MP Burt: Diversification Must Be The Priority

September 5, 2014

“The news that the Bermuda Economy contracted by 2.5% in 2013 is a sobering reminder of the pressing need for concrete action on economic diversification in Bermuda,” said Shadow Minister of Finance David Burt, who suggested measures including online gaming, alternative energy investments, blue economy and “freeing up local industry from unnecessary regulation.”

A report released yesterday [Sept 4] by the Department of Statistics indicated that last year, Gross Domestic Product, which measures the total value of goods and services produced in Bermuda, edged up 0.7%, however when adjusted for inflation, the growth in economic activity declined 2.5%.

Mr. Burt said, “The news that the Bermuda Economy contracted by 2.5% in 2013 is a sobering reminder of the pressing need for concrete action on economic diversification in Bermuda. In the face of the job losses, company closures, and wage reductions that have continued through 2014, Bermuda cannot afford for the OBA to be stubborn and stick to the UBP playbook from 1980-1998.

“The OBA’s singular focus on mature industries and lack of attention to diversification and new industries will not produce the growth the Bermuda requires. The OBA must know that the model for insurance companies, which fuelled our economic growth before the Great Recession, has changed. We will not build a growing economy for the future solely with ideas from the last century; we must diversify to bring new industries, new physical presence companies, and new jobs to Bermuda.

“This is why the PLP have called for immediate action on online gaming; immediate action on alternative energy investments; immediate action on promoting the blue economy; immediate action on freeing up local industry from unnecessary regulation, which is stifling the creativity of our entrepreneurs; and the establishment of a Bermuda Fund to attract new job-creating industries to our shores. These ideas will assist Bermuda and Bermudians by diversifying the economy, creating new jobs, and growing GDP.”

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  1. Triangle Drifter says:

    My my my, the PLP are just full of ideas these days arn’t they. They have no plans on how to make any of these ideas happen but it sure sounds good to the easily led.

    When does silly season end?

    • Yahoo says:

      It ends when we die.

      • Black Soil says:

        What’s all this crap ” unnecessary regulation, which is stifling the creativity of our entrepreneurs;” Sound like one big EXCUSE to sit on the wall. Or do his mates want to open a gaming or insurance business without all that regulation. Please tell me what SPECIFIC types of business is he talking about??

        • Black Soil says:

          NEWS FLASH. There already IS online gaming. I go online and bet all the time. This is one of the reasons WHY Bermuda needs to develop a proper gaming framework (which the OBA is doing) set up to help “bring home” those funds leaving Bermuda already. Mr. Burt, are you that oblivious to the facts??? What you need to do is concentrate on doing the public accounts meetings which you have failed to do since you don’t want to look at how terrible the PLP crippled the economy. Or I suppose you have another reason why you have been derelict in your duty? Maybe you don’t know how to do things…so ask Bob since he’s done the job a few times and should be able to give you some pointers. SMDH.

  2. Hmmm says:

    Thank you Burt for your repeating of buzz words. Empty gestures to make your name appear in lights. Pathetic

    Please show us what jobs would be created in Bermuda from the already wold establised on-line gambling and why they would remain in Bermuda.

    What jobs will be created from the Blue economy that aren’t already there.

    You talk of establishing a Bermuda fund to attract business offshore….

    You need money to do that. What government departments do you want to shut down…. Perhaps privatising will provide some funds…but you are against that too aren’t you? Although TCD emissions testing PLP privatized.

    Put some meat on them bones then go to the press. Stop pretending like you have a clue.

  3. Enough says:

    You had 14 years to bring gaming to the table and now all of a sudden you think it’s the answer to all our problems? Problems the PLP let fester and why we now find ourselves slowly having to creep out of the hole you put us in.

    Gaming isn’t the answer to solving our problems, that ship sailed a long time ago, on your watch.

  4. Onion says:

    Lots of buzzwords, no workable plan, and no read addition to the discussion. Typical PLP.

    The call for online gambling is a real howler since they’re obviously pushing that for the personal benefit of one of their members.

    Even out of power they’re still pushing the Friends and Family plan instead of prosperity for all Bermudians.

    • You mean ... says:

      You mean the benefit of the unnamed Premier that said he wasn’t bringing it to the house but simply sprang it on the MP’s the next day???

      Couldn’t be. After all ….

  5. Raymond Ray says:

    Don’t be offended Shadow Minister of Finance Mr. David Burt but, you at times seem as if you haven’t got enough sense to come in out of the rain unless you’re led by the hand.
    Have you overlooked the most important points? Yes, we don’t have monies to do all them grand things and furthermore, online gambling isn’t going to help everyone just a few like…well, guess who?

  6. Sandgrownan says:

    Lol..great recession..hahahaha….

  7. Trulytruly says:

    Thanks PLP for diversifying our economy so well during your time in power. – NOT. It’s any easy thing to say but hellishly difficult to achieve. If it was it would have happened. Bermuda was spoiled by Tourism then IB. we should count ourselves extremely fortunate for the opportunities those two pillars have provided over the past 60 years. To find other areas that will generate significant income will prove to be near impossible. That is why the govt are trying to improve IB as just a small percentage increase will translate into a lot more money flowing throughout the island. The jobs will come from a new airport and causeway and also a new hotel, to be announced in the next 6 – 9 months. After those are completed in 3 years the economy will hopefully be on the road to recovery spurred on by the US. Everyone now cross your fingers and toes.

    • LiarLiar says:

      Agreed.

      “OBA to be stubborn and stick to the UBP playbook from 1980-1998.”

      Strange he didn’t mention that the PLP adhered to the same playbook from 1998-2012.

      I think it is a pretty sound strategy to ensure that the industry that provides 85 cents of every dollar of Government revenue is stabilized before embarking on wild fantasies of a 21 square mile island being home to multiple economic pillars. If the OBA continued to ignore and attack the IB sector of our economy (as the PLP did) our finances and job prospects would be much worse.

      And where are the details around these proposals in terms of projections of tax revenue and employment? How long will it take to get sufficient infrastructure (i.e. legislation etc.) in place to accommodate these proposed industries? Then how long will it take to advertise Bermuda as a desirable destination for these industries to relocate? In the meantime do we simply ignore the one industry that is keeping Bermuda afloat?

      Does the PLP acknowledge that their proposals are capital intensive industries that will require millions of dollars of investments that will more than likely have to be procured via foreign investors? Thought that such actions were akin to ‘selling our Bermuda’ and similar to ‘open legism?’

      Do the PLP acknowledge that online gaming is associated with major money laundering concerns (i.e. hence why most of our trading partners forbid it and banks won’t do business with them) that will assist in feeding into the BDA is a tax haven mentality?

      What is a Bermuda Fund and how will it be funded? Can’t be from the Government coffers because Burt knows full well those are empty thanks primarily to his colleagues.

      Great buzzwords but no details offered by the PLP. Until then they are simply a pie in the sky wish list.

  8. serengeti says:

    When he talks about freeing up small businesses from ‘unnecessary regulation’, I imagine he’s talking about the pesky regulations that someone would have to follow if, for example, they set up a website selling repackaged counterfeit rum swizzle.

  9. PooPoo says:

    IB is still 25% of GDP as it has been for years and years and throughout the PLP administration. It’s a mature industry, yes, that should continue to be a focus as it pays our bills. The contribution increased since 2012 and parts of IB are indeed growing, contrary to Mr. Burt’s comments.

    At least the bleeding has stopped.

  10. jt says:

    For a second I thought he meant diversifying our work force by welcoming foreign workers.

  11. TGAOTU says:

    Diversify by legalizing cannabis for medical and recreational and you will GUARANTEED bring MILLIONS of dollars into our island every year without fail, not to mention have a much healthier and cancer free poplace, reduction of alcohol abuse and drunk driving, and overall more happy people who are not being unfairly repressed by nonsensical laws.

    • hmmm says:

      $Millions, when we would alienate $Billions.

      • sonso says:

        Theres no reason why marijuana cant be legal while catering to the real money movers!

    • jt says:

      Cancer free? Disgraceful statement. I support legalization, but every time I see ridiculous claims aimed at swaying public sentiment it makes me second guess myself.
      Facts only please.

  12. We Are Not Amused! says:

    Burt,like the rest of the plp hasn’t got a clue…give up and go home!

  13. watching says:

    Funny how the comments are largely attacking Mr Burt and reflecting on the PLP’s time in power. But why can’t people focus on now and what can be or needs to be done now?

    • Onion says:

      Because the OBA are focused in what to do now and this is an article by the PLP. Apparently the best the PLP have got is empty buzzwords, self-promotion, and continual denial about Bermuda’s real problems.

      For the PLP to push for what Bermuda’s economy needs would mean admitting that their policies failed and abandoning them. That will never happen.

    • Cleancut says:

      Tell that to the PLP. They live in the past.

    • sonso says:

      Such as? I didnt read any ideas in his “speech”.

  14. campervan says:

    More fluff from the party that chased away core business to our competitors.
    laughable.

  15. Terry says:

    Operation Pressure Cooker is working well.
    Distract and deception.
    And to think I am going to Woods Hole Mass. next week on a sail trip to Martha’s.

  16. pebblebeach says:

    Huh Burt…Really…

  17. aceboy says:

    Bermudians must be put to work swiftly. To get Bermudians working again we propose the development of a Blue Economy, inclusive of Sea-Bed mining, Aquaculture, and Off-Shore Fishing. This will lead to the creation of new job opportunities, the diversification of our economy, and the creation of new revenue streams.” Opposition Leader Marc Bean 2013

    Sound familiar?

    My 10 year old daughter could come up with a list like that, but just like Bean and Burt, she has no idea how to put the ideas into practice.

  18. Jeremy Deacon says:

    I do remember the PLP talking about the blue economy when they were in power and I think they extended the EEZs, but apart from that I cannot think what else they did to encourage small businesses and diversification.
    I run my own small business and I am affected by all the laws that the PLP put in place…..
    It is so easy to be wise after the event ….

  19. Cow Polly says:

    “Attracting new job-creating industries to our shores” won’t that also attract those foreigners that your party keeps insisting will ruin Bermuda and take Bermuda away from Bermudians? So which is it? Do you want the foreign investment or don’t you?

    • hmmm says:

      I can’t see him giving you a decent response.

    • Gotham says:

      …but PLP kinda foreigners only come for six years and really do not want to make any extra money, nor pledge their future to anything concrete, no they just come here because the folks here are just so wonderful. Now, about that bridge I have for sale in St. David’s, just a little bit of two by four and she’ll be a great deal…

    • Yup yup says:

      Just send the money in a large briefcase…

  20. 2,000 JOBS for the "Locals" says:

    Diversification of what exactly?

    When the PLP and MP Burt take back the Government as instructed to do recently we look forward to Diversification and 4,000 jobs heck, make it 8,000 jobs so we can bring in some more PRCs

    • LOL (Original TM*) says:

      Must be done in their first year anything less is to lower our standard turn around time ehhh PLP……………

      LOL

  21. Rasta says:

    The PLP let in thousands of foreign construction workers.Some worked for PLP connected members companies.Now there is no work for us Bermudians in the construction sector.Thanks PLP for putting us masons,carpenters,electricians and plumbers out of work!

  22. bdaboy says:

    “Diversification of what exactly?”

    Lillies AND onions

  23. Gotham says:

    We are officially no longer in Recession; No-Siree Doc, Thanks to you and your PLP party’s continued wanton destruction of anything into which you cannot get your sleazy paws, that would be any sort of legitimate business, it is now a DEPRESSION – in every sense of the word.

  24. Chris Famous says:

    The second route is a lot better. It involves learning how to compete again. Investments should be made
    in adequate infrastructure, (think world class technology and telecommunications), and 21st century
    education and research, as opposed to 20th century education.
    Public policy should focus on encouraging innovation, higher education and national cost
    competitiveness. New industries should be encouraged to promote more diversification in the economy

    Nathan Kowalski is the chief financial officer at Anchor Investment Management. He holds a
    Chartered Financial Analyst (CFA) designation and Chartered Accountant (CA) designation.

    So How is it when this gentleman say the exact same thing ” Diversification” there is no negative outcry?

    • 32n64w says:

      Because he’s not a heavily biased politician trying to score points for the purpose of returning the PLP to government so they can begin handing out no bid contracts to party insiders or spending $4m on a Beyoncé vanity weekend, money that could and should have been spent rebuilding our education system and improving infrastructure.

      But why let pesky things like facts and recent history get in the way, eh? Better we just forget the PLP’s last 8 years in Government and the crippling $2,000,000,000 of debt that has mortgaged our children and grandchildren’s futures.

      • Chris Famous says:

        Ah but the critics are being negative to the concept of diversification..

        So if Person A says lets do it no complaints
        then person B says same thing plenty of complaints

        Sorta exposes the complainers as hypocrites of the highest order.

        • Onion says:

          Suggesting empty, impractical, and self-serving buzzwords is not diversification. It is in fact the worst kind of empty political rhetoric.

          You should be angry at your party for being this vapid.

        • aceboy says:

          Nathan’s vision for diversification is related to finance and financial matters. Things like ILS – Insurance Linked Securities, in which Bermuda is now a world leader.

          The PLP’s vision is dreamland stuff. A list of buzzwords.

          You mention infrastructure. This island’s infrastructure was crumbling after 14 years of mismanagement.

          Education? We got a really late and really expensive school which was filled with the same problems the old school had. Admittedly the UBP were responsible for the boneheaded move to mega schools, but the PLP did NOTHING to fix that. Nothing.

        • Anbu says:

          Yes chris as uaual ur right as rain. Lmao king of deflection you are. U seem to know it all so as u are a staunch opposition supporter. Wheres the money the plp pissed away?

        • jt says:

          Burt contradicts himself. The ideas he proposes, if even feasable, are years from producing jobs for Bermudians. Online gaming might produce revenue, but few jobs. Yet he states jobs must be created immediately (he’s got that right).
          The best route to creating jobs quickly is to reinflate the tires of our core industries.

    • Gotham says:

      Because Mr. Kowalski has never practiced nor advocated PLP style Crony Capitalism – would like me to list a few of the most outrageous instances? I would be remiss not to add that unlike the PLP leadership, nor does Mr. Kowalski practice Sectarianism.

    • CommonSensenBda says:

      Chris, can you outline who the MONEY to “diversify” the economy is supposed to come from? Oh, and it can’t involve BORROWING IT!

  25. Creamy says:

    Has Burt ever run a successful business?

    • Jack straw says:

      Wtf does that have to do with anything? Lol

      • Heavens says:

        Well, Jack, would you rather take business advice from Bill Gates or Bernie Madoff?

        • Jack straw says:

          None of the above. Mr.Gates is dead.And Madoff is in jail.But luckily for me I have a father that I can turn to for advice. Thanks for asking.

      • Creamy says:

        It means why should we take business advice from someone who has no actual experience of ever running a business?
        I remember swizzlegate of course. Surely he’s done something else in his adult life? Any successful businesses?

        • Bermudian says:

          Doesn’t mean he can’t run a successful business.

          • Creamy says:

            But has he ever done it? I guess not. Other than swizzlegate.

  26. JUNK YARD DOG says:

    If and when i get elected of minister of “Great Expectations”

    I am going book a fun trip around Pangaea on a mega ship in search of the “Golden fleece” , with my staff of Butlers; Chauffeurs; Chefs; Porters; Bartenders; Waiters ; Chamber maids; Tour directors; Gombeys; Photographers ; Wine stewards; Wandering minstrels; Linguists and Bean counters.
    Who gets the Benjamin’s ?
    Hands up who thinks they need to go ?.

  27. Cookie Monster says:

    There is always PLP ideas like term limits! That great idea chased the guy that used to run our shipping register out of here. But don’t worry he got another job running Cayman’s shipping register!

  28. JUNK YARD DOG says:

    No body wins the Game of “Tug of War”.
    “Round and round she goes where she stops no body knows”

    Nobody is a winner here the lucky 7 is a zero.

    Is this country of ours in disarray ?

    If the country goes down we all go down, there are those competitors who would seek to destroy us.

    ” There is light at the end of the tunnel “.

    We all have to light the flame of success.

    There is no miracle here. I call it cooperation and a blending of all our respective skills and talents for a better Bermuda.

    Bermuda does not have oil wells and no industry to speak of we can not pull the bunny out of the hat or turn lead into gold and it is not going to rain money.

    Unless some bright spark invents the fountain of youth or some miracle potion to increase life expectancy to 123 years, basically we have nothing of any ground breaking consequence to offer, or do we !

    Let us take stock, what we do have to sell its Location Location location Bermuda is and ideally and central located on the planet to do Business, MARKETING BERMUDA.

    I have a hundred ideas to offer, do you ?

    We have Sunshine, beautiful scenery, sandy beaches
    there is one more gift that Bermuda has to offer it is our cordial talented people, some will work 84 hour weeks.

    Commerce is defined in to four main sections

    Buying.
    Selling.
    Work.
    Play.

    and one more we have earned the reputation for and are all good at ” Service with a smile “. They will come in the thousands to have a vacation of a lifetime.

    • sonso says:

      “There is no miracle here. I call it cooperation and a blending of all our respective skills and talents for a better Bermuda.”

      And that is the only way forward for us as a country to move forward!

  29. What product? The national stadium needs adequate housing for themes and events.Feasability cost projections compared to take in…you have to make a profit to be sustainable…when you put money out…you need a return.There was a young fellow would come here purchase a license,provide a venue and sell ticket to a show…well he walked away clean and tidy after buying booze providing food and entertainment…he walked away clean ninety thousand…….of all the things you spent money on you never made a dime….and you spent other peoples money….look if you really want to be govt again you have to do three things1. be representative of all colors1-1/2
    .Get rid of hateful nasty people within (no racists)2.legalise marrijuana for private use ,medical marijuana is the best way,as long as it is licensed and taxed it is quite good without those addictive powders they put innit now.3.control your spending ,spend on the maintenance we have to do and do it…no excuse…we have no excuse the causeway has a makeshift bridge right at the airport…first thing our wonderful and welcome guests see.

  30. Mr. Burt,try not to appear smug…..i have my candiss and you don’t have candiss just doesn’t bode well….you know what a bode is donchew?Hey you byes…tell dis bye what a bode is.

  31. X man says:

    Great IDEAS Mr Burt’
    but were is the MONEY going to come from.
    What you should have come up with some Ideas on how were going to pay off the 3 Billion Dollar National Debt.
    so investors can have a little more trust in Bermuda.

  32. rickbda says:

    You cannot bring about prosperity by discouraging thrift. You cannot strengthen the weak by weakening the strong. You cannot help the wage earner by pulling down the wage payer. You cannot further the brotherhood of man by encouraging class hatred. You cannot help the poor by destroying the rich. You cannot keep out of trouble by spending more than you earn.

  33. Rasta says:

    The PLP put Bermudians out of work.

    • SMFH says:

      So your telling me the PLP was the reason for economic down turn which was world wide and started in America.. People stopped travelling all over the world.. People stop spending all over the world.. Jobs where being cut back all over the world.. But down here i guess BErmuda is not part of the rest of the world because PLP was in Power.. To bad you can’t see that like rest of the people that didn’t feel it.. once again you poeple make me laugh.. SFMH LMAO!!!

    • Jack straw says:

      Tell me anything ras. Lmao.go roll one.

    • Bermudian says:

      How the PLP put people out of work lol.. When economic downturn happened everyone world wide was losing there jobs lol.. The businesses here was even talking about the economic downturn.. Everything is different world wide cause of the economic downturn.. So the PLP caused the downturn Ras lol… You sound like the OBA and supporters that chooses to turn a blind eye to what happened in the world.. OH right they didn’t see it they didn’t loose their jobs, and have their pays cut.. It’s funny isn’t America in debt Billions of dollars yearly.. I have never seen under any Government where Bermuda hasn’t been clear of debt lol.. Country was debt when PLP took over.. Guess thing where a little cloudy LMAO!!!!

      • SMH says:

        Sigh. Unfortunately you don’t get what happened here and that’s exactly what the PLP want. The less people understand that their policies drove away over 5,000 expats including their dependents as well as the International companies that employed Bermudians the better for them. Now with the new Government, real estate has picked up, GDP has stopped dropping, record numbers of businesses are being incorporated. No wonder the PLP want you to believe their version. They’d much rather you believe that foreigners are taking your job. Remember the Filipino who allegedly got beat up by a Bermudian a few weeks ago? “You’re taking our jobs”. Ask the PLP who really caused Bermudians to loose their jobs!

  34. Keepin' it Real!...4Real! says:

    here’s a very easy to understand video of equality by means of your wealth… now you’ll know why you are where you are. https://www.youtube.com/watch?v=JTj9AcwkaKM

  35. Rasta says:

    The PLP put Bermudians out of work by allowing over 12000 work permits,mainly to blue collar workers.Now there is no construction and little opportunity for uneducated or less qualified to find work.
    That is where greed by the PLP and their friends did not care for us Bermudians!