FDM sounds warning over debt in Throne Speech assessment
Increasing regulation could hurt investment and economic stability in Bermuda, the leader of the Free Democratic Movement said yesterday.
Marc Bean, who responded to the 2025 Throne Speech, said plans to expand the powers of the Cost of Living Commission and Regulatory Authority “represent an overly restrictive approach and risk exacerbating the very issues they aim to address”.
He added: “[The FDM’s] firm position is that promoting competition, not implementing heavy-handed regulation, is the most effective way to address Bermuda's economic challenges.”
Mr Bean’s comments were echoed by Marico Thomas, the president of the Bermuda Chamber of Commerce, who said: “The broadened Regulatory Authority’s role in overseeing market concentration and pricing in both regulated and unregulated sectors may stifle business flexibility and innovation, particularly for larger firms contributing to Bermuda’s economic stability.”
Mr Bean urged the Government to not overly rely on revenue from the corporate income tax, which the Throne Speech said would be used to “reduce Bermuda’s debt, while also making the required investments to upgrade Bermuda’s infrastructure and improve the delivery of public services”.
Mr Bean explained: “Given the Government’s track record of fiscal mismanagement, prematurely counting on uncertain revenue streams poses significant financial risks.
“The FDM recommends holding 80 per cent of CIT revenues in a dedicated account for five years before exclusively utilising these funds for debt reduction.
“This conservative approach ensures responsible and effective management of public resources.”
The governing Progressive Labour Party said it welcomed the Free Democratic Movement’s assessment of the 2025 Throne Speech, but maintained that the party had proposed policies that would “either maintain the status quo or be ineffective”.
Responding to the FDM statement, the PLP noted it contained no plan to reduce healthcare costs, or any alternative for education reform, which the FDM supported putting on hold.
The governing party also faulted the lack of proposals for training and apprenticeships on workforce development — and said that while the FDM rejected empowering the Cost of Living Commission to investigate the records of importers, it offered “no plan to ensure that businesses do not exploit consumers”.
The proposal to set aside 80 per cent of Corporate Income Tax revenues was said to neglect the island’s “real and immediate needs”, and the PLP disagreed with the FDM’s support for deregulating businesses and said the privatising of the Bermuda Tourism Authority ran the risk of destabilising a key industry.
The PLP said the suggested elimination of dividend taxes would benefit “only the wealthiest, not the average Bermudian”.
The statement added: “The FDM’s response contains areas for collaboration which we welcome wherever possible; we will not, however, support policies that would weaken protections for Bermudians, or entrench economic inequality.”
David Burt, the Premier, said this week that an independently run Sovereign Wealth Fund would manage proceeds from the CIT, which applies a 15 per cent tax on certain multinational businesses in Bermuda that earn more than €750 million (about $820 million) of revenue annually.
Mr Bean said: “Such funds typically benefit nations operating budget surpluses, not those with substantial national debts.”
He said a decline in visitors to the island reflected “broader government shortcomings” and suggested replacing the embattled Bermuda Tourism Authority with a Tourism Stakeholders Council that would “drive innovation and marketing without taxpayer funding”.
The FDM commended policies such as reducing import duties, the rent-to-own housing scheme and amending the Education Act 1996, the Landlord and Tenant Act and Mental Health Act 1968.
Mr Bean explained: “Mental health parity is essential, ensuring conditions like depression and anxiety receive the same level of care and support as physical health issues.”
FDM recommendations for the Government’s first 100 days in office include pausing education reform, reducing payroll taxes for all workers, waiving land taxes for affordable rental units and for Belco to begin the transition from heavy fuel for electricity generation to liquefied natural gas.
Mr Bean concluded: “Our approach embraces open markets and minimal government interference, understanding that true prosperity cannot be legislated through restrictive measures.
“To build a resilient, peaceful and prosperous Bermuda, we must commit to supporting one another, locally, regionally and globally.”
• To read Marc Bean’s statement in full, see Related Media
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