The SpeakerThe SpeakerGood morning, Members. Members, you have before you the Minutes of our last sitting, the 16th of February . Are there any amendments or adjustments to those Minutes ? No amendments or corrections. The Minutes st and approved. [Minutes of 1 6 February 2018 confirmed] MESSAGES FROM THE GOVERNOR
The SpeakerThe SpeakerThere are none. ANNOUNCEMENTS BY THE SPEAKER OR MEMBER PRESIDING APOLOGY
The SpeakerThe SpeakerIt is not on the Order Paper, but I would like to just acknowledge that I have been informed that the Member, Ms. Leah Scott, will be absent t oday. MESSAGES FROM THE SENATE JOINT SELECT COMMITTEES
The SpeakerThe SpeakerYes. I would just like to announce that the Senate has sent notice to us that they have ap-proved all of the recent Joint Select Committees that were sent , that w ere pass ed in this House and sent down to the Senate. And they have approved the appointment …
Yes. I would just like to announce that the Senate has sent notice to us that they have ap-proved all of the recent Joint Select Committees that were sent , that w ere pass ed in this House and sent down to the Senate. And they have approved the appointment of the said Members from that particular Chamber to sit on those respective Joint Select Committees. PAPERS AND OTHER COMMUNICATIONS TO THE HOUSE
The SpeakerThe SpeakerWe have a paper this morning. It is going to be pres ented by the Minister for Works, Minister Burch.
Lt. Col. Hon. David A. BurchMr. Speaker, I am tr ying to follow your Order Paper. Obviously, you have changed it. SALE AND PURCHASE AGREEMENT BETWEEN THE TRUSTEES OF THE SANDYS SECONDARY MIDDLE SCHOOL AND THE GOVERNMENT OF BERMUDA
Lt. Col. Hon. David A. BurchI have the honour to attach and submit for the consideration of the Hon-ourable House of Assembly the form of Sale and Purchase Agreement between the Trustees of the Sandys Secondary Middle School and the Gover nment of Bermuda, of Lots 1, 2, 3, and 4 situated at Broom Street …
The SpeakerThe SpeakerThank you, Minister . Minister, I know you are always ready. But, yes, on the Order Paper there were two communic ations that were going to be done. But the other Mini ster is going to defer hers. Hon. Kim N. Wilson: Actually, with your leave, Mr. Speaker, I can …
The SpeakerThe SpeakerOkay. Well, we will proceed with it now. Yes. Continue on, Minister. BERMUDA HOSPITALS BOARD ANNUAL REPORT 2012/13 Hon. Kim N. Wilson: Mr. Speaker, today I have the honour to attach and submit for the information of this Honourable House of As sembly the Bermuda Hosp itals Board Annual Report …
Okay. Well, we will proceed with it now. Yes. Continue on, Minister.
BERMUDA HOSPITALS BOARD ANNUAL REPORT 2012/13 Hon. Kim N. Wilson: Mr. Speaker, today I have the honour to attach and submit for the information of this Honourable House of As sembly the Bermuda Hosp itals Board Annual Report 2012/13. Mr. Speaker, I stand before this Honourable House . . . oh. Thank you.
The SpeakerThe SpeakerThank you, Minister. 1038 23 February 2018 Official Hansard Report B ermuda House of Assembly PETITIONS
The SpeakerThe SpeakerThere are none. STATEMENTS BY MINISTERS AND JUNIOR MINISTERS
The SpeakerThe SpeakerThere are none. REPORTS OF COMMITTEES
The SpeakerThe SpeakerThere are none. QUESTION PERIOD
The SpeakerThe SpeakerLet me just acknowledge here that, although there are questions on the paper, because today is the official Reply to the Budget, the Members have agreed to defer those until our next sitting. So, those questions that are down will be taken up on our next sitting, on Monday. CONGRATULATORY …
The SpeakerThe SpeakerLikewise, we have asked that all those items be carried over, be passed over, because, again, in respect to today’s being the Reply to the Budget, we are just going to allow the tabling of mat-ters today. And we will move on to the actual reply. So, those items are …
Likewise, we have asked that all those items be carried over, be passed over, because, again, in respect to today’s being the Reply to the Budget, we are just going to allow the tabling of mat-ters today. And we will move on to the actual reply. So, those items are carried over until we get to the Introduction of Bills. MAT TERS OF PRIVILEGE
The SpeakerThe SpeakerWe can go right to the Introduction of Bills. INTRODUCTION OF BILLS GOVERNMENT BILLS
The SpeakerThe SpeakerMr. Premier. FIRST READINGS LAND TAX TEMPORARY AMENDMENT ACT 2018 Hon. E. David Burt: Good morning, Mr. Speaker. Mr. Sp eaker, I am introducing the following Bill, which , according to section 36(3) of the Bermuda Constitution, requires the Governor’s recommenda-tion, so that it may be placed on the Order …
Mr. Premier. FIRST READINGS LAND TAX TEMPORARY AMENDMENT ACT 2018 Hon. E. David Burt: Good morning, Mr. Speaker. Mr. Sp eaker, I am introducing the following Bill, which , according to section 36(3) of the Bermuda Constitution, requires the Governor’s recommenda-tion, so that it may be placed on the Order Paper for the next day of meeting: the Land Tax Temporary Amendment Act 2018.
The SpeakerThe SpeakerThank you, Mr. Premier. Minister Wilson. PSYCHOLOGICAL PRACTITIONERS AMENDMENT ACT 2018 Hon. Kim N. Wilson: Thank you, Mr. Speaker. Mr. Speaker, I am introducing the following Bill for its first reading so that it may be placed on t he Order Paper for the next day of meeting, namely, the …
The SpeakerThe SpeakerThank you, Minister. OPPOSITION BILLS
The SpeakerThe SpeakerThere are none. PRIVATE MEMBERS’ BILLS
The SpeakerThe SpeakerThere are none. NOTICES OF M OTIONS
The SpeakerThe SpeakerThere are none. ORDERS OF THE DAY
The SpeakerThe SpeakerWe now move to the Orders of the Day. And, Mr. Premier, you can have the floor and lead us into the continuation, so to speak, of our Budget pres entation. And we will have our r eply t oday. And once again, for the public who are listening via …
We now move to the Orders of the Day. And, Mr. Premier, you can have the floor and lead us into the continuation, so to speak, of our Budget pres entation. And we will have our r eply t oday. And once again, for the public who are listening via live stream, as we did last week with the live streaming of the presentation of the Budget [Speech ], this session of the Reply to the Budget [ Speech] will also be live streamed, to give fairness to both sides. And we encourage the public to listen in via radio and live stream. Mr. Premier, you have the floor. MOTION APPROVAL OF THE ESTIMATES OF REVENUE AND EXPENDITURE FOR THE YEAR 201 8/19 Hon. E. David Burt: Thank you, Mr. Speaker. Mr. Speaker, I move that the Estimates of Revenue and Expenditure for the Year 2018/19 be approved.
The SpeakerThe SpeakerThank you, Mr. Premier. Does anyone wish to speak to that? I recognise the Leader of the Opposition. Honourable Member, Ms. Atherden, you have the floor. Bermuda House of Assembly THE OPPOSITION’S REPLY TO THE BUDGET 2018/19 Hon. Jeanne J. Atherden: Mr. Speaker, the Premier, the Minister of Finance, had …
Thank you, Mr. Premier. Does anyone wish to speak to that? I recognise the Leader of the Opposition. Honourable Member, Ms. Atherden, you have the floor.
Bermuda House of Assembly THE OPPOSITION’S REPLY TO THE BUDGET 2018/19
Hon. Jeanne J. Atherden: Mr. Speaker, the Premier, the Minister of Finance, had previously indicated that in the previous audience there would be seniors, un iversity students, husbands and wives listening t o his speech. I would say, directly to those same people, that we will be looking out for you as well. I would also indicate to them that it is not about the programme that is supposed to be introduced; it is about what they actually do. We will be the wat chdog to make sure that promises are kept.
Introduction
Hon. Jeanne J. Atherden: Mr. Speaker, I rise today to deliver the Opposition R eply to the Government’s 2018/19 Budget Statement in Support of the Est imates of Revenue and Expenditure, delivered last week. The OBA laid the foundation for the Premier’s budget for the upcoming year , and other people agree with me. The OBA had a strategy to lead Bermuda out of debt , and the evidence suggests that it has been successfully executed. The OBA Government deli vered on: • hotel investment ; • creation of the Bermuda Tourism Authority ; • the America’s Cup; • increase in tourism arrivals ; and • the airport redevelopment . The Bermuda Tourism Authority’s (BTA) fi gures, recently released, show that the 2017 results were extraordinary. The release noted that 2017 brought the highest number of visitors to the Island in recorded history and stated that the total arriv als for that period ( 692,947) represent “the best statistical performance dating back to 1965. ” The BTA release also indicated that “ In 2017, the 35th America’s Cup played a critical role in driving demand and higher vis itor spending, not only in May and June but throughout much of the year .” The release stated that “Bermuda’s Tourism industry has been on a path for growth since 2015, after decades of decline, the America’s Cup helped to acc elerate the growth trajectory .” Mr. Speaker, the America's Cup was one of the most im portant projects which the OBA G overnment reali sed. It had a significant and positive economic impact on all Bermudians. This was despite significant and vitriolic criticism from the PLP Oppos ition and deafening silence from the PLP Gov ernment. This outstandi ng fiscal performance is borne out in the America’s Cup Review Report , which co nfirms the overall positive impact of this historic event on Bermuda and Bermudians. It should be noted that the America’s Cup Review Report has not yet been formally released t o the public. As well, the Gover nment has not acknowledged that the expenditure on this event produced the desired results and was a fi scally prudent risk/reward revenue growth option. This tourism success was also coupled with success in other critical ec onomic areas. The Berm uda Economy 2017: Updated Review , released in early December, reported that there was an increase in the total value of new construction projects started and that employment income increased. Additionally, there was significant revenue growth resulting from the collection of higher payroll taxes and customs duty. Mr. Speaker, the OBA has paved the way. We have brought Bermuda this far. Bermudians are rel ying on the Government to take us the rest of the way. The OBA is on guard. And Ber muda is waiting to see that this happens . As the Opposition, we will use our Parliamentary Questions to get answers on what the Government promised to do and make sure that it ac-tually results . . .
[Inaudible interjections ]
The SpeakerThe SpeakerGentlemen, gentlemen. Gentlemen, gentlemen. The Reply may continue on. Hon. Jeanne J. Atherden: Thank you, Mr. Speaker. I will restate. We will use the opportunity of Parliamentary Questions to get information on the programmes and to get a clarity as to whether they are achieving the outcomes. Because whatever the …
Gentlemen, gentlemen. Gentlemen, gentlemen. The Reply may continue on. Hon. Jeanne J. Atherden: Thank you, Mr. Speaker. I will restate. We will use the opportunity of Parliamentary Questions to get information on the programmes and to get a clarity as to whether they are achieving the outcomes. Because whatever the Government promises, it is very important that —
Hon. Zane J. S. De Silva: Point of order, Mr. Speaker.
POINT OF ORDER Hon. Zane J. S. De Silva: This is just clarification. This is not in our books , what s he is reading right now.
[Inaudible interjections]
The SpeakerThe SpeakerMember, the presentation is a Reply to the Budget. They are writing their reply. Their vie wpoint may not necessarily be the same as the Gov-ernment’s viewpoint. But she is presenting her vie wpoint. [Inaudible interjection]
The SpeakerThe SpeakerShe adlibbed a comment that was basically her view of the interpretation. You will have your chance to correct it on your feet later. Thank you. Continue on, Member. Hon. Jeanne J. Atherden: Mr. Speaker, with your indulgence, I would like to just go back. Because I 1040 23 February …
She adlibbed a comment that was basically her view of the interpretation. You will have your chance to correct it on your feet later. Thank you. Continue on, Member. Hon. Jeanne J. Atherden: Mr. Speaker, with your indulgence, I would like to just go back. Because I 1040 23 February 2018 Official Hansard Report
Bermuda House of Assembly would hate to think that someone missed the point that I was making. The OBA is on guard, and Bermuda is waiting to see this happen. As the Opposition, we will use our Parliamentary Questions t o get the answers as to how these funds have been used. We will also begin to comment on the impact of the programmes on the people of Bermuda. And it is very important that we understand that it is not just about money being spent; it is really about programmes and how the people of Bermuda are impacted by these. And that is why I think it is very important to realise that we are not just talking about the dollar aspect; we are actually talking about the impact. The Premier made a lot of reference to the people out there who the Government wanted to make sure got off the sidelines and actually got to be part of the mainstream and got jobs. And I want the people of Bermuda to know that, as the Opposition, we will make sure that the Government delivers on it s promises. Mr. Speaker, when one really studies the 2018/19 Budget , we are struck by two important factors. Firstly , the 2017/18 results are really the OBA results because of when the new Government came to power. Sec ondly , the 2018/ 19 Budget is built up on many policy initiatives started under the OBA Go vernment. The proposed new PLP growth initiatives are uncertain, especially as there are no revenues attributed t o them in the current year ’s Budget. Mr. Speaker, on page 7 of his S tatement, under the heading Austerity vs. Growth , the Premier and Minister of Finance frames the choice faced in [ Government ] budgeting. Instead, the choice faced by Bermuda in early 2013 was between continued PLP insolvency and financial survival. We chose the latter. And Premier Burt , Minister of Finance, stands here as the beneficiary of that choice. The OBA stopped the decline in the economy by improving the efficiency of government without laying off government workers. We brought public spending under control, while ensuring key investm ents in Bermuda and her people. The former OBA Government also stimulated a number of investments, such as the following: • Morgan’s Point ; • The Loren; • continuation of extensive renovations to the Hamilton Prin cess; • St. George’s Hotel ; and • the airport redevelop ment . These projects resulted in creation of jobs for Bermudians, and other benefits which have been felt by single parents, couples, university students , and senior citi zens. Mr. Speaker, let us now address the 2018/19 Budget Estimates. T he Government is estimating $1.09 billion of revenue, which is up by $47 million from last year’s estimate, or $45 million from last year’s revised figure. Three key assumptions are dri ving this esti mate: 1. an increase in land tax charged on commer-cial prope rties; 2. adjustments for notional remuneration under payroll tax; and 3. increased customs revenues . A major portion of the revenue increase ($15 million ) will be coming from the increase in land tax charged on commercial properties. This policy is be-ing pursued instead of the contemplated new tax on commercial rents. The introduction of this temporary measure serves to highlight the complexity and lead time required to make changes to the various forms of taxation. It also raises the concern as to whether this becomes a flow -through tax depending on the terms of the lease, impacts on local competitiveness and vacant commercial properties in the City of Hamilton. Unfortunately, the commercial real estate market is down with fewer renovations and fewer capital pr ojects. Adjustments for notional remuneration impact a small segment of our working population. But it is the second -largest revenue increase of $10 million , and it comes from the adjustment for the basis for notional remuneration for payroll tax where the new def inition will be on income received on a cash basis . For too long, some firms have sought to avoid responsibly paying their fair share. We support this as an equit able tax rise. However, our concern centres on the i mplementation of the tax, on Gover nment’s ability to collect these taxes and on the pressures that this init iative will place on the Office of the Tax Commissioner. We look forward to further information from the Government on this. Thirdly, and extraordinarily, the Government is banking o n the level of customs duty continuing at the 2017/18 level , and even on its increasing. Rather amaz ingly, the PLP —in Opposition and then in Go vernment —has refused to acknowledge the phenom enal impact of the America’s Cup to the Bermudian economy. And yet, they are continuing to hope for the America’s Cup dividend to continue to deliver g overnment revenue. It is simply not realistic to expect this in a year where there will be no America’s Cup and no other signifi cant revenue event. Mr. Speaker, i t would be remiss of me not to acknowledge Government’s Tax Reform Commission, of which I am a member. I embrace the commission's goals and, like every Bermudian, look forward to concluding our review expedi tiously. Finally, I do raise, briefly , Government’s pr oposed sugar tax. As is always the case, the devil will be in the detail. We cannot meaningfully comment on this in the absence of further information as to what will be t abled, what levels of taxes will be set out, and how this will be implemented. To that end, we look forward to the results of the current consultation pr oBermuda House of Assembly cess and to what policy proposals will result. Howe ver, I do note with interest a clear commitment to a sugar tax in the Budget Statement without any clear statement of its effect on g overnment revenues and expenditures in the upcom ing financial year.
Current Expenditures
Hon. Jeanne J. Atherden: Mr. Speaker, turning to projected expendi tures, the B udget Statement does raise a few questions. We see a projected increase of 3 per cent in salari es, wages , and employer overheads. Are these projections realistic in light of the recently announced agreement to a 2.5 per cent i ncrease in public sector pay , which is to be back dated to the 1st of April 2017? Mr. Speaker, w e note that the Premier has pledged to increase pensions for our seniors by the rate of inflation. We applaud this initiative. As the OBA has stated in the past, it is important that increases in pensions be tied to the cost of living. However, it is important that we cannot keep pushi ng these issues down the road, and efforts should be made to ensure the long- term sol vency of our pension plans . The Premier stated that he will provide $500,000 to restart a solar rebate programme with a focus on seniors on low or fixed incomes , in order to reduce their electricity bills. Mr. Speaker, t his would be of benefit only to seni ors who (1) own their own homes; and (2) take on major upfront expenditures, before they will ever see a benefit. We question whether this is realis tic. We also applaud the Government’s efforts to establish a programme of limited government guarantees to support the development of senior residential facilities. In fact, this appears to have been lifted d irectly from our election manifesto promise to provide incentives to local construction companies and deve lopers to build senior care facilities and to renovate existing ones. We congratulate the Government for honouring the former Government's commitment to return the $25 million subsidy for hospital care for children, ind igents, and seniors this budget year. It is regrettable that the Government erroneously attributed the cut to a desire by the former Government to fund America's Cup, which was not the case. As the former Gover nment , we supported the hospital and worked clos ely with it as it progressed its sustainability. We are en-couraged that the Government has stated its aim to implement higher reforms in health system financing , as this is something that we were committed to as a way to reduce the cost of health care in B ermuda. Mr. Speaker, we would not want to see the cost of health care go up. Health care is the largest expenditure, after debt. This is a cost which impacts on the quality of life for everybody in Bermuda. And I must stress that. It is the largest cost of government expenditure after the debt. And if it goes up, it impacts the quality of life for all people in Bermuda. On the question of education, the OBA fully supports the attainment of proper education standards within our schools. We promised before t he election last year to create a Centre of Teaching Excellence, to enhance the teaching skills, lesson content , and classroom management. It is for this reason that we are disappointed that the c urrent Government will be slashing funding for improved educ ational standards by 35 per cent. The education of our children is fundamental to producing productive, positive, and respectful cit izens. Education is also fundamental to shaping, both locally and globally, a preferred direction for the future of our Island. Our education system must therefore be one that ensures that our students are equipped with the knowledge and skills they need to be successful in a rapidly changing society. Progress in learning is strengthened when our students, parents, teachers, principals, support staff , and our broader community all have a clear understanding of what must be done to achieve this chosen future for Ber muda. In light of this, Mr. Speaker, we are delighted that the PLP Government followed through with the development Plan 2022: Bermuda Strategic Plan for Public School Education. This plan highlights the si gnificant work that the Department of Education has to undertake to deliver a transformational vision for pu blic education which will ensure that every young Bermudian should be educated to the level that will en able them to compete and lead locally and gl obally. Mr. Speaker, I would be remiss at this time if I just did not highlight the fact that when you look at Government and you look at what Government is r equired to do, it is very important that we understand that the monies that Government accumulates is to take care of those things that the public expect that it should do on their behalf. And one of those things is education. And I am struck by the fact that yout h believe that Government should educate them, because they know that it is the way that they can get jobs. And we have been talking very much about jobs, and I heard someone across the aisle talking about jobs. And as we go forward, we will continue to talk about jobs. But we understand that education is a way to get there. And the youth are actually expecting us to d eliver on that promise, as the Government. The plan’s priorities include enhancing teac her practice and leadership, improving infrastructure , and ensuring student career and workforce readiness. But very little implementation details were provided. In light of this, the Government must provide more details and resources that will demonstrate how these stated priorities will be implemented and delivered. Mr. Speaker, it is very clear to us the Premier and Finance Minister indicated that his Budget was going to be transformational. And he attributed the fact that he believed that the former Government’s 1042 23 February 2018 Official Hansard Report
Bermuda House of Assembly budgets might have been transactional. But I have to remind everybody who is in the hearing of my voice that “ transactional ” and “ transformational ” all are the same things; they are ideas that a government wants to work on. But until you actually see the results, until you actually see that the goals that are in these plans actually result in changes in the status of the individ uals, the status of those seniors, the status of those university students, the status of those people without jobs, there is really no difference between transform ational an d transactional. They are just goals that are aspirational of Government. It is crucial that this plan be a complete blu eprint for the future and not just an aspirational dream. To deliver on this plan, there has to be strong leader-ship that will actively champion the recommendations showcased therein. This means that there has to be a clear understanding and acceptance that the change required can be performed only by an individual who is transformational, not transactional. Accordingly, this will require a restructuring of the Department of Education to ensure that staff are equipped and able effectively to deliver the strategies outlined in the plan. Mr. Speaker, it is vital that an organisational restructuring be considered because it is, from a gov-ernance perspective, the first rung on the ladder of reform for the Department of Education —and it is cri tical for the effectiveness and success of the plan. While change is never easy, a realignment of the existing staffing will signal the advent of a new era in the delivery of education in Bermuda. The senior management team must include those individuals who can create the best and most effective team. To achieve effective implementation, there should be a director of education —or education commissioner —a dir ector of finance, a director of IT services, a quality assurance director, and a director of communications. It is this team that would drive the objectives set out in the new plan and provide the necessary resources to enable the Permanent Secr etary of Education to effectively support our students, teachers, and the Minister of Education. We note with concern that the staffing of the Office of the Tax Commissioner (OTC) does not appear to have been increased. And, in light of the si gnificant accounts recei vable and the projected changes in tax categories which will inevitability result in new, complex procedural issues, we wonder how this will be managed to ensure that the “ single point of failure ” in the tax collection system —the OTC —does not continue to i mpact negatively on revenue collection and, thus, on cash flow. Mr. Speaker, this is very significant because we all know and it has been acknowledged that there are major revenues out standing.
Capital Expenditures
Hon. Jeanne J. Atherden: Mr. Speaker , we note that $58 million has been spent in the first six months while $67 million has been budgeted for the full year. We also note that significant funding has been earmarked for the trash trucks, and this has not been used. Yet, we are somehow to believe that current issues with the collection of trash are to do with underinvestment by the OBA Government. Where the Government has capital headroom, they have not used it, and instead they want to blame us for not investing. We believe that the time for “ politricks ” has to end, and the excuse of blaming us will increasingly ring hollow in the months to come.
Public Works
Hon. Jeanne J. Atherden: Mr. Speaker, the Gover nment hopes to move from private buildings into go vernment property. However, they are going to hire significantly more people on the government payroll. We have to raise the question, how can they fit more people in a smaller space? It appears unrealistic. Are there plans for renovations to the old police station or to the old Department of E ducation? We wonder whether these were going to be acknowledged and amplified by the Government.
Infrastructure
Hon. Jeanne J. Atherden: Mr. Speaker, what is i nteresting is that the Minister of Finance makes no mention of the Bermuda Infrastructure Fund. He announced the fund’s creation in November last year under the management of Fortress Investment Group LLC. Given that the Government is potentially on the hook for some management fees, I find it extraordinary that there is not a mention of this fund or of any ancillary work related to it in the Budget Statement. This could lead outsiders to question whether this in itiative was ever viable to begin with.
Global Conditions
Hon. Jeanne J. Atherden: Mr. Speaker, the Fiscal Responsibility Panel in their 2015 Annual Assessment specifically identifies the following major risks to Bermuda: • Uncertainties in the tourist industry . • Uncertainties in the financial services and i nsurance industries —risks from global initiatives in f inancial regulation and tax cooper ation. They acknowledge that one risk, the threat of action against jurisdictions offering opportunities for financial crimes, appears to have been successfully addressed thanks to the efforts to upgrade Bermuda’ s system of financial regulation and anti -money laundering. I note that, of course, because this is som ething that is going to
Bermuda House of Assembly hold us in great stead go ing forward and something that the OBA worked very hard on. • Events in global capital markets. With its high level of government debt with relatively short matur ities, Bermuda is , of course, vulnerable to the likel ihood of rising dollar interest rates. And I stress that, with debt interest already accounting for 13 per cent of the annual rev enues , it is easy to see how this could , by itself , lead to further downgrades by rating age ncies. The assessment goes on to state as follows: “In these circumstances, we therefore believe . . .” And it said “the Government,” but I am inserting the OBA Government because it was the OBA Gover nment that they were refer ring to at the time. “In these circumstances, we therefore believe the [OBA] Go vernment is right to have committed to achieving budget balance (on the Government’s preferred definition) by 2018/19, and thereafter take further steps to r educe net debt." I t hink it is important to note that the Government had indicated that it was going to ba lance the Budget by 2019. And therefore, it does not seem to me as if they have been able to keep that promise. Our reliance on inward investment may be comprised by some of the events that helped to shape 2017, as Americans are finding it more attractive to invest onshore. Mr. Speaker, with the express aim of bringing businesses back to the USA, the [US] corporate i ncome tax rate has been dropped to 21 per cent from 35 per cent. The question is, how does Bermuda mit igate against this new threat to our international bus iness? Equally, how does Bermuda safely take ad-vantage of the new Bitcoin industry?
Foreign Debt
Hon. Jeanne J. Atherden: Mr. Speaker, who would have thought that, in a short 10 years, national debt has become the most -talked- about line item in the review of government expenditure? We all can r emember that the explosion of private sector borrowing corresponded with the overheating of the economy. That overheating drove property prices, rents, and general prices up, and produced a glut in office buil dings and some types of residential units. Mr. Speaker, I think it would be helpful to remind Bermudians how we got ourselves into this current debt situation. I would ask you to cast your mind back to when, in my opinion, we started down the slippery slopes. Firstly, the PLP Government of the day stim ulated an already heated economy. This was compounded by changing the definition of “ public debt .” Public debt used to include loans owed by gover nment, plus guarantees given by government. As the Government accumulated deficits and needed to raise its statutory debt ceiling, instead of adjusting its cei ling, the Government of the day chose to “ move the goal posts ” by c hanging the definition of public debt to exclude guarantees. This is where we find ourselves today. Mr. Speaker, as every household in Bermuda knows, interest on debt has to be paid. Today, the national debt requires Government to pay interest at the rate of $340,000 a day. Every Bermudian needs to be aware that a significant part of every tax dollar raised by the Government will go to servicing debt. This leaves less to pay for government services, i nvestments, and public service pay. Mr. Speaker, I am reminded that, ever since the Government has pr oduced the Budget , and in advance of our delivering the Budget response, lots of Bermudians have become acutely aware of the fact that if we did not have to pay as much for debt, there would be more money availab le to them to turn and put on the pr ogrammes —
The SpeakerThe SpeakerLet me just interrupt you for one m inute. I have been trying to be lenient with you. Hon. Jeanne J. Atherden: Sorry, Mr. Speaker.
The SpeakerThe SpeakerI have been trying to be lenient with you in that y ou are doing an extra amount of adlibbing over what is printed before us. Hon. Jeanne J. Atherden: Understood.
The SpeakerThe SpeakerIt is normally customary that the deli very is in line with what is printed before us. So I want to bring that to your attention. It is under Standing Order 19(7). I did have the Clerk go out and just confirm this before I inter-ceded. She has just come …
It is normally customary that the deli very is in line with what is printed before us. So I want to bring that to your attention. It is under Standing Order 19(7). I did have the Clerk go out and just confirm this before I inter-ceded. She has just come back with the confirmation that I was seeking. So I am mindful of the fact that you should stick to what has been printed.
Hon. Jeanne J. Atherden: Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you. Hon. Jeanne J. Atherden: That is fine, Mr. Speaker. I will stick to the brief. I know that my colleagues are able to turn around and pick up any other items that we feel are important. And I thank you for that. [Inaudible interjections ] Hon. Jeanne J. …
Thank you.
Hon. Jeanne J. Atherden: That is fine, Mr. Speaker. I will stick to the brief. I know that my colleagues are able to turn around and pick up any other items that we feel are important. And I thank you for that.
[Inaudible interjections ] Hon. Jeanne J. Atherden: And I am right at the point that I think is important, and I will just go back. As every household in Bermuda knows, interest on debt has to be paid. Today, the national debt requires Government to pay interest at the rate of $340,000 a day. Every Bermudian needs to be aware that a significant part of every tax dollar raised by the Government will go toward servicing its debt. This leaves less to pay for government services, inves t1044 23 February 2018 Official Hansard Report
Bermuda House of Assembly ments, and public service pay. The sooner we reduce our budget deficit and get our debt problem under control, the sooner we will reap the benefits of debt reduction such as faster economic growth, enhanced employment opportunities, and faster wage growth. We will have more flexibility to spend our money the way we want —to address Bermuda’s priorities, and to meet the needs of all of our people in the near term and for the future. The PLP made a clear commitment to balancing Bermuda’s Budget by 2019. The Budget Stat ement makes it clear that they have failed! They have pushed back this commitment to 2021. Given the PLP’s past record for failed revenue and expense pr ojections, we cannot even trust that this delayed commitment will be met. This is unfortunate, given that Bermuda’s credit agencies will be paying close attention. Mr. Speaker, mindful of the fact that it is i mportant that people look at what has been presented, if you turn to the last page which shows actual deficits against original estimates, you will see why this statement has been made. Mr. Speaker, on page 7 of his Budget Statement, the Finance Minister tried to mischaracterise the OBA’s time in government. In d oing so, he may have accidentally made an important point. He stated, “You continue to spend as you a lways have, without worrying about cutting back. You simply borrow more money to maintain your unaffor dable lifestyle, while doing nothing to improve your si tuation. While you may be living, you are living on bor-rowed time.” Mr. Speaker, t his statement provides ev idence that previous fiscal mismanagement by the PLP left us in significant debt and reminds us of their past inability to adhere to their budgets (i.e., references on the graph that is at the back). However, we remain hopeful that the Minister appreciates the i mportance of remaining on the glide path set forth by his predecessor, Bob Richards, as Minister of F inance.
Domestic Economy
Hon. Jeanne J. Atherden: Mr. Speaker, all indicators confirm that Bermuda is at an economic turni ng point. After consecutive quarters of growth, Bermuda has just seen two quarters of contraction. Is this a blip that can be reversed by government action, or is it the start of a recession that Bermuda must prepare for? The Ministry of Finance is lowering its 2017 GDP growth estimate by 0.75 per cent, which itself follows a marginal GDP contraction of 0.1 per cent in 2016. The 35 th America’s Cup [AC 35gave Bermuda a $330 million boost to the Island’s economy, and this event came in nearly $13 million under budget. Pr ofessional services firm PwC conducted an indepen dent economic and social impact assessment on the event, stating that the sailing event, which was orig i-nally forecast to cost the Island $77 million, ended up $12.9 million under budget. This represents a 525 per cent return on investment, including future tourism revenue. This means that for every dollar of the $64.1 million spent, $5.25 is being returned into Bermuda’s economy, resulting in the generation of extra revenue for residents and loca l businesses and residents, as well as providing additional wages for our local wor kers. The benefits and objectives of AC 35 will be rea lised over years to come, and, by necessity, will r equire careful stewardship and collaboration. We must continue to nurture every ounce of value from the i nvestment to ensure the continued maximisation of this significant investment opportunity. Mr. Speaker, the PLP Government continued to reap the America’s Cup dividend for the second half of 2017/18, which was delivered to them by the OBA. It will be key to see how things unfold moving forward and whether the PLP will be able to leverage this i mportant aspect of the OBA’s legacy, which they inher-ited, for future economic gains. The gross turnover generated by retail stor es increased by 2.9 per cent in 2017, while jobs in the sector rose by 0.7 per cent. Building material stores experienced the highest growth fuelled by increases in construction activity. The Government’s stamp duties projected revenues are highly optimist ic. [Real estate] sales have dropped since the election, as have construction projects, which will lead to lower stamp duties and payroll taxes. In 2017, international business provided 3,838 jobs in the economy, reflecting a growth of 0.2 per cent year ov er year. Foreign exchange earnings over the nine months increased by $54.4 million. As noted in the 2017 National Economic Report of Bermuda, “This sector creates benefits to the Bermudian economy by way of jobs for Bermudians and revenues for local businesses. It also pr ovides business visitors that support the tourism industry and provides government with revenues from taxes and fees.” Over the first three quarters of 2017, the BMA [Bermuda Monetary Authority] registered 33 new insurers.
Tourism
Hon. Je anne J. Atherden: The Bermuda Tourism Authority, established in 2013, had its genesis under the direction of the late Shawn Crockwell, the former Minister of Tourism and Transport. For the first time in Bermuda's history, our tourism product is being gui ded by an independent, private enterprise. The year 2017 brought 692,947 visitors to the Island. That is the best statistical performance [recorded] since [1965]. Additionally, year -end hotel occupancy passed the 60 per cent mark for the first time since 2007. The Southampton Princess recently announced that it expects 2018 to be a “bumper” year.
Bermuda House of Assembly Employment
Hon. Jeanne J. Atherden: The 2017 National Ec onomic Report of Bermuda states that the number of jobs is estimated to have grown by 0.1 per cent. The conclusion in the 2018/19 Budget Statement that “this marginal level of job growth is disappointing, given the hopes that the America's Cup would stimulate the economy and employment.” This conclusion is equally disappointing and perhaps reflects the Governm ent’s bias towards the America's Cup and its impact. Of course, no one from the PLP Government mentions that 2017 was the second consecutive year that the number of jobs has increased since 2008. It also co nveniently fails to mention that a significant dri ver—
[Inaudible interjections ]
The SpeakerThe SpeakerMembers! Hon. Jeanne J. Atherden: It also conveniently fails to mention that a significant driver of recent decreases in jobs filled owes much to the OBA’s programme of voluntary early retirement, which saved significant cost to the public purse. The net increase in positions filled—40 jobs — is a composite …
Members!
Hon. Jeanne J. Atherden: It also conveniently fails to mention that a significant driver of recent decreases in jobs filled owes much to the OBA’s programme of voluntary early retirement, which saved significant cost to the public purse. The net increase in positions filled—40 jobs — is a composite of 67 jobs shed in public administration and 54 jobs shed in education, health, and social work. (One can presume that this 121- job decline was part of the previous government's civil service hea dcount reduction without termination so that perhaps the net increase should be deemed to be 300 per cent higher.) Additionally, employment income increased, which in turn drove significant revenue growth, resul ting from the collection of higher payroll taxes and customs duty. During the first three quarters of 2017, the value of new projects started rose from $87 million in 2016 to $537.5 million, an increase of 517.8 per cent. The Bermuda Economy 2017: Updated Econom ic Review, released in early [December,] reported that there was an increase in the total value of new con-struction projects started. Mr. Speaker, the Government has produced a Budget Statement that is very aspirational. Although they have identified what decisions they have made with respect to the various policy options identified in the pre- budget report, in many cases the impact on revenues has not been clarified. On the expenditure side, while the Ministry highlights provide a basic r eview, much more i nformation on implementation would have provided clarity of timing and impact of initiation. Mr. Speaker, Premier Burt states in his Budget Statement that his Government will be “transform ational” and that he will open the gates of economic growth to more and more Bermudians through ec onomic diversification and greater opportunity. He as-serts that “a diversified economy will help us, as a s o-ciety, break down from the systematic inequality that has marred the Bermuda economic miracle.” The Budget , as suggest ed, will (and I quote): • “See us invest in Ber mudians ; • bring fairness to our tax system; • scrap outdated policies . . . which are a barrier to true empowerment; • place Bermuda toward economic growth, economic diversification, and economic sec urity for all Ber mudians .” We know the “ what ,” but Bermuda deserves to know the “ how.” Perhaps more fundamentally, the Budget Statement has failed to relate this back to the funda-mental question at the forefront of the minds of Ber-mudians: JOBS. The Premier has provided us with grand plans for the creation of new industries. But can the Minister of Finance provide us with a clearer indication as to how many jobs will be created and as to the quality of jobs which Bermudians can expect?
[Inaudible interjections]
The SpeakerThe SpeakerMembers! Hon. Jeanne J. Atherden: Mr. Speaker, this Budget does not deliver on all of its promises. Many of the policies presented are entirely “ aspirational ” in nature. They have not been properly fleshed out. These pr oposals are normally found in el ection manifestos and Throne Speech Statements. …
Members!
Hon. Jeanne J. Atherden: Mr. Speaker, this Budget does not deliver on all of its promises. Many of the policies presented are entirely “ aspirational ” in nature. They have not been properly fleshed out. These pr oposals are normally found in el ection manifestos and Throne Speech Statements. As an example, the Premier states that he will welcome global law firms to Bermuda. What does he mean by this? Where are the specifics? Bermuda has always been welcoming to global firms. This is not a new ide a. We know nothing about how this would be different from what came before. The most concrete commitment we have is a process of “ consulting” with industry. This process is ordinarily very intense, extensive, and timeconsuming. This is especially so if the stated intent is not only to make Bermuda’s economy more compet itive and to stimulate additional investments in Berm uda, but also to require (and I quote) “participation” opportunities and progress for Bermudians. The cha llenge here, as we see it, is how to determine which Bermudians get the opportunities. It raises the poss ibility of a form of discrimination or preference, espe-cially if one has to be a special category of Bermudian. Mr. Speaker, all Bermudians are hopeful that they will get the benefit. We then get an additional commitment to “consulting” on expanding the types of banks that can operate in Bermuda. This is another Throne Speechtype initiative which will not see any effect on employment or investment growth this fiscal year. We also quest ion whether the Premier has properly investigated the economic implications of this initiative. Would new banks realistically come to Ber1046 23 February 2018 Official Hansard Report
Bermuda House of Assembly muda? Would there be significant new business to attract new banks? Or would this simply divide exis ting levels of bank ing needs amongst more partic ipants? As is always the case with new industries or new businesses in Bermuda, we need to be vigilant about protecting the aspirations of Bermudians in the job market. Levels of non- Bermudian staff . . . suff icient Bermudians will have to be properly prepared for, and factored into the workforce development planning process. There is not enough detail to com-ment sensibly on the policy proposal. Past efforts have not been successful, so more is needed before we can understand further. Mr. Speaker, the Premier also announced that he is seeking to scrap the 60/40 rule in order to opt for a 40/60 rule instead. To be clear, we are talking about a policy that has traditionally required that local companies be majority -owned by Bermudi ans. The Premier himself noted that a number of Bermudians are out of work due to consolidation and globalisation —in the banking sector. Banks were some of the earliest movers and shakers who sought a relaxation of the 60/40 requirements (started under a PLP Government, I might add). Removing r estrictions on ownership leads companies to adopt a more capital efficient model of business. In other words, outsourced jobs are a real possibility. A reasonable person might hear the proposal and ask, Is he selling out Bermudians ? The jury is out on this policy initiative. Unfortunately, since we have no greater understanding of the nuts and bolts of this policy, Bermudians cannot meaningfully understand the initiative. (Although it does appear that we will have anot her “ consultation” or strike up another “committee ” or “plan to have a plan. ”) Only a few days later, however, in comments reported in the media, the Premier has already ap-peared to be backtracking from this idea. He says now that we will be moving at a (quote) “slow pace.” We have no information as to timelines, which once again causes us to question whether the policy has been thought through. How do you tap into the potential already here? That question arises. Whether it removes a bar-rier to true empowerment depends upon “ who” decides to take advantage of the opportunity. We believe that Bermudians have an entrepreneurial spirit and a desire to try new things. The number of small bus inesses set up just to take advantage of the America’s Cup opportunity demonstrates this —especially since a number of these pop- ups went on to become perm anent new businesses. If the Government wants to create conditions and opportunities that usher the (quote) “left -behind from the stands and sidelines to the playing field,” it will be absolutely essential to see how the Government regulates entry. At the current time, prior experience or demonstrated ability plays a big part in the process. The country is hopeful. Mr. Speaker, the Government is not clear on how it hopes to st imulate investment from PRC [permanent resident certificate] [holders]. As an aspir ational goal, yes, we would agree that PRC [holders] should invest their money in Bermuda and create jobs and opportunities rather than remit overseas. But, how will the Gov ernment achieve this? I do believe that we need to keep in mind that PRC [holders] are in a different position to that of ot her non- Bermudians who may be looking for an of fshore jurisdiction in which to invest. What might be worthwhile for one group may not work for the other. With this in mind, it remains to be seen what will make it worth their while for PRC [holders] to invest further in Bermuda. Of course, the fact that these individuals have obtained PRC status is an indication of their commitment to B ermuda. However, the simple reality is that PRC [holders] will not invest in Bermuda if they do not feel that that they can be fully integrated into Bermudian society. Additionally, there is aggressive competition for foreign direct investment from other j urisdictions seeking to attract new investors. Just as Bermuda is in constant competition with other jurisdictions offering international business services, so too will we be in competition with other jurisdictions for inward inves tments. All Bermudians ne ed a clearer understanding from the Government as to how it hopes to different iate Bermuda from these competing jurisdictions. From construction workers to boardrooms, and from single mothers to the less -well-off in society —we all need clarity as to where the Government wishes to lead us. Mr. Speaker, the Government wants to diversify the Bermuda economy. A laudable aspirational goal, yes. However, what will be the extent of job cr eation for Bermudians? How will this be achieved? We are told that the Government is moving with urgency with respect to blockchain and digital currencies. Ot her countries are grappling with the proper regulation of these new technologies. Regulators the world over have taken a dim view of these developments. Just this week, the Governor of the Bank of England, Mark Carney, stated that Bitcoin has failed as a currency. The haste with which Government is moving here raises some concerns. The timing is key, as Bermuda is preparing for an impending CFATF [Caribbean Financial Action Tas k Force] assessment. Great care is needed to avoid any harm that could be caused if Bermuda is not properly prepared for digital currencies. The introduction of new industries reminds us that the Government has made no mention of the state of the gaming industry, other than noting that it will provide additional funds for the Bermuda College to provide gaming industry training. Mr. Speaker, Government wishes to reserve 20 per cent of capital spending for companies that meet the empowerment criteria under ne w procur ement policies. This is commendable and is quite sim ilar to the OBA Government’s policy initiatives of r eBermuda House of Assembly serving 20 per cent of capital spending for small bus inesses. Let me repeat that: This is commendable and is quite similar to the OBA Government’s initiatives of reserving 20 per cent of capital spending for small businesses. The Government states that it will ensure that contracts are given to firms that have traditionally been unable to compete with the scale of large companies. This points to a focus by the Government on the size of companies. However, we would hope that broader issues of diversity are encouraged. For ex-ample, Government can use its purchasing power to follow the new Code of Practice for Project Management and Procurement, whic h states that the Go vernment will “use its purchasing power to promote equality of opportunity with regard to disability, gender, and race.” We hope that the Government will not be paying lip service. We would expect more regular reporting than that which is proposed by Government, such as on a quarterly basis. We would also expect such reporting to adopt appropriate and meaningful metrics to ensure that Government is meeting its stated objectives and to ensure that contractors are accountable for the funds which they receive. In the 2017/18 Budget, the OBA Government spelled out clearly how it was going to give more tax breaks to lower - and middle- class Bermudians while keeping a neutral impact on the Budget . The OBA tax reforms would have increased breaks on those ma king between $60,000 and $139,000 per year, where the majority of Bermudians find themselves. In order to offset these reductions, those earning more than $139,000 per year would have paid more, thus creat-ing a more equitable and progressive tax system. This progressiveness is missing from the Budget of a socalled “ Progressive ” Labour Party Government. Mr. Speaker, I stand here as Leader of the Opposition. I know that the OBA has paved the way. We have brought Bermuda this far. Bermuda is relyin g on the Government to take us the rest of the way. Mr. Speaker, all Bermudians, including the single mother, the struggling families, the university student, and the senior citizen, want to see Bermuda continue on a sustainable footing. The policies that result in concrete benefits for the people are welcome. Providing hope is to be applauded, but being fiscally responsible is DEMANDED . In the future, we will not just simply hold the Government accountable on the numbers spelled out within their Budget, but also in the commitment to their policies. The success of this will be measured by the outcomes that are provided to those Bermudians who feel disenfranchised or are on the sidelines of success. These measures should be reported quarterly to ensure that t he goals are met. Mr. Speaker, the people of our Island expect us to do the right thing for them, for their children, and for future generations of Bermudians. Thank you, Mr. Speaker. The Speaker: Thank you, Madam Opposition Leader, for your presentation of the Reply to the Budget Statement. We will now move on to the first Member who is going to speak as we enter into the economic D ebate on the Budget . And I am pausing for one minute just to allow . . . They are dismantling . Are you okay here? Good. Okay. For those who are watching the live stream, that ends the live streaming, and we go back to our normal presentation on the Budget , to the normal debate which will be aired over the radio waves. I do recognise the Honourable Junior Minister of Finance. Honourable Member Furbert, you have the floor.
DEBATE ON THE BUDGET STATEMENT AND REPLY TO THE BUDGET
Hon. Wayne L. Furbert: Thank you, Mr. Speaker. Mr. Speaker, this morning, I will be nice and stay focused on where we —
The SpeakerThe SpeakerPlease do, please do. Hon. Wayne L. Furbert: Well, we have listened to a Reply, probably of all of the years I have been here, probably the most un- inspirational Reply I have ever listened to. And this was demonstrated by the actual Members inside not even clapping their [hands] …
Please do, please do. Hon. Wayne L. Furbert: Well, we have listened to a Reply, probably of all of the years I have been here, probably the most un- inspirational Reply I have ever listened to. And this was demonstrated by the actual Members inside not even clapping their [hands] or stamping their [feet]. Every Budget Reply I have been to, and I have been here for a while, [Members] have always stamped, even when they did not want to.
[Laughter]
Hon. Wayne L. Furbert: But this shows that there was something lacking in inspi ration going forward. As a matter of fact, I said to a colleague of mine, That Reply was not written by the Honourable Grant Gi bbons. And if he did, he had very, very few words to say in there. Mr. Speaker, I can guarantee that everybody is going home tonight in their bed, and America’s Cup is going to be appearing in their brains.
[Laughter]
Hon. Wayne L. Furbert: America’s Cup, America’s Cup. As if that was the actual way for our future. But we will talk very soon about the $6.3 million that we have to pay for the next umpteen years. Mr. Speaker, I have to correct a few things the Honourable Member . . . and maybe the Honourable Member did not read the response from her former Minister of Finance, but the information that the Member said (and I refer to her talking about the America’s Cup) is on page 6. 1048 23 February 2018 Official Hansard Report
Bermuda House of Assembly An Hon. Member: It is on every page.
Hon. Wayne L. Furbert: Yes, it was on every page, but this in particular. She said, “It is regrettable that the Gover nment erroneously attributed the cut to a des ire by the former Government to fund the America’s Cup, which was not the case.” Well, I refer the Honourable Member to the former Minister, on page 40, in 2017/18, who said, “In May and June Bermuda will host the 35th America’s Cup. In order to deliver o n our contractual commi tments and promises, the total Government budget for America’s Cup . . . is estimated to be $31.8 million.” Then he goes on to say, “Mr. Speaker, during the finalisation of budgeting packages for the 2017/18 budget, Ministers have r equired extra funding.” But here is the key part. They say, Mr. Speaker, “the [above] increases and others were partially offset by reductions in other expenditures, with the most not able being a one -off $25 million reduction in the Government’s annual funding to the Bermuda Hospitals Board.”
Some Hon. Members Some Hon. MembersOh! Oh, oh, oh! Yes! [Inaudible interjections] [Desk thumping] Hon. Jeanne J. Atherden: Mr. Speaker, point of order.
The SpeakerThe SpeakerJunior Minister, I would ask you to yield. We have a point of order. Point of order from the Opposition Leader. POINT OF ORDER [Misleading] Hon. Jeanne J. Atherden: The Junior Minister is mi sleading the House. While those two statements were said, the Statement did not say that the …
Junior Minister, I would ask you to yield. We have a point of order. Point of order from the Opposition Leader.
POINT OF ORDER [Misleading] Hon. Jeanne J. Atherden: The Junior Minister is mi sleading the House. While those two statements were said, the Statement did not say that the $25 million by which the Minister reduced the budget estimates for the hospital were directly attributed to America’s Cup. That was not said.
The SpeakerThe SpeakerThank you. Junior Minister. Hon. Wayne L. Furbert: But, Mr. Speaker, I refer to page 40. And the words said, “the above increases. ” Now, I am a mathematician. I am not too bad at Eng-lish. But “the above increases,” talks about the i ncreases of the America’s Cup expenditures.
Some Hon. Members Some Hon. MembersYes! Yes. Yes, yes, yes. Hon. Wayne L. Furbert: Had to do with taking— and just taking it out! Twenty -five million dollars came from where?
An Hon. Member An Hon. MemberThe hospital. Hon. Wayne L. Furbert: Hospital. So you have looked at the budget for the actual America’s Cup. It was pretty close to that. And my point is, that is where it came from. No matter what you say, it came from the Hospitals Board. [Inaudible interjections ]
The SpeakerThe SpeakerMembers, Members, Members. Continue on. Continue on. Stay on track. Hon. Wayne L. Furbert: The Honourable Member referred to— Hon. Jeanne J. Atherden: Point of order, Mr. Speaker. Point of order.
The SpeakerThe SpeakerWe will take the point of order. POINT OF ORDER [Misleading] Hon. Jeanne J. Atherden: Sorry, Mr. Speaker. The Honourable Member is still misleading the House, because the Minister of Finance clarified in recent statements that it was not related to America’s Cup. This was due to the Bermuda Hospitals …
The SpeakerThe SpeakerI am going to try and assist here. Honourable Member, your comment you just made gave a little clarification in that you said that he recently stated that. The document that the Member is reading from is a document that was put out at the time, and he is reading …
Some Hon. Members Some Hon. MembersYes. Yes!
The SpeakerThe SpeakerAs reported to the House. Continue on. Hon. Wayne L. Furbert: Mr. Speaker, I have no problem with the actual Member saying that the hospital had extra funding. That is why they took the money, because they felt that it was extra funding. And she was the Minister of Health. …
As reported to the House. Continue on.
Hon. Wayne L. Furbert: Mr. Speaker, I have no problem with the actual Member saying that the hospital had extra funding. That is why they took the money, because they felt that it was extra funding. And she was the Minister of Health. The Honourable Member was the Minister of Health.
[Laughter]
Hon. Wayne L. Furbert: If you did not have any extra fund you could not take it. So I took it because it was extra funding . That is why it says the above increases
Bermuda House of Assembly I took from the Hospitals Board. Now, I can lay it here for the House, and you can read it yourselves, you know. But, you know . . . so, it is on page 40 of the Honourable Member’s former thing. Now, here is another point, Mr. Speaker. The guarantee which the Member talked about on page 13, “Firstly, the PLP Government of the day stimulated an already heated economy. This was compounded by changing the definition of public debt.” Well, if we changed it, I do not know. Maybe it was before 2012. When did we change it? We were the Government —
[Inaudible interjection]
Hon. Wayne L. Furbert: That is my point. Before 2012, we were Government. What happened between 2013 and 2015, 2016, 2017? You never changed it back.
Some Hon. Members Some Hon. MembersAh! Hon. Wayne L. Furbert: You never changed it back. And you thought it was wrong. If you thought it was wrong, you should have changed it back. If you thought it was wrong, you should have changed it back. But on top of that . . . on top …
Ah!
Hon. Wayne L. Furbert: You never changed it back. And you thought it was wrong. If you thought it was wrong, you should have changed it back. If you thought it was wrong, you should have changed it back. But on top of that . . . on top of that, Mr. Speak-er, they have $165 million guarantee up at Morgan’s Point. They do not want to include that in the debt. Did you, Honourable Member, Mr. Gibbons? All right. Here we go.
Hon. Jeanne J. Atherden: Point of order, Mr. Speaker.
The SpeakerThe SpeakerWe will take your point of order. POINT OF ORDER [Misleading] Hon. Je anne J. Atherden: The speaker is misleading the House in the sense that —
The SpeakerThe SpeakerThe Junior Minister. Hon. Jeanne J. Atherden: He is indicating that the Government only changed this and should have changed it right back. But he is not making clear t hat once you are at a certain debt level you just cannot turn around and say that you are going …
The Junior Minister. Hon. Jeanne J. Atherden: He is indicating that the Government only changed this and should have changed it right back. But he is not making clear t hat once you are at a certain debt level you just cannot turn around and say that you are going to go back down in terms of the funds that you have available to you.
The SpeakerThe SpeakerThank you for your opinion. Continue on, Junior Minister. Hon. Wayne L. Fu rbert: Mr. Speaker, that is the most confusing statement I have ever heard. That stat e-ment is confusing, because the Honourable Member, if I recall, increased the debt ceiling after 2012.
Some Hon. Members Some Hon. MembersYes. You are right! Hon. Wayne L. Furbert: You increased the debt cei ling after 2012. So my point is that if you felt that that part should be included in it, you just have increased it more. That was up to you.
Some Hon. Members Some Hon. MembersAh! Hon. Wayne L. Furbert: You say that we kept it. It was compounded by changing the definition of “public debt.” That public debt used to include loans owed by the government, plus guarantees given by the go vernment. If you felt it was wrong, you had four years to …
Ah!
Hon. Wayne L. Furbert: You say that we kept it. It was compounded by changing the definition of “public debt.” That public debt used to include loans owed by the government, plus guarantees given by the go vernment. If you felt it was wrong, you had four years to change it. But you did not do it. Anyway, the Government . . . that is why I say that is why probably nobody clapped over there.
An Hon. Member An Hon. MemberThey had a pop- up shop giving away guarantees.
The SpeakerThe SpeakerOkay, Members. Hon. Wayne L. Furbert: Mr. Speaker, they talked about the balanced budget of 2019/20. And since we have been there we have looked at those numbers and the impact that it will have. And I heard the Honourable Member talk about the impact of the 20 per cent …
Okay, Members.
Hon. Wayne L. Furbert: Mr. Speaker, they talked about the balanced budget of 2019/20. And since we have been there we have looked at those numbers and the impact that it will have. And I heard the Honourable Member talk about the impact of the 20 per cent of the . . . I call it the “ Trump Bill, ” tax Bill. We have taken into consideration so man y different facets that were not there in the system of last year. It was not there. So the Government came in and, being pr udent, looked at how can we move things forward. And payroll tax for the employer has had a profound i mpact on creating jobs here i n Bermuda. So it would have cost the Government . . . it would have cost the Government . . . sorry. It would have collected $26 million from the employer, $26 million on the proposal that you were putting forward. If we had done that number, and I am assu ming that at least some of the Honourable Members were there when the Honour able Member Bob Richards had some discussions with IB [international business]. They were very, very upset. And the impact on IB, on retail . . . I mean, retail came to us and want ed a reduction now back to what it was before. So we had to listen. And despite what the OBA is saying, Mr. Speaker, I was not elected by the OBA. So I am normally a person who listens to the ordinary people on the street. And what do they say? By and large, the majority of Bermudians are saying that the budget was extremely good— not perfect. We could have done some things better, but by and large. That is why is very hard for the One Bermuda Alliance to actually respond to this Budget. And they have been a ll over 1050 23 February 2018 Official Hansard Report
Bermuda House of Assembly the place talking about a few things, but really had no depth in the Reply. So, Raymond Hainey, from the Royal G azette, said, a great step forward, so far, so good. The Editor of the Royal Gazette said, “A bold step to drag Bermudian economy into t he modern world.” And Bob Stewart —
An Hon. Member An Hon. MemberOh! Oh, wow! Hon. Wayne L. Furbert: I said to the Honourable Member, Mr. Stewart, I said, Mr. Stewart, you know, I was confused. I had to read it about three times to make sure that it came from you.
Hon. Dr. E. Grant GibbonsAnd that didn’t worry you? Hon. Wayne L. Furbert: And I said, I was going to call you up and tell you that somebody had forged your name. But he said, “Burt opens his Budget i nnings with a straight bat.” With a straight bat. And I know it upset …
And that didn’t worry you?
Hon. Wayne L. Furbert: And I said, I was going to call you up and tell you that somebody had forged your name. But he said, “Burt opens his Budget i nnings with a straight bat.” With a straight bat. And I know it upset so many people on the other side. The response from this community has been extraordinary. Now I accept, and we will get to some of the things going forward on some of the optimism and hope!
An Hon. Member An Hon. MemberYes! Hon. Wayne L. Furbert: If you do not build hope, where there is no vision. The people perish. And the bottom line is that the One Bermuda Alliance lacked vision. If they would have implemented the budget that the Honourable Member Bob Richards had planned to do this year, …
Yes!
Hon. Wayne L. Furbert: If you do not build hope, where there is no vision. The people perish. And the bottom line is that the One Bermuda Alliance lacked vision. If they would have implemented the budget that the Honourable Member Bob Richards had planned to do this year, increase in payroll tax, i ncrease in employee tax, GST [general services tax], product expenses, we would not have been in a per iod of hope. So we laid out, basically . . . and I like this one here, Mr. Speaker. It says, and this is coming from the Chairman of the Chamber of Commerce. Mr. Wright said, “ The Budget has some bold . . . initiatives such as revisions to the 60/40 ownership rules in Bermuda which should improve access to capital for Bermuda’s entrepreneurs to support the growth of small and m edium sized businesses which in most economies drives the most job growth. ” Mr. Wright describes the budget as “thoughtfully prepared” —“thoughtfully prepared and well ba lanced.” Those are mainly your supporters.
An Hon. Member An Hon. MemberYes. Hon. Wayne L. Furbert: But the r esponses coming from individuals have been significant. Now, Mr. Speaker, how did we get here where we are? [Inaudible interjection] Hon. Wayne L. Furbert: Mr. Speaker, we could go on and talk about preparing the budget and managing the budget , because …
Yes.
Hon. Wayne L. Furbert: But the r esponses coming from individuals have been significant. Now, Mr. Speaker, how did we get here where we are? [Inaudible interjection]
Hon. Wayne L. Furbert: Mr. Speaker, we could go on and talk about preparing the budget and managing the budget , because the election was called in June of last year. So they had really just two months of managing the budget , and we have had over six to seven months of managing the budget . So who do you think, Mr. Speaker, had the most influence on [the budget], whether it w as two or seven [months]? Even my granddaughter, at four, knows that seven is more than two.
An Hon. Member An Hon. MemberDo you understand momentum? Hon. Wayne L. Furbert: Mr. Speaker, the Honourable Member, the Premier, said we are not competing. That is where I want to go to in this thing. We are not competing with the One Bermuda Alliance to see who can be the managers of the status …
Do you understand momentum?
Hon. Wayne L. Furbert: Mr. Speaker, the Honourable Member, the Premier, said we are not competing. That is where I want to go to in this thing. We are not competing with the One Bermuda Alliance to see who can be the managers of the status quo. Because that is what we were doing for years, managing the status quo. I do not want to . . . I do not want the people . . . all right. I will say it right now. And we were managing. In 1994 . . . that was a famous year for the Honourable Member Grant Gibbons. Because at that time he had something called the hospital levy — hospital levy. And then in 1995 it went up to the pa yroll t ax. It went from $64 million in hospital levy to $112 million in payroll tax revenue, of over 100 per cent increase in that year. And this payroll tax had been around our neck from 1995 to the present scenario. And it has [been] proven that the payroll ta x has been prohibitive for growth.
An Hon. Member An Hon. MemberA millstone. Hon. Wayne L. Furbert: A milestone [sic]. It has been significant. It has been where . . . it has been a “cow” where we did not want to touch anything else.
An Hon. Member An Hon. MemberCorrect. Hon. W ayne L. Furbert: There are millions of dollars, Mr. Speaker, floating around in this little country called Bermuda.
An Hon. Member An Hon. MemberBillions. Hon. Wayne L. Furbert: Billions. Yes, you are abs olutely right. But there are certain things that we want to touch. We will only touch those things that touch l abour. We will only touch things that normally people buy on duty. And so, those individuals have been hampered …
Billions.
Hon. Wayne L. Furbert: Billions. Yes, you are abs olutely right. But there are certain things that we want to touch. We will only touch those things that touch l abour. We will only touch things that normally people buy on duty. And so, those individuals have been hampered from 1995 to 2016 under a former Government. Unfortunately, I sat in that room. But I was not t he Minister of Finance.
Bermuda House of Assembly Hon. Dr. E. Grant Gibbons: Neither was I.
Hon. Wayne L. Furbert: Yes, you were.
Hon. Dr. E. Grant GibbonsNot in 1994. Hon. Wayne L. Furbert: In 1995. I said the payroll tax. I did the payroll tax. [Crosstalk ] Hon. Wayne L. Furbert: Mr. Speaker, the payroll tax. And the Honourable Member can get up and speak about it later on. [Inaudible interjections] Hon. Wayne L. Furbert: All …
Not in 1994. Hon. Wayne L. Furbert: In 1995. I said the payroll tax. I did the payroll tax. [Crosstalk ] Hon. Wayne L. Furbert: Mr. Speaker, the payroll tax. And the Honourable Member can get up and speak about it later on. [Inaudible interjections] Hon. Wayne L. Furbert: All I am saying to you is that the payroll tax has been a prohibitive of growth for such a very long time —very long time. And my Premier has said that we want to do something that caused what? Growth in this country! If it is not growth, we do not want it! And so, Mr. Speaker, we had to . . . and the second time, Mr. Speaker, that we have ever had a pre-budget. No one has ever done it before! The first time the Honourable Premier, who was the Junior Minister of Finance . . . no other Government has ever prepared a pre- budget.
An Hon. Member An Hon. MemberWow. Hon. Wayne L. Furbert: No other Government (and I will say it again) has ever prepared a pre- budget. First time in 2012, the second time in 2018, under former Junior Minister of Finance, the Honourable David Burt, and now as Premier and Minister of Finance. It is about …
Wow.
Hon. Wayne L. Furbert: No other Government (and I will say it again) has ever prepared a pre- budget. First time in 2012, the second time in 2018, under former Junior Minister of Finance, the Honourable David Burt, and now as Premier and Minister of Finance. It is about talking and listening. And I think that is what really carried the day. It is about talking to individuals and not just saying, We are going to shove this down your throat and go forward . So, Mr. Speaker, it is said that this Budget will lay the economic foundation needed to change the economi c status quo that has failed so many. It has failed so many! If we had stayed on the path that the Honourable Member Bob Richards was going to head down, we would have stayed [with] the status quo. Payroll taxes once again. Why? Because the status quo has lacked vision, it has lacked courage. It is not about . . . because the status quo has failed the majority of the people of this country on the way we were going for-ward. So, Mr. Speaker, this Government decided not to just . . . decided to do something about where we were heading.
Hon. Jeanne J. Atherden: Point of order.
The SpeakerThe SpeakerYes. We will take your point of order. POINT OF ORDER [Misleading] Hon. Jeanne J. Atherden: I believe that the speaker is—
Some Hon. Members Some Hon. MembersThe Honourable Member. Hon. Jeanne J. Atherden: The Honourable Member, the Junior Minister, is misleading the House in the sense that he is saying that the previous Government never came up with any changes, and therefore we were stuck with payroll tax. The general services tax, which was the idea …
The Honourable Member. Hon. Jeanne J. Atherden: The Honourable Member, the Junior Minister, is misleading the House in the sense that he is saying that the previous Government never came up with any changes, and therefore we were stuck with payroll tax. The general services tax, which was the idea which was implemented by the Government, was also put into place. And the current Government tried to pursue it. So it was something. The general services tax was an option that the prev ious Government had been exploring and which the current Government tried to continue. So to say that nothing had been put in place other than payroll tax is misleading.
The SpeakerThe SpeakerThank you. Junior Minister. Hon. Wayne L. Furbert: Mr. Speaker, I did not say “nothing”. I said the continuation of payr oll tax. And what this Government plans to do, and with your help on the Tax Commission, is to bring down payroll tax for the employer. That is our …
Thank you. Junior Minister.
Hon. Wayne L. Furbert: Mr. Speaker, I did not say “nothing”. I said the continuation of payr oll tax. And what this Government plans to do, and with your help on the Tax Commission, is to bring down payroll tax for the employer. That is our goal.
[Desk thumping]
Hon. Wayne L. Furbert: That is a goal going forward. All right? And the amount you receive from service [GST], I think it was probably $3 million or $5 million, that would not have paid for a cup of tea.
[Laughter]
Hon. Wayne L. Furbert: So the payroll tax was good. It was something, $400 million. It was something that you could grab hold of. And that is why no one wanted to give it up, because it was assured. That is why they speak about, they are not sure where the money that we have now put forward, where it is coming from. And I will get back to that point very soon.
[Inaudible interjection] Hon. Wayne L. Furbert: Yes. Because we are coming after you, the Honourable Member. [Inaudible interjections and laughter ] Hon. Wayne L. Furbert: In order for Bermuda to succeed, this is what was put in the Progressive Labour 1052 23 February 2018 Official Hansard Report
Bermuda House of Assembly Party electi on platform. In order for Bermuda to succeed we need to return our economy to a path of balanced growth that creates jobs, provides rising i ncome and assists our budget challenges. It is our be-lief that a better environment must be created in which Bermudi an businesses can thrive; opportunities for Bermudians can be created, and in which capable, qualified Bermudians can earn opportunities to work, train, and succeed at every level. Mr. Speaker, I believe that was the found ation. That was the foundation that has driven the Pr ogressive Labour Party in the direction that it should be heading in. So the pre- budget was to go out there and have a discussion with those affected. We laid out our idea as far as the pre- budget. And the individuals whom we talked to, so you would be well aware of, we had meetings with the unions. We had meetings with ABIC and ABIR. We had meetings with the Chamber of Commerce. We had meetings with taxi drivers. We had meetings with retailers. We had meetings with the real estate divis ion, entrepreneurs, accounting firms, law firms, town hall meetings, single mothers, seniors, Mr. Speaker, and the list goes on and on. So when we laid out our pre- budget report and said, These are some of the items we were thinking about, and they said to some of us, Why don’t you think about this?, it was no shame to say, Well, we will consider that. And so I believe, based on those princ iples, the budget that you have before the country t oday is something that was put together not only by the Progressive Labour Party, but by the people involved making suggestions. So the principles of the fiscal policy that we laid out were to prudently manage the fiscal risk, maintain the government’s debt and continued liabil ities at prudent levels, and ensure that fis cal policies contribute to the achievement of adequate national savings. Mr. Speaker, we have to take into consider ation global economic conditions. We talked about the recent tax reform in the United States, or the EU’s [European Union] list of non- cooper ative tax jurisdi ctions, the CFATF, the Caribbean Financial Action Task Force assessment. We have taken into consi deration the ageing population, the high cost of living here in Bermuda, Bermudian emigrants as economic refugees, job growth was a marginal 40 jobs from 2016 to 2017. And you have a . . . Mr. Speaker, 2012. When the One Bermuda Alliance took over the reins in Bermuda there were 35,443 jobs. Do you reme mber the big promise of creating 2,000 jobs?
Some Hon. Members Some Hon. MembersYes. Hon. Wayne L. Furbert: Anyone can add two to five. My granddaughter can add five and two, which makes seven, which means that you should have been at 37,443. Mr. Speaker, I am embarrassed to say that the jobs, as of 2017, were not 2,000 more, but 2,000 less—33,521. …
Yes.
Hon. Wayne L. Furbert: Anyone can add two to five. My granddaughter can add five and two, which makes seven, which means that you should have been at 37,443. Mr. Speaker, I am embarrassed to say that the jobs, as of 2017, were not 2,000 more, but 2,000 less—33,521. Now, I do not know whether they were subtracting, or whether they said add. I have not read that part in their platform, or whether there was som ething about subtracting 2,000 or adding 2,000. But, clearly, it went the other way. In other words, there is a 4,000 difference, going forward. In other words, it should have been 37; it went down to 33. So, Mr. Speaker, we have some major concerns. So here are some of the new Government policies that will get us there: Tax Reform Commi ssion, Bermuda First, Bipartisan Commi ttee on Imm igration Reform, Parliamentary oversight, Bermuda Infrastructure Fund, living wage. Mr. Speaker, it is these things that, at the end of the day, we have to consider. Now, the Honourable Member talked about stimulating investment. These are some of the things that we are looking into. Global law firms, right? I am not sure that the Honourable Member knows that the Bar Association . . . been fighting them since day one. And the Honourable Member sitting next to you would be aware of that, as a mat ter of fact, to such a degree that they are going to the courts. But this Government has made it clear that we want further growth in this economy. And there is no reason why we cannot have law firms here that are going to bring new business. The Applebys and the Conyers are all around the world. They are all around the world. As a matter of fact, when I was the Minister of Economic Development in 2012, I met . . . I think it was CDP [Conyers Dill & Pearman] at the time in Hong Kong. And I think Appleby was in China. I said to them, Why can’t other law firms operate in Bermuda? Not to take away some of the work of Bermudians, but to bring business here? And so, the vision that was laid out by the Progressive Labour Party is moving forward. Expansion of banks. We will look at the opportunity of whether we should increase other types of banks here in Bermuda. You have heard before the revision of the 60/40 rule, revising height restrictions. These are sound policies that the Government will visit. And if it is in the best interest of Bermuda, we will move it forward embracing new technologies, FinTechs and blockchain and digital currencies, and the list goes on. Yes, I heard the Honourable Member talk about that the reserving of 20 per cent capital for ind ividuals who had never been affected before, and they said it came out of their policy. It was never done. Mr. Speaker, they gave some, but it never reached 20 per cent. It never reached 20 per cent, never reached 20 per cent. Never reached 20 per cent!
[Inaudible interjection] Hon. Wayne L. Furbert: That is my point.
Bermuda House of Assembly The Honourable Member says, yes, they gave maybe $1 million. I do not know. But it was not 20 per cent. In other words, it was not 20 per cent of the capital, which was, let us say $6 million. Twelve million dollars capital to those individuals who had never been impacted before. And, as a matter of fact, that 20 per cent did not come from the One Bermuda All iance. It came from the United Bermuda Party. That is where it came from. It came from the United Bermuda Party. And so, you know, I am not even going to tell you who is the person sitting in the room at the time who made the suggestion.
Hon. Dr. E. Grant GibbonsWho was that? Hon. Wayne L. Furbert: It was not you. [Laughter] Hon. Way ne L. Furbert: It was not you.
An Hon. Member An Hon. MemberI know that. I know that! [Laughter] Hon. Wayne L. Furbert: It was not you. The Honourable Member said, Who was it? But it was not Honourable Member Grant Gibbons. All right? [Inaudible interjection] Hon. Wayne L. Furbert: No, no, no. No, no. They were not thinking like that. No, …
I know that. I know that! [Laughter]
Hon. Wayne L. Furbert: It was not you. The Honourable Member said, Who was it? But it was not Honourable Member Grant Gibbons. All right?
[Inaudible interjection]
Hon. Wayne L. Furbert: No, no, no. No, no. They were not thinking like that. No, no, no, no, no. No. No, no.
[Inaudible interjection]
Hon. Wayne L. Furbert: Yes. Obviously, the Honourable Member Trevor —Trevor . . .
An Hon. Member An Hon. MemberMoniz. Hon. Wayne L. Furbert: Moniz. Oh, sorry. Yes, you did not want him there. [Laughter] Hon. Wayne L. Furbert: So, Mr. Speaker . . . Mr. Speaker, and that is true. The Honourable Member Trevor was aware of that. [Inaudible interjections and laughter ] Hon. Wayne L. Furbert: Mr. …
Moniz.
Hon. Wayne L. Furbert: Moniz. Oh, sorry. Yes, you did not want him there. [Laughter]
Hon. Wayne L. Furbert: So, Mr. Speaker . . . Mr. Speaker, and that is true. The Honourable Member Trevor was aware of that.
[Inaudible interjections and laughter ]
Hon. Wayne L. Furbert: Mr. Speaker, I said to Honourable Members, read my book. They will unde rstand. They will understand. They will understand the fight between those two. [Laughter]
Hon. Trevor G. Moniz: Point of order, Mr. Speaker.
The SpeakerThe SpeakerWe will take the point of order. POINT OF ORDER Hon. Trevor G. Moniz: The Honourable Member was suggesting I was sitting next to him in Cabinet. It was a mirage. It was not me. [Laughter]
The SpeakerThe SpeakerMember, continue on. Hon. Wayne L. Furbert: Thank you. Thank yo u, Honourable Member Moniz. Hon. Trevor G. Moniz: My reputation grows all the time. [Laughter] Hon. Wayne L. Furbert: So, Mr. Speaker, the performance, as I said before, is that seven years, seven months of managing by the Progressive …
Member, continue on.
Hon. Wayne L. Furbert: Thank you. Thank yo u, Honourable Member Moniz.
Hon. Trevor G. Moniz: My reputation grows all the time.
[Laughter]
Hon. Wayne L. Furbert: So, Mr. Speaker, the performance, as I said before, is that seven years, seven months of managing by the Progressive Labour Party has had some impact on the results of this fiscal year. No doubt. You cannot say that decisions made by the Minister of Finance did not have an impact on it.
Hon. Dr. E. Grant GibbonsGive me an example. Hon. Wayne L. Furbert: Mr. Speaker, the Honourable Member would know that there are certain decisions that a Minister of Finance can make that have impact.
The SpeakerThe SpeakerSpeak to the Chair. Speak to the Chair. Speak to the Chair. [Inaudible interjections] Hon. Wayne L. Furbert: Mr. Speaker, ending March 31 st, 2018, the public debt will stand at $2.5 [billion]. The net debt will stand at $2.42 [billion]. Mr. Speaker, I am sure that most of Bermuda …
Speak to the Chair. Speak to the Chair. Speak to the Chair.
[Inaudible interjections] Hon. Wayne L. Furbert: Mr. Speaker, ending March 31 st, 2018, the public debt will stand at $2.5 [billion]. The net debt will stand at $2.42 [billion]. Mr. Speaker, I am sure that most of Bermuda would be happy to know that the position of this Government is not to increase debt, not to increase the public debt to over the 2.5. That is remarkable. Now, I am not going to say that the One Bermuda Alliance did not have anything to do with it, going forward. I am not going to say that. All right? I am not going to say that. But the question is not where we come from. But, Mr. Speaker. The question is, where do we go. Here is one of the biggest problems that we have had over the years, and why I believe that the 1054 23 February 2018 Official Hansard Report B ermuda House of Assembly country has run into deficits for such a long time. If you look at the numbers within the amount of revenue that we extract per GDP, that is very key, Mr. Speak-er. The amount of revenue that we have extracted between GDP has been averaging between 16 and 17 per cent. That has been what we have been extrac ting. We are one of the lowest countries, [what we] actually extract in amount of revenue per GDP. Now, if we are able to get up to what the Fiscal Responsibility Panel said, somewhere between 20 and 22 per cent, and the Honourable Leader of the Opposition would realise . . . I am not supposed to say what came out at the meeting. But the point is that we want to go somewhere between 20 and 22 per cent next year. It would be nice. Hence, why the Tax R eform Committee. Do you know what we would raise in reven ue if we got it somewhere between 20 and 22 per cent based on GDP? Just on 20 per cent we will be at $1.2 billion! As a matter of fact, it is 1.3, based on the FS, because I said I am averaging 6 billion. We will be 1.3 just on the 20 per cent. You know we will pay for our expenditures, our capital. And we will be able to start paying down significantly on the debt. But it is going to take us all, recognising that the system that we have had in place for such a long time has been unfair. It has been un-fair!
An Hon. Member An Hon. MemberYes! [ Desk thumping] Hon. Wayne L. Furbert: For those who have been able to get away from paying significant amounts of income . . . Now, people say that we do not want an income tax. Well, there are a lot of other things that we can attack that …
Yes! [ Desk thumping] Hon. Wayne L. Furbert: For those who have been able to get away from paying significant amounts of income . . . Now, people say that we do not want an income tax. Well, there are a lot of other things that we can attack that do not affect. And so why are we talking about the notional? The notional has to be done away with. It has to be done away with. Honour-able Member Trevor Moniz, a lawyer who walks out of the room, would realise that lawyers pay a notional. It is a notional. And so they may say that a notional amount is about $300,000 for a partner, just use that for an example. Or $300,000 for a partner in an ac-counting firm, just use that for an example. But they have taken another $1 million or $1.5 million. So where the average Bermudian is paying 100 per cent on their income, individuals have been for years —for years —getting away and not paying the amount. So what this Government has decided is to do away with the notional and go up to a cap of $900,000. [Des k thumping] Hon. Wayne L. Furbert: If you are making over . . . You make $1 million, okay, 100 we will not tax you. But the 900? We are coming after you. And there are a lot of 900s out there. Hence, that is why I said to the Honourable Member Grant Gibbons, Well, maybe it is time that we will be coming after you. [ Inaudible interjections and laughter ] Hon. Wayne L. Furbert: All right? We are going to find it. We will find it. And yes, we understand that there are tax specialists out there, Mr. Speaker, who will be trying to duck and weave and hide behind the sheet, and hope that some term . . . because how they have done it, Mr. Speaker, as an accountant is that, you know, we will set up a company. And let us say we are making $1 million gross . . . well, not gross. A million dollars. And let us say we net a half a million. We will pay ourselves a little old nominal fee of $100,000 in salary and then declare such a thing called a dividend. It was self -evident at the very beginning; we knew that the purpose was to escape from paying that payroll tax. That was the purpose, Mr. Speaker! And so, that is what tax specialists and accountants and lawyers do. That is their job. So for years . . . can you imagine, Mr. Speaker, if we had been going after this amount? For years, this country would be booming as far as flowing in money, and milk and honey. The Cayman Islands ran into troubles in 2009. The amount of money they were taking, based on GDP, was I think about 18 per cent, 18 or 19 per cent. They are now taking 24 and 25 per cent. And you know what that means? [It means] that they have surpluses , because they are able to take more. So somebody . . . the Honourable Premier, woke up and said, We are going to go after some more, because if we had stayed on the same path as the Honourable Bob Richards and the former OBA Government, we would have not been able to extract that revenue. We would still be going after labour through salary, through taxes, payroll tax, which is predominant, and duty. Bottom line. So it is time for those who make more to pay a little more, fairer.
Some Hon. Members Some Hon. MembersYes! Hon. W ayne L . Furbert: What i s wrong if you earn $1 million and paying 5 per cent on a million dollars? What is wrong with paying $50,000 more?
An Hon. Member An Hon. MemberCo me on, Grant. What is wrong? Hon. Wayne L. Furbert: There is nothing wrong with that. It is not cruel. It is perfectly right. So yes, we have in our Budget that next year may be a deficit. But if we can get it right, Mr. Speaker, if the …
Co me on, Grant. What is wrong? Hon. Wayne L. Furbert: There is nothing wrong with that. It is not cruel. It is perfectly right. So yes, we have in our Budget that next year may be a deficit. But if we can get it right, Mr. Speaker, if the Honourable Opposi tion Leader and I get it right, sitting on that certain committee, we will be flowing with milk and honey. [ Laughter and inaudible interjections ]
Bermuda House of Assembly Hon. Wayne L. Furbert: To get things right. Hence, we start paying on the debt, because you know a debt affects our ratings. Hence, affects the companies that will come here. We all know that. We know that. So, Mr. Speaker, the vision of the Progressive Labour Party and the Premier and the Minister of Finance is to move that dial in the other direction and to say, It is time. Enough is enough. It is time for everybody to pay a fair share. Now, we have still got to work out a few things. So you ask how we are going to get it. And I mean to make it very clear to you. The amount of numbers that we understand is s omewhere between $10 and $20 million in that deemed employee portion. Ten to twenty. Do you know how much we budgeted for? A conservative number of $10 million. Ten million. That is the conservative number. So they asked us (we wanted to be conservative), where are we going to get it from. It is $10 million. But if we hit that jackpot and it is $20 million, and I am going to get the Honourable Member Grant Gibbons’ bigger portion, I am coming. That is my point.
[Laughter]
Hon. Wayne L. Furbert: The point is that . . . and let me make it very clear. Each party, every party around here has failed on the OTC [Office of the Tax Co mmissioner]. I heard the Honourable Member say it a few times . . . Well, how are we going to collect it? Well, we have got to tig hten up. We have not had an auditor out there knocking on doors for year, and sa ying, Let me check your payroll tax calculations. [Inaudible interjectio n]
Hon. Wayne L. Furbert: It has not been in place for years, the Honourable Member, not in place for years. And it was under your Government, that they never checked.
[Inaudible interjection]
Hon. Wayne L. Furbert: They never checked under the Honourable Member’s Government. All right? The vacant positions were so vacant, that is why they ne ver gave y ou . . . just vacant. So, Mr. Speaker, this year we are budgeting for a deficit of $89 million, down from the budget last year of $134 million. Mr. Speaker, our debt service should come down. Mr. Speaker, as I said before the good news, our debt ceiling i s currently at $2.5 [bi llion]. And, Mr. Speaker, we will not hope to increase that. Mr. Speaker, they talk about that famous i sland up there called the Cross Island. Mr. Speaker, are you aware that this year we are bound to pay $6.3 million, the highest c apital expenditure by this Go vernment? Yes, 6.3. The Government borrowed $39 million. They borrowed $39 million. By the time the debt is paid off . . . as a matter of fact, interestingly enough, it gets to a point where you say you have got to pay the $21 million up front.
[Inaudible interjection]
Hon. Wayne L. Furbert: Well, I am glad the Honourable Member said, Well, we are negotiating. Because at the point we are to pay it off, it goes from 39 up to about $48 million between debt service and the pri ncipal. And then we would still owe $21 million.
Some Hon. Members Some Hon. MembersAh! Yes. Hon. Wayne L. Furbert: I want to say that we will probably end up paying . . . borrowing 39, paying . . . I mean, we will probably end up paying $68 –70 [mi llion]. So, you had bet ter pray that we do get that deemed- …
Ah! Yes.
Hon. Wayne L. Furbert: I want to say that we will probably end up paying . . . borrowing 39, paying . . . I mean, we will probably end up paying $68 –70 [mi llion]. So, you had bet ter pray that we do get that deemed- to-be employee, that we could pay it off.
[Inaudible interjection] Hon. Wayne L. Furbert: No, we are looking at it correctly. We are looking at it —
[Inaudible interjections ] Hon. Wayne L. Furbert: It is going to be much higher than the amount. And so we have an island up there growing grass, and, as somebody said, so they can walk their dogs on.
[Inaudible interjections]
Hon. Wayne L. Furbert: Well, there is nothing . . . Mr. Speaker, that one Honourable Member s aid we have to—
The SpeakerThe SpeakerMembers, keep your conversations going toward the Chair. [Crosstalk] Hon. Wayne L. Furbert: —we have to make payment s.
The SpeakerThe SpeakerMember, do not get distracted. You are only going to get taken off course. Speak to the Speaker. [Inaudible interjections ] Hon. Wayne L. Furbert: Mr. Speaker, the Fiscal R esponsibility Panel said, “Payroll tax will become an increasingly problematic source of income as Berm uda’s comparative advantages to international …
Member, do not get distracted. You are only going to get taken off course. Speak to the Speaker.
[Inaudible interjections ]
Hon. Wayne L. Furbert: Mr. Speaker, the Fiscal R esponsibility Panel said, “Payroll tax will become an increasingly problematic source of income as Berm uda’s comparative advantages to international companies as a place to do business is eroded through r eductions in rates of corporate tax elsewhere.” 1056 23 February 2018 Official Hansard Report
Bermuda House of Assembly That is a very interesting statement, and, hence, why we had to pause and not increase payroll tax for international business. Because the whole idea . . . there is no payroll tax for the employer. And, as you know, that the tax . . . most of the international business pays for the employee. So when you adjust the amount that is being adjusted for lower end, then they are not. So, what do we have in mind, Mr. Speaker?
[Inaudible interjection]
Hon. Wayne L. Furbert: So, what do we have in mind, Mr. Speaker? Mr. Speaker, this Government is working with IB to increase the number of jobs in Bermuda and Bermudians working here. That is our mandate, Mr. Speaker. And I can guarantee, Mr. Speaker, that next year when we come back, we will have more than 40 [jobs]. We will have more than 40, because we are working on a model. We are working on a model to encourage IB to grow their business. Last year, Mr. Speaker, they sent 67 people, they reduced it, a bunch of staff, by 67 people— 67, after the Honourable Member had put that significant payroll tax, and warned the Honourable Minister, If this happens, this is what’s going to happen. So there are implications for your actions. So, wha t we are doing is working with IB. In fact, it affects all local and international business. For every company that has a payroll over $1 million, ev erybody who has a payroll tax of over $1 million, we are working on a formula to grow the business. I am not getting into full detail right now. I am just telling you we are working on it. And the response so far from the community has been extraordinary, has been extraordinary. First of all, because we listened; that is the first thing. And second of all, we are willing to work and make some things happen. And the Honourable Member (I am not going to call his name again) would know why. All I am sa ying is he would know. So, Mr. Speaker, I believe, and I have . . . I am . . . if we work hard enough . . . because one thing about it. It is easy putting numbers together, revenue and expenditure. The thing about it is working it afterwards. It is about working in. And so, the expenditure portion, the Government will be setting up an efficiencies committee to look at how can we . . . yes, we have our expenditure. But how can we bring our expenditures even lower? I will give you an example. The amount of training last year was $2.3 million. You know how much we had spent by November? Three hundred [thousand]. So the question I ask is, Where is your training budget? What do you plan to do for your trai ning? You do not just throw it up in the air, I am going to spend 2.3 [million]. Tell me what you plan to do. Well, first of all, you have got to tell me what you plan to do. So, the efficiencies committee will go in and say, Listen, Human Resource. Show me what you plan to do to spend your $300,000. Never been done before. It has never been done before. And if you are not going to spend 300, then we will cut. We will say freeze that. So we believe that we can go in and freeze not only on travel, on training, but on adverti sing. Also, repairs and maintenance—$27 million in maintenance. Well, you have had $27 million in maintenance last year. Why have $27 million this year? What are you maintaining this year? So we will go in and look at all these things and ask ourselves the question, How can we cut? Although we put it there as a safeguard, we will go in and look at the whole efficiency of how government is cut. So that is on the expenditure side. On the revenue side, we say that we hoped to get “X” amount of dollars for deemed- to-be employee, or payroll tax is going to be shoved in there. And let me just say the taxi drivers have been extremely happy. Extremely happy.
[Inaudible interjection]
Hon. Wayne L. Furbert: That is right. You never collected it. The Honourable Member said, We reduced that tax. But it is about efficiency and about being understanding. First of all, the taxi driver has been on a tax for years. There has been a tax for minibuses. There has been a tax for these little cars running around the Island now. And so, somebody had to say, the Government said, We are going to try our best to help you out. And so, by them on average paying $2,200 or $2,300 a year, and I mean, as we said in the budget , most of it was not paid. Out of the 550 registered, 311 paid. Let me just say this right up front. Mr. Speaker, we have got to come to some real hard decisions. Although we have some $200 million in accounts r eceivable, and we have 130 provisions for bad debt, some of it is not going to be collected. So what we have to do is sell the country that we are not going to collect some. Here is a good example. One particular company owes $1.9 million. It is in the car t ax reports. I am not disclosing the name, I am not disclosing the amount. But the car tax report says that the person signed a note, an agreement, that they will pay $500 a month. The car tax sale would take 312 years. That means the mama, the daddy, the grandchildren, ev erybody —everybody —will be gone. You will never collect it. So we come down and say let us get to a rea listic number. Let us write it off. Let us have an amnesty to collect what we are supposed to collect and move forward. It is on the taxi driver. We are not going to tax some of that stuff. I had a young lady, an elderly 74-year old lady, come to see me the other day. She owes $400,000- some. She makes $120 a week. Do
Bermuda House of Assembly you think we will ever see it? I literally started crying, Mr. Speaker. And that is the truth. I have a soft heart for the lady. Yes, I know she did not pay it; yes, I know that. But do we accept I am going to lock her up? No, I am not. We are not going to lock her up.
[Inaudible interjection]
Hon. Wayne L. Furbert: For $400, 000-some. And the list goes on and on. There are some things we will never collect. Now it is not, though, where we are. It is where we are going. So we have got to put in controls, proper controls. All right? We will work with individuals to put proper c ontrols for compliance. And you do not wait for 10 years to try to collect it; you try to collect it within a month or two months, or whatever it is. So we accept that. On both sides we have failed on it. If you have looked at the numbers for the accounts receivable it is going up, not only under the OBA, but it is going up under the PLP. It is going up under the PLP, under the UBP. We have failed. We have failed in monitoring and collecting those monies. We have failed. So the question is, Where do we go from here? So let us write off those things that we will ne ver collect, put in proper controls, and then let us go forward. Mr. Speaker, we talked about customs duties. The Government said we want to give lower customs duties on certain items. So we lowered it, particularly on the green items —cauliflower, broccoli, carrots and, hopefully, we will help someone go into Miles Market and MarketPlace and Lindo’s and see what their pri ces are before. And then—
[Inaudible interjection] Hon. Wayne L. Furbert: I accept that. I accept that. In embargo when it is not there. The question is, What will the price be after we put these duties on? We have given a duty for shoes. We have reduced the duty on shoes, reduced duty on shoes from 15 per cent down to 6.5 per cent. Think about our young people going back to school. Hopefully Bermudians will see the light that they will get a good price here and, hence, have better and more retail sales in Bermuda on shoes. Mr. Speaker, we have reduced the duty on textiles —pillows, blankets, sheets. I am not going to tell you what companies basically sell textiles, pillows. I am not going to tell you which companies sell pi llows, sheets.
[Laughter and inaudible interjections ]
Hon. Wayne L. Furbert: I am not going to say that . No, I would not say that. But at the end of the day, Mr. Speaker, it was not about who the person was. The question is, What do we want to do? And so we felt it was important that those things would be reduced so more Bermudians can shop here and get a better return and whatever. We are trying to spur more activity within that field. Mr. Speaker, retail hires just under 4,000 people —4,000 people! If we ever lose retail, financial systems will go up enormously. So we have got to take into consideration that particular industry. Mr. Speaker, I am not going to talk about the sugar tax. The Honourable Minister of Health will talk about that when she stands up. But the Government made a decision to do something. The consultation period is still on. And once the consultation period is finished, then the Government will make a decision. We are looking at funding for e- government to improve efficiency, reduce red tape, and increase satisfaction. We have got to do some things. The government has for years been operating in silos. No one talks to everybody. How can you have a family reunion if no one wants to talk? So this department does not talk to this department, and this department does not talk to this department.
[Inaudible interjection]
Hon. Wayne L. F urbert: The Honourable Member said, the platform. You are absolutely right. But we are going to do something about that. We have to do something about it, because that becomes more eff icient, about going forward. Why did we have . . . we have 12, 17 depar tments collecting revenue for the Government, 17 d epartments spread out all around Bermuda. Why? One is collecting dog, one is collecting moorings, one is collecting cats, whatever.
[Laughter]
Hon. Wayne L. Furbert: My point is, we could have made the m more efficient in combining and retraining and doing all these for other people without reducing the labour force. These are things we could do. It is about efficiency, moving forward, Mr. Speaker. Mr. Speaker, how much time do I have left?
The SpeakerThe SpeakerNine minutes. Hon. Wayne L. Furbert: Oh! That time went. The time went by fast, Mr. Speaker. Mr. Speaker, we talked about certain tax concessions. Employers will not have to pay payroll tax for any disabled person who is hired. Not only who will be hir ed, who are hired. …
Nine minutes.
Hon. Wayne L. Furbert: Oh! That time went. The time went by fast, Mr. Speaker. Mr. Speaker, we talked about certain tax concessions. Employers will not have to pay payroll tax for any disabled person who is hired. Not only who will be hir ed, who are hired. Anyone who has a disabled person will not have to pay payroll tax. What a caring Government! Mr. Speaker, new businesses who meet the criteria of BEDC [Bermuda Economic Development 1058 23 February 2018 Official Hansard Report
Bermuda House of Assembly Corporation] will be exempted of employer payroll tax for one year. Extraordinary, Mr. Speaker! Mr. Speaker, I have already spoken on the taxi drivers, going down from two . . . and guess what? The part -time taxi drivers will not have to pay anything. So what do we expect to get? Normally, we get $311 million in taxes from the taxi drivers. This year we should have collected $1.2 million under the former Government. It did not work. So we are now putting a thousand, we will collect $500,000- some, $200,000 more . . . $200 million more . . . sorry, $200,000 more.
The SpeakerThe SpeakerYes, 200,000. Hon. Wayne L. Furbert: Extraordinary! That took some real common sense to move and understand that, Mr. Speaker. And that is because of the consu ltation we had with the industry. You will be amazed, when you just talk to peop le, what they tell you. And you …
Yes, 200,000.
Hon. Wayne L. Furbert: Extraordinary! That took some real common sense to move and understand that, Mr. Speaker. And that is because of the consu ltation we had with the industry. You will be amazed, when you just talk to peop le, what they tell you. And you say, Hmmm. That makes sense. Let’s do it. So I said part -time taxi drivers will no longer have to pay the $1,000 per year. They do not pay it until . . . as a matter of fact, we are putting in place that the payroll tax is due April, to be exempted. They will not have to pay until September. They have to pay in September.
An Hon. Member An Hon. MemberExtraordinary! Hon. Wayne L. Furbert: Yes. We talked about reductions of items from 5.0 per cent to 0.0 per cent —eggs (taking care of t hat Michael Dunkley), potatoes, cauliflower, broccoli, carrots, turnips, oranges, and apples. And, Mr. Speaker, we also put in clocks. Why clocks? I do not know. …
Extraordinary!
Hon. Wayne L. Furbert: Yes. We talked about reductions of items from 5.0 per cent to 0.0 per cent —eggs (taking care of t hat Michael Dunkley), potatoes, cauliflower, broccoli, carrots, turnips, oranges, and apples. And, Mr. Speaker, we also put in clocks. Why clocks? I do not know. But someone came to us and said, Well, why don’t you give us [a duty reduction] on clocks? Nobody buys clocks. Look at those clocks up there. I envision a clock in the corner somewhere, you know, a grandf ather clock. But no one sells clocks. We looked at the revenue that we get from clocks, and I think it was about $2,000. Okay? So, fine; we will go from what-ever, 25 per cent down to 15 per cent. It was a nobrainer. They asked for it; we gave it to them. Mr. Speaker, here is one that has been escaping us for years. It is the loose- leaf tobacco. The loose- leaf tobacco. Well, tobacco has a duty. There is a duty on tobacco, on cigarettes. And we get, I think, about $8 –10 million in duty. If we had allowed companies, as the other companies are doing right now, b ecause last year I understand that there was an i ncrease by 500. And they were convinced not to do it. Hmmm. They were convinced not to do it. Do you know how much revenue we lose by someone, again like these tax commission people, coming and infor ming these companies? They now produce their own cigarettes. They tell me it is nasty, but I have n ever tasted it. But you can buy a cigarette now for $6.50 or $8.50 compared to $14. It is encouraging young people to buy more. It is encouraging people to buy more because it is $6.50 instead of $14. But we are going to close the gap. We are not going to close it completely. We do not want to put the person out of business. But we are going to close it. I am not sure if anybody realised that if we were to allow everybody to just do loose- leaf tobacco, we would go from about $8 million in revenue down to probably about $75,000. That was the purpose. The purpose was to call it a sin tax. And those who are smoking should not be smoking at all. There has been a significant decrease in smoking since I was a younger person. So the idea was to go after these individuals. Mr. Speaker, in closing, I believe that the Government has done a tremendous job under the Premier and Minister of Finance to put together a new vision for this country in regard to where it wants to go. Have we got it perfect? No. We have probab ly made some mistakes in there. We have probably made some miscalculations —by a dollar at the most. But the idea is that we have set out on a path of growth. We have set out on a path of caring for people. We have set out on a path to listen to everyone who wants to come talk to us. I mean, everyone comes to talk to us about their views, going forward. Mr. Speaker, I believe that we are heading for a renaissance.
An Hon. Member An Hon. MemberYes, sir!
An Hon. Member An Hon. MemberHear, hear! [Desk thumping] Hon. Wayne L. Furb ert: A renaissance which will take Bermuda, not from where we are, we are looking to grow this economy significantly. Because at the end of the day, we cannot afford a country on the number of staff, number of people working in …
Hear, hear!
[Desk thumping]
Hon. Wayne L. Furb ert: A renaissance which will take Bermuda, not from where we are, we are looking to grow this economy significantly. Because at the end of the day, we cannot afford a country on the number of staff, number of people working in this country, whether it is pension, whatever. The list goes on and on. We cannot. If not, we just continue to increase . . . if we had 6,000, 8,000 more people here, we probably do not have to increase much at all. But we need people working here. We need to move forward. And this G overnment, under the leadership of the Honourable Premier, David Burt, has set the trail for us to move forward. Thank you, Mr. Speaker.
[Desk thumping]
The SpeakerThe SpeakerThank you, Honourable Member. Does any other Honourable Member wish to speak? I recognise the Honourable Member Moniz. You have the floor. Bermuda House of Assembly Hon. Trevor G. Moniz: Thank you. Thank you, Mr. Speaker.
The SpeakerThe SpeakerLet me remind you before you start that all Members in here have 30 minutes. The opening speaker had 60 minutes, and everyone else from now on has 30 minutes. Hon. Trevor G. Moniz: Mr. Speaker, I take objection! [Laughter]
The SpeakerThe SpeakerNo. We go by what is in the House. Hon. Trevor G. Moniz: You know I am a 20- minute man!
The SpeakerThe SpeakerWell, you can take your 20 minutes and I will be happy. [Laughter] Hon. Trevor G. Moniz: I will see what I can do, Mr. Speaker.
The SpeakerThe SpeakerGood. [Inaudible interjections and laughter ] Hon. Trevor G. Moniz: Mr. Speaker, the Honourable Member who spoke before me said a number of things I did not agree with. But obviously, he also said a lot that I and we on this side did agree with. And we certainly laud …
Good. [Inaudible interjections and laughter ] Hon. Trevor G. Moniz: Mr. Speaker, the Honourable Member who spoke before me said a number of things I did not agree with. But obviously, he also said a lot that I and we on this side did agree with. And we certainly laud some of the initiatives that they are coming forward with. And, you know, an example of that is the notional remuneration, which I will get into in a little while. But we note that the budget that they have produced is, comparatively speaking for a labour party, a very business -friendly budget. And the business people have been climbing all over themselves to say how wonderful they think that Budget is. We have heard a number of business groups saying they think it is marvellous. And some outstanding people in the community, with large property holdings, et cetera, and business holdings, have been saying, This is a wonderful Budget . We reall y like this! It’s a marvellous budget. Now, on the other hand, some of their own followers, the tried -and-true believers of the Progressive Labour Party, are mumbling in the background that they are perhaps not so happy with the budget .
[Inaudible interj ection s]
Hon. Trevor G. Moniz: And the Premier himself, the Finance Minister, stood on his feet and said so in the House when he discussed 60/40. He got up and he said, Look. There are going to be Members on both sides of the political divide who are not happy about the proposal for 60/40. But, of course, he is discovering how difficult governing is, because the next day, he did a little bit of a moonwalk on it and sort of walked backwards on it and said, Well, you know, yeah. We’re going to do it, but, y ou know, there’s nothing in the budget this year. And we’re going to have a very slow consultation. And basically, he was, within 24 hours, putting it on the back burner. So he is quickly discovering how easy it is to make promises and how difficult it is to keep promises. One of those promises, of course, was the platform promise by the PLP that they were going to balance the budget. And, of course, when they get to Government they say, Well, we’re pushing that back a little bit. Because of economic circumstances, et cetera, that balancing of the budget is being pushed back. So we want to look at the economic realities of Bermuda to see exactly where we are going. And in order to do that my Leader, in the Reply to the Budget Speech, quite rightly pointed out where the OBA had succeeded. And, of course, we have to remember, and it was pointed out in the Budget Reply as well, that, you know, when the OBA came into power in December of 2012, the dire strait of the economy. At that time ev eryone in Bermuda realised that the PLP Government had failed. The PLP supporters realised that. Their own supporters either changed their votes or stayed at home, and were very disillusioned that all the promises turned out to be smoke and mirrors. And they lost that election . And at that time, there were PLP supporters. I remember one prominent PLP supporter coming up to me and saying . . . Yes, it is an anecdote. He said, Look. You guys are good managers. You’re good at problem- solving. You’re going to come in and you’re going to solve the problems. And then we’ll take the Government back. And so said, so done! So said, so done.
[Inaudible interjections and laughter ]
Hon. Trevor G. Moniz: But the question . . . and the Honourable Member who sits next to me, MP Si mmons, makes a point. He makes a point. We did not have enough time to solve all of the problems. The problems were so large that we could not solve them all in four and a half years. The problems created in 14 years of mismanagement could not be solved in four and a half years. And we agree with that. We agree with that. We agree with that.
[Inaudible interjections ]
Hon. Trevor G. Moniz: That is right. The election happened. The election happened. But the people made their decision, and we accept that. 1060 23 February 2018 Official Hansard Report
Bermuda House of Assembly But we do not want people to be misled as to what the achievements were, you know, and from our point of view the PLP, when they were in Opposition, were irresponsible. They were overly critical. They did not support the economy of the Government. They did not s upport the major projects that the OBA Gover nment had. And what we promise is that we are not going to be like that in Opposition. We want Bermuda to succeed. We want the PLP Government to succeed. And where they have good measures we will support them. It is unlikely that we are going to be illegally closing down government or marching on the House or stopping MPs from reaching Parliament. It is very unlikely that that is going to happen. When we have a disagreement, we will make it known. And when we support, we will make it known. We will try to be a r esponsible Opposition. But just to look at what the OBA achieved while they were in Government. As the Opposition Leader said, we had successful deliveries on hotel investment. We had the St. George’s Hotel. We have got the Morgan’s Point Hotel being built. We had smaller projects like Surfside being reopened. We had, obviously, the continuation of the major inves tment in Hamilton Princess, which was actually i ncreased from what it was originally intended t o be. We had the very successful creation of the Bermuda Tourism Authority. We have had America’s Cup, which, according to the accountant’s report (I think it is KPMG, was it?) . . . the $330 million into the Island’s economy. We had the best -ever tourism arrivals. And we had the airport redevelopment. Now, those were major achievements. And, you know, already the public are beginning to ask questions. You know, the new Government said, Oh, well, we’re going to look at that airport redevelopment. We’re goi ng to have it all reviewed. We don’t like that airport redevelopment. So they commissioned LeighFisher, who was slightly involved with the project, to do a report and review it. And they said, Now, this r eport is going to come back in December, and we’re going to present it to the public. Now we are all sitting here in February, and there is no report. Where is the LeighFisher report? You know, where is this report that is going to condemn the airport project? The pub-lic of Bermuda need to know. They need t o see that report. And it shows a very troublesome thing of, you know, promise made/promise broken. That is what we are seeing. We are seeing promise made/promise broken. We have seen it on promises to balance the budget right away. We have seen it on knocking back. You know, you say, Oh, I’m going to do something. And then you say, Well, actually, I’ve changed my mind. We’re not going to do 60/40; we’re not going to do that right away. That’s not on target for now. You saw items. I mean, one of the items everyone must have seen is, the PLP had promised to close schools. They said they were going to phase out middle school, phase out. All those middle schools are going to be gone. They are going to be gone. And who came out in support of that? I think it is the Secretary -General of the BUT [Bermuda Union of Teachers], Mike Charles, comes out in favour and says, Yes. That’s a good idea. You need to consol idate. These are old buildings that are falling down. They need huge capital expenditure and renovation. Close down those schools. But, of course, immediat ely, the Government again reneges on that and says, Well, no, no, not this year. We’re not looking . . . you know, we’re kicking that can down the road. That’s down the road somewhere. That’s not for now. T hat’s for some long time in the future. And these are some of the issues. These are some of the issues that we see. Well, Members on that side are discovering it is difficult. It is difficult to govern. It is not easy.
[Inaudible interjection] Hon. Tre vor G. Moniz: Now, Mr. Speaker, that is r eally a below -the-belt comment. You have not known me to read . . . I am looking at the Budget Reply. [Inaudible interjections ] Hon. Trevor G. Moniz: I was reading from nothing.
[Inaudible interjections ]
The S peaker: Gentlemen, gentlemen. Gentlemen! It is one person that has order in this House, and one person who commands that. Anyone else can find the door if they do not understand that. We have one speaker on his feet, and that is who has got the floor. Mr. Moniz, continue.
Hon. Trevor G. Moniz: There are some sensitive feelings, Mr. Speaker. We will try and get past all of that. So, you know, again with the . . . the Honourable Member who spoke before me spoke about taxes and he spoke about increasing tax es. And on the one side he ran on and said, you know, We are going to make people pay. We are going to increase the amount of tax we collect per GDP dollar. We are going to get it up to 21, 22, maybe 23 per cent. And then I think he said, There’s going to be milk and honey. I think he actually said there is going to be milk and honey for everybody. There will be milk and honey all around. You know? And I saw the Premier, Finance Minister, look at him. And obviously, I do not think the Premier, F inance Minister, approved of that sort of extravagant language when it comes to people’s money. But, you know, of course, then they back away from it. They said, Well, of course, we’re going to make those people who are able to pay pay their share. We’re going
Bermuda House of Assembly to make them pay! We’re going to get them. You know, and he actually said he was going to get one of the Members. Oh, we’re going to get you. We’re going to get you! But then they turn around and say, Well, we’re not going to touch international business. We’r e not going to touch any of those people, you know, b ecause they have sensitivities and they’re being very supportive of us. You know, we’re not going to tax those people. Well, who are the wealthiest in the community? Who is making the most money in this economy? It is the people in the insurance industry. So you have already said, We are not going to tax the people —
Hon. Wayne L. Furbert: Point of order, Mr. Speaker.
The SpeakerThe SpeakerWe will take your point of order. POINT OF ORDER Hon. Wayne L. Furbert: Mr. Speaker, we said that the cap is $900,000. That is what we said. And they are taxed up to $900,000. And any local individual will be taxed up to $900,000, same rate, same amount.
The SpeakerThe SpeakerThank you. Continue on, Mr. Moniz. Hon. Trevor G. Moniz: Thank you, Mr. Speaker. He is clearly saying there is no change at all after clai ming, Oh, we’re going to increase all the GDP and tax. Well, who are you going to tax? Hon. Wayne L. Furbert: You. Hon. …
Thank you. Continue on, Mr. Moniz. Hon. Trevor G. Moniz: Thank you, Mr. Speaker. He is clearly saying there is no change at all after clai ming, Oh, we’re going to increase all the GDP and tax. Well, who are you going to tax? Hon. Wayne L. Furbert: You.
Hon. Trevor G. Moniz: You are not going to tax . . . I am laughing. I am laughing. So they talk about notional remuneration. You know, Mr. Speaker, we agree with the principle. We on this side just feel it is going to be more challenging than those Members realise. You are talking about the partners in the major firms. And, of course, those are complicated setups. And those people make large money. They are complicated setups. He is looking at someone who is in a very small firm or a sole pract itioner. Those people are not making large amounts of money. We have got far too many small lawyers around this country. You know, they are talking about increasing global law firms, et cetera. We agree with the idea. I have always agreed with the idea of bringing in firms from outside. I have never had a problem with that. The Bar Council were very unhappy with me when I was the Attorney General. You know, they wanted me to put my foot down. And my view was that as long as these firms are positive for Bermuda, I support them. And when I met with them I told them that. I sai d, As long as I see you are bringing jobs into this communi-ty, you are helping this economy, I will support you. As soon as the feeling I get is that you are not, that you are cycling work away, if you are not hiring Bermud ians, you are not useful to this economy, then I will oppose you. It was very simple for me. So the Bar Council were very, very annoyed with me, and they wanted to run off to court. And there are court cases going on, and there are a variety of people here who have connections with overs eas firms. And I am not going to opine on which ones may be within the law and which ones may be pushing the limit; I do not know. But as long as they are creating jobs, that is a good thing. And we agree on that. I do not think we have any problem with those areas. Now, Mr. Speaker, if you just look at tourism. I mean, it has been an incredible success. I mean, nobody can argue otherwise. And the PLP Government from before, they knew how difficult it was to establish a major hotel project. You knew that f rom St. George’s. Where they had a group of developers, and then those were kicked out, and then one of them was picked. And then that one could not come through. And the project never happened. So when we came into Government we were working our hardest. The then- Minister, Shawn Crockwell, with the Economic Development Commi ttee, were working very hard to find people who were going to get that hotel up and running. And we suc-ceeded. Ground is broken down there. Obviously, one of the issues outstanding is the issue with casinos. I think this Government so far have found it as difficult as we did to figure out what is going on there. It is a very difficult project. Now, unfortunately, the Tourism Minister got into a huge fight with the then- chairman and then - CEO. So that whole thing went sideways with the Gaming Commission. It had to be restructured. It looked like there were a lot of personal recrimination and attacks, just the sort of thing that we did not need in Bermuda in tourism. But while we were there, and through the America’s Cup under that Honourable Member, Grant Gibbons, who was running that project, we had the most successful tourism initiative ever in this country. There has never been anything like it. And it brought a huge amount of money into this community. It has paid a dividend which the present PLP Government is still living on. But the difficulty, from our point of view, is we say that the projections of those dividends into the future, you have got to be very careful about that. Becaus e that dividend is going to reduce. And that is where the PLP Government, and Premier Burt is aware of that, has got to be seen as business -friendly. You have got to be seen as inves tment -friendly. He is doing his best to do that. Within the confines of a labour party that is difficult to do, b ecause the labour party is always saying, We’re going to take from the rich and give to the poor. And then you have got to say to the people coming in, because 1062 23 February 2018 Official Hansard Report
Bermuda House of Assembly there are these others, My Leader said that these ot her competitive jurisdictions, are willing to give great deals to investors to come to their communities. So you have to be seen to be friendly to these people. The same thing applies in the immigration field with PRCs, with work permit holders. If people come here and see that they have no real future in this country except making money, any excess money they have will flow out as remittances home to their families in their home countries. It will not stay in this country. That is why it is always very import ant that people who come here as guest workers feel like that, feel like they are guests in this country, and they want to invest their money here and they want to be part of this country. And that is where it is going to be very i mportant for the Honoura ble Minister of Home Affairs, Walton Brown. It is going to be very important that his immigration initiatives, when they come forth, be seen as something that are going to bolster people coming into this country, building this economy, supporting our pensi on system, supporting our health system — because those people who come in to work are usua lly around ages 30 to 50. They are healthy people. They pay into the health insurance. They pay into the pension system. And they are not drawing out. All of these sys tems are in huge deficits, and they need support. So we need this economy to grow. Now, the difficulty . . . just looking at tourism. I mean, these things pop up all over the place. The present PLP Government have already shot themselves in the foot on to urism with the same- sex ma rriage, with the Domestic Partnership Act. That is going to be nothing but trouble for them.
The SpeakerThe SpeakerWhat is your point of order? POINT OF ORDER
Mr. Dennis Lister IIIJust for clarification, in today’s paper . . . this week one of the newspapers, in the article of the Royal Gazette it stated that the gay communities around the world actually want to encourage people to come to Bermuda. So our stance and our same- sex marr iage issue …
Just for clarification, in today’s paper . . . this week one of the newspapers, in the article of the Royal Gazette it stated that the gay communities around the world actually want to encourage people to come to Bermuda. So our stance and our same- sex marr iage issue will not hurt Berm uda, because, as has already been stated . . . so this is incorrect information from the Member.
The SpeakerThe SpeakerAll right. Okay. Continue on. Hon. Trevor G. Moniz: I will accept that point of clar ification, Mr. Speaker. You know, it is a two -edged sword. Yes, sure, there was one group that said, you know, We don’t want you to boycott Bermuda. But lots of other people, lots …
All right. Okay. Continue on.
Hon. Trevor G. Moniz: I will accept that point of clar ification, Mr. Speaker. You know, it is a two -edged sword. Yes, sure, there was one group that said, you know, We don’t want you to boycott Bermuda. But lots of other people, lots of other groups have said, We’re boycotting Bermuda, including some people who live here. [Laughter]
Hon. Trevor G. Moniz: In the paper today you had, I think it was Mr. Joe Gibbons who said he and his partner are leaving Bermuda. You know, these are true events. You have got those very strong prop onents of same- sex marriage for whom same- sex ma rriage is a big black eye. And you have people in this House, on the PLP side of the House, who are great supporters of same- sex marriage. You had the Honourable Member Michael Scott, you had the Honour able Member Zane De Silva, who were very supportive of those thi ngs. But in this House, they stood up and they voted against it. They voted against it.
[Inaudible interjections ]
Hon. Trevor G. Moniz: Voted against it. So, these are some of the difficulties which we see faced by the Government. We see, Mr. Speaker, the insert that was in the Budget Reply, looking at the deficit.
[Inaudible interjections ]
The SpeakerThe SpeakerMembers, Members! Members! Hon. Trevor G. Moniz: And what we saw there was that the PLP in their time in Government produced very high deficits. The y always predicted low deficits, but they actually had high deficits. In the OBA we were very conservative, and we always predicted deficits which …
Members, Members! Members!
Hon. Trevor G. Moniz: And what we saw there was that the PLP in their time in Government produced very high deficits. The y always predicted low deficits, but they actually had high deficits. In the OBA we were very conservative, and we always predicted deficits which were higher than they actually turned out. So that is a history. We were good budgeters. We were very conserv ative budgeters. The PLP do not have that track record. So the danger here (I am going back to the America’s Cup) is that this Government were projec ting that there were going to be, you know, continuing inflow of government revenues next year as if the America’s Cup were still on. And we on this side feel that this is an irresponsible budget forecast or revenue forecast. We feel that you are going to see a slowing down of it. And in a year’s time, the PLP Government will have to say, Well, look. It didn’t quite come out the way we expected. So, you know, that balancing of the budget that we told you about back in the election platform? And you know when we put it off for a year? Well, guess what. We’re going to put it off for another year. So that is what we foresee if history repeats itself. And we on this side do not hope that history r epeats itself; we hope it does not. We hope it does not. Now, you know, we have seen some very worrying events. And one of the . . . I am going to try and finish before l unch. I promised you 20 minutes. I might go slightly over.
Bermuda House of Assembly The Speaker: You have got three minutes before lunch.
Hon. Trevor G. Moniz: The last situation to face is the situation with Government making irresponsible expenditures which are not budgeted for . And this is the situation of the medical health scans. Now, we have seen in the medical health scans the Government suddenly announced that they were paying a large sum of money to, I think it is Bermuda Health Care Services. Dr. Ewart Brown’s oper ation. And it was never . . . to me, it was never clear why these payments were being made. There was no contractual obligation. I know the Government were hopeful that Dr. Brown would keep his operation open. He said, no, he was not keeping it open. He was shutting it down. And the Government went ahead and paid him anyway. And we could not see the quid pro quo. What are you paying for? There is no contractual obligation. He is not giving you anything back. So why are you paying him? And the Minister, I think, indicated she was intending to help raise some scans in the coming year. But that is another matter. The people out there in the public . . . I leave you with this, Mr. Speaker. People out there in the public want to know, is the payment to Dr. Brown a quid pro quo? Was Dr. Brown a major donor to the PLP election campaign? And is this some sort of a payoff to him? Thank you, Mr. Speaker.
An Hon. Member An Hon. MemberWow. Wow.
The SpeakerThe SpeakerMr. Moniz, thank you for your comments, Honourable Member. Now I am going to recognise the Minister of Health to take us to lunch. Hon. Kim N. Wilson: Thank you, Mr. Speaker. I move that we do now rise for lunch and r eturn at two o’clock [this afternoon]. ANNOUNCEMENT …
The SpeakerThe SpeakerThank you, Minist er. Before we go, I would just like to acknowledge that in the House this morning, we have had some Senators. We have Senator Mathias; we had Senator Jardine. Senator Hayward was here earlier. And also, former Member of Parliament, Member Hodgson, was here earlier today, as …
Thank you, Minist er. Before we go, I would just like to acknowledge that in the House this morning, we have had some Senators. We have Senator Mathias; we had Senator Jardine. Senator Hayward was here earlier. And also, former Member of Parliament, Member Hodgson, was here earlier today, as well. Thank you for visiting our Chambers. We are now adjourned for lunch.
Proceedings suspended at 12:30 pm
Proceedings resumed at 2:02 pm
[Hon. Dennis P. Lister, Jr., Speaker, in the Chair]
DEBATE ON THE BUDGET STATEMENT AND REP LY TO THE BUDGET
The SpeakerThe SpeakerGood afternoon, Members. We now resume and I think the Honourable Member Moniz had completed his presentation before lunch. Does any other Member wish to speak? I recognise the Honourable Member from constituency 36. Honourable Member Scott, you have the floor. Hon. Michael J. Scott: Thank you, Mr. Speaker . …
Good afternoon, Members. We now resume and I think the Honourable Member Moniz had completed his presentation before lunch. Does any other Member wish to speak? I recognise the Honourable Member from constituency 36. Honourable Member Scott, you have the floor.
Hon. Michael J. Scott: Thank you, Mr. Speaker . Mr. Speaker , 19 years have passed since the first Minister of Finance of the Progressive Labour Party stood at his seat somewhere near to his thenPremier Jennifer Sm ith. Jennifer Smith then declared to cries of supporters on the front bench and the backbench, We hear you. On that occasion the Honourable Member Cyril Eugene Cox was making reference to an announcement about seniors and increases in their pension rights. This last Friday, on the 16th, another new and younger Minister of Finance stood and made his first Budget Statement of the Progressive Labour Party. And I liked, Mr. Speaker , the gutsy and spirited words that opened that and our current Minister of Finance’s speech. I liked it when he said that the Government accepts the economic realities to which he referred in his opening words, but what we want to do and what we are determined to do is “to forge a future that defies and shifts those realities and empowers this cou ntry’s citizens.” During the interchange with Members . . . with the people of this country, both before and after his Budget Statement, Mr. Speaker , I heard the Premier and Minister of Finance say, You can’t put everything in the Budget Sta tement, otherwise one would be still making the Statement. And he is right. The opening inclusions of the Minister of Finance’s Statement of the National Budget for 2018/19 referenced the single parent, husbands and wives trying to make their combined reso urces take care of their family needs, the university student’s aspirations as he or she returned to Bermuda and looked for inclusion in our economic setting here in Bermuda and, alas, sadly often not finding placement or inclusion. And he included the senior citizen. So it makes the point that speeches and national budgets cannot be all things to all people. And I am aware, Mr. Speaker , of an interesting and noble observation in this area about speeches: “A good speech should be like a woman’s skirt; long enough to cover the subject and short enough to create interest.”
1064 23 February 2018 Official Hansard Report
Bermuda House of Assembly [Laughter and crosstalk]
Hon. Michael J. Scott: So, Mr. Speaker , 2018 . . . I do not think it is sexist, the author of those words was Sir Winston Churchill. So, 2018, I have noticed pers onally, Mr. Speaker , has begun with a great deal of positivity. I am glad of it. I have seen many green shoots in the 2018 soil, Mr. Speaker . I recall making a speech to a number of graduates in Ocho Rios in Jamaica, they were graduates of Prospect College in that town, and I made reference in that speech to “green shoots” and I would like to adopt in this, my brief remarks this afternoon, the referencing to the green shoots that I now detect in 2018. The challenges remain many and I do not seek to engage i n pie in the sky, but I am, again, grateful for the green shoots that I have seen happe ning in our 2018 start of the year. And they are all conveniently set out, Mr. Speaker , in the Budget. It is not surprising that they are there. This Budget Statement comes about to reflect, as the Minister of Finance said, the realities of our time. But on page 8 of the Budget, Mr. Speaker , I would isolate the first green shoot under the topic of the Minister of Finance talking to the nation, to the Island, about “stimul ating investment,” modernisation is a green shoot that I would isolate and identify. I r ecall that the Chief Justice in his speech to the gat hered members of the judiciary and Bar at the begi nning of the judicial year also referenced the need for our count ry to modernise. And he referenced the modernisation efforts even of the judiciary. I know that the Chief Justice, from the position where he sits as the commercial . . . as the head of the judiciary, but also he sits in the commercial division often of the courts, and he must see how we are faring in terms of commercial modernity and we need to keep up with other jurisdictions that are modernising. And I would l think that he would share the importance that the e ntire platform of our work here in this Island must rest upon modernisation. But there are other green shoots, Mr. Speaker, under the topic of “welcoming [global] firms to Bermuda.” It is a modern development. And I heard the Honourable and Learned Member and Shadow Justice Minister, Mr. Moniz, refer to the global law firms linkage with Bermuda law firms. And I take his point and I support what he said that global law firms linkages with Bermuda law firms —and I declare my interest, I operate a law firm —provided that the ben efits that accrue from the partnership in terms of e mployment, in terms of opportunities, in terms of exchanges with global partnering with global firms, in terms of introducing incorporations or business through those law firms that help this economy, I can-not think of a negative f rom that kind of modern development. Expanding the types of banks in our country is another green shoot. It is mentioned . . . it is possible–– provided it is pursued by the country, this House, the private sector and the public sector —provided it is pursued with diligence and with crossing all t’s and dotting all i’s, these green shoots can be grown into full and mature plants, indeed, even an oak. The revision of the 60/40 rule, turning it into a 40/60 rule, [is] another green shoot. All of these things gained the support, generally, of the country across all sectors of the country that I have encountered with the positive reporting back of the Minister of Finance’s 2018 Budget. These are excellent green shoots. And before I cease listing green shoots I would like . . . I must include the FinTech and future technologies of the technology incubator that we will launch and place young boys and girls, men and women, in these settings to develop information tec hnology applications, which can give rise to creating monetised businesses and applications, such as we have seen with Uber, and we all understand what I am talking about. I know that the native instinct and verve and drive of our young boys and girls and our young men and women who are searching, just l ike those young men and women mentioned in the opening par agraphs of the Budget, who train and get their degrees and master’s’ degrees and PhDs . . . they are the candidates and persons who would be involved in these kinds of initiatives. They would be the front runners, best candidates, for these kinds of information jobs, bringing in vast levels of knowledge into our country and rising out of it, lifting out of it new opportunities, new business work, new business opportun ities. And so the FinTech initiat ive of cryptocurrency and turning our Island into a digital global risk man-agement digital market —these are wonderful green shoots. But let me hasten on. The Premier’s list, as I indicated, is not going to include every aspiration. And so this afternoon I would like to add to the list and the focus of my speech this afternoon, the focus on our youth just as I spoke in Jamaica to young people at the Prospect College. They are a native resource and they need our every waking hour of nurturing and attention. T hey need to be integrated into our economy more than we have done heretofore. Mr. Speaker , our youth have been facing and enduring many challenges since the 1998 period that I referred to across our entire experience as a PLP Government —many challenges —we know them, do we not? We have through this course of youth struggle, youth aspirations —some met, some dashed— found an interesting but important category of young people in need of our attention. They are the able-bodied, educated young graduates ready to take pos itions in this country across the private sector and the
Bermuda House of Assembly public sectors’ offerings. Too often we have recognised that has been the diagnosis, Mr. Speaker , that the absorption rate of them has been something less than stellar —the counterculture yout hs who have become underemployed. Another word that is used to describe this counterculture of our youth are the “gangs.” I deprec iate using that word often. They are very much stak eholders. They have fallen into this associative of gang-related members of our society and it is not a nice word, it is not a nice position for them to be in, drawn to the loyalty of a group that is negative rather than an organisation or an experience that is positive. They are listed in the category of youths who are in need of our attention today. The economic refugees who have taken off across this pond and gone over to England —they are another grouping who need to be included in all the work that we do. Mr. Speaker , the last two that I mention are heartrending. These are the young men, primarily, and women, who are unstable, living in unstable co nditions in our country with precarious to no emplo yment or underemployment. I see them, Mr. Speaker , I stand and represent them in the courts. Because they are unstable in their livi ng conditions, their sustenance conditions, just basic foods, the threats to just being recognised as human beings, they become unstable, they bounce back and forth between the criminal justice system and many other systems within our soci ety. And, as I sa y, I meet them and it hurts my heart that they remain yet untapped in the resources and skills that they have. I have heard that at MAWI there is a growing, growing, number of young people, and my honourable colleague and Learned Member, Minister Caines, whose spouse —Magistrate Caines, Magistrate A nderson— presides in the Mental Health Court , where I have occasion to visit and sit. I gather from all of these sources that there is a growing number of young pe ople—young Bermudians —who are mentally challenged, have mental behaviour disorders, up to full - blown mental disorders, not just behavioural. Well these are our customers, these are our clients, [and] these are our brothers and sisters. And they fall into debt traps, they fall into instability. Nin eteen ye ars ago this was not particularly absent from the terrain known as Bermuda, but it has increased and we must address it. And the Budget and the green shoots to which I referred are possible absor bers of these young people. They are possible sol utions for o ur young people. For example, we need to be sure that for the stable, able- bodied, ready graduate out of work or underemployed can be . . . we need to meet with them, learn of their skills, document their skills, register their skills, blockchain, indeed, their skills and link them to jobs. It has been a singular f ocus of the Minister of Finance and his colleague of Ministers’ focus to create jobs and to drive growth. Mr. Speaker , we can do no better than to i nclude the ready, the already educated and skill ed, to meet them at their point of need by integrating them into the economy. And the economy into which they are integrated, Mr. Speaker , must be grown. Hence, the support that I lend to global law firms and linkages with local law firms, it is the reason I support the FinTech initiative that is being driven and led nobly, effectively, by Minister Wayne Caines under the Mini stry of National Security. There are great opportunities in connecting our young people. They are the owners of information technology and they are the new developers of technology applications that c an be turned into brilliant, yet unknown, business opportunities for us. I can, therefore, support seeing dozens of young men and women sitting at benches in a space working through applicat ions and waiting, Mr. Speaker , waiting . . . we wait for their breakthroughs, their unicorns. For the gang, the counterculture youth, those with whom Minister Caines is ever focused and has his heart in turning their lives from negative loyalties to meaningful reemployment, turning their lives . . . and they do want to be employed. Whenever any of us who are elected Members speak with our constit uents, we all hear from them. They resent the connection with them as members of gangs. They want to work. Many have families and children to support. I have often in my constituency met with my branch and we talked about construction projects that could suck up the employment demands of our young men on the streets of constituencies 35 and 36 and 34 and 33. What a great thing this must be to see come to frui-tion. These are some of the solutions that we will pursue as practical measures, Mr. Speaker , in this Go vernment, laying the platform of modernisation, growth, [and] job creation. Our young men in these unstable l iving conditions —and I will bunch together the mentally and behaviourally disordered young people—of course, we have done the analysis, we have been doing it since the days of Dame Lois when I worked in her chambers, Shirley Simmons and Ann Cartwright —those were the front runner criminal lawyers. They saw it then . . . and I heard [Dame] Lois Browne- Evans speak about the need for clinical interventions, and we have gone about it in a bit of a hodgepodge way —an occasional employment of a psychologist here, t he invitation by the then- Minister of Health of another analyst, Professor Tumin, who came here, we made the analysis over and over again. But we take ad hoc punches at solutions as we did with the decriminalis ation of drugs . . . of cannabis because we know that this is an impactor that is distributed in their lives in a disparate way, in an unfairly disparate way. But what I look forward to is a both sincere and organised and effective and competent attack on this problem. Because every day there is born into our Island a child with either clinical challenges because of birth reasons, whether they come into traumatised 1066 23 February 2018 Official Hansard Report
Bermuda House of Assembly situations or they grow up . . . because of intergener ational traumas of violence or abuse they grow up in these conditions and shortly the y become young adults who are living the life tracked towards either mental institutions, behavioural clinical involvements, and/or the criminal justice system. We owe it to ourselves and you know we owe it to ourselves in a major way, and we are inspired, certainly I am, by young people taking the nettle (as they are doing in Tall ahassee, Florida), rising up and saying that we have to speak for ourselves to make our school settings safe. No less so do we have in this country these kinds of candidates who, as the Premier says, need someone to give the roar for them, their voices being, alas, unheard for too long. This morning I stopped at Somerset Primary School and their Assembly for Excellence—these are other examples —and I saw these bright young boys and girls receiving their certificates. They are coming through. Our charge is to ensure that we keep them out of the categories that I have listed here and push them into the most positive of our categories to ensure that they are integrated into our economy and social life so that they become vibrant citizens, so that they become wealthy citizens, so that they become wealthy fathers and mothers able to give their children their dreams and to realise them for themselves. And so it is an important work, Mr. Speaker , and we look forward to the delivery of these practical steps that we are taking. And I believe, Mr. Speaker , that the steps we are taking in 2018, this very positive time that we are facing, will begin to consolidate into and compound into ever -incre asing— everincreasing— opportunities. I commend and congrat ulate the Cabinet as led by the Premier and Finance Minister for this National Budget and for its focus and for its accomplished prospective even in the face of some of the constraints in which it o perates. And so I conclude, Mr. Speaker —
[Inaudible interjection] Hon. Michael J. Scott: —that is the . . . I hope I have created some interest with that short skirt, Mr. Speaker, thank you. And so I conclude by noting that there are many things that we can do. I am concerned partic ularly as I walk around the streets of Hamilton about the homeless that we see in the doorways of our businesses. I believe that there is an initiative there that needs to be addressed. And I have spoken with the Minister of S ocial Development. I have spoken to a number of people that have possible and very good solutions where we can just address it, take them out of these conditions, introduce them into a clinical se tting and a training setting. And, Mr. Speaker , during the course of the year we have heard about deaths on our streets through bad driving practices. There is a police course, course number 2, and I gathered this from a citizen today, that course is necessary and I commend it and will commend it to the Deputy Premier, it changes behaviour, it makes you use good driving skills while on the road. The police officer with whom I spoke this morning urged me to look at course 2— there is a course 1 and there is a course 2. But what needs to happen on our roads is we need to change behaviour. Well, we are not going to do it just by a campaign —Please, let’s change behaviour. We could introduce a course and cause people to take it. The courts could make it a requirement for traffic violators. That is another matter that we c an deal with. Under the area of justice, Mr. Speaker —
The SpeakerThe SpeakerThank you, Member. Hon. Michael J. Scott: Thank you.
The SpeakerThe SpeakerDoes any other Member wish to speak? No other Members wish to speak? Oh! I was looking over there for somebody on that side. Okay. All right. Minister, I thought someone on the other side might have gotten up, so I was looking to my left that time. But — …
The SpeakerThe SpeakerNo, no, no, if no Member on that side wishes to speak, we will take you Minis ter. Go ahead. I recognise the Honourable Minister Caines. You have the floor. [Inaudible interjections] Hon. Wayne Caines: If—
The SpeakerThe SpeakerYou are okay, Minister. Minister, I have recognised you, you continue, Minister. Hon. Wayne Caines: Mr. Spe aker, I listened to the Reply from the Opposition Leader. I was confused. But I allowed myself to go through the process of tr ying to be as objective as possible as I …
You are okay, Minister. Minister, I have recognised you, you continue, Minister. Hon. Wayne Caines: Mr. Spe aker, I listened to the Reply from the Opposition Leader. I was confused. But I allowed myself to go through the process of tr ying to be as objective as possible as I listened. Mr. Speaker , I listened as she lauded the success of the America’s Cup.
The S peaker: Mm-hmm. Hon. Wayne Caines: I listened as she lauded the success of the tourism figures. As a matter of fact, Mr. Speaker , the Honourable Member said that the Pr ogressive Labour Party (and I paraphrase) should give thanks to the OBA for the success that it is seeing, and any balanced budget that we have we should lay the success or the platitudes at the feet of the OBA for
Bermuda House of Assembly the hard work they did in the four years pursuant. And I understand that she believes that everyone telling the Progressive Labour Party that this is a balanced budget, that it is well -thought -through, that it highlights key areas in our society . . . I can see, Mr. Speaker , that the thinking is that the OBA should get credit. I understand their thinking. But if you follow that logic, Mr. Speaker , we should be able to then lay the exodus of a number of people from this Island be-cause they could not find job opportunities . . . well, that should be laid at the feet of this now Opposition. The bus debacle, not having enough buses on our streets and the problem that has caused in our educational system, but if we followed that —
Hon. Jeanne J. Atherden: Point of order, Mr. Speaker.
The SpeakerThe SpeakerMinister, will you . . . you have a point of order, Opposition Leader? POINT OF ORDER [Misleading] Hon. Jeanne J. Atherden: Yes. I believe the Ho nourable Member is misleading the House. We did not say that the bus debacle should be laid . . . the bus debacle …
Minister, will you . . . you have a point of order, Opposition Leader?
POINT OF ORDER [Misleading]
Hon. Jeanne J. Atherden: Yes. I believe the Ho nourable Member is misleading the House. We did not say that the bus debacle should be laid . . . the bus debacle has nothing to do with the budget. Sufficient money was there for the buses to be pur chased.
The SpeakerThe SpeakerWe heard your point of order. Minister, you can continue. Hon. Wayne Caines: The facts reveal that there was not enough money in the budget to purchase the buses required to take our young people to school. That is fact! That is fac t! [Inaudible interjection] Hon. Wayne Caines: And …
We heard your point of order. Minister, you can continue.
Hon. Wayne Caines: The facts reveal that there was not enough money in the budget to purchase the buses required to take our young people to school. That is fact! That is fac t!
[Inaudible interjection]
Hon. Wayne Caines: And if the money was there, why did they not use it? Why did they not order them? Why were the buses not there on time for the start of the school year?
[Inaudible interjections ]
The SpeakerThe SpeakerMembers! Onl y one Member is on his feet. That is the only Member I want to hear from. [Inaudible interjections]
The SpeakerThe SpeakerMembers! Hon. Wayne Caines: Mr. Speaker , if follow the logic of the success of the OBA one would then have to wonder, if they were so succ essful, if they were so strong, if they had Bermuda’s interests so great at heart, why are they sitting in Opposition? The …
Members!
Hon. Wayne Caines: Mr. Speaker , if follow the logic of the success of the OBA one would then have to wonder, if they were so succ essful, if they were so strong, if they had Bermuda’s interests so great at heart, why are they sitting in Opposition? The people of this country saw through the smoke and they saw through all of the platitudes and they voted them out. The Progressive Labour Party now has pr esented a budget that is a thinking man’s budget. We sat at the PwC’s meeting at Monday, and we sat with the leaders of industry. And what did they say one after the other? They rose to their feet to congratulate the Premier and Minister of Finance for a balanced, well-thought -through and systematic presentation of this country’s budget. There is nothing that they can do to take away from that. Mr. Speaker , I move to the comments that the Leader of the Opposition [said] as she spoke to cryptocurrencies. Mr. Speaker , it is almost as if we plan to scaremonger our way through the next four years. Let us be clear. It is not lost on anyone that going into blockchain cryptocurrencies or the distributed ledger space must be done measured, it must be done sy stematically, it must be done in consultation with all the key stakeholders. And that is what is being done. The Bermuda Monetary Authority is being consulted. The banking community are being consulted. The BMA, I will say it again, they are part of this process. We realise that this train, no matter how much we do not like it or we are not a part of it, the cryptocurrency space is moving rapidly. And what has this Government said? We have said that we would like for Bermuda to be a part of i t; nay, we would like for Bermuda to be lea ders in this space. Mr. Speaker , whenever you are a leader you have to be forward- thinking. But, more importantly, you have to put the building blocks in place for success. What do the building blocks of success look like? They look like having the right people from the key places advising the Government. We have one of the leaders that have been advised of the OECD a dvising the Bermuda Government, the people that have built exchanges in Canada and all throughout the world. We are part of the Caribbean Blockchain All iance. This is a cryptocurrency space, Mr. Speaker , that is evolving quickly, where governments throug hout the Caribbean are talking together. They are looking at the nuances, they are looking at the w eaknes ses in this area and acknowledging that this is an area where there should be concern, but there should not be fear mongering. We understand that this country has a blue- chip reputation as it relates to our finance and to our banking, and we will do nothing to jeopar dise our reputation in this space. We realise that we must be systematic, we must be organised, and we must focus on that which this requires. So what are we doing? Again, we will bring legislation in the not too distant future and we will pass the necessary legislation that will see companies coming to Bermuda to have their initial coin offerings, to set up their companies, and see Bermuda as a place of domicile. 1068 23 February 2018 Official Hansard Report
Bermuda House of Assembly Why is this important? It is important, Mr. Speaker , because there are a number of Bermudians who are tired of being told that there are no opportunities in Bermuda, or are being denied for loans by our lending establishment, or looking at the accoutr ements of success and not being able to be a part of that which makes our country stronger. I talked to a young man (and I have given this example before) who had been incarcerated, Mr. Speaker . He now finds himself . . . he was told that he could no longer hold a bank account in Bermuda. Because of the AML (anti-money laundering)/KYC ( know your customers) he could no longer have a bank account because he had a criminal conviction and he was deemed a risk by his bank. We went through the barbershop and three men indicated that because of their criminal convi ctions for drug- related offences they had been told by their banks that they could not . . . they presented a banking risk. And guess what? We understand what our country is doing to preserve our international repu-tation. This Government knows that we have a CFATF assessment coming up— the first part in March when they will come and do the assessment and the second part in September when we will have the actual test in earnest. I sit as a part of the NAMLC group. We realise and we take this seriously. Do you think that this Government i s fool - hearted enough to go into a space when we know everything is at stake and jeopardise our international reputation in a flight of fancy? We understand what is at stake. Because we are moving quickly, do you not think that we have the ability to walk and chew gum at the same time? Of course we will do that which is r equired to make sure our international reputation is pr otected. Of course we will meet with the necessary i nternational regulatory bodies to make sure that our Government is protected. Do not be fooled by haste to think that it is exuberance. This Government is pr epared for the challenges. And what is the challenge? Do you think that we do not realise that our very exis tence is at stake? While people plan boating excursions and have islands that have to be paid for . . . will they pay for themselves? This Government knows that we must do things that are avant -garde, that are strong in this space, to protect the future of our grandchildren. And we believe that through blockchain technology and cryptocurrencies that this Government can make a difference, and in making a difference bring companies to Bermuda, having people set up in Bermuda, creating opportunities that are non- traditional, putting distributive ledger technology to work, like putt ing our land registry on the blockchain, using it at TCD, creating opportunities for young entrepreneurs —that is what this space entails. And guess what? Somebody is going to look. Mr. Speaker , my grandfather who was a carpenter used to say, Fools and chi ldren should not see unfi n-ished work. In other words, we are putting together something that potentially could revolutionise . . . no matter what you say, blockchain and cryptocurrencies are here to stay. The world will continue to evolve. And what this Government has said is that we will be leaders in this space, that we will make sure that we have the necessary regulation in place, that we will consultative with private and public sectors, that we will make sure that we look at it, but we believe that we must be in this space. You can look all you want and look for what it is saying around blockchain technology. I challenge anyone on the other side to tell me that they understand this technology outside of what they have read with a basic Google search. I can guarantee that they have not done a centile of in- depth research and they cannot tell you anything on this space but the scar emongering that their friends and people that are trying to keep money to themselves, in their pockets, away from it being de- centralised in this country. Let us be clear. We believe that this is an opportunity for us to revolutionise like the rest of the world through this new form of technology. It is our opportunity to be leaders in this space. And we will not allow the Opposi tion to scaremonger the people of Bermuda. Why, Mr. Speaker ? We had a discussion on the lawn and we simply thought there were going to be 10 people on the lawn to discuss our cryptocurren-cies in Bermuda. And so we said to everybody on this week Wednesday, Mr. Speaker , to bring your lunch and come down to Cabinet and we will discuss cry ptocurrencies. Mr. Speaker , to my surprise—nay, to my amazement —we walked down to the Cabinet lawn for our basic introductory discussion on cryptocurrencies and there were 124 people sitting on the lawn —young people, white people, black people, middle class, upper class, working class.
[Desk thumping]
Hon. Wayne Caines: What did that tell this Gover nment, Mr. Speaker ? It told this Government that the people of Bermuda are sophisticated, that they are knowledgeable, that they have been looking at this form of technology before the governments were look-ing at it, that they have an indelible understanding of it, that they are working to it. And they shared with us one . . . everyone had the same question that was in that space: Mr. Minister, how can I be a part of this blockchain tec hnology? In other words, I’ve gone to school or I’ve been working in industry and I’ve been working in business and how do I . . . am I a part of th is Berm udian dream? How do I get my proverbial house on the hill? How do I stop having to rely on that which is keeping me in bondage? How do I become an independent person? Do I believe that cryptocurrencies will save the world and this is a magic bullet? No. It is a step in
Bermuda House of Assembly the right direction. Because what we are telling this country is that we are willing to think outside the pr overbial box. I get it. I actually get what the Opposition is saying. They are saying, Don’t destroy our reputation; don’t a llow this to come in and to overwhelm. Well, guess what? You can write what the chairman of the Bank of England said all day in your Reply. But let me tell you this: If you look at what is happening on the continent of Africa in this space and you look at how farmers are now able to farm using blockchain and cryptocurrencies, if you look at how it is springing and taking up the developing world, then why would we not in Bermuda? Where we have regulated reinsurance companies, where we are leaders in business , why would we try to evolve in FinTech and MedTech and in this space? Do you not believe that because they did it in the late 1970s and early 1980s in reinsurance, are we not smart enough to do it in cryptocurrencies in 2018? Of course we are. And let me tell you something else we are. We are brave, and we will fight hard, not only to keep Bermudians involved—
[Inaudible interjection]
Hon. Wayne Caines: Wakanda Forever! [Inaudible interjections ]
Hon. Wayne Caines: We will fight exceedingly hard to mak e sure that success does not have a hue . . . does not have a hue . . . that success does not have an address. In other words, we want people in this country to feel the business acumen, to feel success, from Tucker’s Town to Back o’ Town. We realise that we have work to do. I talk to my colleague, the Minister of Education, every day. We know what we have to do, and he is committed to it. We do not believe that this will happen in a vacuum. We understand that as a Government and as a country we have to roll up our sleeves and we have to work hard. But we come from a generation where hard work is no surprise to us. If you look at almost ever ybody in this room, bar one or two, on both sides of the aisle they came from working class Bermudian fam ilies. Very f ew silver spoons. We have to put our people back to work, and I get it. Oftentimes, Mr. Speaker , we expect performance without development. In other words, we want a country full of programmers without developing that talent. We want a country full of phil osophers without teaching philosophy. We have to now look at this through a different lens and through a different prism. And I think so long the capitalistic benefit or the mindset was to make a few people rich or to protect . . . and that is why so many people are afraid of the relaxing of the 60/40 [rule] because for such a long period of time they had been able to keep everybody else . . . this has served as a shield and a buckler to everyone else trying to get into international business or to get into specific industries in Bermuda. We realise that we can give safe harbinger to no entity. We want ever yone to have the opportunity to compete in a true fair market, to have the opportunity to set up a business, to get international help, if required, to get the best prices. Mr. Speaker , I close by saying this is an o pportunity, through cryptocurrencies, through bloc kchain, to put our country on some very good footing. This Government . . . I have to say this clearly: We will not jeopardise our CFATF assess ment. We realise that it is coming. We have key leaders in industry that are advising us that have been in this space, that are talking with the relevant agencies around the world, we have been conversing and meeting with the Ber-muda Monetary Authority wit h key law firms in Berm uda, we have been working with significant bodies to ensure that we have a disciplined and systematic approach to going in this space. It is indeed not a flight of fancy. It is a fight for our economic survival. And we believe, and this Go vernment believes, that we have the opportunity to do things differently, Mr. Speaker . We have an opportunity, Mr. Speaker , to involve the mass, to involve the average person, and we believe that this can decrease the debt. We have a significant deb t that will cripple us if we do not do things in a quick and hurried time basis to regularise that debt. Mr. Speaker , I thank you for the time and those are my remarks, sir.
The SpeakerThe SpeakerThank you , Minister. You jumped in and pinched hit and did a very good job. Does any other Member wish to speak? I now recognise the Honourable Member from constituency 10 [sic]. Honourable Member Cannonier, you have the floor.
The SpeakerThe SpeakerTwelve, rath er, it is [constituency] 12. I stand corrected.
Mr. L. Craig CannonierI am actually happy that the Honourable Member Caines just got up. I kind of was starting to doze off a little bit, and he has woken me up.
The SpeakerThe SpeakerI almost put the gavel down, nobody was moving before you got up, you know. You saved the day for everybody. [Laughter]
Mr. L. Craig CannonierSo I am encouraged that he has a passion and drive for this blockchain and I will 1070 23 February 2018 Official Hansard Report Bermuda House of Assembly . . . because he just sat down or pretty much just walke d out probably, I want to make sure that …
So I am encouraged that he has a passion and drive for this blockchain and I will 1070 23 February 2018 Official Hansard Report
Bermuda House of Assembly . . . because he just sat down or pretty much just walke d out probably, I want to make sure that he understands that there are many of us, if not all of us, who are quite supportive of this drive . . . blockchain. If we do not engage we will be left behind, bottom line. So I understand his passion for wanting to move forward with this here. [He] maybe a bit mi sguided in believing that there was some cause for concern from the Opposition concerning blockchain. The only concern was that regulation be in place so that our reputation is kept. And I believe that he has said that he is looking to ensure that we keep our reputation stellar. And it is now up to him, he is the Mini ster. It is now up to him to make it work. So the proof is never ever in the words that you speak. The proof is in whether you can make it happen. That is the key right there. And so I am encouraging him to move forward. Anytime he wants to talk to me . . . in fact, I do own some bitcoin. So I u nderstand it. I see where it is going. And I am sure that there are other Members within these Honour able Chambers who own some cryptocurrencies , whether it be bitcoin or one of the others. So we encourage this Government to move forward with this. It is aspirational. It does mean that it is not going to bring about a panacea at this particular time. Work must be done. But it is up to governments to look down the road to implement things that will encourage investment, will encourage and secure our future down the road. So I wanted to just say that off the bat so that he does not feel that we have som ehow tried to cast a shadow on this blockchain and the direction that he wishes to go. Mr. Speaker , I want to thank you for this opportunity and I want to first say that, out of protocol, I tip my hat to the Premier. This budget . . . quite fran kly, in my esti mation, the PLP has out -UBP’d the OBA with this budget, okay? [Laughter]
Mr. L. Craig CannonierQuite frankly, the PLP has out-UBP’d the OBA with this budget. And I understand the challenges that he has. I have sat in that seat before, and I know what i t means to be the Premier and trying to figure out a way forward. But I also want to …
Quite frankly, the PLP has out-UBP’d the OBA with this budget. And I understand the challenges that he has. I have sat in that seat before, and I know what i t means to be the Premier and trying to figure out a way forward. But I also want to say this as I open up, that sometimes when I listen to the PLP the rhetoric does not match the writing on the wall. And we need to be very careful in these Honourable Cham bers and outside of these Honourable Chambers about the words that we speak because they will come back to bite you. And if the rhetoric does not match the writing on the wall, I can assure you that within your own base you will have issues. So some explai ning has to be done and pe ople want to understand exactly where we are going, but you cannot . . . you cannot campaign on Two Bermudas and then change the 60/40 rule, because it is encouraging the status quo. [Inaudible interjection]
Mr. L. Craig Cannonie rYes, I am going to stir it up! There needs to be a little fire in here. And I get why we need to change it. But you cannot double Dutch on your words and give rhetoric to Two Bermudas and this budget has done nothing but support the oligarchy …
Yes, I am going to stir it up! There needs to be a little fire in here. And I get why we need to change it. But you cannot double Dutch on your words and give rhetoric to Two Bermudas and this budget has done nothing but support the oligarchy . . . has done nothing but to support one of the status quos that, quite frankly, is not your base. So I am hoping that your budget is aspiratio nal, yes. But I am looking for the proof in the pudding that what you said you were going to do you are going to do, because I am a black entrepreneur in this country and I do not see anything in this budget that is going to encourage my business. Nothing, except for more cost, more cost and most cost. And I hire 100 per cent Bermudian . . . majority, almost 100 per cent black Bermudian. And to see this budget is a throw at me and the other black entrepreneurs that are out there who are looking for some encouragement, who are looking for something to ensure that they can continue to hire Bermudians. We constitute the majority of those people in Bermuda who are hired. So I hope that the Backbench of the PLP e ncourages the Premier to get something going . . . if it is not in this budget you better get it going this year, because there are many entrepreneurs out there right now who are concerned, who are, quite frankly, upset because we are looking for the light at the end of the tunnel. Now do not get me wrong. I am saying that this is a great budget, but there are some things that are missing. And the rhetoric that I heard durin g the campaign of the PLP is not backing up some of that. So I hope . . . I hope—
The SpeakerThe SpeakerMember, if you yield we will take a point of order. What is your point of order? POINT OF ORDER [Misleadi ng]
Mr. W. Lawrence ScottThe Honourable Member is misleading the House. The PLP ran on a campaign of bridging the divide or the gap between the Two Bermudas and the Honourable Member that is speaking right now is sa ying that nothing has been done . . . that he does not think anything …
The Honourable Member is misleading the House. The PLP ran on a campaign of bridging the divide or the gap between the Two Bermudas and the Honourable Member that is speaking right now is sa ying that nothing has been done . . . that he does not think anything has been done for the young entrepr eneur. They promised 2,000 jobs that they did not de-liver, and we are now having to deliver those jobs by providing an opportunity and creating an environment in which job creation is favourable. That is what the PLP is doing now. And if he does not understand that
Bermuda House of Assembly as an entrepreneur, then I feel sorry for his business and his employees.
Mr. L. Craig CannonierThank you, Mr. Speaker . This is coming from the man who knows where Mickey Mouse lives. He has not a clue about what it means to run a business in this country —
The SpeakerThe SpeakerHe made reference to your business operation; he did not make reference to you persona lly in your life. When you go to calling names, that is a different level. We are not going to have any name-calling.
Mr. L. Cr aig CannonierBut . . . thank you, Mr. Speaker . I repeat my words. This is the young gentl eman who knows where Mickey Mouse lives, okay? So when I look at — [Inaudible interjection]
Mr. L. Craig CannonierHe said he knows where it is. He is the one in the House who said it. He knew the address, he said it.
The SpeakerThe SpeakerMember, Member, I asked you to move off of it. Move on. Your speech was okay until now. I am asking you to move forward.
Mr. L. Craig CannonierThank you, Mr. Speaker . And this is com ing from a gentleman who is supporting this budget. Okay? But I recognise that there is some rhetoric that has been said by the Government of this House that they are going to have to pay for with that rhetoric if …
Thank you, Mr. Speaker . And this is com ing from a gentleman who is supporting this budget. Okay? But I recognise that there is some rhetoric that has been said by the Government of this House that they are going to have to pay for with that rhetoric if they do not address some of the issues in this country. And [there] is silence because it is true. [Inaudible interjection]
Mr. L. Craig CannonierAnd so what I want to . . . yes, absolutely rubbish. It is also rubbish . . . you know we have got to heal this country. But I hear from the Government of this House saying to Joe, well, bye-bye Joe— [Gavel] [Inaudible interjections]
Mr. L. Craig CannonierSo Mr. Speaker , yes, I want to light up some fire here because I am encouraged by what I see in here. But more needs to be done. And I am hopin g that the PLP Government does more to incentivise the people who hire the majority of Bermudians …
So Mr. Speaker , yes, I want to light up some fire here because I am encouraged by what I see in here. But more needs to be done. And I am hopin g that the PLP Government does more to incentivise the people who hire the majority of Bermudians in this country. And it is not here. It is not here. We are supporting big business for sure. And maybe I should speak to that supportively because the 60/40 rule, quite frankly, is not going to affect some of the mom -and-pop shops around here, maybe a few, but not in the majority. And the last time that we saw . . . not the last time, but when we saw the 60/40 rule relaxed under a PLP Government, HSBC came in with 2,000 jobs, and we now have 500. So there is going to need to be some balancing and you are going to have to watch this whole 60/40 rule very closely. You have got some smart people over there, so I am encouraged and hoping that you watch this thing very closely because we cannot go through a nother HSBC debacle where we have 2,000 people here hired and we go down to 500, maybe less. Abs olutely, yes. Do your homework, absolutely. And so we are going to have to watch this whole thing very clos ely. Now t hat I have gotten that out of my system here, I thank the Premier (protocol) for this budget. I am a bit confused as to who, quite frankly, put this budget through. And I will be frank with you because when I go through this budget I saw this all in the Throne Speech Reply in 2015. Remember that piece of prosperity? So I get it. But I remember the Oppos ition Leader at that time, Marc Bean, when he read this thing and most of it is in the budget, he took flak from his Members. In fact, he had to stop reading because so many of his Members in the back here were grumbling and complaining. I remember that very clearly in this House. I am glad to see these things. He came out in front and said it and said this was where we needed to go, but I did not hear any of this stuff being said during the election campaign. I did not hear it. So, let us talk about fiscal prudence because we have been castigated as being . . . taking austerity measures and that is a political word, most definitely.
[Inaudible interjection]
1072 23 February 2018 Official Hansard Report
Bermuda House of Assembly Mr. L. Craig Cannonier: Yes, yes, yes. But I will tell you what; I cannot thank the former Honourable Member Bob Richards for the stellar job that he did.
[Desk thumping]
Mr. L. Craig CannonierI cannot thank him enough. And I know it was painful for m any of us on this side who wanted to do things, like you said, buy buses and different things. We wanted to do these things. But it was prudent that when we campaigned on the fact that …
I cannot thank him enough. And I know it was painful for m any of us on this side who wanted to do things, like you said, buy buses and different things. We wanted to do these things. But it was prudent that when we campaigned on the fact that we were going to be fiscally prudent and that he was going to have to t ighten up the purse to get our deficit down to move us towards a balanced budget, he stuck to his schedule with a tenacity that some of us hated . . . hated! But could you imagine, Mr. Speaker , if we had brought the 60/40 rule to the House, an OBA Go vernm ent that was supposed to be pro- business, how we are castigated as, and anti -Bermudian . . . you know? And I am hearing about the airport. Well, we are going to talk about the airport as well . Yeah, yeah, yeah, we will talk about the airport —
[Inaudible i nterjection]
Mr. L. Craig CannonierYeah, yeah, yeah, yeah, yeah. And this is actually coming from one of the Members. And when I was talking about words, Mr. Speaker , I want to make sure that everybody hears this. You cannot, just because someone says of a di fferent persuasion that they feel like they …
Yeah, yeah, yeah, yeah, yeah. And this is actually coming from one of the Members. And when I was talking about words, Mr. Speaker , I want to make sure that everybody hears this. You cannot, just because someone says of a di fferent persuasion that they feel like they need to leave Bermuda, that you say, Bye-bye Joe. No. That is not the Bermudian way, Mr. Speaker . That is not the Bermudian way. Joke? I bet you they did not take it as a joke. I bet you they did not tak e the joke. [Inaudible interjection]
The SpeakerThe SpeakerLet me remind you that there is one Member speaking and that is the only voice I should be hearing coming across.
Mr. L. Craig CannonierThe fact is that it is rhetoric that is not encouraging. And that is one of the major problems that we have in this country. In order for us to bring things together we have got to tone down the rhetoric, and we have got to act more and say …
The SpeakerThe SpeakerI will take your point of order. POINT OF ORDER [Imputing improper motive]
Mr. W. Lawrence ScottThe Honourable Member is imputing improper motive in the sense that it was his Member, when they were Government, that called Christians “Kool -Aid drinkers” and said that if they did not like the way that the Government was going, they could leave the Island. [Inaudible interjections]
The SpeakerThe SpeakerMembers, Members, let us try and keep this current to w here we are today so the debate can move along on the matter set before us. Thank you.
Mr. L. Craig CannonierNo one on this side told somebody to leave the Island. So you prove it. Do not get up and start quoting stuff that you cannot even back. So I want to thank —
The SpeakerThe SpeakerPoint of order? POINT OF ORDER
Mr. W. Lawrence ScottMr. Speaker , the Member is recorded in Hansard, the former Honourable Member Mark Pettingill. The Government was talking about same -sex marriage and that is when he referred to Christians as Kool -Aid drinkers, and said that if they did not like the direction that the Government was tak-ing …
The SpeakerThe SpeakerThank you. Bermuda House of Assembly Mr. L. Craig Cannonier: Yes, he did do that. Thank you, Honourable Member , a round of wonderful, wonderful, wonderful words. Maybe what I should do is start quoting some of the words and the rhetoric that I heard also from the Government, okay? …
Thank you.
Bermuda House of Assembly Mr. L. Craig Cannonier: Yes, he did do that. Thank you, Honourable Member , a round of wonderful, wonderful, wonderful words. Maybe what I should do is start quoting some of the words and the rhetoric that I heard also from the Government, okay? And this country would be embarrassed by some of the things that have been said by Honourable Member s on that side. So I want to go back to the fact that this Budget, being a good budget, and that the former Honourable Finance Minister Bob Richards did a ste llar job. And the only reason that our Premier, the F inance Minister, could bring such a balanced budget is because of the work and the tenacity of the former Finance Minister that made this happen . . . that made this happen. Wonderful. Wonderful. But you know what? I will get up and give the Government accolades. But for the life of me you cannot get one of them to stand up and say, Well, you know what? Yeah, Bob Richards did a really good job with things here. He might not have always said what we liked, but I tell you what, his actions speak loud in this budget. His actions speak loud . . . and it does not have to be wrong to thank him . . . it does not have to be— [Inaudible interjection]
Mr. L. Craig CannonierThat is right. And I am hoping that the Honourable Member that has replaced him is —
The SpeakerThe SpeakerMember, continue on, continue on.
Mr. L. Craig CannonierI am not sure what point of order that was . . . Mr. Speaker , I think you need t o tighten up on these points of order. So as a proud Member of the Wak anda I want to say that there is a lot of work to …
I am not sure what point of order that was . . . Mr. Speaker , I think you need t o tighten up on these points of order. So as a proud Member of the Wak anda I want to say that there is a lot of work to do. There is a lot of work to do. A lot of work to do. But let me just go, Mr. Speaker , and this is when I start talking about words on the very first page here. And you know what? I also want to say that when I saw this here back in 2015 by Marc Bean and saw the response from his own Members, and I was sitting there watching this thing here . . . that was the beginning of his end. That w as the beginning of his end. So I am hoping, and I am encouraging them to call Marc Bean and bring him back, because he was talking about all this here. This is what he was talking about, this Budget that we have right now, very asp irational.
The SpeakerThe SpeakerTalk to the Speaker. Talk to the Speaker. Keep it coming this way. Keep it coming this way. Don’t be distracted. Don’t be distracted.
Mr. L. Craig CannonierMr. Speaker , I am not di stracted at all because if the Honourable Member really wants me to go into things, he might cringe and keep his mouth quiet! Okay? So, Mr. Speaker , I am going to go to the number 1 page of this Budget. The number …
Mr. Speaker , I am not di stracted at all because if the Honourable Member really wants me to go into things, he might cringe and keep his mouth quiet! Okay? So, Mr. Speaker , I am going to go to the number 1 page of this Budget. The number 1 page of this Budget, Mr. Speaker , says: “The results of July 2017’s General Election are concrete proof of the rejection of trickle -down economics.” And I was quite surprised that this was actually in there. And the reason I say that is because the budget really is a reflection of what he is talking about. And I would much prefer to have at least one slice than no slice at all, okay? So we might not have a lways gotten everything right, but the interest was always to empower all Bermudians in this country. Which leads me to America’s Cup, because it has been used and bantered around as a football —the America’s Cup. But let us just be clear, everyone, that the America’s Cup was started under my direction. We are going to be clear here. And the vision was this,
Mr. SpeakerThe vision was we had an opportunity . . . you know those status quo people that the PLP talks about? Those Two Bermudas? The opportunity was this, that we would be able to get some of these status quo people, who will invariably use the 60/40 rule that we …
The vision was we had an opportunity . . . you know those status quo people that the PLP talks about? Those Two Bermudas? The opportunity was this, that we would be able to get some of these status quo people, who will invariably use the 60/40 rule that we have reversed to bring money to this country, that we could get them there, and my conver-sations with the Honourable Dr. Grant Gibbons were, Listen, this has to be an opportunity for all Bermud ians . . . for all Bermudians. Now, let m e just get to how I saw it being an opportunity for all Bermudians. We could rub shoulders with many of these folks who would invest in this country.
[Inaudible interjection]
Mr. L. Craig CannonierYes. Yes, oh, yes, it happened . It happened, because I do not know who they were talking to. But I can tell you right now that while I was the Minister of 1074 23 February 2018 Official Hansard Report Bermuda House of Assembly Works I saw over a two …
Yes. Yes, oh, yes, it happened . It happened, because I do not know who they were talking to. But I can tell you right now that while I was the Minister of 1074 23 February 2018 Official Hansard Report
Bermuda House of Assembly Works I saw over a two -year period hundreds of jobs being created. And do you want to know who was i nteracting with them? The status quo. Yes! And the status quo was going to many of the sports clubs and the likes and investing money in them and fixing them up. Going to boat clubs and fi xing them up. Yes, they were. Oh, yeah. Just go up to WEDCO and you can ask them. The whole list is there and the hundreds of contractors that were up there like Kitty Pearman and the likes doing work that otherwise, Mr. Speaker , would not have been created had the America’s Cup not come. Now it is okay for the PLP to say, Well, you know, we’re gonna give families $700 and a couple of dollars change annually a year because something is better than nothing. But guess what? That is what the America’s Cup was behind as well —get a little som ething going on and some awareness of this beautiful place and beautiful people —all 36 of us. And if you did not take the opportunity to go up there to rub some shoulders with some status quo, then woe on you. You did not take advantage of it . You did not take advantage of it. But I did see jobs being created—hundreds of them —to the tune that Patrick Bean, one of their Members, got on the news and said, Oh yes, a lot of jobs have been created up here. Now, it was for two years. It did not continue on, because the America’s Cup moved on. Now we are sitting . . . the point is that you pooh- poohed a ll over America’s Cup. In fact, some of you at first . . . this is what I heard . . . you could not even go up there. You could not go. That was the first word, No, no, none of us are going up there. Only for me to find the Premier up there at that time, okay? So there ain’t nobody saying anything different.
[Inaudible interjection]
Mr. L. Craig CannonierOn a number of occasions. So we cannot have it on one side and not on the other. The opportunity that we had as Bermudians and as a Government was to stimulate the . . . now, listen, we did it with Jazz Fest, didn’t we? We did it with …
On a number of occasions. So we cannot have it on one side and not on the other. The opportunity that we had as Bermudians and as a Government was to stimulate the . . . now, listen, we did it with Jazz Fest, didn’t we? We did it with the PGA, didn’t we?
Hon. Zane J. S. De Silva : Point of order, Mr. Speaker.
The SpeakerThe SpeakerHonourable Member , I will take your point of order. POINT OF ORDER [Misleading] Hon. Zane J. S. De Silva: The Honourable Member is certainly misleading this House and the people of Bermuda. The Honourable Member just said some words to the effect that none of the Progressive La-bour Party …
Honourable Member , I will take your point of order.
POINT OF ORDER [Misleading]
Hon. Zane J. S. De Silva: The Honourable Member is certainly misleading this House and the people of Bermuda. The Honourable Member just said some words to the effect that none of the Progressive La-bour Party people . . . the word was that none of us were going up there. In fact, many of us went up there, Mr. Speaker . If he is going to make a stat ement, I would ask for some proof please. Thank you very much.
The SpeakerThe SpeakerThank you. Continue, Member.
Mr. L. Craig CannonierThank you very much, Mr. Speak er. Yes, I will continue on because I said that is what I heard; that they were told not to go. I said that is what I heard. Hon. Zane J. S. De Silva: Withdraw that.
Mr. L. Craig CannonierI cannot withdraw what I heard. That is what I heard. So Mr. S peaker , just like I heard— POINT OF ORDER [Misleading] Hon. Zane J. S. De Silva: Point of order, Mr. Speaker. The Honourable Member is misleading the House, Mr. Speaker . He just told you that …
I cannot withdraw what I heard. That is what I heard. So Mr. S peaker , just like I heard—
POINT OF ORDER [Misleading]
Hon. Zane J. S. De Silva: Point of order, Mr. Speaker. The Honourable Member is misleading the House, Mr. Speaker . He just told you that is what he heard. And I think we know what the rules of the House are when it comes to hearsay. So it should be withdrawn.
Mr. L. Craig CannonierThank you , Mr. Speaker , I will continue on. Mercy! So Mr. Speaker , as I go on, I was trying to go through this thing here and I get to the second page and it is wonder ful. It says: “Mr. Speaker, this budget will lay the economic …
Thank you , Mr. Speaker , I will continue on. Mercy! So Mr. Speaker , as I go on, I was trying to go through this thing here and I get to the second page and it is wonder ful. It says: “Mr. Speaker, this budget will lay the economic foundation needed to change the economic status quo that has failed so many.” Listen man, I am looking for that . I am looking for that. But you cannot campaign on the rhetoric of Two Bermudas, but yet at the same time the budget empowers the status quo. And still I am waiting for something to empower the little man, because we have raised the cell phone bill, that is for sure. So I am looking for the stimulus here and the reason why it is getting so many accolades is because the status quo realised, Oh, wow. Whooooo! Yeah, I am talking about the status quo. So I am looking forward, that if it is not in the budget , that you are going to do som ething about bringing this equality that you talk about . I am looking for it. Our mandate was to make sure that we tightened up on the purse so that we could move towards that. And so we go on, Mr. Speaker , There was some mention about Cross Island, as well. And I want to say, listen, they are talking about th e debt of Cross Island. That was a PLP initiative. It was going to happen anyhow. The opportunity existed, it created jobs up there, and so it is here.
Bermuda House of Assembly So I am not complaining about Jazz Fest that we paid for. We did not make any profit off of it. I am not complaining about the PGA where we did not make necessarily any money out of it. It was an initi ative that they put in place because they were looking for incentive; they were looking for investment. That is what governments do. Not everything works, but to sit here now as an Opposition and to be able to say, Listen, every time we came up with an initiative . . . I mean, this country almost came to a standstill over certain things when they were initiatives. I mean, I know that there was a group that went down to the airport just two days ago, or yesterday or whatever it was. Seventy per cent of the wor kers are Bermudian; 200- plus contractors, subcontractors down there working. This is good. This is good. Now, there may be some other issues that they have with it. But at the end of the day what we were looking for was an opportunity to create jobs and that the main taxpayer of this country did not have to bear the brunt of the burden of this airport. And I see my friend trying to stand up, I am not sure what he wants. I am not sure what he wants to say.
The SpeakerThe SpeakerHold on, wait. I will take your point of order. POINT OF ORDER [Misleading]
Mr. W. Lawrence ScottYes, t he Honourable Member is misleading the House. Down at the airport what Aecon is trying to do, and has done, is circumnavigate local vendors by bringing in their own equipment so that they do not have to use local vendors. That not in line with what the Hon …
The SpeakerThe SpeakerMembers, let me remind you that you will have opportunity to rise on your feet and do your presentation. So save some of your c omments for your own presentation. Some of the points of order . . . Member, just take your seat while I am talking—
The SpeakerThe SpeakerSome of these comments are not necessarily truly along the line of a point of order. I have been lenient with them, but they can be part of your own presentations when you do get to your feet. Continue on, Member.
Mr. L. Craig CannonierYes, thank you, Mr. Speaker. I know my time is probably almost up now with all these points of order, despite the fact that I am proba-bly one of the greatest champions of this Budget as to where it is going. But I am looking for some other things to …
Yes, thank you, Mr. Speaker. I know my time is probably almost up now with all these points of order, despite the fact that I am proba-bly one of the greatest champions of this Budget as to where it is going. But I am looking for some other things to be included in here that I do not see that really speak to not only their base, but to guys like me who came from n othing (as we heard before) and who are looking for opportunities as we have built our businesses on this Island to ensure that they stay around. B ecause right now there is no incentive for the employer. No incentive for the employer at all, except for big business. And one of the things that we did do is we said . . . the Government has said that we are going to increase the tax on commercial properties. But, again, that affects guys like me and some of you who own your own businesses because we do not ow n the buildings. We pay for that land tax as a tenant. It is passed on to the employer who rents these spaces. The big shot sitting up on the hill already paid for his building, most of them, because quite frankly in the City of Hamilton, I do not know . . . there are one or two that I know are black -owned. I know a Portuguese in here who owns one or two.
Mr. L. Craig CannonierOh, yeah, yeah, yeah. Just so you know, my other side of the family is Port uguese. [Inaudible interjection]
Mr. L. Craig CannonierYeah, yeah. So, that cost is going to be passed down to the small - to medium - sized entrepreneur. So we are hurting here. And I just want to make sure that the — Hon. Zane J. S. De Silva: Point of order, Mr. Speaker.
The SpeakerThe SpeakerPoint of order. POINT OF ORDER [Misleading] 1076 23 February 2018 Official Hansard Report Bermuda House of Assembly Hon. Zane J. S. De Silva: And this is an important point of order because the Honourable Member is certainly misleading the House. He is assuming that everyone that rents a building …
Point of order.
POINT OF ORDER [Misleading]
1076 23 February 2018 Official Hansard Report
Bermuda House of Assembly Hon. Zane J. S. De Silva: And this is an important point of order because the Honourable Member is certainly misleading the House. He is assuming that everyone that rents a building in the city is under the terms of a London lease. When the Honourable Member just said that this is going to hurt all the small men, and blah, blah, blah, blah, blah, as he said, that is not necessarily true. The Honourable Member . . . it is two terms of leases. One is called a London lease and the other one is a regular lease. So he needs to make sure that what he talks about —
The SpeakerThe SpeakerThank you— Hon. Zane J. S. De Silva: —is fact.
The SpeakerThe Speaker—you made your point. Continue on, Member.
Mr. L. Craig CannonierThank you, Mr. Speaker . My point is that the majority of the entrepreneurs who are renting these spaces . . . I am one of them, I know that most of us will pay for this land tax. Not everyone. One way or the other we are paying for …
Thank you, Mr. Speaker . My point is that the majority of the entrepreneurs who are renting these spaces . . . I am one of them, I know that most of us will pay for this land tax. Not everyone. One way or the other we are paying for it. So, you know, he can get up and qualify it all he wants. But the point is, you know, I know and he knows. I know and he knows. So, it is fine to [raise a] point of order, and it is fine to go through and challenge things . . . oh, yeah. You are going to get an education with this Budget from your base, that is for sure. That is for sure. So we will see how things go. So, like I said, actions speak louder than words, Mr. Speaker . So I am looking—
Mr. L. Craig CannonierNo, no, no. No, Mr. Speaker , no. No. No. He has got his opportunity to speak, he has got his opportunity . He loves to speak after me anyhow.
Mr. L. Craig CannonierTwo minutes left. So let me round this out by saying quite frankly to the Premier, because he is the head of these Chambers here, I want to thank him for this Budget. You know, I will say again, I was kind of confused be-cause, like I said, this is …
Two minutes left. So let me round this out by saying quite frankly to the Premier, because he is the head of these Chambers here, I want to thank him for this Budget. You know, I will say again, I was kind of confused be-cause, like I said, this is out UBPing the OBA. And then I started thinking, well, who sits around? The Junior Finance Minister was UBP before. I do not know if that persuasion is i n this Budget, but it certai nly brings up questions . It certainly brings up questions. But I am glad to see that we are moving in a direction that most of this stuff is aspirational. I cannot say anything bad about the fact that this is a very aspirational budget. I am hoping that we see some of these things. But right now, as my youngest daughter says to me (who has her own family), Look Dad, here and now . Here and now. Do not give me the rhetoric. If the writing on the wall says this is what you are goi ng to do, then do it! That is what I am imploring because we have got some smart people over there [and] we want to see you perform. Because I will make this prediction here: that if the PLP does not perform during this term, it is going to get ugly. They have to perform this time. So thank you, Mr. Speaker , for this time. I know it is almost up. But the spirit of Bermuda is look-ing for healing. The people of this country are looking to come together, and I am hoping that the PLP Go vernment finds a way to bridge the gap between the status quo —these Two Bermudas that they talked about —and put aside the rhetoric and bring healing to this country. Thank you, Mr. Speaker .
The SpeakerThe SpeakerThank you, Member. Does any other Member wish to speak? I recognise the H onourable Member from constituency 11. Honourable Member Famous, you have the floor.
Mr. Christopher FamousThank you, Mr. Speaker , and thank you to the people of Bermuda. Mr. Speaker , do you believe in fate? [Crosstalk]
The SpeakerThe SpeakerContinue on, Member. Continue on.
Mr. Christopher FamousYes, it is fateful that the preceding speaker was the Honourable Member Cannonier from constituency 12. Mr. Speaker , we all have mothers and gran dmothers. And they have a saying. It’s not what you say, but it’s how you say it. It’s not what you do, but how you …
Yes, it is fateful that the preceding speaker was the Honourable Member Cannonier from constituency 12. Mr. Speaker , we all have mothers and gran dmothers. And they have a saying. It’s not what you say, but it’s how you say it. It’s not what you do, but how you do it. So I was sitting down listening to the Honourable Member , and it was like, Wow! It is almost fateful that he is speaking now , because I am going to speak to something that he did. Mr. Speaker , with your indulgence, I would like to read something from the Hansard.
Mr. Christopher FamousHansard dated December 16, 2015 [page 378]: “In accordance with section 2AA(3) of the Government Loans Act 1978, I rise this morning to inform this Honourable House of the execution of an unconditional” (I repeat, unconditional) “government guarantee for the West End Development Corporation payment obligations in relation to a …
Hansard dated December 16, 2015 [page 378]: “In accordance with section 2AA(3) of the Government Loans Act 1978, I rise this morning to inform this Honourable House of the execution of an unconditional” (I repeat, unconditional) “government guarantee for the West End Development Corporation payment obligations in relation to a $39 million credit facility provided by the Bank of Butterfiel d & Son.
B ermuda House of Assembly “The facility is related to the reclamation of 11.2 acres” (which really turned out to be 9 acres) “of land for commercial use, including the America’s Cup” (you know, the America’s Cup that they are bragging about) “at South Basin, Dockyard. The project loan term is for a period of six years from the date of initial drawdown. “Mr. Speaker, with the America’s Cup”(which they are talking about all day)“on the horizon, the Government is eager” (the OBA Government) “for the project to proceed and succeed, and is looking for-ward to working with WEDCO, the ACBDA [America’s Cup Bermuda] and the developer to achieve that objective. “Thank you.” Now, Mr. Speaker, it was clear, as most Bermudians could see. The OBA was attempting to make Bermudians feel like WEDCO was taking out this loan, that WEDCO was going to finance this loan, Mr. Speaker . I want somebody to point -of-order me.
The SpeakerThe SpeakerOf order? We will take your point of order, Member. POINT OF ORDER
Ms.
Susan E. JacksonYes. The point of order is if the Member wants to even go online to the WEDCO site, that land reclamation was part of a 10- year plan that was owned by WEDCO. So that was always in train. Always in train. And the date of that 10- year strategy …
Yes. The point of order is if the Member wants to even go online to the WEDCO site, that land reclamation was part of a 10- year plan that was owned by WEDCO. So that was always in train. Always in train. And the date of that 10- year strategy has been online for years and years. And if anything, it was the influx of the America’s Cup that made it at the quality that it is today.
The SpeakerThe SpeakerThank you. Continue on, Member from constituency 11.
Mr. Christopher FamousYes, Mr. Speaker , they continue to dig their own grave. Yes, Mr. Speaker . So for years we asked, how was WEDCO going to pay $324,000 per month for this land? And we got no answers. Zero. We asked WEDCO, no a nswer. We asked WEDCO Chair, no answer. …
Yes, Mr. Speaker , they continue to dig their own grave. Yes, Mr. Speaker . So for years we asked, how was WEDCO going to pay $324,000 per month for this land? And we got no answers. Zero. We asked WEDCO, no a nswer. We asked WEDCO Chair, no answer. We asked the OBA, no answers. Well, no answers until the former WEDCO Chairman, which was a two- time OBA candidate . . . A two -time OBA candidate, Mr. Ray Charlton decided to fess up on social media. Do you want to know what he said, Mr. Speaker ? [ Inaudible interjections] So me Ho n. Members: Yes. Tell us. What did he say?
Mr. Christopher FamousMr. Speaker, may I read something from Facebook? [Hon. Derrick V. Burgess, Sr., Deputy Speaker, in the Chair]
Mr. Christopher FamousDeputy Speaker, sorry, sorry, my apologies. “After all end uses were terminated by the courts the WEDCO board voted not to proceed.” Shall I repeat that, Mr. Deputy Speaker? “After all end uses were terminated by the courts, the WEDCO board voted not to proceed.” He goes on to say: …
Deputy Speaker, sorry, sorry, my apologies. “After all end uses were terminated by the courts the WEDCO board voted not to proceed.” Shall I repeat that, Mr. Deputy Speaker? “After all end uses were terminated by the courts, the WEDCO board voted not to proceed.” He goes on to say: “The Minister of Public Works directed WEDCO to proceed with the Government guarantee.” Now, my memory is a little short, a little, as they say, fuzzy, but I remember a board voted against something, but then they were forced to take a loan. They voted against it because they knew they could not afford $324,000 per month. Hon. Zane J. S. De Silva: Who was the Minister?
Mr. Christopher FamousOh, oh, oh, let me get to that in a minute, please, Mr. Deputy Speaker . Someone asked, Who was the Minister? The Minister of Public Works at the time was none other than the Honourable Member from consti tuency 12.
An Hon. Member An Hon. MemberWow! Say it isn’t so.
An Hon. Member An Hon. MemberWhat is his name?
Mr. Christopher FamousShall I say his name, Mr. Deputy Speaker ? The Honourable Member Craig Cannonier.
An Hon. Member An Hon. MemberTell me it is not so.
Some Hon. Members Some Hon. MembersNo! [ Inaudible interjections]
Mr. Christopher FamousDo I get a point of order? Do I get a point of order? Y ou forced the board to do something they did not want to do. Okay? So you know more than the WEDCO board?
The Deputy SpeakerDeputy SpeakerWhat is your point of order? 1078 23 February 2018 Official Hansard Report Bermuda House of Assembly POINT OF ORDER [Misleading]
Mr. L. Craig CannonierObviously, he is misleading the House. He does not know the full picture. There were some—
Mr. L. Craig CannonierThere were some serious illegaliti es—that I will not speak to in this House that were going on—
The Deputy SpeakerDeputy SpeakerWell, Honourable Member , if you are not going to speak to it, then you need to take your seat.
Mr. L. Craig Cannonier—concerning the Cross I sland development that does not involve us.
Mr. Christopher FamousMr. Deputy Speaker , I am waiting for him to deny that he forced the board. I have not heard a denial. Did anybody hear a denial?
The Deputy SpeakerDeputy SpeakerWhat is your point of order? POINT OF ORDER
Mr. L. Craig CannonierThis Honourable Member did not force . . . as a Minister, I had the right to give direction and I gave direction —just lik e many of the Ministers over there give direction.
An Hon. Member An Hon. MemberSo he just admitted to it. [Inaudible interjections]
Mr. Christopher FamousAnyway, moving along, Mr. Deputy Speaker . It is pretty clear . . . again, going back to [it’s] not what you say , but how you say it . It’s not what you do, but how you do it. Mr. Deputy Speaker , do you remember them telling us …
Anyway, moving along, Mr. Deputy Speaker . It is pretty clear . . . again, going back to [it’s] not what you say , but how you say it . It’s not what you do, but how you do it. Mr. Deputy Speaker , do you remember them telling us that the America’s Cup is only going to cost us $60 million . . . $75 million? T he ballpark kept moving. There is only one America’s Cup.
Mr. Christopher FamousIt kept moving. It started off at $77 million. Anyway, Mr. [Deputy ] Speaker , it is very clear why the OBA let WEDCO front for that loan. Why, Mr. Deputy Speaker ? Had the Government proper gone and took out that loan itself it would have been clearly that …
It kept moving. It started off at $77 million. Anyway, Mr. [Deputy ] Speaker , it is very clear why the OBA let WEDCO front for that loan. Why, Mr. Deputy Speaker ? Had the Government proper gone and took out that loan itself it would have been clearly that America’s Cup would have cost over $100 million, Mr. Deputy Speaker . So for the longest time they have been chattering this charade about, Oh, the America’s Cup was under budget. Well, it has been revealed that Cross Island now cost $48 million. If you round it off, Mr. Deputy Speaker , that is $50 million.
[Inaudible interjection]
Mr. Christopher FamousNow, I could be wrong, but the Honourable Member from [constituency] 29 pointed out a few months ago that the America’s Cup cost over $100 million. And they disputed it. I will wait for them to point -of-order me. [Inaudible interj ection s]
Mr. Christopher FamousWell, yes, my apologies. My apologies, Mr. [Deputy ] Speaker . I only went to government school so my math is way off. Forty -eight plus 67 is how much, Mr. [Deputy ] Speaker ? [Inaudible interjections ]
Mr. Christopher FamousAnyway, I am moving on, Mr. [Deputy ] Speaker . It is clear to Bermuda that the America’s Cup cost over $100 million. Anyone wish to point -of-order me? Okay, moving on. Again, it’s not what you say, but it’s how you say it . It’s not what you do, …
Anyway, I am moving on, Mr. [Deputy ] Speaker . It is clear to Bermuda that the America’s Cup cost over $100 million. Anyone wish to point -of-order me? Okay, moving on. Again, it’s not what you say, but it’s how you say it . It’s not what you do, b ut how you do it . Mr. [Deputy ] Speaker , I am going to move on, being as we were talking about the America’s Cup and the BTA. Mr. [Deputy ] Speaker , do you remember a few years ago that civil servants had to take a fur-lough day? Civil servants who were taki ng home less than $50,000, $60,000 had to take a 10 per cent cut. They did that voluntarily for two years. Then in Jan uBermuda House of Assembly ary 2015 the then- Finance Minister said, If you don’t do it voluntarily, we are just going to take it. An add itional 10 to add on . . . to extend the 10 per cent. Point -of-order me. Okay, thank you very much. Now, Mr. [Deputy ] Speaker , I have a cousin named Senator Jason Hayward who stood in front of thousands and said, I don’t know about you, but if somebody tries to reach in my pocket and take my money, there is going to be a problem. And thousands of civil servants camped out on Cabinet for three days. But, lo and behold, they reneged. But what happened, Mr. [Deputy ] Speaker ? They formed the BTA. They wrote legislation allowing the top execs of BTA to basically write their own cheques. As we found out recently, there are persons in the BTA taking in $300,000 base pay plus $100,000 in bonuses. I could be wrong, because, again, I went to government school. Four hundred thousand dollars per year! Now, I could be wrong again. But that seems to be much more than the Honourable Premier; more than you, yourself, Mr. Deputy Speaker . I could be wrong, but that is almost 10 times more than the av-erage MP is taking home. Now how does this work out? Do you want to point -of-order me, ma’am? Would you like to point -of-order me?
[Inaudible interjections ]
The Deputy SpeakerDeputy SpeakerMembers, Members, I will not tolerate this. So let us . . . carry on, Member.
Mr. Christopher FamousNow, Mr. Deputy Speaker , we all know how Bermuda tourism is vital to our r ecovery. So, yes, we all have to pitch in. But I do not see how anybody taking home $400,000 is helping us when we have civil servants, trash truck drivers, who are taking home …
Now, Mr. Deputy Speaker , we all know how Bermuda tourism is vital to our r ecovery. So, yes, we all have to pitch in. But I do not see how anybody taking home $400,000 is helping us when we have civil servants, trash truck drivers, who are taking home less than $40,000 a year. Now, are we a fair and equitable society? We have people in the BTA not making $70,000 a year. So, you know what, Mr. [Deputy ] Speaker ? I was so happy when my Honourable Premier said the Berm uda Government —the PLP Government —will give the BTA an extra million dollars for advertising, but not for bonuses and salaries, Mr. Deputy Speaker . Why? We need more people coming in and less people taking $400,000. Mr. [Deputy ] Speaker , let me move on.
The Deputy SpeakerDeputy SpeakerOne second, Member. [Gavel] The Deputy Speake r: Honourable Leader of the O pposition and Honourable Member Gordon- Pamplin, you will not have a conversation between me and the speaker. Stop it right now! Thank you.
Mrs. Patricia J. Gordon -PamplinMr. Deputy Speaker , may I —
Mrs. Patricia J. Gordon -PamplinI apologise. I was not having a conversation with the Leader of the O pposition for —
The Deputy SpeakerDeputy SpeakerMember, take your seat . . . take your seat. I can see right from here. Honourable Member , carry on.
Mr. Christopher FamousThank you, Mr. Deputy Speaker . I am going to pivot, Mr. [Deputy ] Speaker . It is a word l like to tell my honourable friend from consti tuency 2 . . . time to pivot. Because, you know, we have exposed the OBA for what they really are, …
Mr. Christopher FamousThank you, Honourable Member . Now, to the budget : It’s not what you say, but how you say it. Mr. Deputy Speaker , with your indulgence, I would like to read something else from the Hansard, if possible. Mr. [Deputy ] Speaker , on February 21, 2014 the then- …
Thank you, Honourable Member . Now, to the budget : It’s not what you say, but how you say it. Mr. Deputy Speaker , with your indulgence, I would like to read something else from the Hansard, if possible. Mr. [Deputy ] Speaker , on February 21, 2014 the then- Finance Minister, my friend, Bob Richards, tabled a 2014/15 OBA Budget where he outlined the OBA’s plan to introduce legislation before the end of the session to enable the Government to abolish, merge, modify or transfer Government functions to “an entity such as a company, a public service mutual, a registered charity or a trust body.” Essentially, Mr. [Deputy ] Speaker , they were planning on privatising Government services. Anybo dy wish to point -of-order me? Thought not. Essentially, privatisation, such as we have seen with the BTA, where just a few are making the most and ordinary Bermudians are being let go. Mr. [Deputy ] Speaker , fast forward to last week. My Honourable Premier, David Burt, JP MP, brought forward the concept of moving the 60/40 to the 40/60. And what did we get from some of these people on this side? How’re you gonna do that? That’s disadvantaging me. That’s disadvantaging the black guy. Your words, Honourable Cannonier. Now, Mr. [Deputy ] Speaker , I do not know about Honourable Member Cannonier where he is talking about the PLP base because I have never seen him run on the PLP yet.
[Inaudible interjections ]
1080 23 February 2018 Official Hansard Report
Bermuda House of Assembly Mr. Christopher Famous: I have never seen him in any other constituenc ies, because constituency 12 is not the PLP base. But I could speak about every Member on this side and some on the Robin Hood corner, which we will be expanding. We know our base, Mr. Deputy Speaker . We know our people. We know your people too.
Mr. Christopher FamousNo, you do not. No, you do not. Our people never voted for you, they just did not vote. Your people voted for us. [Inaudible interjections ]
Mr. Christopher FamousAnywa y, moving on, Mr. [Deputy ] Speaker . We know our base. We know our people do not want to be just begging for jobs, beg-ging for financial assistance, begging their friends for help. They want to get out and do their own. Imagine, Mr. [Deputy ] Speaker . …
Anywa y, moving on, Mr. [Deputy ] Speaker . We know our base. We know our people do not want to be just begging for jobs, beg-ging for financial assistance, begging their friends for help. They want to get out and do their own. Imagine, Mr. [Deputy ] Speaker . . . I am going to take lead from one of my learned colleagues , no, one of my brothers, brother Rolfe, [ constituency ] 21. Imagine, Mr. Deputy Speaker , two young men deve loping an app . . . I don’t know, an app to say where your garbage truck is, an app to say w here the bus is, an app to say whose got, I don’t know, the cheapest gas in Bermuda, and they need some financing. They go to the banks and the banks say, Well, Johnny and Jaheim . . . you only went to government school, so you don’t know math, so we ain’ t lending you no mo ney. [Desk thumping and laughter ]
Mr. Christopher FamousBecause I do not know, that is the story we get from our base when we knock on doors —people who have aspirations to own their own, whether it be their own house or their own bus iness , have been denied by the same status quo, who is their …
Because I do not know, that is the story we get from our base when we knock on doors —people who have aspirations to own their own, whether it be their own house or their own bus iness , have been denied by the same status quo, who is their base. Now, again, Mr. Deputy Speaker , Johnny and Jaheim are denied their loan. Now, do Johnny and Jaheim just give up their dream? Do they decide to do something maybe not quite legal? Or do the y say, Hey, the PLP have allowed foreign investors to invest in our dream? Now, I am hoping that they take option “C,” Mr. [Deputy ] Speaker . Do you know why? Because we need more of our people —our black people—to have their own businesses.
[Desk thumping]
Mr. Christopher FamousWe need less of our people relying on government jobs, although they are i mportant jobs, but they are blocked out of the private sector. I have a daughter. I just spent $200,000 ed ucating her. Do you know what? She says she is not coming home because there is …
We need less of our people relying on government jobs, although they are i mportant jobs, but they are blocked out of the private sector. I have a daughter. I just spent $200,000 ed ucating her. Do you know what? She says she is not coming home because there is no job for her. She is staying in England. And I am saying to her, Whoa, whoa, whoa, whoa, whoa! Daddy just spent $200,000 Bermuda dollars; you are going to find your way back to Bermuda one day to start your own business . And my daughter is just representative of hundreds, thousands, of Bermudians who cannot get into private sector and cannot get into their own business because of lack of financing, lack of opportunity, all right? Per-sons who are educated. Mr. Deputy Speak er, the 40/60 is a way for our people to empower [themselves]. So for the Honourable Member from [ constituency ] 12 to talk about, Oh, I don’t see how this is going to help your base. I don’t see how this is for the ordinary guy. You have no concept of the ordinary guy, mate.
[Inaudible interjections ]
Mr. Christopher FamousWould you like to point -oforder me? For anyone to say we in the PLP have no concept about what our base wants, [you] should be afraid of what our base is going to do.
Mr. Christopher FamousMoving on, Mr. Deputy Speaker , because I only have five minutes left. Mr. Deputy Speaker , I have been involved in this party all of my life. This party was formed five years before I was born. W hether it was in the bac kground or now in the …
Moving on, Mr. Deputy Speaker , because I only have five minutes left. Mr. Deputy Speaker , I have been involved in this party all of my life. This party was formed five years before I was born. W hether it was in the bac kground or now in the front, I have watched the PLP progress in this country things that other people did not want to do. When we were told only property ow ners could vote, Dr. Roosevelt Brown said, Hell, no. (Sorry, excuse my langu age.) He said, No, we must have universal adult suffrage. When we were told, Well, okay, you all can vote but we’re gonna have dual seat constituenc ies, we said, No, we’re gonna have single seat constitue ncies. When we were told, Oh, you’ve got to regist er to vote once a year, we said, No, there’s only going to be one registration. Once you’re registered to vote . . .
Bermuda House of Assembly all of these things were done to hold back the black people of this country. So now that we, by a mandate of 60 per cent of the people in this country, are in power, we are going to empower our people, not just politically, but economically. Do you know why, Mr. [Deputy ] Speaker? Because elections come and elections go. We do not want, when we win the next election, our people to still be in the same economic position.
An Hon. Member An Hon. MemberHere we go! [Desk thumping]
Mr. Christopher FamousYes, Mr. [Deputy ] Spea ker, in the budget . . . in the Throne Speech . . . in the Reply to the Throne Speech by the Honourable Marc Bean, he spoke [about] a lot of visionary stuff. Some of us did not quite understand it at the time. …
Yes, Mr. [Deputy ] Spea ker, in the budget . . . in the Throne Speech . . . in the Reply to the Throne Speech by the Honourable Marc Bean, he spoke [about] a lot of visionary stuff. Some of us did not quite understand it at the time. But do you know what he said most that resonates with us? We must do for self, not beg people for anything. So the 40/60, Mr. [Deputy ] Speaker , as it is rolled out, in its due tim e, will allow Bermudians to do for self. We will not have to rely on America’s Cup be-cause we are going to do for self. We are not going to have to rely on hoping to get a BTA job to get a $400,000 bonus, because we are going to do for self. Mr. Deputy Speaker , I am going to now take my seat, but I want Bermudians to understand when they drive up to Dockyard and they look at that empty island, remember it is $50 million added to the Amer ica’s Cup bill that the OBA have put on the back of every Bermudian. Thank you, Mr. [Deputy ] Speaker .
[Desk thumping]
The Deputy SpeakerDeputy SpeakerThank you, Member. Any further speakers? The Chair recognises the Honourable Member from . . . well, it is Dennis Junior Lister III. I guess I read it right. I know you fit in somewhere there.
Mr. Dennis Lister IIII must apologise. I missed 90 per cent of the previous speaker, my honourable colleague. It happens to sound exactly how I am planning to speak, Mr. [Deputy ] Speaker , because we must stress and we must drive home economic empowerment for our Bermudians, but more specifically, for our …
I must apologise. I missed 90 per cent of the previous speaker, my honourable colleague. It happens to sound exactly how I am planning to speak, Mr. [Deputy ] Speaker , because we must stress and we must drive home economic empowerment for our Bermudians, but more specifically, for our young Bermudians, the younger generation, Mr. [Deputy ] Speaker . As I read the Reply to the Budget, Mr. [Deputy] Speaker , I highlighted what is in this Budget on page 20. Can I read it? The question is asked: “ A reasonable person might hear the prop osal” (to relax the 60/40 rule) “and ask ‘is he selling out Bermudians ?’ The jury is out on this po licy init iative. Unfortunately, since we have no greater understanding of the nuts and bolts of this pol-icy, Bermudians cannot meaningfully understand the initiative. ” Mr. [Deputy ] Speaker , we are not selling out Bermuda, we are building dreams. That is what we are doing. You are going to hear me say this phrase over a few times, Mr. Deputy Speaker , “access to ca pital.” Access to capital, Mr. [Deputy ] Speaker . What is it? The definition that I have here, Mr. [Deputy ] Speaker , of “access to capital” is it usually refers to the need that the small businesses have for loans or investment money so that they can grow. Mr. [Deputy ] Speaker , there are lots of small businesses in Bermuda, but they are held back by the lack of capital. By relaxing the 60/40 rule, Mr. [Deputy ] Speaker , we are giving businesses a chance to have access to capital so that they can expand and they can grow and they can become competitive in our market. As I read from page 8 of the PLP’s Budget Statement, Mr. [Deputy ] Speaker , it states: “This Government was elected to level the playing field, expand opportunity and create a fairer and more just Bermuda. To do that, we will ensure that the have- nots can access capital to build bus inesses, and have the freedom to compete with the haves. However, to ensure that the have- nots can access capi tal, we must change the laws of Bermuda, which for more than a century have protected the haves from competition.” Mr. [Deputy ] Speaker , competition is healthy. Mr. [Deputy ] Speaker , the haves cannot have it all, they have to give up something; or if they are not going to give it up we have to take it from them. Now I want to shift gears some, Mr. [Deputy ] Speaker . I walked in at the end of brother Famous’ speech and he had mentioned Johnny and—
An Hon. Memb er: Jaheim.
Mr. Dennis Lister III—Jaheim. I, too, had a similar story also, Mr. [Deputy] Speaker. I did not have Johnny and Jaheim, though. Mr. [Deputy ] Speaker , if a young Bermudian today wants to start up a business and they have a good business model . . . let us say for instance, …
—Jaheim. I, too, had a similar story also, Mr. [Deputy] Speaker. I did not have Johnny and Jaheim, though. Mr. [Deputy ] Speaker , if a young Bermudian today wants to start up a business and they have a good business model . . . let us say for instance, Mr. [Deputy ] Speaker , I am underemployed or unemployed or I have a decent job but I want to change what I am doing and I feel like I want to get into the trades. So let us say I have some experience with electrical . . . tiling. So I feel I want to get into the tiling business, Mr. [Deputy ] Speaker , and I look at what I have to do. First off, you have to look at equipment. What equipment are you going to need to get into a tiling 1082 23 February 2018 Official Hansard Report
Bermuda House of Assembly business? You have to look at if you are goi ng to hire some employees. You might have some mates that, also like yourself, are unemployed, underemployed, or want to do something different. So let us say you look at hiring three of them, Mr. [Deputy ] Speaker . Then you might have to look at buying a v ehicle to transport yourself, your employees and your equipment. Mr. [Deputy ] Speaker , then it is the licensing fees. So by the time you add all of this up, Mr. [Deputy ] Speaker , let us say you come to roughly maybe $100,000 to buy all these expenses and t o cover yourself for at least a good period of time, maybe four to six months. Mr. [Deputy ] Speaker , the Bermuda Economic Development Corporation, yes, they are mandated or they can guarantee up to 50 per cent of a $200,000 loan, which is $100,000. But if you need more than that, and, as previously stated, if you go to the banks and you are denied, then what is left to do? As also stated, you can turn to the evils in Bermuda. Everyone knows that there is an underground market you can turn to . . . your nei ghbourhood . . . I do not like to use the word, you know, your neighbourhood drug dealer, you could turn to him. He has some money that he might be able to give you, Mr. [Deputy ] Speaker . But that comes with other added negative side effects, risks. If you get a loan from the bank or a guarantee from the Bermuda Economic Development Corpor ation and you default or you cannot pay, Mr. [Deputy ] Speaker , there are processes you can go through. But if you go to a loan shark or to your neighbourhood drug dealer, the risks are a bit more than that. You know, you can risk losing your life or injury to som eone you love. So, Mr. [Deputy ] Speaker , it is not worth going down that road. But, again, Mr. [Deputy ] Speaker , this is why I said we are not selling out Bermudi ans, we are buil ding dreams. Because if you have a dream, Mr. [Deputy] Speaker , you should be able to have all the opportunities to go through with that dream. Part of gaining access to capital is also diversifying our economy. If you want the economy to grow, if you want young entrepreneurs, you have to give them something to dream of, Mr. [Deputy ] Speaker . Just to name a few different economies that we can get into, Bermuda is an Island in the middle of the ocean. We can do wind technology, Mr. [Deputy ] Speaker , solar technology, tidal turbines, even phot ovoltaic transparent glass. These are all industries that can take off in Bermuda which will make Bermuda a leader in these industries and take us into the next generation. However, if a young person, l ike myself, wanted to get into this, these cost hundreds of millions of dollars. You might have a good plan, but, as I stated, if you do not have access to capital that plan goes nowhere, Mr. [Deputy ] Speaker . So what we are doing by revising and relaxing the 60/40 rule, Mr. [Deputy ] Speaker , is giving young Bermudians a chance to say, Hey, I have an idea, maybe I will want to build a solar powered panel farm, a photovoltaic transparent glass farm, whatever it is, but do not have the money. Again, the Berm uda Ec onomic Development Corporation cannot guarantee you for hundreds of millions of dollars. The banks are not going to loan hundreds of millions of dollars to a young Bermudian at this time. So you can then go overseas and you can find backers, investor s. Mr. [Deputy ] Speaker , many Bermudians go to school . You have a friend that let us just say his father is a billionaire. What if he is interested in hel ping you fulfil this dream? So by us relaxing or revising these laws, Mr. [Deputy ] Speaker , it is giv ing you a chance to go out . . . and, again, it all comes back to helping Bermuda by diversifying our economy, making jobs for Bermudians. We are giving young Bermudi-ans a chance to dream, economic empowerment, the capacity for women and men t o participate in, contri bute to and benefit from growth processes in ways that recognise the value of their contributions, respect their dignity and make it possible to negotiate a fairer di stribution of the benefits of growth. Mr. [Deputy ] Speaker , all that we are tr ying to do is empower our people economically, give them chances. You have heard this stated numbers of times over and over before, we are not making mi llionaires, but we want to make the have- nots into those that have. You give us a chance. But economic empowerment must start by being . . . you have to be educated on it, Mr. [Deputy ] Speaker . You cannot one day wake up and, yes, you might have a dream, but you have to understand what it takes to be an entr epreneur, to start a business. So it starts in the middle schools, Mr. [Deputy ] Speaker . And we can even go younger than that. We can start in the primary schools. That is why this Go vernment believes in giving more funds to education and not just education academically, but also giving people education w ith hands -on, STEAM projects, things that [encourage] outside- of-the-box thinking so that person, when they get into adulthood, can say, Hey, I’m interested in that. I’ve already got experience in that. Let me go into it and pursue my dream. So education f irst and foremost. What I want to do is also encourage or give a plea out to our younger generation, Mr. [Deputy ] Speaker , to become entrepreneurs because we cannot all be workers. We cannot all be bosses, but at least if we can dream of being the boss, as they say, if you aim for the sun, you land upon the stars. So if you aim high, you might not make it, but you still end at the next rung. Entrepreneurs [and] things which encourage people to be entrepreneurs. Mr. [Deputy ] Speaker , you can be your own boss. You can obtain an alternate route for advancement from what is perceived to be a dead- end job. So again, you might have a job, but you can be tired of your job, you have been there
Bermuda House of Assembly for years or just because you just want something new. [Being] an entre preneur gives you a chance to follow your dream. Entrepreneurship, you also have control over your own life and work. Mr. [Deputy ] Speaker , you are not on a 9- to-5 pushing papers and typing for your boss. You are out there doing what you want to do, getting paid for what you enjoy. There is no better feeling than doing that, Mr. [Deputy ] Speaker . Entrepreneurship also provides innovative or competitive products and services. Bermuda has a very small product and service market in certain areas of our indus try. Why? Because it has been closed for so long, Mr. [Deputy ] Speaker . If we open it up and entrepreneurs can get in and have access to capital, our competitiveness becomes better, not for just the business owner but [for] us as consumers, because if a product or service that you want is limited to two options now, those two options do not necessarily have to fight over pricing. They can charge what they want because you have no option. But if more entr epreneurs get into that industry and they can offer better rates, then it becomes competitive and better for us as consumers. So you are not paying . . . I don’t know how much for a loaf of bread . . . $7 for a loaf of bread, competitiveness will bring that price down so maybe we can pay $4.50 for a loaf of bread. Also entrepreneurs can do it to obtain additional income. So again, some people might still want to work a full -time job, but be an entrepreneur on the side to fulfil a dream they have. But they do not mind working on the side, Mr. [Deputy ] Speaker . So again, I would encourage youth entrepr eneurs because the more entrepreneurs we have the better it is for society. Mr. [Deputy ] Speaker , may I ask how much time I have left?
Mr. Dennis Lister IIITwelve? Okay. Mr. Deputy Speaker , the relaxation of the 60/40 rule must go hand in hand with creating more entrepreneurs and economic empowerment. They cannot stand alone. Yes, it has been stated before that there may be people on our own side that might not agr ee with it. …
Twelve? Okay. Mr. Deputy Speaker , the relaxation of the 60/40 rule must go hand in hand with creating more entrepreneurs and economic empowerment. They cannot stand alone. Yes, it has been stated before that there may be people on our own side that might not agr ee with it. But it is not a standalone initiative, Mr. [Deputy ] Speaker . It goes hand in hand. Yes, if we relax the 60/40 rule we might bring in more foreign investors and foreign workers. But if you have the e ntrepreneurial spirit along with economic empowerment Bermudians that may not get into this business can create their own businesses. So we are putting Bermudians to work all the way around. So again, as I stated, these are not standalone; they work best hand in hand. You cannot have entrepreneurs wi thout access to capital, and you cannot have economic empowerment without the en-trepreneurial spirit, Mr. [Deputy ] Speaker . In closing, I just want to refer back to page 9 of the PLP’s Budget Statement. Mr. [Deputy ] Speaker , as quoted: “You can own 100 per cent of a $50,000 busi ness or 40 per cent of a million -dollar business.” Which would you choose, Mr. [Deputy ] Speaker ? Would you rather own $40 million of a larger pie or would you rather own $100,000 of your own? It is common sense. Again, access to ca pital . . . if you give Bermudians access to capital they can follow their dreams and make Berm uda a fairer and better place for all. Thank you, Mr. [Deputy ] Speaker .
The Deputy SpeakerDeputy SpeakerThank you, Honourable Member. Any . . . yes, the Chair recognises the Honourable Member Simons from constituency 8.
Mr. N. H. Cole SimonsThank you, Mr. Deputy Speaker . I have been sitting here listening attentively, and I want to say this has been an interesting debate. Mr. [Deputy ] Speaker , when the 2018 Ec onomic Review was presented, when the budget was presented, I was not surprised at the reception. And …
Thank you, Mr. Deputy Speaker . I have been sitting here listening attentively, and I want to say this has been an interesting debate. Mr. [Deputy ] Speaker , when the 2018 Ec onomic Review was presented, when the budget was presented, I was not surprised at the reception. And I am saying that simply because I have travelled with the BDA sales team. I have been to various profes-sional meetings around this Island, and I can say ear-nestl y that we have a Premier who is a good salesman.
Mr. N. H. Cole SimonsHe is charismatic. He is el oquent. But, Mr. [Deputy ] Speaker , he has a way of capturin g people’s attention; he has a way of capturing their confidence. I would love to have him in my sales team. Mr. Deputy Speaker , it is good to have a …
He is charismatic. He is el oquent. But, Mr. [Deputy ] Speaker , he has a way of capturin g people’s attention; he has a way of capturing their confidence. I would love to have him in my sales team. Mr. Deputy Speaker , it is good to have a salesman out there. But it is another story for the operations team to deliver. And that is what we have today, Mr. Deputy Speaker . You know, the issues that were raised in regard to the growth of the economy, job creation, incentives for entrepreneurs, job creation . . . every government would want that. You go from South Africa, you go to Iceland, you go to the United States. We are all after the same thing, Mr. Deputy Speaker . It is how do we address these issues given the forces on our individual economies? Mr. Deputy Speaker , before I get into specific issues I would like to also acknowledge the contrib utions that the former Finance Minister made in bring-ing Bermuda back from the brink. Mr. Deputy Speaker , according to the Royal Gazette , if you will allow me to quote, the Royal G a1084 23 February 2018 Official Hansard Report
Bermuda House of Assembly zette [of 17 February 2018 ] it says: “ It should be r emembered that on arriving in the Ministry of Finance in late 2012, Richards took the wheel of a fiscal train wreck amid an economy in deep recession. His o ptions were austerity or insolvency. ” Mr. Deputy Speaker , that was a colossal job. We had to save this country from ineffective fiscal management by the previous Government. Mr. Deputy Speaker , we had to be disciplined, we had to tighten our belts, an d, yes, there were difficult, difficult decisions. There were the furloughs. And the furloughs, may I add, were recommended by the unions in an effort to help turn this economy around. Mr. Deputy Speaker , there were services that had to be compromised. The civil service were being reduced because, again, there was a waste, and we had to cut back on our finances and cut the sail accordingly. So I say to Mr. Richards. thank you for putting us in a fine position and putting together policies that stood us well and built the confidence in our rating agencies. Mr. Deputy Speaker , our rating agencies . . . Standard and Poor’s gave the Bermuda Government an A+ rating in 2017, that is April 2017, and we have not had a rating since. Mr. Deputy Speaker , I would like to quote some of the comments that Standard and Poor’s said if you will allow me. It said: “ Key drivers stated as the reasons for the affirmation are effective and predictable policymaking and a high GDP per capita . . . The Ministry of Finance, and the Gover nment as a whole, has been working diligently to communicate and implement credible fiscal plans and it i s pleasing that S&P has recognis ed this an d affirmed Bermuda’s ratings. ” Mr. Deputy Speaker , to have an affirmation like that and a rating A+ basically says that the S&P has a stable outlook for Bermuda. And it is our pos ition that this Government must continue in that light. They must continue wi th the fiscal prudence, they must continue with the discipline in regard to how government’s purse is managed. So, again, let us continue the work that was started by the former Mi nister of Finance, because it has proven to be benef icial from a rating poin t of view and it exudes conf idence to our investors. Mr. Deputy Speaker , a lot has been said about the 60/40 and the 40/60. And I agree with my previous speaker that, you know, it attracts capital to the island and any small business, if it is to thrive . . . if you are going to convert a small businessman to a multi- millionaire it is about building your business, finding a partner, selling it and moving on and starting a new business, building it up and selling it. And you need capital. And it can be local capital or international capital. So I applaud the Government with this recommendation. But the challenge that I think they may have is: are they prepared to relax the immigration laws to allow these investors here? Because some of these investors may wa nt to play in a space where it is li mited from an immigration point of view, from an e mployment point of view. Some of these industries are closed industries to foreigners. Are they prepared to revisit the law in regard to these closed industries? Because, as I said, you have small businesses, small entrepreneurs, who are in these businesses and are doing well, but they are closed to international par tners. So again, if you are truly concerned about small businesses and expanding the economic pie for our Bermudians and closing the economic gulf, then you also have to visit the immigration laws. Mr. Deputy Speaker , I would like to now move on to the banking sector and the legal profession. We on this side agree that openness stimulates an economy and it makes it more efficient. We, too, think that opening up the legal profession would be good for Bermuda. We also believe that opening up the banking sector could provide benefits to Bermuda. And I have to declare my interest, I am a banker. Mr. Deputy Speaker , the Devil is in the details. The Devil is in the details. As you know, we are a small country. And if we are going to open up these industries then we have to make sure that there is an equal playing field. We do not want new banks coming here to cannibali se existing businesses. We do not want law firms coming here to cannibalise the bus iness that is already here. We want them to come here with new business, new opportunities, and expand the economic base for Bermuda. And that should be one of the criteria in allowing these new entities to come to Bermuda—that they bring business clients and capital with them. Mr. Deputy Speaker , from a banking point of view, if the banks are coming here they should all have a general licence, a full -service licence to pr ovide they do retail banking, lending, investment, wealth management and trusts —a comprehensive banking licence. And they should not be allow to cherry-pick which section in the market they want to play because it will disadvantage local banks that have to play in the retail space. And we know that making money in the retail space is challenging. So these l icences should be full -service licences and that should be considered when decisions are made. Payroll taxes on the lawyers and accountants . . . I agree. T his is progressive. Industry has accepted it. You know I am a banker by profession and I have been to a number of professional meetings. I have been to BDA meetings and I have not heard anybody speak badly about the payroll tax increase for lawyers and acc ountants. They say, you know, it is difficult to swallow but it is fair. And so, again, it is progressive and it is overdue and most of industry has accepted it. Mr. Deputy Speaker , the other issue that concerns me is the debt. And this is what concerns inte rnational business. Yes, they recognise that the budget that was presented was very palatable and it is som ething that they can work with. But they are all very,
Bermuda House of Assembly very concerned about the debt, because if we do not manage the debt through fiscal responsib ility then we stand the risk of compromising our ratings. And when we compromise our ratings the cost of doing business in this country will increase dramatically, and it will compromise our blue ribbon standard in the intern ational sector. So it is import ant that we get that done. You know at one point, Mr. Deputy Speaker , our debt was the highest section of the community in regard to the budget. Right now, the highest ministry is the Ministry of Health, and the expenditure was $190 million. Interest and t he Sinking Fund, the total is $188 million, Mr. Deputy Speaker . So it is very, very clear, it is close. And we as a Government must do our best to bring this under control because we cannot allow this interest expense and debt service expense to grow and grow, because at the end of the day most of this money is leaving this country. So it is imper ative that we bring this under control. Mr. Deputy Speaker , a lot has been said about the $25 million that is being infused into the Ministry of Health. A lot has been said that the $25 million was taken out of the Ministry of Health last year to go to the America’s Cup. But let me make it clear, Mr. Deputy Speaker , this $25 million cutback last year resulted because there was a reserve held by the Bermuda Hospitals Board of $25 million that they were holding back for investments.
Mr. N. H. Cole SimonsSorry, they had $50 million they were holding back for an investment. So why would the Government (or the Mini ster of Finance) be prepared to give them more money when they were sitting on a reserve of $50 million that they wanted to invest? Hence, we cut the $25 …
Sorry, they had $50 million they were holding back for an investment. So why would the Government (or the Mini ster of Finance) be prepared to give them more money when they were sitting on a reserve of $50 million that they wanted to invest? Hence, we cut the $25 million payment from the previous year. To me this makes eminent sense because we cannot support a Government agency that has a r eserve of $50 million for investments and then come to us and say we need to take taxpayers’ money to pay for our operating expense. It is not on, Mr. Deputy Speaker . It is not on and it is not acceptable. So I a pplaud the Minister of Finance for making that decision. Mr. Deputy Speaker , I have spoken about the credit rating agencies. Mr. Deputy Speaker , the EU Blacklist. Again, we were one of the earlier members approved on the first tranche of the European Union’s Code of Conduct and its Blacklist. Again, thanks to the Minister of F inance, E. T. Richards, and his team at the Ministry of Finance for ensuring that this happened. And we trust that the current Government will continue on that pat h because, Mr. Deputy Speaker , this is an ongoing as-sessment and work continues to be done and we must ensure that we continue to operate at a level that recognises the best practices that we have in the f inancial services here in Bermuda. In addition, I must commend the Ministry of Finance for the work that they have done in the common reporting standards and the country -by-country taxation information exchange agreements. This, too, has helped us maintain our blue chip reputation in transparency and allo wing us to be approved in the first wave of the EU’s Blacklist. So we cannot rest on our laurels. Mr. Deputy Speaker , as you know, later this year, and it is said in the budget, we have the CFATF AML review coming up and we have our assessment. Mr. Deputy Speaker , I have been advised that we have to make our submission by the end of May and they will give us back our reports and our result by the end of September or October. Mr. Deputy Speaker , I am praying that we get the work done. Because if the work is not done and we do not have a positive response and we do not meet the standards as prescribed by the rating age ncy, then it is going to be difficult for us to maintain our position as an international financial centre without challenges. Mr. Deputy Speaker , I know this work has been ongoing and a lot of agencies have been i nvolved, but we cannot fail. We have to meet the mark. If we fail it will be dramatic for this country. If it fails it would mean—
An Hon. Member An Hon. MemberStop the scaremongering!
Mr. N. H . Cole SimonsMr. Deputy Speaker , he can call it scaremongering all he wants, this is fact. This is reality, Mr. Deputy Speaker . [Inaudible interjection]
Mr. N. H. Cole SimonsMr. Deputy Speaker , if we do not pass this assessment it will compromise our Solvency II agreement with the EU, it will compromise our status as an approved member by the National Ass ociation of Insurance Commissioners and it also co mpromises our banking industry. Mr. Deputy Speaker , …
Mr. Deputy Speaker , if we do not pass this assessment it will compromise our Solvency II agreement with the EU, it will compromise our status as an approved member by the National Ass ociation of Insurance Commissioners and it also co mpromises our banking industry. Mr. Deputy Speaker , as you know, our banking industry is continuously updating and upgrading its AML/ATF standards —
Mr. N. H. Cole SimonsAnti-terrorist financing. And, Mr. Deputy Speaker , we have to conti nue in that vein. If we do not meet the standards pr escribed by the CFATF then it would send the wrong message about our banking industry and our financial services industry, Mr. Deputy Speaker . 1086 23 February …
Anti-terrorist financing. And, Mr. Deputy Speaker , we have to conti nue in that vein. If we do not meet the standards pr escribed by the CFATF then it would send the wrong message about our banking industry and our financial services industry, Mr. Deputy Speaker . 1086 23 February 2018 Official Hansard Report
Bermuda House of Assembly It would also compromise our relationships with our correspondent banking network. And, Mr. Deputy Speaker , you know that the correspondent banking netw orks are the cornerstone to capital movement around this world. It is the cornerstone for moving capital around this world. It is the cornerstone for moving money around this world, Mr. Deputy Speaker . Talk to our friends in the Caribbean. They are having problems finding correspondent banks for their local banks because of the very reason that we have here today —that they were not able to meet the international standards as far as KYC and AML. They are living that experience. So it is not scaremongering. It is the reality. And it is important that we do our best and ensure that we meet the regulatory requirement as prescribed by the CFATF and get it right. Mr. Deputy Speaker , we also spoke about the other issue that is challenging us [and that is] the new tax initiative for the US. The media has said quite frankly that it is going to be detrimental to us as a j urisdiction. But, like in most cases, the media has not done all their work to the degree that they should. And Mr. Deputy Speaker , if you drill dow n you have to speak to the major players in our industry. Yes, XL Catlin, a few other agencies that do business with the US, they will have to reorganise their bus iness plan. XL, Arch Capital, AXIS Capital, Hiscox’s — they write US businesses through their s ubsidiaries. And, yes, that will impact them. And as a cons equence, yes, they will probably keep some of their business onshore. And, as a consequence of that, they will move some capital onshore and some of our jobs will be moved onshore. To me these wil l be opportunities for Bermudians to get experience with working overseas. Obviously some Bermudians may lose their jobs, but I found historically that some of these companies are prepared to redeploy Bermuda talent to their overseas subsidiaries. Mr. Deputy Speaker , other businesses have indicated, yes, this is a US issue. But our businesses have a global model. They operate in all corners of the world. So their US exposure is rather limited and they can also survive with their other income from E urope, t he Far East, the Middle East, and Africa. So at the end of the day, yes, it has an impact, but it is not insurmountable and it will mean that the businesses can continue but they will have to readjust their model. In addition, Bermuda’s reinsurance indust ry will not be compromised, Mr. Deputy Speaker . It will not be compromised because it is based, not on tax efficiencies; it is based on being an efficient market. They have professionals here that know the industry. We have been in the captive industry for 55 years, Mr. Deputy Speaker . In addition we have a robust regulatory env ironment. Look at what the BMA is doing. The BMA is respected around the world. We have a robust legal system. These are reasons why companies are here. They are not here for tax r easons. So to those people who say that Bermuda will be dramatically compr omised because of the tax laws implemented by the current US Government, we say, yes, it will have an effect, but it will not cripple us. We are a survival coun try. We have survived all these years and we are always ready to address new challenges because that is what Bermuda has been made of. That has contri buted to our success. Mr. Deputy Speaker , the National Budget, as I said, has been a challenge. And the challenge has resulted because at the end of the day our jobs left with the recession and our workforce has decreased from 44,000 to approximately 33,000. What do we do? Yes, it is a strain on the economy, but we have to get more jobs in this country. We have to invite people back here. We have to get professionals here in this country, professionals that will make a difference, that can add to our pension pool, that can add to our health insurance pool, that can help add to our housing, and that can add to our workforce. Mr. Deputy Speaker , as you know, our pension plan is millions and millions underfunded and we will be depending on some of these expatriates to come here to provide capital that will enable us to e nsure that our pension plans are more viable than they are. In ad dition, the same thing would apply to health insurance. We have an ageing demographic, our workforce is ageing, and we need young people to come on board to basically normalise the health i nsurance pool so that we can bring it back from an ageing pool to a more balanced pool where you have young people, middle- class people, middle- aged pe ople, and the old people. Right now it is leaning t owards an aged senior demographic situation, which is causing the strain on the insurance industry here in Bermuda [and] on the health industry here in Berm uda. And I think bringing in expatriates to fill that gap can help save and help bring the cost of insurance health care down in this country because they bring a younger working pool to the country. Mr. Deputy Speaker , the other issue that I would like to address is the tax reform. Yes, I under-stand the Tax Reform Commission—
[Inaudible interjection]
Mr. N. H. Cole SimonsNo, I am not reading. The Tax Reform Commission is in place to look at opportunities for Bermuda. This is wise. We should be doing it. We always do it. Every government does it. It is not new. This is an initiative that we star ted. The former Minister, Mr. …
No, I am not reading. The Tax Reform Commission is in place to look at opportunities for Bermuda. This is wise. We should be doing it. We always do it. Every government does it. It is not new. This is an initiative that we star ted. The former Minister, Mr. Richards, had a Finance Council that he was working with. One of their mandates was to look at the tax situation and they came up with recommendations and he was working with them on that initiative. In addition, I want to make it clear that the Premier at one of his meetings indicated that we
Bermuda House of Assembly should expect the tax, the GDP ratio, to increase wit hin the next two or three years. He mentioned that it will go from a current position of 17 per cent to 21 per cent. Again, that is questionable. Let us see how he does it and let us see how he spreads the love around as far as taxation is concerned to make sure that we have an economy that is growing. Mr. Deputy Speaker , I have raised this issue many, many, times before, but I am going to keep raising it because it is very interesting. This year we paid $9.08 million in insurance as a government for an expense under the budget —$9.08 million. Mr. Deputy Speaker , over the past eight years can you imagine how much we have paid? I can tell you how much we have paid. We have paid over $110 million in insurance to the private sector. In my est imation, Mr. Deputy Speaker , it is time for us to look at having a risk manager and some type of self -insured captive programme for the government of Bermuda so that we can manage the cost of insurance, to manage our risk, to also rationalise some of the expenses that are in this sector. We are the epicentre of the captive market. Why can this Government not use the expertise here to find a way of managing our risk within government? They could be financial risks, insurance risks and health risks. They are all here and our partners are prepared to work with the Government to find the best outcome and allow the best practice to pervade itself in regard to moving forward from an insurance perspective. So I invite the Government to consider doing an investigation or a report on a possible self -insured programme that may result in an insurance captive for the Bermuda Government. Cyber security. I understand the Minister of Security has a Cyber Security Cabinet Committee. I look forward to his report and recommendations. I think t hat the community would be educated if they could have an update as to what is going on in that committee because this is an important issue. We saw what happened with the Paradise Papers. And if we can find a way to improve, to make Bermuda secure from a cyber point of view, it would be appreciated and all the help that we can get will also be apprecia ted and something that Bermuda will benefit from. So I look forward to the Minister’s report in that space. Mr. Deputy Speaker , as to tourism, in the past two years we have seen numbers that we have not seen in a long time. We have spoken about the sal aries and the bonuses of the executives of the Berm uda Tourism Authority. Mr. Deputy Speaker , if we want the results we have to hire the best people. And the best people are the people who have experience to get the job done. They have the experience, they have the track record. And I have no problem with paying the current executive of the Bermuda Tourism Authority the remuneration that they have because they ar e delivering the goods, Mr. Deputy Speaker . Mr. Deputy Speaker , last year leisure spen ding was up 22 per cent here, cruise ship spending was up 7.6 per cent, leisure arrivals were up 11 per cent, hotel occupancy was up 9 per cent. Mr. Deputy Speaker , a number of visitors were under 45 years old. Again, we have changed our model and this is bearing fruit. We had to do a reshuffling of the tourism department and it is amazing, Mr. Deputy Speaker , the outcome and the results that made us proud again to prov ide hope to our tourism industry. So we commend the Tourism Authority for the work that they have done. Again, I am told in 2017 we had 692,947 visitors. This has been the highest, Mr. Deputy Speaker , in the past 10 or 15 years. So, again, we commend the T ourism Authority for work that they are doing and we commend them for the support that they are giving the community, their e ntrepreneurial skills and their teamwork and commi tment. Mr. Deputy Speaker , we are talking about i ndustries that were not mentioned in the Throne Speech and one industry that jumped out for me was the environment.
[Hon. Dennis P. Lister, Jr., Speaker, in the Chair]
The SpeakerThe SpeakerMember, you have got a minute left.
Mr. N. H. Cole SimonsOh, okay. Mr. Speaker , I have heard nothing to support our fishing industry. I have heard nothing to support our local fishermen. I have heard nothing to support our agricultural industry. Mr. Speaker , I have heard nothing to support our dairy farming industry. I have heard nothing to …
Oh, okay. Mr. Speaker , I have heard nothing to support our fishing industry. I have heard nothing to support our local fishermen. I have heard nothing to support our agricultural industry. Mr. Speaker , I have heard nothing to support our dairy farming industry. I have heard nothing to support the elimination of plastics in Bermuda. I have heard nothing to support the expansion green energy or green industry, Mr. Speaker . What are we doing to support those industries which can be fertile new ground for the entrepreneur ial spirit, Mr. Speaker ? Mr. Speaker , we also need to address the resources required for the plant lab at the Department of Agriculture and Fisheries. They have an important role to keep invasive species out of this country. Again, we . . . commit more resources. On the education si de, Mr. Speaker , I will speak to that when I do the ministries, so I will skip over that as far as I am concerned at this point in time.
The SpeakerThe SpeakerThank you, Member. Thank you. ANNOUNCEMENT BY TH E SPEAKER 1088 23 February 2018 Official Hansard Report Bermuda House of Assembly HOUSE VISITORS
The SpeakerThe SpeakerBefore I recognise any other Member I would just like to acknowledge the members in our Gallery. We just had Dr. Carika Weldon and some of her scientists who are here for the conference that she has organised this week. [Desk thumping]
The SpeakerThe SpeakerAs we know Dr. Weldon is one of the young bright Bermudian minds who is making her mark on the world and has organised a conference here in Bermuda. And I believe it is the second conference that has actually earned its right on the scientific calendar to be looked …
As we know Dr. Weldon is one of the young bright Bermudian minds who is making her mark on the world and has organised a conference here in Bermuda. And I believe it is the second conference that has actually earned its right on the scientific calendar to be looked forward to by many scientists from around the world to be here. I think she has scientists from as far away as Italy, Switzerland, South Africa, Australia, the US, and England as well. And part of their purpose is not only to have the conference on the discussion of scientific splicing, which is what her field is, the gene splicing (let me say that for you all), but it is all to interact with our students and our science teachers to bring them up to understanding the opportunities that exist in that world. And my closing comment would be, for us here in Parliament a highlight that they have done was to organise a Youth Parliament debate in their conference each year. And last night was the debate. And I have been sitting here trying to remember the topic that they debated on, and I cannot remember it off the top of my head right now. But for all those of us who were present last night it was a very uplifting debate, a very lively debate, and I think each of the Y outh Parliament members who participated represented themselves very well. I am sure it was because of the interest that the conference and Dr. Weldon and her team have stirred up in our young people. So I congratulate them and encourage them to continue to do as they do and to continue to interact with our young people in that way. Thank you. [Desk thumping] [Debate on the Budget Statement and Reply contin uing]
The SpeakerThe SpeakerNow, who would like to be the next speaker? No one rising? I recognise the H onourable Member Jackson from constituency 20. You have the floor.
Ms. Susan E. JacksonWell, thank you, Mr. Spea ker, and good evening to you. I just want to begin my reflection on the budget by first of all mentioning that although I may be one of a minority of women here in the House, I certainly believe that I have the age on …
Well, thank you, Mr. Spea ker, and good evening to you. I just want to begin my reflection on the budget by first of all mentioning that although I may be one of a minority of women here in the House, I certainly believe that I have the age on my side. And I say that, Mr. Speaker , because this budget to me seemed to be most inspirational. And I have to marvel in the spirit of the youth and the ambition and forward think ing and vision of the young people that have pulled together this budget. But at the same time there is a “but.”
Ms. Susan E. JacksonI have some major concerns, and I am certainly going to raise them this evening because I certainly take a mature and responsible position as far as the governing of Bermuda and her people. Mr. Speaker , clearly and without a doubt, we have to say from this side of …
Ms. Susan E. JacksonThis budget and all of the expenditure, and a good bit of the aspiration of the new Government, is on the heels of the responsibility and the management of the former Government and the former Minister of Finance, and I applaud him. But my concern, Mr. Speaker , is that …
This budget and all of the expenditure, and a good bit of the aspiration of the new Government, is on the heels of the responsibility and the management of the former Government and the former Minister of Finance, and I applaud him. But my concern, Mr. Speaker , is that we have not dug deep enough in our responsibility to the peo-ple of Bermuda in this Budget Statement. We have to make a very close and concerted effort to make sure that we are putting in place the kinds of expenditure and responsible management in order to make sure that the people of Bermuda are able to benefit from the revenue that we are able to earn as a country. And I would hate to see any of our money being spent irresponsibly. So I am going to begin by talking about and reflecting on the way that the budget was first pr esented. So here we have the idea of who is going to pay the nursery fees. Who is going to help the seniors when they need their care? And how are we going to contin ue to maintain the payments for our health i nsurance premiums? Well, when I look I see that there are some concerning factors. And the first that I want to raise is the $25 million for the Bermuda Hospitals Board. Now, I am not saying that it is a bad thi ng to give it back. And it certainly was the promise of the former Government that the Bermuda Hospitals [Board] would be able to benefit from and receive those funds again. But my concern is that it has been put up as if that money was robbed . . . taken from a baby. And I want everybody to understand that the Bermuda Hospitals Board makes money. And if you do not mind, Mr. Speaker , I just want to quote just one line from their financial statements.
Bermuda House of Assembly The Speaker: Go right ahead.
Ms. Susan E. JacksonSo, note 1—this is page 2 of their financial statements . “Cash, term deposits and investments. In 2007 the Bermuda Hospitals Board had $5 million in unrestricted cash. By 2011 this amount was $18 million and by the end of 2016 total cash and term deposits were $104 million.” Now, …
So, note 1—this is page 2 of their financial statements . “Cash, term deposits and investments. In 2007 the Bermuda Hospitals Board had $5 million in unrestricted cash. By 2011 this amount was $18 million and by the end of 2016 total cash and term deposits were $104 million.” Now, I know they have responsibilities, but what I am saying is do not come across to the people of Bermuda like giving this $25 million grant back to the Bermuda Hospitals Board . . . that you are the ones that are saving the whole susta inability of our hospital, because that is not the way it goes. That $25 million was earmarked for investment. That was sur-plus money that the Bermuda Hospitals Board r equested to actually invest in order to make savings and earn interest. That money was n ot needed to pay for unsecured bills or to save those that needed sa ving. This was surplus cash that they had on hand and did not know what to do with and requested that mon-ey to be invested. So I just want to make it clear to the people of Bermuda that wh en it makes . . . everybody makes it sound like—
Ms. Susan E. Jackson—woe and gloom, that it is woe and gloom. No. We as a country under the former Government and our prudent management of our funds are able to allow this new Government to have the money to give back to the [Bermuda] Hospitals Board within one year. [Inaudible interjections ]
Ms. Susan E. Jackson—about the fact that our seniors, of which there are more and more of us every day, do not hav e . . . and I have not heard in this budget any word about how there is going to be any major investment in seniors. I have heard nothing …
—about the fact that our seniors, of which there are more and more of us every day, do not hav e . . . and I have not heard in this budget any word about how there is going to be any major investment in seniors. I have heard nothing about how they are going to action the strategies around ageing at home and the kind of money that needs to be invested in those kinds of programmes. But no, instead they are giving upward of threequarters of a million dollars, we are talking $750,000 and more, to a private service provider when we have seniors out there that require programmes and community support.
[Inaudible interjections ]
The SpeakerThe SpeakerMinister, Minister, Minister!
Ms. Susan E. Jackson—youthful enthusiasm that we are looking at an aspirational budget wher e money is not being allocated where it needs to be allocated. [Inaudible interjections ]
An Hon. Member An Hon. MemberPoint of order, Mr. Speaker .
The SpeakerThe SpeakerMinister . . . take your seat, take your seat, take your seat. [Inaudible interjections]
The SpeakerThe SpeakerMinister! Minister! I suggest you take a walk and get some fresh air because you are getting very close to a thin line. Thank you. Member, continue.
Ms. Susan E. JacksonThank you, Mr. Speaker . So now I would like to pi vot to our economic diversification. So we have had a number of people who have come forward from the new Government who have discussed the point about bringing in all different kinds of industries. And again, I marvel …
Thank you, Mr. Speaker . So now I would like to pi vot to our economic diversification. So we have had a number of people who have come forward from the new Government who have discussed the point about bringing in all different kinds of industries. And again, I marvel in their spirit. That is fine. But one of the pieces that I am concerned about for the people here in Bermuda is what preparation, what real preparation is being put in place to support these industries when it is time to push the go button? We can talk about all of these industries that we are going to bring here to Bermuda, but I am curious how we are going to prepare our people to actually be able to support these industries once they are up and going. Mr. Speaker , I have heard very little, and it seems cursory, just sort of the icing on t he cake, that, Oh, yes, we will do a little training here and a little training there. But I am just generally concerned about the fact that not enough is being invested in preparing people in Bermuda for these jobs and to make sure 1090 23 February 2018 Official Hansard Report
Bermuda House of Assembly that they get the train ing and the skills development needed. Now I am going to start all the way at the education system, Mr. Speaker , because we are talking about an increase in investment and my interpretation in this Budget Statement made it sound an awful lot to me like we are going to spend a lot of money on the maintenance on our facilities, and I did not hear a whole lot of conversation around what we are actually going to do to develop the skills of our teachers to make sure that our children are receiving the educ ational programmes they require and to have some increases and improvements in the grades and the performance of our children in our school system. So I do not want to hear that we are now going to be spending millions of dollars giving lots of people . . . I do not know if it is people that you know, or if it is a friend or family, or whatever, who are going to be making sure that they are getting contracts to do things like —
Hon. Wayne L. Furbert: Mr. Speaker , point of order, point of order.
The SpeakerThe SpeakerYield one minute, yield one minute while we take a point of order from the Junior Minister. POINT OF ORDER [Imputing improper motive] Hon. Wayne L. Furbert: The Honourable Member is imputing improper motive. Friends and contracts that is a little far.
The SpeakerThe SpeakerI let her have a little leeway because she did not directly . . . she said “I don’t know” and she stretched it. She did not quite direct it at being that. I was very carefully listening to the wording that she used because I would have called her …
I let her have a little leeway because she did not directly . . . she said “I don’t know” and she stretched it. She did not quite direct it at being that. I was very carefully listening to the wording that she used because I would have called her to order if she had slipped on the wording. But be mindful that you are on thin ice. Continue on.
Ms. Susan E. JacksonSo Mr. Speaker , my point is that I need to make sure and I need to feel comfort able and the people of Bermuda need to feel comfort able that any kind of increases in investment in our education system is an investment that is going to be used …
So Mr. Speaker , my point is that I need to make sure and I need to feel comfort able and the people of Bermuda need to feel comfort able that any kind of increases in investment in our education system is an investment that is going to be used toward the development and advancement — academic advancement —of our youth. That is my point. Now I spend a good deal of time in the school system me ntoring. And the mentoring that I do is most practical.
The SpeakerThe SpeakerJust yield a minute, Member. What is your point of order? Mr. Dennis Lister III: I am bewildered with the Honourable Member. She says that she questions the i ncrease in money for training for teachers. But what did they do in their four years in power, Mr. Speaker ? …
The SpeakerThe SpeakerWell, that is not necessarily a point of order though. We do not want to keep—
Ms. Susan E. Jackson—I am in the school syst em on a regular basis —weekly —and I understand and I can see where we could provide additional resources. Now the beautiful part about it all, Mr. Speaker, is that under the former Government many of these programmes —entrepreneurial programmes — were initiat ed …
—I am in the school syst em on a regular basis —weekly —and I understand and I can see where we could provide additional resources. Now the beautiful part about it all, Mr. Speaker, is that under the former Government many of these programmes —entrepreneurial programmes — were initiat ed under the former Government. So the idea and the concept, the enthusiasm of the students is amazing. But how much more could we invest in those young people? And I am just not sure that this Government is prepared to invest that kind of money to take our young people to the next level, Mr. Speaker. And so I am going to be watching that closely. Now, from another side of the economic diversity is the preparation of and the introduction of entrepreneurs into a new . . . any kind of new ec onomic industry e nvironment, a new pillar for Berm uda’s economy. We make it sound like we are going to push the “easy” button and that people in Bermuda are just going to be able to open up shop like flick a light and all of a sudden —voila! —they are going to have business. I know from a personal perspective as well as a professional perspective that it takes a lot just to even start a business —the dedication, the skill development around a global and generic base of skills that has nothing to do with blockchain or crypt ocurrency. It is about how I am going to hire people, where I am going to have to hang my shingle and open my storefront. How am I going to manage my funds? Where am I going to get the infrastructure? So the details of actually supporting an awful lot of this new industry development, for me, seem super aspirational. And it would be horrible for us to create an environment where it feels as though it is going to be something where people are going to have an opportunity to grow, but then in actual fact only a f ew people are going to have access to this
Bermuda House of Assembly because of the learning curve and the resources that are going to be needed by entrepreneurs to get into the business. And my former colleague spoke to that as an experienced entrepreneur. It is hard, it is a challenge to run a business. And so I just want to make sure that this Government is prepared to put what is needed in place to support entrepreneurial development. Now I have another question that I would like to ask, Mr. Speaker , and that is around how we are going to create a safe and secure environment for our industry development. Because, Mr. Speaker , it is not about blockchain or cryptocurrency. It could be an ything, it could be putting . . . you know, men on planets. It could be spaceships; it could be anything that anybody wants to aspire to have. But the nuts and bolts of the reality of Bermuda and who and what we stand for is a framework, a tight framework that says that whatever you want to do in this world, Bermuda is the safe place to do it. Berm uda is the place that has got the fram ework. we have got the sophistication, we have got the framework and security to make sure that whatever business you want to do in Bermuda we are going to keep you safe, we are going to keep your reputation clean, we are going to stand up as the jewel in the crown when it comes to a regulatory environment and anything else that is concerned. We have to have no tolerance for terrorist financing, no tolerance for tax evasion, no tolerance for anti -money laundering. And that is where the jobs should come from, Mr. Speaker . That is where we should be looking to develop our industry. We should be looking for more people, we should be building up our financial crimes units i nstead of . . . and I think they are going to even decrease . . . I have heard through the grapevine that we only have five financial crime professionals working in our unit.
Hon. Wayne Caines: Point of order.
The SpeakerThe SpeakerI am going to take a point of order from the Minister. Minister? POINT OF ORDER [Misleading] Hon. Wayne Caines: The Member is misleading the House. As a matter of fact we have just hired four more police officers in that department for financial crime as well as six consultants …
I am going to take a point of order from the Minister. Minister?
POINT OF ORDER [Misleading]
Hon. Wayne Caines: The Member is misleading the House. As a matter of fact we have just hired four more police officers in that department for financial crime as well as six consultants that we have. That Member is intentionally misleading thi s House.
Ms. Susan E. JacksonThat is the best news I have heard all day and I thank you. I absolutely thank you. Hon. Wayne Caines: Mr. Speaker , Mr. Speaker , I have given that information in this House in two different Ministerial Statements from this floor. I have given that state of the …
That is the best news I have heard all day and I thank you. I absolutely thank you. Hon. Wayne Caines: Mr. Speaker , Mr. Speaker , I have given that information in this House in two different Ministerial Statements from this floor. I have given that state of the Bermuda Police Service and where we are going and that information in this House with two separate Ministerial Statements. Again, that Member is misleading this House.
[Inaudible interjections]
The SpeakerThe SpeakerWell, thank you. Members, Members, Members, the benefit of doing the debates that will start next week on the ind ividual heads [is] more details such as that will come out to highli ght what is or is not being done. So let us not get caught up too much …
Ms. Susan E. JacksonThank you, Mr. Speaker . And I do, you know, apologise if I did not hear that or understand it in the past. The point has been made that we need to continue to develop professionals that will come and be able to support and strengthen our compliance [and] our …
Thank you, Mr. Speaker . And I do, you know, apologise if I did not hear that or understand it in the past. The point has been made that we need to continue to develop professionals that will come and be able to support and strengthen our compliance [and] our legal framework. We need lots of Bermudians, and I also have to wonder whether . . . I do not want to say sort of a feasibility study has been done. But at what point are we going to take a look at what professions are going to be needed here in Bermuda? And what is it going to cost for us to make sure that we have the support that we need, especially around our ability to make sure that we have a strong regul atory environment to support any new industries that come into Bermuda? And Mr. Speaker , I want to mention and speak a little bit about the North Hamilton and the r elaxation of the height of buildings and i ncreased co ndos and commercial development, et cetera. Now, again, I marvel in the spirit. That sounds just great. But I am a little concerned about the reality of this taking place and what the policies are going to look like to: (1) protect the landowner s that are in North Hami lton, many of whom are on family homesteads that have been in their families for generations. I do not quite understand what that vision of allowing basically high-rise apartment condo buildings and office space in North Hamilton . . . and I am not quite sure if I understand how that applies to providing an equal o pportunity for people in Bermuda. And I am still gra ppling with how that will work, but —
Hon. Walton Brown: Point of clarification.
The SpeakerThe SpeakerMember, we will see if we can get some insight from the Minister. 1092 23 February 2018 Official Hansard Report Bermuda House of Assembly Minister, do you want to give us a point of clarification? POINT OF CLARIFICATION Hon. Walton Brown: Yes, for my honourable friend. The entire purpose of …
Member, we will see if we can get some insight from the Minister. 1092 23 February 2018 Official Hansard Report
Bermuda House of Assembly Minister, do you want to give us a point of clarification?
POINT OF CLARIFICATION
Hon. Walton Brown: Yes, for my honourable friend. The entire purpose of this change is to allow people who have not had opportunit ies to partake of opport unities, to allow them to utilise their primary asset, which is property, and turn it into something much more lucrative than what currently exists.
Ms. Susan E. JacksonSo if I understand, then pe ople could potentially either borrow on their family homestead or sell it to somebody who would then build or get a business partner who would then develop this property. So then my other question to the Government is, based on what is in the …
So if I understand, then pe ople could potentially either borrow on their family homestead or sell it to somebody who would then build or get a business partner who would then develop this property. So then my other question to the Government is, based on what is in the Budget State ment , who is going to buy these condos and who is going to rent this commercial space when we are already having a flood of condos and it is so much . . . you know, anybody, there are more condos vacant —
Hon. Walton Brown: Point of clarification. The Spe aker: Ah—
Hon. Walton Brown: Mr. Speaker —
The SpeakerThe SpeakerI am going to take your point of clarif ication, but just be mindful of the fact that there will be opportunity for you to give full details when we get to your Head next week. But go ahead. POINT O F CLARIFICATION Hon. Walton Brown: I appreciate that, Mr. …
I am going to take your point of clarif ication, but just be mindful of the fact that there will be opportunity for you to give full details when we get to your Head next week. But go ahead.
POINT O F CLARIFICATION
Hon. Walton Brown: I appreciate that, Mr. Speaker , but I am just trying to help my honourable friend because these points were already made, that under current legislation certain categories of people will not be able to buy condominiums. We are going to amend that legislation to provide for such purchases.
The SpeakerThe SpeakerThat is some of the detail that we, hopefully, will get more of when we get into the individual heads.
Ms. Susan E. JacksonInteresting. So the 60/40, 40/60 . . . you know, I had to smile, because, certainly, if the former Government had even mentioned that we would have had a land-slide group of people up here yelling and screaming and com plaining. But for some reason it is now okay to …
Interesting. So the 60/40, 40/60 . . . you know, I had to smile, because, certainly, if the former Government had even mentioned that we would have had a land-slide group of people up here yelling and screaming and com plaining. But for some reason it is now okay to flip this and have the 40/60. But whatever way you want to say it, in my personal opinion it would appear that one would have to have 40 per cent of something in order to get involved in such a venture. And I hesitate to wonder just exactly who they are speaking to when they are opening up this oppor-tunity. I am sure there are a number of people out in our community who are more than excited about this, but I just do not know how this ties into the people who have supported the idea that there will be equal ity here and opportunities to get involved with bus inesses, given the fact that it could turn into a substan-tial amount of money that people would need up front in order to invest in such ventures. So it wil l be interesting to find out how that is all going to work. So I, again, will stay tuned for that. Now, there are a couple of things that I thought maybe were going to come out of this. And maybe I am also sharing ideas for the future. But there are oppor tunities for the kind of entrepreneurial development on this Island that would be much more supportive and would be more equal. And I think oftentimes of a concept, and actually Mayor Bloomberg is quite a proponent of this, and it is called “innovative districts.” Now I know I have raised this before and maybe this is sort of my platform for vision, but the point of these innovative industries —and I am going to say it out loud to add to the imaginations of our Go vernment and the vision— is that when an indus try is . . . has —
[Inaudible interjection]
Ms. Susan E. JacksonI know, right? When industry starts to grow, when the green shoots begin to appear, the idea of an innovative district is that there will be businesses —small businesses —that will support the growth and development and generate additional revenue for the community at large. So, just as an example, …
I know, right? When industry starts to grow, when the green shoots begin to appear, the idea of an innovative district is that there will be businesses —small businesses —that will support the growth and development and generate additional revenue for the community at large. So, just as an example, because it is a reality for Bermuda, would be something like the airport d evelopment. So we know that there is going to be quite an influx of activ ity in the East End and there is the idea of looking at places like Southside and the notion of introducing to that area support businesses for those that will be working in and spending time down at the airport through that development. So it could be anything from additional . . . auto mechanics could be there so that if you are working down at the airport development and your car needs a tune- up, that you would have the opportunity to drop your car off in the East End, that there would be ability for new resta urants, that there would be lunch small businesses, that there would be nursery schools, dry cleaners, what-ever would be needed to support a core industry in a particular district.
Bermuda House of Assembly And I say that because I feel that there is the reality or the possib ility of something to that effect that could be put in place a lot sooner than the idea of ha ving a glut of people who are professional and skilled in new industries, such as blockchain and cryptocurren-cy. So Mr. Speaker , I am not going to speak that much longer, but I do want to reflect on the fact that —
The SpeakerThe SpeakerYou have about five minutes left.
Ms. Susan E. JacksonOkay. I do want to reflect on the fact that it does not feel as though the average hard- working Bermudian is going to have an opportunity to really feel any savings from this Budget Statement. We are going to pay more for cell phones. We are probably going to …
Okay. I do want to reflect on the fact that it does not feel as though the average hard- working Bermudian is going to have an opportunity to really feel any savings from this Budget Statement. We are going to pay more for cell phones. We are probably going to pay more if we are small business owners and we are renting commercial space in Hamilton. We are probably not going to really receive much of a relief as far as any taxes are co ncerned, albeit we may be receiving a little bit more in our payroll tax, but I do not see that there is much r elief really on a noticeable level. And, you know, I have to say that yes, although it is an inter esting tack for the Government to charge taxi owners $1,000 each, that it is certainly going to be a pill for them to swallow as well. So with that I, again, am going to be most i nterested in seeing how things unfold and I will certai nly be holding the Go vernment to task and challenging where necessary. Thank you, Mr. Speaker .
The SpeakerThe SpeakerThank you, Honourable Member . Does any other Honourable Member wish to speak? I recognise the Honourable Member from constituency 4. Honourable Member Furbert, you have the floor.
Mrs. Tinee FurbertThank you, Mr. Speaker . Mr. Speaker , this Budget is worth us talking about. It is a document that is worth us talking about and it is a document which sets a precedent for doing and not just talking. Why is this worth talking about, Mr. Speaker ? Because …
Thank you, Mr. Speaker . Mr. Speaker , this Budget is worth us talking about. It is a document that is worth us talking about and it is a document which sets a precedent for doing and not just talking. Why is this worth talking about, Mr. Speaker ? Because from the great words of Mr. Gerry Schwartz, Helping people to get a great start in life, a great foundation, is a great investment. There are many programmes and allowances and benefits in this Budget Statement, Mr. Speaker . It is a Budget Statement that gives us benefits for our seniors, both present and future. It is a Budget Stat ement that is good for our adults and our children. And it is a Budget Statement for the growth of our econ omy. Mr. Speaker , one thing that is important is trust. And I do trust that the things that are mentioned in this Budget Statement are ones that we can fulfil. It has been consistent with our . . . the PLP’s platform, it has been consistent with the PLP’s Throne Speech, and now it is cons istent with this Budget Statement, with all the things that we have said that we would do for our people and our community. Mr. Speaker, what I know about working in the service industry is that loyalty is very important. You have some clients who are loy al to you just because you have good relations with them and you have some who are less loyal to you. They will use your service or they may shop around. But there are some characteristics that you must have, Mr. Speaker, to win over your clientele so that they can remain loyal to you. Those are things like being consistent, being honest, and having good communication even when the information is either good or bad. You have to have those characteristics. This forms a foundation for good, or solid, relationships. And I believe that we have accomplished this with this Budget Statement. So why, Mr. Speaker, is this budget good for our seniors both passing and future? We have heard throughout today that we have not done anything for our people, for our senior s. I would just like to refer to a document. It is the “ Personal and Household I ncome, A 2010 Census Analytical Brief .” If I can refer to it, Mr. Speaker?
Mrs. Tinee FurbertIt is the most recent one that we have, even though it is eight years later. But I think it is important to bring to light in regard to seniors. “Seniors (persons 65 years and over) received more of their income from pensions (37.7%), than their main job . . …
It is the most recent one that we have, even though it is eight years later. But I think it is important to bring to light in regard to seniors. “Seniors (persons 65 years and over) received more of their income from pensions (37.7%), than their main job . . ..” The other note that I want to reference is that seniors over the age of 65 reported the lowest median income of only 51 per cent, at $29,643. [Additionally,] seniors are also reported to have twice as likely r eceived financial assistance when compared to the t otal population. I say all of that to say that this Budget Stat ement represents what we are doing for our seniors. We are allowing our seniors to access hospital care with the $25 million subsidy. Actually , in reading some comments from the CEO of the hospital when they came in front of the PAC [Public Accounts Commi ttee], they said that the removal of that $25 million from the previous Government hurt the hospital. And so now we are able to give it back.
The SpeakerThe SpeakerMember, you will take a point of order? POINT OF ORDER [Misleading] 1094 23 February 2018 Official Hansard Report Bermuda House of Assembly Ms. Susan E. Jackson: The Member is misleading the House. Seniors, if they go into the hospital either have their health insurance that pays for it, or, …
Member, you will take a point of order?
POINT OF ORDER [Misleading]
1094 23 February 2018 Official Hansard Report
Bermuda House of Assembly Ms. Susan E. Jackson: The Member is misleading the House. Seniors, if they go into the hospital either have their health insurance that pays for it, or, if they are on financial assistance, they have health insurance that pays for it. So the $25 million is not meant to pay for seniors’ health care in a hospital.
Hon. Kim N. Wilson: Point of clarification, Mr. Speaker, if the Honourable Member will yield.
The SpeakerThe SpeakerThe Minister would like to give clarific ation.
The SpeakerThe SpeakerGo ahead, Minister. POINT OF CLARIFICATION Hon. Kim N. Wilson: Yes, thank you, Mr. Speaker. I believe what the honourable colleague of mine, who represents constituency 4, was saying was that when the last budget was presented, the sum of $25 million was removed from the hospital and that money …
The SpeakerThe SpeakerThank you. Do you want to continue, Member?
Ms. Susan E. JacksonPoint of order, Mr. Speaker, if you do not mind. But that has nothing to do with . . . the $25 million has nothing to do with seniors getting good health care. The . . . yes, this is . . . the hospital has got plenty of . …
The SpeakerThe SpeakerOkay. I am going to ask that if this is a point that you want to delve more into wait until we get to the Head on Health, and let’s delve into it more at that point.
Mrs. Tinee FurbertThank you, Mr. Speaker. The point is that $25 million was taken away from the hospital. The point is, Mr. Speaker, is that the CEO men-tioned that it caused serious financial difficulties for the hospital. And that is the point that I would like to make, Mr. Speaker. Also, with …
Thank you, Mr. Speaker. The point is that $25 million was taken away from the hospital. The point is, Mr. Speaker, is that the CEO men-tioned that it caused serious financial difficulties for the hospital. And that is the point that I would like to make, Mr. Speaker. Also, with our Budget Statement, Mr. Speaker, $1.8 million is put to fund the long- term care facility of Sylvia Richardson, and the reopenin g of the fourth floor of the Sylvia Richardson [Care] Facility. We know that nursing care and long- term care in our community is a serious concern, and that there is not enough of it, and that people are looking for care for people who require, or seniors [with] complex needs. And so with the boost of the $1.8 million to be able to open up the Sylvia Richardson Care Facility, Mr. Speaker, is a great asset to our country. Whether it is 10 beds or 4 beds or 20 beds, those beds will help someone in our communi ty.
Mrs. Tinee FurbertHow our Budget Statement would also help seniors, Mr. Speaker, is the Ministry of Finance will guarantee up to $10 million to support the development of even more senior facilities, which is a need. We know Bermuda has an ageing popul ation. We know that we have a high obesity …
How our Budget Statement would also help seniors, Mr. Speaker, is the Ministry of Finance will guarantee up to $10 million to support the development of even more senior facilities, which is a need. We know Bermuda has an ageing popul ation. We know that we have a high obesity level. We also know that there are many people out there with chronic conditions. So the boost or the guarantee of $10 million, Mr. Speaker, whoever can take advantage of that in providing long- term care for our seniors, is an asset, again. We have also made a commitment, Mr. Speaker, with increasing the pensions yearly at the rate of inflation. When seniors were told that money doesn’t grow on trees, we, the Progressive Labour Party, com mitted to providing an increase to our seniors in their pensions. I earlier made mention to the income salary that a senior has. And it is one of the lowest according to . . . (Excuse me. I am just referring to my notes.) It is reported as the lowest median income, Mr. Speaker. Most of our seniors get their income through fixed pensions. And so any opportun ity that we can give to our seniors to be able to i ncrease their pensions, Mr. Speaker, we have done that as a Government. I have the opportunity to vi sit seniors in the community. And what I notice is that as hard as they worked, Mr. Speaker, as hard as they worked, and as much money as they thought that they could save to assist them as they aged, or as they retired, many seniors do run out of money. S o this asset and this increase in seniors’ pensions will help them out — whether it means they are able to buy more medic ation, whether it means they are able to buy more gr oceries —it will help. Every little amount helps. I would also just like to add the allocation of the $500,000 to restart the solar rebate programme. This was mentioned earlier by the Opposition Leader in regard to how this will help seniors. Well, I have constituents, Mr. Speaker, who are retired. And they speak of having the opportunity to have taken . . . with the past solar rebate programme, and how they were able to factor that into their expenses as they aged. So there were big, big . . . everybody knows that electricity bills can be very expensive. But they were able to use the solar rebate programme to be able to factor into what their expenses and costs would be as they
Bermuda House of Assembly aged. Now that they are retired, they are able to take full advantage of that solar rebate and not have to spend that extra money on their electricity bills. So there are great benefits in reintroducing this pr ogramme for seniors.
The SpeakerThe SpeakerCould I just ask you to check your m icrophone? We are getting a little feedback. Some of the other microphones might be on.
Mrs. Tinee FurbertSomebody’s microphone might be on? [Inaudible interjection] [Pause]
Mrs. Tinee FurbertMr. Speaker, let us talk about what we are doing for our youth and education. The allocation of $140 mi llion, which is an increase of $5.8 million, will provide for key leadership positions that were spoken about in the Opposition’s Reply. It will provide for key leadership opportunities and …
Mr. Speaker, let us talk about what we are doing for our youth and education. The allocation of $140 mi llion, which is an increase of $5.8 million, will provide for key leadership positions that were spoken about in the Opposition’s Reply. It will provide for key leadership opportunities and positions in our education system. It will also provide for pr ogrammes and supplies for our students. And let’s talk about our commitment to making sure that our schools are safe, Mr. Speaker. My chi ldren both attend the public school. And both of them, funny enough, have had to incur issues with our school. Our school is falling apart. As a parent I , and I am sure the many other parents out there, Mr. Speaker, am happy that the Progressive Labour Party is making a commitment to keep our schools safe and maintained. This is also a budget of growth, Mr. Speaker, and we will practice that growth. Let’s talk about the reform and the tax concessions in regard to our pa yroll tax structure. This is something that we are doing as an action plan. We have demonstrated this, Mr. Speaker, which I speak highly about, by assisting persons with disabilities being able to benefit from the tax concession of employers not having to pay taxes on their behalf. So this is a huge, huge step in helping the people in our community, particularly persons with disabilities who are disadvantaged when it comes to being on the top of the list when it comes to being the first choice for employment. So this is a Government that demonstrates that we care about opportunities for all. In the Budget Statement we mention tax r eductions to those earning l ess than $96,000. The lo west employee band will be reduced from 4.7 per cent to 4.0 per cent, resulting in a working couple earning $48[,000] each or a combined total of $97[,000] annu-ally. An example was given that their take- home pay of $720 is something that they would see come back to their income. And when we talk about growth, Mr. Speaker, it means that there is more money in your pocket for paying off debt. It means there is more money in your pocket for paying for groceries. It means there is more money in your pocket to be able to send your children for enrichment programmes, or after -school pr ogrammes. Or it may even something health wise, that you are able to join a gym. So, Mr. Speaker, when we speak about growth and being able to give back t o our community, we have demonstrated this in this Budget Statement. I want to end with this, Mr. Speaker. The last time I checked this was the Islands of Bermuda. And it is not the Islands of the America’s Cup. I am not sa ying that America’s Cup did not have its benefits. It was a stimulus, yes; a short -term one. And now it has gone away, Mr. Speaker. I believe this budget has spoken to that. It has spoken, Mr. Speaker, to longterm stimulus and not short -term stimulus. I just beg the Premier of our count ry to conti nue to put Bermuda and Bermudians first, and continue to make them the centre of attention. I do not know if many of you . . . I mean, we travel. So coming into the airport on my last trip, I still see the advertisements for America’s Cup. So I beg the Premier to make Berm uda the centre of attention again and to remove the pictures and the signs as they relate to America’s Cup. The airport should be that of Bermudians. The first thing that our people and our visitors should see when [they] walk i nto our country is that of Bermuda. I would like to end with that, Mr. Speaker.
[Desk thumping]
The SpeakerThe SpeakerThank you, Honourable Member. Does any other Honourable Member wish to speak? I gather if nobody moves . . . somebody better move. I recogni se the Honourable Member from constituency 22, the Honourable Member Gibbons. You have the floor.
Hon. Dr. E. Grant GibbonsI would have thought that somebody on that side would have wanted to hop up and talk about all the wonderful things — [Inaudible interjections]
An Hon. Member An Hon. MemberYes. 1096 23 February 2018 Official Hansard Report Bermuda House of Assembly [Laughter] Hon. Zane J. S. De Silva: Captain America’s Cup. [Laughter]
Hon. Dr. E. Grant GibbonsLet me start, Mr. Speaker, by thanking the Opposition Leader and the Sha dow Minister of Finance for bringing her Budget Reply today. I think it would be fair to say that in the Reply she certainly highlighted a number of important issues that had been discussed at some length …
Let me start, Mr. Speaker, by thanking the Opposition Leader and the Sha dow Minister of Finance for bringing her Budget Reply today. I think it would be fair to say that in the Reply she certainly highlighted a number of important issues that had been discussed at some length today. Certainly I think a lot of the comments in there were very appropriate. Mr. Speaker, some have said that this could have been an OBA budget. It has been an interesting comment. I have heard it out in the community. In fact, my honourable colleague and Mr. Cannonier referred to it as the PLP out UBP ’ing the OBA , in terms of this budget. And I thought it was a rather cute— [Inaudible interjections]
Hon. Dr. E. Grant GibbonsWell, no. You have got the Honourable Members Furbert and Simmons over there, so — [Inaudible interjections]
Hon. Dr. E. Grant Gibbons—so who knows. Who knows whether there is certainly some legacy — [Inaudible interjections and laughter]
Hon. Dr. E. Grant Gibbons—legacy UBP issues lurking within the depths of the PLP. Anyway, there are probably some elements of truth in that. It is certainly a business -friendly budget. But I think it is fair to say that an OBA budget, had we delivered one this year, certainly would not have come …
—legacy UBP issues lurking within the depths of the PLP. Anyway, there are probably some elements of truth in that. It is certainly a business -friendly budget. But I think it is fair to say that an OBA budget, had we delivered one this year, certainly would not have come out with all the divisive political rhetoric that we had to wade through, and the spin that we had to listen to.
[Inaudible interjections and laughter ]
Hon. Dr. E. Grant GibbonsBut I must confess. I have to give the Premier some credit. My honourable colleague, Cole Simons, referred to him as a good salesman. I think he probably has packaged this PLP budget better than some of the budgets that w e had produced in the past. Substance was our …
But I must confess. I have to give the Premier some credit. My honourable colleague, Cole Simons, referred to him as a good salesman. I think he probably has packaged this PLP budget better than some of the budgets that w e had produced in the past. Substance was our strong suit; not necessarily our political rhetoric. But I think it is also fair to say for some who have said that this could have been an OBA budget, I think there are certainly some differences that are important to note. I am not going to try and channel the former honourable colleague, Bob Richards, here, but it is pretty clear that Mr. Richards would not have i ncreased the deficit from the $26 million that he was projecting up to the $90 million. I think t here was some discussion earlier on about the issue of payroll tax and continuing that. I do not think Mr. Richards would have been able to continue the increase in pa yroll tax this year. And as I will get on to in a few minutes, I do not think he would ha ve had to. But I think, clearly, the increase last year was certainly a burden on quite a few others. But I think it was his effort to try and address the need to bring the budget, and certainly the deficit, back under control. I think the other thing that was pretty clear, and other Members have pointed this out, is the issue of kicking the can down the road when it comes to balancing the budget. Some have called this a ba lanced budget. It is not a balanced budget. There is a deficit projected of some $89 million. Mr. Richards was projecting a $26 million deficit this year. In many respects, as Members have said, this budget actually breaks a promise that the PLP made—promise made, promise broken—by not aiming to balance the budget in 2019, as was certainly the promise in their platform. I think another issue that I noticed, and it has not been mentioned so far, is the rather dramatic i ncrease in headcount that is listed in the budget. The budget projects an additional 266 civil servants being added to the b udget this year. [With] 266, that will take the number of civil servants above the 5,000 mark once again. I think we have had discussions in this House before about the size of government that an economy can actually sustain. One of the things that has cl early come up again and again, and I think one of the clear efforts of the former OBA Government, was to try and right-size a government because of the decline that we saw in the economy measured by GDP over a number of years under the former PLP Government. So when the OBA took over in late 2012, the Budget Book for that year reported 5,348 civil servants. The revised budget for this current year was 4,787. We know that could change a little bit because that is the revision for the 2017/18 year, and the fi nal numbers are not in. But this budget is projecting an additional 266 civil servants on top of that, which would take it up to 5,053. We, as the former Government, obviously recognised that we could not lay off a whole bunch of civil servants. It was in appropriate on any number of levels, from an accounting prospective and otherwise, [and] on a human prospective. But I think the issue of shrinking the size of the government by attrition was clearly one that the former Government was commi tted to, and I t hink certainly this would have been a
Bermuda House of Assembly difference in terms of had we been there to deliver a budget this time, which we clearly are not. When you think about an additional 266 civil servants, what you are looking at, and doing a back - of-the-envelope calcul ation . . . if you were to take a rough salary of $50,000, that adds an additional $13 million. And if you add in a 20 per cent overhead to that as well, what you are looking at is an additional $15 million added to the budget this year. Now, I think it is fair to say that Mr. Richards, were he still Finance Minister, would have had a little more leeway. And I will explain why in a minute. But I do not think there is any way he would have wanted to add an additional 266 civil servants to the government at t his time. We can argue over whether this is an OBA budget or a PLP budget. Clearly, it is a PLP budget. I think what is undeniable is that the current Minister of Finance and the Premier had the luxury of crafting the budget he did, a soft budget by most standards, on the back of what the former United Bermuda—sorry, the former OBA —
Hon. Dr. E. Grant Gibbons—of what the former One Bermuda Alliance party achieved over the last four years. In essence, the Progressive Labour Party has been handed a remarkable record of economic recovery and stabilisation, when you look back at the state of the economy in 2012. [Inaudible interjections]
Hon. Dr. E. Grant GibbonsWas it perfect? No. But certainly, based on what we were handed, it is quite extraordinary. It is kind of interesting. When Junior Minister Furbert earlier on repeated the cute phrase, W e are not going to compete with the OBA to see who can best manage the status quo …
Was it perfect? No. But certainly, based on what we were handed, it is quite extraordinary. It is kind of interesting. When Junior Minister Furbert earlier on repeated the cute phrase, W e are not going to compete with the OBA to see who can best manage the status quo . . . Mr. Speaker, had we left the PLP's status quo in place, like Thelma and Louise, we would have gone over the cliff many years ago. So the PLP have inherited what is a much stronger and stable economy than certainly we were left [with]. The interesting thing is [that] the pre- budget report . . . and I compliment the Minister of Finance on issuing that. It is certainly very helpful to not only us on this side, but also to the broader community. [It] essentially projected a gross domestic product growth of some 2.5 per cent for 2016/17. That is probably, certainly in the 10 years that the numbers are shown, that is certainly much greater than anything we have seen so far. In many respects, it is based on what I will call the “OBA renaissance in tourism.” Of course, we have heard a lot about the America’s Cup today and in the past, but it was really fuelled by the 2017 America’s Cup. Even the Government’s own [2017] National Economic Report stated that “ The Bermuda tourism industry enjoyed a remarkable two years of expansion recor ding monthly year -over-year growth for . . . the past 24 months in leisure air arrivals. ” The $431 mi llion that came from tourism spending last year repr esented, as some have already pointed out, more than 20 per cent increase over an $80 million increase over the 2016 year. I doubt, Mr. Speaker, we have seen anything like that in quite a long time in terms of the increase in visitor spending. It is not just numbers. We all know that the actual number of visitors was the highest in recorded history in 2017, but the spending was also dramatically increased as well as the hotel occupancy rates, which averaged 63.1 per cent in 2017. An i ncrease of over 9.0 per cent over the previous year. I think the other thing that Kevin Dallas co ntinues to talk about as the CEO of the BTA [Bermuda Tourism Authority] is the remarkable fact that a lot of that growth, some 83 per cent of the growth in 2017, came from visitors under the age of 45 years. That is a real turnaround in terms of how our tourism product is being viewe d. I think the other really interesting thing, and I hope this continues, was the impact that the Amer ica’s Cup had on what are known as “vacation rentals.” I am talking about Airbnb here. A lot of members of the community both in St. George’s, Sandys, and probably some other parishes as well, enjoyed renting out their house, particularly during 2017. That vac ation rental actually accounted for some 10 per cent of visitor’s choice in terms of accommodation. And in spite of that, the hotels still increased t heir occupancy rate by some 9 per cent. Obviously there was a huge increase in awareness of Bermuda. We were on the “best list” of scores of trade publications in 2016/17. We had extraordinary visibility. I think the other interesting thing, and it is iro nic, is that the current PLP Government will benefit by the number and the value of new construction projects started. At $537 million, that is going to continue to be the gift that keeps on giving in terms of jobs and money being invested in the community . And of course I 1098 23 February 2018 Official Hansard Report
Bermuda House of Assembly am referring in that to both the Desarrollos project, the St. Regis in St. George’s, and the airport as well, which I gather got a very clean bill of health from the LeighFisher report, from what I have heard today. They made some rather strong recommendations, which were not a surprise to us. Anyway, I think the jobs that have been created from Caroline Bay, Ridge Preserve, AZURA, Tuc ker’s Point, the Loren, and the Hamilton Princess certainly are a very strong base upon which to build. In fact, international business has done quite well, despite the headwinds from tax and the very active headwinds in mergers and consolidations. The fact that they are continuing to grow jobs this past year is certainly a very positive thing. I am going to t ackle jobs for a couple of minutes here, Mr. Speaker, because I think the Bud get Statement is somewhat dismissive in terms of the number of new jobs created in 2017, referring to it, I believe, as “marginal” growth. And I have to admit, 40 jobs on a net basis, and that is what is important here, is not as significant as anybody would have liked on either side of the House. But what I think is interesting is that it was the second consecutive year of job i ncreases in a very long time. And the [2017 National] Economic Report also noted that the Island has lost 6,692 jobs since 2008, a 16.6 per cent reduction. We know that 5,000 of those came from former Progressive Labour Party Government. But when you actually start to drill down and look at the 2017 job num bers, what you find are some interesting facts. The number of Bermudian jobs act ually increased by 82, which was —and this is unus ual—four times the number of non- Bermudian jobs, which were only 22. The PRCs lost 34 jobs, and nonBermudian spouses lost 32 j obs. When you actually look at the sectors where there was job growth, and there were quite a few, hotels and restaurants in 2017 gained 141 jobs, financial intermediation gained 55 jobs, construction gained 54 jobs, and wholesale and retail [gained] 71 jo bs. That is actually, in those four sectors, a total of 321 new jobs in 2017. Obviously, and I think we knew this because of attrition, the government sector, Public Administr ation, as it is called, lost jobs. Indeed, there were job losses in education, health and social work, and social and personal sectors, as well. So, when you contrast that with the economic and financial mess the OBA inherited in 2012, Berm uda at that point was struggling from a prolonged r ecession that began in 2009. There was a ser ious lack of investor confidence. More jobs were being relocat-ed overseas by international business. There was a spiralling 700 per cent increase in debt from 2005 to 2012, and Bermuda desperately needed an economic stimulus. We certainly saw that in terms of the Amer ica’s Cup. I will give the current Finance Minister his due. The Premier understands the importance of making sure that investor confidence is there. And as my honourable colleague, Mr. Simons, said, he has been a good salesman for trying to retain that international business investor confidence. Because I think, as most of us understand, capital is mobile. It very fr equently says goodbye. So, Mr. Speaker, the key challenge for the new Government will be sustaining the benefit that has come out of the America’s Cup and the OBA tourism renaissance. We know from the PwC report that the America’s Cup had a $333 million contribution to the economy, and it also . . . I think it has been mentioned before, but I will say it again. There was a pr ojected $76 million of additional ongoing spending after the America’s Cup was finished, in 2018, 2019, and 2020 in terms of the years. And that will certainly help the Progressive Labour Party, not to mention the country. I think the interesting thing here is that point before about the incredible increase in visitor spending. I want to zero in on this because that significant increase in spending per visitor was due, in many r espects, to the America’s Cup. I will go a little bit further and say that quite a bit of that was due to superyachts and the visiting vessels. More than $20 million of initial GDP contribution came from those superyachts, and I think the issue is that that is a strong base upon which to build a chartering and cruising industry here for tourism. The BTA want it; they have been talking about it for about nine months. They are keen to have it. But, unfortunately, we have seen nothing so far to suggest that the legislation required to extend the America’s Cup superyacht provision has been finis hed or even delivered. It is already late. It should have been deli vered in the fall. We have missed the season in some respects. And it would have been beneficial for Ber-muda because of the hurricane problems in the Caribbean. Unfortunately, it means a loss of momentum. When you think about even a smaller product, like the Billfish Tournaments, the BTA noted that those were something on the order of $4 [million] to $5 million in additional spending contribution. There has been quite a bit of discussion so far about Cross Island and the Government is at loose ends as to how to use that. I think one of the areas that I would certainly recommend to Government is that they pick up on this superyacht. The south arm extension has utilities in place and would cer tainly be a good place to start in terms of finding additional us-es there. I need to correct (I would say) the spin from the Honourable Member, Mr. Famous. He seemed to sort of use rather peculiar math to come to the conclusion that there was an additional $50 million on top of the America’s Cup as a consequence of Cross I sland. The actual cost of Cross Island was $39 million. It was financed by a loan which was guaranteed by Government. You cannot add the cost of interest and
Bermuda House of Assembly that sort of thing on there f or a project like that unless you want to do it for all projects. If you took the Acute Care Wing at the hospital, for example, which I think was coming in at $240 million if you added the interest and the capital in there, we would have to consider the Ac ute Care Wing at the hospital costing us $600 [million] to $800 million. It is like a mortgage, okay? You pay for the mortgage; but over a period of years, particularly a 25 - year mortgage like the Acute Care Wing, you essen-tially pay for a lot more than t he initial cost of the pr oject. So I think the issue here for Government is, stop whining about the capital cost. That is a project that can be used for generations. It is a capital asset; it is not a one- off like some of the other expenses. If you do not like the terms of the loan, renegotiate it — you are the Government —or pay it off. But I think it is probably easier for the Government to simply complain about it as a legacy issue for the OBA. But it provides an extraordinary opportunity in terms of high- end jobs in areas like superyachts. If you want a good example of that . . . and some of you may have been. I see the Honourable Member Mr. De Silva, over there. He has probably been to Mallorca. Go to Port Adriano and you will understand—
[Inaudible interjection]
Hon. Dr. E. Grant GibbonsYou have been to Port Adriano. Then you understand the potential for a superyacht industry, and a high- end marine jobs area. [Inaudible interjections]
Hon. Dr. E. Grant GibbonsDr. Brown may well have a boat there, but you know about it, I do not. The other area of course that is worth purs uing, again for that area out there, is a variety of spor ting projects. Triathlon came directly as a cons equence of the America’s Cup. …
Dr. Brown may well have a boat there, but you know about it, I do not. The other area of course that is worth purs uing, again for that area out there, is a variety of spor ting projects. Triathlon came directly as a cons equence of the America’s Cup. There are a whole s eries of cycling, swim ming, and running events that can be done in the off season. Certainly our Government had a number of those that were put to us. I would highly recommend the current Government have a look at those because those would certainly stimulate and help to sustai n the legacy of the America’s Cup. I am going to switch gears for a little bit here, Mr. Speaker. I want to just touch on some of the pr oposals in the PLP budget. I am going to comment a little bit on FinTech and Blockchain for a minute. It is an area that has been much- talked about in both the technical and the popular press over the last few years. It seems to be the new Government’s preferred area for diversification.
An Hon. Member An Hon. MemberOne of them. [Inaudible interjections] Hon. Dr. E. Grant Gibbons: And certainly I do not think anybody has heard any opposition from this side about FinTech. Frankly, we were looking at FinTech. FinTech has been out there for quite a few years and it is not something that anybody would …
One of them. [Inaudible interjections] Hon. Dr. E. Grant Gibbons: And certainly I do not think anybody has heard any opposition from this side about FinTech. Frankly, we were looking at FinTech. FinTech has been out there for quite a few years and it is not something that anybody would necessarily be opposed to. Blockch ain is simply a tool. It is one that is being now much more broadly used in the banking and insurance sectors, so there is nothing sort of novel about that particularly. In fact, people talk about FinTech as though it was new. PayPal would be an example of a FinTech company that has been around for a number of years, with disintermediate financial sort of payments there. You have seen a number of insurers aggressively going after that. Some of them have a basis here. I think particularly of AIG; it has a separate arm looking at investing in FinTech. Munich Re is involved. Swiss Re is involved. A lot of them are active. But what I would say is, I thought there was some very good advice coming from Stuart Lacey, who some of you will know –– I am sure the Gover nment does, is the CEO behind Trunomi which has actually had a rather remarkable success. And I will call it in the RegTech area, or FinTech. What he said back in the fall of last year was that if you are going to do this stuff, you have to have the right i nfrastructure in place. And at the time he was referring to the tech hub, which the Government proposed they were going to do an RFI [Request for Information] on. (I will get back to that in a second.) You have got to have the right opportunities in place. And he thought the bac king of a larger company was probably a good way to go. And as I said, there were a lot of larger companies involved in this. But he did not see a big technology company moving to Bermuda to start here. They may have something of a branch or something of that sort. He pointed to the very high cost of business. The other need he noted in this area was that a lot of start -ups rely on educated young people looking to the future who were willing to work (he did not say for peanuts, but wi lling to work) long hours for very little money knowing that they may have to delay that gratification for a longer period of time. They tend to come out of universities and that is one of the re asons why Palo Alto around Stanford, and some of the California colleges out there, the colleges in the Boston/Cambridge area around MIT and all the rest of it, a lot of these people want to be at the centre of action. And that is one of the challenges, and I will put it in terms of the challenges, that Bermuda faces in order to be able to sort of really do this kind of business properly. Not to mention that every other country in the world is also trying to do this. So I thought it was good advice for the Government. I was interested to see that the Government appar ently has discarded, or maybe changed, that tech hub. I would be interested to know what the R equest for Information, or the RFI, actually said to 1100 23 February 2018 Official Hansard Report
Bermuda House of Assembly them, but apparently they are not proceeding now with the [technology] park outlined in Southside. Ironically enough, the original —
Hon. Wayne Caines: Point of clarification.
The SpeakerThe SpeakerYou will yield to take a point of clarific ation from the Minister.
The SpeakerThe SpeakerGo ahead, Minister. POINT OF C LARIFICATION Hon. Wayne Caines: Mr. Speaker, the tech hub forms a clear part of the Government’s plan going forward. In due course we will explain that and have the opportunity for this Member to see the plans, and clearly and systematically work through those …
The SpeakerThe SpeakerThank you for the information. Member, you can continue.
Hon. Dr. E. Grant GibbonsThank you, Mr. Speaker. I thank the Honourable Member. The interesting thing about this is [that] there was a technolo gy park that was proposed back in the late 1990s down there. , in some respects , that boat sailed a while ago. You know, I think I glory in …
Thank you, Mr. Speaker. I thank the Honourable Member. The interesting thing about this is [that] there was a technolo gy park that was proposed back in the late 1990s down there. , in some respects , that boat sailed a while ago. You know, I think I glory in the enthusiasm, particularly at that Minister and others, but frankly, in many respects, as one of my honourable colleagues said, we have got to be in this business. I am not talking cryptocurrencies, necessarily. But we have got to be in the FinTech business. We have got to be in the Blockchain business. Because a lot of other people are quite far ahead of us and I thi nk of Gibraltar, Cayman, Singapore, Hong Kong, London —
The SpeakerThe SpeakerHe will feel his way through. Continue on. You are good.
Hon. Dr. E. Grant GibbonsThank you. As some people have said, I think we have to be very careful, particularly with the cryptocurrencies and initial coin offerings. There is a lot of fraud going on in that area. And I know that the Government is very sensitive about this, but this is an area, …
Thank you. As some people have said, I think we have to be very careful, particularly with the cryptocurrencies and initial coin offerings. There is a lot of fraud going on in that area. And I know that the Government is very sensitive about this, but this is an area, partic ularly with our, essentially, CFATF review, that we have got to be very careful. But I think the more important issue, and this is the $64 question. What does the Government think this is really going to contribute in terms of jobs, in terms of tax revenue? We looked at Cayman Enterprise City a number of years ago as the former Government. The problem is you had to give so much away in terms of i ncentives and all the rest of it that what was sort of left over did not look all that interesting. You also have to be realistic about bringing in a lot of talented people. So Immigration is going to have to have a very, what I will call, liberal view of things. We do have talented people in Bermuda, Mr. Speaker, but we do not have the right type of talented people in Bermuda to . . . we do not have the home- grown talent at this point to be able to operate a lot of these FinTech operations. And that is part of the challenge. They are expensive and they are not easy to attract. I think it is going to be really important, as others have said, to get the Bermuda education system oriented in the proper direction. We certainly are not there yet. Another area that is going to be key is our i ntellectual property protection. It is way behind. That needs to be fixed, and neither the former PLP Gov-ernment did it or the OBA Government. If you are going to get that kind of business here, you need to have intellectual property protection. Ours is definitely outdated. I think the other issue —
Hon. Dr. E. Grant GibbonsThe other issue, of course, is start -up capital is not available here. It is going to be required. And so those are some of the issues that I think we . . . and education — [Inaudible interjection]
Hon. Dr. E. Grant GibbonsYes. I am going to touch very briefly on the 60/40 provisions. I must confess; I have very mixed feelings about this, as a former Mi nister of Finance in the 1990s and having been responsible for Economic Development in the last budget. I probably should declare interest on two …
Yes. I am going to touch very briefly on the 60/40 provisions. I must confess; I have very mixed feelings about this, as a former Mi nister of Finance in the 1990s and having been responsible for Economic Development in the last budget. I probably should declare interest on two levels. One is, I am interested and I have seen a lot of the 60/40 applications. But I think there are definitely two sides to this particular story. I, perhaps like a lot of PLP supporters, worry that this is going to impact small bus inesses —
Bermuda House of Assembly [Inaudible interjec tions]
An Hon. Member An Hon. MemberDo not speak for us in the PLP!
The SpeakerThe SpeakerMembers! Go ahead. [Inaudible interjections] [Gavel]
Hon. Dr. E. Grant GibbonsForeign investors are generally much less co ncerned about supporting Bermudian interest. I think, Mr. Speaker, what you could find, going from a 60/40 to 40/60, is that a lot of the profits will start to go out of Bermuda. Bermudian shareholders are much more likely to spend the mon …
Foreign investors are generally much less co ncerned about supporting Bermudian interest. I think, Mr. Speaker, what you could find, going from a 60/40 to 40/60, is that a lot of the profits will start to go out of Bermuda. Bermudian shareholders are much more likely to spend the mon ey and keep the m oney in Bermuda to grow the bus iness or reinvest elsewhere on the I sland. And long term, one of the challenges here is that you could well see a shift of ownership of profitable Bermudian bus inesses going into the hands of foreign owners. And this is an is sue of control. Those of us who have been in the corporate business understand that pretty i mplicitly. And I think you have seen what happened with HSBC. And if I were working at BELCO, for ex ample, I would be very concerned about the possibility there because that obviously could change hands very quickly into foreign—
[Timer beeps]
The SpeakerThe SpeakerThank you. Thank you, Member.
The SpeakerThe SpeakerBefore I recognise t he next speaker, I just want to say, Members, you should pat yourselves on the back. Meaning we acknowledged the visitors who are here for the conference earlier and there was only a handful of members, but you guys are doing so good that they have …
Before I recognise t he next speaker, I just want to say, Members, you should pat yourselves on the back. Meaning we acknowledged the visitors who are here for the conference earlier and there was only a handful of members, but you guys are doing so good that they have encoura ged the rest of the me mbers to come visit us today.
[Desk thumping]
The SpeakerThe SpeakerSo now we have a Gallery full of the scientists who have come down to be a part of the Bermuda [Principles]: Impact on Spicing [sic].
An Hon. Member An Hon. MemberSplicing. The Speake r: Splicing, yes. Got it correct that time. So we just welcome the scientists that have just joined us, and again, Members, I take it is a co mpliment to you that their colleagues encouraged them to come in and fill the Gallery to hear you this …
Splicing. The Speake r: Splicing, yes. Got it correct that time. So we just welcome the scientists that have just joined us, and again, Members, I take it is a co mpliment to you that their colleagues encouraged them to come in and fill the Gallery to hear you this afternoon.
[Desk thumping]
[Debate on the Budget Statement and Reply contin uing]
The SpeakerThe SpeakerYes. I now recognise the Honourable Member De Silva. You have the floor. [Crosstalk ] Hon. Zane J. S. De Silva: Thank you, Mr. Speaker. Mr. Speaker, I think it is only right I start where the Honourable Member Dr. Gibbons just fi nished when he started talking about our …
Yes. I now recognise the Honourable Member De Silva. You have the floor.
[Crosstalk ]
Hon. Zane J. S. De Silva: Thank you, Mr. Speaker. Mr. Speaker, I think it is only right I start where the Honourable Member Dr. Gibbons just fi nished when he started talking about our supporters. I doubt if he . . . when was the last time he was around Court Street?
[Inaudible interjections]
Hon. Zane J. S. De Silva: Talk about our supporters, Mr. Speaker! How dare he talk about our supporters! What does he know about PLP supporters? [Inaudible interjections] Hon. Zane J. S. De Silva: Just about as much as Sir John Swan does, I guess.
The SpeakerThe SpeakerYes, we will take your point of order. 1102 23 February 2018 Official Hansard Report Bermuda House of Assembly POINT OF ORDER
Hon. Dr. E. Grant GibbonsI have a lot of PLP supporters in my constituency, and I speak to them from time to time. So I think I know a fair bit about PLP supporters. In fact, unfortunately, there were more of them this past time than there was the previous time. But we will …
The SpeakerThe SpeakerI thought you were about to say some of them even voted for you. Hon. Wayne Caines: We will fix Cardoza’s Garage. Hon. D r. E. Grant Gibbons: Mr. Speaker, some of them did vote for me. I know that. [Laughter and inaudible interjections ]
The SpeakerThe SpeakerAll right. Continue on, Member De Si lva. Continue on. Hon. Zane J. S. De Silva : I wonder how many supporters he has as far as Cardoza ’s Garage. [Inaudible interjections]
The SpeakerThe SpeakerContinue on. Hon. Zane J. S. De Silva: But Mr. Speaker, the Ho nourable Member, Dr. Gibbons, spoke about the 266 jobs in the budget that we have estimated and talked about, you know, they want to track about shrinking and attrition. But what the Honourable Member did not talk …
Continue on. Hon. Zane J. S. De Silva: But Mr. Speaker, the Ho nourable Member, Dr. Gibbons, spoke about the 266 jobs in the budget that we have estimated and talked about, you know, they want to track about shrinking and attrition. But what the Honourable Member did not talk about is the burnout of the civil servants. When they decided to cut jobs through attrition, they did not talk about the burnout of the civil servants. I had the luxury of ha ving to talk to staff when I was in the Mi nistry, Mr. Speaker, as many of my Cabinet colleagues found out as well. Everywhere we turned, there was burnout. But of course we do not expect the OBA to care about our civil servants and the burnout, do we?
Some Hon. Members Some Hon. MembersNo! No! Hon. Zane J. S. De Silva: That is why they are over there in very, very, very low numbers, Mr. Speaker.
An Hon. Member An Hon. MemberSiberia. [Inaudible interjections] Hon. Zane J. S. De Silva: But what the Honourable Member Dr. Gibbons did not tell you as well is that for almost every civil servant that retired through attrition, how many consultants did they hire? Why do our civil servants have burnout? You know why? Because …
Siberia.
[Inaudible interjections] Hon. Zane J. S. De Silva: But what the Honourable Member Dr. Gibbons did not tell you as well is that for almost every civil servant that retired through attrition, how many consultants did they hire? Why do our civil servants have burnout? You know why? Because all of the experience they just . . . che-che-che-che-cheche, flicked out the window! Yes, Mr. Speaker. Now, the Honourable Member Dr. Gibbons also suggested, Stop whining, over this side, about Cross Island. Isn’t that a comment he should make? Tell all the folks on financial assistance that. Tell all of our senior s that. Tell all our school kids who cannot catch a bus that. Tell all of our trash truck drivers and all of our constituents who can now only get trash [picked up] once a week because they [the OBA] fi gured they would build Cross Island and not buy any new trash trucks.
[Inaudible interjections]
[Gavel]
Hon. Zane J. S. De Silva: Why are our children in mouldy schools? Yes, sir, that America’s Cup took over everything.
An Hon. Member An Hon. MemberYes. Hon. Zane J. S. De Silva: Talk about s top whining. That is as bad as the former Attorney General talking about, Well, I am going to cut off —
The SpeakerThe SpeakerWe will take your point of order. POINT OF ORDER [Misleading]
Hon. Dr. E. Grant GibbonsThe Honourable Member is misleading the House. He has a very poor memory. The OBA inherited a whole series of mouldy schools from the former Government.
An Hon. Member An Hon. MemberExactly!
The SpeakerThe SpeakerMember, you can continue on. Hon. Zane J. S. De Silva: Thank you. Thank you. And, Mr. Speaker , they had four years to fix it and have done jack! But you see, when they talk about whining, Mr. Speaker, that is just their attitude.
An Hon. Member An Hon. MemberYes. [Inaudible interjections] Hon. Zane J. S. De Silva: Like the former Member, Attorney General Mr. Moniz, turned off the seniors’ water up in Dockyard. [Inaudible interjections] Bermuda House of Assembly Hon. Zane J. S. De Silva: That is why they are over on that side today. And that is …
Yes.
[Inaudible interjections] Hon. Zane J. S. De Silva: Like the former Member, Attorney General Mr. Moniz, turned off the seniors’ water up in Dockyard. [Inaudible interjections]
Bermuda House of Assembly Hon. Zane J. S. De Silva: That is why they are over on that side today. And that is where they are going to stay! Now, Mr. Speaker, I have been in this House over 10 years. [Inaudible interjections and laughter ] Hon. Zane J. S. De Silva: I have never, never wi tnessed— I ain’t going anywhere in a hurry, Cole. Right? [Inaudible interjections]
[Hon. Derrick V. Burgess, Sr., Deputy Speaker, in the Chair]
Hon. Zane J. S. De Silva: Mr. Deputy Speaker, I have been in this House 10 years, and today I wi tnessed a first.
An Hon. Member An Hon. MemberTell us about it. Hon. Zane J. S. De Silva: The amazing this is, you know, you had the Opposition Leader, Shadow F inance Minister, finish her speech, and not one clap, not one foot stomp. But you know what? If I was the Opposition Leader, I would be very …
Tell us about it. Hon. Zane J. S. De Silva: The amazing this is, you know, you had the Opposition Leader, Shadow F inance Minister, finish her speech, and not one clap, not one foot stomp. But you know what? If I was the Opposition Leader, I would be very vexed right now. Because it seems like to a person that stood up on that side of the House has clapped for Bob Richard, who is no longer here.
An Hon. Member An Hon. MemberThe phantom. Hon. Zane J. S. De Silva: The phantom indeed. [Inaudible interjections] Hon. Zane J. S. De Silva: Wow! No acknowledgement from their own team.
An Hon. Member An Hon. MemberIt tells a lot. Hon. Zane J. S. De S ilva: It does tell a story. It does tell a story. Now, Mr. [Deputy] Speaker, I got a few things that I would like to touch on. The first one is, the Hon-ourable Member Mr. Cole Simons, talked about our …
It tells a lot.
Hon. Zane J. S. De S ilva: It does tell a story. It does tell a story. Now, Mr. [Deputy] Speaker, I got a few things that I would like to touch on. The first one is, the Hon-ourable Member Mr. Cole Simons, talked about our Leader, Mr. David Burt, the Premier of the country. Said he was a great salesman. I tell you what, thank you for the compliment. But he ain’t as good as Mr. Captain America’s Cup, is he? Because he sold that America’s Cup dream to everybody on their side. Talk about a salesman!
An Hon. Member An Hon. MemberYes! Hon. Z ane J. S. De Silva: Talk about a salesman! [Inaudible interjections] Hon. Zane J. S. De Silva: Oh, and we will touch on that in a moment too. [Inaudible interjections] Hon. Zane J. S. De Silva: The Honourable Members were clapping and stomping their feet for the …
Yes!
Hon. Z ane J. S. De Silva: Talk about a salesman! [Inaudible interjections]
Hon. Zane J. S. De Silva: Oh, and we will touch on that in a moment too. [Inaudible interjections]
Hon. Zane J. S. De Silva: The Honourable Members were clapping and stomping their feet for the former Minister Bob Richards —the man that doubled our debt in less than four years. Doubled it! Doubled the debt in four years! Wow! What a great Finance Mini ster he was. Maybe that is why he is where he is, and Mr. Famous is where he is. Now, Mr. [Deputy] Speaker, on the very first page, I could not help [but notice] that the America’s Cup was mentioned four times. In actual fact —
[Inaudible interjections]
Hon. Zane J. S. De Silva: Yes, it was mentioned four times on the first page. [It w as mentioned] 15 times in all in the Budget [Reply]. But, Mr. [Deputy] Speaker, let us look at what they say the OBA Government delivered on: Hotel investment, creation of the Bermuda Tourism Author ity, America’s Cup, increase in tourism arrivals, [and] airport redevelopment. Let’s talk about a few of those. Creation of the Bermuda Tourism Authority. Well, my, oh, my, what was revealed in the last couple of weeks? You have almost all of the executive me mbers of the Bermuda Tourism Authority making more than the Premier of this country!
An Hon. Member An Hon. MemberAbsolutely!
Hon. Dr. E. Grant GibbonsEat your heart out. Hon. Zane J. S. De Silva: Each your heart out, Dr. Gibbons says. See? See, people of this country, see how they play with your money? Eat your heart out , Dr. Gibbons says. [There were] $60,000, $80,000, and $100,000 bonuses when we have people on …
Eat your heart out.
Hon. Zane J. S. De Silva: Each your heart out, Dr. Gibbons says. See? See, people of this country, see how they play with your money? Eat your heart out , Dr. Gibbons says. [There were] $60,000, $80,000, and $100,000 bonuses when we have people on financial assistance who cannot pay rent [or] buy food. We have seniors that are struggling between prescriptions and buying groceries. But, you see, t hose comments from people like the Honourable Member Dr. Gibbons, tell a story. My, oh, my! Then we get this Budget Reply, throughout this document, talking about how tourism has i ncreased to the nth degree. Humph! Give me $120 mi llion; I will increase t ourism too. And I will get to a little bit more detail in a moment, Mr. Deputy Speaker. Mr. Deputy Speaker, airport redevelopment was one of their deliverables. Just today, Mr. [Deputy] Speaker, there is a piece of heavy equipment on the dock that arrived from Aecon. We have companies in Bermuda, and I declare my interest, that have equi p1104 23 February 2018 Official Hansard Report
Bermuda House of Assembly ment that they paid duty on to the tune of millions of dollars which are sitting idle, whilst Aecon is allowed to bring heavy equipment into this country when we have equipment standing idle. Shame! Shame! Shame! But hopefully we will get that fixed. On the very first page, last sentence, Mr. [Deputy] Speaker, and I quote. “T he America's Cup was one of the most important projects which the OBA government realized. ” What they did not say was that it was the most expensive as well. Mr. Speaker, let me just touch on something else that the Honourable Member Cole Simons talked about when he was chastising —maybe some would say talking nonsense— with regard to AML, NAMLC, and the l ike. And he stated, We must not send the wrong message to the people of this country. Now, they have started already. In fact, the Honourable Member Sylvan Richards is here tonight. I remember one time when he was over here as Minister, he said, You guys! The international business is watching and listening. Stop all this scaremongering! They have been here seven months and it has started already. The wrong message, Mr. Cole Simons said, the wrong message. Well! What about the wrong message with the Lahey [lawsuit]? And all of that frivolous, fabulous, fabricated bunch of nonsense. And you talk about protecting our image! Now, let me tell you something else, Mr. Deputy Speaker. During their term, if AMLC and NAMLC and AML . . . if that was so important to the country, what progress did they make?
An Hon. Member An Hon. MemberAbsolutely! Hon. Zane J. S. De Silva: I understand, Mr. [Deputy] Speaker, it was not on their priority list. Their priority list was a boat race and Dr. Brown. [Inaudible interjections] Hon. Zane J. S. De Silva: That was their priority. I nvestigating Dr. Brown and getting that boat race …
Absolutely! Hon. Zane J. S. De Silva: I understand, Mr. [Deputy] Speaker, it was not on their priority list. Their priority list was a boat race and Dr. Brown.
[Inaudible interjections]
Hon. Zane J. S. De Silva: That was their priority. I nvestigating Dr. Brown and getting that boat race here. But let us not forget what the New York Times said to San Francisco after they hosted the America’s Cup. “Bamboozled by [a] billionaire.” But let me just, before I move off of that . . . we have a NAMLC team, Mr. Deputy Speaker. So the people of this country know that we are taking that assessment very seriously. We have a NAMLC team that meets regularly. The Ministers make up a subcommittee. They meet every other Monday. The Go vernment takes this assessment seriously. Unlike the now Opposition, we have been pushing hard to make sure that this is a priority for this Government. The Premier leads that meeting, Mr. Deputy Speaker. That is how serious we take it. But for that Honourable Member to get up and preach to us —
An Hon. Member An Hon. MemberScaremongering! Hon. Zane J. S. De Silva: Scaremongering the pe ople of this country, maybe some of our foreign investors, but has not even checked that the Premier . . . the wannabe Premier —if you remember, Mr. Richards talking about on many occasions in this House, the wannabe Premier. …
Scaremongering! Hon. Zane J. S. De Silva: Scaremongering the pe ople of this country, maybe some of our foreign investors, but has not even checked that the Premier . . . the wannabe Premier —if you remember, Mr. Richards talking about on many occasions in this House, the wannabe Premier. Wow! Wow! Wow! How things change. [Inaudible interjections] Hon. Zane J. S. De Silva: But that wannabe Premier knows the importance of t his assessment, and he heads the committee himself. So, Mr. [Deputy] Speaker, do not get up here and talk about NAMLC and AML and what we are not doing and what we have to do to look after the interest of this country. We have a dynamic team! A dynamic team that is meeting every week to make sure that it protects the interests of this country. And I would like to thank all of you! Now, Mr. [Deputy] Speaker, I notice in the Opposition’s Reply, it talks about Morgan’s Point. When did that start? The Loren. When did that start? Hamilton Princess. When did that start? St. George’s hotel, negotiations started. We had a Minister . . . well, actually, Mr. Deputy Speaker, when you were Mini ster, you saved the country about $7 million. If you had gone with the tech nical office, we would have been $7 million in the hole. Never got any credit for that! But they are quick to talk about . . . well, what about the Dame Lois Browne[ -Evans Building] where we save d more money. That will save this country $10 million a year when that loan is paid . . . well, it is paid off, if you took it as a loan. The money that we done, came in, I think about 8 per cent over budget, which is a lmost unheard of in the industry. And the airport redevelopment —
[Inaudible interjections]
Hon. Zane J. S. De Silva: Wow . . . But do you know what I found? I will get to the airport a little later, too, Mr. Deputy Speaker . But do you know what? What is interesting . . . and I am glad that the Honourable Member , Dr. Gibbons, spoke about the America’ s Cup in depth, but on their page 4, the last paragraph, if I may, Mr. [Deputy] Speaker : “Thirdly, and extraordinarily, the Government is banking on the level of customs duty continuing at the 2017/18 level and even increasing. Rather amazingly, the PLP —in Opposition and then in Gover nment —has refused to acknowledge the phenomenal impact of the America’s Cup to the Bermudian eco nomy. And yet, they are continuing to hope for the America’s Cup dividend to continue to deliver Government revenue. It is simply not realistic to expect this in a year where there will be no America’s Cup, or any other significant revenue event.”
Bermuda House of Assembly Now let us think about that statement for a moment. It is not realistic to expect it . Well, let us not forget about this legacy assessment that was done. In fact, the Honourable Member Dr. Gibbons just said that he expects in the next three years $76 million (I think was the number), and he is shaking his head yes in approval. The PwC Report —so we will get $76 mi llion, but in this one they say, You guys have got a lot of nerve trying to count on that as revenue coming in.
The Deputy SpeakerDeputy SpeakerWhat is your point of order, Member? POINT OF ORDER
Hon. Dr. E. Grant GibbonsPoint of order is the Budget Reply talked about customs duty. The $76 million was in additional tourism spending.
The Deputy SpeakerDeputy SpeakerContinue on, Minister. Hon. Zane J. S. De Silva: Grasping at straws, Mr. [Deputy] Speaker . Mr. [Deputy] Speaker, we heard a lot about the legacy. And the Honourable Member Pat GordonPamplin keeps talking $330 million. But if it is going to generate this $330 million, $76 million over the …
Continue on, Minister.
Hon. Zane J. S. De Silva: Grasping at straws, Mr. [Deputy] Speaker . Mr. [Deputy] Speaker, we heard a lot about the legacy. And the Honourable Member Pat GordonPamplin keeps talking $330 million. But if it is going to generate this $330 million, $76 million over the next three years, why should we not count on some of that luxury? So, one minute they s ay this, the next minute they say another. Now, I tell you what, Mr. [Deputy] Speaker, let us move over to page 14, under Domestic Economy, “After consecutive quarters of growth, Bermuda has just seen 2 quarters of contraction.” But what about this legac y? So, why do we have two quarters of contraction? I will yield to the Honourable Member Dr. Gi bbons, please.
Hon. Dr. E. Grant GibbonsYes, happy to. You are mixing apples and oranges. The two quarters of contraction are 2016. The 2017, according to the prebudget, was 2.5 per cent increase in GDP. Hon. Zane J. S. De Silva: So, in your estimation then . . . thank you for that. Now, in your …
Yes, happy to. You are mixing apples and oranges. The two quarters of contraction are 2016. The 2017, according to the prebudget, was 2.5 per cent increase in GDP.
Hon. Zane J. S. De Silva: So, in your estimation then . . . thank you for that. Now, in your estimation, then, our GDP is going to grow.
[Inaudible interjection]
Hon. Zane J. S. De Silva: You cannot have it both ways, Dr. Gibbons. You cannot have it both ways!
[Inaudible interjections] Hon. Zane J. S. De Silva: You cannot have it both ways! If it is contracted, then that does not talk about this fiscal period. If you are talking about the last one . . . you cannot have it both ways. So, in other words, it was on the way down under you.
[Inaudible interjections]
Hon. Zane J. S. De Silva: Oh, it was two quarters, but it is going down. One more quarter . . . what is that? What does that relate to? In your leader’s words . . . or is it the start of a recession? So, that even pours more oil on that statement, sir. Wow. Now, before I leave that page, at the very top, Mr. [Deputy] Speaker, the OBA —“Given the PLP’s past record for failed revenue and expense projections, we cannot even trust that this delayed commi tment will be met.” Right? Talking about the debt. Mr. [Deputy] Speaker, they go on to say, “This is unfortunate, given that Bermuda’s credit agencies will be paying close attention.” Well, I hope they are paying close attention because, guess what, we did not have to raise the debt ceiling.
[Inaudible interjections] Hon. Zane J. S. De Silva: Aha! Oh! Yes, sir! Fancy that. So, let us hope they do pay close attention. Now, Mr. [Deputy] Speaker, there has been a bit of talk about Cross Island and the Honourable Member Mr. Famous gave a very good breakdown, I thought, in the expenses. One thing the Honourable Member Famous did not do, which I will highlight, Mr. [Deputy] Speaker, is that the Cross Island property . . . no matter if it is 9 acres or 11 acres, makes no difference. It is the most expensive piece of real estate in Bermuda’s history. Why do I say that? [Because] $40 million divided by 9 is $4.4 million per acre. You do not even pay that down in Tucker’s Town, Mr. Deputy Speaker . You do not even pay it down Tucker’s Town. The most expensive piece of real estate in our history and the expenses are not over, as you know. We still have a debt. Mr. [Deputy] Speaker, on page 16 the OBA talks about tourism, and I quote, “For the first time in Bermuda's history, our tourism product is being gui ded by an independent, private enterprise. 2017” (A lready talked about the bonuses and wages, double that of the Premier) “brought 692,947 visitors to the island.” That is very nice. Sweet. Give me $120 million and I will bring them in, too—and I will not need an America’s Cup. What a waste of money! And let us talk about something else when we are talking about the America’s Cup and the Bermuda Tourism Authority and the executive staff with these huge bonuses, Mr. [Deputy] Speaker . Let us talk about that for just a moment. The money that went 1106 23 February 2018 Official Hansard Report
Bermuda House of Assembly into the America’s Cup—$120 million . . . Well, look how much money went into bringing tourists to the Island? Yet, on top of that, because we spent $120 million of the taxpayers’ money bringing a record amount of tourists to the Island, on top of that, b ecause of the success and the numbers, we then have to pay out almost, I would say over $1 million, easy, in bonuses . So, you take $120 million of taxpayers’ money, you bring in America’s Cup, it increases the vis itors and you have people that get a bonus on top of that—making double the wage of our hard- working Premier. You have got to be joking! Maybe the Premier of the country needs to make a half million or a million a year, if you want to do it on a prorated basis.
[Inaudible interjections and laughter ] Hon. Zane J. S. De Silva: It’s good spin, he says. But it is true. It is true. It is the truth. You cannot hide from the truth. It was interesting, on page 18 the Honourable Opposition Leader, and I quote, “The Premier has provided us with grand plans for the creation of new industries, but can the Minister of Finance provide us with a clearer indication as to ho w many jobs will be created and as to the quality of jobs which Bermudians can expect.” This from the same Government that said they were going to create 2,000 jobs. In a year and a half they lost 2,000 and therefore had a deficit of 4,000 jobs. They have the audacity to ask our Finance Minister, you know, where are these jobs going to be created and what are the quality of those jobs? Wow. Wow. Now, Mr. Deputy Speaker, how are we doing for time? [Inaudible interjections]
Hon. Zane J. S. De Silva: How many?
[Inaudible interjections]
Hon. Zane J. S. De Silva: Gee, that went by quick. All right . . . now, Mr. [Deputy] Speaker, the Honourable Member Susan Jackson talked about how the taxpayer is going to have to pay out all these do llars and, in particul ar, she was talking about the money at the hospital. And, you know, my answer to that is . . . listen, she then went on to talk about friends and family, who is going to get contracts for this $25 million , which was way off base, Mr. [Deputy] Spea ker. Ther e can be no more friends and family like those at BC&M and the America’s Cup who did not have to bid on anything. In fact, the Honourable Member Dr. Gibbons . . . and let us not forget what Dr. Gibbons said during that debate—that the America’s Cup is the silver bullet. [Inaudible interjections]
Hon. Zane J. S. De Silva: Silver bullet to Bermuda’s economy! [Inaudible interjections]
Hon. Zane J. S. De Silva: The silver bullet! That is what he said. But, in other words, he also said that if it were not for the America’s Cup there would have been more taxation and, and, and, I will quote him —but I only have seven minutes —a larger deficit were his words —higher taxes and a larger deficit . And the America’s Cup was the silver bullet.
Hon. Dr. E. Grant Gibbo nsYes, you are welcome. Hon. Zane J. S. De Silva: I do not see . . . I do not see where we have had that kind of return, Mr. Deputy Speaker . Now, Mr. Deputy Speaker, the former Attorney General, Mr. Moniz, spoke earlier. In fact, he spoke first …
Yes, you are welcome.
Hon. Zane J. S. De Silva: I do not see . . . I do not see where we have had that kind of return, Mr. Deputy Speaker . Now, Mr. Deputy Speaker, the former Attorney General, Mr. Moniz, spoke earlier. In fact, he spoke first on that side. And he said a couple of things that I think really, really need responding to. One of the things that he said was that we shot ourselves in the foot with regard to same- sex marriage. Shot ourselves in the foot. They had four years to fix it. They did not. We fixed it in seven months. So, you know, when you talk about shooting yourselves in the foot and then he wants to call people’s names and dah, dah, dah, dah, dah. Well, we know what they did not do. Mr. [Deputy] Speaker, the honourable former Attorney General also talked about the payments made to Dr. Brown, and he said, Why did the PLP pay him? Well, let us ask this question: Why did the Attorney General take the money from him? Why did he take it from him, Mr. [Deputy] Speaker? And then he had the audacity to say the public wants to know if Dr. Brown was a major donor to the Progressive Labour Party. Well, who is their major donor? Is it Butterfield & Vallis? BC&M? Dunkley’s? Did Mr. Landau give them another $350,000 for this election?
[Inaudible interjections]
Hon. Zane J. S. De Silva: Did anybody deliver any money on a jet this time?
[Inaudible interjections]
Hon. Zane J. S. De Silva: But, you know what? An ything the former Attorney General Moniz says does not surprise me. Anybody that can make the decisions that he made—shredding documents . . . in fact, most people . . . can you imagine if there was a PLP Attorney General and when you went to the cupboard, the
B ermuda House of Assembly cupboard was bare? The cupboard was bare, Mr. Deputy Speaker ! I know that if i t was a PLP Attorney General he might have been in a place where you are only allowed one phone call. [ Inaudible interjections] Hon. Zane J. S. De Silva: And he still may end up in that place where he has only got one phone call, be-cause that is not fin ished yet, Mr. [Deputy] Speaker . But you know what? I think Mr. Moniz is as king questions today, but he needs to answer ques-tions. How about answering a question under oath— under oath—how he got personal information on Dr. Brown, which is a contradiction to the Bermuda Con-stitution. The Commissioner and the Governor should be asking the former Attorney General how he got that information. All I ask is, suppose that was a PLP A ttorney General. Where would he be? Where would he be? Mr. [Deputy] Speaker, I know I am running short of time, but I will finish on this note. If all the OBA members that are left of that former Government support the draconian, almost criminal, decisions that were made with regard to Dr. Brown —
The Deputy SpeakerDeputy SpeakerPoint of —yes? POINT OF ORDER [Imputing improper motives]
Hon. Dr. E. Grant GibbonsAccusing us is certainly imputing improper motives. The Honourable Member cannot do that. Hon. Zane J. S. De Silva: I did not say criminal. I said almost criminal. Are you guilty?
The Deputy SpeakerDeputy SpeakerCarry on. Hon. Zane J. S. De Silva: I said almost criminal. And we know everybody in Bermuda, everybody in this House knows that this was almost criminal. How would you like if your insurance fees, Dr. Gibbons, were cut by 87 per cent? How would anybody in this House …
Carry on. Hon. Zane J. S. De Silva: I said almost criminal. And we know everybody in Bermuda, everybody in this House knows that this was almost criminal. How would you like if your insurance fees, Dr. Gibbons, were cut by 87 per cent? How would anybody in this House like to have their fees, their income, reduced by 87 per cent? How many? How many? It is dracon ian and, quite frankly, I think . . . hopefully that will be fixed in due time. But, Mr. [Deputy] Speaker, let me say this: It was not only Brown- Darrell Clinic and Bermuda health care . . . and they try to dress it up by doing the hospi-tal. Dr. Brown cannot come back to this House for a supplementary. But the hospital can. So that red her-ring by deducting the hospital does not mean jack. [ Inaudible interjections] Hon. Zane J. S. De Silva: It is a damn good point. It is a really good point, because once you took from Dr. Brown . . . he cannot come back to this House and ask for money . . . or anybody else, for that matter. And let me declare my interests. There is a dialysis clinic that opened just a couple of months ago, a dialysis clinic whose fees were cut 30 per cent. You have a black doctor in this country . . . the best nephrologist in this country, opens up a dialysis clinic, gets their fees cut 30 per cent while you have a white nurse who does peritoneal treatment in this country and gets a reduction of 8 per cent. Why, oh why? Maybe someone on that side will get up and tell us why, oh why. But see? The problem with this country is this: if you have a strong black man that stands up, they look to cut him down. And history shows it. And guess what? The current times show it, too. Why cut Dr. Brow n’s fees? Why cut the Bermudian people—the seniors of this country who have come to be comfor table in Brown- Darrell Clinic . . . why cut them off?
The Deputy SpeakerDeputy SpeakerThank you, Member. Any other speakers? The Chair recognises the Honourable Member from constituency 7, Mr. Richards. You have the floor, Mr. Richards. Mr. Sylvan D. Richards, Jr.: Thank you, Mr. Deputy Speaker . I thought this was a budget . . . response to the budget. [ Inaudible interjections] …
Thank you, Member. Any other speakers? The Chair recognises the Honourable Member from constituency 7, Mr. Richards. You have the floor, Mr. Richards. Mr. Sylvan D. Richards, Jr.: Thank you, Mr. Deputy Speaker . I thought this was a budget . . . response to the budget. [ Inaudible interjections] Mr. Sylvan D. Richards, Jr.: This seems to be more like a cheering on section for Dr. Brown. [ Inaudible interjections] Mr. Sylvan D. Richards, Jr.: And I do want to start with this, because I find this place is too partisan. And basically, it sucks, and I hate to be a part of it. But I have to talk to the Honourable Member who just sat down from constituency 29. He mentioned Lahey, and I think he was insinuating that the action that is ongoing against Lahey, that it is . . . I cannot remember the exact words, but basically sa ying it is a waste o f time, so on and so forth, and that the action was started by the OBA Attorney General. And unless that gentleman MP does not read the p apers, it has been continued by the PLP Attorney Gen-eral. So, I will just leave it at that. Now, I am going to get back on point and let us talk about this budget that was put forward by the Progressive Labour Party. Some people listening out there might know that I work in international business. And part of the reason that I got involved in politics in the first place was because back in 2010 I was con-cerned about the direction the country was going in 1108 23 February 2018 Official Hansard Report
Bermuda House of Assembly under the then PLP Government and the affect it was having on international business and jobs leaving this country. So, when the PLP won the last election, and I gave th em kudos at that time, I was very . . . I have been sitting here waiting ever since July, waiting for this PLP Budget to come out because this is going to be a litmus test of the direction the country is going to go in. So, when the budget was laid in the House and I got a chance to take it home and really go over it, I have to give the Premier credit. It is a very balanced, a very forward- thinking budget. And I am happy about that because anytime you have an election there is some uncertainty in the air. T here is a certain level of fear on what is going to happen, what does it mean for me, and this Budget put aside a lot of the fear and concerns that were out there—and I am talking about in the business community. A budget is only good if you stick to it. It has been clearly documented that under the prior admi nistration of the Progressive Labour Party the budgets were basically blown every year. So I will be watching, and we will be watching, to make sure that the Pr ogressive Labour Party adheres to their own budget. And a year from now we will be back in this place and we will have the luxury of history. So, the [first] goal of the Progressive Labour Party in their budget to diversify Bermuda’s economy . . . it is sorely needed. That is nothing different from what the previous Finance Minister Bob Richards was saying. Our economy is too narrow. We are basically a two -and-a-half horse town—international business and tourism —and we need to diversify our economy. So anything that is going to aid that and make that happen, I support wholeheartedly. Another goal that is outlined in the Gover nment’s 2018/19 budget is that we need to grow the business side of Bermuda’s economy. [That is] imperative because if the businesses in Bermuda grow [that] benefits all Ber mudians. So, I support that. And the third [goal], scrap outdated policies in order to achieve these goals. Very noble and it needs to happen in a lot of areas in Bermuda. You know, we are a people who are kind of fearful of change, of doing things a dif ferent way. And the world is evolving and we have to evolve with it. So I support outdating policies that no longer serve the greater good here in Bermuda. Now, we all know there are certain threats that Bermuda is facing. They are the same threats that we faced when we were the Government. They are the same threats that the PLP Government is facing now. I must say that the recent US tax reforms do not seem to be affecting local international business companies. They seem to be adjusting to this new reality and the Bermuda market remains strong— which is a good thing. We still have the headwinds coming from the European Union’s concerns regarding Bermuda’s tax system, and I was pleased to see, I believe it is called, the Tax Reform Commission has been empanelled. It is bipartisan. They are starting work. I support that wholeheartedly. And while I am on that . . . well, I will go to the next point, the Caribbean Financial Action Tax Force assessment of Bermuda’s anti -money laundering and counter terrorism fi nancing regime. Once again, the Member who took his seat just before me from constituency 29 mentioned NAMLC. Unfort unately, he made it seem like, you know, this was something we were not paying attention to. It is ridic ulous for him to even say that. It is ridiculous. We had weekly meetings —weekly meetings —
Hon. Zane J. S. De Silva: Point of order. Mr. Sylvan D. Richards, Jr.: —and the Premier and his whole Cabinet was there.
The Deputy SpeakerDeputy SpeakerWhat is your point of order, Member? POINT OF ORDER [Misleading] Hon. Zane J. S. De Silva: Just for clarification . . . I am sorry, I believe the Member is misleading the House because the information that was given to us as Cabinet Ministers was that they were not …
What is your point of order, Member?
POINT OF ORDER [Misleading]
Hon. Zane J. S. De Silva: Just for clarification . . . I am sorry, I believe the Member is misleading the House because the information that was given to us as Cabinet Ministers was that they were not meeting. The Honourable Member just said that they were meeting weekly. I think we should do a little bit more homework before . . . or retract that, because what we . . . unless somebody in the civil service has been l ying to Cabinet and the Premier of this country.
The Deputy SpeakerDeputy SpeakerCarry on. Mr. Sylvan D. Richards, Jr.: I was there. There is nothing to retract. I was there. I am telling you, it ha ppened . . . that is right, every week. [Inaudible interjections] Mr. Sylvan D. Richards, Jr.: Okay? So, we were meeting. So, the 2017 fiscal performance …
Carry on.
Mr. Sylvan D. Richards, Jr.: I was there. There is nothing to retract. I was there. I am telling you, it ha ppened . . . that is right, every week.
[Inaudible interjections]
Mr. Sylvan D. Richards, Jr.: Okay? So, we were meeting. So, the 2017 fiscal performance of the Government, the figures, the numbers, speak for the mselves. Revenue was up $1.9 million over the original estimates. Operating expenses were $2 million lower than originally budgeted. Revised capital expenditures are projected to be $7 mil lion below budget. The annual deficit will be $15.2 million less than projected which is $62.8 million less than the actual 2016/17 deficit, and net debt will be $2.42 billion— which is $50 million lower than forecasted net debt. The numbers speak for themselves, and no amount of spin can change that. And that was the r esult of hard work and discipline on the part of the Government —the OBA Government.
Bermuda House of Assembly Nobody likes austerity. And it has been said time and time again that in 2012 we inherited an economy th at was in dire, dire straits. And we were given a mandate by the people at that time to do what had to be done to get things back on track. And we did that. And we paid a price at the polls as a result. But I would rather be sitting on this side of the House and have a shored- up Bermuda economy that the current PLP Government can build on and grow, if they maintain fiscal discipline, than be living in a Bermuda that was bankrupt and could have possibly had out-side forces controlling our internal fiscal poli cies. All of the major economic indicators increased in 2017 and this was the result of policies of the OBA. And the America’s Cup was a big part of that. Now, the America’s Cup has been politicised. We have had more than enough discussions in this House on the benefits and the cons and did it really do anything for Bermuda. But it did. The numbers do not lie. The work of the BTA . . . some people here complain about the salaries and bonuses and, you know, begrudge certain individuals what they are making. You know, in the private sector people get paid. And they should not make excuses for getting paid. We pay them to do a job. The BTA was empanelled and put in place to do a job, which was to turn around our failing tourism product. And against all headwi nds and against constant criticism in this place they did it. Record numbers —air arrivals up 10.3 per cent, cruise ship passengers up 5.1 per cent, total visitor arrivals up 7.2 per cent. Total visitor spending up 20.3 per cent. Retail sales up 2.9 per cent. Imports up 17.6 per cent in the first three quarters of the year. New construction projects in the first nine months of 2017 up 517.8 per cent. Balance of payments over the first three quarters of 2017 up $288 million over 2016. These numbers did not happen by accident. It was hard work . . . blood, sweat and tears on the part of all Bermudians to make that happen. We are all on this little rock together. It is just us. And when we have results like this . . . I do not care who the Government is, it is to be celebrated. If the PLP had been the Government when these results happened, I would congratulate them. There is nothing wrong in saying job well done. Nothing wrong with that. You do not lose face. There are other initiatives in the PLP Budget that I support. Opening up Bermuda to global law firms is a good initiative. I support it. Expand the types of banks operating in Bermuda. It is a good initiative. I support it. The former Finance Minister —and I heard it day in and day out —lamented the fact t hat Bermudians could not get loans and could not get access to capital from the banks that we have here in Bermuda. It is a problem. So I am hoping that expanding the banking market in Bermuda will benefit Bermudian entrepreneurs who are trying to start businesses. Revising the height restrictions in the Hami lton economic empowerment zone for residential and mixed -use developments —it is about time we did that. I support it. Relaxing the condo ownership restrictions for development in the Hamilton economi c empowerment zone, I support that. Embracing future technologies, FinTech and blockchain, I support that. And you know, it is interesting . . . I was wal king out of my office yesterday, and one of my co - workers stopped me and said, What is with this stuf f about blockchain? I am interested in it and I feel like I am missing out. What do you know about it? I said, W ell, my knowledge of it is the same as yours . I do not understand it, but I think it is going to be a disruptive technology in the world. It i s going to change how we do business. It may even change how we underwrite insurance here in Bermuda. I do not know. But I think it is good that the Government is looking to get involved, to be in the game. Who knows? It may actually turn into something. I do not know. But I think we have to explore that option. It was also mentioned that Government would reserve 20 per cent of capital spend for companies meeting the employment criteria under new procur ement policy. We had a similar initiative. It was in our Throne Speech. So I am glad to see that the Progres-sive Labour Party has decided to continue with that and hopefully they will put some metrics behind it so that it can be measured. Now, the next one, to revise the 60/40 rule to only require 40 per cent Bermudian ownership, this has been something that has been talked about for a very long time. In fact, one well -known Bermudian entrepreneur, well -established, has been pushing for this for a very long time. I will advise the Premier and the Government to proceed with caution with this. There has been discussion today about the benefits of providing excess to capital for Bermudian entrepreneurs, people who are struggling at the pr esent time under the current 60/40 rule. We have mentioned that banks are not subject to the 60/40 rule, which led to HSBC buying out the Bank of Bermuda. And we all know how that played out. The potential is there for this to go horribly wrong if it is not regulated. And I was thinking about it and I said, for example, there is a chain of barber shops in the US called Supercuts. Let us say Supercuts, some enterprising young Bermuda entrepreneur approached S upercuts and said, I would like to open a chain of S upercuts stores here in Bermuda. You can be 60 per cent owner, I can be 40 per cent owner. Just cut me a cheque. So, Supercuts opens up in Bermuda with the millions and maybe a billion dollars’ worth of capital behind them and they start to compete with our local barbers. What would that look like? That is just an example. The very people that we are trying to help could be hurt if this is not man1110 23 February 2018 Official Hansard Report
Bermuda House of Assembly aged and vetted. So I am looking forward to seeing how this is going to be handled. The 2018/19 Budget estimate projects there is going to be an increase in total expenditure of $25 million from last year’s budgeted figure. And it was mentioned earlier by one of my parliamentary co lleagues, Dr. Gibbons, that the number of civil servants is probably going to increase by about 226 persons. And, you know, it is difficult when you are trying to rein in expenses to manage your annual deficit and your overall debt. And our economy, really . . . [with] the civil service you are hamstrung. You have to reduce employees. You have to reduce bodies. And we did that through attrition. I would advise the Government to be extremely careful about growing the civil service by the figure that I heard earlier. There are other ways to get things done. Maybe reorganise the department —
[Inaudible interjection]
Mr. Sylvan D. Richards, Jr.: It is a balanc ing act. It is a balancing act. It is a balancing act. — All I am sa ying is that you have to be careful about growing the civil service because that is what happened before, and it put Bermuda in jeopardy. I am pleased to hear —
Hon. Zane J. S. De Silva: Point of order, Mr. Deputy Speaker.
The Deputy SpeakerDeputy SpeakerWhat is your point of order, Member? POINT OF ORDER [Misleading] Hon. Zane J. S. De Silva: I think the Honourable Member is misleading the House a little bit, maybe inadvertently, because, you know, when he says it could put the country in jeopardy with regard to the growing of …
What is your point of order, Member?
POINT OF ORDER [Misleading]
Hon. Zane J. S. De Silva: I think the Honourable Member is misleading the House a little bit, maybe inadvertently, because, you know, when he says it could put the country in jeopardy with regard to the growing of the civil service, you have to remember, Honourable Member and Mr. Deputy Speaker, that if we continue not to give the support to the civil ser vants then our fabric, our soc ial fabric which is already showing some very negative impacts, will start to rear its head even more than it is now. So, you know, we have to try to avoid the burnout. We have to try to avoid the burnout on our civil servants and give them the support that they need.
The Deputy SpeakerDeputy SpeakerCarry on, Member. Mr. Sylvan D. Richards, Jr.: That is a fair point. Like I said, I am not disagreeing. I am not di sagreeing with it, Honourable Member . I was a Mini ster. I heard from civil servants who said, We are overworked. We need help. We need …
Carry on, Member.
Mr. Sylvan D. Richards, Jr.: That is a fair point. Like I said, I am not disagreeing. I am not di sagreeing with it, Honourable Member . I was a Mini ster. I heard from civil servants who said, We are overworked. We need help. We need additional vehicles. I helped some of them get vehicles. I am very, very sympathetic to their situation and their plight. I care about Bermudians as do you, Honourable Member. Moving on . . . and also, I was going to make the point that I am glad that the debt ceiling is not going to be raised. That is a good thing. Raising taxes, taxing commercial rents, crac king down on the notional abuse of payroll taxes, a pr ofessional service tax on accounting and law firms, adjusting employee tax rate bands to provide tax reductions to persons e arning less than $96,000 a year . . . all good things. I support these. Eliminate employer portion of the payroll tax for disabled employees. Tax breaks for new entrepreneurs and taxi operators. I support that. I must say, though, that I am a little u nsure, concerned, about increases in cell phone tax and the sugar tax. I understand what we are looking to do but I am afraid that increasing those taxes is going to adversely impact the Bermudians who are in the lower income strata more so than Bermudians who have higher disposable income. That is my only co ncern. It is a bit regressive. Hon. Wayne L. Furbert: Mr. [Deputy] Speaker, those fees can only be passed on if the regulatory body passes on . . . the Minister is quite aware that last year when they increased the . . . I forget which tax it was. It was passed on to the insurance. That should have been stopped. We are going to try to make sure this does not have to take place.
The Deputy SpeakerDeputy SpeakerThank you. Hon. Wayne L. Furbert: So, the insurance right now, when you insure your house there is an extra piece that says charged by the government fee. We are going to try to stop that part that takes place.
The Deputy SpeakerDeputy SpeakerThank you. Carry on. Mr. Sylvan D. Richards, Jr.: Okay, thank you, Mr. Deputy Speaker . So basically, that is all I am going to say at this point. I am going to be watching closely. I do support the majority of the initiatives in the PLP Budget. It is …
Thank you. Carry on. Mr. Sylvan D. Richards, Jr.: Okay, thank you, Mr. Deputy Speaker . So basically, that is all I am going to say at this point. I am going to be watching closely. I do support the majority of the initiatives in the PLP Budget. It is not easy to govern. I am sure every Minister in the Government is finding that out. But I wish them success and, as the Opposition, we will support them when we can and we will hold them to account when we must. Thank you.
The Deputy SpeakerDeputy SpeakerThank you, Honourable Member. Any f urther speakers? The Chair recognises the Member from St. George’s, constituency 1, Mrs. Ming.
Mrs. Renee MingGood evening, Mr. [Deputy] Speaker, and listening audience. Bermuda House of Assembly Mr. [Deputy] Speaker, first of all, I would like to say that it is a pleasure that I can get up here today to be able to stand or rise to my feet, literally, to deli ver the …
Good evening, Mr. [Deputy] Speaker, and listening audience.
Bermuda House of Assembly Mr. [Deputy] Speaker, first of all, I would like to say that it is a pleasure that I can get up here today to be able to stand or rise to my feet, literally, to deli ver the general Budget Debate comments for today. I am a proud and passionate representative of consti tuency 1, St. George’s North. Not that you do not know that, because I take every opportunity I can in this House to make sure that each and every one of you know that. But I think that it is the passion that I have for St. George’s that guides me even in terms of a general Budget Debate because as I was preparing my notes for today, Mr. Deputy Speaker, I began i mmediately to look at what would the initiatives of the Progressive Labour Party Budget Statement look like for St. George’s. And I know that a few of my consti tuents listen all the time, so I just like to keep things in perspective and speak to that for them. One of my first things, though, that I want to mention is the funding that is meant to be available for the Sylvia Richardson Care Facility. For those of you who do not know, that facility was developed under a Progressive Labour Party Government, but it was also as a direct result of the St. George’s —we used to call it the old folks home. And so, the St. George’s people look forward to having somewhere that is near to them where they can visit on a regular basis their senior relatives. So, having the fourth floor open means that there will be more opportunity for that to happen. And so I think that would have been what the design and concept was, back in the day, anyhow, that if you had someone who is a relative that is in need of care, then the facility is close and we can still make sure that our loved ones know that we are there, visit them on a regular basis and continue to support them. So, for me, Mr. Deputy Speaker, I was pleased as a St. Georgian to see that in this Budget Statement. Mr. [Deputy] Speaker, when I think in terms of the funding for our sports clubs . . . and not just funding, as such, but the availability to be able to improve and enhance our sports club, I think of the St. George’s Cricket Club. There are two things I speak about often: I speak about the St. George’s Community Centre and I also, when I can, speak about St. George’s Cricket Club, because these are staples within our community. And I know that the Community Centre is broad- ranging, but St. George’s Cricket Club deals a lot with our youth. Many of our young men, excellent cricketers. Excellent footballers have passed through this. And so what we know and what we have probably learned over the years, Mr. Deputy Speaker, is that we need our community clubs. And if that fell by the wayside over the last couple of years, it is being reinforced now because we know what we need in our communities. So I was pleased to see that there will be some funding for that. Mr. Deputy Speaker, i mprovements to our public schools. But if I take our [Budget Statement] ––and I will from time to time just refer to certain things in the book ––on page 23 we speak of the increased funding, not just our senior schools, but . . . I am sorry, we speak about schools maintenance actually on page 29, and we say that the “The Department of Public Lands and Buildings will concentrate on the refurbishment of the Parliament Building, schools maintenance and major buildings upgrades, office relocations and alterations to Global House. It is env isioned that early intervention, especially in the case of schools’ maintenance, will alleviate problems befor ehand, thus preventing unnecessary and costly emergency measures.” So, Mr. [Deputy] Speaker, within the constit uency of St. George’s North, I have East End Primary which is a public school. I have St. George’s Pr eschool which is a public school. I have St. George’s Preparatory which is an aided school. Nonetheless, all schools within constituency 1. So, once again, I can refer to this PLP Budget Statement and keep contin uing to look for ways that it focuses on my area. When I think about jobs, Mr. Deputy Speaker, I think about jobs not just for Bermudians but for my St. Georgians that I canvas on a regular basis who are screaming for jobs and opportunities, because not everybody wants to work for someone. Some of those people that I talk to have great ideas and they just need that start. And so, our Budget Statement is r eflective of that. Mr. Deputy Speaker, we can ref er to even just on page 5 where it says, “Mr. Speaker, one of the m ajor headwinds in our growth prospects is the level of employment. Although employment numbers are marginally positive, the pace of job growth must i ncrease if we are to have a sustained ec onomic recovery.” So, once again, I can see where this Budget Statement is reflective, again, of the concerns out of my area. Mr. Deputy Speaker, we [see] real tax reduction for Bermudians and, again, that will impact my St. Georgians who are making less than $96,000 a year. So, I just want to . . . those are just some comments for those persons in my area who may be listening and just for Bermudians to think about in terms of what this Progressive Labour Party Budget Statement looks like. Mr. Speaker, many have lauded [this], and think that we have put forth an excellent budget. I think it is a budget that is reflective of balance because when I sat in another place, Mr. Deputy Speaker, I often said that budgets are not just about numbers. They are also about people. And so when we start to only focus on numbers, we forget that those numbers are supported by people. And I think we have gone through a period, Mr. Deputy Speaker, when oftentimes that was forgotten. Mr. [Deputy] Speaker, one of the things t hat I am proudly passionate about as well is education. And when I look at our Budget Statement and what 1112 23 February 2018 Official Hansard Report
Bermuda House of Assembly we said . . . this is our promise to the people. This is what we are looking to do and what we say about education. It was our platform, the first plat form item in 2017, which means that it remains a major focus and a major . . . actually, it is a major concern even in terms of our own Bermudians. But it says, “This year’s investment in education represents a renewed belief in our young people and the men and women responsible for teaching them.” I feel like I need to read that again, Mr. Deputy Speaker, but I will not. “We are investing in the deli very of an education that will equip our citizens with character, critical thinking, and a rounded sense of who they are and of their value to this society. The transformation of Bermuda’s economy begins in the classroom.” There is no other way for me to express the importance of education in this Progressive Labour Party Budget Statement. Mr. [Deputy] Speak er, I just want to . . . b ecause if you are listening then you might want to hear both sides of it. And I am very keen on giving you just that. When we read the education pages of the 2018 Budget Reply Statement, it says, “The education of our children is fundamental to producing decent, pr oductive, positive, and respectful citizens. Education is also fundamental to shaping both locally and globally, a preferred direction for the future of our Island.” So, I do not think that there is any argument that educ ation is extremely important to both sides. But what I would argue is that one side got it quick and one side gets it now. Mr. [Deputy] Speaker, I see these things and I heard a lot of what we are saying around here today of what worked, what did not wor k, but if you allow me to read this, Mr. Deputy Speaker, and this is the —let me make sure I read it correctly —Great Schools for Great Kids 2012. “As part of our education plan, a One Bermuda Alliance Government will: • “Implement a fully integrated technica l curric ulum, starting in the middle schools. • “Expand preschool places to make early education more accessible to all, especially single parents. • “Extend the school day to allow more time for the arts, music, sports, and additional ac ademic assistance for the students who need it. • “Empower our teachers by giving them the support and resources they need. • “Expand the options for Bermudian students by transitioning Bermuda College into a four - year institution. • “Provide additional support to GED programmes . • “Follow through on the Hopkins Report recommendations to ensure real education r eform.” Now, the best way for you to decide if this actually happened is [to ask], What on here actually happened? Seven points. Mr. [Deputy] Speaker, you cannot just say “great schools for great kids.” And that is funny, too. Great schools for great kids. Lord knows the issues we have had with our schools over the last two years. When you want to stand up and say these, Mr. [Deputy] Speaker, sometimes . . . and I am one who l ikes to do a little bit of research from time to time. This speaks volumes. I have a daughter that goes to public school. And I, myself, come out of public schools. So, when I see these things here and I read all of this I have to take that with a grain of salt. But I can appreciate . . . and I am going to say that because I do not want to have a really knock -you-down- type speech, because I think you have done that yourselves here. I can appreciate that you now understand the importance of education and what it means. And maybe 2017 was just one of those years where some of the things that happened forced you. But, Mr. [Deputy] Speaker, I will be grateful. I will take that like that. Mr. Deputy Speaker, another topic that I am going to talk about . . . an d I chose three topics here today, and that is because I based it on what people share with me and what comes more topical, and that would be immigration. Mr. Deputy Speaker, I almost feel at times that this is one of those topics that we cannot even talk about in the best of spaces. I think the last four and a half years took us to a space in terms of the most divisive topic —immigration. And that crosses racial lines, national lines, whatever. And, so, when I look here at what the PLP is actually proposing in its Budget Statement with regard to immigration . . . and I say this so that we can tout as much as we want about all the other things that we did wonderfully under the OBA, you did not leave us in a good space with regard to immigration. And I really hope that we look back on this and learn from it because we took something that we should be able to at least talk sensibly about and we messed it all up. Bermudians got so immediately protective as soon as you bring up immigration because we never consul ted, we never sought their feedback or anything. Mr. [Deputy] Speaker, I am just reading from the Progressive Labour Party Budget Statement, it says, “The Ministry will focus on providing more services electronically to customers, including the intr oduction of online applications and online status updates of planning and immigration applications. The Department of Immigration will be fully funded to ensure that Bermuda’s immigration laws and policies are enforced; while the Bipartisan Immigration Committee, will recommend reforms to the Bermuda Immigration and Protection Act and other [immigration] policies.” One of the ways that you do that, Mr. Deputy Speaker, is through consultation . . . and inclusion
Bermuda House of Assembly because our people want to know that what they thi nk and what they feel matters. Mr. Deputy Speaker, the PLP Budget I believe addresses some of those things to be able to make immigration somewhat of a topic we can have at least decent discussions on. Mr. [Deputy] Speaker, and I want to make sure I refer to it so that people can know exactly what we are talking about here. We talk a lot about consultation. And I think that as we as a Government grow, the people are growing as well. You will find that that is what people want. They want to be consulted. They do not want you to come and tell them exactly this is what is going to happen. And I think that the consult ative approach that the Progressive Labour Party has taken thus far has been received positively in our community. I do note though on the One Bermuda All iance Budget Reply it says, “The most concrete commitment we have is a process of ‘consulting.’” Well, I could look at this in so many ways in terms of consul ting. Mr. [Deputy] Speaker, did the OBA learn consultation now? Because I remember w hen I sat in another place I asked many times for one public consultation on the St. George’s hotel development. Let me tell you how many I got. Zero, from the Government. Okay? Consultation is important. And then I note somewhere else where it almost seem s like it is a little slack comment whereby we say that —
[Hon. Dennis P. Lister, Jr., Speaker, in the Chair]
Hon. Jeanne J. Atherden: Point of order, Mr. Speaker.
Mrs. Renee MingI am not yielding, Mr. Speaker . I am going to be completed soon. [Inaudible interjections]
The SpeakerThe SpeakerI will take your point of order. POINT OF ORDER [Misleading] Hon. Jeanne J. Atherden: I believe the Member is misleading the House. I actually attended at least one public consultation. I do not want to go into any more, but at least I know I attended one.
The SpeakerThe SpeakerThank you. Member, you can continue.
Mrs. Renee MingSure. Mr. Speaker, I just want to say that I would attend anything that was in St. George’s as long as I am able and willing and that one consultatio n was held by the developer, not by the Government. Thank you. [Inaudible interjections]
Mrs. Patricia J. Gordon -PamplinPoint of order, Mr. Speaker .
The SpeakerThe SpeakerI will take the point of order. POINT OF ORDER [Misleading]
Mrs. Patricia J. Gordon -PamplinThe Honourable Member is misleading the House. The consultation that was held was held by the development in conjunction with the Government — [Inaudible interjections]
Mrs. Patricia J. Gordon -Pamplin—in conjunction with the Government. [Inaudible interjections]
Mrs. Renee MingMr. Speaker, I have more i mportant things to go on [to]. I know the deal so I am just going to proceed here. Now, we have talked about consultation and we get positive feedback from the now Opposition with regard to consultation, and then at the next page, page …
Mr. Speaker, I have more i mportant things to go on [to]. I know the deal so I am just going to proceed here. Now, we have talked about consultation and we get positive feedback from the now Opposition with regard to consultation, and then at the next page, page 20 of t he Reply, you say, “Though it does appear that we will have another ‘consultation’ or strike up another ‘committee’ or ‘plan to have a plan.’” So in one breath you are telling us that we are doing a good job and that is one of the great things that you li ked about it, but in the next breath you are sort of sniding us for taking the approach that we take. But my Members know that what we are doing is what we were tasked to do. Mr. Speaker, personally, I was a bit disappointed today with the Reply. And the reason I say that is because I would have expected to come and hear a more collaborative, harmonious, maybe more embracing than . . . more than what I heard was like attacking. And so, like I said, Mr. Speaker, I do not . . . you know, your reality is your reality. And if our people do not see and feel, or actually receive any of what the output was —the $330 million and things like that—then we have to ask ourselves, have we actually achieved what it is that we need to achieve? 1114 23 February 2018 Official Hansard Report
Bermuda House of Assembly Mr. Speaker, what you have here—and I think that my Leader said it —may not always be perfect, but it creates the balance, Mr. Speaker, and it is the balance that we need right now. Our work here is cut out for us. I do not dispute that. And I have never been one to say that everythi ng that was done by the former administration was bad. Which is why I said I was very disappointed [to hear] such an attacking r eply today because we do have to move forward. It is my opinion; we do have to move forward whether we sit on one side or the ot her. And there has to be a collaborative approach to some things —we sit on committees together, we work forward towards the exact same result. So, Mr. Speaker, I heard and I read the word “failed” a lot . . . we failed to do this, we failed to do that. This Budget is a projection on what will come. So, I do not even know how we could have failed on what we have not yet delivered. This is us telling you what will come. [Inaudible interjection]
Mrs. Renee MingSo, I do . . . I was . . . I believe this here. Mr. Speaker, we will stick to our guns. We will do what it is we were elected to do, with 24 seats. And we will continue to put Bermudians first and listen to Bermudians. Thank …
The SpeakerThe SpeakerThank you, Honourable Member. Does any other Honourable Member wish to speak? I recognise the Honourable Member from constituency 23. Honourable Member GordonPamplin, you have the floor.
Mrs. Patricia J. Gordon -PamplinThank you, Mr. Speaker, and good afternoon, colleagues and liste ning public. Mr. Speaker, I am pleased to have the opportunity to contribute to the debate this afternoon with respect to the Budget and the official response from the Opposition thereto. Let me say, Mr. Speaker, that many Members, as …
Thank you, Mr. Speaker, and good afternoon, colleagues and liste ning public. Mr. Speaker, I am pleased to have the opportunity to contribute to the debate this afternoon with respect to the Budget and the official response from the Opposition thereto. Let me say, Mr. Speaker, that many Members, as I have heard, not j ust by their formal presentations, but also by their interpolations, have conti nued to make the statement, What have you done over the last five years? What did you do during your A dministration? Mr. Speaker, let me just say that on page 7 of the Premier’ s Budget, of the Finance Minister’s Bud get Statement, he indicated that the policies of Government must benefit the many, not the few. And I am very pleased to see that this is some kind of newfound commitment, which has replaced the historic —
[Inaudible interjection s] Mrs. Patricia J. Gordon -Pamplin: —which has r eplaced the historic experience of the previous PLP Government during which the beneficiaries of many of the contracts meted out can be distilled to a few pla yers. Because this is how we got to where we are. And I am just going to highlight what has happened from the last five years and how we got to where we are. So, we are suggesting for one second that somehow the activities over the last four and a half years of the OBA Administration were t he only things that caused Bermuda to be where it is. But let us go back and tell you what we have done over the last five years, and considering how we got there. Think about the Berkeley Institute and the cost. Think about Heritage Wharf. Think about the $7 million of union asset holdings. Think about Perryville and the man with the golden paintbrush and the $425 per square foot when the going rate was $230. Think about the Court Building. Think about the Grand A tlantic and the cost of that. Think about the Stonington giveaway. Think about Kuron. Think about GlobalHue. Think about TCD. And each of those projects, among others, Mr. Speaker, helped to dig a deeper hole in the economy and exacerbated the debt situation. So, Members, some of whom are here now , were not here at the time. So I forgive them if they do not know the details respecting the years that got us to the point that the OBA Government had to take over. So let me just say that when we talk about what have we done over the last five years , it has been almost like standing on the Railway Trail trying, Mr. Speaker, to stop a train, to stop a locomotive with our bare hands , because that is what we inherited as a Government to try to ameliorate for the people of Bermuda. One cannot make investments if there is no funding available. So, let me just go on to one of the things that had been mentioned significantly this afternoon, and that is the $25 million that has now been reinstated to the hospital, in terms of their funding— in terms of their funding. And let me just say that, when an organis ation which is an extended part of government . . . and unfortunately, what we do not do is consolidate government accounts. So, as an accountant, if you have consolidated, you would not necessarily notice the differential when it comes to the actual financing. But when you have a quanqo, effectively, operating and they let you know that they have an excess of $100 million, of which they wanted to invest $50 million in a government -issued bond, and at that point the F inance Minister said, You guys have $100 million. You want to invest $50. They were actually allocated $25 million. And they complained because they did not get the $50 million allocation. Well, the Finance Minister at the time suggested that, If you have that degree . . .
[Inaudible interjection]
Bermuda House of Assembly Mrs. Patricia J. Gordon -Pamplin: That is the past; I agree. But it is the past that got us to where we are. Mr. Speaker, if the $50 million was going to be invested long term because it was not require d imm ediately, where would be the sensibility in a gover nment borrowing on the open market at whatever rate to make sure that we continued to fund an organis ation that already had money stashed away? We never suggested for a second that they did not need i t. But let me also say that there were times when that institution did not consider the impact of some of their management policies that would have put them in the financial positions that they were in. We inherited . . . I was the Health Minister, Mr. Speaker. Very shortly after coming into that position, I was met by members of the hospital to indicate that they did not have the money and the wherewithal to be able to keep the Lamb Foggo clinic open. And we had to make some very tough decisions and balance, notwithstanding the criticism and the marches that we had respecting thereto. It was my belief that you are going to not open a facility, keep a facility open, that is going to give substandard treatment to people. So if you are going to tell me that y ou do not have enough money to be able to run it, then I am going to support your decision that it must be closed down. Because I believe Mem-bers opposite would want to ensure that our people are well taken care of. And you do not want somebody going to a facility that is only being partially manned, which would help to endanger their health. But, during that period of time, the period prior to our Administration, and under the previous Gov-ernment, I believe that this particular institution perhaps used the Government and the guarantees of funds coming to them almost as a cash cow. And this is a position that the previous PLP Government found itself in and we found ourselves in. Because, remember, at that time they were paying $600,000 per year to the CEO a t the time. Remember they were paying $1 million -plus to some of the specialists, doctors, that they had whom they had hired on staff. Remember they were paying significant bonuses to some of their members, to some of their workers —situations which do not normally obtain in the public sector. So, this is one of the things that has helped to get us into that situation, to be able to say to the hospital that we could not give you the money that you were asking for at that time. We were going to cut you out s hort by the $25 million, with the idea that it would be reinstated at some point in time. It is very interes ting that Members opposite do not wish to hear about history.
Mrs. Patricia J. Gordon -PamplinBut we have heard all day about the historic things the United Bermuda Party —not just from way back when, but from the OBA and its governance, and the things that were done under the auspices of the OBA.
An Hon. Member An Hon. MemberHistory as you see it.
Mrs. Patricia J. Gordon -PamplinLet me just say — and the Member says history as I see it. Well, let me just say one thing, Mr. Speaker. That with the situation with respect to America’s Cup, we hear, Oh! Don’t talk about America’s Cup again! But you know what strikes me as being really …
Let me just say — and the Member says history as I see it. Well, let me just say one thing, Mr. Speaker. That with the situation with respect to America’s Cup, we hear, Oh! Don’t talk about America’s Cup again! But you know what strikes me as being really interesting? We heard a Member opposite indicate that . . . what was the comment that the Honourable Member made? If I can find it. It was a boating excursion —a boating excursion! Now, if I asked Members opposite to indicate honestly how they or their family members were able to benefit from that boating excursion, would they thereby still stand on the hypocrisy of the comments that they have made today? They would not, because they could not. If they are honest, they would say, Yes, it was an opportunity for me to have a driving contract. It was an opportunity for my family member to gain some level of the revenues that were going, that were on offer by the various businesses, that were being offered to people to say, ‘ Take adva ntage of the opportunity. ’ I remember speaking to a Member opposite when I heard that he was working there, and it was almost as though the individual was almost embarrassed to say, Yes. I said, Don’t be embarrassed! Hold your head high, because if I were not working in a full- time job, I would be there trying to take advantage. Because when opportunities are being made available, what you do not do is to say that, Because we didn’t introduce it, therefore, we’re not going to take advantage of it. There ar e many people who had significant benefit. And I am particularly pleased, Mr. Speaker, that this was able to happen. Because under the OBA Administration, we were not so churlish as to say that we are only going to ensure that people who support us were going to be able to benefit from the contracts that were available. It was open to whomever. There was Danielle Riviera from the BDA [Business Development Agency] and working with the BDA, made it a point to ensure that she had town hall meetings, she had all kinds of outreach to make sure that people were aware of the types of opportunities, some of which they may not even have thought of, to say that these are the things that will come as opportunities for that particular event. And therefore, please take advantage of it, because we did not want to try to put on an event that was substandard. So we wanted to ensure that anybody who had any sort of ability to go into a private enterprise, even if it were for a short 1116 23 February 2018 Official Hansard Report
Bermuda House of Assembly period of time . . . Mr. Speaker, give me the opportun ity to work for six months or a year and make myself $100,000 or $200,000, or to not work at all because it is not going to be long term? It is a no- brainer as to how one would respond. Mr. Speaker, that same Honourable Member indicated that F ools and children should not see unfi nished work, as he said his grandmother or grandfather told him.
An Hon. Member An Hon. MemberGrandfather!
Mrs. Patricia J. Gordon -PamplinHis grandfather told him. Well, my father told me that He who knows not and knows not that he knows not is a fool. Avoid him. So, let me just say that this is the situation that we have. Because when people stand and speak and criticise, and then they …
His grandfather told him. Well, my father told me that He who knows not and knows not that he knows not is a fool. Avoid him. So, let me just say that this is the situation that we have. Because when people stand and speak and criticise, and then they do not want to hear it because it is coming back at them, you know . . . I think that, going forward, we should be able to say, what are the benefits that will enure to the people of Bermuda based on the financial decisions that have been made by the previous -previous PLP —by the previous PLP Government, by the OBA Government. And I say previous -previous because, start from 1998, 2003, 2007, all of those prior PLP Governments. The 2012 OBA Government, and then, ultimately now that we have come back full circle to the present PLP Government. We wish the PLP Government well. But what we will not do i s to sit back — [Inaudible interjections ]
Mrs. Patricia J. Gordon -PamplinYou cannot tell me what I wish for you. You cannot tell me what I wish for you. I can tell you what I wish for you. And it is not for you to tell me what I wish for you. Mr. Speaker, and I say that in all honesty. …
You cannot tell me what I wish for you. You cannot tell me what I wish for you. I can tell you what I wish for you. And it is not for you to tell me what I wish for you. Mr. Speaker, and I say that in all honesty. B ecause I remember hearing the Honourable Member from constituency 29, at one point, standing over here and saying, If this country is successful with the pol icies of your Government (then speaking to the OBA Government) , I would stay here forever. And that is the way that I feel, Mr. Speaker. I want, more than anything else, for the country to be successful. Now, we have heard comments that we did not do anything in terms of capital acquisitions for things like buses and garbage trucks. Mr. Speaker, you might recall that the garbage trucks that were in the fleet, there were some brand- new ones that were bought around 2010. And I believe that the Honour able Minister now, who sits back in Cabinet —and congratulations, Honourable Minister —ordered those trucks, having gone to scout them out with technical officers, and landed on specific types of trucks, two years before the OBA took government. Who would anticipate that, in a two- year per iod of time, trucks that were brand new would require to be replaced? They were substandard. The hydraulics did not work. There were significant challenges. But when you are left with significant deficits, how do you then also include the budgeting for new capital acquisition for something t hat had not even reached a five-year span? Garbage trucks, the ones that were online prior to the purchase of the new ones, which were far smaller, caused a lot more running bac kwards and forwards in order to be able to collect and then go back and empty, and then go back and collect and go back and empty —
Hon. Michael A. Weeks: Mr. Speaker, point of order, please.
The SpeakerThe SpeakerWe will take a point of order from the— Hon. Michael A. Weeks: Actually, it is more a point of information.
The SpeakerThe SpeakerA poin t of information? Hon. Michael A. Weeks: Yes. POINT OF INFORMATION Hon. Michael A. Weeks: When those trucks were ordered, right, the deal was that our workers here would have proper training. We ended up losing the election. And apparently, they did n ot get the proper training …
The SpeakerThe SpeakerThank you. You may continue.
Mrs. Patricia J. Gordon -PamplinMr. Speaker, those trucks were bought significantly [before] the OBA won the Government in 2012. Those truck s were bought in 2010. At the end of 2010 or 2011 is when those trucks were purchased. When you purchase trucks— Hon. Walter H. Roban: Point of order, Mr. Speaker.
The SpeakerThe SpeakerPoint of order. POINT OF ORDER [Misleading] Hon. Walter H. Roban: Okay. The Honourable Member is misleading the House. Those trucks were l icensed while I was Transport Minister sometime just after June of 2012.
Mrs. Patricia J. Gordon -PamplinOkay. Hon. Walter H. Roban: So they were on the roads just mere months before the elections of December. Bermuda House of Assembly So the Honourable Minister is correct, and the Honourable Member is wrong.
Mrs. Patricia J. Gordon -PamplinI accept it. I accept my mistake.
Mrs. Patricia J. Gordon -PamplinThank you, Mr. Speaker, and I thank the Honourable Member for the interjection. Because I do not ever wish to mislead. [Laughter]
Mrs. Patricia J. Gordon -PamplinBut if somebody purchased trucks, if somebody purchased trucks in June of 2012, and you are telling me that by December of 2012 they did not know how to drive them, they did not know how to operate them, they did not know the mechanics of them, then somebody fell …
But if somebody purchased trucks, if somebody purchased trucks in June of 2012, and you are telling me that by December of 2012 they did not know how to drive them, they did not know how to operate them, they did not know the mechanics of them, then somebody fell down on the job is all I can suggest. So I think that the Honour-able Member would have been better to have kept his mouth closed on that one.
Hon. Michael A. Weeks: Mr. Speaker, it is a point of order.
POINT OF ORDER
Hon. Michael A. Weeks: I never once said that the people did not know how to drive. Drivers know how to drive. But the mechanics needed special training in those trucks. And also, Mr. Speaker, while I am on my feet, my technical people are the ones who went and looked at the trucks for purchase. I am not an expert in picking out sanitation trucks.
Mrs. Patricia J. Gord on-PamplinAnd I agree with him 100 per cent. But it is very interesting that when it is convenient, you can blame your technical people. But when it is not convenient, you can say, Oh, you all cannot talk about your technical people. So, all I can say is— Hon. Michael …
And I agree with him 100 per cent. But it is very interesting that when it is convenient, you can blame your technical people. But when it is not convenient, you can say, Oh, you all cannot talk about your technical people. So, all I can say is—
Hon. Michael A. Weeks: Mr. Speaker. Mr. Speaker. Mr. Speaker, the Honourable Member is imputing i mproper motives. I never once blamed our technical people. I have a lot of respect for them, and they do the best job that they can for the Island of Berm uda Thank you.
The SpeakerThe SpeakerThank you. Continue on, Member.
Mrs. Patricia J. Gordon -PamplinThank you, Mr. Speaker. Mr. Speaker, and I have no doubt —I have no doubt that they were well intentioned. But I believe that they were misguided in terms of what the ultimate choice was. I take the Minister’s point that he is not an expert in the acquisition of …
Thank you, Mr. Speaker. Mr. Speaker, and I have no doubt —I have no doubt that they were well intentioned. But I believe that they were misguided in terms of what the ultimate choice was. I take the Minister’s point that he is not an expert in the acquisition of sanitation trucks. So, ther efore, it follows that he would expect to have the expertise of the technical officers in order to advise what they would ha ve recommended. However, with those recommendations, the things did not work. So, as I said, the money was expended in order to purchase those trucks. Nobody would have anticipated that within —if it was 2012, that is even worse yet. Because nobody would have anti cipated that there would be the necessity to make budget money available for replacement trucks for something that was, for all intents and purposes, brand new. That is my point. And I believe that the Honourable Member would acknowledge that. So, when they recognised that . . . it is okay to say, We relied on information that we had. It did not work out. But do not then turn and say that we did not provide proper trucks, and therefore, People can now only have once- a-week trash collectio n because you all did not do your job. I think that is not just misleading; it is beyond hypocritical. So, let me just pass on, because I hear some of the information that is coming from Members oppo-site, who really kind of . . . some of the comments that are made, there is really just a passing acquaintance with facts. But I think that it is important for us to look at how the positive development that continued under our Administration continued to benefit the people of Bermuda. So, we did have the projects that w ere r eferred to specifically in the Budget response, such as the building of the Loren, the continued investment. We did not say the “ initial, ” we said the “ continued investment. ” That recognised that the inves tment in the Hamilton Princess Hotel started under the prior Administration, and we carried it on. You see, that is the one thing that we are willing to do on this side. We are willing to say that, when something has started and it is continued, we will give you the credit because you did start some of that. But we made sure that we carried it through to its ultimate conclusion to ensure that it was continuous for the benefit of the people of Bermuda and for the benefit of the jobs that they provided. So we had the building of the AC Village and the building of that, Mr. Speaker, notwithstanding that some of those jobs were short term, created signif icant buzz and significant money in several pockets for many people, because they had an opportunity that they might otherwise not have had. So, I do not apologise for that. I do not apologise for that. I do not see anything that the present Go vernment now has, but it is still early days. They do not have a major project that would replace something of the magnitude of that particular project and the $330 million that was put into the economy. 1118 23 February 2018 Official Hansard Report
Bermuda House of Assembly Here is also what is very interesting, Mr. Speaker when I speak about the benefit to the eco nomy. I had the occasion very recently to be in a group, in a meeting with Members opposite. And when it was mentioned that we had not had an official tabling of the AC report, which, you know, the Government, for whatever reason, elected not to do . . . we did have a debate in the House of Assembly, and therefore we were able to make reference to it. But an official t abling had not happened. When I heard that there was $77 million, and the Government should never have paid $77 million for the America’s Cup . . . and when I made mention about the benefit into the economy that arose ther efrom, that it was done from an independent source, the almost unanimous in- unison response from two members of the team basically said, Oh, they were told what to say, suggesting somehow that PwC, as an internationally recognised and respected accounting firm, could somehow take instruction from an OBA Government as to what to put in their report. It was interesting to have heard that, because the other people, the foreign people who were in that meeting, had the opportunity to speak to me after the fact and say, Are these people for real? And, you see, these are the kinds of things that when we open our mouths and say things that do not make common sense, we have to consider that people take your words seriously. You know, I tried to clean it up as much as I possibly could, because I am looking to try to make things as well as we can to the public and to the outside world as to what we do in Bermuda, that we know what we are doing here. But those are the kinds of things that we had to deal with. But, what do we see in this Budget? We have seen t hings like the solar panel rebate for low income seniors to lessen their electricity bill. And I heard the Honourable Member from constituency 4 make mention of some of her constituents who have invested in solar panels, and therefore, the solar rebate for low income seniors will assist them. I am not sure whether there is going to be some change in the programme, but it was my understanding that the rebate was to help to ameliorate the cost to people who had put out that capital outlay to purchase the solar panels in the first instance. So, if the Honourable Member has a constit uent who has solar panels already, then she is already benefiting from the cost of lower electricity bills if she is able to use the electricity from the solar panels and not electr icity that is coming from the grid. So I am not sure that I quite understood the point that the Honourable Member was making, unless she was speaking to the issue of net metering, which is a different issue than what the solar panel rebate system provided. It is interesting. I had a call last week, on Saturday or Sunday, after the Budget was delivered, as king—a solicitation call asking whether I was interested in purchasing solar panels. I thought, Well, I know I’m a senior. I know I’m a senior. But I thought, you know, People and entrepreneurs will jump on an opportunity as quickly as they can. And I do not fault them for doing that. But these are the kinds of things that we want to ensure that there is not any misunderstanding on behalf of our seniors. If they are being offered the opportunity to purchase solar panels, if they already have a meagre level of income, we need to make sure that they are not being exploited. We need to make sure that we do not exploit our seniors. That is critical; it is import ant. We heard about, in the Budget Statement, indicating that international law firms will be welcomed. Well, I certainly know from the time that I was a Minister I had meetings with both Harneys and Walkers, who are international law firms, which a lready were well established. So, whether the Honourable Finance Minister has indicated that he is going to broaden that, I can understand and I can accept that. But we are talking about saying that we are going to encourage—
Hon. E. David Burt: Point of order , Mr. Speaker.
The SpeakerThe SpeakerState your point of order. POINT OF ORDER [Misleading] Hon. E. David Burt: Thank you very much, Mr. Speaker. Mr. Speaker, my point of order is the Honourable former Opposition Leader is misleading the House. The fact that she does not know that the foreign law firms are not allowed …
State your point of order.
POINT OF ORDER [Misleading] Hon. E. David Burt: Thank you very much, Mr. Speaker. Mr. Speaker, my point of order is the Honourable former Opposition Leader is misleading the House. The fact that she does not know that the foreign law firms are not allowed to operate in Bermuda shows that she is not paying attention. But to say that they were going to expand it is not the truth. They are not currently allowed to operate, under rulings, under the Supreme Court.
Mrs. Patricia J. Gordon -PamplinWell, I do know that, as I said, when I was the Minister I had meetings with Walkers and Harneys, who are international law firms. And we had meeti ngs with them, and they spoke about their operations, their ability to operate, their ability to . . . and this …
The SpeakerThe SpeakerYou have got about a minute left, act ually.
Mrs. Patricia J. Gordon -PamplinThank you very much. Well, let me just move on to passports. And what I would have hoped to have heard from the Mi nBermuda House of Assembly ister in terms of all of the things that were happening in immigration, I would have hoped that we would have been …
Thank you very much. Well, let me just move on to passports. And what I would have hoped to have heard from the Mi nBermuda House of Assembly ister in terms of all of the things that were happening in immigration, I would have hoped that we would have been able to hear what the chal lenge with the passports, how the challenge with the passports is being addressed. I did speak to the Minister as an aside. I did speak to the Minister as an aside, but it was not included. He indicated that he probably did not need any funding to do it. B ut I think it is important for the people of Bermuda to understand that, if the Government is planning to do something that is going to help to ease their travel restrictions that are now being placed on them, he needs to . . . I am finished. You do not ha ve to say it. You can have it on your turn. But I just would like for the Minister to let people know that it is being looked at aggressively and that there is a solution that is going to be found. Thank you, Mr. Speaker.
The SpeakerThe SpeakerIt is a good point to end on. Thank you for your contribution, Member. I see two other, three other Members standing. Let me remind Members that we are past that point where now all speeches are limited to 20 minutes. So, from now on, every Member that is recognised— …
It is a good point to end on. Thank you for your contribution, Member. I see two other, three other Members standing. Let me remind Members that we are past that point where now all speeches are limited to 20 minutes. So, from now on, every Member that is recognised— 20 minutes. The Deputy Speaker, it looks like people are yielding to you. Your colleagues are yielding to you, Deputy Speaker.
Hon. Derrick V. Burgess, Sr.: Thank you. They are so kind and considerate.
The SpeakerThe SpeakerThey are so kind and considerate. Hon. Derr ick V. Burgess, Sr.: I guess they are considering my young age. I am so happy. Mr. Speaker, let me start off with a verse from the Bible, in Ecclesiastes. It says, “Whatever you do, do well.” And I must say, Mr. …
They are so kind and considerate.
Hon. Derr ick V. Burgess, Sr.: I guess they are considering my young age. I am so happy. Mr. Speaker, let me start off with a verse from the Bible, in Ecclesiastes. It says, “Whatever you do, do well.” And I must say, Mr. Speaker, the Premier of this country, who i s also the Finance Minister, has done a sterling job, with his team, in putting this —
The SpeakerThe SpeakerNow I know why the Bible was open when I came back, see? [Laughter] Hon. Derrick V. Burgess, Sr.: Yes. In putting this Budget together, Mr. Speaker, he has done a great job. He had not forgotten the people who fought on the streets before he was even born. And, …
Now I know why the Bible was open when I came back, see?
[Laughter]
Hon. Derrick V. Burgess, Sr.: Yes. In putting this Budget together, Mr. Speaker, he has done a great job. He had not forgotten the people who fought on the streets before he was even born. And, Mr. Speaker, if you do not mind, I would like to read from page 31 of our Budget Statement. And he writes, “In the name of those who have always had to shout to be heard; on behalf of those who have fought for basic rights like health care, free education, maternity leave and vacation pay; in honour of those who have made their contrib u-tion, whose marching days are now behind them, but whose hearts remain on fire for social and economic justice . . .” Mr. Speaker, this is probably the only time I can remember that we have had a Finance Minister who has not forgotten those people who are respons ible for putting him and folks like me in the position t hat we are in. Because they had a battle to fight, and they fought it very well. And it is time that they rest, even though they have still got the fire in them. But they are there, willing to come out when called upon to carry on the fight. And so, I than k the Premier for recogni sing those people, because many times they are forgotten, Mr. Speaker. Mr. Speaker, let me just talk a little about the 60/40 [rule]. There seems to be misunderstanding of the word that the Premier has put in this Budget doc-ument. He never said he was going to open up the floodgates and just let it go 60/40. If I can just take an excerpt from this book, he says, “the Government will consult and strike the right balance to ensure that the revision of this rule has the intended conseq uence of providing more opportunities for Bermudians to become wealth- generating owners and not just emplo yees.” Mr. Speaker, the Premier knows, and we all know, it is difficult, it is going to be a difficult one, because no matter what opportunities were available before, certain people in this country were never able to get that, regardless. And what the Premier is trying to do, and the Government, is trying to strike the right balance. And if that 60/40 is relaxed, then the people who never had that opportunity will certainly get some of that opportunity. So, please, the general public, do not be alarmed by what you hear from the Opposition. And, Mr. Speaker, in relaxing the 60/40, we will have to touch on some immigration issues there. Because we may hav e to let some people come in this country and get resident certificates because they are bringing their money with them, as most countries would want people with money to invest and friends to invest who come into their country. Bermuda is only 20 square miles. We do not have much land to develop for even major development, Mr. Speaker. And, Mr. Speaker, let me talk a little bit of the history about hotels. Mr. Speaker, you have been around here a long time. You remember in 1978 that the Government then, t he UBP, now the OBA, dives ted the investment in hotels. In fact, the Premier at that time and Finance Minister said, The future of this country will no longer rely on tourism, but on international business, the way of the future. That is what they said. An d this was over the objection of Sir Jim, Sir Jim Woolridge. Because he fought them. They did everything they could to Jim Woolridge. They would not knight him, but I have knighted him. And because he was passionate about tourism, he knew the i mportance of tourism to this country. But they took 1120 23 February 2018 Official Hansard Report
Bermuda House of Assembly money from the tourism budget, and now they want to blame the PLP. In fact, Ritz -Carlton in 1984 came, plans all approved—$400 million, Mr. Speaker. Just imagine what that $400 million would be valued at today —over $1 billion. Would any country deny a six -star brand like the Ritz -Carlton? They stopped that. The OBA/UBP stopped that, and what they have now over there is gas station. Mr. Speaker, there were about 400 jobs over there. Now there is a gas station that has probably got 10 jobs. Do you think that was pr udent of them? Then they are trying to put on us, and then they say they have got the largest number since 1965. Mr. Speaker, let me break that down. B ecause what they are trying to make you think is that they have done very well. And I am glad we got 650,000- some [visitors]. But they have got to understand that a lot of that was the brainchild of Dr. Ewart Brown , because most of those arrivals were cruise ships.
Some Hon. Members Some Hon. MembersThat is right. Hon. Derrick V. Burgess, Sr.: Because, Mr. Speaker, when we talk about —because, really, when we talk about tourism in Bermuda, we go after the bed nights in the hotels. That is where the money is spent. And, Mr. Speaker, you cannot compare 2017 to 1980 or …
That is right.
Hon. Derrick V. Burgess, Sr.: Because, Mr. Speaker, when we talk about —because, really, when we talk about tourism in Bermuda, we go after the bed nights in the hotels. That is where the money is spent. And, Mr. Speaker, you cannot compare 2017 to 1980 or 1965, because then we had 10,000 beds; now we have got 5,000 beds. So what they should break it down on is the occupancy of the hotels, the number of beds, to see what the arrivals were. Because not many of those people . . . not all of them stayed in hotels. There wer e no records there. Because, Mr. Speaker, in June and July, you had hotel layoffs. Oh, yes, there were. Grant Gibbons is saying no, but there were layoffs in the hotel industry. How would I know, Mr. Speaker? How would I know? How would I know? I will let the Opposition try to figure that one out. Mr. Speaker, so there were layoffs. And, you know, they replied to the Budget, and they never thanked the workers of this country. They really do not understand, they really do not remember that the hotel worker s took a four -year wage freeze! The lowest - paid workers in this country took it so we could survive in the hotel industry, try to keep their jobs. And, Mr. Speaker, even though they took a four -year freeze, they have not made up for that, you know. It is almost like the government workers. The government wor kers took a 4.5 per cent decrease in pay and saved a considerable amount of money for the government. No thanks were given to them. Hospitals workers took a year freeze. No thanks were given to them. But, you take the Tourism Authority operating on government money —while our workers were taking freezes, four -year freezes, and government workers had not gotten an increase for six years —and they were giving themselves bonuses. Do you think that is right?
Some Hon. Members Some Hon. MembersNo! Hon. Derrick V. Burgess, Sr.: Nothing is right about that, Mr. Speaker. And, Mr. Speaker, you know, the workers of this country have contributed, I would say, in excess of $200 million during the reign of the OBA. They say, Look h ere. He’s running by us some figures, …
No!
Hon. Derrick V. Burgess, Sr.: Nothing is right about that, Mr. Speaker. And, Mr. Speaker, you know, the workers of this country have contributed, I would say, in excess of $200 million during the reign of the OBA. They say, Look h ere. He’s running by us some figures, he doesn’t know what he’s talking about. Let me tell you something, Mr. Speaker. Let me break it down. (Let me get some water first.)
[Pause]
Hon. Derrick V. Burgess, Sr.: Thank you, Mr. Speaker. Mr. Speaker, in their first Budget as Gover nment, the 2014/15 Budget (it would be the second, actually), they budgeted for 5,448 jobs. Guess how many they hired? They hired 5,187—a full 267 jobs fewer. The following year, they budgeted for 5,222, and they hired 4,899— leavin g 323 jobs not hired. The next year, they budgeted for 5,078. They hired 4,707—a difference of 371 jobs. And the last year, 230 jobs fewer. Mr. Speaker, over that four -year per iod, there were 1,191 jobs! That was over $110 million savings, because if you do the math, the average wage is just over $90,000 a year. That is out of the Budget Books! I did not make this up. When you add that on to the five- year freeze from the BIU [Bermuda Industrial Union] workers, the BPSU [Bermuda Public Services Union] worker s and the furlough day and all of the anticipated increases, over $200 million that the government workers have contributed to this economy while others were getting tax exemptions, payroll tax exemptions, retail [exemptions] from this country, and bonuses ! Labour has] done their part! At the same time, health insurance went up over 100 per cent. Payroll tax was going up. Food went up, light bills went up. Our workers suffered, Mr. Speaker. And, Mr. Speaker, let me say this here. The government workers are working at the 2013 rate, because they are five years behind. They did not make up. They sacrificed. And when you heard my colleagues talk about burnout, yes, they had bur nout—not only physical burnout, but financial burnout, Mr. Speaker. This is what the y had to go through. And the Government of the day did not thank them. What they did, they forced them to go home at 65, giving some of these folks —putting a lump sum out in front of their face and asked them to retire early when most of them could not aff ord to retire early, Mr. Speaker. And then you tell my seniors, who you did not give an increase for over five years, and at the same time you increased the health care at the hospital expenses to seniors by 10 per cent! And then the OBA
Bermuda House of Assembly Government tells those seniors, Money doesn’t grow on trees. Is that anything to be proud of? But this Government has made the statement that we will give our seniors the annual increase so that they can survive, Mr. Speaker. We know that pensions in this country were not available to people, particularly black people in this country. So the worth of the pension is not that great, because it is very young. And so, they struggle. They struggle because that pension they get cannot take . . . some, they have to pay rent and drugs (prescription drugs, that is) and food.
The SpeakerThe SpeakerMedication. Hon. Derrick V. Burgess, Sr.: Yes, medication, Mr. Speaker. It takes them to the next fight, Mr. Speaker. We all talk about health care, the cost of health care. I will say it again. It was Dr. Brown again who said, years ago, Let’s cut all health care by …
Medication.
Hon. Derrick V. Burgess, Sr.: Yes, medication, Mr. Speaker. It takes them to the next fight, Mr. Speaker. We all talk about health care, the cost of health care. I will say it again. It was Dr. Brown again who said, years ago, Let’s cut all health care by 10 per cent. It would have been a $70 million decrease, right? Mr. Speaker, figures just came out this week to say that prescription drugs cost the country (I think) $44.2 mi llion a yea r. Mr. Speaker, when we average that out, it is just over $700 per person in this country —very e xpensive, very expensive. These figures differ from those of another company which did a presentation in Bermuda, I think it was in October or November. And this company in Bermuda said, We insure 24,000 people. And the average prescription is $495. Now, I cannot see such great disparity, $495 to $700; it is over $200. Somebody has got it wrong. Somebody has got it wrong, Mr. Speaker. But, regardless of that, Mr . Speaker, we can cut the cost of prescription drugs by at least 30 per cent. Generic drugs cost about half the cost of the name brands. And most drugs today have a generic brand. Once a company brings out a drug and it has been on the market for five year s, then the generic brand can be developed. And if we made it mandatory that when people, regardless of their age, go and get prescription drugs, that they are offered the generic drug first instead, we can save at least 30 per cent. You know, that is $12 million savings already. And, Mr. Speaker, that is where we should be starting first, because eventually many people on [medication for] high blood pressure, diabetes, rheu-matism, cholesterol, you name it, some people are taking 10– 12 different medications a day. Mr. Speaker, eventually, it makes you probably feel good for a while, but eventually it would kill you. You take all of those drugs; it has got to do something to you, because, you know, you see on television today that, If you take this here, thi s is for your sinuses. But I’ve got 10 warnings. Now, it may make you crippled. It may kill you, make you go blind. Why would you want to take that? Why would you want to take those drugs? I tell you, I refuse to take a lot of drugs. I do not take drugs —you know, prescription drugs. I am suffering now because I will not take any of those drugs. But I am not suffering; I am going the natural way, Mr. Speaker. TLC [tender loving care] is certainly good for you. And we should all have it, Mr. Speaker. Now, Mr. Speaker, the airport redevelopment. This Government has done the best it could in scrut inising what the OBA, and let me say their lawyers, put in place for this country. You know, Mr. Speaker, I would say it seems like it is criminal to me what they have done. It is unethical. In contract law —and I am not a lawyer, but I am a common sense person— if you have got a lawyer representing you, Mr. Speaker, particularly in contract law, it is their responsibility to protect you, not tie you up in some knot where you cannot get out and if you get out, it is going to cost you an arm and a leg and half of one of your eyes. That should never happen, Mr. Speaker. And what these lawyers have done with that contract down at the airport, that tied us up so tight, they wer e not acting in the interest of this country. The OBA Government did not have a mandate from this country for that airport.
[Inaudible interjection]
Hon. Derrick V. Burgess, Sr.: No, they did not. They can say, Oh Lord. You should call somebody you know . But, Mr. Speaker, they have done this country an injustice. What law firm put you in such a knot that, if you got out of that deal today, it is going to cost you $196 million, at least? They were not representing us. I would figure that law firm probably should have signed a waiver to declare . . . I tried to tell them this isn’t what to do, but they said these are the instructions they got, you know. And so, they did the contract as they were instructed. But, Mr. Speaker, I am going to tell you, I rea lly believe that the law firm did this country an injustice, because you cannot make people subject to a con-tract and they know nothing about it. Because, as you know, this present Government, when we were Opposition, we were asking for all the information. They never gave it to us. Well, what did the OBA Gover nment do when they got in power? They not only guaranteed foreigners work down at the airport; they guaranteed them working other projects in the country. No guarantee for Bermudian workers. But what they did tell workers in some of these places is, If you had a conviction or you had a police record 15 years ago, you cannot work there. But you know what the OBA Government did, Mr. Speaker? They removed the police clearance cer-tificate when a worker com es to Bermuda. They r emoved that requirement. So Johnny Blow can come from New Zealand and get a job, no police clearance. And one of my cousins, one of Mrs. Smith’s sons, goes to the airport to get a job and they are looking at his record and saying, Oh, well, in 1979, you had a seed in your pocket. So you can’t work here. That is not right. You know what makes it even doubly wrong, 1122 23 February 2018 Official Hansard Report
Bermuda House of Assembly Mr. Speaker? Because that same person who got denied a job because he had a seed in his pocket 20 years ago, he has got to help them pay this bill! You want me to pay something, and I cannot participate in getting a job down there? There is nothing right about that, Mr. Speaker. Mr. Speaker . . .
[Timer beeps]
Hon. Derrick V. Burgess, Sr.: That is 20 minutes?
[Inaudible interjection s]
The SpeakerThe SpeakerThe Deputy had a quick 20 minutes. We thank you for your contribution. Does any other Member wish to speak? Mr. Commissiong, I see you standing there. Do you wish to speak? Mr. Commissiong. I recognise the Honourable Member Com missiong.
Mr. Rolfe CommissiongThank you, Mr. Speaker. Mr. Speaker, the Honourable Member who just took his seat, from constituency 5, talked about the great sacrifice of Bermuda’s civil servants over the last five years. Based on those calculations he gave to this House, they make for sobering reading. Certainly to know that the …
Thank you, Mr. Speaker. Mr. Speaker, the Honourable Member who just took his seat, from constituency 5, talked about the great sacrifice of Bermuda’s civil servants over the last five years. Based on those calculations he gave to this House, they make for sobering reading. Certainly to know that the sacrifice of Bermuda’s civil servants during an era of austerity imposed by this Government amounted to roughly $200 million of the former Government.
An Hon. Member An Hon. MemberExtraordinary.
Mr. Rolfe CommissiongIt is extraordinary. But at the same time, we witnessed one of the most major transfers of income and wealth to a select few, to the tune of $100 million to subsidise the America’s Cup —$100 million to subsidise the America’s Cup—
Mr. Rolfe Commissiong—with most of the profits, income, going to the top tier in Bermuda’s business community.
The SpeakerThe SpeakerMember, yield for a point of order. Point of ord er? POINT OF ORDER
Hon. Dr. E. Grant GibbonsYes. This $100 million number keeps coming up. It was about 65, actually. So, the Honourable Member needs to get his numbers correct.
Mr. Rolfe CommissiongYes. You would say that. But again, the key point —while civil servants had to make sacrifices to the tune of $200 million, we saw one of the most major transfers of income and thus wealth to a particular segment of Bermuda’s business elite.
An Hon. Member An Hon. MemberThat is right!
Mr. Rolfe CommissiongA black -dominated civil service who had no other option than to participate in what the then- Government was calling “ shared sacr ifice,” while they benefited to the tune of tens of mi llions of dollars. And I say “they,” I am talking about mostly their business backers from …
A black -dominated civil service who had no other option than to participate in what the then- Government was calling “ shared sacr ifice,” while they benefited to the tune of tens of mi llions of dollars. And I say “they,” I am talking about mostly their business backers from Bermuda’s white elite. O f course, there is no reticence in me asserting that. You see, Mr. Speaker, I just want to have your indulgence here to share with you an article, or some comments from an article, in the Royal Gazette. It was in the Lifestyle section on January 16, 2018. And the headline said, “Boyd plays back his life with pride.” I am referring here, Mr. Speaker, to a man by the name of Mr. Boyd Smith. And I am going to share a few paragraphs here. It says, “Boyd Smith sobbed when he was told he had to drop out of school. He had dreamt of becoming an architect. “‘Two of my older sisters went to Berkeley,’ the 90- year-old said. ‘My father, Seward, couldn’t afford to send me also. “‘There was only one scholarship available to Berkeley and I came second in the scholarship examinations, which meant I didn’t get in.’ “Instead, he became a grocery store delivery boy and at 15, an apprentice to carpenter Stuart Trott.” Mr. Boyd Smith was born in [1928]. He would have been looking forward to going to Berkeley in the early 1940s during the war. But he could not go to Berkeley. You see, Mr. Speaker, with the black co mmunity making up 60 or 70 per cent, even at that time, of Bermuda’s total population, there was only one Berkeley. The white community had four —Whitney, BHS, Saltus, and Warwick Academy, funded out of the government c offers , by way of a tax system that disproportionately put the tax burden, through cus-toms duties, primarily on Bermuda’s poor and black majority.
Bermuda House of Assembly You see, Mr. Speaker, this goes to the root of the underde velopment of Bermuda’s black community. This is what our Budget is still attempting to do. This is another instalment from the PLP of how we can correct the great wrongs that were done in this country. You see, this Budget that we put out is on behalf of Mr. Boyd Smith’s granddaughter, her and his grandson, his grand- nephews, his uncle’s children. That is what we are charged with doing. Mr. Speaker, if I may, I want to let you know that, after Mr. Boyd Smith became a carpenter, he ended up eventually in the hotel industry, which so many of our fathers, even members of my generation, went to. If you did not have a college education, you could still go into that industry and earn a middle i ncome standard of living. But over 70- odd years later, when he could not get into Berkeley because of the strained finances of his family, but more particularly because of the lack of real opportunity in the Bermuda that was still determined by racial hierarchy based upon notions of white supremacy and therefore white privile ge, he was denied the opportunity to realise his true potential. And that is what we talk about, how scores of Bermudians, primarily black Bermudians, were never able to realise their potential. Mr. Speaker, I continue. “His only real regret in life,” as o f a few weeks ago, he says, “is his lack of education, a sense of loss he still feels 70 years later.” He says, “‘I know they have courses online and courses at the Bermuda College,’ he said. ‘But at my age I’m not going to do that.’” Again, this Budget is the next instalment that the PLP Government (now), once again, is investing so that we can cure those anomalies, so we can r educe those gross racial disparities. Mr. Speaker, I had the opportunity to see the movie Black Panther. And what was fascinating a bout the movie, Mr. Speaker, is that it served as an allegory. That is a narrative describing one subject under the guise of another. The movie conveyed an ethical and moral world view and the lessons that came out of that, as in a fable. But the world vie w it really pushed was one in which you have a strong, united country ruled by Africans who had never been col onised by what they called the “ coloniser. ” Mr. Speaker, that film was phenomenal because it operated on so many levels. That film has gone on to gross, so far, around $400 million, and I would encourage Bermudians to go and watch it, both black and white. But that is in a fictional world of Wakanda, led by the king known as the Black Panther. In the real world, we are still charged with empowering our pe ople, empowering black Bermudians not so as to dom inate in terms of establishing a new racial hierarchy over white Bermudians, but so as to fulfil the promise of equality for all. And so, that is what we are charged with. Mr. Speaker, I was disappointed somewhat in the substance, or the lack thereof, in the response to our Budget Statement. You will recall, back in 2012/13, really, when we first sat down as Opposition. Despite the devastating loss that had confronted us in December of 2012, we were ab le to pick ourselves up and acquit ourselves, I think, admirably and with courage to prepare ourselves to deliver that first Oppos ition response to their Throne Speech. All I can say is I hope that things improve over there for the sake of the country. How ever, I will give them some credit. And this is where I get back to, again, that Black Panther comparison, Mr. Speaker, and how we still have the challenge before us of empowering our people, black Bermudians, so they can take their place, finally, wit hout any reservation, at the feast, at the banquet which is the Bermuda economy. You see, Mr. Speaker, one of the things that has gone overlooked here has been a historic change that was outlined in our Budget Speech by our Premier, the Honourable E. David Bur t, under the heading of “Enlarging the Economic Pie.” And again, this is historic because it has never been done before. And both parties of the last 15 years have attempted to do it, but we have always failed. I said “both parties.” And this is what I am talking about. It says here that “This Government will use its purchasing power to reverse the legacy of economic inequality that is an enduring characteristic of Bermuda’s economy. Accordingly, the Government announced a new Code of Practice for Project Management and Procurement, which states that the Government will ‘use its purchasing power to promote equality of opportunity with regard to disabi lity, gender, and race.’” Mr. Speaker, this is critically important. Just like I said, both parties over the last 15 years or more have attempted to bring about some form of this and have always come up short at the finish line. Just for the people who are out there in Radio Land, this Go vernment, historically, spends about $230 million- odd, give or take a few here and there, on goods and services locally, every year. Back in 1998/99, I think, I believe the former Minister Renee Webb indicated that, by the time the PLP came into Government, over 90 per cent of that spend was going to what we call, traditionally, w hite-dominated businesses in Bermuda. Now, all that money does not just go to businesses in terms of contracts; it is also for consultants and the rest. But it is around $230 million per annum. I believe we heard a figure a few years ago, and I stand to be corrected, that 18 years later, 16 years later, still about 80- odd per cent, 87 –88 per cent of those government contracts are still going to white - dominated businesses in Bermuda. In a country that has a black population of at least 50 to 60 per cent when you talk about the residents of Bermuda, how can this be? Well, anyway, this is a good step in the right direction. You want to talk about empowerment? For those black Bermudians out there who feel that you have something to contribute, who have business es, 1124 23 February 2018 Official Hansard Report
Bermuda House of Assembly get in touch. Understand that we are going to continue to create opportunities. Now, with respect to the O pposition, they too, well, finally, have endorsed this. In fact, they go one better. And I am fully on board with them. As you know, we have also indicated that we are going to reserve 20 per cent of contracts, which is something the Opposition, I can see, I think, put in place in terms of capital projects, capital spending on small businesses. The Opposition, to their credit, under their Leader today, stated that they too believe that, under this heading, it should also take into ac-count disability, gender, and race. So, that is good. Do you know why? Because too often when it came to this issue there has been this great polarising divide. No more. And I am happy about that. Secondly, again, in terms of the spirit of bipartisanship and it is there . . . I heard the term “green shoots” again. It is such a cliché now. But (you know I am still tempted to say this), we have their buy -in by way of the Op position Leader in terms of the tax commission, which is so important. It is so critically important. And let me tell you why, Mr. Speaker. In a document produced by CURB [Citizens Uprooting Racism in Bermuda], and I have said this before in this House, and I will quote, and it is coming out of my motion on the Living Wage [Joint Select Committee to Investigate, Report and Make Reco mmendations on the Implementation of a Living Wage], my motion, that is already . . . that is how we were able to have that debate. It says here that in 1941 the American vice consul in Bermuda, who was here at during the building of the US bases during the war, during the time that Boyd Smith was trying to get into Berkley, he wrote a thoroughly astute observation concerning the then white oligarchy here and their position on taxation. The quote is as follows: “For a hundred years” he wrote, “a small group has made Bermuda its own paradise by contro lling legislation and by seeing that tax [ation ] policy kept all but themselves i n strict economic subjugation. While they [themselves ] accumulated fortunes subject to no taxes whatsoever . . .” You heard the Junior Minister earlier in our exchange talk about how in 1985 we adopted payroll tax. What they are referring to here is a syst em that began in 1898 that revolved primarily around customs duties, which back then would have comprised maybe 80 per cent, 90 per cent of government revenue. But we know that is a very regressive system of raising taxation. So, again, the preponderance of that taxation was drawn from Bermuda’s poor and black. The mi stake we made was instead of moving to a more pr ogressive system in 1985, Mr. Speaker, we then added payroll tax and increasingly made our tax regime dependent on that as well. So at every syst em of main earners of government revenue, whether it is payroll tax, whether it is despite some attempts at some pr ogressivity on both sides of the aisle over the last cou-ple of years, payroll tax, customs duties, a percentage of which has declined but is still fairly high, and land tax, all three had placed a disproportionate burden on low income Bermudians. And because of the historical legacy we had it has increased racial disparity against a backdrop of widening income inequality. So, this party, this G overnment, gets it. Some will deny or try to say that we are not progressive. We are as progressive as we have been able to be, and now I sense that we are about to take it to the next level and finally be a transformative party and Go vernment that brings about the long- awaited changes to this country. Mr. Speaker, I want to talk briefly about the diversity project here. I know that some Members have expressed the view that things like “blockchain,” exotic phrases, such as “FinTech,” and even emer ging technologies, such as, “artificial intelligence,” can sound to some out there, even now as people hear my voice in radio land, as something that is coming from Mars. And do you know what, Mr. Speaker? Half a century ago, 40 to 50 years ago, when people heard about “captive insurance” and “catastrophe insurance,” there was the same reaction. Forty, fifty years later, many of our people have no conception of what these critical sectors of our international business community actually do. Really! So I can understan d why many, seeing now this new direction, can be just as flummoxed, if you will, about what it represents. But let me say this here: We have to diversify our economy. We have to ensure that we do not b ecome overly dependent on international business in respect to insurance for growth. So FinTech, bloc kchain, artificial intelligence, is where we need to go to keep our cutting edge and to keep Bermuda strategically at the forefront of world commerce, so we can realise Bermuda becoming a city/state. But let me say this here: Even on the 60/40 rule, and I know my time is almost up, we also understand that as we have our move in directions that hi storically this party has not embraced, the 60/40 [rule] being one, for some, and there are some with some reservat ions on this side as well who echo some of the comments made by our friends on the other side, and some of the other initiatives, we are also commi tted to ensuring that we are going to bring our people along, and ensure that those Bermudians who have not been empowered . . . and I know that sounds like empty words, and it has been too often, but in a very real way we are determined to make it happen this time. We cannot have this one- dimensional growth benefitting some, exacerbating income inequality, witho ut having our people being full participants. And you want to know why the America’s Cup ultimately failed in the imaginations of Bermudian people? Because they did not do that. It was viewed overwhelmingly by Bermuda’s black majority as som ething, quite rightly, that was making a transfer of major wealth to the hands of Bermuda’s traditional business
Bermuda House of Assembly elite. And in terms of optics, it was one in which black Bermudians did not feel a part of at an intrinsic level. That is why it failed, and that is why they lost the election. Thank you, Mr. Speaker.
The SpeakerThe SpeakerThank you, Honourable Member. Does any other Member wish to speak? I recognise the Honourable Member from constituency 26. Honourable Member, Tyrrell. ANNOUNCEMENT BY THE SPEAKER HOUSE VISITOR
The SpeakerThe SpeakerBut Honourable Member, before you start, let me just acknowledge in the Gallery that a former Member, Darius Tucker, is here visiting with us this evening. Good to see you. [Desk thumping] [Debate on the Budget Statement and Reply contin uing]
Mr. Neville S. TyrrellThank you, Mr. Speaker, and good evening to the listening radio audience. Mr. Speaker, I probably put myself at a disa dvantage again by coming to the cr ease so late. And with so much fire power having gone ahead of me, I am sure you will have heard most …
The SpeakerThe SpeakerYou can keep it short, we will not mind.
Mr. Neville S. TyrrellI will try and stick to my topic anyway. Mr. Speaker, I am going to start and end with some quotes. In the end I am going to ask if you will give me the liberty to read from my quotes. The first quote I want to make came from …
I will try and stick to my topic anyway. Mr. Speaker, I am going to start and end with some quotes. In the end I am going to ask if you will give me the liberty to read from my quotes. The first quote I want to make came from the Opposition Leader at the end of her less-than- quality Reply to the Budget, when she said that the Oppos ition intends to be watchdogs to see that promises made by this Government are kept. A laudable comment, but, at the same time, Mr. Speaker, during her, as I said, less -than- quality Reply to our Budget, I did see a lot of sleeping dogs on the other side because there was no animation at all from any of her colleagues throughout the entire time that she delivered her Reply. So, I really said . . . even at the end there was no acceptance, cla pping, or feet stomping, or an-ything. So it sort of gives you the impression that there was not a lot of life over there. So I am looking to see what sort of watchdogs they are actually going to be. But I am going to try and stay on track, Mr. Speaker, as I said. And I am going to try and let the topic of my talk be based on fairness, which is what our Budget actually speaks to. Fairness to all. Fairness to those who have not had previous opportunities, and, as I said, fairness across the whole spectrum. Mr. Speaker, I have the advantage, and sometimes the disadvantage, of actually living in the constituency that I represent. So most times when I come out of my driveway I am probably bound to run into one of my constituents, or several of my constit uents, especially if I am on my way to the post office, the grocery store, or something. I can assure you that nine times out of ten my constituents are talking to me about jobs. That is what they are talking about, jobs that they have not had the opportunity of being able to take over the last four years. And, as I have said b efore as I have stood on my feet in this House, there are some of my constituents who have not worked in the last four years. So I certainly feel that our Budget is poised to give people the opportunity to get a job going forward, Mr. Speaker. Mr. Speaker, our Government has directed its attention to the knowledge that there is an ageing population. We know that there is an ageing popul ation here in Bermuda and we have addressed some of those issues. Obviously we have talked about increasing the pension at the rate of the cost of living, which is something that pensioners have not had over the period of the last administration. So we are certainly going to look at doing that. Mr. Speaker, there are economic and social issues that have caused a lot of resources and brain power to leave Bermuda under the last administration, not seeing any light at the end of the tunnel in terms of their being able to be involved in the promotion of Bermuda. I sta nd on my feet to encourage those persons who have relatives living abroad, and it looks as if they were forced to leave us, to come back home and participate in the new Bermuda under the Pr ogressive Labour Party Government. We will invest to grow the economy, not so much concentrating on cuts as we have seen over the last four years which has actually caused, as you have heard before, stress among, certainly, our civil servants, so that we can promote Bermuda. Mr. Speaker, during the Opposition’s Reply, and also speakers from their side, they talked a lot about us selling out in wanting to address the 60/40 [rule]. Now, from my position, when I sat in caucus and listened to our Minister of Finance deliver his re asoning for wanting to change the 60/40 [rule], I got the impression, and I certainly have it clear today, that it is not an open game here that we are talking about. As you have heard, in fact, one of the speakers ahead of 1126 23 February 2018 Official Hansard Report
Bermuda House of Assembly me said that it is to benefit those who have not had . . . or more so to benefi t those who have not had the opportunity to benefit from the economic pie in Bermuda, and not so much for those who have already benefitted. So I certainly got the impression, and it has been confirmed, that this is going to be looked at case by case. So i t is not like we have just opened up the floodgates and looked at releasing the 60/40 [rule]. Mr. Speaker, as I said, our Budget speaks to fairness, putting Bermudians first, of course. For too long it has been the norm that those who deserve, or who are at the bottom of the totem pole have not actually had the benefit. Mr. Speaker, we are certainly addressing in the payroll tax aspect persons earning less than $96,000 will have the benefit of a reduction in their tax and more take- home pay. So obviously t hat is going to benefit, it will hopefully trickle back into the broader economy with persons having more money to spend. Mr. Speaker, I certainly want to show my su pport for those with disabilities, because this Gover nment is giving the opportunity to employers to employ persons with disabilities to get a tax break. Hence, again, we are rewarding those employers who may even be small business type employers who employ persons with disabilities. Again, Mr. Speaker, with our intention of r educing our duty on what I would call food staples (I will not actually name them) gives the opportunity for families to probably eat healthier and at the same time we are expecting to see that this is passed back to the consumer in terms of grocery shopping. We are going to monitor this exercise to see that it is actually passed on and that there is a benefit to the weekly shopper. Mr. Speaker, I am not going to omit this part of my discussion. It could not be missed that Amer ica’s Cup was mentioned so much today. There wer e 24 pages in the Reply to the Budget. America’s Cup was mentioned at least 12 times. My colleague from constituency 5 said that he saw 15 times in the Budget Reply that America’s Cup was mentioned. But ev ery one of the speakers on the other side certainly talked about the America’s Cup. You could tell it was obviously their magic bullet . . . sorry, silver bullet (as it has been exclaimed) to save them. And look what that did for them. Mr. Speaker, it was also said that our oppos ition to the America’s Cup was “vitriolic criticism” from us. Mr. Speaker, yes, we had some criticism about America’s Cup— and still do. But it was based on the fact that they were using monies that could have been used for a lot of social issues that we have in terms of busses break ing down, trash truck, those sorts of things. Their attention was to something else. And, as we can see, again I think that is the reason why they are sitting on that side of the aisle, and we are certai nly sitting on this side. Mr. Speaker, let me sort of wrap up here and basically end with two quotes. In fact, one of them I will quote from is the National Economic Report of Bermuda. It says, “The new Government’s desire is to create new economic pillars and enact policies to grow Bermuda’s economy. This s hould lead to higher employment numbers providing sustained economic growth in most sectors.” The next quote I want to make is actually in the Reply to the Budget Statement. And I would say it is probably the best thing that came out of the Reply to the Budget Statement. It says, “ Mr. Speaker, the people of our island expect us to do the right thing for them, for their children and for future generations of Bermud[ ians].” That is what this Government is going to do. And finally, Mr. Speaker, again, my colleague from constituency 5 certainly took my thunder on this one. And it is actually the last paragraph in the conclusion of the 2018/19 Budget Statement by this Government. I am actually going to repeat it. But he did not even finish it, so there is a part on it that I am actually going to say as well. It says, “Mr. Speaker, [i]n the name of those who have always had to shout to be heard; on behalf of those who have fought for basic rights like health care, free education, maternity leave and vacation pay; in honour of those who have made their contrib ution, whose marching days are now behind them but whose hearts remain on fire for social and economic justice; . . .” He stopped there. The end of it was, “and in the spirit of those to whom the future truly belongs and who even now are studying and working to educate themselves for a place in forging the future of their country . . .” Mr. Speaker, thank you for your time.
The SpeakerThe SpeakerThank you, very much, Honourable Member. Does any other Member wish to spe ak? No? Mr. Swan, I see you down in the corner. Don’t worry. I recognise the Honourable Member from constituency 2. Honourable Member Swan, you have the floor. And be mindful, Honourable Member, that it is 20 …
Mr. Hubert (Kim) E. SwanYes, t hank you, sir, I will take a bit of that 20 minutes, not much of it. I have my glasses —
The SpeakerThe SpeakerIt is a little bright down that end of the room, sir?
Mr. Hubert (Kim) E. SwanVery bright. I actually need prescription glasses now, but I also have pr escription shades and I put them to good use down here in the bright lights of the corner. Bermuda House of Assembly The Speaker: Well, that may be a good omen if you are down in the …
Mr. Hubert (Kim) E. SwanIn the bright light. First of all, Mr. Speaker, let me start off by congratulating the Finance Minister, the Junior F inance Minister, and the team responsible for putting together the Budget. I think they deserve credit. I b elieve by the response that was given around the community that …
In the bright light. First of all, Mr. Speaker, let me start off by congratulating the Finance Minister, the Junior F inance Minister, and the team responsible for putting together the Budget. I think they deserve credit. I b elieve by the response that was given around the community that it speaks for itself, Mr. Speaker, that, indeed, the Budget was thoughtful and, given the ci rcumstances of Bermuda, has been well placed at this particular time. Mr. Speaker, I have heard comments made today from the other side that has prompted me at this late hour i n the debate to focus on the debt aspect of the Budget. And I am amongst those persons who I am sure are always very mindful of the debt levels in Bermuda and very mindful that the right balance has to be struck. It is easy, Mr. Speaker, with the politic s at play, for persons to look at the debt levels and put whatever political spin that suits their agenda. And let me just look at 2009 when the deficit in current account spending was $2,010 million [sic] , and in 2010 was $250 million, and in 2011 was $400 million and in 2012 [it was] $230 million. Let us cast our minds back to that period when Bermuda was in the throes of the worst recession since the Great Depression struck this world. I heard an Honourable Member of the O pposition speak and he was very encouraged by the initiatives of the Budget. And he indicated that he had gotten involved around that time, 2010, because of what was taking place in Bermuda. I think it is important for us to reflect that during that time period, 2009, 2010, and 2011, t he world’s economy turned on its head. Any opposition at that time would certainly have great fun pointing fi ngers at the Government of the day. The outgoing Government, the now Opposition, often made the comments to us in Government, Now you see how hard it is to govern. But how hard would it have to be to govern when all your major players were falling by the wayside? When local companies, like British American, where persons like my mother had their life insurance, and persons might have bought life poli cies (and they used to leave the money under the gas tubes) from companies that went by the wayside? Workers of that company would have seen their future benefits gone by the wayside. I did not hear much hue and cry, Mr. Speaker, when that was going on. I really didn’t. And we did not see the scrutiny that probably should have taken place in that regard. Mr. Speaker, during that time period we would have seen projects on the books, like Ariel Sands, like the project in St. George’s with Mr. Bazarian. We would have seen Newstead, we would have seen Lantana, we would have seen Tucker’s Point. We would have seen any number of projects fall by the wayside. Some projects, even ones assoc iated with very prominent former politicians, like 9 Beaches, and The Reefs, found major difficulties. We would have seen companies like ACE, XL, AIG, going into major difficulties. Mr. Speaker, when that happened in this country at that time, you are talking about a perfect storm. And if you were in Opposition at that time and you really wanted to tickle the Government up at that time, and you really wanted to jam the Government up at that time what would you do, Mr. Speaker? You would pin the tail on them, if you could. You would make governing for them difficult, if you could. You would cause people to look suspiciously at them, if you could. And if you were successful, persons would take a different position than what reality really was at that time. Difficulty to govern was not experienced in 2013, 2014, and 2015; the heavy lifting was done in 2009, 2010, and 2011. And during that period, Mr. Speaker, let me just remind persons what the workers of this country were doing at that time. I believe, someone could correct me, but it was right down there and below heart, right down there in the theatre. I b elieve they call it a triennial conference that was taking place between all the unions. It does not happen that often. But at that conference, I know that the current Minister of Works was there in his capacity. I was there in my capacity as an Opposition Leader, Mr. Speaker. And I can tell you what took place around that time with persons like the leader of the Industrial Union, Mr. Chris Furbert, and Mr. John Harvey, the former head of the Bermuda Hotel Association. Hotel worker s took a pay cut, they recognised that a recession was here, they led the way. Workers led the way. Let me say that by the time 2012 came around some of those same workers, some of those same busboys, some of those same persons at Pri ncess were the first t o go. Remember? Lest we forget, Mr. Speaker, lest we forget . . . and it is important, because in this country where business rules —where business rules —and businesses support government, not parties, let us not forget how quickly that happens. But let us be mindful of what was taking place in 2008, in 2009 when that debt . . . the Government of the day had a choice. They could have balanced the budget. How? They could have sent every gover nment worker it needed home, and it could have ba lanced the budget. But it did not, because it cared about the people and it was confronted with a serious conundrum in this country, a conundrum that was u nderscored by the very Bank of Butterfield needing the support of the Progressive Labour Party Government! And we know that the Progressive Labour Party supporters, or members, were not part of the board of directors of that bank. Look at the share director and you will see who was making decisions in the bank between 2003 and during that period. You will see who was invol ved in companies that were f i1128 23 February 2018 Official Hansard Report
Bermuda House of Assembly nancing Tucker’s Point and Belmont Newstead during that time. You would see in companies that went down that took a hit, like Argus and the like, who was involved. In other jurisdictions that would have been examined, but it was not in Bermuda. But that is the way it is. Let me say that in the context of this Budget, when a billion dollars has to come on the books in debt and I am sure any Government you can think of to point fingers at different projects that could have come u nder scrutiny. But then you look at the bulk of what it takes to operate in deficit spending, the ci rcumstances during 2008 and 2012 are far more dire. I recognise it. I certainly say this, that Dr. Brown, who was the Premier at the time, and myself, came t ogether when it came to Bermuda First to be able to . . . and who were some of the frontrunners of Berm uda First at that juncture? It was the chairman of the Bank of Butterfield, not the chairman, but the head, the CEO, Mr. Phil Butterfield, of HSBC; it w as Mr. Gregory Slayton, a well -known man with an economic background, who was the US Consul General; and it was Mr. Donald Kramer, who was one of the preem inent men in reinsurance, well -respected across the board. And they encouraged their colleagues to come to the table because they recognised the serious threat that existed in Bermuda. The record is there. The report is there. So what followed? The exodus [from] this country in 2009. And while those of us in Opposition, yes, me included, could be politi cal and make PLP supporters look suspiciously at a Government that had no choice but to make two choices, cut the civil service and cut the knees right off of Bermudian people, or convince the people that they could ride out the time. So when the OBA is co ming here and jumping on a high horse trying to say, Oh, we did wonders . . . what did you do between 2012 and 2016? You went into deficit spending, no different than what the PLP had to do because of the most dire circumstances, because in four years the debt grew by another billion dollars. And where did you put that money? You put that money to those who needed it the least! Now, I am an athlete and I know that you do have to fish where some of the money is. But do not confuse what corporate welfare looks like, because when you take all your eggs and you put them in one basket like that, and try to sell it off as something else, the people see it for what it is. And when you go into a billion dollars’ worth of debt in four years, and then try to say, I j ump- started the economy, and at the same time you cut education from a community that needs it the most, you sacrifice in areas where social pr ogrammes for the country are desperately in need, and in addition to the backdrop of an economy of a country that is in dire need of social attention where you have gang violence and the like, you turn your backs on Bermudians. So, the result of July 18, 2017, was not . . . the OBA put their eggs in the America’s Cup, and per-sons saw it for the politics that it was. And they did it at the expense of Mr. and Mrs. Bermuda, because it was not manna that fell from the sky, it was not the cash infusion that they proclaimed it would be, it was taxpayers’ money that was used. And where do you find taxpayers’ money? At the ex pense of something else. Now, let us go to why the Budget was applauded. The Opposition came here today, and I guess the only card they could use was to try and d ivide and conquer, try to drive a wedge between what the PLP has done, which has met with the approval universally and find the one or two areas that they might be able to drive a wedge between the communities. But let me just say this: Between 1998 and the recession coming in 2007, Bermuda’s economy grew by leaps and bounds more than it ever did before any other Government. So from that point of view, I be-lieve the Progressive Labour Party, with those who were running the Progressive Labour [Party] at that time, had some experience in knowing that business certainly would like for the country, and Bermudians would like for the country to run successfully economically. The Premier comes in at a time when Berm uda, for 10 years, has been under the gun. It was under the gun because of the recession. And it was deliberately put under the gun by the previous Government, whether they admit it or not. Pathways to Status and the all the type of initiatives that they had wound up the country even tighter, tighter than it was as a result of the economic impact that the country was enduring between 2007 and 2012, with all of the social problems that the country has. The country was in dire straits. So the Premier has the opportunity today. I give him kudos. He is very accomplished. I am proud of him when he is overseas representing us. I am sure persons are noticing that as has been espoused by Members opposite. He has to settle this country down. And he doesn’t settle this country down by doing things that are going to turn it upside down at the same time. But let me tell you this: I know in my heart of hearts that we in the Progressive Labour Party will put Bermudians first. We will do things in these years of governance that is going to make Bermudians feel not only well, those of us that are here, but those of our people who had to leave and make the exodus to look back at our country as the first choice to return. Okay?
An Hon. Member An Hon. MemberHear, hear!
Mr. Hubert (Kim) E. SwanAnd that is what the cha llenge is. And for the Opposition, I encourage them to do this. Be a part of the solution for this country, beBermuda House of Assembly cause you are going to be in Opposition for four years. Come with come tangible solutions, like— [Inaudible interjection]
Mr. Hubert (Kim) E. SwanWell even longer. But come with some tangible solutions — An. Hon. Member: Make them feel good.
Mr. Hub ert (Kim) E. Swan—because that is what responsible Opposition does. You come with sol utions. And let me say this in closing, Mr. Speaker. When I came into the legislature in 1998, I studied the only Opposition that Bermuda ever had, the Progressive Labo ur Party. Do you know what I noticed by …
—because that is what responsible Opposition does. You come with sol utions. And let me say this in closing, Mr. Speaker. When I came into the legislature in 1998, I studied the only Opposition that Bermuda ever had, the Progressive Labo ur Party. Do you know what I noticed by reading the Budget Reply, right there in that library that I hope gets restored one day? I read the Budget Reply. I read the Throne Speech Reply of Dame Lois [Browne -Evans], L. Frederick Wade, and Mr. C. E ugene Cox. I read them; I read the commonality of representing persons so that they understood it. And I will be honest with you, I tried to emulate. I did. And I am well-positioned today to help them carry out that vision for the people of this country, for the work ing men of Bermuda and the businessmen of this community. Yes, we are here for all people. But you cannot do that without recognising that there is a tilted playing field that has been tilted against the black community. And future generations need to know that there was a Government today that is going to level the playing field and make every attempt to do it. And you cannot do it without having the will to do it. And we will need more time than just four years in order to carry it out. But I want to s ay to the Honourable Premier that this, in your first Budget as Finance Minister and Premier, is one great start. And for those who wanted to say that the honeymoon was over in November, with this Budget we have got to start prosecuting the agendas of this and the promises made in the Throne Speech Reply and during the campaign trail. Thank you. I think I have a few more minutes left, Mr. Deputy Speaker?
[Hon. Derrick V. Burgess, Sr., Deputy Speaker, in the Chair]
The Deputy SpeakerDeputy SpeakerThank you. The Chair recognises the Honourable Educ ation Minister, Diall o Rabain, formerly from Harris Bay. [Laughter] Hon. Dia llo V. S. Rabain: Formerly. Thank you, Mr. [Deputy] Speaker. Mr. [Deputy] Speaker, we have had a long day. I will not keep colleagues much longer. I hope to speak …
Thank you. The Chair recognises the Honourable Educ ation Minister, Diall o Rabain, formerly from Harris Bay. [Laughter]
Hon. Dia llo V. S. Rabain: Formerly. Thank you, Mr. [Deputy] Speaker. Mr. [Deputy] Speaker, we have had a long day. I will not keep colleagues much longer. I hope to speak for a very few minutes. But I felt it imperative to get on my feet to address some of the comments made about education during the Opposition’s Reply to the Budget because some of the things they said just had me baffled. And I think it is worthy of clarif ying, Mr. Deputy Speaker. But first I want to address something. We heard the Opposition , speaker after speaker, the few that did get up and say anything of merit, we understand what is going on over there. We understand how important it is to hit those consulting checkpoints after you have seen our speech, you have seen it on your op- ad from former senators, we have seen it on your blogs, and that is if we reverse the 60/40 [rule] the people will be marching on us. And we understand that. I understand that. We understand the political - ness. But in actual fact, I want to agree with you. If you were the party that brought anything that had to remotely do with reversing 60/40 [rule] the people would have marched on you. But I do not think you understand the reason why, which is one of the rea-sons why you are sitting in Opposition, and will con-tinue to sit there for many, many elections. You just do not get it. So I am going to try and break it down for you into simple words that you might understand. If a creepy, or untrustworthy -looking individual, comes up and tries to hand you something, versus someone to whom you can relate, someone you can understand, tries to hand you the same thing, which one do you think the people are going to take it from? The One Bermuda Alliance is that creepy, unworthy - looking entity. That is what they are. They lost the election because they lost the trust of the electorate. We talked about this on many, many occasions up here. They continue to lose. They lost it in year one, and it continues to tumble down, but they just could not understand it, they could not grasp it, and they took that into an election. I mean, once they elected a proven loser as their leader the writing was on the wall. The writing was on the wall. They elected a leader that could not . . . has not won an election as a leader, period. He has nev er won as a leader. He has never led a political party to an election, he has never won a by -election, he has never won a general election. He cannot even get a referendum right. The bi ggest loser. But, Mr. [Deputy] Speaker, let me get on to what I wanted to say about education in relation to their [Reply] . For far too long education has been used for political purposes. And once again we had to sit here today and listen to the OBA talk about educ ation from a political position of delusion. The Budget 1130 23 February 2018 Official Hansard Report
Bermuda House of Assembly Reply went on to praise the Strategic Plan 2022, but then went on to make political suggestions on how it should be implemented. Same thing; different date. As this was a plan that they rightly stated started under the One Bermuda Alliance, they proba-bly sho uld have recognised, or should have known, that it was a plan that was supposed to be put toget her to withstand political changes. It was a plan that was put together to empower the educational admi nistration to put them in positions to drive the plan for-ward, not politicians. The fact that the One Bermuda Alliance had the audacity to suggest what needs to be put in place to drive Plan 2022 forward with political appointees shows a lack of understanding, and a lack of respect for the plan itself. And that i s sad. Mr. [Deputy] Speaker, I say that is sad b ecause as the Opposition Leader ad- libbed . . . and this is what prompted me to want to get up today. The Opposition Leader ad- libbed, and I quote, Mr. Speaker, Governments are “to take care of those things that the public expect that it should do on their behalf. And one of those things is education.” That is a very true statement, Mr. Speaker. But, Mr. [Deputy ] Speaker, the Department of Education budget under the One Bermuda Alliance went from $121 million in 2013/14 to $109 million. Is that taking care of priorities? And I do want to point out, Mr. [Deputy] Speaker, that co vered their time as the Government. Mr. [Deputy] Speaker, last week I released a Cambridge Checkpoint Exam which covers their time. The public has, rightfully so, been outraged at what they have seen. Rightfully so! And I demanded that those results be released to show everybody exactly what we are working with now. If you listen to the pu blic, One Bermuda Alliance (I suggest you do), t hey were very disappointed. And they are up in arms. Why are our children still performing at the levels they are performing? However, if I listen to the Opposition Leader, and talk about how the public expects the Gover nment to take care of education, I challenge anyone on that side to stand up and explain to me that we have a curriculum called the Cambridge which requires our students to pass maths, science and English. And the post of education officer for maths and science has remained unoccupied since 2012. Do you know why it has remained unoccupied? Because of the brilliance of the OBA, the financial fiscal brilliance of the OBA, that brought us from the brink. And that brilliance is that when a person retires that post is frozen. That was the brilliant idea. But, Mr. [Deputy] Speaker, the post remains funded. So how is it that we saved mon-ey? We took that money and moved it other things that we wanted to spend money on. But, Mr. [Deputy] Speaker, anyone who cared about education, as they say they car e, how do you freeze two of the most important posts in education that deal with math and English, and expect our grades to improve? How do you do that? How is that even possible? The future of our country down the drain for four years!
[Inaudible interj ection]
Hon. Diallo V. S. Rabain: And yes, I am upset. I am mad! I am absolutely furious to have to stand here today and have to tell every single one of you over there that that is what you did to our children.
An Hon. Member An Hon. MemberYou fund education. Hon. Diallo V. S. Rabain: The education . . . and I hear the Opposition Leader, fund education. Mr. [Deputy] Speaker, did you not hear me say the posts were funded? They were still funded; they were just not allowed to fill them.
An Hon. Member An Hon. MemberThat’s right . Hon. Diallo V. S. Rabain: Understand that! They were funded, but not allowed to be filled. But guess what? They will be funded. They will be filled this year. Those very important posts will be filled this year.
An Hon. Member An Hon. MemberThat’s right. [Desk thum ping] Hon. Diallo V. S. Rabain: And, like I said, this was the brilliance of the former Finance Minister. He did a great job, absolutely wonderful job. Do not ask the former Minister of Education, he would not know, be-cause what you put in here absolutel …
That’s right. [Desk thum ping]
Hon. Diallo V. S. Rabain: And, like I said, this was the brilliance of the former Finance Minister. He did a great job, absolutely wonderful job. Do not ask the former Minister of Education, he would not know, be-cause what you put in here absolutel y proves that. Now, Mr. [Deputy] Speaker, let me explain the critical role of education officers. They are responsible for driving the curriculum in the schools. They are r esponsible for making sure the teachers are doing the things that they are supposed to do and making sure that the children are getting this. If you do not have anybody in place, we fall down. So, Mr. [Deputy] Speaker, when they froze these posts they co ndemned our children. They condemned them. And they should be ashamed. Every single one of them should be ashamed. And I am waiting for the point of order to disprove what I am saying right now in this place. And I am glad that the PLP has come and said, We’re going to fill these. We are going to fill these posts. Now, I read one of the political suggestions we have written into this document. It was so ridic ulous when I read it, Mr. [Deputy] Speaker. I am just going to find the page, because I forgot to highlight it (I was like, I can’t believe anybody would even say what they are saying) . . . It says here on page 8, “ To achieve effective implementation, ” (and this is a polit ical decision they are talking about) “there should be a director of education —or [education] commis sioner —“ (we have one of those already) “ a director of finance, ” (we have one of those already) “a director of IT serBermuda House of Assembly vices, a quality assurance director and a director of communications. ” Well, guess what? They are saying that if they were the Government they would have implemented that. That is what the Plan 2022 cal ls for, and, come September, a communications officer and an IT education officer will be in place, Mr. [Deputy] Speaker. We have a Government that has been in power for four years. How can we talk about that we are trying to advance our children in the areas of IT and there is no IT policy for our schools? No one has created an IT policy. How do you put the cart before the horse with that? Mr. [Deputy] Speaker, I said I was not going to be long, but to borrow a phrase from our friend, from our colleague who resides in, who represents consti tuency 23, when I read the OBA Reply, all I have to say (and to borrow a phrase from her is they have the unmitigated gall to stand here and now champion for position that the Department of Education has adv ocated for the last four years and they have refused to fund. But now they are saying, If we were the Government we would have done this. You could have done it. You could have done it, but you took the D epartment of Education’s budget from $121 million to $107 milli on. You could have done it. Where did the money go?
An Hon. Member An Hon. MemberAmerica’s Cup. Hon. Diallo V. S. Rabain: Where did the money go? Is a boat race going to help our children learn math and English? Is a boat race going to learn our children math and English? Think about that. And then, Mr. [Deputy] Speaker, you look at page 7, …
America’s Cup.
Hon. Diallo V. S. Rabain: Where did the money go? Is a boat race going to help our children learn math and English? Is a boat race going to learn our children math and English? Think about that. And then, Mr. [Deputy] Speaker, you look at page 7, saying in utter disregard for common sense and understanding, we see where it says, “ the Current Government will be slashing funding for improved e ducational standards by 35%. ” Well, Mr. [Deputy] Speaker, as I mentioned about the educational officers previously, that they were not allowed to hire, those of us who know about government know that . . . and this was one of the brilliant plans of the brilliant minds of the One Berm uda Alliance fiscal team, we are not going to allow you to hire anybody to fill civil service posts . But you can write consultant contracts. You can bring people in as consultants. But guess what? Those education offi cers whose posts remain funded and unfille d, there was a brilliant idea by some at the Department of E ducation, that we will hire consultants to kind of do their role. And guess what? Those consultants were paid about 20 per cent more than the civil servants’ posts. And that was only recently. The y were in place for two years. So when you say that 35 per cent is gone, that 35 per cent is the money we were paying consultants because your policy did not allow us to replace the people who should have been there in the first place.
Some Hon. Members Some Hon. MembersWow! Hon. Diallo V. S. Rabain: So, that is where it went. Now, if you look at the Budget, if you bothered to read the Budget Book, you would see that we still have more money. That money is just not being used for consultants. It is being moved to …
Wow!
Hon. Diallo V. S. Rabain: So, that is where it went. Now, if you look at the Budget, if you bothered to read the Budget Book, you would see that we still have more money. That money is just not being used for consultants. It is being moved to something else, something more meaningful, like things you did not do—hiring an IT educational officer, hiring someone to do our public relations. That is what it is going to do. But then again, you know, we even have former ministers writing books about their fiscal bri lliance. Books! I have not read the book myself, but I am wondering what part in there says if I take almost $20 million away from education, the grades should go up. If I take almost 30 per cent of funding from our senior school and tell Berkel ey Institute that, Yes, we’re sorry it costs you $4.4 million to operate, but we are only going to give you $2.9 . . . make it work.
Some Hon. Members Some Hon. MembersWow! Hon. Diallo V. S. Rabain: That is what you did! Make it work —$2.9 million —when they cannot operate with anything less than $4.4 million. That is what you did. And you knew it! Mr. [Deputy] Speaker, this Government has reaffirmed its commitment to education. How do we know …
Wow! Hon. Diallo V. S. Rabain: That is what you did! Make it work —$2.9 million —when they cannot operate with anything less than $4.4 million. That is what you did. And you knew it! Mr. [Deputy] Speaker, this Government has reaffirmed its commitment to education. How do we know that? We are funding the things that need to be done to make sure our children are successful. Every one of you who sits over there . . . how many of you have children in public school? How many of you have grandchildren in public school? How many of you? I have a daughter in public school. I have a vested interest in this. I want to see her succeed. I want to see our children have the resources they need to get by, to become productive citizens. You do not care. And you have not cared ever since you were voted in. For you to even stand here with this drivel is just ingenious [sic ] at best.
[Inaudible interjection]
Hon. Diallo V. S. Rabain: Disingenuous (thank you for that correction) . . . disingenuous at best. And you proved it to us by having four education ministers in four and a half years, none of who were full time, none of you even understood what goes on in that depar tment. That is why you have this drivel written in here about education. Thank you, Mr. Speaker.
[Hon. Dennis P. Lister, Jr., Speaker, in the Chair]
The SpeakerThe SpeakerThank you, Honourable Member. I recognise the Honourable Member from constituency 32. Honourable Member Simmons, you have the floor.
Mr. Scott SimmonsThank you, Mr. Speaker. 1132 23 February 2018 Official Hansard Report Bermuda House of Assembly I recognise that the hour is late. I never suspected that I would become the victim of friendly fire. But, nonetheless , Mr. Speaker, education is vitally important for us all. First and foremost, Mr. …
Thank you, Mr. Speaker. 1132 23 February 2018 Official Hansard Report
Bermuda House of Assembly I recognise that the hour is late. I never suspected that I would become the victim of friendly fire. But, nonetheless , Mr. Speaker, education is vitally important for us all. First and foremost, Mr. Speaker, let me congratulate the Honourable Premier and certainly his team over at the Ministry of Finance for the way that they have produced what I believe is, by far, one of the most fantastic, most productive, and certainly the most widely received Budgets that I have seen in r ecent times. I would also like to congratulate and thank, certainly, the Junior Minister for the time that he put in, over there at the Ministry. A nd I recognise that it was a team effort.
An Hon. Member An Hon. MemberA labour of love.
Mr. Scott SimmonsAbsolutely, a labour of love. I state that clearly, Mr. Speaker, because I believe that it was just not the Ministry of Finance that produced the document that we see here. It was all of his Cabinet colleagues, all of our team on this side played a part in what …
Absolutely, a labour of love. I state that clearly, Mr. Speaker, because I believe that it was just not the Ministry of Finance that produced the document that we see here. It was all of his Cabinet colleagues, all of our team on this side played a part in what we see here, which is obviously a document that speaks to what we agreed to on the doorsteps, Mr. Speaker. It was a contract with the people of Bermuda. And we have systematically pr ovided the steps and stages, the instalments, if you will, Mr. Speaker, that signified that we have a relationship with the people of Bermuda that is firm, it is a love affair, and it is an appreciation of them for entrusting this country to us. So, Mr. Speaker, I will not be long—
Mr. Scott Simmons—but I do start with the Premier’s words, which are . . . and he stated quite clearly that “national budgets are not just for businesses, accountants and property owners. This budget —as should be every budget —is about the people.” Mr. Speaker, I have had the opportunity to listen …
—but I do start with the Premier’s words, which are . . . and he stated quite clearly that “national budgets are not just for businesses, accountants and property owners. This budget —as should be every budget —is about the people.” Mr. Speaker, I have had the opportunity to listen to those in my constituency, those at work. I have had long conversations, and I think all of my col-leagues have, everybody on both sides of the House, have heard the reaction to this Budget. And I believe that what we have seen and heard is satisfaction in what this Government is doing for the people of Bermuda. Mr. Speaker, when we took the opportunity . . . I should say when we accepted to come and lead the country as a Government, we realised that there would be many, many pitfalls. We realised that we would not always get it right, that it would not always be on the upturn in everyone’s estimation. But we at least made the effort. And what we have seen is a by - product of that contract and of that effort. So, from the backbench to the frontbench, we have come together to bring what you see in front of you, what this country has seen in front of them, which is not the Bermuda Progressive Labour Party’s document, but we see the people’s document being produced on their behalf.
An Hon. Member An Hon. MemberHear, hear!
Mr. Scott SimmonsMr. Speaker, there were a couple of items in the Budget that pertain specifically to what I certainly cam paigned on, and that was that my seniors and also making sure that our hotels were developed. Those items in the Budget have been fulfilled, they have been looked into. Our …
Mr. Speaker, there were a couple of items in the Budget that pertain specifically to what I certainly cam paigned on, and that was that my seniors and also making sure that our hotels were developed. Those items in the Budget have been fulfilled, they have been looked into. Our seniors (as has been articulated prior to me taking my stand) have already been art iculated. And also the Education Mi nister has made it clear by his increases in funding for training and also the things in his Ministry . . . and I am sure the Minister of Economic Development and Tourism will articulate on what he is doing as far as the Budget is concerned. So I am looking forward to the Budget debate in that regard. Mr. Speaker, I was disappointed. I was very disappointed when I listened and followed in the Reply to the Budget by the Opposition. I would have thought that at the very mi nimum we would have forged a rel ationship that after saying so much about how we need to work together . . . I saw, as they say, the sharp edge of the sword. And it inflicted, or attempted to i nflict damage, on this particular Government. Mr. Speaker, we h ave enlisted, we have prepared for this. We have tough skin. This is the first instalment of many instalments from this Government and we are going to take the Opposition, whether they like it or not, and it is a fair criticism, that if you did not com-plete things in the last four years, you cannot criticise a Government for pointing it out to you that you did not do it, and then ask them to make sure that they do it. It’s wrong! It is disingenuous.
Mr. Scott SimmonsMr. Speaker, I believe that the public understands the challenges that we have. They recognise that the budget, or, I should say, the finances that we have in this country are not necessarily at the levels that we all would like. I am quite sure that Minister Caines woul d …
Mr. Speaker, I believe that the public understands the challenges that we have. They recognise that the budget, or, I should say, the finances that we have in this country are not necessarily at the levels that we all would like. I am quite sure that Minister Caines woul d like to see a huge budget to get the things that he would like to see done, as would the Minister of Public Works. Mr. Speaker, we are pr epared to work with what we have. But we will make the decisions as they relate to this particular Budget based on the needs of this country. We will be creative. We will make sure that we cover the important things in this Government and move it along. Now, Mr. Speaker, I will conclude on this. The next Budget that we have, and the Budget after that, and the Budget aft er that, will begin to get tougher, and tougher, and tougher, as this Government gets bolder, and bolder, and bolder in the things that we do and the things that we are determined to satisfy the people of Bermuda. So I am looking forward, Mr.
Bermuda House of Assembly Speaker, to being a part of this progressive Gover nment. I am looking forward to participating in the budgets that are going to solve and satisfy the people of Bermuda in ways that we have not seen before. I congratulated the Premier and his team on a phenomenal Budget. But the Premier, Cabinet Mini sters and this party, including backbenchers, are going to be creative in the things that we do for the people of Bermuda. We are going to be innovative. And we are going to be bold, because our electorate, those that put us here, expect it. Thank you, Mr. Speaker.
An Hon. Member An Hon. MemberHear, hear! [Desk thumping]
The SpeakerThe SpeakerThank you, Honourable Member. I now recognise the Honourable Minister Burch, from constituency 27. You have the floor.
Lt. Col. Hon. David A. Burch—I do wish to make a contribution to today’s debate. Let me just start by saying that I probably have looked at this Budget Statem ent more times than I have at any other in my political career.
Lt. Col. Hon. David A. BurchAnd the reason I did that was because before the Budget was presented, the longest serving Premier in this country said that my leader was the greatest person to lead this party and the country before he produced the Budget. That caused me some concern— [Laughter and desk thumping]
Lt. Col. Hon. David A. BurchThat was certainly followed by a self -appointed economic lifetime critic of the PLP who wrote an op- ed saying after the Budget how great that was too—
An Hon. Member An Hon. MemberLike a nightmare! [Inaudible interjections]
Lt. Col. Hon. David A. BurchAnd then finally, the night before the Budget Debate . . . and I want to say an esteemed economist, but that would be going a bridge too far. I will just say an economist told us that the Premier had one of two choices. Actually, he only had one …
And then finally, the night before the Budget Debate . . . and I want to say an esteemed economist, but that would be going a bridge too far. I will just say an economist told us that the Premier had one of two choices. Actually, he only had one choice. There are only two ways to balance a budget. You either cut the civil service or raise taxes. And they also informed us that we only had one choice because the former Government had already cut the civil service as much as it could be cut. So our only alternative was to raise taxes. Mr. Speaker, that did not happen. And we have not heard from that economist since. But I can report that they have an unblemished record of being wrong on every prediction they have ever made, that I can recall.
Lt. Col. Hon. David A. BurchBecause they did not take into consideration diversi fying the economy, and therefore creating another pillar for that economy to stand on and providing more jobs and more opportunities and more revenue to the Government than would otherwise be the case. Mr. Speaker, I have had the honour and the …
Because they did not take into consideration diversi fying the economy, and therefore creating another pillar for that economy to stand on and providing more jobs and more opportunities and more revenue to the Government than would otherwise be the case. Mr. Speaker, I have had the honour and the privilege to serve in every PLP Cabinet. So when I hear people continue to stand up and talk about our fiscal track record and distort it out of all proportion, I am compelled to remind them how we got to where we got to, because fiscal responsibility actually has two pillars. If your whole mantra in existence is f inance and business, then you do not care about s ocial programmes. You do not care about people. All you are interested in doing is trying to balance your budget off of the backs of people while they suffer . The track record of the first PLP Government positioned us and them to have some of the succes ses that they were able to enjoy.
An Hon. Member An Hon. MemberHear, hear!
Lt. Col. Hon. David A. BurchAnd I will give you some examples, Mr. Speaker. We did not spen d money frivolously around here to create debt. We bought fast ferries, which were criticised up and down the land when they were bought. And said, Oh no. That ain’t going to work. They all ride on …
And I will give you some examples, Mr. Speaker. We did not spen d money frivolously around here to create debt. We bought fast ferries, which were criticised up and down the land when they were bought. And said, Oh no. That ain’t going to work. They all ride on them now. And let one of them break down and see how much criticism you get. We bought buses, Mr. Speaker, lots of buses. And had a plan that we never had the type of chal-lenges that we are having with the buses now, and the same rule applied for garbage collection. We invested in infrastructure. We built a bridge, an extra bridge in Dockyard. And the most significant thing we built, Mr. Speaker, was Heritage Wharf.
Lt. Col. Hon. David A. BurchAnd so when they stand up and say 2017 was the best year in tourism that we ever had, and make no mention of the fact that first of all air arrivals were down significantly, and the rest of the tourism was from cruise ship passengers, if you did not …
And so when they stand up and say 2017 was the best year in tourism that we ever had, and make no mention of the fact that first of all air arrivals were down significantly, and the rest of the tourism was from cruise ship passengers, if you did not have Heritage Wharf you would not 1134 23 February 2018 Official Hansard Report
Bermuda House of Assembly have had the type of tourism result that you are clai ming success fo r now.
[Desk thumping]
Some Hon. Members Some Hon. MembersYes, yes.
Lt. Col. Hon. David A. BurchAnd, Mr. Speaker, that is in the past. I want to talk about our fiscal respons ibility today, because we have been in Government for about seven months. Now, Mr. Speaker, you would know very well, we did not pass a Budget when we came into Government in September we …
Lt. Col. Hon. D avid A. BurchOr one person. The Long Ranger, poor sight. But, Mr. Speaker, in those seven months, and we have about six weeks left to go, okay? And this represented a Budget that says what? We did not raise any money in the seven months we have been here. And I will …
Or one person. The Long Ranger, poor sight. But, Mr. Speaker, in those seven months, and we have about six weeks left to go, okay? And this represented a Budget that says what? We did not raise any money in the seven months we have been here. And I will just concentrate on my own Ministry, the one I am responsible for now. This Parliament, that Government approved seventy five million and eighteen thousand dollars for the Ministry of Public Works. This Premier Minister of Finance has reported in this Budget that we will spend $68.8 million, Mr. Speaker. A savings of $7 million. Okay? So if we are fiscally irresponsible, I suspect we would have been out spending money like drunken sailors in the last seven months. But let me just say this, Mr. Speaker. I get it. All right? I get it. They have convinced this country for 400 years that black people do not have any fiscal sense. Okay? You . . . yes, that is why you came back in here. Guilt is a terrible thing, Mr. Speaker.
[Laughter]
Lt. Co l. Hon. David A. BurchMr. Speaker, let me just . . . and they are all coming back! Mr. Speaker, let me just touch on 60/40 [rule], and I will be ever so brief here, because I think that most of my colleagues have actually addressed it. First of all, this country has been …
Mr. Speaker, let me just . . . and they are all coming back! Mr. Speaker, let me just touch on 60/40 [rule], and I will be ever so brief here, because I think that most of my colleagues have actually addressed it. First of all, this country has been taught, especially our constituency, that 60/40 [rule] was our salvation. With your indulgence, Mr. Speaker, I would just like to read one paragraph from the [Budget Statement] , and it is on 60/40 [rule] and it says, “Mr. Speaker, the origins of the 60/40 rule bear witness to the history of Bermuda and the systemic inequalities to which I referred earlier. The rule is the ultimate in protectionism, which runs counter to the claim of Bermudian entrepreneurship. If wealth is concentrated in a few hands, and those hands will never invest in an ything that competes with their vested interests, a true entrepreneur is confronted with a policy that essentia lly tells him or her: ‘We’ve got ours; good luck getting yours.’ ” Okay? Mr. Speaker, the only regard I have about what we say in this Statement about 60/40 [rule], per-haps the Premier Minister of Finance should have named it 51/49. Do you know why I say that, Mr. Speaker, because there is a bank down on Reid Street that is now majority owned by a foreigner 51 per cent. But that is all right, Mr. Speaker, because I do not have to declare my interest because I do not have any interest in it. But somebody in this House does.
Lt. Col. Hon. David A. BurchWell, not in t he House, but somebody who sits in this House does. So please do not try and hoodwink our people any more. They are going to get it, Mr. Speaker. Do you know why they are going to get it? Because this party has spent a lifetime …
Well, not in t he House, but somebody who sits in this House does. So please do not try and hoodwink our people any more. They are going to get it, Mr. Speaker. Do you know why they are going to get it? Because this party has spent a lifetime ensuring that the electorate is e ducated. We do not concentrate or rely on their ignorance. And do you know why they are not educated? Because they could see in four years of staying home, having canvassed to get into this House. Do you know what they said in the first year, 2012/1 3? They will deny that they did not vote in the last election. Do you know what they said in 2014? They would start the conversation by saying, I did not vote in the last election; but I won’t be making that mistake again because of the flogging that I am getting now. Okay?
An Hon. Member An Hon. MemberThat’s right.
Lt. Col. Hon. David A. BurchAnd I am not telling you something that somebody else told me. I am tel ling you what I heard on the doorstep myself, which is the reason why I stand in this place today, having had the confidence of the people of constituency 27 to send me here. Mr. …
And I am not telling you something that somebody else told me. I am tel ling you what I heard on the doorstep myself, which is the reason why I stand in this place today, having had the confidence of the people of constituency 27 to send me here. Mr. Speaker, there is one paragraph in the Reply on Public Works . . . I tore the page out, b ecause that is what it is worth. I mean, Mr. Speaker, really? First of all you say that you are going to hire more staff or we are going to move out of the private sector into government space. “How can we fit more people in a smaller space.” Well, it is quite simple, Mr. Speaker. First of all, all of the people that we have hired in the Minist ry of Public Works since I was assigned to this job actually do not need any space. They work outdoors. But even if they did need more space, Mr. Speaker, there is such a thing as you don’t
Bermuda House of Assembly do things the way you always did them. So that means you do not pu t people in the same space they used to have, you come up with less. And new space. You put them in 2018 space. And what that means is that you have something called an open- floor plan. I would invite the Opposition . . . I am sure they could get in easi er and quicker than we did. I took a team from my Ministry to tour PwC. Go do it. That is the template we are going to follow, Mr. Speaker. Mr. Speaker, in the Budget (and I am going to end in this vein), and I almost feel like I have to be a teacher, bec ause I have heard the criticism that this was not in the Budget, and that was not in the Budget, and that was not in the Budget. Mr. Speaker, there are four pages [sic] in the Budget about the Ministry of Public Works. And I can tell you, Mr. Speaker —
An Hon. Member An Hon. MemberFour paragraphs.
Lt. Col. Hon. David A. BurchFour paragraphs, sorry. Four paragraphs, my apologies. I can assure you, Mr. Speaker, that when we have done these four paragraphs, our work will not be done. Our work will not be done, Mr. Speak er. Ever ything is not in . . . first of all, there are some …
Four paragraphs, sorry. Four paragraphs, my apologies. I can assure you, Mr. Speaker, that when we have done these four paragraphs, our work will not be done. Our work will not be done, Mr. Speak er. Ever ything is not in . . . first of all, there are some surprises, because that is part of this process. And you also have to go through a number of hoops in order to be able to effect some changes. If you want to change the trajectory of what you are doing in a Ministry, you have to sometimes talk to unions and get their buy -in before you put it in a Budget Statement or a Throne Speech. But let me just say this, Mr. Speaker. This PLP Government is on the path of changing the tr ajectory of this country . That is what we were sent to do, Mr. Speaker. And I know that people have some challenges with how I say things. I am not worried, let not that . . . I am not worried. And in spite of the fact that they write vitriol to my leader and they write things on the blogs, I remain unanimous, Mr. Speaker, that we are on the correct path. And people should not be mistaken about how I say or do things. I say to people all the time, Mr. Speaker, do not confuse what comes out of my mouth, the Lord knows my heart.
An Hon. Member An Hon. MemberThere you go.
Lt. Col. Hon. David A. BurchAnd so my concern, and my interest, and my commitment to the people of this country is unwavering. So whatever people say and think and want to try, I invite them, as I did with some students a couple of weeks ago, is go and read my maiden speech. If …
And so my concern, and my interest, and my commitment to the people of this country is unwavering. So whatever people say and think and want to try, I invite them, as I did with some students a couple of weeks ago, is go and read my maiden speech. If you want to know why I am the way I am, I cannot do anything about it. I come by it naturally. But that does not mean that I do not care about this country, that does not mean that I am not going to work hard for this country, that does not mean that I am not going to make sure that in my r e-sponsibilities to whatever capacity, I am going to do what in my opinion is the best interest of the majority of the people of this country and the record will show that that is exactly how we operate. Mr. Speaker, I am pleased and honoured, and I think that the people . . . you just have to look at the response to the Budget. I mean, there was some suggestion that we out –UBP’d, the OBA, or whatever the term was. Cal l it whatever you will, the results are not going to look like that. What we are going to do as a result of that is to empower the vast majority of people in this country so that they can have a piece of the economic pie and participate in this country mor e than they have been able to do so before. Thank you, very much.
[Desk thumping]
The SpeakerThe SpeakerThank you, Honourable Minister. I now recognise the Deputy Premier. Hon. Walter H. Roban: Thank you, Mr. Speaker. To follow that is perhaps a task. But we are a team. And the magic that we have attempted to bring to this House is not singular, it is collective. Mr. Speaker, …
Thank you, Honourable Minister. I now recognise the Deputy Premier. Hon. Walter H. Roban: Thank you, Mr. Speaker. To follow that is perhaps a task. But we are a team. And the magic that we have attempted to bring to this House is not singular, it is collective. Mr. Speaker, this has been an interesting day. It has been an interesting day for a number of reasons. Last week we had the outstanding Budget State ment by the Premier. Congratulations to him on that. Today we are following in equal spirits, live on candid camera, by the Reply of the Leader of the O pposition, the Shadow Minister of Finance. But we were then followed a line of responses which, I must s ay, I began to visualise a situation that seemed to be tantamount to a TV programme, the long- running TV programme that for the past four years ran on the OBA network. A TV programme called “Do you r emember when?” Do you remember when? That seems to be the programme that we saw today. That long- standing series that lasted for four and a half years called, “Do you remember when?” And they want us to remember what happened before 2012. We seem to have heard it. It was episode 1, episode 2, up to about episod e 10. I think that is about how many of their group spoke. Do you remember when? That is what I seem to have been watching all day. And I looked, and I looked and I tried to find . . . okay, I remember when. But I am also trying to listen to find out wher e they would like to go. I did not hear that. Maybe I missed an episode. Somebody can tell me. Did I miss it? The episode of where we are going to go, or where we would like to go? I did not see it. I only heard [singing] Do you remember when? I did not he ar anything else. I am not going to try and sing. I promise you I am not going to try and sing.
An Hon. Member An Hon. MemberThank you. 1136 23 February 2018 Official Hansard Report Bermuda House of Assembly Hon. Walter H. Roban: But, Mr. Speaker, I was trying to figure out what the Opposition was trying to do. And, frankly, I began to think as I listened and did a bit of reading of the …
Thank you.
1136 23 February 2018 Official Hansard Report
Bermuda House of Assembly Hon. Walter H. Roban: But, Mr. Speaker, I was trying to figure out what the Opposition was trying to do. And, frankly, I began to think as I listened and did a bit of reading of the Opposition’s Reply . . . I began to remember when I was in high school and this seemed to be more like a glorified book report than actually a Budget Reply. I was looking for something more, and I was dis appointed, a book reply on our submission of last week. Because I did not see some of the flavour and content I know I had become accustomed to in the Opposition’s Reply, such as, What would I do if I were the Government? This Reply did not seem to cut it. And just as a simple exercise, I went back to the March 2013, first Reply of the then PLP Oppos ition, to see if maybe there was some comparison. Maybe I would find something. And this is really not just about “ Do you remember when?” , but is actually about maybe I will find some comparison in quality and quantity. And as I looked through the PLP’s 2013 Reply to this February 2018 and compare it, in the first 10 pages I saw in the PLP’s Reply multiple statements of where they wanted to country to go in alt ernative to the then Government, things like diversifying the economy. Imagine that. In 2013 the people were tal king about diversifying the economy. Commitment to a National Tourism Plan. Development to a Blue Economy. Remember those things? Ideas! Alternatives to the Government, proposing another way. Action plans to deal with Islamic finance. Looking to the Caribbean for diversification for business, in Central and Latin America. Commitment to national infrastructure development. Outfitting public buildings with renewable energy. Ideas. There was not one single new idea or idea proposed in this Reply. And that was just in the first 13 pages of the PLP’s Reply of that time. I did not look through the rest. I thought that was a bit too much for me to do. B ut I think the public deserves to have the quality of Reply of that nature. They did not get it t oday. Did not get it. A glorified book report. That is really . . . you know, I do not mean to be unkind or to push insult on the other side, but it is my crit ique. Take it or leave it. Mr. Speaker, that is my raw assessment of the Opposition’s Reply, because I am not going to be on my feet too long. What I would like to also highlight is despite the Opposition’s somewhat skepticism of the aspir ational PLP Budg et Statement, the business community seems to have had a different view. And my honourable colleagues have highlighted what their comment is today. But I ponder . . . perhaps they found a new love, because they seem to love our Budget. Like I said, maybe t hey finally found a new love. It is no longer the OBA/UBP party of business. Maybe the PLP. Maybe they are starting to blink eyes at the PLP. Well, maybe we can fall in love with them now. Maybe, maybe, maybe. And I say maybe, colleagues, be-cause I don’t w ant anybody to think that, you know, we have lost our way.
[Laughter]
Hon. Walter H. Roban: I do not want anybody to think we have lost our way.
Some Hon. Members Some Hon. MembersNo! Hon. Walter H. Roban: But hey, if they love us, hey, they love us. Maybe they love us. It doesn’t mean we have to love them back the same way. You know, you can have fans. You can have, you know, groupies. Maybe now the Chamber of Commerce and …
No! Hon. Walter H. Roban: But hey, if they love us, hey, they love us. Maybe they love us. It doesn’t mean we have to love them back the same way. You know, you can have fans. You can have, you know, groupies. Maybe now the Chamber of Commerce and ABIB and ABIR are the new PLP groupies. Maybe . . . I say maybe because I am not . . . you know , I live in the real world. I am just saying, Mr. Speaker, in the ver-nacular. I am just saying, because I have been hearing all this love from corners that I ain’t never heard love from before around this Budget because of the care and consideration and thoughtfulness and out-reach and meticulous and thoroughness that this Government took in putting it together, the level of consultation, the depth of intellectual treatment, the realism that was put into it, mindful of the country’s circumstances. That is wh at this Budget represents, the commitment to education, the commitment to entrepreneurship with the actual money given to ec onomic development. The commitment to health care, the commitment to our seniors, the commitment to diversifying the economy, looking at new ways of making money for the country, not stuck in the old regime. Consideration of the 60/40 rule and other things that can potentially make Bermuda different. Revision of the tax structure. Those are all territories that have never been ventured before by a Gover nment in the boldness and clarity that this Government has mapped it out. So I say to the House, perhaps many have found a new love. Certainly 60 per cent of the country has told us that they really like us. Maybe others are beginning t o like us even a little more. But I do not want anybody to forget that we are labour. We care for our people. Our first priority is our Bermudians, our working Bermudians, our working Bermudian families, our people who are looking to find opportunity. Thos e are the first people that we will be taking care of in this country. And that is who this Budget is fashioned to make a priority. They felt used. They felt betrayed. They felt left behind from 2012 to 2017. And their r esponse reflected that feeling. It is our desire as a Government to bring back their hope, to bring back their good optimism of the country. And yes , many a dream has to become an aspiration because that is how great things are made. Somebody has to aspire to something. If you do not have aspirations, then what do you have? It starts with a dream becoming an aspiration. An aspiration then
Bermuda House of Assembly becomes a plan. And hopefully a plan becomes mat erially successful, something tangible, something real that can be grasped, that can be taken and used to the benefit of you and those around you. That is the desire of this Government. Yes, we aspire. I do not run from the term “aspirational.”
An Hon. Member An Hon. MemberHear, hear ! Hon. Walter H. Roban: Because we aspire for som ething more and different for this count ry than what has been going on since 1968 and before. That is what we are here and have been put here to do, Mr. Speaker. Those on the other side …
Hear, hear !
Hon. Walter H. Roban: Because we aspire for som ething more and different for this count ry than what has been going on since 1968 and before. That is what we are here and have been put here to do, Mr. Speaker. Those on the other side can either get on that train or stay at the stop. It is very clear that this country voted for the future. T hey rejected the past when they rejected a certain party on the 18th of July. They have put their future trust in this party and this Government. And the Budget of 2018/19 reflects their wishes, their aspirations, their hopes. And what we are trying to create is their opportunity for a better Bermuda. Thank you.
The SpeakerThe SpeakerThank you, Honourable Deputy. Does any other Member wish to speak? Premier, you can close us out. Hon. E. David Burt: Good evening, Mr. Speaker.
The SpeakerThe SpeakerGood evening. Hon. E. David Burt: How long do I have, Mr. Speaker, as the person closing out the debate?
The SpeakerThe SpeakerTwenty minutes. Hon. E. David Burt: Twenty? That’s it? [Laughter]
The SpeakerThe SpeakerI could shorten it if you like. Is 10 good enough? Hon. E. David Burt: Mr. S peaker, I see everyone is very excited that you plan on keeping me to my 20minute time limit. So I will mark what you said and make sure that can enter into Committee …
I could shorten it if you like. Is 10 good enough? Hon. E. David Burt: Mr. S peaker, I see everyone is very excited that you plan on keeping me to my 20minute time limit. So I will mark what you said and make sure that can enter into Committee of Supply by 9:50 pm. Mr. Speaker, before I begin I would like to recognise the Honourable Opposition Leader and Shadow Minister of Finance, understanding and recognising the difficulty of doing a Budget Reply in the space of one week. And I would like to at least recognise her for having a slightly less acrimonious Reply than her predecessor, because we remember what the Throne Speech Reply was. At least her Reply in some measures tried to be constructive in certain places. And that should, at least, be recognised. And I think that the entire country should want to recognise that in certain places where at least the Opposition can mention where they can work together and where they can support certain items. So that is accepted. But, Mr. Speaker, what I would say is that li stening to this debate one thing becomes very clear. And it is exactl y as I said when we closed out the d ebate on the Throne Speech. They are the past, and we are the future. They are the party of old ideas; we are the party that is looking to move this country into the 21 st century and beyond. What is interesting, Mr. Speaker, is that this debate itself, and this Budget putting together, and this Budget Statement and the policies of which we spoke about, Mr. Speaker, as I said in my intro last week, it was a team effort. It was an effort of not only the Ministry of Finance, not only the Cabinet, but our entire parliamentary caucus, those of us here, and those of us in another place. And we took some time on Friday when we were out of session, and on Saturday, to talk about what our economic plans would be for the future, to talk about what it was that we will do, and to have those conversations to educate ourselves, to have those discussions and to be real about the challenges that we as a country face, so that when we came here during this Budget session we would be unified in our stance. There would be no surprises because we know what there was.
Some Hon. Members Some Hon. MembersYes. Hon. E. David Burt: And we have priorities.
Some Hon. Members Some Hon. MembersYes. Hon. E. David Burt: But as Colonel Burch said, the responses are interesting. Some H on. Members: Yes. Hon. E. David Burt: And it was a very funny joke that the Colonel made on Tuesday, outside of the room, not inside of the room, so I am not breaking …
Yes. Hon. E. David Burt: But as Colonel Burch said, the responses are interesting.
Some H on. Members: Yes. Hon. E. David Burt: And it was a very funny joke that the Colonel made on Tuesday, outside of the room, not inside of the room, so I am not breaking any Cab inet protocol, but he said he was going to have me tailed because he was a little bit curious about who I have been hanging out with.
[Laughter]
Hon. E. David Burt: Because if [Sir] John Swan and Bob Stewart and everyone else is praising me then something must be up.
[Laughter and inaudible interjections] Hon. E. David Burt: But, M r. Speaker, when I heard an interpolation from the Honourable Member for constituency 22 earlier today, it all made sense. It all made sense. 1138 23 February 2018 Official Hansard Report
Bermuda House of Assembly And before I get to that, Mr. Speaker, I want, with your permission, to read something. In Latin it is called (an d my Latin is not very good so I will try to pronounce it) “ divide et impera. ” Divide and conquer. And if I may, Mr. Speaker, with your allo wance, divide and conquer, or divide and rule “1in pol itics and sociology is gaining and maintaining power by break ing up larger concentrations of power into pieces that individually have less power than the one impl ementing the strategy. The concept refers to a strategy that breaks up existing power structures, and especially prevents smaller power groups from linking up, causing rivalries and fomenting discord among the people.” (end quote) And so it all made sense, because when an Honourable Member on this side got up and said something, what did we hear from the Honourable Member for constituency 22? “Oh, doesn’t t hat make you suspicious?”
An Hon. Member An Hon. MemberOoh! [Inaudible interjection] Hon. E. David Burt: Oh yes you did, Honourable Member for constituency 22. And here is the thing —
The SpeakerThe SpeakerPremier, you mind yiel ding for a point of order? POINT OF ORDER
Hon. Dr. E. Grant GibbonsI have to admit I am getting on in years, but I certainly do not remember sa ying “Doesn’t that make you suspicious?” [Inaudible interjection]
The SpeakerThe SpeakerWe will continue on. Hansard will prove out when it is produced. Continue on. Hon. E. David Burt: Mr. Speaker, we heard the interpolation on this side. And we all heard it. But it makes sense, because we saw it from Bob Stewart. And then we saw it f rom …
We will continue on. Hansard will prove out when it is produced. Continue on.
Hon. E. David Burt: Mr. Speaker, we heard the interpolation on this side. And we all heard it. But it makes sense, because we saw it from Bob Stewart. And then we saw it f rom Vic Ball. And then today we got it from the man himself, E.G.G.G. the second.
[Laughter]
Hon. E. David Burt: All right.
1https://en.wikipedia.org/wiki/Divide_and_rule We got it, three “Gs.” EGGG. Mr. Speaker, it is very simple. The old tactics will not work, because unlike that side, Mr. Speaker, this side of the House and those in Robin Hood corner are aware of the strategy of this party and are not go-ing to be distrustful because we know where it is that we are going. And everything that has listed inside of this Budget came from our platfor m. And in case the Members opposite do not remember, that platform won a landslide at an election. And that platform spoke about the fact that we will revise the 60/40 rule to provide more access to capital for entrepreneurs who did not have it. So, for us, there are no surprises, Mr. Speaker. But for that side there is. And here is the thing, Mr. Speaker. The reason why the divide and conquer will not work is because we know where our ethos lies. And inside of this Budget Statement where we talked about how we are going to transform this economy, and how we are going to make sure that the majority black populace inside this country who have been marginalised for so long will have access to economic empowerment, we are serious about it, Mr. Speaker. Now, does that mean that my cousins, like Zane, will have less? No. That means that we all will have more, Mr. Speaker, because if you have an un equal economy that holds back economic growth. When you have a less unequal economy, when you have less income inequality, when you have more broad- based economic activity, you have greater ec onomic growth. And that has to be our mission, Mr. Speaker. So, we talked about the entire Budget. It is about economic growth. So when we hear the ques-tions and the statements talking about how many jobs you are going to create, what are the specifics . . . I am not going to fall into that trap, Mr. Speaker. The results will speak for themselves, whether it is the work being done by the Minister of Public Works when it comes to infrastructure, whether it is the work being done by the Minister of National Security when it comes to FinTech and innovation initiatives, or whet her it is the work being done by the Minister of Health for making sure that we have additional options for our ageing population. We will create jobs. We will create economic activity, and we will do it in a manner that benefits the many and not the few. But, Mr. Speaker, do you know why there was a positive response by some in the business comm unity? Not by t hose that have ulterior motives. It is because for four years they had a Government that did not listen to anybody. Did not listen to the people, and told business that they knew what was best. Now, the fact of the matter is, Mr. Speaker, that there are a lot of things inside of this document that many businesspeople will not agree with. But here is what they will resp ect, Mr. Speaker: They will respect a Government that will take the time to con-sult, that will decide to put down their policies and
Bermuda House of Assembly have a full and frank conversation. Confidence is built inside of an economy when there are no surprises. Confidence is built inside of an economy wh en people can trust the Government to be fair and balanced in their activities. And that is what we placed in thi s Budget Statement, Mr. Speaker. So, the responses from the business comm unity do not necessarily have a dog inside the political fight. That is because they have a Government that is willing to consult, that is willing to listen, and that is willing to a dopt a policy saying that the country works better if we are all rowing in the same direction. But you know what is interesting, Mr. Speaker? The Opposition Leader seemed to take credit for everything inside of this Budget. They will even take credit for the fact that we are not increasing the debt ceiling. Now, Mr. Speaker, here is what is funny. When their Budget predicted, that would be $2.47 bi llion, and when we came in $50 million lower, how is that their success? When we came into office three months into the fiscal year, and as the Honourable Minister for Public Works just said, when we managed to save money, more money than they had expected to save, how are you claiming credit for that? Mr. Speaker, the fact is that the reason why there are people inside the business community that seem to be in a certain way relieved with the Budget, it is because exactly like the Minister of Public Works said, for a long time it seemed as though people of this country have bought into the silly notion and mental conditioning that we on this side cannot manage money. And now when all of a sudden, they are like . . . Oh crap. They are not raising the debt ceiling. They are spending less than the OBA would have spent. Oh, the debt is going be $50 million lower. T hat is what it comes from. But here is the thing, Mr. Speaker. We are not stopping there. We are not stopping there because we are going to do more to grow the economy and to make the investments. So while at the same point in time you give with one hand and take away with the other, we hear the Honourable Opposition Leader talking about the fact that, Oh, the balancing the budget target is going to be pushed back way down the road . . . and all the rest. The fact of the matter is, Mr. Speaker, that the projections by the former Government were wholly unrealistic. And to say that they were going to raise $20 million more than we said we were going to raise this year, to say they are going to spend $20 million less on the current account and $20 million les s on the capital accounts is a falsehood, Mr. Speaker. It is impossibility. If they would have done that , we would not have to worry about buses being cancelled and trash going to once a week. There would have been no bus collection [sic] or trash collecti on.
An Hon. Member An Hon. MemberThat’s right. Hon. E. David Burt: It would have been impossible, especially when the single largest capital account spending thing that exists is the $6.3 million for a “Grant Island. ” Oh sorry, island of the Honourable Member for constituency 22.
An Hon. Member An Hon. MemberThat’s right. Hon. E. David Burt: As someone said earlier, Captain America! [Laughter] Hon. E. David Burt: Now, Mr. Speaker, there was a question as to whether we would follow the former Minister’s glide path. The answer is very simple, Mr. Speaker. No, we will not. We will set out …
That’s right.
Hon. E. David Burt: As someone said earlier, Captain America! [Laughter]
Hon. E. David Burt: Now, Mr. Speaker, there was a question as to whether we would follow the former Minister’s glide path. The answer is very simple, Mr. Speaker. No, we will not. We will set out own path, because the election results did not send this Minister of Finance up here to deliver a Bob Richards’ austerity budget. They sent me up here to deliver a PLP Budget that will invest i n the priorities of which we have. And those priorities are education, those priorities are the social pr ogrammes which we have to do, those priorities are health and taking care of our people, and those prior ities are entrepreneurship so that we can creat e economic empowerment where it did not exist before, Mr. Speaker. And that means that some Ministers had to make sacrifices. And it was not pleasant. But we got to a place which is right. Now, Mr. Speaker, as I said, I could spend all day talking about w hat is wrong with the Reply. I could. But they are the past and we are the future. But it is just one thing that is illustrated in a single space— the lack of vision and understanding on that side, Mr. Speaker. Because when the comment comes inside of the B udget Reply and some of the comments from this side, the comment from the Opposition Leader actually said, What will the Government do about the (and I quote) “bitcoin industry?” (end quote).
[Laughter]
Hon. E. David Burt: Mr. Speaker, there is no such thing as a “bitcoin industry.” And to say a “bitcoin i ndustry” demonstrates the lack of depth on this subject by the Opposition. Now, Mr. Speaker, I understand and reco gnise that it is a hard issue to get your head around. I consider myself as someone who knows IT relatively well. And my understanding of blockchain is just about at 20 per cent right now. It is not easy to get. But at the very basic level, we have to understand that the scaremongering that we see, that the Chicken Little, the sky is falling, that all the rest, Oh, be careful; oh don’t do this , is not necessary, Mr. Speaker. If you want to learn about it, see the Minister of National S ecurity. Come see me. Get involved with the type of things which we are doing to build this industry here 1140 23 February 2018 Official Hansard Report
Bermuda House of Assembly so you can have a better understanding. Not only do we have regulators working on this, not only do we have lawyers working on this, not only do we have people from of an international calibre working on this, but we are making the relationships to ensure that this works for Bermuda. Mr. Speaker, the possibilities could mean what the insurance industry is to Bermuda now. And if we do not act, we could lose our chance. And while we sit here and squabble our competitors are moving. We will not be deterred, Mr. Speaker. We will not be deterred by the scaremongering. We will not be d eterred by those who do not understand, but those who want to raise fear where fear is not necessary or needed. This Government has proven over the time it has been in office that it will act in a prudent fashion and will always keep the best interest of the majority of the people at heart, Mr. Speaker. And it is som ething that we have done. And it is something that we will continue to do. So, whether it is empowering our people, cr eating competition to lead to lower prices, educating and retraining our public, or investing in our health care and our seniors to make sure they can live s ecurely in their future, this Budget Statement and this budget document represents the fulfilment of our dream and our mission as outlined in our platform, and is what will make sure that what the people of this country voted for will be put into effect starting this year, Mr. Speaker. Thank you.
[Desk thumping]
The SpeakerThe SpeakerThank you, Mr. Premier. That brings us to the close of the debate on the Budget. And that will lead us into your next stage so we can move forward. Hon. E. David Burt: Thank you, Mr. Speaker. I move that the House do now resolve into Committee of Supply …
The SpeakerThe SpeakerThank you. Deputy [Speaker], can you take the chair. House in Committee at 9:49 pm COMMITTEE OF SUPPLY ESTIMATES OF REVENUE AND EXPENDITURE FOR THE YEAR 2018/19 [Hon. Derrick V. Burgess, Sr., Chai rman]
The ChairmanChairmanMinister of Legal Affairs and Public Works, would you like to move the Heads? Hon. E. David Burt: Mr. Chairman, I now move Heads 87 and 04 for the Ministry of Legal Affairs. Mr. Chairman. I move that the Committee rise and report progress ask for leave to sit again …
The ChairmanChairmanAny objections to that? There appear to be no objections. We will . . . okay, we rise and report progress. [Motion carried: The Committee of Supply agreed to rise and report progress , and sought leave to sit on Monday, 26th February 2018. ] House resumed at 9:50 pm …
The SpeakerThe SpeakerAll other matters have been carried over. Premier? ADJOURNMENT Hon. E. David Burt: Thank yo u, Mr. Speaker. I move that the House do now adjourn until Monday, February 26th.
The SpeakerThe SpeakerDoes any Member wish to speak to that? No Member wishes to speak to that? The House now stands adjourned. [Gavel] [At 9:51 pm, the House stood adjourned unt il 10:00 am, Monday, 26 February 2018]