it serves to protect the practitioners and the public
from claims of negligence and malpractice. The Bill
will update the Act and make indemnity coverage an
expressed legal requirement for dentists. Most recently, this requirement was established in the Psycholog-ical Practitioners Act 2018. The proposed amendment
for indemnity insurance coverage will not require any
additional change to current practice because dentists
already have a requirement for indemnity insurance
coverage through established standards for their pr ofession.
Madam President, the Bill clarifies that the
statement of conduct prepared by the Board includes
standards for ethical conduct, standards of practice
378 22 March 2019 Official Hansard Report

Bermuda Senate and scopes of practice for the dental profession. This
amendment aligns the Act with the Ministry’s other
legislation for health professionals.
Madam President, the Bill proposes that the
Board have authority to register dentists for specified
procedures and to enter these qualifications on the
register. The Board has identified several procedures
which require additional oversight in order to maintain
high standards of professional competence and conduct. These specified procedures include dental i mplants and restorations, sedation, sleep medicine and
cosmetic procedures involving neurotoxin (Botox) and
dermal filler injections. Some of these procedures carry an increased level of risk for patients that may r equire an increase in the level of indemnity insurance
coverage.
Additionally, the Board needs to assure that
dentists have received adequate education, training,
and continuing education to perform these proc edures. Madam President, the Board has best practice
standards drafted for each of the specified procedures mentioned in this brief for inclusion in the statement of
conduct for dentists. It is important to note that the
proposal for the addition of standards will undergo
consultation with the dental profession. This consult ation process allows the Board to receive feedback and
set reasonable and realistic timelines for compliance. Dentists who plan to perform or are currently perfor ming these specified procedures will be given the op-portunity to be a p art of the discussion before they are
held to any new standards.
Overall, Madam President, the Bill entitled the
Dental Practitioners Amendment Act 2019 ensures that the Board can continue to uphold high standards
of professional competence and conduct es sential for
the safeguarding of public health.
Thank you, Madam President.

The President: Thank you, Senator Richardson.
Would any Senator care to speak on this Bill?
No? Senator Richardson, you can carry on
with the second reading.

Sen. Anthony Rich ardson: Madam President, I
move that the Bill entitled the Dental Practitioners
Amendment Act 2019 be now read a second time.

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

[Motion carried: The Dental Practitioners Amendment
Act 2019 was given a second reading.]

SUSPENSION OF STANDING ORDER 26
Sen. Anthony Richardson: Madam President, I
move that Standing Order 26 be suspended in respect
of this Bill. The President: Is there any objection to that moti on?
No objection.
Carry on.

[Motion carried: Standing Order 26 suspended.]

BILL

THIRD READING

DENTAL PRACTITIONERS AMENDMENT ACT 2019

Sen. Anthony Richardson: Madam President, I
move that the Bill entitled the Dental Practitioners
Amendment Act 2019 be now read a third time.

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

Sen. Anthony Richardson: Madam President, I
move that the Bill do now pass.

The President: It has been moved that the Bill ent itled the Dental Practitioners Amendment Act 2019 be
now passed. Is there any objection?
No objection.
The Bill is passed.
Thank you, Senator Richardson and all Senators.

Sen. Anthony Richardson: Thank you, Madam President.

[Motion carried: The Dental Practitioners Amendment
Act 2019 was given a third reading and passed.]

The President: We will now move on to item 14 on
the Order Paper.

MOTIONS
The President: There are none.
Item 15.

CONGRATULATORY AND/OR
OBITUARY SPEECHES
The President: Would any Senator care to speak?
No? We have had a full day.
Item 16. Adjournment.
Attorney General, Senator Kathy Lynn Si mmons.

ADJOURNMENT
Sen. the Hon. Kathy Lynn Simmons: Thank you,
Madam President.


Bermuda Senate I move that the Senate do now adjourn until
Monday, March 25th.

The President: Is there any objection to that motion?
No objection.
Senate stands adjourned until Monday, the
25th of March.
Thank you all, Senators.
[At 6:14 pm, the Senate stood adjourned until
10:00 am, Monday, 25 March 2019.]

380 22 March 2019 Official Hansard Report

Bermuda Senate


[This page intenti onally left blank.]