Chamber raises the alarm on ‘lax economic reporting’
The Bermuda Chamber of Commerce is highly critical of government delays in the release of periodical economic data, calling timely access to figures the backbone to sound decision-making.
In one of the concerns raised by the March report on the economy by the economic committee, it said it was unacceptable for the average time lag between report completion and public release to stretch as long as five months.
The document has called for a comprehensive review of the sugar tax in advance of the Government’s 2025-26 Budget to determine its effectiveness and assess whether it serves the original intent.
The tax should be either eliminated or reduced, or there should be clear demonstrations of how its funds are being used to support healthier options or supplement overall costs, the report said.
Entitled Head or Tails — A Coin Has Two Sides March 2025, the report calls for no increases in taxes for short-term tourism rentals, and a review of taxes for local dividends to allow them to be available as tax-free to assist in encouraging private capital investment in new and expanded business.
It calls for customs duty relief on construction materials, stating: “This is a staple of most Tourism Investment Act proposals. And given the cost to build, by some estimates, has well exceeded $650 a square foot for new residential builds, all avenues to support construction and property investment need to be reviewed.
“Private-sector construction over the most recent periods from 2022 to Q1 2024 remain at low levels seen from 2011 through to 2016.”
The chamber makes the case that if Bermuda wants a thriving retail sector to provide jobs along with consumer goods, duty rates have to be reconsidered.
“The total employment numbers have not grown from 2019 levels as yet, which also shows a reduced consumer base, and a change for the retail sector must be considered if we remain interested in having a viable retail presence in Hamilton.”
The chamber questioned the accuracy of rental data from the Department of Statistics, which it says “doesn’t fully square with anecdotal evidence”.
It is particularly critical of the Government’s statistical reporting. “Retail Sales and [Consumer Price Index] reports have faced significant delays over the years, and our research suggests the data collection itself hasn’t materially slowed,” the report states.
“The bottleneck lies somewhere.
“We urge the Minister of the Economy and Labour to wield Section 6(2) of the Statistics Act 2002 and mandate a fixed release schedule — CPI and retail sales out within 60 days of each month’s end.
“Beyond that, set clear timelines for GDP [gross domestic product], the Digest of Statistics, the Registry General Annual Report, and all regular publications.
“Timely data drives decisions, and should be released publicly direct by the departments once the respective director has signed off on the report.
“Additionally, the completion and release of the Household Expenditure Survey needs to be a priority given the current baseline of 2013 is materially out of date.”
“Unfortunately, our analysis shows a troubling trend: over the past 24 months, CPI data has faced an average release lag of 121 days, with a peak of 187 days for the January 2024 release on August 5, 2024.
“Ten years ago, this lag averaged just 32 days. There are similar, unacceptably long delays with Retail Sales Index [125-day lag average over 24 months], annual and quarterly gross domestic product, Digest of Statistics and Registry General reports.
“Based on our assessments, these reports are produced in a timely manner, but the public release has consistently been delayed.
“We call on fixed release schedules that are direct from the reporting departments, rather than from ministers, which removes appearance of political interference and is in line with best practice.”
The report further points out:
• The need for a clear pricing strategy for Bermudiana Beach rental units
• Proposals for the Landlord Tenant Act were expected last year
• Details for Caricom membership have not been released
• Economic Development Strategy details remain outstanding
• Corporate income tax details remain outstanding
• Several quangos have outdated financial audits
• Little information remains on the proposed digital bank
• For more on the Bermuda Chamber of Commerce Economic Committee report “Head or Tails – A Coin Has Two Sides” March 2025 Economic Report, see Related Media
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