Recently in this space, Minister of Finance, Bob Richards felt the need to criticise my statements on the economy. Mr Editor, the fact that the Minister would attack me is not surprising, but the lack of depth of the OBA’s ideas for diversification and growth of our economy is frightening. In this space today I will dissect some of the Minister’s comments in an effort to ensure your readers understand the true position of the Progressive Labour Party.

“What was particularly concerning about the Opposition’s statement was the absence of any commitment or belief in tourism and international business, as though they were yesterday’s story with nothing to offer Bermuda today or in the future.” – Minister Richards

On this point, Minister Richards is wrong. The PLP recognises the contribution of international business; after all international business activity in Bermuda tripled during the 14 years the PLP was in government — time that the Minister calls “years of mismanagement”. The PLP was a strong supporter of tourism and it was under the PLP that saw the first new hotel built in Bermuda for 35 years! The PLP continues to support international business and tourism, but the question shouldn’t be the level of support, the question should be, “Where will the new jobs come from?”

It was the OBA that promised 2,000 new jobs during their 2012 election campaign. In 2013, Bermuda lost over 1,000 more jobs and 2014 has seen the closure of major local businesses in Bermuda. Is Minister Richards putting all of his eggs in the international business and Tourism basket? Does he believe that those industries alone will create 3,000 new sustainable jobs in the near term?

Local business models are changing; the trends of globalisation and outsourcing will not be reversed. When you call CellOne for customer service you may be redirected to someone who is not in Bermuda. This company did what many local and international companies in Bermuda have done, outsourced jobs. Was this outsourcing of jobs from Bermuda because of term limits? No! Was this exporting of Bermudian jobs due to “years of mismanagement?” No! It was because the job function could be done at a lower cost outside of Bermuda, and the directors made the decision to export the jobs to increase their profits. Just as the model for local business has changed, so has it in the insurance sector.

“The Opposition described the reinsurance sector as a “mature industry” that cannot provide the growth Bermuda needs, but this indicates a misunderstanding of the industry. Reinsurance is cyclical in nature. Today there is a surplus of capital, meaning the industry is not growing, but the wheel will turn” — Minister Richards

We can debate whether the reinsurance sector in Bermuda is a ‘mature industry’, but I think that Minister Richards and I can agree that, notwithstanding its cyclical nature, the Bermuda insurance model has changed. If there is a need for another influx of capital it will not bring an influx of large new Class 4 physical presence reinsurers to set up here as happened in 2001 and 2005. Why not? Because the Bermuda insurance model has changed. Alternative capital and the natural efficiencies of a mature market combined with the cost cutting drivers that are demanded by shareholders mean that a large influx of capital will not automatically translate into a large number of new jobs in Bermuda. Again the question shouldn’t be an understanding of the cyclical nature of the industry, it should be, “Where will the new Jobs come from?”

Bermuda and Bermudians need jobs, and economic diversification can help create those new jobs. What we in Bermuda have to do is be bold, we have to think outside the box, we have to do things differently, and as Brian Duperreault said in a recent speech, “The status quo isn’t going to work. The way things used to be done won’t support Bermuda’s recovery. As a country, we have to be creative, innovative, and nimble.”

Generations of Bermudians have looked for that all-important third leg to the economy for the stability it could provide. But as a plan to bring economic relief to Bermudians suffering today, the Opposition’s ‘plan’ falls far short of what is needed.

In his writing, Minister Richards reduced the PLP’s economic plan to online gaming. The PLP position on online gaming is not our ‘plan’, it is just one of many items proposed by the PLP that form part of a plan for needed diversification. However instead of discussing the merits, Minister Richards, as many other pundits have done, simply derided the idea of online gaming in Bermuda. Why? Other overseas territories (Gibraltar, Guernsey, Isle of Man) are creating good jobs and collecting government revenue from this industry; why shouldn’t Bermuda do the same? Online gaming is a $35 billion industry that is growing worldwide. Gibraltar alone collected $80 million in tax revenue and this industry supported 2,600 jobs in their economy. This is an industry in which Bermuda can compete and we are well positioned to do so because we have the office space, lawyers, accountants, IT companies, and existing excellent telecommunications infrastructure. If we were able to build an industry only ¼ of the size of Gibraltar, we would have $20 Million of additional government revenue and 650 new jobs. Is online gaming a panacea? No; but can it help? We think it can.

Does Minister Richards have any ideas for new industries that can create 650 new jobs in Bermuda? If he does, he should share them with the Bermudian people at his SAGE town hall meeting tonight. Minister Richards is famous for saying we cannot cut our way out of this recession, so Bermudians need to ask, “Where will the new jobs come from?”

It is imperative that the OBA get serious about developing sectors that can supplement international business and tourism. It is the PLP’s view that there is not enough effort being put into attracting new industries into Bermuda that can create new jobs to make up for those that have been outsourced and lost forever. To keep its promise to the electorate, the OBA needs to create 3,000 more jobs. All of us in the PLP want to see more jobs, and more Bermudians working, but we will not get our Bermudians back to work in a long term and sustainable fashion without Minister Richards and the OBA putting more serious effort into economic diversification.