Bermuda Real was the first to report the fact that taxpayers paid out $1.7 million to a Canadian consultancy firm over 17 years for new bus rosters that we still don’t have.

In response to that report, Transport Minister Zane DeSilva quipped that it wasn’t quite $1.7 million.

As it turns out: “Since 2002. Schedule Masters have been paid varying amounts each year that add up to $1,671,174.62 in total over the 17 years, inclusive of $24,056.00 paid so far this year.”

Repeat that last part of the previous sentence – “inclusive of $24,056.00 paid so far this year”.

That statement was issued to Bermuda Real in January and then retracted with the promise of a follow up statement in response to our initial report – which, by the way – no other mainstream media expanded on until last week.

Here we are in February and Bermuda’s taxpayers are still paying for two new bus schedules that have yet to be implemented. And even then, it won’t resolve te need for more new buses.

Now, in February, the big question is why is this consultancy firm still on Government’s payroll and for what exactly?

The Minister stated in an interview last week that ultimately, his goal was to eliminate the consultancy firms deal – period! But for now, he said, the Department of Public Transportation (DPT)was using the firm less and less

Despite his intentions, the fact remains that this firm is still dipping out in the public purse and costing taxpayers more MONEY at a time when there’s clearly no oney for new buses! But there’s money to keep paying for this never-ending pursuit of new rosters from a Canadian consultant. And the question remain – WHY?

With no firm date set in stone on when the new winter bus schedule will actually go into effect – what exactly is the hold up – and what’s taking so long?

Could it be the fact that the DPT pushed out rosters with more than one night shift per roster – or what is commonly referred to as the ‘Night Train”.

Why would they even try putting more than one night shift per roster when bus operators WON the right to one night shift per roster through arbitration several years ago?

The DPT knew that, the union and the Ministry of Transport knew that – so why would they all pose and say the new schedule would go into effect on a certain date – whih by the way has passed – and act like nobody knew this was some REAL CRAP!

Could it be this sort of NONSENSE represents a big part of the reason why this bus roster issue has dragged on and on at the taxpayers expense for 17 years and counting?

February is the shortest month of the year and this journalist would venture to say by the time its all sorted out it will be time for the summer schedule, which is probably nowhere near settled yet.

So where does this leave the island’s year-round bus commuters still being left stranded due to this endless repeat cycle of breakdowns and cancellations.

How many new buses would we have by or before the start of the 2019 tourism season out of $1.7 million and counting? How many west end residents will watch, once again, public buses drie by them compltely full before they leave Dockyard? What’s the plan? How many more years do you need to sort it out exactly? And why are we as taxpayers still paying this Canadian and his company for this errant nonsense?

The statement issue in January, noted that the DPT “operates the public bus service using two schedules in a year: one during the winter (when school is in) and one during the summer (when school is out)”.

“For some years now, there has been a ‘gray schedule’ in place as well which omprises runs added to the published schedule to satisfy demand (largely related to transporting school students).

It was also noted that:

• DPT does not have tools equivalent to The Master Scheduler in house to do this complex work, which includes the computerized dispatching system DPT uses daily
• To be clear: Schedule Masters are hired to produce the schedules and rosters for a Bermuda public bus service – not a Canadian bus service – and has done so at the request of DPT since 2002.
• The task of implementing the rosters is for DPT to do, not Schedule Masters. Lastly, the Ministry also wishes to reiterate that it is encouraged by the efforts of us operators, the perusal committee, Bermuda Industrial Union members, and the Department of Public Transportation management who put in many hours of hard work to com to this agreement. Without them, none of this would have been possible and we believe that is the true essence of yesterday’s press conference sought to illustrate.

Well, that was in December and here we are in February – and all that press conference showed me was that there was a lot of talk and no real perusal of what DPT was proposing when the Minister of Transport stood up with the President of the Bermuda Industrial Union to announce a new winter schedule that included rosters with more than one ‘Night Train’ per roster.

To say it again – what were they trying in the first instance knowing full well there was an arbitration ruling clearly stating otherwise AND what’s the plan moving forward – Tell Me This – Will it take another $1.7 million AND 17 years?

And how much you want to bet that west end residents will still be watching public buses leave Dockyard completely full with cruise ship passengers this summer with or without a new schedule AND NO NEW BUSES?

How many dollars, DPT officials and Canadians does it take exactly to GET IT DONE?

Like I asked the Minister of Transport when we talked about this $1.7 million over 17 years – My question was simply this: “You run a multi-million dollar construction firm how long would you pay one of your employees out of your money NOT to do their job?”

Won’t tell you what he said but will simply say this – my response was: “I rest my case!”

And see all of you Civil Servants pushing this Canadian firm’s pay cheque through – how many buses would $1.7 million buy? And I’m not talking 17 years – DO THE MATH – that’s all I’m saying! And get rid of this Canadian suck the public purse dry for NOTHING!

Now we asked the Minister to come forward before this report was published. He told me to write whatever I feel I need to write and he will sit down on camera with me when he gets back.

Let the record show – it’s DONE! The interview promised never happened!

Mixed views on how much of an impact the 24-hour  shutdown of clubs since the closure of Docksiders on Front Street and Southampton Rangers Sports Club, where six brawlers were banned due to anti-social behavior.

While some residents hold the view that it’s about time, others question just how effective it will be when it comes down to the not so social side of serving alcohol when it’s Bermuda’s leading catalyst for anti-social behavior, accidents and road traffic fatalities.

The big question now, is whether or not these shutdowns and possibly others to come, will actually have an impact on the island’s abysmal track record on  driving or acting up under the influence of alcohol, backed by roadside sobriety checks?

Bermuda Real asked our readers for their views shortly after the second 24-hour shutdown ordered by police.

One resident said it looks like Bermuda’s new Commissioner of Police, Stephen Corbishley “is starting to lay the smack down on these bars”.

“May he keep up the good work,” he added.

Another woman wrote: “Bad news for the Gosling family.

But another resident questioned what impact the shutdowns will have when it comes down to alcohol and anti-social behaviour.

“Unless you stop sale of liquor you risk confrontation with patrons, and I think, for example, Docksiders hired security.

“Police are responsible for maintaining law and order not just in bars but everywhere else too. Just why the Police Commissioner thinks closing any bar for 24 hours will solve anything is unclear or make our roads safer either.”

The former co-owner of a local restaurant and bar he lamented the fact that there are far “too many physical confrontations” for his “temperment” these days.

And gone are the days when “people drank but not to get drunk”, he added.

Six men, ranging in age from 23 to 32 were injured in an early morning brawl outside Southampton Rangers Sports Club on February 2.

They were all subsequently banned from the premises by the club’s management, via registered letters informing them that they are no longer welcome.

Rangers was shutdown as a result of the fracas from 10pm Saturday, February 2nd until 10pm Sunday, February 3rd.

The club appealed to “the Police and the Courts to do their utmost in assisting the Community Clubs and other establishments in preventing incidents like this from happening again where a few individuals are traveling the island intent on causing trouble”.

Meanwhile, other members of the community say: “It took them to be closed and loose money to pay attention.”

Others maintain that it is well known “who these individuals are and their intentions”.

House: Health Minister Updates MPs On Financial Assistance Reform

News   |   February 15, 2019

Moving to dispel what she termed the “many misconceptions” about Government’s Financial Assistance programme and the “population it serves”, Health Minister Kim Wilson told MPs today that the “most Financial Assistance recipients are seniors, disabled persons and child day care recipients”.

“Only 26 percent are able-bodied adults,”

In fact, she said, as of January 2019, there were 3,268 recipients in total, as follows:

• 1,184 Pensioners/Seniors
• 896 Persons with disabilities
• 214 Abled-bodies unemployed
• 362 Persons with low earnings
• 612 Child day care allowance

Providing an update on the Ministry’s plans moving forward, the Minister noted that since the Financial Assistance Reform Group was formed last year, members have “worked diligently and produced a final set of recommendations detailed in their Financial Assistance Reform Group Recommendations Report”.

Those recommendations were subsequently reviewed when the Department of Financial Assistance was moved to the Ministry of Health and “Cabinet has accepted a number of them, which will pave the way to reform the programme”.

The Report has also been published on the Governent website, along with details of the recommendations that will drive the reforms.

“Financial Assistance is committed to making work pay and its award structure provides a foundation for this, as persons do not lose all benefits if they find some employment. More work is being done to advance this policy to help get more people back to work,” said Ms Wilson.

“Our decisions have been guided by the Internal Audit report completed subsequent to the Reform Group’s conclusion. There were a number of overlaps between the two, but together, and in light of the appointment of a new Director of Financial Assistance, we have been able to have a more focused and targeted approach to achieve the most impactful reforms,” Ms Wilson said.

“The Internal Audit report recommendations are being acted on immediately to bring urgent essential improvements as soon as possible over the next 12 to 18 months. These have already begun and will reduce waste, control budgets and improve service to recipients and applicants.

“For example: A working committee has been set up to improve the current database system and use technology to improve efficiency in the future.

“A new intake process is being implemented. The department has reviewed their ‘pre-screening’ process and the new system should reduce the time that clients will have to sit for their initial interview.  Further, a 30 day window has been implemented so that clients will receive a response in a timely manner.

“Job Search sheets have been replaced with mandatory usage of the Bermuda Job Board. Clients are expected to visit the Department of Workforce Development, meet with a Career Development Officer, have their resumes updated, participate in skills testing and search for employment opportunities on the Job Board.  Evidence of this activity must be submitted to the Department of Financial Assistance to qualify for a financial award.

“In addition to these operational improvements, we will be strategically focused on ensuring a more equitable allocation of awards and achieving financial sustainability of the programme.

“In this regard, a fundamental reform we will undertake is to change the formula that is used to determine eligibility and awards. Specifically, we will amend the legislated formula to establish awards so that eligibility is based on measures associated with the ‘low income threshold’ calculated by the Department of Statistics, rather than the current (allowable) Expenses – (qualifying) Income = (FA) Award.”

She also noted that the Financial Assistance programme is vital to the community as “the only form of welfare available to assist the vulnerable, frail and infirm, and the only means to prevent families from descending into poverty”.

But she said: “Funds are finite and we have to make sure that we use them efficiently and they reach the right people. We expect that the reforms under way will change the face of the programme to achieve financial sustainability and a more equitable allocation of awards.”

Nearly a year later – still NO REFORM!

Premier Takes Aim At Daily Newspaper With Scathing Criticism In House Of Assembly

News   |   February 16, 2019

Premier David Burt took aim at the island’s only daily newspaper in the House of Assembly last night, “to put the people on notice that the Royal Gazette cares more about its political mission than it does the success of the island of Bermuda”.

Speaking during the Motion to Adjourn, he said: “It is now crystal clear that the Royal Gazette has joined hands with the Opposition One Bermuda Alliance in a concerted effort to cast doubt and irreversibly tarnish this Government’s work in the diversification of this economy.”

He was speaking “specifically to the FinTech industry”.

Shadow Minister Of Home Affairs Criticizes Short Consultation Period On Corporations’ Future

News   |   February 16, 2019

• One Bermuda Alliance Sylvan Richards, the Shadow Minister for Home Affairs issued the following statement on Saturday, February 16, 2019

It’s Déjà Vu all over again – Yogi Berra. The more things change the more they stay the same.

What I am referring to is the recent announcement by Minister Walter Roban regarding the Government’s desire to take full control of the Municipalities of Hamilton and St George’s.

You may recall a few years ago that the previous PLP Administration made an unsuccessful attempt to take over the Corporations but when that failed, settled instead on strangling the Municipalities by removing their right to charge wharfage, replacing this lost income with a Government grant which was insufficient to meet their needs.

This had the presumably desired effect of ensuring that the Corporations had to come cap in hand to the Government in order to meet their obligations in terms of infrastructure.  Nine years later the PLP is back for another bite at the cherry.

Not long after the OBA became Government, we returned the right to collect wharfage back to the Municipalities and the Government grant was removed, thereby giving the Corporations more financial independence. In St. George’s with the arrival of new cruise ships which the OBA secured during our tenure plus the introduction of a Heritage Tax, the Old Town has grown from strength to strength.

So, the question has to be asked: Why is the Government so keen on tearing apart two Corporations that have, all in all over their respective existences, done excellent work in promoting Bermuda and servicing their municipalities?

Why is there only a ten-day consultation period being given for the public to weigh in on the two options Government is considering imposing on the Municipalities, both of which will ultimately mean the end of the Corporations of Hamilton and St. George’s as entities run by the people for the people?

Minister Roban has essentially said that the Bermuda Government will be better at maintaining the infrastructure of the Municipalities and if the Government has control via a quango or by way of being subsumed into Government it can set the economic agenda for the Corporations.

However, the simple facts are these – both Corporations have traditionally done a better job than the Government at maintaining infrastructure, collecting garbage, promoting their respective municipalities, hosting events and serving their constituents. Simply put, can we really expect a Government that cuts trash pick-up to once a week to suddenly be able to collect garbage in the City of Hamilton every night?

Under the current Municipalities Act, the Government already has the final say on planning legislation so it can already plan for various economic zones, it can also give guidance for spending of the Heritage Tax in St. George’s, it can direct how any grants are spent and it can also take stewardship of the Corporations if Government directions are not followed.

In fact, most if not all of what the Government supposedly wishes to achieve with its proposed changes can already be done by way of utilising the existing legislation. So, again what is the deal? Why is the Government so desperate to interfere with two Corporations that work?

The answer is obvious. Control, pure and simple. This Government is totally obsessed with it.

Look at the moves Government has already made to gain control of the BTA and the Gaming Commission as examples. They can’t help themselves. No doubt subsuming the Corporations into Government will assist its balance sheet as a result of having more valuable real estate on its books – which given the huge hole in the current balance sheet will help.

Or, perhaps it is really about control of the Waterfront and the eventual awarding of contracts? Or perhaps the current Minister just does not like the personalities of some people at the two Corporations.  Whatever the real reason for this travesty – it doesn’t pass the smell test.

Given that there is only a very short consultation period I think it’s safe to assume that the Government has already made up its mind about what it intends to do. I suspect there is a Bill already prepared in draft form that can be hastily tabled in parliament given that previously postponed elections need to be held in the next few months. There is more to this yarn than we are being told.

It is the Opposition’s view that a Local Government Act should be drafted which will modernise the relationship between the Government, Municipalities and the Parish Councils.

Such an Act would be reflective of the changing face of the City and the Town of St Georges and would set the foundation for truly collaborative opportunities. In the spirit of collaboration, the OBA would be willing to work alongside the PLP to make this a reality. Destroying hundreds of years of history simply to satisfy the ego of a chosen few would be a terrible mistake.

War Of Words Continues Over Premier’s Remarks During Motion To Adjourn In HOA

News   |   February 19, 2019

The war of words continues following Premier David Burt’s scathing criticism of the island’s only daily newspaper in the House of Assembly on Friday, with Opposition Leader Craig Cannonier calling it “an act of desperation”.

Government Minister Jamahl Simmons countered Mr Cannonier’s remarks saying the “Opposition seems more interested in attacking the Government than in standing up for the Bermudians who have seen their dreams of jobs with this company dashed”.

In a statement issued last night, Minister Jamahl Simmons said: “We should all be deeply concerned about the circumstances outlined by the Premier on Friday in the Motion to Adjourn.

“Six Bermudian jobs gone, an office lease cancelled, executive relocations and accompanying rental of housing gone, payroll taxes to be paid to government  gone and the reality that this one negative experience by one company could  impact negatively on Bermuda in incalculable ways.

“Mr Cannonier said in his statement,  “Yes, 20 new jobs going elsewhere is a real blow, especially as six were expected to be Bermudian and goodness knows  Bermuda needs all the jobs it can get right now – but people are asking: where are the other jobs?”

“If the opposition truly cared about more jobs and opportunities for Bermudians, they would condemn at every turn anyone or any entity that seeks to undermine that,” said Mr Simmons.

“Unfortunately the Opposition seems more interested in attacking the government than in standing up for the Bermudians who have seen their dreams of jobs with
this company dashed due to the Royal Gazette.

Meanwhile, Opposition Leader Craig Cannonier said: “The Premier’s attempt to play the blame game over jobs that have failed to materialise is an act of desperation, of someone who knows they are sitting in the ‘last chance saloon’, who knows the pressure is on. He has over-promised and is now under-performing.

“Did the Premier step in to save the day with this company? Did he even try? What did he do? That is the story we all really want to hear, isn’t it? That’s the story I want to hear and I want to hear it without the protection of parliamentary privilege.

Or, is there an untold backstory here that we are not hearing?

“All we have heard is how the Premier is happy to lay the blame for his own failing policy at someone else’s door in an attempt to deflect and distract from reality. This is no more that hearsay politics and a sign of a Premier in meltdown mode.

“By blaming others, he is deflecting from the fact that his one and only economic policy is failing; distracting people away from the appalling state of the economy and Government’s intent to pile more and more taxes onto the backs of hard working Bermudians instead of cutting spending.

“Yes, 20 new jobs going elsewhere is a real blow, especially as six were expected to be Bermudian – and goodness knows Bermuda needs all the jobs it can get right now – but people are asking: where are the other jobs?

“They are asking: where is the plan to improve the economy now; when will retail sales stop falling and what will workers do once the big OBA construction projects end? They don’t want to listen to playground politics, they want action.”

MPs return to the House of Assembly on Friday to hear newly appointed Minister of Finance Curtis Dickinson deliver his first Budget.

Bermuda Casino Gaming Commission Ordered To Find Its Own Funding Moving Forward

News   |   February 17, 2019

The Bermuda Casino Gaming Commission (BCGC), which came in for a $1.6 million interest free, repayable loan through a Government agreement in July 2017, with another $500,000 provided in 2018, will now have to find its own funding moving forward.

According the BCGC annual reports from September 2015 through to the end of March 2017, tabled in the House of Assembly on Friday, the grant of $3.76 million to cover operational costs was “temporary”.

The report also stated that the final instalment of $610,000, scheduled to go to the commission by the end of 2016, was not issued  until “the year end on April 13, 2017”.

“The Government has now advised the commission to seek commercial funding going forward. At the time of producing these financial statements, the commission has discussed commercial funding with a local bank, with the intent for this funding to be supported by a Government Letter of guarantee,” the report added.

It was also noted that repayments will start when the commission “financially attains a balanced budget position”.

Finance Minister On Brexit & Bermuda’s Annual $30 Billion Two-Way Trade With The EU

News   |   February 24, 2019

As the deadline approaches on the Brexit Withdrawal Agreement, Bermuda’s stakeholders and the Government, will be watching to see whether Bermuda’s annual $30 billion two-way trade with EU will be impacted.

Finance Minister Curtis Dickinson noted in his Budget Statement on Friday, that “the legal basis for the relationship between the Overseas Territories and the EU is set out under Treaty on the Functioning of the European Union”.

“Accordingly, Bermuda benefits from special arrangements with the EU including most favorable treatment in relation to measures affecting trade in services and other trade related matters,” said the Minister.

“While most of Bermuda’s trade in goods and services is with the US, the EU exports a sizeable amount of goods and services annually to Bermuda.

“Annual two-way trade is normally $30 billion. Given that the Withdrawal Agreement primarily provides for an orderly exit from the EU, there should be limited direct impact on Bermuda if an agreement can be reached prior to 29th March, 2019.”

In the interim, he said the Government “has been working with the UK Government to ensure that issues related to Bermuda are considered”.

But he said: “To the extent that the UK acts to defend Bermuda’s interests in the EU, particularly in relation to financial services regulation and tax policy, Bermuda may find it more difficult to make its case in Brussels.”

Other concerns include Brexit’s potential impact on the the freedom of movement of Bermudians within the EU.

A UK exit from the EU would remove this benefit and others, as the main EU Treaty provision relevant to the free

movement of people will no longer apply.

The matter has come up for discussion with the UK Home Office’s director for EU exit immigration policy.

Britain’s Overseas Territories:

• Anguilla
• Bermuda
• British Antarctic Territory
• British Indian Ocean Territory
• British Virgin Islands
• Cayman Islands
• Falkland Islands
• Gibraltar
• Montserrat
• Pitcairn Islands
• St Helena, Ascension and Tristan da Cunha
• South Georgia and South Sandwich Islands
• Turks and Caicos Islands

BHCS & Brown-Darrell Clinic Patients Set To Appeal Court Order On Their Medical Files

News   |   February 23, 2019

Bermuda HealthCare Services and Brown-Darrell Clinic will take steps to appeal the judge’s order that would allow their medical files to be reviewed by experts overseas.

In a statement issued this week, former Premier, Dr Ewart Brown said: “I would like the public, especially the patients whose charts were, as we argue, unlawfully removed from BHCS and Brown-Darrell, to know that despite the report in the Royal Gazette dated February 15, 2019, we have NOT abandoned the fight on their behalf.

“Lawyers acting for a large group of the affected patients, with the full support of the legal team acting for the clinics and Dr. Mahesh Reddy, have today lodged an appeal against the ruling permitting the police to provide patient files to overseas experts without their consent.  The courts will now decide whether the patient files should remain under seal pending the outcome of this appeal.

“We will continue vociferously to defend the confidentiality of your medical records by all procedural means at our disposal.  We must now all trust that the Bermudian judiciary will ultimately rule in your favour,” he added.

The patients are represented by law firm Chancery Legal after 150 of them had their health records seized with additional records of 115 other people, when police raided the two clinics in February in 2017, as part of an ongoing police investigation that has yet to produce formal charges.

The hearing will be held in the Supreme Court on Tuesday, followed by another hearing in March for the court to hear submissions from lawyer Delroy Duncan on behalf of Dr Mahesh Reddy and the two clinics on how the non-medical files were taken and handled by the police in February 2017.

Budget Statement: PLP & Taxes

News   |   February 23, 2019

• The following statement was released by the Progressive Labour Party following the Budget Statement on Friday, February 22, 2019

Today, the government announced the first Budget Surplus in 17 years, that Bermuda’s National Debt will fall this year for the first time since 2003 and pledged:

• To give Mortgage relief for families to reduce mortgage rates
• To support Scholarships to the Bermuda College for all Public School Students with a 3.0 GPA or higher
• To increase our Investment in Education & Training
• To increase Investment in social programs to combat gang violence
• Offer Payroll Tax relief for retailers to protect and spur employment of Bermudians and
• Offered Payroll tax relief to encourage the hiring of local entertainers

Meanwhile, the Opposition is criticizing the lowering of the retail taxes that they raised, the lowering of payroll taxes that they raised and the lowering of the debt that they doubled.

It seems that the OBA will defend the unjust status quo, say anything and attack everything that takes moves us closer to a better, fairer Bermuda.

OBA Leader On Budget: 2019 Will Cost Bermudians Dearly

News   |   February 22, 2019

• The following statement was released after the Budget Statement delivered in the House of Assembly by Opposition Leader Craig Cannonier

Virtually everything done in the Budget today targets the local market and will leave Bermudians worse off, according to Craig Cannonier, the Leader of the One Bermuda Alliance.

“The foreign currency purchase tax will be inflationary, putting up prices for Bermudians as almost everything is imported and paid for in foreign currency. This will push up the cost of doing business and will be passed on to the consumer through higher prices in the shops.

“The Sugar Tax will also affect a much wider range of products, although the Finance Minister did not specify which those products are. The simple fact is this: this Budget is going to significantly increase the cost of living for Bermudians.

“Recharging credit card fees is also going to hit Bermudians who pay their government bills with credit cards because they often do not have the money up front. It is an very unfair way of Government trying to claw back some money in a way that will penalize the average Bermudian.

“The retail sector is hurting badly, but Government is only proving payroll tax relief to certain large retailers. What about our small business entrepreneurs who are struggling to survive?

“The Finance Minister said ‘accordingly the Government has decided that now is not the time to extract an additional $50 million from the economy in taxes’ but failed to mention he was increasing taxes by $39m anyway. He said he was listening when he rolled back residential rental tax but in the next breath increased land tax. What is the difference?

“There are some other very noticeable things about this Budget. Raiding the sinking fund is like robbing Peter to pay Paul. It’s like saying “I have a lot of money because I did not pay my bills’. This is Government’s ‘rainy day’ money.

“GDP growth was revised down and there was hardly any mention of fintech which makes me think they are backtracking on that particular, unfulfilled, promise.

“There were no solutions,  no provision for any economic stimulus, they failed to meet their own revenue and spending targets and they are not reducing Government spending, instead making Mr and Mrs Bermuda pay for their failings through increased taxes.

“There has been a total failure by the PLP to execute on any plan for economic recovery. The Government has zero ideas to stimulate the economy in order to create jobs.

“It sounded like a holding budget, trying to maintain the status quo while desperately hoping that something comes to their rescue.”

Budget: Bermuda’s Ageing Population Is ‘Single Most Serious Long-Term Issue Bermuda Faces’

News   |   February 22, 2019

Finance Minister Curtis Dickinson echoed a familiar warning today when he told MPs that “Bermuda’s aging population, a certainty, not just a risk, will result in serious medium and longer-term pressures on public spending and challenges to growth”.

Delivering his first-ever maiden Budget Statement in the Lower House this morning, the Minister said: “This is perhaps the single most serious long-term issue Bermuda faces.

“It will not be possible for the Government to meet its obligations to our retirees and pensioners without significant structural reforms to our economy,” said the Minister.

“We must have more Bermudians working in Bermuda and have more jobs located in Bermuda to ensure we collect the revenue necessary to fund our pensions and care for our seniors.”

While noting that the most recent census “throws these issues into sharp relief, suggesting a sharp rise in the old-age dependency ratio in

the near future” he added: “While demographic trends are, by their nature, slow-moving and may not be immediately visible to the public, this is perhaps the single most serious long-term issue Bermuda faces.

Speaking on Bermuda’s domestic economy, the Minister also countered the narrative “advanced that Bermuda is in a recession”.

“The facts simply do not bear that out,” said Mr Dickinson.

“Over the last several months we have seen signs that Bermuda’s economy is improving.

“Many of the major economic indicators – such as employment, construction, and air visitor arrivals and spending, increased in 2018, indicating some improvement in the Bermudian economy.

“However, while we are seeing some evidence of growth, there are other indicators showing signs of softness that may have a negative impact on economic growth.”

On the issue of employment, the Minister noted that “preliminary data from the 2018 Employment Survey indicates that “the total number of jobs in Bermuda grew by 144 from 33,653 in 2017 to 33,797 in 2018, a 0.4 percent increase”.

“The year 2018 represents the third consecutive year in which there has been an increase in the number of jobs available in Bermuda,” he said.

“Much of the growth was fuelled by an increase in jobs filled in the construction and hotels sectors, which added

131 and 105 posts respectively.

“One of the major headwinds in our growth prospects is the level of employment,” he added.

“Although employment numbers are marginally positive, the pace of job growth must increase if we are to have a sustained economic recovery.

Employment income “decreased by $16.4 million to $2.61 billion, a modest decrease of 0.6 percent”.

Finance Minister Delivers Maiden Budget Statement With First Budget Surplus In 17 Years

News   |   February 22, 2019

Finance Minister Curtis Dickinson was greeted by a foot-stomping version of a round of applause as he rose to deliver his maiden Budget Statement in the House of Assembly this morning, where he told MPs that Bermuda recorded its first Budget surplus in 17 years.

The Minister also stated that the Island’s debt will fall this year for the first time since 2003 and that the Progressive Labour Party (PLP) government will not raise the debt ceiling in the upcoming fiscal year that starts on April 1, 2019 and runs through to the end of March 2020.

Other highlights likely to perk the ears of Mr & Mrs ‘Joe Average’ Bermuda was the plan announced to give mortgage relief to local families.

Retailers will also see payroll tax relief in the new fiscal year to protect and spur employment for Bermudians and the Minister pledged payroll tax relief to encourage the hiring of local entertainers.

MPs, stakeholders and taxpayers will have the entire weekend to fully absorb the host of fiscal points delivered in the Minister’s 59-page Budget Statement today.

Meanwhile, tax increases include a hike in land tax for owners of larger homes in Bermuda as of April 1, 2019.

Government will reduce tax on properties with an Annual Rental Value of up to $11,000 from 0.8 percent to zero, with a base charge of $300.

Home owners in the $11,001-$22,000 bracket will also be zero rated, compared to the 1.8 percent tax hike implemented last year, with a base charge of $300.

But the $300 flat rate will also lead to increased payments for home owners with the lowest-rated properties.

In the case of home owners with larger properties with ARVs valued at $44,001 to $120,000 or more, they will be hit with increases ranging from 3 to 5 percentage points. Homes in the mid-range with an ARV between $22,001 – $33,001 and $44,000, will remain unchanged. The current rate is 3.5 percent and 6.5 percent. The base charge on all of the higher properties will also be $300.

But owners of larger properties – with ARVs from 44,001 to $120,000 or more – will be hit with increases of between 3 and 5 percentage points.

The base charge on all the higher ARV properties will also be $300. But seniors will continue to be exempt on homes with an ARV of $45,000 or less.

In the case of families plagued by “mortgage pressures for hardworking Bermudians”, the Minister said Government will pilot a mortgage guarantee programme in return for reduced interest rates charged to mortgage holders, in partnership private sector banks.

That statement also prompted another round of foot stomping on the PLP side of the House.

The Minister noted that a government-backed mortgage lender will be created “to relieve pressure on public sector employees by providing them with reduced mortgage rates”.

“These two measures, combined with the elimination of taxes on mortgage refinancing, are projected to save $5,300 a year for the average family carrying a $500,000 mortgage,” said the Minister.

Other tax hikes include an increase on the tax rate for commercial properties, which will go up from 7 percent to 95 percent. The tax rate on tourist properties will also go up from 7 percent to 8 percent.

And as usual, the sin taxes will see the island’s smokers and drinkers dig deeper for their creature comforts.

Shadow Minister Of Finance: Sleight Of Hand Budget

News   |   February 25, 2019

• Shadow Minister of Finance, Senator Nick Kempe in response to the Budget Statement delivered in the House of Assembly by Finance Minister Curtis Dickinson on Friday, February 22, 2019

The Budget presented on Friday was a display of political spin. The feel-good presentations and the facts tell two completely different stories.

The facts are that GDP estimates for growth have been revised down by half, revenue for the present fiscal year was lower than budgeted whilst expenses were higher than budgeted. Despite this damning missing of targets, Government felt it appropriate to forgo the rainy day fund contribution of $65m to the sinking fund in order to project false strength and present a “balanced” budget.

The reality is that last year the Government missed its budget projections by $15m, so what faith should Bermuda have that it can hit such a narrow target set for next fiscal year of a mere $7m surplus? There is no track record to support the confidence they have showed in simply skipping the Sinking Fund Contribution of $65m. It’s like not paying your bills and telling everyone you’re rich.

Despite attempts to distance themselves from the “tax and spend” label, the actions show that to be the case:

* The Budget boasted no new taxes of $50m, yet raised existing ones by $39M.

* The Budget celebrated backtracking on the residential rental tax, but then went and raised land tax. A land tax increase that actually raises the burden on the lowest bands of ARV. The rental tax at least exempted people that live in their own homes. The land tax as presented provides no such relief.

* Payroll tax exemptions were provided to IB and only the largest retailers. Where is the relief for small businesses struggling to survive?

*Foreign exchange tax was raised, which unfairly targets Bermudians primarily that earn their salaries in Bermuda dollars and does not affect primarily guest workers earning US dollars in IB.

*Foreign exchange tax also drives up the cost of living as it has made everything imported to Bermuda more expensive.

*Charge backs on card payments of Government fees make it more expensive for everything from TCD licensing to Customs Duty. Unfortunately, credit card agreements do not allow businesses to charge back those same fees to their customers.

And yet, despite the increases to the tax burden for Bermudians, the Government has taken no steps to decrease its own spending. People are having to deal with once a week trash collections, but are not seeing the benefits of such austerity. A lot of talk about “efficiency” and “reform”, but no results. Speaking of no results, even FinTech was barely a passing comment in the Budget.

Despite having no money, apparently Government is proposing to use the taxes paid by all Bermudians to subsidise mortgages exclusively for civil servants. There is no mention where this money will come from though or any idea of the cost.

The Budget all but dismisses the one economic truth that matters: Bermuda needs more people on-island working and spending money. What the retail sector really needs is more consumers and more revenue, not tax breaks for the select few.

This budget seemed to be a holding pattern budget. The status quo was maintained and in many cases worsened, while this Government holds its breath in the hope that something other than their lack of results will change our fates.

Quo Fata Ferunt

Public Service Reform Implementation Starts Today – February 25, 2019

News   |   February 25, 2019

News Release: Hamilton, Bermuda, Monday, February 25, 2019 – Head of the Public Service, Dr Derrick Binns, today announced the creation of a team that will implement Public Service Reform. Dr Binns stated, “Recently Cabinet approved the Strategic Plan for Public Service Reform which will go into effect from today, Monday 25February, 2019.

“The Deputy Head of the Public Service, Ms Cherie Whitter, will relinquish her responsibilities as Permanent Secretary for the Cabinet Office and will be dedicated full time to Public Service Reform Implementation.  However she will retain responsibility for the Department of Human Resources which will become the Department of Employee and Organizational Development; Management Consulting Services; and the contract management for the Public Sector Negotiating Team as the plan has implications for each of these entities.

“The Commissioner of Corrections, Lieutenant-Colonel Edward Lamb, will serve as Acting Permanent Secretary for the Cabinet Office from today, through May 25, 2019. He will assume responsibility for the Premier’s Office to which the following departments report: Information and Digital Technologies, ICT Policy and Innovation, and the Business Development Unit. He also has responsibility for the Ministry for the Cabinet Office Head Quarters, Post Office, Office of Project Management and Procurement, Statistics, the Safety and Health Office, and the Department of Communications.”

Dr Binns concluded, “The creation of the Public Service Reform Implementation entity will draw from existing resources within the Service and not require additional funds. It is expected that as part of the Public Service reform, ultimately savings will be realized as changes to how we operate will impact expenditure.”

Ryan Robinson Shortlisted As Regional Finalist In Commonwealth Youth Awards For Execellence

News   |   February 25, 2019

News Release: Future Leaders of Bermuda – On February 8, 2019, the Commonwealth Secretariat announced that Ryan Robinson Perinchief has been shortlisted as a Regional Finalist, one of four representing the Caribbean & Canada for the Commonwealth Youth Awards for Excellence in Development Work 2019.

Entrepreneurs, innovators and social activists are among the 16 high-achieving finalists chosen by a Pan-Commonwealth adjudication panel of judges, convened by the Commonwealth Secretariat. This included the High Commissioners for Barbados, Namibia and Papua New Guinea, and representatives from the High Commission of Bangladesh, the Commonwealth Foundation and the Commonwealth Youth Council.

The Awards recognize and celebrate the achievements of people aged 15 to 29 whose innovative projects are making a significant contribution to their communities and driving change in the implementation of the Sustainable Development Goals. Since their inception, the Youth Awards have helped raise awareness of the work of hundreds of young people, and to scale up their projects to make a bigger impact in their societies, nations and the globe at large.

This year, the Awards attracted five hundred nominations from 45 countries. Those shortlisted will be invited to attend the Commonwealth Youth Awards ceremony in London on 13 March 2019 at the Commonwealth Secretariat Headquarters. One exceptional individual will be chosen as the Commonwealth Young Person of the Year 2019. In addition to a financial grant to scale up their development work, finalists will each be awarded a trophy and certificate.

This is the first time a Bermudian has been selected, as the Commonwealth has confirmed that there has never been a regional finalist or regional winner from Bermuda in the past for the Commonwealth Youth Awards for Excellence in Development Work.

The next stage of adjudication requires finalists to submit a brief bio along with a video highlighting their organization and development work, and a one page summary of its impact in their community.

Finance Minister On OBA Track Record On Bermuda’s Debt

News   |   February 25, 2019

Finance Minister Curtis Dickinson moved to set the record straight on the former government’s track record on Bermuda’s multi-billion dollar national debt.

Speaking in the House on Friday, in his first Budget Statement the Minister shut down “accusations from some channels that this Government is a ‘tax and spend Government’,” and that  “increasing revenue is only being brought about by this Government and others have not raised taxes”.

“There can be nothing further from the truth,” said the Minister.

“The record will show that during its time in office, the former administration increased taxation from $866.0 million in 2013 to $1.052 billion in March 2018. This amount represents a $185.0 million (21.4%) increase.

“During this same period (2013–2017), GDP growth averaged a modest +0.1%. Therefore, the majority of this increase in taxes was from tax hikes rather than economic growth.

“Furthermore, it was the former administration’s plan to increase revenue to $1.146 billion by 2019/20 as set out in the last budget produced by the OBA in 2017/18,” he added.

He also disclosed that the former Government “refused to share” the contents of the CARTAC review of Bermuda’s tax system and its administration, completed in September of 2015.

“Many stakeholders requested access to this document, but the former Government refused to share its contents..

“This (PLP) Government tabled the CARTAC review in Parliament on 6th October 2017 so that Parliamentarians and members of the community could be made aware of the recommendations.

“The report indicated that the main objective of the tax review was to increase tax revenues.

“The former Government’s preference was to increase the revenue provided by the existing taxes, although it was open to proposals that would expand the tax base and improve equity.

“The main goal of the reform was to increase revenues by about $100–$150 million over a three-year period. Thus we can see that tax reform is nothing new.

“This Government did it in a transparent manner with the publication of the Tax Reform Commission (TRC) report, while the former Government did it behind closed doors with no public scrutiny.

“Honourable Members are aware that the Government released the Pre-Budget Report in advance of this budget. The Pre-Budget Report spoke of the choices we face and discussed them in the context of the risks that we face.”

Additionally, the report contains some policy options that were under consideration by the Government.

“The objective of a Pre-Budget Report is to raise awareness of the choices faced by the country and to stimulate discussion for moving forward,” the Minister added.

He reiterated that the policy options presented in the Pre-Budget Report “are just that: options”.

OBA: Children Not Interviewed In DCFS Neglect Investigation

News   |   February 26, 2019

• OBA MP Scott Pearman, Shadow Legal Affairs Minister

Children at the centre of investigations into abuse and neglect say they have not been interviewed as part of investigations into allegations against the Director of the Department of Child and Family Services, according to Shadow Legal Affairs Minister Scott Pearman.

“In his Budget Statement presented to Parliament last Friday, the Finance Minister, Curtis Dickinson, said that his Government’s Budget “must signal to the most vulnerable that they are not forgotten”.

This is a noble goal – one which all Bermudians will agree upon. But let us test these commendable words against what is actually happening to Bermuda’s most vulnerable today.

What in the world is going on with the Government’s so-called “investigations” into allegations of child abuse and neglect by persons at the Department of Child and Family Services?

Despite repeated calls from various quarters, the Attorney General has yet to personally explain, since the suspended Director returned to DCFS, what has actually happened at the Department.

And no one from the Government seems prepared to clarify who is actually in charge of these various “investigations.

The outcome of the first investigation – very properly commenced by former Minister Michael Weeks MP – has been buried.

The second investigation – apparently conducted by an unnamed person at the Department of Internal Audit – will also not be made public.

So, let me share with Bermuda what is not happening.  Remarkable though it may seem, no thorough, proper or transparent investigation is being carried out.

The lawyer Saul Dismont, who represents several children at the centre of the complaints of abuse and neglect, has confirmed to me that his clients were never interviewed as part of the so-called investigations into the Director of DCFS.

The first investigation was allegedly concluded months ago.  The second inquiry was announced by the Government as long ago as November 7, 2018.

How can the Government expect the Bermudian public to have any faith in a so-called “investigation” which is so fundamentally flawed that the complainants are not even interviewed?

The Government needs to treat these appalling allegations concerning our most vulnerable with the seriousness they deserve.

Allegations of abuse and neglect against Bermudian children cannot simply be swept under the rug as if nothing has happened.

If Bermudians are to have faith that our vulnerable are truly being protected, then the Attorney General must take charge of this matter and appoint an independent counsel – someone who has the public’s confidence to investigate these appalling allegations thoroughly and properly.