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Business chiefs argue case for no tax increases

Business leaders are urging Government to put the brakes on spending in Friday's budget.They spoke as Finance Minister Paula Cox puts the finishing touches to the Government's expenditure plans which could be the last before the election.Chamber of Commerce president Peter Everson said the expanding economy meant revenue was rising strongly through payroll tax, more jobs and import duties meaning Government's coffers were overflowing.

Business leaders are urging Government to put the brakes on spending in Friday’s budget.

They spoke as Finance Minister Paula Cox puts the finishing touches to the Government’s expenditure plans which could be the last before the election.

Chamber of Commerce president Peter Everson said the expanding economy meant revenue was rising strongly through payroll tax, more jobs and import duties meaning Government’s coffers were overflowing.

But he predicted new Premier Ewart Brown will be keen to spend on new programmes.

Mr. Everson said: “Government ought to re-allocate resources from current expenditure to fund these new programmes rather than ask for tax increases.”

He said the public sector had increased by 1,000 jobs in the last ten years and it was high time to look at whether all were necessary.

Mr. Everson said there were 5,200 jobs now in the public sector, the Island’s largest employer, which meant more work permits were necessary.

He said Government’s elsewhere normally spent less in boom times and more in slumps but this was not happening here and he urged a rethink.

“The Premier is obviously keen to take action rather than talk about action therefore if he proceeds with a lot of programmes the assumption must be Government expenditure will go up and if it goes up you can suspect they might look to increase taxes.”

Bermuda Employers Council head William DeSilva called for Government to reduce taxes, licence fees and permit fees — or at least hold off on an increase.

“There doesn’t have to be an increase to cover an increase in Government expenditure.”

He too urged Government to instead look for efficiency savings to scrape up money for any spending hike.

David Ezekiel, who is chairman of the Association of Bermuda International Companies, said his sector was booming and he hoped for no change.

He said he had no problems with spending if it was for the right reasons and done with the right controls. “There are things that need to be addressed — certainly the whole transport issue. I think we are all supportive of initiatives that give back to the community.”

Bermuda Industrial Union leader Chris Furbert said he hoped the long-promised replacement facility for workers at the Marsh Folly Dump would finally get built.

He said: “My understanding from the Minister is he’s trying to get funds for it this time around. It is constantly being put on the backburner.”

And Mr. Furbert said he hoped Government would continue with its funding of sports.

“Government has made a step in the right direction — they did something for cricket they did something for football — these are our two national sports.”

He said sport could be a positive influence on youngsters.