February 26, 2013Dear Sir,Government’s recent protectionist Budget is a good Budget given our economic situation and is a reflection of a new Government who has recently been exposed to Bermuda’s financial reality. Though I do not admire the task at hand to stabilise Bermuda’s economy, it is clear that regardless of the Government in place, Bermuda is simply what it was established so many years ago, a company. Faces and names may have changed, but Bermuda continues to empower and protect business and individual self interest.The Forty Thieves remain and they cannot be distinguished by skin colour or location. Legislation is now the tool of choice to ensure profits and consistency and advocacy of a system of people distinghed by type and wealth.That is why it is so important to win an election or to remain in power for them. Unfortunately, the ‘Forty’ in the last Government bought its own party to their knees, not Bermuda. That is why regardless of whom the Government is, business and self-interest grow wealthier with each Budget and our deficits grow larger each year.Just like taking away the ‘walk of shame’ from the old Hamilton police station to the old Magistrates’ Court, those that did not need protection, have been further protected. The Thieves (criminals) are the only ones who benefit and become less visible. Look at all the legislation that has been passed over the last several years. Who has benefited? Business, criminals and the interest of business.In Bermuda Co, what the last two Governments, the credit bubble and self-interest did was create a ‘Y’ generation that would be on an average less wealthy than their parents when they become their parents age.The bottom line is that international business may relocate a few jobs and/or re-organise a local department with a few local job losses, but they are not losing money. Look at their financials over the last three years. That’s why the conversation regarding international business has to change and be more specific. Given that less than three percent of all registered international businesses are physically domiciled in Bermuda, who really has to be protected? What and/or whose reputation has to be protected? Who is the puppet and who is the master?Anyway, back on track. If Government is serious about its people, they should have tried to not only attempt to protect Bermuda, but to also provide a mixed budget and stimulus policy to basically put more disposable income in the hands of local business and local residents. Notice I did not say Bermudians.This has been the failing of both the present Government though it is much too early to tell, but it is definitely a failure of the last Government. Yes, their social programmes were appreciated, but the money spent on those political programmes did not justify or balance to the financial situation Bermuda sees itself in.That being said, between April 1, 2013 and 2018 when Bermudians go back to the polls, Bermuda’s public debt may be at least $2.45 billion even after borrowed lump sum loan payments are repaid, debt interest payments are maintained and investment and gaming is implemented. Future hard decisions will have to be made. Remember that overspending and fiscal mismanagement creates less social budgets and take years to reverse.What I would do is put in the public arena a ten point recommendation to help get Bermuda back on track. If our economy and way of doing things do not change over the next three to ten years, the IMF will be producing our future annual budgets. Anyway:1. Though the Governor is responsible for currency and banking per Bermuda’s UK Order, Government should decrease the statutory interest rate from seven percent to five percent. This will force banks to decrease loan and mortgage rates and put more disposable income in individual and business’s hands by decreasing the interest expense to borrow money.Having and spending disposal income is the only way to stimulate and grow an economy, create jobs and build wealth.If HSBC complains, ask them what is the net worth of their local real estate holdings, how it is held and how much money does their insurance and holdings companies save HSBC Global on an annual basis.If Butterfield complains, buy their undervalued shares.2. Impose a 15 percent income tax on Corporate Director fees payable per annum. Those white wigs and others need to contribute more, as they benefit directly from Bermuda’s tax structure and directly assist those ‘brick-less’ international companies to be sustainable.3. Impose a 15 percent income tax on Trust account interest earnings on BMD, US and all other foreign currency accounts held.4. Recall the Payroll Tax Legislation and replace with a progressive form of taxation based on individual and business earnings.5. With over $20 billion dollars sitting in local banks in the form of foreign currency deposits and US and other currency accounts, impose a 15 percent tax on interest earnings per annum.6. I would disagree that taxes discriminate, people do. Hence, eliminate all retail Customs taxes imposed on imported goods for resale and replace with a sales tax at point of sale. The impact will be eventual lower prices for goods and services. For example. If you eliminate Customs tax, the price charged for goods and services will be reflective of the tax rate payable. The higher the price, the more the tax payable.7. Designate and internationally market the old base in the East as a technology and tax-free business park.8. Create a specialized insurance based diploma programme at the Bermuda College based on study of body of work required for insurance designations. Bermuda does not need a four year institution to create jobs. We are too small and it will be too costly to implement and to accredit. Bermuda does not need more jobs. Bermuda needs more quality jobs. We should focus on training professionals, not just nail technicians and dry wallers.9. Create an Entrepreneurial Institute and restructure the EEZ to be Island-wide.10. Auction-off five restricted banking licenses to attract world leading banks to the Island. A major restriction of licences should be, a. they cannot have a retail presence and 2. they must maintain a physical presence with a minimum of 35 persons. Investment and personal wealth managers would love to be in Bermuda.Additionally, Government should natrionailse Bermuda Electric Light Company Ltd to better manage and control energy costs and future energy innovation and needs.Lastly, for all those who are complaining about the abolition of term limits. Term limits do not create or provide jobs to Bermudians. Term limits do not create a Bermudian workforce. Term limits do not keep Bermudians out of work.Bermuda’s debt levels will have a more negative impact and will create more Bermudian job losses and lost local and international opportunities than having term limits in place.So for all those who plan to march on the new and ‘communicatively’ inexperienced Government, go march on the Immigration Deptartment and Immigration Board who have consistently failed to vet, not approve and monitor work permit applicants and applications.March for something of substance. March on local employers who abuse immigration policy, march on the banks, march on the grocery stores, and march on the PLP who in my opinion failed Bermuda.Then go home look in the mirror and ask yourself what did you accomplished. Has your disposable income changed or gotten better?Better still; ask yourself if you have been used by those that continue to canvass even though the December 17 election is over!!SBWarwick