Log In

Reset Password
BERMUDA | RSS PODCAST

Economic uncertainty

from the United Bermuda Party about its lack of a published platform for the upcoming General Election.

Yesterday, Chamber of Commerce president Michael Smith added his organisation's views, saying that businesses needed some indication of where the PLP stood so they will not be in "a cloud of uncertainty'' if the PLP wins.

Mr. Smith added: "It's important that the business environment is not disrupted. There are some fragile sectors.'' At the same time, a number of prospective developers, including Camberley and an unidentified developer of Morgan's Point at the former US Naval Annex, have said they will not sign any contracts with the Government until after the General Election.

The period before any election, carrying with it the possibility of a change in Government, will always be a time of some uncertainty.

It is also understandable that developers should hold off on signing contracts and making commitments with a government when they could well be dealing with people with quite different views on the way things should be done in a matter of weeks.

Nor is it fair to say that the PLP -- while it has not yet produced a platform -- has said absolutely nothing about its future plans.

In September, Shadow Finance Minister Eugene Cox announced the PLP's economic policy at a Press conference.

Among other things, it promised a tripartite commission to advise on the overall direction of the economy, a "national tourism plan'' and an extension of the tax exemption of international companies for a further four years beyond 2016. It also said it would encourage employee stock ownership of companies.

For those looking for security and stability, the PLP's position on international business should give some comfort. But much of the PLP's position needs to be fleshed out and expanded on.

We also have to wonder if the business community has been rattled by Shadow Tourism Minister David Allen's statement that the recently signed cruise ship contracts will be reviewed if the PLP wins the election.

In September, he said: "We are not going to tear up a contract which holds up in law. At the same time we have not seen these contracts, so it may well be there is some flexibility in them.'' At a time when global stock markets are in turmoil and credit is tightening, prolonged uncertainty about the future of the Island and the validity of existing contracts sends the wrong message to the world and could do long-term damage to the economy.

Presumably the PLP is awaiting the announcement of a General Election date before it unveils its platform. But as there is no doubt that an election is coming, and coming soon, it would benefit all of Bermuda if the PLP revealed its comprehensive plan for the future of the Island now.