Chamber Of Commerce On Throne Speech
“We believe it would be more beneficial for the economy and society overall if the Government focused on strengthening its existing responsibilities before extending its reach into further areas of the private sector,” the Chamber of Commerce said following today’s Throne Speech.
A spokesperson said, “It was positive to see a couple of points that the Chamber of Commerce raised ahead of the Throne Speech, specifically around housing and landlord tenant act, as housing is and will continue to be a key challenge in achieving the long term economic goals of business and the island.
“However, we believe it would be more beneficial for the economy and society overall if the Government focused on strengthening its existing responsibilities before extending its reach into further areas of the private sector. Below are specific points of consideration based on the Throne Speech that was announced earlier today:
1. Mergers, Acquisitions, and Market Competition
“We recommend caution regarding local mergers, acquisitions, and potential price and fee measures in financial services, as unintended consequences may arise if consultations fail to take into account comprehensive perspectives. Restrictions that limit business owners’ options can deter local investment, especially as seasoned businesses face succession planning and cost management. Legislation should aim to support and encourage local investment rather than hinder it, recognizing that capital remains fluid and can shift quickly if business owners consider the risk vs return metrics not aligning.
2. Bermuda Tourism Authority [BTA] Funding
“On the plans to move BTA to a self funded model, the Government grants currently contribute two-thirds of the BTA’s revenue in 2022 [compared to 55% pre-COVID], clarity is needed on how to realistically bridge this funding gap. What specific outputs and service levels are expected as part of the BTA’s strategic plan, given the importance of tourism and tourism marketing with Southampton Princess potentially coming on line in 18 months.
3. Housing and Real Estate Development
“While there is support for affordable housing initiatives, we question the City of Hamilton’s viability for such developments, given high land costs and limited potential for commercial returns. Higher residential density is welcomed and whilst the Government has committed $50 million for residential projects in Hamilton, to date, none of this funding has been utilized. Whilst the Chamber is supportive of the change of purpose to address the sufficient housing challenge, the track record over the past 15 years on this project is also a statement of the risks of Government direct investment in real estate, and should objectively review Governments role in future real estate projects.
4. Corporate Income Tax and Debt Repayment
“Projections for debt repayment over the next decade should be managed cautiously, especially with evolving global tax standards, such as a potential 15% tax rate in the U.S. It is premature to set lofty expectations without publicly detailing the forecast methodology or collecting the first dollar of Corporate Income Tax. We anticipate the Tax Reform Commission’s findings to shed light on these impacts and look forward to the planning on how the tax base will develop.
5. Comprehensive Immigration Reform
“Efforts to expand the resident population require a stable and clear immigration framework to be successful, which piecemeal reforms will not achieve and can cause confusion on the overall objective of building the residential population.
6. Over-Regulation and Economic Management
“We are concerned about the potential over-regulation in sectors such as food, where competition is already robust. Additionally, telecom fees and the Regulatory Authority [RA] framework require significant reform. Government should ensure its role in the economy is one that creates a strong eco-system that supports positive growth and benefits to the wider residents, however, its role is not to micromanage the economy. Regressive or knee-jerk policies tend to lack positive long-term results and risk missing the mark on core issues, such as immigration reform, education, senior care, and pensions.
7. Focus on Core Responsibilities
“We urge the Government to prioritize addressing critical internal issues—staffing at the Department of Planning and Land Title Registry Office, immigration processes, educational reform, statistical timeliness, debt management, and underfunded entitlement programs. Tackling these fundamental areas would lay a stronger foundation for economic progress, benefitting all sectors of society. Until these critical issues are addressed, further interventions in the private sector risk distraction and resource dilution. We should ensure that the internal gears of Government are working well before Corporate Income Tax is received, otherwise there are risks of an inefficient use of these tax proceeds in the future, providing diminishing returns.
In Summary
“While we acknowledge the Government’s work to the various challenges that are faced, both structural and economic, we recommend that they focus on resolving these foundational issues first. Ensuring the success of public education, immigration reform, healthcare, planning, statistical data accuracy, and debt management are vast and essential projects. Once progress is made in these areas, any adjustments to the economy would be better informed and more sustainable for all stakeholders. The Chamber remains keen to work with the Government to address these challenges and ensure that the Chambers membership, along with wider stakeholders, continue to support positive progress with the Bermuda ecosystem.”
Read More About
Category: All, Business, News, Politics
