Log In

Reset Password
BERMUDA | RSS PODCAST

Independents side with Government Senators as PLP tries to block SAGE efficiency bill

First Prev 1 2 Next Last
Minister of Minister of Finance Bob Richards speaks to the media at the A B Media Place in the City Of Hamilton Wednesday during a press conference to discus the current state of Bermudas finances ( Photo by Glenn Tucker )

Senators approved a bill setting up the Spending and Government Efficiency Commission but not before a concerted effort by the Opposition to amend the law.The six-member Commission, already appointed by Finance Minister Bob Richards, is tasked with reviewing and proposing changes to Government agencies and structures, and identifying operational improvements.The SAGE Commission Act 2013 requires Government bodies to provide requested information unless it is related to cabinet proceedings, national security or subject to legal privilege.Chaired by Brian Duperreault, with Kim White, Kenneth Dill, Peter Hardy, Catherine Duffy and Don Mackenzie serving as members, the new body will serve for six months after which it is required to submit a final report.In a debate which mirrored the House of Assembly debate last week, Home Affairs Minister Michael Fahy stressed that the body would only make recommendations to Government.“Commission members will be working with all stakeholders, including the general public, to formulate ideas and get suggestions on how best to manage, control and reduce Government spending over time contributing to a proactive deficit reduction plan,” Senator Fahy told the Senate on Monday.Opposition Senators agreed in principle with the bill but expressed concern that, as drafted, it would create a duplicative and unaccountable body with too much power which could end up lasting longer than its planned six month existence.“This comes across as an attempt to form a group, give it incredible powers and use them to do the hatchet job that this Government would not stand up and say they want to do themselves,” said Senate Leader Diallo Rabain.He suggested that the Government may be planning to use the SAGE Commission to privatise certain Government services. Some of the bill’s provisions ensured that its operations would not be transparent, he continued.Independent Senator James Jardine, however, spoke in support of the bill saying that that its “overall concept is a good thing”.“We need to get our house in order and we need to do it quickly. And we need to have a body of individuals who can fair mindedly look at the process,” said Sen Jardine.Senator Marc Daniels, while agreeing in principle with the concept of SAGE, argued that the bill was flawed and proposed several amendments.“This entire piece of legislation is enshrined and shrouded in secrecy. There’s absolutely no requirements for any of the information or conversations to be publicly discussed,” he said.Sen Daniels cautioned against rushing through the legislation. “This should not be a process of making quick decisive action against the support of the few but leaves many lost in wonder.”Sen Fahy was repeatedly asked whether Government would accept any privatisation recommendations from SAGE, given the OBA’s election stance that it had no plans to privatise any part of Government.But the Minister would not be held to a firm commitment, instead he insisted that recommendations from SAGE would be looked at.“Government makes its decisions based on the feedback from the community,” the Minister said. “All this Commission is doing is making recommendations.”Independent Senators voted solidly alongside Government to reject the proposed amendments which were aimed primarily at allowing parliament to scrutinise decisions by the Finance Minister to extend or dissolve the body, and ensuring a parliamentary debate of its final report and financials before it is dissolved.

Several money bills passed by Senate

Senators increased a slew of rates and fees as it final assent to a raft of money bills was given on Monday.

The Health Insurance (Standard Hospital Benefit) Amendment Regulations 2013 were approved, setting a new monthly premium of $325.84 and a weekly rate of $75.19.

Bermuda Hospital’s Board Amendment Act 2013, also approved, will require hospital fee changes to be subject to debate in the House of Assembly.

Corporate Service Providers are to pay a six percent tax on their gross fee revenue, up from four percent, with the passage of the Corporate Services Tax Amendment Act 2013.

But Senators approved pensions increases of between one and 5.5 percent for civil servants and legislators with the passage of The Pensions (Increase) Order 2013 and The Pensions (Public Service Superannuation Act 1981) (Increase) Order 2013.

The Upper Chamber also approved a five percent increase in fees for a number of maritime services to offset the costs of the services.

Marine Board (Light Toll) Regulations, Marine Board (Seaborne Services) Regulations, Marine Board (Pilotage Dues) Amendment Regulations and the Marine and Ports Authority (Port Dues) Amendment Regulations were all approved.

Also passed was the Customs Tariff Amendment Act 2013, intended to streamline complex duty charging provisions for imported goods while encouraging the development of business with duty relief.

It is also expected to increase duty revenue by around $2 million annually by increasing the cost of importing cigarettes, beer, wines and spirits.

The Government Fees Amendment (No 2) Regulations 2013 was also passed, intended to fund the Regulatory Authority, which commenced operations on January 28.

Service providers will pay a consolidated fee of 3.8 percent of relevant turnover, paid every quarter, with 1.75 percent going toward the regulatory authority.

And the measures set the stage for the new Integrated Communications Operator Licenses.

Senators also rubber-stamped the Criminal Code Amendment Act 2013 to give the Chief Justice the ability to make rules applicable to indictable offences without immediately requiring the approval of the House.

And non Bermudians wanting to purchase local property will now see their license fees slashed from 25 percent of the property’s value to eight percent for the next 18 months, when the fee will be 12.5 percent, with the passage of the Bermuda Immigration and Protection (Land Holding Charges) Amendment Regulations 2013.

Purchasers of condominiums not use for tourist purposes will see their fees reduced to six percent from 18 percent, increasing to eight percent in 18 months.

Senators also approved of changes to the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 to ensure that Bermuda’s regime was consistent and complaint with OECD recommended international tax information exchange standards.

The measures were also aimed at ensuring that the Island has strong controls over legal entities.