The Progressive Labour Party took aim at the economic policies of the Government in the House of Assembly.

Opposition MPs described payroll tax relief for construction projects of national importance another example of trickle-down economics, while a grocery discount initiative was described as pandering and doomed to fail.

Speaking during the Motion to Adjourn on Friday, Deputy Opposition Leader Derrick Burgess said that while seniors benefits and scholarships have been cut, Government continues to support wealthy businesses.

“All they have done is cut the benefits for the ordinary people and given gifts, tax exemptions to those that can afford it,” he said.

Shadow Attorney General Kim Wilson echoed his statement, saying the Government was continuing to aid big business while leaving the average Bermudian fighting for the crumbs.

She suggested that rather than just hotel developments, the redevelopment of the workman’s clubs should be given the payroll tax relief, calling them the foundation of the community.

“I cannot think of anything that could be of more importance to the national interest than our workman’s clubs,” she said.

Finance Minister Bob Richards responded that Ms Wilson’s comments showed “a profound lack of understanding about how things work”, saying that in order to turn the economy around the Island needs foreign investment — something that a redevelopment of the workman’s clubs would be unlikely to receive.

“Who is paying for that? When I’m talking about strategic projects, these are projects that are being funded from abroad. This is foreign capital from abroad,” he said.

He said that if such a project were to receive funding from overseas the Economic Development Committee would gladly assist them, but Government should not be the one footing the bill given its current debt.

He said the Opposition had failed to present any realistic economic policies that would stimulate the economy without further breaking the Government coffers.

Opposition Leader Marc Bean meanwhile questioned the OBA’s economic strategy, particularly the ten percent discount grocery initiative which he described as pandering.

He told the House that direct Government interference with private sector business usually leads to short term benefits but long term problems.

“The long term consequences are that the people who were happy are now disappointed because they have been told the scheme is not sustainable,” he said. “Stop creating false hopes. Stop creating confusion.”

He also questioned if the wholesalers themselves had made any sacrifices, asking: “What ten percent discount did Dunkley’s Dairy has given the retailers? I doubt there was any discount. Isn’t that ironic.”

And on the topic of price controls had been broached in recent weeks, he said such proposals are well intentioned but doomed to fail in the long run.

He said that the way to reduce the cost of groceries would be for entrepreneurs to open trade links with other areas to make less expensive goods available on the Island.

And he called on Government to look at reducing customs duty and encourage wholesalers to pass their savings onto the public and for a mature discussion on strengthening Bermuda’s currency.

Public Works Minister Patricia Gordon Pamplin, however, responded that the cost of custom duty for food is already set at zero for many products.

She said the discount scheme was intended to help balance the impact of pay cuts and furlough days and reduce the cost of living, not pander to the public, and the Government is still meeting with stakeholders to determine whether to renew the programme, rejuvenate it or develop something new.

Ms Gordon Pamplin said that the Government is trying to work the Island out of the financial situation caused by years of overspending by bringing foreign money into the Island.

Premier Michael Dunkley meanwhile questioned the Opposition’s economic record, saying that over the last six PLP budgets the total budget deficit was $446 million more than Government had forecast, while the last OBA budget was around $1 million over.

“Don’t listen to the stuff emanating from the Opposition benches without facts, because it’s like the books we like to read. The good selling stuff? It’s fiction,” he said. “If you want sound plan and policy, listen to what’s coming from this side. We have an economic plan, we have a heart and passion for the people of Bermuda and we will make it work.”