Mr. Speaker, Honourable members of the House of Assembly,

It is a privilege to deliver my second Reply to the Speech from the Throne on behalf of the United Bermuda Party.

Bermuda is facing challenging times and we as Her Majesty's Loyal Opposition will do all we can to hold this Government to account while providing ideas and plans that can give the country the direction and assurance it needs.

We are a diverse group of men and women and it is from this healthy base that we will speak to our vision of One Bermuda – a Bermuda for everyone.

Mr. Speaker,

In 1990 the United Bermuda Party Government prepared the island for a widely expected economic recession. The signs of a downturn in the United States economy had been obvious. The UBP leadership at the time readied Bermudians for tough times with straight talk about the impending downturn and the need for sacrifice and strong action to minimise the impact.

The Government followed with a bold anti-recession plan that involved all segments of Bermuda. Government budgets were cut, programmes were deferred and a special debt sinking fund was created to protect the island's borrowing position.

The measures enabled the government to meet the surge in demand for social assistance and to create Bermudian jobs as the recession settled over the island while positioning the country for a relatively quick recovery when conditions eventually improved.

Mr. Speaker,

I mention the UBP Government's handling of the recession in the early 1990s because it is an example of decisive leadership. It is an example of a government on the alert, assessing conditions, developing a plan and putting it to work. It stands especially as an example of a government leading by example; taking a hard stand in the best interests of the entire community.

The contrast with the PLP leadership of Bermuda today could not be more stark. Where once was clear-eyed realism, community engagement and leadership, we have a government with its head in the sand, disconnected from the concerns and anxieties of everyday people and indecisive in the face of economic crisis.

Mr. Speaker,

It is not a stretch to say that any stranger coming to this island that read or listened to Friday's Speech from the Throne would have no clue, no indication that Bermuda is facing what is potentially one of the most severe economic challenges in its modern history.

If any Bermudian was looking to the Speech for guidance or assurance that the PLP Government was on top of the crisis, they were surely disappointed. For reasons known only to it, this Government does not want to talk about the economy and the risks that lie ahead.

The economic crisis is the biggest challenge facing the world today. It is virtually the only thing responsible governments are addressing, yet this Government appears to live in "Another World".

Mr. Speaker,

It is our view that what is missing from the Throne Speech is more important than what is actually in it. It astounds us that the economic crisis was the focus of just two paragraphs in the ten-page Throne Speech, a document that offered the government all the scope it needed to address any concerns and priorities for the year ahead.

Our unease deepened when the Government used a quotation by Nobel laureate Ben Okri to frame its view of the economic crisis, which was referred to as "the event". The quotation reads: "What we need now more than ever is a vision beyond the event, a vision of renewal."

Mr. Speaker,

By these words, the Government appears to be sidestepping the crisis, to be wishing it away. While we appreciate the need for a vision after the event, the hard fact is that the people of this island will still have to live through the event. It is near upon us, but this Throne Speech provides no understanding, no guidance and above all no plan.

Mr. Speaker,

It amounts to a gross abdication of leadership. This government is in a state of denial, and so our first advice for the Government in this Reply is 'Wake Up!' The downturn is real and it is heading our way.

Here are some facts:

¦ More than 1.2 million Americans have lost their jobs this year; unemployment is forecast to grow.

¦ America's largest retailers reported a spending collapse in October, with store chains recording double-digit sales drops, some more than 20%.

¦ The US Consumer Board Confidence Index plunged to an all-time low in October.

¦ The mortgage crisis has left millions of Americans with homes valued less than their mortgages.

¦ Multiple failures in the financial system that Bermuda's economy depends on continue to send shudders of uncertainty across the world.

¦ Credit markets are dysfunctional making it extremely difficult for companies to conduct and grow business. The US government has moved into the breach by injecting hundreds of billions of dollars to shore up lending institutions, restore confidence and prevent economic collapse.

Mr. Speaker,

History has shown us that when the United States catches cold, Bermuda catches cold. Although the full impact of what is happening stateside has not yet reached us, we are already experiencing the first shivers of a downturn.

¦ New company registrations in Bermuda were down 13% in the first quarter of this year and down 40% in the second quarter ending June.

¦ New insurance incorporations were down more than 50% in the second quarter compared to the same period in 2007

¦ The mid year company incorporation total is the lowest since 1991.

¦ Retail sales in Bermuda have fallen to a point that the industry is now closing shops and laying off workers.

¦ Tourism air arrivals fell 9.6% in the first half of the year, while their spending dropped nearly 14%. That amounts to 32 million fewer dollars coming into island businesses than the same period last year.

Mr. Speaker,

It is highly likely that the third quarter statistics will show even further deterioration.

In the face of these downward trends, the PLP Government gives the impression of a deer caught in the headlights. It has failed to respond in any concrete way to the warnings that have come to us from overseas and from sources here at home.

We first raised our concerns last February when the Government's Budget took no precautionary steps for an economic downturn.

This was a disturbing omission and so my honourable colleague, the Shadow Minister for Finance E.T. (Bob) Richards, used his Reply to the Budget Statement to point out what was on the horizon for the island.

"The evidence is clear," he told this Honourable House ten months ago, "that the US is headed for a period of slow growth, no growth or contraction, and will drag the global economic growth rate down with it.

"Bermuda," he said, "does not operate in a vacuum, indeed the Bermuda economy is more dependent on outside economic and regulatory factors than any other country I can think of.

"Therefore, it is critical that Bermuda and its Government adjust its plans, its strategies and its spending habits based not only upon local needs, but also on the imperatives of the global economy."

Mr. Richards continued to report on the economy through the summer, with specific recommendations for action but the Brown Government remained silent. Its inaction has troubled more than a few people.

Just last month, the US Consul General took the extraordinary step of telling Bermuda that it was already in recession, and that the island was at a turning point in its economic history. This was an example of plain speaking from a friend of Bermuda who is clearly concerned that the Government is not communicating the gravity of the situation, nor taking steps to ready the island.

Mr. Speaker,

We on this side of the House have asked ourselves why the government can barely acknowledge the economic crisis and why it appears immobilised on the biggest issue facing this fair island. Part of the problem, in our view, is that the PLP Government has been on autopilot, coasting for a decade on the strength of an economic engine created by the successive United Bermuda Party governments – an engine that kept people employed, grew incomes, built industry, created careers and, along the way, the world's highest per capita GDP, according to the World Bank.

This engine provided PLP governments with huge unplanned annual revenue surpluses – nearly $320 million between 2002 and 2007.

We believe the easy returns, primarily from international businesses, fostered complacency at the highest levels of government, a complacency that fails to understand that the engine requires constant care, vigilance and innovation to maintain Bermuda's competitive edge. Outsiders have lent credence to our concerns.

In September 2007, the International Monetary Fund found that Bermuda's regulatory system failed to meet acceptable standards in eight of nine categories. IMF inspectors revealed that the Government of Bermuda had simply failed to implement dozens of recommendations that followed its 2003 inspection some four years before. This negligence – can there be any other word for it? – saw Bermuda ranked below Third World countries such as Panama and Vanuatu.

The US Consul General's public statements last month must also be seen as a call for the government to end its complacency. Mr. Slayton said it was time for some hard-thinking about the Bermuda economy.

"I think it might be dangerous for Bermuda to continue business as usual," he said before suggesting the creation of a joint leadership team to deal with the issues facing Bermuda because, and I quote, "I am concerned about Bermuda's future and… the economy."

Mr. Speaker,

One more reason we believe the Government is complacent lies in the very structure of the economic engine it inherited. The shock of 9/11 in 2001 and the disaster of Hurricane Katrina in 2005 perversely benefited the Bermuda economy through the influx of insurers and capital to create additional insurance capacity.

Mr. Speaker,

One could be forgiven – even those at the most senior levels of government – for thinking that Bermuda existed in 'Another World'. But our message today is that Bermuda is part of the real world. There can be no denying the troubles ahead.

This time there is no natural disaster out there to give us a free pass, as happened in 2001 and 2005. This recession is about the battering of the American consumer and the American financial system and that can be nothing but bad news for us.

Mr. Speaker,

It is our view that Bermuda has not been prepared to face what may well be the worst downturn in a generation. We are urging government to rouse itself, splash some cold water on its face and start leading.

Over the past year, we have invoked the Biblical parable of seven fat years to prepare for seven lean years. The years just passed in Bermuda have indeed been fat but there has been no preparation.

As mentioned earlier, government coffers between 2002 and 2007 were enriched to the tune of $318 million in unbudgeted, unplanned windfall earnings, virtually all from international business. Despite these unexpected gains, the Government's undisciplined and profligate spending took Bermuda to its highest ever debt level.

Under the current Finance Minister, who came to the post in 2004, the gross national debt mushroomed from $160 million to $456 million while interest payments on debt rose from $8 million a year to $26 million a year. These years also witnessed stunning growth in Bermuda's budget deficit before borrowing from $26 million to $131 million.

The figures suggest that Bermuda's capacity to borrow in the tough times ahead – borrowing that might be used to support the needs of families — will be constricted by the spending spree of the last few years.

Mr. Speaker,

While Bermuda's capacity to weather tough times has been diminished by a lack of responsible financial management and planning at the government level, it has also been weakened in human terms, which has much to do with the tone and image set by the Government. The United Bermuda Party and others across the community have been critical of this Government's heavy reliance on overseas consultants to conduct the people's business.

Consultants have always played a role in the governance of Bermuda, whether for their special expertise not found locally or to make up for a shortage of manpower. Overseas hiring was conducted by UBP governments as a matter of course, often against the strident objections of the PLP. But since the PLP came to power, the reliance on overseas consultants has become an addiction. It is possible to believe that consulting this Government is now the fastest growing industry in Bermuda. This year's budget allocated more than $79 million for Professional Services – a shocking figure.

Overseas consultants are now running our hospital. They are in charge of the reform of public education. They have supplanted Tourism's North American sales staff. They occupy key positions at the Finance Ministry and they have been retained to advise on hotel development and reform our planning regulations.

The list goes on, but one must ask when did Bermudians become the second choice in this country? Who decided that Bermudians could no longer run a hospital? Who decided that Bermudians could not reform their own planning laws?

The reality is that this Government by its own decisions has systematically shut out Bermudians from participating in key areas of the economy. The practice is stunting our ability to grow expertise and experience, depriving the island of home-grown skilled hands that can help keep the island going in tough times.

Mr. Speaker,

There is another area where the Government is diminishing our capacity to respond to national challenges.

One of the hallmarks of a healthy democratic society is the free-flow of information between people, where views are expressed without fear. But a climate has spread across Bermuda for more than a few years in which people are reluctant to speak out for fear that they may pay a price for their views. This must stop and it is up to the government to show that vindictive behaviour has no place in the New Bermuda.

Intimidation, whether intended or not, has cowed too many important voices in this community. Hamilton businesses remained mostly silent when they learned there was no dedicated cruise ship for the city this year or next – a decision that made no economic sense for anybody.

In similar ways, hoteliers and their tourism industry partners remained tight-lipped while poor decisions were made and the working relationship between them and government unravelled. We also know that international business people have learned to keep quiet about their concerns because engaging the Government on all but the most crucial issues is deemed to be counterproductive.

Mr. Speaker,

We are breeding a culture of every man for himself at a time we need to bring people together to reach the best possible solutions. People need to feel free to express themselves. If they don't, we will lose the dialogue that is vital to sound decision-making and broad-based solutions to the challenges before us.

Mr. Speaker,

Leadership is critically important at this time. Consider the importance of Gordon Brown's intervention in the credit crisis and the almost palpable desire for President-elect Obama to start governing now. People across the world are looking for leadership and Bermudians are no different. They want clarity and direction from their political leaders.

Although this Government has shown no leadership on the economy, there is still time. It would be easy for us to continue criticising the Government – and we will do so because things need to be said – but we are also fully cognisant of our role as Her Majesty's Loyal Opposition. We will therefore use this Reply to put forward ideas the Government can use to provide the country with the leadership it deserves.

The economy

Mr. Speaker,

On matters of the economy the first order of business is for the government to level with the people. It needs to provide a straightforward analysis of the economy, where it is and where it is going. The country needs to be given a better understanding to make the best possible decisions about the way forward. We say to the Government: Be straight with the people. They will appreciate it.

Mr. Speaker,

The Government should eliminate non-essential spending. The Finance Minister needs to impose a concerted, disciplined austerity plan, including an immediate cap on public service hiring. For too long the Government has spent wildly on public projects such as the Berkeley school while indulging in excessive travel, larger GP cars and open credit cards.

People understand the need for cost-cutting in lean times, but they also need to know that everybody's doing it and that it starts at the top. Imposing austerity measures on itself will give the Government credibility to ask others to sacrifice. This is what leadership by example means.

Mr. Speaker,

Social support programmes must be prepared for increased demand for assistance. Precious time has been lost. In particular, we urge the Government to set aside additional money for Housing Assistance and Social Assistance, two programmes that saw significant demand increases in the last recession.

Mr. Speaker,

The Government should plan to keep people employed. Adjustments must be made to replenish its capacity to start public projects over the next period.

There is no immediate need to move Government projects forward because the construction industry is still fully employed. But as current projects are completed there is real potential for significant layoffs.

It is essential at that point that the Government be ready to take up some of the slack with projects that provide jobs lost during the downturn.

And when Government moves these projects forward, it must spread the wealth. Why should more than $100 million in current Government contracts have been handed over to an "axis" of two or three construction bosses close to the Premier? After all, this is not the Government's money; it's the taxpayers' money, though we are not sure the Government sees it that way. Government must play fair with other contractors, both large and small. We say: Stop playing favourites. Openly tender the jobs. Spread the business.

Mr. Speaker,

We would like to see the Government encourage all Bermudians to play their part in supporting the economy.

The Buy Bermuda campaign should be given new life. With a strong message about helping the country, supporting your friends and families, Buy Bermuda can help keep Bermudians employed and businesses running.

Mr. Speaker,

Many small businesses are hanging by a thread, in part because of the decline in tourism. Lay-offs are starting to happen. To help them survive and keep their staffs employed, the government should prepare to cut their payroll tax.

Mr. Speaker,

We support the water conservation and production measures put forward in the Throne Speech, but believe we can go much farther. Each year Bermuda sends tens of millions of dollars overseas to pay for fuel. The Government alone spends nearly $20 million on energy. We believe the economic crisis is an excellent opportunity to promote energy conservation and move the country toward a new energy policy. Once again, the Government can provide leadership with an aggressive national approach to energy conservation in the home and the workplace, and it should start with the government.

International business

Mr. Speaker,

The Government must repair its relationship with international business, which supports the livelihood of thousands of Bermudians and scores of businesses.

That this Government has taken an adversarial approach to this vital component of our economy makes no sense. It undermines Bermuda as a place to do business and makes us vulnerable to international competitors. It puts all of us at risk. This relationship must be fixed now. The divisive racial politics seen from the Brown Government in the last election, as well as the constant sabre-rattling on independence are deeply unsettling to members of the international business community.

As a start, we recommend that Government allocate more resources to BIBA and also begin a concerted program to explain to the broader community the contributions and critical importance of international business to everyone, not just the thousands of Bermudians who work for international companies. International business must be made to feel welcome and this will require the Brown Government to seriously address those issues which make Bermuda less attractive, including crime, work permits, term limits, government bureaucracy, public education, lack of transparency and the high cost of doing business.

Mr. Speaker,

The Government must also do a better job in Washington.

The fact that we became a target in the US election says we are failing to explain Bermuda to US legislators and politicians. We need to make a far stronger case than the unconvincing effort by the Premier during a recent CNBC interview in London.

Bermuda needs a deliberate, sustained and focused diplomatic effort to make sure that US politicians fully understand the contributions Bermuda makes and that they don't act against us as a tax haven.

Once-a-year photo-ops in the corridors of Congress are not doing the job.

Working Washington will be a serious challenge in the year ahead as the new US Administration looks to shore up the country's financial strength. Failure to succeed in this diplomacy could carry very serious consequences for the island.

One pragmatic step we recommend is a ban on corporate inversions in Bermuda. This is a practice that has upset US legislators. It is our view that the risks inversions carry for Bermuda far outweigh the benefits.

Tourism

Mr. Speaker.

No single industry is more threatened by the economic crisis than Bermuda Tourism. It is hanging by a thread. Air arrivals fell nearly 10% in the first half of the year with accelerating declines expected through the year end. November is shaping up to be the worst November on record and the next five to six months look to be, in the words of one hotel source, "absolutely terrible."

Overseas, US analysts predict a protracted decline in leisure travel for the remainder of the year and into 2009. Demand for luxury hotels has plummeted since mid-September. Surveys show well-heeled travellers will travel less and that companies are cutting back on executive travel. This latter finding corresponds with local information that "business people are not coming."

Mr. Speaker,

Before one attributes the ailing state of our tourism industry to external causes, it should be clear that many of our problems are home-grown.

Bermuda Tourism's marketing organisation is in a shambles. The Government has presided over a physical retreat from key North American markets through the closing of Bermuda Tourism offices. The relationship with travel agents — still an important link to customers for hoteliers — has been allowed to wither on the vine.

The working relationship between government and hotels is a thing of the past. There is little if any marketing co-ordination or information sharing. Spending decisions are made without consultation. And the government continues to focus tremendous resources on marketing initiatives that are simply not attracting sufficient numbers of visitors to the island.

In the lead-up to summer, despite indications of a significant drop in arrivals, the Government did not put together a battle plan to boost business. That was irresponsible. Our call for emergency tactical spending in core markets to save the season was ignored. That was negligent. Today, there is no plan to drive up business in the months ahead.

On the hotel development side, the lack of results continue to fly in the face of the Premier's sunny pronouncements that hotels will be built. And so we ask: "Where is the Park Hyatt? Where is Jumeirah? Where is the Par-la-Ville Ritz-Carlton?" Where indeed?

Mr. Carl Bazarian, the would-be developer of the Park Hyatt in St. George's, caught our attention recently when he said in answer to a question on his development that he had to go back to his financial sources. We took that to mean Mr. Bazarian does not have the money to build.

The harsh reality is that the outlook for new hotel building is bleak. If Bermuda developers could not raise the funding for their hotel projects in the past five years, when markets were flush with cash, there appears little chance of funding in the wake of an economic crisis that is driven in part by severe dysfunction in credit markets.

Mr. Speaker,

The Premier needs to level with the people on these hotel projects. Tell them the truth and trust them to understand.

Similarly, the Premier needs to dial back the spin on tourism. The Throne Speech description of tourism as the "resurgent pillar of Bermuda's economy" is the latest example of rhetoric masking difficult realities. For too long, the Premier has given people a false sense of security about the state of tourism. We have called on him to replace the hype with truthful language. His repeated claims of tourism success subvert the collective understanding that Bermuda needs to make the right decisions for a better tourism product.

Mr. Speaker,

To get Bermuda Tourism operating more effectively, we need to restore teamwork between the government and its private sector partners. There needs to be marketing co-ordination and greater information sharing between the government and hoteliers. A more disciplined, concerted effort needs to be focused on proven markets – to "fish where the fish are." There have been too many distracting marketing initiatives that do not support the bottom line.

Mr. Speaker,

The Government should extend relief to hotels wherever possible. If we are serious about this once great industry, if we want them to provide jobs and contribute more to national earnings, we need to provide relief for their high-cost operations. We therefore urge the Government to review possibilities for additional relief including land tax, fuel tax and the summer payroll tax.

Mr. Speaker,

This is an appropriate time to follow other jurisdictions to create a Tourism Authority to provide professional rather than political direction for the industry; an Authority led by hospitality professionals and directed by a board chosen from the hospitality, financial, union and government sectors, and with the mandate to develop business strategies and manage product development and marketing. The Authority's primary goal will be to make Bermuda competitive again as a tourism destination, and its business-based mission will make it accountable to that goal. Accountability for Bermuda Tourism's performance has been missing for too long.

Mr. Speaker,

We believe the Premier should appoint a new Tourism Minister. The Premier took the post in 2004 and has had enough time to have a positive impact on the industry whose performance remains below 1999 levels, except in the unprecedented reliance on cruise visitors.

Last week the Premier fired his Education Minister for what was reported as "lack of progress" on education reforms. The Premier should hold himself to the same standard. He should bring someone forward with fresh eyes and new energy and use the step-down to focus his Government's energy on the economic crisis.

Education

Mr. Speaker,

When it comes to education reform, we believe the PLP Government's intentions are good. Indeed, the state of the public education system is at the heart of many of the issues that concern all of us as Bermudians. Fairness, equity, opportunity, economic empowerment, stability, social cohesiveness and competitiveness as a country all depend on getting public education right.

The release of the Hopkins Report and subsequent events over the past 18 months has not increased confidence in the public education system. The exodus of students from public schools continues. External exam scores continue to decline. And despite the allocation of substantial resources toward education reform- the average annual cost per student is now in excess of $20,000-we do not see tangible results. This Throne Speech states, "The bold steps made by the government in reversing the decline in the public education system will continue."

Indeed, Mr. Speaker, just last week the Honourable Premier took a bold step when he fired the 6th PLP Education Minister, saying that progress had been too slow. If we take the Premier at his word, then even the Government believes that its own reform process is floundering.

On the other hand, Mr. Speaker, some in our community have argued that Minister Horton was a victim of political manoeuvring and that internal PLP politics was given a higher priority than continuity in education reform. If so, it's very discouraging, as our students will end up as collateral damage in a battle they didn't ask for. Regardless of what happened behind the scenes, Bermudians are left to watch the continuing saga of PLP mismanagement of the education system. Seven education ministers in ten years: it's a sad testament to the failure of the overhyped PLP education promises that swept the party to power under former Premier Dame Jennifer Smith in 1998.

Mr. Speaker,

The United Bermuda Party believes that a year and a half out from the Hopkins Report is enough time for reasonable people to expect visible results in the reform process. But parents, students and teachers have seen little more than hastily drafted legislative amendments and a new multi-tiered organisation chart for the Department of Education.

The resounding and consistent message from key stakeholder groups about government's reform process is the same: "No collaboration, no real consultation, no clear plan and no trust."

Mr. Speaker,

We can never expect to attain real education reform when those who have to make it work in the classroom-the teachers and principals — are deliberately distanced and alienated from the process. Unfortunately, this lack of collaboration seems destined to continue. The PLP Government recently announced that yet another group of highly paid overseas consultants – ISOS – had been retained to write a five-year strategic plan for implementation. Apparently, the PLP Government does not believe Bermudian educators should have much to say about implementation although they will be the ones expected to carry out the plan.

Nevertheless, we look forward to Government's promise to "arrest the trend of anti-social behaviour in the school setting." Addressing behavioural problems is one of Professor Hopkins' recommendations and has been a serious and continuing concern of parents and educators. But we need specifics, not platitudes. Teachers are looking for programmes that will remove children with serious behavioural problems from the classroom, provide them with instruction in alternative settings and then reintegrate them when they have demonstrated improvement. Experience from other school systems suggests that professional development can also strengthen a teacher's ability to deal more effectively with behavioural challenges in the classroom.

Mr. Speaker,

We are encouraged by Government's new-found emphasis on early childhood education. Effective preschool education has been a key part of the United Bermuda Party's vision for public education for many years. We believe that "school readiness" is an important issue and can make the difference between success and failure as a child enters primary school. A strong preschool foundation has been shown to be particularly effective in improving outcomes for children from disadvantaged households.

While we look forward to more details on Government's plans to formally regulate apprenticeship contracts under the 1997 National Training Board Act, we believe that this exercise will be more meaningful if it is combined with our proposal for the implementation of a fully integrated technical education curriculum, which begins in the middle schools. We hope there will be more follow-through than we have seen with the National Occupation Act certification programme, which despite many promises by the PLP Government, has been shamefully neglected.

We also renew our call for an Independent Standards and Assessment Board, a concept that has been well received by parents and the public in other countries with first-class education systems. Given the current lack of trust in the reform process and the ongoing questions about how to measure graduation rates, we believe that an independent board, separate from the Education Ministry, will restore some credibility to the reform process and bring some comfort to parents and the public when results are reported.

Mr. Speaker,

The United Bermuda Party supported the recommendations of the Hopkins Report when it was released. Much of what it contained had been proposed in our election platforms and also by the Association of School Principals and the Bermuda Union of Teachers.

However, we warned that the real challenge for the PLP Government would be to implement solutions, not just identify them. Effective implementation takes teamwork, co-operation, dialogue and trust, all of which we now clearly see are in short supply.

Mr. Speaker,

At this stage, the United Bermuda Party has no choice but to give the PLP Government a failing grade on the implementation of education reform.

Public safety

Mr. Speaker,

The Throne Speech did nothing to assure people that the Government has a plan to make Bermuda safe again. People continue to feel insecure in their homes. Parents worry about their children on the streets and murders remain unsolved.

We were disappointed the Government did not put forward measures to improve the prevention and detection of crime – areas that need strengthening if we are to live up to the Throne Speech statement that our community is "made strong by the rule of law."

As it is, we are an increasingly lawless society. The statistics show it, particularly for burglaries and crimes of physical violence.

The Speech, however, had nothing specific on gangs or youth curfews, CTV monitoring, sentencing practices or modern criminal legislation.

We are aware that long-delayed renovations on the St. George's Police Station are continuing and expect it to finally reopen in the new year, some five years after the promise to do so. It leaves us wondering, Mr. Speaker, where this project would be had we not pushed hard for it. It was always to us a straightforward proposition: The people of St. George wanted a 24/7 Police presence in the face of rising crime. The statistics backed them up. That the Government did not move for years on their concerns is something to be explained.

Just as the St. George's Police Station will go a long way to restoring security in the Old Town, so too will a new Police Station in Warwick. While the Government must be prudent in deciding which capital projects to move on over the next few years and which to defer, we believe a Warwick Police Station should be a priority because of its potential to improve the quality of life in that community.

Mr. Speaker,

Reports of construction challenges and contractor disputes at the new Hamilton Police Station are reminiscent of the problems that beset the new Berkeley school. The Government must maintain a close eye on the project to prevent it spinning out of control. The Police Service is counting on an on-time completion, as are the people of Bermuda.

Mr. Speaker,

The need for a visible Police presence is essential if Bermudians are to have safer homes and streets. For too many years, the Government has simply failed to provide it. With new recruits, there can be no more excuses. We expect to see a commitment to day and night patrols in every parish. We also urge the restoration of a fully manned community beat officer programme, Police consultative community groups and increased support for Crime Stoppers and Neighbourhood Watch programmes.

Mr. Speaker,

We are pleased the Government is proceeding with the establishment of a Law Reform Commission, an idea first proposed by our Deputy Leader Mr. Trevor Moniz.

We also welcome the initiatives to strengthen witness protection. We will do whatever we can to support them going forward while recognising the profound difficulties in making witness protection effective in our small island.

Mr. Speaker,

Thirteen people have died on our roads this year. It is a tragedy and we will join with others this weekend at a remembrance vigil for the victims.

We were disappointed the Government did not announce a completed plan to reduce the problems of speeding, drunk driving and general recklessness on our roads. While we appreciate that a Road Safety Strategy is pending, we would simply say the longer it takes to implement safety measures, the greater the odds the toll on our roads will grow.

We also recommend the introduction of speed cameras on our roads to keep speedsters in check. We support in principle graduated licensing for first-time drivers. It is one of the few ideas in the Throne Speech that was presented with relatively substantial detail and so urge the Government to bring it forward soon.

Mr. Speaker,

Our final point on road safety is that most effective and quickest road safety measure is a strong and sustained Police presence on the roads day in, day out across the island. The Government needs to make this happen. Lives depend on it.

Health

Mr. Speaker,

The Throne Speech commitment to replacing the King Edward VII Memorial Hospital is one we would support given the reported condition of the ageing facility. We are encouraged by the claim it will cost less than the original half-billion dollar plan and that it will not be built in the Botanical Gardens, but the Government's record on this and other capital projects gives us pause. We will keep a close watch on the details and plans as they emerge and do our best to make sure that common sense and management control prevail.

We continue to be concerned that many people are without health insurance and cannot afford the upfront fees demanded by physicians, even those who are insured. In other words, Mr. Speaker, the case still stands for the Medical Clinic. It should be reopened because people need it.

Mr. Speaker,

The Government's plan to hold a summit of stakeholders to determine policy priorities for seniors is indicative of a lack of attention to this important segment of our society. It is disturbing that after ten years in power the Government is trying to figure out what to do for seniors.

We have some ideas:

¦ Rewrite the Elder Abuse Register Act to better protect seniors.

¦ Change the Residential Care and Nursing Home Act to provide higher standards of care and thorough inspection requirements to improve living standards.

¦ Ease cost-of-living pressures on needy seniors by providing them with free eyeglasses, prescription drugs and hearing aids.

¦ Provide basic health care coverage for every senior in need.

¦ Plug gaps in health care coverage for seniors through insurance reform

¦ Implement automatic annual contributory pension increases tied to the cost of living.

¦ Create an office for a Seniors Advocate that can provide them with daily support.

¦ Launch a programme to encourage families to provide housing at home for parents and grandparents.

Mr. Speaker,

More can be done for our seniors but that should be enough to get the Government going.

Tax relief

Mr. Speaker,

The high cost of living is one of Bermuda's most serious challenges. The pressure on lower and middle income families to make ends meet, put food on the table and fuel in the tank is relentless. The news Wednesday that pegged the island's inflation rate at 5.9 percent – the highest since 1992 – illustrates the ongoing challenges facing people, particularly those on fixed incomes.

In the face of recession, the Government should consider direct measures to leave more dollars in people's hands.

Tax relief is an efficient way to put dollars in people's pockets. Our proposal to eliminate the payroll tax for lower income earners can ease pressures on families while also helping to stimulate the economy.

Our hard-pressed taxi owners should receive duty relief on fuel.

Open public tendering for all government projects will help reduce favouritism and spread the wealth.

We are particularly anxious to see independent truck operators not continue losing business to tractor trailer dumpsters connected to government building projects. Be fair to them, and spread the wealth.

Mr. Speaker,

There are many ways a government can help people in tough economic times. This Government needs to bring special focus to the matter.

Obama's influence

Mr. Speaker,

For two years Bermudians and billions of people across the world have been enthralled watching Barack Obama's remarkable campaign to become the 44th President of the United States of America.

It was a history-making march not just for the symbolic power of a black man becoming the American president, but for the manner and style in which he did it.

Anywhere along the campaign trail he could have been brought down by attacks on his colour, his patriotism, his record and his life. But never once did he give in, never once did he deviate from his message of hope that a brighter day will come.

It was, Mr. Speaker, an inspiring display in a political world that believed victory could only be achieved through negative attacks, division and fear.

Mr. Obama's great achievement is that a positive outlook with a message of unity and hope can win the day. He tapped into a deep yearning in all of us and it may change politics as we know it.

Mr. Speaker,

It is impossible not to feel that Mr. Obama's elevation to the leadership of the Free World sends the most profoundly positive message to all humanity: that we can have a new beginning, a new chance to put our best foot forward, to lose the shackles of the past and come together as one people joined by our common humanity.

This is the challenge for Bermuda. This is what Barack Obama can mean to this island. His point is unmistakable, and it is up to all Bermudians and our leaders to rise to the challenge.

It is not good enough for us to say that his victory was the result of divine intervention, though his actions may cause us to think otherwise. That misses the point completely.

Mr. Obama's victory had everything to do with the hard work of unity: talking to people day by day about coming together to build a better world.

President-elect Obama is a leader who is comfortable enough in his own skin and background to embrace and celebrate all humanity. Many Bermudians share his identity, but until we move past the pain we as a people will not truly share the spirit he represents.

Mr. Speaker,

Too many of us are caught up in the colours we have been outwardly painted and lose sight of our similarities. Leaders can help us rise up to see what we share. Unfortunately, the leadership of this country has not encouraged us to embrace one another. Where Mr. Obama challenges people to move beyond the pain of the past to the mountaintop, the leadership of this country wants to keep us in the shadow of the valley. As long as we have leadership keeping us in the past, that is where we will stay.

Mr. Speaker,

We need righteous leadership. We need it to give us the courage to love and embrace one another. Barack Obama has revealed its power. It is the key to a more caring society. It is the key to unity; a unity that enables us to work together for each other in good times and bad and to realise our true potential. It is the key to bringing us together as one country, one Bermuda, a Bermuda for everyone.

Thank you.