OBA: ‘national emergency’ looms on cost of living
Two opposition MPs have proposed a lifeline to cut prices while the island’s supply chain adapts to the potential shock of fees and tariffs rolled out by the Trump Administration.
Michael Fahy, the Shadow Minister of Home Affairs, and Douglas De Couto, the Shadow Minister of Finance, called for “immediate co-ordinated action” against what the One Bermuda Alliance described as “an impending national emergency caused by recent US policy changes that threaten to dramatically increase the cost of living for all Bermudians”.
It came as US president Donald Trump announced a 90-day pause on higher tariffs for most countries, even as China’s tariff rose to 125 per cent — although a 10 per cent baseline tariff remains in place, including on Bermuda.
While the OBA has previously criticised the Government’s plans to make use of corporate income tax revenues, Dr De Couto said the “crisis” presented a case of sufficient urgency to justify tapping into yields from the CIT.
It follows meetings by David Burt, the Premier, with US officials in Washington, the US Consul-General and more recently with local shipping executives on the potential threat posed by the US Ships Act, which would increase port fees for vessels built in China.
Port fees would affect imports to Bermuda, especially from the MV Oleandercontainer vessel, to a level described by the industry as unsustainable.
The moves by the island’s closest neighbour also come as both parties highlight the rising cost of living, with Alexa Lightbourne, the Minister of Home Affairs, announcing this week that a government website on the issue had been launched — with residents to be surveyed on their experiences.
Today, Dr De Couto said the possibility of a docking fee of as much as $1.5 million on a Chinese-built or Chinese-flagged vessel posed “a serious threat to Bermuda's economic security”.
He added: “Since almost all of our food and consumer goods arrive by sea from the United States, these changes will significantly impact every household in Bermuda, with the most vulnerable families bearing the heaviest burden.”
The Opposition said it had “particular concern” for Bermudian families already confronting tight household budgets and difficult choices.
Dr De Couto said: “These impending increases will force even more painful decisions for those who can least afford them.”
The Opposition proposed establishing a “supply chain contingency fund that would help offset temporary increases in shipping and import costs, while Bermuda’s supply chains adapt to the new international trade environment”.
Mr Fahy highlighted efforts by the island’s importers and shipping companies to find “alternative vessels, explore new trade routes and identify different sources for Bermuda's essential goods”.
He added: “However, these solutions will take time to implement and will inevitably increase costs in the short term.”
The ruling party told Bermudians they could “rest assured that we remain engaged in a proactive manner to protect the wellbeing of every person and business in our island community” in the face of US tariffs that have upset global trade.
A statement said the Government continued dialogue with the US Government “to ensure Bermuda’s position is understood and reflected in any decisions that may increase the cost of essential goods for Bermudians”.
The Government was also said to be co-ordinating with Caricom to strengthen regional food production, and pursuing talks with Canadian officials to explore “contingencies that will ensure consistent and affordable access to essential goods in case the US decides to impose significant fees on supply ships that transport essential goods to Bermuda”.
The Progressive Labour Party called it “remarkable” that the One Bermuda Alliance, which criticised its plans to use corporate income tax revenues to offset healthcare costs, now proposed applying them to subsidise shipping and import companies.
“It shows that the OBA’s earlier objections were purely political and, true to form, that they seemingly only care about costs that affect the businesses that have always supported their party.”
The PLP said the Opposition knew the “appropriate and established channels to share genuine ideas or proposals” and dismissed the OBA’s statement as “political theatrics”.
The Opposition proposed financing the fund through “a combination of the projected budget surplus and revenue from the new corporate income tax”.
The party said the fund could give “targeted relief” by subsidising increased shipping costs, supporting the development of alternative supply routes and offsetting higher prices on essential goods.
The Opposition also recommended quick moves to expand import duty cuts on essential items.
Mr Fahy said the matter was “not a partisan issue”, but one requiring collaboration.
He said: “We were disappointed to learn that the Government recently held a stakeholder meeting at Cabinet Office without extending an invitation to the official Opposition, despite the Premier's stated desire for collaboration rather than criticism.”
Dr De Couto said the proposed contingency fund aligned with the Opposition’s commitment to “fiscal responsibility for social fairness”.
He added: “While we continue to advocate for responsible allocation of corporate income tax revenue towards national priorities like debt reduction and infrastructure, this emerging crisis certainly qualifies as an urgent national priority.”
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