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2018/19 SESSION of the BERMUDA HOUSE OF ASSEMBLY OFFICIAL HANSARD REPORT 1 November 2019 Sitting number 30 of the 2018/19 Session (pages 2535–2598) Hon. Dennis P. Lister, Jr., JP, MP Speaker Disclaimer: The electronic version of the Official Hansard Report is for informational purposes only. The printed version remains the official record. Official Hansard Report 1 November 2019 2535 BERMUDA HOUSE OF ASSEMBLY OFFICIAL HANSARD REPORT 1 NOVEMBER 2019 10:08 AM Sitting Number 30 of the 2018/19 Session [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] PENSION COMMISSION ANNUAL REPORT FOR THE YEARS 2011 TO 2017 PRAYERS Hon. Curtis L. Dickinson: Mr. Speaker, I have the [Prayers read by Mrs. Shernette Wolffe, Clerk] honour to attach and submit for the information of the Honourable House of Assembly the Pension Commis- The Speaker: Good morning, Members. sion Annual Report for the years 2011 to 2017. Thank you. [Gavel] The Speaker: Thank you. CONFIRMATION OF MINUTES The next paper this morning is in the name of [Minutes of 27 September 2019] the Minister of Health. Minister. th The Speaker: Members, the Minutes from the 27 of September have been circulated. Hon. Kim N. Wilson: Good morning, Mr. Speaker. Are there any corrections or omissions? There are none. The Speaker: Good morning. The Minutes will be confirmed as printed. BERMUDA HEALTH COUNCIL ANNUAL REPORT [Minutes of 27 September 2019 confirmed] FOR THE YEAR 2018/19 MESSAGES FROM THE GOVERNOR Hon. Kim N. Wilson: Mr. Speaker, I have the honour to attach and submit for the information of the Hon- ourable House of Assembly the Bermuda Health The Speaker: There are none. Council Annual Report for the year 2018/19. ANNOUNCEMENTS BY THE SPEAKER The Speaker: Thank you. OR MEMBER PRESIDING And the third is in the name of the Minister of Education. The Speaker: There are none. Minister. MESSAGES FROM THE SENATE Hon. Diallo V. S. Rabain: Good morning, Mr. Speak- er. The Speaker: There are none. The Speaker: Good morning. PAPERS AND OTHER COMMUNICATIONS TO THE HOUSE CHARTER PROFESSIONAL ACCOUNTANTS OF BERMUDA AMENDMENT BY-LAWS 2019 The Speaker: We have three papers this morning to Hon. Diallo V. S. Rabain: I have the honour to attach be communicated to the House. and submit for the information of the Honourable The first is in the name of the Minister of Fi- House of Assembly the Charter Professional Ac- nance. countants of Bermuda Amendment By-Laws 2019. Minister. The Speaker: Thank you. Hon. Curtis L. Dickinson: Good morning, Mr. Speaker. PETITIONS The Speaker: Good morning. The Speaker: There are none. Bermuda House of Assembly 2536 1 November 2019 Official Hansard Report STATEMENTS BY MINISTERS will be advised of the location of the commission’s AND JUNIOR MINISTERS offices, their contact details and the commission’s procedure, next week. On behalf of the Government and the people of Bermuda, I am extremely grateful to The Speaker: This morning we have some nine Statements to be delivered. The first Statement is in the chairman and members for agreeing to serve and to conduct this important work. the name of the Premier. 1 Premier, would you like to present your Mr. Speaker, my comments in [ June] bear Statement? repeating, and I quote: “Truth can be uncomfortable. Unearthing historic wrongs may be inconvenient for some. But, Mr. Speaker, it is never too late for jus- Hon. E. David Burt: Yes, Mr. Speaker, I shall. Good morning to you, Mr. Speaker. tice.” Thank you, Mr. Speaker. The Speaker: Good morning. The Speaker: Thank you, Premier. The second Statement this morning is in the APPOINTMENT OF MEMBERS TO THE name of the Minister of Finance. COMMISSION OF INQUIRY INTO LOSS AND Minister. DISPOSSESSION OF PROPERTY AND RECOMMENDATIONS FOR VICTIMS OF WRONGFUL ACTION GOVERNMENT GUARANTEE HOTELCO BERMUDA HOLDING LTD. Hon. E. David Burt: Mr. Speaker, Honourable Mem- bers will recall that I advised this Honourable House Hon. Curtis L. Dickinson: Mr. Speaker, in accord- on the 31st of May of my intention to establish a ance with section 2AA(3) of the Government Loans Commission of Inquiry to fulfil the mandate of this Act 1978, I rise to inform this Honourable House of the House as expressed in its Resolution on the 4th of July execution of a Government Guarantee on behalf of 2014. Honourable Members will similarly recall that Hotelco Bermuda Holding Ltd., part of the Hotelco this now forms part of the legacy of the late Honoura- International group of companies, in relation to loans ble Member, Walton Brown, who was its champion. to finance the development costs and related expens- Mr. Speaker, it is in our late colleague’s hon- es associated with the construction of the proposed our that I am pleased today to advise this Honourable St. Regis Bermuda Hotel in St. George’s. This is in- House of the members appointed to this important deed a historic project for the tourism industry, the St. commission. George's community and Bermuda as a whole. Mr. Speaker, Bermuda is privileged to have Mr. Speaker, Honourable Members will recall lured out of retirement Mrs. Justice Norma Wade- that the previous Government signed a master devel- Miller, who has agreed to serve as the commission’s opment agreement [MDA] with Hotelco Bermuda chairman. Members appointed are as follows: Holding Ltd., which was followed by a ground- breaking ceremony that took place on May the 4th, • Honourable Wayne Perinchief, a former 2017. Member of this House, Minister of National Mr. Speaker, just to provide Honourable Security and Assistant Commissioner of Po- Members with a little bit of background on the Hotelco lice; Group: The origin of Hotelco goes back 60 years, • Ms. Lynda Milligan-Whyte, senior counsel when it started in Venezuela as a construction com- practicing at the Bermuda Bar; pany and real estate developer of housing and com- • Mr. Quinton Stovell, a prominent quantity sur- mercial projects. The company went international at veyor; the beginning of the 2000s. In the 1990s, the compa- • Ms. Frederica Forth, a former banking execu- ny switched the main focus of its business to the de- tive and an experienced realtor; velopment and direct construction of hotel properties. • Mrs. Maxine Binns, consultant legal counsel Hotelco has built five hotels with a total of 1,160 within the Business Development Unit; and rooms, all of them operated by Marriott International • Mr. Jonathan Starling, Economic & Coopera- under its various brands. The portfolio of current de- tive Development Officer within the Bermuda velopments of Hotelco includes a Ritz Carlton Resort Economic Development Corporation. in Providenciales, Turks and Caicos Islands (129 Mr. Speaker, I am also pleased to advise the rooms and 72 residences), a St. Regis Hotel and resi- House that senior civil servant Ms. Marva-Jean dences in Aruba (127 rooms and 56 residences) and O’Brien, most recently Permanent Secretary in the the St. Regis Resort in Bermuda (120 rooms and 102 Ministry of Legal Affairs, has been seconded as secre- residences). It is the philosophy of the company to tary to the commission. hold the ownership of the hotels for the long run. Mr. Speaker, now that the commission has been appointed, Honourable Members and the public 1 Official Hansard Report, 7 June 2019, page 1742 Bermuda House of Assembly Official Hansard Report 1 November 2019 2537 Mr. Speaker, the Government gave an under- PENSION COMMISSION ANNUAL REPORT FOR taking to support the financing of this project by THE YEARS 2011 TO 2017 providing a guarantee for up to $25 million of the es- timated project cost of $160 million. The developers Hon. Curtis L. Dickinson: Mr. Speaker, in accord- relied on this commitment when arranging the financ- ance with section 64(1) of the National Pension ing for this project, and it is only fair that the current Scheme (Occupational Pensions) Act 1998, [the Act], Government also honour this commitment. This pro- I am pleased to table the Pension Commission Annual ject has and continues to provide jobs for Bermudians Report for the years 2011 to 2017. in the construction phase, as well as jobs for Bermu- Mr. Speaker, Honourable Members will be dians once the facility becomes operational. aware that the National Pension Scheme (Occupa- Mr. Speaker, the guarantee provides that the tional Pensions) Act 1998 provides for the establish- Government cannot be legally required to fund more ment, administration and regulation of private occupa- than $25 million to repay the lender if Hotelco Bermu- tional pension plans for Bermudians. da Holding Ltd. is unable to perform their obligations Mr. Speaker, the Pension Commission re- to the lender. The financing being guaranteed is pro- ceived a clean audit on its financial statements for the vided under a loan [facility] maturing in 15 years. years 2011 to 2017. The Pension Commission has Mr. Speaker, it is important to note that the advised that delays in the submission of annual finan- Government will be compensated for providing the cial statements between 2011 and 2017 were initially guarantee. Also of note is the fact that, initially, the caused by resourcing issues at both the Office of the developer invested a greater sum of their own equity Auditor General and the Pension Commission. capital into the project, [which] is a sign of good faith Mr. Speaker, notwithstanding the delay in ta- and a show of confidence by the developers in the bling this annual report, as I mentioned previously, all viability of the project. audits were successfully completed with clean opin- Mr. Speaker, to be clear, the Government ions. I am pleased to advise that the commission’s guarantee is in relation to the bank loan and not the 2018 audit has been completed and the commission developer’s equity; therefore, the Government’s actual has received another clean opinion on its 2018 finan- contingent liability only exists in line with the bank cial statements.
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