Premier on Budget: “Unprecedented Challenges”

February 18, 2011

Premier Cox has released a statement about the 2011/12 Budget – which is due to be delivered today [Feb 18] in the House of Assembly.

The Premier said: “The mainsprings that underpin Bermuda’s economy(International Business and Tourism) have been weakened. We are facing sluggish growth in revenue and upward pressures on expenditure.So the table is set. There are some unprecedented challenges.”

“The thrust of the Budget will also reflect a willingness to have the courage to take the difficult decisions and accept accountability for the results.”

The Premier’s full statement is below:

The National Budget 2011-2012 has a different feel.

This is a particularly significant budget both for the Island and for me personally.

As Premier, I was able to have the final say on what I considered were the non negotiable elements of our financial plan. This is not the time for faint-hearted leadership. We are not responsible for the recession and the financial crisis but we are most certainly responsible for how we respond to them.

The corrosive effects of the recession spread to every industry and segment of the economy. So it undercut the capacity of most firms in virtually every industry to offer jobs and generate income.

As the recession spread through our economy the rate of increase in employment income declined and eventually turned negative.

The recession also negatively impacted the finances of the Bermuda Government. This is especially true with respect to the level and composition of revenue.

The mainsprings that underpin Bermuda’s economy(International Business and Tourism) have been weakened.

We are facing sluggish growth in revenue and upward pressures on expenditure.

So the table is set. There are some unprecedented challenges.

For Bermuda, it is critical that we prepare our economy for what we expect will be the start of a recovery in 2012. With that in mind, it is important to remember just what this budget is aiming to achieve. There is no silver bullet, no quick fix available.

The National Budget will adjust some of the key elements of the economy with the goal of putting us on the road to recovery and in such a position that we are able to respond to the growth opportunities that we expect to see in a year’s time. What we do not intend to do is allow the economy to deteriorate to the point where it is unable to respond when the time comes.

The programme that I will outline will include different features that include structural transformation of the way we will approach public sector financial planning. The National Budget will signal a clear commitment to repositioning the economy to grasp the opportunities of tomorrow.

The thrust of the Budget will also reflect a willingness to have the courage to take the difficult decisions and accept accountability for the results.

The budget is all about leadership.

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Comments (17)

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  1. bill says:

    sounds like we are about to see some “smoke and mirrors” that will be “unprecedented for bermuda”…Just cut the crap Paula, you and all your power hungry pears failed at running this country. Our Premier, in this speech, is getting us ready for more troubles, taxes and nepotism to continue through out the next fiscal year.

  2. bill says:

    Oh and one more thing Paula, could you stop blaming everything on the “economic crisis” as this has been the PLP’s excuse for a couple of years now and we do not need to hear the PLP’s excuses anymore…we want action, you all sound like smalltime record company wannabee’s

  3. Robert Bryce says:

    So the new Premier is saying as Premier she has final say, admitting that the ex Premier controlled and overruled her despite her role as Minister of Finance (for the past 9 years). This shows that Bermuda’s problems are to a large part self inflicted and little to do with the world recession. How many dollars were wasted on unaccountable cost overruns and overcharging in the last 5 years? We’ll never know as there are too many skeletons that tag many in and out of Cabinet.
    Let’s see the promised $150million in cuts from Government expenditure detailed in the Budget today, with no new taxes or debt. That would be a good start.

  4. bill says:

    The “mainsprings of the economy” are they connected to the “Cog in the wheel?”

  5. Malachi says:

    I have finally reached the point where I have had enough of Paula’s Lousy Party. On the next polling day…I will stay as far away from the polling booth as possible.

  6. Sarah says:

    “For Bermuda, it is critical that we prepare our economy for what we expect will be the start of a recovery in 2012.”
    That’s a nice sentiment. Facts to back that up?

    “What we do not intend to do is allow the economy to deteriorate to the point where it is unable to respond when the time comes.”
    Bit late, I think.

  7. WE HAVE TO WAITE AND SEE !!!

  8. Justin says:

    This is coming from the same person who told us a few years ago that the financial challenges that the US faces will have no impact on Bermuda. Back then she was our CFO and now she’s been promoted to CEO. Nice one….

  9. Real Talk says:

    They may not be responsible for the recession but they are most certainly responsible for the amount of debt we find ourselves in…

    Start of recovery in 2012!? Wait. Didn’t they say last year that we were in economic recovery!? Now we’re on the “road to economic recovery”…

  10. sandgrownan says:

    “…accountability for results…”

    Paula – you’re joking right? I mean you can’t have said that with a straight face. She who said she was just a “cog”…?

    Shame on you all.

  11. lifeblood says:

    Hold still. The new socialist system we’re about to transition to will be complete soon. It will hurt less if we don’t move too much. This was the planned outcome…the only outcome of a global cedit system of finance, based on debt spending.

  12. Todd says:

    Oh Crap…. put your waders on cause its gonna start piling up….

  13. Truth says:

    …they better leave International Business alone. They already jacked up the payroll taxes. If they pull some other nonsense to further squeeze IB, I believe that they will hasten their downsizing. With other jurisdictions becoming so competitive we can’t afford to push our companies out the door because it is too expensive to do business here. We have to realistic. Listing Tourism as an economic is a farce. We have one pillar, IB and we better get serious about protecting it.

  14. Jim Bean says:

    Premier Cox – we wont forget that the buck has always stopped with you. this “new administration garbage” to a complete red herring – you have failed us – YOU!! Check the constitution – ask Terry Lister – look what he admitted when he campaigned for leader – PAULA THIS IS YOUR FAULT!!!!!

  15. Jim Garlic says:

    “These are the best of times and at the same… the worst.The true character of The Premier shall preside and prosper.Let us now set aside our differences and bind together.

  16. Triangle Drifter says:

    This lot could not run a snowcone stand on the South Road on a hot summer day. They would leave the ice in the sun & wonder where it disappeared?

    Hey…we got what we asked for. We got what we deserve.

    Nobody should be blamed for voting PLP in 1998. Bermuda was due for a change. However, given the performance from the first term which was not good but nowhere as bad as the next two, they should have been voted right out again.

    So…if you voted PLP & are not happy with being out of work & are looking for somebody to blame, stand in front of a mirror & you will see whose fault it is.

  17. 32n64w says:

    “For Bermuda, it is critical that we prepare our economy for what we expect will be the start of a recovery in 2012.”

    Um …. wasn’t last year the recovery budget !?