March 21, 2016

Minister.
Hon. E. T. (Bob) Richards: The terms . . . I do not
have the numbers for the terms other than the fact that the Government continues in its normal course, if
it gives guarantees, to get remunerated, similar to the guarantee that the Government gave for the Bank of Butterfield preferred share. The Government got r emunerated.
That precedent was really set that if the Government is going to put its balance sheet behind a private sector enterprise, that we would not rent out our balance sheet for free. And believe me, I was
asked to rent out our balance sheet for free, and we refused. And the normal sort of legal parameters that go with it, this is pretty much the standard guarantee
that we give, but I do not have the exact fees that we
are charging or anything like that. And if the Member wants it, I can get it for him.

The Honourable Minister offered
to provide those. I would accept that he should pr ovide them, but I think that according to the Act, they
should be tabled in this Parliament so the entire country can know what the terms and conditions are.
Mr. Speaker, as a supplementary, will the
Honourable Minister please inform this Honourable
House the individual tranches of funding that have
been provided by the named companies in this Mor-gan’s Point development? The Speaker: Yes, Minister.

Hon. E. T. (Bob) Richards: Mr. Speaker, there were
four tranches, three from reinsurance companies in
Bermuda, AXIS, Validus, and Arch; and one from a US-based lender. I do not have the exact amounts of
those. But I can also get them for the Honourable
Member.

Mr. Speaker, the question is,
Given that the Ritz -Carlton Reserve, which has been
announced, does not come on board until 2018, the question I am asking the Minister is, is he aware of the
criteria that has to be fulfilled by the company, which we are providing this guarantee for —what criteria
must be fulfilled in order to complete the branding of Ritz?

Minister.

Hon. E. T. (Bob) Richards: I am not familiar with that,
although I have to say that the company is going to
make a separate announcement for the branding. But we know that because of the brand that is connected
to this, as I mentioned in this Honourable House, I
guess, a year or so ago, that there were extra costs involved because the quality of the project had to be higher than normal. That is why we went from the original amount we thought we had to guarantee to this higher amount of $165 million. We know that much, that the quality of the construction and the
amenities have to be that much better for Ritz R eserve.
Other than that, the details of the requir ements between Morgan’s Point Limited and the Ritz -
Carlton are not known to me.

Honourable Minister.

Hon. E. T. (Bob) Richards: Mr. Speaker, I am aware
that the developers have put up a lot of their own
money. And they have been putting up their own money for the last —I do not know how many years,
keeping this thing going. So they have put up a lot of their own money, and I mean a lot, as in tens of mil-lions of dollars of their own money. So, yes, the de-velopers have put up a lot of their own money.

Minister.
Hon. E. T. (Bob) Richards: Mr. Speaker, picking wi nners and losers? What we are doing is trying to redevelop the tourism sector in this Island, a sector that
has been on decline for 30 years. We are trying to
redevelop, and we are redeveloping, a property that
was left behind by the US military that has been sitting there since the mid- 1990s, vac ant and useless, sitting
there during a time of the former administration where they did nothing with it. But that is what we are doing.
We are not picking winners and losers.

Thank you, Mr. Speaker.
Question for the Minister, Mr. Speaker: On
page 4 of 7 of the Statement, the Minister mentions there, there are Ferry Reach and Marginal Wharf as possible sites for a storage and regasification plant, or
proposed sites, for these types of facilities. Not having
the benefit of the report in front of me, just questions
that (obviously) are preliminary, is this including the possibilities of land or floating possibilities for these two sites?

Minister.
Dr. the Hon. E. Grant Gibbons: Thank you, Mr.
Speaker.
The sites are not being proposed at this point
by Government. This is simply a study looking at the
viability of LNG. These seem to be the two most ec onomically feasible sites. The Ferry Reach site already has oil importation dock facilities there, so that would seem to be a natural possibility. Can you add LNG (or liquefied natural gas) to the existing import facilities on
the Ferry Reach sole site?
The other site that has come up because it is
part of a proposal by a private company is, in fact,
Marginal Wharf. And so, that is the other possibility. That is not to say there could not be other possibilities that could come up in the process, but I think those were the two that the report looked at. And they
looked at the costs and some of the issues associated
with those t wo possible sites. Thank you.

Thank you.
Supplementary, MP? The Leader of the O pposition has a supplementary.

SUPPLEMENTARY

Hon. Marc A. R. Bean: Thank you, Mr. Speaker.
Mr. Speaker, would the Honourable Minister
acknowledge that what he is presenting today is act ually a carbon copy, I would say, of what we did as a government in terms of looking at introducing LNG into Bermuda, in terms of Marginal Wharf or the Ferry Reach projects, it is actually nothing different from what we have previously started?

Honourable Minister.

Dr. the Hon. E. Grant Gibbons: Thank you, Mr.
Speaker.
Mr. Speaker, I would not agree with that. This
is quite a detailed report. And it is one that gets into all
aspects of both importing and being able to manage LNG in Bermuda. I think when the Government took over, there were certainly some very conceptual thoughts about it. But things have moved on consi derably since 2012. Thank you, Mr. Speaker.

Minister.
Dr. the Hon. E. Grant Gibbons: Yes, thanks, Mr .
Speaker.
Mr. Speaker, I think it is probably useful for
Honourable Members to have read the report; and I
understand the Honourable Member has not had a chance to do that yet. But in essence, looking at these
two possible sites —and I stress there may be other
possible sites as well, but these seem to be the most
obvious —one site would involve about $258 million in
capital investment, and the other site would require something closer to $320 million in capital investment.
So the answer in economic terms is there
would be considerable infrastructure investment r equired to be able to import liquefied natural gas, to land it, to regassify it, and then to distribute it, and then use it for generation. Thank you.

Yes, Minister.
Dr. the Hon. E. Grant Gibbons: Thank you, Mr.
Speaker.
Mr. Speaker, the answer is, it is a local co mpany in the sense that the principals are local. Mr.
Oliver Binns is the president of that. But it also has significant overseas partners. The other proposer cer-tainly is the current utility, which is BELCO. But there is still a fair amount of work that needs to be done.
This not something we are going to make a decision
on in the next week and a half.

On page 5, the Honourable
Minister says at the bottom, “it is likely that a combina-tion of options may be employed in order to achieve
the best solution for Bermuda. Of all the potential pr ocurement methods, the most innovative is the Swiss
challenge.” Is the Minister prepared to state that the
Government sees a Swiss challenge and this type of procurement as a credible international option for
Bermuda?

Mr. Minister.
Dr. the Hon. E. Grant Gibbons: Mr. Speaker, I think
it is important to put this report in context. The report is not the Government’s opinion. The report is an
opinion done by an international consulting group
whom we have been using through a good part of the process involved with the interview policy for electri city and also helping with the legislation and a lot of the public meetings. So, the Honourable Member probably would have seen some of these folk in action.
What the report does is it says, There are a
number of ways in which, if Government is prepared
to approve the importation and use of LNG in Ber-muda, and that would require legislative input as well,
then there are a number of ways to do that.
The Swiss challenge issue comes up because
one of the possibilities, as set out in the report, is the
existing private infrastructure at the Ferry Reach ter-minal, which is used for oil importation now. And if that turns out to be what is considered to be a most f avourable option, one of the ways of doing that so you do not have a complete monopolistic approach to us-ing that site is a process called a Swiss challenge, which involves a negotiation followed by an RFP [r equest for proposal], which allows others to get into it, and then the idea of allowing the group that holds t hat
site, which would be SOL [Petroleum], to match that bid. So it is a way of getting some transparency and some competitive aspects into that particular process if that is considered the most favourable site.
The report suggests it could well be, but th e
report also says very clearly that there needs to be
1552 21 March 2016 Official Hansard Report

Bermuda House of Assembly additional work done under a much more detailed basis, looking at certainly that site, the Ferry Reach site,
also the Marginal Wharf site, but there may be other possibilities as well. Thank you, Mr. Speaker.

Yes.
Dr. the Hon. E. Grant Gibbons: Thank you, Mr.
Speaker.
I believe the Minister of Finance has set that
out and the reasons for that in great detail. This is also
a private sector . . . well, as the Statement says, it is
going to be eventually determined, if LNG is ap-proved, by the private sector on the basis of, is it ec onomically feasible and—

Just a minute, just a minute.
I understand and I thought I saw a camera. If I
see anything like that, then [Sergeant -at-Arms], you
make sure that these people in the Gallery, the vis itors . . . rem ind them that they are visitors. And I saw
a camera. I do not know where it came from, but a
light flashed. So, please, keep your eyes open. If that happens, then that visitor is going to have to leave.
Carry on.

Dr. the Hon. E. Grant Gibbons: Thank you, Mr.
Speaker.
This would be a private sector development,
much like BELCO, or anybody else who wishes to
generate electricity, would finance a design and build,
but obviously regulated by the Regulatory Authority.
The airport is a public sector asset, and it is a government -to-government thing. And I think the Minister
of Finance —and I certainly do not want to trespass on
his explanations to date. But it is an entirely different [kind of] project. Thank you.

The Chair will recognise the Honourable Minister of Community, Culture and Sport. Minister Gordon- Pamplin, you have the floor.

Hon. Patricia J. Gordon- Pamplin: Thank you, Mr.
Speaker.
Mr. Speaker, I wish that this Honourable
House would join me in sending congratulations. A
week ago, Teen Services had an event highlighting and honouring the Outstanding Teen of the year. Mr.
Speaker, they had an unprecedented 125 nominees in
various categories. But the outstanding teen was Claire Conyers of Warwick Academy, who obtained a 4.9 GPA. I mean, we talk about excellence, Mr. Speaker; this is excellence personified. And I believe that the whole House would want to join me in offering
congratulations to Ms. Conyers on her outstanding achievement.
In addition, Mr. Speaker, on Thursday night,
the Ministry had the privilege of hosting the Athletes of the Year Awards, Sportsperson of the Year Award. And apart from the fact that there were many categories and many people who were honoured along the
way, I would just like to highlight the Junior Male and Female winners, who were Tyler Smith and Cecilia Wollmann; and the Senior Athletes of the Year were Tyler Butterfiel d and Flora Duffy. And I do believe that
the Honourable House would probably want to join me by associating with these remarks of congratulations. Thank you.

Thank you, Mr. Speaker.
I would just like this House to send a letter of
congratulations to the Epsilon Beta Lambda Chapter of Alpha Phi Alpha Fraternity, Incorporated, as they
had their annual Black and Gold Ball over the past
weekend, March 12
th. And it was a good time. Once
again, I will declare my interest. I am a member of the Epsilon Beta Lambda Chapter, as well as other brot hers who are in the House as well. But there was a good time had by all.


Bermuda House of Assembly I would like to thank the organising committee
for doing a good job. The speaker who came down hit
on a very emotive topic, but left us a lot to think about. And this chapter does a lot for the community. And I know that the Beautillion is coming up on June 5
th. So
that is something that we should all look forward to as well. But once again, I would like to thank and congratulate the brothers of the Epsilon Beta Lambda
Chapter of Alpha Phi Alpha Fraternity, Incorporated.

Thank you, Honourable Member.
The Chair will recognise the Honourable
Member, the Minister of Economic Development, Dr. Gibbons.
Dr. the Hon. E. Grant Gibbons: Thank you, Mr.
Speaker.
Mr. Speaker, I rise this morning to ask that the
House send congratulations to Jarion Richardson, who has just launched a compliance services firm
called Certainty. I think this is particularly close to my heart and a few others on this side, because we have been working very closely with the Regulatory Com-pliance Association, and we see a lot of opportunity
for younger Bermudians in the financial services area,
with compliance. Honourable Member Commissiong would like to be associated. As Honourable Members will be aware, there are a lot of regulated financial services -based businesses here, everything from
trusts to funds to insurance, and certainly asset management, not to mention banking and law firms.
So, I think this is a great initiative by Mr.
Richardson, and I think it is something that, as we get
into the courses that are going to be available in the next couple of years, will be also an opportunity for a lot of young Bermudians who wish to get into the
compliance business. Thank you, Mr. Speaker.

Thank you, Mr. Speaker.
Firstly, I just want to send out condolences to
the Foggo family, Keith Foggo, in particular, I think
most people will know his brother, Franklin Foggo. And the Foggo name is synonymous with St. David’s,
so he will be sadly missed by the St. David’s comm unity, Mr. Speaker.
But I have to rise and also be associated with
the congratulatory remarks that the Honourable Mini ster of Community, Culture and Sports made regarding
the Teen Services awards. It is a phenomenal event.
And the reason I say that, Mr. Speaker, is not only
because it recognises academic excellence, but it recognises excellence in every arena— in the arts and
the like, Mr. Speaker. And it speaks to the talent that we grow within our schools in Bermuda. It is abs olutely phenomenal. And indeed, Ms. Conyers was the Overall Most Outstanding Teen for Bermuda, and she
did an absolutely superb job.
But I also want to say thank you to those who
organised that event, the director and her team. You
know, they are able to put that type of event together
every year in spite of the financial challenges, be-cause of the fact that it is so important to recognise
the talent of our young ones in Bermuda. So, co ngratulat ions to the Teen Services department, who do
a phenomenal job in putting together that event as
well. Thank you, Mr. Speaker.

Good morning.
Hon. Shawn G. Crockwell: Mr. Speaker, the last time
I stood in this Honourable House, I did so in the c apacity as the Minister of Tourism Development and
Transport, a position I had the honour to hold for just over three years. Today I no longer hold that position, Mr. Speaker, and due to the abrupt nature of my de-parture, I did not have the opportunity to appropriately thank the numerous civil servants and managers in
the Ministry for their outstanding service. And so, Mr. Speaker, with your indulgence, I would like to take the opportunity at this time.
Mr. Speaker, I had a talented management
team at the Ministry, and I woul d like to publicly thank
my former Permanent Secretary, Mr. Francis Richar dson. He was a steadfast and calming leader, a con-summate professional and a consummate civil ser-vant. And he has provided the Government and this community with excellent service.
I would like to thank, Mr. Speaker, all the ferry
workers, the bus operators, mechanics, surveyors, traffic officers, examiners, administration workers —
everyone who worked within the Ministry —for their
hard work. Sometimes, things got a little testy, partic ularly with Marine and Ports, Mr. Speaker. But we a lways worked through our issues for the betterment of
Bermuda.
Mr. Speaker, I did have the opportunity to go
to the Transport Control Department on Friday to clear
out my office. And while I moved into the lobby, Mr. Speaker, the staff who were on the front line stopped what they were doing. Some took to their feet, but
they all applauded me as I walked through that ground
level. It was one of the most moving experiences of my life. They came up to me. We hugged. And I want
to say to all of them, Thank you for that gesture. Thank you for that validation. And I will certainly visit
them from time to time. It is my birthday this month,
1554 21 March 2016 Official Hansard Report

Bermuda House of Assembly Mr. Speaker, so I always bring cake to work. So I want
the staff to know I will be bringing cake to work next
week as well.
So, Mr. Speaker, there are also two heads of
departments that I want to also single out. It is not good practice generally to single out individuals, but I will risk it today because of their exemplary service.
They are Mrs. Jasmin Smith, who served as the Assistant Director at the former Department of Tourism and then as the Director of the Transport Control Depar tment; and Mr. Aaron Adderley, Mr. Speaker, who is the General Manager of Airport Operations. You will
be pleased to know he is also a fellow Lily White fan,
Mr. Speaker. So I want to say to them, Thank you. Thank you so much for . . . I do not want the people to
think that I am a fellow . . . I am a You Never Walk Alone [fan], Mr. Speaker. But I just want to say thank
you to them, and I appreciate it.

Thank you, thank you, Honourable
Member. Thank you, Honourable Member.
The Chair will now take the Honourable Member from constituency 6. I think he was in line.
Hon. Wayne L. Furbert: Thank you, Mr. Speaker.
Mr. Speaker, first of all, let me congratulate
my friend, the Honourable Shawn Crockwell, and
thank him for the service. He has served in the Minis-try of Tourism for three years. Having been in that place myself, I know exactly the challenges that he
had. There is no doubt that he has accomplished
some things while there as Minister of Tourism.
Also, Mr. Speaker, I would like to congratulate
you for stepping out and allowing that significant m otion last week, I think, which set the trend for what happened historically during the week.
And that leads me to the point, Mr. Speaker,
that I would like to congratulate and thank Rev. Tweed; Chris Furbert [Bermuda Industrial Union] President; and Jason Hayward for the way they co nducted themselves up here during the last week and
for what they accomplished for Bermuda.
Also, I would like to thank and congratulate
the police for the way they conducted themselves, particularly at the very beginning when there was a little tension. But you realise after the heat came down, everybody got along and the whole emotion
part disappeared and the police worked along with the
people of Bermuda up here.
Also, I would like to congratulate Enda Matthie
for her long stay up here for, I think it was seven, eight —

She is still here.

Hon. Wayne L. Furbert: She is still here, still here. I
think she is waiting now to see whether there are ind ividuals for the Bill itself. But we would like to congrat ulate her for her heartiness for taking the challenge upon herself. It must be tough to be here for a long period of time without eating, but her cause has def initely sparked a move in Bermuda.
And, Mr. Speaker, of course, without failure, I
have to congratulate and thank the people of Bermuda. There was no doubt that the people of Ber-muda came together for the first time in history,
blocked our doors and basically put us on suspension
with pay for a whole week. And it was definitely som ething that I have never seen before in Bermuda. But I guess I can probably say, Mr. Speaker, that it sent the
message not only to the ruling government, but future governments, that the people of Bermuda are the
people whom we represent, and that we must listen.
And at the end of the day, if we do not listen, as my
mother tells me, we will feel.
So, Mr. Speaker, as I said, it was an interes ting week. And I just wish to congratulate everyone who played a part —of course, my honourable colleague, the Honourable Walton Brown, who at the very beginning started the process. And I remember his talking about civil disobedience and things like
that. And I said, Wow, Walton. But his dreams and
what he wanted to accomplish worked on behalf of the people of Bermuda.
Thank you very much.

I was surprised
that I am going to be associated with someone who
has passed away, and the Member who stood to her feet did not refer to the gentleman by his nickname. Because Keith “Breed” Foggo is one of those individuals, Mr. Speaker, who actually kept the thought
and the nickname going for the people of St. David’s.
And as his nickname may say, Breed Foggo
was indeed indicative of the strong breed that we
have in the people of St. David’s. In fact, I often forget what Rocky's, my cousin Rocky, what his real name
is. And of course, that was his son. His real name, of
course, was Lawrence. But often, you have to stop
and think, What’s the real name? But it was Breed
Foggo who was synonymous with continuing the nic kname policy of those from St. David’s. T he family, his
mother, of course, Joan Bagley, died not too long ago, was also a close friend of my family. He will be greatly
missed by not only the people of St. David’s but the people of Barritt’s, for whom he worked for a long time. And I believe he was also a police officer. So I am very pleased to be associated.


Bermuda House of Assembly Mr. Speaker, I would also like to acknowledge
the Bermuda Cancer and Health Centre. The Bermuda Cancer and Health Centre, which many people recognise for their providing mammograms, and su pporting those individuals who experience and go through the trials and tribulations of having cancer, have announced a scholarship programme. The
scholarship programme, the deadline for which, I believe, is the 1
st of June, is to help to finance those individuals who apply or are recognised to have followed in the footsteps of the health field. So I would encourage those individuals, or those families who have children who are off the Island looking into the
field of health, who are studying in health, that t hey
might take the initiative to apply for the scholarship
that is now being introduced by Bermuda Cancer and Health Centre.
Thank you, Mr. Speaker.

Suffice it to say that I too
associate with his comments.
I also associate with the comments by the
Member who just took her seat, from constituency 4,
MP Roberts -Holshouser. Mr. Breed Foggo was also a
cousin to my wife. And also [I would like to associate myself with] the comments expressed on his behalf by
my colleague on this side of the aisle, Ms. Lovitta Foggo, our Whip.
But, Mr. Speaker, more principally, I am getting up on my feet here today to offer condolences to the family of Mr. Joseph L. Repose, from Warwick
Parish. Mr. Glen Smith, the MP for constituency 14,
also wishes to be associated, along with the Gover nment Whip, Mr. Cole Simons. Mr. Joe, as he was
called by me anyway, affectionately, and we began to develop our relationship, Mr. Speaker, while having morning breakfast over at the Bermy Cuisine, starting from about 2005 or 2006 or so. And we went there
and met every morning, just about four or five mor nings per week. And a friendship grew between us.
Certainly, I did not play at marbles with Joe, Mr. R epose. But our friendship developed, and I always ad-mired his integrity and his honesty and his commit-ment to Bermuda, as someone from the Portuguese
side of our family. And again, I offer my condolences
to his lovely wife, Barbara, and his children. Thank you, Mr. Speaker.

Thank you, Honourable Member.
The Chair will recognise first the Honourable
Minister Atherden, the Minister for Health, Seniors and
the Environment.

Hon. Jeanne J. Atherden: Thank you, Mr. Speaker.
Mr. Speaker, I rise today to ask the House to
send congratulations to all of those who associated
with the Ocean Vet launch. This is a series that features Neil Burnie and all of the work that was done to
go and look at the shark project and to look at all of
the things that are happening in Bermuda. Mr. Speaker, to see Bermuda and to see what was done
there and to know this is going to have worldwide circulation was truly phenomenal. And it just let you know that everybody who was associated put a lot of time and effort and actually had some very dangerous
activities. But it showed Bermuda really well.
Mr. Speaker, I would also like to have congratulations sent to those associated with the Green-rock project. On Saturday night, it was really breat htaking to be down at the waterfront property at 8:30,
when all of the lights went out, to have what we call the Earth Hour. Minister Gibbons would like to be as-sociated. And from 8:00 to 8:30, it was really ph enomenal. I participated in the 5K walk, and to walk around Hamilton and to see everybody understanding that we have to do something about conserving our energy and—
[Inaudible interjection]

Sorry. Sorry, Mr. Speaker.
Hon. Jeanne J. Atherden: Thank you, Mr. Speaker.
We have to do something about conserving
our energy. And to know that this is the eighth anniversary of the Earth Hour, I think all of us in Bermuda have to recognise that, bearing in mind what Dr. Gi bbons was talking about earlier, we have to do som ething about conserving energy. And whatever we can
do as individuals, it becomes magnified as a country.
Thank you, Mr. Speaker.

Thank you, Mr. Speaker, and
good morning to you. Good morning, Mr. Speaker.
Mr. Speaker, I would like to associate myself
with the remarks, first of all, for Keith Breed Foggo. I
met Mr. Foggo, Mr. Speaker, many moons ago now in another life. I used to do construction. And I was wor king on his house. I was one of the guys working on his house. And he had a big pig in his yard. I do not know if people knew that he had a big sow in his yard. And one of my construction colleagues used to open the gate. And this pig used to chase the guys.

[Laughter]

It was a big sow. So I have
some fond memories of Keith. He and I actually ended up becoming pretty good friends over the years. But Keith was quite a fellow. And he had another guy, I
think some St. David’s Islanders may know him to be
his best friend. We called him Stacy Keach. (What
was his real name?) Okay. But anyway, his nickname
was Stacy Keach because he looked just like the actor Stacy Keach. But between those two characters,
that was my introduction into St. David’s when I was
there doing that construction with that pig. And the
sight of that sow has always been imprinted on me.
Mr. Speaker, I would like to offer my condolences to the family of William Pavy. One of his nep hews ac tually sits in this Honourable House, my colleague, MP Walter Roban. I would like to associate the Honourable Minister Gordon- Pamplin with those
remarks of condolence for Mr. William Pavy.
Mr. Speaker, moving on to some congratul atory remarks, I would like to be associated with the remarks by the Honourable Minister of Community,
Culture and Sports on Teen Services. Every year, I
am normally there in support of our outstanding teens. But as most of the Members of the House know, I have been sick for a few weeks. I had to miss it. And that was a real regret of mine because I like to see the
exploits of our youngsters. And that was good.
And also, I would like to be associated with
the sports awards comments by the Honourable Mi nister of Community, Culture and Sports. Again, I was
unable to attend. But hats off to those outstanding athletes.
Mr. Speaker, also, I would like to offer congratulatory remarks sent by the House to Mr. Cochise Burgess. I have had this in my bag for quite some time, but obviously, we know that last week we were not here. But Mr. Cochise Burgess is a young Ber-mudian. He is currently studying fashion out in T oronto. And he was called by the Huffington Post in
Canada probably one of the coolest models to walk to
the Toronto Men’s Fashion Week. And actually, he is the nephew of ZBM photographer, Mr. Trevor Lindsay. So I would definitely like to offer congratulatory r emarks to Mr. Cochise Burgess and all of his family. Before I take my seat, Mr. Speaker, I have
saved the best —

[Timber be eps]

Thank you, Mr. Speaker.
On a sad note, Mr. Speaker —and I would like
to associate all of my colleagues on this side—can we have a letter of condolences sent to the family of Ms.
Tinee Furbert, sister -in-law to the Member from constituency 6, because her mother, Ms. Carla Davida
Hunt, passed away last week. A special part of me,
anyone who grew up in Devil’s Hole, knew the Brangman family, knew about the homestead over by
the cricket field and would have known it was a tr emendous loss for them.
But on a lighter note, I would like to associate
myself with the comments about the Teen Service
Awards. It is something I have been involved in for the
last 10 years, the Teen Service Awards, and it was
something I would not miss for the world. So in fact, I did show up, gave my presentation and left because I
had another function. So unfortunately, I did not get to stay.
Also, I would like to associate myself with the
comments for Alpha Phi Alpha Fraternity, Incorp orated. Not only did they have a phenomenal Black and Gold Ball; they also had a phenomenal week, with the symposium that was aimed at raising men, the better making of men was the theme for the week. And on the Friday morning, there was a leadership breakfast
held for high school seniors. And I would just like to be
associated wit h those remarks as well. Thank you, Mr.
Speaker.

I would just like to
take this opportunity to add my voice to the Honourable Wayne Furbert’s comments in regards to the Honourable Member Shawn Crockwell, former Mini ster of Tourism and Transport. Being a person who is
actively involved in tourism, I can say that Mr. Croc kwell has worked tirelessly in an attempt to put our product back where it needs to be. And I have spoken with one of my colleagues, and he told me he does not believe that it would be appropriat e.


Bermuda House of Assembly

He has got a very strong,
promising career ahead of him, and I look forward to
his exploits in the future.
I would like to be associated with the condolences sent to the family of the mother of Ms. Tinee Furbert. She has been very helpful with us over the
years in the community, and we appreciate her sacr ifice and the time that she has given for us.
And, Mr. Speaker, before I take my seat, I
would like to join my colleague in thanking, congrat ulating, honouring, and recognising Ms. Enda Matthie,
who continues to sit outside of Parliament. She continues to sit outside of Parliament on a hunger strike.
And I want to congratulate her because she has taken not just a move that is unusual for Bermudians; we have a culture that tends to punish those who speak out, tends to ostracise. And she faced some horrific racial abuse online, horrific denigration. And she has
stood strong. And it is unusual. I think this is probably
the first time that I can think of in my memory that someone has ever sacrificed in this manner. And I think that we should recognise her.
I hope that she will have due cause to complete her fast soon. Thank you, Mr. Speaker.

Thank you, Mr. Speaker.
Mr. Speaker, first, I would like to associate
myself with the congratulations that have been sent to
the winners at the Outstanding Teen Awards. And I
would like to give special recognition to one of my constituents, Ms. Nia Daley, who actually won two
awards on that evening. She won the Community
Service Award, and she also won the award for Per-forming Arts. Now, Nia is a senior at the Berkeley I nstitute, and she will be graduating this year, and she will be off to attend Howard University in the fall, in the great city of Washington, DC. So I would wish her
well. She is a fine constituent. She is a fine young
lady. And it proves that we produce some excellent —

And it is a fine institution. That
school, most of its alumni . . . well, I will put it that way.
To move on, Mr. Speaker, I would like to extend als o congratulations, keeping it local, to Pembroke West Central. I would like to extend my congratulations to the Western Stars Sports Club and the Dandy Town Hornets, who have won yet another premier league division title.

1558 21 March 2016 Official Hansard Report

Bermuda House of Assembly [Desk thumping]

And I will most certainly associate
the Honourable Member from constituency 16 and the
Honourable Leader of the Opposition in the congrat ulations for the Western Stars Sports Club on their achievement, once again proving that they recently
continue to be one of the most dominant teams in
Bermuda’s football, but continuing a very long run of lots and lots and lots of titles and trophies.

[Inaudible interjections]

Yes, and a special shout -out to the
Coach, Mr. Jomar Wilkinson.
And finally, Mr. Speaker, I would like to add
the congratulations on this side to the people of this
country, for the demonstration of people power which we have seen over the last week, and especially that
to Ms. Enda Matthie, who kind of started that motion.
It is gratifying to see people making sure they stand
up to make sure that they are heard. And it is som ething that, as I told many persons when I came t owards the House on Monday, I was overcome with
emotion. And it was certainly a powerful sight to see
and to witness.
Thank you, Mr. Speaker.

Mr. Speaker, I just rise this
morning on first a sad note, to send condolences to the family of Mr. Richard Santos. Mr. Santos was a
former employee of the Department of Child and Fam-ily Services. I am going to associate the Shadow Min-ister of Community, Culture and Sports and the Minis-ter of Community, Culture and Sports, with those r emarks.
On a lighter note, I just want to rise this mor ning to thank the organisers of the Palm Sunday Walk,
which took place yesterday. MP Susan Jackson and I were there. The walk was very long. I did not think that it was going to be that long. We walked through Pembroke. But after my son’s tumbling down the
marsh, we actually managed to finish, un- dramatically,
in an hour and a half. So just want to thank the organisers of that because it was a great walk. And ever ybody who came out definitely enjoyed it.
Before I take my seat, I just want to be ass ociated with the remarks by the Minister of Community, Culture and Sports on the congratulating of the 35
th
Annual Sports Awards. I was in attendance last week, Thursday, and I can say that I was very impressed with the variety of nominees and the award winners who won. I must say I was rooting for my cousin, S akari Famous, to win the Junior Female Athlete of the Year, but she did not.
Ms. Wollmann definitely deserved it, and I
think everybody who got awards and the awardees were definitely well recognised. And they all have rep-resented Bermuda internationally in some form. And I think that is one thing that should be acknowledged, because these athletes do sacrifice their time. And I
was definitely proud that night of everybody involved.
Thank you, Mr. Speaker.

The Chair will recognise the Honourable Minister, E. T. Richards. Minister Richards.

Hon. E. T. (Bob) Richards: Thank you, Mr. Speaker.

FIRST READINGS

LAND TAX AMENDMENT (NO. 2) ACT 2016
Hon. E. T. (Bob) Richards: Mr. Speaker, I am intr oducing the following Bill, which according to section
36(3) of the Bermuda Constitution requires the Go vernor’s recommendation, so that it may be placed on
the Order Paper for the next day of meeting: the Land
Tax Amendment (No. 2) Act 2016.

Thank you, Minister.
Carry on. I think you have a second one?


Bermuda House of Assembly
INTERNATIONAL COOPERATION (TAX INFORM ATION EXCHANGE AGREEMENTS) AMENDMENT
ACT 2016

Hon. E. T. (Bob) Richards: That is correct, Mr.
Speaker. I am introducing another Bill, the following Bill, for its first reading so that it may be placed on the
Order Paper for the next day of meeting: the Intern ational Cooperation (Tax Information Exchange Agreements) Amendment Act 2016.

Thank you, Minister.
The Chair will now recognise the Minister for
Health, Seniors and the Environment, Minister Atherden.

DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES (CONSEQUENTIAL AMENDMENTS)
ACT 2016

Hon. Jeanne J. Atherden: Mr. Speaker, I am intr oducing the following Bill for its first reading so that it
may be placed on the Order Paper for the next day of
meeting: the Department of Environment and Natural
Resources (Consequential Amendments) Act 2016.

Members, we are now in Committee
of Supply for further consideration of the Estimates of
Revenue and Expenditure for the year 2016/17. This is a 4.5- hour debate. We will be debating Community
and Cultural Affairs.
I call on the Minister in charge to proceed.
Minister, if you would advise of the heads that you will be covering.

MINISTRY OF COMMUNITY, CULTURE A ND
SPORTS
Hon. Patricia J. Gordon -Pamplin: Thank you,
Madam Chairman.
Madam Chairman, I would like to move Heads
71, 20, 23, 52 and 55, which are the Ministry of Community, Culture and Sports Headquarters; Youth,
Sport and Recreation; Child and Family S ervices;
Community and Cultural Affairs; and Financial Assi stance.

Please proceed.
Hon. Patricia J. Gordon -Pamplin: Thank you,
Madam Chairman.
Madam Chairman, I will begin our debate of
the Financial Year 2016/17 estimates of expenditure
and revenue for the Ministry of Community, Culture
and Sports by providing a brief overview of the Mini stry as a whole. I note that the debate today will focus
on Heads 71, 20, 23, 52 and 55.
Madam Chairman, the summary of the Financial Year 2016/17 current account budget estimate for the Ministry is found on page B -225 of the Approved
Estimates of Revenue and Expenditure for the [Fiscal] Year 2016/17 (in the Estimates Book). The Ministry’s total budget estimate for 2016/17 is $88.587 million. This represents an increase of approximately $6.247 million, or 8 per cent compared with the original est imate of $82.340 million for Fiscal Year 2015/16 (page B-225 of the Estimates Book).
Madam Chairman, the breakdown of the Ministry’s current account budget estimates for 2016/17 by head (as shown on page B- 225) is as follows:
• Head 18, Libraries —$1.861 million (5 per cent
decrease);
1560 21 March 2016 Official Hansard Report

Bermuda House of Assembly • Head 19, Archives —$1.294 million (1 per cent
decrease);
• Head 20, Youth, Sport and Recreation—
$9.055 million (5 per cent decrease) ;
• Head 23—Child and Family Services, $15.90
million (7 per cent increase);
• Head 52—Community and Cultural Affairs, $2.939 million (10 per cent decrease);
• Head 55—Financial Assistance, $54.561 mi llion (11 per cent increase);
• Head 71—Ministry Headquarters, $ 2.970 mi llion;
• Ministry total is $88.587 [million], a total of an 8 per cent increase.

Madam Chairman, the summary shows that
budgetary allocations for Heads 71, 23 and 55 have
been increased for Financial Year 2016/17. I will dis-cuss these increases separately when I present the detailed information for each head.

[Pause]
Hon. Patricia J. Gordon -Pamplin: Madam Chai rman, I just lost the light here, so if you would give me
a moment.

Yes, indeed you did.
[Pause]
Hon. Patricia J. Gordon -Pam plin: Madam Chai rman, page B -225 also shows budgetary data for revenue and capital expenditure for the Ministry; I will also
discuss these later in my presentation.
Madam Chairman, first I will discuss the current account expenditure for Head 71, which is the
Ministry Headquarters.

HEAD 71 —MINISTRY HEADQUARTERS

Hon. Patricia J. Gordon -Pamplin: Madam Chai rman, the Financial Year 2016/17 estimates of expen-diture and revenue for Head 71, the Ministry Headquarters, can be found on pages B- 226 to B -229 of
the Estimates Book. Ministry Headquarters is respo nsible for the budget of two business units, the first be-ing Administration, which consists of mainly salaries, administration, and grant expenditure; and the second
being the Mirrors Programme.
Madam Chairman, the Ministry Headquarters
embraces the Ministry’s overall vision to strengthen
the social fabric of our community and supports the mission to provide service to the community by pr eserving our heritage, empowering our people, and
developing and protecting our youth and families. The
Ministry Headquarters strives to ensure good fiscal control across the Ministry and supports the Ministry’s core values of integrity, commitment to excellence and service, accountability, respect, and empowerment
(I CARE, for short).
Madam Chairman, page B -226 shows that the
total budget allocation for the Ministry Headquarters
for 2016/17 is $2.970 million, split between business units 81000, Administration ($2.039 million) and 81020, Mirrors Programme ($930,000). The total
budget allocation represents a net increase of 23 per
cent, or $550,000 more than the original 2015/16 budget of $2.420 million. Madam Chairman, the re asons for this increase will become evident as I pr ogress through my presentation.
Business unit 81000, Administration (page B -
226). Madam Chairman, to assist honourable me mbers in understanding the Financial Year 2016/17 budget for business unit 81000, it is necessary to ex-plain by way of background information that during 2015 a review was undertaken of the Department of Human Affairs, including the Human Rights Commi ssion, resulting in the decision to transition the Com-mission from being an arm of the Department of H uman Affairs to a non- Ministry entity beginning in
2016/17. This transition will enable the Human Rights Commission to have a greater degree of autonomy
that is more in line with international best practice.
Madam Chairman, as part of this restructuring
of the Department of Human Affairs (formerly Head
56), the department will be dissolved as of March 31,
2016, and the Human Affairs administration and policy functions that were previously under business unit
66000 will be transferred to the Ministry Headquarters
(Head 71) under business unit 81000, commencing on April 1
st, 2016. Consequently, the Ministry Headquarters Administration business unit (81000) has an i ncrease in budgetary allocation for Financial Year 2016/17 of $362,000, or 22 per cent, according to
page B -226. This reflects, in part, the transfer of two
posts from business unit 66000 to business unit 81000, corresponding with an increase in full- time
equivalent [FTE] positions from 10 to 12 in the Minis-try Headquarters, as shown on page B- 227.
I note for clarity, Madam Chairman, that from
2016/17 onward, the Human Rights Commi ssion will
appear in the Estimates Book as a non- Ministry D epartment under Head 56, as shown on pages B -17 to
B-19, and as debated in Committee of Supply in this
Honourable House week before last, Wednesday, the
9
th of March.
Business unit 81020, the Mir rors Programme
(page B -226). Madam Chairman, I will now present
information for business unit 81020, the Mirrors Pr ogramme. Madam Chairman, the landscape for youth
development is constantly shifting. But in the face of
evolving technology and new standards at the educ ational and community levels, one thing is certain: Mirrors is a programme that grows with the changing landscape and its focus on personal -development
matters. Mirrors is driven by its passion for safeguar ding Bermuda’s youth, rigorous programme evaluation,


Bermuda House of Assembly eight years of experience, and the results to every
student and adult whom they lead.
Madam Chairman, the Mirrors Programme
increases human capital at the societal level by pr oviding alternative programming through transformation
training and coaching for youth and adults, with the
goal of producing a high performance culture for youth
in education, employment, and reduction in offending/antisocial behaviour. It plays a role in helping to remove obstacles that prevent successes and pr ovides support to encourage youth to achieve their
highest potential. To date, Mirrors has worked with 1,350 youth and 2,254 adults.
Madam Chairman, the budget allocation for
the Mirrors Programme for Financial Year 2016/17 is
$931,000, which represents an increase of $188,000, or 25 per cent over Financial Year 2015/16, as shown
on page B -226. This allocation will allow Mirrors to
hold one intensive residential cycle for the 15- to 18year-old participants (the Community Programme)
with associated trainings, one parent workshop, and five middle school workshops (Coaching for Success Programme). I will explain the increase in budget all ocation for Mirrors in the next section dealing with the
subjective analysis of current account estimates.
Madam Chairman, the Subjective Analysis of
Current Account Estimates is found on page B -227. It
is important to point out that many of the increases
shown in various line items under the subjective analysis are due in part to absorbing the administr ation and policy functions of the former Department of Human Affairs (previously Head 56) into the Ministry Headquarters (Head 71), business unit 81000.
Madam Chairman, the increase in salary -
related expenses for business unit 81000 of $202,000 is directly attributable to the transfer of two posts from
business unit 66000 to business unit 81000, as shown
on page B -227.
Other Personnel Costs —Madam Chairman,
this line item shows a decrease of $3,000 and means that no bonuses will be issued for Financial Year
2016/17 in the Ministry Headquarters as a cost -saving
measure.
Training— Madam Chairman, budget allocated
for training is $224,000 in Financial Year 2016/17, an
increase of $160,000 over the budget allocation for Financial Year 2015/16. The increase in training
budget reflects the increase in local training costs for
services for the Mirrors Programme at a time when in-kind services and corporate grants have decreased.
Travel —Madam Chairman, travel expenditure
is budgeted at $63,000 in 2016/17, which represents an increase of $13,000 over 2015/16. Almost half of
the increase ($7,000) is to offset increases in local
transportation costs (that is, bus fees, rental costs for boats, and trucking fees) and local accommodation costs for overseas consultants in connection with the Mirrors Programme. The remaining $6,000 is assoc i-ated with the transfer of the Human Affairs administr ation function to the Ministry Headquarters. Communications, Advertising and Prom otions —Madam Chairman, budget allocated for communications is $21,000 in 2016/17, an increase of $1,000 over the previous year, and represents a small increase for the Mirrors Programme. Advertising and
promotion is budgeted at $11,000 for 2016/17, an i ncrease of $4,000 from the prior year. Loss of in- kind
services for the Mirrors Programme has caused an
increase in this line item, in- kind services such as external agencies, and internal and sister agencies.
Professional Services —Madam Chairman,
Professional services are budgeted at $303,000 for 2016/17, which represents an increase of $123,000 in
comparison to the prior year. Approximately $40,000 of that increase is due to higher local consulting ser-vices connected with the Mirrors Programme, whilst the remaining portion of the increase (about $80,000)
reflects professional services associated with the administration and policy functions of Human Affairs that have been absorbed by Ministry Headquarters, includ-ing legal services, local consultant services, and board and committee fees.
Rentals —Madam Chairman, at the time the
budget was prepared, the relocation plan for staff from
the former Department of Human Affairs to Ministry Headquarters was not confirmed, and thus an alloc ation of $57,000 was made for rental cost for 2016/17. Madam Chairman, it should be noted that this expe nditure is under review, and it appears that it will be
possible to not
incur this rental cost during 2016/17 by
finding suitable space in Government -owned premises.
Repair and Maintenance/Materials and Supplies—Madam Chairman, the budget allocated for
R&M i s $25,000 in 2016/17, which represents an i ncrease of $8,000 from the prior year. Budget allocated for materials and supplies is $48,000 in 2016/17, which represents an increase of $10,000 over the prior year. As the Ministry Headquarters adjusts to
incorporating the administration and policy function
previously associated with the former Department of Human Affairs, these costs are expected to be lower than budgeted.
Energy —Madam Chairman, the budget allocated for energy is $9,000 for this upcoming fiscal
year, which represents an increase of $7,000 from the prior year. As noted previously, it is expected that some of this cost will be avoided by relocating staff transferred from the Department of Human Affairs to Government -owned premises.
Equipment (minor capital) —Madam Chai rman, the Ministry Headquarters does not expect to purchase any minor capital equipment in 2016/17; hence, there is no change in the allocated budget of $1,000 from the prior year.
1562 21 March 2016 Official Hansard Report

Bermuda House of Assembly Other Expenses —Madam Chairman, the all ocated budget of $1,000 for other expenses relates to
bank charges and commission fees.
Grants and Contributions —Madam Chairman,
the allocated budget for grants and contributions in Ministry Headquarters is $553,000, a net reduction of $30,000, or 5 per cent compared to the prior year.
Page C -18 of the Estimates Book shows that this is
due to a decrease in the allocation for parish council commitments of $55,000 and an increase of $25,000 in the allocation that Ministry Headquarters can use for small grants to local org anisations.
Performance Measures (pages B -228 to B -
229)—Madam Chairman, as shown on page B -228,
the key output measures for business unit 81000, Administration, all reflect very good performance, and this is expected to continue during 2016/17.
Madam Chairman, performance measures,
mainly output measures for the Mirrors Programme,
are outlined on pages B- 228 to B -229. Generally, performance to the end of 2015/16 is forecast to be very
good across all parameters measured. One personal transformation intensive intervention with associated trainings was held in November 2015 for 26 youths
aged 15 to 19. These youths are currently in the nine -
month follow -through phase to prevent future problem
behaviours that could lead to academic failure, offending, lack of employability skills, substance abuse, and violence.
Madam Chairman, the revised figures for
2015/16 show that 329 middle school students partic ipated in six youth academies, compared with 312 st udents in Financial Year 2014/15. The Mirrors mentor-ing programme will be phased out to allow Mirrors to focus on coaching at the middle and high school le vels. The intention is to support the Big Brothers and
Big Sisters organisation for mentoring services.
Madam Chairman, the Mirrors Programme
post programming data indicate that 82 per cent of
past participants committed to education through
graduation or enrolment in education, 92 per cent
have not offended or reoffended, and 41 per cent are
employed. The majority of programme evaluations for youth and adult s suggests very good satisfaction with
the content and experience of the programme.
Madam Chairman, in Financial Year 2014/15,
Mirrors completed the first phase of accreditation under the Bermuda National Standards Committee and
has maintained that standing throughout 2015/16.
Madam Chairman, the Mirrors Alumni and
Friends Association supported Mirrors in raising
$122,000 in 2014/15 through the Taking a Stand for
Youth campaign and corporate grants. The alumni
have pledged to continue to support fund develo pment for Mirrors future programming and to create networks to support participants post programming. Mirrors staff trained coaches under the alumni at the request of past participants who requested ongoing services. Madam Chairman, Mirrors will continue its
partnership with the Mirrors Alumni and Friends Ass ociation to execute a fund- development strategy to be
able to utilise resources and in- kind services from
vendors, which supported Mirrors programming in 2015/16. This approach is expected to continue in 2016/17 and can be loosely described as a growing
public/private partnership between Government and
the corporate community.
Madam Chairman, the Mirrors Alumni and
Friends Association has agreed to support fund d evelopment through the Ed Bloc k Bermuda Celebrity
Classic , an event planned for July 2016, which is designed to generate funding for at -risk youth under the
Mirrors Programme. The long- term goal is to break the
cycle of abuse and neglect and to lay the foundation
for generations of safe and nurturing families through the establishment of a partnership with the Courage House National Support Network for Kids in associ ation with the Ed Block Courage Award Foundation, Inc. Madam Chairman, Mirrors staff members continue to demonstrate their commitment and passion in professional development in coaching and the transformation methodology to better serve programming
needs. Through the partnership with the alumni char-ity, Mirrors expects to acquire training in quantum learning to serve the growing requests from schools for support to impact student achievement. The staff members have different backgrounds and strengths,
but they have one critical thing in common: they are
all passionate about our youths’ success.
Madam Chairman, Dr. Leslie Steede, an external evaluator, completed an evaluation of the Mi rrors Programme’s performance this past year, includ-ing comparisons of cohorts 4 through 10. The performance measures for the Mirrors Programme on
pages B -228 to B -229 are consistent with past a ccomplishments. They demonstrate significant suc-cesses in transforming the lives of at -risk Bermuda
youth in the following areas: self -esteem, life asses sment, goal setting and attainment, and reduced crim inal and antisocial behaviour. Societal level perf ormance for graduation is at 81 per cent two years post
programming; college enrolment is at 15 per cent; and
criminal offending is at 2 per cent, representing a
98 per cent success rate of law -abiding citizens.
Madam Chairman, some 98 per cent of participants (both youths and adults) indicate that, over-all, the Mirrors Programme has had a “beneficial i mpact on me personally” (that is a quote), and 95 per
cent indicate they have more confidence in their own potential to achieve whatever they want. These
measures demonstrate the strength of personal development and the overall accomplishments of the
Mirrors Programme in adding value to our community. Madam Chairman, I would like to take this
opportunity to sincerely thank the volunteers, corpo-rate Bermuda, and everyone on the Mirrors team for


Bermuda House of Assembly their commitment to the development of Bermuda’s
youth.
Capital Acquisitions (page C -13)—Madam
Chairman, with respect to Capital Acquisitions, as
shown on page C -13 of the Estimates Book, capital
funds in the amount of $400,000, previously allocated to the Ministry Headquarters to establish a Human
Services software system, was re- allocated to the D epartment of Child and Family Services in Financial
Year 2015/16. The Ministry’s intention is to take a modular approach to implementation, with emphasis being placed first on improving data management and decision -making in the Department of Child and Family Services.
The ultimate objective is to integrate social
services data across the Ministry and Government -
wide, and also interface with external human services organisations. The process of vendor selection was completed in 2015/16 and work is now expected to
commence in 2016/17 (as shown on page C -13).
Madam Chairman, this concludes my presentation of the allocation for Financial Year 2016/17, the
budget for Head 71, the Ministry Headquarters.

HEAD 20 —YOUTH, SPORT AND RECREATION

Hon. Patricia J. Gordon -Pamplin: I now turn to Head
20, the Department of Youth, Sport and Recreation,
and presenting those estimates as can be found on pages B -238 through B -243 for this coming year.
Madam Chairman, the mission of the Depar tment of Youth, Sport and Recreation is to advance amateur sport, recreation and youth development for all—from leisure activity to athletic excellence—a nd to
strengthen the significant contribution that these initi atives make towards the enhancement of the quality of
life for the total community.
Madam Chairman, the budget allocation for
nine programmes under the Department of Youth,
Sport and Recreation [YSR] in 2016/17 is $9.055 mi llion (pages B -239 and B -240). This is a decrease of
$486,000, or 5 per cent in comparison to the original allocated budget of $9.541 million for Financial Year 2015/16. The estimate of revenue for 2016/17 is $587,000, as shown on page B -241.
Madam Chairman, $2.687 million is allocated
for salaries in 2016/17 and $2.074 million for wages,
as shown on B -240). The FTE [full -time equivalent]
count for Financial Year 2016/17 stands at 98, which
is a 5 per cent decrease in staff in comparison to
2015/16, which can be seen on page B -241.
Madam Chairman, the budget allocation for
grants and contributions for 2016/17 is $2.667 million,
as shown on page B- 240, which is a decrease of
$8,000 in comparison with the prior year’s budget.
This allocation will be disbursed as follows:
• Sports Development Bermuda Football Ass ociation, $300,000;
• YSR Swimming Programme, $25,000; • Bermuda Sport Anti -Doping Authority,
$650,000;
• Bermuda Cricket Board, $100,000;
• Bermuda Olympic Association, $150,000;
• To be allocated among 34 National Sports
Governing Bodies (NSGBs), $342,287.
The subtotal for Sports Development is $1,567,287.
Sports Incentives and Awards Programmes:
• Elite Athlete Fund, $100,000;
• National Jr. Sponsorship, $50,000.
The subtotal for the Sports Incentives and Awards Programme is $150,000.
Sports Facilities Management:
• National Stadium Trustees, $800,000.
That is the subtotal or that area.
Youth Development:
• Youth Grants, $15,000.
And that is the subtotal for that area, giving the com-ponent parts a grand total of $2.667 million.

There are no funds allocated for capital development or capital acquisitions for 2016/17, as shown on page C -13.
Programme 2001, Administration and
Sports —Madam Chairman, page B -239 shows that
the budget allocation for business unit 30045, General Administration, for 2016/17 is $1.401 million. These funds provide for the administration and operations of the Youth, Sport and Recreation Department’s Head-quarters, which is located in the Craig Appin [House]
Building at 8 Wesley Street, Hamilton. In addition, the
Administration Section provides administrative support
for the other eight programmes within the department and is responsible for monitoring departmental spend-ing to ensure that policies and procedures are adhered to in achieving economy, efficiency and effectiveness. The full -time equivalent count for administr ation and sports is 12 for 2016/17, which is consistent with 2015/16, as shown on page B -241.
Programme 2002, Sports Development,
Madam Chairman, the department provides for its
Sports Development Programme through business
unit 30055, Sports Programmes. The Financial Year 2016/17 budget allocation for business unit 30055 has been increased by $38,000 to $1.638 million, as shown on page B -239. This allocation includes grants
for the National Sport Governing Bodies (NSGBs) in
the sum of $1.242 million, and the Bermuda Football
Association (BFA) of $300,000. Under the strict co ntrol of the Sports Development Section, the depar tment continues to ensure that funds used by the
NSGBs are for the development of sport for Bermuda’s senior and junior athletes.
Business unit 30055 also provides for a grant
of $25,000 for YSR’s Departmental Summer Swimming programme, as shown on page C -19. An additional $71,000 in operating costs is covered under this
business unit.
1564 21 March 2016 Official Hansard Report

Bermuda House of Assembly Madam Chairman, this business unit also includes a grant of $650,000 to the Bermuda Sports
Anti-Doping Authority (BSADA). This agency, which is
affiliated to the World Anti -Doping Agency (WADA), is
one of the most important financial items within the Sports Development Section. The Bermuda Sports Anti-Doping Authority remains the National Anti -
Doping Organisation [NADO] for Bermuda. Without the functional presence of this organisation in Ber-muda, it would simply mean that Bermuda would not be able to participate in any international sporting events abroad or host any international sporting events locally. It must be noted that BSADA is in the
final phase of developing an Illicit Drug Policy for
sports in conjunction with the NSGBs. The final document will be presented to Cabinet for ratification.
Madam Chairman, during 2016/17, the department intends to continue focusing on the devel-opment of our senior and junior athletes by supporting
the NSGBs through the grant process. The Depar tment of Youth, Sport and Recreation knows that wit hout this support, many of the athletes will not reach
their optimum potential. The department will also con-tinue to work with other Government agencies to
maintain the department’s sporting and recreational
facilities and will continue hosting sporting events to honour our past and present sporting personalities.
Madam Chairman, 2015 marked the 35
th anniversary of the Government’s Sports Awards. The department received a record number of nominations.
At the conclusion of this event, the department pr esented 30 awards including achievement awards, cit ation awards, and awards to the male and female at hletes of the year at both the senior and junior levels.
And you will note, Madam Chairman, that the winners
of those particular categories were congratulated during the congratulatory session of today’s House. In
addition, for the first time the committee presented junior achievement awards to the top junior athletes in the country. With the inclusions of these awards, the junior and senior athletes and sports administrators
were fully recognised for their contributions to sports
in Bermuda and internationally.
Madam Chairman, I am pleased to report that
senior officers within the department continue to work with many of the major stakeholders to progress the action points identified by NSGBs and included in the
National Sports Policy released in July of 2014. In the
first instance, action teams are focusing on pr ogrammes that require minimal funding and yet are vital to the continued development of sports in Ber-muda. In addition, the department plans to host a sports development conference for sports clubs d esigned to assist the local sporting clubs with fundrais-ing, sports governance and sports development. The department will continue to enhance its social media platform that serves as both an information portal and an avenue to celebrate the athletic achievements of Bermuda’s athletes. Programme 2003, Sports Incentives and
Awards, Madam Chairman, there is no change in the
budget allocation for business unit 30030, Athletic Awards, which stands at $150,000, as shown on page B-239. These funds will continue to support, encourage and provide incentives to our senior and junior athletes to strive for excellence in their personal d evelopment. The Elite Athletes Fund of $100,000, shown on page C -23, is managed by the Bermuda
Olympic Association, who prescribes the requirements for athletes to receive funding having met a local A, B or C standard in their development. Junior athletes are provided assistance through the Junior Athlete
Sponsorship Fund of $50,000, as shown on page C -
22, which is provided to one athlete per sport, as the
most promising up- and-coming athlete. This sponsorship enables exposure to overseas training, coaching or competition, which enhances development.
Programme 2004, Sports Facilities Management, Madam Chairman, the department carries out sports facilities management across five business units, with allocat ions totalling $1.485 million as follows (see page B -239):
• Business unit 30060, Sports Facilities, the
budget is $887,000;
• Business unit 30075, WMC Preece Softball Stadium, $135,000;
• Business unit 30080, WER Joell Tennis St adium, $352,000;
• Business unit 30090, Motor Sport Park,
$64,000; and
• Business unit 30390, Sports Community
Fields, $47,000.

Madam Chairman, funding in business unit
30060, Sports Facilities, includes funding for the N ational Sports Centre’s operational grant of $800,000
for Financial Year 2016/17, which is a decrease of $50,000, or 6 per cent compared to 2015/16. This funding is designated for the operation and maint enance of the National Sports Centre and also provides for the maintenance of the department’s parks
(30090) and recreational fields (30390).
Costs include cleaning supplies, trash rece ptacles, trash bags, field- marking paint, agricultural
supplies and specialised equipment needed for the
upkeep of these facilities. The WMC Preece Softball Stadium (30075) provides for one f ull-time and one
part-time employee to maintain the grounds and i ncludes cost for materials, supplies and electricity.
The WER Joell Tennis Stadium (30080) employs four full -time and two part -time employees. A dditional operating costs are also included in this bus iness unit. The total FTE’s count under sports facilities management is 10 in Financial Year 2016/17, which is consistent with 2015/16 as shown on page B -241.
Programme 2005, Youth Development,
Madam Chairman, page B- 239 shows the allocated
budget of $424,000 for two business units under


Bermuda House of Assembly Youth Development Programme for 2016/17. This
represents a decrease of $4,000, or 1 per cent compared to the prior year. Youth Development Administration, business unit 30210, will receive a budget allocation of $274,000 for 2016/17, which covers sal aries and administrative overheads and is a decrease of $4,000, or 1 per cent from the prior year. In 2016/17
the full -time equivalent count for Youth Development
is three, which is consistent with 2015/16.
Offering opportunities in youth development
plays a fundamental role in supporting Bermuda’s youth. The department will strengthen its outreach via numerous community partnerships as part of its continued focus on developing youth through sport and
recreation. The development of a policy framework
with guidelines on best practices to develop our youth will be a major focus of the department in 2016/17.
Madam Chairman, page B -239 shows that
business unit 30350, Youth Grants, has an allocated
budget of $150,000 for 2016/17, unchanged from the
prior year. In keeping with the department’s philos ophy inspired by the National Sports Policy, which was released in 2014, a portion of Youth Grant funding will be allocated to assist local community sports clubs to
develop afters chool programmes that are sports and
recreation orientated. These programmes must i nclude 40 developmental assets and Character Counts
programmes. The staff of the Department of Youth, Sport and Recreation will be available to assist the community sports c lubs with developing their afterschool programmes.
Madam Chairman, similar to 2015/16, no
funding has been provided for business unit 30360,
Youth Services, in 2016/17, as shown on page B -239.
However, the department will continue liaising with youth services agencies in order to provide strategic
planning, identify best practices and provide opport unities for networking, especially between the agencies
and the sporting fraternities. In addition, the Senior Youth Services Development Officer will participate in third-sector meetings and trainings such as the Chi ldren’s Agenda, to ensure Government has adequate representation.
Madam Chairman, the Department of Youth,
Sport and Recreation Youth Policy Framework will be disseminated for roundtable discussion and feedback. The National Youth Development Policy will provide
guidance towards future strategic planning in youth
services. The policy will identify the building blocks of successful development and assist with the designing of services and programmes to create this foundation.
Programme 2006, Community Centres,
Madam Chairman, the budget allocation for the department’s three community centres, the Centre in
Hamilton (30120), St. George’s Community Centre (30130) and Sandys Community Centre (30146) has been set at $1.307 million, which is a decrease of $192,000, or 13 per cent, compared to budget alloc ation in 2015/16. The Community Centres full -time equivalent count is 22 for 2016/17, which is a reduction of five FTEs, or 19 per cent, compared to 25 in
2015/16, as shown on page B- 241.
Madam Chairman, the three community ce ntres provide an immeasurable opportunity for Ber-mudians of all ages to experience positive recreational opportunities, starting with the very young. The centres offer safe, structured programming, compassionate staff and an opportunity to build positive and effective relationships. As with all Youth, Sport and Rec-reation programmes (this is becoming a tonguetwister for me, Madam Chairman), the community cen-tres are invested in the 40 Developmental Assets,
which are considered by researchers at the Search Institute, a non- profit organisation in Minneapolis,
Minnesota, to be the building blocks of healthy youth development. The developmental assets are 40 va lues, experiences, relationships and qualities that bring many benefits to the young people who have them.
Asset building is alive and well in the Bermuda Government community centres.
Madam Chairman, the music programme, one
of the programmes offered at all three community cen-tres, i s a fine example of asset building, as children
are exposed to the performing arts from an early age. Another programme, the youth advisory committees, also offered at all three centres, give guidance on which programmes would be popular. For example, in addition to the traditional classical music programme
offered, DJ and recording programmes are also avai lable. All community centres offer a seniors’ pr ogramme. The Counsellor in Training (CIT) Programme continues to be a great success at all community cen-tres. A total of 22 persons are employed at the three
centres —16 full -time and six part -time, as shown on
page B -241. In Financial Year 2016/17 there is a r eduction of five personnel, or 19 per cent, in compar ison with 2015/16, due to attrition.
Programme 2007, Camping, Madam Chai rman, the department’s Camping Programme has a budget allocation of $1.021 million for Financial Year
2016/17, which is a $131,000 decrease, or 11 per
cent, compared to 2015/16, as shown on page B -239.
The budget allocation for the Camping Pr ogramme provides for the staffing, operation and administration of five camping facilities, including mai ntenance, repairs, supplies, energy, fuel, wages and
the marine vessels’ operations. In 2016/17, the Cam ping Programme includes a total of nine full -time e mployees, eight of whom maintain the facilities and the
marine vessels and one who is responsible for the administrative duties, which is consistent with Finan-cial Year 2015/16, as shown on page B -241.
Madam Chairman, the camping facilit ies include:
• Darrell’s Island, which is the largest facility
and accommodates 14 rustic campsites, accommodating 30 campers at each site. It also
1566 21 March 2016 Official Hansard Report

Bermuda House of Assembly houses a building which accommodates 30
campers;
• Messina House is the only land- based cam psite. This site is located at Boaz Island,
Sandys, and can accommodate a maximum
of 34 campers;
• Paget Island is located in St. George’s harbour and has the largest building or single
campsite, accommodating a maximum of 95
campers;
• Ports Island is the oldest camping facility. It
houses a building that accommodates a
maximum of 45 campers;
• White’s Island is used sporadically for overnight tent camping. It is primarily used for basic swimming instruction by the Bermuda
Amateur Swimming Association and rowing instruction by the Bermuda Rowing Associ ation.

Programme 2008, School Age Activities,
Madam Chairman, the budget allocation for the School Age Activities programme business units has decreased from 2015/16 by $38,000, or 4 per cent, to
$859,000 in this next budget. Although there has been a small decrease in funding, the amount allocated will continue to help promote and support leisure and recreation activities, including local day -camping during
school breaks.
This programme supports approximately 800
school aged children and is housed at various preschools, primary schools and middle schools throug hout the Island. There is a special needs programme
that provides one- on-one care for children who require
special needs. The Special Needs Camp is incorporated in the School Age Camps and allows for total inclusion of all students. Approximately 170 part -time
employees conduct this programme and are supervised by qualified teachers. It should be noted that
80 per cent of the part -time staff are university, college and high school students. Besides the part -time
employees, programme business unit 2009, School Age Activities, employs 16 full -time equivalents in
2016/17, which is consistent with the prior year, as
seen on page B -241.
Madam Chairman, included in this programme
are three Pre- school Age Camps. Children in these
programmes are in their final year of pre- school. The
camps are very successful and were created specif ically for the transition of these children from pre-school to their first year in primary school.
Also included under this programme for
2016/17 is an allocated budget of $87,000 for specialty camps for middle school age children (business unit 30185), which is a decrease of $14,000, or 14 per
cent, compared to the prior year. This programme supports up to 100 middle school children and f ocuses on the social and unique development of st udents at this age. This funding provides for staff, books, materials, visits to businesses and community
helping services, and supplies and equipment, which
help to develop t he whole child.
Programme 2009, Afterschool Programmes,
Madam Chairman, the Afterschool Programmes oper-ated by the Department of Youth, Sport and Recrea-tion provide for staffing, communications materials
and supplies for 10 programmes at the Government
Primary Schools. The budget allocation for this bus iness unit (30125) for Financial Year 2016/17 is $770,000, which is a decrease of $27,000, or 3 per
cent, from 2015/16, as shown on page B -240. The
programme supports a maximum of 400 primary
school -aged children across the 10 schools and employs approximately 50 part -time employees and 26
full-time employees in Financial Year 2016/17.
Subjective Analysis . . . It might be time to
break for lunch. Madam Chairman, I believe because
we are now just about at the lunch break, instead of
going through the subjective analysis at this point, it
might be a good time to break.

We are resuming the Committee of
Supply. We are debating the budget Head or the Mi nistry of Youth, Sport and Culture. The Minister Pat
Gordon- Pamplin is on the floor delivering her debate.
You can continue, Minister.



Bermuda House of Assembly MINISTRY OF COMMUNITY, CULTURAL DEVE LOPMENT AND SPORT

HEAD 20 —DEPARTMENT OF YOUTH, SPORT AND
RECREATION

[Presentation continuing]
Hon. Patricia J. Gordon- Pamplin: Thank you, Mr.
Chairman.
Mr. Chairman, good afternoon. Just prior to
lunch I had just concluded programme 2009, the After
School Programme, and I was just ready to get into
the Subjective Analysis, which is found on page B -
240.

Salaries

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
page B -240 shows the budget allocated for salaries is
$2,687,000 for Financial Year 2016/17. T his signif icant increase of $855,000, or 47 per cent, is a result
of the transfer of part -time positions to 12 full -time
posts, which employees are paid on a monthly basis.

Wages

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, in
2016/17 the allocated budget for wages is $2,074,000
which is a decrease of $1,116,000, or 35 per cent,
compared to the original allocated budget for Financial Year 2015/16. This considerable decrease in expendi-ture for wages is based on a decrease in the number of persons hired in part -time or miscellaneous posts
within the Department of Youth, Sports and Recre ation.

Other Personnel Costs

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
budget allocation is $96,000 for other personnel costs in 2016/17 and it is consistent with 2015/16, as it is
anticipated that there will be no increase in housing allowance from the Department of Works and Engi-neering in 2016/17. And that housing allowance is related to rent for the [camping] islands, as well as for Messina House and the caret akers.

Training

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, in
2016/17, $13,000 has been allocated to training for
the financial year. The Department of Youth, Sport
and Recreation’s succession plan has prioritised
courses for its employees, which will result in cost
savings of $7,000, or 35 per cent compared the
budget allocation of $20,000 in 2015/16.
Transport
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
budget allocation for 2016/17 is $8,000 which is con-sistent to the allocation in 2015/16.

Travel

Hon. Patricia J. Gordon- Pamplin: Mr. Chairman, as
shown on page B -240 the allocation is $29,000 for
travel in 2016/17 and this is a decrease of $12,000, or
29 per cent compared to the allocation of $41,000 in the prior year. The department was able to reduce the expenditure for travel by encouraging more local, in-house activities rather than activities and conferences
held abroad.

Communications
Hon. Patricia J. Gordon- Pamplin: Mr. Chairman, cell
phone and BlackBerry packages with local m obile ca rriers have been renegotiated, which has led to DYSR
having a cost savings for communications of $33,000, or 28 per cent for 2016/17. The allocated budget for
2016/17 is $86,000 (as shown on page B- 240) compared to the budget allocation of $119,000 for the
prior year.

Advertising and Promotion

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
budget allocation for advertising and promotion is $37,000 for 2016/17 which is a decrease of $2,000, or
5 per cent compared to the allocation of the prior year,
which was $39,000. In 2016/17, the department will utilise its website, which is
http://www.youthandsport.bm and more social media
such as Facebook, Twitter, et cetera.

Professional Services

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
$171,000 has been allocated to professional services for 2016/17 which is a decrease of $10,000, or 6 per
cent compared to the 2015/16 allocated budget of
$171,000. Due to this reduction the Department of Youth, Sport and R ecreation in 2016/17 will be utili sing more in- house services rather than hiring outside
vendors.

Rentals

Hon. Patricia J. Gordon- Pamplin: Mr. Chairman, as
shown on page B -240, the budget allocation for rentals is $458,000 for 2016/17, which is a decrease of $5,000, or 1 per cent compared to $463,000 in
2015/16.

Repairs and Maintenance
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
allocation for Repairs and Maintenance is $216,000
1568 21 March 2016 Official Hansard Report

Bermuda House of Assembly for 2016/17 compared to the 2015/16 original alloc ation of $244,000. This decrease of $28,000, or 11 per
cent is a result of a combination of reductions in the
amount spent on hiring outside vendors to carry out repairs to grounds and facilities that come within the Department of Youth, Sport and Recreation.

Insurance

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
department anticipates that one vehicle will be class ified as a write off in 2016/17, resulting in the depar tment entering into fewer policies to insure their vehicles. The allocated budget in 2016/17 for insurance is
$18,000 and this is a $1,000, or 5 per cent decrease
compared to the 2015/16 allocation of $19,000.

Energy

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
$214,000 has been allocated to energy for 2016/17
compared to the allocation of $228,000 for the prior year, which is a decrease of $14,000, or 6 per cent
(as shown on page B- 240). In 2016/17, the depar tment continues to encourage staff to assist in con-serving the department’s energy, i.e., by turning off
lights, shutting down equipment when not in use, which will assist in reducing expenditure spent on this line item.
Clothing, Uniforms and Laundry

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
Department of Youth, Sport and Recreation will limit
the number of uniforms provided to emplo yees in
2016/17. [There has been] a budget allocation of
$18,000 for clothing, uniforms, and laundry which is a
reduction of $5,000, or 22 per cent compared to the
allocation of $23,000 for the prior year.

Materials and Supplies

Hon. Patricia J. Gordon -Pamplin: As shown on
page B -240, $214,000 is the budget allocation for m aterials and supplies in 2016/17. This allocation is a
decrease of $77,000, or 26 per cent compared to the
prior year’s original allocation of $291,000. Materials
and supplies will bee n reduced in 2016/17 due to the
department consolidating purchasing of materials and
other shared resources (i.e., paper).

Equipment (Major/Minor Capital)

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
allocated budget for equipment in Financial Year
2016/17 is $25,000 which is a decrease of $17,000, or
40 per cent compared to Financial Year 2015/16 all ocation of $42,000. This significant decrease in cost for equipment in 2016/17 is a result of the Department of Youth, Sport and Recreation adopting the practice of
sharing equipment throughout the department.

Other Expenses
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
$34,000 is allocated to other expenses in 2016/17 compared to 2015/16 when the allocation was
$40,000. There is a decrease of $6,000, or 15 per
cent between 2015/16 and the upcoming fiscal year, which is a direct effect as a result of the reduction in training as food, drink, accommodations will no longer be required.

Grants and Contributions

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
allocated budget for 2016/17 is $2,667,000 for grants
and contributions, which is a decrease of $8,000
compared to $2,675,000 in the prior year.

Youth, Sport and Recreation —Revenue
Hon. Patricia J. Gordon- Pamplin: Mr. Chairman, as
shown on page B -241, it is anticipated that the rev enue for the department will be $586,000 for the ens uing year, which is a minimal increase of $1,000 compared to the prior year. Revenue will be generated from programme registration, after school vouchers, as well as from rental of boats and equipment.
Mr. Chairman, I would like to take this opportunity to sincerely thank all of the dedicated staff of the Department of Youth, Sport and Recreation for the work they do in advancing and recognising the signif icant contributions made by our sportsmen and
sportswomen and the pivotal role they play in helping
our youth achieve their true potential. This department
is led very ably by Director Norbert Simons and his wonderful staff.
Mr. Chairman, this ends my presentation for
the 2016/17 budgetary allocation for Head 20, the D epartment of Youth, Sport and Recreation.

HEAD 23 —DEPARTMENT OF CHILD AND FAMILY
SERVICES

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, I
will now discuss Financial Year 2016/17 estimates of
expenditure and revenue for Head 23, which is the
Department of Child and Family Services, which can be found on pages B -244 to B -249 of the Estimates
Book.
Mr. Chairman, the Department of Child and
Family Services is responsible for promoting and pr otectin g the best interests and social well -being of chi ldren, adults, and families in order to enhance their social functioning and their quality of life. These ser-vices are mandated under the Children Act 1998 (“the Act”). The purpose of the Act, is “to protect children


Bermuda House of Assembly from harm, to promote the integrity of the family and to
ensure the welfare of children.” In order to achieve
this mandate the department provides day care ser-vices; care and protection services for children; and residential, home based and counselling services for adolescents and families.
Mr. Chairman, the Department of Child and
Family Services is in the final stages of implementing a comprehensive and integrated system with one en-try point for all their programmes and services. The goal is to ensure appropriate assessment of referrals to determine the best service response. The identified needs of the child and family are defined in an inte ragency service plan that engages and assesses chi ldren and families throughout the process.
Mr. Chairman, the Department of Child and
Family Services is commissioned to provide a seam-less service to ensure the safety of children while strengthening the well -being of families. In order to
fulfil its legislative mandate, the department operates four programmes:
• Programme 2301, which is Services to Chi ldren and Young Persons;
• Programme 2302, Services to Individuals and Families;
• Programme 2303, Residential Treatment Services; and
• Programme 2304, Administration.

2Mr. Chairman, there is a budget allocation of
$15,907,000 for the Department of Child and Family
Services for the ensuing year as shown on page B -
245. This represents an overall increase of $998,000, or 7 per cent when compared to the budget allocation
for 2015/16. As shown on page B -247, the restructuring of the Department of Child and Family Services
does not increase the full -time equivalent count, which
remains at 95, in the ensuing year, consistent with that of the past year as shown on page B- 247. The
breakdown of the departments total full- time equi valents will be discussed in turn under each pr ogramme/business unit.

Programme 2301— Services to Children/Young
Persons
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, for
business unit 33010, Happy Valley Child Care Centre,
there is a budget allocation of $916,000 for the ens uing year. This represents an increase of 17 per cent,
or $134,000 from the prior year. This increase, which is shown on page B -245, is a direct result of staff i ncrements. Happy Valley Child Care Centre expects to contain expenditure within their budget allocation for the ensuing year. The feeding, clothing, and enric hment programmes have been curtailed in order to minimise the impact on the wrap- around services pr ovided to high- risk children referred for care and a head
start at the Happy Valley Child Care Centre. In 2016/17 the Happy Valley Child Care Centre full -time equivalent count is 11, which is consistent
with the prior year.

Programme 2302— Services to Individuals and
Families

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total budget allocated to this programme for 2016/17
is $5,839,000 which represents an increase of 3 per
cent, or $158,000 over the prior year.

Busin ess Unit 33020—Family Services

Hon. Patricia J. Gordon- Pamplin: In 2016/17, Family Services' allocated budget is $2,300,000, which is a
decrease of 8 per cent, or $211,000 compared to the
Financial Year 2015/16 original allocated budget of $2,511,000 as shown on page B -245 of the Budget
Book. Care and protective services to children of Bermuda are delivered by way of Family Services through three specialized units: Intake/Assessment, Intervention, and Foster Care.
There are 19 full -time equivalents under business unit 33030, Family Services in 2016/17, which remains consistent with 2015/16 as shown on page B -
247 of the Budget Book.

Business Unit 33030—Foster Care

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, in
this business unit the Foster Care budget allocation for 2016/17 is $2,195,000, which is a 2 per cent r eduction, or $34,000 in comparison to the original
budgetary allocation of $2,229,000 for 2015/16, as shown on page B -245.
Foster care has also had a reduction in its full -
time equivalent count from seven in the prior year to six in the ensuing year, which is a reduction of one full-time equivalent, or 14 per cent. This is indicated
on page B -247 of the Budget Book with the full -time
equivalent count.
Foster Care is responsible for providing alternative living arrangements for children under the age of 18 years old who are in need of out -of-home
placement. During 2015, the Foster Care Programme provided foster care services to a total of 70 children;
38 of the children were female while 32 were male. As
of December 31, 2015, Foster Care had several si bling sets of children in care:
• Sibling Set of 2—there were 9;
• Sibling Set of 3—there were 2;
• Sibling Set of 4—there were 2; and
• Sibling Set of 5—there were 2.

Mr. Chairman, during 2015/16, the foster care
programme serviced a total of nine therapeutic foster children. The children in this category have a variety of physical, cognitive, emotional, and behavioural
1570 21 March 2016 Official Hansard Report

Bermuda House of Assembly challenges. Therapeutic foster parents are compensated at a higher rate than traditional foster parents.
They sign contracts that outline the levels of care ex-pected based on the children’s needs.
Due to this increase and in an attempt to co ntinue to contain expenditure within the budget all ocated for 2016/17, support funding provided to kinship
care has been re- visited, so as to minimise the impact
on services delivered to children referred for care and
protection inclusive of foster care. Local and overseas consulting services were reduced and the availability of counselling services for addressing the psycholog ical and/or psychiatric needs of children has been e nhanced.
Mr. Chairman, child care fees, the summer
day camp allowance, and transportation make up the significant services provided by foster care. Children in the care of the director do not qualify for Gover nment Child Day Care Allowance and thus the Depar tment of Child and Family Services has realigned r esources and strengthened available options for caring for children during the workday and when schools are closed for breaks. Given the challenges experienced
with respect to transportation, the department devised
new scheduling to facilitate children’s visits and appointments.

Business Unit 33200—Bermuda Youth Counse lling Services

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
Bermuda Youth Counselling Services (BYCS), bus iness unit 33200, allocated budget for 2016/17 is
$1,344,000, an increase of 43 per cent, or $403,000
compared to the prior year’s original budget allocation of $941,000 (as can be evidenced on page B- 245 of
the Budget Book). The BYCS is a section within the Department of Child and Family Services that is com-mitted to strengthening, supporting and transforming the lives of young people up to the age of 18, and in so doing have a positive impact on peers, famil ies,
and the community. The BYCS is in the process of being renamed Counselling and Life Skills Services (CLSS), as a result of reorganisation in the Depar tment of Child and Family Services. Due to this reor-ganisation the Bermuda Youth Counselling Services ’
full-time equivalents will increase by one, or 14 per
cent, taking the total full -time equivalent of seven in
2015/16 to eight in 2016/17 (as evidenced in the Budget Book on page B- 247).
Mr. Chairman, Bermuda Youth Counselling
Services continues to align services and practices
with the DCFS strategic plan. The aim of the restructuring of services is to offer a more client -focused and
efficient mode of service delivery. BYCS services are
based on the philosophy that professional counselling, support, and education results in improved functioning and quality of life for individuals and families. BYCS provides individual, family, and group counselling ser-vices; including specialised substance misuse counselling and education for adolescents and their fam ilies.
Mr. Chairman, in 2015 there was a significant
increase of referrals of males between 14 and 18
years of age demonstrating high- risk behaviours, such
as substance misuse and delinquency, which also can
include gang association. This population represents
over 40 per cent of clients receiving services in 2015.
An upsurge is due to the antisocial behaviour within the community. It is anticipated that this issue will be largely resolved when the proposed DCFS reorgani-zational plan is implemented. We are awaiting Cabinet
approval to provide short -term staffing strategy in order to effect this change.

Programme 2303—Residential Treatment

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
there is a budget allocation of $7,609,000 for Reside ntial Treatment Services in 2016/17. This represents an
increase of 10 per cent, or $664,000 compared to F inancial Year 2015/16 (as evidenced on page B -245 of
the Budget Book). Programme 2303, Residential Treatment Services (RTS), is comprised of the follo wing business units: the Home Based Programme
(CMIT); the Brangman Home; the Youth Development
Centre; the Oleander Cottage (transferred from O bservatory Cottage some years ago); the Psycho-Educational Programme and Youth Residential
Treatment (which is the administration arm of RTS).

Business Unit 33060—Home Based Programme
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
Home Based Programme budget allocation for Fina ncial Year 2016/17 is $1,572,000. This represents a
reduction of 9 per cent, or $163,000 when compared
to th e allocated budget of $1,735,000 the prior year.
Along with the reduction in budget the Home Based Programme full -time equivalent count has reduced by
five, or 31 per cent, which means the full -time equiv alent of 16 in 2015/16 has been reduced to 11 in 2016/17 (as shown on page B- 247).
The Cross Ministry Intervention Team (CMIT)
(which is the Home Based Programme of the Depar tment of Child and Family Services) is an intensive
family intervention program developed to service clients referred from the Department of Child and Family Services; the Department of Financial Assistance; the Department of Court Services, and the Bermuda Housing Corporation. CMIT is designed to intensively work with clients who have demonstrated an inability
to independently provide the basic needs for their
families and/or have demonstrated poor compliance with the requirements of the existing support systems to provide these basic needs.
Mr. Chairman, Residential Treatment Services
is a 24- hour community -based group home for adoBermuda House of Assembly lescents between the ages of 12 and 18 years who
are placed in the care of the Director of Child and
Family Services as a result of a decision made by the Family Court. These adolescents are deemed to be at risk in the community and require care and protection
in a safe and structured environment. During 2015, 5 per cent of the children referred to the department
received services through Residential Treatment Ser-vices as a result of being adjudicated, in need of care and protection, respite, life skills, and f amily reunific ation.

Business Unit 33070—Brangman Home

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, for
Financial Year 2016/17 the allocated budget for
Brangman Home is $1,258,000 which represents an increase of 44 per cent, or $386,000 compared to
2015/16. Brangman Home provides housing for f emale children that require residential treatment ser-vices. The increase in funds is due to an increase of employees at Brangman Home. The full -time equiv alent at Brangman Home for 2016/17 is 12, which is an incre ase in full -time equivalent of two, or 20 per cent
compared to the 10 in the prior year (as shown on page B -247 of the Budget Book).

Business Unit 33080—Youth Development Centre

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
$232,000 is allocated to the Youth Development Centre in 2016/17. This represents a 49 per cent, or
$76,000 increase in comparison to the original budget allocation for the prior year. Funds are utilised to pr ovide one- to-one and special management of residents
based on their needs as indicated by ongoing evaluation. Residential Treatment Services is committed to the inclusion of family preservation and reunification; aftercare and interagency interactions services are based on the individual needs of the adolescent and of their families. When this is not possible, alternative
community -based relationships and resources are
used to develop an appropriate discharge plan.
In addition, the programme at Residential
Treatment Services also includes the monitoring of
clients who are deemed to be at risk in the community
as a protective factor.
Youth Development Centre (business unit
33080) full -time equivalent for 2016/17 is two, which is
an increase of one, or 100 per cent compared to the
prior (as evidenced on page B- 247 of the Budget
Book).
Mr. Chairman, during 2015/16, client profiles
indicated that 100 per cent of adolescents involved in
the services had family relationship issues; the major-ity of children, both male and female had experienced childhood trauma, including abandonment, abuse, grief, and domestic violence. The data identifies the wide range of specialist services required for dealing effectively with the children and families in need of the
department’s services. In an effort to address these
issues, the department has provided individual and group counselling; family assessments and interve ntions; parent groups such as family solutions; voc ational and educational planning as a systematic change. This change will over time result in more effective services provided to children and families.

Business Unit 33090—Observatory Cottage (r eferred to as Oleander Cottage)
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
budget allocation for the Observatory Cottage is
$1,050,000 for 2016/17 (as evidenced on page B -245
of the Budget Book). This represents an 18 per cent,
or $163,000 increase compared to the prior year’s allocated budget. Male children who require residen-tial treatment services reside at Oleander Cottage.
The full -time equivalent count for Observatory
Cottage is 13, which is an increase of four, or 44 per
cent, compared to 2015/16 when the full- time equiv alent was nine (as evidenced on page B -247).

Business Unit 33100— Psycho Ed Programme

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
$2,330,000 is the allocated budged for 2016/17 for business unit 3310, the Psycho Ed Programme. This represents an increase of 15 per cent, or $312,000
compared to the budget allocation for 2015/16. This increase will provide the department with the ability to deliver additional services as required for children who
have either exhausted local services, or the services they require are not available locally.

Business Unit 33110—Youth Residential Trea tment

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
budget allocation for Youth Residential Treatment is
$1,167,000 in the ensuing year (as evidenced on
page B -245). In comparison to the allocated budget
for 2015/16, this is a reduction of 9 per cent, or
$110,000. To address this reduced funding, the de-partment has re- aligned staff in this programme and
geared them towards providing a more effective and
efficient service delivery by giving more direct service
to the children placed in residential treatment and their parents. This realignment will also reduce the number of children referred out for services, resulting in cost savings.
The full -time equivalent count for Youth Res idential Treatment in 2016/17 is nine; which is an overall decrease of three, or 25 per cent, compared to
2015/16 when the full -time equivalent was 12 (as ev idenced on page B -247 of the Budget Book).
Mr. Chairman, the realignment of staff is designed to provide a more seamless response to chil1572 21 March 2016 Official Hansard Report

Bermuda House of Assembly dren and families that supports successful outcomes.
Children and families will no longer be confused about
the process within residential treatment, or who the primary worker is, and what support services are available to them. To further assist the department over the next year, a review of residential treatment will be conducted to further strengthen services pr ovided to children and families.

Programme 2304— Administration

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
business unit 33120, Administration, provides for the
administration and operations of the Department of
Child and Family Services. The budgetary allocation for Fiscal Year 2016/17 is $1,293,000 (as evidenced on page B -245). This represents an increase of
$192,000, or 17 per cent compared to the prior year.
The full -time equivalent under this business
unit is four for the ensuing year, which is an increase of one, or 33 per cent compared to the prior year
when the full -time equivalent count was three.
In an effort to operate more cost -effectively,
the department has implemented fee- for-service options and has decreased funding to grant recipients under business unit 33130 by 38 per cent, or
$150,000. Hence, the budget allocated for Grants, under business unit 33130, in 2016/17 is $250,000 as the Women’s Resource Centre and Physical Abuse Centre (i.e., Centre Against Abuse) will no longer
grant recipients, as evidenced on page B -245.

Revenue Summary
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
estimate of revenue for 2016/17 is $192,000 as shown on page B -246. This revenue is generated by the
Happy Valley Child Care Centre and represents an
increase of 9 per cent, or $16,000 from the prior year. Previously, fees were collected on a sliding scale and
determined by a means test. As of April 1, 2015, the
sliding fee scale was eliminated and a flat monthly fee of $400 was implemented, resulting in an increase in revenue for 2015/16. It is important to note that the cost per child will remain higher than the fees paid by the parents.
Mr. Chairman, with respect to the expenditure
of the Department of Child and Family Services, effort has been made to increase departmental efficiency and to reduce spending. The subjective analysis of estimates on page B -246 shows that the primary areas of budget increases relate to salaries, wages, and professional services.
Mr. Chairman, the major reason for the i ncrease in salaries and wages by $1,056,000, or 13 per
cent compared to the previous year (as per the sub-jective analysis on page B -246), is due a complete
restructuring of the department to meet the ever -
increasing demand for care and protection services to children and families. As shown on page B- 247, this
restructuring does not increase the full-time equivalent
count, which remains at 95 in 2016/17.

Professional Services

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, in
an effort to provide the most effective service there
has been an increase in professional services of $390,000, or 14 per cent as per the subjective anal ysis (on page B -246) when compared to the prior year.
The additional funding will enable the department to provide more specialised professional services, as
required by the department’s ever -growing client
base.

Subjective Analysis
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
detailed explanations for changes to various cost
categori es found on page B -246 are as follows:

Salaries

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
allocated budget for salaries for 2016/17 is
$9,253,000. This is an increase of $1,056,000, or 13 per cent compared to the prior year’s original all ocated budget of $8,197,000. This increase reflects
restructuring within the department to meet the ever -
increasing numbers of clients requiring care and pr otection services to children and families, and salary increments for employees within their PS grade.

Wages

Hon. Patricia J. Gordon -Pamplin: For 2016/17,
$9,000 is allocated to wages. This is a decrease of
$262,000, or 97 per cent [sic] compared to 2015/16
allocation of $271,000. I am sorry, that is not 97 per
cent, that is 9 per cent. The decrease in wages is a
result of positions that are to be abolished in 2016/17 due to the restructuring of the department, but it must be noted that there will be no job losses as a result. I repeat that, there will be no job losses as a result of the restructuring of the d epartment.

Other Personnel Costs

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
budget allocated for other personnel costs is $108,000
for 2016/17, which is a $12,000, or 13 per cent i ncrease compared to Financial Year 2015/16. This
budget is necessary to cover telephone expenditure
and on- call services for social workers who perform
critical functions within the department such as r esponding to police emergencies after normal working hours as it relates to children, in accordance with the requirement s under the Children Act 1998.


Bermuda House of Assembly
Training

Hon. Patricia J. Gordon -Pamplin: The allocated
budget for training for 2016/17 is $128,000 and repr esents an increase of $5,000, or 4 per cent from
2015/16. This increase is important in order to mai ntain levels of staff training to meet and satisfy industry
standards which enhance the delivery of specialised
services, thus reducing the cost of contracted profes-sional services in the long run.

Transport

Hon. Patricia J. Gordon -Pamplin: Budget allocated
for Transport in 2016/17 is $48,000, which is a decrease of $3,000, or 6 per cent from the prior year.
The department has developed a management sy stem for transporting children to ensure timely delivery
of foster children in meeting with counsellors for
evaluations and assessments, which assists in kee ping costs down.

Travel

Hon. Patricia J. Gordon -Pamplin: Budget allocated
for Travel in 2016/17 is $152,000, which is a decrease
of $36,000, or 19 per cent on the prior year. This
budget covers travel expenditure for children requiring
psychiatric, psychological, and medical attention. This
decrease will be realised because all other overseas
training and its associated travel costs for staff will be eliminated with the exception of travel expenditure provided to staff at the Happy Valley Child Care Cen-tre on attending the International Child Care Confer-ence/Training for the HighScope Curriculum which
focuses on latest research and methodologies on
working with young children.

Communications

Hon. Patricia J. Gordon -Pamplin: Budget allocated
for Communications is $125,000 in the coming year
and represents a decrease of $7,000, or 5 per cent
from the prior year. The department’s telephone sy stem has been fully transferred onto the government’s voice over Internet communications network [VoIP]
and as a result cost savings are expected to be rea lised.

Advertising and Promotion
Hon. Patricia J. Gordon -Pamplin: Budget allocated
for advertising and promotion is $2,000 in 2016/17,
which represents a decrease of $1,000, or 3 3 per cent
from the prior year. There will be no print advertising for new foster parents during foster parent month; however, the department is taking advantage of social media to encourage community involvement in the
foster care system.

Professional Se rvices
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, in
an effort to provide the most effective service there has been an increase in professional services of
$390,000, or 14 per cent as per the subjective anal ysis (according to page B -246) when compared to the
prior year. The additional funding will enable the d epartment to provide more specialised professional services, as required by the department’s ever -
growing client base.

Rentals

Hon. Patricia J. Gordon -Pamplin: Budget allocated
for rental of facilities is $859,000 in 2016/17 and represents an increase of $97,000, or 13 per cent
from 2015/16. The department will be implementing a
new strategic direction in 2016/17 and factored into this vision is savings to be realised by optimising and reducing current levels of office space. Whilst there is
a short -term cost increase, once the strategic direction
is fully implemented by the end of 2016/17, some
rental contracts will not be renewed when they expire.

Repair and Maintenance

Hon. Patricia J. Gordon- Pamplin: The budget all ocated for repairs and maintenance is $367,000 in
2016/17. This is a reduction of $12,000, or 3 per cent
from 2015/16 and is due to savings anticipated to be incurred from a reduction in office space as previously mentioned.

Insurance

Hon. Patricia J. Gordon -Pamplin: The allocated
budget for insurance costs remains unchanged at $5,000 in 2016/17 when compared to the prior year of
2015/16. (This is page 22.) Vehicles used by the de-partment in relation to social services are insured third party and there have been no indication of increases to the cost of insurance for the ensuing year.

Energy

Hon. Patricia J. Gordon -Pamplin: An increase in
referrals has resulted in staff extending work hours to
meet the demand; this will hav e an impact on energy
costs. As a result, the budget allocation for energy is
$251,000 in 2016/17, which represents an increase of
$32,000, or 15 per cent in comparison to 2015/16.

Clothing Uniforms and Laundry

1574 21 March 2016 Official Hansard Report

Bermuda House of Assembly Hon. Patricia J. Gordon -Pamplin: The budget allocated for clothing, uniforms, and laundry is $135,000
for 2016/17, which represents no change from the prior year. The department previously decreased the volume of clothes purchased for foster children and a reduction in laundry services provided for children at
the Happy Valley Child Care Centre, whereby parents
are now requested to provide additional clothing for
their children.

Materials and Supplies

Hon. Patricia J. Gordon -Pamplin: Budget allocated
for materials and supplies is $294,000 in the ensuing
year, which represents a decrease of $20,000, or 6 per cent from the prior year. Purchases of materials
and supplies for all business units across the depar tment have been consolidated and are purchased in bulk; this has resulted in the department r eceiving
lower prices, which reduces the overall cost of mater ials and supplies.

Equipment (Minor Capital)

Hon. Patricia J. Gordon -Pamplin: The allocated
budget for Equipment (minor capital) cost is $38,000
in 2016/17, which is a reduction of $3,000, or 7 per
cent when compared to the prior year. This budget is required to replace any broken furniture within Res idential Treatment Services.

Other Expenses
Hon. Patricia J. Gordon -Pamplin: The budget all ocation for other expenses is $84,000 in 2016/17,
which represents no change from 2015/16. The department has developed and implemented a system
that addresses reduced funding to foster parents with
the need to provide sufficient time for existing foster parents to recharge themselves, especially if the fos-ter child/children have mental, physical, and cognitive
health challenges. It must be noted that this has also
resulted in the loss of some foster placements.

Grants and Contributions

Hon. Patricia J. Gordon -Pamplin: The budget all ocated for Grants and Contributions is $850,000 in the
ensuing year, which is a decrease of $250,000, or 23 per cent from the prior year. This reduction is nec-essary to achieve budget ceiling estimates and as a result, grant contributions to the Women’s Resource Centre and the Physical Abuse Centre (Centre
Against Abuse) could not be sustained. Other grant
contributions will be prioritised and disbursed only af-ter very careful scrutiny.
Mr. Chairman, the performance measures for
Head 23 are found on pages B- 248 to B -249 of the
Estimates Book. The Department of Child and Family Services continues to meet most of its targeted outcomes in all business units. I wish to note that in bus iness unit 33030, Foster Care, there has been a cha llenge in recruiting foster parents, especially those who
are equipped to provide a therapeutic environment for high risk and/or special needs children in need of placement. Efforts are ongoing to attract, train, and
support foster parents to enable them to meet the
needs of a more specialised population. As previously mentioned, the reduction in foster fees and respite has resulted in the loss of foster placements.
Mr. Chairman, the cost of residential beds per
day at Brangman Home (business unit 33070) and
Observatory Cottage (now known as Oleander) (bus iness unit 33090) remains stable. However, the outcomes of the current strategic planning may result in changes during 2016/17. Residential Treatment Ser-vices continues to provide a service that meets inter-national best practice standards; this is confirmed by
their active accreditation status.
Mr. Chairman, the budget increase to the
Psycho -Educational Programme (business unit
33100) will significantly enhance the number of chi ldren who will be able to receive the appropriate ser-vices overseas that are not available locally. This will
have a direct impact on the Ministry of Education as these children will no longer be a disruption to the sy stem due to unaddressed social- emotional, psychological, and/or psychiatric issues.
Mr. Chairman, I am proud to report that under
business unit 33120, Administration, all sections (100 per cent) within the department have achieved accreditation for operating at best practice standards as outlined by the Council on Accreditation [COA] and the Bermuda National Standards Committee [BNSC]. The Department of Child and Family Services remains
the only Government department to have all of its sections accredited.
Mr. Chairman, I would like to take this opportunity to sincerely thank all of the dedicated staff of the Department of Child and Family Services, led by D irector Alfred Maybury, for all the work they do in meet-ing the many challenges of our children and families, as we undertake this social recovery.
Mr. Chairman, this ends my presentation of
the 2016/17 budgetary allocation for Head 23, the D epartment of Child and Family Services.
Mr. Chairman, could you give me some idea
of how much time I have left to make sure that I leave ample time.

For the entire thing.



Bermuda House of Assembly Hon. Patricia J. Gordon -Pamplin: Yes, that is fine. I
just want to make sure I leave ample time for co mments.

HEAD 52 —DEPARTMENT OF COMMUNITY AND
CULTURAL AFFAIRS

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, I
will now present the Estimates of Expenditure and
Revenue for Head 52, the Department of Community and Cultural Affairs for 2016/17, which can be found on pages B -250 through B -256 of the Estimates Book.

Programme 5202—Cultural Affairs

Business Unit 62000—Grants to Organisations

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total amount budgeted under this business unit for 2016/17 is $213,000, which is consistent with the prior
year budget allocation, as shown on page B -251.
The Department of Community and Cultural
Affairs is responsible for promoting, preserving, and celebrating Bermuda’s rich and diverse cultural her itage, and for the arts. These goals are achieved in part by partnering with private sector organisations through funding. Organisations that will receive fina ncial support in the upcoming fiscal year are:
• the Bermuda Historical Society;
• the St. George’s Historical Society;
• the St. George’s Preservation Authority;
• the Bermuda Arts Council;
• the Bermuda Heritage Association;
• the Bermuda National Gallery; and
• Cultural Legacy Fund recipients.

Business Unit 62001— Administration

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
objectives of this business unit are to provide for the
administration and operation of Community and Cu ltural Affairs units located on the fourth floor of the Dame Lois Browne- Evans Building; and the Culture
and Folklife Programmes.
Mr. Chairman, the allocated budget for
2016/17 for this business unit is $734,000, as per page B -251. This amount reflects a decrease of
$12,000 compared to the prior year, or a 2 per cent
decrease. This decrease is attributed to a $6,000 r eduction in salaries, as well as some operational costs such as: a reduction of $3,000 in telephone rentals; telephone calls decreased by $1,000; overseas calls have been eliminated reflecting $1,200 in cos t savings; and $4,500 for newspaper advertising has also been eliminated. Such decreases and eliminations
have contributed to an overall reduction in operational
expenses.
Mr. Chairman, the allocated budget sustains
both units of operation including: salaries and wages; professional development; communications; pr ogramming; printing and office supplies. This business unit also provides funding for some collateral educ ational materials including posters, banners, pam-phlets, and leaflets. Funds associated with this bus iness unit also support the promotion of information via social media. The remainder of the budget provides
for office supplies; photocopier maintenance; books
and periodicals subscriptions; and telephone services.

Business Unit 62010—Cultural F estivals and Cel ebrations

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total amount allocated for business unit 62010 in
2016/17 is $190,000. This reflects an increase of $47,000 over the 2015/16 original budget, or a 33 per
cent increase.
Mr. Chairman, this business unit covers the
cost of promoting the culture and heritage of the I sland and its people through festivals and other pr ogrammes and events. This objective will be realised through a number of programmes and initiatives i ncluding the Emancipation Commemorative Ceremony
and the Gombey Festival.
Mr. Chairman, permit me to expand on these
two events:

Emancipation Commemorative Ceremony

Hon. Patricia J. Gordon -Pamplin: One of the main
ceremonies that the Department of Community and
Cultural Affairs organises annually is the Emancipa-tion Ceremony. In 2015, the department continued to have as its focus the theme “The Trail of our People: Passing the Torch.” Through this c ommemorative
ceremony the department highlighted significant ind ividuals and organisations from the parishes of War-wick and Smith’s. These persons and organisations have made meaningful and lasting contributions to their respective communities, and by so doing have
contributed immensely and selflessly for the greater
good of our society. Because the focus was “passing the torch,” the department continues to recognise per-sons in our community who have contributed much and for whom there has been little formal acknow ledgement of their work and their worth.
Funds allotted to this business unit for
2016/17 will be used for a similar programme, which will feature local heroes from the parishes of Paget and Devonshire in a ceremony to be held towards the end of July under the heading “The Trail of Our Peo-ple: Jubilee!”

The Gombey Festival

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
Gombey Festival is held annually in September to
provide exposure to the folk art and traditions of these
1576 21 March 2016 Official Hansard Report

Bermuda House of Assembly important Bermudian icons. Over the past two years,
the department liaised with the Department of Youth,
Sport and Recreation for the use of the W.E.R. Joell Tennis Stadium, thereby saving on expenses in rental fees, the installation of bleachers and barricades, and the general clean- up at the conclusion of the festival.
The 2016 Gombey Festival will be held at the W.E.R.
Joell Tennis Stadium again. The allocated budget for
2016/17 will finance the cost of advertising, event i nfrastructure, financial awards to participating Gombey troupes, and the chosen honouree of the day.

Harbour Nights

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
funding to support Harbour Nights is also charged to
this business unit. The Department of Community and Cultural Affairs works collaboratively with Tradition Bearers and the Chamber of Commerce to ensure
that aspects of our culture and heritage are presented
to visitors and residents in an engaging and inform ative manner.
In addition, the department also assists ind ividual organisations involved in cultural or folklife pr ojects and programmes.

Business Unit 62020—Heritage Celebrations

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total amount budgeted for this business unit for 2016/17 is $217,000 (as evidenced on page B -251).
This reflec ts a decrease of $37,000, or 15 per cent
compared to the original budget for 2015/16.
Mr. Chairman, this business unit covers the
cost of celebrations for both Heritage Month and the
Bermuda Day Parade. Heritage Month celebrations
are a series of cultural events which conclude with the
fantastic Bermuda Day Parade. These events are d esigned in accordance with our mission statement “to educate the community and foster a greater sense of identity through an appreciation of Bermuda’s culture
and heritage.”
Heritage Month 2015, was successful, cel ebrating “Bermuda: An Atlantic Garden” through an art
exhibit, several gardening workshops, a walking tour of Cooper’s Island in conjunction with the Department of Planning, and boat tours to view the sea gardens.
The theme for Heritage Month 2016 is “A
Tapestry of Cultures.” To ensure expenditure is con-tained within budget, the Department of Community and Cultural Affairs will be implementing certain cost -
cutting measures, including strategic changes to the marshalling and security of the parade. New categ ories are being introduced to the parade to encourage more entries and to eliminate the reliance on the ex-pense of using costly dried flowers, which are not part of traditional float decorating. To assist float entrant s
with decorating, free workshops will be offered to the public. Business Unit 62030—Cultural Education Pr ogramme

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total amount budgeted for this business unit for Financial Year 2016/17 is $138,000 (as evidenced on page B-251 of the Budget Book). This represents an i ncrease of $33,000, or 31 per cent when compared to
the allocated budget for the prior year.
Mr. Chairman, the Department of Community
and Cultural Affairs is responsible for creating mater ials that contribute to the preservation of Bermuda’s
heritage and to the development of Bermuda’s literary
arts. In 2015/16, a Bermuda anthology of science fi ction and fantasy was published and edited by former Writer -in-Residence and New York Times best-selling
Grenadian author, Tobias Buckell.
For 2016/17, the department will focus on
producing a book of original research by Bermudian
historian, the late Dr. Clarence Maxwell, entitled Society of Prudent Men: Bermudians and the Age of Rev olution . The research examines the social, economic,
and political character of Bermudian activity in the A tlantic World during the Age of Revolution, from 1774
to 1804.
Mr. Chairman, another project being deve loped by the department is focusing on original r esearch on Bermuda’s unique dialect. In Financial Year
2015/16, the department granted a research award to
Britanni Cann -Fubler and Rosemary Hall, who are
jointly conducting research on the Bermudian dialect.
Mr. Chairman, let me just back up, I [stated]
the “late Dr. Clarence Maxwell,” but it is Dr. Maxwell’s son. He is not dead. I just wanted to point that out as he is very much alive and I certainly do apologise for that, Mr. Chairman.

We accept your apology.

Hon. Patricia J. Gordon -Pamp lin: I do apologise.
Another project being developed by the department is focusing on original research on Bermuda’s unique dialect. In Financial Year 2015/16, the Department granted a research award to Britanni Cann- Fubler and Rosemary Hall, who are joint ly co nducting research on Bermudian dialect. Support for this project will continue into Financial Year 2016/17, with Ms. Hall and Ms. Cann- Fubler offering present ations to the public on their findings. We might [better] understand, Mr. Chairman, some of the speech that we give, I think that should be very, very interesting.


Bermuda House of Assembly In addition, work will continue on the development of study guides to complement the Bermuda
Folklife Documentary Series for use within the school system.

Business Unit 62050—National Heroes Day

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
allocated budget for 2016/17 is $58,000, which r emains consistent with the allocated budged for 2015/16.
Mr. Chairman, funds associated with this
business unit are used to formally honour and c ommemorate a national hero. For 2015/16 the disti nguished designation of “national hero” was conferred on two individuals, namely, Gladys Misick Morrell and Sir Edward Trenton Richards. Mrs. Morrell was duly recognised for her role in the suffragette movement in Bermuda, which lead to female property owners being
granted the right to vote in the mid 1940s. Mrs.
Morrell, a known environmentalist, had also been an advocate for health care especially for women. Sir Edward, fondly referred to as “Sir ET” was th e first
black leader of Government who lead Bermuda during
some significant political changes.

Business Unit 62060— Promotion of the Arts
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
allocated budget for this business unit for Financial Year 2016/17 is $46,000. This amount reflects a decrease of $7,000, or 13 per cent when compared to
the allocated budged for Financial Year 2015/16. A ctivities that fall within this business unit are:

Premier’s Concert

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
one means by which the Department of Community
and Cultural Affairs promotes the visual and perfor ming arts is through the annual Premier’s Concert,
which aims to highlight selected students between the
ages of 10 and 20 years old who are excelling in a variety of genres of the arts. On Saturday, 21 November 2015, the department hosted 86 participants at the 31
st Annual Premier’s Concert held at the Ruth Seaton
James Centre for the Performing Arts. The audience
viewed superb works by budding visual artist B randon
Sousa; a debut appearance was made by self -taught
pianist Tahj Cox; and the Simons Brothers Band were
very enthusiastically received by the audience. A spe-cial guest appearance was made by a former Pr emier’s Concert participant, Jude Richardson, a brilliant
pianist who will soon go overseas to further his studies in music. Attendees were provided with inform ation about all of the participants and their artistic de-velopments.

Writer -in-Residence Hon. Patricia J. Gordon- Pamplin: The Department
of Community and Cultural Affairs supports program-ming to develop our literary arts. With this aim in mind, the department hosts an annual writer -in-residence
workshop focusing on a variety of genres. In 2015, the department hosted a three- week writer -in-residenc e
programme focusing on the genre of poetry.
The University of Toronto professor and poet,
Dr. Christian Campbell, served as the instructor for this programme. Dr. Campbell is originally from the Bahamas and is the author of a collection of poetry
entitled Running the Dusk .
This year, as we recognise the growing infl uence of film as a medium for creative expression, our
writer -in-residence programme will focus on writing
screenplays. It is anticipated that this workshop will be held during the fall.

Business Unit 62070—Folklife in Bermuda

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
allocated budget for this business unit for Financial
Year 2016/17 is $160,000, consistent with the original budget estimate for the prior year (as evidenced on
page B -251).
Activities that fall within this business unit are:

Historical Heartbeats
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
Historical Heartbeats Lecture Series, now entering its
13
th year, is a programme that highlights various aspects of Bermudian history and culture, and aims to hold a monthly presentation that is both entertaining as well as educational. The new season commences in April and will feature eight events and four film
nights.

Bermuda Folklife Documentary Series

Hon. Patricia J. Gordon- Pamplin: This series is a
collection of full -length feature films highlighting the
traditions and tradition bearers of Bermuda. The D epartment of Community and Cultural Affairs completed
a new documentary in the series during 2015/16 on
“Traditional Bermuda Boat Building” a film with special
emphasis on traditional small crafts.
Also, a documentary marking a brand- new s eries entitled the Bermuda Culture Documentary Series
was completed during the past year. The film entitled
“A Poem Without Words: Visual Artists In Bermuda” is
part of this series and features interviews with artists
including Sharon Wilson, Graham Foster, Dr. Edwin
Smith, Dr. Charles Zuill, Jacqueline Alma, and James
Cooper.
The Department intends to complete two
documentaries in 2016/17. The first documentary, part of the Bermuda Heritage Documentary Series, will focus on Bermuda shipwrecks and feature interviews
1578 21 March 2016 Official Hansard Report

Bermuda House of Assembly with Bill Gillies, Dr. Philippe Max Rouja, Nick
Hutchings, and Bill McCallan. The second documentary will be part of the Bermuda Folklife Documentary
Series, and will celebrate Bermuda’s Traditional Games and Crafts as discussed by Judith James, Shirley Pearman, Yvonne James, and others.

Folklife Apprenticeship Programme

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
Department of Community and Cultural Affairs will
complete the seventh year of the Folklife Apprentic eship Programme, focusing on the transmission of
knowledge and skills from one generation to the next.
Five tradition bearers, in various arts, will be selected for inclusion in the programme to work one- on-one
with a single apprentice for an average of 80 hours. There will be an awards luncheon where tradition bearers and apprentices who participated in the pr ogramme will share presentations about their exper iences. A short film will be produced showing high-lights of the apprenticeship experience.

Digital Archive

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
Cultural Affairs Digital Archive continues to expand
through the transcription and digital conversion of i nterviews collected through the Bermuda Documentary Series. More than 100 cassettes from the Smithsonian
Folklife Collection were digitised, marking the completion of that phase of the project. It is anticipated that for the ensuing year we will focus on the associated images from that collection, converting slides to digital format. This year the digital archive will also see greater availability of transcripts following a project
focusing on editing the documents post -transc ription.

Programme 5203—Community Services

Business Unit 62100—Uncover the Arts Pr ogramme
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
budget allocated to this business unit in 2016/17 is
$175,000. This remains unchanged from the original budget for 2015/16 (as shown on page B -251).
In partnership with the Bermuda Tourism A uthority, the Department of Community and Cultural Affairs provides this programme from November to March annually. This “Uncover the Arts” programme provides opportunities for both visitors and locals alike to discover and enjoy various aspects of our island’s
culture, arts, and entertainment. Funds allocated in
this business unit are also used to pay vendors who host the listed talks, tours, and demonstrations, as well as to cover the cost of advertising, rental fees for tents, sound systems, and sites.
Business Unit 62130— Senior Citizen Projects

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total amount budgeted for this business unit for Financial Year 2016/17 is $80,000. This represents a de-crease of 32 per cent, or $38,000 when compared to
the allocated budget of the prior year (as evidenced
on page B -251 of the Budget Book). To ensure expenditure is contained within the budget allocated, the department will fund activities based on merit.
The Department of Community and Cultural
Affairs is responsible for organising a number of pr ogrammes and activities for our able- bodied seniors.
During 2015/16, the department evaluated which pr ogrammes have been the most impactful on the lives of Bermuda’s seniors. In 2016/17 the department will be increasing the number of seminar events for useful, educat ional, and cultural learning opportunities. The
annual highlight of the senior citizen projects is the
Seniors Awards Ceremony, which celebrates nom inated seniors for the significant contributions they
have made over the years. The funds associated with this business unit will also cover operating costs for a
new intergenerational learning initiative.

Programme 5204—Community Education

Business Unit 62140—Community Outreach

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
allocated budget for this business unit for Financial Year 2016/17 is $40,000 (as evidenced on page B -
251 of the Budget Estimates), which is consistent with the original budget estimate for Financial Year 2015/16.
Mr. Chairman, this business unit covers the
operation of the Summer Internship Programme (SIP), which provides work shadow opportunities, exposure to the work environment, practical experience and service learning activities to senior school students aged 15 to 18 years old, through a diverse range of
coordinated partnerships with the Government, pr ivate, and non- profit sectors. The programme operates
annually during the months of July and August culm inating with student participants receiving a certificate
of completion, letter of reference from the employer, and a stipend at the end of each month.

Business Unit 62150—Community Education
Courses

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total amount budgeted for this business unit for Finan-cial Year 2016/17 is $161,000. This reflects a decrease of $38,000, or 19 per cent when compared to
the allocated budget for 2015/16 (as evidenced on page B -251).
Mr. Chairman, this business unit, Community
Education Courses, provides a diverse range of ed uBermuda House of Assembly cational, social, recreational, cultural, personal, and
professional development to Bermudian residents.
The introduction of a new initiative for 2016 is the of-fering of Day Courses for Adults and Seniors. Provid-ing these day courses are a direct result of the de-mand from the public as highlighted in quarterly ques-tionnaires and surveys. These day courses, seminars,
and activities are designed to promote awareness,
inform, educate, and engage adults and seniors dur-ing the day in a safe, fun, and structured environment. Courses and programme activities are designed to promote and foster a better quality of life and well -
being to empower residents to become self -sufficient
and productive citizens in the community. The three demographic target groups are: youth ages 5 to 18; adults ages 19 to 64; and seniors 65 and over.
Mr. Chairman, as a result of reduced funding
and to ensure expenditure is within the allocated budget for 2016/17, the department, through the
Community Education Programme, will seek more
creative ways to advertise and increase participation in community education classes. Programme as-sessment and analysis will continue to be conducted to identify courses that are in demand, as well as
those courses that should be discontinued based on
level of interest and need, thereby reducing expend iture on the number of instructors being paid.

Business Unit 62160—Community Education A dministration

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total amount allocated for this business unit for Financial Year 2016/17 is $727,000. This represents a de-crease of $90,000, or 11 per cent when compared
with the allocated budget for Financial Year 2015/16
(as evidenced on page B -251). This decrease is a
result of the resignation of one of the community
school coordinators in April 2015. Due to the hiring freeze currently in place, the post has not been filled.
Mr. Chairman, funds allocated under this
business unit cover the overall programme administr ation and operation for the Community Education and Development Programme. It covers the planning, c oordination, implementation, and delivery of a diverse variety of over 200 educational, social, recreational, cultural, personal, and professional development
courses annually. Provision of these course offerings
and activities benefit the social and economic devel-opment of Bermudian resident s. In addition, this bus iness unit covers the shared administration of activities and functions of the Bermuda Community Education Advisory Council in the delivery of activities, special
events, projects, and programmes that benefit ind ividuals, families, and community neighbourhoods.
Mr. Chairman, the total estimated revenue for
2016/17 is budgeted at $86,000, which represents a
decrease of $35,000, or 29 per cent from 2015/16 (as
evidenced on page B -252). This reduction is attribut-able to an anticipated decline in student enrolment,
which will impact student registration fees for Co mmunity Education Courses, and as such this decrease
is reflected in the budget.
Mr. Chairman, the subjective analysis of current account estimates is found on page B -252 of the
Estimates Book. As I noted a few moments ago, the
reduction in budget allocated for salaries by $76,000
is due to the resignation of one of the Community School Coordinators in the Community Education and Development Programme in April 2015.
Mr. Chairman, the reductions in communic ations; advertising and promotion rentals; repair and
maintenance; energy; and materials and supplies total $141,000 [sic]. This cumulative reduction represents a
concerted effort to streamline costs as required under
the Medium Term Expenditure Framework (MTEF).
Mr. Chairman, the increase in professional
services of $62,000 for Financial Year 2016/17 relates
to new and/or expanded programmes under business
units 62010, Cultural Festivities and Celebrations; and 62030, Cultural Education, as I have discussed earlier in my presentation.
Mr. Chairman, I would like to extend sincere
thanks to the staff of the Department of Community and Cultural Affairs, for their dedication and commi tment to the promotion and preservation of our cultural
heritage in Bermuda. This department is ably led by Director Heather Whalen.
Mr. Chairman, this concludes my presentation
of the budgetary allocation for 2016/17 for Head 52, the Department of Community and Cultural Affairs.

Yes, I know, you have got Head 55,
correct? Hon. Patricia J. Gordon -Pamplin: Yes. And I will
now turn to Head 55.

HEAD 55 —DEPAR EMENT OF FINANCIAL ASSI STANCE
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, I
will now present the estimates of expenditure and
revenue for Head 55, which is the Department of F inancial Assistance, for Financial Year 2016/17, which can be found on pages B- 257 through B -260 of the
Estimates Book. (Just let me catch up with myself, Mr. Chairman.)
Mr. Chairman, page B -258 shows a budget allocation for programme 5501 of $54,561,000 for the Department of Financial Assistance for the year 2016/17. This represents an overall increase of
1580 21 March 2016 Official Hansard Report

Bermuda House of Assembly $5,430,000, or 11 per cent when compared to the
budget allocation for 2015/16. This increase will be
discussed later on in this presentation. This year’s
budget will provide for:
1. The financial framework to sustain the Finan-cial As sistance Programme, which encompasses:
o a continued increase of clients with r equests for financial awards to maintain a basic standard of living;
o the cost of rental accommodations;
o the cost of food;
o the cost of utilities;
o funding for the cost of HIP and Future-Care premiums;
o the cost of rest home or nursing home care;
o the cost of in- home or adult day care; and
o medical equipment, supplies, and medic ation.
2. The financial framework to sustain the Child Day Care Allowance Programme, which cu rrently provides awards of up to $800 per month per child to attend a registered and/or
licensed day care provider.
3. General administration and operational costs
for the department.

Mr. Chairman, the mandate of this department
is to ensure that individuals and families with insuff icient financial resources have access to services in order to gain, maintain, or regain a minimum standard of living whilst encouraging personal and economic independence. The services will also encourage the development of personal skills, resources, and to ult imately foster financial independence from receiving
assistance.
Mr. Chairman, the department continues to
provide income maintenance to Bermuda’s neediest
individuals and families, and does so in the most ef-fective, efficient, and economical manner. This conti nues to be achieved through the commitment and dili-gence of the staff of the Department of Financial A ssistance, led very ably by Director Dianna Taylor.
Mr. Chairman, the department administers
two business units, for which a general summary is contained on page B- 258 of the Estimates of Revenue
and Expenditure. These business units are 65050, Grants Administration; and 65080, General Admini-stration, which will be discussed in turn.

Business Unit 65050—Grant Administration

Hon. Patri cia J. Gordon -Pamplin: Mr. Chairman, the
total amount budgeted for this business unit for Financial Year 2016/17 is $50,925,000. This reflects a net increase of 10 per cent or $4,836,000 when compared
with original estimates from the 2015/16 Financial Year , which is seen page B -258). This amount is br oken down as follows:

Organizational Grant Recipients

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, this
business unit includes funding for Organizational Grant recipients of $1,678,000. This amount is paid on
a quarterly basis and it is estimated that on average, $419,500 will be paid out each quarter during Finan-cial Year 2016/17.
Grant recipients are:
• Care of the Blind—$30,000;
• Meals on Wheels —$48,000;
• Matilda Smith Williams Rest Home—$250,000;
• Supportive Therapy for persons with Aids and
their Relatives (STAR) —$150,000;
• Teen Haven— $200,000;
• Salvation Army —$400,000;
• Summerhaven— $300,000; and
• Packwood Rest Home—$300,000 (as ev idenced on page C -19).

This represents a net decrease of $325,000
from Financial Year 2015/16 in an effort to contain
costs as per the medium term expenditure fram ework —deficit reduction strategy, which will be explained later on in this presentation.
Mr. Chairman, in addition to the grant
amounts specified above, all but two of the organiza-tions mentioned above (Care for the Blind and Meals on Wheels) receive an additional monthly financial award, based on the number of clients who are in need of residential services in those organisations.
This award is paid at the current rate of up to $5,000
monthly.

Financial Assistance Programme
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
business unit 65050 also includes funding for the F inancial Assistance Programme in the amount of
$45,847,000.
The Financial Assistance Programme is earmarked for clients who are approved to be in receipt
of financial awards.
Mr. Chairman, the department’s Financial A ssistance Programme, operates under the Financial Assistance Act 2001 and the Financial Assistance Regulations 2004 and subsequent amendments made
in 2004, 2008, 2011, 2012, 2013, 2014 and 2015. The
most recent amendments affecting the Financial Assistance legislation were made in 2015. These amendments, together with additional internal policies, were implemented with a view to revamp previous award criteria and to impose additional conditions in order to increase client responsibility and accountabi lity.


Bermuda House of Assembly Mr. Chairman, an amendment to the Financial
Assistance Regulations 2004 was made which establishes, for the first time, time limits for able-b odied r ecipients to be in receipt of assistance on a sliding fee scale.
The amendment provides that payment of an
award to an able- bodied recipient shall be limited to a
maximum period of five years, whether that period is continuous or a period made up of an aggregate of two or more awards. Accordingly, beginning on July 1,
2015 payment of an award to an able- bodied recipient
shall be paid at the full amount that they were eligible to receive up to a maximum of one year only, and during each of the subsequent four years an award
(whether continuous or aggregate) shall be reduced by 10 per cent of the full amount they are eligible to
receive as follows:
• during the second year, at 90 per cent of the
full eligible amount;
• during the third year, at 80 per cent of the full
eligible amount;
• during the fourth year, at 70 per cent of the full
eligible amount; and
• during the fifth and final year, at 60 per cent of
the full eligible amount.

Mr. Chairman, this particular amendment
does not affect seniors or persons with disabilities.
The intent is that as more and more jobs become available to able- bodied persons, they will become
less and less reliant on financial assistance.
Mr. Chairman, another amendment to the F inancial Assistance Regulations 2004 took effect on
July 1, 2015. This amendment provided that, in order
to investigate and verify statements of a medical nature relating to an application by a person who has been in receipt of a financial award for a period in ex-cess of three months, the Director of Financial Assi stance may refer the applicant’s case to the Chief Medical Officer, or a doctor nominated by the Chief Medical Officer for review, i.e., a second medical opi nion. This amendment affects all clients.
Mr. Chairman, a further amendment to the F inanci al Assistance Regulations 2004, which also became effective on July 1, 2015, requires single parents must attempt to secure court -ordered child support payments if they are not already in receipt of court -ordered child support payments, or if they are
not already receiving voluntary child support pa yments prior to being approved for a financial award.
Where the applicant is a single, separated or divorced
parent with one or more dependent children, the ap-plicant must indicate what steps have been taken to apply to the court for an order in relation to the dependent children under whichever one or more of the
following enactments apply:
• Part IV B of the Children Act 1998 (which is
an order for support); • Part IV of the Matrimonial Causes Act 1974
(which is fin ancial provision for child of family);
• Section 3(1)(g) of the Matrimonial Proceed-ings (Magistrates’ Courts) Act 1974 (maint enance of a child of the family);
• Section 12(2) of the Minors Act 1950 (maint enance of a minor);
• Sections 2 and 3 of the Maintenance Orders
(Reciprocal Enforcement) Act 1974 (transmis-sion of maintenance orders and provisional
maintenance orders).

This particular amendment does not affect
seniors.
Mr. Chairman, the department continues to
assess persons based on the formula indicated in the
Financial Assistance Regulations 2004. This indicates
that the eligibility for an award will be established when the amount of allowable expenses of the person exceeds the amount of qualifying household income of the person/household for that period, and the value
of investments (whether located in Bermuda or els ewhere) owned by the person does not exceed $500 in
the case of persons under the age of 65, and $5,000 for persons over the age of 65.
Mr. Chairman, the majority of persons recei ving financial awards are seniors and persons with disabilities. Services and funding for seniors include: payments for rent, electricity, phone, gas, et cetera; rest/nursing home fees; adult day care or in- home
care, which may be waived if rest/nursing home be-comes mor e cost -effective; and the cost for medic ation, medical equipment and supplies.
Mr. Chairman, currently, there are approx imately 914 seniors serviced by the Department of F inancial Assistance. This is an increase of 54 clients over Financial Year 2015/16. Approximately 185 sen-iors are in rest/nursing homes, while 112 are living in
Bermuda Housing Trust properties. The remaining
seniors reside at home or with family members. The department currently spends approximately $1,940,000 per month to service this population.
Mr. Chairman, the cost of rest home or nur sing home care is $354,770 and $431,700, respectively, on a monthly basis. This means that a total of
over $786,470 is paid monthly, representing an i ncrease of $10,470 over Financial Year 2015/16.
Mr. Chairman, in addition to assistance pr ovided for rest or nursing home care, the department continues to support family members who qualify to
enable their senior relative to remain in the household.
This assistance, while cost -effective to Government,
conti nues to provide a much- needed boost for seniors
to spend time with their families, and to remain in their own homes or those of their loved ones. This benefit
is called Home Care Allowance and is at a cost of up
$2,000 monthly. Currently the department pay s
$113,000 monthly for this service. This is an increase of $26,623, or 6 per cent over the same period of time
1582 21 March 2016 Official Hansard Report

Bermuda House of Assembly in 2015/16. The spending for this service is likely to
greatly increase as there are many seniors who are in
need of care and cannot be accepted into a rest or
nursing home due to the lack of bed space. These seniors are now being cared for in their home or in the home of a loved one, by one or more, personal home care providers.
Mr. Chairman, many seniors, who may be at a
higher level of functioning and who remain at home or reside in the home of their children or loved ones, of-ten find idle time being alone as depressive. For per-sons who fit into this category the department pays for them to be placed in an active and nurturing adult day
care environment. At present, the department pays
over $12,810 monthly for this service.
Mr. Chairman, currently there are approx imately 825 persons with disabilities receiving assi stance. This is an increase of approximately 45 clients over the prior year. These disabilities can range from
short term/temporary to long term/permanent; and can be of a physical nature or due to mental health chal-lenges. The department currently spends approx imately $1,384,000 monthly to service this population. This is an increase of $94,000 in comparison to the
prior year.
Mr. Chairman, the Department of Financial
Assistance also pays for FutureCare Insurance pr emiums for all senior clients. Currently, the monthly rate is $504.21. HIP insurance is provided for all clients under the age of 65 at a current cost $433.31 monthly.
The cost of health insurance premiums tends to increase yearly. However, we did hear from the Ministry of Health that there was to be no increase in health insurance premiums for HIP or FutureCare for the en-suing year. The amount paid out on a monthly basis
for health insurance at these rates totals over
$760,228. This is an increase of $150,228 over the
same period last year.
Mr. Chairman, the cost for medication for D epartment of Financial Assistance clients per month is
in excess of $73,063 or over $877,000 annually.
This is an increase of $23,000 per month over
the prior year. The payout for medication is a clear sign that Department of Financial Assistance clients, although living longer, are not in the best of health.
Mr. Chairman, let me note here, that the cost
of health care for ageing baby boomers worldwide is
astronomical. Having said that, the Department of F inancial Assistance is constantly working with the
Health Insurance Department to strategise cos teffective measures going forward as this population is due to grow significantly over the next decade.
Mr. Chairman, the Department of Financial
Assistance does not subscribe to appointments. There is a walk -in referral service that is open to the public .
Pre-screen hours are between 10:00 am and
12:00 pm and 2:00 pm and 4:00 pm Monday through
Thursday. The last applicant is seen at 11:45 am and
3:45 pm, respectively. Persons are seen on a first come, first served basis. The amount and category of
pre-screened applicants continue to reflect a substa ntial influx of able -bodied unemployed and earnings low
persons applying. Statistics provided by the Depar tment of Financial Assistance show that this continues
to be the trend, although the higher overall number of clients are among seniors/pensioners (at 35 per cent)
and the disabled (at 32 per cent); the higher number
of applicants are able- bodied unemployed and ear nings low persons.
Mr. Chairman, as the majority of clients serviced through this department continue to be seniors, disabled, and persons with special needs, we co ntinue to endeavour in meeting the needs of these populations, in particular.
Mr. Chairman, there continued to be a sustained demand for overall financial assistance in 2015/16. The total number of clients serviced has continued to increase, fluctuating monthly between 2,755
and 3,024. The overall increase in the number of applicants who are processed is directly attributed to the shrinking of personal financial resources in our current economic climate, inability to find employment, job
losses, and redundancies.
Mr. Chairman, due to the economic climate,
the categories of able- bodied unemployed and ear nings low persons have more than doubled over the last two to four years. This equates to a monthly pa yout of over $1,057,000 just for these two categories of clients.
Mr. Chairman, expenditure over the last se veral years has increased from $9,700,000 per quarter in the first quarter of 2012/13 to over $12,500,000 for the third quarter of 2015/16.
To recap, the high- ticket items for payout i nclude the following:
1. Rental Accommodations. Rental accommoda-tions paid to clients on a monthly basis have topped $1,350,000. The department has taken steps, via policy, to decrease the num-ber of applicants desiring to move into rental
accommodations and not having a means to
contribute to the cost of that rental unit.
2. Rest and Nursing Home Fees. These fees have a payout of approximately $783,500 monthly.
3. Insurance Premiums. This is a combination of
both the cost of FutureCare for our seniors
and HIP for persons under the age of 65, with a payout of over $752,725 monthly.
4. Food. On a monthly basis the cost of food has a payout of over $431,000.

Mr. Chairman, all able- bodied applicants are
referred to the Department of Workforce Development and must register with them prior to even coming on as a client with the Department of Financial Assis-tance. This requirement has been in existence for a couple years and encourages Department of Financial


Bermuda House of Assembly Assistance cli ents to begin the process of looking for
work in order to be in receipt of a financial award.
Mr. Chairman, to further encourage ablebodied clients to shorten the length of time on assi stance, the department launched its Community Service Component in July 2014. The aim of community service is to make our clients more work ready by pr oviding service back to Government and to the numer-ous charities across the Island, while still being in r eceipt of a financial award.
Clients are expected to provide up to 15 hours
of community service after being on assistance for a period of at least three months, and are required to
complete five job searches weekly (a reduction of 12
job searches weekly, that must be completed by cl ients who are not yet involved with the community service component).
Mr. Chairman, while clients are receiving f inancial assistance, the department will continue its
outreach to other Government departments and char ities Island- wide to engage able- bodied unemployed
clients the ability to become work ready and contribute
back to the Island of Bermuda. In the first instance,
until more stakeholders can be included as part of this
initiative, there will be a three- month community service rotation. As more stakeholders are secured, that
period of time may be extended.
Mr. Chairman, the department endeavours to
further develop the community service component over time to ensure they are making a contribution of
service while in receipt of their financial award from
the Government of Bermuda.
Mr. Chairman, the department will continue to
maintain a working relationship with the Department of Workforce Development, other government agencies and non- governmental agencies, with a view to i ncreasing and enhancing collaboration in empowering financial assist ance clients to seek and find gainful
employment.
Mr. Chairman, the ultimate goal is to decrease
the client’s dependence for assistance or to eliminate
the need all together.

Child Day Care Allowance Programme
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
business unit 65050 also includes the Child Day Care Allowance Programme in the amount of $3,400,000
for Financial Year 2016/17, as shown on page C -19.
This amount remains unchanged from the prior year.
Mr. Chairman, the Child Day Care Allowance
Program me was officially launched in November
2008, and is guided by the Child Day Care Allowance
Act 2008, and the Child Day Care Allowance Regul ations 2008. The most recent legislative amendments
affecting Child Day Care Allowance were made in 2013 with a view to revamping the current criteria and
to impose additional conditions in order to increase client responsibility and accountability. Mr. Chairman, most parents on the pr ogramme remain single; employed and with two chi ldren (or less) in a registered or licensed child day care environment. The Government of Bermuda will co ntinue assisting parents with the cost of child day care, however, in order to remain within budgetary con-straints, the Department of Financial Assistance may
have to pare back the level of benefit.
Mr. Chairman, to date, the Child Day Care A llowance Programme has paid over $22,600,000 t owards the day care of over 3,456 children, and conti nues to lessen the financial burden of their parents and
guardians.
Mr. Chairman, for persons applying for receipt
of the Child Day Care Allowance the child in question must be registered as Bermudian, which is deter-mined by the Department of Immigration. The Child Day Care Allowance Programme does not benefit non-Bermudians or PRC holders. Also, the child must
also reside with the applicant at the time of applic ation.
Mr. Chairman, this programme’s criteria is
very different from that of the Financial Assistance Programme, in that, with this programme, a person’s
eligibility is clearly centred on the total salary or wage
of the applicant, if single, or of both parents, if mar-ried. Child maintenance payments are not factored as income into the assessment.
Mr. Chairman, parents/guardians of children
in the Child Day Care Allowance Programme are
working, attending school, or looking for employment.
If they are unemployed they must conduct job searches.
Mr. Chairman, during 2015/16 the number of
applicants for this programme resulted in over 300 families and 350 children benefiting. Another 40 appl icants were found ineligible as a result of having i ncomes over the currently established income thres hold of $55,000 per annum.
Mr. Chairman, this programme does not scr utinise or penalise savings, in fact it encourages it. It is
being suggested and encouraged that pa rents/guardians look at this small window of opport unity (while they are able to be in receipt of this financial award when their child is between the ages of zero and four) to begin saving and/or pay off current accumulated debt. Annual savings could amount up to
$9,600 per annum, per child.
Mr. Chairman, to date, the expenditure for the
Child Day Care Allowance Programme has ranged
from $267,000 to $340,000 monthly, with an average monthly award of approximately $796 monthly, per child. Total allocated expenditure for 2016/17 is
$3,400,000 which remains consistent with the prior
year, as shown on page C -19 of the Estimates Book.
Mr. Chairman, the Department of Financial
Assistance will continue to focus on internal policies and strategies to ensure that clients can benefit from enhanced in- house services, as well as outreach ser1584 21 March 2016 Official Hansard Report

Bermuda House of Assembly vices around issues dealing with minimising or elim inating financial strife. The department will continue to
focus on strategies for reducing the overall expend iture of the department.
Mr. Chairman, abuse, misuse, and fraud, continue to be committed by a small margin of recipients; however, one infraction remains one too many. The
Department’s Anonymous Hotline for persons to r eport suspected cases of abuse of the system conti nues to work well. The Hotline was established in
January 2014. The department continues to extend an invitation to members of the general public who may be aware of anyone who may be abusing the system,
to report any possible misuse of Government funds by
calling 297- STOP (7867).
Mr. Chairman, during the Financial Year
2015/16, over 90 calls were made to 297- STOP
(7867). Of these calls, 82 per cent have been substantiated; 74 cases have been confirmed fraud, with
between 35 and 40 cases of attempted fraud; while 18 per cent have been unsubstantiated and 7 are cur-rently under investigation.
Mr. Chairman, additionally, during Financial
Year 2015/16, 61 clients/vendors were required to
repay the department. The Department’s Investigative
Officers netted over $98,000 in recovered funds during 2015/16 compared with $88,000 in the year 2014/15.
Mr. Chairman, continued payouts of over
$12,500,000, as in the third quarter of Financial Year
2015/16, continue to be entirely unsustainable. As
mentioned earlier in my presentation, in order to be able to accommodate new client applications, and to remain within budgetary allocation limits, the Regul ations were amended to restrict the duration of benefits for able- bodied unemployed persons under the age of
65. The Government anticipates that the onset of new investment in the economy will create job opportuni-ties, allow clients to become more self -sufficient, and
reduce their dependence on the public purse.
Mr. Chairman, spending for the first quarter of
2015/16 was unprecedented at approximately
$12,696,000. This amount was approximately 25.8 per cent of the allotted budget for 2015/16 and
includes the payout for the Financial Assistance Pr ogramme, the Child Day Care Allowance Programme, institutional grant recipients, and overseas travel. It
does not include administrative expenditure, including
salaries, which would add an additional 2 per cent,
thereby taking this to 27 per cent of the allotted budget for 2015/16.
Mr. Chairman, spending for the second quarter of 2015/16 was more than $12,378,000. Similar to
the first quarter, this figure includes payout for the F inancial Assistance Programme, the Child Day Care
Allowance Programme, institutional grant recipients, and overseas travel, but excludes administrative ex-penditure. When both quarters are combined, this showed current total expenditure was approximately 50.8 per cent of the allotted budget for 2015/16, which
was tracked to be 5 per cent over projected expend iture for the first six months of 2015/16. Total actual expenditure for the Financial Assistance Programme,
the Child Day Care Allowance Programme, instit utional grant recipients, and overseas travel, but ex-cluding administrative expenditure stood at
$42,471,000 as of January 31, 2016.
Mr. Chairman, the total actual expenditure, i nclusive of administrative expenditure, was
$44,775,000 as of January 31, 2016. This is in line
with the projection of $50 million to $52 million that was made at the beginning of the third quarter given
the influx of new applicants and the continued increase of caseloads.
Mr. Chairman, the department continues to i ntroduce policies to encourage clients to be more ac-countable, responsible, and focused on a new vision of self -reliance as a means to slowing down and ult imately stopping this unsustainable trend.

Business Unit 65080—General Administration

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman, the
total amount budgeted for this business unit 65080 for
Financial Year 2016/17 is $3,636,000. This reflects a net increase of $594,000 when compared with the
original estimate for Financial Year 2015/16 (as shown on page B -258). The increase is to fund the
recruitment of additional staff in order for the depar tment to continue to adequately assess applicants and deliver services in an efficient manner .
This business unit provides funding for ge neral administration and operational costs for the de-partment. As per the subjective analysis on page B -
258, the largest expenditure in this business unit is
salaries, which represents 95 per cent, or $3,480,000
of the budget allotment. The full- time equivalent count
remained at 33 in Financial Year 2015/16; however, it
is proposed to increase it to 41 in 2016/17 (as evi-denced on page B- 259), which would have the effect
of adding an additional team in order to support the case work.
Mr. Chairman, currently each Financial Assi stance Worker within the Department of Financial A ssistance is responsible for a caseload of over 240 i ndividual clients. This amount exceeds what is acceptable best practice, which is closer to 100 to 125 cases
per worker. The work performed by the staff involves collection and careful review, and analysis of various types of documents in order to complete a full as-sessment of each client. Clients are processed in a very efficient manner to ensure files and assessments
are approved on a weekly basis in accordance with
the department’s policies and procedures. The work performed by the staff is extremely challenging, de-manding, and strenuous as each staff member must pay close attention to detail at all times when evalua ting clients.


Bermuda House of Assembly Mr. Chairman, the department has budgeted
$62,000 for Capital Acquisitions as per page C -13 of
the Estimates Book. This funding is required for the
upgrade and monitoring of the department’s software system (FASS). Th is upgrade is necessary to ensure
that the FASS system can interface with the Gover nment’s E1 system and other networks associated with
the processing of payment for Financial Assistance
clients. The additional $12,000 is required to purchase office furniture and equipment.
Mr. Chairman, explanations for changes to
additional cost categories as per the subjective anal ysis found on page B -258 will now be provided:

Training

Hon. Patricia J. Gordon -Pamplin: The staff training
budget has been reduced from $15,000 in 2015/16 to
$9,000 for the ensuing year as a cost reduction
measure.

Travel
Hon. Patricia J. Gordon -Pamplin: The allocated
budget for travel in 2016/17 is $1,000 which repr esents a decrease of $2,000 from the prior year. Travel
in the ensuing year will be approved by the director
only if critical and absolutely necessary. This expendi-ture is expected to be kept to a minimum.

Communications

Hon. Patricia J. Gordon -Pamplin: The allocated
budget for Communications has been reduced by
$1,000 to $4,000 in 2016/17.

Advertising and Promotion

Hon. Patricia J. Gordon -Pamplin: The amount
budgeted for advertising and promotion in 2016/17 is
$9,000 which represents a decrease of $9,000 from
the prior year. As a means to achieve cost savings on
advertising and promotion, brochures which were used in 2014/15 and 2015/16 will be used again in 2016/17. These brochures give an overview on ser-vices and processes by the department and are still being utilised.

Professional Services

Hon. Patricia J. Gordon- Pamplin: The cost of pr ofessional services is expected to be reduced by
$15,000 to $20,000 in 2016/17.

Repair and Maintenance

Hon. Patricia J. Gordon -Pamplin: The amount
budgeted for repair and maintenance in 2016/17 is $15,000, which represents a decrease of $12,000 from the prior year.

Materials and Supplies
Hon. Patricia J. Gor don-Pamplin: The allocated
budget for materials and supplies is $88,000 in the coming year, which represents a decrease of $7,000
from the prior year.

Equipment (Minor)

Hon. Patricia J. Gordon -Pamplin: The budget all ocation for minor equipment has been reduced to
$5,000 in 2016/17.

Changes to Grant Contributions

Hon. Patricia J. Gordon -Pamplin: A listing of grants
and contributions payable by the Department of F inancial Assistance can be found on page C -19 of the
Estimates Book. As some of the grants are embedded
in subaccounts under object code 7042, I will present a full listing for the benefit of Honourable Members. I
am going to read two numbers which are the numbers
and then the increase will be the third number, which will be the increase, so I am going to read three numbers on each. So the first will be Financial Year 2015/16, the second will be the Financial Year 2016/17 and then the third number for each will be the
increase or decrease.
• Care of the Blind, $30,000; $30,000; $0
• Meals on Wheels, $48,000; $48,000; $0
• Matilda Smith Williams Rest Home, $275,000;
$250,000; $25,000 decrease
• S.T.A.R. [Supportive Therapy for persons with Aids and their Relatives], $175,000; $150,000; $25,000 decrease
• Teen Haven, $225,000; $200,000; $25,000 decrease
• Salvat ion Army, $450,000; $400,000; $50,000
decrease
• Summerhaven, $425,000; $300,000;
$125,000 decrease
• Packwood Rest Home, $375,000; $300,000;
$75,000 decrease

Subtotal for Organisational Grants $2,003,000;
$1,678,000; $325,000 net decrease.
• Child Day Care Allowance, $3.4 million; $3.4
million; $0
• Financial (Social) Assistance, $41.361 million;
$46.447 million; $5,086,000 increase

Total Grants $46.089 million; $50.925 million; an increase of $4,836,000.

Changes above relate to: Organisational
grants for Matilda Smith Williams Rest Home;
1586 21 March 2016 Official Hansard Report

Bermuda House of Assembly S.T.A.R.; Teen Haven; Salvation Army; Summerhaven; and Packwood Rest Home have experienced
a total net decrease of $325,000 compared to the prior year. This decrease is attributable to the medium term expenditure framework —deficit reduction strategy, and the department will endeavour to stay within the established financial framework.
I will, however, point out that individual clients
who are resident in these specific facilities are also in receipt of the awards to which they are entitled under Financial Assistance for their home care and nursing home care. So these reductions are for the overall organisation, it does not impact the individuals who
would be eligible to get additional funding for their own
personal circumstances.
Financial (Social) Assistance has an alloc ation of $46,447,000 in 2016/17. This will allow the de-partment to continue to provide financial awards to Bermuda’s neediest population. The department recognises that the onset of additional economic stimuli
into the economy will create opportunities, allow cl ients to become more self -sufficient, and reduce the
dependence on the public purse.

Performance Measures
Hon. Patricia J. Gordon -Pamplin: Mr. Chairman,
explanations for performance measures as found on
page B -260 will now follow:
• To provide financial awards to 100 per cent of
the department’s new financial assistance cli-ents within 10 working days .
In 2015/16 the Department of Financial Assi stance was successful in providing clients with financial assistance within 10 working days. This process begins with an applicant applying for pre- screening at
the department on day one. During the pre- screen
interview, the applicant is informed of identification and documents that they will need to submit in order
for a file to be made for an assessment. An example of documents might include: bank statements; medical form; and relevant bills such as BELCO and BTC; as well as picture identification, for example in the form of a valid passport. The onus is on the app licant to su bmit the required identification and documents in a
timely manner. Once all documents have been su bmitted then a file is created and vetted by the prescreen manager, which results in an appointment be-ing made with the Financial Assistance worker to as-sess the case. This process is generally completed within 7 to 10 days. The department continues to successfully attain 100 per cent of this performance
measure; however, this can only be achieved if the
applicant returns all required information in a timely manner.
• To award grants to charitable organisations
within 30 days of receiving request doc uments. All organisational grant recipients must submit
a letter of request along with quarterly financial stat ements requesting a quarterly grant allotment. Once
received, the information is reviewed by the Director of Department of Financial Assistance, and if all i nformation is correct request for payment is approved. As shown on page B -260, all eight organisational
grant recipients received grants per their requests.
• To provide awards to 100 per cent of the day
care providers by last day of month before awards are due.
Documents submitted by parents/guardians of
children in the Child Day Care Allowance Programme are assessed on a quarterly basis. Once a financial
assistance worker has made an assessment, the f inancial assistance manager will either approve or r eject the award. Approvals for all day care payments are made directly to the day care providers. This is generally done every three months and payments are
made on the first of each month within that three -
month period. In the main, these payments were achieved on time for 2015/16.
• To ensure that all 33 employees successfully complete at least one relevant training course per year .
All Fina ncial Assistance employees have not
successfully completed this goal as either the course they requested was cancelled or they were unable to attend relevant training due to their sizeable caseloads.
• To complete 700 site visits for financial assistance clients during the year.
The Department of Financial Assistance aims
to complete at least one home visit each calendar
year for all new clients. However, with the increasing
number of new cases, financial assistance workers
have been unable to make the desired amount of home visits. Although prospective clients may not be seen in the calendar year in which they become a cl ient, they are seen shortly thereafter.
I will also point out that the increase in staffing
for which we are now just awaiting Cabinet approval, as mentioned, and is provided for in the Budget Book, will help to alleviate the backlog that might be created by the additional caseload of the workers.
Mr. Chairman, I would like to express my si ncere appreciation to the staff of the Financial Assi stance Department for their continued commitment and for the efficient manner in which they carry out their duties and responsibilities. I said at the outset the D irector for that department is Dianna Taylor.
This now concludes my presentation on F inancial Year 2016/17 budgetary allocation for Head 55, the Department of Financial Assistance. Mr. Chairman, I would just like to also point out, because I did not do it at the outset when I did the Ministry Headquarters, that the entire department and the en-tire Ministry is led under the very able leadership of
my Permanent Secretary who is Wayne Carey, who is


Bermuda House of Assembly in the Gallery here, as well as Ms. Taylor who is there,
and I think I see somebody else down there —

[Inaudible interjections]
Hon. Patricia J. Gordon -Pamplin: Oh, I cannot see
who it is. I am sorry, I just could not see, it is dark down that way, but I am deeply appreciative to them
as well as to each of the department heads, all of the directors, as well as to my personal assistant in the Minist ry, Ms. Tracey Wilkinson, and all of the support
staff.
Mr. Chairman, we have a staff within the Mi nistry of which we can be truly proud. They are the consummate professionals, and I am very, very pleased and honoured to have them as my support team.
And for the department heads that I will not
have the opportunity to discuss, I would also like to
just acknowledge and thank the directors of those departments as well, which are Joanne Brangman of the Department of Libraries, as well as the Department of Archives where we have got Bev Morfitt as the Acting
Director.
Mr. Chairman, with those remarks I would like
to invite other Members to participate in this debate.
Thank you.

All right. Thank you, Mr.
Chairman.
And I am not just saying this because this is
my Shadow Ministry, but I think that this particular
Ministry is one of the most important ministries that we have. And I say that to say, Mr. Chairman, that this is the Ministry that gauges the pulse and the condition of a large section of our people. So I think we must always be mindful of how we treat those that are the
least among us and most in need of and looking to Government for assistance.
Mr. Chairman, as I start I have to reflect a
minute. As I was preparing for this debate this week-end, I remembered the Minister of Education’s r emarks last year. When he made his contribution to last year’s debate he said that the year before . . . he said
what I said last year sounded very much like the pr evious year . So try as I might, Mr. Chairman, to change
some of those remarks, most of them are going to remain relatively the same. Why you may ask? B ecause not much of what this OBA Government has done has changed. We are relatively close to where we were last year .
And no matter how we may look at it, Mr.
Chairman, as I said before, the Ministry of Community and Culture binds our country together. To me it is the
glue. It is like the mortar that addresses and connects
ministries like our Health, our Education, and Sport,
and Public Safety —just to name a few.
So as I start my remarks, I want [to refer] the
Chairman to page C -37 where they have the expend itures breakdown. And I see, Mr. Chairman, there are about six different ministries with a bigger slice of the pie, so to speak, than Community, Culture and Sports.
So my argument is that if we really want to fix a lot of what is happening in our community, we have to rec-ognise the role that Community, Culture and Sport
can play in not only the development of our country
and community, but addressing a lot of the social ills. So rather than spend so much money on things like National Security . . . and that is another one of the statements I made last year and I think I made it the year before last and I will make it again. And I keep
making it because I use the words of my momma, she always used to say, An ounce of prevention is worth a
pound of cure.
So having said that, Mr. Chairman, let us begin by looking closely at the heads beginning on page
B-225.
Head 71, the Ministry of Community, Culture
and Sport Headquarters has been increased this year
by $550,000.

[Pause]

It is a little dark, Mr. Chai rman, I need to get this book closer to me.
So, Mr. Chairman, where was I? On page B -
225, Head 71, t he Ministry of Community, Culture and
Sport Headquarters. It has been increased this year by $550,000 and the year before it had a decrease of
$182,000.
Head 20, Youth, Sport and Recreation, Mr.
Chairman, after being slashed by $1.2 million in 2015/16 it is being further cut by almost $500,000 at $486,000 for Fiscal Year 2016/17.
1588 21 March 2016 Official Hansard Report

Bermuda House of Assembly Head 23, Mr. Chairman, the Department of
Child and Family Services which was chopped by $2
million in Fiscal Year 2015/16, this year we have had an increase of $998,[000].
Head 52, the Department of Community and
Cultural Affairs, has been cut by $330,000 in 2015/16 and now they have a further cut of $142,000 in fiscal
year 2016/17.
Head 55, Financial Assistance, we had an i ncrease of $5.4 million for Fiscal Year 2016/17 and we
had a corresponding increase of $2.1 million for
2015/16.
Mr. Chairman, I cannot stress enough that if
we adequately fund these particular departments this Ministry . . . I am just trying to organised here, Mr.
Chairman. You did say I have got some time, yes?

All right.
Mr. Chairman, as I was saying, I cannot stress
enough that if we properly fund and recognise the i mportance of these various departments, it can go a
long way in addressing a lot of our social issues on
the front end.
Mr. Chairman, some say that we are coming
out of the recession, but one sure indicator, in my
humble opinion, is to listen to those that depend on Government services. A lot of these social pr ogrammes, Mr. Chairman, impact our everyday Mr. and
Mrs. Bermuda.
So having said those few remarks, I am going
to page B -226, that is the Ministry of Community, Culture and Sport and that expenditure has an increase
of $550,000.
Now, I follow where on page B -227 that there
has been an increase in Employee/Admin of a corr esponding staff of two. But when I go to look at the Per-formance Measures on page B- 228, I see where four
Women’s Council meetings were scheduled to be per-formed last fiscal year, one [per] quarter, and it act ually had been forecast to have none completed by the
end of this fiscal year and no Women’s Council meet-ings at all coming up for this year. So I have to ask the Minister, Mr. Chairman, some questions.
Now, Madam Minister, how should we do
this? Should I ask all the questions for the Head and
then we address it?
Hon. Patricia J. Gordon -Pamplin: Ask all your questions.

And why, Madam Minister,
are there no Women’s Council meetings projected for 2016/17?
Back to [page] B -227, I see there is a 250 per
cent increase in Training, a 68 per cent increase in
Professional Services, and when I try to find out what
that relates to or what that related to I could not. So can the Minister articulate what professional services
does this increase in Professional Services relate to?
I see also that there is another decrease of
$30,000 in Grants and Contributions, to be exact. And
when I turn to page C -18, Mr. Chairman—

[Inaudible interjection]

—ready for me, Mr. Chai rman? Okay. As I turn to page C -18 under Grants and
Contributions, just to follow where that decrease came
from, I noticed that it was to Parish Council commi tments.
And again, Mr. Chairman, a lot of what I said
last year I say again today, that when I see a two- year
gradual decrease in parish council commitments, and I strongly feel that in recognising the historical signif icance of our parish councils and what they can do
and be for us in today’s climate, almost goes without
saying. So what I am saying is I would like to suggest that we look a little closer to these parish councils. What and how does the Minister view the role of the parish councils nowadays? Because the way I look at
it, we can really make these hubs as far as we could
use them to create some community guidance, we could have the parish nurse, legal advice, all that kind of stuff can come up out of our parish councils.
Okay, that really ends my remarks on
Head 71, really not much there.
Let us move now, Mr. Chairman, to [page] B -
238, Head 20, Youth, Sport and Recreation. I notice here, Mr. Chairman, that as I make my remarks, I am mindful of a lot of the budding athletes that we have in
Bermuda. We have a lot of talent right here and this is one of the areas I said earlier that if we put a little less
money in National Security and a little more money in
Community, Culture and Sport, we ma y very well be
able to direct and redirect a lot of our young athletes before incarceration, before ankle bracelets, and be-fore a lot of their opportunities can be lost and side-tracked. Because too often I think that we demand


Bermuda House of Assembly excellence from our athletes, especially when they
compete internationally, but I feel that we do not pr ovide the proper financial support and other resources.
Not only can we produce these great athletes,
but as a consequence —intended or otherwise, Mr.
Chairman— we can create a healthy community by
focusing more of our commitment, energy, and r esources at the front end rather than the back end.
So as we go, Mr. Chairman, I think I am going
to see where the glue that I talked about earlier comes
into play, the glue and the mortar in building our community.
So this 2016/17 Budget represents a decrease of $486,000. This is after a substantive de-crease last year, as I mentioned, when this very budget had a cut of $1.2 million, Mr. Chairman. That is decrease of almost $2 million in two years.
So when I look closely at page B -241, where
they have the employee numbers of full -time equiv alents I notice a decrease of five staff members. Now this jumped out at me because this is in relation to our Community Centres. Over the last six to eight months, Mr. Chairman, we have had a lot of . . . not a lot, but
over the last six months a few times we have seen in
the news some issues dealing with our Community
Centres. And so if I may, Mr. Chairman, just remind this Honourable House that last year in October 2015 there was a report that our Community Centres were in danger of being closed and/or staff were being cut. So a colleague of mine who sits in another place was
interviewed for TV, and she articulated our sent iments, my sentiments exactly, of the importance of
these Community Centres and the role that they have
played and that they continue to play in our communi-ties, Mr. Chairman.
Of course those, I do not know, probably like
me . . . for those of us who came up in the Community Centre envir onment, we know that everything is right
there, or was right there, for us in the hood, so to speak. There were afterschool programmes, summer day camp. Nothing was formal. It was just there, martial arts, seniors programmes, you think about it, you
name it, that is what our Community Centres had.
So I have to wonder with a cut of five staff
members for these Community Centres, my question to the Minister is, how is this going to affect the ser-vices to these centres? And another observation, is
this the fir st step of closing some of these Community
Centres? I had an idea though, Mr. Chairman, as I
was doing my preparation. We have talked or we have heard a lot of talk from the Government about hotels coming on board, especially from our now former Tourism Minister, he was very elated and feeling good
about these hotels.
But my argument is, as I said, when these
developers come in, we should be able to challenge
them to put some money into our communities. Be-cause it does not make sense to have a big hotel on
the hill [costing] $1 million, $2 million, $3 million, $400 million [but] right in our communities, things are falling
apart. Where are those young men going to go? What
is going to happen to those programmes? What is going to happen to the ambience of that hotel b ecause everybody needs to come off of the property sometime? So let us challenge these developers that bring these funds into Bermuda to invest a little bit of
money into some of our community projects.
Mr. Chairman, still on the Community Centre
on page 241 under Employee Numbers, last summer I
think we got our first taste, Mr. Chairman, that all was not well for our Community Centres when, you may remember, Mr. Chairman, when Somerset Community
Centre was in danger, well, as the residents thought,
of being closed down. Some of those residents had picketed and protested outside the Community Centre in a disagreement with the reduced summer schedule. One of the mothers (and her name escapes me right now) had this placard that said “S -O-S,” but it w as not
Save our Souls, it was, if I remember correctly, Save
our Sons. Because her argument was if these Community Centres close down, where will her sons go, the sons of Somerset Community Club, or the sons of the Somerset community go?
I must remark while I am talking about Somerset that Sandys 360, I think, is closed, or last I checked. So you have got Sandys 360 closed, Som-erset Community Centre cutting down on services and probably operating hours. I just foresee a lot of our young men sitting on the wall and getting into unt oward activity, and it leads me right back to what I said about the glue. You put money on the front end, a lot of those young men would not be out there finding idle time and finding themselves into mischief and doing things that they should not be doing.
So as I am going on, Mr. Chairman, a lot of
times we hear the negative rumblings about our Community Centres, in particular, some untoward b ehaviour as to what happens around there. We r emember, those of us who came up in the C ommunity
Centre, it was not all peaches and cream. But it was
only a small segment of untoward behaviour. So that
does not . . . that should in no way negate the value of
these Community Centres because that is where a lot of the nurturing was done back when I was a little youngster coming up and I learned a lot of our social skills and social etiquette right around the Pembroke
Youth Centre.
So, Mr. Chairman, having said that I reme mber coming up there. I remember some good things
coming out of there —Clar ence Hill (professional);
Troy Darrell (another professional), not many people will remember Quinn Paynter (he was another professional). But as a bye one of our idols for our so- called
Back O’ Town byes was Roy Johnson. As a little kid, I
think he was on his way out; but he was another pr ofessional that came up out of the Pembroke Youth
Centre.
1590 21 March 2016 Official Hansard Report

Bermuda House of Assembly But, Mr. Chairman, we could fast forward. Just
last September or October (I think), I got up in this
Honourable House and talked about another product of the Pembroke Youth Centre, what we affectionately call the PYC, Sentwali Woolridge who won a Gold medal at the Pan American Games, Pan American Championships last September.
So I am just talking about those guys just as a
reminder that in our quest as gatekeepers of our
community we need to make certain that our Comm unity Centres remain open and they remain viable, Mr. Chairman. And especially in this climate where unem-ployment is rife and as a result parents cannot afford
a lot of the formal day care activities, thi s is where
Government can assist in a small way in making sure
that our Community Centres remain open . . . more so
than just remain open, remain viable to assist these single parents especially who are looking for som ewhere for their children to go.
So ha ving said all that, I just have another
question for you. Can the Minister explain if these cuts or how these cuts will affect the services of these Community Centres? And are we denying, and espe-cially with the Minister being an avid sports woman in
her day (well, she is still pretty young, but she used to
be really into sports) —

[Laughter]
[Inaudible interjection and laughter]

Hon. Patricia J. Gordon -Pamplin: Mr. Chairman!

So I am asking, and it is just a
general question, so with the cuts in these Community
Centres are we denying the rise of the next Clarence Hill or the Sentwali Woolridge with a cut to these services in our Community Centres?
So while we are still on page 240, I want to
step quickly to page C -19, Grants and Contributions,
as it relates to Youth, Sport and Recreation. Line item 6884, National Stadium Trustees, I see there has been a further decrease in the National Stadium Trustee grant contribution from the Government. My ques-tion is, are these monies for maintenance and/or sal aries or just general upkeep? Because my comment is
that after the Government spending so much money
to refurbish this National Stadium, we must make sure that they have enough funds to keep it in the condition that it should be in. So we have to be careful of the cuts that we are making up at the National Stadium. And line item 6888, Mr. Chairman, still under
Youth, Sport and Recreation on page C -19, I was a
little, I will not say shocked or taken aback, but the Bermuda Yachting Association in the climate that we are in right now in preparing for the America’s Cup, I was kind of surprised that I see that for the second year running funding for the Bermuda Yachting Ass ociation has been defunded. I would like for the Mini ster, when she gets the opportunity, to explain that. How does that affect our budding athletes, especially those youngsters now that want to sail after seeing and getting a glimpse of this America’s Cup?
Okay, Mr. Chairman, let us go back to page
B-239, cost centre 2001, line item 30045, that cut of
$77,000, or 5 per cent. When I looked in the Perfor mance Measures, which begin on page B -242, ther e
was no explanation in the Performance Measures for line item 30045. So, obviously, I would ask the Minis-ter if she could explain that when she gets the opportunity. What does that $77,000 decrease relate to?
Cost centre 2004, line item 30060, Sports F acilities, I see a decrease of $55,000, or 6 per cent.
And, again, when I turn to Performance Measures to
see what that relates to there is no explanation there.
So can the Minister explain which facilities and how
will these cuts affect these sports facilit ies?
Mr. Chairman, I am still on cost centre 2004,
on page B -239, line item 30390.

[Inaudible interjections]

I can wait. All right.
Line item 30390, cost centre 2004, I see a
decrease of only $4,000 so that is not, it does not appear to be much, but every cut to these clubs, these
sporting facilities and fields is significant. And I make
those comments because as I turn to page B -243,
business unit 30390, I see, Mr. Chairman, I see a pr ojected increase in the usage of these facilit ies by u pwards of 350 people. So my question is, can the Mi nister explain this contradiction because you are going to decrease funding, but there is a projected increase
in usage?
So go back to page B -239, Mr. Chairman,
cost centre 2005, line item 30210, I see another decrease and on the face of it it looks like a small de-crease, but as I go back to the Performance Measures
just to follow -up with it where in business unit 30210,
on page B -243 (where am I?)
I notice at the Performance Measure to ensure the quality of service, the Performance Measure
has been discontinued. And I find this a little concer ning, so can the Minister explain why the Performance
Measures to ensure quality when it comes to our After
School Programme of the continuing of service is b eing discontinued?

Hon. Patricia J. Gordon- Pamplin: Where is this? On
[Page] B -243 you said?


Bermuda House of Assembly Mr. Michael A. Weeks: Page B -243 and it is line
item—I am sorry, [business] unit, 30210. That is
about —

Hon. Patricia J. Gordon -Pamplin: Yes, I see it.

You got it? Okay.
Okay, Mr. Chairman, cost centre 2007 on
page B -239, I notice a decrease in Camping Administration and various decreases in different campsites,
ranging from 3 per cent to 41 per cent. So I turn to
page B -243 to see the Performance Measures and I
see in business unit 30150 that there has been an
expected usage increase of, it has risen by 500 people. So again, Mr. Chairman, I think that it would be prudent for our Minister to explain the projected i ncrease of 500 people using the site, but a correspon ding decrease of funding. I may be missing something, but perhaps, the Minister can enlighten me, with more
people using it but less funding being allocated.
Still on page B -239, Mr. Chairman, cost centre
2008, which is School Age Activities, I see another
decrease for School Age Activities at a time when our parents are looking for this kind of assistance, especially with hours being cut, unemployment on the rise.
It is these little things that we could do to help our communities in need. And, again, Mr. Chairman, this
is the glue and the mortar that I have been talking about.
When I look on page B -243, still under the
School Age Activities, but the performance measure on B -243, I see there has been a drastic drop in pr ojection. And when I do my research, the numbers at
the After School Programme are actually pretty healthy, maybe even increasing. But I see a projected performance measure that says it is looking to drop
this year. Can the Minister explain that?
On page B -240, Mr. Chairman, cost centre
30125, that is the After School Programme. And
again, Mr. Chairman, I see a steady decrease over the last two years of the grant funding given to the
After School Programme. I had done some calling
around and the overwhelming answer I was getting was that a lot of these after school programmes are actually over -subscribed. So my question is, why is
there a decrease in funding? On page B -243, when I look at the After
School Programme, and again when I see the aver-age number of participants per annum, the perfor mance measure to determine the number of participants per annum is being discontinued. So how are we look-ing to cut funding to these vital after school pr ogrammes and we do not even know or we are no
longer looking to see how many people are there in
the first place? Again, hopefully, the Minister can help and explain that for me.
Before I move on to Head 23, Mr. Chairman, I
would like to make mention of a few things. I would like to refer to page B -238, the Ministry of Youth, Sport and Recreation’s mission statement, which
states in part (I am not going to read the whole thing): “[We will] advance amateur sport, recreation and youth development for all . . . .”
And I read that, Mr. Chairman, because just
over the last month when I read the sports page just
to make sure, as the Shadow, I am kind of up on it,
there are a few things I need to mention.
I wonder what our National Football coach,
currently, Mr. Andrew Bascome, meant when he said in the RG on February 22
nd that Bermuda, We are not
just good enough . . . we are just not good enough. I
do not believe he meant our skill set, Mr. Chairman. What I strongly believe, because we have a good ta lent pool, but rather our resources, Mr. Chairman, f inancial and otherwise. So how are we going to adequately start to support our athletes in such a way that they are able to compete when we expect the best out of them when they go internationally?
But less than a week after that, Mr. Chairman,
the Somerset Cricket Club coach, less than a week after the comments of the National Football coach, the Somerset Cricket Club coach said, he launched a bli stering attack on us and our sporting officials when he
took the, some might say, Mighty Somerset Trojans
down to Haiti.
This is w hat he said, Mr. Chairman, “Haiti’s
footballers had better facilities at their disposal, d espite the shocking poverty in the country.”
Where are we focusing our resources, Mr.
Chairman? Where are we focusing our resources when we can go to a Third World country, so to speak (and I do not like using that term, but a country that is not as well off as Bermuda) and the players come
back and say, Even those sporting facilities are better
than ours.
I am not finished yet in my comment, Mr.
Chairman, because a week after that I was reading
the newspaper preparing for the House and I came across an article by Mrs. Donna Raynor, the President of the Bermuda National Athletic Association. And this
was on March 12
th. She said . . . not all, but she said,
A lack of financial support impacts next month’s invit ational at National Sports Centre. So she lamented that
after a cut by Government in last year’s budget, this
association is “close to running on zero.” And I was shocked as I was reading it because this being an
Olympic year, Mr. Chairman, this association has to
consider whether or not they are going to hire a n ational coach. Well, ain’t that crazy? Again, this is the glue, this is the mortar, this is the front end of taking care of our community before the back end is utilised.
But before I move on to the next Head, I
would like to take hats off to our former Premier, Dr. Brown, who a few days later made a donation to the Bermuda National Athletic Association. So perhaps the OBA Government can take a page out of his hat
and reach out to the international companies on our shores and request that they put some monies back
1592 21 March 2016 Official Hansard Report

Bermuda House of Assembly into this community which could assist in this and
other social arenas.
And while I am talking on that, Mr. Chairman,
just doing some quick math, I think [that if] a lot of
these international companies were asked to contri bute 0.1 per cent of any profits, our country may not be
in the position that it is in today, especially when it
comes to assisting those that are in need.
And while I am at it, Mr. Chairman, our N ational Cricket coach, Clay Smith, in my humble opi nion is one of the best cricketers of his generation. He
is now the National Cricket coach. He has played here and overseas. He has been given the responsibility to
return our programme to its former glory. There was a
time we were in, I think, Division 1. We are down to
Division 5 or 6. Clay Smith has been handed the mantle of bringing our programme back up. He was given a part -time position, he is not full -time. My suggestion
is that, again, we put monies into that kind of pr ogramme. This person could get into our schools, teach some of our youngsters, help again to keep them off the street, help them to choose a better direction, and give us the real opportunity to try to get back to our former glory, not just on paper, not just on emotion,
but real, real . . . a real hard effort.
So I have to ask the Minister, how serious is
our Government about sport and what sport can do in
the development of our communities?
So moving on, Mr. Chairman, it has been said
many times, and I have said it every time I have debated this, and this is my third year debating the
Community, Culture and Sport budget, and my r esearch has not changed, and just on the last Throne Speech, [rather] the last Reply to the Throne Speech by our side, our Opposition Leader said, and I quote him, “Sport is seen by many as a more cost -effective
approach to dealing with social problems than correc ting the consequences of aggression, crime, violence, and abuse through police, correctional or social ser-vices.”
Let us now move on to Head 23, Mr. Chai rman. You can find that on page B- 244. Cost centre
2302, Child and Family Services, located on page B -
244. I see a cut on page B -245, line item 33020, Family Services.
Mr. Chairman, this always concerns me because I have said over and over, having worked in
Child and Family Services for quite some time, I know
what it takes the workers . . . and I have to take my
hat off to them in addressing a lot of the needs of our children and our broken families. And when I see expenditure cuts to these particular services, it really concerns me. And again, more so because of our cl imate, unemployment is on the increase so the need for Family Services and family services intervention really in creases, it does not decrease. So when we
make these cuts here, I find it very concerning be-cause things like Family Services, Foster Care (which is line item 33030), these are vital needs and r esources for our communities.
Mr. Chairman, with so many of our families
facing financial difficulty because of our current cl imate, the potential for stress and disruption of our families is really at an all time high. And I am saying that this is not just from research, but I’ve lived it, I’ve
worked it, and I know how it can [even] be in good
financial times, the potential for [family] disruption. So one can only imagine the need for support now be-cause of our current [economic] climate.
So I would like to ask the Minister, has she
considered how these cuts can negatively impact any
person that needs these services?
Page B -245, Mr. Chairman, cost centre 2304,
line item 33130, Grant Funding. Try as I might, I could
not find it, so can the Minister explain what this Grant Funding is for? And what, if any, these cuts in Grant Funding would have?
And it makes me wonder when I go back to
the mission statement, that if these cuts that I see un-der these various cost centres going against, going against what the mission statement says. If I may read it to you, Mr. Chairman, “To promote and protect the
best interests and social well -being of our children,
adults and families in order to enhance their social
functioning and their qual ity of life.”
So on page B- 245, cost centre 2303, line item
33060, I see a decrease in the Home Based Pr ogramme. And when I look at B- 247, I see a decrease
in employees as it relates to the Home Based Pr ogramme. Again, knowing first -hand, Mr. Chairman, we
need workers in the Home Based Programme. This is the source of security for a lot of children who have come into the system and returned to the various homes. Again, I know this from a first -hand exper ience. You cannot minimise it, you cannot negate it, you cannot nod your head in agreement, (all right?) thinking other things are more important and not rec-ognise that if we do not take care of our situation on the front end a lot of the things that we are doing on
the back end, all we are going to be doing is spinning
our wheels.
So can the Minister explain how these cuts
would not impact this essential service?
Let us move now, Mr. Chairman, to Head 52
located on page B -251.
Oh, before I go there, Mr. Chairman, let me go
back. I have one more question on page B -246 in
Child and Family Services. I was listening to the Mi nister’s brief and she talked about the revenue increase
is now a flat rate of $400 per child. Who pays this flat rate? Is this a part of the Child Day Care allowance
that Government provides? And if it is not, how would
this affect our single parents? I heard the Minister talk about a sliding scale, how is the sliding scale different from the flat rate of $400?
And I see I made a note to myself to go to
[page] C -19, Grants and Contributions. I see that


Bermuda House of Assembly Women’s Resource Centre and the Physical Abuse
Centre both have been defunded by Government.
These are charities that help . . . these are charities,
Mr. Chairman, that, again, in the climate that we are
living, these services become more important be-cause stress and family breakups and all those kinds of things that come with a recession or with a loss of
job, a Women’s Resource Centre needs to be funded,
and a Physical Abuse Centre also needs to be funded and supported. So what does this defunding, Mr. Chairman, I ask the Minister, what does this defunding do to these two vital agenc ies?
Let us move now, Mr. Chairman, to Head 52.
Ah! Before I go there, Mr. Chairman, I spoke
on Head 20, Head 23, and I spoke on Head 71 —
Headquarters without thanking all those workers in those different departments for the jobs that they do in our community. So let me apologise to them because I know what their jobs are and I know the stresses that
come with it in trying to bring a smile to peoples’
faces, trying to help in some little way. So before I move on to Head 52, I would like to thank them for the job they do. And as I am sitting here looking at the guy that runs it all, the Permanent Secretary, I hope he
accepts my apology for not acknowledging him earlier.
So hats off to Mr. Wayne Carey and all his staff for the jobs that they do throughout the different departments.
So, Mr. Chairman, now moving on to Head
52, Community and Cultural Affairs, located on page B-251, cost centre 5202, Cultural Affairs, cost centre
5203, Community Services, and cost centre 5304, Community Education.
These programmes, Mr. Chairman, these
programmes here are the ones that provide the cul-tural assistance to us in our community. I note an overall decrease of $140,000, or 5 per cent. In cost
centre 5202, line item 62020, on page B -251, under
Heritage Celebrations, it just reminded me again, I have been trying to lobby for quite some time for a change in the date of our Bermuda Day Holiday. Every chance I get when I get to my feet I am going to
keep pushing for it until we get to that glorious day of
really having some respect for Bermuda Day.

[Mr. Walton Brown, Chairman]

Well, having said that, Mr.
Chairman, I am going to take the opportunity to again
trumpet the cause that we need to really bring some really historical perspective and cultural pride to this thing that we call Bermuda Day and put something
into it. And guess what, Mr. Chairman? We could
even link that to Tourism. Yes, I know you heard me say it bef ore, but I am going to say it again. We can
link it to Tourism because we have to compete, and with a country like Cuba opening up now, we could talk tourism, but if we do not start putting things in
place that are going to bring tourists to our land, thos e
hotels will be nothing but buildings, empty buildings.
You know, I could not let that slide, Mr. Chairman.
So cost centre 5203, Community Service, line
item 62130, our Senior Projects, I notice a decrease of $38,000, or 32 per cent. Last year the Government
cut this particular line item by $33,000. This year it is $38,000. When it comes to our seniors, what impact does this have? My question is, what impact do these cuts have on our senior citizens’ projects?

[Inaudible interjection]
Hon. Patricia J. Gordon -Pamplin: He is asking the
same questions . . . déjà vu.

I hear Members on the other
side saying it is déjà vu. It is déjà vu twice over because two years ago it was that way . And I made
mention when I was first starting and I was waiting for
the Minister of Education to join us. I am glad that you are here with us.

Hon. R. Wayne Scott: Glad to be here.

Mr. Chairman, cost centre
5204, Community Education, line item 62150, Community Education Course. I see, Mr. Chairman, that, again, I see where the Minister has seen fit to cut the
Community Education budget. I would like to ask her,
who is impacted by this? When I look at Performance Measures on page B- 256, business unit 62150,
Community Education Course, the target outcome for 2016/17 is 2,700 people, 400 less than last year. I
have to ask, is it because these courses are too expensive for our people that are trying to retool? Or, for some reason, a lot of people that need these courses cannot [travel] to where they need to be to take these courses. I am a little shocked that it is a decrease in our target outcome of 400 people.
Mr. Chairman, I would like to ask the Minister,
has she ever considered that perhaps our Community Education centres, especially the one in St. David’s, may not be easily accessible to people that need to get to these centres to sign up for some of these courses?
And also has the, Mr. Chairman, can the Minister have a brainstorm or have some people look into
how we can increase enrolment to make these courses more accessible to Mr. and Mrs. Jane Doe Bermuda who need to upgrade skills to eventually help them get better employment, or even just e m1594 21 March 2016 Official Hansard Report

Bermuda House of Assembly ployment? For some of them cannot afford it. How do
we go about assisting them?
Moving on, Mr. Chairman, to page B- 257, F inancial Assistance.
Mr. Chairman, every day we, and when I say
“we” I know [there are] others, but I am certain that the
Minister responsible for Financial Assistance and I, as
the Shadow, get calls, e- mails and all kinds of requests asking for assistance in helping them to nav igate Financial Assistance. Every day, literally every
day, I get a call, an e- mail or somebody on the other
line asking me how I can help them. Just today, Mr. Chairman . . . We have our seniors, Mr. Chairman,
some of them call several times a day because once
they pay their health insurance or land tax out of their pension there is virtually nothing left. And a lot of them . . . and this is not just —

Hon. Patricia J. Gordon -Pamplin: Seniors do not
have to pay land tax on their primary residence.

—but my argument simply is
. . . my argument simply is that a lot of them, my argument simply is that seniors are finding it harder and harder to put food on the table. I get calls, and I am
sure the Minister does too, from seniors who are on Financial Assistance who are just not making it, who are just not making it, Mr. Chairman. And these are the same people whose backs that we stand on now. But it is not just our seniors, our middle class is shrinking lower and lower into needing our financial assi stance just to be able to feed their families and make
their ends meet.
So, Mr. Chairman, as I turn to page B- 258,
cost centre 5501, line item 65050, I see that there is
an increase this year of $4.836 million in our Financial
Assistance for Fiscal Year 2016/17. Certainly, a lot of
times I hear talk by the OBA Government and others that our recession is over, but constantly Financial Assistance is going up. So this increase in Financial Assistance indicates otherwise to me.
Hon. Patricia J. Gordon -Pamplin: More seniors.

A caring Government indeed
that keeps on increasing Financial Assistance when
the recession is over.
What are the projected numbers, Mr. Chairman, as I ask the Minister, for Fiscal Year 2016/17 of
people applying for Financial Assistance?
I recall, Mr. Chairman, in the Financial Assistance Amendment Act 2015 those applying for finan-cial assistance, well, the able- bodied, were encouraged to use the Workforce Development Office to help
enhance their skills. Can the Minister tell us, Mr. Chairman, what does the data say to support the ef-fectiveness of Workforce Development? An interesting
question is, How long does it take the average person
who walks in the door of Workforce Development to become employed? What is the timeframe for your process? Walking in the door, going through the inter-view process, filling out the applications, how long
does it take to walk in the door and actually be able to
get a job and put food on the table?
I do not know if the Minister had touched on
the Community Driven Development Programme for women in her brief, if she did I think I may have missed it. Is that the programme that is now referred
to as Dare2Be, Minister? What is the status of
Dare2Be? How many women to date have graduated
from this programme and were able to find gainful employment? And as a result, how many of those women are no longer in need of financial assistance?
In a nutshell too, Mr. Chairman, I would like
the Minister to briefly explain how this programme is
progressing.
And lastly, Mr. Chairman, I recall during last
year’s debate too, the Minister said . . . well, I do not
want to say she said, but I heard some interpolation
on that side when I asked about a Community Devel-opment Programme for men, that they were in the process of doing it.

Hon. Patricia J. Gordon- Pamplin: They were looking
into it.

Yes, they were looking into it.
So I do not want to say that the Minister said that they
were looking into it, but my question is, how is that going? Has that Community Driven Development Pr ogramme for men been implemented and [is it] up and
running? And if that is the case, how many men have
been serviced and/or graduated to date? And can we determine that these people that graduated from this programme are no longer in need of financial assi stance?


Bermuda House of Assembly So, Mr. Chairman, I move on to page B -259,
employee num bers.

Hon. Patricia J. Gordon -Pamplin: Do you want a nswers or are you going to run it out?

Yes, sir.
Mr. Chairman, I noticed real quickly that I
know time is going to run out on us.
I noticed that Salvation Army has a decrease
of $50,000. I find that disturbing because I tell you
what, I have had an experience. I am talking to some
clients of mine and one, in particular, wanted $10. So I said, What do you want $10 for? He said, I’m on my
way down to Salvation Army and now we have to pay
$10 a night.
And I said, Whoa! because this home and
shelter [provides] services for the most part to the unemployed and the homeless. And if people that need
shelter have got to pay $10 a night, where does that
come from, Mr. Chairman?
That is a question that needs asking because,
again, if we do not take care of our front end, we are going to have to pay on the back end because I know
where some of those guys are getting their money —
purse snatching and breaking and entering. We sit
sometimes in our glass houses and think that all is rosy, but it is really not that rosy out there on that street.
So as I close, Mr. Chairman, another comment on Financial Assistance. One of the stipulations of getting assistance is that I think you have to get 10 signatures a month to prove that you are looking for a job. And I have heard that word again “comprehen-sive.” But this time the comprehensive Financial —

Yes, yes, Mr. Chairman.
But this particular one is used in the term of
comprehensive Financial Assistance reform.
One of the issues I have with the current F inancial Assistance programme is that in trying to get
10 signatures, it is getting harder and harder because a lot of employers now are making people apply for their jobs online. So as a result, you do not have to go around looking and get these signatures. And a few of
my clients even told me, too, that some employers
who do not understand the process of signing that paper, they say that they are not signing the paper since they do not have a job for you, so why do they have to sign? So as a part of this Financial Assistance reform we have to make it clear to the public, to the
employers, what role they play in helping somebody
that is looking for a job and/or applying for Financial Assistance.
Before I take my seat, I see that Financial A ssistance has more staff. Does this mean quicker pre-screening to benefits? That is one question. And the
second question, are we going to have some Financial Assistance police to go and catch those people who are taking advantage of our system? And with those brief rema rks, I will sit down
and let the Minister answer my questions.

Thank you, Honourable Member.
Is there anyone else who wishes to speak to
these Heads?
The Chair recognises the Honourable Minister
Gordon- Pamplin.

Hon. Patricia J. Gordon -Pam plin: Thank you, Mr.
Chairman.
Mr. Chairman, I hope to respond to as many
questions as possible that were asked by the Honourable Member and thank him for the contribution to the
debate.
Let me just go back to the Department of
Youth and Sport, which is where he started, and the
Sailing Programme. The Honourable Member asked why we are not, especially in light of the America’s Cup, why are we not funding the Yachting Association. And it is important to know that the Department
of Youth and Sport now provides subsidies to indi-viduals. And remember that the programme, which actually came . . . was used . . . had the use of the
Island, which was not available.
Yes. Remember, it was not available because
the previous administration gave it away. And then there was an issue with trying to get back . . . gave up
a long- term lease for no money, as I recall, and we
had a time just to get it back, to get back our posses-sion, and that had to go through the courts and the
like, so the islands were not available.
Camping Services will not be curtailed. There
will be an attempt to market the camping facilities and
therefore that is why we put in for additional usage.
The Motocross track, the Honourable Member
was indicating why there was not a significant i ncrease given that there was a projection of an i ncrease in utilisation. But it was also important to note that the Motocross track was inoperable for a signif icant period of time and as a result the usage was down, so therefore you are going to get more usage now that the track is actually back up and running. But
1596 21 March 2016 Official Hansard Report

Bermuda House of Assembly the expenditure resulted in what we had actually
budgeted for it.
Let me also say that with respect to the Sailing, I just want to go back to that, I think it is important
also to understand, as the Hono urable Member mentioned, and it gives me a great pleasure and an oppor-tunity to speak of the Endeavour Programme which is
a Legacy Programme which is being provided by the
America’s Cup which is giving tremendous sailing o pportunities to our young people. They have a full pr ogramme which is operating down at the Sea Cadet building. And in that Sea Cadet building in St. George’s where they are actually operating, they have
all of our middle school children, and now they have just opened a facility in the West End, so all of our
middle school children will have the opportunity to not
just learn the rudiments of sailing but also the STEM that goes along with it —science, English, technology,
something else, and math—I am missing —

[Inaudible interjection]
Hon. Patricia J. Gordon -Pamplin: Oh, engineering
and math. So that is all part of that Legacy Pr ogramme that has been provided for our children as a
result of the America’s Cup. So they will have tremen-dous exposure to that.
Let me just talk also about the Com munity
Centres and, of course, I am equally as concerned with respect to what happens with our Community
Centres. But it is important that you understand that
you can rest comfortably knowing that the decrease in staff is due to attrition. We are not cutting the services. We are not cutting the centres. We are not closing the centres.
We have had attrition in staff. But what they
are also doing is to look at how to redefine the pr ogramme so that there are efficiencies that have been gained. And sometimes it is not necessarily always the amount of money that you spend on a pr ogramme, but how effectively and efficiently that funding is being utilised, and that is what we are trying to
do is to realign the programme.
Also you asked about the increase in Professional Services, and that was with respect to Mirrors, and it is for Mirrors to hire a part -time volunteer enrolment manager, so that we can meet the targets of
matching youth and the phases of the programming,
and that is what caused the increase that yo u asked
about.
Let me just go to the last comment that you
were just speaking [about] with respect to the Dare2Be. Just know that Dare2Be was under the D epartment of Human Affairs, which was Head 56, which is not being debated today. But I can tell you that that Dare2Be programme was pushed into the private sec-tor. And I had the occasion last week, if not the week before, to go to their graduation and there is tremen-dous success. I think there are all but two people who graduated the programme, who actually have now
either full -time employment or have re- enrolled in
school. So it is a tremendous success and we are really quite proud of that. But it has gone under the private sector because it became a charity in its own right.
Why is there a reduction in Seniors Projects?
Well, we are not planning on having a seniors cruise this year, but we are going to utilise that money and have more seminars and more community things available to the seniors. It is just a matter of looking at how better to deploy the funding that we have.
Let us just see . . . okay, you had a question,
who is impacted by Community Education cuts? N obody. Registration for the courses is in Hamilton, which is very accessible, as well as in Warwick. You indicated that, you know, people coul d not get to re gistration and therefore they might not be able to take advantage of the programme, and that is not necessarily the case.
I just want to go to Child and Family Services
and you had a question, have we considered the i mpact of expenditure cuts? And for Head 23 you will
notice that if you look at the Budget Book, while you
highlighted one or two line items that had decreased,
and I will have to go back . . . Child and Family Services. You highlighted one or two of the lines that had shown decreases, but you have to also appreciate the fact that . . . let us say in the Residential Treatment,
which was your concern . . . let us look overall.
You spoke to the Home Based Programme
having a decrease, Youth Residential Treatment ha ving a decrease, and the other programmes having significant increases. And what I did mention in my presentation is that a realignment of all of the pr ogrammes was creating efficiencies throughout the d epartment, but we were not losing any staff in the proc-ess. We were making sure that the children were properly provided with the services that they require. So we have definitely realigned the services to better meet the needs of the client and, at the same time,
maximising the allocation of the resources.
The impact of the Grant Funding is cuts
against the DCFS mission statement? No, we are not
going against the mission statement. There has been increased collaboration with the third sector to ensure service provision, close gaps, decrease duplication,
which results in efficient and effective service delivery.
So I think that, you know, you have to look at the de-partment as a whole because while we are providing for specific line items as they are allocated in the budget, it is important to know that on an overall basis we are ensuring that we have adequate coverage for
the services that are required by our young people.
On Financial Assistance you spoke about cl ients having to apply for jobs online. Clients on Fina ncial Assistance can use computer facilities at Wor kforce Development and apply for jobs online and that
is what accounts to the applications that they have


Bermuda House of Assembly made. But remember in my presentation I also ind icated that we had for clients who were on Workforce
Development only had to do five, whereas others who were not on Workforce Development had to do 12 on a monthly basis.
Also you asked about whether the additional
staffing at the DFA, whether we were going to get a dditional staff to basically act as police. We do have investigative officers, as I did mention in my brief, that
we collected something like $88,000 last year. [This] year we collected $98,000. There was I believe, 76 was a number . . . I do not want to go back into my
brief to waste the time, but there were a significant
number of cases, we have a hotline, people called into
the hotline, information has been delved into and we have looked at ensuring that if there is any fraud that is going on, that it actually is being captured. And we have two investigative officers who are working on that.
Let me also say you had a question with r espect to the cutting of funding for National Stadium. Bear in mind that some of the programmes that we have . . . and I think we both come from the same
school in terms of our concern for athletic development and the funding thereof. But we also have to
appreciate . . . and I can tell you that I just, I literally
lament the manner in which the public purse was completely decimated under the previous administr ation. I would really, honestly, love to have money that we could put in various programmes, but you all left
the kitty empty, and as a result of that it is important for us to look at how we can utilise the funding that we do have in the most appropriate and efficient way to get the maximum coverage for the dollars that we do
have.
So I lament not having more. You know, when
you hear that facilities, places such as Haiti have good stadia, I do not think that we are going to find a better stadium complex than we have in our National St adium. That, I have to agree with. But certainly with cutting back of some of the allocations to the trustees
for the running of the National Stadium, they are also
doing additional fundraising in their own right and so that is helping to offset. So there is a community effort that is going on in that regard as well.
I want to try and make sure and answer most
of the questions that you have. As far as the male
programme [Community Driven Development Pr ogramme for men], if that is going to be taken up, it is
certainly something that I would like to see. And you will know that the Bermuda Economic Development Corporation ran a course last year called “Who Owns the Ice House?” which effectively creates information
so that users of that course can learn some entrepr eneurial skills, and that is something that I would like to
see being implemented. That is going to take a little bit of time; I have just personally gotten the inform ation because I did take the course. It is something that I would like to have the people who work in the D epartment of Financial Assistance exposed to.
You did speak about the increased staffing
that is going to be put on the books, we are waiting for final Cabinet approval for that, but we have budgeted for it because we recognise that the caseload at F inancial Assistance has become almost unwieldy;
however, I can also say that with the projects that we
expect to be coming online, I think that that should minimise some of the applications to Financial Assi stance for the able- bodied unemployed. That is pr ovided, always, that Members opposite do not continue to flog every single capital project that this Gover nment is trying to bring on board to create jobs for peo-ple so they can have some money so they can afford to eat and, therefore, not rely on Financial Assistance. I have to say that because we have to balance and weigh the negativity that comes out of the criticism that is constantly out in the community.
And another question that you had was, can
we go to the private sector and take 0.1 per cent of
their earnings to go into the community. I think it is important to understand that the private sector do con-tribute significant amounts of money to the community
in respect of various types of donations, various pr ogrammes that they run at their expense. Again, as I
say, if we h ad all the money that had been wasted
and that had been double counted and used up un-necessarily and, you know, unaccounted for and the like, Lord knows there would have been plenty of
money to provide for any project or any programme
that we wanted and we would have been able to do
that. But we are not in that happy and luxurious pos ition based on what we inherited and what we are tr ying to do and how we are also trying to overcome the negativity that continues to be spewed from the other
side in terms of the efforts that we are trying to make
to get people put back to work.
I think that . . . I do not know whether there is
any other question that you might have that was bur ning and pressing that I may not have responded to,
Shadow Minister, but I will say that if there is anything
else that you are interested in knowing, I am always at your disposal. Please feel free to call me if there are any challenges or problems. I also think that it is i mportant that when we do budget debates, while it is very easy to look through the Budget Book, pick out a
line item and say this had a decrease, that had a d ecrease all of those numbers that you mentioned were
actually addressed in the brief. And in the absence of the ability to go back and re- read the brief for you,
most of the questions that you had had actually been
already answered.
You did ask about the Parish Council decrease and the Parish Council that we have and the efforts that we could utilise for the Parish Councils. The Parish Council Grants that we had pri marily was
for Lorraine Rest Home. I think it is important also to mention that when you have got rest homes that might
1598 21 March 2016 Official Hansard Report

Bermuda House of Assembly have had grant decreases, that the residents who live
in those facilities are eligible . . . when they are eligible
for financial assistance, they get their portion put to
them. So while you might see a decrease for the um-brella facility, it does not say that the residents are being hard done by or are being disadvantaged, b ecause they will get, I think it is, a maximum of up to
$5,000 that is paid for the resident themselves for the
services that are being provided. So if there is a de-crease in a grant to the actual facility, the institution itself, the residents, the clients, of that institution are not being disadvantaged.
The Community Centres, we are not closing
down any Community Centres, I think I mentioned that. And I do want to mention in the process Nadine Henry and Jamal Hart who are just tremendous as-sets to the Ministry of Youth and Sport in taking care of those.
You asked about Sandys 360, which is . . . it
is closed, yes, but that was something that was a flight of fancy, that was never going to be sustainable, and it was an unfortunate set of circumstances in which you know the money was never going to be there from the previous administration in order to be able to fund
that effectively, and I think it is actually under foreclosure, as I understand, from the banks.
After School Programmes, you indicated that
your information is that after school programmes are over-subscribed. I think that it is important to understand that notwithstanding that we have had a decrease in the number of students out there, if there is
evidence that we are having difficulty with families, please make us aware. I think lots of times when we have anecdotal situations with no specific hard cases to follow -up, then we cannot bring that information to
the Ministry if there is some sort of deficiency. But certainly we look and we try very hard to ensure that we
have protections around for all of our children.
Again, I would love to have more money on
the table to put into more club projects and community projects and the like. But it is a function of what we
were left with, the hand that we were dealt, and the
unfortunate lemons that that we were left with that we
now have to try to make lemonade. So we are cer-tainly trying.
I am always open to whatever thoughts,
ideas, suggestions that you might want to have b ecause you say that you work very closely with some of these people in some of these various areas. And cer-tainly, collaboratively, I believe that we can . . . you
know, if there are issues, they can always be dis-cussed. But we look for efficiencies, and you know the fact that you might have more people availing themselves of a particular service, but less money or not as
much money as you think might be appropriate, does not necessarily say that the programme is under-funded. It just means that we have looked for efficien-cies that we hope to find at the appropriate time. So with those few comments, I am not sure
how much more time I have, Mr. Chairman.

Thank you, Honourable Member.
Is there anyone else who wishes to speak to
these Heads?
The Chair recognises the Honourable Mini ster.
Hon. Patricia J. Gordon- Pamplin: Thank you, Mr.
Chairman.
Mr. Chairman, I now move Heads for the Mi nistry of Community, Culture and Sport. I would like to
move Heads . . . give me one second because I have
to move them all, but we have two that were not d ebated this time. I would like to move Heads 71, 18, 19, 20—

Just move the—
The Clerk: —it is included in the Appropriation Bill.
Hon. Patricia J. Gordon -Pamplin: Oh, okay.
The Clerk: Those two Heads that were left out are
included in the Ministry of Finance—

Hon. Patricia J. Gordon -Pamplin: In the Appropri ation Bill? Okay, fine.
Then I would like to move the Heads that we
did debate today, Heads 71, 20, 23, 52 and 55.

You have the floor.

MINISTRY OF ECONOMIC DEVELOPMENT
Dr. the Hon. E. Grant Gibbons: Thank you, Mr.
Chairman.
Mr. Chairman, let me start by moving some
Heads here. The Heads under debate are Head 95,
which is the Ministry of Economic Development
Headquarters; Head 39, which is the Registrar of Companies; Head 46, which is the Department of Telecommunications; and Head 89, which is Energy.
So four Heads; I would like to move Heads
95, 39, 46, and 89.

It has been so moved.
Please proceed.

HEAD 95 —HEADQUARTERS

Dr. the Hon. E. Grant Gibbons: It certainly gives me
great pleasure and perhaps pleasure for others be-cause this is the last set of heads that will be debated this afternoon in the entire budget process. I hear a “thank goodness.” But it gives me particular pleasure
to present the Heads for the Ministry of Economic D evelopment.
And the first one I am going to start with is
Head 95. I would just like to make a couple of comments (which is on page B -324 of the Budget Book)
because I think it is interesting in terms of the overall
Ministry. This is a Ministry which represents about
2 per cent of overall Government expenditure, that is
$20 millio n in round numbers, out of a total of a little
over $1.1 billion. It represents some $83.5 million in revenue, which is about 8 per cent of Government’s
revenue. So we pull our weight in that category. It represents about $16.2 [million] or 19 per cent of
Government’s overall capital expenditure, and it has barely 1 per cent of employees, about 38 employees
overall. It helps I think to put it into context and I think it is probably the smallest Ministry out there, but we like to feel, Mr. Chairman, that we punch above our weight.
The Ministry Headquarters, which is Head 95
and can be found on pages B- 324 to B -327 and also
on pages C -7 and C -20 for the Capital. The Headquarters has been allocated a total budget of $13,727,000. That is up about 12 per cent or $1.474
million from previous year. The budget for the prev ious year was $12,253,000. The revised budget is go-ing to be slightly shy of that at $11,875,000. And I will get to it in a little more detail in a minute, but we have eight full -time equivalents in the Ministry Headquarters.
So, of the $13,727,000 allocated to the Mini stry Headquarters, some $5,659,000 is allocated to Economic Development and $8,068,000 is allocated to the America’s Cup (which is shown on page B -325).
It is important to note that 73 per cent of the amount
allocated to Economic Development reflects the grant
to the Bermuda Business Development Agency (BDA)
and I will break this down further, Mr. Chairman, as we work through the brief.

Mission

Dr. the Hon. E. Grant Gibbons: The mission can be
found on page B -325 and with regard to Economic
Development, the Ministry’s mission is to facilitate
economic growth and the creation of jobs. The Mini stry is working to create an environment that is cond ucive to sustaining the businesses already in Bermuda
and to making our Island attractive so that new bus inesses come and make Bermuda their home.
In carrying out its mission, the Ministry works
closely with other ministries, including the Ministry of Finance, Public Works, Tourism Development and
Transport, and the Ministry of Home Affairs. The Min-istry Headquarters also seeks to ensure that the de-partments under its purview deliver appropriate ser-vices, policies, and legislation in a responsive, timely, and thorough manner. The Ministry will oper ate eff iciently and effectively by ensuring we have skilled
people and streamlined systems and processes so
that our staff are empowered to work in a collegial and collaborative manner with colleagues and stak eholders.
Mr. Chairman, within the Ministry of Economic
Development, the Ministry Headquarters has overall
responsibility for five Government departments and
oversight for the Regulatory Authority of Bermuda, the Bermuda Business Development Agency, and the ACBDA (which is the America’s Cup host group). The Ministry Headquarters is staffed with a Permanent Secretary, Mr. William Francis; a comptroller; one po l1600 21 March 2016 Official Hansard Report

Bermuda House of Assembly icy analyst; and two additional administrative and accounting support staff. Also included in the Headquarters complement are the senior manager, policy an alyst (business development), and the legislative assis-tant of the Business Development Unit.
Mr. Chairman, the other departments that fall
under the remit of the Ministry of Economic Development are, as we have said:
• Registrar of Companies;
• Depar tment of Telecommunications;
• Department of E -Commerce; and
• Department of Energy.

I would like to give, with your indulgence, just
a very brief comment on each of them because they fall under the broader umbrella of Economic Development.
• Head 39 is the Registrar of Companies. This
department is headed by Mr. Stephen Lowe, the Re gistrar, and works very closely with the BMA with r egard to the incorporation of companies in Bermuda. The Minister of Economic Development has respons ibility for the Companies Act 1981, and the Registrar also provides advice to the Minister with regard to ap-plications for consents and permissions under that
Act.
• Head 46 is the Department of Telecommunications. This department currently has Ms. Maxanne Anderson as the Acting Director. Honourable Members will be aware that there is a working relationship
between the department and the recently established independent Regulatory Authority (RA), which has responsibility for the supervision and regulation of the Telecommunications sector. The department also
continues to work with the Broadcasting Commission
to assist the Minister in regulating and licensing the
Broadcast sector and also assists the Minister in a dministering the island’s satellite orbital slots and r elated activities.
• Head 67 (which is not being debated today) is
the Department of E -Commerce. This Department is
headed by Director, Dr. Marisa Stones (and that is a recent appointment). The mission of the Department
of E-Commerce is to support the continued growth of
Bermuda’s digital economy and to foster a culture of
digital technology and e- business excellence by facil itating the advancement of information and communications technology (ICT) policies, skills, adoption, and innovation. This is to ensure that Bermuda remains an
attractive jurisdiction in which to conduct business
electronically. The department is also focussed on ensuring that the legislative and policy frameworks, required to enable businesses in Bermuda to meet the challenges of the ever -changing digital economy, co ntinue to evolve. Therefore, a primary objective for the
department during this next fiscal year will be to complete the development of the Data Privacy and Protec-tion legislation, and lay the foundation for a cybers ecurity policy framework. • Head 89 is the Department of Energy. The
Energy Department is headed by Director, Ms. Jeane Nikolai. The Department of Energy is responsible for providing policy support to the Minister with regard to all energy -related matters and administrative and
technical support to the Energy Commission. The pr imary objective for the department for the forthcoming year is the implementation of the new Electricity legis-lation that will result in the transfer of regulatory r esponsibility from the Energy Commission and the Mi nistry to the Regulatory Authority of Bermuda.
Mr. Chairman, as I mentioned earlier, the Mi nistry of Economic Development allocates a grant to the Bermuda Business Development Agency (BDA), in support of the public/private partnership that exists between the Ministry and the agency. The Ministry
has also made provisions in the budget for Fiscal Year
2016/17 to provide a grant to the ACBDA for both their operating expenses and capital development obliga-tions with respect to the America’s Cup.
Since the Ministry also has portfolio respons ibility for International Business, the directors work
very closely with the Ministry of Finance to address
the well -being, sustainability, and growth of this important economic sector.
Mr. Chairman, the budget for the Headquarters Unit of the Ministry of Economic Development is set out under four cost centres (and you can see
those on page B -325) and they are:
• Policy and Administration;
• The Business Development Unit;
• Grants; and
• The America’s Cup 2017.

Cost Centre 9501— Administration

Dr. the Hon. E. Grant Gibbons: The estimate for the
coming year is $762,000. This is down some
$215,000, or 22 per cent from previous year.
The budget for the current year we are in,
2015/16 is $977,000. And the revised budget for 2015/16, the year we are in, is some $751,000.
There are five full -time equivalent members of
the department —sorry, of the Administration cost centre.
Mr. Chairman, the budget for the Administr ation section primarily covers salaries, general operat-ing expenses, and travel .
There is an allocation of $360,000 for professional services on page B -326. This is for legal and
professional consultants to the Headquarters and Business Development Unit (BDU). The allocation for $100,000, under Insurance, is the public liability insurance premium related to the America’s Cup events
during 2016/17.
The revised 2015/16 budget reduction to
$751,000 on page B -325 is due to budget virements
to the Department of Telecommunications to facilitate the reimbursement to World on Wireless (WoW) f or


Bermuda House of Assembly their spectrum migration, which was completed during
fiscal year 2015/16.

Cost Centre 9502—Business Development Unit

Dr. the Hon. E. Grant Gibbons: As you can see on
page B -325, the estimate for the coming financial year
is $772,000. That is down $36,000, or 4 per cent from
previous year.
The budget for the current year we are in,
2015/16 is $808,000 and the revised budget for this
year is $605,000.
Within the Business Development Unit there
are three full -time equivalent staff members.
The decrease of $36,000 is as a result of r educed travel and streamlined processes.
Mr. Chairman, the $808,000 allocated last
year went towards helping the Business Development Unit achieve its mandate. Aside from salaries, the expenses under this cost centre include consulting services, an allocation for research tools, and a small travel provision.
The revised 2015/16 budget reduction to
$605,000 (shown on page B- 325) is due to budget
virements to the Department of Telecommunications for reimbursement to World on Wirel ess (WoW) for
their spectrum migration, and to the Department of E -
Commerce to further Privacy legislation during Fiscal Year 2015/16.
Mr. Chairman, also included in the unit’s expenses was an award of $21,000 for the Regulatory Compliance Association (RCA). As I will explain later in further detail, the RCA is an educational institution headquartered in New York which has partnered with the Government to offer a compliance- based educ ational programme in Bermuda targeting Bermudians.
The RCA has also agreed to host an annual symposium in Bermuda for three years from 2015 through
2017.
Mr. Chairman, the core functions of the Bus iness Development Unit (BDU) are specifically focused
on activities related to international business. These
include legislative reform; monitoring and reporting on economic activities both in Bermuda and abroad; pr oviding concierge services to new businesses; facilita ting potential development opportunities and working in partnership with, and supporting, the Bermuda
Business Development Agency.
Mr. Chairman, to stay competitive and uphold
the Island’s reputation as an offshore business leader,
Bermuda must continue to monitor its legal framework and, when necessary, take steps to amend or adopt new legislation. Working with internal and external
stakeholders, the BDU advances new policies and legislative initiatives to help improve Bermuda’s com-petitiveness as jurisdiction of choice for international business. Initiatives progressed by the BDU are specifically intended to satisfy market demands by provi ding products and service offerings which form part of a flexible legislative framework designed to meet the
needs of even the most sophisticated businesses and
structures.
Mr. Chairman, in 2015, the BDU’s work on
legislative initiatives resulted in the enactment of three
private Acts and six public Acts. Several important amendments to Bermuda laws were adopted as a r esult of the BDU’s successful collaboration with various Government ministries and departments, the Bermuda Monetary Authority, and BDA industry groups, inclu ding the Legal Focus Group, Trust Focus Group, and the Asset Management Focus Group. More specif ically:
• Various amendments to the Partnership Act
1902, Exempted Partnerships Act 1992, Limited Par tnership Act 1883, and the Companies Act 1981 were
enacted to achieve greater flexibility, clarity, and co nsistency in the laws governing partnerships. In many
cases, the amendments set forth new rights and op-tions for owners of partnership interests that had pr eviously only been afforded to shareholders of compa-nies.
• Likewise, an amendment to the Perpetuities
and Accumulations Act 2009 provided much needed clarity in relation to the administration of specified trust instruments.
o This amendment established a framework whereby certain restrictions that applied to trust instruments which predated the princ ipal 2009 Act could be relaxed. As well, i nstruments wherein the governing law was
changed to Bermuda from a foreign jurisdi ction also fall within the ambit of this newly
created framework.
o Bermuda now also has a streamlined and cost-effective approach under which the
principal 2009 Act can be more consistently
applied to benefit all trust instruments governed by Bermuda law, regardless of effec-tive date or jurisdiction of origin.
• In 2016, as Honourable Members will recall, a
week ago, this House passed a Bill which will result in a new Act governing contracts pursuant to which par-ties to a contract may provide benefits and rights of enforcement of the contract to a third party.
o That legislation will remove the need for
contracting parties to find alternative sol utions to permit third parties to enforce contractual terms which are applicable to them.
o Also, this new Act will bring Bermuda in line with a number of other jurisdictions that have already adopted similar rules. It is anticipated that this legislation will be partic ularly useful in relation to certain asset management agreements and reinsurance con-tracts.

1602 21 March 2016 Official Hansard Report

Bermuda House of Assembly Mr. Chairman, other legislative initiatives of
the BDU for the remainder of this fiscal year and the
upcoming year include the following:
• A new Bermuda Limited Liability Company Act will be introduced to establish the framework
for a new corporate structure, commonly r eferred to as an LLC.
o Extensive consultations and discuss ions
with the private sector, the Bermuda Mon etary Authority, the Ministry of Finance, the
National Anti -Money Laundering Commi ttee, and the Attorney General’s Chambers have already taken place and the proposed Act is currently being drafted.
o This new corporate product will help pos ition the Island to capture a larger share of
the offshore private equity market.
o Given the popularity of this structure in the
United States and the demonstrated prefer-ence for the features of an LLC in the funds industry, this is yet another opportunity to
show Bermuda’s responsiveness to market
demand. I should add, Mr. Chairman, that
LLCs may also be a very useful provision for local businesses as well. They are si mpler and more streamlined than setting up a company, so we think there will be applic ation on- Island as well as for international
businesses and private equity groups.
• Additional changes will be made to the laws
governing partnerships, which will allow even more
flexibility in the management and administration of
partnerships. This includes amendments to clarify the
legal impact of certain actions and activities of par tners, as well as establishing remedies for non-performance, to name a few.
• The BDU will undertake several additional legislative initiatives which are expected to be proposed by the private sector in the upcoming year. This i ncludes further changes governing the administration of trusts and additional revisions to the Companies Act
1981 to modernise and enhance the laws governing
companies.

Mr. Chairman, the BDU works in close par tnership with the Bermuda Business Development
Agency (BDA), supporting both the management and
operations of the BDA. The Senior Manager of the BDU, Lydia Dickens, is a member of the BDA Board of Directors and serves as the Government liaison to the BDA. The BDU also works in partnership with the BDA to offer a concierge service for new companies
seeking to do business in Bermuda. The BDU serves
as a point of contact to assist and direct companies with Government -related issues; meanwhile, the BDA
helps to connect new businesses with private industry service providers in Bermuda.
Mr. Chairman, I will expand a bit more on the
BDA’s role in the concierge service a little later. The BDU, however, provides assistance with a wide rang e
of matters such as facilitating meetings with Gover nment officials; advising on applicable policies and in itiatives aimed at attracting and sustaining new inter-national businesses; providing guidance on immigr ation strategies; ensuring expedited processing of regu-latory applications; and arranging expedited proces sing for arrivals of certain business visitors.
In addition to its core functions, the BDU a dvances various economic development projects and other Government initiatives as required. This in-cludes external outreach, investigating the feasibility
of various projects for development in Bermuda, and
interfacing with private entities to advance potential
programmes in Bermuda. One such initiative is the Regulatory Compliance Association [RCA] Bermuda Compliance Certification Programme, which I men-tioned earlier.
The RCA (Regulatory Compliance Association) is an educational organisation based in New York. The RCA has approximately 78,000 members in the U.S. and abroad, and offers courses focused on regulation and compliance requirements applicable to the financial services industry. However, professionals
in other sectors such as insurance, legal, and government also enrol in and benefit from RCA courses.
Following the announcement of a partnership
between the Government of Bermuda, the Bermuda
College, and the RCA just over a year ago, the Bus iness Development Unit has worked continuously with
members of the private sector, the Bermuda Monetary
Authority, the Bermuda College, and community lea ders to implement this new programme. In line with the
Government’s overall goal to increase Bermuda’s competitiveness, this new professional development initiative is intended to enhance the intellectual capital
in Bermuda. To help ensure the programme was designed to meet the needs of the global market, a
number of senior executives in the Bermuda business community have participated in the development of the final programme.
Mr. Chairman, the RCA Bermuda Compliance
Certification Programme offers a great opportunity for Bermudians to broaden their skill sets and follow new career paths both in Bermuda and in the international market. As part of the overall partnership, the RCA will sponsor a total of 150 scholarships in Bermuda for
qualified applicants to complete the programme. The
potential for success of this initiative is very high as this is the first programme of its kind offered in any offshore jurisdiction.
An information meeting on the programme
held at Bermuda College in February was attended by
more than 130 individuals. In this regard, I would like
to acknowledge the commitment and continuing con-tribution of the Chairman of the Bermuda RCA Cur-riculum Committee, Mr. George Thomas, as well as his fellow Committee members, including Dr. Duranda Greene, President of the Bermuda College.


Bermuda House of Assembly The BDU will continue to facilitate communications with and involvement by the business community with respect to this very important initiative. The programme will officially begin on April 11, 2016.
As of the first submission deadline of February 29
th,
more than 50 applications for scholarships have been received. With a second intake of applicants scheduled for this coming June, there appears to be substantial interest in this programme. If Honourable Members or their constituents are interested in lear ning more about the programme, additional information and applications are available on the website for the Ministry of Economic Development as well as the
Bermuda College website.
Mr. Chairman, despite the BDU’s small staff of
three, there are extremely positive impacts on our
economic growth. Current and upcoming initiatives will be designed to meet the needs of businesses in the global market and to increase our ability to compete
with other jurisdictions for business. In addition to the
previously mentioned projects, the BDU will undertake several other legislative initiatives which are expected to be advanced in collaboration with the private sector in the upcoming year.

Cost Centre 9503—Grants

Dr. the Hon. E. Grant Gibbons: Mr. Chairman, I
would like to move now, still on page B -325, to the line
item there which is entitled Grants. That is cost centre
9503.
As you can see, Mr. Chairman, the estimate
for the 2016/17 Fiscal Year is $4,125,000 which is
actually reduced from the previous fiscal year by $125,000, or some 3 per cent. As seen there, the
budget for 2015/16 was $4,250,000.
Last year the BDA was allocated a budget of
$4.25 million, as I said. Under the leadership of their CEO, Mr. Ross Webber, the agency has had a v ery
productive year. Throughout 2015, the agency has continued its outreach with international business
stakeholders and industry associations, and has consolidated its position as a very competent, well man-aged, and disciplined agency delivering value to Bermuda. The BDA has built upon its well- structured
base and has been implementing proactive business development strategies that are beginning to show net
benefits for our economy.
Mr. Chairman, for 2016/17, a grant of
$4,125,000 is budgeted for the BDA. As a pu blic/private partnership, the BDA also generates funding contributions from the private sector business community. The agency raised $380,000 for Fiscal
Year 2014/15 and is on target to raise over $450,000
for the current fiscal year ending March 31, 2016. It is
estimated that the agency will garner in excess of a half million dollars for the upcoming year 2016/17.
The BDA creates and implements marketing
and business development strategies that are helping to stimulate growth and job creation in the Bermuda
economy.
The agency has been driving business deve lopment missions abroad to provide a platform for a collaborative “Team Bermuda” approach whereby i ndustry professionals, the regulator, and government representatives present a united front to referrers of
business to the Island.
It is important to note the BDA is not just
about attracting new business to the Island. The BDA
also helps existing companies generate more bus iness.
Keeping our current established companies
competitive and profitable is important to attract ot hers. Similarly, the work of the BDA makes it easier for existing companies to both maintain existing jobs and create new ones.
Mr. Chairman, the BDA is governed by an independent board of directors. The Ministry is repr esented on that board by the Senior Manager of the Business Development Unit, Ms. Lydia Dickens. The other board members are as follows:
• Ms. Caroline Foulger, Chair of the BDA;
• Ms. Kiernan Bell, Partner, Appleby Bermuda;
• Ms. Fiona Beck is a new Independent Director
(and I would like to welcome her, she just
came on board at the BDA);
• Mr. Lawrence Bird, Managing Director of Marsh Bermuda;
• Mr. Wayne Caines, CEO of SENIAC Consul ting;
• Mr. David Cash, Deputy Chair of the BDA;
• Mr. Rees Fletcher, Chairman, ACE Bermuda;
• Mr. Jessel Mendes (another new addition to
the Board), Partner, EY [Ernst & Young] and
has done a lot with respect to asset management and fund management in Bermuda;
• Mr. Allan Pelvang, Country Head of Fidelity Bermuda;
• Mr. Paul Scope, Chairman, Willis Bermuda;
• Mr. Derek Stapley, Independent Director; and
• Mr. Ross Webber, Chief Executive Officer of the BDA.

Mr. Chairman, the Bermuda Development
Agency has segmented its business development f ocus into four key sectors. These sectors are: Asset Management; Risk Solutions; Trust and Private Client; and International Commerce, which are each led by
dedicated business development managers in the
BDA who, along with industry focus group represent atives, create and shape business development plans.
A funding grant of $4.25 million was allocated to the BDA for the 2015/16 Fiscal Year and went towards the implementation of these business development
initiatives.
1604 21 March 2016 Official Hansard Report

Bermuda House of Assembly Mr. Chairman, regarding the specific activities
and achievements of the BDA over the last year, I
would like to highlight the following:
In the Asset Management sector, the BDA
has continued to build long -term relationships with key
decision -makers in New York to increase fund incorporations in Bermuda and attract asset managers to
establish a physical presence in Bermuda. New York
remains the epicentre of the hedge fund world and the vast majority of fund and private equity business emanate from there. It is imperative that New York remains the prime focus of the BDA.
According to the most recent data supplied by
the BMA, Bermuda had 83 funds registered in 2015,
compared to 80 registered in 2014. I will note that we had hoped for more new fund launches; however, as clarified by the Ernst Young Global Hedge Fund Sur-vey, there has been a downturn in the number of new fund launches globally. However, included among the
2015 fund registrations were 32 Class A and Class B
Exempt Funds. This is up from 25 registered the pr evious year. This is a new class of funds that was put in place in 2013.
It is worth noting that these two new classes
of funds were brought about by the combined work of the Government, the BDA Asset Management Group, the BDA Legal Focus Group, and the BMA that lever-aged the feedback gleaned from the US Funds La wyer Think Tank, hosted by the BDA in May 2013. The BDA has been heavily promoting this initiative, particularly in the United States, and it is encouraging to
see it produce results.
Mr. Chairman, in the Alternative Investment
Funds sector, Bermuda is making progress towards
securing a similar type of equivalency as was recently achieved in the insurance sector with Solvency II. The
European Securities Market Authority (known as ESMA) has set out rules dictating how non- European
Union fund managers can market their Alternative I nvestment Funds in EU member states on a cross -
border basis. These rules are being collectively r eferred to as the Alternative Investment Fund Mana gers Directive, or AIFMD. Bermuda is seeking to have the EU extend the same rights to approved Bermuda entities that are currently available only to EU -based
alternative investment fund managers.
Mr. Chairman, we have made significant pr ogress towards putting in place the necessary legisl ative framework to meet the AIFMD criteria. Amend-ments to Bermuda’s Investment Business Act to pr ovide for an AIFMD -compliant, opt -in regime were
passed by our legislature in August 2015. The amendments establish a regime in which the BMA
would oversee locally based managers who wish to
market their alternative investment funds via the passport in Europe.
This favourable positioning has been
achieved through the collaborative efforts of the BDA, the BMA, this Government, and the Island’s asset
management industry.
In August of last year, ESMA announced that
Bermuda was among the select jurisdictions it will
consider when it holds its next review, promised in the
fourth quarter of 2016.
Mr. Chairman, throughout 2015 the work of
the BDA has resulted in asset managers relocating to Bermuda to set up their operations —examples include
EFG Wealth Management and Invictus RG. Each of these entities now has physical operations in Ber-muda and each is looking to expand in Bermuda. I am reliably informed that there are other asset managers,
and service providers in the pipeline.
Mr. Chairman, attracting new companies to
Bermuda is not the only way the BDA is contributing
to our economic growth and job creation. The BDA has brought several asset management conferences to the Island. The BDA, along with BDU helped the
Regulatory Compliance Association bring its gathering
to the Fairmont Southampton last April, and we will see the second annual RCA Symposium this April. The BDA introduced the Global Fund Forum to Ber-muda last year and this group will be back in June of
this year. In 2016, the BDA has attracted yet another
asset management conference to our shores known
as the World Alternative Investment Summit, which will come to Bermuda in September.
Mr. Chairman, the second area for the BDA is
the Risk Solutions focus and it encompasses all facets
of Bermuda’s risk transfer industry, including insurance, reinsurance, captives, ILS (Insurance- Linked
Securities), underwriters, the broking community, legal advisors, and auditors. Bermuda’s well -known insurance success story continues to evolve with the growth of the long- term life insurance sector adding to
the depth and variety of our market offerings.
The BDA has concentrated their recent efforts
on captives and other companies involved with insur-ance- linked securities (ILS). In 2015, they introduced
insurance related webi nars and broadcast interactive
sessions to over 450 registrants that included aud iences from Latin America to western Canada. The webinars provide a cost -efficient mechanism for getting the Bermuda message to a global audience and they have already produced several leads.
The BDA has also provided its support and
resources to the Bermuda Captive Conference, which held another very successful event in June 2015. There were over 700 delegates in attendance with more than 300 of these from abroad.
The BDA continued to work closely with ILS
Bermuda stakeholders to keep the Island at the for efront of this pioneering asset class. The BDA was again a principal sponsor of the 2015 ILS Bermuda Convergence conference, which attracted 303 del egates of which 174 were from overseas.
The collaborative effort seems to be working
because the growth in this sector since 2013 in BerBermuda House of Assembly muda has been exceptional. At the close of 2015, that
growth had amounted to approximately 69 per cent (or
some $18.1 billion) of the total $26.3 billion in outstanding ILS being issued from Bermuda. Of the $7.9 billion of ILS capacity issued in 2015, more than 70 per cent was issued from Bermuda, followed by the Cayman Islands and Ireland with issuances of 14 per
cent and 7.6 per cent, respectively.
As of March 10
th there were 150 insurancelinked securities listed on the Bermuda Stock Ex-change with a value of $19.2 billion.
While competitor jurisdictions —some of which
are huge global financial centres such as the UK —
seek to attract this Bermuda- domi nated business, the
objective of the BDA, in collaboration with industry stakeholders, is to ensure that we maintain our lead-ership position and, in fact, widen the gap between Bermuda and our competitors.
Last April, along with the Premier, Ministers of
Finance and Economic Development, the BDA led a
successful “Team Bermuda” delegation to the Risk and Insurance Management Society Conference (RIMS) in New Orleans, and plans are well underway to give Bermuda a similarly strong presence at RIMS
San Diego in April 2016. That is next month.
The BDA specifically targeted Latin America
and Canada for captive insurance business in 2015.
The Ministry participated in a delegation to Calgary and Toronto that educated audiences, composed pr imarily of CFOs, on the advantages of Bermuda as a
captive insurance domicile. This was of particular i nterest to those in the oil and gas industry who have
been seeking opportunities to control their own risk exposure and minimise costs as a result of the decline in oil prices.
The BDA also led several targeted business
development missions to Latin America with meetings being held in Colombia, Chile, Mexico, and Brazil. In fact, Mr. Chairman, the BDA’s representation at the ALARYS Congress in Rio de Janeiro, Brazil, resulted in the ALARYS organisers’ decision to host their next
conference here in Bermuda in September 2016.
Mr. Chairman, one might ask, what does all
this activity actually mean for Bermuda? Well, this activity is designed to ensure that we keep as much of our existing business here, and we do as much as we can through a proactive, targeted approach, to attract
quality new business. The Bermuda Monetary Authority announced that it had registered 64 new insurance and reinsurance companies in 2015. This is actually one fewer than 2014. However, 22 were limited pur-pose insurers, or captives. These 22 represent an i ncrease of six over the 16 registered the previous year.
This is precisely where the BDA’s area of focus has
been. Of these new captives, at least four stem from the 2015 targeted markets of Canada and Latin America. Mr. Chairman, I am informed there are several other captives in the pipeline that we may expect to see in the early year BMA statistics. To put this into context, each new captive
formation provides fees to the BMA and the Registrar of Companies, as well as additional work for the br oker, auditor, law firm, and auditor. All of these are Bermuda- based service providers. This work is pr eserving jobs and facilitating job creation.
Mr. Chairman, during 2015, the BDA worked
with the trust and private client sector to develop a unified marketing message and approach. Through the work of the BDA Trust Law Reform Committee, some important pieces of legislation were advanced —
most notably amendments related to the Perpetuities Act that were passed by Parliament in December
2015.
These legislative changes have increased
trust business, reinforcing Bermuda’s reputation as a
responsive, competitive jurisdiction, and have pr ovided the impetus for the trust group to present a pos itive and contemporary marketing message on the
road.
The progress that the trust sector has made is
evident from recently collected data. The BDA surveyed the Island’s 30 trust company licence holders to see how the trust company sector is contributing to
our economy. In 2013, feedback from the sector indicated a minimum of 159 employees working for Ber-muda’s licensed trust companies. In 2015, that figure had risen to a minimum of 269 employees. I should emphasise that these jobs are attributable to the trust companies themselves and do not include jobs ass ociated with the banking, legal, and other service pr oviders that work with the trust industry.
As with Asset Management and Risk Sol utions, the BDA’s work in the trust sector has attracted new conferences to Bermuda. The Transcontinental
Trusts Conference will return for its second event in
May, and Legal Week held its prestigious Private Cl ient Forum Americas conference at Rosewood
Tucker’s Point in February.
Mr. Chairman, another area of the BDA’s f ocus is broadly defined as international commerce. The
BDA is looking at various potential opportunities to
increase diversification. The agency has performed significant research through the year and has both explored and ruled out many proposals that are unlikely to be a good fit for Bermuda.
Currently, the agency is working on some
promising technology and biotech- related initiatives
that have the potential for physical presence compa-nies and jobs.
Mr. Chairman, I mentioned earlier the bus iness development delegation to Canada. The Toronto leg of that trip also included a business case on Bermuda as a jurisdiction for Canadian companies to l ocate a portion of their e- Commerce business —
provided there are sufficient physical presence, mind,
and management, in Bermuda. The BDA is continuing to work with local service providers to refine and mar-ket the proposition.
1606 21 March 2016 Official Hansard Report

Bermuda House of Assembly In the technology and life science space, we
have seen several companies take advantage of the
BDA Concierge Service. The agency will be leverag-ing these as case study examples to attract even more.
The BDA’s International Commerce focus is
not just looking at blue- sky, out -of-the-box solutions,
but is also directed at analysing and growing existing industries that are well -suited to Bermuda. In this r egard, the BDA is working with stakeholders in our shipping and aviation sectors and is developing strategies to grow these two sectors.
Mr. Chairman, you will be aware that we are
moving both those sectors towards more of a quango-based operation so they will be able to be more i nvolved in marketing and promotion.
Mr. Chairman, as Honourable Members may
be aware, the BDA, in collaboration with the Business Development Unit (BDU), is operating a Concierge
Service.
The BDA helps companies through the process of establishing in Bermuda and provides them
with a starting point and a consistent point of contact. The BDA provides prospects with information, intr oductions and meetings with law firms, accounting firms, real estate providers, banks, administrators, and trustees. The team at the BDU then provide a similar service for the processes within government. As di scussed earlier, the BDU provides a single point of contact for liaison with Immigration; Registrar of Companies; Office of Tax Commissioner ; Attorney General’s Chambers, and other Government departments. This relationship with government is all part of the Concierge Service.
Mr. Chairman, the BDA uses a Client Rel ationship Management software system to track prospects, opportunities, and leads along its new business
pipeline, as well as to track assistance provided to existing companies. As at December 31, 2015, the
BDA had over 125 current opportunities and leads in its system.
Via the Concierge Service, the BDA has assisted in the establishment of 30 companies. On top of this, the BDA has logged over 40 requests for conc ierge advice and help.
Mr. Chairman, I would like to take this opportunity to suggest that if Honourable Members are approached by credible companies or individuals who
are interested in developing business in Bermuda, please have them contact the BDA or visit its website at
www.bda.bm .
Mr. Chairman, I have talked about some of
the tangible industry results and achievements of the
BDA, but it would not be a full story if I did not touch
upon some of the softer success factors. There has
been a significant increase in the volume and quality of communications emanating from the BDA over the past 12 months. The BDA launched a full slate of s ocial media channels to reach new audiences and sub-stantially raise Bermuda’s global profile. Complementing its comprehensive website are eight social media
platforms, including: Facebook, LinkedIn, Twitter, I nstagram, Vimeo, Tumblr, and YouTube.
Mr. Chairman, many in this Honourable
House, and the listening public, will have seen the BDA’s local awareness campaign produced in tandem
with the Association of Bermuda International Companies (ABIC). The campaign, branded “#everybody’s business,” is an integrated public awareness ca mpaign, incorporating commissioned animations and infographics, a series of dynamic video shorts, digital and print advertising, social media distribution, photo
portraits released via Instagram, plus radio talk shows
featuring a wide variety of international business -
related guests. The campaign’s goal has been to demonstrate the value of international business in Bermuda and illustrate how the sector drives growth and creates jobs throughout the whole local economy.
The 2015 campaign reached a wide dem ographic, particularly younger audience, to spread the message that “international business is everybody’s business.”
The 2015 campaign included a series of
things, and I will just mention a few of them:
• A two -minute animated graphic and i nfographic created by Sami Lill, of Uber Super Duper, showcasing International Business’
(IB’s) impressive statistics;
• A series of 30- second video clips created by
filmmakers Andrew Kirkpatrick and Nhuri Bashir, of Burnt House Productions, telling
snapshot stories of Bermudians in different jobs, mostly outside the corporate sector, who benefit from IB;
• A series of eight adverts in the Royal G azette’s printed edition over several weeks featuring the same Bermudians;
• Digital adverts promoting the individual videos
on a variety of popular local websites (bernews , Bermemes , Today in Bermuda, We
Are Bermuda, and the Royal Gazette);
• An Instagram campaign shot by award-winning portrait photographer Meredith Andrews, featuring Bermudians from the ca mpaign’s videos, along with others whose work is bolstered or supported by IB (posted on
BDA’s Instagram investbermuda site); and
• A series of radio talk shows on the Sherri
Simmons Show (Magic 102.7 FM) and ZBM’s Miss Thang (Power 95 FM), featuring BDA
employees and our stakeholders in IB and
support industries.

All products were promoted to local audiences
via the BDA’s social media channels as well as press releases that generated editorial coverage online and
in print. Local “influencers” with a strong social media
presence of their own were also brought on board as


Bermuda House of Assembly partners to help spread the messages and products to
their larger, diverse audiences.
The entire campaign has been developed using Bermuda- based service providers.
On the international front, the BDA has liaised
with the Association of Bermuda Insurers and Rei nsurers (ABIR) and the BMA as well as government to be more proactive in the management of our profile as
an international financial centre.
Mr. Chairman, last year, the agency initiated
BDA Abroad using LinkedIn. This is a network for
Bermudians working abroad, or former Bermuda res idents, who wish to connect with the Island, share
ideas and intelligence, and be business ambassadors
for the jurisdiction. As of December 31, 2015 the
number of BDA Abroad members reached nearly 200
and the agency it self had more than 400 followers on
LinkedIn.
This network continues to expand as intern ational contacts from as far afield as Hawaii, Australia, Dubai, and Germany spread the message about Ber-muda.
Mr. Chairman, to summarise, in 2015 the BDA
carried out strategic overseas business development
meetings, road shows, attended key conferences, and
provided business concierge services for prospective clients in the areas of trust and private client, captive insurance, asset management, biomed, shipping, technol ogy, and e- commerce. New geographic markets explored included Latin America and Canada,
which yielded positive growth results.
Mr. Chairman, the conferences that the BDA
has helped attract to the Island, particularly during
shoulder months, have added thousands of hotel nights and assisted with increasing airline load—something of vital importance to both our tourism and
business sectors.
The consequential multiplier effects to the
economy while delegates are here, in our restaurants,
taxis, and shops is significant and keeps Bermudians working.
These conferences provide additional exp osure for the Island as both a tourism and business location to many people who have never visited be-fore. The net result is increased economic activity in the short -term simply due to arrivals on island, plus
long-term benefits from those who are compelled to
return—as leisure visitors —or to do business here,
and hopefully set -up a physical presence.
Mr. Chairman, the goals and objectives of the
BDA are long- term in nature; but for the coming fiscal
year, the BDA will continue to progress the pr ogrammes initiated in 2015. The onboarding of new
companies can be a slow process. For example, one
new company that has recently set -up business was
the result of nearly two years of dis cussion, assi stance, and progressive development. The BDA con-tinues to see opportunities make their way through the system and leveraging case studies, such as Invictus RG, EFG Wealth Management, and Roivant Sciences
will help attract others.
In addition to its current programmes, over the
next 12 months the BDA will focus more on international communication, particularly with a US election on the horizon. The BDA has liaised with the Cabinet Office, the Ministry of Finance, the Government’s
London Office, as well as the BMA and industry representative groups to ensure coordination with regard to international messaging that highlights Bermuda’s value to the global economy. The approach has been to promulgate messaging that tells Bermuda’s story, differentiates us from other international financial centres, and corrects misinformation about the Island.
The BDA has representation on the ACBDA
Legacy Committee and will be working to support and
fly the Bermuda business flag at America’s Cup Louis Vuitton World Series events in 2016, particularly in
New York and Chicago. The BDA will deliver Bermuda
business messaging to high level business executives
who frequent these events and to build greater awareness of our jurisdiction among those who might choose to invest or set -up companies here.
Mr. Chairman, while the development of the
Canadian and Latin American markets will continue throughout 2016, the BDA will complete feasibility r esearch on the Chinese and South East Asian markets to determine business opportunities those regions present to Bermuda.
Mr. Chairman, one of the BDA’s biggest
strengths is its ability to act as a liaison between the government, the regulator, and industry.
Cross -marketing between the Asset Ma nagement, ILS and trust sectors is key to t he BDA’s
initiatives in the coming year. The agency is seeking to encourage some of the asset managers backing
ILS structures to use Bermuda as their investment
platform. Similarly, by attracting and educating more high net worth individuals (HNWIs) on Bermuda’s a dvantages, we can promote Bermuda for other aspects of their international business needs. This kind of
cross- marketing is especially logical in an industry
diverse jurisdiction like Bermuda that is well -known for
its one -stop- shop marketplace.
Mr. Chairman, for the coming year, the main
thrust of the BDA’s Trust and Private Client initiatives
is to continue to refine and advance competitive legi slation that will set Bermuda apart from its competitors. This work is being done by the BDA’s Trust Law Reform Committee and its Trust Focus Group.
The Trust Pillar will also leverage the China
research, and the BDA has planned development in itiatives in Asia to tap into the growing interest, know ledge, and comfort level with trust products emerging from tha t region.
The existing prime target markets for the trust
industry remain the US, UK, and Switzerland, and the BDA has scheduled business development trips to each of those locations in 2016.
1608 21 March 2016 Official Hansard Report

Bermuda House of Assembly Another initiative the BDA will focus on this
year is the promotion and marketing of Bermuda as a
prime location for family offices. Research was under-taken during this current fiscal year, and phase two of this project will be deployed in the coming year.
Mr. Chairman, with regard to insurance and
reinsurance risk solutions, the BDA will continue to
support the captive and ILS sectors. They will build on
the Latin American and Canada initiatives already in place and will continue to support the ever -evolving
convergence sector. The latter is gaining greater un-derstandi ng in Asia and Australasia, and the BDA will
be seeking to gain more traction in these markets with
targeted programmes.
The BDA has continued to further develop the
marketing of the Island as a jurisdiction for the healt hcare insurance and the reinsurance industry. Bermuda’s captive and reinsurance sectors are serving
an increasing number of health care companies seeking risk -management solutions —particularly US corporations. This strategy will continue to be refined and
specific plans will be implemented throughout the year.
The BDA’s webinars will continue, and the
agency already has five scheduled webcasts slated for 2016, each focusing on different industry aspects.
The BDA is also leading a Team Bermuda
Captive Group on a series of regional US roadshow s
to secure opportunities in historically underserved pockets of the United States that it believes holds
great potential.
While there is continual contact with the I nsurance Advisory Committee and the management of
ABIR, 2016 will see direct liaison and c ommunication
with the companies that comprise ABIR and the Ber-muda International Long Term Insurers and Reinsurers (BILTIR).
Mr. Chairman, on the International Commerce
front, while the BDA will continue with core initiatives
related to Canadian e- Commerce and marine- related
life science, there will also be a push on promoting
shipping and aviation.
Via a combination of strategically targeted
business development meetings, conferences, events,
collaboration, thought leadership, jurisdictional advo-cacy, and media relations, the BDA continues to ex ecute its business plan to achieve the objectives of job
maintenance, growth, and GDP contribution.
To summarise, Mr. Chairman, the Bermuda
Business Development Agency’s targeted business
development efforts across key industry sectors over the past year is reaping tangible success —with year -
over-year increases noted in the numbers of new i nternational companies setting up on the Island across several industry sectors.
In 2016/17, the BDA plans to further this
growth, exploring new markets —such as China and
South East Asia, providing business development support to the America’s Cup Louis Vuitton World S e-ries events, as well as safeguarding and promoting
Bermuda’s jurisdictional reputation through proactive
advocacy overseas.
Mr. Chairman, the efforts of the BDA are
benefitting Bermuda and Bermudians, and we look forward to more success stories over the next year. The agency is well -governed and well -managed, and
its professional executives and support staff are per-forming well for the benefit of Bermuda.
I would like to at this point add my thanks to
Ross Webber and his team at the BDA who have been working very aggressively over the last year to improve their performance and Bermuda’s perfor mance.

Cost Centre 9505— America’s Cup 2017

Dr. the Hon. E. Grant Gibbons: Mr. Chairman, I
would like to move now to page B- 325, cost centre
9505, which is the cost centre for the America’s Cup 2017.
As you will see there, the estimate for 2016/17
is $8,068,000 which is up $1,850,000, or 30 per cent,
from the previous year. The budget in the previous
year, that is 2015/16, was $6,218,000.
Capital Development, which is found on page
C-7, the estimate for this coming year is $15,747,000,
which is actually up $10,873,000 from previous year.
And the previous year’s budget for 2015/16 was $4,874,000. The Grant. On page C -20 of the Budget
Book the estimate for 2016/17 is $7,968,000 up $1,750,000 from previous year. The budget in 2015/16 was $6,218,000.
Mr. Chairman, this allocation for this particular
cost centre is for the costs associated with Bermuda preparing for and hosting the America’s Cup Finals in
late May until the end of June 2017. This includes
$261,000 for operating expenses for t he Ministry
Headquarters for the oversight of Government’s deli verables for the events; $100,000 tailored specifically for America’s Cup events; as well as sponsorship
payments to the America’s Cup Event Authority, and a
grant to the ACBDA Ltd.
Mr. Chairman, in order for the Government to
ensure that it meets its obligations and commitments under the Agreement with the America’s Cup Event Authority (ACEA), there will be a temporary project
team within the Ministry (otherwise known as the
America’s Cup 2017 Office) until the end of the event period in 2017. The team will consist of two staff members seconded from within the Government; a Liaison Officer who is already in place, and I think who as Honourable Members will know as Jasmin Smith,
and she is responsible for overseeing the project office and she will be joined by an administrative assis-tant later this year.
To cover their salaries, $215,000 has been a llocated, plus $46,000 to cover required studies and reports associated with the America’s Cup Event Vi lBermuda House of Assembly lage logistics, public meetings, and general professional services. The core responsibilities for the America’s Cup Project Office are to:
• Oversee the budget allocated for the Amer-ica’s Cup 2017;
• Work with the relevant Government ministries to coordinate the delivery of Government functions and services required for the effective operation of the events, such as the transportation plan, security services, among others;
• Facilitate Concession Order applications u nder the America’s Cup 2015 Act;
• Serve as a conduit for the submission of work permit applications, development and building
applications, and any other applications r equired under the Government’s commitment
to the ACEA; and
• Liaise with the ACEA and the ACBDA Ltd. as
well as other organisations that will be providing resources or services in connection with hosting the 35
th America’s Cup.
Mr. Chairman, other responsibilities include
representing the Government on committees esta blished for the purpose of preparing and implementing various event initiatives, and I will be talking more about this later.
There is a Sponsorship Fee of $5 million. Mr.
Chairman, you may recall, under the Agreement with
the America’s Cup Event Authority the Government is
committed to a $15 million sponsorship fee over a three-year period, which is to be paid in Bermuda do llars and spent in Bermuda. That is very important. That money is to be spent in Bermuda. This $5 million is the third tranche. The first $1 million was paid upon
execution of the Agreement in December 2014, with
an additional $4 million paid in 2015, and the final payment of $5 million due in 2017.
The ACBDA Ltd. expenses are $2,707,000 for
the coming year. The ACBDA Ltd. (ACBDA), Mr. Chairman, is funded by the Government and 100 per
cent of its shares are owned by the Government. The main purpose of the company is for the day -to-day
performance, oversight, operation, and implement ation of Bermuda’s obligations under its agreement with the America’s Cup Event Authority. The difference between the ACBDA and the America’s Cup Office
within the Ministry is that the office is dedicated to
functions required within the Government whilst the ACBDA is far reaching. The company serves as a “one- stop- shop” relationship liaison between the
ACEA and the Bermuda community and as well with
the individual country teams; such as Artemis, Team
Japan, et cetera. The Government Liaison Officer serves on the ACBDA Board along with eight other board members.
Mr. Chairman, the full composition of the
Board is as follows: • Mr. Peter Durhager —Chairman;
• Mr. Michael Winfield —CEO;
• Mr. John Collis;
• Mr. David Dodwell;
• Mr. Daren Johnston;
• Mr. Warren Jones;
• Ms. Donna Pearman;
• Mr. Blythe Walker; and
• Ms. Jasmin Smith—Government AC Liaison Officer.

The ACBDA has a full -time staff of four under
the leadership of the Chief Executive Officer, Mr. Mike Winfield and has outsourced other functions which include: accounting, marketing, administration, public relations, project management, among others. The
ACBDA’s office is located in Windward House, 24
Crow Lane and is shared with the America’s Cup Event Authority. This prime office space is generously provided by Renaissance Reinsurance Ltd. at no charge and that is much appreciated as it saves not only the ACBDA but also Government consider able
rental costs.
Some of the responsibilities of the ACBDA i nclude promoting and facilitating all America’s Cup-related requests, disputes, and requirements that ACEA may have in connection with either their
Agreement with the Government or otherwise concerning the planning and preparation of the events.
Mr. Chairman, in the current 2015/16 Fiscal
Year, one of the ACBDA’s main focus areas was the delivery of Bermuda’s obligation to host the Louis Vuitton World Series in October 2015. The event was
a resounding success for the Island with many sectors of the economy benefiting. The positive economic i mpact for the event was estimated to be $8.6 million, which was actually some five times greater than ACBDA’s initial projection of $1.7 million estimated in October 2014.
The benefit includes spending from a variety
of sources:
• The $6.1 million includes accommodations, as
well as food and beverage for some 1,499
overseas visitors, consisting of America’s Cup sponsors; media; competitor teams not al-ready established in Bermuda; and other vis itors who came to the Island specifically for the event. This total includes individuals assoc iated with the ACEA, the teams and sponsors who entered the Island on a work permit. The $6.1 million amount reflects spending in Ber-muda to Bermuda parties.
• In addition, there was $1.2 million generated
spending by Bermuda parties —including staging of the America’s Cup Concert; infrastructure investment by telecommunications firms; and spending by Bermuda public bodies (such
as the ACBDA, the Bermuda Tourism Author1610 21 March 2016 Official Hansard Report

Bermuda House of Assembly ity, Bermuda Police Service, Bermuda Hospitals Board, Corporation of Hamilton, and Go vernment departments and ministries).
• An additional $1.3 million was attributed to l ocal spending by the general public including, spending in retail outlets; the America’s Cup
Village vendors; restaurants; transport; gas;
and other marine- related expenditures.
• There were 138 accredited media personnel
in Bermuda covering the event. They repr esented 97 media outlets from 14 countries i ncluding Australia, Austria, Bermuda, Canada,
France, Germany, Hong Kong, Italy, Japan,
New Zealand, Slovenia, Sweden, UK, and the
USA.
• Additionally, it is estimated that 8.1 million
people were reached by the televising of the event either through viewing the specific foo tage or through coverage of the event on other news or sports programmes.

Mr. Chairman, the ACBDA has oversight of 16
working committees that are fully engaged in strateg ically planning every aspect of hosting the America’s Cup events. The committees along with a strong vo lunteer base were an essential resource in contributing to the success of the Louis Vuitton World Series weekend event in October 2015.
These committees consist of government and
private sector representatives from every sector of the community. The committees are: Telecommunic ations, Security, Transportation, Health and Safety, Economic Assessment, Business Connect, Hotel C apacity, South Basin Land Reclamation, Regatta Sup-port, Communications, Sponsorship, OnWater/Charter Boats, Superyachts, Legacy and Sustainability, On -Water Operations, Infrastructure, and
Sailing Programmes: Endeavour Community Sailing
and Red Bull.
Some of the logistical matters the committees
are addressing include: preparing the Economic I mpact Assessment and a Development Planning Appl ication for the America’s Cup Event Village; waste management; water; fuel; sewage; movement of peo-ple; security issues; medical treatment provisions; evacuation planning; mooring of visiting yachts and
superyachts; accommodat ions for visitors, visiting
teams, and team sponsors; identifying and introducing
legacy projects —and the list goes on.
The ACBDA recognises that maintaining a
volunteer base over the four - to five -week period during the Finals in 2017 will not be an easy task and
may require remuneration to individuals who undertake key roles. All residents will be encouraged to play a part in this historic event. Sign- up information for
volunteers will be published closer to the event.
During the current 2015/16 Fiscal Year, the
ACBDA concierge has assisted nearly 160 team
members along with over 170 of their families with their relocation to Bermuda. This includes the remai nder of Oracle Team USA, Artemis Racing, and Sof tBank Team Japan, all of whom joined the ACEA and
a small group from Oracle that relocated to Bermuda
in March and April of 2015. In the upcoming Fiscal Year 2016/17, the ACBDA will assist with the reloc ation of Groupama Team France, the Land Rover BAR
UK team, and Emirates Team New Zealand.
Mr. Chairman, as a result of Bermuda hosting
the America’s Cup, young Bermudians will have the
opportunity to participate in two superb programmes: The America’s Cup Endeavour Programme and Ber-muda’s Red Bull Youth America’s Cup Team.
The America’s Cup Endeavour Programme is
a community sailing project with a focus on leaving a sporting legacy in Bermuda. The programme focuses on developing middle school aged children to learn about sailing through a cross -curricular STEAM Educational Programme (that is Science, T echnology,
Engineering, Art and Math). In October 2015 the East Fort, as it is called, was officially opened at the TS Admiral Somers Building which is being shared with the St. George’s Unit of the Bermuda Sea Cadets Corps. The West Fort is currently being erected in the
Royal Naval Dockyard and will ultimately be moved to
the Event Village, also in the South Basin area.
Since last summer over 1,000 Bermudian st udents have been exposed to Endeavour -related outreach programs. Some of the activities include:
• [There were] 138 students who participated
during the M1 in- curricular classes which is a
week -long programme;
• [Also,] 48 children each week for eight weeks were exposed to the programme. This i ncludes After School programmes covering
East End public prim ary schools and Youth
and Sports programming;
• [Additionally,] 198 students participated in the Spirit of Bermuda presentations and Oracle Team USA America’s Cup tour;
• [Additionally,] 160 students participated in
what are known as Generic Taster sessions
and team -based tours;
• [There were] 185 student engagements i nvolved in the National Sports Expo; and
• In addition to the students, 48 teachers participated during a two -day activation Teacher
Training programme in September 2015.

The Endeavour Programme also hired two
coordinators, two senior instructors, and two freelance
instructors; five of whom are Bermudian and who
have a professional development plan to improve the delivery of the programme. There were also 75 adult community volunteers from America’s Cup Endeavour Sponsors.
Mr. Chairman, Bermuda’s Red Bull Youth
America’s Cup Team (Team Bermuda) will consist of 18 athletes, 6 squad members, and 12 supporting


Bermuda House of Assembly training partners and shore team members. Team
Bermuda will compete in the Red Bull Youth America’s Cup in 2017. This programme will afford a s elected group of young Bermudians between the age of 19 and 25 a phenomenal opportunity to compete with world -class young sailors on America’s Cup 45 foot
foiling high performance catamarans (otherwise
known as the AC45s).
Mr. Chairman, the allocation of $2.7 million for
the operation of the ACBDA office includes costs for
an America’s Cup marketing and awareness cam-paign throughout the Island, and on- water and on- land
event venues, amenities and/or facilities to stage the
event. Some of these venues are team bases, the
Event Village, race areas, media and broadcast cen-tres, spectator viewing sites with facilities, parking lots, medical staging area, the race management fleet and spectator boats, volunteer centre, offices and back of the house facilities, and berthing for Team
support boats and superyachts.
Mr. Chairman, it is estimated that over 80
superyachts will come to Bermuda during the America’s Cup Finals which includes an America’s Cup Superyacht Regatta. I should note that this is quite a
few more than the number of superyachts that were
actually in San Francisco for the last one.

[Inaudible interjection]

Dr. the Hon. E. Grant Gibbons: Sorry?
Dr. the Hon. E. Grant Gibbons: We will see. They
are prob ably . . . he and hopefully many others.
This will create an opportunity for long- term
legacy potential to positively contribute to the Island’s
image as an upscale destination, as well as stimulate
economic activity and entrepreneurial opportunities
through required superyacht operations and services.
I would like to now turn to the ACBDA Ltd.
Capital Development Budget which is $15,747,000. This is up some $10,873,000—

Sorry, can you guide us?

Dr. the Hon. E. Grant Gibbons: Yes, that is pr obably
on page . . . it is in the C section, and I am guessing
that is on page . . . yes, it is on page C -7, Mr. Chai rman, C -7 of the Budget Book towards the bottom of
the page, line item 75382, America’s Cup,
$15,747,000.
So, in addition to their administ rative respo nsibilities the ACBDA is also responsible for overseeing the development of infrastructure and site preparation
expenditure for the team bases and other America’s
Cup event sites at the Royal Naval Dockyard. The work is being carried out in phases.
In the current 2015/16 Fiscal Year, the
ACBDA has been engaged in what is referred to as Phase 2 and a portion of Phase 3 of the America’s Cup— and I will get to that in a second—the America’s
Cup Dockyard capital development project which is on schedule and on budget at a cost of $4.9 million. That is for the current 2015/16 year.
This work includes the preparation of sites at
the Royal Naval Dockyard for the team bases, at the South Basin dock, as well as renovating and repurposing two of the existing buildings in the Royal Naval
Dockyard— Building Four, also known as the Chicane
Building, and Building Nine, which are both located
behind the Clock Tower Mall —for America’s Cup use.
To date some 390 workers were employed on these America’s Cup- related projects and approximately 70
subcontracting companies were involved. Emplo yment and economic opportunities will continue through the build- out of the Event Village and then
during the wind- down phase after the America’s Cup
Finals in preparation for ACEA’s handover of a clean site to Bermuda.
Oracle Team USA has fully established its
base next to Pier 41 on the South Basin dock and SoftBank Team Japan has erected its base to the west of Oracle. The ACBDA continues its focus on site preparations for Land Rover BAR and Groupama
Team France. Both teams are scheduled to set -up
bases on the South Basin dock before the end of 2016.
On completion of WEDCO’s land reclamation
project in the South Basin, attention will be directed to the development of the America’s Cup Event Village.
In addition to amenities and facilities required to host
the America’s Cup Finals, the Event Village will house the America’s Cup Red Bull teams, Emirates Team New Zealand and the Swedish team, Artemis Racing.
As Honourable Members will be aware, Art emis has constructed its team base at Morgan’s Point
where they will operate until moving a portion of their
operations to the South Basin during the first quarter of 2017 to comply with the Race Protocol which r equires all teams to have a presence at the Royal N aval Dockyard.
Mr. Chairman, this capital allocation
$15,747,000 is for a portion of Phase 3, and a portion
of Phase 4, which is the lion’s share or approximately 66 per cent of the project’s overall costs and includes: grading, asphalt, drainage and boreholes for prepar ation of the south end of the dock; floating docks and
moorings south and west of the South Basin arm, inside and outside of the South Basin bridge, inside both King’s Wharf and Heritage Wharf and in other locations identified to accommodate superyachts; electrical, water, IT, and waste management infr astructure for the team bases; landscaping and beaut ification of the Event Village; toilet facilities and parking lots; and refurbishments to specific buildings used by the America’s Cup Event Authority and/or the teams.

Economic Development Committee

1612 21 March 2016 Official Hansard Report

Bermuda House of Assembly Dr. the Hon. E. Grant Gibbons: Mr. Chairman, f inally, I would also like to take this opportunity to briefly
report on the Cabinet Committee for Economic Deve lopment —also known as the EDC. The Ministry pr ovides administrative support to the EDC. And although there are no direct budgetary implications specifically set out, the EDC attention comes under the Hea dquarters and the Committee’s mandate and the pr ojects that it oversees are closely intertwined with the activities and mandate of the Ministry.
The EDC is chaired by the Premier and i ncludes the Ministers of Economic Development, F inance, Home Affairs, Tourism Development and
Transport, Legal Affairs, and Public Works who are
supported by the Cabinet Secretary, the Financial Secretary and the corresponding Permanent Secretar-ies for each of the ministries.
Mr. Chairman, the role of the EDC is to review
proposals and provide oversight and support to those
projects and initiatives that are designed to stimulate
the economy and create jobs. These projects gener-ally have the very real potential to advance Bermuda’s economic recovery by stimulating investment, putting Bermudians back to work and laying the foundation
for future gr owth and shared prosperity. The EDC
meets on a weekly basis to review projects and ensure close coordination between ministries and en-sure timely decision- making.
During the current fiscal year, the EDC monitored and will continue to work on, a number of private
sector capital development projects; some of which
include:
• The development of a St. Regis resort at the
former Club Med site;
• The introduction of a new and larger classes
of cruise ships to the Bermuda market;
• The redevelopment of the Pink Beach Cl ub;
• The multiphase development of the Morgan’s
Point property;
• The renovation of the Fairmont Hamilton Pri ncess Hotel;
• The operational and capital development ac-tivities required to host the America’s Cup;
• The redevelopment of the L. F. Wade Interna-tional Airport;
• The redevelopment of Ariel Sands;
• The redevelopment of the Elbow Beach Hotel;
• The enhancement of beach amenities, most recently Horseshoe Bay;
• The leasing and repurposing of the Grand A tlantic condominium complex; and
• The investigation of development opportun ities on Marginal Wharf at Southside.

Mr. Chairman, in addition to monitoring the
progress of each of these projects, the EDC also e nsures that the required regulatory processes proceed unimpeded and receive the appropriate level of de-partmental and Ministry support required for these
important projects.
Thank you, Mr. Chairman, this concludes my
remarks on the Headquarters of the Ministry of Ec onomic Development. But it would be remiss of me not
to thank the Permanent Secretary, Mr. Bill Francis; the Chief Financial Officer of the Headquarters in the Mi nistry, Chris Meyer; the BDU Head, Ms. Lydia Dickens; and of course, Jasmin Smith, the America’s Cup liai-son.

HEAD 39 —REGISTRAR OF COMPANIES

Dr. the Hon. E. Grant Gibbons: With your permi ssion, Mr. Chairman, I would now like to move to Head
39 which is the Registrar of Companies department. And that is found on a number of budget pages and I am going to refer to them specifically in a minute, but that is pages B -328 to B -331 and also in the back on
page C -15.
The Registrar of Companies has been all ocated a total budget of $2,712,000. This is a reduction of some $133,000, or 5 per cent, from previous year.
The budget in the current year 2015/16 is $2,845,000
and the revised budget is down slightly to $2,786,000.
Revenue, which you can find on page B -329,
which I will talk a little bit more about in a few minutes,
is $70,054,000.
There are some 18 full -time equivalent staff
members in the Registrar’s Office.
Mr. Chairman, the Registrar of Companies
department is committed to the continued success of the international and domestic business sectors in Bermuda, particularly in light of the mounting chal-lenges from our competitors and increasing scrutiny from global regulatory bodies, such as t he OECD,
FATF, and the IMF among others. Accordingly, the Registrar is committed to the sound regulation of the industry and the delivery of efficient and effective ser-vice, emphasising a client -centred approach.
Mr. Chairman, the Registrar’s designated objectives can be found on page B -328 and are as follows:
• To maintain the Register of Companies and ensure the provision of current and accurate
Registry information;
• To ensure compliance with the Companies
Act 1981 and related legislation in a consi stent, f air and judicious manner;
• To collect Company Fee revenue pursuant to the Companies Act 1981 and other associated legislation in accordance with Financial I nstructions;
• To process all company applications from the private sector in accordance with established
benchmarks;
• To provide technical advice to the Ministry of
Economic Development and other Gover nment departments;


Bermuda House of Assembly • To provide guidance or direction to the public
on matters related to the Companies Act
1981; and
• To diligently administer court appointed c ompany liquidations and personal bankruptcies in a prudent and professional manner ensuring compliance with the Companies Act 1981, Companies (Winding- Up) Rules 1982, and
other associated legislation.

Mr. Chairman, we have seen a steady trend of
local and international company registrations in 2015.
The total number of new company registrations for the year was 1,090, a 9.2 per cent decrease over the
1,201 reported in 2014. The decrease was reflective of the 188 new local registrations, which was in effect
a 20.5 per cent increase over the 156 in 2014 (that is local company registrations); and 896 new intern ational companies and partnerships, a 12.3 per cent
decrease over the 1,022 in 2014.
Mr. Chairman—
[Mrs. Susan E. Jackson, Chairman]

Dr. the Hon. E. Grant Gibbons: —I am sorry, Madam
Chairman, after the numbers are netted out to take
into account companies that have left the jurisdiction
or gone into liquidation, Honourable Members may be interested to know that, as at December 1, 2015,
there were 11,548 active exempted companies on the register. This compares to 11,403 at the end of 2014.
Whilst there has been a net growth of 145 exempted
companies on the register this fiscal year; the depar tment continues its prudent strategy of estimating its revenue and has budgeted an increase of $5,024,000
for the coming 2016/17 year.

Expenditure Overview

Dr. the Hon. E. Grant Gibbons: What I would now
like to do is look at the Expenditure Overview by cost centre.
As I said, the overall estimate for the depar tment was $2,712,000. And the budget for the Regi strar of Companies is set out under three cost centres, which are on page B- 328, Madam Chairman. They
are:
• Policy and Planning;
• Registration and Revenue; and
• Licensing and Insolvency.

The total current account expenditure is est imated to be $2.712 million for the upcoming year. As I
said, this represents a decrease of or 5 per cent less
than the original budget of 2015/16. This decrease is
primarily due to the reduction in general administrative costs, coupled by a decrease in funds allocated to professional fees and services set aside for the co n-duct of corporate liquidations and personal bankruptcies.
Turning to the individual cost centres.

Cost Centre 49000 —Policy and Planning
Dr. the Hon. E. Grant Gibbons: As you can see on
page B -328, the estimate for the upcoming 2016/17
year is $528,000, which is $24,000, or 5 per cent from
the previous year. The budget for the previous year
was $504,000.
There are two full -time equivalent staff in the
Policy and Planning section.
Madam Chairman, the Policy and Planning
cost centre includes planning, strategic direction, a dministration and other activities associated with the daily operation of the Registrar of Companies D epartment. Information technology, financial and ad-ministrative support, budget development, accounting,
personnel administration, and general office admini-stration are also included in this cost centre.
Expenses under this cost centre include the
salaries of the Registrar and the Departmental Com ptroller. Other expenses are communications, training,
transport and travel, contractor payments, office sup-plies, repair and maintenance, legal services, bank fees, and storage expenses.
The budget increase of $24,000 for this cost
centre for the Fiscal Year 2016/17 is mainly due to increases in office equipment rental, airfare relating to
overseas conferences, and acting pay.

Cost Centre 49010 —Registration and Revenue
Dr. the Hon. E. Grant Gibbons: The estimate for
2016/17 is $870,000. This is a reduction of $193,000, or 18 per cent from previous year. The budget for the
previous year, or the one we are in now, is
$1,063,000.
The Revenue associated with this particular
cost centre is $69,779,000, and that is on page B -329.
There are 13 full -time equivalent staff in this
particular cost centre.
The Registration and Revenue cost centre includes the registration of companies and the proces sing and maintenance of statutory and legal documents which must be registered and available for public i nspection in accordance with the prevailing legislation. This section is also responsible for the collection of the annual fees submitted by companies in accor-dance with the Companies Act 1981, the Segregated Account s Companies Act 2000, and the Partnership
Acts.
Expenses under this cost centre include the
salaries of one assistant registrar, one supervisor of registration, one systems administrator, one admini strative assistant, four registration agents, four data entry clerks and one receptionist/filing clerk. Other expenses are related to training.
1614 21 March 2016 Official Hansard Report

Bermuda House of Assembly The decrease, Madam Chairman, of $193,000
in the budget for the Registration and Revenue cost
centre is primarily due to the freezing of five posts.
The estimated Revenue for this cost centre,
reflected on page B -329, is $69,779,000 and repr esents the majority of the total Revenue anticipated for the department. The balance of the revenue of
$275,000 is derived from Licence(s) General which is
a line item in the Licensing and Insolvency Cost Cen-tre, which I shall now discuss.

Cost Centre 49040 —Licensing and Insolvency

Dr. the Hon. E. Grant Gibbons: Again, on page B -
328, the estimate for the 2016/17 year is $1,314,000. This is an increase of $36,000, or 3 per cent from the
previous year.
The budget for the 2015/16 year was
$1,278,000.
There are three full -time equivalent staff
members in this section.
And as I just mentioned, the Revenue for this
particular cost centre is $275,000.
Madam Chairman, the Licensing and Insolvency cost centre is responsible for the execution of
court orders to administer liquidations in accordance with the Companies Act 1981, the Companies (Wind-ing-Up) Rules 1982, and the provisions of the Bankruptcy Act 1989 relating to personal bankruptcies.
This section also includes the processing and
issuance of licences and permits to exempted, local and overseas companies to carry on business in Ber-muda, the processing and issuance of licences to, and the regulation of, real estate agents and salesmen, and the provision of technical advice on holiday trading legislation. Expenses under this cost centre i nclude the salaries of one assistant official receiver, one technical officer (Insolvency), and one administr ative assistant. Other expenses are for professional liability insurance premiums, communications, and costs of professional services (legal, accounting, co ntractors, among others) which are required to assist in administering court -appointed corporate liquidations
and personal bankruptcies.
The increase of $36,000 in the budget for the
Licensing and Insolvency cost centre is a net figure. This is a result of an increase in legal services and
professional fees for the administration of corporate
and personal insolvency cases and a reduction in i nsurance premiums.
Madam Chairman, I now refer you to page B329 under Professional Services Cost Analyses. Please note that Professional Services has been i ncreased to $737,000 in anticipation of costs that will be essential to maintain the department’s IT systems
which are crucial to meeting its statutory duties. In addition, the professional costs associated with de-partment’s new role as the designated Real Estate Industry Competent Regulatory Authority, under Ber-muda’s anti -money laundering (or AML) legislation, is
also reflected under this particular vote.
Other expenses have also been increased by
$20,000 in anticipation of increased storage fees for active files stored offsite by the Registry, which i ncreases in direct proportion to the number of new an-nual registrations.
Travel expenditures have also been increased
by 50 per cent to $27,000 to support continuing pr ofessional development of Registry staff by attendance at overseas registry -related conferences.
Office equipment rental expenses has also
been incr eased to $20,000 in anticipation of increased
rental costs for the new photocopiers acquired by the department this fiscal year.
Madam Chairman, I would also like to draw
your attention to the fact that the insurance expendi-ture estimate has been decreased by $56,000 this
year based upon the relative stability of the premium
payments during the last fiscal year. The department’s
liability insurance comes under the government’s “umbrella” insurance policy and the terms and pa yments are negotiated in the London market by the Accountant General’s department.
There are no other significant changes b etween the budget estimates for the 2015/16 and the 2016/17 fiscal years.

Revenue

Dr. the Hon. E. Grant Gibbons: I turn now to Rev enue and would now like touch upon the revenue generated by the Registrar of Companies. These figures can also be found on page B- 329 and are significant.
The department is forecasting overall revenue
of just over $70 million; that is, $70,054,000. This is
approximately $5,024,000 more, or approximately an
8 per cent increase in projected revenue over the r evised revenue estimate for 2015/16 of $65,030,000.
Company registrations have been steady and
the department has taken a conservative approach by forecasting an increase in revenues b ased on actual
audited revenue figures available for the fiscal year
ended 2014/15.
Applications for refund of company fees and
removal of companies from the Register as they are dissolved, struck off or discontinued are just some of
the unknown factors at the time that the budget est imates are developed, hence the prudent strategy in
estimating revenue.

Manpower

Dr. the Hon. E. Grant Gibbons: Madam Chairman,
the department’s budget supports an establishment of 18 full -time equivalent positions and that can be found
on page B -330. As a result of the hiring freeze, the
department has a total of five frozen posts represent-ing a total cost savings of $148,200.


Bermuda House of Assembly The department believes in value for money
and operates as effectively and efficiently as it can in
the face of limited resources. Despite the reduced budget, the department expects to maintain the same service delivery levels and targets for the next fiscal year.

Capital Funding

Dr. the Hon. E. Grant Gibbons: Capital Funding,
which appears on page C -15, refers to the new Electronic Registry System, which will be replacing the existing, outdated obsolete systems which are no
longer supported by vendors. The Registrar of Companies has been allocated $250,000 in capital funding for the coming Financial Year 2016/17, which is r eflected, as I said, on page C -15.
This funding will be used to acquire a new
system which is envisioned will provide:
• improved online business service offerings;
• new and improved reporting options for Regi stry users;
• simplify and str eamline business interactions
for “electronic” Registry users;
• enable Registry staff to devote more time to enforcement and regulatory activities; and
• it is anticipated to increase customer satisfaction with an easier and faster framework to
comply with regulatory filings.

Madam Chairman, it is proposed that the new
system will be similar to those already in use in other
jurisdictions, which will maintain Bermuda’s compet itive advantage, as offshore registry of choice.

Major Achievements

Dr. the Hon. E. Grant Gibbons: Madam Chairman,
the department has been active this current fiscal year and I would like to just touch on some highlights which include the following:
1. The Registrar of Companies successfully
hosted the International Association of Insolvency
Regulators Conference, the world’s annual meeting of government insolvency regulators, which brought r eceivers and liquidators from all over the world to the Island in September 2015. This was an historic event for Bermuda, since it was the Island’s first time to host
such a significant event. The conference was very
successful and attendees evaluated the conference with quotes like: “This was the best by far.” “Thank you”; “Very well organized by the Bermuda Team.” “Well done!!” The workshops were as usual the salient
features and the highlights of the conference. Most
interesting and thought provoking. And I am pleased to say the conference was also held within budget.
2. In addition, the department implemented a
new “paperless” receipting system in April 2015 where digital receipts are sent within minutes of a transaction to the designated inboxes of companies and/or service providers. This system is environment friendly as
it has enabled the Registry to significantly cut back on physical paper storage, printing costs and mailing and handling costs.
3. The department was also successful in continuing to improve on its efforts to streamline internal
processes and speed to market. Whilst the perfor mance measures in the Budget Book refer to average
proces sing times of between two and five days, (that
is on page B -331) the vast majority of incorporation
applications are turned around within a four -hour period on a routine basis.
4. The department is also instrumental in the
preparation and presentation of data and statistics to
the Ministry and the Department of Statistics.
5. The Government has continually expressed
and sought to demonstrate its commitment to achie ving a high level of compliance with international standards. The Financial Action Task Force (or FA TF), an
intergovernmental body established by the Ministers
of its member jurisdictions, has established interna-tional standards on combating money laundering and the financing of terrorism and proliferation of weapons
of mass destruction. Its standards require that one of
the sectors that must be brought into scope is the Real Estate sector. The department has continued to provide technical input to the National Anti -Money
Laundering Committee (or NAMLC) in the area of real estate and has been designated as the Competent
Regulatory Authority under Bermuda’s anti- money
laundering (or AML) legislation for the real estate i ndustry. The Superintendent of Real Estate and the
National Anti -Money Laundering Committee continue
to work on this important initiative which has national importance for Bermuda and which I will expand upon
when providing Honourable members with an overview of the department’s plans for upcoming year.
6. The department also worked very closely with
the Business Development Unit (BDU) to introduce and implement new legislation which allows for conversion of an exempted company to a partnership that
is both limited and exempted as well as the conver-sion of an exempted partnership that is both limited and exempted to an exempted company. This legi slative change increases the options available to our corporate customers and maintains Bermuda’s competiveness with other jurisdictions.
7. The Registry also contributed to the Gover nment’s mandate to increase revenue. The department
conducted a review of its existing fee structure and was able to increase the administrative fees for next fiscal year by 5 per cent by recommending a modest
increase in existing fees which will take effect April 1,
2016. It is also worth noting that company annual fees were not increased to ensure that Bermuda continued
to remain competitive as an offshore financial centre.
8. In order to address existing gaps in Bermuda’s anti -money laundering legislation, and in light
1616 21 March 2016 Official Hansard Report

Bermuda House of Assembly of the 2012 revision to the Financial Action Task
Force’s (FAT F) 40 Recommendations, the Companies
Act 1981 has been amended to require Bermuda registered companies to file with the Registrar of Compa-nies a current listing of the directors of the company. The new provision comes into force on April 1, 2016
and specifies the particulars required to be filed and
places an obligation on the company to keep the list of
directors up to date and imposes an obligation on the Registrar to maintain a publicly available register of directors.

I would like now, Madam Chairman, to turn to
some plans for the coming year, that is, the 2016/17 Fiscal Year.
The department will continue to work with
Bermuda’s International Business industry, the Ber-muda Monetary Authority (the BMA), and with Ministry Headquarters to improve its business processes and
implement various projects, which are as follows:
1. Beyond compliance with international standards, our fight against money laundering and terrorist
financing translates equally to protecting the reput ation and the economy of Bermuda. A revi ew will be
ongoing on the proposed changes to the Anti -Money
Laundering and Anti -Terrorist Financing (or AML/ATF)
regime to establish an appropriate AML/ATF fram ework for the real estate sector. The proposals con-template updating the relevant AML/ATF and r eal e state agency legislation to integrate the Superintendent
of Real Estate into the AML/ATF framework by desi gnating the Superintendent as a “competent authority”
under the Proceeds of Crime Act 1997 and by includ-ing the Superintendent as a supervisory authority for the real estate sector. This will entail an expansion of the Superintendent’s remit to include monitoring and
enforcing compliance by local real estate practitioners
with established AML/ATF requirements. The working group, in which the Superintendent and his team are a part of, will continue to work closely with represent atives from the Real Estate Division of the Chamber of
Commerce, which represents a significant number of
real estate firms in Bermuda, as well as with all other firms that may not be members of the Chamber. The proposals are expected to be advanced for review and approval before the end of this calendar year.
2. The department will continue to further
streamline its processes to be able to work in conjunc-tion with the Economic Development Committee (EDC), Business Development Unit (BDU) and the Business Development Agency (BDA) as exped itiously as possible, particularly on projects of national economic importance.
3. The department will endeavour to identify new
sources of revenue by reviewing its service and fee
structure. It will also embark on “continuous improv ement” projects where internal processes could be fur-ther enhanced to achieve savings. For the next fiscal year, the department is looking to work on the follo wing projects:
a. The department has committed to a com-plete upgrade of its IT systems in order to improve the quality of its statistical repor ting, reduce the risk of business disrup-tions from cyberthreats, improve the ease
of access by customers to information on
the company register, and to enhance the availability of online features for Ber-muda’s corporate service providers and the general public.
b. With the assistance of the E- Government
Department and the Department of Co mmunication and Information, the depar tment has been selected as an early adopter to the proposed new Government Portal Project and is one of the depar tments participating in the pilot pr ogramme. The project will include upgrad-ing and updating the department’s online presence on the new government portal
to make it more appealing to customers whilst providing more information on fr equently asked topics, and making relevant application forms and documents conven-iently accessible.
c. Through the asset clawback provision under section 262 of the Companies Act 1981, the department is considering an
engagement, on a straight commission basis, with an expert firm that specialises in investigating and recouping assets that formerly belong to struck -off and di ssolved companies. Such recouped assets would be liquidated and deposited in the
Consolidated Fund.
4. The department will continue to work closely
with the Real Estate Division of the Chamber of
Commerce and with the Bermuda College to monitor the quality of the real estate examinations.

Madam Chairman, in conclusion for this particular Head, I would like to extend my appreciation for the work undertaken by the Registrar of Companies, Mr. Stephen Lowe and his team, particularly, Ms. Maria Boodram, the Assistant Registrar, and Ms.
Gladwina O’Mara, the Acting Assistant Official R eceiver, as well as other members of the staff in the
Registrar of Companies.
Thank you Madam Chairman, this concludes
my remarks on the Registrar of Companies.

I will just take this moment to say that
we have about one hour and 45 minutes.

Dr. the Hon. E. Grant Gibbons: Okay. Thank you.



Bermuda House of Assembly HEAD 46 —DEPARTMENT OF TELECOMMUNIC ATIONS

Dr. the Hon. E. Grant Gibbons: I would like to move
now to Head 46, which is the Department of Telecommunications. That can be found on pages B- 332
through B -334 and C -7 of the Budget Book.
Madam Chairman, the mission of the Depar tment of Telecommunications is to enable an innov ative and sustainable telecommunications industry for Bermuda by formulating sound policy.
The objectives of the department, which can
be found on page B -332, to support its mission are as
follows:
• To protect the public interest;
• To provide technical support to the Broadcas ting and Telecommunications Commissions;
• To develop policies which promote the intr oduction of new telecommunication services;
• To develop Bermuda’s assigned satellite slots; and
• To effect the migration of the responsibilities of the Broadcasting Commission to the Reg ulatory Authority.

The budget estimate for the Department of
Telecommunications, which is on page B -332, for
2016/17, is $1,033,000. This is a reduction of $50,000, or 5 per cent, from the previous year of $1,083,000.
There is also Capital Funding of $175,000
which is dedicated (that is on page C -7) to Bermuda’s
Satellite Orbital Slots.
Madam Chairman, the Department of Telecommunications has been allocated, as I said, $1,033,000 for the next fiscal year. This amount is
reflected across three cost centres: Administration,
Technical Services, and Other Services, which I will expand upon as I progress through this brief. The de-partment’s allocation for the next year is a decrease of $50,000, or a 5 per cent reduction over the financial year 2015/16 allocation. This decrease is primarily
due to the department’s move into the Government
Administrati on Building and therefore is no longer r equired to pay rent to the private sector.
Madam Chairman, the department is responsible for providing policy advice to the Minister on all telecommunications -related matters. The department
also works very closely w ith the Regulatory Authority
(RA) to establish policies and develop legislation that enables the efficient regulation of the telecommunic ations sector in Bermuda. As an independent Regul ator, prescribed by the Regulatory Authority Act 2011
(RAA), the RA is solely responsible for the regulation
and supervision of the telecommunications industry,
but must be guided by the Minister’s policies with r egard to its work plan, priorities and budget.
The RA is led by a board of Commissioners
and the current Chair is Ms. Angela Berry. Madam Chairman, the department’s work with
the RA during the current fiscal year included a wide range of policy and practical issues. They include the completion and sign- off of the World on Wireless
(WOW) Spectrum Migration; the continuing collection and verification of the payment of all licence fees by public telecommunications service providers; Ce llOne’s litigation against the Minister and the RA r egarding the Spectrum Policy and the allocation and assignment of spectrum in Bermuda; and Bermuda
CableVision and Logic Communications Ltd. merger, as well as other merger applications.
Madam Chairman, the Regulatory Authority
has been empowered to make Administrative Deter-minations in order to carry out their regulatory respon-sibilities. Included in these are General Determinations which are Statutory Instruments and, therefore, have legislative effect. During the current year the A uthority has issued four Administrative Determinations
and they are:
1. World on Wireless 700 MHz Spectrum Migr ation Proposal Final Decision and Order. In this case
the Authority approved the Migration Proposal submi tted by WOW, wherein WOW agreed to surrender its
700 MHz band frequencies (or Channels 52 to 69) so
that they may be reallocated and reassigned for m obile communications, in other words, to cell providers.
2. The Authority provided a Final Decision on
Bermuda Telephone Company [BTC]/Digicel merger.
Digicel sought the Authority’s approval on transactions
involving Barrie Holdings Limited, Bermuda Telephone Company Limited, Telecommunications (Ber-muda and West Indies) Limited, and Digicel Group Limited as required by section 87(3) of the Regulatory Authority Act;
3. The Authority provided a DMTV Change in
Control Decision. And that is Digital Mobile Television Limited and Trina Investments Limited sought the A uthority’s approval on a transaction concerning a change of control as required by section 87(3) of the Regulatory Authority Act; and
4. The RA provided a determination on the Bermuda Email Mobility Preliminary Report Decision and Order. This was a proposal to “facilitate subscribers switching” between Internet Service Providers (ISPs) “by ensuring that Email services do not act as a bar-rier to switching.” More specifically, the Authority pr oposed that ISPs be required to provide “temporary, free-of-charge Email forwarding services” to subscribers that choose to move their service from one ISP to another.

Madam Chairman, in addition to any requests
or directions that the Minister may issue, the Regula-tory Authority’s work plan will focus on the following areas during the coming year:
• They will monitor compliance with conditions
imposed on Digicel after its acquisition of
BTC;
1618 21 March 2016 Official Hansard Report

Bermuda House of Assembly • They will review the state of over -the-top services [OTT] (for example, Netflix, WhatsApp,
Skype, and others) in the Bermuda market
and the impact of these services;
• They will monitor the Assignment of High D emand Spectrum (HDS -2);
• They will carry out a Quality of Service Investigation into Fixed Broadband/ISP Speeds;
• They will look into confidentiality of consumer
data;
• They will review and consider the Public I nterest in allowing more Integrated Communi-cations Operating Licence (ICOL) holders to
enter the market; and
• They will review of the conditions in the ICOL
licences that requires all ICOL holders to maintain in Bermuda all of the personnel,
network facilities, and associated facilities and
services relating to the provision of the Elec-tronic Communications Services that they are licensed to provide.

Madam Chairman, there is a need to st reamline and condense broadcasting- related pieces of le gislation, while ensuring that the resulting legislative framework caters for the ever -expanding range of
broadcasting technologies and services.
Madam Chairman, the broadcasting sector is
governed by several different pieces of legislation i ncluding, but not limited to:
• Cable Service Television Act 1987;
• Television Broadcasting Service Regulations
1987;
• Films (Control of Exhibition) Act 1959;
• Broadcasting Commissioners Act 1953;
• Telecommunications Radio (Stock) Regul ations 1987;
• Sound Broadcasting Service Regulations 1994; and
• various radio class regulations.

In addition to these, there are several other
Acts that have relevance to the broadcasting sector,
such as the Prohibited Publications Act 1963, and the Obscene Publications Act 1973.
The main functions of the Broadcasting
Commission are to rate unrated films shown in public,
to make decisions on the suitability of broadcast content, ranging from movies to radio adverts, and to ad-dress complaints from the public on those matters noted above.
Madam Chairman, the department is continuing the process of working with the RA to effect the
second major phase of the Telecommunications
Regulatory Reform Initiative that is the transition of the responsibili ty of regulating Broadcasting to the RA.
The benefits to the broadcasting sector, once reg ulated by the Regulatory Authority, will be the availabil-ity of appropriate and robust regulation. As occurred in
the telecommunications marketplace, the RA will conduct a review of the broadcasting sector to implement
regulatory measures that will support a modern and lively local broadcasting industry. The RA will also be responsible for collecting the relevant Broadcasting licensing fees, further reducing the administrative burden to the Government, and thereby allowing the department to be more efficient in its policy development operations.
The department will work with the Department
of Environmental Protection to develop legislation that will create environmental protection zones for undersea communication and power transmission cables. This initiative did not progress as planned last year due to insufficient funding.
Madam Chairman, I would now like to focus
on the specifics of the budget allocation for the D epartment of Telecommunications. As noted on page
B-332, the department is comprised of the three cost
centres, they are:
• Administration;
• Technical Services; and
• Other Services.

Cost Centre 56000 —Administration

Dr. the Hon. E. Grant Gibbons: Turning first to cost
centre 56000, which is Administration, on page B -332,
Madam Chairman, you can see there the estimate
2016/17 is $929,000. This is a $161,000, or 21 per
cent increase from the previous year, which was $768,000.
There are five full -time equivalent staff me mbers in this particular cost centre.
The Administration cost centre is used primarily to fund the administrative expenses of the depar tment, which includes salaries, and other general office expenditures. The increase in this cost centre is largely due to the allocation of professional services to further the Broadcasting and Telecommunications
reform. The department has offset a significant portion
of this increase by the $150,000 savings in rental ex-pense as a result of relocating into the Government Administration Building in October 2015.
Madam Chairman, there is also an allocation
of $481,000 for professional services and that is on page B -333. This is budgeted for professional consultants as explained above to further the Broadcas ting and Telecommunication reform and to initiate the cable protection zone project. Overall, the department has reduced its expenses by 5 per cent from the pr evious fiscal year.
While some of the roles that were previously
undertaken by the department are now assumed by
the Regulating Authority, the department retains r esponsibility for policy development, as well as suppor ting the Minister, the Telecommunications Commission
and the Broadcasting Commission in regulating the


Bermuda House of Assembly broadcasting sector. Functions relating to broadcast
regulation are still within the remit of the Broadcasting
and Telecommunications Commissions, which i ncludes the granting of new licences. This involves public consultations and hearings prior to permissions
and licences being granted. In effect, this year, there
have been no new applications.
Madam Chairman, the funded positions in the
Administration section currently comprise one rece ptionist/clerk, one telecommunications officer, one ad-ministrative officer, one senior legal counsel, and the statutory position of one director. It is worth noting that there has not been a substantive director in this department in well over five years, due primarily to a v ariety of structural changes. These changes were the
direct result of the creation of the Regulatory Authority
and several ministerial portfolio realignments. During this time we have appreciated the support of a series of acting directors who have been seconded and have
been doing double- duty while maintaining their other
responsibilit ies. In October of 2014, Ms. Maxanne
Anderson, the Senior Legal Counsel for the depar tment, took on the role as Acting Director and has
been successfully fulfilling the obligations of both pos itions.

Cost Centre 56010 —Technical Services

Dr. the Hon. E. Grant Gibbons: Turning now to cost
centre 56010 for Technical Services, the estimate for 2016/17 is $4,000 and that is down $11,000, or 73 per
cent from the previous year.
Madam Chairman, the budget for the Technical Services cost centre for the next fiscal year is
$4,000, a decrease of $11,000. This decrease is due
to the reduction in maintenance of the equipment and
the Emergency Broadcasting Station on 100.1 FM
which has been transferred to the Ministry of National
Security. The current funding is for repair and maint enance of equipment and rental of audio visual equip-ment.

Cost Centre 56020 —Other Services

Dr. the Hon. E. Grant Gibbons: Moving to the next
cost centre, which is Other Services, cost centre
56020, this shows an estimate of $100,000. The
budget for this cost centre has been significantly d ecreased. The $100,000 in this year’s budget has been
allocated for the follow -up costs for the World on Wir eless (WoW) Spectrum Migration. The revised increase of $470,000 for Fiscal Year 2015/16 was due to budget virements to the department to facilitate the
reimbursement to WOW for their spectrum migration,
which was completed during Fisc al Year 2015/16. The
total cost to date of the WOW migration paid for by the Government is $800,838. Madam Chairman, Gov-ernment expects to recoup these expenses through the new high demand spectrum fees which are est imated to be $1,556,000 for the 2016/17 Fiscal Year.
Madam Chairman, I would now wish to turn to
the continued development of our Space and Satellite Industry, which is reflected on page C -7. The Depar tment of Telecommunications has been allocated $175,000 in capital funding for Fiscal Year 2016/17.
Madam Chairman, with your indulgence, I would like
to provide this Honourable House with some bac kground information.
As this Honourable House will recall in 1983
the International Telecommunication Union (ITU) all ocated four satellite orbital slots to Bermuda. Three of
these are for Broadcasting Satellite Services for d irect-to-home reception and the fourth is for comme rcial communications. Madam Chairman, Honourable
Members will recall that Bermuda’s orbital slot at 96.2˚ WL was successfully brought into service by
SES Satellites (Bermuda) Limited (SES) using an
EchoStar Limited satellite (EchoStar VI) in July 2013.
The Minister issued to SES three certificates: the cer-tificate of compliance; the certificate of competence to engage in coordination; and the certificate of coord ination in accordance with the Satellite Network Notif ication and Coordination Regulations 2007. In August 2013, SES, having met all of the prerequisites, was issued a full operating licence, authorising them to operate the BermudaSat -1 network at 96.2˚WL. SES
continues to market BermudaSat -1 located at
96.2˚WL and has initiated discussions with several
leading providers of satellite service applications.
Subsequent to the issuing of a licence to SES
Satellites (Bermuda) Limited, EchoStar Limited and
SES Satellites (Bermuda) Limited formed a joint ve nture company called Satellite Ventures (Bermuda) Limited to which the satellite network operating l icence has been transferred.
Potential markets for the joint initiative include
commer cial, leisure, and government consumers.
While the ongoing tests of a new generation of con-sumer antennae have shown positive results, no
commercial agreements have been concluded, but
SES continue to be optimistic about the commercial prospects of BermudaSat -1.
Madam Chairman, according to a report pr epared for the Satellite Industry Association called “State of the Satellite Industry Report” in September
2015, the global satellite industry grew by 4 per cent
in 2014, slightly outpacing both worldwide economic
growth and US growth to reach a total of $203 billion in 2014. The satellite industry includes Consumer Services such as satellite television, radio and broad-band; Mobile Satellite Services, which include mobile
data and mobile voice; Remote Sensing/Imaging Services; the use of managed network services; and a variety of commercial contracts.
Madam Chairman, I should also add that an
FCC moratorium remains, even though actions have been filed by a number of satellite companies to lift
1620 21 March 2016 Official Hansard Report

Bermuda House of Assembly this 10- year-old moratorium on granting access to foreign licensed satellite networks. Lifting this morat orium would allow Satellite Ventures (Bermuda) Limited
[SVBL] to fulfil the long- desired goal of Bermuda’s
satellite network (BermudaSat -1) to provide services
to the high valued US market.
Madam Chairman, some would say that the
global satellite industry was recession- proof; but r egardless of the accuracy of that assertion, it is clear that the revenues generated by the satellite industry are worthy of our attention. The Department of Tel ecommunications will continue to engage the global satellite industry to enhance and develop services that
will attract these companies to our shores. The department will work with the Ministry’s Business Deve lopment Unit (BDU), as well as the BDA, other organi-sations and local service providers in support of these initiatives. Examples of these services include:
• improvements to the satellite network filing
regime in accordance with the Satellite Network Notification and Coordination Regul ations 2007;
• the marketing of Bermuda’s additional satellite orbital slots;
• the development of a Satellite Tracking Licensing regime to support the periodic use of
Bermuda as an ideal location to track satellite launches from the western hemisphere;
• the in vestigation into the viability of using
Bermuda’s high- capacity transatlantic fibre
optic communication links to compliment var ious satellite services; and
• the promotion and marketing of Bermuda’s I nsurance and Risk Mitigation services to the global satell ite industry.

Madam Chairman, the Bermuda Government,
together with the RA, has developed a protocol that authorises various entities to establish and operate portable facilities to perform satellite tracking and r eceive telemetry data for their launch vehicles, or other projects as may be agreed. Presently, ESA (European
Space Agency), NASA (National Aeronautic Space
Administration) and SpaceX group have tracking and telemetry facilities on- Island.
Another company, called Spire Global, has
requested the use of Bermuda facilities in order to collect data, such as the Automatic Identification Sy stem (AIS) service, which is used for tracking ships, and collecting weather data that measure temper ature, pressure and precipitation gathered from a net-work of satellites. AIS data is used to monitor illegal fishing activities, trade monitoring, maritime domain
awareness, insurance, asset tracking, search and
rescue, and piracy. The purpose of the proposed Earth Station in Bermuda is to track and monitor sate llites a nd shipping assets. These facilities are located
at Cooper’s Island (site of the ex NASA station) and at the old Cable and Wireless (C&W) facility in Devo n-shire (now LinkBermuda). Bermuda is once again
proving to be an ideal location to track and collect
data from satellite networks.
Madam Chairman, the $175,000 that has
been allocated to the Department of Telecommunic ations will be used to continue to fund these global sa tellite industry initiatives as part of the department’s
role in participating in the Ministry’s efforts “to promote
and strengthen economic development on the Island.” The satellite industry is a growing enterprise within the telecommunications industry which is rapidly becom-ing more and more integrated with currently en-trenched terrestrial communications’ facilities. This
means that satellite space telecommunication has
become a critical component of any advanced tele-communications network today. This allocation of $175,000 will be used to cover the cost of specialist satellite consultants, marketing, ancillary costs and to continue developing Bermuda’s satellite industry.
I turn now to Revenues on page B -333. The
estimate, as you can see there Madam Chairman, the projected revenue for the department for the next fi scal year is $13,466,000, which represents an increase of $891,000, or 7 per cent, over the previous year.
This revenue is primarily composed of fees for Int egrated Communications Operating Licences (ICOL), Cellular Handset Licences, the new Radio Spectrum Licences, and licences for various other commercial and private radios.
Madam Chairman, the total ICOL fees for the
next fiscal year will be set at 4.25 per cent of relevant
turnover as reported from the licence holders, which represents a 0.50 per cent increase from the previous
year. The ICOL fees is composed of two parts; of this, the RA will retain 1.75 per cent, which is an increase of 0.25 per cent from the previous year for their operating expenses and transfer the remaining 2.5 per
cent to the Government (an increase of 0.25 per cent
from the previous year). This Government portion of the ICOL fee will generate approximately $4,600,000 of the total projected revenue of $11,810,000, shown
under code 8431, General Fees, on page B -333. The
balance will be generated from the Cellular Handset
fees which will increase to $9.50 per handset per month; projected at $6,800,000; and Radio Communi-cation licences budgeted at $410,000.
The Electronic Communications Act provides
for the establishment of Government Authorisation Fees for spectrum licences. On the recommendation of the Regulatory Authority and after consultations with the affected service providers, an incentive pri cing scheme was recently introduced for those bands of the radio spectrum that are considered to be in high
demand. This scheme is consistent with the economic
and technical efficiency objective as outlined in the
Electronic Communications Act, and adheres to the pricing guidelines and will result in estimated revenue of $1,556,000, as reflected under code 8434, Carrier Fees.


Bermuda House of Assembly Madam Chairman, a conservative estimate of
$100,000 has been budgeted for the profits due from
the Regulatory Authority to Government in keeping with the Regulatory Authority Act 2011.
Madam Chairman, I would like to conclude my
comments for the Department of Telecommunications by indicating that even with an extensive mandate and
limited resources, they continue to strive to provide a
high level of service. The level of commitment from the Telecommunications staff cannot be achieved without many long hours and very often without add itional compensation. In this regard, I would like to thank the staff and in particular the Acting Director,
Ms. Maxanne Anderson, who has taken on these duties, while maintaining her role as Senior Legal Coun-sel with in the department.
Thank you, Madam Chairman. This concludes
my remarks on the Department of Telecommunic ations.
I would like to move now to Head . . . how
much time have we got remaining?

You have about an hour and 15 mi nutes.
Dr. the Hon. E. Grant Gibbons: Okay. I will move
right along.

HEAD 89 —DEPARTMENT OF ENERGY

Dr. the Hon. E. Grant Gibbons: The current account
estimates for Head 89, which is the Department of
Energy of the Ministry of Economic development, are found on pages B- 339 through B -341 of the Budget
Book.
The Department of Energy has been allocated
a total of $943,000, which is a decrease of $45,000 from the previous year.
The mission statement of the Department of
Energy is to “develop energy policy and legislation which enables a secure energy future for Bermuda.”
Madam Chairman, this short statement by no means
reflects the significance and scope of the responsibil ities of the department.
Honourable Members will recall “The National
Electricity Sector Policy of Bermuda” t hat was tabled
and debated in this House in June of 2015 and the
specific objectives contained in that policy document.
These objectives were and are:
• The provision of high quality electricity ser-vices at the least cost, which satisfies cu stomer expectations with respect to reliability and value without compromising safety stan-dards;
• It also includes the migration to electricity services that are environmentally sustainable and
do not harm Bermuda’s environment or the global environment; • They include the pr ovision of secure electricity
services that are provided using a mix of en-ergy options that are procured from reliable sources; that will, as much as practically pos-sible, protect Bermuda from price and supply
volatility; and
• The provision of affordable electricity services
so that all residents are at least able to pay for
the basic supply of electricity, while still pr eserving the competitiveness of the sector.

Madam Chairman, it will be the responsibility
of the Department of Energy to facilitate the ac hievement of these policy objectives by researching and recommending policy and legislative measures that
will guide the implementation of Bermuda’s national energy policy.
The Objectives . . . let’s see, in order to e nsure that the activities of the Department of Energy are aligned with their mission, the specific objectives
that they have been assigned for the next fiscal year
are as follows:
• To develop electricity policy, legislation and
regulations to help improve its provision, pr ocurement and use;
• To develop fuels policy, legislation and regul ation to help improve the provision, procur ement, and use of fuels;
• To facilitate investment in energy technologies
for the Bermuda energy sector;
• To continue to educate the public on energy matters;
• To provide technical support to the Energy
Commission and support to the Regulatory
Authority in transitioning electricity regulation from the Energy Commission to the RA; and
• To develop and support initiatives within the
Public Service that enable Government to
lead by example and help reduce operating costs.

The department will meet these objectives by:
• Developing additional legislation, when necessary, to assist the Regulatory Authority in
establishing processes and procedures rela ting to their regulation of the electricity sector;
• Creating policies for the use of new fuel tec hnologies in Bermuda, and introducing a regu-latory framework for the fuels sector;
• Partnering with the Ministry of Public Works to
issue a Request for Proposal (RFP) for a uti lity scale solar photovoltaic (PV) system on the
finger at the L. F. Wade International Airport;
• Promoting public awareness about the new Electricity Act and the regulation of the electricity sector; and
1622 21 March 2016 Official Hansard Report

Bermuda House of Assembly • Collaborating with government agencies,
NGOs, and the public schools to promote energy conservation and efficiency.

The budget data are on page B -329 and, as
mentioned earlier, show that the budget estimate for
the year $943,000, which is a 5 per cent, or $45,000
decrease from the previous year of $988,000.
There are three full -time equivalent staff in the
department.
I think it is worth saying, Madam Chairman,
that 90 per cent of the allocation of the $943,000 is
represented by two line- items: Salaries and Professional Services.
Salaries have been estimated at $360,000
and the expenditure for Professional Services has
been projected to be $493,000 for the upcoming year.
With respect to Salaries, this particular line
item provides for three full -time equivalents . . . and I
am actually looking at page B- 340 now, the three f ulltime equivalents include: a Director, which is Ms.
Jeane Nikolai; one Energy Policy Analyst, and one
Research and Development Officer. This expenditure
represents a 1 per cent increase over the previous
year’s allocation, due to one employee moving to the
top of his pay grade and receiving a slight increase.
Madam Chairman, the funds allocated for Pr ofessional Services or the fees payable to external
consultants for the next financial year are $111,000,
or 29 per cent more than last year’s estimate. This increase is attributable to the ongoing external exper-tise that is required to implement various aspects of the electricity regulatory reform initiative and other
new energy related initiatives, such as the utility scale
solar photovoltaic (PV) system at the airport.
Madam Chairman, the other expense line
items that will contribute to the department’s year -
over-year reduction in expenditure estimates are
Training, Rentals and Other Expenses. The Training
budget was reduced due to the increased availabilit y
of online tutorials and webinars, as well as the continued expansion of in- house courses produced by the
Department of Human Resources. The Rental budget was reduced because of the department’s relocation into Government -owned premises; leaving a small
amount to cover for the cost of public consultations
and hosted seminars. Finally, funding for the Other Expenses line item is not required for the next finan-cial year. This item was used to cover the costs of the solar rebate programmes, which were ended i n 2014
with the final payments made during the previous f inancial year.
Madam Chairman, electricity is currently regulated by the Energy Commission with administrative and technical support from the Department of Energy. The current members of the Commission are:
• Mr. Michael Leverock, Chairman;
• Ms. Angela Berry;
• Ms. Leslie Rans; • Mr. Colin Smith;
• Mr. Kent Stewart.

And because of the shift over to the Regul atory Authority, I think it would be appropriate at this point to thank them for their work over the last three years for their responsibilities and for the many hours they put in looking at things like rate increases.
Madam Chairman, during the previous year,
the Department of Energy focused on reforming the regulatory regime for the electricity sector. The mile-stones that they were instrumental in either achieving or supporting were:
• The publication of the National Electricity Sector Policy in June, 2015;
• The tabling of the consultation draft of the Electricity Bill in July of 2015;
• The tabling of the final Electricity Bill in D ecember of 2015; and
• The debate and passage of the Electricity Act
2016 in February of this year.

The department held four consultation wor kshops to gather the necessary stakeholder feedback required to draft the Electricity Pol icy—a policy that
provided the sector with future aspirational targets for electricity generation and also specified a framework for how the electric utility would interact with ind ependent power producers. The Policy also defined the roles of the Regulatory Authority, the Minister, and the sectorial participants. The Electricity Act 2016, which was based on that Policy, involved feedback from i ndustry participants and the public via workshops that were held in August and October of 2015.
The work to implement this new regime has
only just begun and the department, working with the Regulatory Authority, will develop additional policies and subsidiary legislation to support these efforts.
I would like to comment for a few minutes on
Major Projects and Initiatives.
Madam Chairman, I previously stated that the
Department of Energy had been allocated an increase in funding for Professional Services and that this i ncrease was required to support the ongoing transition of electricity regulation to the Regulatory A uthority and
the initiation of other energy -related projects.
Madam Chairman, the specific projects that
the Department of Energy will focus on during the u pcoming financial year are:
• The development of electricity -related regul ations, licences and related policies to support
the Regulatory Authority as they assume r esponsibility for the electricity sector;
• The provision of technical support to the Mi nistry of Public Works for the procurement and development of a utility scale solar PV facility; and
• The development of policies and legislation
governing the fuels sector in Bermuda.


Bermuda House of Assembly Madam Chairman, it is a recognised fact that
solar photovoltaic (PV) systems offer an excellent opportunity for producing clean inexpensive energy. The challenges that these systems have faced were the high cost of the technology and the intermittency with which they produce electricity (in other words the sun does not shine day and night). With the recent i ncrease in global demand and the corresponding i ncrease in the production and volume of solar phot ovoltaic systems, the cost has steadily declined and the efficiency of the technology has improved. It is ther efore the Government’s intent to take advantage of this opportunity by considering the development of a utility
scale solar photovoltaic facility.
The potential benefits to the public are clear.
A large scale solar photovoltaic development would
reduce the amount of fossil fuel used for generating electricity to meet peak demand, it would create an opportunity for new market participants in the electricity sector, it would create new jobs during construction
and operation of the facility, and it would serve as a highly visible symbol of Bermuda’s commitment to a modern and environmentally responsible energy f uture. In addition, we believe a large scale PV facility
will help and reduce the cost of peak load power to the consumer.
Madam Chairman, the work has already b egun. The Department of Energy provided assistance to the Ministry of Public Works to engage technical consultants to assist with the development of a substantive RFP that would solicit proposals for the de-velopment of a utility scale solar photovoltaic facility on the finger at the L. F. Wade International Airport. It is anticipated that this RFP will be published during the second quarter of the Fiscal Year 2016/17.
Madam Chairman, the solar photovoltaic i nstallation will not only create construction jobs but also provide the lasting benefit of contributing positively to Bermuda’s energy mix by offsetting as much as
25 per cent of peak electricity demand. It is the d epartment’s intention to continue to support the Ministry
of Public Works by assisting with the selection process and the negotiations after the project is awarded.
Madam Chairman, any shift to new fuels or
technologies will involve substantial infrastructure i nvestment and development, and will require new pol icies and legislation to support their implementation.
New fuels, such as Liquefied Natural Gas (LNG), will
provide an opportunity to effect change in other sectors, such as transportation. The potential of being able to power Bermuda’s public transportation system with cleaner, cheaper fuels is much more feasible if considered in conjunction with the electricity sector.
Notwithstanding the LNG study that was t abled today, it is important to create a regulatory framework that creates transparent opportunities for new and credible participants.
Madam Chairman, the Department of Energy
will also continue to provide education and outreach to the public. In order to make best use of limited fun ding, the department has developed a partnership with Greenrock to assist them in the delivery of the energy -
related aspects of their Eco- Schools programme. The
department will continue to build on that collaborative
relationship throughout the fiscal year, so that duplic ation of efforts is avoided and resources are used most
effectively. In partnership with other energy industry
participants, the department will also host a second Energy Summit during the early part of the next fiscal year. A segment of that Summit will be used to intr oduce the department’s fuel sector reform initiative and provide stakeholders with the opportunity to comment
and provide feedback. The department will also continue to seek opportunities to provide accurate and timely information on energy matters, in part through the new Government portal, which is currently under development.
Finally, Madam Chairman, I would like to
thank the Director of the Department of Energy, Ms. Jeane Nikolai, for her and her colleagues’ assistance
over the past year. I think it is fair to say that it has been very busy and very productive.
Madam Chairman, this concludes my presentation of the Estimates of Revenue and Expenditure for the Department of Energy for Fiscal Year 2016/17.
I welcome contributions from other Members.
Thank you.

Thank you, Madam Chai rman.
When last I took my feet during the budget, I
called for the resignation of the Minister, and, oh, what
a difference a week makes. But I will not do that t oday. So, Honourable Minister, you are safe today.
But what I would like to talk about as we go
into the Heads relating to this Ministry, particularly the
mission, To facilitate economic growth and the creation of jobs . . . and creating an environment that is
conducive to sustain the businesses already in Ber-muda and to making our island attractive so that new
businesses can come and make Bermuda their home . . . Madam Chairman, what we have been calling for
out of this Minister and the Ministry for a number of years is an Economic Development Plan. Many of our competitors have it, many countries and states in the
United States, for example, have found great benefits
to producing such plans.
Now, before I go a little bit more into that, I
must stress that the Bermuda Progressive Labour Party recognises the importance of international bus iness to our economy. It is the premier pillar of our
1624 21 March 2016 Official Hansard Report

Bermuda House of Assembly economy. With tourism not being where it should be,
this is an industry that we must protect. We must do
all we can to maintain our regulatory lead on, and con-tinue to be nimble and able to provide an environment that not only encourages businesses to stay, but also will draw new businesses in. But —

I am speaking to the Hea dquarters of the Ministry of Economic Development,
which is (hold on one second) . . . Head 95 and the
mission of the Ministry of Economic Development Headquarters, as I stated in my first sentence, Madam Chairman.
Now as I was sayi ng, the Progressive Labour
Party continues to support international business and support tourism as well. But the question we continue
to ask, dealing with the mission of this Ministry, is
where will the jobs come from? Now, the emphasis has been on attracting new business and on interna-tional business I think the recognition has to come that this is a maturing industry. This is an industry that is
not what it was years ago and is not likely to create
. . . we are not likely to see the influx of the Class 4
physical presence reinsurers to Bermuda. And the reason why? The model has changed. Alternative capital and natural efficiencies of the mature market, combined with cost -cutting drivers that are demanded
by shareholders, mean that the large influx of capi tal
will not automatically translate into jobs, particularly jobs for Bermudians. So we have to recognise that.
We further need to recognise that international businesses are consolidating. You are seeing companies merging, we are seeing jobs being lost
and jobs being combined. So we are not seeing . . .
again, we are seeing contraction in that area. So we
have to really begin to look very seriously at economic diversification. The rating agencies have warned us that diversification is needed. It is a priority; it will a ffect our ratings going forward if we do not move on that.
But Madam Chairman, an Economic Development Plan is what is needed. And we need to begin to look at areas such as . . . and, again, I am speaking to the Headquarters the Ministry of Economic Development Headquarters, Head 95. What is our vision for Bermuda in terms of our economy? What are our goals? And what are our objectives?
Now this Ministry is, perhaps, the most important Ministry in Government. The reason why is be-cause this is the engine that draws in business, keeps
businesses. But also if we take it to its natural conclusion, it is also the Ministry that should be liaising very strongly with Workforce Development, identifying the new industries that we should be directing Bermudi-ans to, working and consulting with the other mini stries to look at how we can take our people and pr e-pare them for the economy of today as well as the
economy of tomorrow.
So if you look at something, with your indu lgence, Madam Chairman, the State of Florida has a
strategic plan for economic development. This is just
one. It could have been anyone. It could have been Singapore, it could have been anywhere. But these
are some of the things that I would encourage the
Ministry to look at in the Headquarters. We look at
things such as talent supply and education; innovation and economic development; infrastructure and growth leadership; civic and governance systems; and the (as my vision continues to fail me in my old age) quality of
life.
Now, the quality of life aspect, I am just going
to divert that for a second because one of my colleagues has called repeatedly for this Ministry, and the Headquarters in particular, to engage in a quality of life survey. And what we have seen around the
world is the use of data to be able to really address
the quality of the life of the people who live there so we can get target programmes that will address spe-cific concerns —not what we think they are, but what
they actually are.
Now, the quality of life agenda is something
that has become big. It was big under President Cli nton and it is big under the new Democrats in the United States. And they began to talk about things beyond your income and your ability to live in a coun-try, but also family time; your ability to have the support, to train, upgrade your skills; the ability to maybe
work a second job to provide things, but have the support network. And these are things that we have to begin broadening our mindset in terms of what this Ministry is capable of because that is where the world is going.
But the key factor, getting back to it, is ec onomic diversification. There was very little mention of efforts to diversify our economy. And with the focus primarily —primarily, not exclusively —on international
business and tourism, we keep asking the question,
where will the new jobs come from?
Now, we have seen over 2,000 jobs lost since
2013 and the jobs on the horizon that we have seen
have been construction jobs (which may be short -
term), but the good- paying, quality long- term jobs,
where will they be coming from? And that is the question we need to be asking.
Madam Chairman, we have been flogged,
laughed at, chastised for some of our suggestions
about economic diversification, but there is one aspect that would do a phenomenal job if we incorporated it into the Ministry of Economic Development Headquarters, and that is an Economic Diversification Unit. Now
we have heard mention of the Business Development Unit, this would go beyond that. We are looking at people with a pr oven track record of diversifying
economies. And looking at things, the range of options available to Bermuda, we cannot be myopic and li mBermuda House of Assembly ited in what we think we can do because as techno logy advances, as knowledge advances, as innov ations occur, there are opportunities for Bermuda to
once again take the lead on many, many, many initiatives.
One example is aquaculture. We talked about
the Blue Economy in many of our Budget Replies.
Aquaculture can solve two issues for Bermuda. It can
create another part of our economy to do foreign ex-change. If we do it correctly, we can produce enough fish not only to feed ourselves, giving us a better measure of food security, but also provide fish for ex-port, creating a new industry heretofore unknown in
Bermuda, at least not in modern memory. It is sustainable as one of the fastest growing food production
resources. It is one of the fastest growing food pr oduction sources in the world right now.
There are people looking now into these i ndustries. Fish farmers are looking for opportunities to
invest. This would mean looking into the regulations
that would need to be put in place to be able to set -up
this industry. It would require some work and some leg work to try and draw some of this business in, but the market is there. And this is something that, as I
said, can produce two benefits: food security, export and foreign exchange—exportation and jobs. That is the other aspect as well.
There are those who would raise issues about
environmental concerns. That is where the regu lations
come in. That is where we build an industry that is fit
for purpose for Bermuda, that meets our needs, pr otects our environment, and gets the jobs that people
are looking for.
Madam Chairman, 70 per cent of the fish we
eat is imported farm fish. So by switching that d ynamic we now have our own economy, we would
have to reduce our need to import, keeping more
money on our shores. It also does not have the detr imental effects on the local fishing industry because their 30 per cent that they provide is still protected, we
can still protect that.
Another aspect we should be looking at when
we talk about diversifying our economy is vertical farming. And I have to commend both sides of the aisle for this. Our Leader has talked about going into farming and the Premier has talked about going into farming and I think that both got abuse for raising that
issue. But the question we have had is can we pr oduce enough to feed ourselves? Can we produce
enough to drive down some of the local food costs? Can we produce enough to export? With the innov ations in vertical farming, this is an area that we should seriously be considering as part of diversifying our
product. Again, food security. Again, an ability to export a product from our shores and get some foreign exch ange going. Because of our lack of space it is a
natural fit, us growing up instead of growing out. It requires less water, less soil, it is something that with the innovations going forward we have to be looking
at.
The other initiative (and this is something that
has been in Luxembourg) is a free port. And with your
permission, Madam Chairman, I will just read [the definition of] this, “A port or an area of a port in which imported goods can be held or processed free of custom duties before re- export .”
This is now one of the fastest growing
economies for the mega- rich. It is huge, and many
countries are now looking into it. It has come across,
particularly because of the financial crisis, because there are things that maintain value —collectibles, rare
coins, stamps, art, that they enjoy having for their
value and are able to place in places like Luxembourg without having to deal with the fees of moving them around, so they can hold them.
Actually, when you look at things like the
America’s Cup Village, we have to begin thinking,
What will we be doing with this facility once the America’s Cup is over? And even if we get it the following
time around, we still have to be looking ahead, what will we be doing with these facilities that are sitting there? That is a place that could be considered for a
free port area. The past free port areas were these
drab warehouses, but now you are seeing places that are a little bit more upscale, a little bit more refined. They are becoming places to be seen by the mega-wealthy. And this is something that . . . we have the
space. We can really investigate and look into doing
as well.
Madam Chairman, tech alleys are another
form of diversification that should be examined under
the Ministry of Economic Development Headquarters. We have companies such as Google and Amazon that have hundreds of employees from India and
Pakistan who, for various reasons, sometimes are not
able to come to the United States. They are not crim inals; nothing like that. But they have issues with their visas and things of that nature. There is a potential to build in our economy a place for them to do this work.
So you are adding more bodies to our shores. You are
adding people who will be renting apartments, who will be spending money in our grocery stores. But they are serving a very specific purpose that can also lead to the facilitation of training and development of this industry for Bermudians to participate in. These are
some of the aspects that we can look at.
Coding, expanding into greater coding. The
restrictions on certain aspects of coding in the United
States that we (due to the newness of it) simply do not have the restrictions, which allows a wider brand, a wider range of participation, which is something we
should examine.
Bandwidth, we can even use our massive
bandwidth to market to telecoms for research and development.
Tying into the America’s Cup, which goes to
another one of the Heads, Madam Chairman, the
1626 21 March 2016 Official Hansard Report

Bermuda House of Assembly superyacht industry, if I remember the number the
Minister said, we anticipate over 80 superyachts coming during the America’s Cup. At present, Bermuda is not viewed as the spot for superyachting. The facilities are not adequate. We are viewed primarily as an
emergency stop. But this superyacht industry is a huge opportunity, and particularly, drawing the attention of the America’s Cup, putting the spotlight on the
world. That number, the 80- plus that the Minister
cited, is larger than the amount that New Zealand was looking at during the same period.
Now, New Zealand when they went to the
superyacht industry, they estimated that each one
contributed a million dollars to their economy as a
combination of expenditure on tourism by the owners and crew, berthage, marine services, et cetera. This is something that, again, diversifying the economy, enhancing our product, creating new ways to get money in . . . opportunities in.
And, Madam Chairman, online gaming, we
have talked about this for some time and, again, this has been ridiculed. But we firmly believe on this side that Bermuda . . . we have to capture into that mindset
that Bermuda had in the past of innovation. When
people thought about something like selling Easter
Lilies a hundred- plus years ago, we did it. When buil ding sloops, we did it. So now this innovative mindset, at this stage we should not be laughing at anything that can potentially bring money to our shores.
So let us look at online gaming, Madam
Chairman. We have Gibraltar, Guernsey, Isle of Man, they are doing it, creating jobs. The Government is collecting revenue from it and you are seeing the benefits —a $35 billion worldwide industry. Gibraltar
collected $80 million in tax revenue. Even if we had an industry a fraction of that, you are looking at money,
you are looking at jobs, you are looking at foreign exchange. These are things that we have to be purs uing. We have to.
My Shadow Finance Minister has spoken
about FinTech, again, another aspect. But as we look
at the Ministry of Economic Development Headquarters, and particularly I am going to move to the small business development. Part of the One Bermuda All iance’s platform was a pledge to support small bus inesses. And I may quote, Madam Chairman, “Support small businesses by directing 20% of all government
goods and services [spending], about $80 million a year—to them.” [ The Change Bermuda Needs ]
And I would have hoped that during the brief
there would have been some mention of this process
of diverting government funds towards smaller bus iness.
Now, I remember that in a previous incarnation the One Bermuda Alliance had talked about an Economic Empowerment Unit which would be specif ically tasked with probably taking the role of what SAGE did, going through government, finding aspects of government that can be farmed out, aspects that could be contracted out. But in this economy with so
many job losses, many Bermudians are being forced to turn to entrepreneurship. And what we would like to see as a part of the Economic Development Plan is a look towards creating a red carpet treatment for small business, for new entr epreneurs.
What would that look like? It would be looking
at and reviewing with the Ministry of Finance the taxes that new businesses face, the things that impede hi ring of staff, the things that slow down the process, it would be looking at the policies, the paperwork, the
regulations, every aspect, to give that person who has that $11,000 or $12,000 in their pocket (from their r edundancy) who has a business idea, a solid plan . . . they can get moving as quickly as possible, respons ibly, as quickly as possible.
But a couple of the ideas that we can look at
for expanding entrepreneurship are larger guarantee amounts from BEDC to support business loans as the
legislation only allows a maximum of 50 per cent. Part
of the challenge a lot of people are finding now is ge tting access to capital as the banks have not —

POINT OF CLARIFICATION

Dr. the Hon. E. Grant Gibbons: Madam Chairman,
perhaps, just if I may make a point if the Honourable Member will allow me? BEDC does not come under this Ministry, it
comes u nder the Ministry of Home Affairs. So, small
business is an entirely separate ministry. I do not want to interrupt the Honourable Member’s flow, but I am not really able to speak to that.

Apologies, I am guided by
your wisdom, sir. But I do think that that was a mi stake to move that out of Business Development and I
think it was a mistake because that is a level of sy nergy that should be combined and united.
Madam Chairman, we are going to go over to
Head 89, Energy. Madam Chairman, in 2011 the Bermuda Pr ogressive Labour Party produced a White Paper on Energy. And when we look at the Minister’s brief, many of the initiatives seem to have been carried forward through the Ministry. There are two aspects that
I think we should focus on, long- term energy security
. . . long -term energy security. We are extremely over -
reliant on fossil fuels, and I think that it is good that we
are looking at moving into various other aspects of reducing that reliance. But there were several benc hmarks put in place. We have to go back and look at these benchmarks and begin making sure that we are starting to move towards them to becoming more en-ergy efficient, more independent of fossil fuels, [make sure] our buildings are becoming developed with en-ergy efficient models —that sort of thing.


Bermuda House of Assembly But most importantly, most importantly right
now in this climate an industry is growing to surround
this new direction that we have been laying out. And part of it is . . . Look. We can look at careers in energy
auditing, people who go into buildings and evaluate the energy efficiency of a building. We can look at en-ergy management, installation of small - to medium -
renewable energy generation systems. When we move toward electrical vehicle systems we are going to need people to be able to repair these, to be able to maintain them. So there is a wide spectrum that I think has not been fully given the attention it deserves in terms of how we can move from just energy efficiency
and spending less electricity to actually producing jobs
and producing opportunities.
Madam Chairman, I do have a few questions
for the Minister, if I may go back here . . . just give me
one second, Madam Chairman.
For Head 89, the Ministry of Economic Development Headquarters . . . Head 95, sorry. A grant of $4,125,000 was pledged for the BDA. And if I may refer to the notes, as a public/private partnership the BDA also generates funding contributions from the private sector business community. The question I
would have for the Minister is, is there any plan to a llow this to become financially independent as the
Bermuda Tourism Authority is eventually looking to head towards?
Moving on and staying in the same Head, the
agency initiated the Bermuda Abroad Programme using LinkedIn (which I think is impressive) as a network
for Bermudians working abroad, or former Bermuda residents wishing to connect with the Island and share ideas and intelligence. The Ministry should be looking at some of the programmes that have been put in place in other ministries of economic development.
Mexico has one, [so do] a few other countries. But they are actually tabulating the talent overseas and trying to keep in touch with them and monitor and track them and make sure that they are being pos itione d to come back home, share their knowledge and
expertise, and assist in the creation of new industries, in the development of new industries, new economies. That is the type of thing we need to look at. We need to be able to tap in and bring people home.
If I may digress, Madam Chairman, there is a
gentleman in our central committee, Mr. Christopher.
For years he has pushed for an overseas untapped
resources programme to tap into Bermudians in a structured manner, an aggressive manner that goes out and finds them, assesses their skills and works in partnership with other ministries to bring them home to get them involved in our economy again, and get
their ideas contributing to the country with the expertise that they have earned overseas.
Madam Chairman, also staying under this
Head, the America’s Cup, I would like to take this op-portunity to express on behalf of my colleagues our support for the America’s Cup. And I think that this point cannot be stressed enough. The Bermuda Pr ogressive Labour Party supports the America’s Cup. We want it to succeed. We want it to exceed expect ations. And we want to show the world that Bermuda can do this better than any other country ever has or ever will.
Our main issue has always been that there be
the full range of trickle down through the economy that there can be, that everything is open and transparent, that everyone who has the will, the skill, and the ability has a chance, a fair shake to get a piece of the pie. I think that is the concern of many Bermudians. And I would encourage the Ministry in their partnership with
the America’s Cup to continue to highlight and pr omote the opportunities available to Bermudians.
One of the issues I know that came across is
that because of racial history sailing is not a sport that
has the range of diversity and produces a range of
people with knowledge of the sport. So, of course,
there will be some issues in terms of getting people
involved. But through the youth programmes we see an opportunity to be able to expand that diversity in
this field so that, perhaps when the next America’s Cup comes back, we see some more diversity on the
board, some more diversity in the planning, more diversity in the working, so people who may not have originally grown up in a sailing background can see opportunities for themselves in the industry.
I must say, again, that it is exciting. It is an
exciting prospect for Bermuda to be on display at that
level and for the potential of how it can reach into our
country. And it is critical that the Ministry and the
Government as a whole avoid the mistakes of past jurisdictions. And part of the challenge I think . . . and
this is the nature of the politics, the blending of politics into businesses. Sometimes we get in the habit of
over promising and under del ivering. I think that it is
critical with the America’s Cup because we want the
success and we want people to have realistic expec-tations.
Continued communication, continued transparency, continued outreach to the public, continued promoting of the opportunities . . . and I am not talking
about just showcasing people that received opportuni-ties. Push the opportunities as far as they can. Let us get our people excited and feeling involved with the process and that there actually is a role that they can
play.
Madam Chairman, I am going over now to the
Department of Telecommunications, Head 46. And
while I do not have much to say on that department as a whole, I must take note of on page 5 of 16, [it states]
that they will review the state of over -the-top services
such as Netflix, WhatsApp, Skype in the Bermuda market and the impact of those services.

I am sorry. Where are you?

1628 21 March 2016 Official Hansard Report

Bermuda House of Assembly Mr. Jamahl S. Simmons: I am in the Ministry of Ec onomic Development, Department of Telecommunications Head 46, page 5 of the brief, page 5 of 16 in the brief in that section. And just for the listening audience I will repeat, r eview the state of over -the-top services,
e.g., Netflix, WhatsApp, Skype in the Bermuda market and the impact of these services.
We are at an interesting time in our history.
Bermuda, like many countries, is now seeing the i ntroduction of competition in a way that is almost . . . it
is difficult to manage, it is difficult to regulate because it is so new. So there are people who no longer have
house phones —they have a cell phone with Wi -Fi in
their house and they use WhatsApp. You can get Skype on your phone, so there are people who . . . so
we are seeing industries that have stood over a hu ndred years that are being radically transformed. Net-flix, for example, is now taking the place of the old video stores for the most part. There will come a period of time in our lives where there will be no more
video stores that you go down to, which means that there are jobs that will be lost permanently that will not exist anymore.
So when you look at something like
WhatsApp, Netflix, Skype, the key is how can we le verage this technology to create opportunity and create new innovations that benefit us without regulating it out of existence, without being in a mindset that says
it is competitive and we must stop this, we must block it, we must regulate it, we must change it? And I think
it is very important. This review is important.
Netflix. I know many people who have Netflix,
they do not own cable anymore, which affects CableVision and WOW. I know many people who will go online and they will download a movie. They are no longer going to the video stores. They are no longer
going to watch those movies on CableVision. It is a
major challenge in terms of the old brick -and-mortar
buildings and how it will impact them. And we need to review how this will affect us going forward, but not with an interest to restricting it, overregulating it, or
attempting to find some way to stifle it because of the
competitive nature it has on our economy. We must be responsible; but we must use these technologies and view them as an opportunity —a great opport unity—to create new innovations in our economy that
we have not even thought of yet.
Madam Chairman, I turn now to the Registrar
of Companies Department, Head 39. And I just have one question relating to the electronic registry system, which is going to be replacing the old system. The Registrar of Companies has been allocated $250,000 in capital funding for Fiscal Year 2016/17 to acquire
this new system. The question I have for the Minister is, has this been put out to tender? And could you ex-plain a little bit about the process in terms of the awarding of this or the decision, if it has not been
awarded as yet, for that contract? So, Madam Chairman, just to conclude my
oh-so-brief remarks, I encourage the Minister. His job
is perhaps one of the most important jobs, bringing jobs and business to our shores. We renew our call for an Economic Development Plan with goals, with strategies, with things we can attain.
When we look at performance measures we
must take the bold step of saying, How many bus inesses can we attract? How many jobs will they pr oduce? And set benchmarks where we can look as
busin esses do. Set benchmarks so we can be held
accountable for them, that our people can know where we are going. And I look . . . when I talk about ec onomic development plans, we have the Tourism Plan that has been put in place that is something that will operate over a period of time regardless of who is in charge. Our economic plans must be that far -reaching
so that we are able to have set goals that are not go-ing to be radically upended by a change of Gover nment.
One of the things I think we have learned as a
team that has been in Government and out of Gov-ernment is the importance of a stable business env ironment, a stable but nimble business environment.
And we have to begin planning long- term.
And so I commend my colleague who began
this overall debate as a response to the Budget with
his Vision 2025. That is our attempt to begin to lay the groundwork of our idea of what this plan would look like. But diversification . . . if there is nothing else we
are doing, we must begin to pursue diversification. It is
a national priority.
And Madam Chairman, with those brief r emarks I take my seat.

Thank you.
Would anyone else like to speak to this?
Okay, Minister?
Dr. the Hon. E. Grant Gibbons: Thank you, Madam
Chairman.
And I thank the Honourable Member for his
comments and suggestions.
Perhaps what I could do is just start by talking
about the issue of an Economic Development Plan.
Sometimes it, perhaps, does not come through as strongly as it should. But if the Honourable Member
thinks a little bit about what I said over the course of
about two hours, a lot of it is intrinsic to a plan. I spoke
for some time about the Bermuda Business Develo pment Agency in terms of the plan that they have for growing business. They have four different areas that they are looking at from risk to asset management to
trusts to what they refer to as international commerce.
And each of those is fleshed out with sort of a more detailed plan as to what they are trying to accomplish during the course of the year.
I think it would be fair to say that the work that
the Government does with the Economic Develo pBermuda House of Assembly ment Committee has a very clear plan as to what infrastructure projects need to be advanced, what areas
need to be looked at, whether it be tourism infrastruc-ture or whether it be some of the areas we were tal king about earlier today with respect to LNG. All of these involve a lot of capital infrastructure and quite a bit of investment in terms of jobs.
The America’s Cup project has a very clear
plan to it in terms of accomplishing, obviously, the
hosting. But as I said earlier, there are some 16 different committees which are looking at effectively pla nning and making provisions to be able to deal with everything from security to medical services to tel ecommunications , whatever. All these things involve
plans. There is, indeed, a group on one of those committees looking at legacy and future develop-ments stemming from the America’s Cup. That is chaired by an individual, and the whole point of that is to create plans that will take what I think is an extraordinary opportunity over the next three years and make
sure there is a legacy component to that.
The Honourable Member talked about superyachts. There is a very clear sense that if we can get, as we have said, something on the order of 80 or so
superyachts here that that ought to be the foundation
for a future business in terms of servicing the super-yachts, attracting more superyachts to our shores. There is a group right now . . . in fact, Government is looking for a superyacht policy, because clearly the current policy that has been in place for visiting ships
does not fit very well with what we need to do to bring
these superyachts back on a regular basis. There is a plan in terms of the South Basin to look at ways to
berth and service superyachts there for the America’s Cup, but going forward as well.
I think the Honourable Member would be
aware that going back a number of years WEDCO had a plan to . . . with their infill project, which was in
fact started conceptually by the former Government, to have a servicing facility for superyachts. So, all these are part of existing plans.
I think it is very tempting to say we want a
book or a piece of paper, or whatever. But I would like to say to the Honourable Member that I have been involved with a lot of strategic planning over the years and oftentimes it is helpful. But, at the end of the day, whether it was the Commission on Competitiveness in
the early ’90s or some of the other efforts that have
been made to diversify, oftentimes what you find is
that when Government tries to do this, it is not terribly successful. There is a very simple reason for that, b ecause a lot of the innovation and initiatives that need to take place primarily come out of the private sector,
which is why the Bermuda Business Development
Agency has been set up in the way it has. There is
only one Government representative on there, a very capable representative I might add. But the other members of the board are very actively involved in business. A good example of that would be the recent
addition of Fiona Beck, who has a lot of experience in telecommunications and is a technology expert. And part of what she is looking at . . . in fact, there was an
interesting piece in the Royal Gazette very rec ently
with her addition to the Bermuda Business Development Board looking at ways in which we could essentially leverage some of our bandwidth, our cable
communications.
The Honourable Member will remember that
in the brief that I went through I talked about a cable zone. And we think that there are a lot of additional opportunities to land other, I will say, transatlantic or
telecommunications cables here just because of Bermuda’s location. But we think it would help if we could create essentially a zone which would make the whole permitting and access a lot more feasible. So there is money in the budget for Headquarters, actually for Telecommunications, for the coming year to be able to
do that. But a lot of these issues come down to trying
to see whether there are additional areas for ICT [I nformation and Communications Technology] and other things. And people like Fiona Beck are probably best placed to do it.
I think to create an artificial unit with people
that are used to developing technology is an interes ting idea, but it is yet another committee, and I think we already have enough of those in place. What we need are ideas coming out of the private sector and working with Government very closely, which is the
way our international business developed, working
with Government to be able to figure out how to facil itate that.
My own experience over some 30 years suggests that Government is not terribly good in terms of
creating opportunities. It is really business and the
private sector that creates that. We have to be very
good listeners in terms of trying to find out how we
can facilitate and move those things forward. But whether you are talking about the America’s Cup, whether you are talking about the various sectors that
the BDA focuses on, whether you are talking about
some of the initiatives that we have talked about from a Headquarters’ perspective with the Regulatory Compliance Association, which is creating scholar-ships in partnership with them —150 scholarships —
looking at opportunities for Bermudians, all of these
things, I think, are ongoing and they are . . . there are
plans in all the various parts and sectors of this Mini stry of Economic Development. The Ministry of Finance
is also looking at these areas as well.
I think it would be fair to say that the Honourable Member will be surprised to hear that I do not
share his view with respect to the insurance sector.
For example, his sense that it is unlikely there would be any more Class 4s is completely contrary to what
has actually happened. In 2015 there were four new Class 4s created. The insurance industry goes
through cycles. I have seen it over many, many years.
1630 21 March 2016 Official Hansard Report

Bermuda House of Assembly They are going through what is effectively a consol idation cycle now, but they are doing that because that
makes sense to them from a business perspective in
terms of what they need to do to remain competitive and the rest of it.
There are economies of scale there and we
have seen that. Bermuda actually has been quite
lucky, I think, in terms of what I will call the amalgam ations that have taken place. Most of the impact has
been in other places. Yes, there have been some job
losses here, but I think as a consequence a lot of those companies are now stronger.
We have seen extraordinary growth and development in the insurance- linked security sector. I
read off stats suggesting that Bermuda has well in excess of 60 per cent of that entire market, to such a degree that London and other markets are trying to sort of move in on that. Some will say that insurance-linked securities do not create jobs. That is simply not
true. They are creating jobs in everybody from Nephila
to a lot of the insurers here have taken on the princ iple, If you can’t beat them, join them. So Nephila,
Horseshoe, and a lot of others are creating jobs in the insurance-l inked securities area. And the very nice
thing about this is . . . this is obviously a real change and real innovation in the sector and the really nice thing about this, Madam Chairman, is it is happening in Bermuda. It is not happening somewhere else where we are losing market share or we are losing the sense of innovation, it is going on here. And also I
think we have been very, very successful in terms of
what we have done there —a great partnership with
the Bermuda Stock Exchange as well.
In terms of coordination with Workforce D evelopment, certainly there are areas where it makes sense, where we are looking at essentially trying to
create opportunities. I mentioned the Regulatory
Compliance Association. We had over 130 people show up as a consequence of this partnership with
Bermuda College and the BDU and Regulatory Com-pliance Association and the Curriculum Committee
chaired by George Thomas.
Compliance, as you will know, Madam Chairman (as you are in the banking industry), is a growth
industry if there ever was one. I look at it in the insurance sector, in the funds sector, in the financial ser-vices sector, in the legal sector, in the trust sector —it
is a huge growth thing. That is an area where we have created opportunities now through this partnership
with the RCA for young Bermudians who have a col-lege degree. In fact, we are looking to see whether those coming out of high school —it might be a pat hways thing—might be able to get involved in this sector as well. But it is clearly . . . it pays well, it is a good
opportunity, and it gets people involved in a lot of
these financial services areas. So I think it would be completely wrong to suggest that we are not inter-ested in diversification. One of the differences, perhaps, between this
Government and the last Government is we do not talk about stuff until we think we are far enough along where something is actually going to happen. So I can speak very categorically and say that the Business Development Unit within the Ministry has been looking at a number of diversification ideas over the last year.
The Honourable Member mentioned the idea
of a free port. We have been looking at that for well over a year right now. We are making some progress there in terms of art. From a free port perspective, there are free ports not only in Luxembourg. The original one was in Geneva in Switzerland. There is a
huge one in China right now. There are some free
ports within the United States, not that visible. But I think we are looking at ways in which that might be a possible, as it were, extension for high net worth indi-viduals who wish to put . . . he referred to them as
collectibles. But what we are really talking about is
artwork and other items in Bermuda. But we are not
far enough along at this point to say whether that will
actually be successful or not. We hope it is because we think it will create jobs; it will also create construc-tion and infrastructure as well, which might be useful
for Bermuda.
In terms of aquaculture and vertical farming,
all I will say about aquaculture is it seems to work
pretty well in other places. Our own efforts at this, going back to Erling N æss, with fish farming by the
Causeway, it has not been quite as successful. And I
am not really sure why that is, I am not a biologist. But
there have been plenty of opportunities from scallops
to other farmable fish. It does not seem to have worked out terribly well here. It may be a question of the cost of labour, it may be a question of the fact that our water temperatures change so dramatically.
One of the problems that some of the original
studies had was fish did fine during the summer, but in close proximity during the winter when they were more stressed, they tend to develop viral and other kinds of diseases and they died. So there are certainly
issues there. I do not think anybody is saying we
should not do it. But I think it really comes down to . . .
is there a private sector driver here? Are there people out there that think they can make money doing this? We have seen a couple of attempt s at it, but for wha tever reasons they have not worked out.
We have seen some people come into Bermuda and talk about vertical farming. There have been some fairly interesting ideas there. I am not sure that is ever going to be a huge sector here, but I think we would all agree that it might be helpful in terms of looking at ways to provide hotels, restaurants, and
certainly grocery stores with additional products.
There are certain things like lettuce and other things which do fairly well. I would say that Tom Wadson and
some of the other people that are here have been looking at various ideas on that. So nobody is saying it is not something that should not be looked at.


Bermuda House of Assembly With respect to the whole issue of small bus iness, as I said in my sort of intervention , that really
falls under a separate ministry. It is basically the Mi nistry of Home Affairs. The Bermuda Economic Development Corporation, which is the Small Business D evelopment Corporation, clearly is looking at a lot of ways. They have done a lot of programmes to help
entrepreneurs —training sessions, hands -on, and the
rest of it. And as the Honourable Member will be
aware, the America’s Cup, the ACBDA, and our own America’s Cup Office worked very closely with the Bermuda Economic Development Corporation to not only help select some of the vendors for the Front
Street America’s Cup Louis Vuitton Series, but also
they have run programmes which help the potential entrepreneurs to actually start a business and to find opportunities within the whole America’s Cup (sort of)
umbrella operation. So I would say there were some 59 vendors involved in the Louis Vuitton Series. I think
we will see even more of that happening as we get
closer to the Series in May and June of 2017.
There also have been some very succes sful
entrepreneurs who have worked with the America’s Cup, not widely known, to brand America’s Cup on
certain products. And I am not going to go any further
than that. It is up to them to announce those. But these are young Bermudians who have developed very successful copyright licensing arrangements with
the America’s Cup and they seem to be off to a pretty good start there.
As far as the issue of online gaming, I think
we have commented on that before. I would say to the Honourable Member that the degree to which I have read about it suggests that some of the online gaming in the last couple of years in the United States, with respect to the states getting online gaming, the results
have been rather disappointing. I am not sure why
that is. I have not had time to look at it. But obviously we have a very different market here than Gibraltar or Malta in terms of what they are doing. We are much more US focused. And the data that I have seen su ggests that those who launched online gaming in the US, some of the states like Delaware, New Jersey
and others, have had wild expectations in terms of the revenue that it would produce, both for those who were setting up the online systems, but also the state tax coffers, and they were not as successful, at least
to date, as they might have expected. I am not sure
quite why that is, but I would suggest that maybe this is an area that might be more appropriate somewhere else. But I am not sure that Bermuda is the best site for it, particularly given some of the reputational is-sues and the fact that I think the Federal Government
in the United States still takes a very jaundiced view
towards online gaming as well.
The Honourable Member asked me some
questions about the Energy sector. He referred to the White Paper in 2011. Yes, there were a number of
metrics in there looking at various approaches to the degree to which we use alternative sources of energy,
the degree to which we are reliant on fossil fuels. I
think the White Paper was widely embraced when it was brought in. But that was back in 2011 and a lot of that information and those goals are very, very dated. In fact, I remember debating it when the current O pposition Leader, the Honourable Member, was the
Minister responsible for that. I think the uptake in res idential solar was extremely, what I will call, optimistic
at that time and has not panned out to the degree that I think we would have liked.
However, we feel very strongly, which is why
the Department of Energy has been working on this,
that with a change in regulatory structure with opening
up the generation sector to competition, which is the whole point of the Electricity Act, that we will see a lot more of this. And I think a good example would be there has been a lot of interest, particularly locally ,
with those who are currently putting in PV systems
about the RFP that will come out as we said probably
in the third quarter of this year with respect to provi ding a utility scale solar PV facility down at the airport. We think, as we have said, that we can get something on the order of 25 per cent of our peak demand out of
that. That would be a huge contribution to shifting us from fossil fuel use to renewable energy. And we still have a ways to go as far as storage which would make the renewable much more useful because if you can store the energy you can use it at night or you can store the energy when it is windy and you can use it
when it is calm. You cannot do that very effectively
although battery storage is improving significantly. That is certainly something that will happen going for-ward.
And I think if anybody cares to look at the
Electricity National Policy Paper we did, you can see
going out a number of years that there are provisions
in there not only for renewables that we are aware of, like wind and sun, but there is also a provision in there
for renewables that would use the delta . . . or the di fference between hot and cold water at different ocean
levels as well. There is a pilot project going on now. I
think it is Montserrat, I think —

[Inaudible interjection]

Dr. the Hon. E. Grant Gibbons: Okay. I cannot hear
from here, but I know that it begins with an “M,” I am pretty sure.
But it is an interesting project. It is a pilot pr oject so it is still a ways away, but I think Bermuda is ideall y placed to be able to move into that.
In the meantime, obviously we tabled a White
Paper . . . sorry, we tabled essentially a consultants’ report today on liquefied natural gas. We think this will also be very useful in terms of the bridging option over the next 10 or 15 years or so while these renewable —
whether it be solar, wind or whatever —start to sort of
kick in here to essentially reduce our carbon footprint
1632 21 March 2016 Official Hansard Report

Bermuda House of Assembly and also, we hope, reduce . . . and the report said
somewhere between 15 per cent and 44 per cent of
the cost of generating electricity. So we think that will
be a real benefit for the consumer as well.
But again, this needs to be private sector
driven. This is not Government investing in this stuff; it needs to come out of the private sector. Go vernment
facilitates and makes an appropriate environment for that.
The Honourable Member did put a couple of
questions to me with respect to the Bermuda Bus iness Development Agency. He noted the fact that the BDA over the last couple of years has got an increasing amount of its revenue from the private sector. It hopes to raise over $500,000 in this coming financial
year from the private sector. He asked, Will the BDA
be financially independent at some point? All I will say
is I will hope so. But at this point it still is raising probably close to 80 [per cent] to 90 per cent of its
revenue from Government. So we hope in time that it will become increasingly less dependent on Gover nment, but at this particular point it is a very good pr ivate/public sector initiative.
We have a good working relationship with
them. They clearly have a good handle on what the private sector thinks are opportunities and we have worked very well, whether it is the Registrar of Com-panies, the Business Development Unit, the BMA, the
Ministry, working with them and working with their di fferent focus groups to try and target in on everything
from whether it be captives in Canada to sort of gro wing the trust area. I mentioned numbers about quite
significant growth in the number of employees in the trust area. I think it is from about 200 . . . I should not
guess, but it is basically . . . since 2013 about another
110 new jobs in the trust area, from what we can see,
at a minimum based on some of the information we
have gleaned from that area.
The Honourable Member also asked about
LinkedIn and noted the Bermuda Business Develop-ment Agency’s project to try and recruit, even though
they are still overseas, those Bermudians that are
working in sectors in financial services or other sec-tors where there may be business opportunities they
hear about or they may help to essentially pass the word on what Bermuda is doing to the larger compa-nies they may be working in. I think it is kind of almost
an alumni association because there are also me mbers that have worked in Bermuda before who are not
Bermudians, but may have been here for a number of years, who have a warm place in their heart for Ber-muda but who are keen to see it succeed. So we are trying to tap into that and that is certainly a project that
has been used by other business development age ncies in other countries as well, so it is not necessarily
unique to Bermuda, but I think it is a real strong r esource and one that the BDA clearly has been wor king on. We have got a very active group, for example,
in New York. A lot of them are well placed in some of the legal firms, the accounting firms and some of the asset and fund management areas. So they are very good in keeping their ears to the ground, recognising
opportunities, telling us occasionally, You’ve got to be
at this particular conference or workshop, or whatever
else. All of that is very good. They also help to get
conferences here which help our tourism and hotel product as well.
The Honourable Member asked about tabulating talent overseas with an effort to bringing them home. I know a number of people are thinking about
that. I am not sure we have a formal effort to the degree we need to in that area. Clearly, I think a lot of companies follow young Bermudians who are over-seas getting degrees and that sort of thing, but I am sure that is something that we should have a look at.
I will just say that, and I can speak personally
to this as well, I do not think it is a bad thing for young Bermudians to go and work overseas. I think it is a
very good thing, in fact, because Bermuda is very in-ternational in terms of the kinds of services it provides, whether it be tourism or international business or
other services. So to have young Bermudians finish
their college degree and work in Lond on or Paris or
New York or DC or San Francisco is excellent. They learn how the other half lives.
Certainly one of my own children is now in
Shanghai, for example. I think this kind of experience
working overseas, learning how large entities and organisat ions work —they could be for profit corpor ations or they could be NGOs —and having them come
back to Bermuda is an extraordinarily useful thing. So it is not always a negative that young Bermudians are going overseas. I think, and I would agree with people
who have said this, that it is very nice to attract them
back at a certain point. But to have them gain the experience, particularly with some of the businesses we have here from overseas, is extraordinarily useful as well. It contributes to their growth and when they
come back they have experiences and things which
are very, very useful.
How much time is left, Madam Chairman?

You have about two minutes.

Dr. the Hon. E. Grant Gibbons: Two minutes, okay.
Let me just finish off by saying the H onourable
Member did comment on the issue of making sure . . .
he used the words “trickle down” (I would not use those), but the degree of exposure of young Bermudi-ans to the America’s Cup Programme. I talked about
almost more than 1,000 students have alre ady been
touched by the America’s Cup through the Endeavour
Programme, through school programmes, or whatever else. So there is a really very large effort to try and get young Bermudians, because of our sailing heritage,


Bermuda House of Assembly involved in this and not just in terms of people who
want to sail.
Not everybody wants to sail. I do not sail.
Other people do not sail. But there is an extraordinary
interest in some of the technology, the engineering and the excitement involved with this America’s Cup. And through the Endeavour Programme they are doing that in the STEAM —the Science, Technology, E ngineering, Art and Math—that is going into the schools
to get kids excited about these science- based areas
because that is really what drives a lot of this, it is not just the sportsmanship and the athletics.
And, of course, we will have an America’s
Cup Red Bull Youth Team in 2017. So we will have a home team racing in the AC45s during that May/June period. So that is extraordinary as well. So everybody will have somebody else to cheer for too.
Madam Chairman, I think I have touched on
most of the issues. Thank you. I do not know if we are
there, but I will move the Heads if you would like me
to.

It has been moved that the Heads be
approved.
Is there any objection to that motion?
No objections.
Agreed to.
[Gavel] [Motion carried: Heads 1, 2, 5, 43, 51, 84, 96, 59, 72,
97, 18, 19, 12 and 67 were approved and stand part
of the Estimates of Revenue and Expenditure for the year 2016/17.]

Hon. E. T. (Bob) Richards: Thank you, Madam
Chairman.
Madam Chairman, now I would like to move
that the Current Account Estimates, the Capital D evelopment Estimates, and the Capital Acquisition E stimates be approved.

It has been moved that the Estimates
be approved —the Capital Estimates.
Is there any objection to that motion?
No objection.
Agreed to.
[Gavel]

[Motion carried: The Current Account Estimates, the Capital Development Estimates and the Capital A cquisition Estimates were approved and stand part of
the Estimates of Revenue and Expenditure for the
year 2016/17.]

Hon. E. T. (Bob) Richards: Madam Chairman, I
move that the Estimates of Revenue and Expenditure
for the Financial Year 2016/17 be approved.

It has been moved that the Estimates
of Revenue and Expenditure for the Financial Year
2016/17 be approved.
Is there any objection?
No objection.
Agreed to.

[Gavel]

[Motion carried: The Estimates of Revenue and E xpenditure for Financial Year 2016/17 were considered by a Committee of the whole House and passed.]

Hon. E. T. (Bob) Richards: Madam Chairman, I
move that the approval of the Estimates be reported
to the House.

The Chairm an: If there is no objection to the motion
. . . then agreed.
[Gavel]

Hon. E. T. (Bob) Richards: Thank you, Madam
Chairman.

[Pause]

House resumed at 9:01 pm
1634 21 March 2016 Official Hansard Report

Bermuda House of Assembly [Hon. K. H. Randolph Horton, Speaker, in the Chair]

REPORT OF COMMITTEE

ESTIMATES OF REVENUE AND EXPENDITURE
FOR THE YEAR 2016/17

Any objections to that?
There are none.
Minister.
[Motion carried: The Appropriation Act 2016 was read
a third time and passed.]

MESSAGE TO THE SENATE

APPROPRIATION ACT 2 016

Hon. E. T. (Bob) Richards: Mr. Speaker, I move that
the following message be sent to the Senate. And the
message is:
“To the Honourable President and Members
of the Senate: The House of Assembly has the honour to forward herewith the undernoted Bill for the concurrence of your House, the Appropriation Act 2016. Copies of the Estimates of Revenue and Expenditure
for 2016/17 are also forwarded for the information of your House.”

Are there any objections to that?
There are none.
So the message will be sent to the Senate.
Thank you, Minister of Finance.
Hon. E. T. (Bob) Richards: Thank you, Mr. Speaker.

[Pause]


Bermuda House of Assembly The Speaker: All right the Chair will now recognise
the . . . it looks like the Minister of Finance again.

Hon. E. T. (Bob) Rich ards: Yes, sir.

Order No. . . . but first, I should have
indicated that Order No. 2 is carried over.
Order No. 3 in the name of the Minister of F inance.
You have the floor.

BILL

SECOND READING

LAND TAX AMENDMENT ACT 2016

Hon. E. T. (Bob) Richards: Thank you, Mr. Speaker.
Mr. Speaker, the Government wishes the
Honourable House to give consideration to the Bill
entitled the Land Tax Amendment Act 2016. It is noted as “(No. 2) Act 2015” on the Order Paper, but we are in a new year so—

It should be 2016.
Hon. E. T. (Bob) Richards: Yes.
This Bill provides for revised tax rates for var ious annual rental values or ARV bands.
Mr. Speaker, in addition to the Ten Commandments, in Bermuda the 11
th Commandment has
been the price of Bermuda real estate can never go
down because there is so little of it and they aren’t
making any more.
Since the global financial crisis and economic
recession of late 2008, early 2009, the Bermuda
economy weakened considerably. Statistics indicate some five years of continuous real declines in Bermuda’s GDP. Banks curtailed real estate financing, employment dropped, and there was an unparalleled
exodus of companies and employees from Bermuda.
This had an unprecedented negative effect on every sector of the economy, the property market in lar,
which had experienced an almost uninterrupted 70 -
year inflationary bubble. The peak of the market and a sharp decline in rental and capital values occurred in
2008, with some property types being hit particularly
hard. In other words, the bubble in the Bermuda property markets has deflated.
Mr. Speaker, Honourable Members are aware
that the Land Valuation Department conducted their quinquennial revaluation of land, after which the 2015
Draft Valuation List was produced. This Draft List is
the result of each non- government housing unit in
Bermuda being appraised and re- valued by Land
Valuation Department staff. The Draft List, or ARV List, (as it is sometimes called) confirmed the widely
held opinion that rental values in the open market had
fallen between evaluation date of December 31, 2009 (upon which the current 2009 Valuation List is
based) —

Just a minute, Honourable Member.
Honourable Members should know whenever
you cross that bar, you bow to the Speaker.
Thank you.
Carry on.
Hon. E. T. (Bob) Richards: Okay, I will start the se ntence again.
The Draft List, or ARV List, (as it is sometimes
called) confirmed the widely held opinion that rental values in the open market had fallen between evaluation date of December 31, 2009 (upon which the current 2009 Valuation List is based) and the July 1,
2014 Valuation List (upon which the 2015 Valuation List is based).
The residential assessments on the whole are
seeing ARVs below their 2009 assessed lev els of
rental value. The segment most affected has been the executive properties, particularly the larger units. But there has been uniformity about the changes —there
has been no uniformity —about the changes in ARVs.
Mr. Speaker, further information on t he ARV
rental is as follows:
The 2015 revaluation resulted in a decrease
in the total ARV of residential properties of $1.108 billion to $930.56 million, an overall decrease of 16 per cent.
The change in ARV values range from a decrease of 39 per cent to an increase of 92 per cent:
• 26 units, or less than 1 per cent, experienced
an increase in ARV of between 2 and 92 per
cent;
• 45 units, or less than 1 per cent, experienced no change in ARV;
• 779 units, or 2.5 per cent, experienced a d ecrease in ARV of between 1 and 10 per cent;
• 28,351 units, or 90 per cent, experienced a
decrease in ARV of between 11 and 20 per
cent;
• 2,313 units, or 7 per cent, experienced a d ecrease in ARV of between 21 and 39 per cent.

The above variations in the changes in the
ARVs made the adjustment of rates in order to mai ntain revenue neutrality for Government an extremely
complicated process, a process that has produced
unexpected outcomes. Over the many decades of inflation of the property bubble, various classes of properties, and even specific attributes of properties,
for example, location, had inflated at different rates.
This was not apparent to land tax payers because
ARVs were all going in the same direction —that is up.
The subtlety of the differing rates of change was easy to miss. However, when the bubble deflated the rates of decrease were, in some cases, dramatic and varied
1636 21 March 2016 Official Hansard Report

Bermuda House of Assembly widely from property to property. A false sense of uniformity was exploded.
Leaving land tax rates unchanged after the
new ARVs were produced would have cost the Bermuda Government $19.1 million in revenue. The a djusted rates we are considering today are to compensate for that deflation in ARVs. Government has never
had to conduct such a calculation before because this
situation is unprecedented in modern Bermuda. All previous changes in tax rates were to increase rev enues. Consequently there was no feasible method to adjust the band rates uniformly, resulting in no change in the dollar value of tax bills for the majority of units.
The dispersion of the ARV changes is just too wide to
achieve that using seven bands.
There was the option of increasing the number of bands to more closely reflect the changes in various property classes. It was felt this would intr oduce too much complexity for the taxpaying public.
Indeed, the tax consultants from CARTAC recommended a unified tax system for property, that is, one single rate for all properties in the name of simplific ation. This recommendation was rejected by Gover nment as such a policy would not have been accep table to Bermudians.
So we have had to make changes to tax rates
in the existing seven bands to reach the objective of revenue neutrality, but simultaneously retaining the progressive structure of the system.
Mr. Speaker, commercial rents overall have
also fallen dramatically from the 2008/09 levels or rental values as a direct result of the aforementioned issues. Recent consolidations within the reinsurance sector, coupled with the outsourcing of backroom staff off-Island, have led to less international business -
related employment and a consequential glut in office
space in the City of Hamilton.
The 2015 revaluation resulted in a decrease
in the total ARV for tourist and commercial properties
from $415.9 million to $328.7 million, an overall de-crease of 21 per cent. Therefore, the 2015 Draft
Valuation List displays reductions across all property sectors overall as rents have sharply declined since 2009.
Mr. Speaker, it is important to reiterate that
using the 2015 ARVs and the current land tax rates
would have resulted in an overall loss of approx imately $19.1 million in land tax revenue for Gover nment. This was a loss in revenue that Government could ill afford to have, particularly as the Government has made huge strides in reducing the deficit, and needs to continue to build on that work.
The Valuation List was presented to the Mini stry in late November 2015, and the valuations were to come into force on January 1, 2016. The Ministry of
Finance had little more than two weeks to promulgate the new rate structure, have them approved by Cabinet, and laid before the House before the Christmas recess. In the limited time available a revenue neutral solution had to be formulated and implemented by
way of an amendment to the Rate Schedule in the
Land Tax Act 1967.
Accordingly, the Government decided to
maintain the current tax band structure and only
change the rate for each band as laid out in this Bill. And I will just go through the proposed tax rates by
band, starting from the lowest band:
• ARV band $0 to $11,000 —the proposed tax
rate would be 1.8 per cent;
• The next band which is $11,000 to $22,000—the tax rate is 2.5 per cent;
• The third band, $22,000 to $33,000—the pr oposed tax is 4.4 per cent;
• The fourth band $33,000 to $44,000—the tax rate is 6.8 per cent;
• The fifth band $44,000 to $90,000— a tax rate
of 11.6 per cent;
• The sixth band $90,000 to $120,000—a tax rate of 21.2 per cent; and
• The top band, the seventh band, over $120,000 would be a tax rate of 25 per cent.

To provide for simplicity, and recognising that
the land tax payable on properties with an annual
rental value in excess of $90,000 was increased in
2013, most rates were increased by 2 per cent, other
than the two lowest bands. The proposed amendments maintained the progressive nature of land tax with those who live in the most expensive homes pa ying more land tax than others.
Mr. Speaker, even with the revised rates the
land tax bills range from $64.80 per year to $127,401 per year, clearly illustrating the progressive nature of the current proposal. To suggest that this Bill i ncreases the burden of land tax on Bermuda’s working class while at the same time reducing the burden of
land tax for Bermuda’s wealthy is simply not true. It is
important to remember that this is a laddered system, wher eby homeowners in the highest band pay the
increases in all the lower bands plus the rates in the highest band. If you are on the top of the ladder, you have to pay the rates appropriate for each of the lower
steps as well as the top rate.
Mr. Speaker, in addition, as a result of the
overall decrease in ARVs and the proposed increases
in rates, the Government intends to amend the ex-emption provided for Bermudians over 65 years living in his or her own home per section 3A of the Land Tax
Act 1967 to reduce the ARV from $50,000 to $42,000.
This will ensure that seniors receive the same land tax exemption as previously, which is $1,566 per year.
And lastly, in order to minimise the impact of
the revaluation on land tax revenue for commercial and tourist units, the Government also intends to i ncrease the land tax from 5.5 per cent to 7 per cent for
these categories. These changes keep the tax rev enue on these elements roughly the same as they were previously.


Bermuda House of Assembly Mr. Speaker, the Government has always
maintained that everyone in Bermuda needs to do
their part in helping to pay off the deficit. Therefore,
the primary purpose of this Bill is to amend the land tax rates to ensure no loss in revenue to the Gover nment and so that this Government can continue to do the work the people elected us to do and get our
economy back into a healthy state.
However, Mr. Speaker, since the rates have
been announced there has been much commentary and feedback on the impact that the rate changes have had on certain residential property o wners.
Some of this commentary has merit, but other commentary has been off base. We have listened to the
concerns of taxpayers and based on this we propose further amendments in the rates. These rate changes will be provided in a new bill, the Land Tax Am endment . . . it was originally No. 2 Act, I guess it still is,
the Land Tax Amendment (No. 2) Act 2016, which has
been tabled in this Honourable House today and will
come into force on July 1, 2016.
The rates in the current Bill will be in effect
from Jan uary 1, 2016 to June 30, 2016 and the land
tax bills which have already been sent out are based
on these amounts. Therefore, these bills will not be
adjusted and remain payable per the due date spec ified on the bills.
The revised proposal is aimed to deliver an
adjustment in land tax rates that insert additional pr ogressivity in the rate structure considering that the
largest decreases in ARV values occurred at upper
bands, according to the following rate structure, and I will read it out again, Mr. Speaker. It is in front of Members, I believe, but for the listening public I will read it:
The first band with $0 to $11,000 the new
(and when I am talking about new rates I mean those after July 1
st) rates will be 0.8 per cent;
• $11,000 to $22,000 —1.8 per cent;
• $22,000 to $33,000 —3.5 per cent;
• $33,000 to $44,000 —6.5 per cent;
• $44,000 to $90,000 —12.0 per cent;
• $90,000 to $120,000—25 per cent; and
• Above $120,000— 47 per cent.

The features of this proposal are as follows:
• The highest increase in land tax was 45 per
cent, or $44,000. The ARV on this unit
dropped from $504,000 to $396,000, or 21 per
cent and the land tax increased from $99,486 to $144,126.
• 149 units saw an increase of between, or will
see an increase, of between 30 per cent and
45 per cent;
• 760 units w ill see an increase of between
20 per cent and 30 per cent;
• 18,427 units will see an increase of less than
20 per cent; • 12,102 units will see no change or a decrease
in land tax. The greatest decrease in land tax
was 60 per cent, or $1,656.40.

In this sce nario, the majority of the popul ation—97 per cent —will be satisfied since they exper ience a small increase in their land tax, no change, or a decrease.
Finally, in order to maintain the maximum dollar exemption afforded to seniors under the new rate struct ure to be effective July 1, 2016, the ARV thres hold will be revised from $42,000 to $45,500.
Mr. Speaker, the sobering reality is that to
maintain Government services at a reasonable level and to avoid financial failure the Government needs to increase land tax rates merely to maintain the status
quo.
Mr. Speaker, the Ministry of Finance is conf ident that this approach will provide the Government
with the same level of revenues collected on land tax and believes that the revised rate increases are both equitable and fair. The proposed amendments mai ntain the progressive nature of land tax, with those who live at the most expensive homes paying more land tax than others, in this case much more. These points are clearly evidenced when one examines the effec-tive rates that property owners pay in each band,
which is the land tax divided by the ARV.
There has been considerable consternation,
Mr. Speaker, and confusion among the public relating to these new land tax rates and the bills that have been sent out. I personally would like to apologise for that confusion. My view is that citizens expect their
Government to be clear and concise, keeping unpleasant surprises to a minimum. We have not met that standard in this instance and that is regrettable. The buck stops with me on this one and I take full r esponsibility.
The deflation in the property bubble and its
consequences are uncharted territory for Bermuda and I commit to keeping the unpleasant surprises to a minimum.
With those introductory remarks, Mr. Speaker,
I now would like to read this Bill, the Land Tax Amendment Act 2016, a second time and invite Ho nourable Members to comment.

Good evening to you.

1638 21 March 2016 Official Hansard Report

Bermuda House of Assembly Mr. E. David Burt: Mr. Speaker, the Minister ended
by saying that the buck stops with him. And I would
like to, I guess, commend him for at least accepting responsibility for this error which saw a whole lot of people in this country see their land tax bills double, and in some cases more. Those are the facts. Those
are things that cannot be taken back.
But I almost wish that at the same point in
admitting the error, admitting the fact that properties on Harbour Road were going to pay less land tax un-der this regime than before, whereas properties on Cedar Park Road will pay twice as much land tax as before . . . for the Minister to say that this is increase
in burden on the working class is not true (as he said
inside of his comments), is completely false. And Mr. Speaker, if that were not the case, then why today did
we get a new land tax Bill that is going to change the rates up and down to reverse the mistake which the Honourable Minister has just taken responsibility for?
So you cannot have your cake and eat it too,
Mr. Speaker. You cannot on one hand say that this
increases the burden on the working class is not true, and then on the other hand, go ahead admit your mi stake and change it so that the increases that you are
putting on the residents on Cut Road is not the s ame,
you have to understand Mr. Speaker. So I am happy
that the Minister has realised the error of his ways, but he should have realised it the error of his ways at the very beginning. Because no one could come to this House . . . and when the increases were as much as
they were, Mr. Speaker, on the bottom level, the factor
increase was a factor of three times. It went from 0.6 to 1.8. That means inside of that band you will be pa ying three times as much.
Now, I know the Honourable Minister of F inance may not be aware, and I know that there are
probably other Members on that side that may not be
aware, but there are some people in this country that have ARVs that are underneath the top end itself. There are some people that have ARVs that are less than $11, 000. So when you triple the tax on that band,
they are going to get a tripling of their rates. So for the Minister of Finance to go on television today and say that it was unforeseen . . . how can you have unfor eseen changes when you are tripling rates? Surely, the amount of money that persons are going to pay will go up. And we saw it. And I am quite certain that there
were members, whether prompted by myself or ot herwise, that saw their land tax bills double and say, What the hell? Why is this the case? How is this act ually possible?
Then to come here today to almost admit your
error, but say that what we on this side have been saying since the day the Bill was tabled . . . When the
Bill was tabled under the Provisional Collection of Revenue Act on December 16
th, we got up on this
side talking about the seniors exemption, talking about the fact that if you are raising or tripling the rates on those persons at the bottom, surely you were shifting the burden to the working class. And we heard a defence from the Minister of Finance saying, No, the
rates are progressive. Take a look at the rates, the rates are progressive.
One would have thought that the Minister, or
someone in the Ministry of Finance, would have looked at this and said . . . when it went to the Cabinet
table, did anyone around the Cabinet table— with all
the accountants that are sitting around the Cabinet
table—say, Well, wait a second, why are we tripling
the rates on the people at the very bottom? Why are
we doubling the rates of the people at the very bot-tom?
Did anyone at that table say, Maybe this is not
the right thing to do; maybe, Minister of Finance, you
should go and look at that again.
Maybe someone should have taken a quick
look at their constituents, and talked about the people that live on Cedar Hill, when you were sitting around
that Cabinet table, and talked about the people that
live on Cedar Hill, and then [should have] said, You
know what, Minister? My constituents in my marginal
constituency of Warwick North Central may not like this. We may want to reconsider what we are doing.
But no, nothing happened. It came here; a
fierce defence from the Minister of Finance. And then today at the same time he has corrected the Bill, he
wants to say, No, no, no, no, no. You’re misleading
the public. We weren’t shifting the burden onto the working class. Foolishness, Mr. Speaker. They shifted the burden and they got caught. And now they are walking it back.
The only thing I would ask the Minister of F inance is, Why does he not walk the entire thing back? Why is he leaving that in place for this session? Why does he not make an amendment in Committee to the
new rates, which he has tabled, and then make sure
that the working class in this country do not have to suffer the break because the only people who are g oing to be paying more taxes would be the people who could most afford it.
Is that not what we are supposed to be doing
here inside of this Parliament? Make sure that we are fair and equitable. That is what the Minister said when he tabled the Bill. He said that these changes are fair and equitable. It would be fair and equitable not to double and triple land tax for the poorest and the
working class of this country.
So if the Minister really wants to be fair and
equitable, if the Members on that side really want to
be fair and equitable, then they should support an amendment that would make these rates affective at the very beginning and not soak and punish the pe ople of this country for the Minister of Finance’s mi stake, his oversight. He has accepted responsibility for his mistake, now he should do the right thing and cor-rect the mistake which he has made—not in the f uture, but for those persons who have already received those bills, which is everyone inside of this country.


Bermuda House of Assembly Make it right from the very beginning. Make it
right for those persons in Ducks Puddle who have
seen their land tax bills double. That is what we need to be doing, Mr. Speaker, we need to do right by those persons today.
But now, Mr. Speaker, let me go on because
this entire Bill seems to be like a comedy of errors.
Today we see the changes in land tax rates,
an entire new Bill that is being tabled. I mean, we are changing land tax rates twice in one year. Did anyone think about the seniors’ exemption? The Minister of Finance did not discuss the seniors’ exemption. But remember this whole thing about when the seniors’
exemption was tabled and we on this side of the House said, More seniors are going to have to pay
land tax. And there was a spirited defence from the
Minister of Finance that said, No, no. The amount that
we are collecting from this group will be the same. No!
Then we turn out later in the day after some
badgering that they took on the doorsteps of Devon-shire North Central (the by -election) about seniors
who are now going to be paying land tax when they were not paying land tax before, after the Government assured them that they would not be paying, then we
hear the Minister of Finance walking it back again sa ying, Oh, no, no, no. We got it wrong. I’m sorry.
The challenge that I have is under the Prov isional Collection of Revenue Act, if it is the case that
those seniors were exempt, when you change the rates, when you tabled the Bill, did seniors not have to
pay land tax at the beginning of this year? Did they
not have to? That is a question that must be asked,
because, technically, if the Bill is tabled, if the Bill is not amended, then those seniors would have to pay land tax when they did not have to pay it before.
I have another question. If seniors did pay
land tax, because as the Bill is written under the laws of the Provisional Collection of Revenue Act, seeing that the Bill was not amended and seeing the thres hold was brought all the way down to $29,000, does that means that seniors who did not pay land tax before would be required to pay land tax?
Is that land tax going to be forgiven? Are we
going to somehow rewind that? Are we just going to say, I’m sorry about the administrative error, seniors in
Bermuda, now you have to pay the land tax for this
half of the year ? What are they going to do for that,
Mr. Speaker?
Mr. Speaker, it seems as though, for some
reason inside of the Ministry of Finance, the Minister is getting a few things wrong. And that is okay b ecause he has got a tough job, and I understand that he has a tough job. But when it comes to, I guess you
would say, on this side when we offer constructive
criticism, on this side when we offer feedback, on this side when we take a look at a Bill and five seconds
after looking at it say, But this means that seniors are
going to have to pay more money. This means that
the working class are going to have to pay more money, when we can see it in five minutes . . . I am
challenged to understand how a Cabinet of 10 per-sons, who say that they have all the knowledge and have all the experience and all the wisdom and they are cleaning up our mess, can manage to make a mess this big. That is the question that needs to be asked, Mr. Speaker.
We have a lot of things on the Order Paper
and I do not want to delay this point. The fact is the One Bermuda Alliance Government raised taxes —
land taxes —on the working class of this country, while
homes on Harbour Road and Skyline Drive will pay less land tax. Those are the facts and I dare any person on that side of the House to get up and try to di spute that. Because, Mr. Speaker, I went to the Land
Valuation Office. I looked at the various houses and the changes from 2009 and 2015. I came to this House today with the actual figures and the actual statistics, so I challenge anyone to say that it is not.
And I challenge the Members on that side—
specifically those Members in the marginal constit uencies —to vote for this today, to vote for doubling the
land tax on your working class constituents. Think long and hard about that vote.
Mr. Speaker, they should think very long and
hard about it. Their Government made a mistake, and instead of halfway taking it back, they need to take it back the full way. Amend the Bill. Put the rates in place from the very beginning and do the administr ative work to clean it up on the back end. If you are going to accept responsibility for the mistake, accept the
administrative burden for cleaning up your mistake.
Thank you, Mr. Speaker.

Thank you, Mr. Speaker.
I do not normally get up on financial matters
and speak, Mr. Speaker, but I had to get up and
speak particularly on this matter for a couple of rea-sons. One, I commend my honourable colleague who speaks for Finance from constitu ency 18 for crystalli sing what I think is the sentiment that is felt about what we are experiencing here today with this Bill.
The journey that has been taken since D ecember, since the first Bill was tabled, and our own efforts to bring to the attention of the Minister the folly of what was being pursued . . . that folly was discov-ered by and . . . certainly by February of this year it
was realised how much of a folly it was. But I stand
here because I do not sit in one of those marginal di stricts that the One Bermuda Alliance has only a r emote success of winning.
I know, other than that, that I also do not have
any houses, or [I do not have] too many people who
live in my district who have houses comparable with
1640 21 March 2016 Official Hansard Report

Bermuda House of Assembly the people who live on Harbour Road either . There
may be one or two by some very successful families
who just happen to live in—
[Inaudible interjection]

Where?
But most of the houses in constituency 15 do
not look like the houses on Harbour Road, or in parts
of Hamilton Parish or St. George’s. But I can tell you this, Mr. Speaker, a few people from constituency 15
contacted me about what they discovered about their land tax bill, particularly around February or early
March. They saw an increase. And I am not talking
about people who are making six figures. I am talking
about single mothers, the elderly who have spent a lot of time and energy over the years to develop their homes for the benefit of their family. They worked hard in the hotel industry, in other industries, not ne cessarily international business or any of the more high-earning, highly rewarding with stock options, and
all those sort of attachments to their earnings. They worked hard over decades to develop these homes.
They found themselves confronted with a
suddenly doubled, or a 40 per cent increase in some
cases, land tax bill. And they asked me about it and I
said, Well, I’m not sure. I didn’t believe the Bill was
passed. So I was shocked to hear that this had happened. We have since found out why it happen ed,
and I will echo the credit given by my honourable co lleague who sits in constituency 18 that he gave to the
Minister for attempting to halfway take responsibility.
But I am getting on feet on this matter to do
with Finance (which I normally do not do) only to cry stallise that the impact of whatever has happened has
been extremely widespread. And, yes, the humble
voters of constituency 15 felt it too, and they brought it
to my attention.
I do hope, Mr. Speaker, that a genuine effort
is made by the Ministry of Finance, the Minister of F inance and those who are concerned with these mat-ters, to bring clarity to the public about why this has
happened, because it is important. There may be no success for the OBA in a future general election in constituency 15, Mr. Speaker, but those voters are as
important, those landowners are as important. They deserve to understand why they saw their bill go up at
an exorbitant level prior to the March 31
st date, prior to
them being aware as to why it has gone up, and why
this unfortunate mistake, or error, or oversight, or
whatever the Ministry or the Minister wish to call it, has happened.
I think that it is very important that beyond this
House, beyond what is ever passed, Mr. Speaker, that a broader explanation is given to the general public. Those of us here in this House are reasonably edu-cated. The experience that we bring, that we have in this House . . . we understand these bills. We under-stand how they work. We understand the impact of these things. But some of those persons out there in
the community, Mr. Speaker, who just work hard
every day, they wait and expect to see that bill, Mr. Speaker, and they go like good citizens and pay it. That is what they do. They are not like some of the, you know, more aggressive . . . we do not have a cu lture in this country like you find in places like the
United States where people are up in arms about pa ying taxes. People actually arm themselves to go
against paying taxes.
Some people feel that taxes are an infringement on their human rights. We do not have that sort of . . . and will fight to the death to not have to pay
their taxes. That is what happens in some other juris-dictions, particularly in the United States. People cut themselves off from civilisation so they do not ha ve
pay taxes because they believe taxes are an impos ition. We do not have that culture.
So I think we have a duty to make sure that
those who have been inflicted with this error, or over-sight, or miscalculation, or whatever has been done, Mr. Speaker, and explain to them how this happened, why this happened, if there is an opportunity for them to have it rectified, because we know this is a recessionary climate. People are managing their expenses.
And to be subjected to a sudden extremely high cost when they are managing their fixed costs on a monthly or biannual basis —licensing their car, paying
their loan, paying their land tax —this, to some, was a
shock.
I will not say much more because, as I said, I
am not normally one of the people who stands up on these finance matters. But I felt duty -bound to do it
today because of what I experienced with my voters in a district that is not marginal by any measure, is not a district that the OBA is likely to win in a future election,
but my voters are important too. They are not as i mportant as the people in constituencies 1 or 2 or 27, in
reference to marginally placed districts who the OBA
might be prepared to spend a little bit more attention to, because the price is high if they do not.
But I ask, on behalf of the humble constituents
of 15, and the not -so-marginal districts that might not
have the attention of the politicos of this community, please make sure the people understand what has happened. Make sure it is clear as to what they should expect in the future, and how, if they need clarity on this, they can receive it. So I ask that of the Mi nistry and the Minister and those who are much more
able than me with numbers to go through this process to help those humble citizens of this country get to grips with what we may pass in this House today, and
the errors that may have been made in the past.
Thank you, Mr. Speaker.

All right. Thank you, Honourable Member.


Bermuda House of Assembly The Chair will now recognise the Minister for
Health and Seniors from constituency 19, Jeanne
Atherden.

Hon. Jeanne J. Atherden: Mr. Speaker, I only have a
few words to say on this matter.
I think, from my perspective, it is just to make
sure that everybody understands that when the Mini ster is trying to accomplish what he said at the outset,
which was to try and make sure that when it was all done there was no . . . it was balanced off so that by
and large the Government got the same amount of revenue that it had before. I realised, and we all rea lised afterwards, that one of the impossibilities was to try and go through and look at the ARVs that had changed in many different directions.
As the Minister said before, in the past when
all you were worrying about was increasing revenues,
you could go through and say, Okay, leave the ARVs,
we’ll put it up by “XY” per cent, and therefore you
know the extra amount of revenue that you are going to get . The dilemma and the difficulty here is because
of the changes in the ARVs. And I think as people are
starting to look at th em most of them will realise that
they are going to have to look very carefully at the
individual ARVs because they have changed. They have changed in directions that I do not think most of us would have thought of in the past. ARVs have changed on the same street, and you are actually go-ing to have to go and look at what has happened to
your particular property versus what has happened on
the street.
I think the dilemma was how do you turn
around and come up with a rate such that, all things being equal, the amount of revenue that the Gover nment was going to collect ended up being the same?
So I think that was, unfortunately, what perhaps contributed to the first exercise because the numbers did come around and say that the Government had co llected the same amount of revenue that it would have collected in the past, had it not been for the change in
the ARVs. Unfortunately, that was accomplished. But
the other side of it, which is to go back and look at the individual changes, that was one of the things that unfortunately did not occur.
So I do think that the Minister has tried to turn
and look at the changes. And this rate change that is
being proposed goes a long way to turn around and
make adjustments for the changes in the reductions in the ARV and the reductions in the rates to try and make sure that the new rates, taken by themselves (I am not going to talk about the first half of the year, but the new rates going forward) . . . if you look at them,
they are more balanced as it relates to the Gover nment collecting the right amount of revenue and ma king sure that the tos and fros of the rate changes have no affect on the Government revenue.
I am sure the Minister has heard some of the
concerns that you have raised about the first half and the second half, and I will let him deal with that aspect
of it.
[Mrs. Suzann Roberts -Holshouser, Deputy Speaker,
in the Chair]

Thank you, Madam Deputy
Speaker.
Am I the only one standing here that is abs olutely blown away with what we just heard? Am I the
only one?
Come on.
Madam Deputy Speaker, if we are trying to do
somet hing that is revenue neutral, how do we accomplish that by the people at the lower end of the band paying three times as much as what they would have paid? And the people in the upper band paying less? How do we accomplish that? It does not make any sort of sense.
When I go to my constituents and they tell me,
My land tax has gone from $51 to $119 . . . from $51
to $119? How is that revenue neutral? How is that . . .
can anyone explain to me how that is revenue neu-tral? Revenue neutral means you put in a p ercentage
and they still pay $51. That is what it means, not
120 per cent more than what they used to pay.
Hon. E. T. (Bob) Richards: Point of order, point of
order.

I was hoping that they would
say that because, Madam Deputy Speaker, what we
are talking about is shifting the burden to the people
1642 21 March 2016 Official Hansard Report

Bermuda House of Assembly who can least afford to spend it. That is what we are
talking about and that is what is happening.
They can deny it, deny it, deny it, all they
want. That is what is happening. This is a Government
that does not care and they show it every single day. They do not care.
This is a Government that does not have the
people’s best interests in mind. This is a Government
that stands here and says, We’re the best people to
do what we need to do for this country, but, oddly
enough, it continues to be on the backs of the people
who can least afford it.
We get this day in and day out up here,
Madam Deputy Speaker. And I look at the backbench that sits over there and I ask them, are you going to continue to tolerate this mess? Thank you, Madam Deputy Speaker.

Thank you.
Are there any other Members that would like
to speak to the Bill?
The Chair recognises the Honourable P. J.
Gordon- Pamplin from constituency 23.
You have the floor.
Hon. Patricia J. Gordon -Pamplin: Thank you,
Madam Deputy Speaker.
Madam Deputy Speaker, while we could hear
righteous indignation coming from the other side, I
think it cannot be lost on us that the Minister responsible for ensuring that we had rates appended for our
new land tax bills were revenue neutral to the Gov-ernment. He also indicated in his presentation that the quinquennial review, which provided the new rates of the land tax of the ARVs, came within a period of two weeks prior to his having to place a Bill on the Order
Paper in order to generate the bills that were going to
be effective from the beginning of the year. The bills would have been required to go out. The bills could not have gone out at the rates that previously existed by virtue of the fact that the ARVs plummeted.

[Hon. K. H. Randolph Horton, Speaker, in the Chair]
Hon. Patricia J. Gordon -Pamplin: Under normal ci rcumstances, Mr. Speaker, when you have ARVs that
plummet, if it was done in an even kind of way where
you could have appended a rate that would have
shown what the impact was, then that could easily have been done. But what effectively happened is that rates were all over the place once the quinquennial review was actually done. So some rates, even on the same street, had no bearing on what those same
rates would be on a similar house on the same street.
And as a result, because we knew that time
was limited and that there would be a necessity to get
the bills out, given the new reduced rate ARVs, and knowing that we did not wish to lose revenue, that the intent was to be revenue neutral, the rates that were appended were, in fact, what the bills previously came
out to.
Now let me just say that the Minister said at
the time that it was meant to be revenue neutral, and I
can assure Members opposite that having a re-l ook at
this had nothing to do with the fact that they very mal iciously chose to send out . . . you know infor —

Minister.
Hon. Patricia J. Gordon- Pamplin: I will withdraw that
comment. I will withdraw that comment.
But what I want to say is that when I hear
Members say the Government does not care, let me
just say that when the bills came out . . . we on this
side did not have the opportunity to look at all of the ARVs as the Honourable Member had in his . . . you
know, when they looked at it. We looked at rates that were going to be tax neutral and that is what we i ntended to do and that is what was done.

[Inaudible interjections]

Hon. Patricia J. Gordon -Pamplin: When the bills
went out, Mr. Speaker, we actually started to delve
very deeply into, on an individual basis, the impact that these new bills were going to have. We have spoken, compared . . . which is the reason why the
Honourable Member has brought this revised rates to the Honourable House so that we could recognise the fact that he indicated that there was an error —

[Gavel]

Hey, hey, hey, enough.

[Gavel]
Hon. Patricia J. Gordon -Pamplin: Thank you, Mr.
Speaker. The Minister indicated that there was an error.
He is fixing the error. To suggest that it is because we
do not care about people is not only disingenuous, it is dishonest, because Honourable Members opposite know that we have just gone through an entire B udget
Debate in which we have shown how much we do


Bermuda House of Assembly care, Mr. Speaker, to ensure that our insurance rates
have not gone up, we have put more money into F inancial Assistance, we have looked at social services
and impacts that will positively impact our peopl e.
So there is no way, Mr. Speaker, that we will
sit here and [listen to them say] that we do not care. I am not going to accept that argument, and I know that
when the Minister gets back to his feet he has looked
at the resolution to this matter and he will advise what that resolution is.
But with that said, Mr. Speaker, I think it is i mportant for people to know that there was no mal -
intent on behalf of this Government to be able to . . .
to see that taxes were raised on the backs of those who could ill afford it in favour, intentionally in favour, of those at the higher bands. That was not the intent and certainly, I believe, that once we see the resol ution coming from the Minister it will be made apparent.
Thank you, Mr. Speaker.

In the Speaker’s boardroom.
Hon. Dennis P. Lister: All right.
Hon. E. T. (Bob) Richards: Mr. Speaker, I would like
to thank the Honourable Member Mr. Lister for giving
way to me so we can move this forward.
We seem to have come to a way how to fix
this problem. Before we do that . . . and the way we
are going to fix this is (if I might say) . . . we are going to take the Schedule that is in the Act, the (No. 2) Act,
that I tabled earlier today, and we are going to use
that to replace the Schedule that is in the Act that is
under consideration now.

And you will do that in Committee?

Hon. E. T. (Bob) Richards: And we will do that in
Committee, and we will insofar as . . . as Honourable
Members know, the bills have already gone out and
people have paid their bills, or some people anyway have paid their bills.
We had to confer, I had to confer with my
technical officers, but we believe that the ability to ad-just the rates in the second half of the year to adjust them to take into account the overcharge or under-charge because there has been overcharges —the
new rates will result in overcharges and undercharges. We will make those adjustments in the bills
that we send out in the second half of the year. We are going to propose that when we get to Committee.
Mr Speaker, the one more thing that I wanted
to say was that in spite of the adjustment with the se niors’ exemption, even though it is on the Order Paper
as an amendment now, the computer programme actually made the adjustment before the bills went out so the exemptions for seniors are correct.
With that, Mr. Speaker, I would like to move
that we go in Committee.

Thank you, Members. We are now in
Committee of the whole House for further consider ation of the Bill entitled Land Tax Amendment Act
2016.
I call on the Minister in charge to proceed.
Minister, you have the floor.

1644 21 March 2016 Official Hansard Report

Bermuda House of Assembly Hon. E. T. (Bob) Richards: Thank you, Madam
Chairman.
You are going to have to bear with me because we are—

It has been moved that clause 1 be
approved as printed. Any objections to that motion?
No objections.
Agreed to.

[Gavel]

[Motion carried: Clause 1 passed as amended.]

Hon. E. T. (Bob) Richards: I would like to move
clause 2. It amends section 2(b) of the principal Act to
increase the land tax payable in respect of properties
other than private dwellings from 5.5 per cent to
7 per cent.
[Inaudible interjection]
Hon. Patricia J. Gordon -Pamplin: You have the
wrong Bill.
Hon. E. T. (Bob) Richards: No, I do not have the
wrong Bill.
Hon. Patricia J. Gordon -Pamplin: No, no. You have
the original Bill.

[Inaudible interjection]

Hon. E. T. (Bob) Richards: Oh, I am looking at the
original Bill.
[Pause]

Minister, please proceed.
Hon. E. T. (Bob) Richards: Clause 3 amends section
3A of the principal Act, so that the special concessionary basis available to Bermudian seniors living in
their own homes will provide an exemption in respect
of private dwellings below the annual rental value of $44,500 (that is in the new one, $44,500 annual rental value).
So I would like to move that clause please.



Bermuda House of Assembly The Chairman: Are there any Members that would
like to speak to clause [3]?
The Chair recognises the Shadow Minister of
Finance from constituency 18.
You have the floor.

POINT OF ORDER

Thank you. Thank you very much.
Are there any objections to that amendment?
If there are no objections to that motion . . . and that would be to amend clause 3, changing the “$29,000”
to “$45,500.”
Are there any objections to that motion?
No objections.
Agreed to.

[Gavel]

[Motion carried: Clause 3 passed as amended.]

Hon. E. T. (Bob) Richards: Madam Chairman, I
would like to move clause 4. Clause 4 repeals and replaces the table in the
Schedule to the principal Act to increase the land tax
rates for private dwellings as shown. but “as shown”
should be the Schedule in the Land Tax Amendment (No. 2) Act 2015 where we have the rates 1.8, 3.5, 6.5, 12.0, 25.0 and 47.0.