OBA & PLP Tussle On ‘Austerity’, ‘Investment’
Bermuda’s debt costs $315,000 a day and the Government has “hogtied its ability to invest in people because of its long record of wasteful and reckless spending” the OBA said, while the PLP asked what the OBA would cut, calling them the “party of no ideas and no solutions.”
“The Government’s number one goal is to hang on to power,” a statement from the OBA said. “Its campaign handlers will say anything to achieve that goal – twisting words and distorting meanings to mask reality and hide the truth of its record. Its latest campaign ad – ‘We choose investment’ – is a case in point.
“Instead of investing in people, the Government in recent years has been steadily cutting back support for people – from the Sunshine League to public schools.
“The Government says it will protect Bermudians jobs, when they can now count at least 3,000 Bermudians out of work with many more earning less than before; and the job losses continue.
“The Government, in fact, has hogtied its ability to invest in people because of its long record of wasteful and reckless spending; a record that has seen its debt skyrocket to $1.45 billion.
“The debt now costs the people of Bermuda a punishing $315,000 a day – money that could be going to the Bermudian people instead of overseas creditors.
“So debilitating is its debt situation that the Government is now borrowing just to keep the lights on and to pay civil servant salaries. It is a very precarious situation, much like a householder borrowing to pay for groceries. The question to be asked is ‘Sure, choose investment, but invest with what?.”
“The sad reality is that the Government has squandered its ability to invest in people,” said OBA Shadow Finance Minister Bob Richards.
“You can’t invest in people when you don’t have money to invest. How can they say they are standing strong for Bermudians when they have made the Island weaker and less able to invest in people than ever before? It is tragedy, an avoidable tragedy that must be turned around.
“The One Bermuda Alliance will bring forward the change Bermuda needs. We will implement dual strategies of pro-growth policies alongside cutting wasteful government spending. We will restore confidence in Bermuda as a place to do business – attracting investment that grows jobs, opportunity and security for all Bermudians. That’s the kind of investment in people Bermuda needs.
“My leader Craig Cannonier has asked me to make this the goal of our economic planning – to grow jobs, opportunity and security. It is our mission and we are ready to make it happen. Bermuda can’t afford five more years of debt, job losses and cutbacks. It’s time to get Bermuda working again for people,” concluded Mr Richards.
In response the PLP said: “There they go again. The OBA provides absolutely no ideas and no solutions for addressing the deficit.
“Mr. Richards told us that he would “cut wasteful spending,” but, he hasn’t told us what the OBA is going to cut. Mr. Richards previously said that it has to be “all about austerity.” Austerity means deep and radical cuts to jobs, education, healthcare, and pensions.
“If it has to be all about austerity Mr. Richards, what will you cut? Bermudians deserve for the party of no ideas and no solutions to finally come clean with the people and tell us where they stand. With all the fluff and none of the ideas, the OBA reminds us of a fishcake that is all potato and no fish.”
Bob,
One day you are going to have to come clean. What’s your fix? Your party has already said that you’ll put some seniors off future care. Who else will be pushed to the private sector with your hidden austerity agenda?
Sincerly,
Voter looking for answers.
Presumably when the election is called
The PLP future care plan works. It is the best plan we have had since HIP didn’t cover much. THANK YOU PLP. I’m a senior that uses the plan and happy for it.
Yes its a great plan, i don’t know why the OBA are even trying to touch it!
I’m guessing Grant Gibbons and colonial are losing business so they need more seniors there. Always looking our for their own pockets.
all you greedy people. PAY FOR YOUR OWN HEALTH CARE YOU BUMS! the government isn’t HERE to pay YOUR bills. THEY ARE TO HELP you. not PAY FOR IT.
ok. good plan. is it good if it is in deficit? or do you just not care, because “you’re gettin’ yours”. plz.
FutureCare is unaffordable for most seniors.
It appears to be unfair by instituting two premiums, one $200 more a month than the other. For exactly the same benefits.
In truth the FutureCare plan is unsustainable as it is.
Where’s the beef? No plan. No OBA Vote.
instead of hounding the opposition why dont you start asking what is the PLP’s position and plans for the future??
your comment clearly implies that you are happy to see the country continue on as it is, spending more than we are bringing in, on a daily basis. are you fine with that? stop barraging the opposition and start asking questions for the party you so love and defend
I don’t think you get it. Of course we can’t continue to spend more than what we take in. But while interst rates are low, it does less damage to borrow that it does to cut.
The private sector is still recovering, and in order to make sure the economy doesn’t tank further you borrow.
If the gov didn’t borrow money they would have to fire 1500 people. Do you think that would make the economy better or worse… think about it!
Everyone talks about the debt, but no one likes to think what the country would be like if we didn’t borrow money!
I personally HATE the fact that we have a 1 billion dollar debt, but I would have HATED even more to see what this country would have looked like if the government ran Bermuda like the private sector runs theirs. Mass layoffs would have only killed Bermuda.
Please ask the OBA, when you complain about the debt, what they would have done differently to avoid it. If they say they would have spent less, ask them how. If they say anything other than fire people, they are lying.
You really have no idea what you are talking about.
As soon as the election is called, the OBA will release it’s impressive list of new ideas, policies and solutions.
Unfortunately, the plp are afraid to call the election, and rightly so.
In the meantime what are the plp’s new ideas, policies and solutions. In reality, they have NO new ideas and continue to badger the OBA for their ideas! SMH
Um, you do realise that at some point you have to pay the debt back with interest right? And given the devastating economic and social policies instituted under the PLP the chance of a recovery, even in the short term (3-5 years), is remote at best and downright impossible if they’re returned to power.
Who said anything about mass firings? Why can’t those 1,500 (or more) Government employees work one day less a week?
The PLP keeps rattling on about doing less with more but so far only the private sector is making cuts. When will the civil service do their part?
Do you think its fair that the rest of us have to take a wage reductions, reduced hours or outright job losses but those employed by the public purse don’t?
PLP – Betraying Bermudians cine 1998, one unemployed voter at a time.
How is the 4.13% interest we’re paying on the most recent bond issue low?
The fact that it was 4x oversubscribed means that the interest rate was entirely too high.
Debt for debt’s sake.
Perhaps the OBA would have ensured that projects such as the Heritage Wharf didn’t go tens of millions of dollars over budget…
The OBA has never, ever said they would put some seniors off FutureCare. You’re making it up. They have said that the design of FutureCare by the PLP government is unsustainable in the long term and unfair to seniors who must pay more than others for the same coverage.
Um, yes they did. They said that it should be “means tested” and that means that those that they think should be lining their pockets at the insurance companies they own, should not be on a government programme.
Check your facts!
The PLP’s stolen daycare plan is “means tested”. Do you have a problem with that as well?
“Voter looking for answers”
No you’re not, your name alone clearly states where your check mark is going. The plp really suck at this blog thing don’t they? If you really want people to think you’re an undecided voter you have to more creative than that. So glad I’m not a government secret agent with you people making my cover indentities, I wouldn’t even be able to infiltrate MAWI.
This thread is so obviously scripted it is not even funny. Tell me, what are the PLP paying you guys?!
Interesting read. Some may disagree, but, i fully understand why the OBA has not published how they will make improvements. Why give the other party ideas and their solutions? I would like to see the PLP talk about realistic ideas as to how they will improve our country. How they can get rid of atleast some of this debt?
With the current government continuously stating, “There they go again, providing no ideas or solutions.” I’m starting to believe they want to see the OBA’s cards.
The next election will be very interesting!
To Angry Tax Payer,
Please help me, I do not understand “Why give the other party ideas and their solutions”.
If I do not know what the OBA will do, then why vote for them? What am I voting for them for? I am voting for change, but have no idea what that change will be.
flikel-
Do you know what the PLP will do? After all, they’re the current government. If you don’t know, why vote for them?
I’d worry more about not understanding either party’s approach once the election has been called. For now, the “they have no ideas” line is nothing more than a deflection from the poor performance of Government.
Call the election now.
EW
I am disappointed with the OBA. While I, along with many people, want change…..I need more clarity from the OBA as to their plans.
Can someone familiar with the OBA answer one basic question:
The OBA contends that Government is too big. Exactly how is the OBA going to address this problem? With the economy in such bad shape, Govt. workers will try to hold on to their jobs as long as they can. I don’t believe significant numbers of Govt. workers will voluntarily leave for ‘better’ private sector jobs. So, how is the OBA going to reduce the size of Govt.?
Please let me know
fikel,
From what I have read in statements by the OBA, they intend to decrease the size of the civil service through attrition, so when a person does leave their post or retires, then that position will not be filled unless its absolutely necessary. I believe you will also see a decrease in the number of Government job advertised.
Granted, attrition is a slow process of reducing the civil service, and I don’t think we’ll see results right away, but I don’t believe, from what I’ve read, that the OBA is in favour of making Government workers redundant, as the PLP has previously alluded to. I also think that the OBA wants to look at the way money is spent by Government across the board (not just salaries) to determine how spending can be reduced and made more efficient (i.e. is it necessary to have offices in London and New York right now?)
Attrition is already happening. That is the problem with the OBA they can’t articulate anything different.
In their capacity as the CURRENT GOVERNMENT what are the PLP doing NOW to solve the debt crunch THEY ARE RESPONSIBLE for? Where is THEIR PLAN to lift the financial yoke from our necks?
In the run-up to the last election the PLP didn’t even release a platform until just days before we went to the polls.
This same last minute, ill conceived (lack of) planning is why we’re in the mess we’re in now.
Do you think this irresponsible approach to Government serves the best interests of the electorate or only the party leadership.
I’ll give you a hint … it’s not the first one.
PLP – Betraying Bermudians since 1998, one unemployed voter at a time.
@ educated voter: I guess that’s why we keep seeing jobs advertised in the Sun, with salaries from $56K for administrative assistants all the way up to more than $150K (don’t remember what that was for, got floored by the paycheck)
Or why the Budget still shows Government salaries increasing.
2010/11- $302mil
2011/12- $337mil ($325mil orginally projected)
2012/13- $343mil (projected)
There is nothing there that indicates hiring freeze or wage freeze.
EV- Attrition is not happening… they say it is but it is not! Do you understand the size of the civil service? There are too many people and not enough work. Gov’t should not be advertising for ANY jobs period (unless something HIGHLY specialized) – if they need a new employee they should be looking for wasted resources sitting behind desks doing nothing all day in other Departments.
Civil servants are lazy and they are lazy because they are allowed to, there are no consequences or accountability.
Don’t be fooled. Just look in the Sun on Wednesdays and Fridays.
Nice touch to copy the old Saint Reagan line “there they go again”. Have the PLP ever had an original thought, or is this right out of the morons guide to campaigning?
Still, the Rovian methodology of lying until it becomes the truth and attacking the messenger rather than answering the criticism, seems to satisfy the bottom feeders.
Austerity is inevitable and every year of deficit spending it will be more severe (because they are adding on to the interest payments that need to be made). Every year wasted before government faces the inevitable we are burdening ourselves with ~$15 million more in interest costs, that = ~150 jobs lost.
The government is spending about $250 million per year more than it is making – THAT WILL STOP. It cannot continue forever, and it will either stop soon with a radical turnaround in the management of the country or it will happen later when Bermuda becomes like Greece and Spain and reaches a crisis point where it loses access to international credit.
Austerity is not inevitable. And if it that is the case, then the OBA should say that!
Well either a lot of civil servants are going to feel relly dumb and unemployed after the election, or the rest of us, including those civil servants will be in a world of financial hurt. Like I’ve said before I’m no econonomist so I could be wrong so if that isn’t the case then how do we pay off our debt with rapidly decreasing revenue streams?
First step is balance the budget. Debt is paid off in time just like a mortgage so that’s not the immediate concern. The biggest concern should be getting more working, more people trained, more business and investment on the island.
If you fire civil servants (not just talking about desk people) we’re talking about police, teachers, social workers, community nurses, sanitation, prison officers, customs, etc… Those people are now jobless which means they don’t spend money in shops which means the economy gets worse.
The only people who are able to borrow freely in recessions are governments, and short of hard assets, that is the ONLY time they should borrow.
“First step is balance the budget.”
Something the PLP have been unable to do for the last few years. Why should they be given chance after chance to fail, time and time again?
“The biggest concern should be getting more working, more people trained, more business and investment on the island.”
Agreed but given their abysmal track record the PLP have proven they are unable to implement the necessary social, economic and legislative programs to do exactly this.
The PLP will avoid austerity until after the election when it is forced upon them and us….
Seems that when the PLP were in opposition they regularly refused to provide ideas in case the UBP decided to implement them. Why should the OBA behave differently – once an election is called they can roll out their platform.
Meanwhile, to put the debt service into perspective – $315,000 per day amounts to some $5 for every man, woman, and child on the island. Every day. Meanwhile we see schools where teachers have to bring toilet paper for the students. That $5 per student would buy a lot of toilet paper.
We have parents who are struggling to provide their children with things like knapsacks – but the government is still spending that $5 every day for every student.
If anyone needs to present a plan it is the PLP. They hold all the cards and all the information. Did you know that if they force via delay the Governor to call the election that the PLP do not have to show the books before the election? That’s why they are not calling it. They don’t want you to see how bad things are. How can Opposition have a say about strategy when all the details are under PLP lock and key?
I’m not OBA, but this is how I would imagine it would go.
You can’t just sack government employees in a recession like this. Sure hiring everyone and their cousin for jobs that don’t exist was foolish and arrogant, but you can’t fire them all now. I think the government workforce is over 4 times the size it was in 1998 and frankly I don’t see any improvement in productivity and there are more consultants than ever.
STOP HIRING. No more hiring. Some will retire and some will leave via attrition. You raise the standards of employment and productivity. No more coming in late in the morning and taking long lunches and a sick-day every week. Shine a light on responsibility and act like you are thankful for your job and commit to serving the people of Bermuda as best you can. A govt. job is not shield from criticism, if anything there should be a higher standard. Everyone in the private sector shakes their head at the seeming total lack of productivity and motivation of the govt. worker. This needs to be changed from within. If you want your job then earn it.
Austerity doesnt mean not spending it means getting value for money, and that means value out of the massive govt. payroll starting now.
STOP the CONSULTANTS. No more consultants. Consultants get paid by telling people what they want to hear and they take no responsibility just a big paycheck.
Also stop hiring yourselves as consultants. Two contractors told me that when they bid for work at the hospital that they had to include 10% management fees worked in that would be attributed to someone managing their input on the project. You have to wonder who is getting the lions share of those funds.
Cut the frills. Cars, travel, luncheons whatever you can find. That won’t provide a miraculous sum of money but those pennies need to go towards healthcare, education and vital entitlements.
When you have a capital project spread the money around. Have a minimum portion of the work up for grabs by smaller contractors. I know this complicates things, but this is a really hard time for small businesses.
None of this is revolutionary, and it’s not a quick fix. Look at a decade or more to get the country back on track. We do however need confidence and hope.
There is no confidence in the PLP by anyone other than a diehard PLP voter. People from afar find the ineptitude and arrogance astounding. Standing strong on miserable performance and no future plans whilst pointing the finger at everyone is not going to help this country. The PLP needs a shake-up and it is time. The island needs a shake-up and it is time. I’m Bermudian and my wife is Bermudian and my children are Bermudian. My Plan A is here and my Plan B is here. I need some hope and confidence in the future and the PLP is not offering me that at all.
Change is needed. Why would anyone vote the current Govt. back in with its track record? Can we really sustain another 4 years of this? NO!!!! What solutions have the PLP brought forward to stimulate the economy? They can’t take credit for the recent investments by the Green family or LinkBermuda, so what exactly have the PLP done to contribute? Unfortunately the PLP have put this beautiful, once wealthy Island in serious debt that we are paying dearly for. I want my childrens futures to be promising, full of options and not struggle in their own country. The only way to go is OBA. I do not see the PLP standing strong for Bermudians.
You don’t see the PLP standing strong. Clearly you are deluded.
Ask yourself what the last 4 years in Bermuda would have been like if the PLP didn’t borrow money. We’d have about 2000 more people unemployed, massive labour unrest, 50% less cruise visitors as the new dock wouldn’t have been built, police strike as they wouldn’t have their new HQ, no CCTVs, shortage of affordable housing, and that’s just the start.
Everytime you think about the debt, remember how Bermuda would be different if we didn’t have it. Think about how painful the last 4 years would have been. During recessions governments accumulate debt, it happens, if not people suffer. That is what I call standing strong, and I cannot see why you don’t see it.
You are missing the issue… its not about having debit- its about the amount of debt and the reckless spending with nothing to show for it…. Your Government has admitted that to poor financial controls which lead to the mismanagement of millions of dollars.
And we didn’t accumulate this debit during the recession, it was accumulated before the recession and got worse because Government did not cut spending until the 2011 budget.
You do realize Government is now borrowing money to simply operate, its no longer for million dollar capital projects.
I see very clearly. The PLP have had to borrow because THEY mismanaged what they had. And I know exactly how painful it has been to me and many others. Yes, I know that we were all in a global recession, but you have to admit that there were some piss poor decisions made by the PLP, which attributed to our debt. I have come to the realization that the party that I helped elect in need to get out.
I can understand the incumbent wanting to know so they can implement the plans themselves as thier plans obviously have NOT worked…. We have beaten the recession horse to death however a lot of what has happened in Bermuda in the past 6 years is of our own doing….. For sure the OBA will present the finer details at the appropriate time,what I will say is Bermuda cannot continue on this path…. I do know there are people who will find every excuse in the book so as not to face the real hard facts which is at present Bermuda is heading in the wrong direction, so if the PLP are going to continue on this path I want none of it….. We have to take ourselves out of the equation and the focus on our children and what kind of Bermuda we want to them grow up in.
@ OBA (Only Brings Austerity): Your comment – “Your party has already said that you’ll put some seniors off future care.” is an out-right, blatant LIE!! That has NEVER been said by any member of the OBA, much less Mr. Richards. Stop scare-mongering! I’d say it was beneath you but I don’t think anything can fit, you have sunk so low.
As Betty Trump says, “its silly season!” (one of the few statements she has made that is factual). Lies, innuendo, spin, and mis-direction. Remember that any finger you point, still leaves three pointing back at you.
Pastor, I think the first poster is right. OBA said they want to mean’s test futurecare, that means some people get kicked off.
I don’t know why you don’t do the research. All parliamentary debates are online, read what they say when no-one is listening, not what they say now in their ads.
They say they are going to reduce the debt, which means balance the budget, so then what are they going to cut.
That’s a really simple question to answer, but it is interesting that they refuse to answer it.
“OBA said they want to mean’s test futurecare, that means some people get kicked off.” Think Charles!
Wealthy seniors likely will not be covered, those who are self-supporting and don’t need Government assistance. Duh!
The same transcripts where a MP remarked the PLP were “going nowhere fast”?
!!
If this were a game of cricket (I only wish) I’d be yelling at the PLP “Stop begging.” At every ball, their only response to the OBA is “well, what would you do?”
Well, inquiring Bermuda-voters-with-minds want to know what the PLP is going to do.
The PLP bleat about “investment in jobs and infrastructure.” The only jobs it appears they have invested in is the Civil Service while the private sector unemployed grows by leaps and bounds. (As an aside, I thought there was supposed to be a moratorium on Government hiring but the other day I saw about 16 jobs advertised in the Sun, with the lowest salary at about $56K and the top somewhere around $180K! And jobs continue to be advertised. That doesn’t look like a moratorium to me!) I don’t know what infrastructure they are talking about because anyone travelling the island knows they are not talking about the roads, the bridges or the roadside flora. I have never seen potholes like those that have become commonplace on this island; pedestrians have to walk in the middle of the carriage-way, the trees and weeds extend so far into the roads; and the bridges! Well, they’ve been talked about before so I won’t go down that path again, except to say – “What are YOU going to do, PLP? What’s YOUR plan, not just for jobs and roads but for our economy and for the people?”
Yes, PLP can’t ask “what are you going to do”, but its fine for you to ask that of the PLP.
You seem really open-minded.
Is she a taxpaying citizen or a running candidate for the oba? If she’s a running candidate then I suggest she doesn’t ask of someone something she isn’t willing to do herself. If she’s just a taxpaying citizen then I belive she has a right to know what the plans are of the current leadership. I think its pretty clear the oba isn’t going to release much until the election date is called so we can give that a rest now, its gotten old along with the race card, “the ubp did it too” and “the no ideas party”. Someone please get the kindergardeners out of politics, and no that’s not just a jab at the plp, “master flip-floppers” comes to mind.
That is what the Opposition does ask where OUR money is going and what plans the PLP has to stop the bleeding of debt and job losses….The OBA has given advice on numberous occaisions and we all know the response that the PLP gave…..when Future Care was rolled out to great fanfare it cost less than $300 a month and less than a year later it went to $600 which is a demonstration of how poorly planned it was….means testing is used in the US and other countries and since many in the PLP want the wealth shared why would you object to someone who can afford to pay more actually paying more instead of forcing people in Bermuda who are near destitute to choose between eating and paying for healthcare…..none of this would have ever been an issue under the previous government or under an OBA Government where you have people who run business making decisions like this every day….you think Zane should pay the same premium as you? or your Granny?
Well yeah… the plp are the GOVERNMENT!
The OBA hopes to BECOME the Government, and bares no responsibility for the condition of our Country.
On the current path that Bermuda is on,we as a country are doomed.
We need to bite the bullet now and get on with turning this economy around.
Kicking the can down the road like the U.S. will have far dire consequences on us as we have such a mininsical economy compared to them and we produce zero to sell abroad for foreign currency.
So PLP,cut the crap and move out of the way and let people who have an understanding of economics, take control.
The plp aren’t going anywhere until Paula’s pension is vested. Anytime after October 28th we’ll hear her resignation announcement.
Austerity: investement in future generations?
It really is ironic that the PLP are simply hanging on to the “what’s your plan” strategy and even more ironic that people like ‘educated voter’ seem to think it’s a credible question.
If the OBA don’t state their plan PRIOR to the day of the election then I agree, cry “where’s your plan?” all you want. But to request them to state their plan now is seriously ignorant. No opposition would do so in the same situation.
The fact is that the PLP is in power NOW. THEY can do something about the current situation. That is, IF THEY had a plan. Simply saying the “other guy doesn’t have a plan” DOES NOTHING TO MOVE THE COUNTRY FORWARD. Stop worrying about losing the election and start DOING SOMETHING to prove you are worthy of being reelected!
And no, I’m sorry just saying you’re making “investments” is not a plan. The fact that Paula pointed yesterday to the opening of new space for two existing companies (ESC/Orange Bay) as an example that there is improvement and investment is laughable.
Bob and OBA:
we the people want you ..
simply , where do you want to take the country?… the whole plan… not political zingers!
It has to be faced that certain sections of the Government need to be privatized. Wastage is rife, until various departments are run like a business with a goal to make a profit by being efficient and cost effective; we will forever have a huge hole in the tax payer’s pocket. The Government robbed the hard working people of private sector to pay civil service wages and hand out jobs to people they knew would vote and would support them. This is not the greater good of Bermuda, it is favoring one section of society vastly over another. We cannot continue to borrow money unless we seek to cut costs and increase revenues. Currently the public transport system sucks, everyone knows it. I don’t call that investing in Bermudians. I don’t call Andre Curtis pocketing a small fortune of tax payer’s money and then being put forward as a candidate an investment in Bermuda. The government is not investing, they are borrowing money that will have to be paid back by the island’s hard working people and their children and their children’s children. Yes they built Cruise ship terminals, police stations and schools, but at the same time they overspent 100’s of millions, they handed contracts to their mates who overcharged. All of that money could have helped a huge number of people in these tough times. There is no way out of this mess for either party, but to just keep on digging a bigger hole is not the solution.