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OBA: The ‘public has a right to know’ details of bond plans

The Royal Gazette ran a campaign, A Right to Know, demanding access to Government information.

Shadow Finance Minister Bob Richards called on the Premier to reveal the amount of a bond Government is planning to issue to raise cash to fund current expenses and service existing debt.The Opposition MP told the House of Assembly he was “taking the opportunity to ask the Government” for the figure because: “I think the public has right to know”.“At this point in time I’m sure the Government knows how much they need to borrow,” he said, during the motion to adjourn debate.“I think that it is in the interests of the people of Bermuda to tell them exactly what their intentions are that they are looking to borrow in the capital markets.”The Royal Gazette reported last week that Government was gearing up for a “huge bond issue”, with one source claiming Government wanted to raise just under $300 million of 15-year bonds in an offering led by a Bermuda bank.Responding to Mr Richards, Premier Paula Cox told MPs: “This Government really is not about secrets or covert operations.”She said her Ministry of Finance stated in a press release that Government would be “meeting domestic and international investors to provide an update on economic fiscal development in the Country and also as part of its process of evaluating potential funding opportunities to address its borrowing requirements as announced in the National Budget Statement for fiscal year 2012/13”.Ms Cox said: “This press release doesn’t constitute an offer, or invitation, or solicitation of an offer to subscribe for or purchase any securities, or constitute an official confirmation of any transaction, or form the basis of any contract or commitment whatsoever.”The Finance Minister said she was clear in this year’s Budget about Government’s financing requirements for the coming year.“I, at that time, advised that there would be new borrowing requirements of approximately $172 million.“And last week, as I just indicated to you, I indicated that the Bermuda Government would be meeting international and domestic investors to provide an update on economic and fiscal developments.”She said it was “concerning and disconcerting and also disheartening” that people sought to “score cheap political points” on such issues.“We are here as public servants,” said the Premier, adding: “Let’s be honourable in communicating and remember that we’re here to represent the interests of Bermudians and to represent Bermuda’s national interests and to act in the public interest and to remember that there is a social contract between those who are entrusted and elected to serve and those whom we serve and represent.”