PLP To Host Town Hall On Airport Project

November 28, 2014

The Progressive Labour Party will be hosting a Town Hall meeting to discuss the circumstances surrounding the airport redevelopment on Tuesday, December 2 at Francis Patton School.

Earlier this month, the Government announced they had reached an agreement with the Canadian Commercial Corporation [CCC] to build a new airport terminal building.

Finance Minister Bob Richards said the “financing will rely entirely on the future revenue streams from the new airport itself,” and it is expected to cost in the “range of $200 million”.

In a statement announcing the Town Hall, Shadow Finance Minister David Burt said, ”With $1 billion dollars of future Bermuda revenue at stake, a no-bid contract to a Canadian Company, and the loss of control of our airport for 30 years through privatisation, this is an issue of national importance.

Shadow Transport Minister Lawrence Scott said, “L.F. Wade International is employed nearly 100% by Bermudians, provides a major source of revenue to the government and is our primary access point to Bermuda.

“We simply cannot permit it to be privatised for 30 years in what appears to be a backroom deal that could jeopardize Bermudian jobs,” added Mr. Scott.

The PLP’s Town Hall Meeting on the airport project will be held on Tuesday, December 2 at the Francis Patton School starting at 7.00pm, with panelists set to include Shadow Finance Minister David Burt and Shadow Transport Minister Lawrence Scott.

You can view all our coverage of the airport redevelopment project here.

Read More About

Category: All, News, Politics

Comments (80)

Trackback URL | Comments RSS Feed

  1. Navin Johnson says:

    wanna bet the same people who attended all the other countless “Town Hall” meetings attend this ? PLP standing in the way of progress for Bermuda…..

    • Encyclopedia says:

      Come on!! You cannot be blind to the fact that there was no RFP !! Why should there be any politics in this.

      Transparency through an RFP is always superior.

      • Not exactly says:

        1. We’ve seen the way that RFPs have gone in past so they are no guarantee of value for money, despite best intentions.

        2. An RFP would mean that Bermuda is controlling and FINANCING the project. We are not in a position to do so and even if we were our present risk rating would mean expensive financing.

        3. CCC is the only (or one of the only) organizations of its type that actually puts its sovereign country’s assets/credit rating on the line. Canada is a AAA country so by them financing the project, Bermuda(ians) will pay much less in financing costs.

        • Encyclopedia says:

          How do you know that another Airport builder could not have given a far better deal with an EXIM Bank financing the deal from their country??

          I have audited quite a few airport builders where this was the modus operandi.

          • Stunned... says:

            If you have audited quite a few airport builders, kindly be of service and provide names of credible airport builders to the Bermuda Government and the people of Bermuda. We are anxiously awaiting…over to you.

            • Encyclopedia says:

              As a matter of fact, I did inform them of an experienced airport builder that has built 3 international airports.

              No response at all from the Govt though.

              • Stunned... says:

                @ encycl – thank you for your reply. Please feel free to raise a question at the next Town Hall regarding your input and the lack of a Governmental reply.

              • Build a Better Bermuda says:

                And who financed those airports? One of the leading misconceptions is that CCC will be building the airport, truth is, they will be financing the building and running it for whatever the contracted period of time is to recoup their financing. They will be hiring the general contractor who will build this, and who ever that GC is, they will have to be Bermudian… Or at least majority partnered with a Bermudian company. Similar to the hospital, while the hospital was built by BCM McAlpine, they were substantially supported by the McAlpine group in the UK. This will most likely be the case here too, as any company wishing to operate in the local market will need to abide by the 60/40 unless otherwise relieved through parliament. The GC will also be hiring local subcontractors to carry out the multitude of trades that will be required. And as has been explained the MOU that was signed laid out that local talent was to be the main source, that said, it has to be recognized that you could not sink a tea cup with the amount of local talent that has actually had first hand experience building a modern airport.
                While I would like to see how it came about that CCC was the chosen party, it has to be recognized that there are so very few other entities that do this sort of engine. There are some from China, but as I understand it, they do this by bring in Chinese labor and leave very little for local trades.
                Lastly, it reflect poorly on the PLP that continued to batter out this $1b figure of lost revenue to Bermuda’s as an attempt to create further criticism against the OBA. How can anyone claim to be a financial authority, when they do not know how to present an income stream by the basic removal of expense from revenue, this is not finance 101, it is finance preschool. Either the PLP set out to deceive us with this number, or don’t know how to calculate finances.

                • Allspice says:

                  “truth is, they will be financing the building and running it for whatever the contracted period of time is to recoup their financing.”

                  This is the question we should all be asking right here. Yes they build it. Yes maybe we get more attractive financing. What about the $200 mill though? The recoup process is going to be a bitch. To get that much money out of our little airport is going to take some aggressive pricing of the various services, and may actually make it more difficult for us to negotiate with airlines, have affordable concessions, etc.

                  Just something to think about.

              • James Rego says:

                Encyclopedia why are you using two email addresses?

          • Black Soil says:

            The PLP/BIU/Tea Party/Peoples Campaign are just annoyed that they can’t pull off a Berkley School II at the airport. Berkley (and all the major govt contracts) had RFP’s, and look what good they did!!!!! Bermuda needs to wake up and understand the true forces that are working here.

          • James Rego says:

            Encyclopedia why are you using two email addresses?

        • Sigh says:

          1. They aren’t a guarantee of value for money, correct. But they do ensure transparency and better ensure that side deals or personal biases aren’t influencing decisions.

          2. Uh, no. An RFP just means that Bermuda is listening to other options. Which, seems pretty reasonable given the magnitude of what is being discussed.

          3. (A) How do we know this if we haven’t heard from any other parties. (B) That guarantee comes at a cost, like everything else. Do we need the Canadian government backing an airport operator? Also “Bermuda paying less financing costs” is nonsensical since the whole plan here is for Bermuda not to pay to finance the thing.

          • Not exactly says:

            Re: 3) Point taken and apologies. I condensed my line of thinking too much. The company financing the project would be doing so with Canada AAA rating behind it, therefore the total cost of the project would be less expensive than if the Bermuda Government had to finance the same project ceteris paribus.

        • Robert Daniels says:

          So goes for foregoing an RFP on this project …then we will see more of this in the future.

    • Sigh says:

      Maybe thats the problem. If people from both parties would at least *try* to work together, maybe a reasonable solution might actually come about.

      I fully expect a “well why don’t they work with us” comment from either side, and that is the saddest thing of all.

    • Serious Though says:

      Why can’t PLP hold a Town Hall meeting(s) on ideas they champion , like how to create JOBS???

      • Build a Better Bermuda says:

        Because they don’t have any details, just vague ideas of things that are batted out in other areas of the world, with zero notion towards their viability here. Truth be told, they would simply embark on the same path they were heading prior to the election, would collaborate with the OBA as much as the OBA collaborates with them and use their control over parliament to steam through their ideas. The only difference between the 2 is that we know the direction thenPLP will take us from recent experience, while the OBA’s has yet to fully unfold. For now I am still willing to see where they take us, because, for now we are stating to see the potential beginnings of progress back up. I would like to see some more backing as to why CCC was entertained over other possibilities.

    • Stunned... says:

      “standing strong behind the mis-informed”

  2. Ski bunny says:

    I think the town hall meeting should be about basic human rights, equal rights and justice for all especially women.

  3. Valirie Marcia Akinstall says:

    I would say the PLP have stolen your thunder, Bob Richards…

    Bob Richards had the opportunity to invite the public to town hall meetings and explain what, when, how and where the financing of this project is coming from.

    The one criticism – your decision smacks of contempt for the people of Bermuda as YOU CONSISTENTLY FAIL TO CONSULT AND/OR ENGAGE the people of Bermuda regarding major government expenses that affect our future.

    Examples:- SAGE, and you were taken by surprize by public reaction? And now the new airport terminal.

    For anyone whose memory fails him/her, do you remember the government capital building Westgate Prisons project? There were vast financial overruns and the UBP sought to bury their lack financial competence as they kept going back Parliament seeking additional funding.

    The PLP is not the ONLY government that made mistakes on capital projects. And yes, I will concede that they (PLP) made more, but the UBP were much better at masking their financial incompetency from the public.

    Now we have the Old Guard of the UBP who run this country: Dunkley, Richards, Gibbons, Pamplin-Gordon, Moniz, etc, and ONE infallible trait that remains of the UBP, beyond a shadow of a doubt, they indulge in communications blackouts on major policies of national importance.

    Some (former UBP MPs) can talk up a storm on other issues and bring Parliament to a literal standstill, but there are virtually NO communications on matters of national importance.

    London, England

    • A Better Bermuda says:

      Paving the way for excuses for the upcoming $20M 500% cost over runs on a golf course.The PLP can have ALL the town hall meetings they want but the facts still remain 1) the PLP is the reason Bermuda has $2N in debt and a civil service that Bermuda can’t afford.

      I am extremely disappointed in you Val. Your posts are usually well thought out and show good reasoning. Wake up and stop allowing your self to be so easily manipulated by a party that only want to get back into power for thier own benefit. Sure they might buy a vote here and there with freebies but how can they EVER be trusted to run this country again when we all have 14 years of proof staring us in the face

      • Valirie Marcia Akinstall says:

        It’s now time to live in the HERE AND NOW.

        Of course I was extremely disappointed in many policies of the former government that sent us off course, but honestly, can we turn back the hands of time or are we marching forward?

        When the PLP went off course, I remember just two individuals who spoke out, the late Patricia Ferguson and myself. We spoke out in Bermuda’s interests.

        Now suddenly all OBA supporters have found their voices? After the change in government and drowning out any other voices?

        I guess the interest of Bermuda is not the agenda, and I have no power over history. But I want to speak now, because I believe in that political interests play second fiddle to the interests of Bermuda.

        • LiarLiar says:

          Actually we spoke out each and every day despite your arrogant (me, me, me) assertions that you were one of only two people.

          When we did speak out we were called racists, undle toms, white supremacists, lynch mobs, fear mongerers the combined opposition and the like.

          And if the UBP ‘lacked financial competence’ (as you put it) how would you describe the PLP’s decimation of our public financial position?

          Do you understand the difference between revenues and income? Why is that Burt and Co. have omitted the expenses attached to the airport revenue?

        • jt says:

          Two? Really?

        • A Better Bermuda says:

          Fair enough and I respect your opinion and agree with you that we need to live in the hear and now.

          In 2010, the ownership of Bermuda was sold to foreign lenders. So unfortunately, Bermuda is broke now (not broke actually, worse, in debt) and now we just don’t have the same choices available to us. This 1) gives us a new airport 2) ensures the risk of cost overruns are not passed onto Bermuda and 3) creates jobs and there is no downside. Who would this RPF go out to considering we can’t pay and CCC has guaranteed they will absorb and cost over runs? Don’t you think the facts that we need jobs NOW outweighs political pandering? I get your point but until Bermuda pay off the debt, we are no longer in the drivers seat.

        • Thank you for being only one of two people who ever spoke out against the PLP.

        • Redman says:

          Talk about being a legend in your own mind.

          Get a load if this BS from Maria – “When the PLP went off course, I remember just two individuals who spoke out, the late Patricia Ferguson and myself. We spoke out in Bermuda’s interests”.

          Yup all 65,000 plus residents here just sat by and watched the PLP’s numerous failings and economy destroying policies and said nothing just those two. Delusional Much??

          Maria, Your not fit to be mentioned in the same breath as Pat.

          • Redman says:

            Oops, hit submit comment by mistake and before I had sorted the name. That should be @ Valirie Marcia …

  4. Christopher James says:

    Just another opportunity for PLP to stir the shyte.

    Flatts, Bermuda

  5. We do not need a new airport .Bottom line.

    • Juice says:

      The one thing that both parties fully agree on is that we do need a new airport. The facility is aging and beginning to fall apart. Instead of pumping millions into patching it up, building a new one is the more sensible and hopefully (if Richards is right) the more economical way to go.

    • Harry Buttle says:

      The Canadians did a fine job of the new airport terminal in Nassau Bahamas, why can’t they build a nice one here? The current building is outdated and frankly falling apart despite efforts to renovate it.

    • Sigh says:

      I wonder how much it would cost to just fix up the terminal. Maybe $30mil? Why wasn’t this option considered? There is so much here that makes no sense.

      Why on Gods green Earth do we think an airport that needs a solar farm to be economical is a good idea?!

      • Stunned... says:

        pardon me, but last I checked, the Bermuda Government was in debt. While $30m facelift might sound like a good alternative, please advise how this can be fiscally achieved. Of course, we can start with less funding of public assistance- now that will cause a hue and cry, less policing, less educational funding and so on.

      • Creamy says:

        The thing that you and the PLP hate to see, is something done thst will employ Bermudians.
        The only thing the PLP wants is to delay initiatives like this indefinitely, and then claim the OBA hasn’t created jobs.
        Two weeks ago Bean wanted “bold initiatives”. Now he wants to delay, procrastinate, and bring up “why don’t we just renovate it” sheeet.

  6. Double Standards says:

    How does the PLP suggest financing the airport redevelopment? They have acknowledged the need for doing so, but have not provided one idea as to how to finance such a project. It can’t come from the Govt coffers as those are bare.

    And why does the PLP keep on going on about revenue and completely disregards the expenses attached to the revenue? The airport makes a very small contribution to Govt finances of around $3mn annually and in some years have reported losses that are cushioned by the consolidated fund.

    So $3mn over 30 years is $90mn in lost income which is less than 10% of the. Govts budget for ONE year. Hardly an issue in the big picture.

    But if you guys don’t want jobs then continue on and then complain about how new jobs aren’t being created. Or we can talk about as to why we cannot fund our own airport development and why our finances are in the gutter. Let’s start with Port Royal, Berkeley, Dockyard Pier and then move onto the Court building.

  7. watching says:

    I am pleased to see the PLP taking it to the people. The OBA refuse to consult or engage and believe in a do as we say mentality.
    Bob Richards and Michael Fahy’s condescending arrogance will be the OBA’s downfall. Especially with Bob saying that this deal is too complicated to explain to the average man.

    • Forrest Gump says:

      Hmmm, I recall reading just this week that the OBA and Minister Fahy are holding up the new work permit policies for further consultation. The Minister of Education and the Department of Education have spent months consulting with parents on how the new guidelines for parental involvement in schools should be implemented. The list really does go on, but perhaps you wouldn’t want to hear it anyway.

    • Call Me Crazy says:

      You folks are mad!

      We need jobs and hence economic stimulus! You’ll be mad not to take advantage of this option and now! The Canadian government has a lot more experience at tendering/major contracts than we do! You think?

      The PLP are only interested in ensuring that the OBA (not UBP) fails.

      There is certainly a lot of unnecessary discourse/noise. Do your homework PLP, but don’t sow a whole lot of crap as we are in CRISIS mode. If that’s your objective, then shame on you!

      FOLKS WE ARE BROKE! DON’T FORGET THIS FACT… WE ARE NOW IN CRISIS MODE. BUT FROM WHAT I SEE, NO ONE SEEMS TO CARE?

      The OBA is getting frustrated as the PLP are acting like the “NO” US Republicans. The perceived “arrogance” will continue ONLY to offset the PLP’s obstructionist approach. And so be it! Get the job done!

      Politics should not surmount our national interest.

      Smiths

    • Stunned... says:

      who was more condescending – Col. David Burch or The Hon. Dr. Ewart Brown …out of curiosity?

    • A Better Bermuda says:

      Thanks for the laugh “refuse to consult or engage”. Listen to toxic talk shows much? Thanks for trying to keep us in the dark ages

  8. John E. Thorne says:

    The only comment I have is make sure you provide both the revenue and expenses and therefore the net profit or loss for the airport at the meeting! If the airport is so profitable where is the hundreds of millions of dollars generated during the 14 years the PLP were in power?

  9. Onion says:

    I hope Bob Richards goes to address the PLP’s concerns.

    The PLP after all were the expert on not tendering projects.

  10. Joonya says:

    I wish the PLP had been this diligent when they were trying to manage our expenses.

  11. swing voter says:

    I didn’t attend opposition UBP/OBA town halls, SAGE, Big Conversation, Peoples Campaign etc etc….so I won’t attend PLP town halls. Just earn your MP salary and table your ideas in the HOA instead of peaching to the choir

  12. Coffee says:

    Who will be responsible for the maintainance and upgrades to the runway ?

    • mixitup says:

      And who will pick up the Tab for subsidies to the Airlines? If this company is ‘Taking Over’ then the Gov’t no longer banks 25Mil. per year, but WILL they still be paying the millions they Pay To Certain Carriers to Fly Here?

      • LiarLiar says:

        Govt never has ‘banked’ $25mn of revenues per year from the airport.

        There are expenses attached to that revenue. You should ask or research what the net income is for thw airport operations. I have already, and they in no way could fund the redevelopment of the airport.

        • mixitup says:

          And the subsidies?

          • Creamy says:

            And next week you’ll be whining “where are the jobs! We want jobs”.
            Any development, any sign of success, anything, you hate to see.

  13. aceboy says:

    The PLP version of a RFP is to hand it to an insider who then takes the job for everything it is worth.

    The PLP handled capital projects so badly that there is no faith in the local contractors who are simply used to the “change work order” game and who milk the system.

    Bean’s comment about the “contracts” being the most important thing in government spoke volumes.

    • Sigh says:

      I agree, the PLP did a lot of shady stuff just like this, but does that make it right for the OBA to do it? Or should the OBA prove that they are different and worthy of greater respect than the shambles that were the PLP?

      • Build a Better Bermuda says:

        Please don’t let yourself get sucked into the “there was no RFP” and “we’re giving $1B in revenues” propaganda. I agree that the OBA must absolutely be held up to higher standards than the PLP ever was but this is just a Memorandum of Understanding so that the details can be explored further. This is NOT a binding contract. I personally think it’s a great way to fund an airport and create jobs in a situation when we don’t have the cash right now to even renovate the existing airport.

        The PLP are the LAST people in Bermuda who should be discussing how contracts work.

      • Rhonnie aka Blue Familiar says:

        You make a good point.

        But while the decision wasn’t particularly transparent, it doesn’t mean that it’s a bad one, or will be as badly mismanaged as things seemed to have been during the PLP government.

        This is why the opposition and the people need watch the proceedings closely.

        • Building a Better Bermuda says:

          I agree that it could have been handled better politically but the process of finding someone to develop the airport was started under the PLP and I honestly don’t know at which stage or who decided not to do an RPF. If was an amateurish political decision if you ask me, but I have no doubt end result will be the same

  14. Triangle Drifter says:

    Operation Attention Diversion is well underway. The PLP is out in that hayfield again looking for what has not been baled up.

    Will free food be served at the meeting along with the green beverage?

  15. Ringmaster says:

    Town Hall meetings are fine, except if this one resembles the Town Hall meetings about PRC and Status then it will be light on facts and truth and heavy on misinformation.

    • Creamy says:

      You mean the meetings where they said 6,000 new Bermudians would be created, all of them white?

  16. The simple facts says:

    The reality is simply this, whenever the OBA bring forward a proposal, the PLP will try and block it. They are opposition. Their job is to oppose. If the OBA get momentum on these projects, these projects will potentially create jobs. More jobs are bad for the PLP because that will mean that things maybe changing. This positive change could mean that voters see a change in the economy and begin to have faith in the ruling government. This is not good for the PLP come voting time. The PLP want to continue to block any projects so they can say that the OBA have been in power for a term and have not come through on there promises of more employment.

    Think about it,:- Bermuda has no money, so how can we afford an airport without foreign investment? Who would invest in a project if they did not see a means of getting their money back?

    Please people don’t be fooled and stop letting immoral politics divide us. Don’t let people doubt your intelligence.

    OBA you are the government, please govern.

    • James Rego says:

      Thank you “The Simple Facts”

    • Redman says:

      @ simple facts,

      Well said. That was simply put and explained; hopefully it will enlighten a few more. The sad thing is that there is a need for you (and others) to even say such.

      Sighs.

  17. Dieharts says:

    Diehards will be there. Sensible persons will stay home.

  18. Jackie Chan says:

    This agreement with CCC is really more of a financing approach and affords Bermuda a far better financing arrangement than we could ever get for ourselves. We should be focused on the fact that this project will provide jobs and a first class facility. It’s already been noted that the cost of the project is not yet determined and the plan does not privatize the airport.

    The Opposition should focus their energy on explaining to the Public what they did with our money “Port Royal” for example! If they had managed our money better under their government, maybe we could have built a new airport with our own money.

  19. Rhonnie aka BlueFamiliar says:

    Okay, it’s nice to see an engaged opposition, I just wish it was for the right reasons.

    The problem I have with this is that, given past statements on the issue, I have no faith that what the PLP will do is actually inform people of the reality of the situation. What I expect is that they will give misinformation, like the $1 billion number, in order to whip of paranoia in the public.

    The job of the opposition is not to feed public fear and paranoia.

    Please, please, please, PLP, don’t continue to be part of the problem.

    Tell the public the Government should have been more transparent, tell the public that you’ll watch the proceedings closely, tell the public that you’ll do everything in your power to make certain that Bermudians are used in the project to the highest level possible, and that the airport will continue to employ a very high level of Bermudian employees.

    You don’t think the Government is looking out for the best interests of Bermudians? Then you be our watchdog, not our snake.

  20. Alvin Williams says:

    It interesting that one of the arguments put forward by the OBA government finance minister that Bermuda will not put up any finance for the building of a new airport; looks like the Canadian government as the backer of this Canadian company; is giving Bermuda foreign Aid? Interesting because Bermuda is still a British Overseas territory; and one would think that would be the role of the British. Of course the Canadian government is doing what nations have always done; backed the economic and commercial interests of their nationals. One would think of the British control East Indian company which dominate the economic assets of a British colonial rule India. Come to think about it that is how Bermuda started out with English shareholders starting what they called the Somers Island company dividing Bermuda up into eight tribes or privately owned parishes which still bear their names up till today. These private owners also had connections in early America and and the East Indian company; all backed by British military and navel power. In the end that control would be loosen. Things are done differently today; now multi-national companies go around the world engaging willing governments with their deals. One wonders why this government is so willing to fall into the lap of one of these companies without examining all the prospects for such developments out there in the world?

  21. Coffee says:

    Will the replacement of the temporary permanent bridge be part of the gateway to Bermuda deal ?

    • Triangle Drifter says:

      Why would it be? The bridge is a bridge. The terminal is a new terminal. Notice I stress TERMINAL. The airfield itself also has nothing to do with this development.

      I know, it is tough to separate issues but please try.

      The PLP recieved $10M sometime ago for bridge repairs &/or replacement. Where did that money go? Oh yeah…thats right.

  22. yawn says:

    The spanky new hospital is a public private partnership, so with the airport, whats the big deal?

  23. Stunned... says:

    I’m guessing this Town Hall meeting is to stand strong behind creative initiatives that allow Bermudians to 1) Create an updated airport which dovetails into a) An Airport at International Standards b) A better Tourism product c) A pay-as-you-go payment plan thereby NO DEBT REPAYMENTS by any Bermudian this or the next generation c) The creation of jobs for some Bermudians (half a loaf is better than none theory).

    Come on Bermuda, we need to ride this train together and stop all this derailment with constant negativity, no ideas and no solutions. Be a part of the solution for a change.

  24. Build a Better Bermuda says:

    OBA: Please hold a town hall meeting on the results of the Port Royal report. Anyone can attend

  25. Building a Better Bermuda says:

    Are all the unions going to be told that they have to attend and bring placards and shout protests when David Burt is trying to speak. Or are PLP pep rallys only held when the Government holds a town hall meeting?

  26. bluebird says:

    This is all about the PLP/BIU trying to hold this off until they can get back in Power.
    I can imagine that it woukld go to $400Million and not be accountable for the money.
    From Berkley to Port Royal all “HUGE” over runs and no one knows where the money went.
    That is why we have such a “HUGE” Debt now at $160Million per year Interest.
    Bermuda Goverment will be “PRIVITIZED” as we cannot afford to “BORROW”
    other peoples money at $300Million per year for ever,just to keep a “HUGE” goverment running.
    As the minister said,Money does not grow on TREES,it comes from outside of Bermuda.
    Remember the “GOLDEN RULE” he whom has the “GOLD RULES”

  27. Passed Gas says:

    While you are there, can we discuss where the $800 million dollars of unaccounted for money went while the PLP was in power. Also can you also add to the agenda a talk on the Port Royal overspending and unaccounted for millions? Just Askin!?

  28. Raymond Ray says:

    All question mentioned by the P.L.P. have been answered by the Minister: “All labour will be done by locals” The backing of the project will come from C.C.C. and we will pay them back,(plus a profit of course) over a period of 30 years!
    What is wrong with that “ulot” around there at Alaska Hall? This is win-win opportunity for everyone on this Island…Even Lance Hayward could have seen it :-(