Dr. Brown shuts down House debate
The Premier last night "shut down" a Parliamentary debate saying Government will do the same "every time there is the implication or insinuation of something dishonest or corrupt" by the Opposition.
He made the remarks despite Opposition calls for Government to table the lease on the Coco Reef resort, saying it was a matter of public interest to say what was in the lease before it could consider a hotels concession order for the same property.
During a debate into the Hotels Concession (Coco Reef Resort) Order 2008, Opposition leader Kim Swan claimed a Special Development Order granted for Coco Reef Resort was an election "payback".
He said:"We certainly express our disappointment to this Order and to the Coco Reef.
"It's somewhat a little late when you talk about concessions. Some concessions have already been given to this property.
"Another area of great concern to mention was the way the deal was struck initially. They promised the woodland reserve would remain.
"It has only been reserved to be granted under an SDO for condominiums. The property of Bermudians have been given away as an election 'payback'"
The new concessions order for the resort entitles the hotel developer exemption from land tax of up to $9,800 a year, for up to five years; exemption of $130,700 in hotel occupancy tax for three years; exemption of hotel occupancy tax of a further $18,750 for five years and five years of exemptions from the employer's share of the payroll tax of up to $7,300. In addition the developer is also entitled to a reduction of a third on the landholding charge.
But Opposition MPs made repeated calls for more information first on what had transpired in Government dealings leading up to the new concessions and asked for the original lease details to be tabled so that everyone could see them.
Controversy has dogged the resort since former Elbow Beach managing director John Jefferis was given a 50-year lease by Government in 2003 to operate and manage the Paget property.
In January this year he was granted an SDO by Environment Minister El James to build 66 holiday apartments on woodland.
Government stated it was important for the Island's tourism product, even though tourists will only occupy the Coco Villas for six months of the year.
A 2004 special report by Auditor General Larry Dennis called for the lease to be re-tendered because it was "considerably more beneficial" to him (Jefferis) than the tender document specified.
The new document doubled the length of the lease from the agreed 21 years to 50 years, drastically reduced the amount of rent to Government, acquired an extra 1.9 acre plot of oceanfront land with two cottages, which were not on the table, and gave permission to build condominiums which can be sold off.
A committee created by Premier Alex Scott, however, decided their was no need to renegotiate the terms.
During yesterday's debate in the House of Assembly Dr. Grant Gibbons expressed concern about the lack of woodland with the SDO and unanswered questions about training Bermudians.
Recognising that the UBP does not disagree with concessions as a general rule for hotels, he said: "Coco Reef has already had a lot of concessions at the expense of the taxpayer.
"In 2004, 37 of the 60 employed Bermudians there resigned or were removed from their jobs. They had almost 200 years experience together.
"In 2005/06 we asked how many have been trained and the answer was that in 2003 one Bermudian had been trained. In 2004, six were trained and 2005, three were trained. A total of ten. It's an embarrassment, I'm sure, in training Bermudians for the hotel industry."
Opposition Whip John Barritt said: "In the Auditor General's report it questioned the lease that was drafted from 21 years to 50 years.
"Their rent went from $600,000 to zero. It has been given free rent for five years. Is that running out?
"The five-year rent part was to complete a $10 million extensive development of the hotel at their expense. How can we fault the company for asking for a break. If the Government will do it why not? This is a steal.
"Shadow Minister of Works and Engineering, Patricia Gordon-Pamplin then raised further questions saying the lease should have been reviewed before signed.
She said: "The terms of the lease they were given were so different from how it was put out. The playing field was tilted."
Mrs. Gordon-Pamplin asked why the lease had not been rewritten and resubmitted to everyone who had submitted requests, adding: "We are being asked to grant concessions to a situation already deemed ultra-favourable to an individual, so in granting them it's important for us to understand what exactly the taxpayer will have to cough up."
She called for the lease to be tabled in the House.
"We haven't seen it in the House. We need to know what the basics are on to which we're springboarding into these concessions."
Originally, we were talking about the preservation of the woodland reserve, and now we're talking about the granting of concessions to build units – presumably on that designated tract of land which was declared woodland reserve in the first place.
"In making such changes, it's incumbent on the Government to let the people know what this is.
"When you're dealing with things of public interest, and to justify what one is doing by giving Concession Orders in the public interest, then I believe the public has a right to know."
She added: "When you have the ability to pass legislation without the benefit of full scrutiny, because we have the numbers, it still doesn't make it right.
"In the public interest for the people of Bermuda, they have a right to know what they are getting for what they are giving. I don't know why $8 million has been spent when the lease required $10 million to be spent.
"When you look at the entire package we don't know what the financial implications are – but also the issues from a preservation and environmental point of view for the people of Bermuda.
"The lease was never tabled so we don't even know the basis on which we are giving away these concessions."
Commenting on the public land, she said: "You can't sell something for lease and title which doesn't belong to you in the first place.
"The Government is not just giving public property to someone to be built on, but is giving concessions to achieve that landholding, and also landholding charge relief by a third. We're talking about a lot of money.
"I would just like for the Premier, at some point, to table the lease so we know the basis from which we are operating, and not keep the Bermuda people in the dark, because at the moment we get the feeling someone stole our cabbages the first time and now they've come back to steal the whole patch."
But the Opposition's comments and calls for the resort lease to be tabled were stifled by the Premier.
Dr. Ewart Brown said: "I came to the House today to engage in an energetic and robust debate on this Order. I came prepared, and was anticipating the Opposition would fashion a number of arguments against this Order. I appreciate and approve of that approach, but something happened very early in this debate that causes me to explain something to the House and the Opposition.
"This is how we are going to do business.
"We will engage in debate, we will not suppress it, and will listen to all members of the House and answer questions and then vote, but every time there is the implication or insinuation of something dishonest or corrupt mentioned by members of the other side, we will shut down the debate and move with the numbers."
Dr. Brown then said: "I move that the Order be sent to his Excellency the Governor."
The Speaker of the House gave the Order to the vote, and despite opposition it was approved by the majority.
