Budding entrepreneurs, established business owners and residents of South East Hamilton were given an early Christmas present on Friday after the area was granted Economic Empowerment Zone status.

Under the Economic Development (Designation of Economic Empowerment Zone) (South East Hamilton) Order 2023, area occupants will be able to apply for a host of concessions and tax breaks.

The initiative is part of a drive by the Government to encourage development in the area, and follows on from the creation of an EEZ in the neighbouring northeast quarter of the capital.

The expansion of the programme was one of the more than 30 projects unveiled in the Government’s Economic Recovery Plan in March, 2021 — a drive to kick-start the economy in the wake of the Covid-19 pandemic.

Presenting the order to House, Jason Hayward, the Minister of Economy and Labour, said that the drive to make the area an EEZ had been spearheaded by the Bermuda Economic Development Corporation, a government quango.

Mr Hayward listed benefits that businesses and property owners in EEZs can apply for. They include: payroll tax concessions, customs duty deferment, reduced land tax, reduced application fees on products, preferential interest rates on funding and approved residential schemes.

He said: “The initiative continues to meet the goals of the Government in empowering residents in these areas.

“The Progressive Labour Party’s 2020 election platform had a goal to transform the City of Hamilton into a livable city by fostering the development of residential and mixed-use developments.

“I am pleased to share with the members of this House another milestone in the Government’s remit, as well as bringing the EEZ project to fruition.”

Mr Hayward said that the area was significant in that it provided “a gateway” to Hamilton for commuters travelling from the west of the island.

He added: “In addition, it plays a key role in the economy of Bermuda as it hosts the container docks.”

Mr Hayward claimed that economic possibilities in the eastern half of the city had “not been fully realised” compared to the city centre, and that the designation of EEZ status will provide “access to economic development tools to reach this potential”.

The minister said that research had shown that there was a need for more economic development in the area.

He said that capital investment would not only increase employment opportunities but also boost residential development.

The area is approximately six city blocks in size and also includes docks bordered by Court Street and Victoria Street.

Mr Hayward said that the Government is committed to facilitating sustainable business development and economic regeneration.

“To this end, the ministry will continue to make EEZs an imperative which support investment in line with our economic development strategy.”

The order received unanimous support from both parties.

Jarion Richardson, the Leader of the Opposition, said that the island’s success depended on a vibrant capital.

He said: ”It’s our key commercial area and the area where most of our businesses exist.

“One of the things we have to make sure of is that we’re developing a city that is equipped for the modern age. the City of Hamilton is quite dated and has a small footprint and has typically not seen a high concentration of residential areas.

“Bermuda moving forward has to adapt to new realities, and it’s absolutely crucial that we make use of the city with such a small footprint.

“Expanding the EEZ will go some way to providing more prosperity for businesses. Businesses mean jobs, jobs mean security, security means better families.

“To that end, we’re looking forward to seeing this. It’s a great example of what can be had in a thriving city.”

Jaché Adams, MP for Pembroke West and also chairman of the BEDC, applauded that organisation’s involvement in the project, which demonstrated the Government’s quest for “economic parity” that would make Hamilton “vibrant again”.

A second government backbencher, Jamahl Simmons, supported the order and the “incredible work that the BEDC had done”.

Mr Simmons said that one of the motives behind the EEZ was to provide Blacks with access to capital.

He said: “We often say that in Bermuda it’s easier to get a loan for a boat or a car than to get your business started. The BEDC has created an alternative for that.

“When we look at the EEZs, we have seen it as an incubation stage. As we push the boundaries further in South East Hamilton, we must look at how we can drive this further to better help our people.”