PLP outlines its economic plans
Government affairs, equal opportunity for Bermudians, coupled with a focus on training, said the party's Deputy Leader and Shadow Finance Minister Eugene Cox.
In an interview, Mr. Cox -- who refused to be interviewed prior to the release of the PLP's platform last Saturday -- said he will ensure those tasks get the attention needed from the Finance Ministry if the PLP gains power in the election.
"Our immediate task is to make sure we have sound fiscal management,'' he said. "Our whole platform and thrust is to create equal opportunity for Bermudians, for all persons who reside and live in Bermuda and work here. We want equal opportunity, especially for Bermudians, because they haven't had it. We have to prepare all people through education and training so that they are prepared for jobs in the next millennium.'' Mr. Cox said the May 1998 Government Auditor's report showed the UBP had mismanaged Government finances.
"We haven't had good fiscal management,'' he said. "The report found deficiencies in the way the Government has managed the economy in terms of projects.'' He said a PLP government will not have to levy new taxes for any of its programmes because as Minister of Finance he will cut out waste and collect the money owed to Government. Proper collection of the $57 million accounts receivable outstanding by March, 1997 will fund the programmes.
The United Bermuda Party says most of the shortfall has been collected already. Finance Minister Grant Gibbons said most of the taxes are collected on a quarterly basis, the outstanding cash was defined as accounts receivable in the Auditor's report.
"The Government has failed to perform to the level that they are saying the Opposition cannot perform to,'' he said. "...We don't have to increase taxes to get that money. What we will do in order to get that money is eliminate the wastage that we presently see as stated by the Auditor. If we properly manage the revenue that should be coming in and we get it all or most of it I think we should get sufficient funds. Government has been wasting money. We are not getting a good deal for our money.'' Mr. Cox said he will also make Government more accountable by strengthening the office of the Auditor. He said a sound economy would have a healthy tourism industry as a base and the PLP would foster the growth of international business. The PLP Government will make the revitalisation of tourism a priority. The plan includes the creation of an advisory body made up of representatives of the private sector involved in the industry.
"We need a rescue mission for tourism,'' he said. "It needs to be rescued because Government has not done as much as it should have done. We are determined to put tourism back on the front burner. We need to allocate the resources as required.'' The PLP Government will also emphasise training to ensure Bermudians fully participated in the economy.
"What we are missing in tourism is the Bermudian factor,'' he said. "We want to put Bermuda back in tourism. Why is it when tourists go to a restaurant or to a hotel, why is it they're finding Italians, or foreign people here and not Bermudians?'' Training will be the focus, although he does not rule out consideration of new policies on immigration to ensure Bermudians were not shut out from getting jobs.
"What ever is necessary to bring this about would have to be considered,'' he said. "...We will train and retrain our people so they can bring back the kind of quality and concern that is necessary to make a profitable tourism industry. My job as Finance Minister will be to allocate funds or look at that after we have the proper cost to benefit analysis on the different number of schemes.'' He criticised the Government's creation of a National Training Board, claiming it has just been set up as an election ploy and a copy of PLP ideas. The PLP will instead set up a new agency to coordinate education and training.
"The UBP is not doing that (training),'' he said. "They are giving lip service to that idea. Because the UBP is primarily in the House to protect their business interests. So don't say we're doing what they're doing. We are going to do what we intend to do if we are successful and we will do it the way it should be done. .. There would be less conflict of interest.'' A PLP Government will also meet with businesses to gain cooperation and ensure qualified Bermudians were not denied opportunities for jobs and advancement.
The party will establish a body, called the National Tripartite Commission, made up of business and labour representatives. The body will have oversight of the new training agency.
The body will consult with Government on economic and social policy. He emphasised that he does not advocate a quota system for ensuring qualified blacks are giving the opportunity for jobs. Such a proactive system is not necessary.
"We do have a racial problem, but that's not the thrust of my argument,'' he said. "My argument is that we should sit down as a labour oriented party. We are in a better position to sit down with labour and management and through our tripartite association look at the problems. If there are racial problems -- and we know there are some -- then they will be discussed at that level. It means that we will be working together to eliminate these defects in our society and making jobs available to those who are properly trained and qualified. We have got to be defending and looking out for our people whether they are black, white, blue or green.'' He said the thrust is not against foreign labour. Bermuda needs foreign labour. However the PLP will implement legislation if necessary to help encourage hiring of Bermudians. For example, he said many businesses did not give Government information in previous employment surveys. Legislation could be implemented to force owners to comply in providing the statistical data needed to determine employment policies.
Another area Mr. Cox will be looking at is helping small businesses by relaxing some of the payments on Customs duty. He proposes possibly deferring some of the payments until goods are sold.
He said the PLP will review the tax system and look at giving small businesses a break. Both the UBP and the PLP have said they will not be implementing any new income tax. The PLP has also dropped a previous proposal to widen the tax base to include a tax on investment income.
In an interview a year ago Mr. Cox indicated he believed labour had an unfair share of the tax burden. Workers paid a five percent employment tax, which is an income tax, while individuals who made their money through investment income didn't pay any.
"We have wanted to tax these areas,'' he said. "It's a valid argument, but we don't have that in our platform. We are not going to tax dividends. In the past we have said that. This is not the time to be concerned about that.'' He suggested that workers and businesses could be given a break by bringing the payroll tax down. A PLP government will also put in place an unemployment insurance programme funded by contributions from employer and employee.
"It's the socially responsible thing to do,'' he said. "We have to put some money aside for a rainy day. I don't see why people should be opposed to it. I would see it as a necessary burden for business. It's like pensions. All of us are going to have to work together. If we want a sound economy we have to have sound principles in place.'' For the record, Mr. Cox said he supports the promotion of electronic commerce business in Bermuda. He just doesn't want Government "flaunting anything that might be construed as harmful tax practices'' now that the OECD and other international bodies are looking to crack down on tax havens.
POHITO Eugene Cox BUSINESS BUC