May 2, 2025

Thank you.
The second is in the name of the Minister of
Tourism [and] Transport, Culture and Sport.
Minister Darrell.

TOURISM INVESTMENT
(GROTTO BAY RESORT AND SPA) ORDER 2025

Hon. Owen Darrell: Thank you, Mr. Speaker.
I have the honour to attach and submit for the
consideration of the Honourable House of Assembly the Tourism Investment (Grotto Bay Resort and Spa)
Order 2025 proposed to be made by the Minister responsible for Tourism under section 3 of the Tourism
Investment Act 2017, together with written agreement of the Minister of Finance in exercise of the power
conferred by section 5 of the Tourism Investment Act
2017.

Would you like to do your second one?

TOURISM INVESTMENT
(HILLCREST BOUTIQUE HOTEL) ORDER 2025

Hon. Owen Darrell: Thank you, Mr. Speaker.
I have the honour to attach and submit for the
consideration of the Honourable House of Assembly
the Tourism Investment (Hillcrest Boutique Hotel) Or-der 2025 proposed to be made by the Minister responsible for Tourism under section 3 of the Tourism
Investment Act 2017, together with written agreement
of the Minister of Finance in exercise of the power
conferred by section 5 of the Tourism Investment Act
2017 .

Okay.
Premier.

Hon. E. David Burt: Thank you, Mr. Speaker.

CONDOLENCES

Hon. E. David Burt: Mr. Speaker, before I begin my
speech, on behalf of the whole House I would like to
express our condolences to you and to the Honourable Member f or Warwick West and to your entire family on the passing of your beloved wife, Ms. Miranda
Lister.

Thank you.

Hon. E. David Burt: She was a woman of Christ, a
lovely individual, always kind to all persons . And I
know that she will be missed.

DOUBLE MURDER IN BERMUDA
Hon. E. David Burt: Mr. Speaker, further before I
start into the scheduled business today, I am compelled to address the tragic and senseless events of
last night in Somerset. The gunshots that rang out
shattered not only the quiet of the evening, but took
the lives of two people. Two families this morning are
confronted with unimaginable loss. At a time of such
tragedy, our community responsibilities support them
and surround them with love and comfort.
As I have indicated to the Minister of National
Security, the Bermuda Police Service has the Government’s full support. And I likewise urge those who
have knowledge of this incident to provide that infor-mation to police as part of the ongoing investigation.
It is understandable that emotions may be raw
at this time, but there is no place for retaliation. The police have a job to do, and I am confident that, with
the support of the community, they will work to appre-hend those responsible. This is a time for unity, a time to speak peace over a troubled situation and a time to
lift up two families whose lives are changed forever . Mr. Speaker, if you will now allow me, I would
like to deliver the annual Budget Statement.

Go ahead.

BUDGET STATEMENT IN
SUPPORT OF THE ESTIMATES OF
REVENUE AND EXPENDITURE 2025/26

FAIRNESS IN ACTION —BUILDING A BERMUDA
WHERE EVERYONE BENEFITS

Introduction

Hon. E. David Burt: Mr. Speaker, in a time when the
world is uncertain, divided and fractured, we meet
again in this Honourable House to carry out one of the
oldest and most important duties of parliamentary governance: the presentation of the Estimates of
Revenue and Expenditure.
This, Mr. Speaker , is the first budget of this
new parliamentary term, delivered after the Progressive Labour Party earned a fresh mandate from the
people of Bermuda on the 18
th of February 2025. But
today is more than a routine exercise . And in my remarks I plan to share with Honourable Members and every person living in Bermuda the good fiscal news
that impacts all of us who call Bermuda home.
Mr. Speaker , we deliver this budget reflecting
on where we were just five years ago and how far we
have come. On the 2
nd of May 2020, the COVID -19
shelter -in-place order was lifted . Our country was
emerging from lockdown, shaken by a global pandemic that threatened every institution, every household
and every person who calls Bermuda home. In that fragile moment, this Government made a promise: to
rebuild Bermuda with Bermudians at heart, to chart an
ambitious recovery and to do so not with austerity, but
with investment in our people.
We committed to an Economic Recovery Plan
informed by the best minds in Bermuda. We stuck to
that plan. And today we stand here with the results:
• four consecutive years of strong GDP growth;
• record numbers of persons and Bermudians
employed in international business;
• the lowest unemployment in 50 years;
• record investments in affordable housing;
• the renovation of our largest hotel, Fairmont
Southampton, now underway; and, yes, Mr.
Speaker,
• a balanced budget!

[Desk thumping]

Hon. E. David Burt: Mr. Speaker , these are not political talking points. These are facts. They are the results of hard choices, clear leadership and a focus on
rebuilding Bermuda with Bermudians at heart. Gone

B ermuda House of Assembly are the days of persistent deficits. Yes, we still carry
debt. But now, for the first time in a generation, we are
positioned to repay that debt, build up our reserves and make investments for the future amidst a time of global uncertainty.
Mr. Speaker, this is the eighth b udget of this
Progressive Labour Party Government since returning
to office in 2017, and through hurricanes, economic headwinds and a once- in-a-century pandemic, this
Government has stayed true to its mission: fairness, opportunity and dignity for all Bermudians.
This mission is why we cut payroll taxes for
86 per cent of Bermudians. It is why we froze fuel
prices and slashed energy taxes to protect household budgets. It is why we invested in our children through education reform and in our seniors through stronger expansion of FutureCare. These are not slogans. They are the hallmarks of a Government that governs
with fairness as our core value.
Mr. Speaker, Bermuda has been tested repeatedly, and we have prevailed. We stood firm in the face of new economic substance requirements that threatened our international business sector. We remained resilient in the face of 40- year-high global inflation that increased prices everywhere. Each time, this Government responded not with fear, but with action. And each time, Bermuda came out stronger and Bermudians were protected.
Now, Mr. Speaker, we face new global tests.
The postwar global order that has underpinned our economy for the last 80 years is shifting. Historic alliances are being strained; trust in demo-cratic institutions is under attack; even the ideals of free trade and liberal democracy are being questioned in global capitals once thought unshakable. And
through it all, misinformation spreads faster than facts,
leaving citizens around the world fearful, divided and distrustful.
These are serious times, Mr. Speaker , and
serious times demand leadership that is focused on
ensuring that Bermudians are at the centre of all that
we do. As we debate this budget in the weeks ahead,
we must keep the broader global backdrop in view.
Bermuda, though small, is not insignificant.
The last five years —and the 400 that preceded
them —have also shown that Bermuda has always
been resilient. Global headlines may have many wor-ried, but the work of governance is to ensure that we are prepared for whatever may come our way.
Mr. Speaker , this b udget sets the course for
the next stage of our Island’s journey. It supports growth; it protects the vulnerable; and it invests in education, health care and infrastructure. And it does all
of this while building a budget surplus to repay our debts and prepare for whatever may lie ahead.
Today, Mr. Speaker , it is my hope that in this
Statement I can offer comfort and confidence to our
people —comfort that they have not been forgotten
and will benefit from Bermuda’s success, and confi-denc e in this Government ’s ability t o continue leading
this I sland through turbulent gl obal w aters.
Economic Review
Hon. E. David Burt: Mr. Speaker, the last year has
been shaped by growing uncertainty from shifting geopolitical alliances and economic realignments, to
trade tensions that threaten to upend long-s tanding
global supply chains. At home, our people continue to
feel the weight of higher costs of living even as our
economy shows signs of sustained growth and resilience.
Mr. Speaker, before I get to the details of this
year’s budget, I will provide an overview of the National Ec onomic Report for 2024 tabled in this Honourable House earlier today, which looks at the evolving global [economic] environment and its implications
for Bermuda. The report also reviews our loc al ec onomy, which—t hough not immune to external pressures—c ontinues to outperform regional peers. This
performance has been underpinned by strong job
growth, low inflation, record levels of employment in
international business and a rebounding tourism sector.
GLOBAL ECONOMIC REVIEW
Hon. E. David Burt: Mr. Speak er, even prior to the
recent upheaval in global markets due to international
trade tensions, the year 2024 presented a range of
global challenges. Geopolitical tensions, persistent
inflationary pressures, volatility in food and energy
markets, and the ongoing effects of past shocks s uch
as the COVID-1 9 pandemic and the Russia–U kraine
war have continued to impact global economic growth.
The International Monetary Fund es timates
that global growth is projected to slow from 3.3 per
cent in 2024 to 2.8 per cent in 2025, before picking up
slightly to 3.0 per cent in 2026. In advanced economies, growth is expec ted to fall from 1.8 per cent in
2024 to 1.4 per cent in 2025 and 1.5 per c ent in 2026.
Emerging market and dev eloping economies are also
forecasted to decelerate from 4.3 per cent in 2024 to
3.7 per cent in 2025 before rising modestly to 3.9 per
cent i n 2026.
Mr. Speaker, global inflation has fallen fas ter
than anticipated with recent monthly readings from
2025 nearing pre-p andemic levels. Global inflation is
projected to ease from 5.7 per cent in 2024 to 4.3 per
cent in 2025 and 3.6 per cent in 2026. This decline
has been supported by easing energy prices and a
softening of labour mark et pres sures. Faster disinflation may c ontribute to looser financial c onditions,
which could support global growth.
However, Mr. Speaker, the downside risks are
significant. The escalation of global trade tensions
through higher tariffs may have a profound effect on
the global economy.
262 2 May 2025 Official Hansard Report

Bermuda House of Assembly Since February this year, the United States
has announced multiple waves of tariffs on key trading
partners, some of which have responded with countermeasures. As a result, major economies including
the US, China and Canada are now increasingly en-gaged in tariff -based [trade ] disputes that are reshaping global commerce. These protectionist measures , if
maintained, risk driving up the costs of goods and ma-terials, inflating consumer prices and distorting well -
established supply chains. As tariffs climb, businesses are faced with greater uncertainty and are responding with caution. This directly slows trade activity, curtails
capital expenditure and drives up costs that are inevitably passed on to consumers, raising prices, eroding
purchasing power and discouraging investment —
risking a broader global slowdown.
Global forecasts reflect the expected economic slowdown across major economies. While the United States has demonstrated resilience in recent
years, growth is projected to slow from 2.8 per cent in
2024 to 1.8 per cent in 2025, and further to 1.7 per
cent by 2026. And of course, Mr. Speaker, first -
quarter GDP for the US was just rec orded as contracting. In China, growth is expected to soften from
5.0 per cent in 2024 to 4.0 per cent in 2025 and 2026.
Canada is also expected to experience a moderate decline [with GDP growth] easing from 1.5 per cent in
2024 to 1.4 per cent in 2025 before rising slightly to
1.6 per cent in 2026.
Mr. Speaker , as the global economy continues to absorb the effects of past monetary tightening
which led to increasing interest rates, many countries
face mounting debt burdens and increased refinancing pressures. These financial vulnerabilities are fur-ther exacerbated by persistent geopolitical tensions
and the rise in protectionist measures.
Together, these forces risk disrupting supply
chains, fuelling price volatility, particularly in energy
and food, and slowing the pace of global recovery.
Navigating the year ahead will require a careful balance: managing global inflationary pressures ;
strengthening financial resilience; and advancing investments to boost productivity and support inclusive,
long-term economic growth.

BERMUDA’S ECONOMY
Hon. E. David Burt: Mr. Speaker , I will now turn my
focus to our local economy.
Bermuda’s gross domestic product [ GDP ], the
main measure of economic growth, is estimated to
have expanded in real terms between 4.5 [per cent]
and 5.0 per cent in 2024. This positive momentum
reflects the strength of our international business sector and the continued recovery in tourism supported
by robust job growth, rising employment income, in-creased visitor arrivals and spending, and strong foreign currency earnings. Mr. Speaker , the international business sector
remains the main driver of economic growth. In 2024,
there were 766 new international companies and
partnerships registered. The sector supported 5,047
jobs, an increase of 120 posts , or 2.4 per cent , compared to the prior year. Total employment income in
the sector further rose by 12.3 per cent , or $195.9 million, contributing significantly to the broader rise in
national income.
In 2020 , for the third consecutive year, there
is a record number of Bermudians employed in the international business sector, clear evidence that the
policies of this Government continue to create inclusive opportunities and ensure that Bermudians benefit
directly from the growth in international business.
Mr. Speaker , Bermuda’s t ourism sector also
continued to recover. Air visitor arrivals increased by 9.6 per cent and cruise arrivals by 1.9 per cent . Air
visitor spending surged by 22.0 per cent to $416.5
million, exceeding pre- pandemic levels. Though cruise
visitor spending declined by 7.0 per cent , the overall
impact of tourism remains positive. This rebound has also had a positive effect on the job market, particularly in the accommodation and food services sector,
which recorded a net increase of 81 jobs , or 2.2 per
cent, compared to 2023, bringing total jobs in the sector to 3,780.
Employment across the country improved in
2024. The total number of jobs filled increased by 471
posts , or 1.4 per cent , marking the third consecutive
year of job growth. Gains were primarily observed in
the international business, administrative and support
services, and accommodation and food services sectors. These three areas alone accounted for half of all
new jobs created. In contrast, declines were noted in
public administration, education, and the utilities sectors. Unemployment continues its downward trend
and was recorded at 1.6 per cent in May 2024, which
is lower than the rate of 2.5 per cent from a year prior
and, Mr. Speaker, is the lowest since 1970. Though
this is a positive development, a tight labour market can contribute to wage pressures across the economy. It is therefore essential that Government policy
ensures a sufficient labour supply to sustain continued
economic growth.
Employment income, one of the primary drivers of household consumption, grew by 8.0 per cent ,
or $326 million, totalling $4.39 billion in 2024. This growth contributed to a rise in personal consumption, which stood at $4.1 billion, reflecting a 2.9 per cent
increase. Total gross turnover in the retail sector was estimated at $1.27 billion, an increase of 2.7 per cent
compared to 2023.
Mr. Speaker , turning to the c onstruction sector, the value of new projects started fell by 18.2 per
cent to [$164.7 ] million. However, residential construction remained a bright spot, with a 50.7 per cent increase in completed dwelling units, particularly twobedroom and studio apartments. The total estimated


Bermuda House of Assembly value of work put in place remained relatively stable at
$108.6 million. It is vital that the Government streamline planning processes to ensure that more projects
can commence to support growth in the construction
sector in the years to come.
Mr. Speaker , inflation eased in 2024, averaging 1.9 per cent compared to 3.3 per cent in 2023.
Declines in transport and foreign travel costs helped keep overall inflation lower, despite sectoral increases
in fuel, food and rent.
While inflation has fallen, Bermuda’s external
position remains strong. The current account surplus
rose to $1.69 billion in 2024 from $1.36 billion in 2023,
representing 18.8 per cent of GDP. This was driven by
increased employee compensation, higher business services exports and stronger investment income. The
international business sector alone generated $2.87 billion in foreign currency receipts, up 9.4 per cent
from 2023. The t ourism sector contributed an additional $522 million in foreign currency receipts, up 3.3 per cent compared to 2023.
Mr. Speaker , Bermuda’s economic performance over the past two years highlights its relative
strength and effective macroeconomic management
compared to both advanced economies and regional peers. In 2023, Bermuda recorded real GDP growth of
4.9 per cent , outperforming the U nited States at
2.9 per cent ; Canada at 1.5 per cent ; the U nited Kingdom at 0.4 per cent ; and developing economies
around the world, which were measured at 4.7 per
cent.
In terms of inflation, Bermuda posted the lowest inflation rate among the group in 2024 at 1.9 per
cent, compared to 3.0 per cent in the U nited States ,
2.4 per cent in Canada, 2.5 per cent in the U nited
Kingdom and 7.7 per cent in developing economies.
The lower inflation in Bermuda compared to our peers
can be attributed to the measures that th is Government has implemented to reduce taxes as a response to 40- year-high global inflation. These indicators underscore Bermuda’s macroeconomic stability, sound economic policy and strong growth momentum heading into 2025.
Mr. Speaker , while the domestic outlook remains positive, we are not immune to external risks that continue to shape the global economic environment. The recent imposition of higher tariffs between
major economies, including the United States and its
trading partners, may lead to increased costs in Bermuda. If realised, these added costs will place upward
pressure on prices and strain business margins, constraining long- term growth.
Elevated [global ] trade costs, combined with
high interest rates, are weighing on economic activity in key partner countries, particularly the United States.
Slower growth in these markets can have spillover effects on Bermuda, including reduced tourism arrivals, lower levels of foreign investment and potential
disruptions to vital supply chains —all of which may hinder our economic performance. Geopolitical instability, particularly in Europe and the Middle East, could
further impact global energy prices, while ongoing
trade disputes may dampen investment and reduce
consumer spending worldwide. These risks reinforce the need for continued prudent fiscal management to
protect Bermuda’s economic stability.
Mr. Speaker , recent economic performance
leaves the jurisdiction well placed to meet these global
headwinds. Through sound and prudent fiscal policy,
investments in infrastructure and the implementation of our Economic Development Strategy, we will continue to protect Bermuda’s economic interests and
ensure that inflationary pressures and external shocks
do not erode the gains that we have worked so hard
to achieve.

BERMUDA’S ECONOMIC
DEVELOPMENT STRATEGY
Hon. E. David Burt: Mr. Speaker , Bermuda’s Economic Development Strategy 2023– 2027 provides a
strategic framework to guide Bermuda toward sustainable economic growth and development. Since its
launch, the Ministry of Economy and Labour has been
focused on advancing key initiatives aligned with the
strategy’s five strategic priorities:
• Retaining and expanding existing and future
international businesses within Bermuda.
• Attracting new businesses and promoting investment opportunities.
• Fostering entrepreneurship and the development of small businesses.
• Ensuring the continued execution of the Economic Recovery Plan.
• Investing in our people and our workforce.
Mr. Speaker , I will cover some of the key highlights, but during the debate in this House in the
weeks to come, the Honourable Minister of Economy and Labour will share more details on the implementation of Bermuda’s Economic Development Strategy.
Mr. Speaker , under the priority of local and
international business retention and expansion, important progress has been made. The Economic Development Department has completed the d raft Action
Plan for the establishment of a one- stop permitting
system for maritime tourism businesses, which was
published under Goal 4 of the Bermuda Ocean Prosperity Plan.
The Bermuda Economic Development Corporation has been progressing development opportuni-ties across Bermuda’s economic empowerment zones
[EEZs] . The Urban Development Authority [ UDA ], as
the lead ing body driving development and investment
interest in the EEZs, received formal applications for
two active development projects being considered
under the Approved Residential Scheme— one for a
65 residential unit development and the second for a
28 residential unit development. This interest can be
264 2 May 2025 Official Hansard Report

Bermuda House of Assembly partly attributed to the Bermuda Government’s announcement of an aggregate $50 million government
guarantee to jump- start residential development in the
Island’s economic empowerment zones.
In tourism, the calendar of events for 2024
was filled with a diverse offering of events and experiences that contributed to a 15 per cent increase in
leisure air visits and a 34 per cent increase in visitors
attending sporting events. Since the beginning of
2024, five tourism investment orders for hotel projects
have been approved, representing investor confi-dence in Bermuda’s tourism future.
Meanwhile, Bermuda continues to enhance its
reputation as a global leader in FinTech, supported by our robust regulatory framework for digital assets and
continued international exposure at major FinTech
events. Technology education initiatives are continu-ing, supporting workforce development through
grants, training programmes and annual events that
highlight FinTech opportunities for Bermudians. One
such one is happening next week, Mr. Speaker, right here in town.
Mr. Speaker, attracting new business and
promoting investment continues to be a key focus. The Bermuda Business Development Agency has transitioned into an investment promotion agency with
continuing outreach to attract investment. The Registrar of Companies has amended its policy to allow unrestricted mixed- use development on corporate
landholdings. And in addition, revised Family Office legislation is being finalised and will be tabled in this session, further supporting Bermuda’s efforts to attract
individuals of high net worth and related business opportunities.
Mr. Speaker, fostering entrepreneurship and
supporting the growth of small businesses are critical parts of the strategy. The Bermuda Economic Devel-opment Corporation [BEDC] continues to deliver results. In 2024, a total of 22 entrepreneurs completed
its Enterprise Bermuda Incubator and Accelerator
programmes, while over 1,200 students have been
engaged through youth outreach initiatives, inspiring
the next generation of entrepreneurs. Educational
programmes trained 96 participants through multi -
week courses and a further 560 through seminars and
webinars. In addition, the BEDC has conducted more
than 650 client advisory meetings, maintaining a
94 per cent satisfaction rating. Through its ByBermuda e- commerce platform, 29 businesses have received direct support, helping to strengthen the digital sales capacity of local entrepreneurs.
Investing in our people is at the heart of the
Economic Development Strategy. The Department of Workforce Development has made significant improvements to its services, ensuring that all clients
receive career guidance through the creation of Per-sonal Employment Plans. A newly redesigned website
has been launched to connect jobseekers, [students]
and employers with training and employment opportu-nities in an efficient and user -friendly manner. Reforms to the work permit policy that improve the processes and ensure that there is adequate labour supply to support Bermuda’s growing economy have
been drafted and will soon be released for industry consultation.
To strengthen the development of a skilled
workforce, the National Certification and Apprentice-ship Board has been established to further improve
training and certification programmes for Bermudians
in trades and other high- demand sectors, ensuring
that Bermudians are well prepared to take advantage
of employment opportunities now and in the future.
Mr. Speaker, the Government is committed to
the ongoing implementation of Bermuda’s Economic
Development Strategy which will continue the strong
economic growth that resulted from the execution of Bermuda’s Economic Recovery Plan. This Government will continue to collaborate with stakeholders
and provide regular updates on the progress of this
strategy to this Honourable House.

2023/24 Fiscal Year Performance
Hon. E. David Burt: Now, Mr. Speaker, to the numbers. Mr. Speaker, it has been almost eight years since the Progressive Labour Party was returned to Government in July of 2017. We have seen many
changes and challenges since then, especially during
the recent COVID -19 pandemic. But throughout it all,
we have stayed focused on improving Bermuda’s
economy to make life better for everyone.
Mr. Speaker, the audited statements for fiscal
year 2023/24 have been presented to this Honourable House. These statements demonstrate the Government’s continued commitment to responsible financial
management.
Mr. Speaker, for the fiscal year that ended in
March 2024, total revenue was $1.176 billion, $21
million, or 1.8 per cent, more than the original estimate of $1.155 billion and $49 million more than the prior year’s revenue of $1.1 billion. This increase was
mainly due to higher -than- expected payroll tax receipts.
Payroll tax collections amounted to $537 million, $24.5 million, or 4.8 per cent, above the original
estimate of $512.5 million. Interest earned from deposits was $11.1 million, which was $10.3 million
more than the original estimate of $750,000.
Mr. Speaker, the total current account expenditure for fiscal year 2023/24 was $977.5 million,
which is just $4.9 million, or 0.5 per cent, more than
the original estimate of $972.6 million. Despite signifi-cant unbudgeted expenditure that arose throughout
the year —such as a $16.3 million funding boost for
the hospital, $19 million in negotiated pay increases with public sector unions —total expenditure exceeded
budget by only $4.9 million, demonstrating firm budget
control by the Ministry of Finance.


Bermuda House of Assembly Salaries and wages were $401.8 million,
which is $8.9 million, or 2.2 per cent, less than the
original estimate of $410.7 million. Government employer contributions totalled $76.6 million, which is
$706,000 [0.9 per cent] more than the original estimate of $75.9 million. This slight increase was due to
negotiated pay awards for public officers, which required higher employer contributions to the Public
Service Superannuation Fund [PSSF].
Capital expenditure for 2023/24 was $97.1
million, $1.1 million, or 1.2 per cent, more than the
original estimate of $96 million.
All other expenditures amounted to $499.2
million, $13.1 million, or 2.7 per cent, more than the
original estimate of $486.1 million. This increase was
directly related to the aforementioned additional expenditure for the Bermuda Hospitals Board and was offset by savings in other areas.
Interest and guarantee management costs
were $131.5 million, $1.1 million more than the origi-nal estimate of $130.4 million. Interest expense was $3 million less than forecast, while guarantee management was $4.1 million more than forecast due to
expenses related to Morgan’s Point and the negotiation of the Fairmont Southampton redevelopment.
Mr. Speaker, when the aforementioned factors are taken into account, the Consolidated Fund deficit for fiscal year 2023/24 was $29.5 million, which was $14 million less than the original estimate of
$43.5 million. This, Mr. Speaker, is the fourth consecutive fiscal year where the [fiscal] deficit has been lower than originally forecast.

2024/25 Fiscal Year Performance

Hon. E. David Burt: Mr. Speaker, before I share the
Estimates of Revenue and Expenditure for this fiscal year, I would like to provide an update on the Government’s financial performance for fiscal year
2024/25, which ended on the 31
st of March 2025.

REVENUE
Hon. E. David Burt: Mr. Speaker, the latest revised
forecasts, which can be found on page A -1 of the
Budget Book, project total revenue for fiscal year
2024/25 of $1.248 billion, $16.1 million, or 1.3 per
cent, higher than the original estimate of $1.232 billion.
Payroll tax collections are [projected] to be
$606.5 million, $26 million, or 4.5 per cent, above the
original estimate of $580.5 million. The $69.5 million
increase in payroll tax collections from $537 million in
the prior year is due to continued job growth in the
local economy and higher salaries in the international
business sector, combined with last year’s reform of
the new hire relief, which was introduced in 2018.
Customs duty revenue is projected to be $225
million, $8 million, or 3.4 per cent, below the original estimate of $233.9 million. This lower -than- budget
result is due to the 60.0 per cent reduction in taxes on
BELCO fuel, which was implemented in July of last
year.
All other receipts are projected to be $417
million, which is $2 million, or 0.5 per cent, below the
original estimate of $419 million.

EXPENDITURE PERFORMANCE

Hon. E. David Burt: Mr. Speaker, current account
expenditure is projected at $992.1 million, which is
just $128,000 higher than the initial estimate of $992
million.
This on- target expenditure has been achieved
despite the mid- year review allocating $17.6 million
primarily to social spending, and also includes increased salaries for public sector employees due to
the multi -year compensation agreement reached with
public sector unions.
Capital expenditure is projected to be $107.9
million. This is $4.4 million, or 4.1 per cent, below the
2024/25 original estimate of $112.3 million. However, Mr. Speaker, this level of investment is $10.7 million
more than the prior year and represents the highest capital spending since the 2010/11 fiscal year.

DEBT SERVICE

Hon. E. David Burt: Debt service and guarantee
management costs are estimated at $128.8 million,
which is $1 million, or 0.8 per cent, above the original
estimate of $127.8 million. This amount is $2.7 million less than the prior year, a result of the $50 million in debt that was repaid in December of 2023.

CONSOLIDATED FUND BUDGET SURPLUS

Hon. E. David Burt: Mr. Speaker, during last year’s
Budget Statement, I announced that the Government
was expecting its first balanced budget in 21 years.
At that time, there were many who said that it
could not be done. Some called it electioneering, others labelled it as a fantasy!

Yes, yes.

Hon. E. David Burt: Nonetheless, this Government,
supported by our hard- working public officers, has
achieved what many countries in the world find chal-lenging.
Despite delivering significant tax reductions to
help our residents [and businesses] cope with 40-year-high global inflation, including last year’s 60 per
cent reduction in electricity taxes, and despite addi-tional appropriations during the mid- year review to
provide support for the vulnerable and invest in tackling social challenges, we have grown our revenue
and tightly managed spending.
266 2 May 2025 Official Hansard Report

Bermuda House of Assembly Mr. Speaker, last February, the Estimates of
Revenue and Expenditure projected a $210,000 surplus for fiscal year 2024/25. It is with a combination of
humility and pride that I can share with this Honourable House and members of the public that the project-ed Consolidated Fund surplus for the fiscal year just
concluded will be $19.7 million.

[Desk thumping]
Hon. E. David Burt: This surplus is $19.5 million
more than originally estimated and represents the first
Consolidated Fund surplus to have been achieved in
21 years.
Such a milestone is not just a testament to
this Government’s commitment to fiscal responsibility,
but it is also a culmination of many years of fiscal dis-cipline. The people of Bermuda have experienced the
effects of this discipline— whether in the conditions of
our roads or the state of our national infrastructure.
But, Mr. Speaker, just as I declared three years ago that the era of austerity had come to an end, today I
declare that the era of budget deficits has now come
to an end.

[Desk thumping]

Fairness in Action —Sharing the Gains of
Economic Growth
Hon. E. David Burt: Mr. Speaker, the 2025/26 budget
. . . Let me pause, Mr. Speaker, because this section
is entitled “Fairness in Action —Sharing the Gains of
Economic Growth.” Because I know during the elec-tion campaign people were asking, What is “fairness”?
So, I want to make sure that we spell it out, Mr. Speaker.
Mr. Speaker, the 2025/26 budget marks a
turning point for Bermuda. For the first time in over two decades, our fiscal planning is no longer consumed by managing deficit after deficit. Instead, we
stand today with a budget surplus and a strong economy. And later this year, we expect to receive the first
revenue inflows from Bermuda’s new corporate in-come tax. This is not just a new budget year, but it is
the beginning of a new era of budgeting. And with that
opportunity comes the obligation to ensure that the
benefits of our economic growth are shared fairly
across our society.
Mr. Speaker, in the Pre- Budget Report tabled
in this Honourable House in December, I outlined a number of tax reductions that were under consideration to ease the tax burdens faced by residents and
businesses. This Government has a history of ensuring that better fiscal performance results in meaningful
relief for taxpayers, and today I will share the tax re-ductions that will form part of this year’s revenue estimates.
REDUCTION OF CUSTOMS DUTY ON BUILDING
MATERIALS AND SUPPLIES TO 10 PER CENT
Hon. E. David Burt: Mr. Speaker, home ownership,
construction and renovation are central to our economy and our way of life. As there is a national imperative to build and upgrade our existing housing stock, it
is vital that we do all we can to reduce the cost of
construction. Though the Government cannot regulate
the rates charged for construction labour, we can reduce the amount of taxes paid on goods that are im-ported into Bermuda. Therefore, to support new
homeowners, builders and those improving their
properties, the Government will reduce the customs
duty rate on all building materials and supplies currently charged above 10 per cent, such as air conditioners, paint, tile, steel, rebar, drywall, doors, windows and bathroom fixtures to a flat rate of 10 per
cent. This reduction will reduce import costs for a wide
range of construction materials, making construction
and renovation more affordable for families and developers alike.

[Desk thumping]

Hon. E. David Burt: Someone likes that.
Importantly, the few categories of building
materials that are currently subject to a duty rate be-low 10 per cent will remain unchanged. This means
that no duty rates will increase—only reductions will
occur. The goal is simple: to reduce the cost of building and renovating homes to help stimulate economic
activity in the construction sector.
Mr. Speaker, I would like to give a practical
example of what this reduction means for consumers.
Prior to these reductions, if you were looking to replace the air conditioning units in your home or business, and those units cost $4,000 to import into Bermuda, you would have paid $1,400 in custom duty
charges, as the [duty] rate for air conditioners was set
at 35 per cent. With these reductions, the duty payable for these imports would be only $400, a saving of
$1,000, or 71 per cent.
These duty changes will take effect from July 1 and are estimated to reduce customs duty revenue by $4.6 million.

FURTHER REDUCTION IN ELECTRICITY TAXES
Hon. E. David Burt: Mr. Speaker, electricity costs
remain a significant burden for households and busi-nesses, and we understand the frustration many feel
when they open their BELCO bill. While the Government cannot control the cost of fuel on global markets,
we are doing everything within our power to lower the
underlying costs that contribute to those rates.
Two years ago, the fuel duty on fuel used to
generate electricity stood at 20 cents per litre (after
being doubled, of course, Mr. Speaker, by the party


Bermuda House of Assembly opposite). In July 2024 we reduced that tax by 60 per
cent to 8 cents per litre. With this budget we will reduce that tax to just 4 cents per litre. The combined
effect of these changes will result in an 80 per cent
reduction in electricity taxes over the last year.
To date, Government fuel duty relief has reduced the average monthly electricity rates by approximately 6 per cent. The additional reduction [announced] today will bring the total relief to 8 per cent,
saving the average customer $300 per year. This estimate is based on average residential usage, and actual savings will vary depending on consumption
This measure demonstrates the Government’s commitment to delivering sustained relief on energy costs. While there is more work to be done
across the energy sector, this initiative ensures that
our tax policy supports lower electricity costs for every household and business in Bermuda.
This further reduction in the duty paid on fuel
will take effect from 1 July 2025 and is expected to reduce customs duty revenue by a further $4.2 million.

ELIMINATION OF CUSTOMS DUTY
ON ALL MOTOR VEHICLE PARTS
Hon. E. David Burt: Mr. Speaker, recognising the
strain that vehicle repair costs can place on families and businesses, customs duty will be eliminated on all motor vehicle parts imported into Bermuda. Yes, all.
Whether it is keeping a family car on the road or a
company’s fleet operating, this measure is aimed at lowering maintenance and repair costs while the Government works to repave Bermuda’s roads.
Mr. Speaker, I would like to give another practical example of what this reduction will mean for consumers. Prior to these reductions, if you were looking
to replace the tyres on your vehicle and those tyres cost $500 to import into Bermuda, the importer would
have paid $175 in customs duty charges, as the duty
rate for tyres was set at 35 per cent. With the elimination of customs duty, there would be no duty payable for these imports, saving the importer $175.
The duty elimination for motor vehicle parts
will take effect from the 1
st of July and is estimated to
reduce customs duty revenue by $2.9 million.

INCREASE OF DUTY EXEMPTION
FOR RETURNING RESIDENTS
Hon. E. David Burt: Mr. Speaker, the Government
will increase the duty exemption for returning residents by 50 per cent from $200 to $300. This means
that after any overseas travel, residents will be able to
bring back up to $300 worth of goods duty free. This adjustment will make it easier for families to manage
travel -related expenses and provide immediate savings for residents who may shop overseas for neces-sities, clothing and other goods. This rate allowance
was last changed in 2012, or 13 years ago. 50 PER CENT REDUCTION IN
MOBILE PHONE TAXES

Hon. E. David Burt: Mr. Speaker, access to communication is essential —for work, for education or for
staying connected with loved ones. To ease the financial burden of mobile services, the Government will reduce the monthly tax on mobile phones by 50 per
cent from $12 to $6. This measure will result in imme-diate savings for every mobile customer and is a part
of our commitment to lowering the cost of essential services.
This tax reduction will take effect from the 1
st
of July 2025 and is expected to reduce revenue by $2 million.

REDUCTION OF THE BASE RATE OF
LAND TAX BY 50 PER CENT

Hon. E. David Burt: Mr. Speaker, land tax is a significant revenue earner for the Government, but it can also represent a burden for homeowners and renters
alike. In 2019, a new base [rate] for land tax was introduced and set at $300 a year. Given the Island’s
fiscal progress, the time is right to reduce this tax and provide more tax relief. The Government will reduce
the base rate of land tax from $300 per year to $150 a
year. This reduction will apply to all homeowners and renters who pay land tax.
This land tax reduction will take effect from
the 1
st of January 2026 and is expected to reduce land
tax revenue by $2.5 million.

10 PER CENT REDUCTION IN
LICENSING FEES FOR PRIVATE CARS

Hon. E. David Burt: Mr. Speaker, as we work to reduce the overall costs associated with vehicle ownership, the Government will implement a further 10 per
cent reduction in licensing fees for private cars. When
combined with the elimination of customs duty on all
motor vehicle parts, this measure will provide further
relief to families by lowering both the upfront and ongoing expenses of keeping a vehicle on the road.
Though this tax reduction is being announced
today, it will be set to take effect from the 1st of April
2026 and will reduce revenue by $2.6 million for fiscal year 2026/27.

TAX PROPOSALS NOT BEING ADVANCED

Hon. E. David Burt: Mr. Speaker, though we have
committed to significant relief, this Government is also firmly committed to fiscal responsibility. Two proposals
previewed in the Pre- Budget Report have been postponed, as the Ministry of Finance is determined to ensure that every measure is well -targeted, well -
designed and responsibly implemented. These deferred items include
268 2 May 2025 Official Hansard Report

Bermuda House of Assembly • the elimination of payroll taxes for employers
who retain Bermudian employees over the
age of 65; and
• an increase in the tax -free threshold for local
dividend income from $10,000 to $15,000.
These measures will now undergo further policy review, with the intention to implement them in the
2026/27 budget.

A CONSISTENT RECORD OF TAX REDUCTIONS

Hon. E. David Burt: Mr. Speaker, this Government
has consistently reduced taxes as economic conditions have improved. We make these changes not for
the headlines they produce but for the Bermudians who voted for a government that focuses on fairness.
For that single parent juggling bills, for the seniors
who stretch every dollar, for the entrepreneur trying to
make payroll, and for every Bermudian who has made
sacrifices during difficult times and deserves to now
receive some relief.
Mr. Speaker, let us not forget how far we have
come. In the last three years alone, this Government has
• reduced payroll taxes for 86 per cent of Bermuda’s workforce;
• expanded the child daycare allowance;
• eliminated customs duties on essential goods;
• cut energy taxes by 60 per cent;
• reduced private car licensing fees;
• abolished land tax for charities and nursing
homes; and
• frozen local fuel prices during global price
surges.
This year, Mr. Speaker, we have gone further
with these changes that will save the average family
of four about $1,000 a year. We are proud of our rec-ord and grateful for the success of our economic vision that is rooted in fairness. But we are not satisfied.
Because fairness is not a destination; it is our continu-ing mission. Together these initiatives represent a comprehensive package of further relief that will help
to ease financial pressures while supporting vital economic activity.

2025/26 Budget Estimates

Hon. E. David Burt: Mr. Speaker, now to the numbers for this year.
Mr. Speaker, having just outlined the tax reductions that this Government will deliver to live up to
our promise to make Bermuda more affordable, I will
now turn my attention to the overall budget for the Consolidated Fund, for fiscal year 2025/26.

REVENUE

Hon. E. David Burt: Mr. Speaker, revenue for fiscal
year 2025/26 is expected to reach $1.43 billion, which is 16 per cent, or $198 million, above the original estimates for fiscal year 2024/25.
Payroll tax receipts are projected to increase
by $11 million, driven by expected job growth in the
local economy. There are no changes to the existing payroll tax structure, as the Government awaits the
recommendations from the Tax Reform Commission.
This increase is lower than projected in prior fiscal
years, reflecting the Finance Ministry’s consideration
of forthcoming recommendations from the Commission to reduce the cost of doing business in Bermuda.
A provisional figure of $187.5 million has been
budgeted for revenue from the new corporate income
tax, which came into effect on the 1
st of January 2025.
This figure aligns with the expectations that were set in last year's Budget Statement.
Customs duty revenue is expected to decline
to $214.9 million, a reduction of 8 per cent from last
year’s estimates, as a result of the package of cus-toms duty reductions announced earlier. Land tax collections are estimated at $87 million, representing a 5 per cent decline compared to last year’s estimates.
Telecommunications receipts are also projected to fall
by 11 per cent following the 50 per cent reduction in
monthly mobile phone taxes.
The other major changes in revenue are due
to lower projected receipts from cruise ships, resulting
from a reduction in cruise calls during the construction
works at King’s Wharf.

CURRENT EXPENDITURE
Hon. E. David Burt: Mr. Speaker, Consolidated Fund
current account expenditure for fiscal year 2025/26 is
estimated at $1.11 billion. This figure represents an
increase of $118 million, or 11.9 per cent, when compared to the original estimates for fiscal year 2024/25.
Now, Mr. Speaker, this figure without context
may seem high, especially given the fiscal discipline
that the Government has exercised to reach a balanced budget. However, Mr. Speaker, I will share the
details of these changes so that taxpayers can understand how their tax dollars are being spent.

Baseline Increases to Ministry Budgets

Hon. E. David Burt: Mr. Speaker, all ministries were
granted a baseline increase of 1.5 per cent from last
year’s original estimates to account for inflation. This
1.5 per cent increase is in line with the Medium- Term
Expenditure Framework (MTEF) that was presented in
last year's budget and amounts to $13.7 million. In
addition to this increase, additional funds were allocated to selected ministries to advance priority initiatives as outlined in the Speech from the Throne. The
Ministries of Justice; Education; Housing and Munici-palities; Public Works and Environment; Home Affairs;
and Youth, Social Development and Seniors were


Bermuda House of Assembly allocated additional funding above the 1.5 per cent
baseline totalling $4.7 million.

Social Investments

Hon. E. David Burt: Mr. Speaker, during last year’s
Mid-Year Review, the funds that were appropriated to
ministries were not one- time investments. It was stated at the time that the new funding would be carried
forward into this new fiscal year. These additional investments have been allocated to the respective min-istries and represent $14.9 million of the additional
current account expenditure. (Now, of course, Mr.
Speaker, those were appropriated in this past year,
but we are comparing the figures to the original estimates. That is why I am making sure I go through all
of the figures.)

Union Pay Agreement

Hon. E. David Burt: Mr. Speaker, as mentioned earlier, the Government agreed to a four -year compensation agreement with public sector unions to assist in
retaining our talented workforce. This agreement was
a combination of inflation- indexed pay increases combined with additional increases, recognising that public sector compensation over the last decade has not
kept pace with the rate of inflation. Additionally, to en-sure that public sector workers did not experience a
reduction in take- home pay due to required increases
in pension contributions that I will detail later in this
Statement, the Government agreed to fund the increases in employee contributions for both the Government Employee Health Insurance Scheme [GEHI] and the Public Service Superannuation Fund [PSSF].
The impact of these salary increases is $22.3 million, and the additional overheads required for GEHI and PSSF contributions amount to $3.8 million.

INVESTMENT IN HEALTH CARE
Hon. E. David Burt: Mr. Speaker, the Government is
committed to introducing universal health care. As we have seen on page A -1 of the Budget Book, this
year’s budget commits an additional $56.25 million
from the Consolidated Fund to invest in health care for
Bermuda’s residents. These funds will see additional
investments made to the Health Insurance Department [HID] to support the expansion of the Health Insurance Plan [HIP] and FutureCare, additional funds to the Bermuda Hospitals Board, additional investments to ensure the launch of universal health care in
2026, and funding for the Government Employee
Health Insurance scheme.
Mr. Speaker, I am going to detail these investments in health care, as they are important for Honourable Members and, of course, the public who
are watching and listening to hear.
Finalising Universal Health Care to Launch in 2026

Hon. E. David Burt: Mr. Speaker, universal health
care has been a long- time goal of the Bermuda Progressive Labour Party. That preceded my time before I was even a member of the PLP, Mr. Speaker. This
goal requires the resources necessary to ensure that
changes to our health care system are well planned
and executed to minimise the challenges faced by
those persons currently insured, underinsured or uninsured. A total of $3 million of this additional funding will be allocated to boost the human resources required to implement this initiative in 2026.

Funding Boost for the Health Insurance Department

Hon. E. David Burt: Mr. Speaker, last year the Government used funds from the excess borrowing account to freeze the Standard Premium Rate for the
third year in a row. This action shielded families and
businesses from additional costs during a period of
high global inflation. This year we are moving beyond
freezes and making investments to improve the health
care benefits available to Bermudians. Through an
allocation of $13.25 million from the Consolidated
Fund, this Government is delivering on the pledges
set out in the Progressive Labour Party’s 2025 Platform—transforming health care to make it more accessible, affordable and preventative.
Mr. Speaker, this investment will expand coverage in the following ways:

Elimination of Waiting Periods
to Access the Personal Home Care Benefit

Hon. E. David Burt: Mr. Speaker, the first one which
will be welcome news to many in Bermuda, we will
eliminate the 12- month waiting period for new HIP &
FutureCare policyholders to access the Personal Home Care Benefit.
[Desk thumping]
Hon. E. David Burt: Mr. Speaker, as our population
ages, access to affordable home health care becomes
increasingly essential. Under the current system, newly enrolled HIP/FutureCare members had to wait an
entire year to access Personal Home Care benefits —
even when immediate support was urgently needed.
That will now change.
By removing this waiting period, new policyholders will be able to receive assistance to help defray the costs of home- based care services when they
need it most. While this benefit will significantly ease
the financial burden for families, it does not cover the
full cost of private home care. It is designed to assist
families, supporting them in providing care while helping to reduce pressure on hospital services and longterm inpatient care.
270 2 May 2025 Official Hansard Report

Bermuda House of Assembly This reform represents fairness in action, Mr.
Speaker —helping seniors to age with dignity in their
own homes and providing vital support to Bermudian
families who may need assistance caring for a disabled family member. It is also sound fiscal manage-ment: timely access to home care reduces hospital readmissions, eases demand on inpatient beds and
leads to lower health care costs over time.

Expansion of Prescription Drug Coverage
for FutureCare and HIP

Hon. E. David Burt: Mr. Speaker, this year’s health
care investment will also fund the expansion of prescription drug coverage for HIP and FutureCare policyholders. Though we have increased access to prescription coverage over the last few years, many Ber-mudians, particularly our seniors, continue to face financial barriers when trying to access essential medications. This additional funding will increase the coverage limit for HIP from $1,000 a year to $3,000 a year and will increase the FutureCare limit from
$3,000 to $5,000 a year, Mr. Speaker.
By enhancing prescription drug coverage, we
will make it easier for individuals to manage chronic
conditions like diabetes, heart disease and hypertension—leading to better health outcomes and reduced
reliance on costly emergency care.

Expansion of Annual Examinations
for FutureCare and HIP
Hon. E. David Burt: Mr. Speaker, preventative care
saves lives. As we promised in the recent election
campaign, this Government will introduce and expand
coverage for annual health exams for HIP and Fu-tureCare clients. Regular annual checkups catch po-tential health issues early before they escalate into
costly medical emergencies. Ensuring that every
Bermudian under HIP and FutureCare has access to
an annual preventative health exam, with no out -ofpocket costs, is a transformational shift toward a
healthier Bermuda.
Mr. Speaker, these initiatives are not just
good policy —they reflect our values. They are directly
delivering on the pledges contained in the PLP 2025
Platform: expanding HIP and FutureCare to make
health care more accessible, reducing the financial
burdens faced by seniors and working families, and
building a health care system focused on prevention and fairness.
However, Mr. Speaker, we must also be responsible stewards of our health care system. Medical inflation [globally] is forecast to exceed 10 per cent
this year, driving up the costs of medical care, equip-ment and pharmaceuticals. Therefore, the Govern-ment will not be able to freeze the Standard Premium
Rate [SPR] for the fourth year in a row, and it will be
necessary to introduce an inflationary adjustment to the Standard Premium Rate to ensure that we can
sustain these vital benefits and maintain adequate
funding for the Bermuda Hospitals Board.

Additional Funding to BHB

Hon. E. David Burt: Mr. Speaker, the Bermuda Hospitals Board [BHB] funding model was changed in 2018, and I must commend the board, management,
staff and of course the Minister of Health for their efforts during the worst health care crisis in a century. It is important that the Government support the hospital
to provide a high level of health care in Bermuda, and
$22 million of the additional health care funding will be
provided to the Bermuda Hospitals Board.
However, I must state, Mr. Speaker, that the
Government and taxpayer cannot do it alone. When Bermuda constructed the new acute care wing it was
supported by $24 million of private sector fundraising
by the Bermuda Hospitals Charitable Trust. The Bermuda Hospitals Board has restarted fundraising activity, and I urge the private sector both local and international to assist in ensuring that our hospital can acquire the latest medical technology so that it can continue to provide top- tier life -saving health care on the
Island.

Support for GEHI Funding Shortfall

Hon. E. David Burt: Finally, Mr. Speaker, the Government Employee Health Insurance scheme has experienced a deficit in recent years, and shortfalls in
funding have been financed from the excess borrow-ing account. This year, these shortfalls will be funded
from the Consolidated Fund in the amount of $18 million. This is not the full amount of the shortfall, Mr.
Speaker, which is estimated at $31 million; however,
GEHI rates will be increased for the first time since
2018 as part of the agreement with public sector employees and will be increased over the next [two]
years to close this shortfall.

MANAGING BUDGETED EXPENDITURES

Hon. E. David Burt: Mr. Speaker, although this increase in current expenditure appears significant, it is
necessary that the full amount of expected changes
be put forward to this Honourable House in this budget. However, as recent history has shown, it is unlikely that all funds appropriated will be spent. Public service
recruitment normally lags behind forecasts, particularly in a tight labour market. As recent trends have
shown, salary expenses are typically 8 per cent lower
than budgeted before retroactive pay increases are
included. This year’s budget includes the full amount
of negotiated pay increases as part of the union pay
agreement. Given recent trends, the salaries expenditure will likely be closer to $365 million, or $20 million
less than budgeted.


Bermuda House of Assembly Mr. Speaker, some may ask, If the Government is not expecting to spend all of these funds, then
why are they in the b udget? The answer is not simple,
but it is a reality of public sector budgeting. If all of these funds are not appropriated, then ministries will be constrained in the resources necessary to deliver
public services that taxpayers expect. Experience has
shown that it is better to allow these funds to be appropriated with the knowledge that some funds will not
be spent rather than try to reduce those funds prior to
appropriation which results in reduced service deliv-ery.
Mr. Speaker, although the Government has
made provision for significant additional investments in public services, health care and our workforce, the
expectation remains that current account expenditure
will not reach the full $1.11 billion that has been esti-mated. And of course, any funds not spent will result
in improved fiscal performance which the Government
has experienced in every fiscal year since the pandemic.
And now, Mr. Speaker, if I may, I will move
on.

Capital Expenditure

Hon. E. David Burt: Mr. Speaker, in last year’s budget the Government allocated the largest investment in
capital expenditure in 14 years. This fiscal year we
build on that significant investment with a provision for
capital expenditure of $149.8 million. This amount would represent the largest investment in our Island’s
infrastructure since 2008 and is an increase of $37
million compared to the 2024/25 original estimate. Investing funds for capital expenditure is essential
because it lays the foundation for long- term economic
growth and stability. By investing in physical and digi-tal infrastructure, the Government can improve public
services, foster job creation and improve productivity
in the public sector.
The most significant items of capital development in this budget include road works and the installation of a new asphalt plant, investments in affordable
housing, upgrades to the Tynes Bay Waste Treatment Facility, capital investments for the hospital and the
commencement of the replacement of Swing Bridge.
Projects such as the new Agricultural Services Centre;
upgrades to the Bermuda Aquarium, Museum and
Zoo; new facilities for signature schools and parish
primary schools; and a new senior daycare facility are also funded, Mr. Speaker.
In terms of Capital Acquisitions, this budget
allocates a record level of funding toward critical tech-nology and equipment upgrades across Government.
These investments include enhancements to the
Government’s IT infrastructure to support enhanced online services, the procurement of new buses and
ferries, upgrades to information technology and
equipment for public schools, the installation of speed cameras to improve road safety, advanced border
security technology to protect our borders, Mr. Speaker, and new equipment for the Bermuda Fire and
Rescue Service.
Mr. Speaker, by investing in our infrastructure,
from our roads and schools to public safety and digital
services, this Government is ensuring that the essential services Bermudians rely on are strengthened,
modernised and also properly maintained for the future.

DEBT SERVICE
Hon. E. David Burt: Mr. Speaker, debt service costs
for the 2025/26 budget are projected to be $127.5 mil-lion, largely in line with last fiscal year. There are no
changes in long- term debt expected during this fiscal
year, and with the prospect of budget surpluses for
the foreseeable future, the amount of funds required
to be committed to debt service is projected to decline
in future fiscal years.

PROJECTED BUDGET SURPLUS
Hon. E. David Burt: Mr. Speaker, to recap, revenue
for fiscal year 2025/26 is expected to reach $1.43 billion, which is 16 per cent, [or $198 million,] more than
the original estimates for 2024/25. Current Account
Expenditure is estimated at $1.11 billion, an increase
of $118 million, [or 11.9 per cent,] above the original
estimates for last year. The estimated Current Account Balance before debt service is expected to be
$320 million, $80 million, or 33 per cent, more than
the original estimates for 2024/25.
This Current Account balance will cover the
costs of servicing our debt, projected at $127.5 mil-lion. This results in $193.1 million of funds available to
meet capital expenditure. As I just covered, capital
expenditure in fiscal year 2025/26 is estimated at
$149.7 million, $37 million [or 33 per cent] higher than
last year.
Mr. Speaker, with the budget that I have laid
before this Honourable House today, this Progressive Labour Party Government is projecting a second consecutive Consolidated Fund surplus. This year’s sur-plus of $43.3 million is more than double the surplus
achieved last year and places the country on an even
stronger financial footing for the future.
Mr. Speaker, achieving and maintaining surpluses is critical to safeguarding Bermuda’s financial stability. Surpluses provide the fiscal space needed to
respond to global challenges without increasing the
burden on Bermuda’s taxpayers. Through disciplined
financial management, combined with prudent investments, this Government will continue on a path to
ensure Bermuda is positioned to reduce the Government’s debt, leading to a brighter future for the next
generation.

272 2 May 2025 Official Hansard Report

Bermuda House of Assembly GOVERNMENT DEBT

Hon. E. David Burt: Mr. Speaker, as of the 31st of
March 2025, gross debt stood at $3.29 billion. After
accounting for the sinking fund, the Island’s net debt
stands at $3.25 billion.
At the end of fiscal year 2025/26, the sinking
fund is projected to grow to $85 million. This includes the $40 million balance carried forward, the additional
surplus of $43 million which we are anticipating for
this year and the anticipated interest earnings of $2
million. Net debt is projected to decline to $3.20 billion
at the 31
st of March 2026.
Mr. Speaker, during fiscal year 2026/27, the
Government expects to have sufficient reserves to
repay at least $500 million of Government debt,
thereby reducing the Government’s gross debt by $500 million, ending the year with net debt of $2.8
billion.

[Desk thumping]

MINISTRY HIGHLIGHTS
Hon. E. David Burt: Mr. Speaker, this budget fulfils
the Government’s pledge to invest in our people and
our Island’s future. And if you will allow me, Mr.
Speaker, I would now like to cover highlights from various ministries that are funded in this budget. It is vital
that budgets match the pledges made in our Throne
Speech and also our election platform, and this budg-et, Mr. Speaker, delivers on those priorities.
Cabinet Office and Digital Innovation

Hon. E. David Burt: Mr. Speaker, the Cabinet Office
has been allocated $53.6 million, an increase of $4
million, or 8 per cent.
The ongoing digitisation of the Archives will
expand public access to historical records and ensure
their long- term preservation. The Digital Transformation Team, with an allocation of $975,000, will continue advancing the One- Stop Shop initiative for
online government services. Priorities include expanding the online payment portal and building a unified
digital interface to make more government services
accessible online.
Funding has been allocated to expand the
Public Service Bursary Programme, increasing the
number of scholarships awarded in exchange for a commitment to public service employment or health
care service upon graduation.
Under Capital Expenditure, the Department of
Information and Digital Technologies has received $6.5 million in capital funding to strengthen cybersecurity, modernise network systems and improve public access to digital government services, including continuing enhancements to the Government’s online portal. In addition, $1 million of capital funding has been given for a new round of community club development
grants, and $500,000 of capital funding has been allo-cated for the cooperative food supply initiative.

Ministry of Justice

Hon. E. David Burt: Mr. Speaker, the Ministry of Justice has been allocated $57.7 million, an increase of
$2.9 million, or 5 per cent. This allocation will support
various departments under the Ministry in fulfilling their mandates more effectively.
The Attorney General’s Chambers will enhance its resources and staffing levels to support the
drafting of robust legislation and to provide comprehensive legal advice and representation to Government ministries and departments. These additional
resources will prevent backlogs and ensure that the Government can swiftly move forward with matters of
law reform that will benefit all of Bermuda.
This year, the Judicial Department will benefit
from capital expenditure funding to implement a new
electronic case management system which will modernise services and expedite justice. In addition, renovations to the Dame Lois Browne- Evans Building will
begin this year to add purpose- built courtrooms and
administrative space aimed at easing pressure on the
court system and reducing delays.
The Department of Corrections will recruit
new corrections officers to restore operational capacity and meet security standards. Funds will be allocated to officer training and welfare, as well as enhanced
and individualised rehabilitation and education programmes for inmates that incorporate principles of restorative justice. Works will also commence this
year on long- overdue repairs at Westgate Correctional
Facility
The Department of Court Services will complete its hiring initiative to strengthen the department’s
ability to meet a broader range of client needs in -
house, including support for the new Domestic Violence Court Programme.

Ministry of Finance

Hon. E. David Burt: Mr. Speaker, the Ministry of Finance has been allocated $266.6 million, an increase
of $25.2 million, or 10 per cent.
However, Mr. Speaker, 85 per cent of the
funds assigned to the Ministry are for employee overheads (which come to $99.9 million) which has increased by $19.8 million, and interest on debt ($127.5 million). Most of the remaining increase is due to a
$4.8 million grant to the Corporate Income Tax Agency.
Key priorities for the Ministry include advancing pension reform while progressing critical interna-tional tax and regulatory reviews. Ministry Headquarters will support the Tax Reform Commission’s work to
recommend a revised tax framework for Bermuda.


Bermuda House of Assembly This will take place alongside the work required to
support the Corporate Income Tax Agency [CITA] in
implementing the new Corporate Income Tax. The
Registrar of Companies will advance implementation
of a central register for beneficial ownership in line with Bermuda’s international commitments.
The Ministry of Finance has been allocated
$2.1 million of capital funding primarily for IT upgrades in the Registrar of Companies, Office of the Tax
Commissioner and the Accountant General.

Ministry of Education

Hon. E. David Burt: The Ministry of Education has
been allocated $149.2 million, an increase of $9.8 mil-lion, or 7 per cent.
These funds will ensure programmes thrive
and necessary resources are in place to deliver quality, safe learning experiences. The Ministry’s Scholarships and Awards have increased by $223,000 bringing the total to $1.8 million for post -secondary education, providing more opportunities for young adults to
access funding and pursue their dreams.
A 26 per cent increase in substitute teachers
will support education reform efforts while assisting
school leaders with day -to-day operations, in response to concerns raised by our cherished educa-tors.
Capital funding has increased by 52 per cent
to support the infrastructure projects for the Harrington Sound and Elliot Parish Primary Schools opening in September 2025. This funding will also support the
transformation of Prospect Primary to an Exceptionalities Signature School and continued enhancements for Signature Schools at the Berkeley Institute, CedarBridge Academy and Sandys Secondary Middle School.
In addition to capital works, these additional
funds will be used to improve technological infrastruc-ture within schools, including updating computer labs,
faster Internet access and incorporating more digital
learning platforms into the curriculum.

Ministry of Health

Hon. E. David Burt: Mr. Speaker, the Ministry of
Health has been allocated $245.4 million, an increase of $45 million, or 22 per cent.
A significant portion of this funding supports
the Bermuda Hospitals Board [BHB], including $112.5 million in patient subsidies for youth, the elderly and
those in need, along with a $42.1 million operational
grant for the Mid- Atlantic Wellness Institute [MWI]. As
mentioned earlier, additional funding has been allocated for hospitals, the Health Insurance Department,
and Ministry headquarters to launch universal health care. The Bermuda Hospitals Board continues efforts
to enhance service delivery quality through advancements in its electronic medical records system. For capital projects, the Ministry has been
allocated $3.3 million for renovations to the Mangrove
Bay Clinic, St. George’s Clinic and Hamilton Health
Centre, as well as architectural planning for the expansion of Sylvia Richardson Care Facility and the replacement of Lefroy House.
Additionally, $6.6 million of capital funding is
designated for BHB infrastructure upgrades, mainte-nance and system improvements at King Edward VII
Memorial Hospital [KEMH] and MWI. The total capital
allocation for the Ministry of Health for 2025/26 re-flects a 9.83 per cent increase over the previous year.

Ministry of Economy and Labour

Hon. E. David Burt: Mr. Speaker, the Ministry of
Economy and Labour has been allocated $27.5 million, an increase of $1.8 million, or 7 per cent.
Funding will support the implementation of the
Economic Development Strategy, with the Bermuda Economic Development Corporation receiving an additional $100,000 to deliver Bermuda’s first National
Entrepreneurship Strategy. The Bermuda Business
Development Agency’s funding of $4.23 million will
continue to drive investment promotion and targeted
economic growth initiatives.
At the Department of Immigration, an additional $629,000 has been allocated to modernise the border management system, strengthen recruitment
and enhance customer service as part of the department’s digital transformation project.
The Department of Statistics will receive an
additional $816,000 to complete the Household In-come and Expenditure Survey and begin preparations
for the 2026 Census, including the hiring of Assistant
Statisticians and the engagement of consultants to
automate the reporting.
The Workforce Development Department’s
allocation increases by $305,000, supporting greater
access to overseas apprenticeships, local skills certifications and job training programmes that prepare
Bermudians for new economic opportunities.

Ministry of Public Works and Environment

Hon. E. David Burt: Mr. Speaker, the Ministry of Public Works and Environment has been allocated $84.1
million, an increase of $4.4 million, or 6 per cent.
The Government has allocated an additional
[$3.75] million in funding to commence the replacement of the Swing Bridge, a critical link between St.
George’s and the rest of the Island. Maintaining and
improving road infrastructure remains a priority, with
$5 million allocated again for road paving. Preparatory
works for the new asphalt plant are fully funded and
underway, which will enhance the efficiency and quality of future road maintenance.
To better manage stormwater and reduce
flood risks, the Ministry will ensure sufficient funding
274 2 May 2025 Official Hansard Report

Bermuda House of Assembly for modern drainage cleaning equipment. In addition,
[over] $1 million have been allocated for the repair
and restoration of large water tanks critical to the Island’s water supply, ensuring greater resilience during
drought and periods of high demand.
Environmental stewardship remains central to
the work. An additional $400,000 will support coastal
protection projects to combat erosion and safeguard
shoreline communities. The refurbishment of the
Tynes Bay Waste- to-Energy facility continues to advance, securing Bermuda’s long- term environmental
health.
Finally, Mr. Speaker, to promote safety and
enhance enjoyment at public beaches, the Government has invested in hiring additional full -time lifeguards who will provide [expanded] coverage at major beaches for the benefit of residents and visitors alike.

Ministry of Tourism and Transport, Culture and Sport
Hon. E. David Burt: Mr. Speaker, the Ministry of
Tourism and Transport, Culture and Sport has been
allocated $101.6 million, an increase of $3.7 million, or
4 per cent.
A total of $8.7 million has been allocated to
strengthen Bermuda’s ferry fleet, supporting the delivery of two new 550- passenger ferries expected by the
end of the year. In addition, $404,000 have been provided to continue the rollout of the digital fare media
system under the Shorelink project, modernising public transportation payment options for residents and visitors.
Capital funding of $3.5 million has also been
allocated for the purchase of additional electric buses, allowing the retirement of more diesel buses and improving the reliability and environmental sustainability of Bermuda’s public bus service.
An increase of $274,000 for the Department
of Culture will expand grants to cultural organisations, enhance Bermuda Day celebrations, and support the
induction of a new National Hero to strengthen national pride and cultural heritage.
The Department of Sport and Recreation has
received an additional $1.6 million, supporting the launch of the new Active Kids Programme under the
National Sports Policy, salary uplifts at the National
Sports Centre and expansion of summer day camps
to provide more affordable recreational activities for
Bermuda’s youth.

Ministry of National Security

Hon. E. David Burt: Mr. Speaker, the Ministry of National Security has been allocated a total of $126.9 million, an increase of $10.9 million, or 9 per cent.
This funding will enable departments under
the Ministry to fill 18 additional posts in the Bermuda Police Service, Customs and the Cybersecurity Unit
located in Ministry Headquarters. The Royal Bermuda Regiment Coast Guard has been allocated funding for
the impending opening of the St. David’s Coast Guard
station. This station will result in Bermuda’s maritime
capabilities being significantly extended, particularly in
the east end of Bermuda.
Funding will provide for the implementation of
the Uniformed Services Training Programme, which
aims to prepare Bermudians for careers in our uniformed services.
Funding has also been allocated for the provision of individual and family counselling, intervention initiatives and educational programmes through our
Gang Violence Reduction Team. Additional funding
has been allocated to community and sports organisations to support their youth programmes and to enhance their security infrastructure.
Capital funding in the amount of $9.3 million
will cover the costs of completing the St. David’s
Coast Guard Station, the Police Headquarters project
in Prospect, the purchase of new fire trucks, upgrades
to the public safety communication system, a scanner
for Customs at the Heritage Wharf in Dockyard, upgrades to the police network servers and a new building on the Hamilton docks to house Customs’ X -ray
machine.

Ministry of Youth, Social Development and Seniors

Hon. E. David Burt: Mr. Speaker, the Ministry of
Youth, Social Development and Seniors has been
allocated $91.2 million, an increase of $5.9 million, or
7 per cent.
Funding has been allocated to support the
hiring of a Project Manager to lead the implementation of the National Seniors Strategy as we work to improve the lives of older Bermudians. In addition, the
Ministry will continue the successful Dementia Care
Pilot Programme, which is providing vital navigation
and support services to seniors who are uninsured or
underinsured.
Recommendations from the Multi -Agency
Risk Assessment Committee will be actioned with the
introduction of a structured treatment programme for
perpetrators of domestic abuse and with the hiring of
a Domestic Abuse Liaison social worker to improve response and prevention efforts.
To support Bermuda’s youth, funding has
been allocated to fully restore staffing for the Mirrors programme. In addition, long overdue wage increases have been provided for miscellaneous staff at Bermuda’s community centres, many of whom have not
seen a pay adjustment in more than 15 years.
Finally, an intensive family preservation programme will be launched, supporting high- risk families
with coordinated, immediate interventions to keep them safely together and address the root causes of
instability.
Capital funding will progress the new senior
daycare facility at the former Gilbert Institute site in


Bermuda House of Assembly Paget, with architectural planning now underway. This
project will help provide much- needed care options for
our ageing population and support families caring for elderly loved ones.

Ministry of Home Affairs
Hon. E. David Burt: The Ministry of Home Affairs has
been allocated $5.8 million, an increase of $856,000, or 17 per cent.
Consumer Affairs has rejoined the Ministry
Headquarters, and operational funding has been increased to accommodate additional personnel to advance the Throne Speech initiatives, with a particular
focus on energy reform and addressing cost of living
concerns.
The Ministry will hold a Cost of Living Summit
in June focused on food and utility costs, confirming
necessary legislative changes to provide economic
relief and strengthen oversight across both regulated
and unregulated sectors to ease cost pressures on residents and businesses.
The capital budget includes funding to upgrade the IT system within the Land Title and Regis-tration Department, which is expected to assist in re-ducing the backlog of property and title registrations.

Ministry of Housing and Municipalities

Hon. E. David Burt: Finally, Mr. Speaker, last but not
least, to the Ministry of Housing and Municipalities.
Mr. Speaker, the newly formed Ministry of Housing
and Municipalities has been allocated $7.5 million, an
increase of $1 million, or 15 per cent.
Capital funding to the Bermuda Housing Corporation has increased by $4.2 million, or 33 per cent,
to $17 million. These funds will continue the record investment in affordable housing made by this Government and are expected to support the delivery of
30 additional affordable housing units in 2025.
Funding to the Ministry will support the development of a long- term affordable housing strategy in
collaboration with local stakeholders. Additional fund-ing has been provided to complete the master plan-ning for key residential neighbourhoods including
Mary Victoria Road, Alexandra Road and Cedar Park,
focusing on improvements to water and sewage infrastructure, lighting and general home upgrades.
Mr. Speaker, that concludes the Ministry Highlights. I will now move on to the next section.

Building a Sustainable Future
for Public Sector Pensions

Hon. E. David Burt: Mr. Speaker, in this budget we
do more than just invest in today; we are also taking
the necessary steps to ensure a secure fiscal future,
and that means tackling the large unfunded liabilities
in our public sector pensions. PUBLIC SERVICE SUPERANNUATION FUND
(PSSF)

Hon. E. David Burt: Following extensive consultation
with our union partners, the Government will table
amendments to the Public Service Superannuation
Fund Act during this budget session, placing the
PSSF on a sustainable footing for the future. These
changes reflect years of careful analysis and many
rounds of consultation and revision. When implemented, they will eliminate the growing unfunded liability for the PSSF, ensuring that the commitments made to
current and future public service retirees can be honoured.
These changes will result in phased increases
in the age where public sector workers will be eligible
to receive a pension; increases in contributions from 8.0 per cent to 10.0 per cent for most employees, and
from 9.5 per cent to 11.5 per cent for uniformed service employees; and a revision to the calculation of the reference wage for retirement, from the final salary
to the average salary over the last 10 years. Finally,
these changes when passed will reintroduce the annual cost of living increases for public sector retirees,
which have been frozen since 2014.
Mr. Speaker, while the tabling of this Bill will
represent significant progress, there is more work to be done.

CONTRIBUTORY PENSION FUND

Hon. E. David Burt: Mr. Speaker, with PSSF changes
set to advance, the Ministry of Finance will turn our
attention to the challenging task of securing the longterm sustainability of Bermuda’s Contributory Pension
Fund [CPF], which underpins the Social Insurance
benefits for more than 14,000 Bermudians.
Mr. Speaker, at the outset let me address a
misconception directly. Some have wrongly claimed
that the need for reform in the CPF or even the PSSF
arises from mismanagement or misuse of funds. That
is simply not true. The Contributory Pension Fund is
soundly managed, prudently invested and regularly
reviewed by actuaries. The challenges we face are
demographic. Like many nations around the world, we are grappling with longer life expectancies, fewer contributors and rising benefit demands.
This is not unique to Bermuda. In the United
Kingdom, the state pension age has been raised with
further increases scheduled. Barbados enacted major
pension reforms in 2022 to prevent the depletion of its
National Insurance Fund. The United States Social
Security Trust Fund will be exhausted in just over a
decade if changes are not made. The Bahamas, Trinidad and Tobago, and the British Virgin Islands have
all acknowledged similar pressures and begun their
own difficult but necessary reform journeys. These
realities are shared. And like others, Bermuda must
take action.
276 2 May 2025 Official Hansard Report

Bermuda House of Assembly Mr. Speaker, the time for contemplation is
over. With the reforms to the PSSF moving forward
this year, Social Insurance must be reformed to reflect
the realities of our time: a population living longer and
a contributor base that is no longer [sufficiently large] to sustain the growing number of beneficiaries. When
Social Insurance was put into place, Mr. Speaker, life
expectancy was less than 65. Now life expectancy is
81 years. Advances in modern medicine have extended lifespans, a welcome achievement, but one that
means the fund is now supporting more people for longer periods than it was ever designed to do.
To ensure our pension system can continue,
as a community we must adjust our expectations as we plan for our retirement. Why is this necessary?
Because today’s 45- year-old—who has contributed to
the fund for 20 years, who still has nearly 20 more
years left to contribute —deserves to know that the
fund will be there when they retire. If we fail to act, we
fail them. And this Progressive Labour Party Government will not fail those who have paid into a system with the expectation of receiving a benefit when they
retire.
Mr. Speaker, this Government will bring forward proposals to ensure that Bermuda’s Social Insurance system is not only sustainable, but more equitable. These changes will include adjustments to
contributions combined with a phased increase in the age that contributors can receive social insurance
benefits.
Mr. Speaker, we welcome bipartisan cooperation on this vital national issue, as pension sustainability should not be a partisan matter. It is a question of
economic security for future generations, driven not by politics but by the realities of changing demographics.
However, Mr. Speaker, the Government remains fully committed to our policy of increasing sen-iors’ pensions in line with the rate of inflation and will
do so again this year. However, until a full Social Insurance reform package is implemented in 2026, that
continued commitment, while necessary to protect our
seniors, also means that there must be increased contributions.
Mr. Speaker, the Progressive Labour Party
has demonstrated consistent fiscal responsibility. We have balanced the budget while supporting families,
investing in housing and expanding health care. Our
legacy will be one of sound economic management —
not only by balancing the books but by ensuring that our public pensions are stable and fair for generations to come.
That, Mr. Speaker, is the true test of leadership, the true record of fiscal responsibility —doing
what is right, even if it is hard.

PROGRESS ON TAX REFORM

Hon. E. David Burt: Mr. Speaker, meaningful progress has been made to modernise Bermuda’s tax system. Reforms must be anchored in fairness, aligned with global standards, and focused on longterm sustainability. The introduction of the corporate
income tax (CIT) marks a major shift, and with implementation now underway, broader reforms are ex-pected to ensure Bermuda remains a jurisdiction of
choice for international business.

Corporate Income Tax

Hon. E. David Burt: Mr. Speaker, on the 1
st of January 2025, Bermuda’s new corporate income tax regime took effect, and the new Corporate Income Tax
Agency [CITA] has been set up to administer this new
regime. The Corporate Income Tax Agency’s role is
paramount to reinforcing Bermuda's continuing commitment to global compliance and transparency and
maintaining Bermuda's international competitive positioning.
A tax professional with significant relevant
experience joined the CITA as CEO in January 2025.
He is in the process of progressing the workplan and road map, including hiring further qualified employees
to operate the agency to ensure that the implementation is a success.
As part of the road map, the agency is implementing a Tax Administration Platform [TAP] which will be the key interface and collection vehicle for tax-payers. This platform will provide a modern digital interface so that taxpayers can liaise effectively with the
agency. The CITA is tasked with balancing the effec-tive collection and determination of tax liabilities with
the need to minimise taxpayers’ administration and
compliance costs.
Mr. Speaker, the CITA has been granted an
operational grant of $4.78 million in this fiscal year,
which is in line with the current year grant. Further
funding will be required in the current year to support
successful implementation of the IT system infrastructure and to ensure that there are the required staff and
related resources. It is envisaged that the CITA will be
self-funding in future years through the interest from
revenues that they collect, and any additional funding for this year will likely be as a loan against that future expected revenue.
The full year tax filings for 2025 will be due in
2026; however, the agency will collect the first instal-ments in August of 2025. This budget includes prudent revenue estimates of $187.5 million and allows
sufficient headroom to support any variability in re-ceipts and, as necessary, adjustments to payments
made.
Mr. Speaker, the Corporate Income Tax
Agency and the Ministry of Finance will continue to work together on all legislative changes relating to the
corporate income tax. We will continue to hold public consultations to ensure that legislation is developed to
meet our international obligations while addressing
the needs of our community.


Bermuda House of Assembly Recent Global Developments

Hon. E. David Burt: Mr. Speaker, the work to implement the new corporate income tax has required a herculean effort from Ministry of Finance staff, exter-nal technical experts, industry bodies and colleagues
at the Corporate Income Tax Agency. We are grateful
for the support and will maintain this collaborative approach as we continue to develop legislation in support of successful implementation.
Mr. Speaker, we acknowledge that work is
ongoing globally to finalise the details of the Global
Tax Framework, and we are actively engaged in monitoring developments through our international advocacy. Of course, there are ongoing discussions on
how best to achieve the balance of tax sovereignty,
certainty and fairness. Bermuda will continue to partic-ipate in these discussions to support the achievement
of a fair outcome for all. We recognise that this is a
significant change in the jurisdiction’s tax framework
and that successful implementation of the corporate income tax is an important step required for this jurisdiction to remain globally competitive.

Tax Reform Commission
Hon. E. David Burt: Mr. Speaker, this change in our
framework requires diverse thinking and collaboration
amongst those with technical expertise who have a
vested interest in a stable and secure economic future
for our Island. The Tax Reform Commission [TRC] is nearing the conclusion of its work to make recommendations to the Government on tax reform to sustain Bermuda’s economic strengths, reduce the cost of living and doing business and to support increased
equity with the advent of the new corporate income tax.
The commission’s work has significantly progressed through three key workstreams:
First, Mr. Speaker, they are reviewing the implications of the CIT for local and international busi-ness. They also have a broader remit to recommend a
framework to encourage investment and economic
activity in Bermuda through appropriate incentives.
Second, the focus is on reducing the cost of
living and business operations and the opportunity to
assist with equity in Bermuda. This includes evaluating the social and economic impacts of proposed reforms on various demographics and modelling the
impacts of revising two larger cost categories —payroll
tax and health care—for both individuals and companies.
Third, the Tax Reform Commission have been
working to inform, educate and engage stakeholders. This education has been through town hall meetings,
radio and a website for public engagement. Over 30 stakeholder group meetings have been held since the
start of the Tax Reform Commission’s work. This “ listening tour ” has provided a strong indication of the various stakeholder preferences that the commission will seek to address over the medium term through
their recommendations.
The Government looks forward to receiving
the report of the Tax Reform Commission in June 2025 and is committed to implementing recommendations arising from their report during the 2025/26 fiscal
year. This will provide stability and certainty to our
international business community while embracing the
reforms that may bring fairness to Bermuda's tax system.

Making Government Work Better for You
Hon. E. David Burt: Mr. Speaker, last year as promised in the 2024 Budget Statement, the Government launched the Red Tape Reduction Consultation, invit-ing feedback from individuals, businesses and organisations across Bermuda. This consultation closed in
May 2024 and received nearly 100 submissions reflecting a wide range of thoughtful suggestions on how
to streamline processes, enhance accessibility and
make government services more efficient.
Since then, we have honoured that call by
advancing a series of impactful enhancements
grounded in the feedback we received.
Mr. Speaker, on 1 July 2024, the Government
launched pay.gov.bm, initially enabling residents to
pay for parking tickets quickly and conveniently online.
This platform will continue to expand, eventually supporting nearly all transactions that [currently] require a
visit to a cashier.
Mr. Speaker, in February we upgraded the
Online Services section of the Government’s website. This new site offers simplified navigation, enhanced
search functionality, digital application submissions,
permit requests and online payments.
Additionally, in response to the public's requests for more accessible services for Social Insurance needs, the Department of Social Insurance has
enhanced its digital capabilities. Applications for pensions, name changes, contribution records and vari-ous benefits can now be accessed online via socialinsurance.gov.bm. This move enhances convenience and significantly cuts down on paperwork and
processing time.
Mr. Speaker, one specific area for which respondents to the Red Tape Reduction consultation submitted ideas was simplifying processes at the
Transport Control Department [TCD]. The Govern-ment took this feedback on board and implemented
more digitised services for TCD. On the 31
st of March
this year, the department launched the first phase of
these services, which are now available on at forms.gov.bm with online applications for Project Ride
Instructors; Exemptions for Tint, Seatbelt, Signage and Licensing Fees; and Importation and Replacement of Vehicles and Vehicle Parts.
278 2 May 2025 Official Hansard Report

Bermuda House of Assembly These services represent just the beginning.
In the coming months, more TCD services and applications will be digitised, continuing our work to modernise how residents interact with government services by reducing in- person visits, eliminating outdated manual processes and increasing processing efficiency.
Mr. Speaker, we are delivering on the responses made in the Red Tape Reduction Consultation.
The combined investment across government
in new IT programmes and applications is $15 million.
This year we will see more applications placed online,
additional online services launched and improved customer experiences from the Department of Immigration to the Judiciary, to the Office of the Tax Commissioner, and on public transport. To aid in simplifying navigation of government services and laws, we will
implement AI -powered customer support, allowing
people to better find the information they need from
the government at any time, not just during working hours.
Cutting red tape is not merely about eliminating unnecessary steps; it is also about reshaping the way people experience and interact with the govern-ment. While there is still work to do, Mr. Speaker, the
progress we have made demonstrates our commitment to listening to the people we serve. We will con-tinue to modernise, streamline and innovate, making it
easier for Bermudians to get access to the services
they need.

Acknowledgements
Hon. E. David Burt: Mr. Speaker, before I conclude
my presentation today, I must thank the persons who made this budget surplus a reality. Though I serve as Premier and Minister of Finance, today I stand here as
a representative of this Government, and though I deliver the speech, many others have done the work.
I wish to pay homage to the Ministers and the
Public Service Executive, the Heads of Departments
and the Ministry Controllers who have laboured to ensure that we complete the Estimates of Revenue and Expenditure in good time.
I would like to thank the team at the Ministry
of Finance led by the Financial Secretary, Mr. Chidoz-ie Ofoego, who is here in the Chamber, who support
the work of the Minister of Finance in preparing the
annual budget. I wish to also express a special thank -
you to the members of the Budget Office, led by the
Budget Director Ms. Tina Tucker, who is also here
with us in the Chamber, who work with ministries to
ensure budget control and the preparation of this
year's Budget Book, and the communications team
who ensure that this document is printed on time.
Thank you.
I also, Mr. Speaker, must thank the Junior
Minister of Finance, the Honourable Minister Wayne Furbert, who I can say, without his help and assistance, neither this Budget Statement nor the Estimates of Revenue and Expenditure as they were presented today would have been possible.
Thank you, Wayne.
Finally, Mr. Speaker, I would like to thank the
public officers who deliver government services to the residents of Bermuda, and I must recognise the Honourable Members of the Government backbenches
who I have no doubt will hold this Government’s feet
to the fire, ensuring that the priorities of the Govern-ment match the feedback from the doorsteps.

Conclusion

Hon. E. David Burt: In conclusion, Mr. Speaker, the
world’s political and economic landscape is shifting
before our very eyes. Institutions that once commanded deference now face growing scepticism. A decade
ago we spoke of adjusting to a new normal . Today,
Mr. Speaker, there is no normal —new or otherwise.
We are global citizens shaped by a shared
past. Nations that once found common ground in
measured immigration, public engagement and expanding trade find those shared goals now under
strain. And while today we can still find stability, the
real question is, What does tomorrow bring?
Mr. Speaker, these global changes demand
that Bermuda be prepared to meet the challenges that
could so easily beset us. Uncertainty must be
matched by strong leadership and a clear vision for
the future. The Progressive Labour Party has always
been a party of vision both in Opposition and in Gov-ernment. In January of 1997, the Jennifer Smith who
was not yet Premier set out this party’s timeless vision
for the International Companies Division of the Chamber of Commerce. At that time, she said, Mr. Speaker,
and I quote:
“Bermuda must become a place where we
work together to meet our responsibilities, where people’s differences are respected so that we can live
together in harmony, a place where hard work is rewarded fairly and equitably .”
“There is only one way an economy like ours
can succeed in the new global marketplace. The greater the opportunities in education and work for
each of us, the better the prosperity for all of us . . .
Fairness will be the rule and social justice the hallmark of public policy.” —Dame Jennifer H. Smith, JP,
January 1997.
Mr. Speaker, building that fairer, more stable
and more affordable Bermuda is no slogan formulated
in the quest for votes. It is the core philosophy that
undergirds all that the Progressive Labour Party, over
generations, has set out to do. Three successive
mandates won in varying economic conditions are a
clear indication that the people of Bermuda know that
we, the Progressive Labour Party, have their best interests at heart.


Bermuda House of Assembly Mr. Speaker, our economic success does not
make us triumphant. The facts in support of our policies’ positive impact on the people of Bermuda represent a discharge of the solemn trust placed in us by
the people. The pride in what we have achieved since 2017 is tempered by a healthy dose of humility, because we know that there is much more work to be
done.
Mr. Speaker, as I commend these Estimates
of Revenue and Expenditure to this Honourable
House, I do so on behalf of my parliamentary col-leagues and the members of the Bermuda Progressive Labour Party —staying true to the ideals of those
women and men who ushered in the greatest era of
political change Bermuda has seen. When we act together, when we lead with fairness and when we keep
our focus on what matters —the people— Bermuda
and Bermudians will always prosper.
This budget further cements our determination
that all should benefit from the economic success of Bermuda, and Mr. Speaker, this budget will deliver a fairer, more stable and more affordable Bermuda for
all.
Thank you, Mr. Speaker.

[Desk thumping]

There is one Government Bill to be introduced this morning, and it is in the name of the
Minister of National Security.

BILL

FIRST READING

EXPLOSIVE SUBSTANCES
AMENDMENT ACT 2025
Hon. Michael A. Weeks: Good morning, Mr. Speaker.
Good morning, colleagues and listening audience.
Mr. Speaker, I am introducing the following
Bill for its first reading so that it may be placed on the Order Paper for the next day of meeting: the Explosive Substances Amendment Act 2025.

Are there any objections to that?
No objections.
The House now stands adjourned until next
Friday, the 9
th of May, at 10:00 am.
Everyone have a good weekend, and we will
see you next week.

[Gavel]
280 2 May 2025 Official Hansard Report

Bermuda House of Assembly [At 12:02 pm, the House stood adjourned until
10:00 am Friday, 9 May 2025.]