An act bringing in payroll tax breaks for businesses in North Hamilton was passed with all party support yesterday in a bid to spread wealth opportunities to those previously marginalised in the economy.

However the Opposition harried the Government on why it had taken so long to bring the measure in and questioned why it had snubbed a United Bermuda Party motion on the same concept a few years ago.

Under the Act new businesses setting up in Bermuda's first economic empowerment zone will be able to enjoy the lowest rate of payroll tax available.

Businesses in the area — bordered by Cedar Avenue to the west, the Pembroke Canal to the north, King Street to the east and Victoria Street to the south — are already able to get preferential borrowing rates from lending institutions, tax incentives and other forms of development incentives.

Introducing the Economic Empowerment zone bill for North East Hamilton, Finance Minister Paula Cox said Government was trying to create a buoyant and vibrant economy wherein the economic pie can be expanded.

"This strategy is quite different from the redistribution of existing wealth.

"With the economic empowerment zone initiative we are well on our way to ensuring that this is accomplished for those persons in our community that may not always have been included in opportunities for economic growth and development."

Ms Cox said the number of local companies had increased by a third since 1998 to 3,144 and Government believed wealth creation will be realised by public-private partnerships.

"Government is taking leadership — simply said — it is putting its money where its mouth is.

"With the establishment of the Economic Empowerment Zone we are zeroing in on the heretofore neglected and disadvantaged areas."

She said the zone stemmed from a vision to restore north east Hamilton to its previous dynamism and vitality and the idea had been set out in the Government's 2005 Throne Speech.

Within the zone are 100 businesses, 350 households, 20 civic establishments including churches and government offices and 900 people.

Already the Bermuda Small Business Development Corporation has worked with the Uptown Market Association to curb drugs and spruce up the neighbourhood.

A design roundtable has worked on a draft plan which will go hand in hand with City of Hamilton plans said Ms Cox.

The Small Business Development Corporation, whose Government grant has been doubled to $3 million, will provide small grants to existing and new business owners in the economic empowerment zone for business plans, financial statements and marketing and architectural plans.

"There are also plans to pilot a small operating capital short term loan programme for the zone entrepreneurs as well.

"Government and its private sector partners are working with the zone stakeholders to beautify, modernise and create a secure environment in the zone."

UBP Finance spokeswoman Patricia Gordon-Pamplin said: "Years ago the United Bermuda Party proposed an economic development bill which we brought to the House and it was rejected out of hand by Government."

She wondered why Government was coming back so much later with the same concept.

"There seems to be a common thread in the manner in which our Government seems to deal with the people's issues. Everything is 'We will do it when we get to it and when we get to it consider it well done'.

"What happens in the interim?"

In the meantime entrepreneurs who needed the help had fallen by the wayside claimed Mrs. Pamplin-Gordon.

She wondered why the tax breaks only applied to new businesses and not existing ones within the zone.

However Government MP Michael Scott said: "What we have set out to do is just this — attract new business to a specifically carved out zone by the magnet of exemptions to payroll tax for a fixed period of time."

He said it was madness to demand the same breaks for well established business as it would then have to apply across the country.

He added: "We are on the cusp of a very exciting time in Bermuda." And Mr. Scott said the plan was to expand the concept to a wider section of the City.

Government backbencher Glenn Blakeney also welcomed the bill which he said would help blacks who had for far too long been shut out of economic opportunity purely based on the colour of their skin.

Opposition MP Neville Darrell said existing businesses in the area would unfairly miss out on advantages offered to start-up businesses.

His party colleague Maxwell Burgess said firms doing well in North Hamilton should be allowed to encouraged to move to the Front Street area to take on more established companies "head to head".

Social Rehabilitation Minister Dale Butler gave the House a history lesson on the way people living in the "back of town" had built up thriving businesses against the odds in years gone by. He said fledgling companies today could learn from their example.

Mr. Butler said: "They had a tremendous amount of pride, a tremendous amount of dignity and respect. They had guts, and in spite of the frustration and victimisation and racism, they amazingly put those things aside because they had competitive, entrepreneurism spirit."

Veteran PLP backbencher Walter Lister said small businesses could thrive in the back of town. "Success comes in all sizes," he said.

Junior Health Minister Patrice Minors said the move would give such companies "the toolkit to succeed".

Independent MP Jamahl Simmons praised the scheme but warned that to prosper people needed to change the "you can't, you can't, you can't" attitude which he claimed was holding back new companies.

Minister of Community and Cultural Affairs Wayne Perinchief then took to his feet to give an impassioned speech on the importance of changing the black philosophy that making money is wrong.

He also claimed people were afraid to say the empowerment scheme was specifically to help blacks.

"Why do we need an empowerment zone? It's to lift black people. I want the news to print this. Don't double-speak it please. Say what it is," said Mr. Perinchief.

"Finally, we recognise it's money that brings power."

Speaking in a mock high-pitched voice, he said: "Money is the root of all evil."

Returning to his usual tone, he continued: "No! We have to change our philosophy as a group of black people. There's nothing wrong with having money. Make sure you come by it honestly, that's all.

"Isn't it amazing that all development stops dead north of Victoria Street. Why? Disgusting. Some of those buildings ain't worth diddly-squat.

"I'm not going to say that I hope black people benefit. I'm saying we should ensure that black people benefit.

"Let's stop ducking the bullet. Let's stop this double-speak and get down to it."

Opposition MP Susann Roberts-Holshouser welcomed the move but said white individuals were struggling as well as blacks.

Opposition House Leader John Barritt pointed out that the Minister of Finance had discretion over who can be part of an "approved scheme" to reap the benefits of the Act. He asked for those who are successful to have the details published — despite this openness not being necessary under the legislation — so everyone knows who qualifies.

PLP member for Pembroke South East Ashfield DeVent spoke of the history of segregation in the area, but said change for the better is now visible every day.

''We're not calling it back of town any more, we're not driving anybody back, we're opening up opportunities that might drive people forward and taking people where they before couldn't go," he said.

Opposition spokesman for education Grant Gibbons said people could be selective in remembering the history of the area, pointing out that his grandfather — who he acknowledged had 'white privilege' — fostered his entrepreneurial spirit in this part of town. He also expressed concern that the bill could give unfair advantage to new businesses over existing ones and lead to rising rents for those living in the zone.

Government backbencher Terry Lister said he did not agree that the successful qualifiers under the scheme should have details such as business plans made public as the result would be "an empty empowerment zone".

Fellow backbencher Renee Webb said she was feeling very happy at the end of her political career — she plans to withdraw at the coming election — because three areas she feels passionately about and has taken "licks" on are coming to fruition.

In explanation, she praised not only the empowerment zone, but current moves towards education reform and recent backing from Cultural Affairs Minister Wayne Perinchief for her bid to end discrimination on the grounds of sexual orientation by amending the Human Rights Act.

"It's a grand day for me," she declared, saying that the cross party backing for the empowerment zone bodes well for Bermuda.

Government Chief Whip Ottiwell Simmons, who also retires at the election said: "This piece of legislation and this concept is perhaps the most important and most progressive piece of legislation that has ever come before this House — or it could be said it's among the most important and the most progressive."

And he urged: "All things are possible. You can do it young men! I want to advise all the young men and women of the idea of this economic zone".

Shadow Environment Minister Cole Simons mooted the idea of running organised tourist visits to the newly-empowered area so people can sample the "Bermudian experience" in terms of culture, food and entertainment.

Wrapping up the marathon debate — which stretched from just after 11 a.m until 6.05 p.m. — Finance Minister Paula Cox said: "I think this is the stuff dreams are made of."

She debunked the notion that the legislation will unfairly favour new businesses over existing ones, explaining that the tax breaks brought in for them are just one portion of the bigger picture, and there is "still more to come" for existing businesses.