Premier: PLP Reply “Dangerous, Irresponsible”
“The PLP leadership, in its Budget Reply on Friday, has taken an approach to the economy that is dangerous, irresponsible and a recipe for paralysis in the face of immense pressures to grow the economy and get our financial house in order,” Premier Craig Cannonier said this evening [Mar 2].
“I say it’s dangerous for two reasons.
“The first is the Opposition Leader’s idea to introduce corporate income tax – a change that would fundamentally alter the relationship between the Island and international business.
“It would create uncertainty in Bermuda’s business equation at a time the Island needs to be stable and promising so business can generate the kind of activity Bermudians need for jobs and our service industries need for business.
“Mr. Bean’s proposal also would create knock-on effects. Income tax, which we have never had, would require, as my colleague Finance Minister Bob Richards said Friday, an “army of civil servants” to monitor compliance – this at a time when we need to reduce the cost of government that costs us hundreds of millions of dollars more than we take in.
“The second reason there is danger lies in their call for online gaming – an electronic-based industry that creates grey opportunities for money laundering. It is difficult to monitor, difficult to regulate and difficult to know who’s involved.
“In short, online gaming is regarded as a risk to the Island’s reputation as a safe, responsible and reliable jurisdiction – a reputational risk to a country whose reputation as a blue ribbon financial centre is all-important.
“Now, in describing the PLP leaders’ approach to the economy as irresponsible, two things come to mind,” continued the Premier.
“The first lies in their call to end long-standing tax concessions to the retail, hospitality and restaurant industries. Any Bermudian working in these industries should be very concerned because this proposal is a job killer.
“Let’s put aside the fact that concessions were extended to these struggling industries by the previous PLP government to protect Bermudian jobs. Nothing has materially changed in their situation. For these industries, the hard times continue and until the general economy grows, the concessions should remain.
“The second reason I consider the PLP Budget Reply to be irresponsible is in its call to legalize marijuana so that Government can realize the revenue benefits. This position makes me think of that wise old warning: “Look before you leap.”
“There are too many potential pitfalls for Bermuda to hastily move to legalization, whether it be the impact its use may have on our people or in the challenges such a move would create with jurisdictions with whom we do business.
“The Government is taking a deliberate approach to the issue of decriminalizing marijuana. This is not a simple issue. We are currently preparing a public consultation paper, as promised in our November Throne Speech, to inform the community of the competing research on this drug, its uses and the potential impact any shift in policy might have on the Island.
“Let’s have a good look before we leap.
“My final concern with the PLP leaders’ Budget Reply is its failure to adequately address Bermuda’s two most urgent needs: the need for economic growth to generate jobs and the need to reduce the cost of government.
“The PLP would have us pursue deep-sea mining and offshore fishing, among other things. While we can agree that there is potential in such undertakings, including a more diversified and thus less vulnerable economy, these proposals will not provide meaningful relief to Bermudians now or any time soon.
“The Government’s focus is to make it possible for the Island’s existing industries to grow, providing jobs Bermudians need now. That is why we are opening doors of possibility for existing industries.
“The PLP Budget Reply also fails to truly recognize we have a serious problem with public finances, specifically the cost of government and the size and cost of our debt.
“Let’s be clear about the challenge: We are trying to slow the momentum behind government spending deficits that has been building for years. This past fiscal year, we spent an estimated $333 million more than we took in.
“This year we managed to cut that deficit nearly 20%, but that still leaves us with a deficit forecast at $267 million. Without continued drastic action, we will near the end of our rope. The Government is taking the most aggressive line possible to ensure Bermuda gets to a more secure and sustainable position.
“In the face of this serious situation, the PLP leaders’ would hedge that line, paralyzing us between actions needed and procrastination. Yes, they’re for spending cuts but they also want to spend more, millions more.
“The Government on the other hand is sticking close to a simple fact of life: You can’t spend more and cut the deficit. You can’t spend more and pay down the debt.
“Bermuda needs to take a clear, hard line to reach the twin objectives of growing the economy and getting our financial house in order. That’s what we’re doing. We’re making it possible for existing industries to create the jobs people need.
“We’re paying down the debt and shrinking the deficit to protect Bermudians today and future generations. And we’re doing it all without resorting to new or rising taxes.
“The PLP Budget Reply falls short of what Bermuda needs today. It fails to impose the discipline we need, and does not provide a plan to grow the economy now,” concluded the Premier.
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The failed and now defunct plp were nothing more than rank amateurs when it came to playing politics,the few that are still trying to resurrect the plp are also amateurs with no experience.
All they are trying to do now is scuttle the SS Bermuda.
I’ve said this before and I’ll keep saying it,IF the plp were ever to get to be the Government of Bermuda again,you can kiss your homes,fancy cars and boats Goodbye real quick because many jobs would soon go and more and more people will be out of work,unable to pay off the Banks and the Banks will have no mercy.
Happening now under the OBA, my cousin got let go from an insurance company last week. So what’s the difference?
We voted OBA for more jobs, and the jobs are disappearing!
“Nowhere did the PLP call for “Corporate income Tax,” but that didn’t stop the Premier from inventing this fiction and shamefully peddling it to the people of Bermuda. -Bernews…MP BURT..WELL SAID
This does indicate that the Premier did not listen or read the Reply to the Budget carefully. Instead he is willing to spit out NONSENSE again. FICTION VS FACTS. STOP IT PREMIER it does nothing to help you.
Come on Premier, I would have rather heard you say the UBPoba have several great ideas to “Grow and Diversity our Economy”. Folks are without jobs, and hurting. If you could only feel their pain, I think your comments would have been better directed to address the lack of JOBS in Bermuda that you promised us PRE-ELECION.
Work along with the Opposition to ensure that Bermuda’s economy grows, rather than spin in Rhetoric that does no good to move Bermuda forward. Your comments are disappointing at best.
I am hoping that UBPOba and PLP will work together in an HONEST way to GROW our Economy and to Diversity it, this is Bermuda’s only hope moving forward.
Now moving forward, we must look at solutions, and see what might be good, and what may not work. But we must look, and consider what is good. Working in the best interest of the people of Bermuda, does not include taking cheap political shots Mr. Premier.
Betty, if you read the PLP reply to the budget and turn to page 26 of that document you’ll see a call for corporate income tax (there is no other way to interpret it).
I am not sure what page 26 you and the Premier are READING. I see NO where does MP Burt indicate payment of Corporate TAXES. He does however highlight that we must be honest, in terms of the fact that IB benefits greatly in Bermuda, Bermudians do not get a fair share of the pie, and we must be honest in terms of if we are called a TAX HAVEN. Read again…
…page 25-26 budget reply:
“So Mr. Speaker, we either wear that badge with pride, or we need to break the cycle.”
Mr. Speaker, when we talk about breaking the cycle – we need to look at who uses Bermuda and for what. Last week the Minister said , “Bermuda is not a Tax Haven!” – Mr. Speaker, I agree with the Minister, we have our own tax system, a system that has worked for us since the 1800s. But here is the challenge Mr. Speaker, Bermuda is one of a handful of countries in the world that do not charge a direct corporate tax.
Thus, no matter the volume of our vociferous protestations, as long as we continue to have no corporate tax, and as long as multinationals use the rules at their disposal to use Bermuda to legally reduce their tax bills in other places – while paying NO TAX to Bermuda – we will continue to be labelled a tax haven. We will not change how people look at us, unless we are willing to change how we operate.
“So Mr. Speaker, we either wear that badge with pride, or we need to break the cycle.” ..MP BURT
Be careful not to twist what one writes or says. Read and analyze carefully. It is common for your Premier to often overlook reading carefully or spin information to serve his own personal agenda, but he must begin to watch himself..he is falling on his sword now..
“Thus, no matter the volume of our vociferous protestations, as long as we continue to have no corporate tax, and as long as multinationals use the rules at their disposal to use Bermuda to legally reduce their tax bills in other places – while paying NO TAX to Bermuda – we will continue to be labelled a tax haven. We will not change how people look at us, unless we are willing to change how we operate.”
Seems to me like he is saying that we need to implement a corporate income tax.
That is just it….”Seems like it”…(Seems like it imply but does not outright say something is.) Be careful not to read what you want it to say, just because that is how you want it. Your sounding like the Premier now…
The reality is Bermuda must be honest and face the fact that if we charge NO TAXES, them we are seem by the world as a TAX HAVEN. That is the just FACTS. The USA is still working hard to address this issue, so we must be alert to this matter.
“So Mr. Speaker, we either wear that badge with pride, or we need to break the cycle.” ..MP BURT….something for Bermuda to consider.
You’ve got to be pretty slow not to interpret that statement to be pro corporate income tax.
But don’t ignore this paragraph on that page:
“An Island with incredible wealth yet unable to pay its bills; too afraid to ask its international business partners for more – out of fear they may find new shores to exploit; unable to approach Google to say, “what about us?” because we are wedded to a tax system from the 1800s. Rather than tap into the incredible wealth surrounding us …”
It’s almost like he wants to forget that he was part of the PLP government that extended the tax-exempt guarantee by 25 years.
His PLP government made a decision and tied the hands of its successors.
Looks like he now disagrees with that decision, which he was at the time a part of. He believes it was another mistake made by the PLP, presumably.
I see not direct Quotation from Mr Burt that implies Bermuda MUST have Corporate Income Tax. What he does seem to suggest that if we do not want to wear the title of a TAX haven, we must in the future consider the idea of possible income tax. As present we are seem by many as a tax haven, with out some form of tax. Folks please read carefully and stop twisting words around.
I’m not twisting anything. He was part of the PLP government that extended the tax exemption by 25 years. And he is now whining that tax-exempt corporations don’t pay tax. Perhaps he is confused about what he did when he was part of the PLP government.
Thank you “page 26″ because there is no other way to interpret it…But of course we know if people are told the same lies over and over they eventually come to accept the lies as being truths and thats the problem with the Progressive Labour Party it’s their tactics of gaining the vast majorities support
Look how he could have a response to this. BUT EVERYTHING else, he has nothing to say…. this man is a fraud
Yup – Exactly. Won’t answer questions on anything else!
all the Dislikers are the ones that dislike the truth when it is in their face!
a lot of you talked the same sh====t in 1998
thanks to the plp people no longer have to pay the government inheritance tax on ones homestead.and no land tax after 65.
@ Frank
no land tax after 65 was in place long before 1998. Look at the reason why the homestead exemption was put in place, the average family was land rich and money poor which resulted in the homestead being sold to settle Government’s inheritance tax.
Is this a response to a response? Only in Bermuda. Stop wasting time and do something!
Exactly, I can’t imagine that we actually paid someone to write this.
My cousin lost her job last week at a Big Insurer. Stop worrying about the PLP and do your Job or you won’t have one soon!
care to post the reason they gave your cousin?
Probably talking about Catlin who outsourced an entire department to Poland.
Extremely well said Premier.
Whoever writes Craig’s speeches LOVES being overlydramatic.
Mr. Premier – stop the scare mongering. Positives can be taken from both the OBA budget and the PLP response!!
Since when was the budget attributed to MP Marc Bean? It is either attributed to Shadow Minister Burt or the PLP.
Set up a RAGE committee as recommended by SAGE and the PLP.
Craig Simmons, who was quoted by both parties in the HOA has also called for more spending at this time to make sure we do not jeopardize the recovery.
Do you know that the OBA budget calls for borrowing $215m before March 31, 2017!!!
The premier clearly has a problem counting . He has defined 2(two)second reasons for discounting the PLPs proposals , ohh ,I guess that’s what happens when he attempts to write his own press statements . Fail …
He cited two reasons the PLP’s reply is dangerous, and then two reasons it’s irresponsible.
So… None of you are going to address the content?
I wonder why…
Likely because there is not content worth addressing. Its just over the top drama that does nothing to help those of us who see their families losing work.
This statement is just political back and forth, and nothing is getting done!
Sure there is. There’s plenty of stuff in there that, if untrue or off-base, would be pretty damning.
But no one seems to want to do that,
Is he wrong to say that income tax is a bad idea?
Is he wrong to point out the things he did? If so, how?
Like you ever addresss content, anyway it does look like Cannonier wrote this one himself, and actually lacks content. Can anyone in the OBA make a statement without bashing the PLP? While it is fair to blame the PLP for the PLP’s mistakes, when will the OBA take responsibility for it’s own mistakes. The OBA’s job is to govern the island, but they are acting like they are still the opposition.
A. I know you want that to be true, but it’a not. Nice attempt. try honesty next time.
B. again, there IS content there. You just don’t seem to want to address it.
Is what he’s saying wrong? If so, why?
The OBA’s philosophy is “if business asks for it, we must give it to them”. So, let’s take the supermarkets for example. With the closure of White’s, the market share for the remaining two main chains of supermarkets has grown considerably. Do you really expect us to believe that they need the payroll tax exemption/relief to stay afloat?! I think not. But yet, no economic analysis along these lines is permitted because to make them pay their taxes like I have to is “anti-business”. Wrong, it’s fair. There are sectors of this economy benefitting from tax concessions that no longer need them. It is the worst kind of politics to tell people that taxes are for them and to for those who can afford to pay them. So God forbid that all these companies who declared their 2013 profits in the billions and millions be made to be a little more, reflective of what they get out of using Bermuda to reduce their tax liability. While they declare 2013 as their best year ever, my government is scratching where it can’t itch to find money for services and salaries. So we’re just supposed to be grateful for their crumbs while we embrace the OBA’s message of austerity.”Trickle down” economics takes years to benefit those on the wrong end of the trickle Premier.
And anyway, shouldn’t you be rehearsing for tomorrow right now, not attacking a plan that’s three years away from implementation. Unless of course you don’t think you can last that long and Grearson has ordered you to start campaigning already. Advice: you need a better explanation for your travel than “I spent less than you guys”. 17 trips is 17 trips; it’s the principle, or so your supporters told us before the election; or has that changed too? “My travel good, your travel bad.”
And there it is…
The “the Premier is a puppet” smear.
You guys are getting ridiculous.
Au contraire; at least a puppet does as he is bid by his master. You can’t tell me that the brains in the OBA outfit actually meant for JetGate to happen? And, by the way, will you ever address the content? Of course not.
I love it when people think throwing my words back at me is good debating.
What part of what he said would you like to discuss? I’d be more than happy to.
@Surely you jest, News flash!!! You do realize that 4000 + people have left this island don’t you??? That was one of the reasons Whites went out of business!! So by you saying the other grocery stores are now enjoying a bigger market share is just plain outright nonsense!! And we wonder why the plp were allowed to do the carnage they did too our finances without being questioned by their own supporters?? ” surely you jest” type of thinking is one of the many reasons for sure!!!!!
What a wonderful world in which you live. It’s one where certain businesses fail because of factors purely external to their poor management. It’s a world where Bermudians don’t eat and only grow their food, not shop at the three remaining main players on the supermarket stage. The 4000 people leaving mean that those supermarkets are making a million less profit annually. NOT that they are making a loss or in danger of going out of business. In the real world, ebbs and flows in business are normal and reduced profits are a part of the rough and tumble of business. Only in Bermuda do you and your ilk believe that the world must be made safe for your profits to continue uninterrupted. Your thinking is that 60/40 thinking that even your Minister of Finance now accepts has outlived its usefulness even to the “old oligarchy”. When my people want a job and food you call it “entitlement syndrome”. What’s it called when you think you have a right to unbridled and insulated profits? I have a name for it……but I know you don’t like it….
You couldn’t be more wrong my friend!!! I have stated many times the 60/40 thing needs to be gotten rid of!! You being a plp supporter actually surprises me that you think so as well?? I can assure you, that you are a minority in the plp support base! Secondly, you are again wrong about what I think of ebbs and flows, while I agree that all economy’s go up and down, what you fail to understand is the fact that the plp created a low that we have never seen before!!! They did this by exactly at the wrong time they made the IB sector feel un welcomed and then further rubbed salt in the wound by raising the payroll tax on them!!! This lead to the mass exodus and now all we have to show for it, is way too many Bermudians un employed all over!!! And in fact the really sad part is the fact that the majority of who is suffering the worst is the plp supporters, and they still can’t face the truth!!!,
And lastly if you are not an owner of one of the last big three, I suggest you not comment on their financial situation!!!
I’m getting tired of this back and forth stuff. Very childish.
Betty must be sleep but I bet tomorrow morning she’ll have write long post that no one reads. Well I never read.
I am busy flying “FIRST CLASS”..but this does valid one thing that I been saying for weeks now: THE UBPoba have NO PLAN, NO IDEAS or NO SOLUTIONS TO DIVERSIFY OUR ECONOMY.
The UBPoba are still depending upon the ONE HORSE PONY OF IB, and the dying pony of Tourism to improve our economy. This will not work going forward. The UBPoba promised us Pre-election they had Ideas and solutions to address our economy moving forward, so far this has not been the CASE.
With the changing Global economy, and opportunities to do business in other countries, any business would look to do part of some of there business elsewhere. This is often just due to the Global changes in the Business world, and often has nothing to do with what Bermuda offers or does not offer. This is just the reality of the “Changing Business world today.” This is why I am flying so much now… opportunities do extend outside of Bermuda, that have nothing to do with Bermuda’s business model. everything today is Global,…tourism as well.
As MP Burt clearly outlines:
“Therein lies the problem; the OBA have no plan to diversify the economy, and continue to rely on an outdated international business model which has been profoundly impacted by globalisation.
“Every month, Bermudians continue to see their jobs outsourced and, rather than face the facts, the out of touch Premier attacks the PLP for proposing alternatives while the OBA has none….
“Nowhere did the PLP call for corporate income tax, but that didn’t stop the Premier from inventing this fiction and shamefully peddling it to the people of Bermuda. -Bernews…MP BURT..WELL SAID
Keep working on behalf of the people of Bermuda MP BURT.
Thanks for looking forward to my daily comments. I see that often the UBPoba fans seek to read my comments. Some have even adopted a name similar to mines. I too growing tired of the lack of insight by the Premier to address the concerns of the people.
I will tell you I am disappointed with the Premier’s comments. I expected him to better promote the ideas of the UBPoba and PLP by suggesting two key things:
1. WAYS TO GROW AND DIVERSFIELD OUR ECONOMY
2. WAYS To CREATE JOBS FOR BERMUDIANS
That would have been a much wiser move by the Premier.
We do not need this type of dialogue coming from him, after all he has little creditability from the people of Bermuda in the first place.
Get on with READING the PLP’s reply to the budget and see what can be adopted to help meet the objective of growing and diversity our Economy. Stop with the NONSENSE.
Betty his call for corporate income tax is at the end of the fourth paragraph on page 26 under “Breaking the Cycle”.
Making things up much?
“Thus, no matter the volume of our vociferous protestations, as long as we continue to have no corporate tax, and as long as multinationals use the rules at their disposal to use Bermuda to legally reduce their tax bills in other places – while paying NO TAX to Bermuda – we will continue to be labelled a tax haven. We will not change how people look at us, unless we are willing to change how we operate.”
Not sure how else you would interpret that statement.
“Man needs to go outside himself to fine repose and reveal himself”-Jose’ Marti’(1853-1895)
Bermuda and its citizens are all facing precarious times presently as well in our future therefore we must depend on foreign investors to up-right the “S.S.Bermuda” otherwise, we’ll all sink
Question, is Bermuda the only place in the world that is facing precarious times?
I could have summed up the Premiers reply in two words to the plp!! ” VOODOO ECONOMICS “. The plp are clearly not ready to be trusted with our future!!!!
Why is the Premier speaking about the Budget? Shouldn’t that be Minister Richards remit? Is the Premier so insecure about his position that he is trying to get some publicity?
I have a recommendation for him. Cease and desist with the press statements and actually go on the Gary Moreno or Sherri Simmons show and face the people that elected him. If he isn’t willing to do that, then resign.
the WHO shows on Hate Radio.
So… He should stop doing things through the proper channels and start going on biased radio shows?
That makes sense.
The people that listen to Sherri Simmons didn’t elect the OBA. People that listen to Gina Spence and Everett Da Costa elected the OBA.
and he won’t go on their shows either!
Regardless, you seem to be claiming that the people who listen to those shows are the people that elected him.
I’m pretty sure that’s wrong. Like… completely wrong.
yawn. same s*** different day
Any type of gaming create opportunities for money laundering. What’s going to stop someone going to a casino with $1K, $5K or $10K in “dirty money”, getting chips and then turning those same chips in for “clean money? at the end of the night?
Regardless of what you implement, you need safe guards, regulation, and control, the casino and online gaming industries can work to bring in revenue.
Why would the Gary Moreno or Sherri Simmons talk show save the premier? It did not help Paula Cox to be re-elected to her constituency thereby losing her position as leader of the Party and Premier of Bermuda. How would it save the current premier?
Whereas it is very odd that the premier is speaking on the budget when he has a very abled and qualified minister who can do so, maybe he does need more visibility and to improve his ratings. But he is beyond having an image problem, his credibility is on the line, and people want to know if this novice politician is the right person in this key position.
It’s not about the diehard PLP loyalists, the ‘undecided’ have the ability to rock this political boat. A premier who does not have the confidence of the people, cannot rule effectively.
London, England
“This Mr. Speaker is the vicious cycle in which we are stuck. An Island with incredible wealth yet unable to pay its bills; too afraid to ask its international business partners for more – out of fear they may find
new shores to exploit; unable to approach Google to say, “what about us?” because we are wedded to a tax system from the 1800s. Rather than tap into the incredible wealth surrounding us, we reduce the investments in education, scholarships, training, and healthcare that are needed to build our future and take care of our people.”
- pg. 26 Reply to the Budget
“FOR MORE”; “TAP INTO” that is Opposition speak for TAXES. If it walks like a duck and quacks like a duck…..well
Aren’t you one of the three openly remaining members of the UBP ? Why are you even in this debate?
Are you actually implying that a fellow citizen shouldn’t be involved in a conversation based on their political affiliation?
That’s low.
Not even remotely. It was a joke based on his public stance. Satire to bring a smile in the midst of all this rancour.
Can you explain the joke, ‘cuz I’m not seeing it.
Please understand that I have studied comedy and satire as part of my job, so I have a little bit of knowledge of the subject… hence my confusion.
Where’s the joke? Where is the satire?
Is it because he’s one of only three people in a party that means he shouldn’t voice his opinion? Or is it because of the UBP’s history.
I’m just trying to understand where the satire is in your post.
The question of taxes but more importantly the long over due question of tax reform has always been the elephant in the room as far as Bermuda’s fiscal matters are concern. Yes the former PLP government did give certain
businesses tax breaks in an effort to save Bermudian jobs and to help them to remain open. Whites supermarket bit off more than they could chew when they attempted to operate a supermarket down at South Side; had nothing to do with a declining foreign work force. I know because I witness the decline having worked in the area and shopped in the supermarket almost every day. The signs were there a declining stock base is a sure sign that they were not paying their creditors. However for the other supermarkets how long do they expect to enjoy a tax break?
One thing that I have always said Bermudians complain about the high cost of food; but that does not stop them from filling their shopping cards to the brim;especially just before a holiday. Yes a few main supermarkets give a 10% discount mid-week; but look at the concessions they were able to get. Able to sell liquor on Sundays; open all day on Sundays. It’s not been said but like many things with this government; secret deals being agreed and the people only know when it is done.
Now they have been given these tax breaks and they are going to be very reluctant to give them up;even though you are not going to have me believe that they are under financial stress Bermudians still spend their monies in the supermarkets even at the hight of this recession. So that give credence to the call by the shadow finance minister that some of those tax breaks should be called back; especially when the government is cutting back and requiring government workers to take wage cut backs and now threatening to raise insurance premiums which will have severe economic impact on fixed income seniors and the raising of the cost of government insurance programs generally. No amount of public profiling by a unpopular premier attempting to raise his standing in the eyes of Bermudians is going to obscure the consequences of his OBA government polices on the people of Bermuda.