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OBA blames Govt policies for store closure

Computer City is closing, with the loss of nine jobs.

Young Bermudians, whose unemployment rate “is approaching a staggering 40 percent” were explicitly impacted by the Computer City closure on Friday, charged One Bermuda Alliance candidate Sylvan Richards, who is the party’s spokesman for the shadow board on the economy.Mr Richards, who is running in constituency number 7, said: “Saturday’s news that Computer City is closing its doors after 12 years of operation is one more example of bad government policies costing Bermudians jobs.”Computer City had been in business for 12 years before closing its doors last week, and according to company director Craig Clark, it is a casualty of the recession. He blamed the payroll tax hike of 2010, and said it had been a ‘turning point’, with customers downsizing their businesses or leaving Bermuda altogether.Friday’s Computer City press release stated: “The recession has claimed another casualty. We regret to inform our loyal customers, suppliers and partners that due to the unprecedented economic conditions in Bermuda today, we are left with no choice but to close down the business. While the company has been the recipient of 15 awards during the 12 years it has been in business, declining sales have left the shareholders of the company no option but to close the business.”Mr Richards said: “The tax hike shocked the local and international business community, whose leaders described the Government action as a ‘breach of trust’, adding: “Computer City provides a ground-level perspective of the impact of bad government action on a company’s ability to succeed.“The end result is lost jobs for working Bermudians.”Of the nine employees who have lost their jobs as a result of the closure, eight are Bermudian. “These workers will add to Bermuda’s growing unemployment numbers, including unemployed young Bermudians whose unemployment rate is approaching a staggering 40 percent,” he said.“The impact of Computer City's decline in business has been registered in other ways: Computer City had supported 18-month overseas technical training for a couple of young Bermudians who had to be let go because of the fall-off in business.”He concluded: “The One Bermuda Alliance has a plan to grow the economy, with specific measures to support local business owners and entrepreneurs, attract foreign investment and stimulate hiring.“This is the change Bermuda needs, and it’s the change Bermuda’s workers need.“The people of Bermuda can’t afford five more years of rising unemployment and government actions that drive away businesses and jobs.”Last night the PLP responded: “Today, the One Bermuda Alliance put out a statement on the closure of Computer City. The PLP questions why the OBA didn't put out a statement praising the opening of RED Steakhouse & Bar and the Government policies that supported the opening of that business.“Over the last several months, six new businesses opened in St George's. Just last week, RED Steakhouse & Bar opened in Hamilton employing 15 Bermudians. The media didn't lead with stories about this good economic news and the OBA didn't put a statement out about it.”The statement continued: “There are new Bermudian-owned businesses opening every month, but, instead of praising these business owners and promoting these new Bermudian owned businesses, the OBA chooses to harp on the negative. Instead of praising Government policies that offer duty and payroll tax concessions for restaurants the OBA chooses to exploit the loss of a jobs for political purposes.“The OBA is all about talking down Bermuda for their own political gain. It's really sad that a party stoops so low. Instead of harping on the negative, we hope that the OBA will join Bermudians at the next ribbon cutting to encourage Bermudians to patronise some of the new Bermudian-owned businesses that are opening on a regular basis and that are providing jobs for Bermudians.”