Chamber on Debt, Economy & Solutions

December 19, 2010

In a recently released report, the Chamber of Commerce says “A third wave of reinsurance money to rescue the
economy is not forthcoming,” and the “$1 billion dollar debt problem” leads to an enormous burden on the domestic economy and future generations.

Untitled dec 19 2010

The report says that more than 3,500 work permits have been lost since 2007, and that each permit holder accounts for an estimated $100,000 direct spending in the Bermuda economy, which equals a $350 million loss over three years.

With no recovery likely until at least 2013, Bermuda is becoming increasingly uncompetitive says the Chamber and the old laissez-faire approach to the economy — sitting back and seeing where the fates carry us — has to be replaced by forward planning and a solutions-oriented approach to growing the island’s stagnant finances.

Government must examine all aspects of Bermuda’s economic infrastructure as a matter of urgency — from its own debts and operating expenses to “the island’s diminishing status as a top destination for tourism and international business” — and identify ways of encouraging more overseas investment in the island.

Among the solutions proposed by the Chamber for stimulating the economy are the privatisation of some Government services, a review of existing restrictions including those involving to work permit term limits which may be counter-productive to economic growth in today’s circumstances and an effort to broaden the economy, including positioning Bermuda as both an international arbitration centre and a global centre for intellectual property.

The full 51-page report courtesy of the Chamber of Commerce is below:



Read More About

Category: All, Business, News

Comments (17)

Trackback URL | Comments RSS Feed

Articles that link to this one:

  1. $6 Billion of Trouble | December 20, 2010
  1. Samuel says:

    What was that bull and who is in the chamber of commerce

    • Ouch says:

      This country is in a financial tailspin. The fact that the govt is borrowing to pay for its day-to-day bills is Confirmation. Buy your US currency before Paula puts up the FCPT again. It’s getting more and more uncomfortable on the plantation.

  2. College Graduate says:

    Legalize & Regulate Marijuana

    Great For Tourism, Money In Government’s Pocket & Reduction In Money Going Into The Underground Market

  3. True Bermudian says:

    This must be a plantation document.

  4. US Observer says:

    College Graduate: Let me help you out a little more with some facts.

    Here is one example: The Netherlands does not impose a sales tax on marijuana however the shop owner pays “income tax” on the profits, just as they would for any other product. Contrary to popular belief, possession and trafficking of cannabis is illegal in the Netherlands. The country simply chooses not to prosecute if less than 5 grams are involved. On the books the punishment for simple possession is a month in jail and/or a 2250 Euro fine.

    They also turn a blind eye on coffee shops that do not sell more than 5 grams per person per day, and do not have more than 500 grams in their inventory.

    Why?

    Marijuana is big business in the Netherlands. According to a news program, the Dutch government is raking in 400 million euros (a little more than $600 million US) a year in taxes from the country’s 730 marijuana-selling coffee shops.
    The reporter estimated total sales at the coffee shops at 265,000 kilos of hashish and marijuana annually, with an annual gross revenue of about $3.2 billion.
    In response, the Dutch Finance Ministry said it did not know how much tax revenue it collected from the coffee shops. According to department employees who asked for anonymity, “they do not want to know about it in The Hague, as it is all much too politically sensitive.”

    But the coffee shops account for at most 40% of the marijuana grown in Holland, with the rest being exported untaxed via the black market. Although Dutch police bust 15 marijuana grows a day, they have not been able to make a significant dent in domestic production. That means Dutch marijuana exports are also a significant economy activity.

    “As export product, Dutch cannabis comes second or third after cucumbers and tomatoes. Germany and the United Kingdom are big customers,” said police commissioner Max Daniel, head of the police unit responsible for tackling marijuana grows.

    Posted in: Budgets/Taxes/Economics, Marijuana — Personal Use, News Brief, Politics Outside US

    • College Graduate says:

      Soooooo….what was your point in saying all that?

      What about the Million (Possibly Billion) Dollar industry in the United states from Medical Marijuana, with strict rules and thousands of dollars in fees just to get in the business.

      Any way you look at it:

      Legalize & Regulate Marijuana

      Great For Tourism, Money In Government’s Pocket & Reduction In Money Going Into The Underground Market

  5. Triangle Drifter says:

    The Chamber might as well go out to the end of Albouys Point today & spit into the wind. Don’t they know that the PLP knows EVERYTHING & does not want any advice from ANYONE, especially people like those in the Chamber who have experience & a history of operating successful businesses. Look around the ranks of the PLP. Fresh minds. Hardly a one of them with any experience at running a business never mind being accountable to themselves, staff or shareholders to provide an income.

    • rob says:

      Well put TD. “Its who you are” NOT “what you can do”

  6. Samuel says:

    “especially people like those in the Chamber who have experience & a history of operating successful businesses.”

    you mean like like triminghams?

    • Triangle Drifter says:

      You are obviously too young to know much about the legacy of stores such as Triminghams. They operated very succesfully during Bermudas tourism boom years. The cream of the tourism crop actually came to Bermuda to shop for the fine clothing etc that shops like Triminghams had to offer. The demise of these stores is complicated, suffice to say that the current Government has done nothing but destroy what little tourism there was & has no clue as to how to revive it & has no interest in listening to anyone on the front lines of the industry.

      PS Samuel, on your keyboard you will see two ‘shift’ keys. Learn how to use them. You will appear to be much more learned.

  7. Terry says:

    Absolutely Samuel. Along with many other families they established trade, commerce, jobs et al.

    Not knowing all the events that led to their demise or closure It’s safe to say that they still make lots of money off of sale, rent, lease.

    How many other busineses can say they contributed for 200 years and are still operative.

    I know exactly what your comments are meant to portray. Hope others do also.

    Bank of Butterfield/Bermuda/ stable business ring a bell?

    Merry Christmas and a happy deficite new year.

    • rob says:

      Lets hope that the way they run their business they will be here for another 200 years. Unfortunately i don’t think Bermuda will, maybe the Trimminghams could run this country. we would have to ask them nicely though.

  8. Samuel says:

    “How many other busineses can say they contributed for 200 years and are still operative.”

    this was only possible due to the upper hand that white families/business’ had due racism ie during those 200 years banks were probably not rushing to make loans to black business people etc. etc etc.

  9. Hmmmmm says:

    This report is a true mixed bag. At least it mentions diversifying the economy which is the most critical aspect of the argument. It is unduly harsh on the Government and the civil service particularly when discussing tourism. Our tourism is down because we have nothing to sell. The product is dated, flat and overpriced. Many of the solutions recommended are good ones. As for those of you attempting to have a referendum on the true nature of Bermudian businesses, tread lightly. Since 1998 the Government has not been an adjunct to business and has not existed (like it or not) to make the country safe for the traditional business sectors to do well. The dilemma for the PLP is to muster the courage to demonstrate that they have a core ideology that is not guided by the need for only Bermuda Inc to do well. I recall vividly “better” economic times when there was no Government debt; but yet no investment in people socially or from an infrastructure perspective had been made nor was planned. As a result many folk were struggling. What we need in Bermuda is an honest political divide. We need, just as an example, one Party to say “free child care is bad and we’ll cut it or reduce it” and another Party to say “free child care is needed for our people and we must provide it”. Our economy is failing and the discussion is not helping because it is shallow and led by people who want to be all things to all people. Republicans make no bones about who they are and what they stand for and likewise so do Democrats. In Bermuda the battle for the centre has the Premier making ridiculous statements about saving $150m BUT saying there will not be job cuts. It simply isn’t possible unless of course to achieve the 1991 debt-free position you’re going to govern like the 1991 Government. It will take beating the UBP at its own game to a new dimension.

  10. Not Surprised says:

    Why does everything now have to be about race and bickering?! Read the report, Take it for what it is! Bermuda is going to hell in a hand basket and we are all in it! Black, white, brown, Green. These stupid petty race arguments do nothing to solve any problem! In fact it’s like the “Bermuda cancer” that’s spreading and spreading. That is the one disease that doesn’t discriminate, Just multiplies until it kills you. That’s is exactly what is happening here. Like other countries this cancer is injected into society and thos that put it there sit back and watch it do it job.

    Everything and I mean everything is changed form what it is at face value to race and just eats at our society more and more until there will be nothing left.

    I’m trully disgusted on a Monday morning with now, this being the 4th story I’ve read and the comments have changed from the situation that be to stupid babble that solves nothing but creates an even bigger problem. The destruction of our island.

    These are the facts, as the Chamber has presented them. If this doesn’t scare you and make you wonder how you are going to survive this, then go right ahead, but please don’t comment on things until you yourself have investigated them. Please take the fogged goggles off. We are all headed into a huge problem, and some of us are already there. It’s going to get worse before it’s get better. And the only ones who are going to survuive are the ones that put us there.

  11. Humm.... says:

    This data is describing a trend which is all too familiar. Ultimately Bermuda needs to find and play it’s position in this new emerging world. The problem can’t be fixed using the same thinking that created it, so to truly start fresh would mean moving in a sustainable direction.

    What we need is soil or oil