PLP challenges OBA to release cost of its proposals
The ruling Progressive Labour Party yesterday demanded that the Opposition One Bermuda Alliance reveal the costs of its proposals.At an Alaska Hall press conference, election candidate David Burt repeated his estimate that the OBA’s plans, outlined in a brochure released to the public as a partial election platform, would cost the taxpayer $500 million “in new debt”.The OBA responded by saying that PLP financial estimates should not be trusted given Government’s record as handlers of the Island’s purse strings and that they will inform the voters of their economic turnaround plan and “relevant cost estimates”.“Yesterday, the OBA called the media and challenged a newspaper ad that we ran highlighting the OBA's radical plans to add $500 million to the debt,” said Mr Burt.“This demonstrates that the OBA is still trying to get Bermudians to believe their fairy tale. They are trying to convince voters into believing that the OBA can have millions in new spending and millions in new tax cuts while at the same time magically reducing the debt.“Meanwhile the OBA has yet to commit to any major spending cuts.”He continued: “First, tell us how much the radical new spending proposals outlined in their mini-platform would cost. Second, tell us how much the new tax proposals outlined in their mini platform would cost.”Mr Burt also demanded to know whether programmes such as DayCare, FutureCare would be cut to pay for the OBA proposals.“Since the OBA says they can do all this while reducing the debt, tell us, what would you cut to make your math work. What is on the line? How much will the OBA cut FutureCare? Does the OBA plan to cut DayCare assistance? Does the OBA plan on cutting pensions? Does the OBA plan on letting the police force shrink with attrition? What do you plan on cutting? The voters deserve the facts.“Is the OBA the party of austerity or is the OBA the party of big spending? The OBA can’t have it both ways.“It's time to put down the fairy tale book and come clean with the Bermudian people about your real agenda for Bermuda.”OBA Shadow Health Board spokesman Andrew Simons said yesterday that the party had no intention of disbanding the FutureCare system but would make it better and sustainable if elected to Government.Shadow Finance Minister Bob Richards would not reveal the costs of his party’s proposals when contacted by The Royal Gazette.But he suggested that it would be done in due course.“We will be sharing our economic turnaround plan with the public, laying out our plans to grow jobs, reduce debt, support small business, control government spending, protect important social programmes and rejuvenate tourism,” he said in a prepared statement.“The Government does not have a plan. And that is why they are busy attacking us — to divert people’s attention from a record that has left thousands unemployed and thousands more underemployed, and all of us holding the bag on a billion-dollar debt that continues to grow as we speak.“People have to ask themselves whether they can trust any numbers the Government puts up, in light of its record with massive cost overruns, first class travel, millions for consultants and unchecked credit cards. Now they want people to believe their concocted estimates of our plan.”He continued: “The OBA will continue to provide the people of this Country with all the information they need to make an informed decision about their future, including relevant cost estimates. But remember: our conversation is with the people of Bermuda, not a Government that thinks only of holding onto power.”Mr Burt indicated that his remarks were motivated by the fact that the OBA had “called the media and challenged a newspaper ad that we ran highlighting the OBA's radical plans to add $500 million to the debt”.An OBA spokesman explained that the party had in fact written to the Bermuda Sun challenging the ad’s message.The letter complained that the PLP ad had taken remarks by OBA leader Craig Cannonier out of context when it quoted him as saying “Austerity is not such a bad idea”.Mr Cannonier had in fact said, in response to a reporter’s question that “austerity is not a bad idea when you've got excess and waste and you need to cut that waste out”. He went on to say that in 2010 Cabinet had circulated a memo to the Civil Service entitled Government Austere Saving Initiative which ordered austerity measures.The OBA letter also complained that the PLP ad suggested that Mr Cannonier had promised $500 million in new spending and tax cuts.“Mr Cannonier never said such a thing. Period,” said the spokesperson.
Here is a breakdown of the OBA's new spending and tax cuts, according to the PLP.
Payroll tax concessions to employers for new Bermudian hires — $127 millionMr Burt's estimate is based on a five-year period. But the OBA has only promised a two-year tax exemption.He is assuming that half of the 3,305 Bermudians will be employed costing the taxpayer $13.6 million (based on the median income for Bermudians in the workforce of $58, 698 increased by 1.25 percent annually)Mr Burt has also based his estimate on a five percent annual turnover of the Bermudian workforce which would add another 1,364 hires at an additional cost of $11.2 million. The grand total cost estimate of the OBA payroll tax concessions, according to Mr Burt, is just under $25 million for the first year but subject to slight increases in each of the subsequent years.
Marsh Folly remediation — $9 millionWaterfront Redevelopment — $106 million
Additional Road Works — $30 million over five yearsMr Burt says new hiring to do the road works would amount to an estimated $6 million annually.
Expand technical curriculum — $7.9 millionAccording to Mr Burt three additional teachers would probably have to be hired in each of the five middle schools and the two high schools (at $75,911).
Expanded preschool — $9.7 millionHere Mr Burt assumes a 33 percent increase in annual preschool expenses (currently $5.9 million) to total an additional $1.9 million in additional annual spending.
Expanded school day — $56 millionThis is 15 percent more annually than the current schools budget for salaries, wages and energy. Or $11.2 million extra per year over five years.
Four-year Bermuda College — $28 millionMr Burt says he thinks this proposal will cost the taxpayer 30 percent more than the $18 million it costs to run the College now, adding $5.4 million a year over a five-year period.
Crime — $55.3 millionMr Burt has included here proposals to offset what the OBA has referred to as underfunding the police service by 15 percent. Restoring full funding will cost the taxpayer $10.35 annually or $51.75 million over five years. He has also added annual costs of $500,000 for Operation Ceasefire and another $200,000 for the OBA's promised cash back for communities programme.
Crime Mapping — $2 millionMr Burt is an IT expert and says the programme sought by the OBA — a publicly accessible crime reporting system will cost about $2 million.
Stamp Duty relief on $1 million home purchases — $5 millionHome purchasers currently get stamp duty relief for homes valued up to $750,000. Increasing the cap to $1 million will cost the taxpayer $1 million a year in lost revenue according to Mr Burt.
New indigent clinic — $10.3 millionThree additional doctors (at $250,000 each per year), five nurses (at $80,000) and two administrative staff (at $60,000) would have to be hired.In addition the clinic itself would cost about $15000 a month in rent and power, and $35,000 monthly in equipment and supplies, according to Mr Burt.
