Road to a cliff

February 26, 2010

Dear Sir,

Please allow me a few lines to announce my sheer disgust with this year's Budget, which is nothing but a knee-jerk reaction to the Government's years of squandering, overspending and mismanagement. There is no foresight in this Budget except for the between the lines screaming of a Finance Minister to recoup money back as quickly as possible. First off, let's all remember how we got to the money shortfall in the first place. This recession was predicted years in advance. It's also reasonable to expect that for every up in the economy there is going to be a down. It's a Government's duty to save during the economic boon when people don't need a stimulus, and release spend during a recession, such as capital projects, etc. This is prudent fiscal management as it helps the economy during times of need. Instead this Government has done the opposite, spending the surplus funds Bermuda enjoyed faster than our Premier going to a photo op.

With Bermuda smack in the middle of the recession and business already struggling, are we sure that a two percent rise in payroll tax is the most appropriate thing to do? This does nothing to help the businesses who employ Bermudians, or the Bermudians. For a Bermudian making an average salary of $50,000 a year that equates to $4,000 coming out of the pockets of the employer and the employee per year. To make matters worse Bermudians and businesses now have to pay three percent more for Government services and five percent more for vehicle licensing. Given the recession we are facing, it's doubtful that many people will be getting raises this year; taking this into consideration people will be making less this year than they were last year.

How is the economy to be stimulated if the average Bermudian has less, or no disposable income? Spending will dwindle even further and our economy will continue to plummet.

In another dangerous move, the Government is making provisions for people to withdraw money from their pension funds during times of economic depression. This spells disaster for there is no mention of repayment to these plans, which as we all know are there solely for us to survive on when we hit our retirement age. This is a disaster in the making as people are living longer, requiring more funds to live off of. If we have a generation of pensioners who have less income due to the rape and pillage of their pension funds, then Government will be spending even more money down the road to assist another ageing population, yet another toll that our children will have to pay on top of the current borrowing. Unfortunately this Governments record for assisting our elders isn't that good to start with, so I can only hope that something changes down the road. Again, no foresight here.

Now, hindsight being 20-20, it's easy to admonish this Government for their poor fiscal management, but why should Bermudians be punished even more for our Governments lack of foresight and our Finance Ministers inability to do her job; that being proper management of the public purse. We shouldn't. I would propose not raising taxes and having the Government tighten up on their out of control spending to raise the money for this budget. The overall budget should have shrunk by the promised ten percent or thereabouts given inflation, as mandated to all Ministries last year. Instead we have a larger budget. How is this possible? Has this Government been able to reduce costs by ten percent? It certainly doesn't appear so. A ten percent cut in spending would equal a $100 million saving. This would greatly assist in the shortfall of last year's revenue alone. Given the warning sign of a revenue shortfall last year; along with the fact that Bermuda has no funds for a rainy day anymore and not forgetting that we are still in a global recession, our Finance Minister should have planned appropriately and not allocated unnecessary funds for Tourism (Read Music Festival and other expensive events that do nothing to bring Tourists here), consultants whose advice we don't use, waste of funds in education (What are we still paying for that we are no longer using is a question that should be asked), shrink the GP Car fleet, lose the personal aides, put in a hiring freeze and streamline the civil service. These are just some ways to reduce expenses.

Everyone except the Government is being forced to tighten their belts even more. The Bermudian public has been tightening their belts, it's time for this Government to do the same. This budget is a slap in the face for every red blooded Bermudian and business owner who is trying to make ends meet. It's only goal is to recoup funds at any expense and without consideration to the tax payers, while our overpaid ministers, aids and other consultants reap the benefits even further. To borrow a phrase I read in a local blog today, this budget was entitled The Road to Recovery, but whose recovery? This road to recovery ends in a cliff and the voting public needs to find a way to apply the brakes before it's too late.

SEAN SOARES

Southampton

Mooring taxes rise too

February 27, 2010

Dear Sir,

On Friday, I received my mooring bill for 2010 from the Department of Marine and Ports Services. Much to my surprise I discovered that the new charges per mooring had risen from $79 in 2009 and now the bill is $150 for 2010. Is this a mistake? How can any Government Department raise their fees by and astronomical increase of 89.7 percent?

I have just read the Budget for 2010-2011. Employers and employees will pay an extra $1 per $100 of taxable remuneration. By my calculation that would be one percent each for a total of two percent. High end earners (up to $750,000) an extra one percent to total 5.75 percent. Land tax has also increased for top properties as well as the lower end properties. Government services will rise by three percent. Vehicle licences will rise by five percent. Bermuda is in recession. I hope the Deputy Premier, Minister of Finance Paula Cox will be able to investigate my complaint, even though she is very busy with the Budget for 2010-2011.

ROSE ROBINSON

Paget

Mission accomplished

February 27, 2010

Dear Sir,

Well he has achieved his primary goal. He came back to settle scores and with the assistance of his inept team of "Yes Ministers" has gotten even with Bermuda. OK, he has also destroyed our economy in the process but that's OK, because he can return to America in a few months. Most of us are stuck her to deal with what he and his "Cogs" have done. I'd like to know how 45,000 people are supposed to pay off a debt of $1 billion when the interest payments alone are projected to cost us $100,000 every single day, day in, day out until the principal is significantly reduced.

If we can generate sufficient income and find some sensible people to run the country and its services efficiently we may have some income left over each month to not only service the debt but actually reduce it. Saying that, to pay off the Government debt (mostly generated by the Brown administration) and the interest charges at say $5 million a month it would still take us over 40 years to become free of debt. And that is just the debts we know about and if we started now.

What are our Yes Ministers and Cogs doing to avoid deeper debt obligations? They are planning to borrow more money and I very much doubt that any of them have the slightest idea how those funds will be repaid. I suggest you ask your Member of Parliament, who is supposed to be looking after your interests. I despair for our children's children's children who will no doubt still be dealing with these few years of PLP fiscal folly for decades to come.

DEEPLY DEPRESSED

Pembroke

Mulderig should be praised

March 8, 2010

Dear Sir,

Robert Mulderig, chairman of the board of Bank of Butterfield, took on this job knowing full well the road ahead was going to be a rocky one. He also knew that he would be seen as culpable for mistakes made not on his watch.

In lieu of this, I think he was very brave to take on the job of cleaning up other people's past wrongdoings, the same wrong doings which unfortunately have bankrupted several small banks in the United States. The Bank of Butterfield, however, was spared going bankrupt in part due to the hard work and hard choices made by Mr. Mulderig.

I am a shareholder and I am not thrilled with the state of things at the moment but I realise that things could have been a lot worse. And in time, I fully expect my shares to go back up and my quarterly dividends to return. I would much rather sit and wait, as the alternative would be to lose everything I have in my investment because the powers that be didn't want to do the right thing, which unfortunately, is rarely the most popular thing.

I think Robert Mulderig should be commended for helping to save the Bank of Butterfield. Not many people would have stayed in his difficult position and weathered the storm when it would have been just as easy to resign and hand the reins over to someone else to handle this most difficult and thankless job.

SHAREHOLDER

Pembroke

Nice work if you can get it

February 27, 2010

Dear Sir,

Based on the most recent reports, I have realised that I am only one of three Bermudians who is not providing consulting services to the Government. Perhaps I should meet up with the other two unfortunate Bermudians and come up with a plan since I hear the pay is very good. Unfortunately, I am not sure what we could consult them on as it appears that every conceivable topic has been covered (two or three times in some cases). Perhaps we could consult Government on the use of consultants; the "Ministry of Consulting" has a nice ring to it.

KENT SMITH

St. George's

P.s. If Government does take us up on our offer we will need to renegotiate the payroll tax on our fees and be paid in US dollars.

A step backwards

March 4, 2010

Dear Sir,

A caller on an afternoon talk show said that he didn't want to hear any news from any other source than what is put on the Government channel, CITV. I shuddered to think that someone could think this way. Our forefathers and mothers fought for freedom, freedom to think, freedom to express our thoughts, freedom from tyranny and dictatorship and now people wish we could go back! I was reading "The Private Patient" by P.D. James and came across the following quote which intrigued me: "Frankly, I wouldn't lift a finger to muzzle the popular press. When you consider the machinations and deviousness of governments, we need some organisation strong enough to shout occasionally. I used to believe I lived in a free country. Now I have to accept that I don't. But at least we have a free press, and I'm willing to put up with a certain amount of vulgarity, popularisations, sentimentality and even misrepresentation to ensure it remains free." (p. 65,66).

I hope we never go back to the way things were and the way they still are in some countries that are led by tyrannical leaders and oppressive governments where the fight for freedom goes on today.

FREE TO SIGN MY NAME OR NOT!

Devonshire