Log In

Reset Password
BERMUDA | RSS PODCAST

?Govt. is overspending?

Shadow Minister for Finance Patricia Gordon-Pamplin last night claimed the Government was overspending and was still failing to deal with the biggest crisis on the Island ? housing.

Mrs. Gordon-Pamplin was responding to the Budget set out by Finance Minister Paula Cox, who outlined her vision for the year yesterday.

Mrs. Gordon-Pamplin said: "It is clear that Government has no intention of tightening its belt, and it has little appreciation for the man in the street.

"The ever-widening gap between the haves and have-nots is exacerbated by the Government's failure to provide for our most serious issue ? that of housing.

"Instead, they have preferred to leave this critical area to the private sector."

Earlier in the day Minister for Housing David Burch had spoken glowingly of the private sector's participation.

He also revealed there was a plan B in place if the new partnership doesn't work.

He said: "We have been successful in being able to negotiate with the private sector in terms of being able to deliver on housing and therefore there is not a need to require a commitment of the $65 million allocated to housing last year.

"I am comforted by the fact that should we not have the success we anticipate at this stage in terms of our relationship with the private sector, the Minister (of Finance) has indicated to me that the entire $65 million of which we've only spent ten, (those) funds can be tapped into this year so that the forward thrust we have for providing housing to the people of this Country will not be impeded."

The Opposition spokesperson on finance expressed serious doubts about the private sector's willingness to come through.

She said: "They (Government leaders) have failed to understand that the private sector has profit as its aim, and therefore the low-cost housing for purchase and rent are made more remote by this approach."

In an e-mailed statement Mrs. Gordon-Pamplin also hit hard on what she called the Government's lack of focus on drug prevention and education.

She said: "Education programmes are relegated to the position of more reports, commissions and investigations, and only lip service is paid to substantive initiatives to permit excellence in achievement.

"Further, foreign exchange costs will increase, and therefore our students studying abroad will have to pay more for their fees."

Twice in the statement Mrs. Gordon-Pamplin referred to the new budget as the country's first to reach $1 billion. That sum is reached by adding the Government's current account spending of $884 million to capital spending estimates of $141 million.

That point, however, may be contested because some of the new projects are being paid off over time and not exclusively in the next fiscal year.

Mrs. Gordon-Pamplin will deliver her full reply to the Budget next Friday in the House of Assembly.