Live Blogging: Terry Lister’s Town Hall

Update 7:10pm: Mr Lister is talking about a number of various general issues. Discounting media persons, there are about 40 people present. He is addressing Bermuda’s history and how the main thrusts of our economy, tourism and international business, came about.

Update 7:15pm: Is addressing our declining tourism numbers, says there is an “ongoing cry there is nothing to do”, says international business growth started to slow down in the 2000s, says the “growth of quality competitors has eroded our standing”, says 20 jurisdictions around the world have positioned themselves as financial centers.

Update 7:20pm: Starts addressing debt, says if elected he will work closely with his Finance Minister, says tax structure must be looked at, and he will devise a system that works better. Says online payments for all Government fees that are payable is a goal, although many will prefer to pay cash.

Update 7:22pm: Says “Government borrowing is not sustainable”, says we will burden our children and grandchildren with the debt. Says the budget he would institute would address it. Points out in 1985 Bermuda had no debt. Speaks to importance of international business, says we must “educate our children to provide a ready talent pool”. Says to rebuild tourism, says he “thinks its great to travel the world looking for tourists”, and jokingly says “give me a ticket and let me go”, and continues to explain we should focus on the Eastern USA tourism base, as they have always constituted the majority of our visitors. Also says we should look at higher priced cruise ships, as the passengers may provide more on-island spending.

Update 7:30pm: Mr Lister’s speech has finished, question time has started. The first question was about guns, and how they are coming in. Mr Lister said he believes many are coming in on the docks, and says how serious the matter is. Is asked whether he is in favour of gambling, he said that was “easy, no, no, no”. Says a study showed it may not bring more tourists, and said the downside seems too great.

7:25pm: The lady who asked the gaming question is now speaking, she says she previously ran a gaming establishment and is pro gaming. More people are filtering in here and there, is now more than 40 in attendance.

Update 7:35pm: Another lady asks about growing Government costs, excessive and high cost travel by politicans and whether Mr Lister will use security guards [which got muffled laughter from the audience] and jury system. Mr Lister says travel as a percentage of the government budget is not high, but its a “symbol”, says his statement will be “value for money.” Says he will look at reducing Government spending, says using consultants is not inherently bad, but it must offer a good value for money and consultants should not be hired unless it is useful on all levels. Addressing the jury issue, says he thinks in very serious crimes, the option of judge-only trials should be an option. Says “lets be real” some people are nervous to serve and make judgement in certain cases due to Bermuda’s small size.

Update 7:45pm: A well known talk show caller is speaking in a raised voice with her daughter by her side, says she was not impressed by Mr Lister’s statements on the Everest Dacosta show today. The lady says “she wouldn’t vote for him if she was paid” and he is an “embarrassment”. She makes it very, very clear she is not pleased. She is the mother of a disabled daughter, says Mr Lister is not interested enough in the disabled, she said she came to say that “we don’t want you” and she “is out of here”. She leaves…Mr Lister doesn’t respond, he was not particularly given a chance. [The lady appears back in the hall, at least to our view, at about 8:05pm]

Update 7:55pm: Mr Lister addresses incident in which the lady told him off. Says we must direct anger at the place it should go. He calls it an “unwarranted attack”, which receives applause from the audience.

Update 7:58pm: Asked a question about young black males, and is somewhat accused of shutting them out and other matters. Mr Lister stresses he wishes nothing but success for young black males and explains steps he has, and will take.

Update 8:05pm: Speaking to economic divisions and other matters, says he would make sure Government contracts are “spread around”, says assisting small businesses will help, says we need to “diversify the economy”, says renewable energy sources are ideal and can “spread jobs around”. Says “spreading the economic pie” is easier when adding then subtracting.

Update 8:15pm Various matters being addressed…tourism, baselands, job opportunities for locals etc. Someone is asking a question now about tourism as percentage of GDP, Mr Lister says he recognizes that tourism is “in a bad way as a foreign exchange earner for Bermuda”, and we must work on tourism as “we don’t want to be a one-crop economy.”

Update 8:30pm: A man asked about independence and economic impact, Mr Lister says independence has a cost associated with it, as we need to set up embassies etc, but we then get to control all aspects. He says he is pro-independence, but as the polls show it is not popular amongst locals “its a non-starter”, so he will not be “burning time” and “won’t be taking us down that path” until the country moves in that direction.

Update 8:40pm: Says we need more local history taught in schools, references Dr Roosevelt Brown and how many didn’t realize what he accomplished on a world level, and just thought he was “some old guy.” Asked about income tax, says he “will not put it on the table”. Asked about the Regiment, says he is a supporter, says they do a great job after hurricanes, receives applause.

Update 8:45pm: Mr Lister is finished, moderator is saying the next Town Hall will be on environment and energy. People are now starting to get up and leave…

Update 10:48pm: Full text of Mr Lister’s speech added below:

Good evening Ladies and Gentlemen:

Thank you for joining me this evening in my first of many Town Hall meetings to be held over the next few weeks. I like the idea of Town Halls as this format lends itself to the sharing of ideas allowing all parties not only to be heard but to contribute to the discourse. It is so very easy for politicians to talk to audiences but actually listening and learning is an altogether different exercise! Tonight you will learn about my thought process and how I see Bermuda and I will learn how you see Bermuda and what you want from and for your Bermuda.

The timing of my campaign launch has been questioned. Therefore, I should explain what has been planned and why. For six months the media has been speculating as to who would seek to replace Premier Dr Brown. Entering the race, so to speak, starts a contest of ideas, personalities and so on. The focus of the Government can be shifted from the task of addressing the needs of the nation to watching what each candidate said or did today. This process could lead to divisions during the Parliamentary year when all members of each Party should be totally focused on the business of the Government- YOUR BUSINESS. So to avoid that big negative I did not answer in the affirmative at any point when asked by the media over the past six months. Of course, as a result my poll numbers are pretty abysmal but this does not bother me at all. As you know, the Bermuda Progressive Labour Party will hold its Annual Conference at the end of October. At that point delegates representing the 36 electoral constituencies will, along with MPs, vote for the leader and deputy leader of the PLP and , in turn, the Premier and Deputy Premier. You may ask why start now? Why not wait until the delegates are selected in September and then talk to them? The reason is quite simple. Look at my campaign theme and its tag line – ITS BERMUDA’S TURN and ART (Accountability, Responsibility and Togetherness). These factors are badly needed at this time and if I am to live up to these then I must speak to all of Bermuda. I believe in inclusiveness, I respect diversity and I applaud those who seek to find ways to bring people together rather than pull them apart. This message must be heard by all of Bermuda. Thus, the Town Halls. Over the next eight weeks we will travel the length of the Island and address topics that cover the full spectrum of Bermuda and the Bermuda Government. I will share my ideas and listen to yours and, as a result, I will secure a mandate to govern upon success at the Party Conference.

Tonight we are here to discuss the future of Bermuda’s economy. It’s no secret that many residents are barely keeping their heads above water in these difficult financial times. Gone are the days when you looked forward to relaxing on the weekends. Nowadays many are working at least two jobs just to keep a roof over their heads and food on the table – and still do not possess substantial savings. Families are suffering because mom and dad have to spend an extra 20 hours weekly to hold things together – resultantly children are being left to raise themselves. While some of you may shake your head with compassion of this increasingly familiar scenario, in fact I may have just described some of your families. Believe me when I say I understand that it is not easy right now.

The difficulties we find ourselves in give us reason to reflect and to gauge how we can go forward and what we must do differently. In order to appreciate where we stand we must reflect on how we got here. I have always felt our country motto, “Quo Fata Ferunt” whither the fates shall lead us – not truly a positive stance – did us a grave disservice. However, this stance may well have been accurate for the first 300 plus years of Bermuda’s history. As we know, we were first an agricultural society, growing tobacco until the South Carolina crop was found to be superior to ours. So we left that business and restricted our farming to subsistence farming along with the exporting of the Bermuda Potato and the Bermuda Onion and, of course, the Bermuda Easter Lily.

Once the agricultural sector failed, we took to the seas in many different ways. We ran the salt trade between Halifax and Turks and Caicos islands. We built the Bermuda Sloop that was the best ship of its kind and it was sought by sea captains from around the world. And we did a little pirating on the side. So the sea provided for us for many years. Then the 1880′s saw Princess Louise vacation here followed later by Samuel Clemens, better known as Mark Twain, and Bermuda was on the tourist map. Suddenly, a small very isolated island with very little foreign exchange earnings to talk about was a highly desired tourist destination. And we started out with the very wealthy as our clients. Tourism provided a very good living for Bermudians for many years. Many a home was built from the tips and grats earned from a second job hustle in the tourism industry. Tourism enabled us to quickly become a nation of mainly middle class people. The industry was very good to many here tonight I’m sure.

Starting slowly in the 1940′s and moving at a brisk pace into the 1980′s the International Business (IB) sector came into play. By the turn of the 21st century IB had surpassed Tourism as our major foreign exchange earner and had created many varied and interesting career opportunities for our people. Bermuda rose to the point where our per capita income exceeded $86,000 and we ranked 4th in the world in this category. Imagine! Little Bermuda! We have accomplished much during the last 50 years. Our standard of living has grown tremendously. Most of our people have become the best travelled in the world. For years and years it was onward and upward with only momentary setbacks along the way. Wasn’t it grand?

But where are we today? Our tourism numbers have shrunk. Yes, total arrivals have been restored to some degree but this has come via the cruise ship bringing passengers who have at times paid as little as $600 for a seven day cruise. What does this say? The statistics show that these tourists simply do not spend enough money while here. Soon after the Progressive Labour Party became Government I worked closely with the late Minister David Allen as the Government’s Hotel committee presented to Parliament the Hotel Concessions Act. This Act, still in place today, has made it possible for just about every hotel property in the country to be renovated and, in some cases, rebuilt. So the physical plant is far superior to that of the early 1990′s. Yet the air arrivals continue to lag far behind past years’. It is thought the continued shortening of the tourism season has led to many properties simply not being profitable. Along the way Bermudians have left the industry choosing to work elsewhere and the Bermudian flavour has been withdrawn with their departure. The entertainment in our hotels has fallen away and there is an ongoing cry – that there is nothing for our tourists to do. So the average age of the tourist grows each year as fewer young people holiday in Bermuda seeking instead livelier destinations which came be found elsewhere.

Meanwhile International Business growth started to slow down in the late 2000′s as the financial crisis overseas was felt here. For perhaps too long we were content to believe the slowdown was only due to the overseas financial situation but that is no longer a view fully subscribed to. Instead the growth of quality competitors has eroded our standing. Over the past 15 years at least 20 financial centres around the world have become prominent in IB. In addition there is the continued threat from overseas taxing authorities that appear to have Bermuda in their sights. All of this puts our prosperity at risk. The result, as we know, is negative knock on effects for all of our other industries. When IB was booming, construction was booming – both commercial and residential. The local population could not (and cannot) fill all the jobs so more and more workers had to be brought in further heating up the housing market. When the hoteliers responded to the benefits offered by the Hotel Concessions Act, construction got a second boost. Now with the slowdown in IB and the downturn in on island tourists, construction is down. It is my understanding that the projects waiting to start are few and far between. This situation has made the retail sector a shadow of its former self. Employment in this sector like the construction sector is down and there is little to indicate that it will turn around. It is an open secret that for many years Bermudian homeowners kept pace with the rising cost of home purchasing by having their tenants contribute greatly to meeting their monthly mortgage payment. However, the downturn in jobs (it is thought that over 1,400 jobs have been lost over the past 12 months) has created a scramble to maintain rental levels in the middle market while a significant drop has occurred at the higher end. Bermuda Business (formerly known as BIBA) had a slogan –“International Business affects all of us”! Those that previously doubted that slogan no longer do!

Having said all this, what lies ahead? Is it all doom and gloom? Has time killed the goose that laid the golden egg? Are we too slow, too laid back, too complacent to do anything to arrest the situation? I believe that first we must shake off the old motto and take charge of our future. I see Bermuda returning to its past glories – BUT it will take commitment and old fashioned hard work. AND, we may have to change. YES – we may have to do some things differently.

Upon becoming the leader of the Progressive Labour Party I plan to work closely with my Finance Minister to reduce the Island’s debt and increase economic opportunities for all. I shall order a review of our tax structure, as one has not been undertaken in a decade. Any structured tax regime must have five key criteria, regardless if it applies to Joe Public or a large international company. A tax regime must be competitive, internationally acceptable, be based on a simple solid rationale, be able to sustain Bermuda’s economy and give rise to reciprocal benefits.

All revenue and expenditure must be examined to ensure a surplus on the current account. In order to improve our financial position, Government’s accounts receivables MUST to be collected faster and more efficiently. Current practices will be evaluated and enhanced to achieve this end. As your leader, I will work with my Cabinet to ensure that every civil servant is accountable for his or her performance. If it is to be Bermuda’s turn the civil service will have to be the deliverer of YOUR TURN!

Online payments for all Government receipts must be the goal but in the immediate term all payments of payroll tax, land tax, and social insurance should be possible. While some may try to avoid it, it is almost impossible to survive without using some form of technology in our day-to-day life. Nowadays, virtually everything is just the click of a mouse away.

In my opinion, Government’s borrowing is not sustainable. Future budgets will be designed with debt reduction as a key goal otherwise we will burden our children and grandchildren with this debt…and this is nothing for a young person to look forward to. We must ensure that young people in Bermuda have the opportunity to empower themselves in every facet of their lives instead of having a dismal future glaring back at them.

As we look to the future we must continue to be a top IB centre, we must rebuild tourism but we must also look at new opportunities. Throughout all of this we must create job, career and ownership opportunities for Bermudians. THIS IS KEY. There is no question that many Bermudians’ job performance was not as high as it could be during the 1990 – 2010 period, often this could be traced back to a feeling of disenfranchisement among Bermudian workers. As we move successfully into our future this feeling has to be replaced with one of hope and belief in one’s own opportunity. We must ensure that as prosperity returns it carries the Bermudian with it as a full participant and not as a mere passenger. To achieve this, education and technical training MUST be embraced by all parties.

To protect our IB we must have strong relationships with U.S. Regulators in particular. There must be mutual respect and understanding to ensure that our business is not forced out by tax measures taken by foreign powers. To reduce concerns among IBs about their tax future in Bermuda the Corporate Tax Exemption must be extended well beyond 2016. We must continue to educate our young people at quality institutions abroad so as to provide a ready talent pool.

To rebuild tourism we must redouble our efforts to increase tourists from the north east corridor. While we should use all the modern communication methods such as internet promotion of our product, we MUST also go back to the old fashion road shows and face to face work with our key travel agencies. Consideration MUST be given to contracting higher priced cruise lines to get access to their client base which will provide much on island spending.

The greening of Bermuda led by renewable energy conversions can produce many new jobs and many new business opportunities. Government has created a duty free scenario for many renewable products. Bermudians moving in this direction could bring about the creation of approximately 300-500 jobs over the next two years.

By defending our IB sector, rebuilding tourism and greening the island, construction demand will return in both the commercial and residential markets and this in turn will lead to more construction jobs.

Ladies and gentlemen, we do not have to be completely radical to turn our economy around but we do have to change our approach in some ways as has been discussed tonight. I am very optimistic about our future and I believe that we will all benefit as…. IT’S BERMUDA’S TURN.

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