March 4, 2024

Thank you for that intermission, Madam Chairman.
Madam Chairman, I would like to draw attention to page B -242 of the [Budget] Book, where you will
note that the Ministry of Tourism, Culture and Sport
budget for the financial year is $29,690,000. This is an
increase of $15,901,000, or 116 per cent, from f iscal
year 2023/24 and is due to the transfer of the Bermuda
728 4 March 2024 Official Hansard Report

Bermuda House of Assembly Tourism Authority grant, the Hotel Regulatory and Policy unit and the Cultural and Entertainment support
fund to the Ministry. Madam Chairman, page B -242
shows a revenue estimate for the Ministry of Tourism, Culture and Sport of $641,000. This is inclusive of
$438,000 from vacation rental fees and hotel licensing
fees, and $203,000 from summer day camps.
Madam Chairman, page B -242 also details the
current expenditure of the department that makes up
the overall budget for the Ministry. Madam Chairman,
the summary shows for the upcoming year Ministry Headquarters and the Department of Culture see an increas e in their budgets, and the Department of Sport
and Recreation sees a decrease. Ministry Headquarters’ budget is increased by $17,893,000, and the Culture Department’s budget by $332,000. And the De-partment of Sport and Recreation sees a decrease of $2,324,000 primarily due to the transfer of the Youth
section to the Ministry of Youth, Social Development
and Seniors.
Madam Chairman, as seen on page C -20, the
Grants and Contributions budget across the Ministry is $21,661,000. The grants and contributions to the Ministry of Tourism, Culture and Sport are as follows:
Head 71, Ministry Headquarters, grants total
• $17,480,000 , which includes $16,540,000 for
the Bermuda Tourism Authority grant, a reduc-tion of $2,460,000 from the $19 million in fiscal
year 2023/24;
• $840,000 for the Cultural and Entertainment
support fund to increase interactions between
local entrepreneurs and tourists;
• $50,000 to support the annual Cup Match Classic going to St. George’s; and
• $40,000 to support the Parish Councils commitment.
Madam Chairman, as a result of the reduction
of the BTA’s grant, funds are allocated as follows:
• $300,000 to the Department of Culture with the
establishment of Maker Spaces, a 2023
Throne Speech initiative;
• $860,000 to the Department of Sport and Recreation to provide additional funds for the elite
athletes, given that it is an Olympic year;
• additional funds for Summer Day Camp and an
increase in contributions to the development;
and
• $300,000 to boost funding within the Ministry
Headquarters so that further support can be
provided to local curators of tourism experiences.
Head 20, the Department of Sport and Recreation, grant totalled $3,854,000. This includes
• $350,000 for elite and high- performing athletes, as it is an Olympic year;
• $1,350,000 for the National Sports Centre;
and—

The grants and contributions for the Ministry of Tourism, Culture and Sport are
as follows:
Head 71 —you will see that at the top of page
B-242 right there, Head 71. And I am providing a summary of that, and then I will go to Head 20, which is the
next line, which I will provide a summary of that.
So Head 71, the Ministry Headquarters grants
total
• $17,480,000. This includes $16,540,000 for the Bermuda Tourism Authority grant, a reduction of $2,460,000 from the $19 million in fiscal
year 2023/24;
• $840,000 for the Cultural and Entertainment
support fund to increase interactions between local entrepreneurs and tourists;
• $50,000 to support the annual Cup Match
Classic; and
• $40,000 to support the Parish Council commitments.
Madam Chairman, as a result of the reduction
of the BTA’s grant, funds have been allocated as fol-lows:
• $300,000 to the Department of Culture to assist with the establishment of Maker Spaces, a 2023 Throne Speech initiative;


Bermuda House of Assembly • $860,000 to the Department of Sport and Recreation to provide additional funds for the elite
athletes, given that it is an Olympic year;
• additional funds for Summer Day Camp and an
increase in contribution to sports development;
and
• $300,000 to boost funding within Ministry
Headquarters so that further support can be
provided to local curators of tourism experi-ences.
Head 20, that is the next line.
Are you following me, Madam Chairman?

Head 20, and we are still
on page B -242.
The Sport and Recreation Department’s grants totalled $3,840,000 [sic]. This includes
• $350,000 for elite and high- performing athletes, as it is an Olympic year;
• $1,350,000 for the National Sports Centre; and
• $2,150,000 for sports development.
Head 52 on page B -242, the Culture Department’s grant totalled $321,000. This includes
• $117,000 for the Arts Council;
• $48,000 for the Bermuda National Gallery; and
• $156,000 for cultural activity which includes
Heritage Grants for Gombey troupes, and museums and cultural preservation.
Madam Chairman, these grants to the community align with our mission to develop and celebrate our
people. Madam Chairman, as seen on page C -7, the capital budget for the Ministry is $850,000. This is inclusive of $500,000 for the development and establishment of Maker Spaces, a 2023 Throne Speech initiative, and $350,000 for capital works of the National
Sports Centre.

Current Account Expenditure

Madam Chairman, I turn to
the current account expenditure for Head 71 for the Ministry. Madam Chairman, the financial year 2024/25 Estimates of Revenue and Expenditure for Head 71,
the Ministry Headquarters, is found on pages B -243
and B -244. Page B -243 s hows the budget estimate for
the Ministry Headquarters for the year 2024/25 is
$19,061,000. This is $17,890,000 higher than the original budget for the prior year due to the transfer of the Bermuda Tourism Authority grant, the Hotel Regulatory
and Policy section and the Cultural and Entertainment
support fund.
Madam Chairman, the Ministry Headquarters
comprises two business units, 81000, Administration;
and 81065, Hotel Regulatory and Policy, on page B -
244, which support the Minister’s office, the Ministry’s centralised compliance and accounts functions, and
the Hotel Regulatory and Policy section. This consists
of 12 full -time salaries and provides these services essential to a ministry operation. Madam Chairman, the Ministry Headquarters directs the development and implementation of policy and legislation and has overall
responsibility for management of the Ministry’s budget
and departments within the Ministry. Through its centralised section, the Ministry Headquarters provides ac-counting and financial management services to all departments under its responsibi lity.
Madam Chairman, the Hotel Regulatory Policy
unit regulates the tourism accommodation inventory which includes hotel and vacation rental property
whose ARV (annual rental value) is above $22,800. As
of January 24, there are 43 hotels which are operating
as licensed properties. These properties provide 2,541
units which equates to a bed count of 6,222. This
means on any given night, Bermuda can accommodate
6,222 guests.
Madam Chairman, this unit jointly administers
the Vacation Rentals Act 2018 with Consumer Affairs
in conjunction with the Ministry of Legal Affairs. Vacation rental proprietors provide sleeping accommodations to nine or fewer guests. In addition to accepti ng or
securing guests, vacation rental property owners who
operate vacation rental property with ARVs greater
than $22,800 are required to secure a Vacation Rental
Certificate issued by the union. Madam Chairman, as
of January 2024, a full 100 Vacation Ren tal Certificates
have been issued. These certificates are valid for one year and expire on 31 August 2024.
Madam Chairman, the Hotel Regulatory and
Policy unit also administers the Tourism Investment Act
2017 (the successor to the Hotels Concession Act
730 4 March 2024 Official Hansard Report

Bermuda House of Assembly 2000), which became operative on the 10th of November 2017. Madam Chairman, the Tourism Investment
Act 2017 was amended in 2023 to provide relief depending on the level of investment in the property. De-pendent on the qualification criteria, the type of relief
can include hotel occupancy tax, the employer’s share
of payroll tax, customs duty relief, and land tax and deferral on landholding charges.

Subjective Analysis

Madam Chairman, I now
turn to the subjective analysis of the current account estimates found on page B -244. I would like to highlight
the line items in this section, Madam Chairman.
Salaries. The amount budgeted for salaries for
the fiscal year 2024/25 is $1,215,000, which represents
an increase of $384,000, or 46 per cent, due primarily
to the transfer of four staff of the Hotel Regulatory and
Policy sections and the salary uplift.
Professional services. The amount budgeted
for professional services for the year 2024/25 is
$194,000, which represents an increase of $77,000, or
66 per cent. The increase reflects the funding to assist
with the transition of Tourism into the Ministry, Madam
Chairman.

Performance Measures

Madam Chairman, the Ministry Headquarters performance measures are listed on
page B -245. Our annual indicators reflect the administrative nature of the Headquarters function. We were able to complete the one compliance review intended
for the year, two of the three training sessions and
100 per cent of ministerial policy priorities this fiscal
year, namely, in the form of the 2023 Anti -Doping in
Sport Act.
Madam Chairman, before closing I would like
to take this opportunity to thank the small, dedicated
team at the Ministry Headquarters for the work they do
in ensuring the Ministry meets these mandates. It is
headed by Permanent Secretary, Ms. Marva- Jean
O’Brien, and supported by the Comptroller, Ms. Wendy
Hunt (Pond); Policy Analyst, Ms. Jane Brett; and Senior Manager, Hotel Regulatory Unit, Ms. Rhonda Woods -
Smith. The Ministry Headquarters is technically supported by the Director of Culture, Dr. Kim Dismont -Robinson, and the Director of Sport and Recreation, Ms.
Kimberly Charryse Bean.
Madam Chairman, as we look to the year
ahead, we have much to look forward to. Our Ministry
will continue to ensure that our cultural and sports communities are celebrated, supported and uplifted and
that the focus on creating visitors is sustained. Madam
Chairman, this Ministry has a great role to play in the
fabric of Bermuda society and our national identity. And we will continue to develop and celebrate our people in
every way. Madam Chairman, on behalf of the Minister,
Senator the Honourable Owen Darrell, this concludes
my presentation on financial year 2024/25 budgetary
allocation for Head 71, Ministry Headquarters.
And I will now move to Head 20, Youth, Sport
and Recreation, followed by Head 52, Culture, with
your permission (and a bit of water).

Yes, Junior Minister, you have permission.
While we are just giving you a little rest, I will
let the listening audience know that we are in the Committee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year
2024/25. And we are currently —we just finished lis tening to the Junior Minister’s brief on Tourism. And he will now be proceeding to give us a briefing on the overview of the [Department] of Culture and Sport.
Junior Minister, you may proceed.

Madam Chairman, I now
present the fiscal year 2024/25 Estimates of Revenue


Bermuda House of Assembly and E xpenditure for Head 52, the Department of Culture, which can be found on pages B -253 through B -
261 of the Estimates Book.
Madam Chairman, the department’s mission is
To develop our creatives, preserve our heritage and
celebrate our people. The department’s objectives for
2024/25 are
• to support Bermuda's cultural, heritage and artistic communities and institutions through de-velopmental programmes and partnerships ;
• to preserve our heritage by promoting an understanding of Bermuda’s cultural identity
through education, research, publication and
enrichment programmes ;
• to celebrate our people and the development
of our national identity by curating cultural festivals, public discussions and educational programmes ; and
• to serve as stewards of Bermuda’s cultural heritage.
Madam Chairman, the Department of Culture
administers two programmes and 12 business units. A
general summary is contained on page B -254 of the
Estimates of Revenue and Expenditure for the financial
year of 2024/25. The total estimate is $ 2,223,000. This
represents a decrease of $ 332,000, or 18 per cent, of
the 2023/24 original budget of $1, 891,000.
For the 2024/25 budget year, the Department
of Culture is focused on delivering opportunities that
will enhance the creative output of Bermudian artists. A
major new initiative, the establishment of Maker Spaces for creatives, will be discussed later in this brief.
The department will use tools including film projects
and workshops as a way of encouraging young Bermudians to learn more about our history and culture, and
will provide various platforms to showcase the talents and artistry of our dancers, mus icians, writers, Gombeys, artists, actors and tradition- bearers, who carry
the torch of keeping our culture vibrant and alive.
Madam Chairman, I will now offer highlights of
the accomplishments, programmatic plans and
changes in estimates for the business units associated
with the Department of Culture.

Business Unit 62000 , Grants to Organisations

Under programme 5202,
Cultural Affairs, business unit 62000, Grants to Organisations . Madam Chairman, the total amount budgeted
under this business unit for fiscal year 2024/25 is
$231, 000. This amount reflects a change of $1,000 as
compared to the original budget for the financial year
2023/24. The Bermuda Arts Council’s grant remains at
$117,000 for financial year 2024/25. One of the primary
roles of the Bermuda Arts Council is to review applications submitted by individual creatives and organisations for developing artistic projects and further educating themselves about their craft . In 2023 the Bermuda Arts Council awarded
$54,200 in individual and $47,000 in organisational
grants. In the 2023/24 financial year, there were 17 recipients of the council’s individual grants, including
Rory Wilson to assist with film production; Wayne Ray-nor for his video “One Blood”; Neil Jhay Morris to assist
with funding his first art showcase; Helen Zoellner for
production of her film, Sun, Ros é and Romance;
Sinead Simmons for videography of her storytelling
project; and support for a number of other c reatives.
There were also nine organisations that received funding from the council, including Bermuda Donquili, Troika, SJD World, Noire Youth Theatre Company and
others.
In addition to the individual and organisational
grants that were awarded in the 2023/24 fiscal year, the
Bermuda Arts Council also awarded four student schol-arships for a total of $20,000. Two students accepted
their awards. Daelyn Saint Surin is pursuing a degree
at St. Lawrence University in Graphic Design; and Tiko
Caines is studying Art and Design at the Bermuda College. The Bermuda Arts Council Awards, set to take
place in May, will honour six recipients. Lifetime
achievement awards are presented to artists who have
created a significant body of original work that is representative of the Bermudian spirit. The Founder Award
is presented to those persons who have been pioneers
in their respective art form and have been role models
for their fellows. The Patron Award is given to those
who have been benefactors to the Bermuda arts community.
The department would like to acknowledge the
hard work of the Bermuda Arts Council, particularly the new Arts Council Chair, visual artist and graphic designer, Ms. Shanna Hollis.
Madam Chairman, in addition to the fine work
of the Bermuda Arts Council, the department recog-nises the importance of supporting our tangible cultural
heritage. Government plays a pivotal role in assisting
Bermuda’s museums and cultural institutions. In the
2023/24 financial year, the department awarded Heritage grants to the St. David’s Islanders and Native Community, and the Bermuda Historical Society regime; the
St. George’s Historical Society regime; the National
Museum of Bermuda; the St. George’s Foundation; and
the Bermuda Gombey Troupes. The Department of
Culture also provided a grant to the Bermuda National
Gallery in part for their stewardship of the Watlington
Collection of art owned by the Government of Ber-muda. The Bermuda National Trust is to assist with the
annual Christmas Walkabout, and an additional grant
to Warwick Gombeys to assist with the development of
a book project being co- written by Mr. Irwin Trott, Exploring the Gombey Traditions from a Historical and
Contemporary Perspective.

Business Unit 62001, Administration

732 4 March 2024 Official Hansard Report

Bermuda House of Assembly Mr. Hubert (Kim) E. Swan: Madam Chairman, the
function of this business unit is to provide for the administration and operation of the Department of Culture, which is located on the 3rd floor of the Bermuda
Government Administration Building.
Madam Chairman, the allocated budget for the
fiscal year of 2024/25 for this business unit is $885 ,000,
as shown on page B -254. This amount reflects an increase of $22,000, or 3 per cent, as compared to the
original budget of $863,000 for the fiscal year 2023/24.
Madam Chairman , the allocated budget sustains both programmes for operation, including salaries
and wages. The remainder of the budget provides for
office supplies, board fees, website maintenance and
telephone services. This budget also provides funding
for department -wide promotions, specifically social media engagement . The increase in this year’s budget can
be attributed primarily to salary uplift.

Business Unit 62010 , Emancipation
and Cultural Festivals

Madam Chairman, the total
amount for this business unit in financial year 2024/25
is $4 5,000. This represents an increase of $5,000, or
13 per cent, compared to the original budget of $ 40,000
allocated in the 2023/24 financial year.
Madam Chairman, this business unit focuses
on highlighting the contributions of our African, Caribbean, Azorean, British and St. David’s Island Native
Community core cultures in alignment with our National
Cultural Heritage Policy.
Emancipation Programme: The Department of
Culture also offers an annual commemoration of Bermuda’s Emancipation through programming that explores and researches the history of enslavement and
segregation experienced by Bermudians of African de-scent. Beyond commemoration, the initiatives of this
programme also celebrate our African and Black Bermudians’ excellence. The 2023 commemoration signature event featured a documentary entitled “ Cup Match:
Legacy of Honour” by filmmaker Dr. Dana Selassie of
Zyhon International. The film features interviews with
those who have been intimately involved with the Cup Match for many years, including Cleveland Foggo, Neil
Paynter, Dawn Simmons, Clay Smith, Myra Bristol and
Mr. Erwyn Bean.
The theme for the 2023 commemoration was
taken from the subtitle of the film, “Legacy of Honour.”
The calendar of events and lectures, sponsored by the Department of Culture, featured programming by
stakeholders including CURB, Titan Express and the
Depart ment of Libraries and Archives. The 2024 Emancipation commemoration will feature a film tentatively
entitled “Heart of the City” highlighting the cultural and
historical importance of Court Street. This film is being developed in collaboration with 14 part icipants in the
Family Centre’s Youth Leadership Academy and will satisfy one of the Government’s 2023 Throne Speech initiatives.
As a way of enhancing access to our cultural
heritage in 2024, the department is also producing a series of audio recordings of Bermuda’s literary work with The History of Mary Prince. Mary Prince’s freedom
narrative is recognised as a key historical and literary
work, but the world has never heard a Bermudian voice
read her words. Working with Bermudian actors and
producers, the department will launch this recording
both as a serialised podcast and an audio book, meeting the department’s publishing and per formance
measures.
Funding from this business unit will also provide some support toward the 175
th anniversary celebration of Portuguese presence in Bermuda.

Business Unit 62020 , Heritage Celebrations

Madam Chairman, the total
amount budgeted for this business unit for financial year 2024/25 is $2 73,000. This represents a small increase of $4,000, or 1 per cent, compared to the original budget of $269 ,000 allocated in 2023/24.
Madam Chairman, th e business unit covers the
cost of both Heritage Celebrations and the Bermuda
Day Parade. Heritage Month 2023 began with the third
annual Cultural Conference engaging cultural heritage
and art stakeholders and reviewing two years of progress on the department’s National Cultural Heritage Policy. This was held at the legendary Spinning Wheel
entertainment complex and engaged cultural stakeholders as well as vendors and community members
from the North East Hamilton economic empowerment zone.
Bermuda Day participants truly showed their
resilience in 2023, choosing to continue to dance, float and march despite torrential (that is putting it mildly)
rain, as we celebrated the theme A Bermuda Renaissance. Our true Bermudian spirit shone despite the
downpour where we saw Gombeys in T -shirts using
umbrellas as hatchets and primary school [children] pulling box -carts, creating a conjunction with the Department of Culture and the Department of Works.
The Department of Culture partnered with the
Bermuda Foundation in 2023 to create the Bermuda
Day Fund, a way for the corporate sector and private
individuals to donate to groups and participants in the
Bermuda Day Parade. This fund helped to offset the
significant cost of parade participation such as trucking,
costumes and float supplies. The support from several
corporate and individual donors, including Skyport, the
Bermuda Foundation, Egham, Bermuda Limited, Mosaic Insurance Holdings Ltd., provided the means for
as many members of the community to be integrated into the Bermuda Day Parade as possible.
There were 50 enrolled participants in the Bermuda Day Parade, although not all were able to go out
in the rain. Those who persevered attracted a vibrant


Bermuda House of Assembly crowd of enthusiastic spectators who remained
camped in their spots despite the weather. The high spirits of spectators and participants alike made this pa-rade one they will never, ever, ever forget!
The theme for Heritage Month and the Bermuda Day 2024 is Culture Equals Energy. The department also is excited for the increased community participation with the Bermuda Day Parade and is pres-ently actively reaching out to stakeholders for sign- ups
as well as corporate sectors for their support of the Ber-muda Day fund. The department has launched a media campaign, 100 Days of Energy , which showcases behind-the-scenes footage of various groups and organisations as they prepare for the upcoming parade.

Business Unit 62030, Cultural Education

Madam Chairman, the
amount budgeted for this business unit for financial year 2024/25 is $37,000. This represents an increase
of $33,000, or 825 per cent , when compared to the original budget for the financial year 2023/24 of $4,000. The increase in this business unit can be attributed to
the costs relating to the coordinating of the department’s annual Cultural Conference and the stakehold-ers engaged in the event that had been added to the business unit.
Madam Chairman, for the fiscal year 2023/24,
the department re- introduced the Tradition Bearer in
Public Schools programme with a new focus on middle school students. Our department worked along with the Department of Education and the tradition bearer Mil-ton Hill in the construction of a full -sized Bermuda fitted
dinghy with M3 students at Whitney. In past years the programme has been popular with the educating of our
students on the traditions of woodcraft with Milton Hill,
banana- doll making with Ronnie Chameau, Bermuda
Gombey regalia with Janice Warner and Bermuda kite-building with Eugene O’Connor. Funding has been al-located in the 2024/25 budget to continue this programme with the focus on the primary schools.
Madam Chairman, in 2024/25 we have transformed the department’s annual Cultural Conference
“Eggnog and Dialogue” events to this business unit
from business unit 62010, Emancipation and Cultural Festivals. This is in recognition that both events are focused on the education, support and promotion of Bermuda’s cultural stakeholders.
Scheduled for May 5, 2024, the fourth annual
Cultural Conference is an event that will fortify and strengthen connections between Bermuda’s cultural champions featuring panel speakers, small group discussions and performances from our brightest talent.
The Cultural Conference will mark the start of Heritage
Month and our celebration of Culture Equals Energy. This is also an occasion for the department to report on its progress of the National Cultural Heritage Policy 2021 –2026 and unveil plans for the upcoming year. Finally, the department will showcase the diverse projects supported by its Heritage grant and Art Council grants.
(Madam Chairman, I am just taking a little water at this time.)

And so I will take this time to remind
the listening audience that we are here in the Commit-tee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year 2024/25. To-day we are listening to the heads for the Ministry of Tourism, Culture and Sport. Right now the Junior Minister is reading the brief on the Department of Culture.
And we have remaining the Department of Sport and
Recreation.

Madam Chairman, this is
on page B -254. Madam Chairman, t he amount budgeted for this business unit for financial year 2024/25 is
$26,000. This represents a decrease of $4 ,000, or
13 per cent, when compared to the original budget in financial year 2023/24 of $30 ,000. The decrease in this
business unit is based on minor cost savings achieved through different forms of advertising and air service providers.
Madam Chairman, funds associated with this
business unit are used to formally honour and com-memorate a new National Hero when one is named and to celebrate our existing National Heroes on an annual basis. In financial year 2023/24, in addition to the public
awareness campaign, the department organised a series of musical tribute showcases for our heroes also
aligned with our Premier’s Concert . Celebrating our National Heroes, the concert feature d performances and
presentations from Stephan Johnstone and Marq Rodriguez, the Bermuda Philharmonic Society, Shayla
Gift, Janita Burke and Abimbola Bademosi , Hana
Bushara, Layla Williams, the Royal Bermuda Regiment
Band and Dakari Love.
In financial year 2024/25 the department will
again host a tribute concert celebrating our National Heroes.

ANNOUNCEMENT BY THE CHAIRMAN

HOUSE VISITOR

Excuse me, Junior Minister, if I may
just interrupt.
I would like to acknowledge that the former Opposition Leader, MP Cole Simons, is in the room. And I
just wanted to acknowledge and say hello.

734 4 March 2024 Official Hansard Report

Bermuda House of Assembly Mr. Hubert (Kim) E. Swan: And I join in. In the words
of the Honourable Deputy Speaker, Mr. Cole Hadley
Simons.
[Committee of Supply, continuing]

Business Unit 62060, Promotion of the Arts

Madam Chairman, the
amount budgeted for this business unit for financial year 2024/25 is $74,000. This represents a decrease of
$24,000, or 24 per cent , when compared to the original
budget for financial year 2023/24 of $98 ,000. The decrease in this business unit can be attributed to costs
of coordinating and hosting the 2023 Literary Award s
Ceremony in the financial year 2023/24.
Bermuda Literary Awards . In February 2024
the department celebrated six Bermuda Literary
Awards which recognised the literary accomplishments
of Bermudians who published works between 2018 and
2023. The Bermuda Literary Awards were inaugurated by the Bermuda Government in 1999 to honour literary
achievements by Bermuda’s writers and are administered by the Department of Culture once every five
years. After an open call for the public to nominate
works, the department worked with a committee of esteemed readers who selected the wi nners from a list of
over 30 nominated books.
The winners include the following:
• Dr. Quito Swan, who won the Dr. Eva Hodgson
Prize for Non- Fiction for Pauulu’s Diaspora:
Black Internationalism and Environmental Justice. In 2024, the Award was named to honour
activist, union leader and educator Dr. Eva
Hodgson, who passed away in 2020. The department recognises that Dr. Hodgson’s writings including the books Second Class Citi-zens, First Class Men and A Storm in a Teacup
forever changed Bermuda’s cultural land-scape.
• Lucinda Spurling won the prize for Drama and Screenwriting for Journey of the Shaman.
• Jonathan Land Evans won the prize for Cultural Merit for Bermuda in Painted Representation.
• Dr. Paul Maddern won the Cecile N. Musson Prize for Poetry for “The Tipping Line.” This
marks the third time that Dr. Maddern has won
the prize for poetry.
• The judges recognised Andra Simons’s book
Turtlemen with an Honourable Mention for Poetry.
• Elizabeth Jones won the prize for Children’s
and Young Adult Fiction for her young adult
novel A Dark Iris .
• Dr. Angela Barry won the Brian Burland Prize
for Fiction for her novel The Drowned Forest.
This marks the third time that Dr. Barry has
won the prize for fiction. A Founder’s Award is also granted to recognise seminal works of the Bermuda literary canon. This year the Bermuda Literary Awards Committee recognised National Hero Mary Prince’s A History of Mary
Prince with the Founder’s prize.
At the end of that road, the department hosted
a ceremony to honour recipients and to honour their ac-complishments with readings from their written work
and a musical performance by a young, talented violinist.
Writer in residence. Madam Chairman, the Department of Culture supports programming to assist in
the development of our literary arts. With that aim in
mind, the department hosts an annual Writer in Residence Workshop focusing on a variety of genres.
Mada m Chairman, in September and October of 2023,
the department held a mini -workshop, “Did I Scare
You? Spooky Story Telling Workshop” —
[Laughter]

I am just making sure you
are listening. I might be auditioning, Madam Chairman,
you never know.
[This workshop was] for the local writers and
actors, led by accomplished storyteller Rajai Denbrook.
This workshop guided writers of all skill levels in a jour-ney from blank page to stage. The participants explored what makes a story suspenseful and how to
keep their audience on the edge of their seats through
their writing, as well as using stagecraft and theatrical
techniques. One of the original stories crafted in the
workshop was performed by the Culture Department’s Bermudian Heartbeats event, “Gather ‘Round the Fire:
Spooky Tales for the Whole Family” in October.
In financial year 2024/25 the department will
build on the success —

Thank you for that, Madam
Chairman. And we certainly make mention and recognise the presence of the Honourable Minister.

[Committee of Supply, continuing]


Bermuda House of Assembly Mr. Hubert (Kim) E. Swan: And I will continue on with
the “Spooky Tales for the Whole Family” in October. In
financial year 2024/25 the department will build on the
success of the programme by hosting an award- winning author from overseas conducting an extensive
workshop series for local writers, as well as two mini -
workshops.

Business Unit 62070, Folklife Bermuda

Madam Chairman, the
amount budgeted for this business unit for financial
year 2024/25 is $6 4,000. This represents an increase
of $1,000, or 2 per cent , when compared to the original
budget of $63 ,000 for financial year 2023/24. This increase can be attributed to the increase in cost of
goods and services required to carry out these programmes. Activities that come under this business unit
include the Bermudian Heartbeats Lecture Series and
the Cultural Apprenticeship Programme.
Madam Chairman , the Bermudian Heartbeats
Lecture Series celebrated its 20th anniversary. This dynamic series of lectures and events was founded by a
visionary group of people, including Bermuda National
Hero Dr. Pauulu Kamarakafego, to focus on Bermudian
history. Originally the Historical Heartbeats, evolved
under the stewardship of the Bermuda Heartbeats Committee into a series of events that explores all facets of Bermud ian cultur e and history . Using non-traditional locations and varied methods of presen tation,
this series creates experiences that are both educational and memorable.
Financial year 2023/24 was a robust year for
the lecture series with a total of 12 events held in June
2023 through to February 2024. In June we drove deep
into the history of the Black families in St. George’s with
a lecture from Dr. Michael Jarvis at St . George’s Cricket
Club. In July and August the exploration of Black Ber-mudian history continued with two panel discussions,
one comprising historians and one comprising Bermudian creatives. The panellists discussed questions of
how Bermuda can honour the lives of Black Bermudians whose stories may have been lost and memorialise the sites of their trauma and resistance. In October the department celebrated the spooky season with its annual family storytelling events in the atmosphere of the
Aquarium Hall of the Bermuda Aquarium, Museum and
Zoo.
The Bermudian Heartbeats also spread musical joy through the holiday with the brand- new concert
series, Carolling Through the Parishes, partnering with
the Bermuda Regiment Band and the Corps of Drums
of the Salvation Army. And Bermudian Heartbeats held
six holiday music concerts across the Island, including
on the grounds of the Cabinet Building at Town Square, St. George’s and Death Valley, and other very notable
locations. In keeping with the mission of the depart-ment, the new season has already commenc ed, and it
follows the calendar year rather than the budget year. In February the department held its second
panel discussion on the history and future of Bermuda’s social clubs, this year focusing on central parishes including the historic Leopard’s Club and Devonshire
Recreation Club. Madam Chairman, as part of this programme, the Department of Culture will feature events
such as boat tours exploring four centuries in the Great
Sound, a celebration of St. David’s history and culture
in partnership with St. David’s Islanders and Native
community, and the expansion of th e Carolling Through
the Parishes programme.
Madam Chairman, the Department of Culture
offers the Cultural Apprenticeship programme to sup-port the preservation of cultural knowledge and skills
from one generation to the next. The principal objective
of the programme is to foster the growth of a youn ger
generation of tradition bearers in Bermuda. The programme pairs a tradition bearer with interested apprentices. The department was delighted to coordinate two
cultural apprenticeships in financial year 2023/24.
BioQuest, powered by CariGenetics, partnered with tradition bearer Myles Darrell, who had been working
with apprentice Sierra Pacheco to train her in researching and producing the first high- quality referenced genome of Bermuda’s national tree, the Bermuda Cedar.
Following Sierra’s training, she will in turn train Bermuda College students in identifying pure from hybrid
trees to collect and process samples.
The department also partnered with Friends of
St. Peter’s Church to offer apprenticeship training to help shift the repair and maintenance of the iconic St. George’s structure into Bermudian hands. Tradition
bearer Melvyn Lee of clockmakers Thwaites and R eed
Clockmakers worked on St. Peter’s Church clock
preservation and restoration project with apprentices
Ian Birch and Phillip Anderson, Jr. The department
looks forward to connecting more apprentices with the master cultural artisans in the upcoming financial year.

Business Unit 62080 , Research and Publication

The amount budgeted for
this business unit for the financial year 2024/25 is
$73,000. This represents a decrease of $2,000, or
3 per cent , when compared to the original budget for
the 2023/24 year of $ 75,000. This decrease in this business unit can be attributed to the savings in the cost of promotion for these programmes .
Madam Chairman, the Department of Culture
prides itself in developing our creatives, preserving our heritage and celebrating our people. We feel that the
“Gold Bermudians” film series represents a fusion of all
three arms of the department’s mission. Madam Chairman, in 2023 the department launched a documentary
titled “Gold Bermudians: Profiles in Excellence” which
captured stories of Bermudians who have excelled on the international stage. Part 1 of the series featured history-making Olympic diver Katura Horton- Perinchi ef;
music ian Lance Hayward; Olympic boxing bronze
736 4 March 2024 Official Hansard Report

Bermuda House of Assembly medallist Clarence Hill; and Fraggle Rock creator Michael Frith. The Department of Culture will continue to
celebrate the outstanding achievements of Bermudians in the 2024/25 financial year by continuing with the series.

Business Unit 62180 , Special Projects

Madam Chairman, the
amount budgeted for this business unit for financial
year 2024/25 is $300,000. There were no funds allo-cated for this business unit during the financial year
2023/24. Typically, the funds allocated for this business
unit are used to support special cul tural projects. In
alignment with the 2023 Throne Speech, the Depart-ment of Culture will develop Maker Spaces, a place
where artists can paint, musicians can practice, actors can rehearse and creatives can collabor ate with each
other. This will provide a hub where creatives can work
on projects together, and those who currently do not
have an affordable place to practice can work on hon-ing their craft.

Programme 5203, Community Services

Business Unit 62100 , Uncover the Arts Programme

Madam Chairman, the allocated funds for the financial year 2024/25 for this
business unit are $91,000. This amount represents a
decrease of $ 15,000, or 14 per cent, when compared
to the original budget estimate of $106,000.
Madam Chairman, the funds in financial year
2023/24 associated with this business unit were used
to support musicians ’ public performances known as
“Creatives Live! ” The programme provides the benefit
of giving our artists the opportunity to perform. Some of the performances included
• Working Title at the Warwick Workman’s Club;
• the WallStreet Band at the St. George’s Cricket Club;
• Arijahknow Live Wires and the Kings Band at
the Devonshire Recreation Club;
• the Tino Martinez Quartet down there at Harrington Workmen’s Club; and
• the department supported the Chewstick Foundation with open mic events at the Blue Waters
Anglers Club.
Madam Chairman, in financial year 2024/25
the department will continue to build upon the success of the Creatives Live! programme by again hosting our
Creatives Live! evening concert series at sports and social clubs and will continue sponsoring open mic events
with our cultural partners .
Madam Chairman, in the financial year
2023/24 the department hosted their second creative cultural lab professional development workshops
geared toward artists and creatives. In these creatives
cultural lab workshops creatives were given tangible tools to further develop their artistry and cultural industries. Workshops covered details such as
• how to best print and frame visual artworks,
from Loris Toppan and Nzingha Ming of the
Bermuda Society of Arts;
• how to start a podcast, Keamon Woolaston
and Kevina Lorae;
• how to build your creative portfolios and r ésumés, with Gavin “Djata” Smith; and
• how to host an event, with Patrina “ Powergirl”
Paynter.
There were also information sessions that covered details on applying for Bermuda Arts Council funding; ideas on budgeting for large- scale events and tips
for using free graphic design software. Hands -on creative sessions included
• tackling writers block, with Matthew Johnston;
• acting on camera, with Chardonne Paynter;
• mixing board basics, with Eugene Dean; and
• “Seeing Life Cinematically,” with Dion “t he Creative ” Easton.
From these workshops Bermudian creatives
will be able to connect with their peers, improve their
skills and crafts, and even learn things that could help
them monetise their passion for the arts. Funding has
been in the 2024/25 budget to continue to develo p
these worthwhile programmes to support our creatives
and partner them with industry mentors through their
growth.

Business Unit 62210 , Gombey Festival

Madam Chairman, the
amount allocated for this business unit in 2024/25 is
$124 ,000. This represents an increase of $11,000, or
10 per cent, when compared to the original budget estimate of $113,000 for financial year 2023/24. This difference is due to the increasing cost year -over-year in
infrastructure that had not been accounted for since the pandemic.
The Bermuda Gombey Festival . Madam Chairman, in 2023 the Bermuda Gombey Festival regrettably
had to cancel after being postponed due to bad weather on four separate occasions. Alternate indoor venues
were explored, but it was determined in conjunction
with the captains of the respective Gombey troupes
that the indoor spaces would not accommodate t he
same number of people or give the same festival atmosphere. This otherwise annual tradition has been held to provide exposure and education to the folk art
and traditions of the Bermuda Gombey and the wider
influences from across the Diaspora.
Madam Chairman , as part of the Gombey Festival budget, the Department of Culture has created a
short film directed by Bermudian filmmaker Qian Dickinson [“Not a Generic Gombey: Art, Consumption, and
Intellectual Property” ], highlighting the work of the Bermuda Gombey Council toward the Gombey unit. This
is part of the ongoing work that the department is


Bermuda House of Assembly undertaking with the Bermuda Gombeys to support the
evolution and preservation of their cultural identity.
Although the f estival did not take place, the
Chewstick Foundation continued their “Gombey in the
Gardens” mural on the Jack King Building in the Botanical Gardens with a tribute to Gombey Evolution, marking the fifth troupe depicted in this ongoing series sponsored by the Bermuda Department of Culture.
Madam Chairman, the allocated budget for financial year 2024/25 will finance the cost of event infrastructure, financial awards to participating Gombey troupes, other participating local dance groups and
other weekend events related to the Gombey art form.
Madam Chairman, t here is no change to employee
numbers , with the full -time equivalents remaining at
eight as found on page B -256.
Madam Chairman, this concludes my presentation on the budgetary allocation for financial year
2024/25 for Head 52, the Department of Culture.

Thank you, Junior Minister.
And while the Junior Minister takes a break, I
would like to just let our listening audience know that
we are in the Committee of Supply for further consideration of Estimates of Revenue and Expenditure for the year 2024/25. This morning we have been list ening to
Junior Minister MP Kim Swan, and he has given an overview of the Ministry of Tourism, Culture and Sport. He has given his brief on Tourism, he has given his
brief on Culture, and now he will be beginning his brief
on Head 20, Sport and Recreation.
And I would also like to acknowledge that the
Minister is also in the Chamber, Senator Owen Darrell.
Junior Minister, you may proceed when you
are ready.

Madam Chairman, I will
now present the financial year 2024/25 Estimates of
Revenue and E xpenditure for Head 20, the Department
of Sport and Recreation, which can be found on pages
B-246 to B-252 of the Estimates Book. T he mission of
the Department of Sport and Recreation is To develop
Sport and Recreation through our services and to celebrate the accomplishments of our people. Madam Chairman, the objectives are as follows:
• Provide funding/support for National Sports
Governing Bodies (NSGBs).
• Manage and maintain government sports and
recreation facilities.
• Provide recreation programmes for school -
aged children.
• Prepare and manage the budget to ensure intended deadlines are met . • Meet and fulfil the objective of the department’s
National Sport s Policy .
Madam Chairman, the Department of Sport
and Recreation administers six programmes and 15
business units for which a general summary can be
found on pages B -247 and B -248 of the Estimates of
Revenue and Expenditure for the financial year
2024/25. The budget allocation for the Department of Sport and Recreation in fiscal year 2023/24 is
$8,334,648, a decrease of $2 ,024,116, or 22 per cent ,
as shown on page B -248.
Madam Chairman, I will now discuss the individual programmes under Head 20.

Programme 2001, Administration

Madam Chairman, the
budget allocation for business unit 30045, General Administration, is $8 65,806. The allocated funds provide
for the administration and operations of the Sport and
Recreation Department’ s Headquarters , which is located in Craig Appin House situated on 8 Wesley Street
in the City of Hamilton. In addition, the administrative
section provides administrative support for five programmes within the department and is responsible for monitoring departmental spending to ensure that policies and procedures are adhered to in achieving efficiency and effectiveness.

Programme 2002, Sport s Development

Madam Chairman, the
Sport s Programmes are operated through business
unit 30055. The budget allocation is $452 ,261, an increase of $24 ,286, or a 6 per cent increase. This increase represents funding allocated for the development of a foundation programme to assist children in
the improvement of their motor and functional skills in
preparation for sports participation. The initiative is goal
1.2 of the National Sports Policy. The residual funds in
business unit 30055, Sports Programmes, include salaries, $282,261 for salaries, and training, recreational supplies and other funds to ensure the efficient and effective administration of the Sports Programmes unit of
the department.
Madam Chairman, business unit 30065 . . .
Madam Chairman, I saw you transitioning to a
new Chairman. Did you want to do that at this time?

Thank you, Madam Chairman.

[Pause]

[Mr. Christopher Famous , Chairman]

738 4 March 2024 Official Hansard Report

Bermuda House of Assembly The Chairman: Good afternoon to the listening audience and Honourable Members in the Chamber.
We are now in Committee of Supply for further
consideration of the Estimates of Revenue and Expenditure for the year 2024/25. Honourable Kim Swan, Junior Minister of Tourism, Culture and Sport is giving
his brief.
[Honourable Junior Minister], you may proceed.

Thank you, Mr. Chairman.
Mr. Chairman, on programme 2002, Sports
Development. Mr. Chairman, the Sports Programmes
unit is operated through business unit 30055. The
budget allocation is $452,261, an increase of $24,286,
or 6 per cent. The increase represents the funding allocation for the development of a foundation programme
to assist children in the improvement of their motor and
functional skills in preparation for sports participation.
The initiative is goal 1.2 of the National Sports Policy.
The residual funds in business unit 30055, Sports Programmes, include $282,261 in salaries for training, recreational supplies and other funds to ensure the efficient and effective administration of the Sports Programmes unit of the department.
Mr. Chairman, business unit 30065, Sports Investments, is dedicated to highlighting how the Ber-muda Government invests in the community through sport. In 2022 the National Sports Policy was updated
with a five -year promise to raise the value of sport with
a new vision that “Sport Matters.” To assist with the Na-tional Sports Policy, business unit 30065 has been allocated a total of $2, 094,000. Funds , Mr. Chairman, in
this business unit are allocated to investment to National Sports Governing Bodies to develop sports . The
increased funding also offers additional assistance to
elite athletes through special grants and provides in-creased free access to the National Sports Centre for
national athletes and teams in advance of international
competition.
Allocating extra funding to sports programmes
will broaden the exposure of more Bermudians to
sports, foster an increased participation and contribute
to the overall health of our Island. A dditionally, funding
has been provided for the Bermuda Olympic Association and the Bermuda Sport Anti -Doping Authority
(BSADA) which is a statutory authority mandated to enable Bermuda’s athletes to compete internationally.
Mr. Chairman, during fiscal year 2024/25, the
Department of Sport and Recreation, in partnership
with our recognised National Sports Governing Bodies,
intends to continue focusing on all aspects of sport s development and to ensure National Sports Policy goals
and objectives are met.

Programme 2003, Sports Incentives and Awards

The estimate for business
unit 30030, Athletic Awards, is $410,000, an increase of $100,000 . This represents the allocated funding for
the Elite Athlete Assistance Programme. The increase
in funding provides additional assistance to elite athletes whose special grants from the Department of
Sports and Outstanding Performance Incentive Pro-gramme and the Bermuda Olympic Association also received funding from the Athletic Awards business unit
for their E lite Athlete programme which they manage.
With 2024 being an Olympic year, we must support those elite athletes in their pursuit of qualification.
Mr. Chairman, the business unit also provides
funding for the National Junior Athlete Sponsorship
Programme [NJASP]. The NJASP provides encouragement and development opportunities for Bermudian
junior athletes between the ages of 15 and 19 who
clearly show commitment, promise and achievement in
their respective sport. The funding will support our jun-ior athletes with immediate training and competitions
that will assist in their development to become future
elite athletes, representing Bermuda at major fest ivals.

Programme 2004, Sports Facilities Management

The budget estimate for
business unit 30060, Sports Facilities Administration, is
$1,572,910. There is an increase of $259,841, or
20 per cent, over 2023/24. Mr. Chairman, the budget
estimate for the business unit 30060 supports salaries
for the Property Manager and wages for the grounds -
person, as well as vehicle repairs and maintenance.
This unit also supports the National Sports Centre.
The National Sports Centre provides internationally certified facilities for sports training and competition s, as well as a venue for recreation and entertainment. The National Sports Centre stands as a cornerstone of our country’s sporting infrastructure, playing a
pivotal role in fostering athletic development and promoting healthy lifestyles among our citizenry. The designated funding allocated to support the oper ation underscores the Government’s unwavering commitment
to the advancement of sports and recreational activity.
Mr. Chairman, the National Sports Centre’s renewable energy project is nearing completion. As previously reported, the renewable energy project is a high
priority for the National Sports Centre, as it remains a viable option for the sustainability of the f acility. There
have been delays in the activation of the micro- grid system due to challenges in sourcing a remaining compo-nent and associated effects on the shipping to the Is-land. And we can now confirm that these components
have been sourced and are being shipped to Bermuda.
The tentative arrival date of the shipment is March
2024.
Mr. Chairman, I can confirm that in addition to
the various materials being placed on the back order
and impacting the completion of this project, costs have
risen for certain items. The rise in cost is not unique to
the project and is centred around factors that have impacted on the global cost of building supplies. A


Bermuda House of Assembly sustained global rise in the cost of certain materials coincides with the commencement of this project.
On a positive note, Mr. Chairman, the lighting
programme, which is part of the renewable energy project, has been completed. The National Sports Centre has successfully replaced and reset all light poles at the
stadium with cost -efficient LED lights. Addit ionally, I am
pleased to report that the one part of the power grid that
operates in the north field of the pavilion and its storage
building is now operational.
Mr. Chairman, the remaining budget for this
Sports Facility Management programme is 30060, Operating Expenses, which will provide the unit with materials, tools and supplies to operate efficiently.
Mr. Chairman, business unit 30075, the WMC
Preece Softball Park, is allocated $143,240. This allocation reflects the wage for two industrial staff and funding to maintain and operate the softball park.
Mr. Chairman, business unit 30080, W. E. R.
Joell Tennis Stadium, is allocated $446,4 61, an increase of $24,984 , or 6 per cent [ over the 2023/24
budget ]. This business unit provides funding for salaries and wages totalling $3 50,072. The residual funds
will be used to maintain and operate the facility that houses six tennis courts and eight pickleball courts .
Mr. Chairman , business unit 30090, the [Bermuda] Motorsport Park is allocated $8,000. There is no change in [the allocation for] this business unit from 2023/24. The funds are used for insurance, maintenance and water at the Motorsport Park.
Mr. Chairman, business unit 30390, Sports
Community Fields , is allocated $47,000. There is no
change from 2023/24. The funds for this business unit
are allocated for the maintenance and operation of the community fields under the department ’s remit.

Programme 2007, Camping

Mr. Chairman , the budget
allocation for the department ’s Camping Programme is
$971 ,369, an increase of $30,988. This increase represents the salary uplift. Business unit 30150, [Camping
at] Darrell’s Island, has been allocated $390,226, an increase of $7,907, or 2.5 per cent. Business unit 30160,
Paget Island, has been allocated $269,676, an increase of $80,033, or 3 per cent. Business unit 30165,
Ports Island, has been allocated $109 ,400, an increase
of $1, 853, or 3 per cent. Business unit 30170, White ’s
Island, has been allocated $ 91,791, an increase of
$2,565, or 2 per cent increase. The allocated budget for
Camping provides for the staffing operations and administration and includes 10 full -time staff who maintain
the facilities and marine equipment.

Programme 2008, Recreational Programmes

Mr. Chairman , the budget
allocation for the Recreational Programmes is
$1,323, 600, an increase of $500,000. This increase aims to assist working- class parents by addressing the
wait list and alleviating the stress of finding safe and affordable summer services for their children. The department will expand availability at public summer
camps and collaborate with private camp operators to secure additional spaces. The funding will see an increase in the number of obtainable places f or students
in the Summer Day Camp programme.
Mr. Chairman, this programme supports approximately 1,700 school -age children and is provided
in various schools throughout the Island. Approximately 150 part -time workers deliver this programme, supervised by qualified educators. There is also a special
needs programme that provides care for children with
exceptionalities. The camps in programme, 2008, are
for preschool -, primary school - and middle school -age
children.

Performance Measures

Mr. Chairman, the performance measures for the Department of Sport and Recreation can be found on pages B -250 to B-252. For
business unit 30030, Athletic Awards, 17 junior athletes
and six NSGBs received awards . An average of $2,939
was awarded to each participant. This year saw Nicholas Pilgrim become the second recipient of the Flora Duffy Award and was awarded $10,000 toward his pursuit of excellence in the sport of Triathlon.
Mr. Chairman , the department requires all National Sport s Governing Bodies to be certified. To date,
25 are registered with the department. Eighteen of the
registered National Sports Governing Bodies have received funds to assist with the development of their
sports which include junior programmes , coaching and
administrative development , and high- level performances .
Mr. Chairman , business unit 30075, WMC
Preece Softball Park , we exceeded our target of 220
persons . This increase is directly attributed to the recent revamp and overhaul of the facility, making it safer and more appealing to all. We recommend the friendly
staff of the softball diamond and Softball Bermuda for
their hard work in revitalising softball as a sport of
choice in Bermuda.
Mr. Chairman, business unit 30080, the
W. E. R. Joell Tennis Stadium, the average monthly
use has increased up to 275 persons using the facility
each month. This increase was due to the installation
of new lights for the facility and the addition of four pick-leball courts.
Mr. Chairman, business unit s 30150, 30160,
30165 and 30170, Camping Facilities, continue to see a rise in the number of campers. The programme exceeded its performance target of 2,100. The camping
section received increased requests for camping facili-ties, often having some faciliti es sold out during the first
week of application. The department is very pleased to
be able to serve the country all year round by providing
740 4 March 2024 Official Hansard Report

Bermuda House of Assembly safe, fun local recreation areas, especially during the
holidays.
Mr. Chairman, business unit 30180, Recreational Programmes, there was an increase in the camping participants from 1,600 to 1,900. This increase was due to the rise in demand for affordable, safe camps for
students. The user satisfaction rate was 87 per cent,
with 86 per cent of the users willing to use the programme again.
From the evidence of our performance
measures, Mr. Chairman, the Department of Sport and
Recreation was able to have a successful year, delivering valuable and very well -received programmes to
the community.

Year in Review

Mr. Chairman , I am
pleased to report that the year past has been exceptionally positive for Sport and Recreation. We have
consistently met and even exceeded our target goals outlined in the National Sports Policy. Our significant
achievement was the increase in funding which has enabled us to make substantial investments in our athletes and teams. Through the Elite Athlete funding, we have awarded over $90,000 to 16 student athletes and
an additional $20,000 to three teams. This di rect support has provided invaluable resources to our elite athletes and teams, empowering them to pursue excellence in their respective sport.
Mr. Chairman, these investments not only recognise the dedication and talent of our athletes, but
also reflect our commitment to nurturing sporting excellence and promoting a culture of achievement within Bermuda. By providing financial support and resources, we are equipping our athletes and teams with
tools that they can [use to] compete at the highest level on the international stage.
Mr. Chairman, this year we are proud to announce that eight athletes have been recognised and
awarded a total of $40,000 through the Outstanding
Athlete Performance Awards. This marks the largest
number of athletes. Among these exceptional athletes,
notabl e are the following:
• Jessica Lewis, remarkable Gold Medal performance in the Parapan Games;
• Madelyn Moore, impressive Silver Medal at the
CAC Games; and
• Conor White’s outstanding achievements of
medalling in both the Pan Am [Pan American]
Games and CAC [ Central American and Caribbean] Games.
These athletes have not only demonstrated exceptional skill and dedication, but also brought immense pride to our nation through their extended performances on the international stage. Achievements
well served as a shining example of the remarkable talent and potential of the Bermuda sporting community. Mr. Chairman, furthermore, this success underscores the importance of the effectiveness of investing in our athletes. It exemplifies the tangible return on
investment, highlighting the impact of supporting and
nurturing talent within our sporting community to prepare for international competition, which can be extremely expensive.
In recognition of this, funding was allocated to
ensure that National Sports Governing Bodies have
free access to government facilities. Mr. Chairman, the
department met with the National Sports Centre’s team and created a term of [use] agreement to allow National
Sports Governing Bodies two months of free access
before recognised international events. The National
Sports Governing Bodies of sanshou, triathlon, athletics, rugby, football, cricket and hockey all took ad-vantage of this initiative and benefited from having this availability they would have not been able to afford.
In October 2023, Mr. Chairman, Mr. Owen K.
Darrell, Senator Owen K. Darrell, the Minister, joined Kimale Evans, President of the Bermuda Netball Association, and Tahkeisha Welch, Secretary of the Bermuda Netball Association, to re- open the Bernard Park
Netball Courts after the closure for over nine months.
This decision —

It is 12:35.
Deputy, take us to lunch, please.

Hon. Walter H. Roban: Mr. Chairman, I do move that
we adjourn for lunch until 2:05.

[Inaudible interjections]

Hon. Walter H. Roban: Well, we have lost a few
minutes. I do not want to deny Members their lunch. So
2:05 pm.
Thank you very much, Mr. Chairman.

Proceedings in Committee suspended at 12:35 pm

Proceedings in Committee resumed at 2:0 5 pm
[Mr. Christopher Famous, Chairman]

COMMITTEE OF SUPPLY



Bermuda House of Assembly ESTIMATES OF REVENUE AND EXPENDITURE
FOR THE YEAR 2024/25

MINISTRY OF TOURISM, CULTURE
AND SPORT

HEAD 20 —SPORT AND RECREATION

[Continuation thereof]

Thank you, Mr. Chairman.
Mr. Chairman, as I conclude, let me go to the
W. E. R. Joell Tennis Stadium upgrade and maintenance plan, which was initiated for health and safety
reasons due to increased use at the stadium. Tennis
courts 1 to 3 were resurfaced, as the surfaces had ex-ceeded their lifespan, closing games with the players.
Additional lights were installed on these tennis courts
to enhance visibility. Furthermore, new lights were
added to courts 4 and 5, enabling both tennis and pickleball to be played at night as these courts previously
lacked lighting and relied on daylight for play. The practice wall area was repurposed into pickleball courts, transforming these low -usage areas into one of high
demand.
Mr. Chairman, the Department of Sport and
Recreation remains committed to pursuing and achiev-ing the target goals outlined in the National Sports Policy. We are guided by the principle that Sport Matters. As we look forward to the next budget cycle, we are
excited about the future of sports.
Mr. Chairman, I would like to express my heartfelt gratitude to all of the dedicated staff of the Department of Sport and Recreation for their tireless efforts in
advancing amateur sport and recreation for all residents in Bermuda. Their commitment and passion con-tribute significantly to enhancing the quality of life for
our community. Additionally, I want to acknowledge the
remarkable contribution of our sportsmen and sports-women. Their dedication, perseverance and achievements serve as a source of inspir ation for others, motivating individuals of all ages to pursue their true potential and strive to excellence in their chosen endeavours.
Mr. Chairman, together through the collective
efforts of the department staff, the National Sports Gov-erning Bodies, athlete stakeholders and most importantly the supporters, we will continue to forge a culture of health, wellness and sportsmanship in Bermuda. I am deeply appreciative for their ongoing commitment and commendable contributions to our community. Mr. Chairman, this concludes the presentation
for the fiscal year 2024/25 budgetary allocations for Head 22, Department of Sport and Recreation, and
concludes the presentation under these heads of the
Ministry of Tourism, Culture and Sport.
Thank you, Mr. Chairman.

Thank you very much, Mr.
Chairman. And good afternoon to colleagues and to the public.
Just as sort of housekeeping, I would like to
say that because the Ministry has been moved and consolidated with Culture and Sport, still being Shadow of Tourism, I will just lead off with the tourism aspect
here and allow the more substantive Shadow Minis ter
for Sport and Culture to follow up. So that is why I am leading off here.
Let me first say to the Tourism team, thank you
so much to Tracy Berkeley and to her whole team on the fantastic work that they have been doing. I have in
the past talked about the speed of things, and they
have been diligently at work. I remember when Tracy
took over, some controversy there. But I must say I am
glad that she is there.
I will get into my question period as we look
over to page B -242 and through to B -246. Mr. Chairman, it was a bit difficult at first to follow because Tourism has not been highlighted in this way in the Budget
Book for the last two years. So when I was looking at
Headquarters, it was a bit confusing at first. Because in
those numbers are also included Culture and Sport. But yet when you look at the employee numbers, I am going
to be asking some questions about that because I am
still not quite sure how the separation is under Headquarters and how it includes Tourism.
I will go over first of all to page B -243, Mr.
Chairman, under the Department Objectives, and you will see right there the two highlighted objectives really
pertain to Culture and Sport. However, Tourism falls
under that. So I was just curious as to exactl y then what
is the Minister’s role? And what are the objectives that would fit under here that would apply to the Ministry of Tourism in and of itself? Being that we do have Culture
and Sport represented, I am sure that there must be
some department object ives that would have been outlined under Tourism as well. So hopefully, the [Junior]
Minister can outline those and the role that he plays in
conjunction with or in correlation to Tourism itself as an Authority.
So if I were to lead off from there, there were
two main highlights that I heard from the Junior
742 4 March 2024 Official Hansard Report

Bermuda House of Assembly Minister, but two things did stand out of importance. If
we look at what the Premier said in his Statement, he
said that [the grant to the Tourism Authority] “ has been
reduced and funding has been redirected towards in-creased funding in other priority areas .” That was on
page 23 of his general Budget Statement. And then
when I look at the numbers for Tourism, I also recognise that, since the 2020/21 budget for Tourism, it has
declined now to a grant of $16,540,000, which you will
find over in page C -20, whi ch is a whopping $6 million
less of a grant.
And so I was wondering whether or not the
Junior Minister felt that this was ample in order for Tour-ism to get us to where we need to be. Understanding
the numbers here, I also recognise that our cousins
down to the south are outpacing us when it comes to
their contributions to Tourism. But in fact, we are declining more and more and more. So the question in
there is, for the Junior Minister, as a board member of
the Tourism Authority, does he believe that this decline
of $16 million is adequate enough for the Ministry to
really do its job to get us back on our feet?
Mr. Chairman, you have seen already —Sorry?
[Inaudible interjections]

Yes, yes, yes, yes, yes.
So just to be clear for the Junior Minister, if he
turns over to page C -20, he will see at the very top
there, Tourism Authority Grant is programme 6835. It is
$16,540,000. And my question to him, as a Tourism
Board member, does he believe that this is ade quate
enough for us to get back to pre- pandemic numbers?
Now, we did hear cruise ships got back to prepandemic numbers. They are in fact doing fine. But air arrivals are still lagging, and we will get to that part as well. So does he believe? I mean, he is the Junior Tourism Minister.
I think the other question would be, to me,
Does he think that that is a bit of a conflict of interest? Because he is not only the Junior Tourism Minister, but
he is also on the board. So when there is a conflict, who is he speaking on behalf of? Is it the Tourism [Authority]
board? Or it the Tourism [Ministry]? So if he could answer that.
Now, the other thing is, Does the Minister believe that this is a setback for the Tourism Authority of
this less -$6 million grant?
One of the other questions I have is with the
fees. I believe that they have increased their fees, especially because they have got so many more cruise ship passengers. But when you look at air arrivals, the
uptick when you look at the other quarters of the past
years, the uptick seems to be about a 25 per cent uptick, which is good. I mean, we are getting somewhere. It is pointing in the right direction. My concern is that
with the fees that they have gained, the new fees that
they have gained, can they compare the new fees that
they gained from this past year, and can they tell us
what they anticipate for the new fees coming up for this
new fiscal budget year? What is the difference?
If I do some quick calculation, the Tourism Authority is still not going to be in a position that I believe
. . . having talked to the Authority a couple of years ago
and coming forward they are still struggling when it
comes to financing to be able to do what they want to
do.
The next question that I have in mind, on page
B-244, this is under Headquarters, of course. But the
employee numbers at the very bottom. Because this is
under Headquarters, I am assuming that the 12 has to
do with Tourism. Just Tourism alone? Because this is
under Headquarters. And typically under Headquarters it will be a total value for all of them, Tourism, Culture
and Sport. But if you could answer me whether or not
that is the actual case that the 12 on page B -244 actually is solely for Tourism. I kno w that unit number 81065
certainly would be, because it is under regulatory and policy. And we heard a little from the Junior Minister
about that. But I am still not sure about administration.
I thought that the Tourism Authority had more
numbers, far more employees than the eight for admin-istration and four who handle the regulatory policy. Can
you clarify that for me? What are the total numbers for the Tourism Authority, and how does that refl ect with
these numbers that I see on page B -244?
I am going to flip back to page B -242 and at the
very top, current expenditure, Head 71, Ministry of
Tourism, Culture and Sport Headquarters. The Junior
Minister actually did outline the $19 million that you see
in the 2024/25 estimate. But what I was not really clear
about was . . . I know that we were coming out of
COVID -19. The 2022/23 number is $990,000. And because this includes Culture and Sport, is that $990,000
just Culture and Sport? Or is it Tourism including Culture and Sport? Because if you look at the original numbers for 2023/24 and the revised amount of 2022/23, it
is $1 million. And now we are at $19 million in the current estimate for 2024/25. So if they could explain that
disparity, it would help clear up some of the confusion that I was having with this here.
In Head 71 under Revenue, I missed the explanation here for Revenue, 438. Did that have to do with
the after -school programme? I just was not quite sure
when he was reading through. But there is an allocation
under the 2024/25. The only thing that I know t hat is
new is the after -school fees. So I am assuming that that
is the case here and that it actually does not have anything to do with Tourism, but actually has to do with
Culture and Sport. So here you can see what I am


Bermuda House of Assembly trying to highlight. It was difficult to pull the numbers out
as to what was Tourism and what was Culture and
Sport.
It was aptly said that this is an Olympic year,
Mr. Chairman. This summer we will be having the Olympics. And I was curious as to whether or not Tourism will be participating in this year’s Olympics. It is a
great opportunity. The Junior Minister said that the
Tourism Authority was concentrating on premium and luxury customers to Bermuda in his speech to us this
afternoon. So I am curious as to whether or not they will likely be attending, because it is a great opportunity
there, combining sports and touris m together, which we
have seen has been successful here in Bermuda. And
will the Minister also be attending? Are they getting
plans? I mean, that is not going to be too far from now.
Are they planning on a team attending the actual Olym-pics of itself?
If we go over to page B -243, and I am going
back and forth because I was trying to follow the Junior Minister. Forgive me if I have to go back and forth be-cause I am following the trend that he has taken. So it
may be a bit confusing going back and forth h ere.
I want to go over to page B -243. And we are
still talking about the Tourism Authority and a lot of what
the Junior Minister had to say there. Now, I recognise
that under [programme] 7101, General Administration,
there is an allocation there of $18 million. And again
that goes back to the question that I asked earlier about
(on page B -242) that $990,000 for the actual of 2023. If
we can get some correlation between that, the 2023/24
original, we know nothing changed in t he revised
amount, and I recognise that the grant has been put into here, but that does not substantiate the whole amount of the $18.659 million. Can they separate out
what that difference is, Mr. Chairman?
So when you are talking about Tourism, immediately what comes to mind is that it is the second pillar
of the economy here in Bermuda, which is why I was a
bit concerned —and hopefully the Junior Minister will allay those concerns —that we were cutting back on the
Tourism Authority’s grant. You know, my question is really, With all of what [the Junior Minister] had to say,
what are we actually doing different locally here? I know that they are flying away. But when you talk about entertainment, we still do not even have a nightclub here
in Bermuda that you can go to and have a little dance
and whatever the case. I think the most popular place
right now is the Pickled Onion.

[Laughter]

You know, on the weekend
that place is packed because they have live entertainment, per se. But we still do not . . . What are we doing
about that? I mean, we have a whole tourism product
here, beautiful beaches. But what are we doing in the
entertainment area as far as looking at what we can do
when people get here? There is nowhere to go. Not too many people are going to the beach at night, Mr. Chairman, especially when some of the beaches, you cannot
even get a drink of water, right? So what are they doing
as far as the local entertainment is concerned to help
bolster that? Certainly entertainment took a hit during COVID -19. So we have had a couple of years now. And
we still do not have a nightclub here. What are we doing
about ent ertainment?
And I certainly do not mean entertainment in
relation to the kind of entertainment that we thought
was going to work for us, like Savvy, and we wound up losing money. I am just curious as to what we are doing
when it comes to entertainment? What exactly are we
doing? Because we are hurting right now. Right? We
spent some time investing that money, and we did not
get anything in return. So that did not seem to be a
highlight for Bermuda.
Also, next question, still on page B -243, trying
to understand some of what we are doing in Tourism.
Just curious, where are we with Elbow Beach? You
know, it has taken a little while to get Southampton,
South P, up and going. Where are we with Elbow
Beac h? Is it in receivership? Is someone managing it
until we find a buyer? There was no real mention about
that. And what is Tourism doing in relationship with
these hotels in assisting in getting them back up and
going? As the Junior Minister aptly said, We need more
beds. And in order to get more beds, we have got to get
that investment here. South P is taking too long, quite
frankly. So we have got Elbow Beach. We have got
Bermudiana Beach Resort. We will get to that when we
start talking about grants as well. Where are we heading in this next year with that?
Also, looking at the age demographic, as the
Junior Minister was talking about going after premium
and luxury customers, I looked at the stats, and he did
say go to the website today. So I just went to the website, and I looked at the stats there. The dem ographic
coming, Mr. Chairman, to Bermuda is old. Like the ones
who are flying here, not on cruise ships, that is all mixed
up. But the actual air travel? Man, those dudes are
older than me. And I am 60!
[Laughter]

So, what are we doing to attract the younger demographic to come here? The new
world has millionaires and billionaires who are in their
20s and 30s. What are we doing to attract that demo-graphic? Those numbers are low if you look at them in
the air arrival s. And we have got to figure out what to
do. We can get them certainly. So we need to know
what the plan is. What is the plan to increase that demographic? Who is more likely to spend more money?
But you look at the 55 and over, that is where we are
thriving. They are flying here. But we need to get the
younger people. Can the Minister tell us exactly how
the Tourism Authority, with these numbers it has, is trying to target, actually target that demographic? Maybe
744 4 March 2024 Official Hansard Report

Bermuda House of Assembly we need ziplines or something; I do not know. Skydiving, something adventurous. I do not know. But it is not
working right now with the numbers that we do have.
Also, under programme 7101 on page B -243,
if I look at the unit number 81065, Regulatory and Pol-icy, and the Junior Minister mentioned it was compliance. So I guess what I was trying to understand a little
better is that process. So how does that process w ork?
When they go out and they grant these licences, what does that process look like? Do they call and say, Listen. As of this date, we’re coming to do compliance checks (or whatever the case may be) to ensure that
licences are kept up? And additionally, we recognise
that the numbers that we are seeing from the Authority,
Airbnbs are decreasing. So do they have an idea of why
people are pulling out? You know, I do not know. I do
not want to guess here. I have thoughts, but I will keep them to myself. But w hy are they pulling out? Because
this is right now putting a stress on the hotel beds that
we do have.
The Junior Minister said that there were 43 hotels, 2,541 units, and that accounted for 6,222 beds. And understanding, as he said, we need more beds so
that we can get more uplift. And I want to take a second
just to thank BermudAir. (I think I am saying t hat right.)
It is not Bermuda Air, is it? It is BermudAir?

BermudAir.
Fantastic job! So I give kudos to the Government and everybody involved there. I mean, I have
flown it several times. It is a bit short for me. I have to
bend over. But it is okay! I get on, and I got a whole row to myself. So kudos to the flight and to i ts expansion,
actually. Can the Junior Minister also tell us a little more about where they plan on expanding in this upcoming year? As he mentioned BermudAir, where are they
planning to expand with this particular area?
Now also, under this unit number, I was just curious as to exactly how do we collect the occupancy
data? And are we hitting all hotels and Airbnbs? I am
not quite sure about that. But in order for us to really
understand what we are up against, it would be nice to know whether or not we are getting real good data (or
however you want to put it) from the Regulatory and
Policy unit, which I believe they said was four people
and whether or not they are able to get to all 43 of these
hotels to be able to inspect and get good occupancy
numbers? So again, process —how does it work and
are we hitting all hotels and Airbnbs?
Okay. I am going to go over to page B -244. On
page B -244, again I go back to trying to understand the
separation between Culture and Sport, and Tourism.
Now, under salaries the Junior Minister did explain that
that was a transfer for staff. I am assuming t hat this is
the regulatory body that we just spoke of. If you look at
the 2024/25 allocation of $1.2 million, which includes
the four staff that the Junior Minister mentioned, and looking at the fact that it is a $384,000 increase for the
upcoming year, is all of that $384,000 for that four staff
that he mentioned under salaries? And what else would be the difference outside of the four staff? I think he
may have mentioned salaries uplift, but I did not hear that. But as you know, Mr. Chairman, sometimes when
you are taking notes it is not always easy to get everything.
Now, Advertising and Promotion. You only see
there $8,000. And then underneath there, that seems
like an extremely low amount. I do not know that that has to do with Tourism or not. Advertising and Promotion, just $8,000? It seems extremely low. Maybe I am
missing something here, because I know that the Minister spoke about marketing and the like. But that is an
extremely low number. And what are we getting for
$8,000?
Right below that on the same page, B -244, Mr.
Chairman, Professional Services. Just curious, who are
they? Who are these professional services? And what
exactly are they doing? That is $194,000. And if you
take a look, that is quite an increase, which qui te frankly
is a good thing. Probably, most likely it is a good thing.
As I mentioned before, just as long as it is not one of
those Savvy deals, this is a good thing to have, professional services of $194,000. Because we need to get
moving. It probably nee ds to be more because these
guys are pricey, you know? They do not make the salaries we make, Mr. Chairman. They make good money
when it comes to professional services. Who are they?
And what exactly are they doing for us?
Because again I go back to the fact that I just
think that this thing is so completely underfunded, the Tourism Authority, if we are to really compete. We are
competing with our cousins, Cousin Chairman. We are
literally competing. And we have got to catc h up, man.
We have got to catch up. So, you know, if we can inject
another $10 million in there, I think that the Authority
would be happy and maybe we could get something
done. The Minister would be happy because they probably will not be chasing him for money all the time,
right? So it would be good to see.
I will continue down. Grants and Contributions,
well, we know that $16- plus million constitutes that.
Again, I am not sure . . . And I am sorry; I am at the very
bottom of page B -244 under the Expenditure, Grants
and Contributions. We have an amount of $17,486,000. And I know that has mostly to do with the encouragement of tourism into this particular Ministry. How much of that is for Culture and Sport, and what are we doing
with that amount if it is in fact actually for Culture and
Sport?
The other thing that was mentioned by the Junior Minister was —

Pause for a minute, Honourable Member.
For the benefit of the listening public and Honourable Members, we are now in Committee of Supply


Bermuda House of Assembly for further consideration of the Estimates of Revenue
and Expenditure for the year 2024/25. The Honourable
Member Kim Swan, Junior Minister of Tourism, Culture and Sport gave his brief. And now the Honourable
Member from constituency 12, Craig Cannonier, is giving a robust amount of preambles and questions.

[Laughter]

Yes. Thank you very much.
The Minister also, with his speech and preamble (whatever you want to call what he said) . . . I want
to ask questions on some of that as well as to what he was saying. But if you go over to page B -245, and I was
looking over the performance measures, I did not really
have much of a question. B ut when you go down to
business unit 81065, Regulatory and Policy, the fifth
one down, it says “Vacation rental properties inspected
and licensed by the annual deadline of 31 August.”
Just curious as to this last August past, for the
budget year gone past, what challenges did they find while they were out there with the regulatory and policy schedules, and what they were doing? What exactly did
they find? And with those findings, the s econd question
to that would be, Then how and what are we going to
do for this upcoming budget period for 31 August, which
is not too far around the corner? Exactly how are we
managing that? You know, I understand there are some rumblings . . . within the Airbnbs and fees. So just
curious as to what they learned from August 31, and
how are they adjusting to be even more efficient?
And these are new categories within this area,
Mr. Chairman. So I understand that this is the first time that we have actually had this kind of robust (as you
said) preamble and questions for Tourism because it
has not been in the book for the last two, t hree years.
The Junior Minister mentioned about the USA
Track and Field [TF] Grand Prix when he was speaking to us. So I wanted to find out a little more about big
events. (Give me a second. I want to just go over to . . .)
Now, this would obviously fall under page B -242 under
Head 71, Ministry of Tourism, and the grant that has been given and the past monies in the last years. But
with these big events, the Minister mentioned the USA TF. And I know it was a success. My gra ndkids were all
wanting to go out and see these athletes.
Are there any other big events coming up that
we can look forward to? We certainly had a good spell
with $100 million investment into America’s Cup and a
return of $300 million to the economy. We have seen Flora Duffy when we had the Triathlon—

[Inaudible interjection] Mr. L. Craig Cannonier: World Traveller come to Bermuda. Huge success for Bermudians and visitors.

[Inaudible interjections]

PGA. I was going to talk about
the golf as well, right. The LGP, the PGA, all of these
are big events. What is the next big event that we are
looking at? And have they considered potentially . . . I
mean, Bermudians, men and women here in Bermuda are big—Spanish, German, Berkeley’s league—football fans. Maybe that is something that we want to entertain. If we are looking at luxury customers who are
looking for a more refined destination, are we looking
at something like that?
[Inaudible interjection]

Are we looking at something
like investing some money so that we can get these
people of high net worth here for a week, just a week? It would be millions that we probably would garner from
such type of event. I know he said go to the website,
but not ever ybody is going to go to the Tourism Authority’s website. So can the Junior Minister give us an idea
of any big events outside of the ones that we just
named that are coming to Bermuda? And have they considered something like a football —

Mr. Chairman, just curious
about that. And also, for big events have we considered
professional women’s sports? I mean, that is a big thing
right now. Down in the islands they do the NBA pre -
game. Maybe we can get the women here to do some
of their pre- games here in Bermuda. I do not know. But
I know women’s sport and professional sports are tak-ing off like wildfire, you know. Maybe that could happen.
I do not know. But we certainly have the infrastructure
for it. We have the infrast ructure to handle it. So maybe
we could entertain that.
I am going to go over to page C -20. Understanding that under the Ministry of Tourism and Culture we are looking at grants and contributions, programme
6835 for the Authority. We recognise that. And quite
746 4 March 2024 Official Hansard Report

Bermuda House of Assembly frankly, we have got two board members here who happen to be MPs. I would suggest that they talk to the
Minister of Tourism, Culture and Sport. This is not
enough! Period!
What is the programme number here, 6869,
Grants to External Bodies? If you look at the numbers
here, we actually in 2022/23 spent $124,000. I am not
sure what that pertains to, whether that was Cup Match
advertising or something like that. Well, Cup Match is
down below. But maybe they used that. But maybe they used that, I do not know. But it is woefully low in the estimates for 2023/24 of $10,000. The revised amount
is $5,000. So, I am sure this time around they are not
waiting for any more receipts. But we are now estimating $8,000. It does not make any sense. So I am just
trying to get some clarity and hopefully we can find a bit
more consistency unless the $5,000 and $8,000 is go-ing to be the new consistency in this area. What exactly
was this to do wit h . . . to external bodies?
Now, that may not have to do with Tourism. I
do not know, the way it is kind of convoluting here. I do
not know if it has to do with Tourism or not, quite
frankly. But if I go down further to page C -20, Grants
and Contributions, programme 7099, Culture and Entertainment Support. Now, Culture and Entertainment Support is at $840,000. Does that have anything to do
with Tourism at all? Understanding that we are intertwining this stuff, culture and sport and tourism, which is a good match. But does this have anything to do
with—the $840,000, with Tourism in and of itself?
On page C -14 under Capital Acquisitions,
there is not really much here. But I assume the $90,000
is probably to fix a few things under business unit
76802 for the Joell Tennis Stadium. I am assuming that that has nothing to do necessarily with Tourism. But do
we have also any big tennis events coming up? Maybe we can get some celebrities here for tourism and enter-tain them at our stadium? Maybe that is what the improvement is for. Maybe we can get clarification as far
as that is concerned?
Now, I want to go back over to some of the
comments that were made by the Junior Minister if I
could. The Junior Minister mentioned the BTA [Bermuda Tourism Authority] plus. And I was not quite sure if that had to do with . . . (where is it now? It is another
head he mentioned. Let me see if I can find it here.)
[Pause]

Yes. Over on page C -7 under
Tourism Maker Spaces for Creatives for the Ministry of
Tourism, Culture and Sport. I was not quite sure if that
is what he was talking about when he said the BTA -
plus, that this was part of a programme that fitted under
business unit number 75368 on page C -7, Maker
Spaces for Creatives?
I did hear some of what he was saying, but then
when he mentioned the BTA -plus, this is about local investment and getting money and creative ideas. Is this part and parcel of the same thing, the Maker Spaces for creatives? Because he did mention about poets and
that kind of thing. And I am sure that that would probably fit under there. But this $500,000, which is a healthy
amount, what exactly is it doing for $500,000 in that
particular area? And does it pertain to the BTA -plus
programme?
Also, with the BTA -plus programme, if the Junior Minister could tell us what their process is so that
. . . you know, the challenge as politicians is that we say
something. And you go out and invariably, Mr. Chairman, people say, I didn’t hear that. You say it again the
following week, and people say, Well, I didn’t hear that.
So what is the process here when it comes to the Tour-ism Authority with the BTA -plus and with these Maker
Spaces for creatives? And how can people hear about it now? Because we do have a captive audience during the budget time. People probably listen more at this
time than any other time. What is the process? How
does it exactly work? And if we can start talking about
maybe getting a nightclub or two together under that
area, it would be very helpful, I am sure.
(Sorry, Mr. Chairman. I am just going through
my notes here.)
The Junior Minister also mentioned the Bermuda Tourism Authority, exactly what it is doing is just
making it sustainable. And we understand that it was designed to pay for itself. We are not at that point as
yet. And he mentioned laying foundational things. If the
Junior Minister could go back into some more detail
about some of those foundational things that the Tourism Authority has found are working well, and areas
that we are missing like entertainment, and what ex-actly are we doing to fill that gap?
And when it comes to the Tourism Authority,
we also understand that the Bermudiana Beach Resort
will be up by the end of this year, which will be an excellent thing, especially since it is taking so long to get
South P and somebody interested in Elbow Beach. Is
the end of this year a realistic time frame according to
the Tourism Authority? Because I know that they are
speaking to those guys on a regular basis. Do they believe that by the end of this year it will be up a nd running
with all of the contracts that have to be done?
And I must indulge the Junior Minister as he
was going through on page B -242. We were talking
about fees and the likes. And under the Head 71, the
Minister also spoke of fees and sales and marketing
and the likes, operating costs at 7.02, sales at $12 mil-lion. Can the Minister tell the public, what exactly does
sales look like? Like, what exactly is that? Is that advertising? What does it actually involve? Because they are
going throughout the European market and the likes.
Can they explain a little more? And can he give that
allocation again? Because I did not get quite all of the
numbers, which are not on page B -242. But he was
breaking down the total numbers in the estimate. If he could just give that one more time so the public would
understand exactly what we are spending there.


Bermuda House of Assembly The Junior Minister also mentioned driving revenues through . . . and if you take a look at the revenues here under Tourism Authority, I think this may be
just a glitch, quite frankly. Maybe we will change it next
budget period. But you have got $438,000 here. But he did mention about revenues. What are some of those
other ticket items that they believe will continue to
drive? We have got the Staples PGA and the likes, and
the USATF , travel lawns and the like. But outside of
cruise ships in and of itself . . . I mean, if we bring more
cruise ships here, we are not going to have too many places for them to anchor. Getting new air arrivals up,
how do they plan on driving the idea of business and
sports through travel? . . .
(I asked that question already.)

[Pause]

I think, Mr. Chairman, that
may be my part. Now, let me just make sure I did not
miss any questions.
Ah. I am hoping that we will get the objectives.
When it comes to tourism outside of . . . are we looking
at any other areas outside of the European market and the US market? Because when I do look at the figures from the Tourism Authority, we have got a large number of people coming here, flying here from Canada, which is probably a good market for us to look at. And since we seem to be having quite a few of our Ministers
travelling to the East, Dubai and Abu Dhabi, are we
looking at attracting them as well?
I know that when we were Government, one of
the things they said that they were looking for was just natural beauty. Because they have to build the beauty that we have naturally. Are we seeking to go out to the
Eastern Arabic countries to get them here to fly to Ber-muda as opposed to other destinations? I think we have got enough Ministers now who can speak well to Abu
Dhabi and Dubai whether or not we will be targeting
that market as well.
With that in mind, it looks like those are all of
my . . . that is it. That is it, Chairman, for the Tourism
part. Thank you very much. We will see. We will see. We will see.

For the benefit of the listening public,
we are now in Committee of Supply for further consideration of the Estimates of Revenue and Expenditure
for the year 2024/25.
Honourable Craig Cannonier, from C -12, has
finished his preambles, post -ambles and questions.
And now the Chair recognises the Honourable
Ben Smith from constituency 8, Smith’s South, the
Shadow Minister for Tourism, Sport and Culture.
You have the floor.

Thank you, Mr. Chairman, and good
afternoon. I think I will start off with what I think a lot of us
would have learned today, which is that Tourism needs
to have its own head when it comes to future budget
debates. Just because it is such an important part, second pillar of our economy. And when I l ook at the $16
million that is allocated for the BTA, I know that there
are a lot of people within Sport, Recreation and Culture
who would wish for $16 million to actually be in that portion of the budget. Really, that would show the real belief in what sp orts is and what it can mean for our country. So what has happened is by putting them side by
side, it highlights that difference.
In the same way I would say that the people
who are involved with Tourism presently would say that they would need more money than the $16 million that
is available, considering it is the second pillar of the
economy. And really, when you are looking at w hat they
are trying to do is revitalise an industry, we need to get
our young people attracted to tourism again. We need
to get our country to realise that tourism is important.
Tourism built most of the homes in this country. A lot of
people would have found a way to educate their children through tourism. So that is a big task that has to
happen. And yes, the goal would be for the Tourism
Authority to at some point be able to finance itself, but
considering we have major hotels that are not online at
the moment, we have to supplement them until they are
able to reach that stage.
So, Mr. Chairman, I am going to ask a couple
of questions under Head 71 for the cross -over from
Tourism, just wondering if the Tourism Authority has had some engagement and found out whether there is
interest in having small cruise boats dock in Hamilton and in St. George’s. I know it has been something that
has been discussed for many years. But the impact of
having those boats in those areas automatically increases the level of entertainment that is happening in
both St. George’s and Hamilton. And I know that both
of those areas would be excited to know that they had consistent cruise boats which would bring tourists into
restaurants and then, as my Honourable Member mentioned, that would give the ability for somebody, for an
entrepreneur to step in and s ay that opening up a nightclub is a venture that makes sense.
From a sports tourism perspective, could the
Junior Minister provide us with all of the sports tourism
events that happened in 2023? We mostly highlight the
big-number events, so the big- ticket items. But I would
know that there would be other sports tour ism events
that would have been attracted by conversations with the Tourism Authority. I think it would be important for
us to highlight that and to highlight the cost of attracting
those kinds of events into Bermuda so that we can see
that those green shoots that are created by bringing
sporting events to Bermuda show the value for money.
Following on, continuing with that connection
between sports and tourism events, I know that the
Government is keen to connect the dots between
sports and tourism. That is why they have been put
748 4 March 2024 Official Hansard Report

Bermuda House of Assembly together this way. Is there an incentive programme being put in place to engage with National Sports Governing Bodies for them to create sporting events that would
potentially bring in what I would consider more of the
age group traveller? Because an age group traveller is going to bring their parents along with them. That becomes a real tourism product. Because now in the future, potentially they come back for a non- sporting
event, and those children who would have come here as youngsters would then want t o return maybe when
they graduated from university and on their anniversaries and honeymoons.
Because that is what would have happened in
the past when we had college weeks and Bermuda was
booming in that side of the industry. This is a great opportunity for us to connect those two pieces together,
and it would be great if there was an incentive for Na-tional Sports Governing Bodies to create that kind of
event and to attract young people and their parents to
come to Bermuda.
My honourable colleague would have mentioned the specific point when it comes to the growth in women’s sports specifically. You would note that we
have a Women in Sports Expo. There are quite a few
major stars from Bermuda who sit on that committee who have been working hard to grow women’s sport in
Bermuda. But worldwide you are seeing that attention
to women’s sport. Can the Junior Minister let us know whether there is a specific initiative to bring in women’s
sporting events at the international level, and even from
a local level bringing in teams that are going to encour-age our young women to get involved with sport?
But really what you want to know is that a lot of
times women are the ones who determine who is going to go on vacation and where they are going to go to. So
when you target the women and what they might be interested in, that is a win -win for us. And obvi ously
from a sporting perspective, I think it would be an exciting attraction for our young people.
So, Mr. Chairman, I am just going to touch on
one thing under Head 71 that comes for the non- tourism sector. And it is from page C -20. Programme 7099,
Cup Match Grant, which I know our Chairman would be
really excited to talk about, Cup Match being the hi ghlight for most people in the country. If the Junior Minister can just give us an idea of what the grant is used for
each year? Obviously we support it as a major event.
But it would be great for us to have an understanding
of what the grant is used for, considering that last year
was budgeted, the estimate was for $45,000 and the revised was $70,000. And this year the budget for it is
$50,000. So if the Junior Minister can explain to us exactly what that grant is used for, I think it would be helpful for everybody who are big fans of the annual Classic.
Mr. Chairman, I am going to now move to Head
20, Sport and Recreation, page B -247. I am going to
start under programme 2003, Sports Incentives and
Awards. I believe the Junior Minister started to explain it, but there was a significant difference from what was
originally budgeted to what we ended up spending. And
I believe that this was so that we could support some of
the major highlighted awards that happened because
we had athletes who really surpassed what normally would be a great year for Bermuda —this was an outstanding year with the number of medals at major
games. So if that was the support that was given to
those athletes, which would be an incentive for them,
do we have an idea whether we would be looking to
progress that kind of incentive on a go- forward basis,
so that we are prepared the best we can be to get our
athletes to be incentivised to reach the highest heights?
So now under business unit 30065, Sports Investments, this would be the investment programme that goes out to all of the National Sports Governing
Bodies. It is a change that has happened in the last couple of years, because it was more of a grant and
now it is sports investment, which I think has been a
really good progress by the Government to engage with
sports about investing in young people and how we can
progress them. My question is, How many sports were
provided sports investments in 2023/24? And how
many sports have requested funding for 2024/25? And
then, have the participating sports requested less
money for the upcoming year compared to 2023/24? Or
has it been more money?
The reason I ask that question is because . . .
and I have said this in the past, and I will continue to
say it. There is a certain amount of money that is provided to sports, but it actually does not match the
amount of money that is requested for sports . And it is
important that we start to highlight what is actually necessary as opposed to the amount of money that is
given. I go back to what I said in the beginning, where
$16 million looks more like the number that sports
would actually want to see invested. The amount has
improved, but it has been successive Governments
that have not been able to provide the actual number of
investment in sports that would really see the difference
that I think that everybody would want to see, the support from our country for what the expectation is for our
sports results.
So under programme 2004, Sports Facilities,
can the Junior Minister please provide a breakdown of what facilities received the $1,312,000 in 2023/24? And
what was provided using the money? So what is important from my standpoint is that we say that there is
an overall amount of money that we are giving toward facilities, but we need to have a breakdown of how that
money is being used from one year to the next so that
we know whether (1) it is enough money; or (2) it is being used in a way that is actually going to move that facility forward, which will attract more athletes to utilise
the facilities.
Business unit 30075, the softball park. Is the
NSGB [National Sports Governing Body] for softball responsible for the softball park? That is just one question
just to see if there is a connection between a softball


Bermuda House of Assembly NSGB and the actual park that is being utilised. And do
they have to rent the park? Or is there a specific kind
of grant that allows them to utilise it without having that
extra cost? I bring that up because one of the major
factors now for cost of sport i s the cost of facilities. So
the National Sports Centre as an example is working to
try to reduce the costs when it comes to the solar project. But there are multiple sports that are using facilities where the cost has continued to increase.
There is less money that is available from what
I would call our community donors who have been able to support Bermuda and our Bermuda sports significantly over several years. But because there are so
many needs in our community, including food and
clothing and other essentials, sometimes the sport
number is now starting to go down, when for me personally I am going to tell you, Mr. Chairman, that sports could have a significant impact on our community. It
can have a significant positive impact on our youn g
people. We can see changes in educational results. We
can see changes in the number of people who are deal-ing with drugs and alcohol. We can see changes in the
social behaviour of our young people.
For that reason, the investment in sport is a significant one that can change multiple things quickly.
And we will actually have the ability to reduce the cost
that we are putting in areas of reform because we are
putting it in the preventive side. The same way we want prevention from a health perspective, sport is a perfect
connection for that. You have the opportunity to have
our young people start off in a physically active lifestyle which hopefully will continue on throughout their life.
That helps us overall as a country from our health perspective which then could lower costs in other areas.
Mr. Chairman, there has been some conversation about the tennis stadium and the upgrades that have happened to the facility. I am just looking at the fact that there have been the changes including adding
pickleball courts. I have asked this question befor e. It
was my understanding that there was the need for a
couple of extra tennis courts which would allow them to
have international competitions at the tennis stadium.
Considering that we did not add the extra court, but we
have changed to pickleball, do w e see that we will now
be able to attract maybe international pickleball, which
will be an offset? Is it possible for us to know what the
projected increase . . . because when you look at the
measures it looks like the number is not going to move
much for how many people we are going to bring into
the tennis stadium. So the investment does not seem
to match what our target goal is —to bring people to the
tennis stadium.
Mr. Chairman, those comments are really because I want to see the growth in tennis. I want to see
more people using that facility. And I believe that this is
the goal that the Minister has had and the administra-tion has had, why they wanted to make those i mprovements. But what we want to know is, is there a plan for the next step of how we can attract more people into
that sport and more people to use that facility?
So, Mr. Chairman, on pages C -23 and 24, you
have the Grants and Contributions for 2022/23. Can the
Minister please provide a breakdown of the grants and contributions for 2023/24? Because this is the year
prior. If we could be provided with the actual cont ributions and grants that would have happened last year?
So, Mr. Chairman, there is always a point that
is brought up when it comes to BSADA [Bermuda
Sports Anti -Doping Authority] and the grant that is
given to BSADA. I am going to be very specific here. I
believe that this is a number that we automatically have
to pay. It is the entry into international sport. So if I
move that number to the side, the grant overall for
sports should not really take that into consideration.
That is a bill that will be a bill. So what we actually look at is the number that is left behind which allows us to
actually have support for our athletes. So, Mr. Chairman, if we do this, we are able to see that $1,151,000
is the actual amount invested in sport.
So back to my beginning point, there is no way
that this number makes sense. If we understand how
important sport is, that number has to be increased. It
is the number -one subject for me because I know the
impact that sport can have on our young people. I know
that any person who is involved with sports, involved with youth development knows that they need significant support.
I want to thank everybody out there who is officiating, who is coaching, who is volunteering their time to make sure that our young people are in safe environments that are drug- free, who are helping our young
people to be developed to have a positive future. But
what we have to do is now make sure that we are supporting them in a financial way that allows them to progress that forward.
So on page B -250, Mr. Chairman, business
unit 30030, Athletic Awards. It says that there is a target
of 16. The reason I bring that up is because there is
also a target later on that says the number of NSGBs
would be 26. So what are we going to do to encourage
the 26 to be involved in getting to these athletic
awards? And the reason I bring that up is because the
number for that award needs to go up as you increase the number of sports that are participating. Because
what normally happens is —it is just a re ality—there is
a fixed number that is given, and the number is going
to be based off of a certain number of sports. If more sports are involved, more athletes are involved, what
you are doing is dividing the pie up further.
I will follow that line by the Elite Athlete programme funding. So it had a target of 10 elite athletes
for 2023/24 with a revised forecast of 23. The Elite Athlete funding programme was for $250,000. So that is
$250,000 to support the 10 athletes. So I know it does
not work this way, but let us look at it as if it were as
basic as 10 athletes, $250,000, with $25,000 per athlete. In actual fact it is going to be divided up in different
750 4 March 2024 Official Hansard Report

Bermuda House of Assembly ways because you are going to have some athletes at
a higher level, so some will get more, some will get less.
But for argument’s sake, $25,000 per athlete. But when
you actually added 13 more athletes, the $250,000
stayed the same, which then meant that t his number
was $11,000 per athlete. So you fast -forward to this
budget, where yes, there has been an increase to
$350,000, which I applaud. But when we are now talking about 25 athletes, that means it is $14,000 per athlete.
When I say that we have to do more and do
better in supporting our athletes in order for them to
reach the point of excellence, this is what I am referring
to. Yes, the $350,000 seems like a big number. But as
you encourage more people to be involved and w e
have more athletes taking from that pot, the pot gets smaller.
The same thing happens when you are talking
about the awards process for our junior athletes. It used
to be that this number was very significant because
there were fewer National Sports Governing Bodies that had organised themselves in order to apply for the
money. Now that you have multiple sports doing that
process, there is a lot less money going per athlete.
None of this is to knock on the hard- working
people in Youth and Sport. It is pointing out that they
need more help and they need more money.
Mr. Chairman, I am just going to move to page
C-20, where I want to have some discussion points on
the National Sports Centre. So the National Sports
Centre trustees receive a grant in order for them to pay for the facility. Yes, there is going to be some income
that comes from fees from rentals. But it does not sup-port the entire facility. So this grant would be for that. But, Mr. Chairman, can the Junior Minister provide us
whether there is an ongoing maintenance plan with a cost breakdown of what it will take to replace all of the
different facilities that are needed to be replaced at the
National Sports Centre?
I will point out that in last year’s budget it was
brought forward that the changing facilities that were
supposed to be temporary are significantly passed their
sell-by date. There are pieces within that floor that are
breaking down. This becomes an issue if we are not
giving the funding in order to maintain these facilities at the level that is necessary for us to continue to have a
world -class facility. Mr. Chairman, can the Junior Minister let us know whether there is a maintenance plan
costed out and w hether the money that is being provided is actually going to be enough for us to not only
maintain, but improve those facilities so that we can
continue to attract more sporting events, more athletes
into those facilities?
Mr. Chairman, could the Junior Minister please
let us know how many National Sports Governing Bodies presently are using the National Sports Centre? How many National Sports Governing Bodies are having to use part of their sport investment funding in order
to pay the fees at the National Sports Centre? The Chairman: Honourable Member, please hold for a
minute.
For the listening public, this debate— we are
now in Committee of Supply for further consideration of
the Estimates of Revenue and Expenditure for the year
2024/25. Shadow Minister Honourable Ben Smith is
asking questions. This debate is due to end at 3:40.
So you may continue. If you want answers, I
would suggest . . .

Thank you. Thank you, Mr. Chairman.
I am just going to ask a few more questions before I
take my seat.
There obviously have been a lot of questions
and conversations around the solar project at the National Sports Centre. I think it would be important for me
to ask some questions regarding that at this time.
So if the Junior Minister could let us know, does
Atlantic Energy Solutions Group have a maintenance
contract with the National Sports Centre once the solar
project is completed? If so, what is the cost of this annual maintenance contract?
It was stated that part of the solar facility had
been turned on in one section. Could the Junior Minister give us an update on the details of what that means
that part of the facility was turned on? And can the Junior Minister give us a level of energy that was pro-duced?
Does the National Sports Centre have a specific contract with BELCO for the resale of energy that is produced by this? And if so, can the Junior Minister
give us some details of that?
What is the total cost of running the entire National Sports Centre facility? So including the revenue that comes in from the National Sports Centre and the
grant, what is the total cost for running that facility?
Are there any issues with the interest payments that would have to be made by the loan that was
taken out for the solar panel project? Can the Junior
Minister give us details of whether the Government has
had to make interest payments while there has been a
delay in getting this facility up and running?
Can the Junior Minister give us details on what
the potential savings will be from a power/cost perspective? And if the Junior Minister can tell us what the monthly electricity bill was for the National Sports Centre over the last 12 months? Thank you, Mr. Chairman.

What are the Minister’s role
and the objectives of the Ministry of Tourism? The Ber-muda Tourism Authority [Act] as it states currently outlines the roles of the BTA as a sales and marketing des-tination management [organisation]. The BTA excels in
their role with sales and marketing. The Minister appoints the BTA Board and directs tourism policy but
does not oversee the operations of the BTA including their staffing. Ministry oversees the Ministry of Tourism,
Culture and Sport Headquarters, which is 12 staff including the four at the Tourism Regulatory unit under
the direction of Ms. Rhonda Woods[ -Smith].
The Tourism Regulatory unit is responsible for
the inspection of hotels, acting as a concierge between them and the Planning Department and maintaining the vacation [rentals] register. We would not include the
number of staff at the BTA in this brief, as w e do not
influence oversight.
Question on page C -20: The BTA grant applies—

I am sorry. I apologise.
The question that was asked was, What are the
Minister’s role and the objectives for the Ministry of
Tourism? The Bermuda Tourism Authority Act as it states currently outlines the roles of the BTA as a sales
and marketing destination management organisati on.
The BTA excels in their role with sales and marketing.
The Minister appoints the Bermuda Tourism Authority
Board and directs tourism policy, but does not oversee
the operations of the Bermuda Tourism Authority in-cluding their staffing. The Ministry oversees the Ministry of Tourism, Culture and Sport Headquarters, which
is twelve [staff] including the four staff of the Tourism
Regulatory unit under the direction of Ms. Rhonda
Woods -Smith. The Tourism Regulatory unit is responsible for the inspection of h otels, acting as a concierge
between them and the Planning Department and main-taining the vacation rentals register. We would not include the number of staff at the BTA in this brief, as we do not have influence oversight on the BTA operations.
That was better?
[Inaudible interjections]

Okay.
The next question was on page C -20 in the
Budget Book. The BTA grant declined to $16 million.
Does the Junior Minister believe this is ample and ade-quate for Tourism to get us back to pre- pandemic tourism numbers? Absolutely. Under the direction of the
hard-working CEO, Ms. Tracy Berkeley, and the Chairman of the Board, Mr. Wayne Caines, along with board members Mr. Best, Ms. Blaser, Mr. Bushara, Ms. Phillips, Mr. Simmons, myself and Ms. Turini, the BTA is sharpening their pencils and leading their mainly Bermudian team to deliver strong sales results for our Island.
The question was, the Junior Minister is also
on the BTA. Is this a conflict of interest? No.
Question: Do the budget cuts affect the strategy of Tourism? Focus more on sales and marketing
and activities in these areas that are more targeted and
have the highest return on investment. As noted in the
brief, the Minister and the BTA will collaborate on promoting on Island offerings, signature events and expe-riences through the year that appeal to our target
groups. A $2.6 million reduction in government grant
results in net increase in the annual budget of $1.27
million due to the anticipated increas e in visitor fees of
approximately $873,000. The rest of the BTA’s funding
comes from visitor fees paid directly by hotel guests,
cruise passengers and vacation rentals guests.
What are the tourism fees projected for 2024?
Tourism fees projected are as follows:
• hotel guests, $8,208,621;
• cruise passenger visitors, $7,250,367; and
• vacation rentals, $656,637.
The BTA has not increased fees since cruise
passenger fees were introduced in 2018.
Employee numbers, question from page B -244
with employees, 12 persons: Is this solely for Tourism?
And what are the numbers for employees for the BTA?
Twelve staff are from the Ministry of Tourism, Culture
and Sport. Eight are from the Ministry Headquarters,
four are from the Tourism Regulatory unit. None of these are from the Bermuda Tourism Authority. The
Bermuda Tourism Authority has 40 employees total.
That is not captured in the employee numbers, as they
are not government employees.
I am going to try to give some answers from the
Ministry of Culture and Sport if I can, Mr. Chairman, and
sort of balance it out a little bit.

You have 10 minutes, sir.

752 4 March 2024 Official Hansard Report

Bermuda House of Assembly Mr. Hubert (Kim) E. Swan: Well, the opportunity in another place will present itself.
Does the BTA have engagement with small
cruise boats that dock in Hamilton and cruise ships under the remit of the Ministry of Transport [that] would support all avenues to increase visitation?
FYI, cruise ships question by Shadow Minister
Ben [Smith]: Visitor dissatisfaction in St. George’s has caused major concerns from boutique cruise ships.
And the Chamber of Commerce is working to address
this problem. I thought that was important as well.
Are we looking at areas outside of Europe and
the US for tourism? Are we looking at Dubai, Abu Dhabi
and other Arabic countries to come to Bermuda? Our
primary markets are the US, UK and Canada. Our main
market cities are New York, Boston, Charlotte, Atlanta,
Philadelphia and Washington.
The BTA grant declined to $16 million. Does
the Junior Minister believe this is ample and adequate
to Tourism to get us back to pre- pandemic levels? Answer: Absolutely, under the direction of the CEO . . . I
believe I answered that one already.
Head 71, is the $990,000 just Culture and
Sport? Or is it Tourism, Culture and Sport? The Authority has not included [funds] in the Ministry except for the grant.
Question: Is revenue after -school care? After -
school care is no longer in this Ministry. The Youth sec-tion was transferred to the Ministry of Youth, Social Development and Seniors. The reduction in the Ministry
Headquarters is in relation to the regulator y Airbnb tax
projections [that] were revised based on the approved
rates which were not established [until] after the publication of the financial year 2023/24.
Question: Is the Ministry attending the Olympics? We will support our athletes. Closer to the confir-mation of who will be competing for Bermuda, the dates will be confirmed and arrangements will be made in the
best interest of the public purse. We cannot have the
debacle and overspend that was seen previously by the
OBA when they spent over $30,000 to go to Brazil.
Concerns over cutting back on the BTA grant.
What were we doing differently locally? What are we
doing in the entertainment area locally? New nightclubs
was a comment that I believe the Shadow Minister had
made. Although the MP referenced Pickled Onion, the
City of Hamilton also has Karma, The Front Yard, the
Spinning Wheel entertainment complex, as well as several smaller bars and nightclubs. The Department of
Culture is directly contributing to the live entertainment offerings in Bermuda with the Creativ es Live! series
which focuses on hosting live Bermudian bands on Saturday nights in venues throughout the Island, including
some of the social clubs. Additionally, local live acts
have been featured at several local businesses including Tino Martinez Quart et at the Lido complex at Elbow
Beach, as well as The Birdcage Live Vibes and White
Horse. So, live music events. Where are we with Elbow Beach? Is it in receivership? The Elbow Beach is definitely in the process of receivership, where there are interested parties. We will definitely invite them to avail themselves of
the tourism investment benefits under the Tourism Investment Act.
Demographic coming to Bermuda via air is old,
55 and older. What are we doing to attract a younger demographic? Are we targeting the younger people?
We aim to entice a younger audience to Bermuda. Our
National Tourism Plan is strategically tailored to four distinct target personas, each with unique references
and aspirations. For the experience enthusiast, 22 to
44, we spotlight Bermuda’s rich cultural heritage, culinary delights and immersive activities. Catering to the
adventure seeker, 18 to 34, we emph asise adrenalinefuelled escapades. Meanwhile, for the affluent jetsetters aged 30- plus with a household income of
$250,000- plus, we offer luxurious accommodations,
private yacht charters and VIP experiences. Lastly, for the active families aged 35 to 54, we highlight family -
friendly adventures such as snorkelling, kayaking and ecotourism.
Our marketing strategy employs digital targeting and personalisation to engage these personas
across various online platforms while fostering collaborative partnerships and influencer -making to amplify
our reach and authenticity. With our efforts with the
unique desires of each persona, we aim to create unforgettable experiences that resonate with a diverse
range of younger travellers to Bermuda.
[Pause]

Can the Junior Minister let
us know where BermudAir is planning to expand? BermudAir has shared publicly their plans to expand to Bal-timore and Orlando in 2024.
How do we collect occupancy data? Are we
getting good data? Are we hitting all of the hotels and
Airbnbs? The answer is hotels report their occupancy
and revenue data to the STR [Smith Travel Research]
confidentially. And the BTA receives a monthly aggregated report for the Island. Seventy per cent of rooms
in Bermuda currently participate. Using occupancy
ADR [average daily rate] and RevPAR [revenue per
available room] data from the STR report is industry
best practice for tourism destinations globally. T he BTA
uses AirDNA reports for vacation rental occupancy,
which receives data from Airbnb and VRBO [Vacation
Rental By Owner]. Occupancy data is not available for
every vacation rental in Bermuda, but this gives a large
sample of properties to track trends over time. Using
this type of data is best practice for DMOs [destination
management organisations] measuring vacation rental
performance in the destination.
Salaries, $384,000. This is on page B -244, a
$384,000 increase. Is all of that for four hotels and


Bermuda House of Assembly regulatory staff? This is for salaries and operating expenses for the regulatory.
Question: Advertising and promotion was
$8,000. It seems low. What are we getting for the $8,000? And this is for the Regulatory to advertise any changes regarding hotel regulations. The Tourism
budget is independent. So it is coming from the Regulatory s ection.
Question: Professional services, who are they
and what are they doing? It was $194,000 in question. These funds are set aside to hire professionals to assist the Ministry with strategic initiatives that assist with the
alignment of the Tourism Authority and the Regulatory
section within the Ministry of Tourism, Culture and Sport.
So, question about grants and contribution: Of
$17 million, how much of that is for Culture and Sport? Approximately $106,000 of the $17 million is related to
Culture. However, it should be noted that the majority
of the Ministry’s grant is distributed via the relevant de-partments. There is $106,000. For Cup Match, $50,000; Parish Councils, $40,000 and the remaining amount is for general grant, one- time grants that are
sports - and culture- related. That may fall outside of the
department’s matrix, but the Minister is inclined to sup-port.
Performance Measures. What challenges did
the hotel and policy staff find when they were out doing re-licensing? There were some minor issues in regard
to fire inspection. They received a provisional licence until inspections have been completed.
Question regarding the USA Track and Field
big events, [USA TF]. Are there any other big events that are coming up? SailGP 2024, last year of contract. 2022 PwC Economic Impact Report, economic impact
equals $7 million. Media value, $11.4 million. Total
value equalled $18.4 million. And the BTA return on investment equalled 4.6 to 1 on the economic impact. Butterfield Bermuda Championship contracted for two more years, 2024 and 2025. And the 2022 KPMB Economic Impact Report —2023 still remains in progress.
Economic impact for that event was $17 million. The
media value was $9.2 million. Total value, $26.2. BTA return on investment 4 to 1 on economic impact.
Question: Have we considered professional
women’s sport? Could we get those teams here? The
BTA sports portfolio currently includes several female
signature sports events. And we have been analysing opportunities for professional sport events and meet-ings which reach female athletes and leaders in the
global sports space.
Question: Page C -20, Grants to External Bodies—what is this? General one- time grants that are
sports - and culture- related that may fall outside of the
department’s metric, but the Minister is inclined to sup-port.
The capital acquisitions are $90,000. What is
this for? Are there any big tennis events coming up?
This is for the continued infrastructure of the W. E. R.
Joell Tennis Stadium.
Question on page C -7 regarding Maker
Spaces and creatives. Does this have to do with the BTA- plus? No. The BTA -plus is a subsidiary online
learning platform launched by the Bermuda Tourism Authority that delivers industry -related training and educational lessons to inspire individuals, businesses and
partners with the purpose of strengthening the Island’s reputation as a destination of choice. There is a BTA website. You can get to it by going to
training.gotobermuda.com/learn .
Question: More detail needed for foundation
items that are working within the BTA as it relates to becoming self -funding. The BTA are in the preliminary
stages of working through a comprehensive analysis toward self -sustainability.
Page B -242, Head 71, Fees, Sales and Marketing. What exactly do the sales look like? Explain sales further, please. The primary function of the group sales work to promote Bermuda as an enticing destina-tion for various customer bases as they nurture, cultivate and secure new and returning businesses to the
Island. The Sales team has set a key focus toward driv-ing revenues and creating consistent visitor presence throughout the non- summer months and with smaller
groups that can be accommodated in existing facilities.
Question: Are we looking at areas outside of
Europe and the United States? I think I answered that one . . . I think I answered that one already.

For the benefit of the listening audience, there were some technical challenges earlier. The House is back on 105.1 FM.
We are now in Committee of Supply for further
consideration of the Estimates of Revenue and Ex-penditure for the year 2024/25.
The Ministry of Tourism, Culture and Sport
briefs were given by the Honourable Kim Swan, Junior
Minister. Robust questions and preambles were given
specifically in Tourism by the Honourable Member from constituency 12, Craig Cannonier. And then followed
up by his batting partner, the Honourable Shadow Minister of Tourism, Culture and Sport, from constituency 8, Ben Smith.
Answers were given in gross detail by —
[Laughter]

Once again, for the benefit of the listening audience, we are now in Committee of Supply
for further consideration of the Estimates of Revenue and Expenditure for the year 2024/25.
We are now beginning the debate for the Ministry of Finance. The Premier, the Honourable David Burt, will be giving his brief. And I now change chairs
with the Honourable Member from constituency 20, MP
Susan Jackson.

[Ms. Susan E. Jackson, Chairman]

Good afternoon. Honourable Members, we are now in Committee of Supply for further consideration of the Estimates of Revenue and Ex-penditure for the year 2024/25.
And this afternoon we will have the Premier deliver his brief on Finance, Heads 10, 11, 12, 28, 38, 39
and 58.
Premier, you may proceed.

Hon. E. David Burt: Thank you, Madam Chairman.
Madam Chairman, I move the following heads:
Head 10, the Ministry of Finance Headquarters; Head
11, 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 be now taken under consideration.

You may proceed.

MINISTRY OF FINANCE

Hon. E. David Burt: Thank you very much, Madam
Chairman. Madam Chairman, the 2024/25 budget estimates for the Ministry of Finance are found in section B
of the Estimates Book on pages B -108 through 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 relation to revenue, the
Department of Social Insurance, the Office of the Tax Commissioner and the Registrar of Companies. A llocations to cover the interest on government debt, guarantee management , the Public Accountability Board and
the Gaming Commission are also in the Finance Ministry’s budget.
Madam Chairman, the Ministry has a total
staffing establishment of 1 65 posts and an aggregate
current account budget of $24 6.46 million and is responsible for collecting $1 .1 billion, or about 90 per
cent of all government revenue. Of the $246.46 million
in expenditure, $127.1 million, or 53 per cent, of that is
for interest charges; $83.4 million, or 35 per cent, is for
costs associated with pension and health care for all government workers and war veterans; leaving $30 million, or 12 per cent, for operat ional 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, is all operational spend.
• Head 11—Accountant General, $8 6.4 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 main-tains 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 for operational overheads.
• Head 39—Registrar of Companies, $12.04 million, an increase of $ 2.5 million, or 26 per cent .
And these are all operational overhead funds.
• Head 58— Debt and Loan Guarantees, $ 127.8
million, a decrease of $2.6 million, or 2 per
cent, of which $127.1 million is mandated interest payments .
Madam 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


Bermuda House of Assembly recurring theme—that is, the Government’s resolve to
develop and implement a consistent and considered
strategy to diversify and strengthen Bermuda’s econ-omy and 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 is presented, and
the Ministry of Finance has been a key player in overseeing the execution of this Government’s fiscal strategy. K ey areas of focus in this strategy are as follows:
• targeted investment and tax policy to enhance
economic growth by attracting investment that
creates jobs;
• making Bermuda’s tax system fairer while reducing the tax burden for the working class;
• modernising Bermuda’s regulatory regime; and
• maintaining fiscal discipline by meeting and in
many cases, Madam Chairman, as you well
note, exceeding budget targets.
Madam Chairman, w e have a responsibility to
the people of this country to provide the best fiscal and economic management possible. And to this end we will continue to make the necessary decisions , often
tough decisions that are not politically expedient, required to sustainably grow Bermuda’s economy in the
long term. And Madam Chairman, when I say “tough
decisions,” tough decisions —for example, last year
when we decided not to balance the budget to make
sure there was sufficient money for investment.
Difficult decisions are always required because
you cannot deal with these things in just the short term; you have to take a long- term view of items. And short -
termism will land you with a $40 million island and a
one-year economic boost, whereas long- term investments land you with long- term economic growth. [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.
Madam Chairman, following an extended
global pandemic, Bermuda continues to be faced with
significant 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 Minis try’s in -
house team supported by various external stakeholders and consultants (more on that later, Madam Chairman) 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 instructions
continue to be a priority. To this end, during the past
year, reviews of resources in key areas were undertaken, and active steps have already been taken to address identified gaps. The additional funding required
has therefore been included in the cost estimates for
the relevant units and departments contributing to notable increases in some areas , with appropriate reductions in others . Key initiatives which 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 with its in-ternal structural reform f or 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 econom ic 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 assist s with finance, administration and policy
support for the Minist er and Financial Secretary.

Mission Statement, Key Goals and Objectives

Hon. E. David Burt: Madam Chairman, the Finance
Ministry’s mission statement can be found on page B -
109 and 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:
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 borrowing 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 pre-dictable development of public services and
other relevant legislation , and appropriately
monitor its implementation consistent with international standards.
8. Monitor the agreed tax standards, seek to in-fluence changes thereto, 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
756 4 March 2024 Official Hansard Report

Bermuda House of Assembly 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 re-gime.
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. I n this brief, I will highlight the 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 and the provision of additional relief to workers and businesses in Bermuda. And as a reminder for the listening audience and for you, Madam
Chairman, last year we reduced payroll taxes for 86 per
cent of workers in the country and 86 per cent of businesses in the country —meaning every single local
business operating in Bermuda received a reduction in
their tax burden. A reminder, of course, Madam Chairman, the tax changes that the Opposition branded “irresponsible.” (We will get to that later as well.)
Continued compliance with the international requirements, maintenance of a strong credit rating and
continued successful implementation of a sound and prudent fiscal management policy resulting in the
presentation this year of a balanced budget, one that
we fully expect to achieve. As we go forward in 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 rep-utation as a reputable financial centre, executing a prudent fiscal strategy balanced by our commitment to ap-propriately meeting the needs of the people of Ber-muda while seeking to build a fairer and more just society.
I will now speak to the various units and departments that [make up] the Ministry of Finance, starting
with Head 10, which is the Ministry of Finance Headquarters.

HEAD 10 —MINISTRY OF FINANCE
HEADQUARTERS

Hon. E. David Burt: Madam Chairman, the Finance
Ministry Headquarters’ core functions are conducted
under Head 10, which can be found on page B -110.
The work is undertaken in 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 the Office of the National Anti -
Money Laundering Committee, [better known as
NAMLC ]. In addition, grants are being given to the Bermuda Public Accountability Board and the Bermuda
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
framework.
The Finance Ministry Headquarters’ mission is
as follows: The achievement of economic prosperity and to ensure the financial security of Bermuda. In discharging 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 busi ness; a Bermuda where citizens have confidence in the Government’s stewardship of the public purse; a Bermuda w here 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.
Madam Chairman, in seeking to fulfil this mandate, the Ministry of Finance HQ has a staff establishment of 18 permanent full -time posts, and its total
budget for the fiscal year is $7.2 million split between
operational costs of $5.1 million and grants of $2.1 mil-lion. 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 i s primarily due to the Treaty unit being merged with the Regist rar of Companies. Excluding
this reorganisation, costs have increased by $460,000 due largely to the funding allocated for the Tax Reform
Commission, $225,000, and additional funding of
$100,000 to support the work plan of the Bermuda Public Accountability Board.
Grants have increased with 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

Hon. E. David Burt: Moving on to cost centre 20000,
Policy Planning and Management, $2.7 million, for an
increase of $374,000, or 16 per cent. Madam Chairman, the budget estimate for the Policy Planning and Management Unit is $2. 677 million, an increase of
$374,000 over the previous year . This unit, under the
leadership of the Acting Financial Secretary, provides
advice and support to me, as the Minister of Finance,
as well as overall strategic direction, oversight and
management of Ministry Headquarters and the departments that [make up] the Ministry of Finance.
In addition, this unit manages the administration of 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 the general financial and fiscal
oversight and accountability throughout the Govern-ment. Total staff in this unit is seven persons. The
$374,000 proposed increase in expenditure is primarily


Bermuda House of Assembly related to the change in allocation of costs to the Bermuda Public Accountability Board and funding for the
Tax Reform Commission. The increase in allocation for
the Bermuda Public Accountability Board from
$300,000 to $400,000 allows for an additional staff member to reduce key man risk and t o 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 business in Eu-rope and the United Kingdom in accordance with the
Bermuda Public Accountability Act 2011. The Tax Reform Commission has a diverse membership with participants from both political parties, trade unions, the
business community and 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

Hon. E. David Burt: Moving on to the highlights for the
last fiscal year. Those included
• coordinating 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 email
system was compromised;
• working with teams to ensure enhanced debt
collection;
• establishment and support of the Tax Reform
Commission;
• ensuring more effective administration and co-ordination of financial administrative matters in
the Ministry; and
• working to ensure even more effective quango
and guarantee oversights.
I would like to express my sincere thanks to the
team who supported the Acting Financial Secretary, including the new Chief Operations Officer, Mr. Hadleigh Farrer, who has in particular worked with the teams to
assist in the debt collection efforts throughout the Ministry, of which we see, Madam Chairman, have made great progress in particular working with the teams to
assist in the debt collection efforts throughout the Min-istry of which we see, Madam Chairman, have made great progress.
For the upcoming year key projects will include
work on tax reform, including the continued develop-ment and implementation of the Corporate Income Tax
[CIT] regime; implementation of PIPA in the Ministry;
working with quangos to further strengthen financi al accountability in governance; and work 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: Cost Centre 20010

Hon. E. David Burt: Madam Chairman, the budget for
the Fiscal Planning and Control [Unit] is $568,000,
which is $19,000 higher than the previous year. A salary provision of $448,370 accounts for 79 per cent of
the Budget Team’s allocation. It provides for a four -person team led by the Budget Director.
Madam 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
from the COVID -19 pandemic and provide relief in various 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 or exceed our targets as we have moved toward
achieving a balanced budget.
Madam Chairman, the budget statement details 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 expenditure estimates and monitoring perfor-mance.
Madam Chairman, controlling government expenditure has been and still remains a significant com-mitment of the Government. In order to determine high
priority policy programmes, the Budget Office has continued to utilise the zero- based budgeting methodology
to assist in the development of this years’ budget estimates. Policy prioritisation at the start of the budget
process facilitates better alignment of the allocation of
limited resources with Government’s overall policy objectives and initiatives. 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. Madam Chairman, do
you know the reason why $210,000 was chosen?

Why?

Hon. E. David Burt: Because that was a balanced
budget that was presented in 1990 and the figure was listed as $210,000. When we were doing our research,
we were looking at the last balanced budget that was
presented that was able to be achieved and we found
that figure. So, we figured if we use that figure then we
would not of course have to talk about why is it not
higher or lower. Just make it simple.
758 4 March 2024 Official Hansard Report

Bermuda House of Assembly [Inaudible interjection]

Hon. E. David Burt: No problem, Madam Chairman. I
am making sure you know. And this is only the second budgeted surplus in 35 years. Madam Chairman, the last time Bermuda
achieved a balanced budget was in 2002/03, some 21
years ago and 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 my sincere thanks go to the Budget Team
led by Ms. Tina Tucker for their work in achieving this
significant milestone.
For the upcoming fiscal year the unit has set
the objectives to provide support for the open budget
process, enhanced budget monitoring control reporting, continue deve lopment of budget preparation methodology and website and a restructure of the Fiscal
Planning and Control Unit.

Members and listening audience, I just
want to remind you that we are in Committee of Supply
for further consideration of the Estimates of Revenue
and Expenditure for the year 2024/25. We are listening
to the Premier and Minister of Finance. He is debatin g
the heads for the Finance Ministry.

Hon. E. David Burt: Thank you so much, Madam
Chairman.

International Affairs and Regulatory Unit:
Cost Centre 20020
Hon. E. David Burt: Moving on to cost centre 20020.
The budget estimate for the International Affairs and
Regulatory Unit is found in section B of the Estimates Book on page B -110. Accordingly, the budget estimate
for this unit is $682,560, an increase of $214,560, or
46 per cent over the previous fiscal year.
Madam Chairman, the International Affairs and
Regulatory Unit is the lead policy and oversight unit
within the Ministry of Finance Headquarters in relation
to Bermuda’s financial services sector. This 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 prim ary 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 g lobal economy. The Deputy Financial Secretary, Pamela Burrows, took on an expanded role in September 2023 as
the Deputy Financial Secretary for international regulatory matters with operational responsibility for the Office of the National Anti -Money Laundering Committe e
and the Registrar of Companies as well as management of her support team and her work with the relevant
supervisory and financial services bodies. These agencies now include the Bermuda Monetary Authority,
Public Accountability Board, the Bermuda Deposit Insurance Corporation [BDIC] and the Bermuda Gaming
Commission. I wish to recognise DFS Burrows for her
excellent work and leadership which has resulted in this
promotion.
Madam 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 opportunities to
Bermuda and its reputation. The International Affairs
and Regulatory Unit plans to respond to these challenges through various goals [and] is focused on advancing the unit’s priorities and reflecting the outcomes
the people of Bermuda deserve. These goals are as
follows, Madam Chairman:
1. Ensure and support the fair, impartial, efficient
and transparent development of regulation at
the national and international levels.
2. Strengthen capacity to secure regulatory solutions to economic security issues.
3. Strengthen the public diplomacy and support
bilateral and multi -lateral engagement.
Madam 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 is as follows:
• To support the Minister of Finance and the Fi-nancial Secretary in coordinating the financial
services regulatory policy initiatives of the government.
• 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 Secretary
on anti -money laundering policy initiatives together with the National Anti -Money Laundering Committee, pursuant to section 49 of the Proceeds of Crime Act 1997.
• To provide policy and strategic advice to the
Minister [of Finance] and the Financial Secretary on matters related to transparency,


Bermuda House of Assembly together with financial services and related directives issued by the European Union [working] together with the Cabinet Office, the Brussels Office, the London Office and European
Union specialists.
• To provide policy and strategic advice to the Financial 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.
In the past fiscal year, Madam Chairman, the
International Affairs and Regulatory Unit was primarily
focused on technical and strategic assistance regarding the financial services sector at home and abroad.
Specific milestones achieved by the International [Affairs and] Regulatory Unit in the last year are as follows:
• Maintained regulatory stability by ensuring
completion of the Ministry of Finance component of 10 financial service sectors Bills and/or
statutory instruments including but not limited
to digital asset business, insurance and invest-ment funds and investment business proposals
submitted by the Bermuda Monetary Authority.
• In collaboration with the Ministry of Finance
colleagues this unit provided technical and
strategic advice on supervisory assessments,
sovereign ty 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
activities. 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 International Affairs division of the Ministry of Finance Headquarters.
Madam Chairman, in order to achieve these
priorities and pursuant to the Ministry of Finance’s business plan, the unit will undertake the following key strategic goals in the upcoming fiscal year:
In relation to the European Union, the International Affairs and Regulatory Unit will work with the
Cabinet Office, the BMA, the Bermuda Public Accountability Board, the Brussels Office and the EU Council to coordinate Bermuda’s compliance with the various and
never -ending European Union directives. These will include provision of technical and strategic advice on leg-islative policy matters. This work also includes preparation for regular visits by the Minister of Finance to meet with key European Union st akeholders.
In dealing with matters related to NAMLC and
the Financial Action Task Force [FATF] standards on combating money laundering, the unit will contribute to
and support the implementation of Bermuda’s national
anti-money laundering strategy together with the National Anti -Money Laundering Committee. This work includes provision of strategic advice relating to Bermuda’s compliance with standards which have been
set down by the Financial Action Task Force.
In relation to the United Kingdom, the unit will
work with the Cabinet Office on matters related to the financial services sector along with the Bermuda Monetary Authority, the London Office and specialist partners on matters related to equivalence and tr ansparency, including accessible registers of beneficial own-ership.
In relation to our affairs with the OECD, this unit
will work with other units in the Ministry of Finance, 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.
And with the Gaming Commission, 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 same matters will happen with the
Bermuda Deposit Insurance Corporation and the Bermuda Public Accountability Board.
Madam Chairman, in this way the Regulatory
Unit helps supervisors and businesses articulate the
regulatory 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 co ntinue to work with the relevant finance teams and relevant government departments to meet Bermuda’s domestic and international commitment to continue to implement the structural adjustments to the International Affairs [and] Regulatory Unit.
The salary provision of $414,560.39 accounts
for 61 per cent of the International Affairs and Regulatory Unit’s allocation which covers three posts. The $214,560 increase in expenditure is primar ily necessary to support the cost of external specialists required in order to assist the Ministry in accomplishing its financial services mandate.

Domestic Affairs and Economic Policy:
Cost Centre 20030

Hon. E. David Burt: Moving on to cost centre 20030,
Domestic Affairs and Economic Policy. The budget
760 4 March 2024 Official Hansard Report

Bermuda House of Assembly allocation for this unit is $294,000. This is a significant
drop from the prior year of $137,000, or 32 per cent.
As part of the restructuring, this unit will be led
by the Deputy Financial Secretary ( Domestic and [Economic]) in order to provide leadership and oversight to
the Accountant General’s Department, the Department
of Social Insurance, the Office of Tax Commissioner,
and Customs as it relates to revenue matters. The team
will also provide research and analy sis and economic
and financial conditions to help facilitate sound deci-sions on public policy, fiscal debt and guarantee man-agement. The unit also manages t he relationship with
credit rating agencies.
Madam Chairman, I am pleased that this unit
has supported the assessment of several rating agen-cies through the [2023/24] and has resulted in positive
ratings being given and awarded to the Government of Bermuda by S&P, 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 an
enhanced role in the coordination and oversight of all
domestic and economic matters. It will assist tax reform
work and enhance financial reporting.
Other initiatives include continuing to
• improve the sustainability of the government’s
funds, mainly the PSSF [Public Service Superannuation Fund] and the CPF [Contributory
Pension Fund] in an updated framework that
allows for progressive contributions. In addition
to the proposed change in the contribution
structure, adjustments will also have to be
made to other levers, mainly, retirement age
and benefits;
• work with the leading auditing firm who is giving a draft of scope of work to assist the Accountant General’s D epartment in bringing the
outstanding audits of the Pension Fund up to
date. We recognise the importance of these efforts as part of wider work on pension reform
sustainability and take the decision to enlist ad-ditional resources to address both challenges
within the current fiscal year.
• continue to work on the development of economic 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 and
economic management strategy in consi deration of the reform of the tax system.
• work with relevant teams to ensure a more coordinated approach to debt collection in conjunction with the Ministry of Public Works
launch of a government -owned captive insurance company to further reduce costs and create efficiencies in relation and provis ion 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 tax
and pension collections and government ser-vices.

Treaty Management and Administration:
Cost Centre 20040

Hon. E. David Burt: Moving on to cost centre 20040,
Treaty Management and Administration. There is one point . . . zero dollars, A decrease from [the revised
2023/24] of [$1.266] million. The Treaty Management
and Administration unit has been moved to Head 38,
the Registrar of Companies, and as such will be dealt
with in this section. This move allows for either more
effective and efficient management of external tax affairs, given the overlap in the relevant global requirements.

National Anti -Money Laundering Committee:
Cost Centre 20100
Hon. E. David Burt: Cost centre 20100, Office of National Anti -Money Laundering Committee [NAMLC].
Madam Chairman, the Office of NAMLC budget for fiscal year is $879,304, a decrease of approximately
$10,524, or 1.18 per cent, from the current fiscal year.
One hundred per cent of this allocation represents the minimum level of funding required to achieve under the provision of the core Secretariat services of
NAMLC including to meet Bermuda’s financial obligation to the Caribbean Financial Action Task Force.
Madam Chairman, the purpose of the Office of
NAMLC 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 policy initiatives;
• monitoring for changes in the international
standards and 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 anti -money laundering and terrorist
financing proliferation financing risk, 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 effecti ve regime to combat
money laundering, terrorism financing and the financing of proliferation. The competent authorities within
NAMLC assist international counterparts in the effort to
address these issues on a global scale.



Bermuda House of Assembly Highlights of the Last Fiscal Year

Hon. E. David Burt: During the current fiscal year
NAMLC has continued critical focus on maintaining and
where needed enhancing the effectiveness of Ber-muda’s AML/ATF framework. This is necessary to sustain the achievements noted in Bermuda’s 2020 Mutual
Evaluation Report as well as to address recommendations made by the assessors in that report.
Madam Chairman, I must remind that Bermuda
has achieved some of the highest ratings in the world.
And I think number one in technical standards and top
ten in implementation of those standards which is a testament to the Government’s work. And I will get t o that
a little bit later, I guess, but you know, it is important that we prioritise these issues because I know there is
some commentary and chatter that the Government has nothing to do with the growth of international business. But I can promise you if we did not meet those
requirements, we would have a different story when it
comes to growth in international business. But I di-gress, Madam Chairman.
Madam Chairman, during 2023/24 the need to
accelerate the completion of the fourth round of Mutual Evaluation while beginning early preparation for the fifth round, the Caribbean Financial Action Task Force
[CFATF] cancelled Bermuda’s second follow -up report.
This report had been due in November 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 giv-ing 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 presenta-tion 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 helped
implement actions to address new technical requirements i mposed by FATF Recommendation 2 dealing
with domestic cooperation. To this end, the Office of
NAMLC organised a series of consultation meetings
between NAMLC agencies and technical personnel
from the PATI/PIPA Unit in the Cabinet Office. These
meetings enabled discussions on how individual NAMLC agency’s coordination and domestic cooperation practices can be brought in line with data protection
standards.
They 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 of 2023. Dur ing 2023, the Office
provided significant support to assist with assessing the identified technical deficiencies, including support in re-lation to the preparation of drafting instructions for the
preparation of required legislation. This work is ongoing
and involves progressing the legislative amendments in
the upcoming fiscal year.
Additionally, the Office of NAMLC supported
the BMA with a conduct of the first sectorial risk assessment for the digital asset business sector. The Office
coordinated the involvement of other NAMLC agencies
and led relevant parts of the analysis to contri bute to
this 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 is
part of the technical work required to address substantial new requirements to FATF’s Recommendation 15
that were imposed at Bermuda’s last onsite. As Bermuda has not yet been assessed against these new requirements, this will be a part of the assessment in the
upcoming fifth round Mutual Evaluation.
During fiscal year 2023/24 the Office of
NAMLC also prepared and published a report which
provided the consolidated inherent risk findings arising
from Bermuda’s most recent money -laundering terrorist-financing national risk assessment. The publication
of Bermuda’s risk assessment results is an essential
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 stakeholders in t he
AML/ATF regime are made aware of the results of any
national or sectorial risk assessments.
In September 2023, as part of our efforts to enhance AML/CFT [anti -money laundering and countering the financing of terrorism] knowledge, technical offices of NAMLC agencies facilitated a customised
three- day AML/CFT cryptocurrency training for all
NAMLC a gencies. Training was provided by the Basel
Institute in Switzerland and was hosted online. The
training provided practical guidance on key aspects of
cryptocurrency and blockchain and most importantly it
afforded hands -on experience in understanding the
mechanisms that support investigation and evidencegathering in criminal cases involving digital assets and
the blockchain.

Key Initiatives for the Upcoming Year
Hon. E. David Burt: Madam Chairman, NAMLC focus
continues to be to ensure that Bermuda maintains the
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
negati ve impact of international listings or that of enhanced monitoring in relation to AML/CFT. And just as a note, Madam Chairman, because of our stellar results
in the last review we, unlike other jurisdictions, were not
caught up in an enhanced review or follow -up. And that
means less work was required. So, you invest upfront;
762 4 March 2024 Official Hansard Report

Bermuda House of Assembly you have less to do afterward. If you don’t invest upfront, if you don’t assign the resources, as the former
Government did not assign the resources, you find
yourself stuck in a position where you may be like our
competitor jurisdictions who have multiple years of follow-up, trying to clean up what they should have done
in the first place. This Government took the approach
under the esteemed advice of the then NAMLC chair,
now the Acting Financial Secretary, to make sure that
we exceeded. Unfortunately, it took up a significant part
of our early domestic agenda. But we were able to
achieve these results which resulted in us not being an
enhanced follow -up. A very key point to make.
Over the upcoming year this particular mission
will gain mission -critical status as Bermuda begins to
prepare for the upcoming fifth round Mutual Evaluation
with the first submission being due in early October 2026. Therefore, NAMLC will have to reckon with the
recent significant changes made by the F inancial Action Task Force, the technical requirements in several
recommendation of the FATF standards, the methodol-ogy and the universal procedures for the assessment
and follow -up review processes which were approved
in just October of 2023.
The new methodology and universal procedures renew FATF’s emphasis on effectiveness in our regime while simultaneously focusing on compliance
with technical requirements only in areas where coun-tries have already demonstrated weaknesses and in areas where technical requirements are new. Therefore,
the major priorities for Bermuda in the upcoming year will be to ensure that our legal and operational frameworks are appropriately aligned with FATF’s revised
AML/CFT and CPF’s standards; continue to address shortcomings and weaknesses identified by the assessors in our 2020 Mutual Evaluation Report; and ensure that any changes that are made to our AML/CFT and CPF regime do not undermine our compliance with
other FATF requirements thus undoing previous
achievement s.
Madam Chairman, certain key national initiatives will be undertaken in the upcoming year for which
the Office of NAMLC will provide critical support to the National Anti -Money Laundering Committee. As these
are national initiatives related to preparations for the
next Mutual Evaluation consistent with the ap proach
taken in the fourth round, funding will be provided from a grant from the Confiscated Assets Fund [CAF]. The
work of the Office of NAMLC in relation to these matters
will include the following:
• Coordinate and manage and provide technical
leadership in the money -laundering and terrorist financing national risk assessment in accordance with Bermuda’s national AML/ATF
and CPF policy.
• Updated national risk assessments for all
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 and all NAMLC working groups will be assessing both money laundering and terrorist financing risk simultaneously for the first time. This national risk assessment is expected to continue to the end of
2024.
• Additionally, we want to 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.
Madam Chairman, to facilitate the effect of processing all of these initiatives, the chair and the Office
team will continue to work closely with the national anti -
money laundering Cabinet committee, NAMLC member agencies and other stakeholders.

Salaries

Hon. E. David Burt: The salary provision for the Office
of NAMLC in 2024/25 is $367,746, representing allocations for two of the three full -time employee posts with
the Office of NAMLC’s establishment as these two
posts are filled. The salary provision represents a third unfilled full -time employee post is allocated for a local
consultant to allow for the review of the role and then subsequent recruitment. The increase in salary provision, approximately . . . for all three posts 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 $15,000 to recognise a significant increase in time commitment required of the
Chair to advance the next Mutual Evaluation. Again,
Madam Chairman, a necessary expense paid for out of
a consulting vote to ensure that Bermuda maintains its
stellar record in AML evaluations, as I know there are
lots of questions, Where is all this money for consultants going? But no one questions t he results of our
wonderful reviews from international agencies. But yet they are . . . you know, . . . anyhow let me try to remain
focused, Madam Chairman.

Training and Overseas Travel
Hon. E. David Burt: Funding is also allocated for expense related to training and overseas travel and CFATF meetings. Provision is also made for Ber-muda’s annual membership contribution to CFATF
which has increased for 2024 from $68,360 to
$100,000.

Recognition

Hon. E. David Burt: I would like to thank Ms. Paula
Tyndale who has continued to lead the work of the Of-fice of NAMLC and also welcome Ms. Kozelle Crease
who has recently started as NAMLC Coordinator to
manage the Office of NAMLC team.


Bermuda House of Assembly Pension Commission: Cost Centre 20070

Hon. E. David Burt: A grant of zero dollars [which is] a
decrease of 100 per cent over the previous year.
Madam Chairman, as a result of significant cash reserves held by the Commission which has grown over
the last few years due to the increase in regulatory fees,
no grant was allocated to the Pension Commission for
this upcoming year. The Pension Commission is a corporate body established under the National Pension
Scheme (Occupational Pensions) Act 1998. And also has responsibility for the administration of Pension
Trust Funds Act 1966 and pension trust established
and administered under this Act.
Madam Chairman, one of the main priorities of
the Commission following the pandemic has been the
administration of Government’s economic relief pro-grammes via the provision of refunds for plan members
from their private occupational pension plans. As we
know, these refunds provide timely and necessary financial support for Bermudians and up to the 31
st of
December the amount of refunds under this pandemic
programme came to a grand total of $234.4 million.
Madam Chairman, in relation to other 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 the previous year.
• Registered 157 plan amendments, compared
to 91 in the previous year.
• Approved 15 plan trustees in comparison to
just one in the prior year .
• Initiated zero civil actions against . . . employees and officers compared to two in the prior
year.
• Conducted 176 compliance meetings with employers and plan members compared to 21 in
the prior year.
• Held 10 compliance meetings with plan administrators compared to eight in the prior year.
• Participated in nine public and/or advisory
committee meetings compared to two in the
prior year.
• Completed 16 transactions under the Pension
Trust Funds Act 1966 compared to 19 in the
prior year.
Giving statistics on pension plans as the most
recently available data which is at the end of 31 De-cember 2022. In the preparation of the brief I had asked—

[Crosstalk]

Hon. E. David Burt: In the preparation of the brief leading up to this I was asked if there was more recent data.
We do not get the data from panel administrators until
June, so this is the most recent data. So as to the Opposition Leader referring to the notes from last year, I am assuming that says the 31 of December 2021. Yes,
Opposition Leader? So this goes to 2022.
The National Pension Scheme contained
51,111 plan members or former members. There was
a total of 3,293 employer plans. The vast majority of these 3,280 were defined contribution plans and there
were only 13 defined benefit plans. The total value of
asset s under the National Pension Scheme at that
point in time was $36.5 billion [sic] . I can only imagine
what the recent run- up of the stock market that it is a
lot higher. What? Did I read the wrong number, Minister? It is $3.65 billion. Did I say $35 billion? That is a
whole lot of money. It is $3.65 billion—to correct the
record. But with the recent run- up of the stock market,
I am sure that figure has swelled substantially.
There were 535 self -employed plans. There
were US$364,910 of plan assets that were transferred
to overseas retirement vehicles compared to just
$266,564 in the prior year.
Madam Chairman , the National Pension
Scheme (Financial Hardship) Regulations 2010 also allowed Bermudians 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 financial hardship statistics provided by the
Commission for the 2023 financial year, and also I will
provide the figures up to inception, are as follows (for 2023):
• total applications received —137;
• approved applications —113;
• declined applications —19;
• applications pending or withdrawn —5;
• total amount of money approved for withdrawal
is—$2,515,285.
And just to go on the type of those applications,
the vast majority of them were for eligible education expenses, which was 61; followed by imminent loss of principal residence, 21; imminent eviction from home
for rents in arrears, 18; eligible medical expenses, 9;
and fun eral expenses, 4.
And just to give an idea of the success of this
programme since its inception in 2010, another ad-vancement of the Progressive Labour Party Government:
• total applications, 3,965;
• approved applications, 3,202;
• and the total amount of funds that were approved for withdrawal, $40,420,000.
Applications by type:
• eligible education expenses, 1,276;
• imminent threat of loss of principal residence, 507;
• imminent eviction from home from rents in arrears, 1,200;
• eligible medical expenses, 208; and
• funeral expenses, 11.

Pension Commission Goals
764 4 March 2024 Official Hansard Report

Bermuda House of Assembly Hon. E. David Burt: Looking ahead, Madam Chairman, the upcoming year the Commission has a number
of goals. And I will cover these in detail because they
are important.
1. Undertake a series of reviews on critical issues
and challenges facing the Occupational Pension Plan Sector 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 for retirement and the significant role occupational pension plans play
in achieving significant outcomes.
3. Complete the work to advance the reduction of
pension administrator fees that remain to be
completed. It is something that as Minister of
Finance I am reasonably frustrated that it is not done; however, the Acting Financial Secretary
has assured me that this will be done this year.
So I sincerely hope that the Pension Commission will complete this particular work.
4. Support the enactment of more options for domestic investment of pension funds to boost
the local economy which, Madam Chairman,
Honourable Members 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.

Projected Revenue and Expenditure Items

Hon. E. David Burt: The Commission’s projected total
revenue this 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 $1.5 million for salaries related to benefits
for 10 staff members and the remainder for general office expenses. The resulting projected position is a net
deficit of $651,000, although as I said before, there is a
significant cash reserve.
I would certainly like to extend my thanks to the
staff of the Pension Commissioner for the work of the
past year. And I would like to extend a special thanks to Ms. Kelly Hodsoll who served as the Chairman of the
Pension Commission for a significant amount of time,
who has stepped down after multiple years of service.
So, I would like to extend my thanks and gratitude to
her for her service, Madam Chairman.

Thank you, Premier and Minister of Finance.
For the listening audience, we are presently in
Committee of Supply for further consideration of the
Estimates of Revenue and Expenditure for the year
2024/25. This afternoon the Minister of Finance/Prem-ier is delivering the brief on the Ministry of Finance. So
we have the Ministry of Finance, the Accountant General, Social Insurance, Office of the Tax Commis-sioner, Registrar of Companies, Debt and Loan Guarantees.
Minister, when you are ready, you may proceed.

Hon. E. David Burt: Thank you so much, Madam
Chairman.
Madam Chairman, I will move on to cost centre
20110 Gaming Commission, [line item 1002] Grant, of
$800,000, which is an $800,000 increase.

Gaming Commission, Cost Centre 20110
Hon. E. David Burt: Madam 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 Gaming Commission that the facility was to have a 90-day extension and then the overdraft was due to be
repaid in full. At that point the Bermuda Gaming Com-mission did not have enough money to repay the loan
and over the next 90 days the BGC sought other external funding to mitigate this issue. They were unsuc-cessful in securing funding against the balance and
therefore out of the money that had to be repaid,
$9,708,138, the Government as a guarantor paid
$9,675,000 and the remaining $33,138 was settled by
the Bermuda Gaming Commission. Yes, this was the Butterfield Bank.
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 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 providing banking services at the casino,
which is critical for a casino to operate in Bermuda, review the 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 of the Gaming Commission who, led by Ms. Charmaine Smith, during this fiscal year have an-swered the Government’s request to streamline their
operations significantly until there is an operating casino. Important. And that is what they have done.

Corporate Income Tax, Grant $1.278 million.

Hon. E. David Burt: Madam Chairman, in late 2023,
as we all know, the Government following extensive review and analysis of the relevant international requirements passed the Corporate Income Tax Act. This was


Bermuda House of Assembly a significant achievement representing strong and positive collaboration in consultation with industry and the
public. Genesis initiative and subsequent work was in
regard to the two- pillar plan of the global agreement
reached in 2021 under the auspices of the Organisation
for Economic Co- operation and Development [OECD]
which was signed by over 140 countries. This agree-ment 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 mini mum tax agreement.”
Madam Chairman, the OECD has issued
model rules as part of the framework for implementation of the global minimum tax [GMT] and these rules
were the foundation for the development of Bermuda’s
regime to be considered compliant with these requirements. As we know, this Act will impose the 15 per cent
corporate income statutory tax that will be applied to
the Bermuda businesses that are part of multinational
groups with annual revenue of € 750 million or more. In
administering this tax, the Government is havi ng an administrative body to do this work with appropriate systems and personnel to effectively address the complexity of the tax collection, compliance and cooperation in
this regard.
In the 2023/24 year funding for this project was
done through the Policy Unit for the Ministry Headquarters. But for the upcoming year a new cost centre has
been established against which future costs will be ap-plied to ensure effective performance of pri mary objectives and functions.
Madam 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. The Unit will have the primary objective of col-laboratively building and implementing an internationally credible Bermuda corporate income tax regime that takes into account the unique characteristics of Ber-muda’s international business community (spanning
multiple sectors), designing organisational structures
and recruiting a competent core executive team with
experience, internationally credible, and able to put in
place the framework to expertly grow the organisation
in the future. And building and implementing from
scratch processes and information technology systems that are robust and eff ective to make administration
simplified, efficient, user -friendly, scalable, flexible, auditable, and most of all, technology friendly.
Madam Chairman, the primary function 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.
Madam Chairman, following completion of
phase one of the corporate income tax project, phase two of the project will focus on development and implementing the key operational aspects of the corporate income tax regime in Bermuda. The primary objective
of phase two includes ongoing development of technical tax administrative provisions, the aforementioned development of a corporate income tax collection body, and in addition phase two also includes supporting the
Bermuda Tax Reform Commission in the achievement
of its strategic policy objectives.
As I close out Head 10, I wish to thank all of the
team inside of the Ministry of Finance Headquarters,
which has been led by Ms. Cheryl Lister, OBE; our Acting Financial Secretary who has been in post since the
untimely passing of the former Financial Secretary, Mr.
Anthony Manders. She will be, as mentioned, retiring
from the role at the end of this month but will continue to provide strategic advice and support over the next
few months to her successor, the new Financial Secretary.
Madam Chairman, this concludes the Estimates for Head 10. I will now move on to Head 11, the
Accountant General.

HEAD 11 —ACCOUNTANT GENERAL
Hon. E. David Burt: Madam 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 also 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. Madam Chair-man, the department’s mission state ment is To develop
and maintain quality financial reporting, employ ee
health insurance, treasury function, internal control, and effective use of technology to aid in decision- making.

Consolidated Fund Administration, 1101

Hon. E. David Burt: Madam Chairman, 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 out into six sections.
1. Policy Planning and Management, which sets
the strategic direction in general administration
of the department.
2. Financial Reporting, which handles the ac-counting and reporting on the Consolidated Fund and other public funds.
3. Compliance and Disbursement, which is the
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.
766 4 March 2024 Official Hansard Report

Bermuda House of Assembly 4. Administration of the investment of the pension
funds under management and risk management and insurance. The total pension funds
investment under management is $2.76 billion.
It is broken out as follows:
a. $632.8 million for the PSSF [Public
Service Superannuation Fund]; and
b. $2.129 billion for the contributory pension fund.
5. Bank Reconciliation, which is the reconciliation
of all of the government’s bank accounts.
6. Financial Systems, which is management of
the Enterprise system supporting the government’s accounting platform.

Fund Administration, 1102

Hon. E. David Burt: The other programme is 1102,
which is Fund Administration which represents the
Government’s share of employee benefits programmes, namely, the Public Service Superannuation
Fund, the Contributory Pension Fund (commonly referred to as social insurance), the Government Employee Health Insurance [GEHI] scheme, and administration of the scheme and payment of health claims, and also for us, noted here, the Ministers and Members
of the Legislature Pension Fund (better known as
MMLPF).
An important point to note, Madam Chairman.
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 hard- to-fill
posts. It is expected to be important to address the issues related to recruitment in this area. Notwithstand-ing the vacancies, the department persists in efforts to identify efficiencies within its approved organisational
structure.

Accomplishments for the Last Fiscal Year
Hon. E. David Burt: Madam Chairman, 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
which allows persons to register a vendor. So
you no longer have to fill out forms. You can
just go online, apply as a vendor, and will
smooth the payment process as t hat will now
be able to be handled online.
• Updated the E1 access process from paper to
digital working with the Forms Team. So again,
forms no longer have to be filled out by government departments, they can be completed online. As I say, we complete digital transition
and continue to address and progress digital transition within government.
• An additional accomplishment, worked closely
with the Office of the Auditor General and ministries to progress the annual audit of the Consolidated Fund and Public Funds.
• The Compliance Disbursement Section continues to make timely vendor payments accurately notwithstanding significant staffing challenges.
• Worked closely with teams throughout the
Government to ensure appropriate processing
of key payments and continued effective financial oversight during periods when government
systems were impacted by the cyberattack in September. And they did a tremendous job to
ensure that the economy could continue to
function with government payments not being
delayed too much.
Madam Chairman, 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, $80,440,000.
• Capital estimate of $280,000.
This budgetary allocation represents an increase of $4.35 million, or 5.3 per cent, above the original estimates for last year, 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 to B-114.

Significant Programme Expenditure Changes
Hon. E. David Burt: Madam Chairman, for cost centre
1101, which is found on page B -113, dealing with Consolidated Fund Administration where there is a decrease of $61,000. The current year’s request reflects
a decrease of $61,000 which is primarily reflective of a
decrease i n funding level for the vacant post currently
existing in 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 items that drive the department’s overall expenditure is salaries, technical support, maintenance fees for the various software systems that are used by the Accountant General and rent.

Fund Administration, Cost Centre 1102, Page B -113


Bermuda House of Assembly Hon. E. David Burt: The aforementioned increase of
$4.14 million. This programme presents the cost for
employee benefits of Government. These costs are a
function of the number of government employees and
the rates relating to their prospective benefits, em-ployee overheads ( for example, contributory pensions,
social insurance is directly related to the national contribution pension rates of contribution). As you will note,
we did have pay increases and therefore these figures
are going up.
As the employer, the government ordinarily
matches its employees’ contributions to the PSSF, social insurance contributions (the CPF), GHI contributions and premiums, except of course for the lease corrections in the Regiment for which the Government
pays both the employer and the employee share. The
Ministers and Members of the Legislation Pension
Fund (MMLPF) contributions are made as well and
matched by the Accountant General’s Department.
The increase in 2024/25 estimates for the government’s costs 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.
So here is what happens, Madam Chairman.
The consulting bill goes down. The salary bill remains
the same. And the overhead bill goes up because full -
time posts are more expensive than consultants, in
some cases. And I know the Opposition Leader is obsessed with consultants, so I am happy to help him understand the budgetary thing of how these things work
out. But if you cannot hire people in posts, and work
needs to be done, you need to find the resources or else we will be up here hearing complaints that w ork is
not done. So you cannot have your cake and eat it too.
Let’s move on to Capital Estimates, Madam
Chairman.

Capital Estimates
Hon. E. David Burt: Page C -11, Capital Funding,
$280,000. This is an increase of $180,000. Technical support and ongoing maintenance will be required for the 2024/25 fiscal year as the Oracle E1 system is continually enhanced to improve the business processes
and other impor tant service provided. The department’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

Hon. E. David Burt: This update promises enhanced
user experience and performance and expanded cloud capabilities and most importantly, the completion and deployment of an online payment system for the collection and receipting of government services. Which is
something that I know is anxiously awaited by many
persons but most anxiously awaited by the Minister of
Finance.

Key Initiatives for the Accountant General
Hon. E. David Burt: Madam Chairman, the key initiatives plan for the Accountant General for the upcoming fiscal year as well are to
• complete the audited Consolidated Funds no
later than 31 October 2024;
• use the Capital Funding to complete the online payment portal (as I just mentioned); and
• work with the PATI/PIPA Unit to develop, assess and implement the model necessary for
the department to be compliant with the Personal Information Protection Act 2016.
• continue the work to clear the backlog of outstanding financial statement audits of Public
Funds (And again, it is of course a challenge
as you heard in the beginning that the depart-ment is understaffed because accountants can
make more money working in the private sector than they can in the public sector. And as
we have had difficulty recruiting for roles, that
is part of the reason why there is the delay and
that is part of the work which I have mentioned to make sure that there are spaces where we
can be competitive so those roles can be filled
substantively.)

ANNOUNCEMENT BY THE CHAIRMAN

HOUSE VISITOR

Premier, if I can just interrupt.
I would just like to recognise that Senator
Douglas De Couto is in the Chamber.

[Committee of Supply, continuing]

Hon. E. David Burt: I hope he is listening carefully,
Madam Chairman.
We will now move on to the other items that are
going forward.
• continue to deliver scheduled Financial Instructions training in conjunction with the Department of Employee and Organizational Development.
• timely processing of outgoing vendor payments;
• and 100 per cent of clean health insurance
claims paid within 30 days in line with governing legislation.
Madam Chairman, as I move on to the next
head, I would like to extend my appreciation to the work
768 4 March 2024 Official Hansard Report

Bermuda House of Assembly undertaken by the management and staff of the Accountant General’s Department under the leadership of
the Accountant General, Ms. Dionne Morrison- Shakir ,
who is an amazing asset to the Government of Ber-muda and who has worked under incredibly trying cir-cumstances with reduced staffing in her department.
But she is an absolute pleasure to work with.

HEAD 12 —BERMUDA CUSTOMS

Hon. E. David Burt: Madam Chairman, I will speak to
the Bermuda Customs Department revenue which is included under the Ministry of Finance. Customs expenditures are included within the Ministry of National Security which was debated last week Friday.
Madam Chairman, certainly, as we know with
the aftermath of the global pandemic, the increase of uncertainty brought around by conflicts in the Middle
East and Eastern Europe, these have strongly affected
financial markets and impacted Bermuda businesses.
In recognition of this, the Ministry of Finance and as executed by the Customs Department, has continued to
make available a programme of duty payment deferment for local businesses. This 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.
During 2023/24 the Customs Department has
operated an online auction of imported goods that have been abandoned or seized in order to recovery the duty owed on them. The website customs.bm provides further details on available items and allows bidders to
submit offers for those items.
In addition, the following legislative initiatives
were introduced primarily to provide relief to busi-nesses and individuals given the challenges with the cost of living and the cost of doing business in Bermuda. It is a pretty extensive list, Madam Chairm an. I
am going to go through it for the benefit of the listening
public.
1. In keeping with the Government’s promise to
ensure that the 75 [per cent] sugar tax is focused on sugary sodas, candy and chocolate, provision was made for a lower duty rate of
25 per cent for low sugar drinks and nutrition
bars. For dairy creamers contain ing some
added sugar the duty rate was reduced 35 per
cent.
2. The duty rate for accompanied personal looseleaf tobacco was amended from 35 per cent ad valorem to $500 per kilogram. This change has
harmonised the rate for loose tobacco and how
it is imported.
3. 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 providers. Personal care service providers include: non- medical personal care services
such as barbershops, beauty salons, fitness
centres or gyms, massage parlours and spas.
4. 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 business 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.
5. Also, 100 per cent duty relief was provided for
imports for stone aggregate for use in the local,
commercial manufacturers of structural con-crete products such as ready -mixed concrete
and concrete blocks. This measure has helped
to mitigate increasing cons truction costs arising from the dwindling supply of local limestone aggregate.
6. 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 clothing and equipment for Bermuda’s in-ternational sporting teams.
7. Provision was made to widen the scope of application for end- use [duty] relief for community
sports facilities so that renovation improvements are now eligible for duty relief whether
or not the project requires Planning permis-sion.
8. End-use duty relief for personal protective
equipment [PPE] and supplies was amended to empower the Minister of Finance to determine the time periods where PPE may be imported duty free. This change allows the suspension of duty relief and swift reinstatem ent in
the event of a resurgence of COVID -19 or a response to any future pandemic which might
happen to come upon us. (Hopefully not.)
9. To further assist Bermuda Hospitals Board off-setting increased operat ing expenses the enduse duty relief for hospital operating supplies
was amended by expanding the duty relief period until 31 March 2024.
10. Provision was made to amend end- use
CPC 4243 widening the scope of application of
end-use duty relief to include asphalt production as well as concrete products to eliminate
any competitive advantages that concrete
product manufacturing may enjoy over asphalt
product manufacturing in respect to driveway installations. This amendment has also permitted duty savings on aggregate imports be
passed on to the Department of Works and


Bermuda House of Assembly Engineering in the repair and construction of
public roads.
11. 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 the facilities and homes to pur-chase developmentally appropriate materials
and equipment for the classroom and outdoor play spaces.
Total Customs revised revenue (as shown on
page B -118 of the Estimates Book) is $231.7 million
and the projection for the next year is $238.7 million.
Measures imposed in the previous financial
year to cap fuel prices at February 2022 levels were also continued to assist customers when necessary.
Analysis of 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 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 the economic condition of the United
States will continue to improve. Our closest major trad-ing partner, the United States, is seeing its economy
strengthen as indicated through unemployment rates
close to a 50- year low, sustained growth in real GDP.
Inflation rates are also falling which is expected to provide the Federal Reserve scope to lower interest rates.
Whereas in the recent past global oil prices reached new peaks, they have now returned t o lower, more normal levels and the Government will continue to ad-vance legislation which will assist Bermuda’s economy such as introducing additional duty rate reductions and
duty relief for essential goods.
The Government has tasked the Cost of Living
Commission with identifying additional essential commodities 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
Hon. E. David Burt: Moving on to other revenue
sources, Madam Chairman. Forecast of revenue sources other than Customs duty are expected to con-tribute 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.
Madam Chairman, sincere thanks to the Collector Ms. Lucinda Pearman and the Customs team for
their support in Bermuda’s economy in this area of Customs revenue which falls under the Ministry of Finance. And with your leave, I am happy to move to
Head 28, the Department of Social Insurance.

Yes, Premier. I just want to remind the
listening audience that we are in Committee of Supply
for further consideration of the Estimates of Revenue
and Expenditure for the year 2024/25. We are now debating . . . we have just finished up the Ministry of Finance Headquarters and now we are moving on to the Accountant General and then we will be proceeding to—

Hon. E. David Burt: I have done Accountant General
and Customs. I am over to Social Insurance.

—[INAUDIBLE] and Social Insurance.
Premier, you may proceed.

Hon. E. David Burt: Thank you so much, Madam
Chairman, for giving me that break to stretch my legs. I am grateful and appreciative of such.

HEAD 28 —DEPARTMENT OF SOCIAL INSURANCE

Hon. E. David Burt: Madam 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 budget. This budget
reduction is sol ely for war pensions and gratuities.
Madam Chairman, the Department of Social
Insurance and the staff administer s the Government of
Bermuda’s C ontributory Pension Fund and its benefits
to Second World War veterans . War pension and gratuities are 100 per cent funded by the Consolidated
Fund and the contributory pensions operations within
the department are 100 per cent funded by the Contributory Pension Fund. 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.
The mission statement of the department is To
ensure contributions are collected and benefits are
paid. Pretty simple.
The vision of the department is 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 sub-stantial and continuous in order to serve future generations efficiently and compassionately.
Madam Chairman, the core function of 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 programme.
The Contributory Pensions Act 1970 and, of
course, as we know, under this Act all employed and
self-employed individuals who are over the age of 18,
770 4 March 2024 Official Hansard Report

Bermuda House of Assembly or under the age of 26 in the instance of full -time students who work more than four hours per week are required to pay contributions. The two major classes of
benefits paid out of the fund are contributory benefits
which are for old age pension and gratuity, widow and
widowers allowance and gratuity and disability benefits;
and non- contributory benefits which are for old age
pension and a disability benefit.
The other Act is the Pensions and Gratuities
(War Service) Act 1947 and 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 th e
programme.
Madam Chairman, highlights for the last year
are as follows:
First, the department of Social Insurance new
Director, Mr. Gershon Gibbons, of Dandy Town fame,
started on 1 May 2023. The new director brings valuable knowledge to the department having been responsible for administering Bermuda’s Government pen-sions funds and the enrolment of employee benefits
and managing numerous Government IT projects.
On 14 July 2023 the Contributory Pensions
(Amendment of Benefits ) [(No. 2)] Order [2023] was tabled in the House of Assembly increasing pension benefits by 4.1 per cent, keeping this Government’s promise to increase pensions by the rate of inflation to ensure that our seniors do not fall behind. Something I
was quite certain, Madam Chairman, that you would
appreciate.

Very much so.

Hon. E. David Burt: Thank you.
Management consulting services . The review
was completed and a report was received in February 2023. The review concluded that the staff in the department should be increased to serve the population better and a comprehensive review/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 collections to reduce non-payment of contributions, streamline operations and to
execute on the Department of Social Insurance’s mandate.
Madam Chairman, though there has been a
recommendation for an increase in positions, the position of the Ministry of Finance is that we will make in-vestments in technology to keep that at a minimum.
And as I will go to additional technology investments of
the Department of Social Insurance, I do believe that
we will be able to achieve that goal with a minimal increase in complement.
Keeping with the highlights, the department
continued to maintain effective work relationships with the Debt Enforcement Unit of the Attorney General’s
Chambers, the Public Prosecutions, Department of Immigration and also the Tax Commissioner and
Transport Control Department with respect to efforts to
assist in debt collection. And as always, the department
participated in various workshops and presentations
where they provide clarity to attendees regar ding pensions, benefits and contributions managed by t he Department of Social Insurance.

Cost Centres and Key Programmes
Hon. E. David Burt: If I may, Madam Chairman, the
department operates five main cost centres. I will go
through them in order and give details as I go through.

Cost centre 38000, Senior Management
Administration

Hon. E. David Burt: The Administration section provides overall direction and management for the department. The budget estimate for this cost centre is
$2,121,700 which is an increase of $261,400 from the
original budget. This increase is due to a salary review
which result ed in upgrades to employees in 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

Hon. E. David Burt: The War Pensions Section administers (found on page B -119) the benefits to war veterans under the Pensions and Gratuities (War Service)
Act. The budget estimate is $3 million, which is $532, —

[Inaudible interjections]

Hon. E. David Burt: Oh sure. Wrong page number?
[Crosstalk ]

Hon. E. David Burt: I will promise you by the time the
Opposition Leader asks the questions, we will have the
information right in front of him.

That’s it? That’s the only one?
Hon. E. David Burt: Oh, because the other things are
recharged, remember. So, they are charged back to,


Bermuda House of Assembly but we will get . . . we will . . . because it is not listed
here under general summary of the expenditure because remember the expenditure is not in the Consolidated Fund. Though the funds are paid from the Consolidated Fund, those are recharged back from the Contributory Pension Fund [CPF ] under the Contributory Pensions Act. So they do not typically show up in
the Budget Statement. But we will just confirm to make
sure there is nothing that is off.

Thank you.

Hon. E. David Burt: Thank you for pointing that out.
On page B -119, as I said, the budget estimate
this year is $3 million which is $532,400, or 15 per cent
less than the previous year. The budget is based on 72
war veterans which is six less than the prior year.

Benefits
Hon. E. David Burt: The Benefits Section is responsible for the administration of benefits to members of the
Contributory Pension Fund. And under the Contributory
Pensions Act the Contributory Pensions and Workmen’s Compensation (Reciprocal Agreement) Act 1970. The budget es timate 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 b eing
funded for the 2024/25 budget year. The total benefits paid for August 2022 to July 2023 was $204 million
compared to $188.6 million in the previous year which
is an increase of $15.8 million or 8.4 per cent. This increase is partially due to the incr ease in pensions on
16 August [2022] which was applied retroactively to 16
August 2021.
In 2022/23 the total benefits paid was $168.7
million . . . sorry. Let me start again, Madam Chairman.
The total amount paid, as we said, $204.4 million. Out
of that $168.7 was paid for contributory pensions. And
$14.1 million was paid for widows and widowers’ allowance. Gratuities of $11.5 million were paid. Madam
Chairman, $7.1 million was paid for non- contributory
pensions and the remaining $3 million in benefits paid
for the period were for contributory and non- contributory disability payments.
Madam Chairman, I certainly would like to
commend the manager and the staff of the Benefit Section who have continued to process the payments on time . . . sometimes we get a little banking issue, but
almost all of the time they are there right on the day. Of course, if they are not there on the day, you and I get
calls.

Mm-hmm.

Hon. E. David Burt: So we try to make sure that we
get that done and sorted on time.

Compliance, Business Unit 38040
Hon. E. David Burt: The Compliance Section monitors
the compliance of employers and employees according
to provisions of the Contributory Pensions Act. The
budget estimate for this is $1,033,500 which is $69,300
more than the 2023/24 original estimate of $964,200.
And this i ncrease is related to the expected recruitment
of the debt collector for the Department of Social Insurance in the current year.
From August 2022 to July 2023 the total reported debt from employers and self -employed persons
increased by $804,800, 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 Contributory Pension Fund of $71,514,500.
Given the progress that the Office of the Tax Commissioner has made in relation to collecting outstanding
debt, the additional hiring of a debt collector in t he Department of Social Insurance will also provide synergies and the possible effect of use of shared resources
to advance debt collection. As a reminder, we have
made significant progress on getting back payroll taxes
and now the Ministry is turning its focus to make sure
that we advance the same matters on social insurance.
So delinquent employers beware!
The Compliance Section continues to work
with delinquent employers to establish practical ways to reduce their outstanding debt and oversees the execution of payment plans and follows up to ensure that
they are monitored. And of course, the Attorney General’s Chambers Debt Enforcement Unit works in close
collaboration with the department to assist the collection of outstanding contributions to the Department of
Social Insurance. In most cases the employers who the
Department of Social Insurance are unable to contact
were delinquent over 120 days are the ones who are
referred to the Debt Enforcement Unit.
Outstanding contributions collected for the
contribution year amounted to $2,753,234 compared to
$1,401,744 in the prior year which means there is almost a doubling of debt collection from one year to the
next. But we are going to look to significantly increase
that as we bring on a full -time debt collector and work
with the Office of the Tax Commissioner. And this doubling reflects the efforts of the Compliance staff and the
mandate to make sure that we collect the outstanding
debt. So I know the headline is going to be the amount
of debt outstanding, but I think it is important to note
that we collected more debt than we did last year and
772 4 March 2024 Official Hansard Report

Bermuda House of Assembly the amount of debt that we collected this year is less
than the increase in delinquent accounts. A key point to
note.
Madam Chairman, the Compliance section, as
mentioned, has staffing challenges and therefore we are going to ensure that the capital account budget allocation includes the purchase of debt management
software to automate the identification and monitoring
processes. And as I said, Madam Chairman, you have
seen the success that additional investment in IT re-sources for debt collection has provided for the Office of the Tax Commissioner. And the Department of Social Insurance will continue to work with the Att orney
General’s Chambers Debt Enforcement Unit and the
Department of Public Prosecutions to collect the outstanding debt through the court system where needed.

Contributions
Hon. E. David Burt: Contributions for this section is responsible for the administration of records and accounts from employers and employees participating in
the Contributory Pension Fund under the Act. The
budget estimate for this cost centre is $588, 900, which
is $75,200 more than that of the original budget. And
this increase is due to negotiated salary increases for
the employees of that section. The total contribution received through July amounted to $112.6 million com-pared to $105.9 million for the prior year which is an
increase of $6.7 million or 6.3 per cent.

Comparative Analysis of Current Account Estimates

Hon. E. David Burt: Salaries and Wages. An increase
of $322,000 reflects the estimates for vacant posts
across the department which are budgeted at 100 per
cent versus 75 per cent for the prior year.
And Madam Chairman, it is noted that all the
individual amounts can be seen on page B -120, even
though the amounts that are credited to the programme
balance it out to the $3 million, which is just for war veterans. But as I am going through the subjectiv e analysis you can see all of the various items that are listed for those departments.
Salaries and Wages. I covered the increase of
those matters. And this increase is also due to a salary
review which resulted in upgrades for employees in 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 reduction in the number of war veterans expected to benefit
from these payments.
Receipts and accredited programmes. This
amount represents the cost to operate the Contributory Pension Fund. And initially, as I said, payments to the
Consolidated Fund recharged to the CPF are made in
accordance with the Contributory Pensions Act. And the recharge for 2024/25 is budgeted at $4,204,000
which is an increase of $509,720 of the original budget
of the CPF over the prior year. Some people may ask
why we are increasing the amount of funds that we are
spending on the Contributory Pension Fund. I think I
have made that clear. There is a focus on better service
but also a focus on making sure that we deal with debt
enforcement in the exact same way that we have been
able to increase resources for the Office of Tax Commissioner to claw back a lot of those payments, the
same principles will be applied here to the Office of Social Insurance or the Department of Social Insurance
and we are expecting that we will see some results.

Activities and Plans for the Next Fiscal Year

Hon. E. David Burt: The following activities are slated
for the department:
• Completion of the actuarial review for the Contributory Pension Fund which started at the end
of the third quarter of the last financial year.
The actuarial review is required every three
years per section 35 of the Contributory Pensions Act [1970]. And the review aims to indicate the financial condition and long- term sustainability of the Fund and to investigate the potential financial implications of the future contribution benefit increases to the fund.
• Utilise the Government portal to allow contributors to search for their social insurance number, thus stopping people from calling, which of
course, is another improvement and further digitalisation of this effort for the Government. By the second quarter of 2024/25 we will have
applications online. So, applications for social
insurance will be able to be completed online
and registered inside of they system. And what
we will also be doing is increasing the public
relation 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 employees and implement
the remaining recommendations of the MCS
[Management Consulting Section ] review.

Significant Progress to New Initiatives

Hon. E. David Burt: I just want to touch on significant
progress or changes to new initiatives, as we have spoken about our debt collection effort, which I mentioned
earlier in this brief and presentation, are managed from
the chief operating officer inside of the Ministry of Fi-nance.
• Continue to participate in entrepreneurial workshops to educate the public about the benefits
of rights for employees and employers.


Bermuda House of Assembly • Establish more cross -ministry initiatives to develop supportive strategies to close existing
gaps in legislation that allow persons to avoid
payment obligations.
• Development and implementation and purchase of a new debt management system.
• The department will also embark on succes-sion planning exercise where current employees will be given opportunities to be profes-sion-developed and cross -trained. Succession
planning will facilitate smooth transitioning
when a staff member terminates servic e 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.
Madam Chairman, I did cover the capital account but just real briefly, on page C -11, the Department of Social Insurance has been allocated $284,000 in capital funding for the purchase of debt management
software. And as indicated, this application will provide
improvement for the collection of debt using IT sup-ported intelligence. And we have seen this assist in
other departments. Additionally, funding has also been allocated for the updating of the furniture in the depart-ment.
Madam Chairman, the public officers in the Department of Social Insurance are to be commended for their commitment in providing valuable service to the
local community and overseas beneficiaries. It has
been a pleasure to work with the new Director of Soci al
Insurance, Mr. Gershon Gibbons. And I look forward to
witnessing progress and members of the public can look forward to an increased digitalisation of efforts
there. And as I said, delinquent employers can look forward to the implementation of the debt management
system which will allow the department to better follow
up with those persons who are not . . .
There is one other thing that I wanted to get in
this year. It is probably not going to make it because I
am conscious of trying to ask too much from departments. But another thing that we are going to look at
once we get past these hurdles, is to make sur e that
notifications can also be sent to employees of delinquent employers, so employees can be aware. And so
that is one of the things that we want to do. It is something that I know has been recommended and suggested. We have to work through these various work
plans to make sure we can achieve these things. But we are dealing with these things this year and moving
on to other items next year.
Great. Thank you, Madam Chairman. With that
I am happy to move to the Office of the Tax Commis-sioner.

—take a little break just to remind the
listening audience that we are now in Committee of Supply for further consideration of the Estimates of Revenue and Expenditure for the year 2024/25.
The heads that have been debated are the
Ministry of Finance Headquarters, and the Minister has delivered a brief on the Accountant General, and he
has also read his brief on Social Insurance, Customs,
and he will be moving toward the Office of the Tax Commissioner. And this is the fourth session of debate
within the Committee of Supply. And at this time each
of the ministers under the various ministries deliver
briefs just showing and describing the performance of
the ministries over the year and the allocated budget
spending for the following year, which begins 1 April 2024 and runs to 31 March 2025.
Minister of Finance, are you ready now to proceed?

Hon. E. David Burt: Thank you so much, Madam
Chairman, for that break.

You are welcome.

Hon. E. David Burt: I will happily now move on to Head
38, which is the Office of the Tax Commissioner.

HEAD 38 —OFFICE OF THE TAX COMMISSIONER

Hon. E. David Burt: Madam Chairman, t he estimates
for Head 38, Office of the Tax Commissioner [OTC]
begin on page B -122. The total projected revenue is
$792.6 million, which is a substantial increase from the
revised current year estimate of approximately $730
million 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 large businesses.
The OTC’s budget allocation for the fiscal year
is $4.551 million, which is comprised of $4,051,000 in
current expenditure and $500,000 in capital expenditure.
Madam 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 applicable legislation.
The Office of the Tax Commissioner’s vision is to be a
significant contributor to Bermuda’s prosperity and stability by being a progressive, modern tax administration
committed to supplying 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 .
The OTC is divided into four cost centres :
• The Administration Team, noted in the Budget
Book as 48000, provides the overall direction
774 4 March 2024 Official Hansard Report

Bermuda House of Assembly and management of the office which includes
strategic planning, staff development, training
and general office support.
• The Stamp Duties team, 48050, which is responsible for 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, transfers, leases and mortgages, as wel l as administering the
Primary Family Homestead Designation Pro-gramme.
• The Audit and Compliance Team, 48070,
which is responsible for ensuring that taxpayers are compl iant with the Tax Acts throughout
the life of the taxpayers starting with their initial registration. The team conducts audits and in-spections of taxpayer books and records and
is responsible for knowledge management and
taxpayer education.
• The Operations Team, [ 48080 ], which oversees the 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 insufficient payments and is responsible for debt collection and enforcement.

Key Achievements in 2023/24

Hon. E. David Burt: Madam Chairman, the last fiscal
year saw progress being made in the OTC’s departments continuous pursuit of its goal of becoming more
effective and efficient in its effort to collect current taxes
and arrears. The collection of tax arrears has been a
major priority for the Tax Commissioner over t he last
year. At the start of this year 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 d elinquent receivables up to early November of 2023 had exceeded $15.6 million. I hope I can get an updated figure for that (for the technical officers who may be listening) as it would be great to provide that update to the Committee of Supply. But this is
a testament to the improvements in debt collection
tools and processes that have been accomplished with
the OTC’s Operations Debt Management Section and
the significant amount of capital investment that has
been made to ensure that this is able to happen.
The Debt Management activities have been
strengthened by technology improvements, streamlined processes and established timelines for case
management that enable the agency to make datadriven decisions and focus collection efforts in a more targeted manner.
The OTC has enhanced its business intelligence and reporting capabilities enabling the department to have a more accurate view of taxpayer compliance. The OTC is able to segregate those debts with the lowest possibility of collection and prioritise imme-diate efforts on those with higher chances of a successful collection. The OTC can now identify those debts
with greater opportunities for collection and those
which may be more difficult or require more stringent approach or those which are considered uncoll ectible.
As a result of these improvements, OTC debt collectors
can best utilise practices to make more effective use of
the efforts working with delinquent taxpayers and recovering past due taxes.
Madam 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 despite payroll tax receipts for those years being
impacted by relief granted to certain sectors experienc-ing financial hardships due to the global economic cli-mate and notable reductions in tax rates for all local
companies as well as all employees earning less than
$132,000.
A reminder, Madam Chairman, 86 per cent of
workers in this country received a tax break underneath
this Government in last year’s budget and 86 per cent
of businesses received a tax cut as well. Madam Chair-man, it is important to remember, as I repeat agai n for
those persons who may be listening, that the Opposi-tion branded these changes as “irresponsible.” But those changes have resulted in the highest payroll tax
revenue in history and have set the foundation for a
balanced budget.
Madam Chairman, I will digress and say 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, Madam Chairman —

POINT OF ORDER
[Misleading]

Thank you, sir.
Minister.

Hon. E. David Burt: Again, Madam Chairman, it is very
important to note. Branded as irresponsible, cut taxes
for 86 per cent of employees and 86 per cent of businesses, highest payroll tax revenue in history and on
path to balance a budget. The opposite of irresponsible; it is sound, fiscal management by this Government.
The OTC’s new hire relief programme was initially established in 2018. Something else that was put
in place by this Government. And since then the programme has both been expanded and extended.
Changes to the relief have included the expansion of it
from just the top- tier of taxpayers to the top two bands


Bermuda House of Assembly of taxpayers. And also the extension of the new hire
relief for qualifying employers, established in 2018 and
2020 was extended last . . . two years prior to 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.

2024/25 Fiscal Year
Hon. E. David Burt: In fiscal 2025 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.
Madam Chairman, the goals for debt management in the next fiscal year are as follows:
• to ensure that limited resources are focused on
the collection and compliance efforts that are
most likely to be successful;
• to continue to ensure that all debt collection ac-tivities are performed within a consistent process timeframe and framework;
• to increase the successful enforcement action
such as increase in court appearances for
those taxpayers who are financially able to pay
yet refuse to be compli ant with tax laws; and
• the department has set a goal to exceed the
target that has been set by the Ministry of Finance to collect at least $10 million of outstanding debt.
There are also improvements planned for
OTC’s Compliance Section. The goal of the Compliance Section is to help facilitate greater taxpayer compliance and, as such, the OTC intends to address underlying issues which could increase tax arrears.
Madam 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;
• ongoing monitoring of the debt collection process to track effectiveness of efforts via key
performance indicators and adjustments as
needed to further improve debt collection efforts;
• improve the tracking of noncompliant taxpayers to enable faster initiation of compliance activities [which] increase the likelihood of successful collection of tax debt;
• increase the number of compliance- related activities such as audits; and
• decrease the number of arbitrary assessments
by identifying at -risk taxpayers early when they
begin to struggle to pay their taxes due to financial difficulties placing them on instalment
plans in an earlier stage.
Madam Chairman, the OTC will make further
improvements on the Operation Section in relation to the production of end- of-year accounts and receivable
estimates in year -end reconciliation. This work is expected to upgrade the department’s capabilities with r espect to reconciling outstanding debt while also in-creasing the efficiency of the Operation Section, decreasing the time required to complete year -end accounting tasks.
The continuation of debt collection and other
changes related to revenue generation provide a base support for projected revenues of $792.6 million, which
is approximately $66 million more than the current
year’s original estimate of $726.7 million .
Madam Chairman, payroll tax revenues for the
upcoming year are project ed to rise to $ 580 [million ]
and this represents a $68 million, or 13 per cent , increase over the original estimate of $512.5 million for
this current fiscal year.
Madam Chairman, as previously stated the
budget allocation for OTC in the upcoming fiscal year
is $4.551 million, divided between current and capital.
The capital expenditure budget will be used to continue
modernisation efforts within the Compliance Secti on
and to make further improvements to the Operation
Section regarding accounts receivable estimates and
year-end accounting.
For fiscal year 2024/25 the OTC’s salary
budget has been increased by 4 per cent, or $117,000,
only as a result of negotiated salary uplifts. All other expenses remain relatively the same.
In conclusion, Madam Chairman, I wish to
thank the staff at the Office of the Tax Commissioner,
led by the Tax Commissioner Mr. Derek Rawlins, for
their hard work and their dedicated service to the Government and the people of this country. I think that w e
can all applaud the efforts of the Debt Collection Unit which, by the way, Madam Chairman, consists of a
team of consultants who are working on collecting
taxes for the Government. An important point to note.
I would now like to move on to Head 39, Registrar of Companies.

HEAD 39 —REGISTRAR OF COMPANIES
Hon. E. David Burt: Madam Chairman, I now present
the budget for Head 39 the Registrar of Companies
[ROC] which is found on pages B -127 through B -130 of
the Budget Book.
The Registrar of Companies is allocated a total
budget of $ 12,043,000. And this is up $ 2,503,000, or
26 per cent , from the previous financial year.
Madam Chairman, the Registrar of Companies
is government’s third largest revenue- generating department and is projected to collect approximately $76 million of revenue in this upcoming fiscal year. Its operations are regulated by several legislative mandates,
776 4 March 2024 Official Hansard Report

Bermuda House of Assembly 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 deal-ers and dealers in high -value goods sectors. High -
value goods are like jewellery, for example.
The legislative framework for the Registrar’s
mandate in this capacity is the Companies (WindingUp) Rules 1982, Bankruptcy Act 1989, Bankruptcy
Rules 1990, Real Estate Brokers’ Licensing Act 2017, Real Estate Brokers’ Licensing Regulations 2017, and
Registrar of Companies (Supervision and Regulation)
Act 2020.
Bermuda continues to be impacted by ever -increasing pressures and requirements that are imposed
by 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 bodies.
This changing landscape has driven the Registrar of Companies evolution as a regulator and this
legislative mandate has been underpinned by the Registrar of Companies (Compliance Measures) Act 2017 and the Economic Substance Act 2018. Indeed, Bermuda’s implementation of the Economic Substance re-gime is closely monito red or reviewed on an annual basis by both the European Union and the OECD. By the
way, Madam Chairman, with the assistance of a consulting team we passed those assessments which of
course not every country in our region managed to do.
Similarly , FATF and CFATF have looked to the
ROC 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 dealers and high- value goods sectors as the competent supervisory authority charged with their oversight.
Still in the regulatory lane, beneficial ownership
is another evolving space with policy positions emanat-ing 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 also the
United Kingdom. Beneficial ownership also features prominently in Bermuda’s AML/ATF and economic sub-stance regimes of which the Registrar of Companies
has been designated to oversee. For fiscal year 2024/25, the ROC’s mandate
within the tax regulatory policy and compliance domain
has been expanded. The Tax Treaty Unit that was in
the Ministry of Finance Headquarters has been incorporated into the ROC to exploit the 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, which stands for Base Erosion
and Profit Shifting framework which addresses intern ational tax concerns.
Madam Chairman, despite external pressures
Bermuda’s corporate register remains resilient with a total number of companies and partnerships on the register ending the year at approximately 16,000.
Madam Chairman, the Registrar’s mission is
To leverage technology, enhance user experience and
facilitate regulation, accurate data collection and analysis. The department’s mission objectives can be found
on page B -127 of the annual Budget Book. And I know
that the Opposition Leader can read it so I will spare us
from reading those items.

Major Achievements

Hon. E. David Burt: Madam Chairman, the department has been active in this current fiscal year a nd
some highlights include the following:
Administration and Restructuring. In order to
fulfil its mandate, the Registrar proposed a revised staff
structure which required significant effort for the Minister of Finance to get approved by the Cabinet. And they
are currently recruiting to fill 28 ne wly created positions,
Madam Chairman.
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. The follow -up load
capacity in the Ministry has increased f rom 7,500 last
year to 9,300 this year allowing users to access a
greater volume of company information through the
online system. The user base has also expanded from
7,000 last year to 8,900 in this year.
Major Achievements in Insolvency and Liquidations. The department added three support staff from
a recruitment drive to add a further full -time and support
staff to facilitate the administration of court -ordered liquidations and personal bankruptcies over which the official receiver has been appointed. New staff will support and assist the upcoming testing and implementation of the liquidation’s module of the online registry
system. In addition, this department introduced and collected approximately $109,000 new filing fees from voluntary liquidations. It also simplified filing requirements
to assist industry in filing voluntary liquidations and also
recovered approximately $18,000 of unclaimed assets
for the benefit of the Government of Bermuda.


Bermuda House of Assembly Real Estate and Major Achievements. The department continued the implementation of a contingency plan for the real estate sector as a consequence
of the IT security cyberattack to ensure that Bermuda
continued to meet its international AML/ATF obligations ; co-chaired the supervisory forum of the National
Anti-Money Laundering Committee; effectively managed the collaboration with supervisory authorities to support coordinated AML/ATF supervisory functions
amongst member agencies; facilitated agency cooperation on the national AML/ATF plan and strategy; and
also successfully completed the FATF standards training course, Train the Trainer, 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 pro-gramme in keeping with Bermuda’s commitment to cooperating with the EU and the OECD in the implementation of the International Tax Governance standards
ensuring compliance with enforcement actions in 2023 generated penalties of $868,000. Long- term successful
compliance and enforcement actions resulted in
greater compliance by Bermuda- registered entities with
statutory requirements. In addition, they succ essfully
completed the monitoring assessment conducted by
the OECD’s FHTP Secretariat. And that stands for . . .
OECD I think I have said enough times. FHTP is Forum
on Harmful Tax Practices. They successfully participated in the OECD’s cybersecurity assessment and
also began the implementation of the Corporate Governance Compliance Programme.
Madam Chairman, the ROC (Registrar of Companies) is pivotal to the continued success of the inter-national and domestic business sectors in Bermuda
and stemming risks related to the EU’s Annex I and Annex II, for non- compliant jurisdictions for tax purposes ,
the EU’s AML list and the FATF high- risk jurisdictions,
subject to a call for action, which is known as the FATF list.
Bermuda, consistent with its reputation as a
quality international financial centre, has committed to
having a robust and competitive 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.
Now, Madam Chairman, I just want to elaborate on this point because I think it is important to note. It is one thing about having the laws in place, but if you
are not actually enforcing the laws then you can end up
on the same list of which you are trying to avoid. And
that is why it is vital that the resources that you put in
place make sure that the inspections and compliance
activity can actually be demonstrated. Because what is assessed by the EU and the OECD, FATF and other
bodies, is not just the law s that are in place but whether
or not you are actually enforcing the laws and checking up and following. And that is why we see a significant increase to the bodies in the Registrar of Companies
as it has grown to be a bona fide regulator. And it is
important that those resources are there so we can
pass these assessments, which I have menti oned on
numerous occasions that not every jurisdiction in the
region has managed to do. But we have managed to
achieve.
Expenditure Overview. The estimate for
2024/25 is $12,043,000 which is up by $2,503,000 or
26 per cent from the previous year. And the budget for
the Registrar of Companies is set 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 Administrations; and
• Compliance.
The main reason for the increase, as I mentioned, Madam Chairman, is due to the transfer responsibility from the Treaty Unit from the Ministry of Finance to the Registrar of Companies. Additional resources
are also required by the ROC to support its extended
role to enforce compliance under the Economic Substance Act, Companies Act, and other relevant Acts as I just mentioned.
Cost centre, 49000, Policy Planning and Administration, on page B -128. This cost centre, Madam
Chairman, includes planning, strategic direction, administration and other activities which are 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. The budget
decrease of $197,000 for this cost centre for the fiscal
year is as a result of the reduction of the cost of engaging consultants as new staff positions are being filled.
With the continued increase in personnel the
Registrar of Companies has outgrown its current office
space located in the Government Administration Building. The Estates Section of the Ministry of Public Works
is assisting in identif ying alternative accommodation for
the Registrar of Companies’ offices .
Cost centre 49010 , Finance and Revenue, on
page B -128.
[Mr. Scott Pearman, Chairman]

Hon. E. David Burt: Mr. Chairman (as the Chair has
changed to the Honourable Member for constituency 22), 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 and all the other various Acts that I have mentioned previously in this brief . The Registrar of
778 4 March 2024 Official Hansard Report

Bermuda House of Assembly Companies previously collected $68 million in revenue
annually. However, the imposition of a fee to cover regulatory costs resulted in an increase in expected revenue. To ensure adequate controls around completeness, accuracy and timeliness of collecting revenue,
this section and staff and processes come under the
direct oversight of a departmental con troller. Estimated
revenue for this cost centre is reflected on page B -129
and that is $76,188,000 or 98 per cent of the total revenue which is $76,648,000 anticipated for the depart-ment. The balance of revenue, which is $320,000, is derived from licences in the general licensing and insolvency cost centre which I shall discuss in due
course.
Moving on to Entity Registration , [cost centre
49020]. 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 this upcoming year the ROC will take responsibility for managing and maintaining the beneficial ownership register. The budget increase will be used to pay salaries
and staff currently being recruited for this new activity.
Cost centre 49040, Insolvency and Liquidations , page B -128. Mr. Chairman, this cost centre is responsible for the execution of court orders to administer
liquidations in accordance with the Companies Act
1981, winding- up rules, personal bankruptcies in accordance with the applicable rules and laws. This cost centre encompasses the salaries of five full -time staff.
Other expenses include the cost of various professional
services, for example, legal , accounting, contract ors
and administering court appointed corporate liquidations and personal bankruptcies. The budget increase
will be used to pay salaries of staff who are currently
being recruited. The estimated revenue for this cost centre is reflected on page B -129, $320,000 which is
the balance of the total estimated revenue mentioned earlier.
Cost centre 49050, Real Estate and Licences .
Mr. Chairman, this section is responsible 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. Expenses under this
cost centre include the salaries of six p ersons and the
budget increase will be used to pay salaries of staff who
are currently being recruited.
Cost centre 49070, Treaty Management and
Administration. Mr. Chairman, budgetary and adminis-trative 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 is $1,573,000. This represents a nominal increase
of $24,000, or 2 per cent, to this budget allocation compared to the original 2023/24 estimate. The work of this unit continues to diversify from the original core activity
that led to its creation which was the negotiation and
processing of international tax cooperation on an onrequest basis.
The Treaty Unit’s remit is to negotiate and administer agreements to bilateral tax information exchange with member countries of the European Union,
G20, OECD, and other jurisdictions in key countries.
Participate in the OECD multi -lateral exchange information treaty with more than 100 participating coun-tries. Manage and administer requests for tax -related
information received under the provisions of Bermuda’s
tax agreements, and to ensure that Bermuda is keeping
with the common reporting standard, the country -bycountry reporting standard, the tax information and ex-change agreement standard on information on a request basis by the OECD, and any new tax reporting standards that the OECD may decide to come up with
this week. (That was for you, Mrs. Lister , I know I will
get a chuckle out of you.)
But, Mr. Chairman, the Treaty Unit, in addition
to negotiating and managing international treaties, has
also increasingly worked with Bermuda’s international
business stakeholders to address international tax policy threats. The international business sect or continues
to be the bedrock of our economy and therefore the work of the Treaty Unit is critical for the protection of this significant contributor. The Treaty Unit’s main
achievement in the current fiscal year is to play a key
role in Bermuda’s respons e to the emerging OECD
global tax standard. The Treaty Unit provided policy advice, Bermuda’s input into the G20, OECD inclusive
framework on the two- pillar solution on BEPS, which as
I mentioned is base erosion and profit shifting.
We know the most well -known element of this
work, the 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 st ability. 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 constant basis. Some of those
international 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.
The Treaty Unit’s management of Bermuda’s
compliance to the OECD and European Union interna-tional tax policies has become a majority component of
the Treaty Unit’s work. Although the Unit continues to
negotiate and manage tax treaties and updates 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 and never -ending threat to the country.
Mr. Chairman, there are at least five separate
but equally volatile doors to EU listing. Those are the


Bermuda House of Assembly EU OECD economic substance, and also following
OECD regimes which are handled by the Treaty Unit,
which are the OECD common reporting standard, the
OECD country -by-country reporting standard, the
OECD tax information exchange on an on- request basis and par ticipation in the OECD Multilateral Tax
Treaty.
An important point, Mr. Chairman . . . I am
happy that you are in the Chair. You might like to hear this one. 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. I wish to repeat this
point, Mr. Chairman, so that the listening public and
media can understand, as Members opposite in debates have stated that other jurisdictions ar e not implementing 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 Gov-ernment’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 Govern-ment understands) that non- compliance with international standards will result in negative listings from the European Union which can negatively impact our entire business environment. Just to note, Mr. Chairman,
soundbites do not keep you off of negative international
lists. You must do the work that is required.
So while both the timing and implementation of
any such measures in various countries remain highly uncertain, the potential impact on Bermuda’s attractive-ness is significant and therefore the work of the International Tax Working Group in conjunction with this
particular unit, which will be moved to the Registrar of Companies, is important.
Mr. Chairman, the Treaty Unit will continue the
following initiatives in the next fiscal year:
• Negotiate tax information exchange agreements and other agreements related to tax information exchange and associated agreements or negotiate revisions to existing tax
agreements as to maintain Bermuda’s tax
agreement relations with member countries of
the EU, G20 and OECD and other countries.
• Seek to keep Bermuda compliant with the
OECD tax standards especially during a period
of revisions to Bermuda’s domestic tax regime. And administering requests for exchange of
tax-related information on the by -request basis
received from Bermuda’s over 100 partner
countries.
I will now move on to c ost centre 49080, Compliance.
Mr. Chairman, t he Compliance cost centre is
responsible for encouraging and ensuring compliance
via powers executed through the Registrar of Companies (Compliance Measures) Act and other rel-evant Acts , most notably the Companies Act , the Economic Substance Act 2018, including ensuring adherence to the filing, registration and other corporate requirements of the relevant Acts, to inspect registered
entities for the aforementioned purposes and to investigate instances of a registered entity’s failure to compl y
with the provisions of the Registrar of Companies
(Compliance Measures) Act 2017 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. A nd the expectation of these international bodies is that Bermuda not
only has 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 increas ing number of technically
proficient individuals. The budget increase will be used
to pay salaries of staff who are currently being recruited.
Before I go on, Mr. Chairman, and this has
been a theme of my presentation today, it is important
to make a point that the success of the Registrar of
Companies while they are seeking to hire persons to fill
roles, in passing all of these international examinations
of which they have had over the past year, has been
achieved by consultants. Yes! We have hired consultants to ensure that we stay off international negative
lists. The same consultants the Opposition complains
about have assisted not 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 that Government has demon-strated time and time again through its prudent and deliberate attention to international evaluations.
I will move on to Analysis of Current Account
Estimates for this department on page B -128. Mr.
Chairman, I will refer to this page. The 2024/25 budget allocation showed an overall increase of $2.5 million
and as previously mentioned, the transfer of the Tr eaty
Unit resulted in a budget increase of $1.573 million. Additional increase in personnel resulted in a budget increase of $1.2 million, reflected in the Entity Registration, Insolvency and Liquidation, Real Estate and Li-censing sections. These increases are partially offset
by a reduction in the cost of professional services as the ROC moves toward full implementation of a revised
staff structure.
Mr. Chairman, there are no other significant
changes between budget estimates for 2023/24 and
2024/25 fiscal years.
Moving on to Revenue . . . which can be found
on page B -129. I would like to touch upon the revenue
generated by the Registrar of Companies. These
780 4 March 2024 Official Hansard Report

Bermuda House of Assembly figures can be found on page B -[129] and the department is forecasting an overall revenue of $76,508,000.
This is a decrease of $140,000, or less than 1 per cent,
on projected revenue over the original revenue esti-mate of $76,648,000 for last year.
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 stakeholders, new
transaction fees were introduced in 2023. In line w ith
the Registrar’s increasing regulatory function the proposed corporate regulatory fee, which was tabled for
first reading in this House earlier in February under the
Provisional Collection of Revenue Act [1975] will be implemented by 31 March 2024 and t his fee will be applied as an annual fee payable of $150 for local com-panies and $500 for non- local companies. This initiative is expected to add $6 million in revenue.

Manpower

Hon. E. David Burt: Moving on to Manpower, which is
found on page B -129, the department’s budget supports an establishment of 50 full -time positions. The importance and need for a further increase in resources has already been noted during this particular budget
presentation. And certainly we need additional resources to address the ever -increasing threats which
are critical to protecting key sources of revenue for the
Bermuda Government which in turn allows us to continue 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 liquidation were converted into substantive posts to generate
greater operational oversight, efficiency and cost savings.

Capital
Hon. E. David Burt: Mr. Chairman, Capital can be
found on page C -11. I would like to now turn to the new
electronic registry system which is in step with this Government’s modernisation efforts. The department introduced its online economic substance declaration platform in May 2020 and i mplemented 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 improve-ments in system efficiencies. These improvements
were initi ally expected to be completed in the current
year; however, some of that development work has been deferred. Additionally, the Registrar of Compa-nies 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

Hon. E. David Burt: As I mentioned, 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 that
are being exerted on our jurisdiction from the various
aforementioned regulatory and other bodies mean that the department had needed to review its organisational
structure and resources with a view of staying ahead of
the various international sanctions that can have a detrimental impact on our economy.
Having that initial planning instruction work being completed, and as I mentioned earlier the Cabinet’s
approval for the new positions, we note that the department is now engaged in its recruitment process. But
there is one other important thing that must be touched
on [and that is] in any department, the review of how
the department delivers services must 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.
Amendments to section 129A of the Companies Act 1981 to remove the requirement for a licence
for a Digital Asset Business licensed company 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 by the Registrar
of Companies is to accommodate the electronic regis-try so as to ensure that the legislative framework reflects the department’s ability to work in a paperless virtual environment. With respect to Bermu da’s ec onomic
substance 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
Companies (Compliance Measures) Act [2017] with a
view to streamlining the enforcement process.
There will need to be amendments to the Real
Estate Brokers Licensing Act 2017 to strengthen the
AML/ATF framework, to streamline the licensing process to ensure a high level of competence amongst licensed brokers and agents by increasing the minimum
exper tise. This one is particularly important to me: the


Bermuda House of Assembly 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. Unfortunately, Mr. Chairman, this is something
that I wanted to make sure was delivered this year. It is
not something that we have managed to deliver this
year, but it is something that I know that the Registrar
of Companies is actively working on and I know that
drafting instructions being completed and it is currently
being drafted s o we can go through this particular process which I am sure is welcome to your clients, Mr.
Chairman, but also to many clients who have to, of
course, file legal notices if they want to have a dentist
office or a lawyer’s office or a medical practice or lease
something and all the rest. There are a significant
amount of things which were previously in the Companies Act [1981] which we just need to get rid of to make
sure that these things can happen very quickly without
having to incur legal fees and others .
Additional work is to evolve Bermuda ’s bankruptcy legislation and bring the following in line with international standards.
• official receiver obligations;
• reduction of administration debtors and bank-ruptcy estates; and
• the period spent in bankruptcy for debtors and
bankrupts before eligible for discharge.
The Bermuda Government is committed to implementing beneficial ownership disclosure in line with
the European Union and anti -money laundering directives from the Financial Action Task Force. The ROC
has been tasked with designing and implementing a
beneficial ownership register and disclosure framework
transitioning the existing register and process from the
Bermuda Monetary Authority to the Registrar of Companies throughout 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
recommendations relating to beneficial ownership
whilst also building out an electronic portal which will
allow entities and stakeholders to access relevant information where appropriate.
Going forward the ROC will have the ultimate
responsibility for the receiving and sharing of information of beneficial ownership and every eligible entity
will be obliged to file details on beneficial ownership
with the ROC.
Moving on to proposed outputs for the Registrar of Companies:
• Increased disclosure amongst registered legal
entities in the new electronic beneficial ownership register portal .
• Transitioning of benefi cial ownership filings by
companies for the purpose of achieving appropriate related transparency objectives. • Streamline legislative regimes for the harmonisation of existing relevant exchange control
and beneficial ownership obligations that also
reflect the most current FATF recommendations.
Mr. Chairman, technology has also become an
integral part of how the department operates and consequently over the year, further enhancements are expected to be rolled out in the department.
• Establishment of a new website that will improve user experience and additional automation of application requests .
• Implementation of the liquidation/bankruptcy
module on the registry system which will facilitate online processing of corporate insolvency
platform.
• Development of the electronic platform for the
receipt of real estate licenc e applications to enhance efficiencies and streamline the process .
• Full migration of all entity data on to the e- Registration system and elimination of physical
files for the workplace creating a setting that is
as close to being paperless as 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 last year and although they are not perfect, as there are certain challenges in that department with the increasing workload
and staffing challenges that we have, but they have
significant, outstanding results for Bermuda on the international front. And I have had the privilege of witness ing their work firsthand and I am certainly appreciative for their continued efforts.
With that, Mr. Chairman, that concludes my remarks on the Registrar of Companies and I will now turn my head . . . my interest to Head 58 which is Interest on Debt . . . I am clearly getting a little bit tired,
confusing my words. But we are almost done.

HEAD 58 —INTEREST ON DEBT
AND GUARANTEE MANAGEMENT

Hon. E. David Burt: [Business unit] 5801— Debt and
Loan Guarantees, page B -131.
Mr. Chairman, the 2024/25 budget allocation
for interest on debt, Head 58, is $127.8 million. Of this estimate, $127.1 million represents ongoing debt service costs with the various debt instruments held by the
Government of Bermuda, while $400,000 is allocated to faci lity fees and other related costs. The remaining
$250,000 is for the costs associated with the manage-ment of Government’s guarantees.
Mr. Chairman, a key achievement of 2023/24
was the repayment, in December 2023, of $50 million ten-year senior notes for the people of Bermuda who
supported the Government with essential financing
back in 2013. This repayment has resulted in the
782 4 March 2024 Official Hansard Report

Bermuda House of Assembly interest charged to the Government being reduced by
$2.37 million per annum and there is no further refinancing of the $3.2 billion of debt until January 2027.
Moving on to the amount budgeted for guarantee management. The budget is set to reduce by $250,000. Throughout 2023/24, significant work has
been done to ensure the Fairmont Southampton project
guarantee matters are completed. As you are aware, ground was broken in January at the beach club. Equally the Morgan’s Point company has now been es-tablished and responsibility for managing and running the site is intended to be transferred from the liquidators
to the new company. Thus funding from the Government will now cease as the new company will source
external funding.
However, Mr. Chairman, work is continuing to
ensure that entities with loan or credit facilities guaran-teed by the Government are effectively managing their
obligations and are appropriately managing their finan-cial affairs. The diligent execution of work in relation to the establishment oversight of guarantees is consistent with this Government ’s commitment to ensuring appropriate and effective risk management, maximisation of
economic benefit and prudent economic and fiscal
management while supporting ec onomic growth. I say
all of that to say, that is the reason why there is $250,000 in that particular vote. Though work is com-plete on the matters related to Morgan’s Point, the transfer and . . . largely complete on matters related to
the Fairmont Southampton, what we must make sure to do is that for the management of these guarantees there is a need to make sure there is oversight on a regular basis. And that is what that $250,000 in that vote [is for].
Thus concludes my presentation on Head 58.
In conclusion, Mr. Chairman, I wish to thank all of the
teams who are part of the Ministry of Finance for their dedication and professionalism. There have been many challenges faced over the past year, as we all know, but this department has persevered under the
able leadership of the Financial Secretary.
This submission has highlighted the various
threats and challenges facing Bermuda. We will con-tinue to proactively address these matters to ensure Bermuda’s continued stability and security, remain committed to serving and protecting the people of Bermuda through fiscal prudence and effective management of our resources and extending economic relief
wherever possible.
Thank you, Mr. Chairman.

Thank you, Honourable Finance Minister.
We are in Committee of Supply for Estimates
of Revenue and Expenditure for the budget year 2024/25. We have just heard all the heads being pre-sented by the Finance Minister in relation to the Ministry

1 Official Hansard Report , 10 March 2023, page 916 of Finance. This debate is listed for four hours and is due to conclude at 7:50 pm which is in approximately
an hour and a half or so.
Is there anyone who wishes to speak in the debate?
I recognise the Honourable Opposition Leader
Jarion Richardson.
You have the floor.
Hon. Jarion Richardson: Yes, thank you. Thank you,
Mr. Chairman, and I thank the Honourable Minister , the
Honourable Premier, for his presentation this evening
covering all of the relevant heads under the Minister of
Finance.
I will open my line of questioning on Head 10,
Ministry of Finance HQ, under the heading General
Summary dealing with programmes and business ex-penditures. Would the Honourable Premier be able to
explain . . . relating to cost centre 20000, that cost centre’s label is Policy Planning and Management. In
2022/23 the actual expenditure for that was $5 million.
Then in 2023/24 it was halved, going to an original es-timate of $2.3 million and then it went up. It was actually
revised . . . $5 million was added to that expenditure.
The Honourable Premier has asked this Honourable
House for $2.6 million for that Policy Planning and Management area. I would like the Honourable Premier to explain why that number went up from $2.3 [million] in 2023 . . . that is, $2.3 million to over $7 million. And why
is he going to reduce it back to $2.6 million in 2024/25?
Also, I can ask the Honourable Premier, as it
relates to cost centre 20996 labelled Cyber Incident [2023], what the $3 million is for. Obviously, we have had quite a lot of information circulating around the community relating to the cyber incident, assum ing this
being the hack on government , and we have seen consequential changes to the operations of government based on that. Given that some $3 million was spent in the 2023 budget, if he could speak to that as we are now reviewing that process —[page] B -110.
Further, as it relates to cost centre 20010, Financial Planning and Control Unit, in the previous
1Hansard, the Honourable Premier had said that, “the
department has set objectives to provide support for the open budget process; enhance budget monitoring and . . . continue the development of budget preparation methodology website.” My question is, Did this take place?
Following on from that, as it relates to head . . .
sorry, not head. I am still on Head 10, but I am on cost centre 20030 relating to Domestic Affairs and Eco-nomic Policy. At
2Hansard [page] 918, relating to last
year’s debate, the Honourable Premier said, “This unit
provides research and analysis of economic and finan-cial conditions to help facilitate sound decisions on pub-lic policy and fiscal debt and guarantee management. The Unit also manages the relationship with credit
2 ibid., page 918


Bermuda House of Assembly rating agencies and assists other government entities
with addressing [financial] needs.” And represents the
Ministry on a number of quangos. Given the clear need
and importance of such a department, why is the Honourable Premier now reducing their budget by 32 per
cent?
Moving on, still under Head 10, in relation to
cost centre 20020, International Affairs and Regulatory, as well as 20110, Gaming Commission. The latter, that
being the Gaming Commission, had . . . I do apologise.
It was the former, International Affairs, had five strategic goals in 2023/24. Namely to reassess the supervisory framework including in relation to compliance with
AML requirements. My question to the Honourable
Premier is, Did that happen? And if so, what was the
result of evaluating the supervi sory framework for the
Gaming Commission?
Mr. Chairman, as we are well aware there are
no casinos in Bermuda at the moment. It seems the remit of the Gaming Commission is limited to regulating
casinos as they are on ships. We also have no betting. Undoubtedly, an additional spend of some $800,000 after spending $10 million last year on them requires indepth res ponse from the Honourable Premier.
Moving on, Mr. Chairman . . . and I will just ask
all the questions for the head and then I will take my
seat for responses and then ask supplementals as I see
fit.
As it relates to the performance measures, I
note that cost centre 20000 Policy Planning and Man-agement as well as 20010 Fiscal Planning and Control, and 20030 Domestic Affairs and Economic Policy have
performance measurements. However, what we do not
see are performance measurements for 20020 which is
International Affairs and Regulatory Unit and 20100 for
NAMLC. Now what we are seeing is an increase . . . a
46 per cent increase in funding for International Affairs
and Regulatory Unit. So it is curious that there does not
seem to be any specific tasking for them despite, again,
their 46 per cent increase in funding.
Further, I would like to ask the Honourable Minister, the Honourable Premier, Why aren’t performance
measurements accurately reflected in the Budget Book
especially as it relates to 20010, Fiscal Planning and Control Unit? We previously discussed (in my above
questions) a number of objectives that t hey had set out
last year and I am not sure if they are moving into this
year. And it also relates to 20020, International Affairs
and Regulatory, as well as 20110 Gaming Commission. Again, we are looking at fiv e strategic goals and
again nothing mentioned in the Budget Book. It is quite
important, given how much we are spending on these
items, that we know what they have accomplished.
I also have a question for the Honourable
Premier, under Head 10, Ministry of Finance [HQ]. This
Ministry, by the way, Mr. Chairman, is . . . the mission
statement is the Achievement of economic prosperity
and to ensure the financial security of Bermuda. It includes items such as formulating and adhering (this is the department objectives) . . . formulating and adhering the sound and prudent fiscal management. It pro-vides strategic direction; arrange all government borrowing; maintaining relations with credit rating agencies. But if you notice, Mr. Chairman, when you go on
to [page] B -112 under their business plan for the year,
their performance measures, they seem to be saying
that change in GDP is how they are going to measure
their own performance as well as changes to [government] net debt to GDP and [gov ernment] net debt to
revenue. These are pretty huge macroeconomic statistics. So I was curious to see that there were quite a
number of expectations or objectives that were mentioned in the Minister ’s brief but when it came to the
documentation, I did not see that. I would like the Hon-ourable Minister to speak to why his objectives are not
outlined in writing but these macroeconomic statistics are.
Moving on to Grants . . . oh, sorry. No. This is
a great example, Mr. Chairman. I note that both last
year . . . in last year’s Hansard and this year, NAMLC
was supposed to support the BMA in sectoral digital as-set business risk assessment. And I believe he spoke
to it a little bit, but I would like to know how much of that
was comp leted. Or rather, when will that be circulated
to the industry? It might not be to everyone’s awareness, but digital asset business in Bermuda is an industry that requires quite a lot of expertise and this is the
kind of document that actually informs the success of
the programme. So it not being undertaken at this late
stage of the programme means that it has been a problematic implementation.
Moving on to Grants and Contributions. Mr.
Chairman, under [page] C -18, 7066, I note that the contribution to the Caribbean Financial Action Task Force
has gone up by some $40,000. It is a curiosity considering we have been paying $68[,000] pretty consistently. I would like to know why it went up by $40,000.
And also what are we getting for that?
Also on page C -8 [sic], 6965, Corporate Income Tax Authority. The Honourable Premier is asking
for $1.2 million to stand up the new Authority. Insofar
as we are aware in the Opposition, there has been no
decision as it relates to the structure of this new Authority, when it wil l be stood up. When will the enabling legislation be brought to the House and other aspects like
that? So the extent to which this idea has been fleshed
out would be important to bring in this budget given that
we are being asked to allocate some $1.2 million to this
initiative.
There is a further question on this and it certainly relates to the Gaming Commission. It is fairly simple, though. The question is, Why are we continuing to
fund the Gaming Commission if there is no gaming to
supervise or regulate? It is a pretty basic question, but
it is one that I think we need to get to the heart of because for all of the numbers in this Budget Book, we
just need to get to some simple answers sometimes.
784 4 March 2024 Official Hansard Report

Bermuda House of Assembly Also I have a question relating to the Gaming
Commission. The Honourable Premier mentioned that
Butterfield Bank pulled the loan and that the Gaming
Commission did try to get another, but it could not. And
I would like him to clarify because that makes it appear
as if the Gaming Commission is not credit worthy. Butterfield isn’t the only bank in Bermuda. But if the other
three were approached and all three said we are not
going to give you a loan, that seems something to worry
about.
Last but not least, I see on page C -22, specifically in [line item] 76925, Corporate Income Tax Cap.
Grant. I would like, given that we are already allocating
$1.2 million to standing up the Corporate Income Tax
Authority, I would like the Honourable Prem ier to speak
to this additional funding.
With that being said, I will take my seat for
Head 10 and will likely have supplementals.
Thank you.

Thank you, Honourable Member . Just
could I check something?
You indicated you were talking to page C -8 of
the Budget Book when you posed certain questions on the Corporate Income Tax Authority and the Gaming Commission. I think you may have meant C -18 of the
Budget Book.
If I look at C -18 I see two line items, I see line
item 6965 in relation to the Gaming Commission and I
see line item . . . well actually, it is a repeating line item
6965 for the Corporate Income Tax Authority. That is
probably a typo. Are those the numbers in the right
hand column you are referring to? The $800,00 and the
$1.278 million?

Hon. Jarion Richardson: Yes. They are referred to
there, Mr. Chairman, and the last number I referred to,
which for some reason I have transposed to C -22, was
actually C -11. And it is business unit 76921 Corporate
Income Tax Cap. Grant of some $750,000.
Thank you.

Okay, thank you, Honourable Member.
Honourable Minister, those are some questions for you from the Honourable Opposition Leader in relation to the primary head, the HQ, and also the
Grants and Contributions.
I don’t know if you want to deal with those now
or if I should take questions from others.

Hon. E. David Burt: Mr. Chairman, you can take questions from others, if there are, but I would invite the
Honourable Opposition Leader to get as many of his
questions as he can. Because the answers are still being prepared.

As long as there is time . . . and we
have until 7:50 pm so there is still time left in the debate.

Hon. Jarion Richardson: Perfect. Thank you.
Perfect. Moving on then to Head 11 to Accountant General, Mr. Chairman . My question and comments relate to cost centre 21000, Policy Planning and
Management, which costs $1.2 million, and the purpose is to set the strategic direction in the general administration of the department.
Given that we often see in this Minist ry titles
like policy and planning and administration which are
separate to performance units, such as financial report-ing or compliance, or rather that we can infer certainly
just from the title certain performances, such as revenue receipting, but when i t comes to policy planning
and management and administration, and especially
when it comes to such lofty words such as strategic direction, I do think we have to boil it down a little bit. For
a price point of $1.2 mil lion strategic direction . . . it
seems a bit rich. So I am really interested to see what the policy planning and management is that 21000 cost
centre does relating to its strategic direction. Especially
given that this is Head 11, Accountant General and d efinitely the Honourable Premier can speak to why the
Accountant General needs strategic direction within
this 38 -person department.
With also that said, Mr. Chairman, the FTE said
that . . . oh, sorry, under FTE the Honourable Premier
said that there are 10 . . . and I stand to be corrected. I
believe he said that they are understaffed by 10. But
then on [page] B -115 there is a staffing request for 38.
I note that in 2023, the original, staffing full -time equivalent numbers were 40. It was then revised and it
stands now at 34 and now he is asking for 38 full -time
equivalents. So if he can just clarify what he meant by understaffed by 10 that would be appreciated.


Bermuda House of Assembly As it relates to performance . . . that would be
fine, thank you. Those are my questions on Head 11,
Accountant General.
Moving on to Head 12, Customs.

That is page B -118?

Hon. Jarion Richardson: Yes, that is right. Thank you,
Mr. Chairman.
My questions are relating to the revenue summary. There have been a number . . . now I am not sure
how we want to tackle this because it is made quite
clear in the Budget Book, if I can read this portion to
you, Mr. Chairman .

Please proceed, yes.

Hon. Jarion Richardson: There is a split somehow in
this department. It seems like the money goes one
place but all the management/responsibility goes another place within the government structure. And the
note says that, “ Due to the Government of Bermuda
[Organizational Restructur ing] . . . the Minister o f National S ecurity is to assume ministerial ac countability of
the Customs Department . . . and of those cus toms officers perform ing bord er control f unctions . The revenue
collection and reporting funct ions within the Custom s
Department rema in unchan ged, and are to be retaine d
by the Min istry o f Finance.”
I look forward to the Honourable Premier answering or clarifying these questions and these points.
Namely, there have been a number of complaints that
have been related to the . . . that seem to be related to
revenue collection and reporting amongst small importers in Bermuda. My question would be, Has the Minister looked into this and has anything been done to address these multiple complaints?
These complaints arise . . . or accusations of
unfairness, that is that some importers are allowed to
bring in certain kinds of materials and others are not.
And small businesses have to fight hard to be able to
bring in products. It would be interesting t o see if this
aspect has been picked up at all by the Honourable Premier, especially given that this would impact, in fact, our revenues in collections especially relating to Customs. Obviously, if someone is having a tremendous
amount of difficulty bringi ng in some products, it is going to detract from our revenue within that fiscal report-ing period.
Fewer boats . . . also, I have some questions
about this revenue increase. I note the revenue increase is up 3 per cent. I see a general increase at $6.8
million and this is on page B -118. We have noted that
Stevedoring Services has published reports sayi ng that
there are in fact fewer containers coming in. So it is a
bit interesting to see how our Customs duty is . . . how
we are making more money on Customs duty even
though we are bringing in fewer things. One of the explanations could be that our inflat ion is going up so that is how we are collecting that money. Which is a bad
thing. But I would be interested to hear what we are
anticipating, why we are going to get another $6 million
from imports when we are in fact importing fewer
things.

Yes.

Hon. Jarion Richardson: And start there. Specifically
on cost centre 38040 Compliance, staffed by five and
then going up to six. What are some questions relating
to issues of noncompliance being detected and financial penalties being applied? That is, How many cases
of noncompli ance has this department detected so far?
Have any financial penalties been applied to those parties who are noncompliant with the necessary regulation and legislation?
I would also ask for some clarification from the
Honourable Premier. In last year’s debate, at Hansard
[10 March 2023, page] 931, it seems the Honourable
Premier had reported that there were $49 million outstanding in debt owed to this department. But I a m
pretty sure I just heard him say there is in fact $79 million. So I am not entirely sure which number is the right
number. But I stand to be guided because obviously
that is quite a big swing.

Thank you.

Hon. Jarion Richardson: A further question. In his
brief, the Honourable Premier stated that there has been a change . . . or rather that 120 days . . . this relates to the debt situation. The compliance folks and the
inspectors under Head 28 Social Insurance, if an employer is tardy by 120 days, then it goes straight to the
786 4 March 2024 Official Hansard Report

Bermuda House of Assembly debt collecting team over at the Attorney General’s
Chambers. But I note that in, again, last year’s Hansard
or last year’s brief, the Honourable Premier said that
that time period was 90 days. So it appears that we
have gone from 90 days in arrears to 120 days in arrears. Given that we have now hired, or rather, that
Head 28 includes a full -time debt collector, I would have
thought that we would have been gaining more efficiencies in this department. But it appears as if we need
more time . . . or for some reason more time is being
given to those in arrears. It is a point of curiosity, if the
Honourable Premier can speak to that, that would be
quite helpful.
Moving on to Head 28, [page] B -121, Performance Measures, Mr. Chairman. I note that one of
these performance measures, specifically under business unit 38000, Senior Management and Administra-tion, says that we are going to summarise financial
transactions and input into QuickBooks within 20 days
after the end of each month. My question is, why is this
department using QuickBooks?
It appears from the pervious area, which was
Head 10 Ministry of Finance HQ, that the Oracle E1
system has had some $150,000 spent on it last year
and we are anticipating $175,000 spent this year. And of course, given that we are dealing with arrears in th e
numbers between $40 [million] —obviously, we are
waiting for the Honourable Premier to come back and explain it to us —between $40 million and $70 million
. . . it seems that QuickBooks is not the appropriate tool
for managing the affairs of the Social Ins urance team.
If the Honourable Premier would be able to clarify why
QuickBooks is in here. Are they in fact using QuickBooks? And are they transitioning off . . . I am hoping
that he finds that as shocking as I do and they are moving into a more enterprise scalable solution.
Moving on . . . I note at last year’s Ministerial
brief, and in fact he has mentioned it again, but last year
at Hansard, [10 March 2023, page] 932, I am quoting
here, “ An Actuarial Review of the CPF is planned for
this year as a review is required every three years per section 35 of the Contributory Pensions Act [1970].
This review aims to indicate the financial conditions and
long-term sustainability of the fund and to investigate
the potential financial implications of future contributions and benefit i ncreases to the fund.”
This was outlined to have . . . it was supposed
to be done last year. And given that the Honourable Premier has mentioned it again in his brief, I am assuming that it has not taken place. I would really like some clarification from the Honourable Premier if it has taken
place (because I believe he said it hasn’t), and when
exactly are we looking forward to this taking place given
that we obviously have already heard that it should be
done and it hasn’t been done.
Noting from Capital Acquisitions under
[page] C-11.

Hon. E. David Burt: Point of order. The Chairman: If you could pause there please, Honourable Opposition Leader.
Yes, a point of order, Mr. Premier?

POINT OF ORDER
[Misleading]

Hon. E. David Burt: The Honourable Member is clearly
misleading the House. The brief stated that the work has started in the last fiscal year, at the end of last fiscal
year and it is not yet complete. So it is not correct to say that it has not started.

Thank you for that answer from the Finance Minister.
Opposition Leader, you have got an answer to
that. Is that satisfactory? Do you wish to —

Hon. Jarion Richardson: Yes, I would note for the listening public that even though we have records of Hansard, unfortunately when the . . . Minister ial briefs are
not shared. So oftentimes the words just sort of flow right . . . unless you are keeping up shorthand, you
can’t keep everything.
I thank the Honourable Premier for that clarification. However, it strikes me as a bit demure though because we are talking about when things started and when things are continuing. The fact is that it is supposed to be . . . it has not been done. That is where my
point is.
With that being said . . . moving on to . . . I am
sorry. I was interrupted. I was going on to [page] C -11
with a question relating to . . . where are we? Head 28,
76925, Debt Management System. And I was looking forward to the Honourable Premier explaini ng more
about this debt management system. We see a spend,
or an anticipated spend for $249,000. And that is also quite key here because as we mentioned earlier under
the performance management, we are talking about
QuickBooks entries. So it is quite . . . about that between the Head 10 Ministry of Finance HQ spend on an enterprise system (Oracle E1) and then between our
spending on Head 28, this very specific department, on
debt management of $250,000 it is even more important that we clarify whether or not we are looking at
a financial QuickBooks solution for managing anywhere from $40 [million] to $70 million in debt.

Yes, I have it.

Hon. Jarion Richardson: Referring to cost centre
48000 Administration where we are seeing a 33 per
cent increase. So it is going from an original in 2023/24 of $956,000 to $1,267,000. That 33 per cent increase
is quite substantial. So I am looking forward to an explanation on that specific point.
Under Subjective Analysis, on [page] B -123,
we see Rentals in the amount of . . . or rather the request is for $366,000 for this year for the Office of the
Tax Commissioner. But I note that their rental on page
C-27 of the Budget Book is for the Perry Building. That
comes in at $361,000. My question to the Honourable
Premier is, What else is being rented? Why is there a variance between these two numbers?

Page C -27. In answer to the question
from the Honourable Minister, thank you.
Please continue. You have the floor.
Hon. Jarion Richardson: Thank you. Yes, thank you.
I would like to speak to Professional Services
under this Subjective Analysis on page B -123. We see
an increase of over 25 per cent, but we note at Hansard, that is last year’s brief by the way, Hansard [10, March 2023, page] 936. Let’s just pull that up, if you will
bear with me, Mr. Chairman .

So we are at page B -123 under Head
38, Office of the Tax Commissioner and the question
being posed is in relation to Professional Services in
the box which is right in the middle, and you are referring to the increase compared to last year’s statement.
Is that right?
Hon. Jarion Richardson: Yes. Well . . . because
there’s increases going up, but last year the Honourable Premier made the point of reducing the funding allocation to Professional Services by 21 per cent as part
of efficiency measures. So, if the efficiency measures
. . . I would like him to speak to why these efficiency
measures have lapsed, gone away or changed because we have gone from reducing by 21 per cent to
increasing by 27 per cent and that appears to be a variance in behaviour so I would like some clarification
on that.
Moving on to Revenue, Mr. Chairman. Specifically on page B -124.

Yes, 124.

Hon. Jarion Richardson: I note under revenue centre
8017 Payroll Tax, it is anticipated to go up by 13 per
cent. That is the receipts from payroll taxes, anticipated
to go up by some $68 million. If he could speak to why we are anticipating payroll tax going up by some 13 per
cent in this one year.
Equally . . . also, I notice under Land Tax, we
are going to get under . . . this was revenue centre 8027
Land Tax.

Yes, I see it.

Hon. Jarion Richardson: And it is going up by $4 million. That is a curiosity. Obviously, land tax . . . I am just
curious about how he is estimating that number. I will
leave it for him to explain.
Moving on to Capital Acquisitions. If you bear
with me while I just change the page.

[Inaudible interjection]

Hon. Jarion Richardson: Thank you.
Thank you so much, Honourable Minister
Furbert, for saying I need to come to a class. Your dig-nity is noted.

One up from the bottom, yes.

Hon. Jarion Richardson: Yes, thank you. I am seeing
the spend on $974,000 in 2022/23 and an original estimated spend of . . . which was matched, by the way, of
$855,000 and now a request for some $500,000 of additional funding for this programme. If the Honourable
Premier could speak to this programme. Obviously,
there is quite a lot of money , speaking to this programme and its benefits. That would be appreciated.
Now moving on to Performance [Measures] on
[page] B -125.

Yes.

788 4 March 2024 Official Hansard Report

Bermuda House of Assembly Hon. Jarion Richardson: I just want to make a point
on this one, Mr. Chairman. Ever since I have joined politics and participated in the Budget Debate, there is one
thing I have noticed . . . or rather, I have noticed a troubling trend in more than a few cases where performance measures are very difficult to read or understand . . . or they don’t seem to be tied in to a Minister ’s
brief or they refer to just strange measurements, or they
are outdated. Things like that. And I just wanted to note
that under this Head 38, these perf ormance measures
are exceptionally clear and well laid out and very auditable and can be checked and crosschecked. I just
wanted to turn to everyone who participated in the generation of Head 38’s performance measures and say
this is exactly the standard of management that we
would expect. So I just wanted to thank them for their
incredible professionalism. Thank you.

I think the PS can pass on a compliment on your behalf. Yes, thank you.

Hon. Jarion Richardson: Moving on to Head 39 Registrar of Companies. I have to probably first declare a
bit of interest in this one, having been a compliance
manager for a local corporate service provider working in compliance to this day and having at one point
worked for the R egistrar of Companies on a specific set
of projects, that I am familiar with this team and this
specific need. But what I wanted to do is just make it
absolutely and abundantly clear to anyone who hasn’t
fully embraced what the Honourable Premier said just how central and key a role this department plays in our
international financial services . . . everything from
charge searches, everything from maintenance of key
records.
The Honourable Premier mentioned that it is
moving from a repository to a regulator. And even in its former role it was incredibly key to the entirety of Bermuda ’s success in international business. To that end I
think this is an area where we always have to pay very
specific attention, or I would hope that Parliament always pays very special attention, because really the
things that make us successful in our econ omy . . . I
certainly do not attribute it 100 per cent to the Registrar
of Companies, but a huge part of it comes out of the Registrar of Companies.
With that being said, I just wanted to speak to
the move of the Treaty Unit from the Minist ry of Finance
HQ under Head 10 to the Registrar of Companies Head
39. That is a good move. The Treaty Unit, the kind of information that they have to acquire is typically stored
at the ROC and if not the ROC under its new Compliance Measures Act has the ab ility to get those records
quite easily. So that is a good move. But I would like to
ask, given the ROC . . . we are anticipating a $12 million spend in this upcomi ng 2024/25 [fiscal year]. I note
that the ROC recently announced that it is moving its domain from @gov.bm to @rocbermuda.bm. Given the
recent cyberattack and hack and outstanding questions relating to what kind of information was accessed or
has been maybe taken from Government , this is . . . it
is a big question, Why are we moving from the @gov domain to the @rocbermuda.bm domain?
Further on . . . I have some questions specific
to the brief where the Honourable Premier said that
there are some 16,000 entities on the Register. I believe that is identical to last year at Hansard [10 March
2023, page] 937. So, if the Honourable Premier can update us. Are we still sitting at 16,000 flat on the Register
or has that number changed in the year? I would hope it has changed and I hope it goes up.
The brief also said . . .
[Inaudible interjection]
Hon. Jarion Richardson: Sorry?

[Inaudible interjection]

Hon. Jarion Richardson: Thank you, Honourable
Premier, for that assistance. The brief said identical fees on Hansard
[page] 939 . . . if anyone in the listening public is wondering why I keep stopping . . . there is just a lot of interruption.

A lot of birds.

Hon. Jarion Richardson: A lot of birds.
The brief said identical fees. Oh, I will move on
to Head 39 Registrar of Companies, under General
Summary. We do see the department’s budgeting has increased . . . has doubled in the space of two years.
Starting at $6.3 [million] in 2022/23 moving all the way
up to $12 million in 2024/25. This is often called (in my
world) the cost of compliance. It is quite difficult to maintain our compliance with international norms. But it is
just as hard for regulated companies in Bermuda to do
the same. Compliance costs are going up across the
board in Bermuda which makes the necessity to remove red tape so key. I just wanted to make that point.
To that end, I would like to speak to cost centre
49050, Real Estate and Licenses.

So we are still at page B -128 under
Head 39?
Hon. Jarion Richardson: We are still at page B -128,
where I am seeing doubling of the expenses under Real
Estate and Licenses. That is an interesting space, Real
Estate and Licenses, obviously dealing with real estate
brokers and agents and the like. I don’t think we are
seeing that much more activity from real estate agents
and brokers. But I would be interested to hear what the Premier justifies or explains how that number doubles
up.
Also, another question relating to 49000 (that
is, business unit 49000), Policy Planning and


Bermuda House of Assembly Administration, Mr. Chairman, and this goes back to my
earlier points where is see a lot of these line items in
this Ministry for a strategy. This one includes planning,
strategic direction, administration and other activities
associated with the daily operations of the Registrar of Companies. It is currently estimated to require some
$6.1 million in funding. I would like the Honourable Minister to be able to speak to that. Again, $6.1 million.
That is just for this very specific head for (again) plan-ning, strategic direction, administration. And we are
seeing similarly described departments across his Ministry.

[Inaudible interjection]
Hon. Jarion Richardson: Yes, a lot of planning.
Under Subjective Analysis, we see Repair and
Maintenance increased. We are still on, by the way, B -
128. I am seeing an increase in Repair and Mainte-nance, 162 per cent increase on that spend. That is an
additional $370,000 going towards repair and maintenance. There is a question here, under Head 39 Registrar of Companies . . . the Registrar of Companies is
obviously an office space team that works with comput-ers and legal documents and requirements. I am just not sure what they are repairing and maintaini ng. So I
would be really interested to get that response back from the Honourable Premier.
Also, Financial Services is $5.5 million. The
Honourable Premier in his brief spoke to hiring a num-ber of consultants to assist with getting into compliance with international norms. But at the same time I am seeing not only an increase, or a rather large number for
Professional Services of $5.5 million, but there is a salary increase of 50 per cent. It is $5 million that is being
requested for 2024/25. So I am a little confused as to why the Professional Services number is staying right where it is and th e salary number is going up given the
. . . I am pretty sure in the brief the Premier said the
point is to hire more people thereby reducing the number of consultants . Obviously, that would have an increase in salaries. But what it looks like is that the number of consultants stays the same and the salaries go
up. So some clarification there would be great.
Also Rentals. I see that Rentals, again we are
still under Subjective Analysis under B -128. I see that
we are budgeting $250,000 and it was . . . $250,000
was estimated last year and only $34,000 was spent.
Given that the Premier’s brief spoke to office r ent and
increasing the space for this department . . . we are obviously adding a lot of bodies to this department, and he had already asked for $250,000 last year but only
used $34,000. Is it fair to say that they are still looking
for a home? I am interes ted to know how that is going.
This department, again, is quite key to the operation of Bermuda, Inc. so they should definitely be secured as quickly as possible.
Also under Revenue Summary. I note that we
are anticipating, or rather the Premier’s Budget Book is anticipating (I am on [page] B -129) a 10 per cent drop
in Exempted Companies Tax. Exempted companies very much being our bread and butter in this space. We
are seeing a drop of some $6.2 million in expected revenue. I am curious to know why we think that o ne is
going to go down. Especially when we are anticipating
increases in so many other lines of revenue.
I note in that very same Revenue Summary under revenue source 8227 Regulatory Fees Other. That
is a new area, and I see an expected revenue of $6.3
[million]. Can the Honourable Premier speak to what that is?
Lastly, I note under (for Revenue Summary)
8267 Segregated Accounts [Fees] and 8266 Exempted LLCs [Annual Fees]. These were marketed quite aggressively for our clients across Bermuda and is a way
to bring clients into Bermuda. These are corporate
structures that have certain kinds of legal and tax benefits and I just note that it seems to be quite . . . our fees
coming out of that seem to be quite low. So I am just
wondering if the Premier could speak to why the uptake
was so slow . . . or if anyone in the ROC has ever mentioned why we don’t seem to be doing very well in those
specific areas. Especially given how much work we
worked on to get those basically in operation.
Also under Performance Measures. I am now
on [page] B -130. I will note that we have . . . on the very
last row, under the business unit Compliance. And I
hope my colleagues in compliance do forgive me for
this line of questioning, but I see some 240 onsit e and
desk -based or offsite inspections of registered entities
anticipated. Given the number of compliance professionals that sounds about right. But what I am seeing is some 15 actual on- site of real estate agents and brokers and that number seemed a bit low to me. So I was
wondering if the Minister could speak to how those targets were set.
Great. The last one I have is under Head 58
Debt and Loan Guarantees. I note that net debt is up
$54 million last year and budgeted to increase another
$38 million this year. My question to the Honourable
Premier —it is my last question, so I am sure he can
have a field day with it —is, What is this Government ’s
plan to pay down the debt?
Thank you, Mr. Chairman. Those are the questions I have.

Does anyone else wish to speak in the
debate?
Honourable Premier, back to you for answers,
I think.
While the Premier is preparing, this is just to
remind the listening audience and Members that we are in the Committee of Supply for Estimates of Revenue
790 4 March 2024 Official Hansard Report

Bermuda House of Assembly and Expenditure for 2024/25. We are on the debate regarding the Ministry of Finance and the heads thereunder. We have been hearing from the Honourable Finance Minister, Premier David Burt and from the Opposition Leader Jarion Richardson.
Premier, you have the floor.

Hon. E. David Burt: Thanks, Chair. Could you let me
know what time this debate is expected to end?

Yes, 45 to 50 minutes.

Hon. E. David Burt: Thank you.
Of course there were a number of questions.
The Opposition Leader —it must be from our Florida Air
Academy days —speaks really quickly, so I am not entirely certain if all of the technical officers were able to
catch all of the questions.

[Inaudible interjections and laughter ]

Hon. E. David Burt: What happened, Craig? What are
you laughing at?

School mates ?

Hon. E. David Burt: Yes, we did go to high school together.
I will try my best to answer as many questions
as he posed, but I am sure that if there are questions
that are not answered, I am sure that he will ask more.
We will start on Ministry of Finance Headquarters, Head 10. I think the first question was Policy Planning [and Management]. He said $5 million was halved
to $3.2 million and then revised upwards to $7.9 million,
and what was that for? The significant incr eases in
costs that were noted were due to the corporate income
tax and the need to implement that. And so, this was
the funding for the external bodies that were used. Yes, read consultant into that. Consultants assisted the Government in ensuring that we could deliver a well -regarded corporate income tax Bill. I am sure the Oppo-sition Leader would know the Government’s efforts and
work in this area have been applauded by the wide
scale of our international business sector. So, that is what that was for.
There was a question in regard to [the] Cyber
[Incident 2023]. This was the Ministry of Finance con-tribution on remediation efforts paid to consultants and
others to assist in returning Government systems back
to operation.
The next question he had I think was under
20010 Fiscal Planning and Control. And the question
as recorded is, Did we meet objectives via the budget brief? I can speak to [the] budget website. Yes, the
budget website was updated with further features. Inclusion of department admission objectives and detailed funding allowing the budget process and budget
preparation process to be more digitised and enabling us to ensure that we delivered this budget on time with
a little bit less stress for the team up ther e in the Ministry of Finance who put together the budget. And with
the learning from this year, I am sure it will get better
for even next year as that is the site that is used. And
as you will see, there is a constant thread of the contin-ued investment in digitisation of various processes.
In addition to that there was a question of
whether or not the open budgeting items were met. The open budget process is outlined every year in the PreBudget Report. I will ask the Opposition Leader to go
ahead and refer to that as there are multiple part s of an
open budget framework, which was put into place by
the former PLP Government in 2011 and known to be
maintained through the time that the One Bermuda Alliance was in Government. But tasks would include the
Pre-Budget Report, Ministerial Statements to the
House on Government’s financial performance, also a
reduced outline of the budget in easy -to-read format so
that persons can understand what is inside of the
budget rather than the technical language, and other
things that the Honourable Opposition Leader can go
ahead and review as they are spelled out annually in
the Pre- Budget Report, which is tabled in the House.
And the question about enhanced budgeting
and monitoring control, or whether or not these matters were achieved. Absolutely it was achieved as indicated
by lower budget deficits than originally projected and continuing on that level. And you will note that , as the
Fiscal Responsibility Panel has indicated, that expenditure has been largely kept in check and increased revenues have flowed towards deficit reduction.
It says . . . I am trying to get the questions as
best as I can. I think there was a question around Domestic [Affairs and Economic Policy] when dealing with
Head 10, and there was a question: As analysis of economic decisions is important, why are we spen ding
less? The response is that the budget is being reduced due to unallocated costs. The actual cost for 2023/24 is
$194,000, and therefore compared to actual costs the current year, there is an increase of $100,000. There
are no issues relating to deliverables from this particular department.
[Regarding] the ask for the work plan for the
Gaming Commission, I will go back to page 36 of the brief to outline the work plan of the Gaming Commission as it was covered inside of the brief, as were a
number of questions that were covered in the brief. A nd
the funding will support six employees and [the] work
plan, which consists of continuing to address the issue
of providing banking services to the casinos, which is
critical for casinos operating in Bermuda, reviewing licensing and regulation of online gaming, and providing
support for problem gaming via the help- line.


Bermuda House of Assembly It is important to note there, of course, he says,
Why are there no performance measures for the Gaming Commission? The Gaming Commission is a grant,
so those things are managed through the reporting that the Gaming Commission would give to the House. But the Gaming Commission will be managed to ensure
that they adhere to their work plan. And just because it
is not ins ide of the Budget Book does not mean that
these things will not be managed. And of course, it is evident that not every single objective can go into the
Budget Book.
I think there was a question in regard to why
we are still running the Gaming Commission. I will just answer by saying although there is continued work going on dealing with the issues of banking, the proceeds
of casino gaming . . . Number one, the Gaming Commission manages things that are outside of casino
gaming certainly. Number two, it is a strong part of our
regulatory regime as it is a body that performs part of
NAMLC and is considered a risky sector, so it needs to
have adequate monitoring in place f or our international
assessments, which is pretty important. I think that it is
also important that the work continues.
So, I understand the challenges faced, but I do
not know what alternatives the Opposition would have
in that particular case and instance. So, the Government is running on a far reduced work plan than normal.
They are running at a bare -bones establishment. Unfortunately, this has resulted in redundancies at the
Gaming Commission and others. But it is important that
their core activities continue as they do have an im-portant part to play in our ongoing efforts to be a credible and relevant jurisdiction when it comes to our anti -
money laundering and counter -terrorist financing matters because it is an independent regulator.
There is a question as to why the loan was not
extended for the Gaming Commission. The best sense
that I can give is that it is a timing issue. I think we can
all remember the banking crisis in early 2023, which
made banks very risk -averse, and therefore l ocal banks
(which, like many other banks, are under considerable scrutiny and especially Butterfield Bank, which is a New
York Stock Exchange traded bank) did not want to take
on sectors and business deemed as having high risk. By the middle of last year, it was understandable that
the progress towards the banking of casinos . . . not in
any small measure due to the same crisis that was en-countered by multiple banks in early 2023.
So, from the perspective of the Government,
we are not going to let the actions of the private sector stand in the way of trying to make sure that we deliver
the things that we need to do and remain compliant in
our international objectives. And so, we cou ld have
funded another guarantee, and gone to another body,
and gone through that, or we could have just returned
back to what happened four or five years prior, which was that the Gaming Commission was funded by a
grant of the Government of Bermuda, which was done in every year that the Gaming Commission existed un-der the One Bermuda Alliance.
There is a question of why objectives are not
specific and their macroeconomic measures included.
The Ministry believes it is right for the Government to be measured on both macro and micro measures.
Other objectives are managed internally not just necessarily including the Budget Book as you understand the
Ministry of Finance headquarters itself is to oversee the numerous departments that exist inside the Ministry of
Finance, and the performance measures are numerous in the various other departments. Headquarters is there
to make sure that we monitor and plan and strategise
to ensure that all of the various departments are working and functioning in a certain way. But the performance measures are tied to, I guess I would say, the
vision. And we speak about a strong economy and economic growth and making sure that we have the conditions to make sure that we continue with a strong economy.
There was another question. I think [it] was,
What was the result of reviewing the Gaming Commission’s framework in 2023/24? The Gaming Commission’s review of the lottery’s framework together with
their regulatory powers. Proposals have been consulted on and submitted [for] the Ministry of Finance’s
consideration. [The] gaming regulatory powers’ expanded lottery’s proposal is under review. The Gaming
Commission has been advised that Bermuda’s commitment to the financial services sector will certainly be
prioritised, and in that regard, there are a number of
items on the International Affairs and Regulatory unit’s list regarding financial services in the Registrar of Com-panies regarding compliance with international standards. The Gaming Commission’s proposal s would be
advanced in tandem with those proposals and also in
the support of the above. The Ministry of Finance, together with the leadership of the commission, has also
met with all persons in the banking sector to verify
whether or not additional revisi ons would be required.
As I think I indicated in the debate previously in
this Honourable House, they had said, None. I made
sure that I stated for the record what was communi-cated to us as Members of the Opposition had liked to
speak about interference and other matters in gaming. And there was a, you know, inference that was stated
by the Opposition and repeated by the other Member
of the “combined opposition,” the daily newspaper,
which stated that, you know, unnamed sources —their
favourite thing to say, unnamed sources —say th at the
issue with gaming is that the Minister of Finance is in charge of gaming, and he is also the Premier. And as I
said when having direct conversations with our overseas partners, who are the ones that are the correspondent banking relationships, which are the ones
that are most important contrary to what was reported in the daily newspaper, they said that this was regarded
as a strength of our regulatory regime, and they thought
that it made it more sound not less sound as it would
792 4 March 2024 Official Hansard Report

Bermuda House of Assembly give additional impetuous to ensure that the credentials
and the standards of the regulator were upheld at the
highest levels. So, I hope that the second time I said
that . . . I am sure it will not make it to the press; it will
probably just be the same r ehashing of old stories. But
I just want to make sure that that is made clear, Mr.
Chairman, to Honourable Members who are here today.
Just as a further note, as I am reading typing
that is popping up on my computer in regard to the outcomes, we will determine the necessary possible revi-sions to ensure that the gaming sector model can move
forward and be banked.
There was a question as to why there are no
performance measures for the International Affairs and
Regulatory Unit. The International Affairs and Regulatory Unit is presently measured under the external measurements indicators that sets down targets for external ratings agencies. A sovereign rating annual rating takes into consideration matters related to policy
and how Government institutions manage the project. This is the case for all policy -making inside of Government. As a note, that body supervises a number of various agencies of which, of course, the measures are recorded in other departments. The unit also assists a wide range of Government departments in meeting
their objectives.
I will go to the question of grants. To what extend has the agency been flushed out as this is being
budgeted for $1.28 million? Work was conducted since
September 2003 on the design of a targeted operating model for an administrative entity for the corpor ate income tax. OECD administrative guidance has been re-viewed in addition to multijurisdictional assessments of other tax authority structures, and legislation and internal stakeholders have been consulted. Cabinet was ap-prised of progress in October 2023 and will shortly receive a memo on recommendations from the Ministry
on this matter. There will likely be some form of discussion or consultation paper for the public in the exact
same way that we followed the model for the corporate
income tax where it w ent through multiple rounds of
consultation. And the original timelines have been shifted back with legislation, and expect to be tabled in the House of Assembly in the next parliamentary session which begins in May of 2024. And legislation is
likely to co ver matters such as the legal structure, governance, function of the entity, et cetera.
Hold on one second if you could, Mr. Chairman.

Yes. For the benefit of the listening
public, we are currently in the Committee of Supply for
Estimates of Revenue and Expenditure for the budget
year 2024/25. This specific budget is on the Ministry of
Finance. There is approximately 30- odd, 35- odd
minutes left, and we have been hearing answers from
the Minister of Finance, the Honourable Premier in relation to questions posed by the Opposition Leader, Jarion Richardson.
When you are ready, Honourable Premier, you
have the floor.

Hon. E. David Burt: Thank you very much, Mr. Chairman. Sorry, as I am getting old my back is not as good
as it used to be, so I have to, you know, get some additional support. So, here we go.
The next question, I think, is could the Honourable Premier please speak to the additional funding for the corporate income tax [CIT] authority. And this is under capital. The $750 million capital budget is the CIT
authority and the initial funding set as ide for IT and software systems. So capital grants are being awarded. As we know there is going to be a need to stand up this
particular body. We know that there is, you know, tim-ing that is related to all of this. We know that there are
certainly going to be some activities that need to take
place this year. Significant activities need to take place
next year, but we want to make sure that we get the
core items up and running in this year.
Moving on to cost centre 20100 in the office of
NAMLC, the Opposition Leader asks how much of the
digital asset business risk assessment was completed
by the BMA supported by the office of NAMLC. When
can the industry expect a report on this assessment to be shared with them? The answer is this risk assessment was completed in late 2023, so the budget
presentation of the technical report on the findings of
this risk assessment had been prepared. NAMLC has
ratified the report and constitutes it prepared for submission and consideration of the Cabinet. Simultaneously, a redacted version of the report is in draft form
for the purpose of publication. It is hoped this will be
able to be published shortly after Cabinet is offered opportunity to consider the technical report and the associated recommended items.
Grants and Contributions, [page] C -18. Why is
there a CFATF increase from 68 to 100,000. What is .
. . to this increase. The financial secretary is chuckling
because when she told me that CFATF had asked to
pay more money, I said no. And she said, We have to
because we are a leading voice in CFATF and have some of the best rankings in different things and partic-ipation, and they need to increase their funding. So, reluctantly the Minister of Finance did agree after being
pressured by the financial secretary.
But the answer is Bermuda is a member of
CFATF, which provides training and other forms of technical assistance to its member countries. The size
of the assessment teams required for the fifth round of
mutual evaluations are larger than was required for the
fourth round of mutual evaluations, and therefore
CFATF has started staffing up to properly prepare. Also
[it] needs to reflect the salary and benefits increased for
CFATF staff to help them to retain qualified staff which
we all know is a particular challenge inside of the compliance space. CFATF works closely with its members


Bermuda House of Assembly to ensure their AML, CFT, and CPF regimes are robust.
The contributions will also go towards defraying the
cost of CFATF secretary and operational expenses to
provide the technical expertise required by the region.
Question regarding performance measures for
NAMLC. Is the regulatory unit at NAMLC presently
measured under external performance measures? The
House advised that rating agencies do not just
measures fiscal and economic performance. They also measure public authority’s approach to policy -making.
Notwithstanding the above, the Ministry of Finance is
working with the Attorney General’s Chambers to update all of NAMLC’s operational matt ers given that we
work hand in hand with the Attorney General for the legal framework.
[Inaudible interjection]

Hon. E. David Burt: Thank you, Mr. Chairman. If I can
now move on to Head 11, and the question, I think, was
[about] costs under 2100, and what does it do for stra-tegic direction? The answer is the section is primarily
responsible for the administration department. The
budget of $1.3 million is primarily for rent, utilities, stationery, salaries, the four staff members, and the one assistant vacant post for the assistant accountant general for operations. The strategic direction for the department is direct ed by initiatives coming from the Ministry of Finance Headquarters.
So, let me just give the Opposition Leader a little insight. The Ministry of Finance has biweekly senior staff meetings. We also have individual meetings that
will happen with the various department heads, which
are mainly handled by the financial secretar y. The work
plans that we have, you might have an idea . . . You
might say, I want to do online payments, but your idea of online payments has to be translated into a work plan, policy, planning, and all the rest. That is what happens. And that is what happens throughout all of the
Ministry of Finance.
We have multiple different stakeholders,
whether it’s the internal stakeholders, which will happen to be this parliament and the country, or whether
or not the external stakeholders such as the various rat-ings assessment agencies or the international bodies
that examine us. And so, I do note there were questions
in regard to what planning is going on. There is a requirement at that level, which are not operation levels,
which are leadership levels, to ensure that they are doing the work to make sure that we can carry out all of
the things that are necessary to do in any given year or
series of years. And of course, sometimes you have to
push back on the Minister and say, We are not going to
be able to do this this year if we have multiple things ,
and all the rest. And so that is just the very nature of
the way that these things work. There is a question regarding staffing levels.
There are currently 10 vacant posts. The revised
2022/23 FTE [full -time equivalent] includes temp staff. For 2024/25, some vacant positions were partially
funded, which resulted in a total staff complement
showing as 38 instead of the total as per establishment
list of 40 full- time equivalents.
If I may, Mr. Chairman, I am happy to yield to
the Opposition Leader as I may have been trying to
nourish myself and did not get exactly the question regarding Customs split between Finance and National
Security. If the Opposition Leader could clarify the
question—

Yes, I thank the Honourable
Premier for the clarification opportunity.
My question as it related to the separation of
duties between . . . bear with me . . . Customs and the
Minister of National Security was exemplified in the
question about a number of complaints that had been
raised in the public . . . about a number of complaints
that had been raised to me specifically as well, about
unfairness for some importers allowed to bring in things
and others not allowed to. And so, my question was,
Where does this fall? Whose area of responsibility is
this bec ause this does relate to revenue collection? But
I take the point. I stand to be guided by the Honourable Premier.

Thank you, Honourable Premier. You
have the floor.
Hon. E. David Burt: Thank you. [It is] a good question
because it is something that needs to be clarified.
Those things would typically fall in the Ministry
of National Security that manages matters related to
borders. Yes, we do have revenue collection. It is recorded in revenue under here, but it is literally just revenue. So, we are responsible for the polic y, et cetera, all
operational matters, all the different things, et cetera,
are enforced and handled by the Minister of National
Security. But that does not mean we do not work together.
You would have noted the statement from Customs and noted the statement that, of course, 99 per
cent of shipments are cleared with no question. But we do understand there are continuing matters that we
have to deal with in this Government’s view. And the Throne Speech this year was “Serving the People.”
And we are just going to continue to work to get better at certain things. But I think it is important the Opposition Leader must also note that Customs is having an
enforcement role to play as well to ensur e that revenue
is protected, to ensure that laws are followed, and to ensure that contraband and things that are not contrary
to law are brought into the country.
So, there is a delicate balance. But if he or his
Shadow Minister responsible for National Security
794 4 March 2024 Official Hansard Report

Bermuda House of Assembly wishes to speak with the Minister of National Security
or to write to us on anything specific, we will happily try
to respond with any specifics that he may have.
The answer is certainly that Customs is tasked
with dual responsibilities of collecting and safeguarding the revenue and controlling the cross -border movement of persons and their goods including the enforcement of provisions of importation and exportation of
goods. Revenue collections is proper to the Ministry of Finance. Border control is proper to the Ministry of National Security. And the Customs Department Act [1952] was amended effective 1 April 2014, and I can
assure you that the Progressive Labour P arty was not
the Government at that time that that happened. [Con-tinuing on] . . . making provision for the Minister of National Security giving instructions and directions to cus-toms officers for exercising border control functions.
Has the Minister looked into or done anything
regarding complaints regarding inequitable treatment
from small businesses? Absolutely! And the Minister
has consulted myself [and] has consulted with the Col-lector of Customs. And where there are spaces where
I do not believe that fairness is happening inside of the
contours of the law, I will make my views felt to the Collector and the Minister of National Security at the same point in time. But I, you know, I am not going to comment on specifics on various cases. What I can say is,
as I repeated before, if the Opposition Leader has spe-cific items, I am happy to provide those specific answers.
What accounts for the projected duty revenue
increase to $6.8 million? And that is just based on current trends. It consists of increased economic activity
that is expected this year with, of course, increasing construction projects —not all of them are dut y free —in
addition to just continued economic growth and recov-ery. Members listening would know that Bermuda rec-orded its fastest GDP growth in, I will call it, 21 years in
2022. The last time we had growth that fast was way
back in the early 2000s, and so we are anticipating that
revenue collections will continue to grow.
It is important to know that customs duty revenue was depressed due to the significant number of re-bates that were done to keep fuel prices frozen. But we have seen continued amelioration with fuel prices, and
expected that to continue despite the fact that OPEC
has extended its production cuts for another three
months because they have not seen prices rise despite
released tensions. And this, of course, is due to increased production coming online especially from a major CARICOM country named as Guyana tha t has
some of the largest proven oil reserves per capita and
is continuing to increase its oil exports.

[Inaudible interjection]

Hon. E. David Burt: [What]?

[Inaudible interjection] Hon. E. David Burt: They are continuing to increase
their oil exports. Do not go there. You know. Come on
now, Jarion.
[Laughter]

Hon. E. David Burt: So that is that. I think on Head 28
there was a question in regard to Social Insurance, and
I thought I made it clear inside the brief. If you want to
clarify the question . . . Was this about recharge, or do
you just want me to go ahead?

No, I think we started down
the road but read the brief, and so I think we discontin-ued that question. I am not even sure how he got it.
Hon. E. David Burt: No problem. All right. Oh, maybe
it was . . . Okay. That is fine. Either way, page 53 of the
[brief] . . . We can confirm the costs are recharged back
to the fund. So, all of the operational expenses of the Department of Social Insurance are not an expens e of
the Consolidated Fund even though they are paid out of the Consolidated Fund. They are recharged back to the Consolidated Fund under the Contributory Pensions Act 1970.
There was a question on, I guess, 38040, noncompliance being detected so far and any penalties is-sued. I do not have specific information. I am happy if
they want it to be an official question that wants to be
submitted so we can provide that information. But one
of the things that I can say is that as we are moving, as a reminder, there was a restructuring of the Ministry of
Finance Headquarters.
One of the things in the restructure of the Ministry of Finance Headquarters was adding a position of chief operating officer. The chief operating officer has
been charged with working with various departments
inside of the Ministry on a revenue collection basis to
enhance that collection and to enhance these particular
matters. We first started with the Office of the Tax Commissioner, which of course is a very large collector of
revenue for the Government. And now we are moving
those things on to the Depar tment of Social Insurance
with the investing of a debt management system similar
to what we have seen over at the Office of the Tax
Commissioner and ensuring that we can go ahead and
do this.
In 38040, it says last year’s debate $49 million
outstanding. This year’s debate $75 million. On the


Bermuda House of Assembly difference, I think that I did cover that inside of my debate. The current outstanding debt is $71,514,400. The
number which is being stated this year is inclusive of
$21.6 million that has been included . . . that was included in this year’s total debt due to a mandated reporting policy. The outstanding debt increase on active
accounts by $804,000, or 1.6 per c ent.
Just for the Opposition Leader’s benefit, we
have to make sure that we state things in regard to accounting centres and the Auditor General sometimes
makes the corrections in other types of items. This is something that is similar to, you will remember the hubbub about two years ago where all of a sudden there
was some assumption that the Government just tabled
or increased the debt to the hospital (or a guarantee to the hospital) by $500 million or something like that. And
it was just that the Auditor General required us to list the total guarantee amount for all the payments that
Paget Health Services would be paid over the time rather than the principal amount which was previously
recorded and previously acceptable to the Auditor Gen-eral. Accounting standards changed and updated and
all the rest and so we just have to follow through it. So
that is the thing. There is no actual real increase. It is
just the specific reporting and the new things that have to be reported there.
Moving on, Mr. Chairman, I guess there was a
question of . . . the situation (it says) if over 120 days it
then goes across to the Attorney General. Last it was
90 days. Why is this the case especially with debt collection departments . . . debt enforcement? The department does not have any debt collectors at this time.
There is also a shortage of staff at compliance section.
This is actively being addressed with hiring expected to be in quarter one of 2024/25. Debts over 120 days are
submitt ed to the debt enforcement unit.
We go on to page B -[121], Performance
Measures. Why is the Department of Social Insurance
(DOSI) using QuickBooks to enter debt levels being so
high they need to move to a new system. QuickBooks
is used to summarise the financial information from the
Pens ion Administration system which does not have an
accounting component. However, as part of the review in upgrades to systems, the pension and reporting sys-tem will be looked to be in the new system that will have
all of those things included in one. But th e old pension
system is still being used and QuickBooks is just being
used to summarise the financial information, not actually do all the assessment of the multiple payers and
multiple accounts, et cetera. That is not what that is for. There is an actual enterprise system that is used for
that, and important to note [is] that system was not impacted by the cyberattack.
I will just answer the Actuarial Review question
again because the Opposition Leader did state that it
was not done last year, and it was promised to be done last year. The Actuarial Review does not take a day,
first of all.
[Laughter]

Hon. E. David Burt: It was said last year that the Actuarial Review is due this year. As I stated in the budget brief, it commenced in the fourth quarter of last year. It is ongoing. And when it is complete it will be prepared
and tabled in this House in the regular fashion. So it is
not to say that it was not done. It is not to say that it was
not achieved. The department is following its legislative
mandate to complete that review every three years.
That review was due to start in 2023. It did commence. And we will make sure that we table those matters
when that review is finished.
There was a question asked on $249 million
capital spend. It said, what is this being spent on? Is it
QuickBooks? No, clearly it is not QuickBooks, but it is
a separate system outside of the current systems which are being used for debt management. It is similar to
what has been used very successfully over in the Office
of the Tax Commissioner. The system will assist the
department in reducing the outstanding debt and effectively managing receivables on an ongoing basis. The
software will also support the compliance enforcement
and early detection of nonpayment of contributions by
employers. The system’s goal is to create a centralised
automated reporting and monitoring solution. This will
improve the Department of Social Insurance’s ability to
report on the collection of contributions, identify all employers with outstanding debt and age of debt in assisting in determining the collectability of outstanding debt
and to create payment plans with improved management of those plans.
Moving on to Head 38. There were questions
in regard to the Tax Commissioner. I think there was a question on page B -122, 4800 . . . sorry —

Administration.

Hon. E. David Burt: Yes, 48000. Thank you, that is
helpful. Because I am getting dizzy myself from all this reading.
[Business unit] 48000, and it said Admin increasing by $311,000. Ah, yes. Administration 48000,
$311,000 year over year, what is the cause? This is additional monies for a departmental controller to support administrative controls and debt collection. It is also
due to a revaluation of roles within the department which will result in increased salary costs but which will
also result in higher output from the department. This is
something that I have said on numerous occasions, but
I think it is important t o reflect. Departments like the Attorney General’s Chambers, departments like the Min-istry of Finance, Registrar of Companies conducting
similar functions are under incredible stress and we are
796 4 March 2024 Official Hansard Report

Bermuda House of Assembly under increasing stress due to our employees being
poached, often by the private sector —

Yes!

Hon. E. David Burt: But oftentimes also by the Bermuda Monetary Authority who can afford . . . or not who
can afford to pay, who do pay higher wages. (Afford is a relative term.) And the fact that I would say is that this
is the reason why in last year’s budget statement we
stated that we were going to make sure that we conduct a review of hard- to-fill posts and in this year’s allocation
you will see that some of these things are budgeted for.
Because we are not going to be able to have a fully
staffed Registrar of Companies if the pay scales are severely differential from what persons in compliance . . .
I think that is your business, Opposition Leader. We know how persons are remunerated for compliance.
We know how compliance roles are in high demand
and it is vital and important that these particular things
are remunerated properly so that we can have compe-tent staff and attract the staff and retain the staff inside
this department so they don’t . . . you know, go to the
BMA. So that is the reason why those things are there.
Are we still in OTC [Office of the Tax Commissioner]? Yes. Still in OTC. It says, what else is being
rented by the OTC outside of the building? The differential in rents is only $5,000. As stated, a majority of the rental costs for the building, the small increase is
due to a provision on the repairs and maintenance (R and M) on the building which may be charged via a rent increase. I think OTC is still at the Perry Building.
There was a question . . . I want to make sure
I am on the correct head. Okay, I am still on the Office of the Tax Commissioner. I am not over to Registrar of
Companies yet.
There was a question on page B -123 and it
said Professional Services, and they [asked] why is this
increasing by 27 per cent? The Premier made a point
to reduce the efficiency measure in previous year, why
has this changed? I think I was talking about the Registrar of Companies, not the Office of the Tax Commissioner. That was my thing . . . this is the cost to support
the maintenance of debt management tools. As you will
know, once you buy a system you then have to pay to
update a system. So this is for t he maintenance of the
debt management tools which is important for debt collection and the actual costs are more than outweighed
by the benefits due to prior debt being collected. So
there is a small increase but it is important to know that there was a $15.7 million (at least) increase or additional money in back taxes that were collected.
On to page B -124 Payroll Tax increasing by
$68 million —

Hon. Jarion Richardson: A point of clarification, if I
can.

Hon. E. David Burt: Oh I will— The Chairman: Will you yield, Premier?
Yes, Opposition Leader.

POINT OF CLARIFICATION

Hon. Jarion Richardson: I was looking at [page] B -
123, under Professional Services. And I just want to
find it here . . . but it was said in last year’s Hansard that
the reduction was part of efficiency measures. So the question was, If last year it was for efficiency purposes,
then why is it going up this year? Surely those efficien-cies have been realised. That was the question.

Thank you, Opposition Leader.
Premier, you have the floor.

Hon. E. David Burt: Great question and I think the answer which I gave explained it. We have got these
things in place, but now we have to actually pay for the
maintenance and upkeep of these particular systems.
So from that perspective . . . under Professional Services. Tha t is the best I can give. From that perspective,
that is where . . . that is there. So I appreciate the Opposition Leader on referring to what was said last year, that is important. Those were the reductions that were
done but what has happened this year i s that there is
an increase, needing to make sure . . . we made a significant investment in this debt management system. I think millions of dollars over the past few years. And
now there is the need to maintain it. And that is not
something that can be ma intained under the Capital
Account because maintenance is something that flows into Current Account. I hope that is helpful there.
And I see some new answers being typed for
me as I speak so I might be able to give you some more
[answers].

Yes.
Hon. E. David Burt: There was a question in regard to
payroll tax increasing by $68 million and why is this predicted. Now here is the thing that I want the Opposition
Leader to know. We do not pick payroll tax numbers out
of our head. There is a very big and detailed payroll tax model that is modelled on an annual basis which makes
predictions in regard to economic growth, which makes predictions in regard to inflation . . . because inflation
salaries go up and there is a question because, of course, things are collected on that basis. The $30 million is due to the estimated amount for the new hire relief. The additional . . . well, I don’t think it is $38 [million], because I think we are going from last year’s original to this year’s. But either way the additional monies


Bermuda House of Assembly are due to economic growth, the increase of jobs in the
economy.
As we know, the economy added just under
1,000 jobs last year. There is expectation of additional
jobs being added to the economy this year —whether
they be the construction projects, continued growth/resurgence in the local and domestic economy. So that is
the reason why those figures are predicted. There is a
very comprehensive model that the Ministry of Finance
uses. It is updated on an annual basis so all of these
things are imputed in and this was the prediction that came out, and that is the number whi ch we put. I think
what we can see is that that economic model is pretty
good, because last year, when we made sure that it
was updated, we were just about on [with] the payroll
tax number. We were a little bit under. But far better
than we had been in pre vious years. We are pretty
good with the model.
There was a question in regard to land tax increasing by $4 million this year and why. I think that is when Wayne had said his comment. But I think it is im-portant to note that budgets are done on a modified
cash basis and not an accrual basis. And so if there are
additional collections coming in from back taxes, or
monies that the debt collection unit is collecting, then those things would be recorded inside of the funds
which were collected from that. So that is where it
comes from and that is why it is showing that additional $4 million, I think, over the predicted amount.
There was a question in regard to the tax modernisation programme spend at $855,000 in previous year budget and actuals operating to be $500,000.
What is the . . . benefits? These are capital acquisition
costs for further enhancements of the debt manage-ment tool and also the reduction is due to the current
stage of the project being finalised before the consoli-dated debt initiative occurs with both DOSI [Depart-ment o f Social Insurance] and OTC [Office of the Tax
Commissioner], but also in the brief I spoke about some of the accounting items that are going to be done. The
base OTC system is still run off of an old I -Series system as well. And so some of the programmes that we
are putting on top of that allow for better and easier interaction in reporting items so that there is less manual work that is needed on the Office of the Tax Commissioner side.
There was a question in regard to the ROC domain name changing, and this was driven by consulta-tion with the OECD cybersecurity team in the wake of
the cyberattack. They wanted the ROC to operate on a separate domain from Government to ensure proper
segregation. It is important to note that the roc.gov.bm
was not impacted by the things. It was on a separate
server. And, as you would know, domain names can
point to external servers. It doesn’t necessarily matter.
But it was something that the OECD asked for , so it is
fine. But it was always stored on an external server, not
necessarily a government server, to make sure that information was segregated. But this is just literally a domain routing item. It is in the same place. It is just a
different domain and they didn’t —

It has been moved that the heads be
approved, namely Heads 10, 11, 12, 28, 38, 39, and 58 under the Ministry of Finance.
Is there any objection to that? There being
none, the heads are approved.

[Motion carried: The Ministry of Finance Heads 10, 11,
12, 28, 38, 39, and 58 were approved and stand part of
the Estimates of Revenue and Expenditure for the year
2024/25].

I am sorry. Is there any objection to
that motion?
There being none . . . thank you.
We will sit again on Wednesday the . . . what is
the date? The 6
th of March.

[Motion carried: The Committee agreed to rise and report progress and sought leave to sit again.]

House resumed at 7 :51 pm

[Hon. Dennis P. Lister, Jr., Speaker, in the Chair]

REPORT OF COMMITTEE

ESTIMATES OF REVENUE AND EXPENDITURE
FOR THE YEAR 2023/24

798 4 March 2024 Official Hansard Report

Bermuda House of Assembly The Speaker: Good evening, Members.
Are there any objections to the House rising
and reporting progress and seeking leave to sit again?
There are none. We will now move on from that
item. We have just completed the debate for today on
the budget.
The next item on the paper is being carried
over, [Order] No. 3 . . . [Order] No. 2, rather. We are
doing [Order] No. 3, correct? [Order] No. 2 is carried
over.
[Order] No. 3 is the second reading of the Economic Development Amendment Act 2024 in the name
of the Minister of Economy and Labour.
Minister, would you like to present your matter
at this time?

Hon. Jason Hayward: Mr. Speaker, I move that the Bill
entitled the Economic Development Amendment Act
2024 be now read a second time.

Any objections?
There are none, continue.

BILL

SECOND READING

ECONOMIC DEVELOPMENT
AMENDMENT ACT 2024
Hon. Jason Hayward: Mr. Speaker, this Bill seeks to
amend the Economic Development Act 1968 to allow applications to be submitted and approved for ap-proved residential schemes within the city limits of the
Corporation of Hamilton beyond a designated economic empowerment zone area.
Mr. Speaker, the Act currently permits approved schemes for the economic development of any part of Bermuda approved by the Minister responsible
for economic development pursuant to section 2 of the
Act. The Bill proposes to extend this area in which residential schemes can be approved to include areas within the city limits of the Corporation of Hamilton
which extends beyond the designated economic empowerment zone areas.
The proposed legislation would enable this
new type of approved residential scheme to benefit
from foreign direct investment through facilitating residential unit ownership by restricted persons made pos-sible because of the previous amendments to the Bermuda Immigration and Protection Act 1956.
Mr. Speaker, the Economic Development
Strategy outlines the case to extend residential development in the City of Hamilton which can and must play
a significant role for the expansion of residential development opportunities on the Island. The City of Hamilton Plan recognises that residential development is an
essential component of revitalising the city. Yet, its potential is not being leveraged at present. The Amendment Bill aims to enable the opportunity to grow the residential population in the Island’ s capital. Increasing the resident population of the city will help
transform it into a vibrant economic hub where persons can live, work and play.
Mr. Speaker, by way of background, in 2019,
the Economic Development Act 1968 was amended to
include providing for approved residential schemes.
The aim and objectives of the 2019 amendment was to
encourage economic activity and development in all
EEZs, primarily in n ortheast Hamilton. It also permitted
a restricted person to hold and acquire one or more residential valuation units in an approved residential
scheme without any of the restrictions that would otherwise be imposed by the Act. This specific amendment seeks to further facilitate foreign direct investment
in the EEZs by removing restrictions around ownership of residential real estate.
Mr. Speaker, this Bill provides for a new definition for an approved Hamilton residential scheme and municipal area. It is intended that an approved Hamilton residential scheme will mean an approved scheme
consisting wholly or partly of residential units situated
within the municipal area which does not include any
residential valuation unit in an EEZ and the municipal
area will mean the municipal area of the City of Hamilton as shown on the map in Schedule A1 of the Municipalities Act 1923.
Mr. Speaker, this Bill makes provisions for the
proposal to be subject to a sunset clause and new section 2ABA inserted by the Amendment Bill limits the
provision of approved EEZ residential schemes to applications submitted on or before 31 March 2028. The Minister can extend the deadline by applying for approval by order subject to the negative resolution procedure.
Mr. Speaker, the concessions available under
section 3 and section 3A of the Act will continue to apply to the development of approved schemes, but these
concessions will not be extended to the new approved
Hamilton residential schemes. Such concessions provide for approved businesses and property owners in an economic empowerment zone to apply for certain
concessions.
Mr. Speaker, by widening the scope of potential investment beyond designated EEZs, this Government aims to stimulate growth in Bermuda ’s economy
so that overall . . . all of Bermuda can benefit.
Mr. Speaker, these amendments are significantly important to us increasing our residential housing stock, primarily in the City of Hamilton. The city plans over the years have indicated that there is significant capacity for us to increase the number of residents in our city. This amendment seeks to entice further development in our EEZs and the wider City of Hamilton. The approved schemes which are currently
in place . . . the model which is currently in place will be
extended to the wider City of Hamilton and that is significantly important because when investors are looking


Bermuda House of Assembly for how they can make returns from their developments, they now know that they have a wider pool of
individuals that they can market and sell their properties to. It also would allow for many of our expatriate
workers to participate in purchasing properties within the City of Hamilton. This is a win- win for the City of
Hamilton and the wider Bermuda, as if we have more
persons residing in the City of Hamilton it frees up the capacity in the housing market throughout the entire Island, Mr. Speaker .
When we start to talk about the work that we
have done with our Economic Development Strategy,
we now see significant initiatives that arise from that
Economic Development Strategy. I came here and I
brought a Bill to extend the EEZs to southeast Hamilton. Now you see another Bill in place that looks to how
we can entice and encourage foreign direct investment in the city. Both of those Bills together are to generate
more economic activity within the wider City of Hamilton. And so we are extremely deliberate with our efforts
on that particular front, Mr. Speaker .
Mr. Speaker, with that, I will invite other Members to weigh in.

Yes, thank you, Mr. Speaker .
Mr. Speaker, it is sometimes helpful just for the
purposes of the Hansard to talk about what a Bill is seeking to achieve and in effect this Bill is doing three things.
Firstly, it is creating two separate categories for
the development of residential units —those that are in
the EEZ only, and those which are in the Corporation
of Hamilton municipality, but not in a place designated as an EEZ. So there are these two bucket s, if you will,
where we can have residential development: the EEZ,
and then the rest of the municipality that is not that designated.
Secondly, it is allowing for restricted persons to
buy in either bucket, either category, at least until
March of 2028, four years from now. And thereafter,
unless the Minister intervenes and extends that date,
they can only buy in the EEZ, not in the municipality.
Third and finally, it restricts concessions so that
they are only available to the EEZ residential units and not to those in the municipality. And I presume that that
restriction on concessions is effective together with an
effective date of the Bill, the 1
st of April and that it is not
retrospective. But that would be the question I have for
the Minister , Is there any retrospectivity or are we just
stopping concessions from the 1st of April onwards for
any non- EEZ residential development?
Leaving the Bill to one side and just speaking
to the point the Minister made, obviously, we live on a
very small Island. And if there is an opportunity for residential . . . in Hamilton, you know, that is a good thing.
We have seen people take that in the past and drive it forward, and I think it was positively received all around. Also, the Opposition Leader did speak specifically in his
Reply to the Budget [Statement] about how, if we are
going to go up somewhere, or we are going to have
environmental i mpact, the best place for that is really
the City of Hamilton where we can go up and should go
up. And it would be much better as a residential city or
a mixed- use city. From that perspective, in terms of the
principle behind it, we very much agree with the Minister that it would be good to see more residential units
in Hamilton.
Beyond that, we do not have anything in Committee. I don’t know if others have to speak, but I think that is all we have on our side.
Thank you.

Thank you.
Does any other Member wish to make a contribution?
None?
Minister.

Hon. Jason Hayward: Mr. Speaker, the Member is
spot on in terms of summarising the three main areas
of the Bill.
The sunset clause is important. What we did
not want is long- term ongoing competition with the expansion of development within the economic empowerment zones. And so we put a window in place where
we will encourage development in the wider City of
Hamilto n for a four -year period. And that is why that
2028 date is placed in the Bill. Obviously, we will mon-itor and track performance and make a determination on whether or not we can continue with this particular
provision.
The concessions that were mentioned in the
Economic Development Act are concessions which are specific to the economic empowerment zones. There
was no desire to extend concessions outside of the economic empowerment zones. The economic empowerment zones w e believe to be special zones with
a special purpose and as a result we are going to continue to treat that different from the wider City of Ham-ilton and development within the wider City of Hamilton.
And so we are happy to encourage restricted persons
to participate in the schemes in the wider City of Hamilton, but we did not want to disadvantage the benefits of operating within an EEZ. So we did not extend the
concessions beyond the borders of the economic em-powerment zones.
With that, Mr. Speaker, I move that the Bill be
committed.

Honourable Members, we are now in
[Committee of] the whole House for consideration of
the Bill [entitled] the Economic Development Amendment Act 2024 .
Minister Hayward, you have the floor.
Hon. Jason Hayward: Mr. Chairman, the Bill seeks to
amend the Economic Development Act 1968 (the “prin-cipal Act”) in relation to certain approved residential schemes within the City of Hamilton area.
Mr. Chairman, I wish to move clauses 1
through 9.

Continue.
Hon. Jason Hayward: Clause 1 provides for the citation for the Bill.
Clause 2 amends section 1 of the principal Act
by amending the definitions of “approved residential scheme” and “economic empowerment zone” and also by inserting new definitions for “approved Hamilton res-idential scheme” and “municipal area.”
Clause 3 amends section 2AB of the principal
Act to make reference to the revised definition of an
“approved EEZ residential scheme.”
Clause 4 inserts new section 2ABA into the
principal Act. Section 2ABA applies section 2AB to residential valuation units in an approved Hamilton resi-dential scheme as section 2AB applies to units in an approved EEZ residential scheme, but only if the appl ication for an approved Hamilton residential scheme is submitted on or before the specified dates. Section 2ABA provides that the Minister can extend the dead-line for submitting an application for approval by order subject to the negative resolution proced ure.
Clause 5 amends section 2AC of the principal
Act (approval of residential scheme shall not be with-drawn) by inserting a reference to both approved EEZ residential schemes and approved Hamilton residential schemes.
Clause 6 amends section 3 of the principal Act
(concessions to undertakings) by inserting a new sub-section (2) which provides that the concessions pro-vided for in section 3 do not apply to approved Hamilton residential schemes.
Clause 7 amends section 6 of the principal Act
(Minister may approve lease of land required for approved schemes) to make reference to the revised definition of an “approved EEZ residential scheme” and an “approved Hamilton residential scheme.”
Clause 8 provides a consequential amendment
to section 74A(2) of the Bermuda Immigration and Protection Act 1956 and consequential amendments to sections 120(7)(b) and 129(1AB)(b) of the Companies
Act 1981.
Clause 9 provides for commencement.

I was wondering.
Hon. Jason Hayward: I thought the map would have
been contained in this one. So, that is not necessary, but I would like to move the preamble. The Chairman: It has been moved that the preamble
be approved.
Are there any objections?
There appear to be none. No objections.

Hon. Jason Hayward: Mr. Chairman, I move that the
Bill be reported to the House as printed.

It has been moved that the Bill be re-ported to the House as printed.
Are there any objections to that?
There appear to be none. The Bill will be reported to the House as printed.
Thank you. Mr. Speaker?

[Motion carried: The Economic Development Amend-ment Act 2024 was considered by a Committee of the
whole House and passed without amendments.]

House resumed at 8:08 pm
[Hon. Dennis P. Lister, Jr., Speaker, in the Chair]

REPORT OF COMMITTEE



Bermuda House of Assembly ECONOMIC DEVELOPMENT
AMENDMENT ACT 2024

Members, are there any objections to
the Bill entitled the Economic Development Amend-ment Act 2024 being reported to the House as printed?
There are none. The Bill has been reported as
printed.
That brings us to the end of the business of the
day. We are going to do the third reading and then the rest.
Minister, would you like to do your third reading?

SUSPENSION OF STANDING ORDER 21
Hon. Jason Hayward: Mr. Speaker, I move that
Standing Order 21 be suspended to enable me to
move the Bill entitled the Economic Development
Amendment Act 2024 be now read the third time by its
title only.

Members, I am going to seek the indulgence of the House to allow a matter from the Ministry
of Finance to be tabled which we will deal with later this
week as a Bill. And on behalf of the Minister of Finance,
the Attorney General will present it.
Any objections? None.

SUSPENSION OF STANDING ORDER 14

Hon. Kathy Lynn Simmons: Thank you, Mr. Speaker.
Mr. Speaker, I move that Standing Order 14 be
suspended to enable me to introduce a Bill to the
House.

Any objections?
Continue.
[Motion carried: Standing Order 14 suspended.]

BILL

FIRST READING

REGISTRAR OF COMPANIES
(ANNUAL CORPORATE REGULATORY FEES)
(NO. 2) ACT 2024

Hon. Kathy Lynn Simmons: Thank you, Mr. Speaker.
I am introducing the following Bill for its first
reading so that it may be placed on the Order Paper
for the next day of meeting: the Registrar of Compa-nies (Annual Corporate Regulatory Fees) (No. 2) Act
2024.

Any objections?
No objections. We all rise. Thank you, Members.
Members thank you for your participation today
and we look forward to returning on Monday . . . on
Wednesday.

[Laughter]

802 4 March 2024 Official Hansard Report

Bermuda House of Assembly The Speaker: Have yourself a good evening and we
will see you on Wednesday.
The House now stands adjourned.

[Gavel]

[At 8:11 pm, the House stood adjourned until 10:00 am,
Wednesday, 6 March 2024.]