Log In

Reset Password
BERMUDA | RSS PODCAST

Global factors not to blame for all of Island’s economic troubles Richards

Shadow Finance Minister Bob Richards kicks off today’s Budget debate promising to prove Government is wrong to blame its financial woes on the recession.Delivering the official Opposition’s Budget Reply, Mr Richards will also put forward the United Bermuda Party’s ideas to increase Government revenue to ensure a stable future.“We are going to be doing a pretty meaningful analysis of how we got to where we are,” the Shadow Minister told The Royal Gazette yesterday.“The Government is very keen to make everybody believe all our problems are due to the global recession. I believe that is not the case, and we can prove it.“We will look at how we got here and we will be putting forward suggestions on how we can get Bermuda back on track.”Premier and Finance Minister Paula Cox believes she can stimulate the struggling economy by reversing last year’s two percentage point payroll tax rise, putting an estimated $50 million back in the hands of taxpayers.But this will increase Government’s debt, which is already more than $1 billion even without the $200 million Butterfield Bank guarantee.Mr Richards believes the only way to stop the debt spiral is to make Bermuda more competitive in international business by being more welcoming and removing red tape.The Shadow Minister and Bermuda Democratic Alliance MP Shawn Crockwell are both likely to accuse Ms Cox of failing to acknowledge her own role in allowing Bermuda’s debt to soar.Over the past few days Ms Cox has stressed this is her first Budget as Premier, but the Opposition has been keen to point out it’s her eighth as Finance Minister, saying she should have shouldered greater responsibility during that time.They say the Progressive Labour Party should also recognise it’s been in power since 1998, overseeing a huge increase in debt, instead of highlighting how Ms Cox’s Premiership is the start of a new dawn.Throughout the Budget debate, both Opposition parties will say her promised $60 million cuts on capital projects doesn’t represent real savings, and Government Ministers should have led by example by taking pay cuts themselves.BDA finance spokesman Michael Fahy has also questioned Ms Cox’s “contradictory” explanations for last year’s payroll tax rise.Yesterday, Mr Fahy cast doubt on Ms Cox’s projected revenue of $940 million for the next fiscal year, citing Government’s failure to get close to its revenue projection this year.Mr Fahy said the BDA would be pushing for more information on how Government will increase business opportunities for locals, attract foreign investment, increase tourism and reduce debt.Ministers are expected to give rundowns on their ministries today, with Mr Fahy saying: “Given that virtually every Minister that has spoken so far has said the cutbacks won’t adversely affect the services being provided, why was so much money being spent in previous years?”Government’s move to take the Butterfield Bank guarantee off the balance sheet will also come under question, while Mr Fahy hinted at more potential difficulties in the coming months.“Given the Middle East turmoil and rising commodities, is the Government ready for the inflation that will result given the Premier’s very optimistic outlook in the Budget statement about Bermuda’s economic recovery?” he asked.lUseful websites: www.ubp.bm; www.thealliance.bm