Bob Richards: Debt Could Be Over a Billion

October 25, 2010

Shadow Minister of Finance Bob Richards and UBP Senator Jeanne Atherdon hosted a press conference to address aspects of the island’s financial position this afternoon [Oct 25]. Mr Richards addressed many aspects of the finance, including overspending, debt and unemployment.

Speaking on Bermuda’s debt Mr Richards said he “suspects” it has now surpassed one billion dollars. He said the last official number was in the region of $900 million and “time marches on”, and things have detoriated since then. Mr Richards drew reference to the unemployment numbers, and said that as unemployment is down and people have left Bermuda it stands to reason that Government has not been collecting the revenue they had anticipated. He said we have seen no evidence of “draconian cuts” in spending – so combining those two factors he said – “something has to give and that something is the debt”

On the topic of unemployment, Mr Richards said “we are facing the largest unemployment since World War II.”

Mr Richards said larger more diversified economies can afford to take on greater debt, but in a very small economy like Bermuda – we cannot. He said the tax increase this year “blindsided” international business, and one major concern the international business community has is the term limits. He said the employers find it hard to attract the quality staff and also dislike the “hassle-factor.”

Mr Richards said “Our term limit policy is based on assumptions of another era, when we were concerned that we would be overwhelmed” by people coming here and had to “keep them out”. He then said now we have people leaving Bermuda.

Senator Atherdon said that as far as trying to fix Bermuda’s financial position, we have greater control over expenditures. Both she and Mr Richards said that increasing revenue is key, and pointed at international business as a key part of the revenue.

When questioned about the PLP leadership contest due to take place, and whether Paula Cox is the ideal person to take over, Mr Richards said he “feels that is a question for the PLP.”

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Comments (2)

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  1. terry says:

    Jeese very quiet hare, Maybe 3 “M” bouhght out MIT. Oh well. Bobs on the money here maybe the AG (accountant general for those in the know) will have something to say. Then again the other AG might have someting to say to the othe AG………..damn…this is starting to sound like the Annual “AG”……..Show……

    Just hopping that Tom Vesey gets elected….he sure is smoking these days.

  2. Aruna says:

    “Senator Atherdon said that as far as trying to fix Bermuda’s financial position, we have greater control over expenditures. Both she and Mr Richards said that increasing revenue is key, and pointed at international business as a key part of the revenue.”

    I’m pretty sure decreasing expenditures would be the key. They said right there, they have greater control over expenditures. We have a crisis. $900 in debt? That’s insane.