Scott puts redistribution of wealth on the agenda
IN his speech in London to the Overseas Territories Consultative Council, Premier Alex Scott contended that Bermuda's development has reached a critical point and that it would be tackled by a ten-year "Social Agenda" and some form of redistributive taxation or wealth transfer.
Opening the discussion on Sustainable Development (SD), Premier Scott reminded his audience that SD had been defined in 1987 by the World Commission on Economic Development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs".
"It has become evident to me and my Government that if we are to be able to continue to sustain our financial services and insurance industries and the environment that enables them to thrive , then in order for the 'Haves' in Bermuda to continue to have, the 'Have Nots' must have more," the Premier told his London audience on Tuesday.
In response, Opposition Leader Grant Gibbons berated the Government for a plan for social engineering that appeared to take the Progressive Labour Party back to their socialist past, and said that he saw signs of a resurrection of their "love affair" with income tax.
In his speech the Premier described steps taken in Bermuda between 1926 and 1983 to address some of the principal "indicators" of the environment and SD: legislation to control the acquisition of land and property by foreigners; legislation to control the ownership of motor vehicles; and zoning regulations to protect open space, woodland, arable land, nature reserves and caves.
However, after stating that "these initiatives have served us well", Premier Scott conceded that, because "international business replaced tourism as Bermuda's primary source of income in 1992" and that the increasing dominance of international business had "created a new set of challenges, there is intense pressure on Bermuda's infrastructure, housing market, schools and roads.
"Unprecedented rates of growth and development have resulted in Bermuda nearing the saturation point, as environmental and social costs are beginning to outweigh the benefits of economic prosperity," he said.
It appears that the Government has decided that the way to tackle these challenges is by a return to its more socialistic ideological roots, with a ten-year social engineering plan and a dose of redistributive taxation.
"Consequently, now in 2004, we are launching an all-encompassing cross-ministry initiative called the 'Social Agenda' to protect and sustain Bermuda's economic growth and economy," said the Premier. "As a result, Bermuda has again embarked on the development of an which will be implemented over the next decade.
"This view of SD is consistent with the major areas, themes and sub-themes from the United Nations Commissions on Sustainable Development."
It is understood that Ministries are already hard at work on initiatives which are expected to be ready for the Throne Speech.
Premier Scott's speech also listed some relatively small-scale environmental grants and biodiversity plans.
In his opening remarks, the Premier described the challenge of complying with the definition of SD as "both a complex and intricate undertaking".
"It will require change," he proposed. "Change in our way of thinking ? we can no longer do things as they have always been done; and change in our methods of implementation. In every decision we make, it will be imperative that we are cognizant of the long-term implications...
"Within a strategic plan for SD, a concerted effort must be made to eliminate the careless waste of natural, physical and, I wish to include human resources; and to diminish the damage to our environment by pollutants generated and then ignored under the guise of economic growth."
After reminding the delegates that, at the 2002 World Summit on Sustainable Development in Johannesburg, "all countries were charged to 'make progress in the formulation and elaboration of national strategies for sustainable development', and also to begin their implementation by 2005", the Premier appeared to back away from offering much specific comfort on SD.
"There is no easy solution to ensure that as we develop today to meet our needs, that we do so without compromising the ability of future generations to meet theirs."
Leader of the Opposition Grant Gibbons said that the Premier's speech gave him "a certain sense" of
"In every budget and Throne Speech since 1999, the PLP has talked about their 'social agenda', and I think that the only reason they are talking about it again, is because, frankly, they have failed to deliver on previous promises," said Dr. Gibbons. "This is a Government that is bogged down in scandal, corruption and disasters of their own making. Alex Scott is a master of words that mean nothing, and with no follow through.
"In our group, we refer to him as a weapon of mass distortion, and when you consider the Berkeley project, for example, all we have heard from him from the beginning, when he was Minister of Works & Engineering, is deception and misleading statements.
"To some degree, this is epitomised by some of the phrases he used. He talked of 'an action plan of social engineering for sustainable development'. In that one phrase, there are three terms that all sound good but could mean just about anything.
"We have been waiting for six years for an 'action plan', on housing, on seniors, on tourism, on health care. So far, all we have heard is talk and no delivery.
"What does he mean by 'social engineering'? Every dictator from Stalin to Idi Amin has been involved in social engineering of one sort or another.
"Does their social engineering involve income tax or Independence? It sounds like the PLP's love affair with income tax is starting to rear its head again, under the guise of a new 'social agenda'."
Dr. Gibbons said that instead of delivery on promises and some action, Bermuda was being treated to more rhetoric and excuses.
"In this speech, you have a great example of the PLP speaking out of both sides of their collective mouths on international business.
"He talks about the shift from tourism to international business, and also the intense pressure on Bermuda's infrastructure. Here we go again, with the PLP blaming international business for the pressure on the housing market, schools and roads, but in their recent budget statement, they said they will be putting more emphasis on international business and financial services.
"So, on the one hand, they are championing international business as a revenue generator, and on the other, disparaging its impact on Bermuda. It's self-defeating, and they wonder why international business is distrustful of this Government."
Dr. Gibbons pointed out that the Premier erred in fixing the year when international business replaced tourism as Bermuda's principal source of earnings as 1992.
"I think it was about 1995 when tourism and international business contributed roughly equivalent amounts to our economy.
"By 1999, the ratio of international business's contribution had grown to about 1.5:1, and by mid-2003 it was more than 3:1.
"Part of the reason for this shift is that the PLP has dropped the ball on tourism. There's been a huge decline in tourism since 1999. It should be a major concern that we have such an increasing lack of diversity in the economy, with all of our eggs heading into one basket. That's a recipe for disaster."
In last week's we reported that the gross receipts from tourism reflected in the balance of payments had fallen from $481 million in 1998 to $342 million in 2003, while international business receipts for the comparable period had soared from $759 million to $1.16 billion.
"In terms of economic impact," continued Dr. Gibbons, "over 1,000 Bermudian jobs were lost between 1999 and 2002, and almost 1,000 non-Bermudian jobs were gained.
"So, a lot of the challenges being faced by the community right now are a direct result of this PLP government, and from my perspective, they clearly have no vision, they have lost their way, and this new 'social agenda' is just another attempt to cling to power, and to continue to pad their own pockets.
"There was talk of this 'social agenda in the last budget, but when (Minister of Finance) Paula Cox went looking for money to pay for social programmes, she couldn't find it.
"They have hamstrung themselves in terms of finding money to spend on social programmes, because of the waste, mismanagement, and corruption we have seen over these last six years. There has been such a broad growth of government itself, that there's nothing left over to deal with housing and senior and pensions and health care. With this government, it will only get worse."
Opposition spokeman on the Environment Cole Simons, while "applauding" the fact that Premier Scott made a contribution to the London meeting, was dismissive of the environmental content of his presentation.
"His opening address lacked depth," said Mr.Simons, "and I am sure the other Overseas Territories leaders walked away from his message with nothing of substance.
"Premier Scott showed these colleagues that Bermuda was merely scratching the surface when it comes to sustainable development. In fact, he compounds his challenge by not being able to demonstrate to them that Bermuda has really accepted the challenge issued at the 2002 World Summit.
"He could not show that we have made any substantive progress in the formulation and elaboration of national strategies for sustainable development. He could not present them with Bermuda's National Sustainable Development plan. Why? Because such a plan does not exist, and sustainable development is not, and has never been a top priority for the leadership of this PLP Government.
"Why hasn't this Government come to terms with the fact that Bermuda's energy supplies are at a critical stage, and that our energy production capabilities are near capacity? From an environmental stand-point, what are at issue are very simple aspects of life: biodiversity, air, water, and waste issues, and continuing provision of sustainable energy to fuel both personal comfort and business development."
Questions posed to the Cabinet's Policy Unit had not been answered by press time.