OBA Senator & PLP On Pre-Budget Report
The Government’s Pre-Budget Report and the Fiscal Responsibility Panel report “provide a vivid contrast” as “the PLP document is Government’s political propaganda” and “the independent document shows our fiscal reality,” OBA Shadow Minister for Finance Senator Douglas De Couto said, while the PLP said they are “committed to reducing costs, creating opportunities, and ensuring fairness for all—not just the privileged few.”
Senator De Couto Statement
Senator De Couto said, “Premier David Burt’s recently released Pre-Budget Report and the independent Report released by the Fiscal Responsibility Panel provide a vivid contrast. The PLP document is Government’s political propaganda. The independent document shows our fiscal reality. Both provide important and extremely sobering insights into our Bermuda’s economy and financial performance.
“The PLP Government has used the release of its Pre-Budget Report to once again claim economic successes and prudent fiscal management. Yet a closer read of David Burt’s document, together with recent economic data and the FRP Report, reveals the Premier’s self-congratulatory statements to be misleading at best and false at worst.
“Government boasts that GDP increased from 2019 through 2023. But 90% of the increase is due to International Business [IB] and financial services. For our local economy [excluding IB & financial services], GDP has barely budged since 2019. And unfortunately that’s what the average Bermudian is feeling today in their pockets every day.
“There are other severely troubling indicators of a flat or shrinking local economy that Government is pretending not to notice: container volume is down -9.6% in the first six months of 2024 versus the same period in 2020, and youth enrollment at the Bermuda College was down -23% lower in 2023 than in 2020! Where have our Bermudian youth gone? Why are there fewer imports? We also know from Government reports that there are now fewer jobs on the island since before Covid. All those troubling indicators point to fewer people, fewer jobs, and less true on-island economic activity. Yet the current Government boast about being excellent stewards of our economy?
“Government boasts of increased tax revenue, but this uptick is driven by payroll taxes, which in turn will have been boosted by IB bonuses following a good year for the industry in 2023. All Bermudians will be glad to see IB’s success, because IB employs so many Bermudians, but this increased economic activitiy in the IB sector is not due to any initiatives from the current Government, and may not be repeated in the coming years. And the PLP’s proposed small tax cuts to everyone for mobile phone and vehicle registration fees are regressive gifts – that money could and should be spent in a more targeted way for those truly in need. This is just poor tax policy, a feel good gesture designed to soften up voters for the forthcoming election.
“The so-called surplus this year and ‘reduced deficits’ in prior years claimed by Government are strictly the results of financial shell games played by the Premier and Finance Minister using borrowed Sinking Fund money. David Burt plans to spend another $40 million from the sinking fund this year. It’s bad enough that he has failed to include this $40 million in the official budget. Worse the FRP Report reveals that $58 million was raided from the fund last year. This is $96 million in total that should have been used to repay debt! In the FRP’s own words, any so-called surpluses are ‘illusory’.
“Finally, the Government boldly announces that it plans to spend almost $150 million of CIT funds in 2025. But, CIT payments won’t be made until August of next year, and tax filings won’t be made until late 2026. That’s almost two years from now. How can the current Government promise to spend money when we won’t even know how much potential CIT revenue the Government may have to work with? This is plain irresponsible.
“Given all of the above, and the Government’s well-documented disregard for financial controls in projects like the no-bid ResQwest contract and the Bermudiana Beach Resort, Bermudians should think very carefully about who they want to manage their tax dollars, and ask themselves, ‘is the current Government properly looking out for me?’. It’s clear, the answer is no.”
PLP Statement
A spokesperson said, “Doug De Couto and the OBA will say anything to distract from the fact that they cannot match the progress the PLP has made for workers, families, and a fairer Bermuda.
“Our policies are delivering real relief to Bermudians and addressing the issues that matter most. We’ve reduced payroll taxes for 86% of workers and every local business, expanded childcare assistance to hundreds of families, increased pensions for seniors and reduced energy taxes by 60%. These actions aren’t just numbers on a page; they are real, tangible benefits making life easier for hardworking Bermudians.
“While De Couto and the OBA try to cherry-pick the FRP report, this Government will deliver Bermuda’s first budget surplus in 21 years. The PLP supports the Government’s decision to use the sinking fund to freeze health insurance premiums for the third consecutive year saving each person $540 annually.
“Next year the PLP will improve HIP & FutureCare to include one free primary care and specialist visit a year to ensure that co-pays do not prevent Bermudians from accessing the preventative or specialist care they need.
“The OBA doesn’t understand fairness because their policies have never been about helping everyday Bermudians. Their legacy is bad deals and neglect.
“The PLP’s pre-budget report lays out our plan to reduce taxes further to ensure all Bermudians can feel relief. Bermudians should take note that the person the OBA wants to be Minister of Finance doesn’t believe that we should reduce land taxes, vehicle licencing fees, mobile phone taxes, and customs duty. If that is really his view, then it is clear the OBA is just as out of touch today as they were when they proposed reintroducing the TA fee and taxing healthcare.
“Bermudians deserve leadership that looks out for them. The PLP is committed to reducing costs, creating opportunities, and ensuring fairness for all—not just the privileged few.”
PLP: this Government will deliver Bermuda’s first budget surplus in 21 years.
Fiscal Report: Only by shifting various expenditures off balance sheet, which they call regrettable, but it’s really false accounting.
PLP: “The OBA doesn’t understand fairness because their policies have never been about helping everyday Bermudians. Their legacy is bad deals and neglect.
Actual: Hard to know where to start, but what about TCD; Louis Browne Evans Building, Global Hue, Port Royal, Grand Atlantic.
Neglect? Just look around Bermuda.
“While De Couto and the OBA try to cherry-pick the FRP report, this Government will deliver Bermuda’s first budget surplus in 21 years. The PLP supports the Government’s decision to use the sinking fund to freeze health insurance premiums for the third consecutive year saving each person $540 annually”
What a COMPLETE and utter JOKE. You say in 21 years like that’s a great accomplishment lmfao should be balanced every year! And saved us $540 what’s that like two bags of groceries at max these days! Be real you’ve FAILED Bermuda big time and EVERYONE can see it!
“The PLP supports the Government’s decision to use the sinking fund to freeze health insurance premiums for the third consecutive year saving each person $540 annually”
First, what is the difference bwtween the PLP and the Government?
Second, how are we going to pay our $3.75 BILLION current account debt without the money in the sinking fund?
Yep, the PLP and their FAKE balanced budget noise. The PLP are Liars, this is proven time and time again.
The Corporate Income tax should only be put into projects that generate more annual future income than the annual cost of debt. If they don’t, then pay down the debt. The savings of interest payments from debt repayment the debt are repeatable for eternity.
If the debt is not paid off the payments of interest we have to pay to foreigners is repeatable for eternity, and we as a country with that burden will always struggle and crumble (don’t let the trinkets and gestures of the PLP (designed to hold onto power) fool you.
The reliance on International Business tax to pay the bills is a short-term blind and greedy outlook. Things can change at the click of a switch, and international business is gone. Companies already have plans in place.
“The Corporate Income tax should only be put into projects that generate more annual future income”
What makes you think Bermuda will ever actually realise any Corporate Income Tax?
Joe, Burt has said we’ll receive $187m in 2025/6 and presumably based on that plenty more in 2026/7 as he says we can pay off $605m in debt that falls due in 2027.
Despite this, the Tax Commission has said no one knows how much will be paid. I’ll believe them especially as many of the major IB companies have stated in their recent financials they have put aside billions in tax credits to offset against the tax.
I agree with your observation, but maybe enough to cover the costs of the agency set up to collect the tax.
THE ROLE OF THE NEWLY ELECTED
How can a newly nominated individual be expected to be from the onset a voting politition from day one?
Are some drawn from the chosen few who are expected to faces up to the monumental task of runing the countries business having a massive over budget while in deficit with the burden of over expenditure and inflation?
Most likely the nominared do not draw up a budget for their own home finances.
Does the Government do them selves a disservice by putting an enormous pressure on their chosen candidate.
or are they expected to the vote with the flow ?
Not many people to day would want to find them selve to be found in the position having a lack of job experiance from the on set as a member of the house, where it is not exactly where they would get on the job experiance and suffer from public condemnation and criticism, as being a responsible head of a Government department .
The position of legislator and decision maker would be better served by business owners and professionals.
The laws are often very complicated with one word out of place can cost the tax payers millions .
Laws come with many consequesces and penalties in some instances turning the legislaters into the countries jailers .
Do they really know how to deal with situation involving large qantities of money when thing go wrong by over extension.
It is imposable for one man be every thing to every one when the people expect more for their taxes .
Taxes can control and break a family only once this where the job opportunities are few and far between the Government can nor be exexpected to absorb them all .
There are many people who feel that they are left out.
What have they done wrong ?
All polatitions want to be seen to be serving the public requirements, could that be an imposable task.
Tax releif with in reason could be the only answer .
Many laws on the books come with side effects that pill is hard to swallow.
Laws involving taxes, I reference here in particular by funding unnecessary projects in particular.
I doubt it if the newly elected get a crash course in political science.
The voters are looking for professionals who are up to the complicated task of managing this countries business requiring expertieze an common sense good judgement and vast experiance.
The last thing to public needs if for the government to do is fail .
Correct me if wrong, but I thought that the sinking fund, created by that nasty UBP by the way, was only to be used for dire emergencies such as a devasting hurricane, not day to day expenses.
The PLP is using it as a piggy bank to be raided at will.
How many millions have quietly been slipped out of that fund and for what purposes?
What happens when that hurricane blasts through taking out one or more of those dilapidated bridges that should have been replaced years ago? Where will the money come from to replace them?
The debt that we have now already costs $3.5M per week in service charges and there are no plans to reduce it.
Yes, the sinking fund was established by the hated UBP (in 1979) and most recently was earmarked (by the much maligned OBA) as a repository for money saved to pay the principal (not interest, which we pay on a running basis) of our $3.75 BILLION current account debt.
And then there is the unfunded liability in relation to the superannuation fund that we dare not discuss. That is reported to be in excess of a further $4 BILLION in debt.
You mean the racist UBP that used black supporters and members as surrogates to attract black votes. Now all those black surrogates have left, and the UBP had no choice but to changed its name. Now the cycle repeats under the circus oba party.
“the UBP had no choice but to changed its name”
No. As I have said so many times, the UBP was dissolved in 2011. Ask PLP MPS Kim Swan and Wayne Furbert about it. They were both leaders of the UBP.
But don’t let facts get in the way of your lies.
Yes the oba is the UBP and all those black surrogates have been placed as leaders for one reason!
TO HELP ATTRACT THE BLACK VOTER. The obaUBP has no other plan.
Not all of them. Some of those black surrogate former UBP leaders are now surrogates for the PLP.
obaUBP = a white established party that contiunues useing black men and women as surrogates to try and attractg/win black votes.