Opposition deputy leader David Burt said the PLP is not against budget cuts, while pointing to the PLP’s proposal for a joint One Bermuda Alliance-Progressive Labour Party immigration policy as an effective method to resolve Bermuda’s financial difficulties.

Mr Burt was responding to comments in yesterday’s Royal Gazette by economist Peter Everson, who compared increased population numbers and economic resurgence in the Cayman Islands with Bermuda’s struggle to attract investors and new residents.

Mr Everson had said during his interview in yesterday’s newspaper: “We have the OBA which is trying to cut back, but not at the pace of the Caymans, and an Opposition party which believes Bermuda would be better off not cutting back.”

Mr Burt, who is also the shadow finance minister, asked why investors are not “banging down” Bermuda’s door with the OBA’s less restrictive immigration policies.

He also said Mr Everson was incorrect. “The statement is 100 per cent false. The Progressive Labour Party are on the record supporting the spending and the deficit being reduced. We’d pay more attention to growth. We believe the OBA cutbacks have done harm to the domestic economy.”

Meanwhile, top Caymans business figure Anthony Travers and Bermuda elder statesman and successful businessman Sir John Swan said that the key to revitalising ailing economies lay in ending restrictive practices and welcoming investment by outsiders. See Business, P25.

Speaking from his Dundonald Street office yesterday, Mr Burt said that the PLP had explained where they would make cuts in the budget reply delivered in March, while noting that the OBA’s cutbacks are more aggressive than those recommended by the SAGE Commission.

He pointed to the budget deficits that Bermuda has experienced, and said: “Cutting back is not going to solve the problem.” He added: “The deficit is larger because the economy is weak, (and that is) because the policies are not the correct policies — cutting back on tourism, cutting back on productive investments.

“The PLP would boost investment on things that would grow the economy.”

Mr Burt referred to his budget reply, where he said: “Last year we pledged that if we were government we would have reduced current spending by $40 million compared the OBA’s stated pledge to reduce current spending by $70 million. The extra $30 million in spending was earmarked for:

• Education — $5 million

• Energy — $5 million

• Tourism Authority — $5 million

• Training, Scholarships & Workforce Development — $4.3 million

• Community, Children & Sports — $3.7 million

• National Security — $3 million

• E-Government — $2 million

• Bermuda College — $2 million

“It was our view that while we needed to tighten our belts we did not want to cut back spending too quickly and choke off any nascent recovery in the economy,” he stated in the House of Assembly.

Mr Burt said yesterday the Government has made “zero progress” on balancing the budget, and pointed to $300 million deficits for two years.

“The deficit is exactly the same. It has not changed. It was $300 million under the first OBA budget at $300 million under the second.”

“We are stuck in a cycle, a cuts cycle” he said.

An editorial in the Cayman Compass said that the 4.5 per cent growth in those islands’ population in 2014 had been largely fuelled by 1,800 non-Caymanian residents, most of them work permit holders. It added that unemployment among Caymanians had dropped by 1.5 per cent to 7.9 per cent.

Mr Burt stated that all members of the Government in the Cayman Island support the same immigration policy, and that is what has driven their economy.

“You take the argument that immigration is what you need — then why aren’t immigrants banging down our doors? (When the PLP were the Government) the Opposition attacked us because we had a record number of work permits. Back then, immigration practices were restrictive.

“Now if it is looser, why aren’t investors banging down the door? The reason the investor is not banging down the door is that the OBA is a very weak government, and investors are fearful that after the election immigration policies will change. You don’t plan your investment strategy based on an election timetable,” he said.

“That’s why it’s important to have a joint select committee.”

Mr Burt said the PLP would like to see separate policies for domestic and international business applications developed.

“We need to follow the Cayman example — collaboration, and speak with one voice.”