Public loses in tax break debate, says Opposition
Taxpayers are still in the dark over the implications of hotel tax concessions rammed through the House of Assembly at short notice on Friday, the Opposition said last night.
The tax breaks given to the developers of the Castle Harbour Hotel, was passed unanimously on Friday after the United Bermuda Party walked out to protest about the lack of time they had to scrutinise changes.
Shadow Minister David Dodwell said the bill was given to them on Wednesday afternoon -- less than customary 48 hours notice -- and that it contained 27 changes on the draft given to them a week earlier.
The bill gives concessions to Rosewood Hotels to demolish the Castle Harbour Hotel and build townhouses and a 108 suite hotel.
Opposition Leader Pam Gordon attacked Government for doing the deal before getting Parliamentary approval.
She said: "The Minister indicated he was working within the confines of a deadline because of a commitment his Government had made prior to the Hotel Concessions Act and the subsequent Order being presented in the House of Assembly for vetting.
"The Minister's admission about the deal that the Government had already struck with the developers speaks to the very concern of the Opposition. The ramming through of the legislation did not offer a public airing of exactly what has been agreed.
"We were very much of the impression the order was being hastily drafted right up to the last minute as the Government apparently fine-tuned its deal with the developers.
"The full details of the deal were not fully disclosed and have not yet been the subject of public scrutiny.'' She said neither the Finance Minister nor the Tourism Minister had explained what the deal would cost taxpayers.
She said: "Will land tax be increased even further? Will the Government create new taxes or further increase existing taxes to ensure the necessary funds to run the country? "Not even one Government backbencher asked a question on behalf of the public.
Editorial: Page 4 PLP attacked over tax deal "It was agreed by Government during the Hotel Concession Act that the devil was in the detail and that all of the specifics for the proper vetting of the order would be forthcoming at the debate.'' Mr. Dodwell said: "Surely after being told about the Castle Harbour project in January and waiting seven months to see it, one more week would have been at the very least appropriate and fair. I find it very difficult to imagine investors would walk away from the deal for such a short delay.'' "Clearly what Bermuda experienced with the Castle Harbour Redevelopment Order last Friday was a mockery of the process and an extraordinarily bad precedent -- another example of PLP Government's arrogance as well as their own poor planning and management of the legislative process.'' Asked why Government, which deferred several items on Friday to next week's session, could not have done the same with the order, Government whip Ottiwell Simmons said: "Because Government was committed to getting the bill done.'' He added: "The bill has got to get through Senate otherwise we would have too much delay.
"The Opposition should have debated the bill, they had it. It's nothing new to them.
"Unfortunately there were a few changes made in the bill. The Minister pointed out the changes to Mr. Dodwell.
"It's just political jostling. It's nothing serious in my view.
"They are now learning to be a good Opposition.''
