Minister On Proposed Construction Payroll Relief

June 11, 2014

Minister of Finance Bob Richards today provided details of the proposed payroll tax relief for the local construction industry.

Minister Richards said: “As the Premier outlined in his address on Monday, June 9th, the local construction industry has been particularly hard hit by the economic contraction of the last five years. At least 1,200 jobs have been lost.

“However, the recent announcement that planning applications in the first six months of the year have markedly increased between 2013 and 2014 should result in an uptick in construction work.”

The Minister continued,“The construction industry makes a vital contribution to the competitiveness and prosperity of the economy and is an important gateway to the attraction of much needed foreign investment.

“What we are proposing is similar to the new Bermudian hire payroll tax relief initiative that was introduced in the 2013/14 Budget.

“Initially this relief will be targeted towards the construction of specific projects of national importance that have been approved by the Economic Development Committee.”

The Economic Development Committee [EDC] is comprised of Premier and Minister of National Security Michael Dunkley, Minister Bob Richards, Minister of Tourism Development & Transport Shawn Crockwell, Minister of Public Works Patricia Gordon-Pamplin and Minister of Home Affairs Michael Fahy.

The EDC is dedicated to ensuring large scale projects, especially those focused on new hotel developments, are given top priority and approvals at the highest levels of Government.

Minister Richards added: “Direct foreign investment is going to be one of the critical ways in which we dig ourselves out of this economic stagnation that has seen job losses and business closures during the last five years.

“We must attract foreign capital to our shores that will provide jobs not just in the construction industry, but all the other sectors that benefit from a growing workforce with more money to spend and invest in our local economy.

“The Bermuda Government can’t finance the projects and create jobs but we can provide a climate conducive to job creators to bring their capital, expertise and experience to get our economy moving again.”

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Comments (22)

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  1. Truth is killin' me... says:

    “Initially this relief will be targeted towards the construction of specific projects of national importance that have been approved by the Economic Development Committee.”———————->TARGETED CONSTRUCTION FIRMS…NOT ALL CONSTRUCTION FIRMS!!

    • Steve Biko says:

      I can understand him and his dislike towards the People Movement because he inherited it from his father, but the Gordon Sisters, SMFH
      Us as a people have been mentally dupped and de other guys laughing their A** off!!!!!!!!!!!!!!!!!!!

  2. Anon says:

    Thank you for getting the economy back on track. It’s been a long time coming and good to hear all the various things Gov. are putting into place are finally starting to pay off and hopefully this will be another one of them.

    • watching says:

      How does this say things are starting to pay off?

    • Impressive says:

      I too would like to see the economy get “back on track” but I think you are a bit premature with your statement.

  3. x OBA voter says:

    Help me understand this Bobby Brown, if the local construction has been hit for the last 5 years why does your government keep bringing in construction workers from beyond the deep blue sea? What’s the ratio at the hospital with the construction crews? The foreign workers can leave after 6 months and return home and find more work, not so easy for the local Bermudian construction worker.

  4. bluebird says:

    SO our “TAXES” are too “HIGH” imagine that.
    Private enterprize is the one that reates “JOBS” and adds to our ecconomy NOT THE HUGE GOVERMENT.
    We dont need tax relief we need TAX CUTS and CUT manny of the 69 Goverment Departments.

  5. Terry says:

    If your so thankful why not tell us more and whom you; Anon.

  6. campervan says:

    Thank you Bob for Standing Strong with your actions and not just with soundbites like the last lot.
    Lets turn this ship around!

  7. Kangoocar says:

    The last paragraph says it all!!! Marc beans brilliant idea of the government creating more construction ( which leads to MORE DEBT ) was absolute nonsense and proves the plp have not learned from their mistakes and are still just as confused today as they were when they were the govt!!! All the plp tea in the world apperantly is still not helping them understand how the economy works????

    • Concerned Citizen says:

      Soooooo, do tell Kangoocar, why did the government hire kpmg to produce another infrastructure strategy report….after their top-heavy Miami junket? Oh, I know, the very same reason Marc Bean and the PLP did!!!

      • navin johnson says:

        right you are….Bean did the same junket twice in a 6 month period..maybe did not take good notes

  8. Steve Biko says:

    Funny thing is most construction firms don’t hire Bermudians, and WE allow it!!! We guys are SOFT. SMFH

    • YADON says:

      On top of that the owners are multi millionairs and prob the last people who need a break. Government need to give BELCO a tax break on fuel which would lower ALL of our bills by an enormous amount.

  9. wondering says:

    100% fuel tax isn’t a good idea for us the ppl

  10. The Dark Knight Returns says:

    Hmmmm. This is all smoke and mirrors. It is sad that certain people will agree with just about anything this Gov puts into place. The people that need the breaks are not getting it. The Gov. say that the people now get 10% discount at the stores on Wednesdays. Well, that isn’t true, all the stores are doing is marking up the prices on those days so it appears that we are getting great savings. It is sad how many people will be blind to this and other facts simply to say that the present Gov is doing a great job. I am still beside myself that this Gov takes money from all Gov workers in the name of a furlough day and turns around and gives tax breaks to many private sectors who probably don’t even really need it. It’s again just smoke and mirrors but most are just to dumb to see it or will ignore that fact because it’s not the PLP.

    • CommonSensenBda says:

      Fascinating, TDRK, did you support “The Cog” when she told the PEOPLE that she do do NOTHING about the cost of groceries between 2011-2012?

    • LOL (Original TM*) says:

      Simple reply to this government workers spend money they don’t make money so the private sector gets the breaks so that they can generate the money to tax for government coffers which then pay the government workers who infact just spend the Government’s money. PLP OBA or whatever the fact remains the private sector are the one that need to be stimulated to generate money into the economy. Simple really.

      LOL

  11. First, please allow me to bring the following points to everyone’s attention. The “big job” were started under the Progressive Labour Party Govt.(for 14 years)and no-one was ever given a break in their Taxes there nor anyplace else. Secondly: Anyone hired on a new “big job” will be given Govt tax breaks i.e. the small companies that are / will be subcontracted.Unfortunately, for some reason you, One Bermuda Alliance can’t seem to please everyone :-(

  12. watching says:

    Bob’s statement is decidedly more specific than Premier Dunkley’s. After the national address it seemed all construction firms would be eligible. Now we see its just specific projects which likely means the hotels and anything of that magnitude.
    This in no way helps the strong construction firm, or construction worker that work for them. This will only apply to some of the major firms. Other than that, it is business as usual.

  13. CommonSensenBda says:

    Club Med property — M.O.U. has been signed for investors.
    Pink Beach —- Demolition is underway (JOBS)
    Hamilton Princess — $70 Million Upgrade (JOBS)
    Ariel Sands — Work soon to commence (JOBS)
    Sonesta Beach — Plans being to considered (Potential JOBS)
    Morgan’s Point — Construction commencing (JOBS)

    How many construction projects FOR HOTELS started under the PLP — ZERO!