PLP Chairperson: The OBA Plans ‘Are Shocking’

[Updated] The “OBA committed to increasing costs on Bermudians by proposing the reintroduction of TA Fees” and “they also shockingly proposed a new tax on healthcare services which would increase the cost of healthcare,” PLP Chair Dawn Simmons said.

This follows after the OBA released their Reply to the Budget which stated they would “reintroduce the travel authorization fees which can be imbedded in ticket costs or collected on arrival in Bermuda [Supported by IB] ” and “examine the possibility of introducing a minimal VAT tax on health care services.” The OBA also stated, “Our small population of under 65,000 people are burdened with a debt of $3.142 billion dollars, and an annual interest expense $130 million dollars, which are both unsustainable.”

PLP Chair Dawn Simmons said, “Today our Party Leader, the Honourable Premier E. David Burt, JP, MP, opened the General Economic Debate in the House of Assembly.

“Before he opened that debate, the PLP Government announced the return of year-round air service from Boston, the start of the LED bulb distribution which will save consumers $7 million in electricity costs, and an upgraded CCTV system in Bermuda that will be delivered this year.

“Sadly, today the OBA proved why they cannot be trusted with Bermuda’s Finances again. After their failed Morgan’s Point Project and unwise airport privatisation which have cost the taxpayers more that $250 million in the last 3 years, the OBA have revealed their plans if returned to Government – and they are shocking.

“In the House of Assembly the OBA committed to increasing costs on Bermudians by proposing the reintroduction of TA Fees! If that pledge wasn’t bad enough they also shockingly proposed a new tax on healthcare services which would increase the cost of healthcare in Bermuda!

“The PLP Government has provided relief to working Bermudians during the pandemic and after by reducing taxes on working families, providing payroll tax rebates, reducing car licensing fees, support to parents for school expenses, elimination of duty for staple goods, and a freeze in gasoline prices.

“This year’s budget reduces taxes for 86% of Bermuda’s workers and 86% businesses in Bermuda. Small businesses will see their taxes fall by up to 43% while every worker in Bermuda making less than $132,000 a year will pay less in payroll taxes next year.

“The PLP’s Budget invests in public education, more health clinics in Bermuda, funds for infrastructure to pave more roads, and critical support for parents of young children with increased support for childcare.

“The members of the Bermuda Progressive Labour Party are proud to support the PLP Government’s Budget that supports the workers and small businesses of Bermuda, and outlines Bermuda’s Path to Continued Economic Growth.”

The relevant extract from the OBA’s Budget reply is below:

How would the One Bermuda Alliance turn this economy around? Glad you asked Mr. Speaker, The One Bermuda Alliance would implement the following:

• Develop a glide path to balance its budget within three years and reduce the reoccurring current account deficit and ultimately our current national debt level.

• Reduce the size of the government through offering early retirement and through attrition, as the human resource cost is approximately 40 plus percent of the current account expenditures.

• Apply more diligence and provide better management to recover the millions of dollars owed to the Government in accounts receivables with assistance previously offered by our IB sector.

• Expand Bermuda’s workforce by relaxing immigration policies so that it is easier for job creators, executives, entrepreneurs, and high net worth individuals to migrate to Bermuda and thereby create jobs.

• Reintroduce the travel authorization fees which can be imbedded in ticket costs or collected on arrival in Bermuda. (Supported by IB)

• Examine the possibility of introducing a minimal VAT tax on health care services.

• During these challenging times and the high cost of living, we would suspend Bermuda’s Foreign Currency Purchase Tax (FCPT). The problem with this tax is that it increases the cost of all the goods and services that Bermuda imports from abroad, it is excessively regressive, and it has a multiplier effect which means that the relatively small revenue it produces for Government might lead the average person to think that its impact is small.

• As an example, if we consider the cost of BELCO’s fuel is increased by the amount of the FCPT and that means that the cost of electricity is increased not just by the amount of the FCPT but also by the multiple of BELCO’s profit margin. The same applies to our Supermarkets and a reduction of our food costs.

• We would reinstate an Economic Development committee or council, made up of Global C Suite CEO’s from IB, the Government, and other stakeholders. The mandate would be to develop a true economic recovery plan which will benefit Bermuda economy and Bermuda’s corporate citizens, be they local or international.

• We would provide added resources to the Bermuda College and the Workforce Development team, to train and retool our students and employees for any newly created jobs in the private and public sector.

• Reassess sin taxes on cigarettes, and spirits.

• Provide resources to the agricultural and the fisheries industries to entice job creation and help food security.

• In accordance with the reports and recommendations produced by the Fiscal Responsibility Panel and the Tax Reform Commission, and with feedback from the public and the International business sector, the One Bermuda Alliance would also examine, define, and implement the most equitable, fair, efficient and transparent tax system, to serve the needs and people of Bermuda today and into the future, and not a structure which was crafted to serve the needs of Bermuda’s past and its legacy.

• We would also consider the G20/OECD Global Tax Initiative which addresses domestic tax base erosion, and profit shifting to multinational enterprises to end tax avoidance; and

• To make commercial and residential construction cost more affordable, immediate attention would be given to updating Bermuda’s 2014 Residential Building Code Book which is a couple of cycles overdue. In addition, the same should apply to Bermuda’s Commercial Building Code to ensure that it adheres to the International Building Code standards and protocols. These reviews should not only be reviewed by the Architectural Board, but also by a newly formed Electrical Engineering Board who represent the electrical engineering sector.

Update 8.30pm: MP Michael Dunkley said, “Yet again, the Government is attempting to cause a distraction but focusing on what “the OBA said”. To be clear, the One Bermuda Alliance, for an extended period of time called for Government to do away with the Travel Authorisation. The TA was causing angst for both visitors, business and residents alike, and was undoubtedly seen as a deterrent to guests and businesspeople visiting the island.

“The Government refused despite repetitive calls to eliminate it.

“While it appears the processing of the TA was a bigger deterrent than its cost, last year I mentioned this to Premier Burt. If Government is insistent on raising revenue via the TA, it just makes sense to embed it into ticket prices as suggested by IB.

“That would be a government decision.

“Finally, my record on this and any issue can be researched and it would be wise for the PLP not to float a red balloon to distract from the fact that many Bermudians are struggling or have left the island. We should all focus on improving the lives of the struggling Bermudians we serve.”

#BermudaPolitics

Category: All, News, Politics