March 18, 2024

—the Minister does not
know what we want or do not want , Madam President,
so I wish he would retract that. Thank you.

The President: Your point is taken.
Minister.

Sen. the Hon. Owen Darrell: When it comes to Tourism, since it was raised by Senator Tucker, we are expanding tourism investment orders and you would have
seen in this place some time ago that we took that to a
new place where it includes restaurants and attractions
for tourism. We are using funding from the Ministry of
Tourism, Culture and Sport to supplement some of the
local cultural and sporting events that are happening.
So, when I think of some of the questions and
the nature of the questions that we heard in another place, it would suggest to me that the One Bermuda
Alliance is interested in a budget for some people and
our past. That’s what it would look like to me, Madam
President. But, alas, we have increased funding for
summer day camps. I can’t tell you the number of messages that we get from people saying thank you for investing in their young people, and summer day camp
programmes. So these young people can feel s afe
when they go to government camps. And on top of investing in further enrolment, we also extended the
camp into August. This has a direct impact, Madam
President, on the people of our country. And these are
more and more examples of the Progressive Labour
Party investing in our people and our future.
Now, I said I was going to do something today,
Madam President, but I got sidetracked and I forgot to
do my little stroke count but I wanted to actually see how much in this general economic debate where we
are talking about investing in the people and how the
Government is putting funds in the right places, I
wanted to see how many times the One Bermuda Alli-ance brought up the word “road” or term “roadworks” or
said “fix the roads.” Well, Senator Tucker did go a step
further and say how she feels that the funding that has
been put in the roads should be more.
But I want to focus on my own terms, and my
own version of roads real quick, Madam President. I want to talk about the road not taken, or, as some people would say, from the American Poet Robert Frost,
what originates from a poem he has [about] the road
less travelled. And usually when we talk about a road
214 18 March 2024 Official Hansard Report

Bermuda Senate less travelled, Madam President, we talk about celebrating individuals and individualism, you know, go
alone. But I don’t know how many times the One Bermuda Alliance spoke about roads. Yes, it gets people
emotionally charged. Yes, it is frustrating when y ou hit
the unexpected pothole. And, yes, we have heard from
my colleague about what we are doing to fix the roads
immediately and what we are doing to fix them in the
long run, investing in infrastructure, investing in labour.
So, I want to focus on the road less travelled.
It is unfortunate that Senator DeCouto sits up
here and spends a lot of his time in the Senate posting
Twitter messages (I am not sure how that is a good use
of his time), and seems to get a good crack out of the
three people who respond to him. You know , his Senate colleague has not posted in a while, but he likes to forward stuff. But what I want to talk about, again, is the road less travelled, because the Progressive Labour
Party, Madam President, prides itself not only as a Government, but as a party , as hitting the . . . as pounding
the roads and getting out and touching individuals of
this community.
And while I heard a Senator from the One Bermuda Alliance make brief mention of canvassing, what they cannot speak to is the record of the Progressive Labour Party hitting the roads and going up and down
this country to invest in our people and our future.
You know, it is disappointing, Madam President, that when we do get out in the community we
have people who say, Well, we care about the community and we hear what people are talking about. It is
disappointing when you actually go to events, Madam
President, and some of the things that you would think
all of us —Members who sit in another place, Members
who sit here . . . things that you think would be important to them. [But] you look around and it’s only one set of individuals, usually in green. How can the One
Bermuda Alliance think for one minute, Madam President, that they can lead this country if they are, one, not
connected to the people, and two, have no interest in
investing in our people currently or our future.
Madam President, as we move over the next
couple of sessions and we go through the various
heads of debate and the One Bermuda Alliance asks their questions, I sincerely hope, Madam President,
that something that Senator Tucker said a minute ago
that made me cringe, seemed to be that they are more
interested in political strategies and posturing than actually getting out information to the public about things
that the public needs to hear.
The President: Minister, the Senator has indicat ed that
she has not actually stated that, but that’s [what] you
are implying.
Sen. the Hon. Owen Darrell: No, no, Madam President.

POINT OF ORDER Sen. Robin Tucker: Madam President, it is a point of
order because, again, we have a number of ministries to debate. We have 22 hours. We cannot include everything. So, Madam President, I had to make a decision
as to what heads we would be debating. And that is what I did. So it has nothing to do with political posturing
as the Minister has stated.
Thank you, Madam President.

The President: Minister, carry on.

Sen. the Hon. Owen Darrell: Madam President, while
I do not sit in those headquarters on Reid Street and I
don’t make the decisions as to what they decide to debate, I am pointing out a fact that there are ministries
that are very important to people in this country, like National Security, that the One Bermuda Alliance has decided not to hear from the Senator.

The President: Carry on Minister.
Sen. the Hon. Owen Darrell: So, with that said, I would
like to go back and finish where I started. We heard a
significant number of policies that the Progressive Labour Party has put in place in this budget that are investing in our people and our future, Madam President.
And I can only sincerely hope that over the next 22 hours of debate that we hear some worthwhile questions and maybe some worthwhile solutions from the
One Bermuda Alliance.
Thank you, Madam President.

The President: Thank you, Minister Owen Darrell.
It has been a long day and every one of the
Senators has spoken. I think it has been appreciated
by the public.
At this point I would like to turn over to Senator
Arianna Hodgson, the Junior Minister of Finance to
make her comments and conclude.

Sen. Adrianna Hodgson: Thank you, Madam President.
Madam President, as always, I would like to
thank Members for their contributions today. Most of what has been shared indicates bipartisan support for the policies and initiatives with regard to the work that
we do as a Government.
In my earlier remarks I did mention that audited
financial statements for fiscal year 2022/23 were pending and I thought my colleague Senator De Couto
would have picked it up, however I did want to confirm
that the Consolidated Fund Financial Statements were
actually tabled in the House on Friday. And I raise this
particularly because I think it is important that we highlight the fact that the Auditor General actually provided
positive endorsement on almost all areas of work in relation to the financial statements presented. This is a
testament to the efficacy of our financial processes and
operations, as well as to the hard work of our teams


Bermuda Senate who ensure that financial integrity is upheld under this
Government.
Madam President, as a Government we are
getting our house in order and, yes, we recognise that
there is more work to be done. I would say that we agree that more investment is required in various
spaces. And this is why it is so important that we continue to assess the best approach to ensure that the
interests of the Bermudian people are appropriately balanced with Government spending.
Madam President, there is some scepticism
surrounding the idea of a balanced budget, some of
which I can understand. As you know, with most things
there are multiple ways to balance a budget and the
approach taken also reflects the priorities and values of
the governing party at the time. When I heard the response to some of the amendments to the Government
Loans Amendment Act in another place, I was almost
convinced that, you know, the OBA wished that they
would have thought about such an amendment. And
this is the type of creativity that is required for such a
time as this.
When I think about balancing the budget I do
acknowledge that it is a challenging task, particularly in the complex economic landscape we find ourselves in. However, I do want to assure the Bermudian people
that our commitment to fiscal responsibility is s teadfast.
Overall, Madam President, the stark policy differences
in budget setting among labour parties and other political groups tends to highlight the diverse approaches to
governance and the competing values and interests that exist within our society.
So, while the Opposition struggles to understand our ethos I think I want everybody else to really understand that our budget is not merely a collection of
numbers. It is actually a reflection of our values and our priorities as a Government and as a Labour Govern-ment, Madam President.
I have learned not to get worked up over the
commentary in this space, as I understand that fundamentally we will never agree on how to restore economic stability and how to ensure that every Bermudian
is able to benefit from the fiscal decisions that we make
as Government. While some are challenged by the how, I do believe that we have analysed revenue
streams and expenditure patterns and our projections
are based on realistic assessments of economic growth
and various trends.
I can acknowledge that achieving a balanced
budget does require difficult decisions and prudent
management of resources. And I want persons to know
that we are prepared to continue to make those tough
decisions to ensure the long- term financial stability of
our nation. I said it before, Madam President, and I
want to say again that I invite persons t o get involved
and to engage with us as we work towards our shared
goal of a strong and prosperous future for all of our citizens. I do believe that together w e can navigate the
challenges ahead and build a brighter tomorrow. I mentioned earlier in my remarks and I want to
encourage persons to participate when we have forms
that are available online. We do want to hear what you
have to say. I know that the Opposition sometimes
claims that we celebrate our successes while faili ng to
acknowledge that persons are struggling. But this could
not be further from the truth. In the same way that economic progress does not silence the suffering of our
Bermudian people, the presence of such suffering does
not negate six years of continued progress under this
Progressive Labour Party Government. Acknowledging and understanding the challenges that people face is
often a crucial aspect of effective governance.
The truth is, Madam President, that awareness
of the issues that are actually experienced by our people allows us, particularly as a labour party, to respond
with empathy and to create targeted policies that actu-ally address the issues of inequality, of p overty and social exclusion in our Island.
As I wrap up, Madam President, I think that
there are some who are wondering what a balanced
budget means for them. It means a lot of different things
to different people. But I do want to share that a government with a balanced budget enjoys several advantages and opportunities that would not be available
to those operating with deficits. And we have witnessed
that over these past few years. Ultimately, Madam
President, this budget indicates that the Government’s
revenue is going to match its expenditure. This stability
can attract investors, maintain confidence in our economy, and ultimately prevent disruptions that are caused
by unsustainable debt levels. A balanced budget
doesn’t just signal responsible fiscal management, Madam President. It actually boosts confidence among
businesses and consumers.
I was actually having a conversation while out
canvassing in constituency 10 over the weekend with
my colleagues. We were talking about the positive and
negative pictures of our economy that have been
shared in our communities. I responded and said that I
don’t mind persons who are critical of the Government, as it is important for citizens to hold their Government
accountable and to voice their concerns when necessary. However, I also shared that spreading unfounded
negativity or sensationalism can be, an d is, counterproductive and harmful to our society as a whole.
Madam President, a balanced budget facilitates our ability to plan for the long term, to strategically allocate resources, to continue our investment in edu-cation, in health care and infrastructure, and to address
the pressing social and environmental challenges without being burdened by excessive debt obligations. I
spoke to this during last year’s debate and I want to
remind the Bermudian public that while the OBA tends
to spread another narrative, this Progressive Labour
Party Government can prudently manage the public
purse. We have held the reigns that have brought us to this point and we will continue to do so, Madam President.
216 18 March 2024 Official Hansard Report

Bermuda Senate As I look ahead to the next five or ten years I
am filled with optimism and confidence in the trajectory
of our nation. While I would like to see us do more to
ensure that our people benefit from our work, it is my
firm belief that we are on the cusp of s ignificant progress and prosperity, and that this progress and prosperity is driven by strategic investments and bold reforms by a Government that listens to its people.
Corporate income tax aside, Madam President, we have committed to enhancing our public services to better serve the need of all Bermudians. Madam President, I recognise the critical importance of
infrastructure investment and laying the foundation for
sustainable growth and development. I understand it,
and you understand it, the Independent and the One Bermuda Alliance Senators understand it. Whether it is
upgrading our transportation, modernising our utilities, or expanding our digital infrastructure, we will continue
to make strategic investments that position Bermuda as
a competitive economy in the 21
st century.
While corporate income tax is an important
consideration, we are also dedicated to pursuing re-sponsible tax policies that benefit all Bermudians. We
must continue to develop policies that empower individuals, that stimulate entrepreneurship and ultimately attract investments to our shores. Madam President, I firmly believe that by working together with a shared vi-sion and determination we can realise the full potential
of Bermuda and build a future that is prosperous, inclusive and sustainable for generati ons to come. This
year’s budget signifies progress towards creating a
more equitable and prosperous future where we can
better serve the needs of our citizens not just in the short term, but over the long term.
We must continue to foster constructive dialogue. We must continue to focus on solutions. And we must continue to promote a culture of positivity and col-laboration so that we can better navigate challenges
and build a brighter future for all, Madam Presid ent.
So, with that, Madam President, I move that the
Public Bill entitled the Appropriation Act 2024 be now
read a second time.
The President: Is there any objection to the second
reading?
There is no objection.
Sen. Adrianna Hodgson: Well, thank you, Madam
President.
I move that the Senate do now resolve itself
into a Committee of the whole for further consideration
of the Appropriation Act 2024 together with the Estimates of Revenue and Expenditure for the year
2024/25.
The President: Thank you.
I call on Senator John Wight to assume the
Chair of Committee.
Senate in Committee at 4:24 pm

[Sen. John Wight, Chairman]

COMMITTEE OF SUPPLY

APPROPRIATION ACT 2024

ESTIMATES OF REVENUE AND EXPENDITURE
FOR THE YEAR 2024/25

Okay, Senators and listening audience. We can proceed. The Ministry under consideration is Finance. The heads for debate under this Ministry are Head 10, Ministry of Finance Headquarters;
Head 11, the Accountant General; Head 12, Customs;
Head 28, Social Insurance; Head 38, Office of the Tax
Commissioner; Head 39, Registrar of Companies; and
Head 58, Debt and Loan Guarantees.
The number of hours allocated to these heads
is three. The Senator in charge is Senator Arianna
Hodgson. The start time is 4:26. So we will finish at or
before 7:26.
Senator, how do you wish to proceed?

MINISTRY OF FINANCE

Sen. Arianna Hodgson: Mr. Chairman, I move that the
Committee do now take under consideration Head 10, Ministry of Finance Headquarters; Head 11, Account-ant General; Head 12, Customs; Head 28, Social Insurance; Head 38, Office of the Tax Commissioner; Head
39, Registrar of Companies; and Head 58, Debt and
Loan Guarantees be now taken under consideration.

Thank you, Senator. Please proceed.

Sen. Arianna Hodgson: Thank you, Mr. Chairman.
Mr. Chairman, the 2024/25 estimates for the
Ministry of Finance are found in section B of the Estimates Book on pages B -108 through page B -131, and
in section C on pages C -4, Capital Development, C -11,
Capital Acquisitions, and C -18, Grants.
The Finance Ministry comprises six departments , led by the Ministry of Finance Headquarters,
and includes the Accountant General, Customs in rela-tion to revenue, the Department of Social Insurance,
the Office of the Tax Commissioner and the Registrar
of Companies. Allocations to cover the interest on gov-ernment debt, guarantee management, the Bermuda
Public Accountability Board and the Gaming Commission are also included in the Ministry of Finance budget.


Bermuda Senate Mr. Chairman, the Ministry has a total staffing
establishment of 165 posts and an aggregate current
account budget of $240.46 million and is responsible
for collecting $1.11 billion, or about 90 per cent of all
government revenue. Of the $240.46 million in expenditure, $127.1 million is for interest charges; $83.4
million is for costs associated with pension and health
care for all government workers and war veterans;
leaving $30 million, or 12 per cent, for operational
spend.
A snapshot of key information for the Ministry
of Finance is shown on page B -103 of the Estimates
Book. The Department Current Account allocations are
as follows:
• Head 10 —Ministry of Finance Headquarters,
$7.2 million, an increase of $389,000, or 6 per
cent. All is operational spend.
• Head 11—Accountant General, $86.4 million, an increase of $4.2 million, or 5 per cent, of
which $5.97 million is operational.
• Head 12—Customs. The Customs expenditure
budget sits under the Ministry of National Security, although the Ministry of Finance maintains responsibility for the customs tariff and
revenue collections.
• Head 28 —Social Insurance, $3 million, a decrease of $532,000, or 15 per cent, all mandated costs for war veterans.
• Head 38 —Office of the Tax Commissioner,
$4.05 million, an increase of $150,000, or 3.85 per cent, all operational overhead.
• Head 39—Registrar of Companies, $12.04 million, an increase of $2.5 million, or 26 per cent.
All operational overhead.
• Head 58— Debt and Loan Guarantees, $127.8
million, of which $127.1 million is mandated interest payments.
Mr. Chairman, the Finance Ministry plays a pivotal role in the work undertaken to ensure the ongoing
stability and prosperity of Bermuda, particularly given
the serious local and global economic uncertainty currently faced by our country and others around the
world. Over the past seven years since this Government has taken office, you would have noted a recur-ring theme—that is, the Government’s resolve to develop and implement a consistent and considered strategy to diversify and strengthen Bermuda’s economy and to support its people while executing a sound and
prudent fiscal management strategy.
It is noteworthy that after many years of deficit
budgets, this year a balanced budget has been presented, and the Ministry of Finance has been a key
player in overseeing the execution of this Govern-ment’s fiscal strategy. Key areas of focus in this strategy are [as follows]:
• targeted investment and tax policies to enhance economic growth by attracting investment that creates jobs; • making Bermuda’s tax system fairer while re-ducing the tax burden for workers;
• modernising Bermuda’s regulatory regime; and
• maintaining fiscal discipline by meeting and in
many cases exceeding budget targets.
Mr. Chairman, we have a responsibility to the
people of this country to provide the best fiscal and economic management possible. To this end we will continue to make the necessary decisions, often tough decisions that are not politically expedient, requir ed to
sustainably grow Bermuda’s economy in the long term.
[We will] reduce the tax burden on workers and provide
the necessary support in services to make this a quality
place to live and work.
Mr. Chairman, following an extended global
pandemic, Bermuda continues to be faced with signifi-cant challenges which if not appropriately managed
can damage our economic security and stability. To
that end, the Finance Ministry’s budget has been carefully constructed to ensure that the Ministry’s in- house
team supported by various external stakeholders and consultants are able to lead the Government’s fiscal
and economic policies aptly and responsibly.
Given the ever -increasing threats and expanding obligations which Bermuda must address, ensuring
that the Ministry is appropriately resourced and structured continues to be a priority. To this end, during the
past year, reviews of resources in key areas were undertaken, and active steps are already being taken to
address identified gaps. The additional funding required has therefore been included in the cost estimates for the relevant units and departments contrib-uting to notable increases in some areas, wi th appropriate reductions in others.
Key initiatives which will have to be progressed
include banking, tax and pension reform, more targeted debt collection, expanded compliance and regulatory
oversight, and enhanced adherence to international requirements. The Ministry will also continue its internal
structural reform for more effective collaboration, operation and management. These structural changes include the formal establishment of two divisions in the Ministry Headquarters, each headed by a Deputy Financial Secretary, one of which is focussed on domestic and economic matters, the other on international
and regulatory matters. The various units and departments of the Ministry will fall under one of these divisions. These divisions are supported by a central unit which assists with finance, administration and policy
support for the Minister.

Mission Statement, Key Goals and Objectives

Sen. Adrianna Hodgson: Mr. Chairman, the Finance
Ministry’s mission statement, found on page B -109,
reads as follows: The achievement of economic prosperity to ensure the financial security of Bermuda. In
line with this, I highlight some of the Ministry’s key objectives [as follows]:
218 18 March 2024 Official Hansard Report

Bermuda Senate 1. Formulate and adhere to sound and prudent
fiscal policies to achieve financial stability and
promote stable and sustainable economic
growth.
2. Provide strategic direction and an overall
framework for effective financial management
and control of government activities, and provide an appropriate framework for effective
compliance.
3. Prepare, implement and closely monitor the national budget to arrange all government bor-rowing requirements at the most competitive
rates.
4. Maintain effective relations with credit rating
agencies.
5. Report on the country’s economic performance to the public.
6. Oversee and prudently manage the public pension funds.
7. Ensure and support the fair, coherent and predictable development of public services and other relevant regulation, and appropriately
monitor its implementation consistent with international standards.
8. Monitor the agreed tax standards, seek to influence changes, adhere to its compliance requirements and be proactive in treaty negotiations regarding tax information exchange
agreements and the exchange of tax information.
9. Advance the Government’s anti -money laundering [AML] and anti -terrorist financing [ATF]
policy initiatives and monitor for changes in international standards and for other relevant global developments that will affect Bermuda.
10. Support legislative and policy developments to address such changes and coordinate measures to enhance Bermuda’s AML/ATF regime.
11. Play an effective role in advancing Bermuda’s
national ESG [environmental, social and governance] strategy.
During the past year we were able to move forward in a number of key areas, and in this brief, we will highlight key accomplishments. These include the improvement of tax collection and pension arrears, the repayment of $50 million in outstanding debt, the development and implementation of landmark corporate income tax legislation, provision of additional relief to
workers and businesses in Bermuda, continued com-pliance with international requirements, maintenance of
a strong credit rating and continued suc cessful implementation of a sound and prudent fiscal management
policy resulting in the presentation of this year’s balanced budget, one that we expect to achieve.
As we go forward into this coming year, we will
continue to build on the strong foundation that has been established, with a focus on economic growth, maintaining Bermuda’s positive reputation as a reputable financial centre, executing a prudent fiscal strategy balanced by our commitment to appropriately meeting the
needs of the people of Bermuda while seeking to build
a fairer and more just society.
I will now speak to the various units and departments that comprise the Ministry of Finance, starting
with Head 10, Ministry of Finance Headquarters.

HEAD 10 —MINISTRY OF FINANCE
HEADQUARTERS

Sen. Arianna Hodgson: Mr. Chairman, the Ministry’s
core functions are conducted under Head 10, Ministry
of Finance Headquarters, which can be found on page
B-110. The work undertaken by the Ministry Headquarters is carried out through the following units:
• Policy Planning and Management;
• Fiscal Planning and Control;
• International Affairs and Regulatory;
• Domestic Affairs and Economic Policy;
• Treaty Management and Administration; and
• Office of the National Anti -Money Laundering
Committee.
In addition, grants are being given to the Bermuda Public Accountability Board, the Casino Gaming Commission, and funding has been provided for the work of the Tax Reform Commission, as well as the
continued development of the corporate income tax
framewor k.
The Finance Ministry Headquarters’ mission is
as follows: The achievement of economic prosperity and to ensure the financial security of Bermuda. In dis-charging its functions under the overall policy direction
of the Minister of Finance, the Ministry of Finance
Headquarters seeks to achieve the following outcomes:
• a Bermuda that maintains its position as a
domicile of choice for international business;
• a Bermuda where citizens have confidence in
the Government’s stewardship of the public
purse;
• a Bermuda where funding and resources are
available for key programmes and initiatives;
and
• a Bermuda where citizens regard Government’s policy responses to economic and financial challenges as appropriate and in the
national interest.
Mr. Chairman, in seeking to fulfil this mandate,
the Ministry of Finance Headquarters has a staff establishment of 18 permanent full -time posts, and its total
budget for 2024/25 is $7.2 million split between operational costs of $5.1 million and grants of $2.1 million. The total cost has risen by $389,000, or 6 per cent, with
operational costs increasing by $1.1 million and grants
increasing by $1.5 million. The decrease in operational
funding is primarily due to the Treaty Unit being merged
with the Regist rar of Companies. Excluding this reorganisation, costs have increased by $460,000 largely
due to the funding allocated to the Tax Reform

B ermuda Senate Commission of $225,000, and additional funding of
$100,000 to support the work plan of the Bermuda Public [Accountability] Board.
Grants have increased due to financial support
being given to the Gaming Commission and the allocations related to the Corporate Income Tax programme.
However, the Pension Commission grant has been reduced.
Policy Planning and Management
Sen. Arianna Hodgson: Mr. Chairman, the 2024/25
budget estimate for the Policy Planning and Management unit is $2.677 million, an increase of $374,000, or
16 per cent over 2023/24. This unit, under the leadership of the Acting Financial Secretary, provides advice
and support to the Minister of Finance, as well as overall strategic direction, oversight and management of
Ministry Headquarters and the departments that comprise the Ministry of Finance.
In addition, this unit manages the administration and other activities associated with the daily operation of the Ministry of Finance Headquarters. It plays
a key role in financial accountability of various quangos, as well as overseeing general financial and fiscal
oversight and accountability throughout the Government. Total staff in this unit is seven persons.
The $374,000 proposed increase in expenditure is primarily related to the change in allocation of
costs for the Bermuda Public Accountability Board and
funding for the Tax Reform Commission. The increase
in allocation to the Bermuda Public Accountability
Board from $300,000 to $400,000 allows for an additional staff member to reduce key man risk and to ensure that the board can more effectively deal with reviews and investigations.
The primary objective of the Bermuda Public
Accountability Board is to oversee the supervision and
enforcement of auditors who carry on audit business in
Europe and the United Kingdom in accordance with the
Bermuda Public Accountability Act 2011. The Tax R eform Commission has a diverse membership with participants from both political parties, the trade unions,
business communities and well as the third sector. Its
work in the upcoming year will be key to achieving the
goals of a fairer, better Bermuda which is able to effectively compete in the global marketplace.
Highlights of the Past Fiscal Year
Sen. Arianna Hodgson: Highlights for the Ministry of
Finance H eadquarters i nclude the following:
•c
oordinating the activities of the International
Tax Working Group, culminating in the introduction of corporate income tax legislation;
•oversight of financial matters to ensure appropriate financial management and accountability during the period when government’s emailsystem was compromised;•working with teams to ensure enhanced debt
collection;
•establishment and support of the Tax ReformCommission;
•ensuring more effective administration and co-ordination of financial administrative matters in
the Ministry; and
•working to ensure even more effective quangoand guarantee oversight.
I would like to express my sincere thanks to the
team who supported the Acting Financial Secretary, as
well as our new Chief Operations Officer, who has in
particular worked with the teams to assist in the debt
collection efforts throughout the Ministry.
For the upcoming year key projects will include
work on tax reform, including the continued development and implementation of the Corporate Income Tax
[CIT] regime; implementation of the PIPA regime in the
Ministry; working with quangos to further strengt hen financial accountability in governance; and working with
other teams to assist the analysis and cost to assess
financing options for major projects including health
care reform, education reform and the Tynes Bay
Waste -to-Energy facility.
Fiscal Planning and Control Unit: C ost Centre 20010
Sen. Arianna Hodgson: Mr. Chairman, the budget
for the Fiscal Planning and Control [Unit] in 2024/25 is
$568,000, which is $19,000 higher than the 2023/24
budget. A salary provision of $448,370 accounts for
79 per cent of the Budget Team’s allocation for
2024/25, and provides f or a four -person team led by the
Budget Director.
Mr. Chairman, significant work has been done
over the past few years to manage cost and grow revenues. This occurred in a climate where substantial
funding was required to effectively deal with the fallout
of the COVID -19 pandemic and provide relief in var ious
key areas to combat supply -chain related price increases and price hikes as a result of war and natural
disasters. Notwithstanding, we have been able to maintain and/or exceed our targets as we have moved toward achieving a balanced budget.
Mr. Chairman, the budget statement details the
performance in the past fiscal year against the previous
year’s forecast and provides detail on the national
budget estimates for 2024/25. A consistent theme is
better -than- expected performance in each year with
generally declining budget deficits and revenue projections exceeding forecast while current account expenditures remain relatively consistent with estimates.
These results were achieved against a backdrop of the
provision of additional relief in a number of key areas.
The Budget Office team played a key role in developing
revenue and expenditure estimates and monitoring
performance.
Mr. C hairman, c ontrolling gov ernment ex -
penditure has be en a nd still r emains a significant
220 18 March 2024 Official Hansard Report
B ermuda Senate commitment of the Government. In order to determine
high policy priority programmes, the Budget Office has
continued to utilise zero- based budgeting methodology
to assist in the development of the 2024/25 estimates.
Policy prioritisation at the start of the budget process
facilitates a better alignment of the allocation of limited
resources with Government’s overall policy initiatives
and objectives. Based upon the estimates of revenue
and expenditure, the Government has successfully balanced Bermuda’s budget for 2024/25 with a projected
surplus of $210,000. This budget surplus is only the
second budgeted surplus in 35 years.
Mr. Chairman, the last time Bermuda achieved
a balanced budget was in fiscal 2002/03, some 21
years ago. Following the turmoil of the great recession
after being battered by a once- in-a-century pandemic,
we will return this country back to a balanced budget.
And again, our sincere thanks go to the Budget Team
led by Ms. Tina Tucker for their work in achieving this
significant milestone.
For the fiscal year 2024/25 the unit has set the
objectives to provide support for the open budget process to enhance budget monitoring control and reporting, to continue development of budget preparation
methodology and website and to restructure the Fis cal
Planning and Control Unit.
International A ffairs and Regulatory U nit:
Cost Centre 20020
Sen. Arianna Hodgson: Mr. Chairman, the 2024/25
budget estimate for the International Affairs and Regulatory Unit may be found in section B of the Estimates
Book on page B -110. Accordingly, the budget estimate
for this unit in 2024/25 is $682,560, an increase of
$214,560, or 46 per cent over 2023/24.
Mr. Chairman, the International Affairs and
Regulatory Unit is the lead policy and oversight unit
within the Ministry of Finance Headquarters in relation
to the financial services sector. This International Affairs and Regulatory Unit is accountable to the Financial Secretary for the effective discharge of the unit’s
functions and through the Premier/Minister of Finance
to Cabinet and Parliament. The head of the unit, the
Deputy Financial Secretary, International Affairs and
Regulations, carries out the financial services policies
primary through the Ministry of Finance, Bermuda Monetary Authority [BMA], the Attorney General’s Chambers, the National Anti -Money Laundering Committee,
the Bermuda Public Accountability Board, the Chartered Professional Accountants of Bermuda, the Registrar of Companies, and specialists domestic and
global partners. In this way the International Affairs and
Regulatory Unit works to strengthen the financial services supervisory framework and key institutions that
enable access to the domestic economy and the global
economy.
The DFS [ Deputy F inancial Secretary], P amela
Burrows, t ook on an expanded role in September 202 3 as the Deputy Financial Secretary for international regulatory matters with operational responsibility for the Office of the National Anti -Money Laundering Committee and the Registrar of Companies as well as man-agement of her support team and her work with the relevant supervisory and financial services bodies. These
agencies now include the Bermuda Monetary Authority,
the Bermuda Public Accountability Board, t he Bermuda
Deposit Insurance Corporation [BDIC] and the Ber-muda Gaming Commission. I wish to recognise DFS Burrows for her excellent work and leadership which has resulted in this promotion.
Mr
. Chairman, the International Affairs and
Regulatory Unit operates in response to a broad range of opportunities and risks, which allow the Ministry to contribute actively to a continuous flow of information on ever -changing potential threats and opport unities to
Bermuda and its reputation. The International Affairs
and Regulatory Unit plans to respond to these challenges through various goals focused on advancing the
unit’s priorities and reflecting the outcomes the people of Bermuda deserve. These [thr ee] goals are as follows:
1.Ensure and support the fair, impartial, efficientand transparent development of regulation atthe national and international levels.
2.Strengthen capacity to secure regulatory solu-tions to economic security issues.
3.Strengthen the public diplomacy and support
bilateral and multi -lateral engagement.
Mr. Chairman, the unit is involved in a variety
of policy and management areas from regulatory reform in financial ability to anti -money laundering and
market access issues at home and abroad. In general, the scope of information requirements is broad, but in
some cases the scope is narrow. Either way the unit is
committed to meeting these goals through example and expert assistance.
The scope of the International Affairs and Regulatory Unit activities are as follows:
•To support the Minister of Finance and the Financial Secretary in coordinating the financial
services regulatory policy initiatives of the Gov-ernment.
•To oversee the Ministry of Finance component
of the financial services legislative programme,
together with the Bermuda Monetary Authority
and the Ministry of Legal Affairs.
•To provide policy and strategic advice to the
Minister of Finance and the Financial Secretaryon anti -money laundering policy initiatives together with the National Anti -Money Laundering Committee, pursuant to section 49 of theProceeds of Crime Act 1997.
•To provide policy and strategic advice to the
Minister of Finance and the Financial Secretary
on matters related to transparency, togetherwith financial services and related directives is-sued by the European Union, together with the


Bermuda Senate Cabinet Office, the Brussels Office, the London
Office and European Union specialists.
• To provide policy and strategic advice to the Fi-nancial Policy Council together with other domestic agencies and/or committees regarding
matters related to financial services.
• To provide policy and strategic advice to the
Gaming Commission, the Bermuda Deposit Insurance Corporation and the Bermuda Public Accountability Board on certain aspects of their
mandates.
Mr. Chairman in 2023/24 the International Affairs and Regulatory Unit was primarily focused on
technical and strategic assistance regarding the financial services sector at home and abroad. Specific mile-stones achieved by the International Affairs and Regulatory Unit in 2023/24 include the following:
• Maintained regulatory stability by ensuring
completion of the Ministry of Finance component of 10 financial service sector Bills and/or
statutory instruments including but not limited to digital asset business, insurance and investment funds and investment business proposals
submitted by the Bermuda Monetary Authority
in 2022 related to some aspects of banking and various levels of complexity. These proposals
have been prioritised for completion in 2024.
• In collaboration with the Ministry of Finance
colleagues this unit provided technical and
strategic advice on supervisory assessments,
sovereignty rating meetings in matters related to financial stability. This includes participation
in technical meetings with rating agencies,
government -to-government meetings with
other Overseas Territories together with participation of meetings with the Financial Policy
Council.
• As appropriate, the unit provided input on relevant United Kingdom, United States and European Union matters, as well as assisted in advocacy in domestic and external engagement
initiatives. This includes participation in
monthly executive and technical meetings with
the Bermuda Monetary Authority, quarterly
meetings with the Financial Policy Council and
annual meetings with the Fiscal Responsibility
Panel.
• Completed integration of the Registrar of Companies, the Treaty Unit and certain aspects of
the National Anti -Money Laundering Unit into
the division.
Mr. Chairman, in order to achieve its priorities
and pursuant to the Ministry of Finance’s business
plan, the unit will undertake the following key strategic
ownership goals in 2024/25: Firstly, matters related to the European Union:
The International Affairs and Regulatory Unit will work
with the Cabinet Office, the Bermuda Monetary Authority, the Bermuda Public Accountability Board, the Brussels Office and the EU Council to coordinate Bermuda’s compliance with various new directives. This
will include provision of technical and strategic advice
on legislative and policy matters. This work also includes preparation for regular visits by the Minister of Finance to meet with key European U nion stakeholders.
Matters related to National Anti -Money Laundering Committee in compliance with the Financial Action Task Force International Standards on Combating
Money Laundering and the Financing of Terrorism and Proliferation. Mr. Chairman, the unit will contribute t o
and support the implementation of Bermuda’s national
anti-money laundering strategy together with the National Anti -Money Laundering Committee. This work includes the provision of strategic and technical advice
regarding matters related to Bermuda’s comp liance
with standards set down by the Financial Action Task
Force.
Matters related to the United Kingdom. Mr.
Chairman, the unit will work with the Cabinet Office on
matters related to the financial services sector together
with the Bermuda Monetary Authority, the London Office and specialist partners on matters related t o equivalence and transparency, including accessible registers of beneficial ownership.
Matters related to the Organisation for Economic Co- operation and Development [OECD]. Mr.
Chairman, this unit will work with other units within the
Ministry of Finance to coordinate the Ministry of Finance response to OECD assessments as and when
required. This includes providing technical and strategic advice on all aspects of Bermuda’s corporate and regulatory framework.
The Gaming Commission. Mr. Chairman, the
unit will work with the Gaming Commission to further assess the supervisory framework. As for other sectors, this work is expected to include the provision of
technical and strategic advice on the relevant aspects
of gaming in Bermuda.
The Bermuda Deposit Insurance Corporation.
Mr. Chairman, the unit will work with the Bermuda Deposit Insurance Corporation to continue the development of Bermuda’s resolution framework.
The Bermuda Public Accountability Board. Mr.
Chairman, the unit will work with the Bermuda Public
Accountability Board to continue with the enhancement
of the Board’s mandate.
Mr. Chairman, in this way the Regulatory Unit
helps supervisors and businesses articulate the regu-latory market access and related challenges they face
to the government and the public. The unit’s primary
role going forward in the next year will be to cont inue to
work with the relevant finance teams, the Cabinet Office, the Attorney General’s Chambers, the Bermuda
Monetary Authority, the Gaming Commission, the Bermuda Deposit Insurance Corporation and the Bermuda
Public Accountability Board to meet Bermuda’ s domestic and international commitments and to continue to
222 18 March 2024 Official Hansard Report
B ermuda Senate implement t he structural adjustments t o the International Affairs an d Regulatory U nit.
Mr. Chairman, a salary provision of
$414,560.39 accounts for 61 per cent of the International Affairs and Regulatory Unit’s allocation for
2024/25 which covers three posts. The $214,560 increase in expenditure is primarily necessary to support
the cost of external specialists required in order to assist the Ministry in accomplishing its financial services
mandate.
Domestic A ffairs a nd Economic Policy:
Cost Centre 20030
Sen. Arianna Hodgson: Mr. Chairman, the 2024/25
budget allocation for Domestic Affairs and Economic
Policy unit is $294,000. This is a significant drop from
the prior year of $137,000, or 32 per cent from 2022/23.
As part of the restructuring, this unit will be led
by the Deputy Financial Secretary (Domestic and [Economic]) it will provide leadership and oversight to the
Accountant General’s Department, the Department of
Social Insurance, the Office of the Tax Commi ssioner,
and Customs as it relates to revenue matters. The team
will also provide research and analysis of economic
and financial conditions to help facilitate sound decisions on public policy, fiscal debt and guarantee management. The unit also manages the relationship with
credit rating agencies.
Mr. Chairman, I am pleased that this unit has
supported the assessment of several rating agencies
throughout 2023/24 and has resulted in positive ratings
being granted by Standard & Poor’s, Moody’s and
KBRA.
In the upcoming year it is expected to fill the
position of Deputy Financial Secretary (Domestic and
[Economic]). Once filled, this unit will be able to play the
required role in the coordination and oversight of all domestic and economic matters. It will also assist in tax
reform work and enhanced financial reporting.
Other initiatives include continuing to
•improve the sustainability of the government’s
funds, mainly the PSSF [Public Service Super-annuation Fund] and the CPF [Contributory
Pension Fund] in an updated framework that
allows for progressive contributions. In additionto the proposed change in the contribution
structure, adjustments will also have to bemade to other levers, mainly, retirement ageand benefits;
•work with the leading audit firm who has pro-vided a draft of scope of work designed to assist the Accountant General’s Department in
bringing the outstanding audits of the PensionFund up to date. We recognise the importanceof these efforts as part of wider work on pen-sion reform and sustainability and have taken
the decision to enlist additional resources toaddress both challenges within the current fiscal year.

•continue to work on the development of eco-nomic models for the forecasting of key economic indicators in government medium- term
fiscal data (amongst other things) to enhance
the execution of the Government’s fiscal andeconomic management strategy in considera-tion of the reform of the tax system.
•work with relevant teams to ensure a more coordinated and effective approach to debt collection in conjunction with the Ministry of PublicWorks launch of government -owned captive insurance company to further reduce costs an
d
c
reate efficiencies in relation to the provision of
insurance for government assets.
•work with the teams in the division to effectively
progress system upgrades and digitalisation
work to promote more effective provision of taxand pension collections and government ser-vices.
ANNOUNCEMENT BY THE CHAIRMAN
SENATE VISITOR

Senator, if I could just interject one
second.
I just want to introduce and welcome the Finance Minstry’s Acting Financial Secretary, Cheryl -Ann
Lister who joined us.
So welcome, Ms. Lister.
Back to you, Senator. Thank you.
Se
n. Arianna Hodgson: Thank you, Mr. Chairman.
[
Committee of Supply, continuing]
Treaty Management and Administration:
Cost Centre 20040
Sen. Arianna Hodgson: Mr. Chairman, the Treaty
Management and Administration Unit has been moved to Head 38, Registrar of Companies, and as such will be dealt with in that section. This move is to allow for
even more effective and efficient management of external tax matters, given the overlap in the relevant global requirements.
National Anti -Money Laundering Committee:
Cost Centre 20100
Sen. Arianna Hodgson: Office of National Anti -Money
Laundering Committee [NAMLC]. Mr. Chairman, the Office of NAMLC budget for fiscal year 2024/25 is $879,304, a decrease of approximately $10,524, or 1.18 per cent, from 2023/24.
One hundred per cent of this allocation represents the minimum level of funding required to achieve


Bermuda Senate under the provision of the core Secretariat services of
NAMLC including to meet Bermuda’s financial obligation to the Caribbean Financial Action Task Force.
Mr. Chairman, the purpose of the Office of National Anti -Money Laundering Committee is to provide
Secretariat support to NAMLC and to enable the Government to achieve the objectives of
• advancing the Government’s anti -money laundering and anti -terrorist financing policy initiatives;
• monitoring for changes in the international standards and for other relevant global developments that will affect Bermuda;
• supporting legislative and policy development
to address such changes; and
• coordinating measures to enhance Bermuda’s AML/ATF regime.
In addition to its administrative role for NAMLC,
the Office is also responsible for the management of all
NAMLC’s national initiatives such as the assessment of
Bermuda’s national money laundering, terrorist financing and proliferation financing risks, as well as managing the reviews of Bermuda’s anti -money laundering
and antiterrorist financing regimes by external bodies. Through its established coordination, cooperation and accountability mechanisms, NAMLC ensures that Bermuda has a strong and effective regime to combat
money laundering, terrorism financing and the financ-ing of proliferation. The competent authorities within
NAMLC assist international counterparts in the effort to
address these issues on a global scale.

Highlights of Achievements During 2023/24
Sen. Arianna Hodgson: Mr. Chairman, during the current fiscal year NAMLC has continued its critical focus on maintaining and where needed enhancing the effectiveness of Bermuda’s AML/ATF framework. This is
necessary to sustain the achievements noted in Bermuda’s 2020 Mutual Ev aluation Report as well as to
address recommendations made by the assessors in that report. NAMLC’s priority is thus on maintaining a
technically compliant and a broadly effective ALM/ATF
CPF framework. The goals of which are to combat and
minimise the occ urrence of money laundering and terrorist financing in Bermuda and to prevent proliferation
financing.
Mr. Chairman, during 2023/24 due to the need
to accelerate the completion of the fourth round of Mutual Evaluations while beginning early preparations for
the fifth round, the CFATF cancelled Bermuda’s second follow -up report. This report had been due in N ovember 2023 and instead CFATF notified Bermuda that
our fifth round of Mutual Evaluation was scheduled to
commence in 2026. This timing represents a change in
Bermuda’s position in the Mutual Evaluation’s line- up
bringing us back in line with the third round scheduled and thus giving Bermuda less time to prepare for the fifth round. Therefore, and notwithstanding the cancellation of the follow -up report, NAMLC continued
to progress several initiatives that were originally geared toward presentation of progress in the report to
CFATF.
The following work has been undertaken in
2023/24 to specifically remediate deficiencies and to
address recommended actions from Bermuda’s 2020
Mutual Evaluation Report. The Office of NAMLC led a
project to help NAMLC implement actions to address
new technical requirements imposed by the FATF Recommendation 2 dealing with domestic cooperation. To this end, the Office organised a series of consultation
meetings between NAMLC agencies and technical personnel from the PATI/PIPA Unit in the Cabinet Office.
Thes e meetings enabled discussions about how individual NAMLC agency’s coordination and domestic co-operation practices could be brought in line with data protection standards.
The Office also organised with the Privacy
Commissioner for NAMLC cohorts to participate in the Commission’s six -month “Road to PIPA” compliance
training programme. This training commenced in June and 11 NAMLC agencies successfully completed this
programme in December 2023. During 2023, the Office
provided significant support to assist with addressing
identified technical deficiencies, including support in relation to the preparation of drafting instructions for the
preparation of required legislation. This work is ongoing
and will involve progressing the legislative amendments in the upcoming fiscal year.
The Office of NAMLC also supported the BMA
with a conduct of the first sectorial risk assessment for
the digital asset business sector. The Office coordi-nated the involvement of other NAMLC agencies and
led relevant parts of the analysis to contribute to t his
assessment. The sectorial risk assessment started in
February 2023 and was completed in September 2023.
The final report on the findings is being progressed for
Cabinet approval. This risk assessment was part of the
technical work required to address s ubstantial new requirements to FATF’s Recommendation 15 that were imposed after Bermuda’s last onsite. As Bermuda has
not yet been assessed against these new requirements, this will be part of the assessment in the upcoming fifth round Mutual Evaluation.
Mr. Chairman, during fiscal year 2023/24 the
Office of NAMLC also prepared and published a report
which provided the consolidated inherent risk findings
arising from the most recent money -laundering and terrorist -financing national risk assessments. The publication of Bermuda’s risk assessment results is an essen-tial component of Bermuda’s fidelity to the international
standards which require countries to maintain an updated understanding of their risks and to ensure that
both public and private sector stak eholders in the
AML/ATF regime are made aware of the results of any national or sectorial risk assessments.
Mr. Chairman, in September 2023, as part of
our efforts to enhance AML/CFT [anti -money
224 18 March 2024 Official Hansard Report

Bermuda Senate laundering and countering the financing of terrorism]
knowledge of technical officers within NAMLC agencies
the Office facilitated a customised three- day AML/CFT
cryptocurrency training for all NAMLC agencies. This training was provided by the Basel Instit ute in Switzerland and was hosted online. The training provided practical guidance on key aspects of cryptocurrency and
blockchain and most importantly it afforded a hands -on
experience in understanding the mechanisms that sup-port investigation and evidenc e-gathering in criminal
cases involving digital assets and the blockchain.

Key Initiatives for the Office of NAMLC

Sen. Arianna Hodgson: Mr. Chairman, NAMLC focus
continues to be to ensure that Bermuda maintains its
position as a global leader in the fight to combat money laundering, terrorist financing and proliferation financing to protect the economy and our reputation from the
negative impact of international listings or that of enhanced monitoring in relation to AML/CFT.
Over the coming year this will gain mission- critical status as Bermuda begins to prepare in earnest for
the upcoming fifth round Mutual Evaluation with the first
submission due in early October 2026. Therefore, NAMLC will have to reckon with the recent si gnificant
changes made by the Financial Action Task Force, to the technical requirements in several of the recommen-dations of the FATF standards, the methodology and
the universal procedures for the assessment and the
follow -up review processes which were approved in
October 2023.
The new methodology and universal procedures renew FATF’s emphasis on effectiveness in our AML/ATF CPF regime while simultaneously focusing
on compliance with technical requirements only in ar-eas in which countries have already demonstrated weaknesses and in areas where the technical requirements are new. Therefore, the major priorities for Ber-muda in the coming year will be to ensure that our legal
and operational frameworks are appropriately updated
to align with FATF’s revised AML/CFT CPF standards;
continue to address shortcomings and weaknesses
identified by the assessors in our 2020 Mutual Evaluation Report; and ensure that any changes are made to
our AML/CFT CPF regime do not undermine our compliance with other FATF requirements thus undoing our
previ ous achievements.
Mr. Chairman, certain key national initiatives
will be undertaken in this upcoming financial year for which the Office of NAMLC will provide critical support
to the NAMLC. As these are national initiatives related
to preparations for the next Mutual Evaluation consistent with the approach taken in the fourth round,
funding will be provided from a grant from the Confiscated [Assets] Fund. The work of the Office of NAMLC in relation to these matters will include the following:
• Coordinate, manage and provide technical
leadership in the money -laundering and terrorist financing national risk assessment in
accordance with Bermuda’s national AML/ATF CPF policy.
• Updated national risk assessments for money -
laundering and terrorist financing, respectively,
are required to be conducted every three
years. This joint risk assessment is expected to start in March 2024. All NAMLC working
groups will be assessing both AML/ATF risk
simultaneously for the first time. This national
risk assessment is expected to continue to the
end of 2024.
• Plan for, coordinate and manage and provide
technical leadership in Bermuda’s first proliferation financing national risk assessment which
is to commence by January 2025.
Mr. Chairman, to facilitate the effect of progressing all of these initiatives, the chair and the Office
team will continue to work closely with the national anti -
money laundering Cabinet committee, NAMLC mem-ber agencies and other stakeholders.

Salaries

Sen. Arianna Hodgson: Mr. Chairman, the salary provision for the Office of NAMLC in 2024/25 is $367,746,
representing the allocation for two of the three full -time
employee posts with the Office of NAMLC’s establishment as these two posts will be filled. The salary provision representing a third unfilled full -time employee
post is allocated for a local consultant to allow for revi-sion of the role and then subsequent recruitment. The increase in salary provision is due to the recent salary uplift for all public officers.
The allocation of $200,000 for local consultants
will fund the fee for the Chair of NAMLC and has been
increased by approximately $15,038 to recognise a significant increase in time commitment required of the
Chair in advance the next Mutual Evaluation. Again,
Mr. Chairman, a necessary expense paid for out of a
consulting vote to ensure that Bermuda maintains its
stellar record in AML evaluations.

Training and Overseas Travel
Sen. Arianna Hodgson: Funding is also allocated for
expenses related to training and overseas travel to
CFATF meetings. Provision is also made for Bermuda’s annual membership contribution to CFATF which has increased for 2024 from $68,360 to
$100,000.

Recognition

Sen. Arianna Hodgson: I would like to thank Ms.
Paula Tyndale who has continued to lead the work of
the Office of NAMLC during 2023 and welcome Ms.
Kozele Cree se who has recently started as NAMLC
Coordinator to manage the Office of NAMLC team.


Bermuda Senate Pension Commission: Cost Centre 20070

Sen. Arianna Hodgson: Mr. Chairman, as a result of
significant cash reserves held by the Commission which has grown over the last few years due to the in-crease in regulatory fees, no grant was allocated to the
Pension Commission for this upcoming year. The Pension Commission i s a corporate body established under
the National Pension Scheme (Occupational Pensions) Act 1998. The Commission also has responsibility for
the administration of Pension Trust Funds Act 1966 and pension trust established and administ ered under
this Act.
Mr. Chairman, one of the main priorities of the
Commission following the pandemic has been the administration of Government’s economic relief programmes via the provision of refunds for plan members
from their private occupational pension plans. These
refunds provide timely and necessary financial support
to Bermudians and up to the 31
st of December 2023 the
amount of refunds under this pandemic programme
came to $234.4 million.
Mr. Chairman, in relation to other areas of activities and responsibilities of the Commission, I am also pleased to advise the following:
• During 2023, the Commission wound up 69 plans, compared to 31 in 2022.
• Registered 157 plan amendments, compared
to 91 in 2022.
• Approved 15 plan trustees in comparison to
one in 2022.
• Initiated zero civil actions against delinquent employers and their directors and officers compared to two in 2022.
• Conducted 176 compliance meetings with employers and plan members compared to 21 in
2022.
• Held 10 compliance meetings with plan admin-istrators compared to eight in 2022.
• Participated in nine public and/or advisory
committee meetings compared to two in 2022.
• Completed 16 transactions under the Pension
Trust Funds Act 1966 compared to 19 in 2022.
And as of the 31
st of December 2022, which
would be the most recent data available for planned administrators I wish to highlight the following:
The National Pension Scheme contained
51,111 plan members or former members. There was
a total of 3,293 employer plans. [Of which] 3,280 were
defined contribution [plans] and 13 of which were de-fined benefit [plans]. The total value of assets under the
National Pension Scheme was US$3.65 billion.
There were 535 self -employed plans. And finally, [there were] US$364,910 of plan assets [which]
were transferred to overseas retirement vehicles compared to $266,564 in 2021.
Mr. Chairman, the National Pension Scheme
(Financial Hardship) Regulations 2010 allowed Bermu-dians with a demonstrated financial need to get access to a portion of their private sector pension funds based on prescribed criteria for hardship. The summary of the
financial hardship application statistics provided by the
Commission for the 2023 financial year, and from inception, up to 31 December 2023 ar e as follows:
• total applications received —137;
• approved applications —113;
• declined applications —19;
• applications pending or withdrawn —5;
• total amount approved —$2,515,285.
Applications Approved by Type

Sen. Arianna Hodgson: [These are:]
• eligible education expenses —61;
• imminent threat of loss of principal residence—
21;
• imminent eviction from home for rental arrears —18;
• eligible medical expenses —9; and
• funeral expenses —4.

Since inception in August 2010, the summary
is as follows:
• total applications —3,965;
• of which applications approved—3,202;
• declined applications —596;
• applications pending or withdrawn —167;
• total amount of approved— $40,420,000.
Applications approved by type:
• eligible education expenses —1,276;
• imminent threat of loss of principal residence—
507;
• imminent eviction from home from for rental arrears —1,200;
• eligible medical expenses —208; and
• funeral expenses —11.

Pension Commission Goals
Sen. Arianna Hodgson: Looking ahead, Mr. Chairman, for the upcoming year the Commission has a
number of goals [as follows]:
1. Undertake a series of reviews on critical issues
and challenges facing the Occupational Pension Plan Sector in Bermuda and to make recommendations to the Minister of Finance on necessary legislative and policy adjustments.
2. Introduce a financial awareness campaign on
the importance of saving and retirement planning and the significant role occupational pen-sion plans play in achieving successful outcomes.
3. Complete the work to advance the reduction of
pension administrator fees that remain to be
completed.
4. Support the enactment of more options for do-mestic investment of pension funds to boost
226 18 March 2024 Official Hansard Report

Bermuda Senate the local economy which, Mr. Chairman, Honourable Senators will hear more about later in
this budget session.
5. Continue to strengthen its corporate govern-ance both at the board level and operationally.
6. Complete outstanding audits.

2024 Projected Revenue and Expenditure Items

Sen. Arianna Hodgson: Mr. Chairman, the Commission’s projected total revenue for the year is $1.31 million which consists primarily of regulatory fees received. The Commission’s projected total expenses for
the year is $1.961 [million], consisting of $1.515 [million] for salar ies and related benefits for 10 staff members and the remainder for general office expenses. The resulting projected position is a net deficit of $651,000.
Of course, I would like to extend my thanks to
the staff in the Pension Commission for their work over the past year. And a special thank you to Ms. Kelly Hod-soll.

Gaming Commission
Sen. Arianna Hodgson: Mr. Chairman, the 2024/25
budget estimate for the grant contribution for the Gam-ing Commission is $800,000. Since 2018, funding for the Bermuda Gaming Commission [BGC] has been
through an overdraft facility supported by a Government guarantee. On 27 March 2023 Butterfield Bank informed
the Bermuda Gaming Commission that the facility of $9.8 million was to have a 90- day extension and then
the overdraft was to be repaid in full. At that point the
Bermuda Gaming Commission did not have enough funds to repay the loan and over the next 90 days the Bermuda Gaming Commission sought other external
funding to mitigate this issue. They were unsuccessful
in securing funding against the balance that had to be
repaid on the 30 June 2023 and as the BGC had li mited
funds, the Bermuda Government as guarantor paid
$9,675,000 and the remaining $33,138 was settled directly by the Bermuda Gaming Commission. The
grant of $800,000 only represents partial funding with
the remainder of their income being generated by external fees and taxes, primarily through fees imposed
on cruise lines who wish to open their casinos while in
port. The total predicted spend for 2024/25 is $1.9 million. This is a significant reduction from the 2023/24 work plan which had a budget of $3. 7 million.
The funding will support six employees in a
work plan which will consist of continuing to address the issue of providing banking services to casinos,
which is critical for a casino to operate in Bermuda, review licensing and regulation of online gaming and provide support for problem gaming via the help line. I would like to express my sincere appreciation
to the team at the Gaming Commission who have been led by Ms. Charmaine Smith during this fiscal year.

Corporate Income Tax, Grant $1.278 million.

Sen. Arianna Hodgson: Mr. Chairman, in late 2023,
the Bermuda Government following extensive review and analysis of the relevant international requirements
passed the Bermuda Corporate Income Tax Act 2023.
This was a significant achievement representing strong and positive col laboration in consultation with the industry and with the public. Genesis of this initiative and
subsequent work was Pillar Two of a global agreement
reached in 2021 under the auspices of the Organisation
for Economic [Co- operation and ] Development [OECD]
and signed by more than 140 countries. This agreement requires a 15 per cent tax to be levied on a jurisdictional basis to in- scope entities and is commonly referred to as “the global minimum tax agreement.”
The OECD has issued model rules as part of
the framework for the implementation of the global min-imum tax [GMT] and these rules were the foundation
for the development of Bermuda’s regime to be considered compliant with these requirements. This Act imposes a 15 per cent corporate income statutory tax that
will be applicable to Bermuda businesses that are part
of multinational group with annual revenues of [€]750
million or more. In administering this tax, the Government must have an administrative body to do this work
with the appropriate systems and personnel to effectively address the complexities of tax collection, compliance and cooperation which is required in this re-gard.
In the 2023/24 year funding for this project was
done through the Policy Unit of Ministry Headquarters.
For the upcoming year a new cost centre has been established against which future costs will be applied to
ensure effective performance of primary objectives and
functions.
Mr. Chairman, in the coming fiscal year the
Ministry of Finance will continue to progress the corporate income tax project with an initial grant of $1.278
million. Mr. Chairman, the Unit will have the primary objectives of collaboratively building and imp lementing an
internationally credible Bermuda corporate income tax
regime that takes into consideration the unique characteristics of Bermuda’s international business community (spanning multiple sectors), designing an organisa-tional structure and recruiti ng a competent core executive team that is experienced, internationally credible, and able to put in place the framework required to expertly grow the organisation in the future. And building
and implementing from scratch processes and information technology systems that are robust and effective to make administration simplified, efficient, user -
friendly, scalable, flexible, auditable and technology friendly.


Bermuda Senate Mr. Chairman, the primary functions of the Unit
will include tax preparer services, return filing and processing, audit and compliance, enforcement and collections, dispute resolution, law interpretation and international tax cooperation.
Mr. Chairman, following the completion of
phase one, phase two of the Corporate Income Tax
project focuses on development and implementing the
key operational aspects of the corporate income tax regime in Bermuda. The primary objectives of phase two
include the ongoing development of technical tax and
administrative provisions. The development of the corporate income tax collection body including the personnel, IT systems and processes. Further to this phase
two also includes supporting the Bermuda Tax Ref orm
Commission in the achievement of its strategic policy objectives.
I wish to thank all of the team within Financial
Headquarters, which has been led by Ms. Cheryl Lister,
our Acting Financial Secretary who has been in the post
since the untimely passing of Mr. Anthony Landers. She will be retiring from the role at the end of this month
but will continue to provide strategic advice and support
over the next few months.
Mr. Chairman, this concludes the Estimates for
Head 10. I will now move on to Head 11, the Accountant General.

HEAD 11 —ACCOUNTANT GENERAL

Sen. Arianna Hodgson: Mr. Chairman, I now present
the budget for the Accountant General’s Department,
Head 11, which is found on pages B -113 through B -
117, and page C -11.
The Accountant General’s Department was established under section 4 of the Public Treasury (Administration and Payments) Act 1969. It has responsi-bilities for the administration of the Consolidated Fund.
The functions and responsibilities of the Accountan t
General’s Department are critically important in the role
of governance. The department is key in helping to undergird the financial controls and processes that are in
place with respect to the public purse.
The department’s mission statement is To develop and maintain quality financial reporting, em-ployee health insurance, treasury function, internal
control, and effective use of technology to aid in decision-making.

Consolidated Fund Administration, 1101

Sen. Arianna Hodgson: The department is divided
into two programme centres as follows: 1101, Consolidated Fund Administration, which oversees all of the
activities of the Consolidated Fund, and this is further
broken out into six sections.
1. Policy Planning and Management. Setting strategic direction and general administration of
the department. 2. Financial Reporting. Accounting and reporting
on the Consolidated Fund and other public funds.
3. Compliance and Disbursement. Execution of payments for purchased goods and services,
revenue receipting and treasury management,
collecting and recording of government revenues including fees and taxes, cash management and forecasting.
4. Administration of the investment of the pension funds under management and risk manage-ment and insurance. The total pension funds
investment under management is $2.76 billion.
It is broken out as follows:
a. PSSF —$632.8 million; and
b. CPF—$2.129 billion.
5. Bank Reconciliation. The reconciliation of all
government bank accounts.
6. Financial Systems. The management of the
Enterprise system supporting the government’s accounting platform.

Fund Administration, 1102
Sen. Arianna Hodgson: Fund Administration represents the Government’s share of employee benefits
programmes, namely, the Public Service Superannua-tion Fund (or PSSF), the Contributory Pension Fund (or
social insurance, CPF), the Government Employee
Health Insurance scheme (or G EHI), and administration of the scheme and payment of health claims. Ministers and Members of the Legislature Pension Fund
(or MMLPF).
The department continues to operate its staffing levels below its total complement of 40 post -holders
with there being 10 current vacancies. The project led by the Department of [Employee and] Organizational
Development is to assist in the recruitment of h ard-tofill posts. It is expected to be important to addressing the issues related to recruitment in this area. Notwithstanding the vacancies, the department persists in efforts to identify efficiencies within its approved organisational structure.

General Accomplishments in 2023/24

Sen. Arianna Hodgson: The Financial Systems section:
• Completed the application upgrade for E1 9.2
which will reduce the number of customised applications facilitating ease of future upgrades.
• Completed the prerequisites for the implementation of the vendor self -service deployment.
• Updated the E1 access process from paper to
digital working with the Forms Team.
• Worked closely with the Office of the Auditor
General and ministries to progress the annual
228 18 March 2024 Official Hansard Report

Bermuda Senate audit of the Consolidated Fund and Public
Funds.
• The Compliance and Disbursement Section continues to make vendor payments in a timely
and accurate manner, notwithstanding significant staffing challenges.
• Treasury functions and other operational service levels were maintained throughout the
year and worked closely with teams throughout the Government to ensure appropriate processing of key payments and continued effective financial oversight during the peri ods when
government systems were impacted by the
cyberattack.
The Accountant General’s Department has
been allocated a total budget of $86.68 million for fiscal
year 2024/25 which is broken out as follows:
• Consolidated Fund Administration estimate,
$5.97 million.
• Fund Administration estimate, $80.44 million.
• Capital estimate, $280,000.
This budgetary allocation represents an increase of $4.35 million, or 5.3 per cent, above the
2023/24 original estimates, which is mainly due to in-creased employee overhead as a result of negotiated
agreements with employees.
The 2024/25 revenue estimate is $1.99 million,
an increase of $1.25 million, or 167 per cent above the
2023/24 original estimate. This revenue primarily relates to interest earned on the investments in the Sinking Fund.
The current account estimates can be found on
pages B -113 and B -114.

Explanation of Significant Programme
Expenditure Changes
Sen. Arianna Hodgson: Beginning with the Consolidated Fund Administration. The current year’s request reflects a decrease of $61,000 which is primarily reflec-tive of a decrease in funding levels for the vacant post
currently existing within the department. With recruitment fees post scheduled to commence in the new fiscal year, it is anticipated that a full year’s funding will
not be required and the budget has been proportionately adjusted to reflect this. It should be noted that the
items that drive the department’s overall expenditure
are salaries, technical support, maintenance fees for
the various software systems that are used by the Accountant General and rent.

Fund Administration

Sen. Arianna Hodgson: This programme represents
the Government’s cost for employee benefits. These
costs are a function of the number of government employees and the rates relating to their respective bene-fits. For example, contributory pensions of social insurance is directly related to the national contributory
pension rates of contribution.
As the employer, the government ordinarily
matches its employees’ contributions to the PSSF, social insurance contributions (the CPF), GHI contribu-tions, except for Police, Corrections and the Regiment
for which the Government pays both the employer and
the employee share and the Ministers and Members
contributions to the MMLPF. Contributions made into the PSSF and CPF are invested to fund future pension
payments to vested retired Government personnel.
The increase in 2024/25 estimates for the government’s costs for employee’s benefits is primarily reflected in the uplift in salaries coming from salary negotiations and incremental increases in staffing levels that
are expected throughout the service due to the ongoing
work to hire full -time employees in hard- to-fill posts.
The 2024/25 estimate is comparable with the
current year’s expenditure.

Capital Estimates

Sen. Arianna Hodgson: Capital Funding. Technical
support and ongoing maintenance will be required in the 2024/25 fiscal year as the Oracle E1 system is continually enhanced to improve the business processes
and other important services provided. The depart-ment’s focus remains on leveraging the latest advancements in JD [Edwards Enterprise] One to optimise financial operations and drive continuous improvements.
The 2024/25 capital allocation will be used to
progress the following projects: Completion and deployment of the vendor self -service module.

JD Edwards Enterprise One 9.7 Update

Sen. Arianna Hodgson: This update promises enhanced user experience and performance and expanded cloud capabilities and the completion and deployment of an online payment system for the collection
and receipting of government revenues.

Key Initiatives for the Accountant General

Sen. Arianna Hodgson: Mr. Chairman, the key initiatives plan for the Accountant General’s department for
the fiscal year 2024/25 are to
• complete the online payment portal;
• complete the audit [for] Consolidated Funds financial statements for the year ending than 31
March 2024 no later than 31 October 2024;
• work with the PATI/PIPA Unit to develop, assess and implement the model necessary for
the department to be compliant with the Per-sonal Information Protection Act 2016.
• continue the work to clear the backlog of outstanding financial statement audits of Public
Funds;


Bermuda Senate • continue to deliver scheduled Financial Instructions training in conjunction with the Department of Employee and Organizational Devel-opment.
• timely processing of outgoing vendor payments;
• and 100 per cent of clean health insurance claims paid within 30 days in line with legislation.
Mr. Chairman, I would like to extend my appreciation for the work undertaken by the management
and staff of the Accountant General’s Department under the leadership of the Accountant General, Ms. Di-onne Morrison- Shakir.

HEAD 12 —BERMUDA CUSTOMS

Sen. Arianna Hodgson: Mr. Chairman, I will now
speak to the Bermuda Customs Department revenue
which is included under the Ministry of Finance. Cus-toms expenditures are included within the Ministry of National Security which was —
[Audio skip]
Sen. Arianna Hodgson: Mr. Chairman, the aftermath
of the global pandemic and the increasing uncertainty brought around by conflicts in the Middle East and
Eastern Europe, have strongly affected financial markets and impacted Bermuda businesses. In recognition of this, the Customs Department has continued to make available a programme of duty payment defer-ment for local businesses. The programme has allowed a temporary deferral of duty for up to six months for
qualifying businesses. However, in exceptional cases
arrangements can be made for even a longer deferment period. Mr. Chairman, during the 2023/24 fiscal year,
the Customs Department has operated an online auc-tion of imported goods that have been abandoned or
seized in order to recover the duty owed on them. The
website www.customs.bm
provides further details on
available items and allows bidders to submit offers for these items.
In addition, the following legislative initiatives
were introduced primarily to provide relief to busi-nesses and individuals given the cost -of-living challenges that currently exist.
• In keeping with the Government’s promise to
ensure that the 75 per cent sugar tax is focused on sugary sodas, candies and chocolates, provision was made for a lower duty rate of 25 per cent for low sugar drinks and nutrition bars. For non- dairy creamers containing some
added sugar, the duty rate was reduced to 35 per cent.
• The duty rate for accompanied personal loose[ -leaf] tobacco was amended from 35 per
cent ad valorem to $500 per kilogram. This change has harmonised the rate for loose to-bacco regardless of how it is imported.
• Recognising that business investment is key to economic growth, provision was made for
100 per cent end- use duty relief for goods imported for capital investment schemes for the
business establishments of personal care ser-vice providers. Personal care service providers include: non- medical personal care services
such as barbershops, beauty salons, fitness
centres or gyms, massage parlours and spas.
• To help reduce the cost of school uniforms for
the parents of school -age children, provision
was also made for a 100 per cent end- use duty
relief for articles of school uniforms imported by local businesses for resale. This relief covers uniform items such as jackets, blazers, windbreakers, wind jackets, school crest patches, ties, trousers, shorts, dresses, skirts, divided
skirts, shirts, sporting T -shirts, vests, jerseys,
pullovers, cardigans, and school shoes.
• Also, 100 per cent duty relief was provided for
imports for stone aggregate for use in the local,
commercial manufacture of structural concrete products such as ready -mixed concrete and
concrete blocks. This measure has helped to mitigate any increase to construction costs arising from the rapidly dwindling supply of local limestone aggregate.
• To encourage more investment in the further
development of our Island’s international level team athletes, provision was made to provide
100 per cent duty relief for articles of uniform
and equipment for Bermuda’s international
level sports teams.
• Provision was made to widen the scope of application of end- use [duty] relief for community
sports facilities so that renovations and improvements are now eligible for duty relief whether or not the project requires Planning permission.
• End-use duty relief for personal protective
equipment [PPE] and supplies was amended to empower the Minister of Finance to determine the time periods during which PPE may
be imported duty free. This change allows for the suspension of duty relief and its s wift reinstatement in the event of a resurgence of COVID -19 or a response to any future pandemics or other threats.
• To further assist the Bermuda Hospitals Board
in offsetting increased operating expenses, the
end-use duty relief for hospital operating supplies was amended by extending the period of
duty relief period until 31 March 2024.
• Provision was made to amend end- use
CPC 4243 by widening the scope of application of end- use duty relief to include asphalt
production as well as concrete products to
230 18 March 2024 Official Hansard Report

Bermuda Senate eliminate any competitive advantage that concrete product manufacturing may enjoy over
asphalt product manufacturing in respect to
driveway installations. This amendment has
also permitted duty relief savings on aggregate imports to be passed on to the Dep artment of
Works and Engineering in the repair and construction of public roads.
• A new end- use CPC was introduced providing
100 per cent duty relief for goods for all licensed day care centres and approved day
care provider premises. The duty relief enables licensed day care centres and approved day care providers to enhance the overal l quality
and safety of their facilities and homes to the
purchase of developmentally appropriate materials and equipment for the classroom and
outside play spaces.
Total Customs revised projected revenue (as
shown on page B -118 of the Estimates Book) for
2023/24 is $231.7 million and the projection for 2024/25
is $238.7 million.
Measures imposed in the previous financial
year to cap fuel prices at February 2022 levels were
also continued to assist consumers when necessary.
Analysis of the major revenues are as follows:
Customs duty $233 million, an increase of $6.5 million,
or 3 per cent. It is expected that duty collection will increase in 2024/25 due to improving economic conditions and consequently the forecast for 2024/2 5 shows
an increase of $6.5 million, or 4 per cent from the original 2023/24 forecast.
The duty revenue forecast is based on the expectation that economic conditions will continue to improve. Our closest major trading partner, the United
States, is seeing its economy strengthen as indicated through its unemployment rates close to a 50- year low,
[with] sustained growth in GDP. Inflation rates are falling which is expected to provide the Federal Reserve
the scope to lower interest rates. Whereas in the recent past global oil prices have reached new peaks, they
have now returned to lower, more normal levels. The
Government will continue to advance legislation which
will assist Bermuda’s economy such as introducing a
number of duty rate reductions and duty reliefs.
The Government has tasked the Cost of Living
Commission with identifying additional essential com-modities to be added to the Schedule of their Act
thereby reducing Customs duty that could provide price
reductions of those goods to consumers.

Other Revenue Sources

Sen. Arianna Hodgson: Forecast of revenue sources
other than Customs duty are expected to contribute a
total of $5.43 million during 2024/25, which based on
our forecast will equate to 2.3 per cent of the revenue
collected by Customs. There is little indication that receipts in these areas will change significantly from the revenue levels received during the 2023/24 fiscal year to date.
Mr. Chairman, sincere thanks to the Collector
Ms. Lucinda Pearman and the Customs team for their
work and support of Bermuda’s economy in this area.

HEAD 28 —DEPARTMENT OF SOCIAL INSURANCE

Sen. Arianna Hodgson: Mr. Chairman, the Department of Social Insurance, Current Account Estimates are shown on page B -119 of the Budget Book. The estimate for 2024/25 is $3 million which is $532,430, or
15 per cent, less than the original 2023/24 budget. This
budget is solely f or war pensions and gratuities.
Mr. Chairman, the Department of Social Insurance and its staff administers the Government of Bermuda’s Contributory Pension Fund and benefits to Sec-ond World War veterans. Mr. Chairman, war pensions
and gratuities are 100 per cent funded by the Consolidated Fund. The contributory pensions operations
within the department are 100 per cent funded by the
CPF as well. Expenditures are paid through the Consolidated Fund and recharged to the Contributory Pension Fund in accordance with section 3(3) of the Contributory Pensions Act 1970.

Mission Statement
Page B -119

Sen. Arianna Hodgson: The mission statement of the
department is To ensure contributions are collected
and benefits are paid.
While remaining true to our principles and values, we must keep up with the times in the way we serve and operate. We know that times change and
that our evolution must be substantial and continuous
in order to serve future generations efficiently and compassionately.
Mr. Chairman, the department operates under
two main Acts of Parliament to administer the Government of Bermuda’s social insurance programmes, as
well as the war pensions and gratuities.
The Contributory Pensions Act 1970. Under
this Act all employed and self -employed individuals in
Bermuda who are over the age of 18, or under the age
of 26 in the instance of full -time students who work for
more than four hours per week are required to pay contributions. There are two major classes of benefits paid out of the fund. The first contributory benefits for old age pension and gratuity, widow and widowers allowance and gratuity and disability benefits; and non- contributory benefits for old age pension and disability benefit.
The Pensions and Gratuities (War Service) Act
1947. Under this Act benefits are payable to Bermudian
war veterans or their surviving spouses who served
during World War II. There are currently 72 veterans or
their surviving spouses in the programme.


Bermuda Senate Mr. Chairman, highlights of 2023/24 are as follows:
The department of Social Insurance’s new Director, Mr. Gershon Gibbons, started on 1 May 2023.
The new director brings valuable knowledge to the de-partment having been responsible for administering
Bermuda’s Government pension funds, the enrolment
of employee benefits and managing numerous IT projects.
On 14 July 2023 the Contributory Pensions
(Amendment of Benefits) [(No. 2)] Order 2023 was ta-bled in the House of Assembly increasing pension benefits by 4.1 per cent, effective 16 August 2023.
A management consulting services review of
the department was completed and the report was received in February 2023. The review concluded that the
staffing of the department should be increased to serve the population better and a comprehensive review and
update of job descriptions is required.
The review also stated that there is a need to
review processes and systems to provide improved
pension administration and collection to reduce non -
payments of contributions, streamline operations and
ultimately execute the Department of Social Insurance’ s mandate.
The department continued to maintain effective
working relationships with the Debt Enforcement Unit of the Attorney General’s Chambers, the Department of Public Prosecutions, Department of Immigration, Office
of the Tax Commissioner and the Transport Cont rol
Department with respect to efforts to assist in debt collection. The department again participated in various
workshops and presentations where they were able to
provide clarity to attendees regarding pensions, bene-fits and contributions managed by the Department of
Social Insurance.

Cost Centres and Key Programmes
Sen. Arianna Hodgson: Mr. Chairman, the department operates five main cost centres.

Cost centre 38000, Senior Management
Administration

Sen. Arianna Hodgson: The Administration section
provides overall direction and management of the department. The budget estimate for this cost centre is
$2,121,700 which is an increase of $261,400 from the
2023/24 original budget of $1.86 million. This increase is due to a sal ary review which resulted in upgrades for
the employees of this section and unfunded positions
being funded in the 2024/25 budget. Additional funds
were also budgeted for the office upgrades and overhead costs.

Cost Centre 38010, War Pensions and Gratuities
Sen. Arianna Hodgson: The War Pensions Section
administers (found on page B -119) the benefits to war
veterans under the Pensions and Gratuities (War Ser-vice) Act 1947. The budget estimate for 2024/25 is $3
million, which is 15 per cent less than the previous year.
This budget i s based on 72 war veterans, or six less
than the prior year.
Currently, the significant benefits provided by
the programme are as follows:
• All veterans or spouses of the veterans receive a
monthly pension of $1,000.
• Medical benefits are 100 per cent covered.
• The benefits covered are FutureCare insurance premiums, hospital visits, hospitalisation, all tests
at KEMH, air ambulance and prescription drugs
over the $3,000 covered by FutureCare.
• Palliative [care] and long- term care are covered
up to $7,000 per month and a $5,000 funeral grant is refunded to their estate.
• Regular and specialist doctors’ visits have small
co-pays are reimbursed by the programme.

Cost Centre 38025, Benefits

Sen. Arianna Hodgson: The Benefits Section is responsible for the administration of benefits to members
of the Contributory Pension Fund, under the Contributory Pensions Act 1970 and the Contributory Pensions
and Workmen’s Compensation (Reciprocal Agreement) Act 1970. The budget estimate for this cost centre, is $489,800, which is an increase of $103,600 over
the 2023/24 original budget of $386,200. This increase is due to two vacant partially funded positions being restored to 100 per cent and one unfunded post being
funded for the 2024/25 budget year. The total benefits
paid for August 2022 to July 2023 for the CPS financial
year was $204,408,600 compared to $188,596,900 in
2021/22 which is an increase of $15,811,700 or 8.4 per
cent. This increase is parti ally due to the 16 August
2022 increase of 2.75 per cent being applied retroactively to 16 August 2021.
In 2022/23 the total benefits paid was $168.7
million, or 83 per cent, was paid for contributory pensions. And $14.1 million, or 7 per cent, was paid on widows and widowers’ allowances. Gratuities of $11.5 million, or 6 per cent, were paid. Mr. Chairman, $7.1 million, or 3 per cent, was paid for non- contributory pensions. The remaining $3 million in benefits paid for the period were for contributory and non- contributory disabilities.
The following is a breakdown of the types of
benefits paid:
• Contributory Pensions: $168,700,997
• Non- contributory Pensions: $7,141,347
• Contributory disability: $1,210,673
• Non- contributory disability: $1,747,149
• Widows’ allowances: $12,847,882
• Widowers’ allowances: $1,295,000
232 18 March 2024 Official Hansard Report

Bermuda Senate • Widows’ gratuities: $444,746
• Widowers’ gratuities: $168,815
• Overall gratuities: $9,680,532
• Other gratuities: $1,107,000
• Grand total: $204,480,580
Mr. Chairman, we commend the manager and
staff of the Benefits section who have processed the
benefits on time every month without fail.

Compliance, Business Unit 38040

Sen. Arianna Hodgson: The Compliance Section
monitors the compliance of employers and employees
according to the provisions of the Contributory Pensions Act 1970. The budget estimate for this cost centre is $1,033,500 which is $69,300 more than the 2023/24
original [estimate] of $964,200. This increase is related
to the expected recruitment of the debt collector for the
Department of Social Insurance in the coming year.
From August 2022 to July 2023 the total reported debt from employers and self -employed persons
increased by 1.6 per cent, from $49,047,000 to
$49,851,800. Inactive accounts of debt of $21,662,700
were included in the year’s debt total due to a mandated reporting policy. There was a total debt to the
CPF of $71,514,500. Given the progress that the Office
of the Tax Commissioner has made in relation to collecting outstanding debt, this will provide synergies and the possibility of effective use of shared res ources to
advance debt collection.
The Compliance Section continues working
with delinquent employers to establish practical ways
to reduce their outstanding debt. It oversees the execution of payment plans and follows up to ensure that they are monitored. The Attorney General’s Chambers D ebt
Enforcement Unit worked in close collaboration with the department to assist in the collection of outstanding contributions for the Department of Social Insurance. In
most cases the employers who the Department of Social Insurance are unable to contact and were delinquent over 120 days are the ones who are referred to
the Debt Enforcement Unit.
Outstanding contributions collected for the
contribution year 2022/23 amounted to over $2.7 million compared to $1.4 million in 2021/22. This amount
reflects the efforts of the Compliance staff and the mandate to collect the outstanding debt.
Mr. Chairman, the Compliance section is understaffed and experiences challenges to effectively
carry out compliance and debt collection functions as
required by the legislation. The 2024/25 capital budget
includes the purchase of debt management software to
automate the identification and monitoring processes.
The Department of Social Insurance will continue to work with the Attorney General’s Chambers
Debt Enforcement Unit and the Department of Public
Prosecutions to collect the outstanding debt through the court system wherever needed.
Cost Centre Contributions, 38045
Sen. Arianna Hodgson: The Contributions section is
responsible for the administration of records and ac-counts from employers and employees participating in the Contributory Pension Fund under the Contributory
Pensions Act 1970. The budget estimate for this cost
centre is $558,900, which is $75,200 more than that of
the 2023/24 original budget. This increase is due to negotiated salary increases for the employees of the section. The total contributions received from August 2022 to July 2023 amounted to $112, 622,600 compared to
$105,902,200 in the prior fiscal period which is an increase of 6.3 per cent.

Comparative Analysis of Current Account Estimates
2023/24 versus 2024/25

Sen. Arianna Hodgson: Salaries and Wages. An increase of $322,000 reflects the estimates for vacant
posts across the department which are budgeted at
100 per cent as opposed to 75 per cent for the prior
year. This increase is also due to a salary review which
resulted in upgrades for the employees of the department and unfunded positions being funded in the
2024/25 budget.
Professional services. The decrease of
$530,000 is primarily due to a decline in war veterans
medical claims and war pension awards due to a reduction in the number of [war] veterans expected to be
serviced.
Receipts Credited to Programme. This amount
represents the cost to operate the Contributory Pension Fund. And initially paid through the Consolidated Fund
and recharged to the Contributory Pension Fund is
made in accordance with the Contributory Pensions Act
1970, section 3(3). The recharge for 2024/25 is budgeted at $4.2 million which is an increase of $509,720 of
the original budget of the CPF over the prior year. This
increase is mainly the result of $301,600 increase in the
budget for vacant positions and an increase of
$280,120 in other overhead and operational costs.

Activities and Plans for Fiscal Year 2024/25

Sen. Arianna Hodgson: Mr. Chairman, for the fiscal
year 2024/25 the following activities are slated for the
department:
• Completion of the actuarial review for the Con-tributory Pension Fund which started at the end
of the third quarter of the 2023/24 financial
year. The actuarial review is required every
three years per section 35 of the Contributory
Pensions Act 1970. The r eview aims to indicate the financial condition and long- term sustainability of the Fund and to investigate the po-tential financial implications of future contribu-tion benefit increases to the fund.


Bermuda Senate • Utilise the Government portal to allow contributors to search for their social insurance number. By the second quarter of 2024/25 financial
year [there will be] applications available
online.
• Increase the public relation [PR] campaign to
raise awareness of rights and responsibilities
under the Contributory Pension Fund, the UK
[Bermuda] Reciprocal Agreement and the war veterans’ legislation.
• Continue to conduct orientation sessions for
newly registered employers as these have
proven to be invaluable.
• Implement remaining recommendations of the
MCS [Management Consulting Section] review.

Significant Progress Changes on New Initiatives

Sen. Arianna Hodgson: We will work with the Ministry
of Finance to create an overall strategy to specifically
target the collection of outstanding contributions owed to the CPF and to the Government as a whole. We will:
• Continue to participate in entrepreneurial workshops to educate the public about the benefits
and rights of employees and employers.
• Establish more cross -ministry initiatives to develop supportive strategies to close existing
gaps in legislation that allow persons to avoid
payment of obligations to the system.
• Develop and implement a debt management
system.
• The department will embark on a succession
planning exercise where current employees
will be given opportunities to be profession- developed and cross -trained. Succession planning will facilitate smooth transitioning when a
staff member terminates service or retires.
• Partner with the Department of Employee and
Organizational Development to encourage persons in the financial industry by creating opportunities in the Department of Social Insurance
through the Government bursary and training
programmes.

Capital Funding
Page C -11

Sen. Arianna Hodgson: The Department of Social Insurance has been allocated $284,000 in capital funding
for the purchase of debt management software. This
application will provide improvements for the collection
of debt using an effective and efficient approach, in-creasing vol untary compliance, limiting arrears of debt,
identifying noncompliant employers early and increasing debt collective funding has also been allocated to
the updating of office furniture.
Mr. Chairman, the public officers in the Department of Social Insurance are to be commended for their commitment to providing valuable service to the local
community and overseas beneficiaries.

HEAD 38 —OFFICE OF THE TAX COMMISSIONER

Sen. Arianna Hodgson: Mr. Chairman, the estimates
for Head 38, Office of the Tax Commissioner [OTC]
begin on page B -122. The total projected revenue for
2024/25 is $792.6 million, which is a substantial in-crease from the revised current year estimate of approximately $730 milli on and the prior year’s budget of
$726.6 million. A key contributor to the increase is expected to be the change in the base date for the new -
hire relief currently available to businesses.
The OTC’s total budget allocation for fiscal
year 2024/25 is $4.551 million. This is comprised of $4.051 million in current expenditure and $500,000 in capital expenditure.
Mr. Chairman, the primary responsibility of the
Office of Tax Commissioner is to effectively administer the timely and accurate collection of all taxes and
stamp duties in accordance with the applicable legislation. The Office of the Tax Commissioner’s vi sion is to
be a significant contributor to Bermuda’s prosperity and stability by being a progressive, modern tax administration committed to providing superior customer service,
continuous improvement and collaboration.
The OTC’s mission is To leverage modern
technology to ensure taxpayers’ compliance through
quality service and effective enforcement .
Mr. Chairman, the OTC is strategically divided
into four cost centres as follows:
• The Administration Team, 48000, provides the overall direction and management of the office
which includes strategic planning, staff development, training and general office support.
• The Stamp Duties Team, 48050, is responsible
for the administration and collection of stamp duties under the Stamp Duties Act 1976. This
includes the adjudication and processing of a
variety of legal instruments including but not limited to conveyances, tr ansfers, leases and
mortgages, as well as administering the Primary Family Homestead Designation Programme.
• The Audit and Compliance Team, 48070, is responsible for ensuring that taxpayers are compliant with the Tax Acts throughout the life of the taxpayer starting with their initial registration. The team conducts audits and inspections
of taxpayer books and records and is responsible for knowledge management and taxpayer
education.
• The Operations Team, 48080, oversees collecting and reporting on all taxes under the remit of the Office of the Tax Commissioner. The
team maintains taxpayer accounts, receivable
balances, levies penalties for late and
234 18 March 2024 Official Hansard Report

Bermuda Senate insufficient payments and is responsible for
debt collection and enforcement.

Key Achievements in 2023/24

Sen. Arianna Hodgson: Mr. Chairman, fiscal year
2023/24 saw progress being made in the OTC department’s continuous pursuit of its goal of becoming more
effective and efficient in its efforts to collect current
taxes and arrears. Mr. Chairman, collection of tax arrears has been a major priority for the Office of the Tax
Commissioner during the past year. At the start of this
fiscal year of 2023/24, the Office of the Tax Commissioner was given a target of collecting $7.5 million in
delinquent tax receivables. We are glad to report that
collections on delinquent receivables up to early No-vember 2023 had exceeded $15.6 million. This is a tes-tament to the improvements in debt collection tools and
processes that have been accomplished within the
OTC’s Operations D ebt Management Section.
Mr. Chairman, OTC’s Debt Management activities have been strengthened by technology improve-ments, streamlined processes and established timelines for case management that enable the agency to
make data- driven decisions and focus collection efforts
in a mor e targeted manner.
The OTC has enhanced its business intelligence reporting capabilities enabling the department to have a more accurate view of taxpayer compliance. By
gaining greater insight into the details associated with
outstanding debt cases, the OTC is able to segregate those debts with the lowest probability for collection
and to prioritise immediate efforts on those with higher
chances of successful collection. The OTC can identify those debts with greater opportunities for collection,
those which are more difficult and may require a more
stringent approach than those which are considered uncollectible. As a result of these improvements, the
OTC debt collectors can utilise best practices to make
more effective use of the efforts working with delinquent taxpayers and recovering past due taxes.
Mr. Chairman, as in previous years, payroll
taxes continue to account for a substantial portion of
Government revenues and we have seen increases in payroll tax revenues during the past two fiscal years.
This is despite payroll tax receipts for these years being
impacted by relief granted to certain sectors experiencing financial hardship due to the global economic climate and notable reductions in tax rates for all local
companies as well as for employees earning less than $132,000.
Mr. Chairman, it is important for all to remember that the Opposition branded these changes as “ir-responsible.” But those changes have resulted in the
highest payroll tax revenue in history and have set the
foundation for a balanced budget.
I think that it is irresponsible to double the debt
in four years and leave a $200 million mess like Morgan’s Point. But as usual, Mr. Chairman, this Government will press on.
The OTC’s new hire relief programme was initially established in 2018 and since then the programme has been both expanded and extended. Changes to the relief have included the extension of the
new hire relief for qualifying employers, established in
2018 and 2020 through to the 31 March 2024.
Revised payroll tax estimates for 2023/24 are
projected to be $522 million or 45 per cent of Government’s total estimated revenue for the year. This is an
increase of $35.3 million, or approximately 7.3 per cent
over the previous year’s actual payroll tax receipts of
$486.9 million.

Key Plans for Fiscal Year 2024/25
and Revenue Estimates

Sen. Arianna Hodgson: Mr. Chairman, in fiscal year
2024/25 the OTC will continue its work on modernising
its technology reporting capabilities and operations to
support effective debt collection, improve customer service and successful resolution of taxpayer noncompliance.
Mr. Chairman, the goals for debt management
for the next fiscal year are as follows:
• to ensure that the limited resources of the OTC are focused on the collection and compliance
efforts that are most likely to be successful;
• to continue to ensure that all debt collection activities are performed within a consistent process timeframe and framework;
• to continue to increase the successful enforce-ment actions such as an increase in court appearances for those taxpayers who are financially able yet refuse to be compliant with tax
laws; and
• to surpass the target set of at least $10 million
of outstanding debt.
There are also improvements planned for the
OTC’s Compliance Section. The goal of the Compliance Section is to help facilitate greater taxpayer com-pliance and greater success in enforcement efforts at
the administrative level. As such, the Office of the Tax
Commissioner intends to address underlying issues
which could increase tax arrears.
Mr. Chairman, planned improvements to minimise or prevent increases in new or outstanding taxes include
• identifying at -risk taxpayers early when they
begin to struggle to pay their taxes due to fi-nancial difficulties and place them on instalment plans at an earlier stage;
• ongoing monitoring of the debt collection process to track the effectiveness of collection ef-forts via key performance indicators and adjustments as needed to further improve debt
collection efforts;


Bermuda Senate • improving the tracking of noncompliant taxpayers to enable faster initiation of compliance activities and increasing the likelihood of successful collection of the tax debt, ensuring that
the resources of the Office of the Tax Commissioner are focused on t hose compliance and
debt management efforts that are most likely to be successful thereby decreasing the money
spent for action taken;
• increasing the number of compliance- related
activities such as audits; and
• decreasing the number of arbitrary assessments by identifying at -risk taxpayers early
when they begin to struggle to pay their taxes
due to financial difficulties and placing them on instalment plans at an earlier stage.
Mr. Chairman, the Office of the Tax Commissioner will also make further improvements on the Op-eration Section in relation to the production of end- ofyear accounts, receivable estimates and year -end reconciliation. This work is expected to upgrade the de-partment’s capabilities with respect to reconciling outstanding debt while also increasing efficiency for the
Operation Section by decreasing the time required to
complete year -end accounting tasks.
Mr. Chairman, continuation of debt collection
and other changes related to revenue generation pro-vide a base of support for the projected revenues of
$792.6 million, which is approximately $66 million more
than the current year’s original estimate of $726. 7 million.
Mr. Chairman, payroll tax revenues for the upcoming fiscal year are projected to rise to $580 million.
This represents an increase of approximately $68 million, or 13 per cent, over the original estimate of $512.5
million for the 2023/24 fiscal year.

Fiscal Year 2024/25 Budget Allocation

Sen. Arianna Hodgson: Mr. Chairman, as previously
stated the budget allocation for the Office of the Tax Commissioner for the upcoming fiscal year 2024/25 is
$4.551 million. This includes a $4.051 million in current
expenditure and $500,000 in capital expenditure. The
capital expenditure budget will be used to continue
modernisation efforts within the Compliance Section and to make further improvements in the Operation
Section regarding accounts receivable estimates and
year-end accounting.
For fiscal year 2024/25 the Office of the Tax
Commissioner’s salary budget has been increased by
4 per cent, or $117,000. All other expenses remain relatively the same.
Mr. Chairman, I would like to thank the staff of
the Office of the Tax Commissioner led by Mr. Derek
Rawlins, the Tax Commissioner, for their hard work and
their dedicated service to the Government and the people of this country.
HEAD 39 —REGISTRAR OF COMPANIES

Sen. Arianna Hodgson: I now present the budget for
Head 39 the Registrar of Companies [ROC] depart-ment found on pages B -127 through B -130 of the
Budget Book.
Mr. Chairman, the Registrar of Companies has
been allocated a total budget of $12,043,000. The esti-mate for 2024/25 [is] $12,043,000, which is 26 [per
cent] higher than the previous year. Budget 2023/24 is $9.54 million. Budget 2023/24 revised at $7.54 mil lion.
And then revenue for 2024/25 [is] $76.508 million found
on page B -129.
Mr. Chairman, the Registrar of Companies is
the government’s third largest revenue- generating department and is projected to collect approximately $76
million of revenue in fiscal year 2024/25. Its operations are regulated by several legislative mandates, including but not limited to the Companies Act 1981, the Limited Partnerships Act 1883, the Exempted Partnerships
Act 1992, the Limited Liability Company Act 2016, the
Overseas Partnerships Act 1995, and the Government
Fees Regulations of 1976. These provi de the framework for maintaining the Registrar of Companies and the timely collection of associated registration fees.
The department is also responsible for the administration of liquidations and personal bankruptcies as well as the regulation of Bermuda’s real estate and
dealers in high- value goods sectors.
The legislative framework for the Registrar’s
mandate in this capacity is the Companies (Winding-Up) Rules 1982, Bankruptcy Act 1989, Bankruptcy
Rules 1990, Real Estate Brokers’ Licensing Act 2017, Real Estate Brokers’ Licensing Regulations 2017, and
Regis trar of Companies [(Supervision and Regulation)]
Act 2020.
Bermuda continues to be impacted by ever -increasing pressures and imposed requirements from
other jurisdictions or regions, mounting challenges from
our competitors and increasing scrutiny from global and
regional standards setting and oversight bodies, such
as the Organisation for Economic Co- operation and
Development (the OECD), the Financial Action Task Force [FATF], the Caribbean Financial Action Task
Force [CFATF] and the European Union oversight bod-ies.
This changing landscape has driven the Registrar of Companies evolution as a regulator and this legislative mandate has been underpinned by the Reg-istrar of Companies (Compliance Measures) Act 2017
and the Economic Substance Act 2018. Indeed, Bermuda’s implementation of the Economic Substance regime is closely monitored and reviewed on a regular
basis by both the European Union and the OECD.
Similarly, FATF and CFATF have looked to the
Registrar of Companies to enhance its AML/ATF [Anti -
Money Laundering and Anti -Terrorist Financing] compliance framework with respect to legal persons as well
as in the real estate and dealers in high- value goods
236 18 March 2024 Official Hansard Report

Bermuda Senate sectors as the competent and supervisory authority
charged with their oversight.
Still in the regulatory lane, beneficial ownership
is another evolving space with policy positions emanating from the United Kingdom, the European Union, the OECD, the IMF [International Monetary Fund] and the
Financial Action Task Force, and commitments have
been made to both the European Union and the United
Kingdom. Beneficial ownership also features prominently in Bermuda’s AML/ATF economic substance regimes of which the Registrar of Companies has been designated to oversee.
For fiscal 2024/25, the ROC’s mandate within
the tax regulatory policy and compliance domain has expanded. The Tax Treaty Unit that was in the Ministry
of Finance Headquarters has been incorporated within
the ROC to exploit obvious synergies with the ROC’s
economic substance regime, as both economic substance in Bermuda’s tax treaty and information exchange regimes fall within the broader scope of the
OECD’s BEPS framework addressing international tax concerns.
Mr. Chairman, despite external pressures Bermuda’s corporate register remains resilient with a total number of new companies and partnerships on the reg-ister ending the year at approximately 16,000.
Mr. Chairman, the Registrar’s mission is To
leverage technology, enhance user experience and fa-cilitate regulation, accurate data collection and analysis. The department’s mission and objectives can be
found on page B -127. The objectives are as follows:
• to maintain the Registrar of Companies and ensure the provision of current and accurate
registry information in a timely manner;
• to ensure compliance with the Companies Act
1981 and related legislation in a consistent, fair
and judicious manner;
• to collect company fee revenues pursuant to
the Companies Act 1981 and other associated
legislation in accordance with Financial Instructions in a timely, accurate and efficient
manner;
• to process all company applications from the
private sector in a timely, efficient and professional manner;
• to provide technical advice to the Ministry of Finance and other government departments in a
timely manner;
• to provide guidance or direction to the public on matters related to the Companies Act 1981 and
related legislation in an accurate, timely and
professional manner;
• to diligently administer court -appointed company liquidations in personal bankruptcies in a
prudent and professional manner ensuring
compliance with applicable legislation, primar-ily the Companies Act 1981 and the Companies (Winding- Up) Rules 1982; • to promote and ensure compliance with the
Companies Act, Partnerships Acts, Limited Liability Company Act, Economic Substance Act
through active compliance monitoring and enforcement supported by the Registrar of Companies (Compliance Measures) Act in accordance with FATF, OECD, and new standards and recommendations;
• to promote and ensure compliance with the
Real Estate Brokers Licensing Act through active compliance monitoring and enforcement in
accordance with FATF recommendations; and
• to promote and ensure compliance of dealers
with high -value goods with the Registrar of
Companies (Supervision and Regulation) Act
2020 through active compliance monitoring and enforcement in accordance with FATF recommendations and Bermuda’s legislative
framework.

Major Achievements

Sen. Arianna Hodgson: Mr. Chairman, the department has been active this current fiscal year and some highlights include the following:
Administration and Restructuring. In order to
fulfil its mandate, the Registrar proposed a revised staff structure which was approved by Cabinet. The ROC is
currently recruiting to fill 28 newly created positions.
E-registration. The e- registration system remains highly effective, significantly reducing the average application processing time from weeks to mere days. Incorporation requests would typically process on the same day they are submitted. Our file up- load capacity has increased from 7,500 last year to 9,300 this year allowing users to access a greater volume of company information through our system. Our user base
has also expanded from 7,000 last year to 8,900 in
2023/24.
Insolvency and Liquidations. The department
added three support staff and is in the process of a re-cruitment drive to add a further full -time and support
staff to facilitate the administration of court -ordered liquidations and personal bankruptcies over wh ich the official receiver has been appointed. New staff will support and assist in the upcoming testing and implementation of the liquidation’s module of the online registry
system. The department introduced and collected ap-proximately $109,000 in new fili ng fees for voluntary liquidations. The department simplified filing require-ments to assist industry with filing voluntary liquidations
and recovered approximately $18,000 in unclaimed assets for the benefit of the Government of Bermuda.
Real Estate. The department continued implementation of a contingency plan for the real estate sec-tor as a consequence of the IT cybersecurity attack to
ensure Bermuda continued to meet its international
AML/ATF obligations. The department co- chaired the
supervisory forum of the National Anti -Money


Bermuda Senate Laundering Committee; effectively managed the collaboration with supervisory authorities to support coordinated AML/ATF supervisory functions amongst member agencies; and facilitated agency cooperation on the
national AML/ATF action plan and strategy. The de-partment successfully completed numerous live webinar trainings on money laundering through the property
sector and information sharing with the focus on understanding the problem of money laundering through real
estate. [The department] successfully completed the
FATF standards training course, Train the Trainer at the FATF Institute in Busan, Republic of Korea from the
27 November to 1 December 2023.
Compliance. The department began the implementation of the Economic Substance Compliance programme in keeping with Bermuda’s commitment to cooperating with the EU and the OECD in the implemen-tation of the International Tax Governance standards.
Ensuring co mpliance with enforcement actions in 2023
generated penalties of $868,000. Long- term successful
compliance and enforcement actions will result in
greater compliance by Bermuda- registered entities with
statutory requirements. The department successfully
completed the monitoring assessment conducted by
the OECD’s FHTP Secretariat, and also successfully participated in the OECD’s cybersecurity assessment.
Finally, the department also began the implementation of the Corporate Governance Compliance Programme.
Mr. Chairman, the ROC is pivotal to the continued success of the international and domestic business sectors in Bermuda and stemming risks related to the
EU’s Annex I (or the black list) and Annex II (the grey
list) for non -cooperative jurisdictions for tax purposes,
the EU’s AML list and the FATF high- risk jurisdictions,
subject to a call for action (the FATF list).
Bermuda, consistent with its reputation as a
quality international centre has committed to having a robust and comprehensive risk -based compliance
framework with adequate resources to give it full effect.
This budget proposes to provide the increased resources for the effective implementation of the department’s expanded mandate, and to appropriately address the significant threats that Bermuda is facing.
The estimate for 2024/25 at $12.043 million [is]
up $2.503 million from the previous year. The 2023/24
budget was $9.54 million and the 2023/24 revised
budget is $7.54 million.
Revenue 2024/25 on page B -129 is $76.508
million and FTEs are 37.
Mr. Chairman, the budget for the Registrar of
Companies is set out under seven cost centres. Those
are:
• Policy Planning and Administration;
• Finance and Revenue;
• Entity Registration;
• Insolvency and Liquidations;
• Real Estate and Licences;
• Treaty Management and Administration; and • Compliance.
The total account expenditure found on page
B-128 is estimated to be $12.043 million for 2024/25.
This represents an increase of $2.503 million, or 26 per
cent more than the original budget of 2023/24. This increase is primarily due to the transfer of responsibility
for the Treaty Unit from the Ministry of Finance to the Registrar of Companies. Additional resources are also
required by the ROC in support its extended role to enforce compliance under the Economic Substance Act,
the Companies Act, and other r elevant Acts.

Policy Planning and Administration

Sen. Arianna Hodgson: The Estimate for 2024/25,
down 3 per cent from the previous year at $6.103 million. The budget for 2023/24 was at $6.3 million. The
FTE was 2 .
Mr. Chairman, the Policy Planning and Administration cost centre includes planning, strategic direc-tion, administration and other activities associated with
the daily operation of the Registrar of Companies Department.
The information technology, financial and administrative support, budget development, accounting, personnel administration and general office administration are also included in this cost centre. Expenses under this cost centre include the salary of the Registrar
and all operational costs of the department. The budget
decrease of $197,000 for this cost centre for the fiscal year 2024/25 is a result of a reduction in the cost of
engaging consultants as the new staff positions are
filled.
With the continued increase in personnel the
Registrar of Companies has outgrown its current office
space located at the Government Administration Build-ing. The Estates Section of the Ministry of Public Works
is assisting in identifying alternative accommodation for
the Registrar’s offices.
Cost centre 49010, Finance and Revenue. Estimates for 2024/25 are down 10 per cent from the previous year to $665,000. The budget for 2023/24 stood
at $740,000. The Revenue for 2024/25 are actually at
$76,188,000. The FTE is 7.
Mr. Chairman, the Finance and Revenue cost
centre is responsible for the collection of the annual fees submitted by companies in accordance with the
Companies Act 1981, the Segregated Accounts Com-panies Act 2000, the Partnership Act, the Limited Liability Company Act 2016 and the Real Estate Brokers’
Licensing Act 2017.
The Registrar of Companies previously collected approximately $68 million in revenue annually.
However, the imposition of a fee to cover regulatory costs will result in an increase in expected revenue. To
ensure adequate controls around completeness, accuracy and timeliness of collecting revenue, this section
and staff and process come under the direct oversight
of the departmental controller. Estimated revenue for
238 18 March 2024 Official Hansard Report

Bermuda Senate this cost centre is reflected on page B -129 and is
$76,188,000, or 99 per cent of the total revenue anticipated for the department. The balance of revenue is
derived from licences, general licensing and insolvency
cost centre which I shall discuss in due c ourse.
Cost centre 49020, Entity Registration. The estimate for 2024/25 is up 74 per cent from the previous
year to $1.332 million. The budget in 2023/24 stood at $764,000, FTE 15.
Mr. Chairman, this cost centre includes 10 persons involved in the registration of companies and the processing and maintenance of statutory and legal documents which must be registered and available for public inspection in accordance with the prevailing legislation. In 2024/25 the ROC will take responsibility for
managing and maintaining the beneficial ownership
register. The budget increase will be used to pay sala-ries of staff currently being recruited for this new activity.
Cost centre 49040, Insolvency and Liquidations. Estimates for 2024/25 are up 28 per cent from
the previous year to $468,000. The budget for 2023/24
looked at $366,000. And the Revenue for 2024/25 is
identified as $320,000, found on page B -129. FTE is 5.
Mr. Chairman, this cost centre is responsible
for the execution of court orders to administer liquidations in accordance with the Companies Act 1981,
[Companies] (Winding- Up) Rules 1982 and personal
bankruptcies in accordance with the applicable provisions of the Bankruptcy Act 1989 and the Bankruptcy
Rules 1990. Expenses under this cost centre primarily
encompasses salaries of five full -time staff. Other expenses include the cost of various professional ser-vices, that is, legal, accounting, contractors, et cetera,
in administering court appointed corporate liquidations
and personal bankruptcies. The budget increase will be used to pay salaries of staff who are currently being re-cruited. The estimated revenue for this cost centre is
reflected on page B -129 i s $320,000 which is the balance of the total estimated revenue mentioned earlier.
Cost centre 49050, Real Estate and Licences.
The Estimates for 2024/25 are up 97 per cent from previous years to $573,000. The budget for 2023/24 sat at
$290,000. FTE is 6. Mr. Chairman, this section is re-sponsible for the processing and issuance of licences
and permits to exempted local and overseas companies to carry on business in Bermuda; the processing
and issuing of licences to and the regulation of real estate brokers and agents and ensuring industry compliance through active monitoring and enforcement. Ex-penses under this cost centre include t he salaries of six
persons. The budget increase will be used to pay salaries of staff currently being recruited.
Cost centre 49070, Treaty Management and
Administration. The Estimates for 2024/25 are up 2 per
cent from the previous year to $1.573 million. The
budget for 2023/24 is $1.549 million. FTE is 4.
Mr. Chairman, budgetary and administrative
responsibilities for the Treaty Unit will be transferred from the Ministry of Finance to the Registrar of Companies, effective 1 April 2024. The budget for this unit in
2024/25 is $1,573,000. This represents a nominal increase of $24,000, or 2 per cent, to this budget allocation for this period compared to the original 2023/24
budget estimate. The work of this unit continues to diversify from the original core activity that led to its creation. That is, the negotiation and processing of international tax cooperation on the by -request basis.
Mr. Chairman, the Treaty Unit’s remit is
• to negotiate and administer agreements related to the bilateral tax information exchange
with member countries of the European Union, G20, OECD, white listed jurisdictions and other
key countries;
• to participate in the OECD multi -lateral tax information exchange treaty with more than 100 participating countries;
• to manage and administer requests for tax -related information received under the provisions
of Bermuda’s tax agreements, and
• to ensure that Bermuda operates in keeping
with the common reporting standard for the
OECD, the country -by-country reporting standard of the OECD, the TIEA [tax information and exchange agreement] exchange of information
on the by -request basis standard of the OECD,
reporting standard of the OECD, and any new
tax reporting standards of the OECD.
Mr. Chairman, the Treaty Unit, in addition to
negotiating and managing international tax treaties, has also increasingly worked with Bermuda’s international business stakeholders to address international
tax policy threats. The international business sector
continues to be the bedrock of our economy and there-fore the work of the Treaty Unit is critical to the protection of this significant contributor.
Mr. Chairman, the Treaty Unit’s main achievement in the current fiscal year is to play a key role in Bermuda’s response to the emerging OECD global tax
standard. The Treaty Unit provided policy advice for
Bermuda’s input into the G20, OECD inclusive frame-work on the two- pillar solution of BEPS.
Mr. Chairman, the most well -known element of
this work is the G20 OECD global minimum tax of 15 per cent, which represents one of the biggest challenges in the history of Bermuda’s international business sector and thus is also a significant threat to Bermuda’s economic stability. Therefore, the Treaty Unit,
on behalf of the Minister of Finance, has been working
in close consultation with various international business
stakeholders for almost the past three years on a con-sistent basis. Some of those interna tional business
stakeholders are now members of the newly appointed
International Tax Working Group, to which the Treaty
Unit provides support and advice in their critical deliberations on the appropriate implementation of this new
global agreement.


Bermuda Senate Mr. Chairman, the Treaty Unit’s management
of Bermuda’s compliance to the OECD and European
Union international tax policies has become the majority component of the Treaty Unit’s work. Although the
Unit continues to negotiate and manage tax treaties and updates to Bermuda’s tax treaty relationships
when required, the Unit is also involved in managing
aspects of the threat posed by the EU listing process
which represents a constant form of threat.
Mr. Chairman, there are at least five separate
but equally volatile doors to EU listing EU OECD eco-nomic substance. And the following OECD regimes
handled by the Treaty Unit:
• OECD common reporting standard;
• OECD country -by-country reporting standard;
• OECD TIEA exchange of information on the
by-request basis standard; and
• participation in the OECD Multilateral Tax
Treaty.
Mr. Chairman, there is also a likelihood that the
OECD global minimum tax regime, which has already
been approved by the European Union and with plans being announced in other countries, will be added to
the OECD standards, which the EU monitors.

Senator, I just want to provide a time
check that it is 6:42 and we have until 7:25. So if you can provide time for Senators to ask questions and re-ceive responses that would be very helpful. Thank you.
Sen. Arianna Hodgson: I should be wrapping up in the
next 10 to 15 minutes. So . . .
Mr. Chairman, Members opposite in debates
have stated that other jurisdictions are not implement-ing the global minimum tax in an attempt to cast doubt
over this Government’s decision which was taken in line with international business and where we see international business fully supportive of the Government’s efforts.
Why, Mr. Chairman? Because they do not
have a short -term approach to the management of Bermuda’s economy. And they realise (like this Government understands) that non- compliance with international standards will result in a negative listing from the
European Union which will negatively impact our entire
business environment.
While both the timing and implementation of
any such measures in various countries remain highly uncertain, the potential impact on Bermuda’s attractiveness is significant. Therefore the work of the International Tax Working Group is important.
Mr. Chairman, the Treaty Unit will continue the
following initiatives during the next fiscal year:
• Negotiating tax information exchange agreements and other agreements related to tax information exchange and associated agreements or negotiate revisions to existing tax agreements so as to maintain Bermuda’s tax
agreement relationships with member countries of the EU, G20 and OECD and other
countries.
• Seeking to keep Bermuda compliant with the OECD tax standards especially during a period
of revisions to Bermuda’s domestic tax regime.
• Administering requests for exchange of tax -related information on the by -request basis received from Bermuda’s over 100 partner countries.
Cost centre 49080, Compliance. The Estimates for 2024/25 are up 23 per cent from the previous
year. The budget for 2023/24 is $1.08 million. FTE is
11. Mr. Chairman, the Compliance cost centre is responsible for encouraging and ensuring compliance via
powers executed through the Registrar of Companies
(Compliance Measures) Act 2017 with other relevant
Acts, most notably the Companies Act 1981 and the
Economic Substance Act 2018, including ensuring adherence to the filing, registration and other corporate
governmental requirements of the relevant Acts, to inspect registered entities for the aforementioned pur-poses and to investigate instances of a registered entity’s failure to comply with the provisions of the Registrar of Companies (Compliance Measures) Act 2017
and/or any other relevant Acts.
The Compliance Unit is being enhanced as a
consequence of the requirements placed on Bermuda by the European Union and the OECD. It is the expectation of these international bodies that Bermuda not
only have sufficient people and resources to fulfil its
compliance requirements, but that those people resources have adequate prerequisite skills and training.
Consequently, the existing compliance posts are being amended to recruit an increasing number of technically
proficient individuals. The budget increase will be used
to pay salaries of staff currently being recruited.
Before I go on, Mr. Chairman, is important to
make a point that the success of the Registrar of Companies while they are seeking to hire persons to fill roles, has been achieved by consultants. We have
hired consultants to ensure that we stay off of the international negative lists. The same consultants that the
Opposition tends to complain about have assisted not
only this Government but this country in ensuring that
we are a world- class international financial centre free
of international negative listings. Some may assume that the Opposition may take a different approach if
they were in Government just for political expedience,
but not in the best long- term interest of the country, an
interest the Government has demonstrated time and
time again through it s prudent and deliberate attention
to international evaluations.
Mr. Chairman, I now refer to page B -128, [Analysis of Current Account Estimates]. The 2024/25
budget allocation showed an overall increase of $2.503 million. As previously mentioned, the transfer of the
Treaty Unit resulted in a budget increase of $1.573 m illion. Additionally, increases in personnel resulted in a
budget increase of $1.206 million, reflected in the Entity
240 18 March 2024 Official Hansard Report

Bermuda Senate Registration, Insolvency and Liquidation, Real Estate
and Licensing sections. These increases are partially
offset by a reduction in the cost of professional services
as the ROC moves toward full implementation of its revised staff structure.
Mr. Chairman, there are no other significant
changes between budget estimates for 2023/24 and
2024/25 fiscal years.
Revenue. Mr. Chairman, I would like to touch
upon the revenue generated by the Registrar of Companies. These figures can be found on page [B -129]
and the department is forecasting an overall revenue of
just over $76 million. This is a decrease of $140,000, or
less than 1 per cent, on projected revenue over the
original revenue estimate for 2023/24.
In 2020, the Registrar undertook a review of
the department’s corporate fee structure and identified
potential fee changes that would expand its revenue
base. Following consultation with key stakeholders,
new transaction fees were introduced in April 2023. In
line with the Registrar’s increasing regulatory function
the department proposed new corporate regulatory fee
in 2023/24, which will be implemented by 31 March
2024. This fee will be applied as an annual fee payable
at $150 for local companies and $500 for non- local
companies. This initiative is expected to add $6 million
in revenue.

Manpower

Sen. Arianna Hodgson: Mr. Chairman, the department’s budget supports an establishment of 50 full -time
equivalent positions. The importance and need for fur-ther increases in resources to meet the increasing ex-ternal threats has already been highlighted. Addressing
these threats is critical to protecting key sources of revenue for the Bermuda Government which in turn allows
us to provide services to the public.
The department must have the resources to
ensure that Bermuda’s corporate citizens are in compliance with Bermuda legislation relating to the carrying
on of business in Bermuda and from within Bermuda.
Additionally, roles that were previously performed by
consultants in managing insolvencies and liquidations
were converted into substantive posts to generate
greater operational oversight, efficiency and cost savings.

Capital

Sen. Arianna Hodgson: Mr. Chairman, I would like to
now turn to the new electronic registry system. In step
with this Government’s modernisation efforts, the department introduced its online economic substance
declaration platform in May 2020 and implemented its
full online registry system in June 2021. This system now provides real -time access to publicly accessible
company data and has streamlined the registration process. The Registrar of Companies has been allocated $300,000 in capital funding for expanding the
functionality of the system to include the beneficial
ownership register and to provide for other improvements in system efficiencies. These improvements were initi ally expected to be completed in the current
year; however, some development work has been deferred. Additionally, the Registrar of Companies has
been allocated $45,000 for the purchase of computer
equipment for use by the newly recruited staff.
Mr. Chairman, the new system is similar to
those already in use in other jurisdictions and will assist
in maintaining Bermuda’s competitiveness with other
offshore registries.

Plans for the Upcoming Fiscal Year

Sen. Arianna Hodgson: Mr. Chairman, the department has now become a bona fide regulator, having
evolved from its primary purpose as a repository for
corporate filings. The international pressures being exerted on our jurisdiction from the various aforementioned regulatory and other bodies has meant that the
department has had a need to review its organisational
structure and resources with a view to staying ahead of
various international sanctions that could have detrimental impacts to our local economy.
The initial planning and instruction work has
been completed, and over the year we expect to see
the implementation of that plan with a robust bolstering
of resources and an appropriate amendment to the organisational function to facilitate the department’ s ability to give robust regulator capable of meeting international standards.
In the review of how the department will deliver
services to not only address international regulatory
bodies but also the need for Bermuda to be a more responsive jurisdiction in which to do business, the department is reviewing the legislative framework around
several key initiatives with a view to make enhancements. These include:
Amendments to section 129A of the Companies Act 1981 to remove the requirement for a licence
for a DABA -licensed company so as to hasten the incorporation process for select FinTech companies and
amendments to apply penalties for carrying on business without a 129A or 114B licence.
The second phase of modernisation amendments to various pieces of legislation administered by
the Registrar to accommodate the electronic registry so
as to ensure that the legislative framework reflects the
department’s ability to work in a paperless virtu al environment. With respect to Bermuda’s economic sub-stance regime, the department plans to continue their
engagement with both the OECD and the EU with respect to level -setting amendments to the Economic
Substance Act. Additionally, as the compliance regime for economic substance develops, the department is
reviewing possible amendments to the Registrar of


Bermuda Senate Companies (Compliance Measures) Act 2017 with a
view to streamlining the enforcement process.
Amendments to the Real Estate Brokers Licensing Act 2017 to strengthen the AML/ATF framework, to streamline the licensing process and ensure high level of competence amongst licensed brokers
and agents by increasing the minimum experience requirements and imposing continuing educational requirements.

Reduction of red tape by replacing antiquated
legal processes that require companies to incur legal
fees for routine interactions, such as corporate leasing
of office space. To overhaul Bermuda’s bankruptcy legislation to bring the following in line with c urrent international standards:
• official receiver obligations;
• reduction of administration of debtors and
bankruptcy estates;
• the period spent in bankruptcy for debtors and
bankrupts before eligible for discharge;
• amendment of the Companies Act to limit the timeframe in which an applicant can make a
claim for unclaimed or undistributed assets to
assist the Bermuda Government with certain
availability and lack of disruption of public
funds;
• to bring Bermuda in line with other Commonwealth jurisdictions;
• amendments to the Companies Act to specifically include a refund procedure and to limit the
time in which a company can make a claim for
return of incorrectly or mistakenly paid taxes to
bring clarity to the issue of refunds and claims
and to update the legislation to international
standards; and
• the introduction of fees as a percentage of assets distributed in cases where the official receiver acts as trustee or liquidator and realises
the assets with the aim to offset the cost of ad-ministering insolvency and bankruptcy proceedings.
The Bermuda Government is committed to implementing beneficial ownership disclosure in line with
the European Union’s anti -money laundering directives
and the Financial Action Task Force commitments. The ROC has been tasked with designing and implement-ing a beneficial ownership register and disclosure
framework transitioning the existing register and process from the Bermuda Monetary Authority to through-out 2024/25. The ROC will work with the BMA in ensuring that key activities surrounding the vetting and due
diligence processes are transferred over appropriately. The ROC will also review and enhance existing legislative requirements to support these commitments and to
ensure alignment with changed FATF recommenda-tions relating to beneficial ownership whilst also building out an electronic portal to allow entities and external stakeholders to access relevant information where appropriate.
Going forward the ROC will have ultimate responsibility for the receiving and sharing of information
on beneficial ownership and every eligible registered entity will be obliged to file details on beneficial ownership with the ROC. Such information will be accessible
by all relevant bodies. The ROC will also implement appropriate monitoring for compliance with the regulatory
obligations.

Proposed Outputs
Sen. Arianna Hodgson: [The proposed outputs for the
Registrar of Companies are:]
• Increased disclosure among registered legal
entities in the new electronic beneficial ownership register portal.
• Transitioning of beneficial ownership filings by
companies for the purpose of achieving appropriate related transparency objectives.
• Streamline legislative regimes through harmonisation of existing relevant exchange control
and beneficial ownership obligations that also reflect the most current FATF recommendations.
Technology has now become an integral part
of how the department operates. Consequently over
the year, further enhancements are expected to be
rolled out by the department.
• Establishment of a new website that will im-prove user experience and additional automation of applications and requests.
• Implementation of the liquidation/bankruptcy
module of the registry system which will facilitate online processing of corporate insolvency
transactions.
• Development of an electronic platform for the receipt of real estate licence applications to enhance efficiencies and streamline processes.
• Full migration of all entity data on to the e- Registration system and elimination of physical
files from the workplace creating a setting that
is as close to being paperless as is practical.
Mr. Chairman, I would like to extend my appreciation for the work undertaken by the Registrar of Companies, to the entire management and staff of the department led by Registrar, Mr. Kenneth Joaquin.
They have made significant progress over last year
and although they are not perfect, they have achieved
outstanding results for Bermuda on the international
front.
Thank you, Mr. Chairman, as this concludes
my remarks on the Registrar of Companies and I will
now move on to Head 58, Interest on Debt.

HEAD 58 —INTEREST ON DEBT
AND GUARANTEE MANAGEMENT

242 18 March 2024 Official Hansard Report

Bermuda Senate Sen. Arianna Hodgson: Debt and Loan Guarantees.
Mr. Chairman, the 2024/25 budget allocation for interest on debt is $127.8 million. Of this estimate, $127.1
million represents ongoing debt service costs for the
various debt instruments held by the Government of Bermuda, while $400,000 is allocated to facility fees
and other related costs. The remaining $250,000 is for
the costs associated with management of Government’s guarantees.
Mr. Chairman, a key achievement in 2023/24
was the repayment in December 2023 of the $50 mil-lion ten -year senior notes back to the people of Bermuda who supported the Government with essential financing back in 2013. This repayment has resulted in
the interest charged to the Government being reduced
by $2.375 million per annum. There is no further refinancing of the $3.2 billion of debt until January 2027.
Mr. Chairman, moving on to the amount budgeted for guarantee management. The budget is set to
be reduced by $250,000 to $250,000. Throughout
2023/24, significant work has been done to ensure that the Fairmont Southampton Princess project gets underway. As you are aware, ground was broken in January at the beach club. Equally the Morgan’s Point
company has now been established and responsibility for managing and running the site is now intended to
be transferred from liquidators to the new company.
Thus f unding from the Government will now cease as
the new company will source external funding.
Mr. Chairman, work is continuing to ensure that
entities with loans or credit facilities guaranteed by the Government are effectively managing their obligations
and are appropriately managing their financial affairs. The diligent execution of work in relation to the estab-lishment and oversight of guarantees is consistent with
this Government ’s commitment to ensuring appropriate
and effective risk management, maximisation of eco-nomic benefit and prudent economic and fiscal management while supporting econom ic growth.
In conclusion, Mr. Chairman, I wish to again
thank all of the teams who are part of the Ministry of
Finance for their dedication and for their professionalism. There have been many challenges faced over the
past year, but they have persevered.
This submission has highlighted the various
threats and challenges facing Bermuda and we will
continue to proactively address these matters to ensure
Bermuda’s continued stability and security. We remain
committed to serving and protecting the people of B ermuda through fiscal prudence and through effective
management of our resources and extending economic
relief wherever possible.
Thank you, Mr. Chairman.

Thank you, Senator. It was a very comprehensive presentation.
Would any Senator care to speak on these
Heads?
Senator De Couto. Sen. Dr. Douglas De Couto: Thank you. Thank you,
Mr. Chairman.
You know it is quite interesting. I am glad I have
. . . we . . . we, I say we, because there are several of
us in this Chamber who have some questions I would
imagine, Mr. Chairman. We have 24 minutes to ask
them on this very important topic.
First of all, I would suggest that the Senate
Leader, Minister Darrell, in the future coordinates with
the Junior Finance Minister because of course early on
in her statement she referred to the tough decisions that are required in any given budget. But I guess he
has problems with people making tough decisions. And
I suggest before he throws stones, he ought to tend to
his own glass house.
I also have to tell you I am frankly disgusted
and embarrassed by the cynical and cowardly attempt by this Government to escape accountability and transparency. I find it insulting to this Chamber, to this
Chamber’s Members and to the people of this country.
And it is no way to run a country. This Government
should be embarrassed that it is using up the time.
So, my first question, Mr. Chairman, page B -
110, business unit 20996, Cyber Incident. Which I want to be clear, let the people of Bermuda know, that the
Government has skipped over this. Please provide a
detailed breakdown of the costs within that cyber inci-dent.
Let me follow on my questions. Please confirm
if a ransom was paid. Please confirm if a third party paid a ransom on behalf of the Government which may need
to be repaid later. Please explain why there were two [business units] for the cyber incident —one in this Ministry and one in another Minist ry. What is the difference
between them? Please explain . . . well, let me make a
pause there.

Business unit 20996,
Cyber Incident 2023. Please provide a detailed breakdown of the $3,092,000. Please confirm or deny that a ransomware was paid by the Government . Please confirm or deny if a ransomware was paid by a third party on behalf of the Government . Please explain why there
is also a cyber incident cost centre in a different Ministry. And what is the difference between what is contained in those two business units?
Those are my questions on that.



Bermuda Senate The Chairman: Senator, how would you like us to proceed? We can have . . . just proceed with all the questions?
Okay.

I am a little conscious of
the clock, Mr. Chairman, and I know that other people
would like to ask questions. Please provide your estimates of the cost of refinancing of the bonds due in 2027. That would be [page] B-131 [ business unit ] 68000. And then if we turn
to B-124, Land Tax, item 8027 in the Revenue Summary, please explain why there’s an additional $4 million budgeted. Item 8017, Payroll Tax, please explain
the range of outcomes that the model that predicted the
additional almost $68 mi llion would have provided.
What are some of the optimistic ones and what are
some of the pessimistic ones?
I might make a pause if some other Senators
wish to inject a question.

Senator Hodgson, would you like to respond? Okay, so we will take all the questions. Okay.
Would any other Senator care to speak on
these heads?
Senator Bell.
Sen. Kiernan Bell: Thank you, [Mr. Chairman].
On the Head 10, Ministry of Finance HQ, I did
have a question about the $7 million that was spent un-der Policy Planning and Management, which I think is probably made up of professional services. Can you
provide a breakdown of whether those professional
services were in connection with corporate income tax,
and, if so, how much of that was corporate income tax?
And was any assigned to any other item like the cyber incident, which I see is a separate line item thereto?
I did have a similar question as to why that
amount is provided for in Ministry of Finance HQ and also in the IT and Digital Department of the over $1 million, which is the same as the question that has already
been asked by Senator De Couto. So I will st ick with
Head 10 at this stage.
Thank you.

Yes, I have additional
questions, Mr. Chairman.
Referring back to the cyber incident, page B -
110, [business unit] 20996. Are there any contracts related to that which were $50,000? Can you please confirm if they have been gazetted yet as per PATI regula-tions?
Turning to page B -129, please explain why the
Exempted Companies Tax is budgeted with a minus10 per cent reduction. And also in HQ under Policy Planning and Management . . . or perhaps, if she
prefers, [business unit] 20120 Corporate Income Tax.
Can you please provide an estimate of when the Corporate Income Tax Authority board will be select ed?
What is the timeline on that? And what is the timeline
on that body actually existing as a standalone body?
I am just making a space, if any other Senator
would like to ask a question. I have a few more, of
course.

I think we have, if I am counting correctly, we have 12 questions presently. So any other
Senator care to speak on these heads?
Senator Bell.

Sen. Kiernan Bell: I didn’t want to take up additional
time from others, but on NAMLC I was grateful for the
report that was given in terms of how busy the NAMLC
have been, in looking back in terms of all the initiatives.
I see that there are no full -time equivalents identi fied as
currently with NAMLC, so I am assuming that they were actually a cost centre in another Ministry or outsourced.
But I know that the Junior Minister did indicate that out
of the budget for NAMLC $364,000 (I think I wrote it
down correctly) there are two people budgeted for and
then the balance will be from somebody who is a consultant. But I did want to know how it was that we actually managed to get so much done with actually no employees identified as connected to that department.

Okay.

Sen. Arianna Hodgson: There was a question about
the estimate of the cost of renewing the bonds that will
be due in 2027. We do not have the definite amount,
but the $402 million bonds due in 2027 and the cost to
make whole would be the $1.7 million.
There was a question about the work being
done by the NAMLC office and how the work was being
completed with no, I guess, persons in posts to conduct
that work. That was a matter of full -time consultants fulfilling those duties.
There were some questions surrounding Head
38 in Payroll Tax, an increase of approximately $68 million and why we are predicting this. Essentially the payroll tax increases are based on recent historical data
analysis and essentially the change that we have made in legislation regarding new hires, as well as the ongoing debt collection efforts, are attributed to that $68 million.
Land Tax increases, again, are also based on
an analysis of recent tax collections data and so the
increase is related to the debt collection efforts of the
Office of the Tax Commissioner and would amount to the approximately $4 million.
I am just provided a bit more detail surrounding
the NAMLC question. Work was actually carried out by the former head of the unit under contract. They have
a support staff who is shared between NAMLC and the
International Affairs and Regulatory Unit. And we also
had the acting chair who was put in place to oversee
the programme.
I think it is also worth noting that, you know,
NAMLC is comprised of a number of internal government departments and external agencies, so each of
these agencies actually assists with the work plan of
NAMLC. You might be interested to know that the
NAMLC national coordinator as well as the senior legal
counsel are now on board and actively working.
There was a question about the corporate income tax agency and the timeline. Essentially development of the legislation for the administrative entity for
the corporate income tax is underway. The House will
sit, I guess in May of this year, and it is anti cipated that
the legislation will be tabled for debate on this matter during that session. The board for the entity will not be announced until after there is establishing legislation in
place. Again, the legislation will be passed in mid- 2024
for us to es tablish that agency.
There was some spending out of the Policy and
Strategy section of the Ministry of Finance HQ and this
did contain some spend on the corporate income tax. This was to support the technical work, the modelling
and the forecasting. There were three public consultations and the resulting issue drafting instructions. At this time, we cannot give final figures for these expenses as all invoices have not been yet received.

Thank you, Senator. We have a couple
of . . . you had some questions on the land tax, one the
$4 million increase in revenues and the questions
around the cyber incident. Those would be the remaining—
Sen. Arianna Hodgson: I did speak to the $4 million
in land tax.

[Pause]

Sen. Arianna Hodgson: Do Members want to ask any
other additional questions while I am just trying to con-firm the answers?

Any other questions from . . . Senator
Tucker.

Sen. Robin Tucker: Thank you, Mr. Chairman.
I just have one question and it is from Head 28,
Social Insurance, page [B -]121, Performance
Measures.
Under the compliance section, business unit
38040, second item from the top, it actually says Conduct a total of 2600 combined routine inspections per
year, 10 per week per inspector . And I do see that the
original forecast for 2023/24 was 1,200 and the target
outcome for this fiscal period, 2024/25, is 1,800. Unless
I am mistaken I believe that the Junior Minister mentioned that this particular area is understaffed and that they are challenged to carry out their objectives. I am
wondering if she can tell us, Are all six people that are
assigned under FTE’s responsible for the inspections?
If so, how are these 1,800 inspections achievable when
they already cannot achieve their objectives?
Thank you.

Thank you, Mr. Chairman.
If the Junior Minister would please explain the
purpose of the government captive insurer for Public Works. Is there a specific set of risks that it is for? Or is
it general? Or any other quick commentary she can pro-vide.
And then on [page] B -116, the Performance
Measures, the third item down under Financial Reporting, 21001. How many Public Funds financial statements have not been provided for consolidation?
Thank you, Mr. Chairman.

Senator Bell, you have a question?
Sen. Kiernan Bell: I do have one additional question —
Registrar of Companies and the recruitment of the new
28 positions. So that is, as I understand it, not including
the four from the merger of the Treaty Unit. I would like
to understand when that recruitment drive started and
what that is currently looking like, whether there are people that look like they are coming in to fill that role now or whether this is going to be an extended process.
Thank you.

Thank you, Senator Bell.
Sen. Arianna Hodgson: Mr. Chairman, there was a
question about the cyber incident and the associated
costs of $3 million. So I do want to say that the $3 million is a result of the payment for remediation efforts
which has been paid to consultants and others to return government’s systems back to operations. There is a
cost in IT and Finance as this was our portion of the
costs.
There was also a question about the captive
and the short answer would be that the captive will be
used as a self -funding tool for lower level property risks
at this time.

We have three minutes remaining.

[Pause]

Sen. Arianna Hodgson: Mr. Chairman, there was a
question about the understaffed issues within the De-partment of Social Insurance and whether all six per-sons were in charge of inspections. There are five of
the six who are completing inspections and then there
will be one manager essentially as we increase the number of inspections and the work required around
that. We will also rely on our new debt database system
to support a lot of the tasks, sorry, the debt collection
tasks that currently exist for the department. So we
hope that that wil l work in tandem.
Again, still just waiting for some information on
those other . . . is there anything outside of the cyberattack that remains unanswered . . .

I think the increase in the Registrar of
Companies, the complement went from . . . I guess, increased by 28 people. So Senator Bell just asked
whether that recruitment process was in place, and I
think what the . . . sort of a progress report on success
in finding suitable candidates to fill those roles.

Sen. Arianna Hodgson: Yes, I do know that the recruitment commenced shortly after the approval in
June of 2023. So various positions are in various
stages of recruitment. I believe there is one staff member who commences very shortly, on the 1
st of April and
we have also started the interviews for some of the
compliance- related positions. I think in the meantime
we will continue to use consultants for much of the work
that is taking place in that space.

Okay, I think that concludes the time,
the three hours allotted to the Ministry of Finance.
Thank you, Senator Hodgson and I now ask if . . . would
you like to move these heads at this time?
Sen. Arianna Hodgson: Yes, Mr. Chairman.
Mr. Chairman, I move that Heads 10, 11, 12,
28, 38, 39, and 58 be approved as printed.

Good evening, everyone. I think it is
getting late so I will move quickly if that is okay.
We are moving the following heads under the
Ministry of Economy and Labour so that is Head 27,
246 18 March 2024 Official Hansard Report

Bermuda Senate Immigration; Head 60, Workforce Development; and
Head 94, the Department of Economic Development.
Senator Robinson, I think you are going to be
speaking . . . I cannot see Senator Robinson. Oh, there
you are.

[Laughter]

So, are you ready to proceed?

MINISTRY OF ECONOMY AND LABOUR
Sen. Leslie Robinson: Yes, Madam Chairman.
Madam Chairman, I move the following heads:
[Head] 27, Immigration; [Head] 60, Workforce Development; and [Head] 94, Department of Economic Devel-opment be now taken under consideration.
Madam Chairman, I will start by presenting a
high-level overview of the Ministry of Economy and Labour, found on page B -175 of the Estimates of Revenue and Expenditure.
Madam Chairman, I am pleased to present today the budget for the Ministry of Economy and Labour
for the upcoming fiscal year 2024/25. Madam Chairman, our mandate or mission statement is that the
overarching mission of the Ministry is To provide economic growth and job creation. The Minist ry is led by its
headquarters whose mission is To establish effective
policy that helps foster the expansion of jobs and economic growth. Overall, the Ministry seeks to achieve its
mission through its five departments which are Departments of Statistics, Labour, Immigration, Workforce Development, and Economic Development. Today’s
debate will focus on the latter three departments.
Overall, a total of $23,893,000 has been allocated to the Ministry for the upcoming fiscal year, which
represents an increase of $843,000 from the previous
year. The increase overall is due to salary adjustments and funding for economic development strategy initiatives.
I will begin today’s budget presentation with the
Department of Immigration, Head 27, found on pages
B-175 through B -178 of the Budget Booklet.

HEAD 27 —DEPARTMENT OF IMMIGRATION

Sen. Leslie Robinson: Madam Chairman, it gives me
great pleasure to present the budget for Head 27, the
Department of Immigration, found on pages B -183
through B -187 and C -13 of the Budget Book.

Mission

Sen. Leslie Robinson: Madam Chairman, the mission
of the Department of Immigration is To facilitate economic growth and to protect the future of Bermuda for the benefit of Bermudians, residents and visitors while
protecting our borders .
Executive Summary

Sen. Leslie Robinson: In addition to the financial information contained in the Department of Immigration’s
budget brief, the brief highlights the following major policy changes effected during the past fiscal year
2023/24.
1. Prohibition of Entry Order.
2. BMU Code Restoration to our passports.
3. Allowed length of stay.
4. Work permit policy.
It also highlights the department’s plans for the
upcoming year.

Expenditure Overview

Sen. Leslie Robinson: Madam Chairman, the total
current expenditure is estimated to be $6,238,000 for
2024/25 and represents an increase of $100,000, or
approximately 2 per cent higher than the budget of
2023/24. The change is due primarily to an increase in
the software maint enance budget which is reflected in
the Finance and Administration section. It is anticipated
that additional funding will be required to cover the cost
to maintain the various software systems used by the government.
Madam Chairman, the material changes of the
subjective analysis of the current account estimates as compared with the 2023/24 year can be found on page
B-184 as follows:
• Salaries, increased by $148,692, or 4 per cent.
This increase is a direct result of the revised annual salaries scale.
• Communications, increased by $57,410, [or]
22 per cent. Prior to the installation of the new
telephone system, the department was
charged for the cost of direct lines and data
lines. These services are no longer required. The cost of courier services was also reduced.
These reductions assisted in the additional
funds required for the cost -of-living salary increase.
• Professional Services, decreased by
$103,889, or 10 per cent. To accommodate the
increase of salaries, the cost of two consultants (one from corporate services and one from personal services) was reduced.
• Materials and Supplies, decreased by $20,000,
or 22 per cent. The cost of office supplies was
also reduced to offset the increase in salaries.

Revenue Overview
Sen. Leslie Robinson: Madam Chairman, the total
revenue is estimated to be $21,650,000 for 2024/25.
This represents an increase of 9 per cent which is
$1,866,000. The most significant change in revenue is
Status and Naturalisation —Other, which increased by
63 per cent. This is due to the projected increase of


Bermuda Senate permanent resident’s certificate (PRC) applications as
a result of anticipated changes to be made to the Bermuda Immigration and Protection Act 1956 (BIPA) to
effect economic development strategy initiatives.
Consideration is being given to a number of
proposals that should assist both retaining the local
workforce population. While several of classes could be
affected, one of the policy changes being contemplated
is a reduction in the required years of residence in Bermuda.

Capital Expenditure
Sen. Leslie Robinson: Madam Chairman, funds estimated for capital acquisitions for 2024/25 amounts to $150,000 which can be found on page C -13. This
amount can assist with the implementation of a digitised system that automates that application process for
all applications.

Manpower

Sen. Leslie Robinson: Madam Chairman, the Department of Immigration resources will be used to effectively and efficiently deliver the day -to-day operational
requirements of the business and key policy priorities.
The department has a team of 44 staff carrying out its
four major areas of work as follows:
• Corporate Services, 11 people;
• Personal Services, 11 people;
• Compliance, 14 people;
• Finance and Administration, 8 people;
Total: 44 people.
I should note this team processes in excess of
14,000 applications annually, of which approximately
70 per cent are related to work permits. The department handles over 100 different types of applications of
varying complexity. I highlight this, Madam Cha irman,
as the extent of the volume of work handled by the department, it is often lost on the public. We are committed to digitising and automating more of our processes
and services to improve efficiency and I will say more
on this shortly.

Business Unit Performance
Sen. Leslie Robinson: Madam Chairman, during the
past fiscal year the department’s performance against the performance measures in the Budget Book was impacted by resource constraints and the cyberattack.
Here I provide a summary of each business unit’s performance.

37010 Corporate Services
Sen. Leslie Robinson: This business unit is responsible for processing the wide range of work permit appli-cations including related landing permits. The corpo-rate services manager, industry relationship officers, and customer service representatives liaise directly
with employers to review and make recommendations
for each application.
In this past fiscal year, this unit continued to
process bulk applications from hoteliers and restaura-teurs. Generally, vetting of the applications remained at
two working days, with delays occurring due to the new
minimum hourly wage not being reflected in employment contracts or statements of employment. With the
assistance of the vendors, standard, seasonal, [occasional], short -term, periodic, global, new business,
global entrepreneur and travelling salesperson work
permit applications were processed to a decision in 20
or 10 working days, respectively. However, the fast
pace at which decisions were made had a knock -on effect to the extent that there were delays in issuing the work permit documents. This was attributed to availa-ble human resources. To address this, the section ensured that notifications of approvals were immediately
communicated to employers or representing agents
with priority for issuance being placed on first -time applicants or visa -controlled nationals. For applicants’ renewals who were already on Island, issuing of documents were staggered because with an approval those
persons were allowed to work or resume work without
having the document in- hand.

37020 Personal Services

Sen. Leslie Robinson: This business unit is responsible for liaising directly with the individual customer. The
customer service representatives in our reception area
are available to answer all individual inquiries. The per-sonal services manager and client services officers are
responsible for the following areas:
• travel documents;
• the acquisition of Bermudian status;
• naturalisation as a British Overseas Territories
citizen (BOTC);
• permanent resident certificate applications;
• issuance of related certificates;
• permissions to reside, seek employment and
attend school;
• letters for spouses of Bermudians.
In the past fiscal year, this unit experienced
positive and negatives with respect to achieving its targeted processing timelines. For example, passport ap-plications were more often than not processed beyond
11 weeks. The volume of applications during the summer months and after the cyberattack caused the timeline to extend out to 20 weeks. The unit often sees an increase in applications for confirmation letters during
open periods for student scholarships. Despite this,
there were also steady requests from applicants for financial assistance. In both cases, staff worked dili-gently to get back on track. Although the processing
timeline for passports did not fully return to 11 weeks,
it was reduced to approximately 15 weeks. The temporary staff also provide i nvaluable assistance for the
248 18 March 2024 Official Hansard Report

Bermuda Senate processing of spousal letters and permanent resident
certificate applications. Lastly, from efforts to redirect
the applications, the average time to issue certified
copies of documents was reduced from one to two
months to one month and processing of spousal letters was reduced to one month for new applications and 10
working days for renewals.

37030 Compliance

Sen. Leslie Robinson: This business unit is responsible for the inspection and investigation of potential
breaches of immigration law, regulations and policy.
They conduct compliance audits, enforce work permit
conditions restrictions and maintain control over Bermuda’s border s. Under the leadership of the compliance manager and two principal compliance officers,
senior immigration inspectors in the unit are assigned
to go to Immigration headquarters in Hamilton and the
L. F. Wade International Airport. Bei ng in its third year
since implementation, the border management system
and the e- Gates have proven to be quite beneficial to
users and travellers. Where a traveller had to be referred to Immigration’s secondary office, policies were
adhered to or matters were escalated to the Chief Immigration Officer for quick guidance and/or resolution.
Throughout the past year, there were a few occasions
where the systems were down and with the depart-ment’s work with the vendors and the IDT staff, the systems were restored.

37040 Finance and Administration

Sen. Leslie Robinson: This business unit is responsible for department’s accounts, budget, financial records reporting, annual budget preparation, administra-tive support services, personnel administration func-tions and “Work from Home” Bermuda applications.
The unit is oversee n by the finance and administration
manager. In the past fiscal year, there were 16 vacant
posts. Of this number, only one position has been substantively filled —the compliance manager post. The
department also underwent an operational review in fis-cal year 2023/24 administered by the management consulting services who advised the department should
wait until the report was produced before updating any
outstanding job descriptions. The report was produced
in August 2023 and all job descriptions were updated.
It is anticipated that recruitment will begin in April 2024.

Major Policy Changes

Sen. Leslie Robinson: Madam Chairman, the following policy changes have either already been made or
will be made before the end of fiscal year 2023/24.

Prohibition of Entry Order
Sen. Leslie Robinson: As a necessary means to protect Bermuda’s borders and its people, the [Bermuda
Immigration and Protection] (Prohibition of Entry) Order
[2023] came into effect on 11 August 2023. Its aim is to
reinforce the intent of the 2014 policy by ensuring that scrut iny and vetting takes place before an individual arrives in Bermuda and by ensuring that tourist visitors
and residents of Bermuda have ready access to US,
UK and Canada through commercial air service. Travellers to Bermuda who are nationals listed in the Order
require travel authorisation before they arrive in Ber-muda. It should be noted that on 15 November 2023
the UK updated its list and, as such, Bermuda’s Order
has been updated this month.

BMU Code Restoration

Sen. Leslie Robinson: Madam Chairman, the GBR
code is in several BOTC Bermuda passports continues
to be a challenge and the negative experiences by
passport holders persist. I am happy to report that on
29 December 2023, the Bermuda Government was
recognised as the 94
th PKD member by the International Civil Aviation Organization (ICAO). The Govern-ment’s membership puts us in line with the restoration
of the BMU code which is expected to be fully implemented by 31 March 2024. The general public can ex-pect t o receive detailed information about the process
to obtain a new passport with the BMU code shortly.
Madam Chairman, a restriction on the period of
residence is another change that has already occurred
on restricted period of residence or allowed length of
stay. On 15 January 2024, amendments to section 28 of the Bermuda Immigration and Protection Act 1956
became effective.
The amendment clarifies the meaning of an unrestricted person of residence for visitors and how it is
calculated. An unrestricted period of residence is a cumulative maximum of 180 days in any 12- month period
from the first arrival date within those 12 mon ths. The
allowed length of stay for all visitors will be calculated
and monitored via the Department of Immigration’s border management system which has been modified to
track the cumulative maximum length of stay, looking
at past calendar dates to identif y when the visitor has
been to Bermuda. This information calculates the number of days whether available for not for that visitor to
remain in Bermuda.
Once the maximum 180 days has been
reached, that day or date becomes the allowed length of stay (ALOS). Of significance, the amendment removes the possibility of a visitor departing Bermuda for
a day and returning for another period of 180 days.
Madam Chairman, as with all government departments, the Department of Immigration was significantly impacted by the cyberattack of September 2023. The inability to access its systems hampered the ability
to process work permit applications which by defaul t resulted in a backlog of applications. Despite this


Bermuda Senate setback, by 30 November 2023, the backlog was addressed.

Work Permit Policy

Sen. Leslie Robinson: The timely processing of work
permit applications is vital to business sustainability for
many companies throughout Bermuda. Equally, a
clearly defined work permit policy makes processing almost seamless. To this end, the work permit policy is
currently being enhanced so that it is clearer, leaving little room for erroneous interpretation, and more user -
friendly. The new policy will be implemented by 31
March 2024.

Plans for the Upcoming Year

Sen. Leslie Robinson: Madam Chairman, during fiscal year 2024/25, the Department of Immigration will
• enhance the payment gateway for fees;
• improve all immigration processes to be more
effective and efficient so as to eliminate the
backlog of applications (Should it occur again,
it will be immediately managed.);
• enhance the Compliance section so that they
can carry out their duties in accordance with
the Bermuda Immigration and Protection Act
1956;
• implement a digitisation system that automates
the application process for all applications
which are submitted to the department.
A request for information (RFI) will be published shortly with the expectation that the new system will be brought online in phases within 2024/25, begin-ning with work permit applications.
Madam Chairman, in conclusion I would like to
thank the dedicated members of staff at the Department of Immigration. I would like to thank the Immigration team under the leadership of Dr. Danette Ming,
Chief Immigration Officer; and Ms. Marita Grimes, Assistant Chief Immigration Officer; together with Ms.
Lauren Sadler -Best of the Attorney General’s Chambers; the Information and Digital Technology (IDT) Department, led by Mr. Daron Raynor; and the Immigration Appeals Tribunal, headed by Mr. Charles Richardson.
Finally, I would also like to thank Ms. Tionea
Effs, Ms. Kelly Perinchief -Burgess, Ms. Nekia Richardson, Ms. Ashleigh Lambert and their respective teams,
as well as the Collector of Customs, Ms. Lucinda Pearman and her airport team for administering the ai rport
border control on behalf of Immigration.
That ends my presentation on Head 27, the
Department of Immigration.

Thank you, Senator Robinson.
I should have indicated the time that we started
as well, which was 7:27, so we will end the Committee discussion at 10:27. Did you want to go straight on to the next . . .
Head 60? Or did you want to have questions on Head [27] first.
Sen. Leslie Robinson: Madam Chairman, I would like
to go on to Head 60.

That is fine.
Sen. Leslie Robinson: Thank you.

HEAD 60 —DEPARTMENT OF WORKFORCE
DEVELOPMENT

Sen. Leslie Robinson: Head 60 is the Department of
Workforce Development found on pages B -188 through
B-193, and page C -19 of the Estimates of Revenue and
Expenditure.
Madam Chairman, it gives me great pleasure
to present the budget for Head 60, the Department of Workforce Development found on pages B -188 through
B-193 and C -19 of the Budget Book.

Mandate or Mission

Sen. Leslie Robinson: Madam Chairman, the mandate of the Department of Workforce Development is
To develop a resilient workforce, to provide a sustainable and stable community.

Expenditure Overview
Sen. Leslie Robinson: Madam Chairman, a total of
$4,214,008 has been allocated for this Head which represents an increase of $100,000 from the previous year
and constitutes 17 per cent of the budget allocated for
the Ministry as a whole. This change is due primarily to
salaries and to increase the allocation for the summer
employment post -secondary programme from 80 to
100 college students.
Madam Chairman, the Department of Workforce Development comprises three programmes as noted on page B -189.
• 6001 —General Administration;
• 6003 —Career Development;
• 6004 —Training.
Madam Chairman, programme 6001, General
Administration, is responsible for the overall manage-ment and administration of the Department of Workforce Development. Business unit 70000, Administration, has met their 2023/24 performance measure of
three busines s days for the response of general inquiries and keeping in alignment with financial instructions
and fiscal responsibility for the department.
Programme 6003, Career Development, is
comprised of Career Development Administration 70300. This programme is responsible for developing
personal employment plans and case management as
a result of client assessment, core soft skills training
250 18 March 2024 Official Hansard Report

Bermuda Senate and employment readiness training. In the 2023/24 performance measures the input of client and coordination
of personal employment plans will meet their targets of
two business days and five business days respectively.
There was an adjustment for the number of persons as-sessed from the 350 persons to 100; participation in
employability skills training from 500 to 100. These adjustments reflect a decline in clients seeking services
from the department since the end of the pandemic.
The career development team has worked diligently to
ensure participation in youth employment programmes and is on track to meet the 2023/24 revised target of
300 persons participating in those programmes. Currently, there are 27,791 registered users on the Bermuda Job Board with a demographic breakdown of
55 per cent female and 45 per cent male. There are
also 3,264 employers registered on the Job Board.
Programme 6004, Training, provides administrative support to the national certification and oversight
of the apprenticeship board activities, such as the apprenticeship programmes, the distribution of scholar-ship funding for local and overseas students, pr ofessional design training programmes and national certification of designated trades. The training programme
has had much success in implementing training pro-grammes and advancing national certification. There
was an adjustment of the number of persons aw arded
certifications from 300 to 125 persons. However, the
number of persons sponsored for industry certification
and training courses increased from 200 to 232.
Madam Chairman, I draw your attention to the
amended and new performance measures for the Department of Workforce Development found on pages B -
192 through B -193.
The team at the department has undertaken a
review of its performance measures, recognising the
need for alignment with current workforce demands. The team examined the existing performance
measures to ensure they meet the criteria of being specific, meas urable, achievable, relevant and time- bound
(i.e., SMART). This evaluation aimed at enhancing the precision of the department’s performance indicators to
accurately reflect the diverse range of services provided and the evolving needs of the client. The revision process prioritised clarity and relevance, allowing for a
more insightful assessment of the department’s impact
on the workforce in the upcoming 2024/25 budget year.
The Department of Workforce Development
currently faces a notable workforce gap with 10 vacancies distributed across various roles, primarily resulting from retirements and individuals seizing new career advancement opportunities. Recognising the importance
of maintaining a fully staffed and effective team, the department’s leadership is actively collaborating with the
Department of Employee and Organizational Development (DEOD). There is concerted efforts aimed to ex-pedite the recruitment process ensuring that these vacant positions are filled by the end of the fiscal period.
This proactive approach underscores the department's commitment to sustaining operational excellence and
delivering quality services despite the transitional
phase in its personnel.
Madam Chairman, I will now highlight the
achievements of the department.

Major Achievements 2023/24
Sen. Leslie Robinson: In collaboration with the Department of Financial Assistance, the department de-veloped personal employment plans (PEPs) initiative to help transform Bermuda’s workforce by providing employment -related services to financial assistance recipients. Individual PEPs set out employment goals and
the steps required to reach those goals to move ablebodied and disabled recipients into employment opportunities as soon as practicable.
The Fairmont Southampton construction fair
held on 1– 2 June 2023 was supported with marketing
and promotions by the Department of Workforce Devel-opment. The National Center for Construction Education and Research (NCCER) basic safety training enables inter ested persons to become certified before a
project begins. The technical cleaning course saw 13 participants gain nationally certified cleaning certificates from the Academy of Cleaning Excellence. The
Government’s partnership with local cleaning compa-nies has resulted in nine participants securing employment opportunities.
The Professional Administrative Certification of
Excellence (PACE) programme enabled participants to
receive certifications upon completing the 12- week
course. This resulted in 35 Bermudians completing the
programme of which 20 successfully passed the final exam and obtained their certifications. The Renewable
Solar Energy programme saw five participants complete the programme. It provided direct support for the
growth and development of knowledge, application and
career pathways for youth interested in bec oming certified solar installers and by extension increased the capacity for installations of the renewable energy industry
in the local workforce. In affiliation and partnership with
the North American Board of Certified Energy Practitioners, (NABCEP) glo bally recognised in the renewable energy industry, participants had to pass the introduction into renewable energy course before participating in the programme as trainees. The four -week training programme included various installation worksites
at busines ses and homeowners’ properties allowing
the trainees practical knowledge, understanding and
some training application and experience in the real world of work.
The construction asphalt training programme
saw seven participants complete the training offered
through a collaborative effort with Joell Asphalt Service
and Maintenance, Ltd. and Urban Construction [Services]. This comprehensive training initiative has
equipped seven young Bermudian men with industry
standard National Center for Construction Education


Bermuda Senate Research (NCCER) credentials. It marks a significant
milestone in Bermuda’s commitment to fostering a
scaled and capable workforce. The training programme
centred on theoretical knowledge, practical skills and
on-site experience and has been developed in c lose
collaboration with internal and external stakeholders
within the construction vocation and trades industries.
Madam Chairman, I am pleased to report that
of the persons who were unemployed when they participated in our training programmes, 40 found employment after completing their programmes this fiscal year. Others completed training programmes to upskill
in their current employment role.
Madam Chairman, the Department of Workforce Development continues to implement the youth
employment strategy facilitating more significant opportunities in educational pathways for all young Bermudians between the ages of 18 and 26 years. The strategy
offers support to all young people, including youth with
mental health challenges and physical disabilities in education, underemployment and unemployment. The strategy also assists and supports youth thr ough the
following programmes:
• Summer work programmes provide high
school, college and university students with
work opportunities within the public and private
sectors during their summer breaks. The
2023/24 summer programme had opportunities for 180 students participating in the summer internship programme for high school students and the summer employment pro-gramme for college and university students.
• Bacardi Shake Your Future programme resulted from the Government’s partnership with
Bacardi International. Six people passed the
European [Bartending] School Exams, completed the 10- week programme and now fully
employed in the hospitality and tourism industry.
• The Graduate Training programme which
helps ensure young Bermudian s between the
ages of 20 to 26 are suitably qualified and positioned to take advantage of the job opportu-nities within the local labour market. The fourth
cohort recently completed their programme
which included a 10- week paid internship programme opportunity for 10 recent college and
university graduates.

Plans for the Upcoming Year

Sen. Leslie Robinson: Madam Chairman, as we look
forward to the upcoming fiscal year and beyond, the
Workforce Development Department’s objectives for the fiscal year 2024/25 can be found on page B -188
and read as follows:
• Provide support for the newly formed National
Certification and Apprenticeship Board. • Expand Apprenticeship Training Programmes to include high- demand occupations.
• Create occupational profiles and career path-ways for current and future tech careers.
• Increase engagement and communication with
Bermuda’s youth.
• Execution of Personal Employment Plans.
In the upcoming 2024/25 fiscal period, the Department of Workforce Development is poised to imple-ment a strategy to bolster its impact on Workforce Development. The plans include an enhancement of sum-mer employment programmes aimed at providing valuable work experience for aspiring individuals entering
the job market. Additionally, a proactive stakeholder
engagement initiative will be launched specifically targeting clients with personal employment plans to refine and elevate their workplace skills. The department is committed to expanding apprenticeship opportunities, fostering skills development in designated trades and
streamlining processes for national certification.
A renewed partnership with the International
Labour Organization is on the horizon, focusing on expanding opportunities within the burgeoning blue and green economies. Furthermore, the department is exploring innovative micro- courses designed to offer efficient and targeted certification pathways in various
trades, ensuring a nimble response to the evolving needs of the workforce in Bermuda. These initiatives
collectively reflect our commitment to nurturing a skilled, adaptable and a future- ready workforce.
Madam Chairman, that ends my presentation
on Head 60, Department of Workforce Development.

Thank you.

HEAD 94 —ECONOMIC DEVELOPMENT
DEPARTMENT

Sen. Leslie Robinson: Thank you, Madam Chairman.
Madam Chairman, it gives me great pleasure
to present the budget for Head 94, the Economic Development Department (EDD) found on pages B -194
through B -197, and C -19 of the Budget Book.

Mandate or Mission

Sen. Leslie Robinson: Madam Chairman, the mandate of the EDD is To advance the sustainable growth,
development and diversification of Bermuda’s economy. It does so by
• facilitating, creating and implementing policies
to support the Bermuda Economic Develop-ment Strategy 2023 –2027;
252 18 March 2024 Official Hansard Report

Bermuda Senate • in collaboration with industry stakeholders, positioning Bermuda as an ideal test market for
innovative product and industry development;
• analysing innovative developments and trends
through research and stakeholder engagement;
• identifying the jurisdiction’s market fit, clearly
communicating its message and driving opportunities that lead to economic activity;
• processing various land licences and Incentives for Job Makers applications in a timely,
efficient and professional manner;
• facilitating opportunities for technology education, mentoring and training, and supporting eentrepreneurship; and
• helping create a more attractive regulatory environment for business and enhanced communications between the Government of Bermuda and the private sector.

Expenditure Overview
Sen. Leslie Robinson: Madam Chairman, a total of
$8,426,361 has been allocated for this head which rep-resents an increase of $32,361 from the previous year and constitutes 35 per cent of the budget allocated for
the Ministry as a whole. This budgetary allocation not
only includes the operating budget for the EDD in the
amount of $1,957,609, but also that of the Bermuda
Economic Development Corporation (the BEDC) in the amount of $2,238,752 and the Bermuda Business De-velopment Agency (the BDA) in the amount of
$4,230,000. I will present the budget details [of] each of
these two quangos here as well.
The total allocation for the EDD of $8,426,361
for 2024/25 represents a slight increase of 0.39 per
cent over the budget allocation for 2023/24.

Business Performance

Business Unit 9404: Research and Legislative
Support Division

Sen. Leslie Robinson: Madam Chairman, the EDD’s
research and legislative support division is critical in en-hancing Bermuda’s international business landscape. Through it, the EDD collaborates with stakeholders and
works to refine and adapt legislation ensuring Bermuda
remains a preferred jurisdiction for global business.
This effort includes close cooperation with Government
bodies such as the BMA, the BDA, the Joint Select
Committee for Private Bills and various other stake-holders.
Over the past fiscal year, through its research
and legislative support division, the EDD focused on and met the following performance measure: separate
instances of progressive business -related public and
private legislation change in the fiscal year. This performance measure supports the Economic Development Strategy’s strategic priorities number one, two, four and
five. Indeed, in the year 2023/24, the EDD emerged as
a lynchpin in collaboration with stakeholders. Its support extended to critical legisla tive initiatives including
the Family Office initiative. It also assisted the Bermuda
ocean prosperity programme in formulating an action
plan to establish a streamlined comprehensive permitting system for maritime tourism businesses. This approach ensured efficient cross -departmental assessments and adherence to regulatory standards contrib-uting to Bermuda’s progress in these vital areas.
In the same period, the EDD in collaboration
with the Ministry for the Cabinet Office made significant
strides in advancing Bermuda’s intellectual property
framework. This endeavour involved close cooperation
with the Ministry of Home Affairs, the Registr ar General’s department and private sector representatives
leading to the welcome passage of the Trade Marks Act
2023, the Government Fees (Trade Marks) Regulations 2023 and the Trade Marks Regulations 2023.
These legislative updates represent the initial phase of
the comprehensive initiative to modernise intellectual property laws and revitalise the trade mark system.
Additionally, the EDD spearheaded the legal
review and passage of the groundbreaking Meanwhile
Insurance Bitcoin (Bermuda) Limited Act 2023. This
forward- thinking legislation pioneers a unique approach to long- term insurance, leveraging digital assets
to bridge the insurance and cryptocurrency domains.
Madam Chairman, the Bermuda Family Office
initiative, which I mentioned earlier, was initially tailored
for family offices. It has now evolved to benefit a
broader spectrum of businesses and promote the use of existing products. Bermuda’s investment envir onment offers global business advantages including access to capital markets in major countries and an excellent regulatory framework. Ongoing Government efforts aim to introduce public benefit companies and
simplify ministerial consent requirements for pr ivate
trust companies and residential leases.
The Government signed a memorandum of understanding (MOU) with the Emirates Family Office As-sociation (EFOA) in December 2023. This MOU seeks
to enhance wealth preservation and growth in Bermuda
by fostering collaboration between Bermuda and the UAE. This strategic partnership positions Bermuda as
a global Family Office hub in which the EFOA committed to establishing a physical presence within a year.
This reflects the Government’s commitment to creating and enabling environment for Family Offices, thus contributing to a dynamic and diverse economic landscape.
Madam Chairman, looking ahead to fiscal year
2024/25, the EDD remains committed to completing
various ongoing legislative initiatives and projects. This
includes
1. finalising policy and legislative changes related to the Bermuda Family Office initiative;


Bermuda Senate 2. updating intellectual property laws governing patents, registered designs and copyrights; and
3. advancing the action plan to establish an integrated permitting system for maritime tourism businesses
by 2025.
The EDD will also support economic development projects and other Government initiatives as per
the 2023– 2027 Economic Development Strategy, thus
contributing to Bermuda’s global success and enhanc-ing Bermuda’s competitive edge in attracting business
vis-à-vis other jurisdictions.

Business Unit 9403: Analysis and Policy
Business Services Division

Sen. Leslie Robinson: Madam Chairman, over the
past fiscal year, the department’s business services division has primarily focused on the following performance measures, which in turn support the Economic
Development Strategy’s strategic priorities number
one, two, three and f ive.
1. Publishing articles and editorial content. The
EDD vastly exceeded its target for this performance
measure by making fuller use of social media tools as
the department utilises both conventional and social media outlets to inform the community of its work
throughout the year. It also makes use of established
periodicals to raise awareness of its activity. In the com-ing fiscal year, the EDD intends to keep targeted local
and international media outlets informed in its work and
achievements.
2. Completing research and stakeholder initiatives. The EDD also vastly exceeded its target for this performance measure which comprises two compo-nents:
a) Research. The EDD led the Island’s first formal FinTech strategy planning exercise. In addition to performing large scale research, it engaged
in targeted stakeholder discussions, round tables, surveys and focus groups. The resulting
FinTech strategy const itutes the blueprint that
Bermuda will follow as it continues to establish
itself as a global FinTech leader, capitalising
on its regulatory clarity, robust framework and strength in attracting innovative businesses.
b) Stakeholder initiatives. The EDD actively engaged in initiatives that facilitate opportunities for technology, education, mentoring and training and support for e- entrepreneurship. In doing so, it provided great funding and sponsorship to local organisatio ns that offer these services. These grants support initiatives such as
the Technology Leadership Forum, Summer
Internship Programme, Bermuda Island
Games coding programme and the Bermuda
Asset Management Disrupter Summit series. In the coming fiscal year, the EDD intends to
launch the implementation phase of Bermuda’s
FinTech strategy. It also plans to continue to support local efforts to increase awareness of
and familiarity with tech and FinTech.
3. Initiatives offered in the community. Over the
past period, this performance measure was met at 87.5 per cent. Sometimes as an individual effort and
other times in partnership with subject matter experts,
the EDD also supports and organises events to which
members of the public are invited. This is done in the
pursuit of grooming a rich experienced, informed and
networked tech, FinTech talent pool for the jurisdiction.
During the fiscal year, the EDD ran its annual technol-ogy innovation celebration which co nsisted of two
events.
a) The Technology Innovation Awards reception, also known as the Tech Awards, which celebrated Bermuda- based individuals and organisations who demonstrated an unwavering
commitment to excellence and a belief in technology’s boundless potential over the year.
These innovators brought together a diverse
range of solutions, from remarkable commercial projects to educational initiatives that have
the power to shape the Island’s future.
b) Tech Education Day, which over 128 students from all of the Island’s high schools attended.
This event aimed to make technology and
FinTech relatable and familiar subjects which
the students will consider as they make future
career decisions.
4. New business partnerships. The performance
measure concerns relationships currently in progress
and on the way to being forged. Such initial steps comprise memorandums of understanding, nondisclosure agreements or other documentation that ensures a free
and frank exchange of information between the EDD
and prospective clients and that accompanies a serious
and demonstrated attempt to forge a significant relationship. Over the past period the EDD vastly exceeded
this performance measure.
5. Strategic business initiatives. This performance measure counts the number of potential investors successfully introduced into Bermuda over the fiscal year. Over the period, this performance measure
was met at 50 per cent.
6. Business partner compliance. This performance measure is a carryover from the time of the
founding of the EDD when it held agreements that required full strategic partner compliance with both the
Government’s security plan and policies as well as with its data protection policies and processes. Over the period this performance measure was not met due to re-source challenges within a key partner agency. Processes are being restructured to meet the targets.
The department also ran its now annual
FinTech training programme which once again taught
12 Bermudians the foundational concepts underpinning
FinTech and it introduced them to leaders in the local industry in various settings including in- person meet
and greets, seminars and webinars. This is crucial
254 18 March 2024 Official Hansard Report

Bermuda Senate because making a mark and entering any sector takes
more than knowing the theory of a subject matter. In
today’s world, it is equally as valuable to have a dependable network of individuals in that sector and that
is why the EDD makes sure that it introduc es the
FinTech training programme participants to leaders of
local licensed companies in a setting that encourages
lively discussions, challenging the status quo and a
specific understanding of the local market.
Additionally, the EDD supported other technology-minded community events such as the third annual
International Tech Summit and the 15th annual Global
Entrepreneurship Week to boost e- entrepreneurship
and support technology startups. Finally, the EDD once
again supported the ISACA’s annual conference which
allows for [IS] auditors , IT auditors and IT governance
and information security professionals to further their
professional development. In the coming fiscal year,
the EDD intends to continue to, in progressive ways,
nurture and engage with the local talent pool to inform and train those members of the workforce who are interested in joining FinTech. Considering the above and
in the coming fiscal year, the EDD intends to continue
to work with internal and external stakeholders to facilitate entry into our economy for quality partners and investors.

Business Unit 9405, Concierge and Engagement
[Services] Division

Sen. Leslie Robinson: Madam Chairman, the EDD’s
concierge and engagement services division assists in advancing Bermuda’s economy by allowing foreign direct investment to flow into the Island in a time efficient way. This is accomplished by providing concierge services to Berm uda’s inbound investors streamlining and
expediting government processes. Working closely
with the BDA, which is often the initial contact with for-eign investors, the EDD acts as the introductory funnel
into relevant public services. I t therefore provides companies wishing to establish a meaningful presence in
Bermuda with services such as facilitating meetings
with Government officials, regulators and other stakeholders.
In addition, the EDD assists companies relocating to the Island with navigating the registration process, ensuring that it is done well and promptly and that
these companies are in good standing with the Government. It does so by working closely with publ ic authorities such as the Department of Immigration, the Department of Social Insurance, the Office of the Tax Commissioner and the Registrar of Companies.
Over the past fiscal year, through its concierge
and engagement services division, the EDD focused on the following three performance measures, which support the Economic Development Strategy’s strategic priorities numbers one, two, three, four and five.
1. Work permit applications for new strategic
business partners —application processing time no longer than 10 business days. This performance measure was not met over the past
period because a key business partner could
not process applications in a timely manner.
2. Social insurance applications for new strategic
business partners —application processing
time no longer than three business days. This
performance measure was indeed met over
the past period.
3. Payroll tax applications for new strategic busi-ness partners —application processing time no
longer than three business days. This performance measure was also met over the past period.
Madam Chairman, the EDD helps shorten the
time it takes for new companies to start operating in
Bermuda and as a result allows for faster job creation and revenue generation. It also advises on applicable
policies and initiatives aimed at attracting and sustaining international business, provides guidance on immigration strategy, ensures the expedited processing of regulatory applications, acts as a liaison between potential investors and the Government and arranges for
the expedited arrivals processing for certain business
visitors. In addition, it pays particular attention to job
creation trends and, as reported by the new businesses
which it assists, for 2023/24 it secured 40 new work permits and 36 work permit renewals for its client companies.

Revenues Overview

Sen. Leslie Robinson: As shown on page B -196, the
EDD is expected to generate up to $5,800,000 in revenues related to both [the] land acquisition programme
and []the Incentives for Job Makers Programme combined. This estimate is 11 per cent lower than the
2023/24 year and can be attributed to the natural limits
imposed on available inventory on the Island.

Incentives for Job Makers Programme
Sen. Leslie Robinson: Madam Chairman, the EDD
generates revenue through two main processes which
are described in the following two performance
measures that support the Economic Development
Strategy’s strategic priorities number one, two, four and
five.
1. Incentives for Job Makers —ensuring that application processing time is no longer than eight weeks. Over the past period, this performance measure was
met at 20 per cent, primarily due to the September
2023 cyberattack on Government of Bermuda’s business systems and to the current human resource challenges experienced by the EDD.
2. Alien land licences —ensuring that application
processing time is no longer than 30 business days. Over the past period this performance measure was
met at 90 per cent.


Bermuda Senate Through the Economic Development Act 1968,
the EDD’s Incentives for Job Makers Programme allows companies to apply for and obtain the concession
of having their senior executives exempt from needing
a work permit. These are persons responsible for the continued presence of jobs for Bermudians in Bermuda. Successful applicants are exempt from needing
a work permit and their families granted permission to
reside with them. In 2023/24, the Incentives for Job
Makers Programme earned the Government $360,000
in revenues reflected of 18 successful exemption applications. That is on par with the revenue earned in the
previous fiscal year.
Looking into the next fiscal year 2024/25, the
EDD remains committed to promptly processing applications for Incentives for Job Makers. Efforts are underway to enhance the efficiency of the process aiming to reduce the processing time for each application. The
goal is to achieve an improved timeline of eight weeks.
The EDD will also continue to deepen its engagement
with the relevant stakeholders and to open lines of com-munication with more industry groups representing the
companies who utilise its services relevant to the Incentives for Job Makers Act [2011]. In 2023/24, the
EDD began its industry engagement initiative in this field with Bermuda International Long Term Insurers
and Reinsurers (BILTIR). In 2024/25, it plans to continue this discussion and enrich it with communication with the other industry groups on the Island.

Manpower

Sen. Leslie Robinson: Madam Chairman, the EDD
has staffing complement of nine full -time posts as follows. One director, one administrative assistant, one
senior manager, one senior development analyst, one
education, communication and compliance analyst, one analyst, one senior regulatory analyst, one regulatory analyst, one concierge. However, only six of the
nine positions are currently filled causing strained manpower resources to fulfil the department’s mandate.
The department is now in position to engage the required staff to improve delivery and performance.
Madam Chairman, I would like to take this opportunity to thank the EDD team who work tirelessly with consistent results to achieve the department objectives for the benefit of the Island.
Now, Madam Chairman, I am going to turn my
attention to the Bermuda Economic Development Corporation, the BEDC.

Bermuda Economic Development Corporation
Sen. Leslie Robinson: Madam Chairman, it now gives
me great pleasure to present the budget for the Ber-muda Economic Development Corporation, a quango presently under the Ministry of Economy and Labour.
The grant through the Economic Development
department can be found on page C -19 of the Budget Book. The mandate of the Bermuda Economic Development Corporation (the BEDC) is To oversee the operations of the Economic Empowerment Zones (the EEZs) to provide financial support and technical advice
to small and medium- sized businesses, to manage the
operations of outside vendor markets and to manage
vendors and issuing vending lice nces. The organisation’s key objective remains to assist the Government
in encour aging economic growth for Bermuda’s local
small and medium- sized businesses.

Expenditure Overview

Sen. Leslie Robinson: Madam Chairman, a total of
$2,238,752 has been allocated as the BEDC’s operat-ing grant for year 2024/25 which represents no increase from the previous year. It constitutes 9 per cent
of the budget allocated for the Ministry as a whole. The
total current expenditure is estimated to be $5,890,000
for 2024/25 and represents a decrease of $310,000, or
approximately 5 per cent lower than the approved
budget of 2023/24. The decrease is due primarily to a reduction in anticipated revenues and there will be no
increases in the Government grant. There will be less carryover funds from 2023/24 and revenues from business registration fees not coming to fruition.

Capital Expenditure

Sen. Leslie Robinson: Madam Chairman, BEDC has
set aside $2,275,000 in 2024/25 for major capital investment projects and initiatives aligned with Government’s Economic Recovery Plan (ERP) and the eco-nomic development goals. Specifically, investment in
the development of the vertical farm project to facilitate
food security, lower food cost, develop farm co- ops and
create jobs in a new evolved area of agriculture industry as well as investment in the approved residential
schemes project facilitating direct f oreign investment in
the construction of residential development and purchase of residential units within the Economic Empowerment Zones thereby increasing the residential population within the city and other zones.
Madam Chairman, $90,000 was earmarked for
infrastructure costs to build an accessible Wi -Fi network within the North East Hamilton EEZ in fiscal year
2023/24 as one of several initiatives to attract and enhance the visitor experience within the zone. Economic
development tools such as accessible Wi -Fi in public
urban areas are commonplace in many jurisdictions.
That project was put on hold to focus on progressing
priority projects in the Economic Recovery Plan. It will
be advanced in fiscal year 2024/25.
The BEDC has also budgeted $120,000 in
2024/25, Madam Chairman, for capital works associ-ated with progressing the Walsingham Agriculture Cooperative project and the Underutilised Commercial
Kitchens programme.

256 18 March 2024 Official Hansard Report

Bermuda Senate Manpower

Sen. Leslie Robinson: Madam Chairman, for all it
achieves, the BEDC is a relatively small organisation. In 2023/24, the BEDC did not add any new posts and had a staffing complement of 18 full- time posts as follows: One executive director, one executive adminis-trative officer, one research and policy analyst, one di-rector of the micro, small, and medium enterprise unit, three micro, small and medium enterprise officers (one of these posts is currently vacant), one loan portfolio management officer, one director of economic and cooperative development unit, one economic and cooperative business development officer (that is currently va-cant), one director of the communication and develop-ment unit, one communication and development of-ficer, one assistant communication and development officer, one director of finance, data and administration
unit, one business data and policy analyst, one operations and office manager, one client services repre-sentative, one administrative assistant (currently va-cant). The three vacant posts are actively being re-cruited with one confirmed to be filled by the end of
February and the other two to be filled by May 2024.
The BEDC does not anticipate increasing its full -time
staffing members in 2024/25.

Major Policy Changes

Sen. Leslie Robinson: Madam Chairman, the BEDC
recognises that access to an affordable online presence is vital for small business success. The Economic Recovery Plan pledged to deliver an online market place that will grant entrepreneurs easy access to sell their goods and services online. It is no secret that the
cost associated with establishing an online presence in
Bermuda can be a significant barrier. The Government of Bermuda entrusted BEDC with creating an online platform to resolve these issues and acting as a master
merchant. As a result, the virtual market
bybermuda.com h as been improved and relaunched to provide an affordable solution for micro and small business owners who cannot afford the presence on existing platforms or bespoke payment processing. Relaunch-ing the virtual platform is crucial to removing barriers for
Bermuda’s entrepreneurs. Currently both retail and service businesses are on the site. The BEDC settles payments in the vendor business’s accounts weekly. The goal for 2024/25 is to have 25 businesses trading on the platform in six months and 50 within one year.
Madam Chairman, in the past period, BEDC
entered a multi -year partnership with the Globe Atlantic
Re Foundation to provide BEDC programme partici-pants with capital grants totalling $150,000 per year for three years. In total, the $450,000 in grants will help to fuel the growth and success of small businesses throughout Bermuda. During the pitch competition held in September 2023, five entrepreneurs won $25,000
each as follows. Three local entrepreneurs in any industry, one youth entrepreneur aged 13 to 22 and one
People’s Choice Award that the public voted on.
Madam Chairman, in fiscal year 2023/24 the
BEDC completed the mapping and developing of online directories for the North East Hamilton EEZ, the St. George’s EEZ and the Somerset EEZ linked to its geographic information system. This now allows for real
time data and maps of EEZ businesses to be available
for consumers and visitors on BEDC’s website www.bedc.bm and www.uba.bm
. Separately, the
BEDC is facilitating the development of an agricultural cooperative (co- op) or collaboration located on Government -owned Walsingham agricultural lands in Hamilton
Parish in partnership with the Ministry of Public Works and Department of Parks. The goal is to establish one or more co- ops on the one- acre plot of agriculture land.
Fourteen expressions of interest were received
to the RFI published in 2023 and discussions took place
with all interested entrepreneurs. The BEDC is working
with these entities to map out their involvement in the cooperative. The first phase of the project has been completed with agriculture land preparation and cur-rently Hideaway Farm is planting crops as one of the
first cooperative entities. Relatedly, the BEDC
launched start.coop
a co- op incubator and accelerator
based in New Hampshire. It is an eight -week co- op development experience to empower participants with the core skills and knowledge to grow co- op businesses.
After the incubator learning experience and
overseas experimental learning, this programme also allows participants to further develop their co- op
skills/knowledge toolkit by educating others in future workshops, seminars, lunch- and-learns and other customised experiences. Seven Bermudian co-op startups
joined the pilot cohort to learn business planning, governance, internal organisation, member relations, operations, finance, case studies and community organising and board/committee management.
Madam Chairman, the BEDC’s Eat, Shop, Play
aims to stimulate economic activity in each of the EEZs
over Christmas by incentivising businesses to participate and consumers to spend in the empowerment zones. The programme took a hiatus in 2022 but re-launched in 2023. Eighty -three businesses participated
and consumers made 1,855 purchases and spent $153,645.21 in the three zones. This represented a
27 per cent increase in spending over 2020 and a
68 per cent increase over 2021.
Madam Chairman, over the past fiscal year,
the BEDC expanded the EEZs with a newly established South East Hamilton Economic Empowerment Zone (SEHEZZ) bounded by Victoria Street to North King
Street . . . sorry, it is Victoria Street to the north, King
Street to the east, Front Street/Hamilton waterfront to
the south and Court Street to the west. This expansion
opens a realm of opportunities for new businesses and developers seeking to establish themselves within the EEZ and existing businesses and property owners currently within the zone.


Bermuda Senate The goal is to facilitate synergy between the
existing North East Hamilton EEZ and the new South
East Hamilton EEZ, extend economic development
tools to the expanded zone and facilitate more investment and development within it. Businesses and prop-erty owners will benefit from a range of incentives designed to stimulate growth and innovation within the
three other EEZs. These incentives are part of the
BEDC’s commitment to fostering a supportive environment for business growth, regeneration and economic
development.
Madam Chairman, for the second year in a
row, the BEDC kicked off the calendar year by seizing
the opportunity to help entrepreneurs calibrate and prepare for the year. The second annual Small Business
Expo hosted over 20 businesses and organisations that
provided support services to small businesses. The
day-long expo featured panel discussions focused on
four key topics:
1. Global gateways focused on mastering ship-ping and logistics.
2. Culinary commerce focused on the business of
food from commercial kitchens to health requirements.
3. Financial frontiers discussed payment solutions and financial technology.
4. Digital dialogues focused on how telecommu-nication can impact business growth and consumer engagement.
The discussions gave valuable insights and
practical tips from seasoned business owners, experts
and industry leaders to help them navigate the complex
experience of running a business. Attendees had the
opportunity to network with other business owners and industry experts, exchange ideas and build valuable relationships.

Plans for the Upcoming Year
Sen. Leslie Robinson: Madam Chairman, the BEDC
plans to focus on critical projects and initiatives in 2024/25 in support of the Economic Development
Strategy to provide further benefit and positive impact
economically in Bermuda.
1. The BEDC has undergone significant changes
in the last few years, providing business development
services to Bermuda’s entrepreneurs and economic
development services to specific geographic locations.
As such, it requires a robust and innovative strategic
plan to guide its activities and the next phase of evolu-tion over the coming years. The BEDC has come to the
end of its current strategic plan and will be engaging an
appropriately qualified consultant team to assist in its
developing a new strategic plan.
2. Entrepreneurship is among the most important
drivers of job creation and economic growth. It is critical for developing a vibrant formal small and medium- sized
business sector. A proactive role for any Government
is supporting entrepreneurship requires a s ystematic approach. In 2023, the Government of Bermuda released the Economic Development Strategy to build a
diversified and sustainable economy that will enhance
the quality of life for Bermuda’s residents. One of the
five strategic priorities in this eff ort is entrepreneurship
and small -business development. The BEDC will engage a consultant to assist in developing Bermuda’s
first National Entrepreneurship Strategy.
3. Work has concluded on the research of the legislative framework to underpin the development of a cooperative legislation policy document which is now be-ing revised and updated after being vetted twice by key
industry stakeholders and the International Labour Organization. The next phase is now to move from policy
to legislation.
4. The BEDC has partnered with Ignite Bermuda
to develop programmes and products to address the additional support, skills -based training and mind- set
development needed around financial literacy. This
joint effort aims to develop the necessary support without duplicating existing solutions. The outcome will provide an outline of step- by-step guidance to grow the
percentage of financially literate entrepreneurial leaders so that they can take full advantage of the products
available to them through the BEDC and Ignite Bermuda.
5. The overarching goal of the Commercial Kitchens Programme [CKP] is to provide interested entre-preneurs with an affordable, quality work environment
to support their business start -up or expansion and at
the same time provide commercial kitchen owners with
facility income that they would otherwise not receive.
Since the programme’s launch in 2022, BEDC has seen success in matching foodpreneurs with available
commercial kitchens, and in renting and subleasing
commercial kitchens it has invested in. Despite this, demand greatly outstrips supplies of available and suitable kitchens. As such, BEDC has partnered with the
Bermuda College to expand available kitchens by investing in and building two commercial kitchens to support up to eight food entrepreneurs. It i s anticipated that
these kitchens will come online in 2024/25.
This concludes the presentation of the Bermuda Economic Development Corporation.
Madam Chairman, I will now present the expenditure and revenue estimates for the Bermuda Business Development Agency (the BDA) which receives a
grant through the Economic Development Department
as can be seen on page C -19 of the Budget Book.

Bermuda Business Development Agency (the BDA)

Sen. Leslie Robinson: Madam Chairman, $4,230,000
has been allocated to the BDA representing 17 per cent
of the budget allocated for the Ministry. Founded on
1 April 2013, the BDA acts as an independent public -
private partnership that encourages inward direct in-vestment and growth for Bermuda. As such it plays a
vital role in the success of 23 initiatives outlined in the
258 18 March 2024 Official Hansard Report

Bermuda Senate Government’s Economic Development Strategy and
has shared responsibility for 10 of those initiatives.
The BDA is recognised by many in international business as Bermuda’s best offensive weapon
when it comes to growing and diversifying our econ-omy. This is because of the BDA’s unique ability to get
in front of decision makers overseas in an increasing
competitive global market place to remind them about
Bermuda’s key attributes. In 2023/24, the BDA pursued
targeted business development opportunities around
the world across five key industries strategically aligned with the Economic Recovery Plan to create economic
growth, increase inward investment and create jobs.
The five key industries are (1) risk and insurance; (2) high-net-worth services including the economic investment residential certificate (the EIRC);
(3) climate resolutions and asset management;
(4) technology; and (5) infrastructure, including hotel
development, subsea cables, space satellites, renewable energy and the blue economy. In various ways these industries directly relate to economic growth lo-cally; (a) they support economic diversification by creating new jobs; (b) they support expanding Bermuda’s
population by boosting the working population; and (c) they often support sustainable green recovery policies and/or regulatory frameworks for technological innovation as outlined in the Economic Recovery Plan.
Madam Chairman, in 2023 the BDA carried out
25 business development activities primarily consisting
of overseas business development missions and conferences and locally organised BDA -sponsored events.
Thirteen were held in Bermuda, six in the US, Canada
and Mexico, three in the EU and UK and three in the
Middle East and Asia. Nine of the activities highlighted Bermuda’s globally significant risk and insurance pillar,
five promoted its high- net-worth services EIRC offering,
five endorsed its bourgeoning technology pillar, four outlined its attributes in climate resolutions and asset
management and two related to infrastructure. Four of
the activities were cross -pillar initiatives where all five
of the pillars were promoted simultaneously.
Madam Chairman, overall 2023 was a productive and rewarding year for the BDA. It is currently work-ing with investors representing actualised and potential investments valued at $560 million and expected to
create 200 new jobs. The BDA is encouraged by the
level of inward foreign direct investment and the economic impacts of these efforts. Over the past year the
BDA held 12 overseas business development missions
to tell the Bermuda story internationally and forge new partnerships. The Gover nment of Bermuda was
pleased to support in several of these missions.
In February, the Minister was happy to represent the Government as Bermuda’s first business development mission to Latin America since 2019. The
Private Client Forum Americas 2023 in Mexico. In ad-dition, the Minister represented the Government at several b usiness development meetings organised by the
BDA with high- level prospects in New York City. These meetings were strategically scheduled around the Ber-muda reception aboard the Spirit of Bermuda.
As arranged by the BDA and in support of Bermuda’s globally significant risk and insurance solutions
pillar, the Minister was also pleased to attend alongside the Honourable Premier/Minister of Finance, the Honourable E. David Burt, JP MP, the annual conference
of RIMS, the world’s largest risk management community, RISKWORLD, which was held in Atlanta, Georgia.
In the same vein, the Honourable Premier led the Bermuda delegation to consensus in Austin, Texas and later in the year was a keynote speaker on th e main
stage at InsureTech Connect [2023] in Las Vegas.
In addition to 913 social media posts and 33
press releases, the BDA produced several important
communications and marketing pieces over the period.
It partnered with Worth Media, a global media platform to promote Bermuda’s climate risk solutions asset ma nagement pillar on the ESG Goes Global: Investing Internationally in Sustainable Businesses. Featuring BDA
past Chair Stephen Weinstein. It also continued to update its marketing brochures and created special BDA
cards linked by QR code to its Invest in Bermuda EIRC
digital assets and climate risk solutions webpages.
Other examples include assisting with producing the Bermuda Business Review 2023/24 publication,
placing a full -page ad in Captive Review’s World Domicile report and providing editorials for Bermuda:Re+ILS. To ensure the BDA delivers on its core
mission, it continues to enhance and review its opera-tional systems and frameworks. As a result of this review which was championed by the BDA’s board of
eight volunteer directors and endorsed by the Ministry of Econ omy and Labour, the Speech from the Throne
announc ed that the BDA had begun its journey to becoming a best -in-class investment promotion agency
(IPA).
Madam Chairman, the BDA has also been
busy organising signature on Island events aimed at
highlighting Bermuda’s competitive strengths, and in so
doing held three signature events: the second Annual
Bermuda Risk Summit, the second Annual Bermuda
Climate Summit and the fifth Annual Bermuda Tax
Summit. The immediate economic impact of these
events, including lodging, transportation, food and bev-erage, retail and recreation, was estimated at $3.2 million and supported 686 local jobs. Far more significant
are t he long- term economic benefits of the business
deals written at and around the event.
In addition to BDA’s own signature events, it
supported numerous in- person on Island conferences
relevant to the five key industries.
1. Legal Week; Global Elite Private Client Ex-change Bermuda; Transcontinental Trusts International Forum Bermuda;
2. World Federation of Exchanges Annual Meeting;
3. Bermuda International Long Term Insurers and
Reinsurers (BILTIR) conference;


Bermuda Senate 4. Bermuda Captives Conference;
5. ILS Convergence and Insurance Risk and
Capital Bermuda conference; and
6. STEP Bermuda Conference.
A key message that the BDA continues to relay
to the high- level prospects that it meets both overseas
and at home is that Bermuda is the perfect location for
new businesses in the five key industries. It also reminds potential applicants of Bermuda’s EIRC initiative
that for a minimum investment of $2.5 million they and their families can receive residency rights to see their investment prospects realised. Since its inception in
2021, the BDA has been the sole concierge and marketing source for the EIRC, formerly EIC, which to date
has generated over $450 million in investments and resulted in over 110 new Bermuda residents.
Madam Chairman, BermudAir, the first Bermuda based airline with year -round service for business class visitors, has been a client of the BDA since inception. Also, technology giant Google has announced plans to launch a new submarine network ca-ble Nuvem fr om the United States to Portugal via Bermuda. The BDA and Government have long promoted
Bermuda as a digital hub of the Atlantic.
In addition, Bermuda’s financial services sector
continued to grow in 2023. As of Q3 2023, 796 funds
were registered in Bermuda with a net asset value of
$278,100,000,000. The BMA registered 67 new insur-ers and insurance intermediaries in 2023 in the risk and
insurance solutions space. Major overseas securities
markets also see the value of Bermuda insurers and reinsurers with successful initial public offerings (IPOs)
being held this year for Hamilton Insurance Group and
Fidelis Insurance.
Madam Chairman, in the coming period, the
BDA will begin transforming into an investment promo-tion agency (IPA). There has never been as much global competition for the estimated $727 billion in foreign direct investment flowing worldwide. Thousands of
IPAs represent every country, region and city in the
world, all fighting for the same slices of the global economic pie. As a result of this fierce competition, the
BDA looks forward to refocusing its priorities and growing from strength to strength as a best -in-class IPA in
2024 to deliver even more for our valued stakeholders
and Bermuda.
Madam Chairman, I want to take this opportunity to thank the 11- strong BDA team who have
worked tirelessly to assist with breathing life back into
our economy evidenced by an estimated 2.3 per cent
growth in GDP year over year after adjusting for inflation.
Madam Chairman, that ends my presentation
on Head 94, Economic Development Department.

Thank you, Senator.
Would any Senator wish to speak on these
heads? Senator Tucker.
Sen. Robin Tucker: Thank you, Madam Chairman. I
have several questions. I will ask sort of a few at a time.
On the Department of Immigration, Head 27,
page B -183, Department Objectives. So the objective
speaks to investigation of immigration infractions. I
would like to know if the Junior Minister can please tell
us how many civil penalty investigations were investigated by the department and for the year 2023 and the
penalties issued.
The next question is again from page B -183,
business unit 37030. I would like to know how much was spent on any deportations from the Island in 2023.
Same page, B -183, Department Objectives.
Can the Junior Minister tell us how many general inves-tigations resulted from information received from the
public for the year 2023 and the outcomes?
Page B —

Sen. Leslie Robinson: One second. Madam Chairman, can she just repeat that last one please?

Can you repeat the last question, Senator Tucker? Thank you.

Sen. Robin Tucker: Sure. That was from page B -183,
Department Objectives, again in connection with investigation of immigration infractions. Can the Junior Min-ister please tell us how many general investigations resulted from information received from the public for
2023 an d the outcomes?

Sen. Leslie Robinson: Thank you.

Sen. Robin Tucker: Page B -184. I believe that the
Junior Minister mentioned in her presentation that there
was a consultant who was working in the Department
of Immigration. I would like to know if there were any
others. So the question really is, Can she provide the
total number of consultants who are currently working
in the Department of Immigration, the length of their
contracts and the departments or the sections that they
are assigned? Are they assigned to corporate services,
personal compliance, and so on?

Sorry, do you have answers already?
Sen. Leslie Robinson: I was saying, sorry, Madam
Chairman, I was responding to whether or not . . . go
ahead and . . . if there were any other Senators to ask
questions.

260 18 March 2024 Official Hansard Report

Bermuda Senate The Chairman: Yes, I see Senator De Couto has his
hand up.
Senator De Couto.

Thank you, Madam
Chairman.
I am referring to page B -183, Status and Naturalisation and then I am cross -referencing with page B -
184 and it is a two- part question. There seems to be
close to $1 million ($952,000) under 8301, Status and Naturalisation in revenue. But that Status and N aturalisation department in Operations doesn’t seem to be
funded. Could we have that explained please?
And I have a question about the digitisation
system which I think is in the Capital Grants of Immigration. I guess we are having a do- over. And could the
Senator explain what we would do differently to get a
better result this time? I would appreciate if the public
could be informed. That is two questions on Immigration and I have a few on the performance measures, if
I might continue, Madam Chairman.

I am just looking at the
Performance Measures, and perhaps I see under Per-sonal Services the percentage administrative tasks au-tomated, and 25 per cent of them were automated in
2022/23; 25 per cent were automated in 2023/24; a target to automate another 25 [per cent] . . . I guess if we
go for another year like that it will all be automated. Perhaps the Senator could advise when we feel all of those
tasks will be fully automated.
And then perhaps the Senator could elucidate
to us why it takes two to three months to process ex -
spouse’s rights certificates and six to nine months to process Bermudian status certificates. I think the public
would love to understand that a little bit better.

Sen. Leslie Robinson: Madam Chairman, I could not
hear everything that the Senator was saying.

Thank you. Do you want . . . Senator
Robinson, I don’t know if you have any answers to give at this stage or whether you would prefer me to con-tinue to see if any Senators would like to speak.

Sen. Leslie Robinson: I can give a couple of answers.
For 2023, there were two civil investigations for
civil penalties, one comprising several work permit
holders. And these investigations are still in process. No penalties have been levied at this time. I have the
answer for . . . that was from Senator Tuc ker.

Thank you, yes. I think that was the
first question that Senator Tucker asked.
Would any other Senator in the meantime—
yes, Senator Tucker.

Sen. Robin Tucker: Thank you, Madam Chairman.
I thought I would jump in sort of on the back of
Senator De Couto’s question concerning the digitisation plan going forward. The Junior Minister in her brief
mentioned that there would be two additional phases.
She did mention that they . . . sorry, work permits would
be phase one. I am curious to know what the other two phases would be.
Another question that I have is from page B -
187, Performance Measures, business unit 37020. It is
the first item. It mentions that average processing time
for issuing resident’s certificates . . . the original for
2023/24 forecast is five days, five worki ng days. Can
the Junior Minister tell us why the target outcome for 2024/25 has been extended to five to ten working
days?
Another question that I have, same page, Performance Measures, Personal Services, same business unit 37020. It would be the last item and that is the
average processing time for issuing landing permits for
corporate services of five working days and yet personal services, for the same permit, the same landing
permit takes seven working days to process. Can the
Junior Minister just provide an explanation as to why a
landing permit would take two extra days in the personal services department?

Sen. Leslie Robinson: Madam Chairman—

Proceed.

Sen. Leslie Robinson: There was a question about
how much [was] spent on deportations in 2023. Com-pliance confirms $139,457 was spent on deportations
for 2022/23.


Bermuda Senate With respect to digitisation, the next phase is
an RFI to digitise all the applications under our control,
but not the UK passports.
[Pause]

Sen. Leslie Robinson: Madam Chairman, I have another answer. Processing times were extended to meet
the realities of manpower available in the current manual systems. Digitisation is underway to expediate all
processes.

Yes, I think . . . Senator, if you are able
to explain which question that is providing the answer
to. Your last answer.

Sen. Leslie Robinson: Madam Chairman, I am just
getting clarification.
[Pause]
Sen. Leslie Robinson: This is to answer the question
on why so long to process all applications. So the processing times were extended to meet the realities of manpower available in the current manual systems. Digitisation is underway to expediate all processes.
That was for all.

Thank you, Senator. I think there may
have been one question by Senator Tucker which was
asking about the difference between the processing
time between two different applications one corporate, one personal, but same permit. I don’t know if that answer applies there to.

Sen. Robin Tucker: Madam Chairman, that would . . .
my question related specifically to landing permits not work permits.

Yes, Senator Tucker.

Sen. Robin Tucker: This would be related to [page] B -
185, full -time employees. The Junior Minister did mention that there are 16 vacant positions. And with respect to the answer that she just gave concerning the consultants, I would like to know, one, What is the plan to
recruit staff to fill these full -time positions? That is one
question. And two, we heard last year that there were 13 vacant positions, so I am just curious to know about
where the additional three positions lie.
Thank you, Madam Chairman.

Sen. Leslie Robinson: There was a question about
why status and naturalisation [is] unfunded. Status and naturalisation is funded in personal services.

[Pause]

Any Senators wish to speak while we
wait for the additional answers?
Senator Tucker.

Sen. Robin Tucker: Since we have so much time, I
would like to ask another couple of questions.
[On page] C -19, we have heard that there has
been increase in awarding scholarships which is a really good thing. I am just curious whether the Junior
Minister can shed some light on why under Grants and
Contributions four of the entries that speak to scholarships and the like . . . so that would be business units
6866, 7095, 7097, 7098 and again this is on page C -
19. Why [has] the funding for those been cut? If she
could just shed some light. It just seems to be contrary
to what has been said.
A second question comes from—

Sen. Leslie Robinson: Madam . . . excuse me.
Madam Chairman, I have some answers.

Okay. Thank you, Senator Robinson.

Sen. Leslie Robinson: The spousal . . . the processing time for spousal letters is listed at two to four
months. However, per the budget brief, this time was
recently (in February 2024) reduced to one month for
new applications and 10 business days for renewals.
The timelines in the budget pages were set in accordance with human resources who process these appli-cations.
Then I think it was about a plan to fill staff . . .
job description updates are aligned to the management
services reviewing whose approval is pending. Once
262 18 March 2024 Official Hansard Report

Bermuda Senate job descriptions are done, then we can start the recruiting process.
[Pause]