Richards: “Growing The Economy We’ve Got”
[Opinion column written by Minister of Finance Bob Richards]
Economic growth is essential for Bermuda’s recovery from years of recession and fiscal mismanagement.
Growth is the Government’s Number One priority because only through growth – fueled by new dollars flowing into the Island from abroad– can we improve the lives of more Bermudians more quickly than anything else.
No fuel – no growth.
We are focused on rebuilding tourism and expanding international business because they are the two main earners of foreign dollars. Bermuda needs those dollars to pay for virtually everything we consume, from groceries and school supplies to pensions and interest payments on the public debt.
The Opposition wants Bermuda to take a different path – a dangerous path in my view.
Recently, its spokesman for Finance dismissed the growth potential of international business and tourism, saying the Island should instead diversify the economy beyond these two pillars of our economy because they will not provide the growth Bermuda needs.
Their solution? Online gaming.
No one in this Government dismisses the virtues of diversification. Generations of Bermudians have looked for that all-important third leg to the economy for the stability it could provide.
But as a plan to bring economic relief to Bermudians suffering today, the Opposition’s ‘plan’ falls far short of what is needed.
What was particularly concerning about the Opposition’s statement was the absence of any commitment or belief in tourism and international business, as though they were yesterday’s story with nothing to offer Bermuda today or in the future.
It is a view with which we disagree, completely.
There are no defeatists in this government. We will not give up on tourism. Yes, it is an industry that has been badly managed for years, but we will not throw in the towel. Not this Government.
We believe tourism can work again for the Island’s people. Since coming to office, we have cultivated an investor-friendly attitude and environment. Confidence is building, with more promising hotel activity than we’ve seen in decades. And we have God-given resources of beauty, climate and skilled people that we are going to use properly. We’re going to keep at it until we get results that create the jobs and careers Bermudians need.
We are also going to continue building the international sector because it is the mainstay of the economy, generating the lion’s share of the Island’s income. The Opposition described the reinsurance sector as a “mature industry” that cannot provide the growth Bermuda needs, but this indicates a misunderstanding of the industry. Reinsurance is cyclical in nature. Today there is a surplus of capital, meaning the industry is not growing, but the wheel will turn… Opposition spokesmen ought to know this.
The Opposition’s apparent indifference to tourism and international business betrays a shallow understanding of how the economy works and what is needed to keep it performing. The economy is not a perpetual motion machine. It is like an engine. It needs to be maintained, oiled and repaired and, most of all, fueled to keep it ticking over so that it can produce the jobs and incomes people need. The PLP failed to do that, and Bermudian families continue to pay the price for their neglect.
The Opposition is fond of saying we are ‘anti-Bermudian.’ It’s a ludicrous charge, but I will take this opportunity to state that the Government is embarked on a significant campaign to reverse the damage wrought during the course of the Opposition years in power – damage that absolutely had an anti-Bermudian impact.
We are acutely aware of our responsibility to do what we can to end the hardship Bermudians are experiencing, and steer the Island clear of danger. It’s going to take time. It is not like flipping a switch. The economy is not so simple. But we believe we have stabilized the situation and we can see that measurements of progress are starting to angle upwards.
We will continue to focus on growth. It’s about bringing forward gaming to promote hotel development, going after asset management business we lost in recent years, strengthening our reputation as a place to do business through regulatory reform and user-friendly policies, and working to get America’s Cup here.
It’s also about fiscal discipline. In any country, the least risky investment is viewed to be the government. If the government is poorly managed then the risk and uncertainty in all other investments increases. Poor management by the former government stifled investment in the Island – the fuel for growth. That fuel comes in two forms: pure capital and foreigners living here with capital to spend. Bermuda and Bermudians need that fuel to create new jobs and opportunities. That’s how it works.
We have a big job to do, but we are confident the results will come. We understand the impatience of many to have those results now, but we’ve got to do what we’ve got to do, which is to continue planting the seeds to grow a better tomorrow for all Bermudians.
- Bob Richards
Bob is for the status quo contrary to his statements. The debt needs to be reduced but contracting the economy is not going to do it.
The cost of credit in this country is too high. Until the cost of credit is addressed (lowered), credit cards in particular and mortgages, this country will struggle.
Unfortunately some of Bermuda’s banks are barely making it as-is with rates where they are. There’s not much worse for an economy than a major bank failure.
When, Mr. Richards and those in the OBA? The OBA promised results. When should we expect to see them? I’m not ready to condemn the OBA. I think they had a lot to fix. But I would like to see more progress.
Give them their 5 year term to give turn things in the right direction. Personally I predict we will really start to feel the weight has been lifted in another 2 years… To rev Bermuda’s stagnant economy was never going to happen overnight. Fighting the headwinds adds to the very difficult and complexed situation.
The only guaranteed way to lose a dream is to stop trying to achieve it. Minister of Finance Bob Richards, I too believe in your dream and know you are no b/ser. Bermudians must acknowledge what is good from bad and accept that it is time for things to be done differently if we’re (all) to survive in this competitive world…
Bob predicates his comments on facts.
Our debt overhang is unsustainable, new capital must be introduced into the economy to get the engine primed, once the economic engine is running again, Bermudians will be put back to work, health insurance coverage will be had by those that don’t have it now, revenue will be produced for the GVT to manage its affairs and to help lighten the debt load.
Regardless of of what your political belief–this is unescapable fact.
Notice HM Loyal Opposition aren’t banging their drum too loudly against these points as they know full well that the equation in this balancing act is to cut spending and increase revenue production.
We are very much on the right track here from a fundamental point of view. Ideas such as on line gaming are one piece of the revenue production variable AND should be encouraged!
I sure hope the community of Bermuda can look beyond ppolitics and think about economic recovery (and how to get there) so we don’t leave our children with one righteous mess.
Don’t be fooled–things are definately looking better in Bermuda theses days—recovery takes time–not overnight.
Well said Bob Richards. Keep doing what you are doing. Bermudians are naturally impatient. It took time to run the country in the ground and it will take time to dig it out. It is hard on everyone, we have to stop bickering and come together to make solutions that are reasonable. Continuing to have a pro Bermuda/anti foreign attitude is not going to help – just ask those who are begging the banks for interest payments because they cannot meet their mortgage commitments because the foreigners, the ones we wanted to get rid of, are not here to rent their houses and apartments. Just ask those restaurants that had to close because at the end of the day, it was the foreigners who were the real patrons. Get real people! If we dont work together our chances of coming of this recession in a positive way will be very slim and then it will be our children who will suffer.
What, our economy is a tree now?
I have full respect for Richards and blessed to have him as minister of finance! He doesn’t try to make friends with nobody (for votes) he keeps it real and does not sugar coat anything about our financial affairs! I think the majority of people on this island can feel the same even core plp supporters (wouldn’t tell u though) believe in you Mr. Richards.
I have full confidence in mr.richards increasing the size of his personal bank account. Not so much in his ability to regain control of our financial position as a country.
Although, i admit, i hope he proves me wrong.
Keep up the good work Mr.Richards.
You’re insulting de word “Jah.”
You’re insulting the word formed by the first 4 letters of your name.
We need to expand our online-based service industry.
Kids & adults should be learning computer programming and we should be helping the development and growth of software development companies.
code.google.com and codeacademy.com are some of many free training websites.
we need to spend with own own race,
fix everything
Great article and well said. You are on the right path – stay the course. Let’s get behind this Government – they will get the job done much quicker with Bermuda as a team pulling with them.
Cut your wage. And all politicians wages first, drastically. Then followed by another wage cut(say 25%) of all the highest paid civil servants and smaller cuts ie 20%, 15%, 10%, etc.for the lower paid workers, with the lowest paid receiving th smallest cuts.
I believe this was one of the sage recommendations, will you be tabling this?
You claim ” There are no defeatists in this government. We will not give up on tourism. Yes it is an industry that has been badly managed for years, but we will not throw in the towel. Not this government.” Yet one of “this government’s”"initial accomplishments” was their promise to fund for at least the next four years, the bta. A private business built off of public funds (oh yeah “for jobs for bermudians”)
This is “throwing in the towel” the horse has already gone through the gate.
Tourism is now in the hands of the bta and being funded by you, with our money. At least when gov. F’s up with tourism we can vote them out and try a new set, but now we are stuck with the bta.
Now you propose more privitization inititaves, are we to expect gov. to provide the same sort of incentives for ppl wanting to take over some of the things that y’all can’t handle?
Tourism is effectively farmed out, yet we have to also still pay for a tourism minister…
If the health industry is private would we still need to pay a health minister? Or private education, does this require an education minister?
This does not represent fiscal discipline it represents job cuts and the oba’s inability to run things. Why not privatize all aspects of government and leave the governing up to the governor.
Then we’d only need to pay one guy.
BTA are actively changing our Tourism product and improving things quickly. They are pushing for small high-end ships, top-notch local experiences, increased air travelers. Have you actually spoke with them? Also they are Bermudian staffed and will be self-funded in time.
How convienient!
We should all put our preconceived ideas aside, open our minds and accept the truths which Bob Richards outlines. With the same open minds, read between the lines of what he writes and think how we can, working together, protect all Bermudians and our culture.
The truth is that bob is booked to be at an event in london in a couple of weeks, the premier will also be there.
The cost for renting the venue for one night is £8,000 plus tax of course it will be catered…flights acommodation food and ground transportation as well…all for a rum fest? Where did that money come from…trees?
This government is not sensible, either that or they think the electorate are a bunch of idiots. Both scenarios are not good.
Can we have some concrete information about this excursion beforehand, like how many bermuda sponsered individuals will be there, how much is to be spent on events, gifts, or grants (not gibbons), flights and hotels etc…
Is there a budget for this excursion and what is the cap.
And more importantly how exactly will we recover these funds (if at all).
And no peicemeal crap. Bob I’m sure not even you could make any analysis of the information volenteered so far surrounding the new york trip.
We deserve more communication about these type of plans eg is this a tourism related event? Will bill and co. be there spending our money too, or is that a secret? Which ministers will be there? For what reasons? Or do you just want us to speculate, and try to find out what is going on and why in time?
Time for some transparency.