April 28, 2014

Dear Sir,

I lay our current economic demise mostly on our former leaders, and the world wide recession. Let me explain.

Since the passing of the late honourable Eugene Cox, Bermuda’s finances were squandered, unaccounted for and spent without care or concern. Many govt projects during this time, ran over budget, costing the taxpayers $ millions, and we spent too much on things like The Music Festivals. The Qualified Audits of the last five years of PLP rule, indicated that fiscal checks were not possible. As a result, the Auditor General was not able to tell where all the money was spent, and to whom.

Answers to questions were not received and reconciliation of the public purse was difficult, if not impossible. It is also suspected, and has been shown in other jurisdictions, that fiscal malfeasance does occur when there is little or no accountability. This is what I gathered from the public statements from the AG’s office. In addition policies like the term limits, along with the increased taxes on executives, only served to convince some international business folk to leave our shores. We are now feeling, and seeing, the result of this.

Unemployment is high because 6,000+ workers have left. With them leaving, they are no longer contributing taxes or spending in Bermuda. Less taxes for the government means more borrowing or increasing taxes on us remaining here.

We cannot continue to borrow as our debt has reached approx $2.5 Billion. Our deficit continues to grow. We must reduce expenditure so that we do not have to borrow as much.

How are we going to do that? Should we introduce pay cuts and lay offs. That will not be popular with the people. Will we have to increase taxes, what are our options? Maybe all of those unpopular things. Will we convince foreign investors that Bermuda is the place to bring their money? Investment will reduce the likelihood of having to do those unpopular things, it will even produce employment, the whole crux of the matter.

The current government is getting blamed for the state we are in. Even though they are introducing policies and initiatives to help those of us that are struggling. The government convinced some grocers to give us a ten percent discount, increased funding to Financial Assistance, and may even, through negotiations, convince Belco to reduce electricity bills.

That is a government that cares about its people.

We know that many countries were in recession, but most have come out of it. We have a long way to go, and may have not reached rock bottom. Unless we, through prudent fiscal management, and an ability to create investment, can stop our slide, we are in for further hard times, most of which could have been avoided.

Changer