Video: OBA Press Conference On Budget
[Updated] Shadow Finance Minister Dr Douglas De Couto is holding a press conference this afternoon [May 2] to deliver his initial response to the 2025/26 Budget. We will have additional coverage later on and in the meantime the live video is below.
Update: The live broadcast has concluded and the replay is below
Update: Shadow Finance Minister Dr De Couto’s remarks:
Good afternoon members of the media and the island of Bermuda,
After listening to the Government’s Budget for the 2025/2026 Fiscal year, an initial response to it could be excitement… as Premier Burt has presented a budget with quite a few positive items, and he’s even promised a balanced budget.
The budget is a statement of priorities, and it is equally important to identify what’s missing or left out. The devil is in the details. And to be frank, Premier Burt and his Government is misleading the public in a few ways.
There has not been a full and frank characterisation of the Government’s fiscal performance. It has been stated that there was a $19.7m surplus for last year but in reality, due to hidden off-balance-sheet spending the net debt was increased by $54m in 24/25, $78m, in 23/24, or $134 in total for both years.
What does this mean?
Quite simply, the Finance Minister was spending money out of one pocket, while pretending it didn’t count – just so he could misleadingly claim a surplus. Given that, how confident should the public be about his pronouncements regarding our country’s finances. The devil is in the details.
Government continues to take credit for economic growth, but driven primarily by the International Business sector. The local economy and salaries have barely risen and are being outpaced by the cost of living.
This Budget further cements the Government’s reliance on the International Business sector.
The plausibility of this Budget is built around the Corporate Income Tax initiative. But, and rightfully so, the IB community will expect better infrastructure on the island, a lower cost of living and other improvements. If the Government can’t deliver, Bermuda will be less attractive for them, and may leave. Can Bermuda afford that?
And we must never lose sight of the fact that our locals deserve the very same thing.
The Opposition is often accused of highlighting the doom and gloom, when what we are really doing is speaking on behalf of those people. Probing and questioning. After all, this is what the public wants and most of all, deserves. We are glad to see that the Government has finally, after several years, accepted that for many Bermudians, all is not well.
We are happy to see that Premier Burt and his Government has listened to us and has adopted a number of our ideas. For example, we are particularly pleased to see Pension Reform being made a priority, but it is unclear why Social Insurance Reform must wait until next year to be addressed.
It was pleasing to see that the 12 month waiting period for access to personal home care has been eliminated for FutureCare and HIP recipients.
But what happens with residents who do not have insurance at all? Healthcare is only truly “Universal” if it provides for them as well.
Our roads remain in dire need of repair. $5m has been allocated to fix them, but the same amount was allocated last year and not even half of it spent. Now the Government is saying it will waive import tax on tyres and car parts. But I think what we’d all prefer is for the roads to be fixed and have minimal damage to our vehicles. Will the roads actually get fixed this year, given the delays for the asphalt plant?
This year saw the smallest increase in allotted funds for the Bermuda Tourism Authority. How can this be, for what should be, now, the second pillar of economy?
After the Government scheduled an election that denied students abroad the opportunity to vote, then promised it would provide absentee voting, we suggest it is insulting to our youth that no funds seem to be allocated for absentee voting, and no mention was made in the Budget Statement.
Finally, there was no mention of what the Government will do with our now-failed Gaming Commission and Gaming industry.
The elimination of payroll tax for employees over the age of 65 is being deferred, and reduction in vehicle license fees isn’t even schedule until 2026, so it’s odd that it’s even mentioned in this year’s budget.
Is this Government really about keeping the promises it’s made?
The One Bermuda Alliance only wants what’s best for Bermuda and its people, the creation of an economy where everyone can not only survive, but thrive….not just today, but for generations to come. We are willing to work collaboratively with the Government to make this happen, but in order to do so we must be honest about the true state of our island’s financial affairs.
Update 5.57pm: A PLP spokesperson said, “The Budget unveiled earlier today by your Progressive Labour Party is a strong statement in support of our deeply held values of fairness for all Bermudians. It offers relief to those in need and a responsible path forward towards a Bermuda where everyone benefits.
“The OBA has shockingly acknowledged some of the budget’s positives. But instead of building on that, they’ve returned to misleading claims and political games.
“Our finances have been handled responsibly, and the progress that has been seen in our economy didn’t happen by accident. It was a result of prudent, responsible, Bermudian-focused strategy. Unlike the OBA, which doubled the debt, furloughed public service workers, cut public services, and cost taxpayers hundreds of millions at Morgan’s Point and the airport, the PLP is delivering stability and growth.
“This PLP Budget:
- “Cuts taxes for hardworking Bermudian families, saving the average family of 4 $1000 a year.
- “Invests in healthcare by expanding prescription drug coverage and access to annual preventative visits.
- “Helps families by eliminating waiting periods to access home health care benefits
- “Boosts funds for education, social services, and infrastructure.
“Yes, there’s more work to do because we believe that every Bermudian should benefit from our growing economy, and not just the wealthy and privileged. But all of our members are proud that today the PLP has delivered Bermuda’s first balanced budget in 21 years.
“While the OBA points fingers, the PLP is demonstrating fairness in action and building toward a Bermuda where everyone benefits.”
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Good points have been raised.
THAT WAS NOT A BUDGET IT WAS A TAX GRAB .
“”"”"”"They could have ended inflation oner night if the wanted to but did not .”"”"”"”"”
How many people in this island have discovered the trick that has been played on them it is the same trick which has be used by other countries for certuries .
It is called ” GIVE AND TAKE ” this time to catch the fish very little bait was put on the hook and we all took the bait it was your tax money.
TELL ME HOW YOU ARE GOING TO REDUCE AND SAVE OUR MONEY.
As I listened in horror to the reading by the honerable minister all that drew my attension to it was money or you money.
Money for unnessesary projects fis the roas that will na trousands happy it was all about how much money they would take and how much releif was going to be kicked back over a period of time .
The more sugar you put in the coffey the the sweeter it will taste but not all got to taste the bonanza as it was carefull devided into sections dependant on who you are and were you came from as equality was put on the back burner.
The naration on the budjet was prepared by a University English Professor so you all would not completely understand it A. million here and a billion ,000,000,000,000, there.
if you all did not know it you were taken for a ride.’ not one of the project would make any monet for us as the tourist department was put on a starvation diet .
All our monrey goes out the door when are the going to learn that momey makes money.
Here we go again wit affordable housing to build pleasure palaces that is a bribe to get the vote.
Now 10 % duty on building materials that will take years to accomplish when labor costs is what drives to cost up.
the budger is a bunch of promices made ,are we goig to buy into that dpo no be so naive.
The two bridges you know will cost millions so fill them in and pave it as save a bundle .
The Government should go after business which are taxid which increases the cost .
who are those ripping us off.
FOOD
POWER
BANKING
INSURANCE
RETAIL
The government should get used to saving us money with elimination of many taxes and wean departments away which have had their day.
The civil service needs accountability they spend budger remains on elrctric vehicles with all need a well over due shake up they are goofing it !
That is why we have a government we can not afford .
THE BUDGET NEED TO BE REVISED BEFOR IT IS TOO LATE. good try bur we are not buying in to it ?????
Well done, Dr De Couto. I’m looking forward to hearing more from you.
But all of our members are proud that today the PLP has delivered Bermuda’s first balanced budget in 21 years. Yet when they took over 21 years ago there was no debt and budgets were balanced.
The budget is still not balanced as it’s missing various expenses such as payment into the sinking fund, cost of replacement bridges, cost of the PPP for the Acute Care Wing. Many tens if not hundreds of million there. Worst is the $187.5 million expectation from CIT. Nobody knows what the CIT will produce. Not IB, not the Tax Agency, not economists not ABIC. No details have been finalized. Will payroll tax be offset against COT? Nobody knows, and if it’s not $187.5 million then the budget is shot.
“Worst is the $187.5 million expectation from CIT.”
There will be no income from CIT. I defy anyone to find any respected economist in the world who will give an opinion that such a wealth tax has ever been successfully implemented in any jurisdiction.
De Couto busy keeping the oba as the UBP.
Why do you say that, Jo?
TWO THINGS, TAKE YOUR PICK
At lease I give you a choice
1) If a country borowers money on top of existing loans does that mean to country has ran out of its money . with also matr last year budger worth lwess in more ways that one .
That is a very dangeriouse way a of managing a countries business .
What is every house hold in Bermuda did that ?
This is what covid 19 did to us followed by masive inflation caused by bermuda business on top of world recesion
When you throw mney into the sea it does not float !
Now they have the excuse that they have been longing for ! Yippie Kaiay
2). IF YOU WANT TO LOOK GOOD
This is a six stage situation.
A). Manufacture or creat an insurmountable money problem.
B). Wait say about 6 monthe untill it festers.
C). Try to put the blame on another .
D). Pass the buck .
E). Find an excuse that fits the bill.
F). Dont tell the children what is under the carpet .
3). SOLUTION Fix the probled with another loan and and come out looking like a bowl of cherries
The UK has reached is borrowing limit. Now they have go to pay it back in a failing economy.
Governments do no work for the people the peopl work for the Government.
Pay raises promote inflation but in crease the cost of living.
Inflation is designed to target the rich but hurts the working man.
A rich man has no money because he invest it all .
If you borrow money at 5 % and reloan it out at 10 % You can make a bundle and stay home an count it .
The rich always pray supon the poor.
The Ministry of National Security is allocated $127m, compared to $137.8m last year. In 2017 it was $146.6m.
This is why there are no Police around, and why crime is out of control. The government is steadily defunding the Police, and we all have to live with the violence, the crime, and the road accidents.