Senate
Session 2018/2019
1 speech
March 18, 2019
Official Hansard Report - Senate
Download PDF transcriptSession Summary
Simplified for YouThe Senate held a general economic debate on the Government's 2019/20 budget proposal. Finance Minister Senator Campbell presented a budget featuring a projected $7.14 million surplus through increased revenues rather than spending cuts. The Opposition's Senator Kempe criticized the approach, arguing the budget raises taxes by $39 million during a fragile economic period while failing to reduce government spending or meaningfully address Bermuda's economic challenges.
Key Topics
Government's 2019/20 Budget Statement debate and opposition responseProposed tax increases including land tax, customs duty, and financial services taxEconomic challenges including declining retail sales and fragile economyGovernment spending remaining frozen at previous year's levelsDebt management and suspension of Sinking Fund contributions
Bills & Motions
Motion for General Economic Debate based on Government's 2019/20 Budget Statement - approved
Five public bills received first reading: Miscellaneous Taxes Amendment Act 2019, Bermuda Tourism Authority Amendment Act 2019, Payroll Tax Amendment Act 2019, Stamp Duties Amendment Act 2019, and Exempted Partnerships Amendment Act 2019
Two draft regulations presented for future consideration: Bermuda Immigration and Protection (Land-Holding Charges) Amendment Regulations 2019 and Government Fees Amendment Regulations 2019
Notable Moments
Government announced plans for mortgage relief programs and a government-backed mortgage lender to help families save an average of $5,300 per year
Opposition accused Government of "doublespeak" - claiming not to raise significant revenue while actually increasing taxes by $39 million
Minister acknowledged Bermuda's economy remains fragile with 10 straight months of declining retail sales
Debate Transcript
1 speech from 1 speaker
An Hon. Member An Hon. Member
It’s a duck. Sen. Vance Campbell: So, the PLP is supposedly a tax-and-spend government. You cannot dispute that our roads . . . you can drive that luxury vehicle on our roads to day, Madam President. You cannot dispute that the money this Government has spent has i mproved the …
It’s a duck.
Sen. Vance Campbell: So, the PLP is supposedly a
tax-and-spend government. You cannot dispute that
our roads . . . you can drive that luxury vehicle on our
roads to day, Madam President. You cannot dispute
that the money this Government has spent has i mproved the collection of the trash that we put out every
week. And, I might add, at a lower cost due to the r eduction in overtime.
It is a fact that the bus cancellati on situation
has improved. Is it where we want it to be? No, but it
has improved under this PLP Government. It is a fact
that we have students who are able to go to Bermuda
College as a result of money spent by this Gover nment, who were previously unable. And we talked
about preparing our workforce to meet the challenges
and the needs of our new economy. That is what this
Government has been doing with the money of the
people.
With that said, Madam President, I am going
to just recap the themes of the budget. The Gover nment has a plan, a fiscal plan. Some around this table, Madam President, may not like that plan, but it does
not mean we do not have one. The budget is rooted in
fiscal discipline and prudence, modest tax increases,
current account frozen at 2018/19 levels, small i ncrease in capital funding, Madam President.
First balanced budget in 16 years. Reduction
in net debt. No expectations of increase in the debt
ceiling. The Sinking Fund contribution suspended r ather than borrow $67 million at 4.591 per cent and
earn 1.9 per cent on that $67 million. No increase in interest expense, allowing for funding for other prior ities. The Government has tried to be fair and ba lanced, taking into consideration the situation that we must face as we try to reduce the deficit.
The Government has put in place an efficiency committee. We have heard that, but yet Senators
around the table, Madam President, still say, Where
are the attempts to control costs? Efficiency commi ttee. We explained what their role and their c harge is,
but yet we still have, Where are the attempts to control costs?
This Government is taking care of our people,
reducing the cost of living, providing mortgage relief. Healthcare reform is coming. Tackling electricity costs
. . . that is a big one; that is a challenge. As I mentioned earlier, increased investment in education.
With that, Madam President, we have talked
about sharing the tax burden. This Government has
attempted to do that. We have been transparent for
the third time, second time, this administration. The
only time we have had a pre- budget process is under
the PLP Government and we will continue to do that.
And we are looking to grow our economy for all Ber-mudians. We also spoke of the Government doing its
part through that efficiency committee. So, to say that
the Government has not checked spending is not accurate.
So, with that, Madam President I conclude my
comments on the budget, the general economic de-bate.
The President: Thank you, Senator Campbell and
senators.
This concludes the general budget debate
and on Wednesday we will move into the estimates
and expenditures of the ministerial and departmental
budgets. Thank you all for your input today. It has
been quite a good budget, and I think the public should be well pleased w ith all the comments that you
have made.
We will now move on to the second Order of
the Day, which is the second reading of the Foreign
Currency Purchase Tax Amendment Act 2019, Go vernor’s recommendation signified.
Senator Campbell, this will give you a chance
to catch us up and move us on this second reading.
Thank you.
BILL
SECOND READING
FOREIGN CURRENCY PURCHASE
TAX AMENDMENT ACT 2019
Sen. Vance Campbell: Thank you, Madam President.
Madam President, the Bill now before the
Senate is the Foreign Currency Purchase Tax
Amendment Act 2019 . The purpose of the Bill is to
Bermuda Senate amend the first schedule of the Foreign Currency Purchase Tax Act 1975, which I shall refer to as the Act.
Madam President, the Act provides that tax is
to be paid by or on behalf of persons who purchase
foreign currency from banks and similar financial inst itutions. The rate of the tax is set out in the first
Schedule to the Act and the current rate is 1.0 per
cent. The last time the rate was increased was in
2010 when it was raised from 0.5 per cent to the current rate of 1.0 per cent.
Madam President, the kinds of transactions
that are caught by the Act include purchase of foreign currency for travel overseas, purchases of imported
goods and services by traders, and also purchases by
consumers through catalogues and/or by way of the Internet. Persons will also notice the charge when
they pay on or pay off their credit card balances.
Madam Presi dent, the Act does provide for exem ptions from the tax on certain transactions. The list of
exempted transactions is set out in the second
Schedule to the Act.
For the convenience of the Senate and those
who may be listening, I shall recite those transacti ons
that are exempt from the tax. Madam President, a
transaction by any of the following bodies is free of the
tax, namely: the government, the Bermuda Monetary
Authority, the Bermuda Housing Corporation, the Bermuda Hospital Board, the Bermuda Tourism A uthority, the Bermuda Deposit Insurance Corporation, a
bank, a deposit company, a credit union, a trust company.
Madam President, in addition to the entities
just mentioned, remittances of premium income by
local insurance companies or non- resident insuranc e
undertakings and pension contributions by a local
pension fund are not subject to the tax.
Madam President, the main purpose of the Bill
is to raise additional revenue. Indeed, while the community would prefer that taxes not be increased, it is
important that all parties assist in the road to fiscal
consolidation driven by a sense of shared sacrifice.
There is no question that the demand for government services is increasing, along with the pres sing requirement to reduce the deficit. The proposed
change i n this rate will assist in providing some additional revenue that is required to satisfy the expanding
public needs of our community and reduce the deficit.
Madam President, in the case of the proposed
increase in Foreign Currency Purchase Tax, the over-all impact on the cost of imported goods and services
is an increase of 0.25 per cent. Madam President, the yield from the tax in 2019/20 is anticipated to be ap-proximately $26.1 million.
With those comments, Madam President, I
conclude my remarks.
The Pre sident: 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.
I have a couple of questions and comments
on the statement from the spokesperson from F inance.
The first premise was that there is an i ncreased need for government services. But we have
heard from other Members today, and also from r eports that have been put out that we have a decreased and a decreasing population. So, I am wondering how these two states of mind are compatible.
When we look at this Foreign Currency Purchase Tax, there were a lot of exemptions, namely,
trust companies, insurance companies, government.
So, who does it affect, Madam President? It affects
people that earn Bermuda dollars and people that
consume goods in Bermuda, which means it has a
disproportionate effect on people working in the local
economy, mainly Bermudians, and it has a disproportionate effect on retail, and people that dedicate a
higher percentage of their disposable income to consumption, which is generally people that are at the lower end of the economic scale.
So, this tax seems completely unnecessary,
and it targets (according to the aspirations on page 1 of the budget) the wrong sectors of our economy. It is
not an evolution of taxation; it is a worsening of the status quo.
Another item is that by increasing the cost on
the foreign currency purchase tax, one of the uni ntended consequences I fear we are going to find is that businesses that service companies that earn in US dollars, namely, in international business, will now
have crossed a threshold by which it makes sense to
run two accounts to receive payment for the goods
and services, one in US dollars and one in Bermuda
dollars. And by doing that they will be able to do their
purchases overseas, or even pay employees if they
wish to in US dollars, and that will lessen the projec ted increase in collection from this change in the tax.
When we look at it, it is a relatively paltry
amount at the end of the day. The Senator mentioned
that it is $21 million, but we are really talking about an
increase of $4.1 million. So, it is not a huge number in
the large scale of things. It is less than the projected surplus for the year, and I question the logic of doing
this increase at all, quite frankly.
Thank you, Madam President.
The President: Thank you, Senator Kempe.
Would any other Senator care to speak on
this Bill?
No?
Then, Senator Campbell —
Sen. Vance Campbell: Madam President, we have
heard the Senat or use “paltry sum” a number of times
today. A dollar is built one penny at a time. The Government had the option to go higher in many of the
226 18 March 2019 Official Hansard Report
Bermuda Senate areas that they increased tax, but they chose to go
with modest increases. If we would have gone high,
we would ha ve been criticised for it not being a paltry
sum. We go with a modest tax increase, we are crit icised for it being paltry. I would take $4 million over the status quo in our attempt to meet a balanced
budget.
I have no other comments, Madam President.
The President: Will you do your second reading
then?
Sen. Vance Campbell: I move that the Bill entitled
the Foreign Currency Purchase Tax Amendment Act 2019 be now read a second time.
The President: Is there any objection to that motion?
No objection.
Go ahead Senator Campbell.
[Motion carried: The Foreign Currency Purchase 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
FOREIGN CURRENCY PURCHASE
TAX AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Foreign Currency Purchase 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 tha t
the Bill do now pass.
The President: It has been moved that the Bill ent itled the Foreign Currency Purchase Tax Amendment
Act 2019 do now pass.
Is there any objection to that motion?
No objection. The Bill is passed. Thank you, Senator Campbell.
[Motion carried: The Foreign Currency Purchase Tax
Amendment Act 2019 was given a third reading and
passed.]
The President: Moving on to the third item on the
Order Paper, and that is the second reading of the
Financial Service Tax Amendment Act 2019, Governor’s recommendation signified. And Senator Cam pbell, I believe that is your Bill as well.
Sen. Vance Campbell: That is correct, Madam Pres ident.
The President: You have the floor.
BILL
SECOND READING
FINANCIAL SERVICES
TAX AMENDMENT ACT 2019
Sen. Va nce Campbell: Madam President, I move that
the Bill entitled the Financial Services 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.
Sen. Vance Campbell: Madam President, the Government wishes the Senate to give consideration to
the Bill entitled Financial Services Tax Amendment
Act 2019.
This Bill provides for a r evenue raising measure in support of Government’s 2019/20 budget, but it
also exempts insurance policies taken out by gover nment from the tax. In the 2017/18 budget, in an effort
to broaden the tax base, the former Government enacted the Financial Services Tax Act 2017. This legi slation introduced a Financial Services Tax on insurance premiums, excluding health, money transmi ssions of a money service business and bank assets.
Madam President, when applied to banks, the
tax was calculated at 0.005 per cent of the assets.
The tax, as applied to local insurance companies, was a tax on gross premiums earned, excluding premiums
from health insurance. The rate of tax was set at
2.5 per cent of non- health related gross premiums.
Finally, the rate of tax for the money service business
was 1.0 per cent on their aggregate outgoing transmission volume. When the former Government intr oduced the Financial Services Tax, this tax was an obligation of the respective financial institutions, and it
was up to the company if they passed this tax on to
their customers or not.
B ermuda Senate In 2018/19 it is estimated that government will
collect a total of $8.6 million from this tax, broken
down as follows:
•$4.1 million from bank service tax;
•$4.0 million from insurance service tax; and
•$0.5 million from money service business tax.
Senators will recall that the Tax Reform
Commission (TRC) recommended increases of Fina ncial Services Tax on bank assets and insurance pr emiums. The exact recommendations were as follows:
The bank fee, Madam President, to be increased by [0.0075 per cent], or 75 basis points. The fee on i nsurance premiums to be doubled from 2.5 per cent to 5.0 per cent. This increase will be the obligation of the
insurer, as recommended by the Tax Reform Co mmission.
Madam President, following consultation, the
Government will increase the tax on premiums by
1 per cent, and increase the tax on bank assets from
0.005 per cent to 0.0075 per cent of its consolidated
gross assets as at the end of a tax period. The Finan-cial Services Tax increases will be on the same terms
as the existing Financial Services Tax remittances
introduced by the former Government. This will yield
an estimated additional $3.4 million in revenue.
Madam President, the Bill will also exempt insurance policies taken out by government, as it is
pointless for government to be increasing its insur-ance costs due to its own taxes. Currently, gover nment incurs $8.9 million in insurance costs, so this will save approximately $311,500 at the increased rates.
With that, Madam President, I conclude my
remarks on this Bill.
The President: Would any other Senators like to
speak on this Bill?
Senator Kempe, you have the floor.
Sen. Nicholas Kempe: Thank you, Madam Pres ident.
I touched on this briefly during the general
econom ic debate, but the piece in this Tax amendment Act that I find quite cynical is the raising of tax and then the belief that this can be obligated to be assumed by the insurer, bank, or whoever was pas sing it on and simply listing it as a line item on the f inal
invoice. This tax will continue to be passed on. It just will not be listed as a separate line item on the prem ium.
We will see fees and premiums and other
things go up to recover the cost of this raised tax. And, as I said before, an increase in tax is an increase
in cost of living.
I find it amusing that not even the Government
believes that the insurers will bear the cost of this bill;
otherwise they would not have needed to write a carveout for government policies from the insurance
companies. They know that this tax will be passed on
and will not be borne by the insurance companies. Otherwise they would not h ave felt t he need t o write a
carveout for policies that they receive from the insurance companies themselves.
The President: Thank you, Senator Kempe.
Would any other Senator care to speak on
this Bill?
No?
Senator Campbell.
Sen. Vance Campbell: Madam President, in my brief
I said, “When the former Government introduced the
Financial Services Tax, this tax was an obligation of the respective financial institutions, and it was up to
the company if they passed this tax on to their customers or not.”
I then stated, Madam President, “The Financial Services Tax increases will be on the same terms as the existing Financial Services Tax remittances introduced by the former Government.”
So, that is pretty obvious to me, Madam President.
Madam President, I move that the Bill entitled
the Financial Services Tax Amendment Act 2019, be now read a second time.
The President: Is there any objection to that motion?
No objection.
Go ahead Senator Campbell.
[
Motion carried: The Financial Services 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
FINANCIAL SERVICES
TAX AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Financial Services 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.
228 18 March 2019 Official Hansard Report
Bermuda Senate Sen. Vance Campbell: Madam President, I move that
the Bill do now pass.
The President: It has been moved that the Bill ent itled the Financial Services Tax Amendment Act 2019
do now pass.
Is there any objection to that motion?
No objection. The Bill is passed.
Thank you, Senator Campbell.
[Motion carried: The Financial Services Tax Amendment Act 2019 was given a third reading and passed.]
The President: We now move on to the next item,
which is the second reading of the Hotel (Temporary
Customs Duty Relief) Amendment Act 2019.
Senator Cam pbell, that is your Bill as well.
We’ve kept you busy today.
Sen. Vance Campbell: Yes, Madam President.
BILL
SECOND READING
HOTEL (TEMPORARY CUSTOMS DUTY RELIEF)
AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled th e Hotel (Temporary Customs Duty
Relief) Amendment Act 2019 , be now read a second
time.
The President: Is there any objection to that motion?
No objection.
Carry on Senator Campbell.
Sen. Vance Campbell: Madam President, this Bill
proposes to extend the Hotels (Temporary Customs
Duty Relief) Act 1991 by a further five- year period,
expiring on March 31
st, 2024. The Act provides a zero
rate of customs duty on capit al goods to be used in a
capital investment scheme a hotel. Qualifying goods
are listed in the Appendix of Public Notice 26, Customs Duty Relief, Hotels (Temporary Customs Duty
Relief) Act 1991.The items included in the list of
goods are intended for the r enovation and refurbis hment of hotels and guest houses.
The duty relief for hotel redevelopment is easy
to obtain. Any hotelier may claim duty relief by making
a customs declaration, a BCD, in respect of qualifying goods and specifying CPC 4509 in box 16 on that
form. A copy of the relevant hotel licence should accompany the customs declaration. Detailed declar ation guidance is easily accessible on the government portal.
Madam President, many properties have benefited from the concessions that are due to expire on
March 31
st, 2019. Since the last extension of the Act in 2014, the hotel sector in Bermuda has benefited by
receiving approximately $12.7 million in duty relief on
the renovation and refurbishment of their facilities.
Madam President, 2018 turned out to be another record- breaking year for the number of visitor
arrivals when cruise, air and yacht figures are combined, with air arrivals growing by 4.6 per cent. D espite this success, hotel occupancy for the full year
increased by only 1.1 per cent over 2017, to 63.7 per
cent. There is no doubt that every hotel with a licence relies on this concession. This includes new hotel de-velopment prior to any order under the former Hotels
Concession Act, or the now Tourism Investment Act.
Madam President, upgrades are vital to mai ntain standards and the hotel licensing regulations and are monitored through compliance inspections twice a
year. This concession helps hotels to comply with these regulations.
Madam President, hoteliers have made it very
clear to G overnment that they require this assistance
to successfully navigate through these times. This
extension to the customs duty relief will allow industry
to be better prepared for any challenges that lie ahead.
To Bermuda’s great fortune, the hoteliers are
generally committed to maintaining staffing levels wherever possible, while continuing to offer first -class
service and amenities to the guests of their establis hments. The extension of duty relief will encourage the properties to continue to upgrade and provide the
greatest quality experience possible to both visitors
and residents alike.
Madam President, Government is equally
committed to supporting the industry as it provides a diverse range of jobs to a wide cross section of Bermudians.
Thank you, Madam President.
The President: Would any Senator care to speak on
this Bill?
Senator Jones, you have the floor.
Sen. Marcus Jones: Thank you, Madam President.
As I am looking at this amendment the
thought and question has come to me that (and I don’t
know if the Junior Minister will be able to enlighten the Senate) . . . does the Government have any intention
with this amendment of opening up an opportunity for the fastest growing category of tourism unit in the country now, the Airbnb and vacation rental units? I
agree with this amendment. I think it should be ex-tended, but there is still a category within our tourism product that I feel one can consider this being extended to that category as well.
The President: Thank you, Senator Jones.
Would any oth er Senator care to speak on
this Bill?
No?
Bermuda Senate Senator Campbell, you have the floor.
Sen. Vance Campbell: Madam President, I do not
have the answer for that question at this time, but I will
endeavour to get it for Senator Jones.
The President: Thank you, Senator Campbell. Carry
on.
Sen. Vance Campbell: Madam President, I move that
the Bill entitled Hotel (Temporary Customs Duty R elief) Amendment Act 2019, be now read a second
time.
The President: Is there any objection to the second
reading?
No objecti on.
Carry on.
[Motion carried: The Hotel (Temporary Customs Duty
Relief) 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 thi s
Bill.
The President: Is there any objection to that motion?
No objection.
Carry on.
[Motion carried: Standing Order 26 suspended.]
BILL
THIRD READING
HOTEL (TEMPORARY CUSTOMS DUTY RELIEF)
AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Hotel (Temporary Customs Duty
Relief) 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: It has been moved that the Bill ent itled the Hotel (Temporary Customs Duty Relief)
Amendment Act 2019 do now pass.
Is there any objection to that motion?
No objection. The Bill is passed. Thank you, Senator Campbell.
[Motion carried: The Hotel (Temporary Customs Duty
Relief) Amendment Act 2019 was given a third reading and passed.]
The President: We will now move onto the next item
on the Order Paper, which is the second reading of
the Restaurant ( Temporary Customs Duty Relief)
Amendment Act 2019.
Senator Campbell, it is your Bill, so you have
the floor.
BILL
SECOND READING
RESTAURANTS (TEMPORARY CUSTOMS
DUTY RELIEF) AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Restaurants (Temporary Customs
Duty Relief) Amendment Act 2019 , be now read a
second time.
The President: Is there any objection to the second
readi ng?
No objection.
Carry on, Senator Campbell.
Sen. Vance Campbell: Madam President, this Bill
proposes to extend the Restaurants (Temporary Customs Duty Relief) Act 2002 by a further five- year per iod, expiring on March 31
st, 2024. The Act provides for
a zero rate of customs duty on imported capital goods
intended for the renovation and refurbishment of res-taurants.
Madam President, many properties have benefitted from the concessions that are due to expire on 31
st March 2019. Madam President, Government is
committed to upgrading this country’s tourism product
in our continuing efforts to revitalise the tourist industry. The restaurant industry is viewed as an essential
component in this Government’s quest to provide a first-class experience for our Island’s visitors. It is vital
that Bermuda’s restaurants achieve and maintain the
highest standards possible.
Madam President, of significance is that many
smaller mom -and-pop restaurants have taken advantage of this concession. The concession is easy to
obtain. A restaurateur may apply in writing to the Mi nister of Finance for a scheme to be approved in r espect of his/her restaurant. The application should include a description and plan of the capital inves tment scheme, along with an itemised list of the capi tal
goods to be used in the execution of the scheme. Once approved, the restauranteur may claim
duty relief by making a customs declaration in respect
of qualifying goods and specifying CPC 4517 in box
230 18 March 2019 Official Hansard Report
Bermuda Senate 16 on that form. A copy of the Minister’s approval l etter should accompany the customs declaration. Again,
detailed declaration guidance is easily accessible on
the government portal.
Madam President, since the last extension of
the Act in 2014, the restaurant sector in Bermuda has benefited by receiving approximately $2.2 million in
duty relief on the renovation and refurbishment of their
facilities.
Madam President, like the hotels, most restaurants are committed to upgrading their facilities to the highest standards possible, and those that have
already reached high standards are determined to
maintain them. To reach their goals in the prevailing
economic climate, a number of restaurants will be in greater need of this assistance than in the past. Over
the next five years the customs duty concession will
be of immense benefit to the restaurants in Bermuda.
Madam President, Government is equally
committed to supporting the restaurant industry as it is with supporting hotels.
Thank you, Madam President.
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.
The OBA recognises the value in the Restaurant and Hotels (Temporary Concession Duty Relief)
to ensure that we can maintain a tour ism jurisdiction
with modern amenities and we recognise that the duty
relief given has a multiplier effect on the amount rei nvested into the properties and construction jobs and
all these wonderful things that keep us as a luxury
jurisdiction with a curve.
Thank you.
The President: Thank you, Senator Kempe.
Would any other Senator care to speak on
this Bill?
No?
Then, Senator Campbell.
Sen. Vance Campbell: Madam President, I move that
the Bill entitled Restaurants (Temporary Customs D uty Relief) Amendment Act 2019, be now read a second time.
The President: Is there any objection to that motion?
No objection.
Carry on.
[Motion carried: The Restaurants (Temporary Customs Duty Relief) Amendment Act 2019 was given a second reading.]
SUSPENSION OF STA NDING 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, Senator Campbell.
[Motion carried: Standing Order 26 suspended.]
BILL
THIRD READING
RESTAURANTS (TEMPORARY CUSTOMS
DUTY RELIEF) AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Restaurants (Temporary Customs
Duty Relief) 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: It has been moved that the Bill ent itled the Restaurants (Temporary Customs Duty Relief)
Amendment Act 2019 do now pass.
Is there any objection to that motion?
No objection. The Bill is passed.
Thank you, Senator Campbell.
Sen. Vance Campbell: Thank you, Madam President.
[Motion carried: The Restaurants (T emporary Customs Duty Relief) Amendment Act 2019 was given a
third reading and passed.]
The President: Item 6, was the second reading of the
Municipalities Reform Act 2019. Senators, we know
that, for the listening public, this Bill will be taken up
on Wednesday.
We now move on to item 14, Motions.
MOTIONS
The President: There are none.
Item 16, Congratulatory and/or Obituary
Speeches.
Bermuda Senate CONGRATULATORY AND/OR
OBITUARY SPEECHES
The President: Would any Senator care to speak?
Sen. Vance Campbell: I have a real quick one , Madam President.
[Laughter]
The President: Senator Campbell.
Sen. Vance Campbell: I have to do it —
The President: Senator Campbell, this is your day,
so—
Sen. Vance Campbell: I have to do it —
[Laughter]
The President: Carry on.
BERMUDA’S SPECIAL OLYMPIANS
Sen. Vance Campbell: And, hopefully, everyone
agrees that it was necessary to do this.
Madam President, I would like to congratulate
our Special Olympians.
[Desk thumping]
Sen. Vance Campbell: They are doing Bermuda
proud. Equestrian, Eden Wollery, who is the youngest
member of Bermuda’s 13- strong contingent, at age
14, won the silver medal competing in the Level CS
English Working Trials at the Al Forsan Arena on Saturday. Carlton Thompson, not to be outdone, he is the
most senior person on the Island’s team at 51, s ecured a bronze medal in the singles bowling compet ition.
We had bowlers Tiannai Lowe and Wayne
Smith, and runners, Danielle Gibbons, Damon Emery, Kris Trott and Kirk Dill who also did the Island proud
after placing in their respective disciplines.
I just want to shout out to the athletes who are
scheduled to compete today, that is, Del -Che Landy,
Solay Thomas, Gibbons, again, and Woollery who will try for her second medal.
Thank you, Madam President.
The P resident: Thank you, Senator Campbell. And it
has been . . . all Senators around the table agree with
you and certainly congratulate our athletes.
Would any other Senator care to speak on the
Congratulatory and/or Obituary Speeches?
No? Then the adjour nment. Senator Caesar, you
are the Government Leader in the Senate today, so it
is over to you for the adjournment.
ADJOURNMENT
Sen. Crystal Caesar: Thank you, Madam President.
I now move that the Senate adjourn until
Wednesday, March 20th, 2019.
The President: Thank you.
Would any Senator care to speak on the m otion to adjourn?
No?
With that, the Senate stands adjourned until
Wednesday, the 20th of March. Thank you.
[At 5:52 pm, the Senate stood adjourned until
10:00 am, Wednesday, 20 March 2019]
232 18 March 2019 Official Hansard Report
Bermuda Senate
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Sen. Vance Campbell: So, the PLP is supposedly a
tax-and-spend government. You cannot dispute that
our roads . . . you can drive that luxury vehicle on our
roads to day, Madam President. You cannot dispute
that the money this Government has spent has i mproved the collection of the trash that we put out every
week. And, I might add, at a lower cost due to the r eduction in overtime.
It is a fact that the bus cancellati on situation
has improved. Is it where we want it to be? No, but it
has improved under this PLP Government. It is a fact
that we have students who are able to go to Bermuda
College as a result of money spent by this Gover nment, who were previously unable. And we talked
about preparing our workforce to meet the challenges
and the needs of our new economy. That is what this
Government has been doing with the money of the
people.
With that said, Madam President, I am going
to just recap the themes of the budget. The Gover nment has a plan, a fiscal plan. Some around this table, Madam President, may not like that plan, but it does
not mean we do not have one. The budget is rooted in
fiscal discipline and prudence, modest tax increases,
current account frozen at 2018/19 levels, small i ncrease in capital funding, Madam President.
First balanced budget in 16 years. Reduction
in net debt. No expectations of increase in the debt
ceiling. The Sinking Fund contribution suspended r ather than borrow $67 million at 4.591 per cent and
earn 1.9 per cent on that $67 million. No increase in interest expense, allowing for funding for other prior ities. The Government has tried to be fair and ba lanced, taking into consideration the situation that we must face as we try to reduce the deficit.
The Government has put in place an efficiency committee. We have heard that, but yet Senators
around the table, Madam President, still say, Where
are the attempts to control costs? Efficiency commi ttee. We explained what their role and their c harge is,
but yet we still have, Where are the attempts to control costs?
This Government is taking care of our people,
reducing the cost of living, providing mortgage relief. Healthcare reform is coming. Tackling electricity costs
. . . that is a big one; that is a challenge. As I mentioned earlier, increased investment in education.
With that, Madam President, we have talked
about sharing the tax burden. This Government has
attempted to do that. We have been transparent for
the third time, second time, this administration. The
only time we have had a pre- budget process is under
the PLP Government and we will continue to do that.
And we are looking to grow our economy for all Ber-mudians. We also spoke of the Government doing its
part through that efficiency committee. So, to say that
the Government has not checked spending is not accurate.
So, with that, Madam President I conclude my
comments on the budget, the general economic de-bate.
The President: Thank you, Senator Campbell and
senators.
This concludes the general budget debate
and on Wednesday we will move into the estimates
and expenditures of the ministerial and departmental
budgets. Thank you all for your input today. It has
been quite a good budget, and I think the public should be well pleased w ith all the comments that you
have made.
We will now move on to the second Order of
the Day, which is the second reading of the Foreign
Currency Purchase Tax Amendment Act 2019, Go vernor’s recommendation signified.
Senator Campbell, this will give you a chance
to catch us up and move us on this second reading.
Thank you.
BILL
SECOND READING
FOREIGN CURRENCY PURCHASE
TAX AMENDMENT ACT 2019
Sen. Vance Campbell: Thank you, Madam President.
Madam President, the Bill now before the
Senate is the Foreign Currency Purchase Tax
Amendment Act 2019 . The purpose of the Bill is to
Bermuda Senate amend the first schedule of the Foreign Currency Purchase Tax Act 1975, which I shall refer to as the Act.
Madam President, the Act provides that tax is
to be paid by or on behalf of persons who purchase
foreign currency from banks and similar financial inst itutions. The rate of the tax is set out in the first
Schedule to the Act and the current rate is 1.0 per
cent. The last time the rate was increased was in
2010 when it was raised from 0.5 per cent to the current rate of 1.0 per cent.
Madam President, the kinds of transactions
that are caught by the Act include purchase of foreign currency for travel overseas, purchases of imported
goods and services by traders, and also purchases by
consumers through catalogues and/or by way of the Internet. Persons will also notice the charge when
they pay on or pay off their credit card balances.
Madam Presi dent, the Act does provide for exem ptions from the tax on certain transactions. The list of
exempted transactions is set out in the second
Schedule to the Act.
For the convenience of the Senate and those
who may be listening, I shall recite those transacti ons
that are exempt from the tax. Madam President, a
transaction by any of the following bodies is free of the
tax, namely: the government, the Bermuda Monetary
Authority, the Bermuda Housing Corporation, the Bermuda Hospital Board, the Bermuda Tourism A uthority, the Bermuda Deposit Insurance Corporation, a
bank, a deposit company, a credit union, a trust company.
Madam President, in addition to the entities
just mentioned, remittances of premium income by
local insurance companies or non- resident insuranc e
undertakings and pension contributions by a local
pension fund are not subject to the tax.
Madam President, the main purpose of the Bill
is to raise additional revenue. Indeed, while the community would prefer that taxes not be increased, it is
important that all parties assist in the road to fiscal
consolidation driven by a sense of shared sacrifice.
There is no question that the demand for government services is increasing, along with the pres sing requirement to reduce the deficit. The proposed
change i n this rate will assist in providing some additional revenue that is required to satisfy the expanding
public needs of our community and reduce the deficit.
Madam President, in the case of the proposed
increase in Foreign Currency Purchase Tax, the over-all impact on the cost of imported goods and services
is an increase of 0.25 per cent. Madam President, the yield from the tax in 2019/20 is anticipated to be ap-proximately $26.1 million.
With those comments, Madam President, I
conclude my remarks.
The Pre sident: 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.
I have a couple of questions and comments
on the statement from the spokesperson from F inance.
The first premise was that there is an i ncreased need for government services. But we have
heard from other Members today, and also from r eports that have been put out that we have a decreased and a decreasing population. So, I am wondering how these two states of mind are compatible.
When we look at this Foreign Currency Purchase Tax, there were a lot of exemptions, namely,
trust companies, insurance companies, government.
So, who does it affect, Madam President? It affects
people that earn Bermuda dollars and people that
consume goods in Bermuda, which means it has a
disproportionate effect on people working in the local
economy, mainly Bermudians, and it has a disproportionate effect on retail, and people that dedicate a
higher percentage of their disposable income to consumption, which is generally people that are at the lower end of the economic scale.
So, this tax seems completely unnecessary,
and it targets (according to the aspirations on page 1 of the budget) the wrong sectors of our economy. It is
not an evolution of taxation; it is a worsening of the status quo.
Another item is that by increasing the cost on
the foreign currency purchase tax, one of the uni ntended consequences I fear we are going to find is that businesses that service companies that earn in US dollars, namely, in international business, will now
have crossed a threshold by which it makes sense to
run two accounts to receive payment for the goods
and services, one in US dollars and one in Bermuda
dollars. And by doing that they will be able to do their
purchases overseas, or even pay employees if they
wish to in US dollars, and that will lessen the projec ted increase in collection from this change in the tax.
When we look at it, it is a relatively paltry
amount at the end of the day. The Senator mentioned
that it is $21 million, but we are really talking about an
increase of $4.1 million. So, it is not a huge number in
the large scale of things. It is less than the projected surplus for the year, and I question the logic of doing
this increase at all, quite frankly.
Thank you, Madam President.
The President: Thank you, Senator Kempe.
Would any other Senator care to speak on
this Bill?
No?
Then, Senator Campbell —
Sen. Vance Campbell: Madam President, we have
heard the Senat or use “paltry sum” a number of times
today. A dollar is built one penny at a time. The Government had the option to go higher in many of the
226 18 March 2019 Official Hansard Report
Bermuda Senate areas that they increased tax, but they chose to go
with modest increases. If we would have gone high,
we would ha ve been criticised for it not being a paltry
sum. We go with a modest tax increase, we are crit icised for it being paltry. I would take $4 million over the status quo in our attempt to meet a balanced
budget.
I have no other comments, Madam President.
The President: Will you do your second reading
then?
Sen. Vance Campbell: I move that the Bill entitled
the Foreign Currency Purchase Tax Amendment Act 2019 be now read a second time.
The President: Is there any objection to that motion?
No objection.
Go ahead Senator Campbell.
[Motion carried: The Foreign Currency Purchase 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
FOREIGN CURRENCY PURCHASE
TAX AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Foreign Currency Purchase 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 tha t
the Bill do now pass.
The President: It has been moved that the Bill ent itled the Foreign Currency Purchase Tax Amendment
Act 2019 do now pass.
Is there any objection to that motion?
No objection. The Bill is passed. Thank you, Senator Campbell.
[Motion carried: The Foreign Currency Purchase Tax
Amendment Act 2019 was given a third reading and
passed.]
The President: Moving on to the third item on the
Order Paper, and that is the second reading of the
Financial Service Tax Amendment Act 2019, Governor’s recommendation signified. And Senator Cam pbell, I believe that is your Bill as well.
Sen. Vance Campbell: That is correct, Madam Pres ident.
The President: You have the floor.
BILL
SECOND READING
FINANCIAL SERVICES
TAX AMENDMENT ACT 2019
Sen. Va nce Campbell: Madam President, I move that
the Bill entitled the Financial Services 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.
Sen. Vance Campbell: Madam President, the Government wishes the Senate to give consideration to
the Bill entitled Financial Services Tax Amendment
Act 2019.
This Bill provides for a r evenue raising measure in support of Government’s 2019/20 budget, but it
also exempts insurance policies taken out by gover nment from the tax. In the 2017/18 budget, in an effort
to broaden the tax base, the former Government enacted the Financial Services Tax Act 2017. This legi slation introduced a Financial Services Tax on insurance premiums, excluding health, money transmi ssions of a money service business and bank assets.
Madam President, when applied to banks, the
tax was calculated at 0.005 per cent of the assets.
The tax, as applied to local insurance companies, was a tax on gross premiums earned, excluding premiums
from health insurance. The rate of tax was set at
2.5 per cent of non- health related gross premiums.
Finally, the rate of tax for the money service business
was 1.0 per cent on their aggregate outgoing transmission volume. When the former Government intr oduced the Financial Services Tax, this tax was an obligation of the respective financial institutions, and it
was up to the company if they passed this tax on to
their customers or not.
B ermuda Senate In 2018/19 it is estimated that government will
collect a total of $8.6 million from this tax, broken
down as follows:
•$4.1 million from bank service tax;
•$4.0 million from insurance service tax; and
•$0.5 million from money service business tax.
Senators will recall that the Tax Reform
Commission (TRC) recommended increases of Fina ncial Services Tax on bank assets and insurance pr emiums. The exact recommendations were as follows:
The bank fee, Madam President, to be increased by [0.0075 per cent], or 75 basis points. The fee on i nsurance premiums to be doubled from 2.5 per cent to 5.0 per cent. This increase will be the obligation of the
insurer, as recommended by the Tax Reform Co mmission.
Madam President, following consultation, the
Government will increase the tax on premiums by
1 per cent, and increase the tax on bank assets from
0.005 per cent to 0.0075 per cent of its consolidated
gross assets as at the end of a tax period. The Finan-cial Services Tax increases will be on the same terms
as the existing Financial Services Tax remittances
introduced by the former Government. This will yield
an estimated additional $3.4 million in revenue.
Madam President, the Bill will also exempt insurance policies taken out by government, as it is
pointless for government to be increasing its insur-ance costs due to its own taxes. Currently, gover nment incurs $8.9 million in insurance costs, so this will save approximately $311,500 at the increased rates.
With that, Madam President, I conclude my
remarks on this Bill.
The President: Would any other Senators like to
speak on this Bill?
Senator Kempe, you have the floor.
Sen. Nicholas Kempe: Thank you, Madam Pres ident.
I touched on this briefly during the general
econom ic debate, but the piece in this Tax amendment Act that I find quite cynical is the raising of tax and then the belief that this can be obligated to be assumed by the insurer, bank, or whoever was pas sing it on and simply listing it as a line item on the f inal
invoice. This tax will continue to be passed on. It just will not be listed as a separate line item on the prem ium.
We will see fees and premiums and other
things go up to recover the cost of this raised tax. And, as I said before, an increase in tax is an increase
in cost of living.
I find it amusing that not even the Government
believes that the insurers will bear the cost of this bill;
otherwise they would not have needed to write a carveout for government policies from the insurance
companies. They know that this tax will be passed on
and will not be borne by the insurance companies. Otherwise they would not h ave felt t he need t o write a
carveout for policies that they receive from the insurance companies themselves.
The President: Thank you, Senator Kempe.
Would any other Senator care to speak on
this Bill?
No?
Senator Campbell.
Sen. Vance Campbell: Madam President, in my brief
I said, “When the former Government introduced the
Financial Services Tax, this tax was an obligation of the respective financial institutions, and it was up to
the company if they passed this tax on to their customers or not.”
I then stated, Madam President, “The Financial Services Tax increases will be on the same terms as the existing Financial Services Tax remittances introduced by the former Government.”
So, that is pretty obvious to me, Madam President.
Madam President, I move that the Bill entitled
the Financial Services Tax Amendment Act 2019, be now read a second time.
The President: Is there any objection to that motion?
No objection.
Go ahead Senator Campbell.
[
Motion carried: The Financial Services 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
FINANCIAL SERVICES
TAX AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Financial Services 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.
228 18 March 2019 Official Hansard Report
Bermuda Senate Sen. Vance Campbell: Madam President, I move that
the Bill do now pass.
The President: It has been moved that the Bill ent itled the Financial Services Tax Amendment Act 2019
do now pass.
Is there any objection to that motion?
No objection. The Bill is passed.
Thank you, Senator Campbell.
[Motion carried: The Financial Services Tax Amendment Act 2019 was given a third reading and passed.]
The President: We now move on to the next item,
which is the second reading of the Hotel (Temporary
Customs Duty Relief) Amendment Act 2019.
Senator Cam pbell, that is your Bill as well.
We’ve kept you busy today.
Sen. Vance Campbell: Yes, Madam President.
BILL
SECOND READING
HOTEL (TEMPORARY CUSTOMS DUTY RELIEF)
AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled th e Hotel (Temporary Customs Duty
Relief) Amendment Act 2019 , be now read a second
time.
The President: Is there any objection to that motion?
No objection.
Carry on Senator Campbell.
Sen. Vance Campbell: Madam President, this Bill
proposes to extend the Hotels (Temporary Customs
Duty Relief) Act 1991 by a further five- year period,
expiring on March 31
st, 2024. The Act provides a zero
rate of customs duty on capit al goods to be used in a
capital investment scheme a hotel. Qualifying goods
are listed in the Appendix of Public Notice 26, Customs Duty Relief, Hotels (Temporary Customs Duty
Relief) Act 1991.The items included in the list of
goods are intended for the r enovation and refurbis hment of hotels and guest houses.
The duty relief for hotel redevelopment is easy
to obtain. Any hotelier may claim duty relief by making
a customs declaration, a BCD, in respect of qualifying goods and specifying CPC 4509 in box 16 on that
form. A copy of the relevant hotel licence should accompany the customs declaration. Detailed declar ation guidance is easily accessible on the government portal.
Madam President, many properties have benefited from the concessions that are due to expire on
March 31
st, 2019. Since the last extension of the Act in 2014, the hotel sector in Bermuda has benefited by
receiving approximately $12.7 million in duty relief on
the renovation and refurbishment of their facilities.
Madam President, 2018 turned out to be another record- breaking year for the number of visitor
arrivals when cruise, air and yacht figures are combined, with air arrivals growing by 4.6 per cent. D espite this success, hotel occupancy for the full year
increased by only 1.1 per cent over 2017, to 63.7 per
cent. There is no doubt that every hotel with a licence relies on this concession. This includes new hotel de-velopment prior to any order under the former Hotels
Concession Act, or the now Tourism Investment Act.
Madam President, upgrades are vital to mai ntain standards and the hotel licensing regulations and are monitored through compliance inspections twice a
year. This concession helps hotels to comply with these regulations.
Madam President, hoteliers have made it very
clear to G overnment that they require this assistance
to successfully navigate through these times. This
extension to the customs duty relief will allow industry
to be better prepared for any challenges that lie ahead.
To Bermuda’s great fortune, the hoteliers are
generally committed to maintaining staffing levels wherever possible, while continuing to offer first -class
service and amenities to the guests of their establis hments. The extension of duty relief will encourage the properties to continue to upgrade and provide the
greatest quality experience possible to both visitors
and residents alike.
Madam President, Government is equally
committed to supporting the industry as it provides a diverse range of jobs to a wide cross section of Bermudians.
Thank you, Madam President.
The President: Would any Senator care to speak on
this Bill?
Senator Jones, you have the floor.
Sen. Marcus Jones: Thank you, Madam President.
As I am looking at this amendment the
thought and question has come to me that (and I don’t
know if the Junior Minister will be able to enlighten the Senate) . . . does the Government have any intention
with this amendment of opening up an opportunity for the fastest growing category of tourism unit in the country now, the Airbnb and vacation rental units? I
agree with this amendment. I think it should be ex-tended, but there is still a category within our tourism product that I feel one can consider this being extended to that category as well.
The President: Thank you, Senator Jones.
Would any oth er Senator care to speak on
this Bill?
No?
Bermuda Senate Senator Campbell, you have the floor.
Sen. Vance Campbell: Madam President, I do not
have the answer for that question at this time, but I will
endeavour to get it for Senator Jones.
The President: Thank you, Senator Campbell. Carry
on.
Sen. Vance Campbell: Madam President, I move that
the Bill entitled Hotel (Temporary Customs Duty R elief) Amendment Act 2019, be now read a second
time.
The President: Is there any objection to the second
reading?
No objecti on.
Carry on.
[Motion carried: The Hotel (Temporary Customs Duty
Relief) 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 thi s
Bill.
The President: Is there any objection to that motion?
No objection.
Carry on.
[Motion carried: Standing Order 26 suspended.]
BILL
THIRD READING
HOTEL (TEMPORARY CUSTOMS DUTY RELIEF)
AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Hotel (Temporary Customs Duty
Relief) 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: It has been moved that the Bill ent itled the Hotel (Temporary Customs Duty Relief)
Amendment Act 2019 do now pass.
Is there any objection to that motion?
No objection. The Bill is passed. Thank you, Senator Campbell.
[Motion carried: The Hotel (Temporary Customs Duty
Relief) Amendment Act 2019 was given a third reading and passed.]
The President: We will now move onto the next item
on the Order Paper, which is the second reading of
the Restaurant ( Temporary Customs Duty Relief)
Amendment Act 2019.
Senator Campbell, it is your Bill, so you have
the floor.
BILL
SECOND READING
RESTAURANTS (TEMPORARY CUSTOMS
DUTY RELIEF) AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Restaurants (Temporary Customs
Duty Relief) Amendment Act 2019 , be now read a
second time.
The President: Is there any objection to the second
readi ng?
No objection.
Carry on, Senator Campbell.
Sen. Vance Campbell: Madam President, this Bill
proposes to extend the Restaurants (Temporary Customs Duty Relief) Act 2002 by a further five- year per iod, expiring on March 31
st, 2024. The Act provides for
a zero rate of customs duty on imported capital goods
intended for the renovation and refurbishment of res-taurants.
Madam President, many properties have benefitted from the concessions that are due to expire on 31
st March 2019. Madam President, Government is
committed to upgrading this country’s tourism product
in our continuing efforts to revitalise the tourist industry. The restaurant industry is viewed as an essential
component in this Government’s quest to provide a first-class experience for our Island’s visitors. It is vital
that Bermuda’s restaurants achieve and maintain the
highest standards possible.
Madam President, of significance is that many
smaller mom -and-pop restaurants have taken advantage of this concession. The concession is easy to
obtain. A restaurateur may apply in writing to the Mi nister of Finance for a scheme to be approved in r espect of his/her restaurant. The application should include a description and plan of the capital inves tment scheme, along with an itemised list of the capi tal
goods to be used in the execution of the scheme. Once approved, the restauranteur may claim
duty relief by making a customs declaration in respect
of qualifying goods and specifying CPC 4517 in box
230 18 March 2019 Official Hansard Report
Bermuda Senate 16 on that form. A copy of the Minister’s approval l etter should accompany the customs declaration. Again,
detailed declaration guidance is easily accessible on
the government portal.
Madam President, since the last extension of
the Act in 2014, the restaurant sector in Bermuda has benefited by receiving approximately $2.2 million in
duty relief on the renovation and refurbishment of their
facilities.
Madam President, like the hotels, most restaurants are committed to upgrading their facilities to the highest standards possible, and those that have
already reached high standards are determined to
maintain them. To reach their goals in the prevailing
economic climate, a number of restaurants will be in greater need of this assistance than in the past. Over
the next five years the customs duty concession will
be of immense benefit to the restaurants in Bermuda.
Madam President, Government is equally
committed to supporting the restaurant industry as it is with supporting hotels.
Thank you, Madam President.
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.
The OBA recognises the value in the Restaurant and Hotels (Temporary Concession Duty Relief)
to ensure that we can maintain a tour ism jurisdiction
with modern amenities and we recognise that the duty
relief given has a multiplier effect on the amount rei nvested into the properties and construction jobs and
all these wonderful things that keep us as a luxury
jurisdiction with a curve.
Thank you.
The President: Thank you, Senator Kempe.
Would any other Senator care to speak on
this Bill?
No?
Then, Senator Campbell.
Sen. Vance Campbell: Madam President, I move that
the Bill entitled Restaurants (Temporary Customs D uty Relief) Amendment Act 2019, be now read a second time.
The President: Is there any objection to that motion?
No objection.
Carry on.
[Motion carried: The Restaurants (Temporary Customs Duty Relief) Amendment Act 2019 was given a second reading.]
SUSPENSION OF STA NDING 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, Senator Campbell.
[Motion carried: Standing Order 26 suspended.]
BILL
THIRD READING
RESTAURANTS (TEMPORARY CUSTOMS
DUTY RELIEF) AMENDMENT ACT 2019
Sen. Vance Campbell: Madam President, I move that
the Bill entitled the Restaurants (Temporary Customs
Duty Relief) 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: It has been moved that the Bill ent itled the Restaurants (Temporary Customs Duty Relief)
Amendment Act 2019 do now pass.
Is there any objection to that motion?
No objection. The Bill is passed.
Thank you, Senator Campbell.
Sen. Vance Campbell: Thank you, Madam President.
[Motion carried: The Restaurants (T emporary Customs Duty Relief) Amendment Act 2019 was given a
third reading and passed.]
The President: Item 6, was the second reading of the
Municipalities Reform Act 2019. Senators, we know
that, for the listening public, this Bill will be taken up
on Wednesday.
We now move on to item 14, Motions.
MOTIONS
The President: There are none.
Item 16, Congratulatory and/or Obituary
Speeches.
Bermuda Senate CONGRATULATORY AND/OR
OBITUARY SPEECHES
The President: Would any Senator care to speak?
Sen. Vance Campbell: I have a real quick one , Madam President.
[Laughter]
The President: Senator Campbell.
Sen. Vance Campbell: I have to do it —
The President: Senator Campbell, this is your day,
so—
Sen. Vance Campbell: I have to do it —
[Laughter]
The President: Carry on.
BERMUDA’S SPECIAL OLYMPIANS
Sen. Vance Campbell: And, hopefully, everyone
agrees that it was necessary to do this.
Madam President, I would like to congratulate
our Special Olympians.
[Desk thumping]
Sen. Vance Campbell: They are doing Bermuda
proud. Equestrian, Eden Wollery, who is the youngest
member of Bermuda’s 13- strong contingent, at age
14, won the silver medal competing in the Level CS
English Working Trials at the Al Forsan Arena on Saturday. Carlton Thompson, not to be outdone, he is the
most senior person on the Island’s team at 51, s ecured a bronze medal in the singles bowling compet ition.
We had bowlers Tiannai Lowe and Wayne
Smith, and runners, Danielle Gibbons, Damon Emery, Kris Trott and Kirk Dill who also did the Island proud
after placing in their respective disciplines.
I just want to shout out to the athletes who are
scheduled to compete today, that is, Del -Che Landy,
Solay Thomas, Gibbons, again, and Woollery who will try for her second medal.
Thank you, Madam President.
The P resident: Thank you, Senator Campbell. And it
has been . . . all Senators around the table agree with
you and certainly congratulate our athletes.
Would any other Senator care to speak on the
Congratulatory and/or Obituary Speeches?
No? Then the adjour nment. Senator Caesar, you
are the Government Leader in the Senate today, so it
is over to you for the adjournment.
ADJOURNMENT
Sen. Crystal Caesar: Thank you, Madam President.
I now move that the Senate adjourn until
Wednesday, March 20th, 2019.
The President: Thank you.
Would any Senator care to speak on the m otion to adjourn?
No?
With that, the Senate stands adjourned until
Wednesday, the 20th of March. Thank you.
[At 5:52 pm, the Senate stood adjourned until
10:00 am, Wednesday, 20 March 2019]
232 18 March 2019 Official Hansard Report
Bermuda Senate
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Hansard Transcript
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