Chamber calls for clarity on planned consumer protection changes
The Bermuda Chamber of Commerce has raised concerns over the proposed transfer of consumer protection functions to the Regulatory Authority.
The changes were suggested in last Friday’s Budget Statement, but the Chamber today called for more clarity over the scope of oversight.
“Of concern, the Chamber awaits clarity on the proposal of ‘Consumer Affairs to support piloting the transfer of consumer protection functions, other than housing to the Regulatory Authority’,” the Chamber stated.
“This needs clear understanding of the implications for both business and consumers and what scope of oversight is being proposed with this structure.
“The Chamber is not supportive of practices that potentially further restrict the commercial environment that we operate in, which is already operating under constraints of market size, immigration and cost factors.”
Proposals to review the work permit process for closed and restricted job categories to help ease the island’s labour shortages were welcomed by the Chamber. And it also approved of Budget proposals to reduce debt, cut the cost of living and doing business, and to address housing shortages.
However, the Chamber called for a standardised release schedule of government data, as well as more detail on housing and healthcare funding.
“Overall, the Chamber welcomes the positive progress of this Budget, given the inflow of corporate income tax funds, and overall there is a fair balance of debt prioritisation against immediate needs to address costs of living and doing business, with some reservations about the potential aspect of oversight that may make operations in Bermuda less attractive,” the Chamber said.
The Chamber has previously raised concerns about how local businesses are struggling to find the staff they need, against the backdrop of an ageing population and a dwindling workforce.
The business group welcomed labour market reforms mentioned in the Budget to “modernise and review the work permit process as it relates to the closed and restricted job categories”.
“In the pre-budget feedback, the Chamber outlined the need for a committee of cross ministry/commerce/private sector to address workforce needs given the constraints on labour and low unemployment rate, and we congratulate the Minister of the Economy and Labour and the Minister of Tourism, Sport and Youth for recognising this need and hosting a meeting with deliverable outcomes earlier this month to support this budget item and key business item,” the Chamber stated.
In his Budget Statement, David Burt, the Premier and finance minister, said “a growing economy creates demand for more jobs, and one constraint on our continued growth is a lack of available labour”. The review would be aimed at helping to close the gap between the supply and demand for labour, he added.
Reductions to employers’ and employees’ share of payroll tax and the elimination of duty on fuel for electricity generation were viewed as “key measures” by the Chamber.
“We note that the relief is not as much as recommended by the Tax Reform Commission for a cap of 7 per cent for employer payroll tax, however, this relates to data collection required and we reiterate our recommendation that any data capture programme includes incentives for implementation, while also being clear on the scope and scale of information required,” the Chamber stated.
Offering support for the full repayment of $605 million of government debt coming due in January next year, the Chamber added that it looked forward to the fiscal guardrails proposed by the Fiscal Responsibility Panel being enshrined into law.
On housing, the Chamber said it supported the Government’s plans to build more affordable housing, but it called for more detail on financing.
“We await further details of the capital expenditure items for the Bermuda Housing Corporation of their $26.9 million budget along with details of the financing and repayment plans for the $90 million works for the Albert and Victoria Row, and Dr Cann Park housing sites, ensuring that lessons learnt from Bermudiana Beach are addressed,” the Chamber stated.
“As a matter of governance, given the quantum of debt that BHC continues to hold and will hold in the future, it is important that their financial statements are tabled and made public as per the Housing Act 1980, given they have not been tabled for 20-plus years.”
The Chamber said it looked forward to seeing timelines for implementation of health benefits and healthcare projects outlined on the Budget. And it called for greater clarity on the plans for the Standard Premium Rate, which has been frozen for a third successive year, but was not mentioned in the Budget. It also noted the Bermuda Hospitals Board had taken on an additional $18 million in net debt.
“The Chamber also would like to understand impact metrics for healthcare funding (eg, measuring waiting times) to ensure the needed boost results in tangible community improvement,” the statement added.
With CIT revenues coming in, the Chamber also urged “careful consideration for additional support to charities” to help them support Bermuda’s most vulnerable.
The statement added that timely data releases were important for economic monitoring and business planning, and called for a formalised data release schedule to start this fiscal year.
Adding some economic analysis, the Chamber said gross national expenditure (total consumption and capital formation, without external trade) remained below pre-2020 levels, “demonstrating the challenges in the domestic economy”.
It also questioned the accuracy of inflation figures, captured by the Consumer Price Index.
“While the Bermuda CPI continues to trend lower than other global economies, we recognise this does not reflect the reality of many and is predominantly driven by a rental factor that appears to not reflect the realities of the Bermuda rental market, which is only +7.1 per cent since April 2015 versus the overall CPI of +20.8 per cent,” the Chamber added.
See the full statement by the Bermuda Chamber of Commerce in “Related Media”
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