A collaborative effort between Government and the business community to develop businesses in North Hamilton received a shot in the arm on when the Bank of Bermuda committed $10 million dollars to finance commercial projects in the Economic Empowerment Zone (EEZ).

At a press conference to update the public on the establishment of the EEZ, Finance Minister Paula Cox also disclosed that additional incentives and generous tax breaks would be given to businesses that operate in the Zone. “Going forward into the 2007 Budget Session, I am pleased to report that Payroll Tax will undergo a further review to provide an additional incentive to new start-up businesses that register with Bermuda Small Business and locate in the Empowerment Zone,” she said.

The Zone is presently established within the Corporation of Hamilton’s boundaries, the western boundary is Parliament, bordered on the north by North Street, King Street, to the east and Victoria Street to the south.

Ms. Cox said the Government is considering a number of other concessions: “Government will bring a Resolution to Parliament to declare the Economic Empowerment Zone in North Hamilton as an “approved” scheme under the Industrial Development Act and other concessions available under the ACT including deferral of Customs duty for periods of up to five years, long leases on certain forms of property development.

“I should also add that the other concessions may include the use of Customs Duty Remission Order to provide a zero rate of duty for a particular project that is unique in nature.”

The Minister also revealed that the property owners in the EEZ are now eligible to receive preferential treatment in accordance with a rarely used section (6a) of the Human Rights Act.

She explained: “The Human Rights Commission gave its consent that business and property owners of the EEZ could be regarded as being members of a special program under the Human Rights Act. This HRC consent opened the door for preferential borrowing rates from lending institutions, tax incentives and other forms of development incentives for residents of the EEZ.”

The Chief Executive Officer of the Bank of Bermuda, Philip Butterfield, said the Bank would offer three different forms of financing in the Zone.

He said: “We are very excited that this concept is becoming a reality and we are proud to be a part of this next phase of support for the North Hamilton Economic Empowerment Zone.

“We believe that the tailored financing solutions and expertise that we are contributing will provide entrepreneurs with the tools and a pathway to accomplish their vision.”

Mr. Butterfield also revealed that the Bank of Bermuda Foundation will grant an additional $250,000 for infrastructure development and would work along with the Uptown Market Association (UMA) for suggestions on how the money should be located.

The UMA is a grassroots groups made up of property and business managers in the North Hamilton area.

Initial indications are that the $250,000 would be used to finance the development of a Business Centre in North Hamilton, which would be the launching pad for new businesses in the area.

Ms. Cox indicated that Government already has plans to establish additional Economic Empowerment Zones in other parts of the island.

“This is the first Economic Empowerment Zone that has been established and can serve as a model for action in other communities where economic and social revitalisation may be required,” she said.

Cash boost for North Hamilton