Union leaders have said that while they understand that government spending will need to be cut in the Budget, they hope it will be balanced with ideas to increase revenue.

Bermuda Public Services Union president Jason Hayward said that he is not comfortable with the idea of across-the-board cuts announced by Minister of Finance Bob Richards.

“The BPSU is looking for a budget that seeks to reduce the Government’s fiscal stress and also spurs economic growth and development,” He told The Royal Gazette. “We would have liked to have seen an exercise that would prioritise funds for services needed and reduced funding for services with little demand.

“However, the Government has opted for across-the-board cuts. We expect to see cuts but we equally expect to see revenue-generating initiatives. If we are a first world-developed country, then our tax system should reflect that of other countries in the same socioeconomic pool.”

Bermuda Industrial Union president Chris Furbert echoed his remarks and referred to the Sage Report that was commissioned to help the Government to balance the books.

“Sage was one-sided.” he said. “They talked about cutting revenue, but what about growing revenue?”

Mr Hayward reflected on some of the ideas already communicated by the unions to the Government in the run-up to the Budget.

“The Bermuda Trade Union Congress has placed a number of cost-saving initiatives on the table, and if implemented correctly, should assist Government not just in the upcoming fiscal period but also the next,” he said. “They include, but are not limited to, a voluntary early retirement incentive plan, restrictions on overtime, hiring freezes and removal of funds for funded vacant posts. These proposals will contribute huge cost savings and will allow the Government to reduce the overall size of the public service through attrition.”

Mr Furbert added: “We need to look at fair taxation in this country for everybody. This is what the People’s Campaign has been crying out for. Fair taxation is based on one’s ability to pay.

“I do understand that while you give hotel concessions, exempt the retail and construction sectors from payroll tax. Every time they give concessions, that’s less revenue the Government is taking in. Somebody’s going to suffer. And at some point in time we have got to look at turning the tap back on and have the hotel sector, retail and construction sector paying their fair share.

“There is a lot of money floating around this country from dividends. Those are not taxable. Should the Government put a 0.5 per cent tax on dividends, which might get them extra revenue? Right now, that’s free money.”

Both men reiterated their belief that the Government should be downsized, not through job cuts but through natural attrition.

However, Mr Furbert said a proper audit needed to be conducted before the Government could determine what the size of each department should be.

Mr Hayward said that education should be a priority for government spending in the year ahead. “We would certainly like to see funds channelled towards making the public education system first-class, in addition to funds dedicated to the implementation of the national training plan. Getting our children adequately educated and getting Bermudians back to work should be high on the Government’s agenda.

Mr Furbert emphasised that the working class must be protected. “It is going to be very concerning to the working-class people of this country as to how they now have to share some more pain,” he said. “People have been on wage freezes, they have been on layoffs and they have got Belco bills going up, their grocery bills going up, they’ve got electricity bills. All these costs are rising and their wages aren’t going anywhere.

“There are a fair number of Bermudians who have been experiencing this for the last three to five years; it’s not just been union members. I’m hoping the Minister [of Finance] understands how people are really hurting in Bermuda.”