Senate blocks cost-of-living legislation
The Senate today voted down a cost-of-living legislative amendment that opponents claimed would allow the Government to set price controls on certain items.
The Bill aimed at expanding the powers of the Cost of Living Commission was defeated when it came for a third reading in the Upper House.
Lindsay Simmons, the junior home affairs minister, presented the Bill for its third reading, moving that it pass.
However, objections were raised and the matter went to a vote.
All government senators voted to pass the Bill while the three opposition members voted against.
Joan Dillas-Wright, the Senate president, and John Wight, its vice-president — who are Governor-appointed senators — voted against the amendment, while Tawana Tannock, also an independent member, was recorded as absent at the time of the vote.
The Senate heard that with a tied vote, the motion was defeated, which meant the Bill failed to pass.
In July, the amendment made it through the House of Assembly but when it was taken to the Upper House later, opposition and independent senators voted against allowing it to progress to a third reading, pushing a final vote on the amendments to the sitting today.
The Cost of Living Amendment (No 2) Act 2026 would enable price-increase controls on essential commodities and allow for the designation, price-information monitoring and price sharing of critical services.
The Bill would also permit consultation and collaboration between the commission and other public authorities with responsibility for the regulation or consumer protection of commodities.
It drew criticism from businesses, which said the measures included were administratively burdensome and would present greater challenges for fresh, healthy goods, which can fluctuate in price rapidly based on international factors.
Ben Smith, the Leader of the Opposition, said the non-passage of the legislation was a win “for all Bermudians”.
He commended the One Bermuda Alliance’s team in Parliament, including Dwayne Robinson, the Shadow Minister of Home Affairs, and Senate leader Victoria Cunningham.
Mr Smith said: “Today’s senate vote also shows the continuing value of independent senators, who can vote on government legislation, taking into account island-wide interests.
“Today the OBA and independent senators combined to do what was right for Bermudians.
“The PLP government’s attempt to address our cost-of-living crisis with price controls was deeply flawed.
“Given the PLP created many of the problems Bermudians now face, no one should be surprised the PLP cannot solve them.”
Mr Robinson said the Bill would have had a negative effect on consumer choice, market competition and Bermudian employment.
Since the Bill would be delayed by a year — before it can be brought back for reconsideration by legislators — he urged Alexa Lightbourne, the Minister of Home Affairs, to take the time “to truly consult with industry stakeholders and work on a plan to address the high shipping costs for our local businesses providing essential commodities”.
Mr Wight referenced comments he made on the subject in the Upper House in July.
“I find the potential ramifications of this Bill very concerning — both philosophically and practical,” he said at the time.
He said he was concerned that existing businesses, faced with increasing administrative, compliance and reporting costs, will look to reduce costs elsewhere.
He expressed concern that no new businesses will choose to operate in Bermuda.
Zach Moniz, the manager of Lindo’s, warned earlier that price controls could hamper the industry, increase shopping bills and reduce consumer choice.
The company acknowledged the decision taken by the Upper House today.
In a statement, it said: “We remain committed to working constructively with the Government to identify practical solutions to the cost-of-living challenges facing consumers and businesses alike.
“Throughout this process, we have complied with every request made of us by the Government, and we intend to continue doing so in a transparent and co-operative manner.
“Our objective has always been to support policies that achieve their intended outcomes while minimising unintended consequences for consumers, businesses and the broader economy.
“We are hopeful that over the coming year we can work together to find a balanced path forward that provides the Government with confidence that its policy goals are being met, without unnecessarily increasing the cost of doing business.”
The company said it looks forward to holding continued dialogue on the issue “and contributing constructively to solutions that support affordability, economic stability and the long-term interests of the public”.
Earlier, Mr Moniz insisted that the industry was not consulted on the legislation or an earlier law change — the Cost of Living Amendment (No 1) Act — or related regulations requiring businesses to provide a monthly breakdown of how costs are set on essential items, while empowering the Minister of Home Affairs to intervene.
He told The Royal Gazette it involved inputting more than 20 data points on thousands of products that could lead to higher costs at the tills, as well as higher taxes as businesses and the Government carry out the work required.
The Government has been contacted for comment.
