The Opposition Senate Leader has called on Government to provide more transparency to taxpayers in an era of recession.

"All Bermudians, and people throughout the world, expect governments to be fiscally responsible and to manage our economy in the best possible way," Michael Dunkley told the Senate yesterday.

"But it's my opinion that this Government has embarked on a multi-million dollar spending spree which I believe has made Bermuda vulnerable.

"There has to be some concern about how we've spent money in the past. This Government is pushing unprecedented spending and debt on to the shoulders of our children and grandchildren."

His comments come as The Royal Gazette celebrates Sunshine Week — an initiative aimed at promoting dialogue on transparency and open government and in line with our A Right To Know: Giving People Power campaign.

Sen. Dunkley said: "During last year's economic debate I highlighted some warning signs on the horizon and at that time felt we weren't focusing on them as strongly as we could, such as the weakness of the US dollar.

"In February and March 2008 there was talk about the threat of recession and we all know now we are in the midst of recession.

"There was also at that time the Presidential election running in the US and there was talk by Democratic candidates that our business environment as a favourable tax haven is being looked at.

"In the UK, Prime Minister Gordon Brown is now taking the same kind of overview that they are going to crack down on overseas business jurisdictions.

"Bermuda is already a very expensive place to live and work so we need to pay close attention to these warning signs."

He said crime and social ills were also increasing.

"Not only have we squandered our revenue, we have squandered the ability to deal with many of our social problems.

"I don't think we've dealt with social issues during the good times, when we should have dealt with them," said Sen. Dunkley.

"I believe this Government, if they saw the dark cloud on the horizon they didn't focus on it as much as they should have done and now the storm is here.

"We applaud the move by this Government not to raise taxes at all, but Government is not cutting its spending."

Sen. Dunkley said although Government had announced it was to trim its Ministerial budgets by 10.5 percent, he had not seen any evidence of such action.

"I don't see a 10.5 percent cut in spending," he said. "I would like to see how that 10 percent got sliced in some areas, and was it ever put into action in others?

"Taxation and spending has been going on in recent years without restraint."

He said the estimate for current account expenditure for 2009-2010 was now at $967 million. This was an increase of $105 million on two years ago.

"In two short years we've seen an increase of $105 million in current account expenditure.

"That sounds good if it is argued Government has spent more on the people of Bermuda, but for every dollar spent you have to raise this money from the taxpayer.

"We need to question whether we have had value for money."

He added: "We've seen an increase in taxation, in current account revenue, of $53 million over two years. "In the last two years expenditure has risen $100 million but revenue has only risen by $53 million, that's a shortfall of $47 million."

Commenting on capital expenditure, he said: "Many projects haven't been planned properly or managed properly.

"With all our capital projects we should focus on proper management and accountability for the people of Bermuda."

He said the new court and Police building had been budgeted at $60 million but was now "closer to $80 million".

"Projects are surrounded by controversy due to unanswered questions. I believe we must try to get back to accountability and transparency," he said.

"No one would have handled their individual finances with such a cavalier attitude unless they had money to burn."

He said there was a $65 million increase in debt due to a Budget deficit of $196 million, up from $141 million. The debt ceiling had now grown to $1 billion, equating to $15,000 for every Bermudian.

"We need to pay close attention and reduce this deficit as much as we can. In four years there's been an almost five-fold increase in debt," he said.

"I would also like to hear how Government expects to pay off that debt. Or will it be an anchor around the neck of our future generations?

"I'm not willing to put that anchor around them. Let the record show our objection and lack of support over the lack of concern from Government backbenches about the size of debt we have to pay.

"There certainly needs to be a plan to pay it down or pay off the debt. I would certainly like to see a plan.

"I am extremely disappointed the Government has failed to control expenditure and has not used the healthy economy of the past to reduce the national debt, but has instead allowed that debt to continue to rise.

"Government is accountable."

Sen. Dunkley also criticised how much Government was spending on consultants. Sen. Dunkley said: "One person in Works and Engineering now receives $200,000 a year but it has never been clarified what this work is and why the increase, by $80,000 to $200,000. It is important for someone to come forward and say why this work is needed.

"And Faith Based Tourism. Who can forget the gentleman who squandered hundreds of thousands of dollars? Why has there been no explanation? I believe this is totally unacceptable.

"There's a prevailing opinion in the community there are two sets of rules one for Government and one for the people. We have to get back to leading by example.

"Another concern with the Civil Service is the interference by Ministers contrary to orders, guidelines and general practice."

Referring to Works and Engineering Minister Derrick Burgess requesting his staff "not to comply with the Auditor General" during the investigation over the LLC 'false cheques' scandal, Sen. Dunkley said: "In my opinion actions like this create an atmosphere of intimidation and fear and it is not conducive to a healthy environment."

He said that any changes to capital project budgets such as to the emissions testing centre, second cruise ship pier, housing initiatives, golf course improvements or the urgent care centres, needed to be explained to the public.

"It is important to come out and give a full explanation of the change, why budgets have gone up," said Sen. Dunkley.

"It's important there is accountability to these projects."

"We have a responsibility to ensure economic restraint and accountability with people's money at all times.

"We have a responsibility to ensure our future generations are not encumbered by our actions."

Opposition Senator Michael Fahy also touched on transparency and the need for a freedom of information law in Bermuda.

He said: "I don't think the people of this country can get properly involved in how money is being spent unless we have that kind of legislation."

Sen. Brown added that while some had criticised the Government for raising the debt level to $1 billion it was important to note the Government had never had any difficulty paying its debt off and continued to be highly rated by international institutions.

He added that while Bermuda was feeling the effects of the current international climate unlike other countries the Island exported its unemployment in that work permits were not reissued.

Sen. Brown ended his speech by stating Bermuda needed to ensure it was not labelled a tax haven internationally.

He said: "We are not a tax haven. We have taxes, we just have a different system and we need to make sure people understand that."

Senator Joan Dillas Wright added that Bermuda was starting to feel the brunt of the international economic climate and added that Government needed to take on some of the criticisms of the Opposition regarding the budget when it came to financial management and controls.

But she added that she also wanted to applaud the Government for keeping Throne Speech promises such as implementing Future Care next month and using confiscated assets from drug related cases for drug rehabilitation programs.

UBP Senator Michael Fahy said he did not believe the Budget was perfect and added that while the US could be partially blamed for Bermuda's current economic situation there was also some blame to be placed on Island.

He said: "If the current Government had saved some money for a rainy day we might not be where we are today."

Sen. Fahy added that he hoped to see more transparency within Government and stated that he did not support recent criticism of the Auditor General, adding that it was the Auditor General's role to hold the Government accountable when it comes to spending public money.