Official Hansard Report

2018/19 SESSION of the

BERMUDA HOUSE OF ASSEMBLY

OFFICIAL HANSARD REPORT

7 December 2018 Sitting number 5 of the 2018/19 Session (pages 293–420)

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 7 December 2018 293

BERMUDA HOUSE OF ASSEMBLY

OFFICIAL HANSARD REPORT 7 DECEMBER 2018 10:03 AM Sitting Number 5 of the 2018/19 Session

[Hon. Dennis P. Lister, Jr., Speaker, in the Chair] Honourable House of Assembly the Bermuda Fiscal Responsibility Panel 2018 Annual Assessment. PRAYERS The Speaker: Thank you. [Prayers read by Mrs. Shernette Wolffe, Clerk] PETITIONS CONFIRMATION OF MINUTES [Minutes of 30 November 2018] The Speaker: There are none.

The Speaker: Members, the Minutes from the 30th of STATEMENTS BY November have been circulated. AND JUNIOR MINISTERS Are there any omissions or corrections? There are none. The Speaker: We have four Statements this morning. The Minutes have been confirmed. The first is in the name of the Honourable Premier. Premier, would you like to present your [Minutes of 30 November 2018 confirmed] Statement?

MESSAGES FROM THE GOVERNOR Hon. E. David Burt: Thank you. Good morning, Mr. Speaker. The Speaker: There are none. The Speaker: Good morning. ANNOUNCEMENTS BY THE SPEAKER OR MEMBER PRESIDING THE 2018 JOINT MINISTERIAL COUNCIL AND RELATED MEETINGS IN THE UK AND EUROPE

APOLOGIES Mr. Speaker, I am pleased to Hon. E. David Burt: provide an update to this House and the public on my The Speaker: The announcement this morning is that we have been informed that Minister De Silva will be meetings in the United Kingdom and Europe, includ- absent, as he is off the Island today. ing the annual Joint Ministerial Council with the United And I have only just been informed the MP Kingdom Government. Weeks will be out because he is ill today. Mr. Speaker, the development of business opportunities for Bermuda in London was the focus of MESSAGES FROM THE SENATE my first three days of the trip where I was able to support the Bermuda Business Development Agency London Executive Forum, the Bermuda FinTech Fo- The Speaker: There are none. rum, and Beyond Convergence hosted by ILS Bermu- da. In addition to participating in the events, I hosted a PAPERS AND OTHER number of meetings with persons interested in invest- COMMUNICATIONS TO THE HOUSE ing in Bermuda. Mr. Speaker, Bermuda continues to translate The Speaker: There is one paper this morning in the its excellent reputation into economic growth. Eric name of the Minister of Finance. Bertrand, founding partner of Centaur Fund Services, Minister. praised the BDA [Bermuda Business Development Agency] forum—his first as an industry participant— BERMUDA FISCAL RESPONSIBILITY PANEL where he spoke on a panel about innovative trends in 2018 ANNUAL ASSESSMENT alternative assets. Mr. Bertrand said, “In 2015 when we decided Hon. Curtis L. Dickinson: Mr. Speaker, I have the to establish an offshore jurisdiction, we had options, honour to attach and submit for the information of the but we decided Bermuda was the place for us to do Bermuda House of Assembly 294 7 December 2018 Official Hansard Report our business. Three years later, we’ve grown from [Desk thumping] one to 16 people in our Hamilton offices—so, it proves our point.” He went on to continue to say, Mr. Speak- Hon. E. David Burt: Mr. Speaker, Honourable Mem- er, and I quote, “I wanted to share our story that Ber- bers will be aware of the considerable consultation muda is a jurisdiction of choice and a great place in and technical efforts that have been devoted to ad- which to complete a global presence. We have sever- dressing the issue of our assessment by the EU Code al offices around the world, but Bermuda is a very im- of Conduct Group, as it looks to create a list of non- portant one for us.” cooperative jurisdictions for tax purposes. A principal Mr. Speaker, last Tuesday, along with Bermu- focus of my time in Europe was to engage at the polit- dian insurance pioneer, Brian Duperreault, I partici- ical level of the European Union to build relationships pated in the opening panel at the Bermuda FinTech in Brussels for Bermuda. Forum. The forum attracted investors, tech industry Mr. Speaker, discussions were held with EU professionals, support industries and leaders of sev- Permanent Representatives in Brussels and tax atta- eral recent Bermuda start-ups. The discussion titled chés with the Governments of Slovenia, Malta, Lithu- “Innovation Island: Why Industry Pioneers Choose ania, Belgium, Switzerland, and Romania. The meet- Bermuda,” highlighted Bermuda’s history of innovation ing with the Romanian Ambassador to the EU was in insurance and compared Bermuda’s role in that critical in understanding the agenda for the Romanian industry’s evolution with the current disruption seen Presidency of the European Council from this Janu- with FinTech. ary, particularly as we prepare for the opening of our Mr. Speaker, I endorse the comments of the Brussels Office. CEO of the BMA [Bermuda Monetary Authority], Mr. The Romanian Ambassador and I had firm Jeremy Cox, who said, “London is an important mar- discussions not only on Bermuda’s assessment by the ket for Bermuda, so this offered us a great opportunity Code of Conduct Group, but in understanding the im- to educate, raise awareness, and answer in-depth mense challenges ahead for Romania in managing questions. The BMA was proud to participate in an the implications of the possible exit of the United initiative that raised Bermuda’s profile and under- Kingdom from the European Union. scored our world-class regulatory reputation.” Mr. Speaker, the consistent message deliv- Mr. Speaker, while overseas, I had the oppor- ered and conveyed to all EU Member States with tunity to host two networking receptions for Bermudi- whom I met is that Bermuda is a high-quality jurisdic- ans living in the United Kingdom, organised by the tion which has been a leader in global tax transparen- London Office. The first event was the annual net- cy. working reception in London. It is an opportunity for Mr. Speaker, following my meetings in Brus- Bermudians to network amongst themselves and with sels, I returned to London. And it is important to renew the industry participants who attended the BDA forum “Bermuda friendships.” In this regard, I had the oppor- and, at the same time, engage directly with myself on tunity to re-engage with key stakeholders of the UK the issues they feel are crucial. Houses of Parliament through a meeting with the Brit- The second event was a result of a promise I ain–Bermuda All Party Parliamentary Group. Together made last year to reach out to those Bermudians fur- with the Chair, Sir David Amess MP, and the Bermuda ther north. The event was held in Nottingham, the first London Office, a programme of key engagement of an annual series in different locations outside of events with the All Party Parliamentary Group have London. I was honoured to see Bermudians still very now been agreed and began with this initial meeting. much connected to their home and remaining in con- These scheduled events were developed with a view tact with Bermudians across the United Kingdom, to cultivating an accurate understanding of Bermuda supporting each other on a daily basis. and where we see our agenda for the future— What was most gratifying about the interac- essentially, making our friends before we need them. tions, Mr. Speaker, is that a vast majority of Bermudi- Mr. Speaker, Honourable Members will be ans living in the United Kingdom planned on returning aware that the UK Government organises an annual to Bermuda after they completed their studies and meeting for the leaders of the Overseas Territories to skills training. I pledged that the Government will exe- engage with Ministers on points of mutual interest. Mr. cute its plans to ensure that there is a place for them Speaker, I was joined by the Honourable Member, the here when they return home. Minister for the Cabinet Office. The council was Mr. Speaker, the London office will take extra chaired by Minister of State for the Foreign & Com- steps to ensure that they are available to those in the monwealth Office, Lord Ahmad, of Wimbledon. United Kingdom as far as Scotland and even through- Mr. Speaker, Honourable Members will also out Europe. In addition to these annual networking be aware of the significant political issues unfolding events, the London Office will provide open walk-in daily in the United Kingdom. In an effort to provide Consular Days in various locations across the United information to the Overseas Territories, the Joint Min- Kingdom, starting in the New Year. isterial Council heard from the Parliamentary Under Secretary of State, at the Department for Exiting the Bermuda House of Assembly Official Hansard Report 7 December 2018 295

European Union, Robin Walker MP. With the ongoing Deputy Premier, would you like to present uncertainty surrounding virtually every aspect of the your Statement? Brexit debate, the impact of the UK leaving the EU on the Overseas Territories will continue to be monitored Hon. Walter H. Roban: Thank you, Mr. Speaker. by this Government, and Bermuda made ready for Good morning to everyone. Good morning to Bermu- any scenario. da. Minister Robin Walker assured leaders that the UK is obligated under the Constitution to set the The Speaker: Good morning. framework which works for the entire UK family including the Overseas Territories, and to take into account INVESTIGATING COMPLAINTS any current relationship with the EU. OF PRICE GOUGING Mr. Speaker, following the debate and vote in the UK Parliament next week, I may be better placed Hon. Walter H. Roban: Mr. Speaker, I rise to highlight to update Honourable Members and the public on is- Consumer Affairs’ efforts to investigate complaints sues related to free movement throughout the EU, from the public regarding alleged price gouging. continued access to the Schengen Area as British Mr. Speaker, Consumer Affairs has received a Overseas Territories citizens, and the impact, if any, number of complaints about the hike in prices of cer- on those Bermudians who possess a British Citizen- tain staples. Persons have complained that some food ship passport. Initial indications are that those Bermu- retailers have tried to blame the rise in the prices on dians who do possess a British Citizenship passport the new sugar tax for goods that are not covered un- will be subject to the terms of the withdrawal agree- der the tax. Similarly, persons have also sent me pic- ment, whether the deal is passed through the UK Par- tures of fresh vegetables with prices that appear to be liament or a no-deal scenario arises with no arrange- exorbitant. Unfortunately, with the higher seasonal ments in place. In a no-deal scenario, contingency demand on certain goods, it seems that the prices of plans will be implemented by the UK Government, as certain items are always higher this time of the year. it will be their responsibility to their wider citizenry. This year, as has been true in recent years, some Mr. Speaker, on a weekly basis, Bermudians persons are having to forgo enjoying their traditional experience disruption to their travel arrangements as foods because they are finding it harder to make ends a result of the long-standing passport issue with which meet. Honourable Members are familiar. While at the JMC Mr. Speaker, Honourable Members and the [Joint Ministerial Council], Minister Brown held a pro- general public may not be aware that the Consumer ductive meeting with representatives of Her Majesty’s Protection Act 1999 (the Act) gives Consumer Affairs Passport Office, and we believe we have moved clos- the authority to investigate complaints of price goug- er to resolving the problem of Bermuda passports being. This comes under the heading of Part III, UNFAIR ing printed and issued in the United Kingdom. We had BUSINESS PRACTICES. Section 11(1)(b)(ii) of the firm assurance, this time at ministerial level, that the Act states the following: matter will be resolved. I will continue to press the “11(1) For the purposes of this Part the follow- United Kingdom Government on this issue until an ing shall be deemed to be unfair business practices— acceptable solution is in place. “(b) an unconscionable consumer representa- Mr. Speaker, this was my second attendance tion made in respect of a particular transaction and, in at the Joint Ministerial Council, and doing so against determining whether or not a consumer representation the backdrop of such a significant issue as Brexit rein- is unconscionable, there may be taken into account forced the necessity for Overseas Territories general- that the person making the representation or his em- ly, and Bermuda in particular, to continue the work to ployer or principal knows or ought to know . . .” diversify our economy and promote economic growth “(ii) that the price to be charged will grossly to the benefit of our people here at home. exceed the estimated or quoted price, or that the price The sustainability of our quality of life and the grossly exceeds the price at which similar goods or necessary improvement of the lives of our citizens are services are readily available to like consumers . . .” squarely our responsibility. Global trends and the Mr. Speaker, as you are aware, in Bermuda, competing political interests among the EU family of where we import the majority of our foods and materi- nations demand that local governments do all they als, it is often difficult to assess fair pricing. Rising can to insulate their economies, their communities food prices are a global issue and, as Bermuda is part and their development from these events, which are of the global economy, we are also affected. Pricing, far beyond our influence and control. however, is subject to many variables such as global Thank you, Mr. Speaker. market influences, natural disasters and conflicts, product volume and country of origin, negotiated The Speaker: Thank you, Mr. Premier. price, shipping, customs duty, taxes and local opera- The next Statement this morning is in the tional costs, to name a few. In addition, many of our name of the Deputy Premier. Bermuda House of Assembly 296 7 December 2018 Official Hansard Report items are shipped in smaller quantities, which drives The next Statement this morning is in the up the price per unit. name of the Honourable Minister Brown. As an example, you would have also been Minister. aware of the recent recall, right here in Bermuda, of romaine lettuce. A few days ago, there was a story on Hon. Walton Brown: Yes, good morning, Mr. Speak- the US news about the recall of certain beef products. er. The scarcity created by these recalls pushes up prices, particularly when they have to be purchased from The Speaker: Good morning. countries farther away than the United States. Be- cause of the greater distances, the cost of shipping UPDATE ON THE CODE OF PRACTICE FOR will also rise. PROJECT MANAGEMENT AND PROCUREMENT— Mr. Speaker, in addition to the costs to im- FRAMEWORK AGREEMENTS ported food, we must also take into consideration that retailers must add on a percentage to pay their staff Hon. Walton Brown: Mr. Speaker, I rise today to pro- and operating costs, and to earn a profit in order to vide an update to the Members of this Honourable keep them operating. This also applies to fresh pro- House and the people of Bermuda on the implementa- duce. Our farmers must also pay import costs for seed tion of the Code of Practice for Project Management and other supplies, in addition to paying staff and oth- and Procurement. In particular, I wish to focus on the er operating costs. work that is being undertaken to implement framework Mr. Speaker, we appreciate that Bermuda agreements. businesses are facing a shrinking market share, high- The Code of Practice for Project Management er operational cost and a decline in consumer spend- and Procurement was implemented on July 2, 2018. ing. But we must also remember that the high cost of Accordingly, the public service is now taking the nec- food contributes to the high cost of living, which im- essary steps to implement procurement strategies that pacts the quality of life for most of the general public. leverage the Government’s purchasing power, maxim- Honourable Members would be aware that a ise efficiencies and achieve cost savings. To this end, good indication of how the prices will impact spending the Government is identifying opportunities to aggre- on food is through the Consumer Price Index (CPI), gate purchases and negotiate favourable rates. provided monthly by the Department of Statistics. The Mr. Speaker, the code, in accordance with index for their food basket consists of 60 food items section 35, Framework Agreements, sets out condi- listed under the following 10 categories: tions for the use of framework agreements by public 1. Bakery Products; officers when the Government wishes to contract for 2. Cereals and Cereal Products; the provision of goods and services. 3. Dairy; Mr. Speaker, a framework agreement maxim- 4. Meats and Fish; ises economy, efficiency and effectiveness in pro- 5. Oils and Fats; curement. It consolidates the government’s buying 6. Fruit; power and gives public officers the flexibility to order 7. Vegetables; goods and services from private sector suppliers, 8. Sugar and Confectionary; without going through the full tender application pro- 9. Prepared Foods and Snacks; cess more than once during a defined period. This is 10. Non-Alcoholic Beverages. as opposed to each department and/or ministry under- The average annual increase of prices for taking a tendering process to acquire the same goods food since 2013 ranges from a low of 1.4 per cent to a and services for their individual shops. The adminis- high of 3.1 per cent as compared to income for most trative burden associated with the repetitive tendering consumers that either remains static, at best, or de- processes throughout government has proven to be creases, at worst. time- and cost-prohibitive and contributes to ongoing Mr. Speaker, it is incumbent upon us to be inefficiency. vigilant and informed consumers who will check prices Mr. Speaker, when setting up a framework, before buying; know which foods are in season; and, if the Government, via the Office of Project Manage- looking for fresh foods, support our local farmers. ment and Procurement, will run a full procurement Consumers can also question any exorbitant price exercise to select suitable suppliers, and set terms changes with store managers, because sometimes and prices for a period. The suppliers are awarded a the pricing may be the result of human error. place on the framework agreement, and individual Having said that, I want to assure the public departments and ministries will not have to engage in that Consumer Affairs will continue to investigate all any further tendering for the relevant product or ser- complaints of alleged price gouging, whether food or vice during the term of the agreement. services. Thank you. Mr. Speaker. Mr. Speaker, at present, framework agreements are being developed for the procurement of The Speaker: Thank you, Deputy. commodities such as office supplies, uniforms, tele- Bermuda House of Assembly Official Hansard Report 7 December 2018 297

communications services, and other standard operat- timally in a speedy and cost-effective manner, whilst ing products and services. maintaining good governance practices. Mr. Speaker, the Government will commence Mr. Speaker, this Government will continue to the implementation of framework agreements with focus on maintaining internal efficiency and effective- mobile devices and services. Mr. Speaker, in accord- ness by implementing processes and policies estab- ance with the code, several months ago, the Office of lished to drive accountability of all public officers. Our Project Management and Procurement used a revision is a future-forward Government for the people stricted tendering procurement method to solicit quo- of Bermuda. Thank you, Mr. Speaker. tations for the provision of a varied menu of mobile services. The objective of the solicitation was to se- The Speaker: Thank you, Minister. cure fixed and preferential pricing from the carriers. The final Statement this morning is in the Mr. Speaker, in response to the solicitation, name of the Minister of National Security. the relevant carriers developed specific packages, Minister, would you like to present your based upon the services required by the bulk of the Statement? Government’s mobile users. Each service package takes into account cost-saving initiatives such as the Hon. Wayne Caines: If it pleases you, Mr. Speaker. inclusion of overages in data usage management, a data provision to include free access to the Govern- The Speaker: Continue. ment and officially nominated sites, and the elimina- tion of charges for overages. In order to determine the ROYAL BERMUDA REGIMENT UPDATE optimal combinations of services and prices, as part of the tendering process, carriers were asked to submit Hon. Wayne Caines: Mr. Speaker, since my last up- their best and final offers. date on the Royal Bermuda Regiment four months Mr. Speaker, the terms of the framework ago, the Royal Bermuda Regiment has been hard at agreement are now being finalised, and it is expected work, focused on transforming into a modern-day or- that its use will provide for more efficient and cost- ganisation that is fit for purpose in Bermuda. I would effective purchases of mobile devices and services. like to provide this Honourable House with an update. The main purpose of this approach is to ensure that Mr. Speaker, after consultation with the Minis- consistent and cost-effective rates are applied, for the try of National Security and Government House, the benefit of all Government’s mobile users. Device Bermuda Regiment’s Strategic Review Working Group types will be standardised via bulk purchases of un- concluded its work and made several key recommen- locked devices, and devise usage will be managed in dations. The first of these recommendations is that the a further effort to control costs. Bermuda Regiment must redouble its efforts and in- Mr. Speaker, the Government expects that it vest in its people. To this end, the Regiment is reinforc- will have at least three framework agreements for var- ing its Training Wing so that its training is delivered to ious products and services in place by the end of this a higher standard, and externally validated where pos- fiscal year. The advantages to the Government of us- sible. Soldiers will pick up more qualifications and have ing framework agreements include less downtime be- greater opportunities to attend courses both locally and tween identifying a need and fulfilling it; a reduction in overseas. administrative costs, with the removal of the full pro- Secondly, Mr. Speaker, the Bermuda Regi- curement process for every requirement; and potential ment aspires to offer learning credits to soldiers who savings with economies of scale, in that suppliers may are in good standing, in order to further their education offer more competitive prices. and development. Growing the capability of the men Mr. Speaker, suppliers will also benefit from and women who make up the Regiment can only result the introduction of framework agreements with the in growth of the capability of the Regiment as a whole. reduction in the administrative burden, due to a Mr. Speaker, the third recommendation is that streamlined procedure in working with the Govern- the structure of the Regiment will change for the better ment. Mr. Speaker, framework agreements save time. to reflect its operational output and its volunteer status. This is especially true for relatively simple, frequently In November, the Regiment reduced from five to three repeated purchases, such as office supplies. Frame- companies, to form two operational companies of work agreements will allow the Government to choose about 100 soldiers each, supported by a Logistics suppliers that offer long-term value, so as to reduce Company and a Training Wing. Internal security in overall procurement costs and save internal re- support of the Bermuda Police Service is the focus of sources. The Government will also have certainty, as A Company, while B Company has a dual focus on prices are set for the duration of the term of the Humanitarian Aid and Disaster Relief, both locally and framework. overseas, and on ceremonial duties, including Band Mr. Speaker, framework agreements provide Displays. for the implementation of processes that promote Mr. Speaker, in the absence of any direct hits agility, enabling public officers to react and adapt op- by major storms during the just-concluded hurricane Bermuda House of Assembly 298 7 December 2018 Official Hansard Report season, the Regiment has been able to direct its focus Mr. Speaker, one of the benefits of joining the on enhanced training. There were two camps held this Royal Bermuda Regiment is gaining skills that can be fall. A Company, the Band and Signalers completed transferred to civilian life. Earlier this year, four Regi- the second half of their local camp in October. Over ment medics completed the St. John’s Ambulance the course of camp, A Company honed internal securi- Emergency Medical Responder course. These new ty drills, the Band participated in school engagements medics will complement the handful of doctors, nurses and the Signalers received on Island training from Brit- and emergency medical technicians already serving ish Army Signalers. The Boat Troop also held their within the Royal Bermuda Regiment. This fall, the two-week camp. Features of this year’s camp included medics attended the St. John’s Ambulance First Aid oil booming with RUBiS, navigation training, boarding Instructors Course. Having completed the Instructors drills and port security training. Course, the medics will be able to deliver the eight- Mr. Speaker, the Royal Bermuda Regiment hour St. John’s Ambulance First Aid Course to the en- continues to offer soldiers opportunities for military, tire Regiment in 2019. professional and personal development. During this Mr. Speaker, if you have been to any major period, soldiers and officers attended a variety of event in the lead-up to the holiday season, it would courses overseas. Three officers attended [courses at] have been impossible for you to miss the Royal Ber- the Defence Academy of the United Kingdom at Shriv- muda Regiment Band and Corps of Drums. Starting enham, with two completing the Advance Command with Remembrance Day observances in November, to and Staff Course, and one completing the Intermediate the annual Santa Clause Parade, various tree-lightings Command and Staff Course. Four soldiers successful- and walkabouts, the Band has been ever-present and ly completed the All Arms Basic Drill Course at Catter- in fine form. Furthermore, the Royal Bermuda Regi- ick, UK. One soldier will attend the Warrant Officer’s ment Band has been lending support to various school Course at the Caribbean Institute of Professional Mili- music programmes and, in turn, has benefited from 10 tary Education at the Moneague Training Camp in Ja- student bandsmen bolstering its ranks. maica. Mr. Speaker, 2018 has been a turning point for Mr. Speaker, this fall also saw the conclusion the Regiment with respect to the formal end of con- of the Junior Non-Commissioned Officers Cadre and scription. Looking forward, 2019 will be the year when the promotion of several soldiers. The cadre com- the seeds of change bear fruit. The renewed offer to prised two phases: a tactics phase, which concluded our soldiers of enhanced training, and increased edu- with a test exercise at Camp Lejeune, North Carolina, cation and development, will be a key feature. The in May; and the Defence Instructional Techniques Regiment will continue to market itself as a feasible phase, which concluded this fall. The cadre is the first long-term career, which will provide leadership and rank that a soldier can obtain. It teaches soldiers how management training for enlisted ranks and [junior of- to command, administer and teach a section of up to ficers]. 12 soldiers. In November, 14 soldiers completed the Mr. Speaker, in July 2018, the Regiment held course and were promoted to Lance Corporal. its first summer recruit camp. The recruit camp was the Mr. Speaker, additional promotions within the first camp run specifically for a platoon-sized intake Royal Bermuda Regiment included six soldiers pro- and aimed to cover less material, but to a higher moted to Corporal, five soldiers promoted to Sergeant standard. This model proved to be one of the most and three soldiers were promoted to Colour Sergeant. successful recruit camps in recent memory. In 2019, All promotions were recognised and celebrated at the the Regiment will follow up the two-intake model, with Commanding Officer’s Parade. These promotions are the first intake on February 17, 2019, and the second an excellent indicator of the dedication of Royal Ber- will be on June 30, 2019. Any person interested in join- muda Regiment soldiers to service to their country, ing can call the Bermuda Regiment number, 238- and to their own personal development. 1045—238-1045. Or, they can visit the Royal Bermuda Mr. Speaker, in addition to the military and Regiment’s website at www.rbr.bm. In 2019, the Reg- command courses offered to soldiers, the Royal Ber- iment will have in place a framework to recruit all year muda Regiment has been delivering a GED (General round, which will allow soldiers to start training imme- Education Diploma) course. There are currently 11 diately. soldiers participating. Four soldiers have already ob- Mr. Speaker, work continues to stand up the tained their GED certificate through the programme. much-anticipated Coast Guard Unit. The Regiment has The courses are taught at Warwick Camp by experi- taken possession of Watford House on Watford Island, enced instructors. In 2019, the Regiment intends to and, pending final approvals, a floating dock and fenc- expand the education and development opportunities ing will be installed. Early in the new year, a Royal Na- that are available to all of its soldiers. These subsi- vy training team will be on Island to review the work dised, further education opportunities make the Regi- done to ensure that the proposed training in the pipe- ment more attractive to potential recruits and, in turn, line is UK Maritime and Coast Guard Agency compli- produce higher-quality soldiers with demonstrated in- ant. The training team will also review implementation vestment in their own advancement. timelines for feasibility. It is the Regiment’s intent that Bermuda House of Assembly Official Hansard Report 7 December 2018 299

the new Coast Guard will work jointly with the Bermu- The Clerk: For number 1. da Police Service during the first year to enable training to be completed and for Coast Guard personnel to The Speaker: The second question is to the Premier gain experience. from the Member from constituency 10, MP Dunkley. Mr. Speaker, early in the New Year, the Royal Premier, again it is a written response. Bermuda Regiment will roll-out its five-year plan. The plan provides for a medium- and long-term roadmap Hon. E. David Burt: Thank you, Mr. Speaker. for realising the changes that the Bermuda Regiment As per the conversation that I just had and intends to make toward modernisation. Change will not pursuant to Standing Order 18(4), I shall defer the happen overnight, but the Royal Bermuda Regiment is answer of this question. up to the challenge. The Commanding Officer and his staff are motivated and committed to delivering a first- QUESTION: GOVERNMENT TRAVEL class Regiment that is able to quickly adapt and re- EXPENSES [Answer deferred] spond to the Island’s security and protection needs. Bermuda is a small and isolated island, and the Regi- Hon. Michael H. Dunkley: 1. Will the Honourable ment plays a central role in maintaining our autonomy Premier please provide to this Honourable House a and independence in the face of disaster and the un- complete list of any trip paid out of the consolidated known. fund that has been taken by any Government Member It is hoped that, in 2019, with the evolution of of Parliament or Government Senator from July 18th the Royal Bermuda Regiment Coast Guard, the Regi- 2017 through November 23rd 2018 inclusive of pur- ment will provide an even greater benefit and service pose of trip, travel destination and all costs associated to the people of Bermuda. with the trip in itemised fashion? Thank you, Mr. Speaker. The Speaker: Thank you. The Speaker: Thank you, Minister. And the third question is actually to the Minis- That brings us to a conclusion of the Ministeri- ter of National Security. al Statements for this morning. Minister of National Security, your question is from the Member Sylvan Richards. REPORTS OF COMMITTEES Hon. Wayne Caines: The answer was provided, Mr. The Speaker: There are none. Speaker.

QUESTION PERIOD The Speaker: They were provided?

Yes. The Speaker: There are three written [answers] be- Hon. Wayne Caines: fore us this morning. The first question this morning is from the Leader of the Opposition to the Honourable QUESTION: NUMBER OF WORK PERMITS AP- Premier. Each of these questions, I must stress, have PROVED SEPTEMBER, OCTOBER, just sought to have a written answer rather than an NOVEMBER 2018 oral answer on the floor. So, the first is to the Premier from the Opposi- Mr. Sylvan D. Richards, Jr.: 1. Would the Honoura- tion Leader. ble Minister please confirm for this Honourable House the number of work permits approved in the months of September, October and November 2018? Please Hon. E. David Burt: Thank you, Mr. Speaker. Mr. Speaker, pursuant to the conversation of provide a separate figure for each month. which you just had, and pursuant to Standing Order 18(4), I will defer the answering of this question. The Speaker: You have your answers? Thank you. That is all that was required because there QUESTION: FINTECH JOB CREATION were no oral responses required. IN BERMUDA [Answer deferred] So that now moves us on to the Statement

questions. That moves us on to questions on the Hon. L. Craig Cannonier: 1. Will the Honourable Premier please inform this Honourable House how Statements this morning. And again, we have Mem- many jobs have been created as a direct result of the bers who wish to ask questions in regard to the morn- forty-four (44) recently announced incorporated ing’s Statements. FinTech companies, the job titles and number of Ber- Premier, the first questions are to you. And mudians employed? the first one is from the Leader of the Opposition. And let me remind Members again that there is a 60-minute period for these questions. The Speaker: Okay. Bermuda House of Assembly 300 7 December 2018 Official Hansard Report

Leader of the Opposition, would you like to SUPPLEMENTARY put your question to the Premier on his visits and trips to the UK and Europe? Hon. L. Craig Cannonier: Taking that into consideration, further on down, I mentioned in a following para- QUESTION 1: THE 2018 JOINT MINISTERIAL graph it says “[when they have] completed their stud- COUNCIL AND RELATED MEETINGS ies and skills training.” Did the Premier find that the IN THE UK AND EUROPE studies and skills training that were going on with those whom he met with were they in fields that are Hon. L. Craig Cannonier: Good morning, and thank vibrant in Bermuda? Or were they in industries that we you, Mr. Speaker. do not have in Bermuda? On the back side of the first page, the Premier mentions the networking reception for Bermuda The Speaker: Thank you. abroad. And certainly, I am familiar with those. But in Premier. the last sentence of the third paragraph on this page, the Premier mentions that this was a time to “engage Hon. E. David Burt: Thank you, Mr. Speaker. directly . . . on issues they feel are crucial.” So, at this As the Opposition Leader could imagine, meeting, I was curious as to what were some of the there were a number of different students, mature and common themes of issues that were crucial to those young, who were studying different things and who who attended that, basing that also in a following par- were engaged in different activities. But there were a agraph, where he mentions that he will “execute . . . number who were involved in getting things in qualifi- plans to ensure that there is a place for them here cation in education, in nursing, in social services—all when they return . . . .” things which are, without question, necessary and required here in Bermuda. The Speaker: Thank you, Honourable Member. A number of the students of whom I met with Premier. have already contacted my office, will be scheduling meetings with either the Department of Workforce De- Hon. E. David Burt: I thank the Opposition Leader for velopment or [other] government departments to find his question. And I think what is most crucial for per- out how they can participate in internship pro- sons who are living overseas is whether or not there is grammes, going forward, as the Government of Ber- a place for them at home when they are ready to re- muda wants to make sure that we can recruit suitably turn. And a place for them at home when they are qualified Bermudians in these areas of particular in- ready to return, Mr. Speaker, involves a couple of terest, especially in the areas of education, social ser- things. Number one, it is the question of, without vices and, of course, health care provision. question, a job and opportunities to work. But also what is important is a place to live. The Speaker: Thank you. And the conversation of which I have had with Further supplementary or question? a number of young people is that they do not wish to Supplementary from the Opposition Whip. be living overseas independently for 10 years, and Honourable Member. then return home to live in the same room of which they grew up and in their parents’ house. And that is SUPPLEMENTARY something that is very clear, and that is something that we have understood to be an impediment to Ms. Susan E. Jackson: Thank you, Mr. Speaker, and some people wanting to return home. good morning. And that is the reason why, Mr. Speaker, in- Yes. I am just curious. I remember a couple of side of our Throne Speech we said that we will move weeks ago there was discussion about having interns ahead with plans to construct affordable student one- and internships in some of our overseas offices. So, bedroom apartments in the City of Hamilton, to enable having had a reception with young Bermudians and those young people who are overseas who wish to Bermudians living overseas, what is the most recent come back to Bermuda to get themselves a property development on the building up of internship pro- ladder to come back and contribute to their country, to grammes, in particular the opening of the Brussels give them the opportunity to do so. Office, which is on the third page of this Statement?

The Speaker: Thank you. [Inaudible interjection] Supplementary or new question? The Speaker: Yes, I was trying to ascertain the ques- Hon. L. Craig Cannonier: Supplementary, Mr. tion. Speaker. Ms. Susan E. Jackson: What is being done to pro- The Speaker: Supplementary. Continue. vide internships, which is a follow-up to a Statement Bermuda House of Assembly Official Hansard Report 7 December 2018 301

which you made earlier? What is being done for in- question, Have we made it very clear, specifically? ternships and building up an internship programme in For instance, one of those that we have made very the opening of the Brussels Office? clear, and you guys have made it clear, is that we have an issue with passports. But what were some of Hon. E. David Burt: Mr. Speaker, the Brussels Office those other very key issues that Bermuda is having, has not yet been opened. While I was in Brussels, I understanding that we have got these challenges with did have a chance to meet with Ms. Kimberley Dur- Brexit and the likes? rant, who runs the London operation, to view the space of which the proposal on the Brussels Office is The Speaker: Premier. supposed to be. Regarding the overall question of the intern- Hon. E. David Burt: I thank the Opposition Leader for ship programmes, which was announced in the his question. I think that the Bermuda Government Throne Speech . . . and I am very happy that Mem- has put forward its case very clearly. And, as the Op- bers opposite are referencing the Throne Speech and position Leader will know, we have the option to do the plans which were laid out in the Throne Speech. that every Wednesday when we go to Government Any future plans as to the implementation of those House. So, the interactions and activities which take particular issues which were laid out in the Throne place over at the Joint Ministerial Council [JMC] is an Speech will be shared with Honourable Members opportunity for Overseas Territories, in general, to go when they are complete. ahead and to put forward their issues. From the situation, however, of Brexit, the The Speaker: Thank you. issue of Brexit, really, Mr. Speaker, is a question of Supplementary, or new question? certainty. And it is unfortunate that there is so much uncertainty in the United Kingdom right now. And no Hon. L. Craig Cannonier: New question. one actually knows what will come of it. So, the hope and thought was that this Joint Ministerial Council, just The Speaker: New question. It is your second ques- like the pre-Joint Ministerial Council, which took place tion. Continue. earlier, would be able to provide us a measure of certainty so that we can actually begin to plan effectively. QUESTION 2: THE 2018 JOINT MINISTERIAL But what we saw are Ministers who were COUNCIL AND RELATED MEETINGS scheduled to be at the JMC being called out, the IN THE UK AND EUROPE meeting with the Prime Minister had to be postponed because there was a series of votes that took place in Hon. L. Craig Cannonier: Yes, second question. the UK Parliament. So, it was a very tumultuous time. On the last page, the Premier mentions that What I would say is that, from the perspective “Minister [Robin] Walker assured leaders that the UK of the Government of Bermuda, what is important is is obligated under the Constitution to set the frame- certainty. We want to make sure that our students work which works”—and I want to emphasise this— who are living overseas or Bermudians who are living “for the [entire] UK family including the Overseas Ter- overseas, whether they be in Europe or in the United ritories . . . .” Has the Premier outlined to Mr. Walker, Kingdom, have the opportunity to continue that. We to London, what is important to Bermuda and what are want to make sure that our access to home fees, our issues? What is important? which these people have in the United Kingdom, does continue. The Speaker: Premier. There was a question as to whether or not that may or may not happen. That has now been clari- Hon. E. David Burt: Could I ask the Opposition fied. Leader to clarify the question? And so, from those perspectives, we relay these particular items. But, the Bermuda Government, Hon. L. Craig Cannonier: Sure. as an overall perspective, does not have that many Oh . . . Sorry. concerns with Brexit, because unlike other Overseas Territories, whether they be those that are inside of The Speaker: No. Go ahead. the EU themselves, like Gibraltar, or others that actually receive direct assistance from the European Un- Hon. L. Craig Cannonier: Certainly. If you go back ion such as we do not receive, it is not as big of a deal over to the (they are not numbered, the pages). “With for Bermuda as it is for a lot of the other Overseas the ongoing uncertainty surrounding virtually every Territories, Mr. Speaker. aspect of the Brexit debate, the impact of the UK leaving the EU on the Overseas Territories will continue to The Speaker: Thank you, Premier. be monitored by this Government, and Bermuda New question or supplementary? made ready for any scenario.” So, I was asking the Bermuda House of Assembly 302 7 December 2018 Official Hansard Report

Hon. L. Craig Cannonier: New question. POINT OF ORDER [Misleading] The Speaker: Third question, your last question. Yes. Hon. Patricia J. Gordon-Pamplin: The Honourable QUESTION 3: THE 2018 JOINT MINISTERIAL Member is misleading the House. COUNCIL AND RELATED MEETINGS The issue with respect to overseas passports IN THE UK AND EUROPE was definitely something for which we had the eye on the ball. It was an issue in which it was only in 2016 Hon. L. Craig Cannonier: Yes, yes. that the UK assumed the processing of the passports. The following paragraph mentions the issue It was towards the end of that year that we were made with the passport office. And I was just curious as to–– aware of some of the practical challenges. And imme- we know how overseas offices can be a bit lethargic in diately, we commenced dealing with the passport is- getting to things, especially when it comes to Over- sue through the HMPO [Her Majesty’s Passport Of- seas Territories and their challenges. fice]. I was curious with the Bermuda passport is- So, for the Honourable Member to say that sue here. Was there a timeline given by the office as . . . yes, they inherited it. But it was something that to when they would resolve this particular issue? Or is was newly developing. And we were never made it just still open-ended? aware of the extent and the gravity of the challenge during the short period of time between the taking- Hon. E. David Burt: No timeline was given. over of the passport issue by the UK HMPO and the change in the government. The Speaker: (Deputy? Sergeant? Oh, okay. All right. Did not want you to walk the wrong way.) [Inaudible interjections] Supplementary? Hon. E. David Burt: And, Mr. Speaker, I appreciate Ms. Susan E. Jackson: Yes. the Honourable Member’s intervention, her point of order. The Speaker: Yes. I do not accept it, as the United Kingdom Government gave consultation to the former Govern- SUPPLEMENTARY ment in advance of the decision, and those particular items were not followed up on to identify the challeng- Ms. Susan E. Jackson: My question is, Can you es of which would arise. please tell us what some of the proposed solutions are, as you move closer to resolving the problem of An Hon. Member: Aha! Aha! Bermuda passports? Hon. Patricia J. Gordon-Pamplin: Point of order, Mr. The Speaker: Premier. Speaker.

Hon. E. David Burt: Thank you very much. The Speaker: We will take a short point of order. I am happy to outline for the Honourable Member what some of the proposed solutions are. Hon. Patricia J. Gordon-Pamplin: Yes. The issue is that, unfortunately, and I am not trying to throw stones here, Mr. Speaker. But it is a POINT OF ORDER fact that this was a matter that we inherited. And if the [Misleading] former Government had had their eyes on the ball, we probably would not have gotten to this point where we Hon. Patricia J. Gordon-Pamplin: I think it is im- find ourselves, trying to clear up an issue that there portant to understand. The Honourable Member per- was previous consultation for— haps, may be inadvertently, misleading the House. The issue with respect to the challenges that [Desk thumping] were created came after the fact by virtue of the new passports having changed the BMU designation on Hon. E. David Burt: —that there was— the passport to GBR. And that is where the issue came. And it was well after the fact that we actually Hon. Patricia J. Gordon-Pamplin: Point of order, Mr. were made aware that this was creating a challenge. Speaker. The Speaker: Continue on, Premier. Hon. E. David Burt: —previous consultation for— Hon. E. David Burt: Mr. Speaker, I will say it one The Speaker: Point of order. more time. That consultation came from the United Bermuda House of Assembly Official Hansard Report 7 December 2018 303

Kingdom Government regarding this particular issue. tional Civil Aviation Organization], who basically state And if the former Government had their eye on the that the coding of passports to make sure that a reso- ball regarding the types of things that would happen lution of this particular issue can be found, Mr. Speak- and the changes to the passports which may have er. existed, this problem may have been able to be ad- I take it very seriously because I, like many dressed previously, as opposed to after the fact. others, are the ones who get the calls where people Because what we are dealing with, as the are stuck overseas, cannot get back, our young peo- Honourable Member has said, is a simple matter of ple and all the rest. And I do not accept that, for us coding. However, this was not done. So, when the who no longer have the ability to print our passports, problems occurred, which should have been identified to be stuck in a position where the rights of which we before they started happening if people were paying have negotiated ourselves cannot be exercised be- attention at that time . . . we now find ourselves in an cause the United Kingdom has decided to do some- issue that we have inherited. thing which is not in our national interest. Regarding this particular issue, what was done is investigation into what IT solutions are there. The Speaker: Thank you. And specifically, the challenge of this numbering, this letter, this coding issue is one that the Minister who Hon. Patricia J. Gordon-Pamplin: Supplementary, has responsibility for the Cabinet Office, has intent, Mr. Speaker. has lots of detail with. I am happy to defer to him if Members would like to have additional questions. Or if The Speaker: Supplementary? We will take your they wish to ask additional questions— supplementary.

The Speaker: No. They will have an opportunity to SUPPLEMENTARY put further questions at a later time. Hon. Patricia J. Gordon-Pamplin: Yes. Mr. Speaker, Hon. E. David Burt: Absolutely. the supplementary question that I have is, with the But I think here is the thing that is most im- Minister indicating that somebody took their eye off portant. What is most important is that on this particu- the ball, in his response, would the Minister agree— lar coding issue, we have sought to make sure that the code can be changed. And, last year, there was a An Hon. Member: It was you! discussion that said, from Her Majesty’s Passport Of- fice, that, Yes, we will try to do it. What happened [Inaudible interjections] was, this year we got the same—and I will be very blunt inside this House—we got the same techno- The Speaker: Members! speak from the same technical officers. I, in the Joint Ministerial Council, Mr. Speaker, said that this was not Hon. Patricia J. Gordon-Pamplin: Will the Minister good enough. And I challenged the Minister with re- agree that the communication with the Immigration sponsibility for the Overseas Territories to do some- Department and the technical officers who were mak- thing about the issue. ing those interchanges with the HMPO, that the only This is not something that is the fault of any item that was identified as being different was the fact particular Bermudian. The fact is that, despite the fact that, for security reasons, the new passports would that people were not paying attention to what should have biometric capabilities? And secondly, the only have happened at that point in time, we find ourselves other thing that was different was that the passports in the position where we have the ability to enter the would be printed overseas? And would the Minister United States without requesting a visa waiver, but we answer the question as to whether he expected us to cannot apply for an ESTA [Electronic System for have a crystal ball with respect to the coding issue, Travel Authorization] because we are not eligible for the BMU versus the GBR? applying for one. It is a situation which has us in a legal no-man’s-land, and it cannot be allowed to contin- An Hon. Member: Yes. ue! And what I said was I cannot accept, where [Inaudible interjections] we have people who are being stuck, our young people, overseas from getting back, a technocratic an- The Speaker: Premier. swer to say that we will continue to examine the issue. The answer was no. The Minister heard me very Hon. E. David Burt: Mr. Speaker, what I would ex- forcefully. The Minister said that he will make sure that pect from any Government is for them to be thorough, he delivers on the promise. But in addition to that, he to examine the issue and to make sure that they have will use his additional influence of which he has with a full understanding of the changes. So, when they the international organisations, such as ICAO [Interna- are asked about what may happen, they can at least Bermuda House of Assembly 304 7 December 2018 Official Hansard Report answer the question. They did not do that. We have The Speaker: You had two points of order. You did this particular situation. We are working to resolve it. do one supplementary. And it is my hope, after the political . . . the commitments that were given at the ministerial level, that this Hon. Patricia J. Gordon-Pamplin: I had one sup- issue will finally be addressed. plementary.

The Speaker: Thank you. The Speaker: Okay. One more supplementary, yes. Supplementary? The Clerk: There is one supplementary. Ms. Susan E. Jackson: Yes, Mr. Speaker. It is not even a supplementary. I would just like to bring— SUPPLEMENTARY

The Speaker: Well, if it is not a supplementary and it Hon. Patricia J. Gordon-Pamplin: Yes. is not a question, I cannot take it at this time. It has My second supplementary, based on the got to be one or the other. You are only entitled to a Premier’s response, is, Is he aware of the fact that the supplementary, actually, because you have not put a PS [Permanent Secretary] for Immigration, as well as question. the Chief Immigration Officer, have actually expended tremendous interactions, consultations and communi- Ms. Susan E. Jackson: My question was not an- cations with HMPO, starting from 2017? swered, Mr. Speaker. My supplementary was not answered the first time, which was, What are the pro- The Speaker: Premier. posed solutions to this problem? Closer to the resolving the problems of Bermuda passports, what are the Hon. E. David Burt: Again, Mr. Speaker, the Honour- proposed solutions? This was the first supplementary able Member is making the point. Prevention is better question I asked before that little diversion. than cure. If you dealt with the issue before it happened, then you would not be having to follow up after The Speaker: Premier, would you like to restate what the change has already been implemented. you said earlier? The Speaker: Thank you, Premier. Hon. E. David Burt: I will state it one more time. The Supplementary? Supplementary, yes. proposed solution is to do what the former Govern- ment should have had done the first time—make sure SUPPLEMENTARY the coding in the passports for Bermudians is correct! Hon. Michael H. Dunkley: Thank you, Mr. Speaker. The Speaker: Thank you. the Honourable Premier said Bermuda does Supplementary? not have many concerns with Brexit. The concerns that have previously been stated to the UK— SUPPLEMENTARY employment, travel, residence and business—are they still on the table? Ms. Susan E. Jackson: Yes. So, I would like to know how the Government proposes to do that, changing The Speaker: Premier. the codes, and what is going to be the cost? Hon. E. David Burt: It is difficult to understand what The Speaker: Premier. the concerns may be, as we do not understand what may happen in the case of Brexit. What will happen Hon. E. David Burt: Mr. Speaker, the cost has not yet with British citizens and the persons who are holding been determined. What I can state for the record is the passports, as I indicated in my Statement, is that that the Minister for the Overseas Territories has giv- they will be treated the exact same way. If there is an en his commitment to examine. The cost may be as issue of a no-deal, then there is a question as to, little as $1,000. We do not yet know. But now, be- number one, what will be rights of British citizens who cause of the work of this Government, we actually are living overseas? And number two, what will be the have firm political commitment at the ministerial level, rights of British Overseas Territory citizen [BOTC] which was lacking before. passport holders overseas? Until we understand precisely what Brexit will be, then we do not know. The Speaker: Thank you. Under the draft withdrawal agreement, most of our concerns will be addressed. Persons who are Hon. Patricia J. Gordon-Pamplin: Supplementary. I living overseas currently in the European Union, who had a point of order before. This is a supplementary. are holders of British citizen passports or BOTC passports, will be able to remain and to stay. However, if Bermuda House of Assembly Official Hansard Report 7 December 2018 305

there is a no-deal scenario where there is no actual Hon. Patricia J. Gordon-Pamplin: Because, follow- agreement, and the United Kingdom crashes out, then ing that discussion, as the Premier did not have the there may be challenges there. crystal ball to see what had been done, following that As I indicated inside of my Statement, the Brit- discussion, will the Premier admit, or will the Premier ish Government is making contingency plans should accept that the results from those discussions were that happen, and it remains to be seen. And I think we held with the then Minister responsible for Immigration will have more clarity after next week. to advise that we had had the meeting with the Brit- ain–Bermuda All Party Parliamentary Group, and that The Speaker: Thank you. they were going to be looking into a resolution to the No more supplementaries? passport issue? And that conversation would have Premier, you have additional questions from been had in March of 2018. other Members who would like to put questions directly. And the next is from the Member from constituen- The Speaker: Mr. Premier. cy 23. Honourable Member, do you still have a ques- Hon. E. David Burt: I am trying to understand if the tion you would like to put? Member is asking me to confirm that a meeting took place in March 2018. I am really not trying . . . I am Hon. Patricia J. Gordon-Pamplin: Yes. Thank you, not following. And I am also a little bit confused as to Mr. Speaker. how we are talking about things in 2018, when we are the Government and . . . I am not following, Mr. The Speaker: Go ahead. Speaker. I am sorry.

QUESTION 1: THE 2018 JOINT MINISTERIAL The Speaker: I will give you a brief moment to clarify. COUNCIL AND RELATED MEETINGS IN THE UK AND EUROPE Hon. Patricia J. Gordon-Pamplin: Thank you. Just to try to clarify, just to try and clarify. Hon. Patricia J. Gordon-Pamplin: Mr. Speaker, In January of 2018, the Public Accounts based on the paragraph (the pages are unnumbered, Committee [PAC], in its entirety, attended the . . . the but I will flip it) on page 3, the Premier indicated that Public Accounts Committee, in January of 2018, un- he met with the Britain–Bermuda All Party Parliamen- der the PLP administration, with I as the Chair, at- tary Group, with its Chair, and they discussed, obvi- tended, in its entirety, for some training sessions in ously, the challenges that we are having. And he the UK. As part of that training session, we had a talked about making friends before we need them. meeting, a luncheon, in fact—probably the same The passport issue . . . I wonder if the Premier menu that you had—with the Britain–Bermuda All Par- can advise whether the discussions with the Britain– ty Parliamentary Group, at which time the issue of Bermuda All Party Parliamentary Group revealed to passports and the challenges relating thereto were him that similar discussions were had with the Public discussed. Accounts Committee in January of 2018 in front of that same group, highlighting in detail the very same The Speaker: So, now that I am following you, your problems that they committed to address? question to the Premier is, when he met with that same body of people, did they indicate that they had The Speaker: Mr. Premier. spoken to your body [of people] prior?

Hon. E. David Burt: I am a little bit lost with the ques- Hon. Patricia J. Gordon-Pamplin: No. He already tion. I will just say that, at the lunch with the All Party indicated, he already said that he had not. But my Parliamentary Group, there was no discussion of question further is, my supplementary question is–– passports. the then Minister for Immigration, who has now moved to a different area, had conversations with us, with The Speaker: Thank you. me, subsequent to that meeting, and that nothing fur- New question or supplementary? ther appears to have been in respect of a resolution to the passport issue. Hon. Patricia J. Gordon-Pamplin: I have a supple- Is the Premier aware that there was a com- mentary. mitment to look into the issue, that we had Parliamen- tary Statements concerning the issue, and nearly a The Speaker: Okay. year later there still is no resolution?

SUPPLEMENTARY The Speaker: You have stretched your point. I am going to try and break it down as best I can.

Bermuda House of Assembly 306 7 December 2018 Official Hansard Report

Your first point was the PAC was in England The Speaker: So, you have got your second ques- in January. We have got that. During that time, they tion, yes? met with the same body that the Premier met with. We have got that. QUESTION 2: THE 2018 JOINT MINISTERIAL Now, your question is, simply, Is the Premier COUNCIL AND RELATED MEETINGS aware that commitments that were made during that IN THE UK AND EUROPE meeting are still yet to be fulfilled? Hon. Patricia J. Gordon-Pamplin: Yes. Thank you, Hon. Patricia J. Gordon-Pamplin: That’s correct. Mr. Speaker. My second question to the Minister is, again, The Speaker: Okay. in reference to his Statement, on page 3 of his State- ment, in which he indicates that, essentially, they are Hon. E. David Burt: Mr. Speaker. trying to make the friends before we need them as he was renewing Bermuda friendships. The Speaker: Well, a long road to get to a short pike. The question that I have is, Is there any rea- But, Premier, can you follow that? son why . . . or, let me rephrase it. Are there no issues to discuss with other Overseas Territories leaders Hon. E. David Burt: Mr. Speaker, I will take a very which would enhance the friendship that we have with long road, as well. Because the long road is very sim- either the UK or with other Overseas Territories lead- ple to understand. ers? So, say, for instance, Mr. Speaker, if you were building a house and you built a house, and you real- The Speaker: Premier. ised that your house may be built in the wrong place. You have, if you catch it when the plans and the archi- Hon. E. David Burt: Mr. Speaker, we have numerous tects and the layout is being done, you can correct discussions with many Overseas Territories leaders, that. If you find it after the fact that the house is al- and they take place all the time. ready built, then it takes a little bit longer to resolve that particular issue, Mr. Speaker. The Speaker: Thank you. We found this. This problem was already fully Supplementary or new question? baked into it. And we are doing the best that we can to resolve it. Am I pleased that it has not been resolved Hon. Patricia J. Gordon-Pamplin: Supplementary. at this point in time? No. Was my displeasure made very public at a The Speaker: Yes. meeting of the Joint Ministerial Council? Yes. Have I secured, finally, ministerial commit- SUPPLEMENTARIES ment to resolving this particular issue? Yes! Which was not held before. Hon. Patricia J. Gordon-Pamplin: If the Premier, The Minister of the Overseas Territories has having said that he has those, could he explain to us given his commitment to me, personally, that he will why the Minister who accompanied him has been re- do his whatever-is-necessary in order to get this par- ported to have been saying that he refused to attend ticular matter resolved, in addition to using his influ- the FCO [Foreign and Commonwealth Office] meet- ence with international organisations. And we look ing? Because we do not answer to the FCO, so, they forward to reporting progress and updating on that did not bother to appear before them. particular matter. Mr. Speaker, the Government of the United The Speaker: The question is to the Premier. Kingdom is a large and unwieldy instrument. We understand that. And that is the reason why it is im- Hon. E. David Burt: I believe that question rates portant to make sure that these issues are caught be- hardly seven words, Mr. Speaker. fore they happen as opposed to after the fact, when our people are suffering, as they are now. The Speaker: The issue here is whether or not the question in its content falls within the content of the The Speaker: Thank you. Statement that was put. And I do not believe, in the Any further supplementary? Any further ques- Statement, that the reference to the comment made tion? by the Minister that you are referencing was entailed Now, is this a new question? in the context of the Statement. But, Mr. Premier, I am going to allow you Hon. Patricia J. Gordon-Pamplin: This is a new some lenience if you wish, or not. question. [Crosstalk] Bermuda House of Assembly Official Hansard Report 7 December 2018 307

Hon. E. David Burt: Mr. Speaker, I am happy to an- The Speaker: Thank you. swer. I am happy to answer the question. But I find it Further question? No further question. laughable that the Honourable Member will . . . well, I Premier, you have an additional Member who shouldn’t find it laughable. I would just find it the nor- would like to put a question to you on the Statement. mal case that she would refer to something which was And that is the Member from constituency 11. written inside of the Royal Gazette, which was not Member, would you still wish to put your ques- actually correct. It was not the Foreign and Common- tion? wealth Office. The Joint Ministerial Council meeting is held by the Foreign and Commonwealth Office, which Mr. Christopher Famous: Good morning, Mr. we attended. It was the House of Commons Foreign Speaker. Affairs Select Committee. So, a bunch of people who were not in Government, backbenchers, who wanted The Speaker: Good morning. to have a meeting and talk and discuss. We do not answer to the House of Commons QUESTION 1: THE 2018 JOINT MINISTERIAL Foreign Affairs Select Committee. It was a voluntary COUNCIL AND RELATED MEETINGS invitation. We were not the only Overseas Territories IN THE UK AND EUROPE leaders to decline the invitation. And we felt that our efforts could be used better in other instances. And Mr. Christopher Famous: Honourable Premier, so, for that, our time was better spent doing other would you elaborate for us and for the country on the things and engaging in other meetings. whole about the reception, specifically for the Bermu- That was something they wanted to have. dian students overseas, the one in London and, more These are backbenchers who felt that they wanted to importantly, the one in Nottingham? have a committee meeting, and invited Overseas Ter- Thank you. ritories leaders. We do not answer to them, Mr. Speaker. So, The Speaker: Premier. we were not there. Hon. E. David Burt: Thank you. I thank the Honoura- The Speaker: Thank you, Premier. ble Member for his question. These particular meetings, I think, are particu- Hon. Patricia J. Gordon-Pamplin: Supplementary. larly important. And, as I indicated inside of my Statement, Mr. Speaker, I made a commitment last The Speaker: Supplementary. Your second supple- year that there are a larger number of Bermudians mentary on this one. who are living inside, and it may be difficult for those with families to travel to London for the singular event Hon. Patricia J. Gordon-Pamplin: Yes. of which we had. The commitment that I had was to make sure that we had an event that was outside of The Speaker: Yes? London that would have enabled more persons to attend and to participate. [Inaudible interjections] And so, in following with that commitment and keeping that promise, we were pleased to hold this Hon. Patricia J. Gordon-Pamplin: There was a reception in the further north. It was on a Sunday, the question. And now my supplementary; it does not London Office, we travelled. And it was a very enlight- matter. ening event. And we had the ability to interact with My supplementary question is, Does the Min- those students. There is a large number of students, ister not agree, does the Premier not agree that build- actually, we did not realise, or I did not realise before- ing friendships would entail interacting with others in a hand, who are actually attending the various schools setting in which they are together, and therefore, there in Nottingham. may have been better economies of presence and But there were a large number of students. use of time? We were able to engage and to listen to them, find out about their studies, find out about the things of which The Speaker: Premier. they were concerned about, find out and answer and deal with questions insofar as residency, dealing with Hon. E. David Burt: Mr. Speaker, I will be happy to questions insofar as the different things of which we share with the Honourable Member a video from the need. I mean, things were so simple, as there was a Foreign Affairs Select Committee. And she can find student who was over there studying, who did not ac- out whether or not she feels that this was a collabora- tually realise that she was eligible for home fees. And tive environment. she had been in the United Kingdom for three years, paying outside rates as opposed to the rates of which [Laughter] Bermuda House of Assembly 308 7 December 2018 Official Hansard Report she was eligible for. So, there were a number of Mr. Speaker, the Premier indicated that he did things that came out of those meetings, Mr. Speaker. not know some basic information in terms of how And, as I indicated inside of my Statement, I many people or who we have, in students, in the vari- impressed on the UK, the London Office, to be even ous areas—not the various areas, but the northern more visible inside their interactions. One of the chal- area, the Nottingham area. The question is, Is there a lenges of which they have had is that, because of the register that is maintained by the London Office on new regulations which have come into place inside which we could have our residents who are abroad the United Kingdom, which are data protection regula- registered to let the Government know that people are tions, GDPR, they are actually unable to use the email wherever they are and hence, give them a better op- list of which they used previously to announce these portunity to be able to interact? receptions. So, we are working through those particular The Speaker: Thank you. processes to make sure that the London Office can Premier. have more innovative ways, or newer ways, of getting around that to make sure that they communicate with Hon. E. David Burt: There is no forced register of students overseas. So, we had to invent a different Bermudians living overseas. Persons who can move way of reaching students. And we were successful, to the United Kingdom and— actually, in getting a good many people to the reception in Nottingham. I think we actually got 40 students. [Inaudible interjections] But, as I said, Mr. Speaker, the question that was asked earlier, a lot of them want to know, What is The Speaker: There is no register of persons living going to be here for them when they decide to return? overseas in that regard. And, as I said, we have placed a number of them in touch with various agencies and government depart- Hon. E. David Burt: There is no requirement for Ber- ments here, speaking about internships and pro- mudians who move to the United Kingdom to register grammes that can happen here on Island, not only with the London Office. Those persons who move to during the summer, but also during periods. There are the United Kingdom and who wish to let the London even some students who were coming home for the Office know that they are there are maintained in a Christmas period who already have placements inside register so that the London Office knows the people of government departments to assist and to lend their who have voluntarily done so. But, again, Mr. Speak- skills inside of those. er, this is a voluntary thing. There is no registration So, for that, Mr. Speaker, I think that it was process which is mandatory and/or compulsory for incredibly worthwhile. We were happy to have that students who are moving overseas. event, and I was happy also that other Honourable We encourage persons who are moving over- Members in this Chamber attended with me, such as seas to let the London Office know. There will be addi- the Honourable Member for constituency 8, who was tional communication that will be sent out in those par- at the London reception, as he was in the United ticular regards. We are talking about additional com- Kingdom for the Business Development Agency munication which can be done here to ensure the per- event. sons who are looking to further their studies or their skills training in the United Kingdom, or the things of The Speaker: Thank you, Honourable Premier. which they should be aware of, and to encourage Does any other Honourable Member have a them to get in touch with the London Office. question or supplementary? But a lot of times, the London Office is contacted only when there is a problem, which is classic Hon. Patricia J. Gordon-Pamplin: Supplementary. I when you have a consular office. have a supplementary. The Speaker: Thank you. [Inaudible interjection] Second supplementary?

Hon. Patricia J. Gordon-Pamplin: No, this is my first Hon. Patricia J. Gordon-Pamplin: Second supple- supplementary on this question. mentary. I wonder if the Premier would consider making an overt effort to encourage—it is not mandatory, The Speaker: This is your first one on this one, yes. but to encourage Bermudians to register as opposed Go ahead. to waiting until there is an issue. Because I think it would be wonderful, if he is leaving here to go to have SUPPLEMENTARIES an event, to at least have some basic information as to the population with which he is dealing. Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. Speaker. The Speaker: Premier. Bermuda House of Assembly Official Hansard Report 7 December 2018 309

Hon. E. David Burt: Yes. Hon. E. David Burt: I do not have those numbers, particularly, off the top of my head. And I do not wish The Speaker: Thank you. to guess too much. So, I will ask the London Office to New question or supplementary? Because return [the numbers]. I think we had about 40 in Not- you are the one who opened up this series of ques- tingham, and I want to say maybe 100–120 in London. tions. Do you have a second question or a supple- But I will get official numbers, and I am happy to sup- mentary? ply them.

Mr. Christopher Famous: Supplementary. The Speaker: Thank you. No further questions? The Speaker: Supplementary? Go ahead. That actually brings us to a close of the questions for the Premier. SUPPLEMENTARY The next Statement is from the Deputy Prem- ier. Deputy Premier, you have two Members who have Mr. Christopher Famous: In your Statement earlier, indicated that they have questions for you. The first Premier, you spoke about having (how can I say?) the Member is the Member from constituency 23. first of many in the northern parts of London [sic]. Would you like to put your question, Member? What would you say . . . QUESTION 1: INVESTIGATING COMPLAINTS Hon. Patricia J. Gordon-Pamplin: Northern England. OF PRICE GOUGING

Mr. Christopher Famous: Well, sorry. Northern Eng- Hon. Patricia J. Gordon-Pamplin: Yes. Thank you, land. Mr. Speaker. Where would the next set of events be held? Mr. Speaker, I wonder, with respect to the complaints on price gouging, the Minister indicated The Speaker: Premier. that stores are giving the excuse that the sugar tax has caused prices to go up. Hon. E. David Burt: I thank the Honourable Member I wonder if the Minister either directly or for his question. At this time, this has not yet been through the Consumer Affairs or through the Ministry determined. But we have said that we are going to of Health, would perhaps just to undertake an educa- host them outside of the London area. tion process as a reminder as to which items have So, we will be having the annual London re- been subjected to the sugar tax so that, if a consumer ception, of which we have around the BDA events that goes into a store, they at least have some backup, will take place next year, which is timed to coincide just as a reminder. with the Joint Ministerial Council, and other receptions which would be taking place. And we will find another The Speaker: Deputy Premier. location, maybe even further north than this one was, to make sure that we host Bermudians who are living Hon. Walter H. Roban: Yes. and studying overseas. The Speaker: Supplementary or new question? An Hon. Member: Manchester. Hon. Patricia J. Gordon-Pamplin: A supplementary. The Speaker: Thank you. Supplementary? The Speaker: Okay.

Hon. Michael H. Dunkley: I heard the Honourable SUPPLEMENTARY Member say Manchester. Yes, Mr. Speaker, supplementary. Hon. Patricia J. Gordon-Pamplin: I wonder if the Minister could give us some indication as to when he The Speaker: Yes. might be willing to undertake such an education initiative, because especially coming up to the Christmas SUPPLEMENTARY season, we are going to have lots of people perhaps in that circumstance which he has already addressed. Hon. Michael H. Dunkley: To the Honourable Prem- ier, how many individuals came to each reception? The Speaker: Deputy.

The Speaker: Premier? Hon. Walter H. Roban: Mr. Speaker, I will consult with my colleague in the Ministry of Health on this, because they are the primary managers of the matters Bermuda House of Assembly 310 7 December 2018 Official Hansard Report around the sugar tax. As you know, it was a Customs The Speaker: Thank you. Bill. It was not a Consumer Affairs matter. Deputy [Premier]. But I will consult with the Health Ministry on how we can perhaps work together to provide addi- Hon. Walter H. Roban: I cannot get into the details of tional public education. exactly what. That will be a matter for the technical officers. But we will respond appropriately to each The Speaker: Thank you. matter which is brought to our attention. And there No further questions. No supplementary. was some detail as to what we observed, certainly Deputy, you have an additional Member who around the activity around certain staples. And we will would like to put a question, and that is the Member certainly, to those products that have risen to the con- from constituency 10. cern of the public, we will focus on those, such as ex- Would you like to put your question now? orbitant price. Like I said, I was sent pictures of certain local QUESTION 1: INVESTIGATING COMPLAINTS vegetables with, like a Paw Paw that was $14, things OF PRICE GOUGING like that, obviously not imported, obviously from somebody’s garden, which was being sold by a local Hon. Michael H. Dunkley: Thank you, Mr. Speaker. retailer. As I said, that appears to be exorbitant. Mr. Speaker, in regard to the Statement, a So, we will look at it when we have evidence simple yes-or-no answer, Did the public servants who of exactly––certain products that appear to be the investigated the complaints of price gouging—did they subject of perhaps some manipulation in prices. We find them, yes, or did they not find them, no? will look at them.

The Speaker: Deputy. The Speaker: Thank you. Supplementary? No more supplementaries. Hon. Walter H. Roban: We received reports of price This is a second question for you now. gouging. And my Statement outlined what we will be continuing to observe and investigate. Hon. Patricia J. Gordon-Pamplin: I have a supple- At this point, I cannot confirm whether we mentary on that. found actual evidence of gouging. But we will continue to investigate when they are brought to our attention. The Speaker: You have a supplementary? Okay. We will take your supplementary. The Speaker: Thank you. Supplementary or new question? SUPPLEMENTARY

Hon. Michael H. Dunkley: Supplementary, Mr. Hon. Patricia J. Gordon-Pamplin: Yes. Thank you. Speaker. In the Minister’s response, he indicated that he relies on technical officers. Is the Minister suggest- The Speaker: Supplementary, yes. ing that reliance on technical officers is only appropriate under his administration, that it was not appropri- SUPPLEMENTARIES ate under prior administrations?

Hon. Michael H. Dunkley: So, in regard to those The Speaker: I really think that question falls out of specific complaints, are the investigations ongoing? line of this stream right now. I would not call on the Minister to respond to that. The Speaker: Deputy. Would you like to put your question?

Hon. Walter H. Roban: Yes. QUESTION 2: INVESTIGATING COMPLAINTS OF PRICE GOUGING The Speaker: Thank you. Second supplementary or new question? Hon. Michael H. Dunkley: Yes. Thank you, Mr. Speaker. Hon. Michael H. Dunkley: Second supplementary. Mr. Speaker, the Honourable Minister comes with a Statement which talks about investigating price The Speaker: Go ahead. Continue. gouging, but he is unable to say what did and did not happen. In the specific comment regarding the Paw Hon. Michael H. Dunkley: So, in regard to those on- Paws, what are the next steps to investigating wheth- going investigations, what is the avenue of investiga- er a $14 Paw Paw is a right price for it or not a right tion? What still needs to be looked at? price? What are the next steps? What is to be taking place? Because next week, we will forget about it. Bermuda House of Assembly Official Hansard Report 7 December 2018 311

The Speaker: Deputy [Premier]. of the Statement. Some people have brought that to our attention. But, as I have outlined, there are a Hon. Walter H. Roban: Mr. Speaker, the job of inves- number of reasons why price gouging can go on. And tigating is done by the Department of Consumer Af- perhaps the Honourable Member needs to always, in fairs. They will pursue any actual cases that are this case, declare his interest because of his clear brought to their attention. And they will deal with them involvement with— as per the clause that I outlined in the Act. That is the process that they will take. And they will bring any- The Speaker: Well, well. You were fine, you were fine thing that is brought to my attention in my role as the up to the end, Deputy. Minister, and I will act appropriately. Any further questions? Supplementary? There are none. That brings us to a close of The Speaker: Supplementary? questions for you, Deputy. The next Statement that Members have a Hon. Michael H. Dunkley: Last question. question for is the Statement from Minister Brown. Minister Brown, there is one Member who The Speaker: Last question. Go ahead. would like to put questions to you in regard to the update on the practice of project management and pro- QUESTION 3: INVESTIGATING COMPLAINTS curement, I believe it was. And it is the Member from OF PRICE GOUGING constituency 20, the Opposition Whip. Would you like to put your question now? Hon. Michael H. Dunkley: Thank you, Mr. Speaker. In the Statement, the Honourable Minister QUESTION 1: UPDATE ON THE CODE OF refers to sugar tax items. So, in the investigation, did PRACTICE FOR PROJECT MANAGEMENT AND the public servants find out that the rise in prices for PROCUREMENT—FRAMEWORK AGREEMENTS the sugar tax was comparable with the increase in duty that the Government had imposed? Ms. Susan E. Jackson: Thank you, Mr. Speaker. My first question this morning is, I am just The Speaker: Deputy [Premier]. wondering, with this new framework in place, how are you going to continue to support the Throne Speech Hon. Walter H. Roban: [I am] not clear what the Hon- initiatives that a number of smaller contractors and ourable Member is asking. vendors, local companies, would have a chance to I am not responsible for any of the details participate in local government contracts if we are go- around the sugar tax. My department was responding ing to go to a framework that allows for a single ten- to queries by the public, who believe that prices were der, which will provide all supplies and goods to gov- being manipulated, and the rationale was the sugar ernment across all ministries? tax. And that is all that the sugar tax has relevance The Speaker: Thank you. to what I have to deal with, Mr. Speaker. Minister.

The Speaker: Supplementary? Hon. Walton Brown: Thank you for that question. We actually will have a system whereby the SUPPLEMENTARY tendering process will be opened up to small companies. That is actively being worked on the by Office of Hon. Michael H. Dunkley: Yes, supplementary, Mr. Project Management and Procurement. We are actu- Speaker. ally drafting the appropriate legislation to provide a If the rationale was around the sugar tax, did mechanism whereby smaller companies can get ac- the people investigating find that this was false or pos- cess to government contracts. itive in regard to the sugar tax? There has to be an The process that we have talked about here explanation. If the Minister comes to this House with a today, service agreements, relates to a few areas, in Statement, there has got to be some meat on the particular, the telecommunications area, which is be- bone. ing selectively applied.

The Speaker: Thank you. The Speaker: Thank you, Minister. Minister. Supplementary or new question? You are good? Okay. Hon. Walter H. Roban: Mr. Speaker, the sugar tax is Thank you, Minister. That brings a close to not the subject of the Statement. It is price gouging. questions on your Statement. And that can happen for a variety of reasons, as I outlined in the Statement. The sugar tax is not the focus Bermuda House of Assembly 312 7 December 2018 Official Hansard Report

The final Statement this morning is from the The Speaker: Thank you. Minister of National Security. There is one Member No further questions, no supplementaries. who has a question for you, Minister. That brings us to a close of the question-and-answer The Member from constituency 31, would you period for this morning. And we will now move on to like to put your question? other matters.

QUESTION 1: ROYAL BERMUDA REGIMENT CONGRATULATORY AND/OR UPDATE OBITUARY SPEECHES

Yes. Thank you, Mr. Speaker. Mr. Ben Smith: The Speaker: Would any Member wish to speak to The Honourable Minister in the Statement that? No Member? referred to, “work continues to stand up the much- The Member from constituency 11, we see anticipated Coast Guard Unit.” Is the Minister able to you on your feet now. give us an update on the budget for the Coast Guard Unit? Mr. Christopher Famous: Yes, Mr. Speaker. Good morning again. The Speaker: Minister. I just want to thank the people of Bermuda for standing up with BELCO workers earlier this year. It is Hon. Wayne Caines: The budget will be delivered in not often that the people of Bermuda exercise their line during our Budget Debate. voice in support of workers for utility. But in this case, they realise the mitigating factors, and they realise The Speaker: Thank you. that they need to decide it with the workers of Bermu- Supplementary? da. So, on behalf of the workers of BELCO, I want to thank the then Minister, Honourable Brown, and Hon- Mr. Ben Smith: Supplementary. ourable Walter Roban, for doing what they could for the workers of BELCO and, by extension, the people The Speaker: Yes. of Bermuda. Thank you, Mr. Speaker. SUPPLEMENTARIES The Speaker: Does any other Member wish to Mr. Ben Smith: Has there been any expenditure dur- speak? Does any other Member wish to speak? ing this budget year that was not anticipated? We recognise the Honourable Member from constituency 10. The Speaker: Minister. Honourable Member.

Can you repeat the question, Hon. Wayne Caines: Hon. Michael H. Dunkley: Thank you, Mr. Speaker. please? Mr. Speaker, I would ask this Honourable House to send congratulations to a young Bermudian, The Speaker: Basically, the question was . . . he was Kyle James, on his exhibition of photography last trying to find out if any additional monies had been night at the Cosmopolitan Nightclub. And I think the spent that were not budgeted for as part of this? Honourable Wayne Furbert would like to be associated with these comments, as well, and Honourable Hon. Wayne Caines: I would have to double-check Lawrence Scott. Mr. James got into aerial photogra- that and bring that information back to this House, Mr. pher some years ago. And I have known this young Speaker. man through his desire to always stay in shape. And I have been very impressed by this young man, be- The Speaker: Thank you. cause not only does he work hard, but he loves Ber- Fine. No further supplementaries? muda and he is proud of Bermuda. And his aerial photography just highlights Bermuda, and he promotes Mr. Ben Smith: Just a supplementary. Bermuda go forward. So, I would like to congratulate Kyle and his The Speaker: Second supplementary. team for what they do. We have to work hard to promote our image, and here is a fine young man who Mr. Ben Smith: Second supplementary. certainly adds a lot to Bermuda. And I wish him the And, if possible, if we could find out, if there is best, going forward. an additional payment, how much would the extra On a sadder note, Mr. Speaker, I would like to budget have been? extend condolences to the family of Kirk Cooper, who passed away earlier this week, to his beautiful wife, Hon. Wayne Caines: [Yes], Mr. Speaker— Helen, and three children. Most people will know Mr. Bermuda House of Assembly Official Hansard Report 7 December 2018 313

Cooper for his numerous occasions participating in tainly contributions to our society. And we mark them. the Olympics. I think he sailed in the Olympics three They mean something, and they matter. times and got very close to winning a medal in his first Thank you, Mr. Speaker. Olympics. But, outside of that, he was a very solid family man. He was community dedicated at all times. The Speaker: Thank you. He got involved in politics, and he certainly was a very Any other Member wish to speak? successful businessman. I recognise the Honourable Member from Mr. Cooper was one of those people who, constituency 2. when I was growing up, because I knew his children Honourable Member Swan, you have the quite well, I admired because he always spoke very floor. firmly, but in a quiet way. And he could lead without being in front. And he always got things done. He was Mr. Hubert (Kim) E. Swan: Yes, Mr. Speaker. And a man of integrity and character, and I wish his family good morning, Mr. Speaker. all the best during this period of grieving, on his pass- It is with fond sadness that I offer condolences ing. Thank you, Mr. Speaker. to the family of Mr. Arthur “Bobber” Wilkinson, from Wellington Back Road, in St. George’s, by extension The Speaker: Thank you. the Burgess family from North Shore of St. George’s. We recognise the Honourable Member from And I associate my colleague, the Honourable Mem- constituency 32. ber from constituency 1, MP Ming, with those condo- Honourable Member. lences. I have known Mr. Wilkinson all of my St. George’s life, as I consider myself, first and foremost, Mr. Scott Simmons: Good morning, Mr. Speaker. a North Shore St. Georgian. And I know that North Shore wins better than most. And I know Minister The Speaker: Good morning. Foggo would like to be associated because I think she has some association with that Burgess connection, of Mr. Scott Simmons: I rise on a sad note today in Mr. Wilkinson’s mother out there in North Shore, St. mentioning to those who have served and lived in George’s. Bermuda. Mr. Speaker, I was not certain whether or He was a gentleman, Mr. Speaker, an abso- not this was done last week, as it relates to Mr. Ter- lute gentleman. And I certainly am obliged to have rence Victor “Ted” Richards. I was not sure if we had known him. And I feel sad for his passing. But he had done it yet. good innings, 91 years, and for a life well lived, this quiet gentleman from St. George’s. May he rest in The Speaker: No. peace, Mr. Speaker.

Mr. Scott Simmons: I would like to extend . . . he was The Speaker: Thank you, Honourable Member. the husband of Kalmar Richards. And I recognise [and Does any other Honourable Member wish to associate] the entire House, absolutely the entire speak? We recognise the Minister of Education. House, and especially the Minister of Education, and Minister, you have the floor. the Shadow Minister of Education, as it relates to this very sad moment. And we would like to extend to Hon. Diallo V. S. Rabain: Thank you, Mr. Speaker. them our absolute commiserations on this very, very Yes, I want to attach my condolences to the sad occasion. In addition, he will be sorely missed. Commissioner of Education. It has been a very diffi- The family is very much loved in our community. And cult six or so weeks with her, and the difficulties she our hearts go out to them, especially. faced with her husband. She has had the full support Mr. Speaker, also, I would like to send out of the Department of Education and the Ministry of condolences to a cousin of mine, Tammy Grace Bar- Education while she has worked through what can clay. I would like to extend to William and Annette only be described as very difficult circumstances with Barclay our most sincere . . . quite a few Members of her husband being overseas for medical treatment. the House, including the Minister of Health, Minister And her still trying to perform the job of the Commis- Wilson, and the entire House— sioner while away shows her dedication to our children of Bermuda, which is what we always must keep The Speaker: Yes, the entire House. in the forefront. Mr. Speaker, I also want to send congratula- Mr. Scott Simmons: —would like to extend to the tions to PartnerRe, who donated money to the various Barclay family our absolute condolences in this very, high schools for their Dollars for Hours programme. It very, very sad hour. is a programme that has been going on for several Mr. Speaker, in our community, significant years. And it is one that we should be proud of, be- members are passing, and along with them are cer- cause our students get out there and do community

Bermuda House of Assembly 314 7 December 2018 Official Hansard Report service projects and are rewarded for those donations wish the family the best in the future, and I am very that they do give. sorry for them at this time. I would like to associate my Mr. Speaker, I also want to send congratula- colleague, Scott Pearman, with those condolences. tions to Validus Re and the Sylvester family for the Thank you, Mr. Speaker. donation of the new Smiley’s Bus to the Dame Marjo- rie Bean Hope Academy. The Speaker: Thank you. Lastly, Mr. Speaker, congratulations to the Any other Member? We recognise the Mem- Harrington Sound [School] family for their recent do- ber from constituency 4. nations to the Paralympic Association, the Bermuda Honourable Member, you have the floor. Diabetes Association and the Bermuda TB, Cancer and Health Association. Thank you, Mr. Speaker. Mrs. Tinee Furbert: Good morning, Mr. Speaker, and thank you. The Speaker: Thank you, Minister. I just wanted to send congratulations to Mr. Does any other Member wish to speak? Steve Wilson, who recently won a gold medal in the We recognise the Honourable Member from Boccia Tournament in Argentina. Mr. Steve Wilson is constituency 8. a para-athlete. I would like to associate the whole Honourable Member, you have the floor. House with that.

Mr. N. H. Cole Simons: Thank you, Mr. Speaker. The Speaker: Yes. Mr. Speaker, I would like to associate myself with the comments made in regard to Ms. Tammy Mrs. Tinee Furbert: So, we are congratulating Mr. Barclay, as well as the Commissioner of Education on Steve Wilson in winning that gold medal. He was also the loss of her beloved husband. accompanied by Ms. Yushae DeSilva, and also Mr. Mr. Speaker, I would like to also send con- Omar Hayward, who also performed very well. I would gratulations to Dr. Carika Weldon. She recently was just like to read a little quote that he had written, him- appointed as a researcher of Oxford University Ge- self, in regard to his performance. And he said, “No nomic Centre. I think it is the first time that we have matter what difficulties you face, your life is not over. had a Bermudian in such an astute position. She was You always have a purpose to achieve something.” at De Montfort University, as everyone knows. But to And so, Mr. Wilson being a para-athlete, has over- be at probably one of the world’s leading academic come this great, great challenge. And I am so very centres bodes well for her and the type of people happy for his success. He does train very hard, as whom we produce. well as the other athletes. They train every day of the So, I would like for the House to send con- week. And I have seen them train, and I would just gratulations to Carika for her achievements and her like to congratulate them, Mr. Speaker. success as a researcher at the famous well-known Thank you. Oxford University. The Honourable Patricia Gordon- Pamplin would like to be associated with those re- The Speaker: Thank you, Honourable Member. marks. Does any other Honourable Member wish to offer congratulations or condolences? The Speaker: Thank you. I recognise the Honourable Member from Does any other Member wish to speak? constituency 19, yes. No other Member? We can move on . . . Honourable Member, you have the floor. Oh. The Opposition Whip, you almost missed your opportunity this time. We recognise the Opposi- Hon. Jeanne J. Atherden: Thank you, Mr. Speaker. tion Whip. The Speaker: Yes. Ms. Susan E. Jackson: Thank you, Mr. Speaker. Yes, just a moment. Hon. Jeanne J. Atherden: I still have speaker prob- I would like to be associated with the condo- lems. lences being sent and shared for the loss of Kirk I would like to do two things. One, I would like Cooper. He and his family have been living in constit- to be associated with the remarks to the family of Kirk uency 20 for all time. They have quite a legacy there. Cooper. But I would like to go on the other path. Kirk And, as a sailor and as a Bermudian who represented was one of the founders of Cooper & Lines. And as the country worldwide, he, I certainly believe, is one of you can appreciate, as a Bermuda student, when you our stalwarts when it comes to representing Bermuda, wanted to do accountancy on a professional basis, especially in the sailing community. And to his family, Cooper & Lines was the leading firm that you wanted he has left a legacy of children who are also creative, to be with. Obviously, in the summer, it had lots of are travelling and spanning the world, sharing the ar- students. tistic designs inspired by this Island. And I certainly Bermuda House of Assembly Official Hansard Report 7 December 2018 315

And Kirk was what I call the quiet one. Lots of And also, congratulations on the retirement, to people would view David Lines as the vocal one, but Detective Constable Mark Clarke, whom I have known Kirk was the quiet one, and he was always someone for quite some time. And I know that he has been very who was prepared to talk to students about what was effective in his contributions, especially with regards to important in terms of accounting, and making sure sex offenders. And he has written papers on it. And I that he provided guidance for those persons who know that, at the time when we had the Joint Select wanted to be in the profession. Committee, he was very participatory. Please associ- And, obviously, I knew of all of the other at- ate MP Gordon-Pamplin, and also Sylvan Richards, tributes and sports, et cetera, that he was involved in. with those comments. And my sympathies go out to his family, because he will be missed. The Speaker: The whole House. And, [two], on a congratulatory note, I would like to have congratulations sent to Goslings, because Mrs. Renee Ming: The whole House is being associ- Goslings just finished the Goslings Invitational Tour- ated with those comments. nament. Goslings has been supporting this tournament for over—I think it is 42 years, something along The Speaker: The whole House for Mr. Clarke, yes. those lines. So, it is important for us to recognise this, The whole House. especially with the goodwill tournaments numbers in the past going down, and that Goslings numbers have Mrs. Renee Ming: So, Mr. Speaker, on that note, I will continued to go up. end my comments. Thank you very much, Mr. Speak- Because we have to appreciate that the more er. people come down to Bermuda, with their families, participating in these tournaments, it is a contribution The Speaker: Thank you. to the economy as it relates not only to the bed nights, No other Member is moving? but also people understanding what Bermuda is like. Ah! I recognise the Minister. You moved a Because once people get here and they know how little slowly that time, Minister. We recognise the Min- great Bermuda is, they always want to come back. So, ister Foggo. we appreciate what they are doing, and we would like You have the floor. to say congratulations for their efforts. Thank you, Mr. Speaker. Hon. Lovitta F. Foggo: Thank you, Mr. Speaker. I would like to be joined with the remarks just The Speaker: Thank you, Honourable Member. given by MP Renee Ming regarding Mark Clarke, I now recognise the Honourable Member from whom (1) I consider a good friend; and (2) who has constituency 1. performed in his respective career as a police officer Honourable Member, you have the floor. at the highest of heights, and has maintained, I guess, if you will, a stellar and clean record in the perfor- Mrs. Renee Ming: Thank you. Good morning, Mr. mance of his duties. And he deserves all of the acco- Speaker. lades and recognition that this House has given to him today because of a great career that he has had in the The Speaker: Good morning. policing division. And so, Bermuda thanks him for all that he Mrs. Renee Ming: I would like to begin my comments has done within his duties as a police officer. And I on a sad note, first of all, to send thoughts and pray- just wanted to stand up and associate myself with the ers to the family of Arthur Fox, from Floral Lane in St. remarks given regarding Mark Clarke. George’s. Mr. Fox—when you canvass, you get to Thank you, Mr. Speaker. meet a lot of people. So, he gave me a lot of history lessons with regard to politics and his thoughts on The Speaker: No other Member wishes to speak on politics. And I would just like to also associate Minister this? We can now move on. Foggo and MP Swan with those comments. And, on a happier note, Mr. Speaker, I would MATTERS OF PRIVILEGE like to congratulate the organisers of the First Annual St. George’s Boat Parade. That happened last week, The Speaker: There are none. Saturday. For those of you who were unable to attend, you surely did miss something of such a high calibre PERSONAL EXPLANATIONS that was well attended. And we look forward to this, hopefully, becoming an annual event. The Speaker: We have one personal explanation on Also, congratulations to Mayor Quinell Francis the Order today. And that is in the name of MP Moniz. for hosting her annual Christmas Cocktail Party, al- MP, would you like to put your matter for- ways a good time in the Square. ward? Bermuda House of Assembly 316 7 December 2018 Official Hansard Report

Hon. Trevor G. Moniz: Thank you, Mr. Speaker. Mr. Speaker, finally, I can hardly be expected to answer for the storage of the panels. I moved off The Speaker: Thank you. from the Ministry in December 2013, five years ago. And, in any case, the panels were in the sole custody, Hon. Trevor G. Moniz: Good morning, Mr. Speaker. care and control of WEDCO, whose responsibility it was to keep them in good order and condition. The Speaker: Good morning. Mr. Speaker, I thank you for giving me this opportunity to give my side of the story. DOCKYARD PREFAB HOUSES—REBUTTLE TO MINISTERIAL STATEMENT (23 NOVEMBER 2018) The Speaker: Thank you, Honourable Member.

rd Hon. Trevor G. Moniz: On the 23 of November, the NOTICE OF MOTIONS FOR THE Minister of Public Works made a Ministerial Statement ADJOURNMENT OF THE HOUSE to the Honourable House on the WEDCO pre-fab ON MATTERS OF URGENT housing project, locally known as the 100 Homes project. In that Statement, the Minister made a number of PUBLIC IMPORTANCE insulting and disparaging statements about the OBA and its Members. In addition, he appeared to disagree The Speaker: There are none. with our handling of the partial cancellation of the PLP project by the OBA Government in 2013. INTRODUCTION OF BILLS And, in broadcast interviews, he wondered aloud, “How do you justify the decision and keep it GOVERNMENT BILLS quiet?”, while also admitting that he himself did not agree with the type of construction that was used for The Speaker: We have one Government Bill, in the the units, as being untraditional and problematic. name of the Minister of Finance. Finally, the Minister, in his Statement, said, “the then Minister continues to sit in this place. And I FIRST READING invite him to explain his actions and culpability in this incredible waste of taxpayer funds.” He further ques- ECONOMIC SUBSTANCE ACT 2018 tioned the condition of the remaining panels, which have been stored for the past five years. Hon. Curtis L. Dickinson: Mr. Speaker, I am intro- Mr. Speaker, let me first address the allegation ducing the following Bill for its first reading so that it that I somehow kept my decision quiet. On the 7th of may be placed on the Order Paper for the next day of June 2013, I made a seven-page Statement to the meeting: Economic Substance Act 2018. House of Assembly on my decisions to stop the 100

Homes project. And I will now table a copy of that The Speaker: Thank you. Statement for the information of the House.

In the run-up to the 2012 election, our lack of support for this project was made quite clear. It was OPPOSITION BILLS therefore no surprise when the decision was announced. And, in addition, my Ministerial Statement The Speaker: There are none. was well publicised in the media. The Minister should, in all good conscience, apologise and retract those PRIVATE MEMBERS’ BILLS words. The fundamental disagreement is with the The Speaker: There are none. Minister’s contention that there is a shortage of adequate housing. In our view, the abject failure of the NOTICES OF MOTIONS Grand Atlantic Housing project was a clear indication that there was sufficient housing stock, after a major The Speaker: We have a notice of a motion. exodus from Bermuda of thousands of people under the PLP Government. Only two units were ever sold in MOTION the Grand Atlantic project. We provided 20 new homes, while also refur- THAT THIS HOUSE SUPPORT THE INCLUSION bishing and renting numerous units in the Boaz Island IN THE PARLIAMENTARY CODE OF CONDUCT development, and at the same time saving the public POLICIES AND PROCEDURES THAT EMBRACE purse $11 million. In addition, we saved Bermuda from A CULTURE OF RESPECT TOWARDS WOMEN what would have been an unacceptably dense housing PARLIAMENTARIANS AND WOMEN IN GENERAL development.

Bermuda House of Assembly Official Hansard Report 7 December 2018 317

Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. tion is a historical feature of how the Ministry of Health Speaker. used to be structured and based on a Bermuda with a Mr. Speaker, I give notice that I propose to smaller government, fewer businesses and less activi- move the following Motion at the next day of meeting: ty. “BE IT RESOLVED that this Honourable Mr. Speaker, what has happened over the House decries the posting of inappropriate and/or sex- years is that the Chief Medical Officer has been used ist comments on social media by Members of Parlia- as the default position for everything from administer- ment and that this House supports the inclusion in the ing child care to registering hospitals, regulating milk Parliamentary Code of Conduct policies and proce- storage and providing personal health assessments. dures that will embrace a culture of respect towards The scope and expectation of experience in the role is women parliamentarians and women in general.” wholly untenable, out of alignment with the public health role, the position, and not representative of the The Speaker: Thank you. same position in other jurisdictions. We will move on. As such, Mr. Speaker, we have undertaken a review of all of the Acts and Regulations where the ORDERS OF THE DAY Chief Medical Officer is referred to, and have made amendments where a different person or organisation The Speaker: That brings us to the first Order of to- is better placed for that role. day. Members, the first order of business on the Mr. Speaker, one example of the incorrect use agenda for today is the second reading of the Chief of the Chief Medical Officer who is a trained physician, Medical Officer (Transfer of Functions and Validation) is in the Public Health (Offensive Trades: Storage Act 2018, in the name of the Minister of Health. Treatment and Distribution of Animal Excreta and Minister Wilson. Faecal Matter) Regulations 1966. In these regulations, Mr. Speaker, the Chief Medical Officer is tasked with Hon. Kim N. Wilson: Yes. Good morning, Mr. Speak- directing how manure should be stored, among other er. functions. This is a highly inappropriate task for a Mr. Speaker, I move that the Bill entitled the Chief Medical Officer who, as I said, is a qualified Chief Medical Officer (Transfer of Functions and Vali- physician, and more appropriately should be placed dation) Act 2018 be now read the second time. with the Chief Environmental Health Officer, who would be trained in these public health areas. The Speaker: Any objections? Mr. Speaker, transferring these functions from No objections. Continue on. the Chief Medical Officer to the relevant authority, with the capacity and background to handle the areas, just BILL makes sense. But it also ensures that the Chief Medi- cal Officer can focus on the vast responsibilities he or SECOND READING she has, which include registering and regulating health professionals, monitoring and controlling com- municable diseases throughout Bermuda, regulating CHIEF MEDICAL OFFICER (TRANSFER OF control of licensed drugs, and acting as the public FUNCTIONS AND VALIDATION) ACT 2018 health focal point to report to international agencies on our health in Bermuda. Hon. Kim N. Wilson: Mr. Speaker, the Chief Medical Mr. Speaker, the Chief Medical Officer (Trans- Officer (Transfer of Functions and Validation) Act th fer of Functions and Validation) Act 2018 will allocate 2018 was tabled on the 16 of November 2018. Mr. the handling of functions within the Ministry of Health, Speaker, the Chief Medical Officer (Transfer of Func- appropriately ensuring that everyone is able to act in tions and Validation) Act 2018 transfers certain statu- the role, and with the expertise, they were placed tory functions of the Chief Medical Officer to the Chief therewith. Environmental Health Officer, the Director of the De- With those brief introductory remarks, Mr. partment of Health, the Bermuda Health Council and, Speaker, I thank you and invite colleagues to provide where appropriate, a registered medical professional. assistance in submission. The Act, Mr. Speaker, effectively regularises many of the functions that are assigned to the Chief The Speaker: Thank you, Honourable Member. Medical Officer, but have actually been performed by the entities that I just spoke about. Mr. Speaker, the Does any other Honourable Member wish to Chief Medical Officer was previously referenced in 26 speak? pieces of legislation and 24 regulations, with countless We recognise the Honourable Member from responsibilities and an overwhelming number of roles. constituency 23. The placement of the Chief Medical Officer in every Honourable Member Gordon-Pamplin, you decision-making role in health and non-health legisla- have the floor.

Bermuda House of Assembly 318 7 December 2018 Official Hansard Report

Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. ties so that we can have a cleaner house in which the Speaker. Chief Medical Officer can continue to reside in the Mr. Speaker, as I looked through this legisla- appropriate fashion. tion, it occurred to me how inappropriate some of the I think it is most important, though, that we are references are for the duties and responsibilities of the made aware of what remains. What are the over- Chief Medical Officer, which perhaps over time have arching . . . it does not have to be legislated, but cer- become entrenched. These need to be amended and tainly it would be useful from a knowledge perspec- adjusted. And, obviously, this Act, which is effectively tive, from a community knowledge perspective, to a housekeeping Act to give effect for those changes, know what is left in terms of what the Chief Medical those substantive changes, is now being debated. Officer’s primary responsibilities are, how she carries Mr. Speaker, as I went through, I looked at out those responsibilities and how we, as the Parlia- things like “fumigation control,” where the Chief Medi- ment, can assist her in enhancing what it is that she is cal Officer is the one who ensures that you cannot sell required to do, and to ensure that she is able to oper- to a non-licensed person, to offer licences to fumigate, ate effectively and efficiently. and things that are just so inappropriate for a medical- Thank you, Mr. Speaker. ly trained professional, for a doctor, to have the responsibility for. The Speaker: Thank you, Member. Some of the interesting things that I saw as I Does any other Member wish to speak? went through, though, indicated—and I know we can No other Member? actually go into detail when we get into Committee on Minister. this. But there are one or two things that are coming out from this that I questioned the propriety, or wheth- Hon. Kim N. Wilson: Thank you, Mr. Speaker, and I er we could, perhaps, relook and rethink it from the thank the honourable colleague for her contributions. perspective that, if we start to look at staffing, who are Mr. Speaker, in going through this particular fit, in respect of the Children Act, maybe that is some- piece of legislation, when the team at the Ministry of thing that the Chief Medical Officer may continue to Health went through all the pieces of legislation, I can oversee. think of one example, in particular, where it was legis- It just seems as though that would be an ap- lation that was relating to something completely out- propriate second set of eyes, because I think that we side of the scope of the Chief Medical Officer [CMO]. cannot take too lightly the safety of our children. And And when I looked at it, and only because one of my to the extent to which we have people in their care, or colleagues said, Oh, well, that comes under you now. people responsible for their care, we need to ensure And I looked, and I am like, The CMO shall do X, Y, Z. that our children are safe. So, there is a second level And I was like, Really? It is not a role for the CMO. of scrutiny that I would perhaps like to see remain with However, Mr. Speaker, there are still quite a the Chief Medical Officer in that particular instance. number . . . in fact, the CMO, once this legislation is And, as I said, we can, obviously, discuss those as finished, will still have an extensive list of responsibili- time goes on. ties, which will include, Mr. Speaker, registering more There are things that the Minister will not now than 1,000 health professionals. She handles health be responsible for, but with so many things being professional complaints for the 1,000 registrants. She stripped out, I wonder if the Minister would be able to monitors the import and export of controlled drugs. provide us with an overview of the functions that have She continues to monitor the occurrence of disease actually remained with the CMO. Because, as the on our Island. She serves as the international focal Minister indicated, there are 26 legislation issues and point for international agencies and is involved heavily 24 regs where the Chief Medical Officer has been giv- in issuing statutory documents such as Customs let- en responsibility that clearly can be passed on to oth- ters for personal medications and the like. ers. I think when we get to the Committee stage, we So, I am saying she because the actual Chief can start to look at the responsibilities in some of Medical Officer is a female, Dr. Cheryl Peek-Ball. And those respective areas. so, she has a huge task in front of her for day-to-day But I wanted to say that we do support this operations. She, effectively, is the face, so to speak, legislation, in principle and in general, with the excep- of public health. And so, the amendments that we see tion of perhaps the odd one or two things where it today––and I am glad that the Opposition are support- might be appropriate. You know, when I look at things ing us––are critical in allowing her to focus on her task like hotel licensing, and liquor licensing, and time- at hand, as opposed to the 50-some-odd pieces of sharing, and [other] things, really, [I realise] the Chief legislation and regulations that refer to her. Hereto- Medical Officer’s time is better spent doing more sub- fore, she has been the default—not she, but the posi- stantive policy issues than the minutia of administration has been the default. tion and bureaucracy with which she has been tasked If in doubt . . . Like I said, I was looking at a under these various forms of legislation. And we cer- piece of legislation recently. And my colleague said, tainly support extricating her from those responsibili- Oh, well, that comes under you now. And I looked at Bermuda House of Assembly Official Hansard Report 7 December 2018 319

it, and it was the default clause. If in doubt, if the word Clause 3 validates any of the Chief Medical “health” is involved, then we are going to just throw it Officer’s statutory functions purportedly delegated by over to the CMO, without any consultation with Health the Minister of Health or the Chief Medical Officer be- to see whether or not it even actually fits. So, the reali- fore the coming into operation of this Act. ty is that this is playing catch-up, and we are cleaning Clause 4 provides for the commencement of up quite a few pieces of legislation that refer to her the Bill. when they really should be appropriately referred to a different person. The Chairman: Any further speakers? So, for example, all of the provisions under The Chair recognises the Honourable Mem- the Children Act 1998, which deal with ensuring that ber Pat Gordon-Pamplin. the facilities and the equipment are sanitised, the nu- You have the floor, Honourable Member. trition, the programmes, ensuring that they are issued a licence—all of those things should be aptly ad- Hon. Patricia J. Gordon-Pamplin: Thank you. Thank dressed by the Director of the Department of Health, you, Mr. Chairman. who oversees that particular aspect, as opposed to Mr. Chairman, my only comments that I wish the CMO. to make relate to the Schedule. And the Honourable So, in that regard, Mr. Speaker, I would like to Member has moved clauses 1 through 4. I have no move that this Bill be committed to Committee now. objection to clauses 1 through 4. But I do have some observations on the Schedule. So, I just wonder, at The Speaker: Yes. what point would you like for me to address those? Deputy. The Chairman: You can continue. House in Committee at 12:05 pm Hon. Patricia J. Gordon-Pamplin: I can do it now? [Hon. Derrick V. Burgess, Sr., Chairman] The Chairman: Yes. COMMITTEE ON BILL Hon. Patricia J. Gordon-Pamplin: Thank you. Okay. CHIEF MEDICAL OFFICER (TRANSFER OF So, if I go to page 5 of the Bill, under the Chil- FUNCTIONS AND VALIDATION) ACT 2018 dren Act 1998, this is where we are deleting “Chief Medical Officer” and substituting the “Director of the The Chairman: Members, we are now in Committee Department of Health.” And this is page 5, under of the whole [House] for further consideration of the clause 2. It starts off staying, “regulation 64,” and then Bill entitled the Chief Medical Officer (Transfer of under column 1, where it refers to the Children Act Functions and Validation) Act 2018. 1998. And section 67 of the Children Act, as I men- Minister, you have the floor. tioned while we were in the regular debate, indicates that the CMO is responsible for ensuring that the staff Hon. Kim N. Wilson: Thank you, Mr. Chairman. of day care are fit and proper persons. With your leave, I would like to move clauses And while that might, effectively, be able to be 1 through 4. passed on to the Director of the Department of Health, I think I just wanted to feel more comfortable . . . I The Chairman: Any objections to moving clauses 1 should not say I wanted to. I think I would feel more through 4? comfortable if there was just a higher oversight. Be- There appear to be none; continue. cause I think, when it comes to our children, somebody in the professional capacity of the Chief Medical Hon. Kim N. Wilson: Thank you, Mr. Chairman. Officer might be appropriate to keep just that particu- The Bill seeks to amend various legislation to lar function, that she makes sure that people are fit transfer certain of the Chief Medical Officer’s statutory and proper in terms of the staff of the day care. Other functions to the Chief Environmental Health Officer, issues in the various sections, in terms of issuing li- the Director of the Department of Health, and the cences, issuing licence renewals, following fees paid, Bermuda Health Council, as well, Mr. Chairman, as to cancelling or suspending or refusing licences—those validate any function the Minister of Health or the things are obviously very easily managed by the Di- Chief Medical Officer purportedly delegated to a public rector of the Department of Health. officer or public authority. But I did want to refer to . . . When I looked at Mr. Chairman, clause 1 is the title of the Bill. the Children Act, and I am not certain why or if there is Clause 2 provides that the amendments made a newer version, but the version that is online, under in the Schedule shall apply to the various legislation sections 76(1), 76(6A) and 76(6C), in the online ver- transferring the Chief Medical Officer’s functions ac- sion does not include the reference to the Chief Medi- cordingly. cal Officer. So, I am just curious as to why there is . . . Bermuda House of Assembly 320 7 December 2018 Official Hansard Report

I do not know whether what is online is not up to date. Then, the other question was an examining So, I wonder if the Minister could advise us what is physician . . . let me see which point that came in un- included in sections 71(6A) and 71(6C), because, ac- der. There are so many things here. Okay. Okay. I will cording to my copy, it did not mention the Chief Medi- pass over that comment. The CMO . . . cal Officer. The other question that I had was in section The Chairman: Where are you? 76B(1). Again, there was no 76B(1) in the online copy. So, it is not a criticism. When I start to look at changes Hon. Patricia J. Gordon-Pamplin: I am just looking in legislation, it is important to understand what we are here to make sure that I have the proper reference. changing and how what we are changing juxtaposes If I can get answers to those for the minute, against what is there. And I just have issues with that. and then I will just go back and clarify my writing so On page 7 of the Bill, it indicates that this is that I can ask the next question. going from the Chief Medical Officer to the Environ- mental Health Officer, and this is with respect to test- The Chairman: Any further speakers? ing of defibrillators. I just wanted clarity that, when this Minister, you have the floor. has been transferred over, we are ensured that the condition of the instrument is continuously being un- Hon. Kim N. Wilson: Thank you, Mr. Chairman. dertaken. A defibrillator is something that is, very Mr. Chairman, with respect to section 67 in clearly, urgent, urgently required when you have a the Schedule of the Children Act, at page 5 . . . medical emergency. And, even though the Chief Med- ical Officer may not do it, the Environmental Health The Chairman: Yes. Officer . . . is there a schedule? You know how in buildings, Mr. Chairman, you have elevator inspec- Hon. Kim N. Wilson: Yes, Mr. Chairman, the “fit and tions, and there is a schedule? Is there a schedule proper” designation, in order to determine whether or with respect to the condition of the defibrillator instru- not that person is able to operate and receive a li- ments? cence for running a day-care facility, requires cross- The other issue is under the Workers Comp, agency interaction. And, as such, the director is best where the [CMO] . . . this is now also moved to the placed to deal with that, because it is dealing with en- Chief Environment Health Officer. This is Workers’ vironmental health, to make sure that the place has Compensation Act 1965, page 7. And this is the the requisite two-point . . . I do not want to be sarcas- Workers’ Comp in section 28. This is like the penulti- tic, but 2.5 square feet for every one child, make sure mate clause on the page 7. In section 28(1)(f), delet- that they have the right toilets, and so forth. So, the ing CMO and putting “a medical practitioner appointed director, who oversees all of these agencies within the by the Minister.” And I am just wondering. I am sorry, Ministry of Health, is best placed to be able to address the one before that. It effectively says that . . . (Just those concerns which were raised in section 67. It is a give me one second.) cross-agency review. So, [at clause 4(g)(i)] the Minister appoints the Mr. Chairman, with respect to the other issue [medical practitioner after consultation with the] Ber- . . . actually, with respect to section 76, I am not sure muda Medical Doctors Association [BMDA]. And the what the Opposition is referring to. But in my Act, it question was, What if the Minister does not agree with says, at section 76(6A), “The Chief Medical Officer the BMDA’s choice? And this is in section 2(1) of the may issue a provisional certificate . . . .” So, the Chief principal Act, Workers’ Compensation Act 1965, sec- Medical Officer is referenced. So, I am not quite sure tion 2(1), definition of “medical aid,” taking out the which version of the legislation that the Honourable “Chief Medical Officer” and substituting “a registered Member is referring to. medical practitioner appointed by the Minister after And the reference to the Schedule, Mr. consultation with the Bermuda Medical Doctors Asso- Chairman. ciation.” What if the Minister does not agree with the BMDA’s choice? The Chairman: Yes. Section 71(6C) and section 76B(1) [of the Children Act]. The Chairman: It says “consultation,” you know. Hon. Kim N. Wilson: Mr. Chairman, I am sorry. What Hon. Patricia J. Gordon-Pamplin: Yes. Well, it does page? What? Page 5, still back on page 5? All of say “consultation.” But . . . well, I guess the Minister those references are incorrect. So, the Opposition does have the final say. may want to ensure that she has an up-to-date copy of the Children Act 1998. The Chairman: Yes. The Chairman: Okay. And [section] 76B is included in Hon. Patricia J. Gordon-Pamplin: Okay. So, I will that Act you have, right, the original Act? accept that. Bermuda House of Assembly Official Hansard Report 7 December 2018 321

Hon. Kim N. Wilson: Correct. It is in the version of [Motion carried: Clauses 1 through 4 passed.] the 1998 Act. Hon. Kim N. Wilson: Thank you, Mr. Chairman. The Chairman: Right. I would like to move that the Schedule be approved. Hon. Kim N. Wilson: And there was a question concerning . . . oh, you answered that, about the consul- The Chairman: It has been moved that the Schedule tation. be approved. So, thank you very much. Any objections to that? It has been approved. The Chairman: Any further speakers? The Honourable Member Pat Gordon- [Motion carried: The Schedule passed.] Pamplin, you have the floor. Hon. Kim N. Wilson: Mr. Chairman, I move that the— Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. Speaker. The Chairman: Preamble. I just wanted to ask the Minister if she could perhaps . . . I do not know how it works for information Hon. Kim N. Wilson: Yes, yes, Mr. Chairman. to be put up online. But the version . . . I know it is not the Ministry of Health. But because it relates to some- The Chairman: It has been moved that the preamble thing that is being impacted, that maybe through be approved. whatever system, that we can make sure that there is Are there any objections to that? an updated version that is online. It is kind of difficult There appear to be none. to look if we do not have a hard copy of the most re- Approved. cent [versions]. I think those questions were the most im- Hon. Kim N. Wilson: Thank you, Mr. Chairman. portant questions that I had. There are one or two I would like to move that the Bill be now re- other comments that I had. But I think it is quite ap- ported to the House as printed. propriate that I can just get clarity from the technical officers, because I think the Bill, as it stands, it is ob- The Chairman: Are there any objections to the Bill viously doing what it is designed to do. And that is being reported to the House as printed? relieving the Chief Medical Officer of extraneous re- There appear to be none. The Bill will be responsibilities that are best placed with someone else. ported to the House. Thank you, Mr. Chairman. [Motion carried: The Chief Medical Officer (Transfer of The Chairman: You are welcome. Functions and Validation) Act 2018 was considered by Minister, you have the floor. Do you want to a Committee of the whole House and passed without move these? amendment.] House resumed at 12:19 pm Hon. Kim N. Wilson: Yes, Mr. Chairman. I would like to move that the clauses 1 [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] through 4, including the Schedule, be approved— REPORT OF COMMITTEE The Chairman: Wait a minute. Hang on. CHIEF MEDICAL OFFICER (TRANSFER OF Hon. Kim N. Wilson: No? FUNCTIONS AND VALIDATION) ACT 2018

The Chairman: Do the clauses first. Just move claus- The Speaker: Members, are there any objections to es 1 through 4. the Chief Medical Officer (Transfer of Functions and Validation) Act 2018 being reported to the House as Hon. Kim N. Wilson: Okay. Mr. Chairman, I would printed? like to move clauses 1 through 4. No objections. It has been reported. That now brings us to a close of that matter, The Chairman: It has been moved that clauses 1 and we will move on to the second item on the Order through 4 be approved. [Paper] for today. That is the second reading of the Are there any objections to that? Allied Health Professions Act 2018, in the name of the There appear to be none. Minister of Health. Approved. Minister.

Bermuda House of Assembly 322 7 December 2018 Official Hansard Report

Hon. Kim N. Wilson: Thank you, Mr. Speaker. care professions throughout the establishment of its I move that the Bill entitled the Allied Health boards that assist the Council in achieving its func- Professions Act 2018 be now read a second time. tions. Mr. Speaker, since 1973 when that Act was The Speaker: Any objections? last updated, the Ministry has been in consultation No objections. with the Council. Further amendments were identified Continue. to address key issues around registration and renewal of registration, complaint-handling processes and oth- BILL er procedures, including a reorganisation of the legislation for more logical flow of content for stakeholders. SECOND READING Additionally, the proposed changes for complaint- handling, disciplinary procedures and appeals proce- ALLIED HEALTH PROFESSIONS ACT 2018 dures were also identified in order to ensure that the constitutional rights to a fair hearing exist. It is important to note that the efforts of the Council and the Hon. Kim N. Wilson: Thank you. Thank you, Mr. Speaker. Ministry to advance standards for professional prac- Mr. Speaker, I stand before you this afternoon tice and regulation are ongoing. to introduce the Bill entitled the Allied Health Profes- And, Mr. Speaker, I would like to just advise sions Act 2018. Mr. Speaker, the Ministry of Health is Members of the House that the existing professions committed to its vision, Healthy people in healthy that are currently regulated under the 1973 Act in- communities, and its core values of quality, equity and clude addictions counsellors; audiologists; chiropo- sustainability. Mr. Speaker and Honourable Members, dists; diagnostic imaging technologist, which includes I would invite all to review the Health Ministry’s subdivisions and specialities; dieticians; emergency Roadmap 2018–2022, which can be located at medical service practitioners, which also includes www.gov.bm/reports, because, Mr. Speaker, these subdivisions and sub-specialities; medical laboratory are a wide variety of initiatives underway to move us technicians; occupational therapists; physiotherapists; closer to attaining the vision of healthy people in and speech and language pathologists. So, those pro- healthy communities. fessions are already currently regulated under the Today, Mr. Speaker, I would like to focus on 1973 Act, Mr. Speaker. And what this Bill proposes to the Ministry’s ongoing work to improve the regulation do is add five further professions to also come within of health professionals in our community. Mr. Speak- the remit of the legislation. er, the regulation of health care professionals is es- So, Mr. Speaker, the majority of the provisions sential to ensure high-quality care, and protect and in the 1973 Act are incorporated into this 2018 Bill promote public health. The Allied Health Professions which is under the consideration now of the House. Act 1973 (and hereinafter, I will refer to that as “the However, Mr. Speaker, there are several other up- Act,” Mr. Speaker) is the legislation that ensures the dates which are also required. As previously stated, standards of practice for several health professions, Mr. Speaker, these updates include the incorporation through registration, monitoring, complaint-handling of chiropractors and four other professions, as well as and disciplinary procedures. the repeal of the Chiropractors Act 2002, which was Mr. Speaker, the Bill entitled the Allied Health never operationalised, Mr. Speaker. Professions Act 2018 proposes changes to the 1973 The Ministry is in consultation with the availa- Act in order to align it with the Ministry’s other legisla- ble professional associations and members of each of tion for health professionals, which will also enable the five professions proposing to be regulated, and efficiency in regulation, and to regulate five new pro- there are working groups currently developing stand- fessions. ards and registration criteria in preparation for the Mr. Speaker, the professions proposed for regulation under the 2018 Bill. regulation are: acupuncturist; chiropractors; counsel- So, Mr. Speaker, effectively, what we have is lors; massage therapists; and social workers. Conse- that these professions that will be added, the Ministry quently, Mr. Speaker, the changes include the repeal- has been in constant consultation with these profes- ing of the 1973 Act and the Chiropractors Act 2002. sions so that we can hear their views. And we are also And it will replace them with this 2018 Bill being intro- assisting these professions so that they can establish duced now for the consideration of this Honourable their own codes of practice, scope of practices, stand- House. ards, as well, which will outline things like entry into Mr. Speaker, the Council for Allied Health Pro- the profession, disciplinary measures, et cetera. So, fessions (“the Council”) is the legislated body that is we are working [extensively] with them. There has charged with ensuring that high standards of profes- been full consultation, Mr. Speaker, with these particu- sional competence and conduct are upheld, as well as lar bodies to add them to the professions that are al- to advise the Ministry on issues pertaining to them. ready in existence under the 1973 Act. The Council currently regulates more than 10 health Bermuda House of Assembly Official Hansard Report 7 December 2018 323

Mr. Speaker, there are other further specific gether. This has been a work in progress for quite updates in the 2018 Bill that I would like to advise some time, led under the direction of the Permanent Honourable Members. One is to improve representa- Secretary. The Policy Analyst and all of the team tion and efficiency of regulation by streamlining the pulled together this very comprehensive piece of leg- composition of membership on the Council, inclusive islation. Again, it had been taking quite some time for of a provision for the creation of boards with more us to get to where we are now, and they pulled it to- than one profession represented; to insert a provision gether with their hard work and dedication. And for to protect the Council and its boards, and the Profes- that, I would like to thank them. sional Conduct Committee, from liability; to require the Mr. Speaker, again, this had full consultation. renewal of registration to be tied to continuing profes- And the professions that are being added wish to be sional development; to mend or correct the profes- regulated. They wish to be part of this process. And sional titles of several professions in order to effective- this will help to secure the vision that we have at the ly ensure title protection, as well as to reflect the Ministry of Health, as well as to protect the public. changes in education and practice, over time. Thank you, Mr. Speaker. Another update is to significantly improve complaint-handling, disciplinary procedures and ap- The Speaker: Thank you, Minister. peal procedures, which include, Mr. Speaker, (1) to Does any other Member wish to speak? expand the power to establish a code of conduct that We recognise the Honourable Member from includes standards and scopes of practice for each constituency 23. profession; (2) to eliminate the complaint-handling Honourable Member, you have the floor. process under the 1973 Act and establish a new process that aligns with legislation for other health pro- Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. fessionals and satisfies the constitutional right to a fair Speaker. hearing; and to change appeals for registration deci- Mr. Speaker, my question is whether you wish sions from Cabinet to the Supreme Court. me to could continue now or, given the clock? Right now, Mr. Speaker, the appeals process with respect to registration is appealed to Cabinet. The Speaker: Actually, I was just writing down the And we are changing that so that the appeal will go time you got up and realised it was 12:30. straight through to the Supreme Court, Mr. Speaker, which is consistent with many other pieces of legisla- [Laughter] tion involving appeals against a decision affecting registration. The Speaker: Now, I am sure that Members would As I also said, Mr. Speaker, it is important to like to have a break at this time. This is customary. note that these particular professions, which are add- So, Minister Brown, would you like to take us ed to the 1973 Act, will be developing their own code to that period? of conduct, their own processes, their own standards and the like. The advantage of doing it the way that Hon. Walton Brown: Yes, Mr. Speaker. we are doing it now, Mr. Speaker, is that these par- I move that we do now adjourn for lunch, and ticular professions will have the opportunity to be able return at 2:00 pm. to be assisted by other boards that are long established. The Speaker: Members, we now stand adjourned For example, the physiotherapist board, which until 2:00 pm. No objections to that? is well established, will have some of these professions encompassed under it so that it can assist them Some Hon. Members: No. with development codes of practice, standards and the like, so that we can effectively complete our vision, [Gavel] Mr. Speaker, which, again, is regulation so that we have healthy people in healthy communities. Proceedings suspended at 12:31 pm Mr. Speaker, the 2018 Bill aims to standardise and improve the regulation across health care profes- Proceedings resumed at 2:02 pm sions and to ensure that allied health professions are subject to a more just disciplinary system. Overall, the [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] Bill entitled the Allied Health Professions Act 2018, Mr. Speaker, ensures high standards of practice that The Speaker: Good afternoon, Members. Are we protect both allied health professionals, their patients, ready to resume the session today? and their service users. And again, Mr. Speaker, if I can pause real [Gavel] quickly, because I certainly need to pay homage to the team at the Ministry of Health that pulled this to- Bermuda House of Assembly 324 7 December 2018 Official Hansard Report

BILL Hon. Kim N. Wilson: Point of order, Mr. Speaker.

SECOND READING The Speaker: Point of order.

ALLIED HEALTH PROFESSIONS ACT 2018 POINT OF ORDER [Misleading] [Debate continuing] Hon. Kim N. Wilson: Yes, Mr. Speaker, I believe this The Speaker: We now are resuming the debate on Honourable Member is misleading the House, per- the second reading of the Allied Health Professions haps inadvertently, but there was consultation . . . ex- Act 2018 and I believe the Shadow Minister was about cuse me, there was correspondence between our Whip and the Whip of the Opposition as recently as to take the floor before we broke for lunch. th Madam, would you like to continue? the 4 of December where the Whip of the Opposition agreed to go short. So for this Honourable Member to stand to Hon. Patricia J. Gordon-Pamplin: Yes, thank you, Mr. Speaker. her feet and suggest that we are trying to do something at the last minute without consultation is inaccu- rate, and is a misrepresentation and is misleading the The Speaker: Go right ahead. House. She may choose to turn around to her Whip Hon. Patricia J. Gordon-Pamplin: Mr. Speaker, it is and ask her Whip at what date—and I can tell you it with a little bit of concern that I contribute to this after- th noon’s debate. was the 4 of December—was it consented to to go short.

The Speaker: Mm-hmm. Thank you, Honourable Member. The Speaker:

Hon. Patricia J. Gordon-Pamplin: It was quite ap- Yes, Mr. Speaker, parent when the Minister gave her presentation earli- Hon. Patricia J. Gordon-Pamplin: I am glad the Honourable Member raised that beer, just before the lunch break—and this is on the Al- th th th lied Health Professions Act 2018—that this has been cause the 4 of December—today is the 7 —the 4 of a work in progress for quite some time. And she un- December was three days ago. So within a three-day derscored the fact that the technical officers have period of time, when it is normal that we would antici- worked tirelessly in order to bring the legislation to pate and expect that we would have two sittings to be where it is today. And I understand the job that the able to debate legislation, that we are required to do technical officers are required to do because we have something of this magnitude in such a short period of sat in this place and we sat in that space, so we un- time. That is a concern. That is a concern, Mr. Speak- derstand that there are things that are required in or- er. der to bring legislation to fruition. We recognise, Mr. And the Honourable Member is, you know— Speaker, that the wheels of governmental bureaucra- Now, now, Honourable Member, let me cy grind very slowly. The Speaker: But with that said, Mr. Speaker, when the Min- just caution you. I gave you a little leeway, but any ister can stand and say it has been a work in progress matter that is agreed to be done here is agreed to by for quite some time, we have in front of us legislation the Speaker. that impacts 23 pages of legislation and 8 pages of I agree— Schedules. And I preface my remarks, Mr. Speaker, to Hon. Patricia J. Gordon-Pamplin: say that this Bill was tabled last week Friday. Now, And . . . and— custom and practice gives us the opportunity to have The Speaker: sufficient time in order to look at legislation that has [Gavel] been tabled, to be able to discuss, understand and feel comfortable that when we come to this Honoura- The Speaker made that decision for ble House we are truly representing a supporting The Speaker: view, a contrary view, a position where we can hold this to proceed because the Speaker saw corre- hands on particular legislation and areas where we spondence that went back and forth indicating that might differ. both sides had acknowledged that it could be done When we do not have the opportunity, as the today. Based on that, we are now doing it. If the Minister has, to be able to be going through the birth- Speaker was not comfortable with that we would not ing pains of legislation, we are left at a severe disad- be doing it. vantage. We are in this Honourable House, intending So, you stressed your point. And now I am to do the people’s business; there is nothing in this going to suggest that you move on, because if you legislation as I have been able to glean— continue down that road then you are going to start Bermuda House of Assembly Official Hansard Report 7 December 2018 325

questioning the Speaker’s decision, and I am not go- to have was one with respect to personal trainers. And ing to have that. I know that this was a concern that has been articulat- ed. And with that concern, Mr. Speaker, we look at the Hon. Patricia J. Gordon-Pamplin: Mr. Speaker, I am interaction with the public of personal trainers that . . . not at all questioning your decision, sir. What I am where there could conceivably be negative impact to suggesting is that when we have something that is the public. this important— So I do know that according to the legislation under one of the clauses (and I do not remember off- The Speaker: I suggest you just move on. hand which) there is a possibility that new professions may be able to make application to be able to be in- Hon. Patricia J. Gordon-Pamplin: Yes, I will. But I cluded. think it is important for me to say this, if you will permit But with that said, Mr. Speaker, I would like to me, Mr. Speaker. To say that if there is better respect have the Minister, hopefully, favourably consider for the process, then we can engage effectively so should an application come from personal trainers, to that we can contribute— give that sort of favourable consideration because it is important the physical trainers are not left to go rogue [Inaudible interjection] in an environment in which people can have negative health outcomes as a result. Hon. Patricia J. Gordon-Pamplin: Are you the So what seems to happen here, Mr. Speaker, Speaker? is that each of the professions effectively . . . or the like professions will have a Board that is established. The Speaker: But the Speaker— And the boards that are established, in making sure that the membership applications relating thereto are Hon. Patricia J. Gordon-Pamplin: —so that we can appropriate applications to be processed, the legisla- contribute— tion effectively says that persons need to be skilled academically and professionally. The Speaker: —did suggest you move on. And I see Now the one thing that I just wanted to high- you continued down the same road. light in this particular instance is the necessity for a robust code of conduct. A code of conduct is included Hon. Patricia J. Gordon-Pamplin: No, I just wanted in the legislation, but a robust code of conduct, which to make this one point, Mr. Speaker. is effectively allowing for continuing professional development so that people who hold themselves out to The Speaker: No, no, no, no. You made your point. be providers of specific services are, not just some- Continue on, please. body who has been skilled academically and professionally, but rather somebody who has also kept up Hon. Patricia J. Gordon-Pamplin: So Mr. Speaker, it on the cutting edge of the advances in their own pro- is difficult to be able to be effective in my presenta- fessions in order to maintain currency in what it is that tion—and I am moving down a different path— they are required to do. I think that this . . . I did not see that this was specified. And it may be a combina- The Speaker: Okay. tion of the academic and professional nomenclature as well as the code of conduct, but it was not clearly Hon. Patricia J. Gordon-Pamplin: —without the req- stated, and I think that this is a very, very important uisite time to be able to understand all of the clauses, thing to do. all of the intent, and everything that is needed in order Now, I know that one of the things that gave to make a positive contribution to the debate. So, that me a little cause for pause was the registration of is important to mention. members of their respective professions and that So, let me just say, in terms of the legislation members are required, prior to the expiry of their cur- itself, to the extent that I have been able to under- rent membership, to . . . renew their membership. It stand what it is that they are attempting here, Mr. says only in the legislation “on or before.” So if “on or Speaker, is to recognise that there are efficiencies before” the expiry date one inadvertently fails, it does having an overarching umbrella. So we understand not seem to have a provision which enables one to that and we support that. say, I went past December 31 (which is my date for We are looking at the establishment of a reregistration), I’m now on January 5th because I got Council which is being embodied by this legislation. caught up at Christmas . . . and it does not say that And looking at this Council the . . . having the Council, there could be a consideration given for that person with its responsibilities of looking up designated pro- who was delinquent at the date certain to be able to fessions and being able to recognise what is needed rectify his oversight or anomaly at a future date. It ef- in this Allied Health Professions Act, with the limited fectively just speaks to you will register by the ap- time that we had, the only consultation that I was able pointed date or you could be struck off the register if Bermuda House of Assembly 326 7 December 2018 Official Hansard Report you don’t. But there has got to be some flexibility and Hon. Patricia J. Gordon-Pamplin: I am just asking a leeway––I have no doubt, in the interim that this would question in terms of the way this Act is . . . is written. be the intent––I am sure, to make sure that we do not So the other question that I have is with re- have people who may inadvertently be struck off a spect to the availability and the possibility of a locum register. tenens to be able to take the place of somebody who So the Council’s duties and responsibilities is registered. And the locum, obviously, would also . . . they, clearly, are key. What did not seem to be have to be registered, but it gives them a maximum of clear to me is, because this is a new Act and this a three-month period of time and during that three- Council is a new entity and the period of time for month period of time . . . it might not be sufficient. But which the Council members— I did not see that the ability for that same locum tenens to be able to extend their position for, let us Hon. Kim N. Wilson: Point of information, Mr. Speak- say, another period of a month if the substantive indi- er. Point of clarification, excuse me. vidual is not quite ready at the end of three months. Or would there be a requirement for a new locum The Speaker: Point of clarification. tenens to be brought in, such that the person holding that office does not fall afoul of their three-month re- POINT OF CLARIFICATION sponsibility? The comments that I wanted to make . . . ob- Hon. Kim N. Wilson: Thank you to the Honourable viously, I am concerned, as people indicated to me, Member for yielding. that you know personal injury is a challenge. But the The 1973 Act established the Allied Health . . . certainly the efficiencies and how the Board . . . Professions Council. This 2018 Act is . . . the Council how the Council is now overarching and the Boards still exists. What we are doing is we are adding a are intermingling and being overseen, it is creating a number of criteria but, in particular, we are allowing for situation which we, obviously, can support. But I do basically a mixing of professions. So one profession want to know that in this codifying that the . . . it that is already a member of Allied Health will now en- seems like we might be having another layer of infra- compass the acupuncturists. structure and bureaucracy, but in fact, once I read So the Council itself is still— through the legislation it seems to be pairing it down to a comfortable management situation. [Inaudible interjection] But I am just a little concerned . . . I certainly support the new professions that have come in, with Hon. Kim N. Wilson: Exactly. the five new ones that the Minister alluded to that have been included. And those are: acupuncturists; Hon. Patricia J. Gordon-Pamplin: Okay. the chiropractors, which presently exist, are now coming in under this legislation; counsellors; massage Hon. Kim N. Wilson: Thank you, Mr. Speaker, and therapists; and social workers. And, obviously, all of thank you for yielding. those are professions that form an integral part of our community in the services that they provide. So, obvi- Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. ously, apart from ensuring that they are all up to date, Speaker. And I appreciate the Minister making that that everything that they are required to do is con- clarification because these are the kinds of things that trolled, managed, and overseen and that they keep up I would have had the opportunity, with a little bit of to date in terms of the best practices, then obviously consultation with the technical officers, to be able to we will support this. come with an effective presentation. So that is the I do have a couple of questions that are more reason for my concern. specific to the legislation which I am quite happy to So I think that . . . with what I am seeing with discuss when we get into Committee. the Council, I did not see that the existing members But with the comments that I have made, Mr. were staggered in their appointment. And it might be Speaker, I would have loved the opportunity to have that this is the way it worked in the original Act. But if been able to discuss some of these issues with the everybody here, I think, according to what I read, that technical officers so that we could have an effective people would be appointed to the Council for a time debate. certain. If everybody is being appointed at the same Thank you, Mr. Speaker. day [and] they expire at the same time, is there any kind of overlap so that we have an effective continuity The Speaker: Thank you, Member. in the Council? In other words, if everybody is ap- Does any other Member wish to speak? pointed for a one-year or a two-year period of time— I recognise the Honourable Member from constituency 4. [Inaudible interjection] Honourable Member, you have the floor.

Bermuda House of Assembly Official Hansard Report 7 December 2018 327

Mrs. Tinee Furbert: Thank you, Mr. Speaker, and the new professions that are coming on board actually good afternoon. being involved in the actual regulation processes. And It actually gives me great pleasure to be able that is outlined in their ability to be on actual boards to speak to this particular Bill, because this Bill is one and actually being a part of the Council as well. And that has actually been in the works for a number of so there is that provision for specified professions to years, even under the former Government. be a part of the Board where there are areas of con- I would like to declare my interest. I was a cern for them. former Chair for the Allied Health Professions Council One area of concern that I have raised to the and served on that Council for a number of years. Minister before is the size of the Council should Ber- And we kept hearing, under the previous muda . . . you know, as we grow and there are more Government, that it was going to get tabled soon . . . it health or Allied Health Professions coming into play in was going to get tabled soon—soon, soon, soon was Bermuda. Currently, diagnostic imaging is one of the what we kept hearing. And so I am grateful that our growing professions. I believe [there are] over 100 Government has finally come forward and we are be- diagnostic imagers on Island. And you know what ing progressive in finally getting this Bill put through. happens when we get to numbers—and I am not hop- So a lot of the changes in this particular Act ing that we do not—but when we get to the numbers were actually recommendations that have come via of . . . let us say, the nursing field, how the Council or the policy analysis—both former and currently now— the Boards would be able to handle such a big capaci- and also allied health professionals as well who, cur- ty is concerning. Having each specific profession rep- rently or past, who had served on the Boards or the resented under the Council and it growing so hugely, I Councils. And so they do come with great understand- am hoping that there is provision where that does not ing and modernisation of an Act of 1973 to now make happen so that people can be fairly represented on it an Act of 2018. the particular Council. And so I just want to give due diligence in I also noticed, as far as the application for recognising the team who have finally gotten this Bill designations for specific professions that we have re- together to be able to bring it to us today to be debat- moved the criteria for actually having five professions ed and also to thank the allied health professionals from an association or not with an association to actu- who sit on the Boards and Council voluntarily . . . you ally be able to apply to be part of a specified profes- know, they do a lot of work behind the scenes volun- sion. Because before you had to have five or more tarily, even though it is a paid Board. But there is tons and now we have removed the five or more designa- of work that gets done beyond those, sort of, working tion so that people have more ease to be able to hours and months that they have to meet. come on to be underneath the Allied Health Profes- And so actually the Allied Health Professions sions Act. Council has been one of the leading councils or lead- What is also great about this legislation is the ing areas for other newer professions who are regu- fact that with the constitution of Boards there has lated in making sure that they are proficient in creating been some changes from what the Act used to say or developing codes of conduct and standards of before. But it allows for, again, the involvement of practice. specific professions to be recognised on the Boards The Bermuda Health Council has also been and usually these are chosen from the actual profes- helpful with assisting the Council in creating actually a sions themselves and so not from any other group whole standard of a standard of practice as well. And who may not understand the specified professions. the new professions coming under the Allied Health And so there are provisions in this Act to make sure Professions [Council] actually will have something that there is equal representation of professions—both already in place as it comes to the general Allied on the Boards and on the Council. Health Professions standards of practice—sorry— Another big piece to this Act is the application code of conduct document. for registration. There was a piece in there in the 1973 This Bill also represents an amalgamation, Act which spoke to the assistants of specific profes- just like we added recently the midwifery to the Nurs- sions coming on board and it spoke to the Act having ing Act, but an amalgamation of professions coming a role or an enrolment. And actually now we have tak- together to be regulated under one Act. And so it is en out some of that language and it is now just a reg- creating a modernisation for other professionals to istration for assistants. And so that actually will open actually come on board to be regulated, professions up some doors for some assistants that actually are that have been around for a long time but have not out there—maybe an occupational therapy assistant, had the opportunity to be regulated. And so this is giv- a physiotherapy assistant, a speech and language ing them opportunity to be able to do that. therapy assistant. It has made the process now more I also noticed in the Act that there is a provi- seamless when an assistant is trying to seek out regu- sion for continued consultation with Allied Health Pro- lation. fessions—the Boards and the Council—as it comes to The Minister has also recognised that when- them actually having to discharge their functions, or ever there is an appeal process that the previous Act Bermuda House of Assembly 328 7 December 2018 Official Hansard Report spoke to appealing to the Cabinet and now there is . . . the council had requested . . . I am sorry, the Pro- parity amongst other Acts where they are actually ap- fessional Conduct Committee had requested people pealing to the Supreme Court, which makes more to come in and speak or send in particular documen- sense than having to appeal to Cabinet. So that was a tation and they would skip the Island or leave the Is- huge change in this particular Act. land and then we could not . . . we had no power or What I did see in this Act . . . where we talk ability to make them bring documentation in or sit be- about provisional registration, something which oc- fore an actual committee. And so now the ability to curred previously when people were collecting all of summons someone is a key fact and a key piece of their documentation, or you had a new grad who power to be able to assert some authority in an allied might not necessarily have the actual paper document health professional having to be involved in the Pro- [in hand], when they have passed their exam and fessional Conduct Committee deliberations. sometimes they are right in the middle of the registra- So, as I mentioned before, all of the Boards tion process and they are just waiting for that docu- and Councils work very diligently in regard to produc- ment to come in, then provisional registration I know ing their standards of practice and their codes of con- in other jurisdictions is granted until that actual paper duct. They do that and they have those documents does come in. And I see the Act does not necessarily ready. The new professions that are coming on board speak to provisional registration in that capacity where will have some guidelines that they will have available people have totally completed their coursework, totally to them to be able to create their own code of conduct completed their training, but they are just waiting for and standards of practice. So they will not have to that document to come in to say that they have reinvent the wheel too much other than what is specif- passed their exams. ic to their actual practice, but there is lots of help out And so to make the process more seamless there for them to be able to do that. And I am sure . . . they have passed their exams, they know they they are very grateful to finally come on board and be have done well, we are just waiting for the documen- regulated in such a fashion. tation to come in. If provisional registration is granted, I do see that the fine has been increased in it is granted with a deadline or with the criteria of that regard to someone using a specific profession’s title. documentation coming in. And so we will not delay the Hopefully the increase in the fine will deter people registration process because a certain document has from doing this. This actually does happen. We see not come in. this out in the community where somebody will have Another area the Act of 1973 spoke to was on their business card that they are representing the Professional Conduct Committee. Previously it some type of nurse. Particularly in this care-giving spoke to a Preliminary Conduct Committee. And the industry you will see people coming up or inventing Preliminary Conduct Committee has actually been some sort of title that they are not supposed to use. removed and so that leg of professional conduct was And so it is also important for making sure that pro- an extra leg where both committees kind of had the fessions are separated and they have access to par- same duties. And so that particular leg was removed ticular titles that they work so hard to achieve. out of this Act so that it was a more seamless ap- I just want to speak to the repealing of the proach to having to deal with professional conduct. Chiropractors Act, and now the chiropractors are com- One of the requests I know of on the council ing under the Allied Health Professions Act. At times was to have more support when it came to the Pro- there can be many health professions in Bermuda and fessional Conduct Committee and actually the pro- sometimes the grouping and the sizes of the health cesses related to professional conduct. And so the Act professions can be very small and so having to come has outlined this very nicely. You do not have to under one umbrella can be very helpful when you are guess anymore in regards to some areas as it relates having to track a particular registrant or you are hav- to professional conduct. ing to track regulation guidelines. And so while it is not The other area in here that will be a key piece the most ideal . . . and I know that some of the chiro- was when there was a professional conduct complaint practors pushed back in regard to the repealing of it was never really clear in regard to who could actual- their Act. But they are still regulated under the Allied ly make a complaint. And at times we would have third Health Professions Act. And, hopefully, with the inclu- parties making complaints or you would have profession of having specific professions to be part of the sionals with the requests of their clients actually mak- Council or part of a particular Board, they will still have ing complaints to the Professional Conduct Commit- their thoughts and standards of practice, and any sort tee. And so now there is provision for persons acting of decision that would need to be made on behalf of a on behalf of the complainant and it is very clear when chiropractor, that can now occur. it comes to the Professional Conduct Committee. And then just one big change where it speaks So a lot of cleaning up has been done. I see to the Schedule and just the interchange of (and the an additional power—the ability to summon people Minister spoke on this already) in regard to the differ- when it comes to the Professional Conduct Commit- ent names of different professions that they have, as tee. That ability was not there before where we had to new educational programmes come about or some- Bermuda House of Assembly Official Hansard Report 7 December 2018 329 one may be trained in the UK or someone may be at once. As a matter of policy, they are always contin- trained in Canada or someone may be trained in the ually staggered so that you would have some type of US, there are different names that are interchangea- institutional knowledge remaining at the Board when ble when it does come to professions. So in some ju- new board members are appointed. risdictions you may hear the term “physical therapy” or And with respect to the issue that was raised you may hear the term “physiotherapy” and the same concerning the fear that the growth of the Council will with the term “chiropodist” or the term “podiatrist.” continue to grow and that the Council will grow as new Now this Act reflects more of a modernisation professions come on board, the whole purpose of this when it does come to professions which have different legislation—as is indicated in the Act—is that we are names across different fields. And so all those podia- allowing for mixed Boards. So, therefore, mixed trists that are out there, I am sure, will be very happy Boards will prevent any type of bolstering or growth with this change and the reflection in that they can be unnecessarily of the Allied Health Professions and it now identified under the Law as a podiatrist. Or, par- will also improve efficiency. ticularly, as a . . . because I know another one that For example, the acupuncturists, the massage was key when I was former Chair was the “medical . . . acupuncturists and massage therapists are all fall- laboratory technologist”, where before they were ing within the actual professional body of the Board termed as a “technician.” which is labelled as physiotherapy. So we are mixing And so as education changes, colleges professions so that we will not continue to grow the change, we are just making sure that we remain up to Board exponentially because new professions will date with what titles are out there so that people can come on board, which is the principal objective of this be recognised in many different jurisdictions. legislation. So that we are not growing the Allied Thank you, Mr. Speaker. Health [Professions] Board exponentially, but we are allowing for mixed professions when professions have The Speaker: Thank you, Honourable Member. a similar structure, such as massage therapists and Does any other Honourable Member wish to acupuncture therapists—it is common fit for them to speak? No other? be under the physiotherapists. So that is the whole Minister. point of us mixing the Boards. So the question about growth is really an un- Hon. Kim N. Wilson: Thank you, Mr. Speaker. necessary question because we are mixing the Mr. Speaker, there were a couple of questions Boards, which is the objective and the mischief of the that were asked during the general debate which I will Act. endeavour to answer, in no particular order. With respect to the issue concerning a per- [Inaudible interjection] sonal trainer . . . and I can understand the concern that was raised by the Honourable Member. However, Hon. Kim N. Wilson: Yes. personal trainers actually, in addition to them having With that, Mr. Speaker, I would like to move their own series of certifications to enable them to that this Bill be now committed. provide that service, they are not health professionals. So, therefore, they would not fall within the remit of The Speaker: Thank you, Minister. this 2018 piece of legislation. Deputy? The issue concerning continuing education, which is clearly important, and the Honourable Mem- House in Committee at 2:42 pm ber who sits opposite would obviously be familiar with this as a member of CPA Bermuda, myself as a mem- COMMITTEE ON BILL ber of the Bermuda Bar Association, that continuing education plays a very, very important role in many ALLIED HEALTH PROFESSIONS ACT 2018 professions. And this is not dissimilar to the provisions under this legislation because the standards of prac- [Hon. Derrick V. Burgess, Sr., Chairman] tice . . . the Act provides that it will require the standards of practice to be adhered to as well as continual The Chairman: Honourable Members, we are now in . . . I say continual legal education, sorry—continual Committee of the whole [House] for further considera- professional education for these respective profes- tion of the Bill entitled Allied Health Professions Act sions. 2018. Also, Mr. Speaker, there was an issue that Minister, you have the floor. was raised concerning the Boards and this is a re- enactment of the 1973 Act. So, effectively, the provi- Hon. Kim N. Wilson: Thank you, Mr. Chairman. sions that relate to the Boards remain in this one be- Mr. Chairman, this Bill would repeal the Allied cause it is a re-enactment. So the Boards themselves Health Professions Act 1973 and re-enact this Act will . . . they can be replaced; they will not be replaced with amendments. Chiropractors and certain other Bermuda House of Assembly 330 7 December 2018 Official Hansard Report new specified professions would be regulated under The Chairman: —clauses 4 through 10? this Act, and the Chiropractors Act 2002 would be re- No. pealed. Continue. Mr. Chairman, I would like to move these clauses by topic with your leave. Hon. Kim N. Wilson: Thank you, Mr. Chairman. Clause 4 provides for the appointment and The Chairman: Mm-hmm. constitution of the Council, and gives the provisions contained in Schedule 2 effect with respect to the Hon. Kim N. Wilson: And starting with clauses 1 Council. through 3 which concerns the citation, the interpreta- Clause 5 lists the functions of Council. tion, and where the Act does not apply in relation to Clause 6 provides for application for designa- practices by certain armed forces. tion as a specified profession to be made to the Minis- ter by an association of members of a health profes- The Chairman: Continue. sion, or (if there is no association) any members of a health profession. After receiving an application, the Hon. Kim N. Wilson: Mr. Chairman, clause 1 pro- Minister may either approve or refuse to approve the vides a citation for the Bill. application without investigation, or conduct an inves- Clause 2 defines the various expressions tigation in accordance with clause 8 to determine used in this Act. It also provides that the Council for whether a health profession should be designated. Allied Health Professions [“the Council”] shall, so far Clause 7 provides that the Minister may, in as is practicable, discharge its functions under this Act the absence of an application under clause 6, on his after consultation with members of the specified pro- own initiative conduct an investigation to determine fession concerned or, where there is a Board for the whether a health profession should be designated. specified profession, after consultation with the Board. Clause 8 sets out the procedure for an inves- Mr. Chairman, clause 3 provides that this Act tigation regarding designation of a specified profes- is not to apply in relation to the practice of a specified sion. profession by a person who is an officer or employee Clause 9 provides that, if the Minister deter- of certain armed forces on, or in relation to, a person mines that a health profession should be a specified who is a member of such a force, the family of such a profession, she shall so designate the profession and member, or a person who is employed directly by add it to Schedule 1 in accordance with clause 10. If such a force. the Minister determines that it is contrary to the public interest to designate the health profession as a speci- The Chairman: Any further speakers? fied profession, the Minister shall refuse the applica- There appear to be none. tion and provide the applicant with reasons for the Minister? refusal. Clause 10 provides that the Minister may by Hon. Kim N. Wilson: Thank you, Mr. Chairman. order amend Schedule 1 by: (a) varying the definition I would like to move that clauses 1 through 3 or style of any specified profession, or (b) adding any be approved. profession thereto or removing any profession there- from. A person practising a new specified profession The Chairman: It has been moved that clauses 1 in Bermuda may temporarily continue to so practise through 3 be approved. without being registered in that profession until such Any objections to that? date as is appointed by the Minister in the order add- There appear to be none. ing the specified profession to Schedule 1. The order Approved. may include such other transitional provisions as the Minister thinks necessary. The negative resolution [Motion carried: Clauses 1 through 3 passed.] procedure shall apply to the order.

Hon. Kim N. Wilson: Thank you, Mr. Chairman. [Background noise] I would like to move clauses 4 through 10, which concern the constitution of the Council of Allied Hon. Kim N. Wilson: Shall I speak louder? Health Professions, application for designation of specified professions, and the investigation and de- The Chairman: Continue. termination by the Minister as it relates to the designa- Continue, do not let that disturb you. tion of a specified profession. [Laughter] The Chairman: Any objections to moving— Hon. Kim N. Wilson: Mr. Chairman, I would now like Hon. Kim N. Wilson: [Clauses] 4 through 10. to move clauses 4 through 10 be approved. Bermuda House of Assembly Official Hansard Report 7 December 2018 331

The Chairman: No, it has got to be responded to first. The Chairman: Minister, you need to include the whole House. Hon. Kim N. Wilson: Oh, sorry. I was distracted by that sound to my left. Hon. Kim N. Wilson: Sorry.

The Chairman: Do not be, my dear. Ms. Susan E. Jackson: So those who want to make Any further speakers on clauses 4 through application . . . you know, I am just curious whether 10? and how the broader community of counsellors will The Chair recognises the Honourable Mem- know to make that application. Whether there is going ber Pat Gordon-Pamplin. to be any kind of public announcement so that people Continue. know that if they are practicing, in particular at home, we have got counsellors in churches—if they are go- Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. ing to have to make an application. Chairman. So I just want to know— Mr. Chairman, I understand and accept the Minister’s explanation with respect to physical train- The Chairman: Ms. Jackson, do not leave the Chair ers. My question is under clause 6, is there anywhere out, please. outside of this that they could be controlled, managed, Do not leave us out. The Chair needs to un- overseen? It is not that it does not come under Allied derstand what you are saying. Health and I am just inviting the Minister to consider because I think that is an important point. Ms. Susan E. Jackson: Sorry, Mr. Chairman. Investigations regarding designations. The Minister (this is on clause 7) it says, “the Minister may, The Chairman: That is all right. in the absence of an application under clause 6, on his own initiative conduct an investigation to deter- Ms. Susan E. Jackson: Yes. mine whether a health profession should be designat- So, yes, I just am curious just to make sure ed.” And I think that is, perhaps, something that we that the people who are out in the counselling com- could embrace and incorporate for areas that are munity, in particular, are aware of the application and causing public concern. whether that is going to include church counselling Outside of that, I have no further questions. which takes place in churches, whether this is going to . . . you know, include a number of other people that The Chairman: Any further speakers? may be practising at home or not know. The Chair recognises the Honourable Mem- ber Susan Jackson. The Chairman: Any further speakers? Ms. Jackson, you have the floor. The Chair recognises Pat Gordon-Pamplin.

Ms. Susan E. Jackson: Thank you, Mr. Chairman. Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. My question is around counsellors. I am just Chairman. wondering whether the broader community will be in- Mr. Chairman, this is on page 4 under clause formed because I imagine there are a number of 4 with the constitution of the Council. I did ask the counsellors that are home-based practitioners— question in the general debate and, as I said . . . I guess it has just now come clear that the Council . . . The Chairman: What particular clause are you talking or let me ask the question. Will the Council that is the about? leftover, if I can put it that way, the remnant from the 1973 Act be brought in as the base of the Council now Ms. Susan E. Jackson: I am referring to sort of the so that we will have that continuity on the Council? So designation of specified professions. that . . . you know, because this is a new Council based on this new Act, so I do not want to see that The Chairman: The designation— everybody gets appointed and then they sort of fall off at the same time. Ms. Susan E. Jackson: So that is 6, clause 6. The Chairman: Any further speakers? The Chairman: Clause 6? The Chair recognises the Minister.

Ms. Susan E. Jackson: Around the application, mak- Hon. Kim N. Wilson: Thank you, Mr. Chairman. ing an application. Starting with the last question first, as I indicated previously, this is a re-enactment. So that Board [Inaudible interjections] will remain as . . . insofar as if there are any that have

Bermuda House of Assembly 332 7 December 2018 Official Hansard Report been statute barred and their term has expired. So it The Chairman: It has been moved that clauses 4 is just a re-enactment. through 10 be approved. The first question, I have to apologise to the Are there any objections to that? Member from constituency 20 because I am not There appear to be none. 100 per cent sure to what the Honourable Member is Approved. referring. However, clause 6 does provide that an application by a profession can be made to the Minister [Motion carried: Clauses 4 through 10 passed.] and then, obviously, the Minister will consider whether or not that profession should be added to the Board or Hon. Kim N. Wilson: Mr. Chairman, with your leave, I mixed in, as we are doing now, mixed with a particular would like to proceed by moving clauses 11 and 12 profession. concerning the constitution of Boards established un- So when it comes to church counsellors, if der the Council for Allied Health Professions. they want to form and they come together and they decide they want to establish their own code of prac- The Chairman: Continue. tice, their own standards, their own terms of reference, so to speak, and then they want to present [it to] Hon. Kim N. Wilson: Clause 11 provides for the con- the Minister because they want to be regulated under stitution of Boards. Each Board consists of a Chair- the Allied Health, then it would be certainly something man appointed by the Minister, and other members that we would consider. elected from among registered practitioners practising However, this Act is dealing with the social the specified profession or specified professions for workers so, I guess, there is nothing to preclude them which the Board is established. Where a specified from doing it. I am not sure how they would organise, profession is added to Schedule 1, the Minister shall, but that is a different issue. It may have been a hypo- after consultation with the Council, determine whether thetical question, but the point specifically, I think, to the persons lawfully practising the specified profes- answer the Honourable Member’s question is that with sion shall: (a) be regulated by the Council, (b) be respect to clause 6, it does allow for professions to regulated by an existing Board, or (c) be regulated by come and make application if they wish to have any a new Board. type of involvement. And that would include church If I can pause, please, because I think this counsellors, I guess. actually directly answers the question of the Honoura- ble Member who just took her seat with respect to the The Chairman: And number 7? provisions of the church counsellors’ group under You answered number 7 earlier? clauses 6 and 7. Clause 11 (if I can repeat that) provides for Hon. Kim N. Wilson: Number 7? the constitution of the Board and each Board will consist of a Chairman appointed by the Minister, and the The Chairman: Yes, investigation by a Minister . . . other members elected [from] amongst the registered you said it is tied in— practitioners practising the specified profession. Where a specified profession is added to Schedule 1, Hon. Kim N. Wilson: It is tied to [clause] 6. the Minister shall, after consulting with the Council, determine whether those persons lawfully practising The Chairman: Okay. the specified profession shall: (a) be regulated by the Council; (b) be regulated by an existing Board (i.e., Hon. Kim N. Wilson: Sorry, Mr. Chairman. the mixing which we are seeing now); or (c) be regu- [Clause] 7 just allows for the refusal of such lated by a brand-new Board. The Minister may, after application. consultation with the Council, if she is of the opinion With that, Mr. Chairman, I would like to— that it is in the public interest to do so, establish a whole new Board or, after consulting a Board, abolish The Chairman: Just one second. a Board. So that is where your church counsellors are Any further speakers? going to come in. Okay, Minister, you may . . . And clause 12, Mr. Chairman, lists the functions of the Board. Hon. Kim N. Wilson: Okay, actually . . . The Chairman: Any further speakers? The Chairman: Do you want to move [clauses] 4 There appear to be none. through 10? Minister, would you like to move clauses 11 and 12? Hon. Kim N. Wilson: Yes, Mr. Chairman. I would like to move that clauses 4 through 10 Hon. Kim N. Wilson: Yes, thank you, Mr. Chairman. be accepted and form part of the Bill. Bermuda House of Assembly Official Hansard Report 7 December 2018 333

I move that clauses 11 and 12 be hereby ap- may apply to the Council to have his registration des- proved. ignated as inactive and shall return his certificate to the Registrar. The Council shall direct the Registrar to The Chairman: It has been moved that clauses 11 enter a notation on the register indicating inactive sta- and 12 be approved. tus. A person whose registration is designated as in- Are there any objections to that? active and who seeks to return to practise in Bermuda There appear to be none. may apply to the Council for reissue of his certificate. Approved. Clause 20 provides for the Council to direct the removal of a person’s name from the register in [Motion carried: Clauses 11 and 12 passed.] certain circumstances. Any person aggrieved by a direction of the Council may, within 28 days from the The Chairman: Continue. date of receiving notice of the direction, appeal against the direction directly to the Supreme Court. Hon. Kim N. Wilson: Mr. Chairman, I wish to move Clause 21 provides that a person whose clauses 13 through 21 concerning the Registrar of the name is removed from the register may be registered Allied Health Professions, the maintenance of the reg- in the register again only if a direction to that effect is ister, the registration and renewal of registrations for given by the Council on the application of that person. Allied Health Professions. The Chairman: Any further speakers? The Chairman: Continue. The Chair recognises the Honourable Mem- ber Pat Gordon-Pamplin. Hon. Kim N. Wilson: Mr. Chairman, clause 13 provides for the Minister to designate, on such terms and Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. conditions as are necessary for the proper carrying Chairman. out of the provisions of this Act, a person to be the Mr. Chairman, I draw the Minister’s attention Registrar of Allied Health Professions [“the Registrar”]. to page 11, clause 17 on “Renewal of registration” and Clause 14 provides for the form and content it is a question that I asked her during the general de- of the register, for the maintenance of the register by bate. And there it specifies that: “The Council may the Registrar, for its availability for inspection, and for cause the registration of a person to be renewed if the its publication. person on or before the expiration date of his registra- Clause 15 provides the procedure for an ap- tion” makes the application and pays the renewal fee. plication for registration by a person who seeks to That is the question that I wondered . . . if practice a specified profession in Bermuda or to be an there is any levity in respect thereof because if some- assistant in a specified profession in Bermuda, and body inadvertently gets past the date certain and has the determination of such applications. Any person not re-registered, is there some kind of application . . . who is aggrieved by a decision to refuse registration even if there is a necessity to pay an additional fee for or renewal of registration may, within 28 days after late registration or something? But it does not seem being notified in writing of the decision, appeal to the like the intent would be to strike somebody off, but this Supreme Court against the decision. does not give them any flexibility based on what we Clause 16 provides that the registration of a have here in the event of an inadvertent oversight. “registered person” (a registered practitioner or an So I wonder if the Minister could speak to that. assistant) has effect for a period of two years from the date of his registration or such shorter period as may The Chairman: Minister, do you want to respond to be specified in the certificate of registration issued to that? him. Clause 17 sets out the requirements for the Hon. Kim N. Wilson: Mr. Chairman, I am just looking renewal of registration. The Council may cause to be at [clause] 17(1). Is that what the Honourable Member removed from the register the name of any person was . . . who fails to renew his registration or whose application for renewal is refused. Hon. Patricia J. Gordon-Pamplin: Yes. Clause 18 provides for proof of registration The Registrar may issue a certificate regarding a per- Hon. Kim N. Wilson: Mr. Chairman, I will endeavour son’s registration. The certificate would be admissible to get that answer. However, I do understand that with in any proceedings as prima facie evidence of the all statutory boards there is normally a prescriptive facts stated therein. date in which the registration application has to be Clause 19 provides that, where a registered submitted. person intends to be absent from Bermuda, to prac- However, there also is inherent jurisdiction to tise outside Bermuda, or to refrain from practising in allow for circumstances such as illness or train wreck Bermuda, for a period of more than 12 months, he Bermuda House of Assembly 334 7 December 2018 Official Hansard Report or something that occurred that interfered with them permits; especially those that are multi-year work getting the application in on time. permits, like massage therapists?

The Chairman: Yes, it says that in the Act, but go The Chairman: Any further speakers? ahead. It says “satisfies the requirements of section The Chair recognises the Honourable Mem- 15(5).” ber from constituency 4, Tinee Furbert.

Hon. Kim N. Wilson: And then you go back to Mrs. Tinee Furbert: Thank you, Mr. Chairman. [clause] 15(5). Just on page 11, speaking to clause 15, “Ap- plication for registration” where it speaks to “The Reg- The Chairman: It is here somewhere. istrar shall publish a notice of the registration in such a manner as the Minister shall determine.” Hon. Kim N. Wilson: [Clause] 15(5) is at page 10, Mr. If the Minister could speak to how frequently Chairman. this is done now. I know—

The Chairman: [Page] 11 in this one . . . 17(5), I am The Chairman: You have got to ask a question, my sorry. Oh, [clause] 15(5) under renewal of registration, dear. yes. It refers back to . . . Mrs. Tinee Furbert: So how frequently is this done Hon. Kim N. Wilson: Mr. Chairman, if . . . now? And then how frequently will it be done in the future? The Chairman: Yes, it is there. It is there. The Chairman: Minister? Hon. Kim N. Wilson: I am just getting something from the drafters, excuse me. Hon. Kim N. Wilson: Yes, Mr. Chairman. . . . oh, dear. I just had a senior moment . . . I wonder if . . . The Chairman: If you are late you are late; but it does are they coming more frequently? not disqualify you from registering. I wonder if the Honourable Member from constituency 20 can repeat her question. Hon. Kim N. Wilson: Thank you, Mr. Chairman. And the draftsmen said something similar, actually. Ms. Susan E. Jackson: I was just wondering whether the register would also contain the names of work [Laughter] permits on multi-year contracts.

Hon. Kim N. Wilson: The draftsman just . . . if I can Hon. Kim N. Wilson: Thank you for that question. read, Mr. Speaker— That is absolutely correct. Even if you are on a work permit, in order to be recognised under this The Chairman: Yes. designation (which you would need so that you would be able to practice) then the work permit would be . . . Hon. Kim N. Wilson: —from the drafter who drafted I mean, the registration would acknowledge persons this legislation, says that the person may be re- that are also work permit holders as well as Bermudi- moved—that is that may and shall word—may be re- ans. Because in order to be registered . . . let us say moved from the register, not must be removed. So it is you are a massage therapist or a physiotherapist— . . . the element of “may” as you would know, Mr. and we know there are a number that are on work Chairman, is a discretion, it is not an absolute bar. permits—they would like to be registered . . . they would have to, there is a requirement for them to be The Chairman: Yes. registered under their Board. So notwithstanding that they are on a work permit, they must first also seek Hon. Kim N. Wilson: With that, Mr. Chairman, I would registration. So that would include, obviously, persons like to move that those clauses be— that are on work permits. And with respect to the question concerning The Chairman: Just one second, Minister. how often the Registrar publishes this information, I Any further speakers? will get that information and endeavour to provide it to Yes, one further speaker is the Honourable that Honourable Member in caucus. Susan Jackson. The Chairman: Any further speakers? Ms. Susan E. Jackson: Thank you, Mr. Chairman. Minister, move— Just a quick question: Will this register also include people who are working in Bermuda on work Bermuda House of Assembly Official Hansard Report 7 December 2018 335

Hon. Kim N. Wilson: I would like to move clauses Clause 26 provides that where a court finds a 11— registered person guilty of an offence and the circumstances of the offence form, in whole or in part, the The Chairman: Thirteen. subject matter of a complaint under this Act, the court shall take into account an administrative penalty im- Hon. Kim N. Wilson: Sorry, [clauses] 13 through 21. posed under clause 25 in respect of the complaint when sentencing the registered person. It also pro- The Chairman: Yes. vides that a penalty imposed under clause 25 is re- It has been moved that clauses 13 through 21 coverable by the Crown as a debt. If a person fails to be approved. pay a penalty imposed under clause 25, the Council Any objections to that? may direct the Registrar to remove the person’s name There appear to be none. from the register. Approved. Clause 27 provides that it shall be the duty of the “appropriate authority” (the relevant Board, if a [Motion carried: Clauses 13 through 21 passed.] Board is established for that specified profession, or the Council if no Board is established for the specified Hon. Kim N. Wilson: Okay, thank you, Mr. Chairman. profession) to prepare, and from time to time amend, I would like to proceed by moving clauses 22 after consultation with the Council (if a Board), a code through 27. of conduct which the appropriate authority considers to be conduct and standards that are proper for regis- The Chairman: Continue. tered practitioners and for assistants in a professional respect. The appropriate authority shall send to each Hon. Kim N. Wilson: Mr. Chairman, clauses 22 registered person, to his address on the register, a through 27 concerning the Allied Health Professional copy of the Code and of any amendment made to the Conduct Committee, the procedure for investigating Code. The Code may contain guides to ethical con- complaints, the procedure for inquiry and disciplinary duct, standards of practice or scopes of practice. powers of the Council for Allied Health Professions Thank you, Mr. Chairman. and the establishment of a code of conduct. Clause 22 establishes the Allied Health Pro- The Chairman: Any further speakers? fessional Conduct Committee (“the Committee”). The Chair recognises the Honourable Mem- Complaints against a registered person may be made ber Pat Gordon-Pamplin. to the Committee, and it is the Committee’s functions to investigate such complaints. Schedule 3 provides Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. for the appointment and proceedings of the Commit- Chairman. tee and other matters relating to the Committee. Mr. Chairman, I refer to page 13, clause 22 Clause 23 provides the procedure for the in- and subsection (2)(b). And basically subsection (2) vestigation of complaints by the Committee. The requires that “complaints may be made, in accordance Committee informs the Council of its findings and may with subsection (5), against any registered person, make such recommendations as it thinks fit to the including allegations that” (and (b) which is where I Council, including a recommendation that no further am particularly concerned) “the person is guilty of pro- action be taken. Before imposing any disciplinary fessional misconduct.” measure, the Council must review any documents or Now, presumably the burden of proof has to information submitted to it by the Committee. be more than “is guilty of” because it would seem to Clause 24 provides that if, pursuant to an in- me that there are many people who are guilty of an vestigation under clause 23, the Committee places the awful lot of things but they have never actually gone to matter before the Council for determination, the court, they have never actually been convicted. So I Council shall inquire into the matter. The procedure am wondering whether [subsection] (2)(b) as opposed for determination of the matter by the Council is set to saying “the person is guilty” . . . “allegations that the out in this clause. Following its inquiry, the Council person is guilty of professional misconduct” whether makes a decision as to whether the complaint is we should basically have a higher burden of proof for proved or not proved, in whole or in part, together with conviction. Because this is going to be something reasons for its decision. The registered person against against which the Council—the PCC—the Profession- whom the complaint is made may appeal to the Su- al Conduct Committee is going to be looking. Some- preme Court against a decision of the Council within times allegations can come and they [may not] neces- 28 days of receiving written notice thereof. sarily have any substance. So I am just curious about Clause 25 lists the disciplinary powers of the that. Council. One of the disciplinary penalties that may be And the other question is on page 16, in imposed by the Council is a civil penalty in an amount clause 24, and this is with respect of subsection (7). not exceeding $2,000. This is following all of the inquiries into complaints Bermuda House of Assembly 336 7 December 2018 Official Hansard Report where the Council has done whatever it has to do to Hon. Kim N. Wilson: Mr. Chairman, those concern follow up on a complaint that has been made. [It the practice of specified professions, use of profes- states], “The Council shall give written notice to the sional titles, and penalties. complainant and the registered person against whom Clause 28 provides that a person who is a a complaint is made . . . .” Sometimes complaints registered practitioner in a specified profession and come in and they are anonymous complaints, and my who has been duly issued with a certificate of registra- question is, Will there be the fielding of any complaint tion is entitled to practise in the specified profession in where the complainant does not necessarily wish to which he is registered in Bermuda and to demand and identify himself for fear of further repercussions? I am recover any reasonable charges for services rendered just curious as to how that would . . . how that plays by him in that capacity. Conversely, a person cannot out. practise a specified profession (by whatever name Thank you. called) or practise as an assistant in a specified profession in Bermuda, unless he is registered in respect The Chairman: Any further speakers? of that profession or authorised to practise that pro- Minister? fession under clause 32 (as a locum tenens). A person, whether or not a registered practitioner, shall not Hon. Kim N. Wilson: Thank you, Mr. Chairman. take or use, or affix to or use in connection with his With respect to the first question at page 13, premises, any name, title or description (whether by [clause] 22(2)(b) this relates specifically to allegations. initials or otherwise) reasonably calculated to suggest So the allegation would have to be investigated. So it that he possesses any professional status or qualifica- is not guilt, as if the person has been finding guilt, it is tion as a registered practitioner other than a profes- an allegation that is being levied against that professional status or qualification which he in fact possess- sional for misconduct and those allegations would ob- es, and which, is indicated by particulars entered in viously be investigated. the register in respect of him. A person who contra- And with respect to [clause] 24(7) perhaps venes this clause commits an offence and is liable on that Honourable Member would be prepared to just summary conviction to a fine of $10,000 and, in the stand by and let me just get some further information case of a second or subsequent conviction, a fine in from the drafter to answer that question. the sum of $20,000. Thank you. Clause 29 provides that a person who is registered shall be entitled to use the word “registered” to The Chairman: Any further speakers? describe the nature of his professional practice, where There appear to be none. that practice is the practice in respect of which he is Minister, do you want to move those clauses? registered. Conversely, any person who: (a) uses the words “Government Registered,” or similar words, to Hon. Kim N. Wilson: Yes, but before I do if I could describe the nature of his practice, being that of a just answer that question with respect to [clause] (7). specified profession, and is not registered in respect No allegations that are made anonymously will be in- of that profession, or (b) who takes or uses any name, vestigated. title, addition or description falsely implying, or who Mr. Chairman, thank you. I would like to move otherwise pretends, that his name is on the register, those clauses— commits an offence and is liable on summary conviction to a fine of $10,000 and, in the case of a second The Chairman: Those clauses 22 through 27. or subsequent conviction, a fine of $20,000. Clause 30 provides that, if a person procures Hon. Kim N. Wilson: Thank you, Mr. Chairman, yes, or attempts to procure the entry of any name on the . . . be accepted and approved. register by wilfully making or producing, or causing to be made or produced, either verbally or in writing, any The Chairman: Yes. declaration, certificate or representation which he It has been moved that clauses 22 through 27 knows to be false, he commits an offence and is liable be approved. on summary conviction to a fine of $20,000. Are there any objections to that? Clause 31 provides that, if regulations made There appear to be none. Approved. under this Act limit the services that may be performed by a registered person in the course of prac- [Motion carried: Clauses 22 through 27 passed.] tice of a specified profession, the registered person shall limit his practice accordingly. A person who does Hon. Kim N. Wilson: Thank you, Mr. Chairman. not limit his practice accordingly commits an offence I would like to proceed with moving clauses and is liable on summary conviction to a fine of 28 through 31. $10,000.

The Chairman: Continue. The Chairman: Any further speakers? Bermuda House of Assembly Official Hansard Report 7 December 2018 337

The Chair recognises the Honourable Pat Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. Gordon-Pamplin. Chairman. Mr. Chairman, my question was in respect of Hon. Patricia J. Gordon-Pamplin: Sorry, Minister, clause 32, which is on page 20. And that is with re- did you include [clause] 32? I think I missed the last— spect to the locum tenens under [clause] 32(1) and it specifies here that “the Council may authorise any The Chairman: [Clause] 31. person who is registered to practise a . . . profession outside Bermuda to practise that profession as a lo- Hon. Patricia J. Gordon-Pamplin: Okay, great. cum tenens in Bermuda for a limited period not exceeding three months.” The Chairman: There appear to be none. So my question, as I alluded to in the debate, Minister? was if somebody comes in and they need to be here for four months or five months because the person— Hon. Kim N. Wilson: Thank you, Mr. Chairman. the substantive person—holding the position is unable I would like to move [that] clauses 28 through to return to work, does that person need to leave? Do 31 be approved. we need a new locum tenens? Or is there something that will give some . . . I guess, consideration by ap- The Chairman: It has been moved that clauses 28 peal to the Minister or some such [thing] to say that through 31 be approved. the three months is not quite enough? Let us say Are there any objections to that? somebody is on maternity leave and they decide— No, there appear to be none. Approved. The Chairman: We got the question.

[Motion carried: Clauses 28 through 31 passed.] Hon. Patricia J. Gordon-Pamplin: —to take an extra month or something. Hon. Kim N. Wilson: Thank you, Mr. Chairman. I would like to move clauses 32 through 35 The Chairman: Minister, do you want to reply to that? concerning the authorisation of locums, regulations, fees and annual reports. Hon. Kim N. Wilson: Mr. Chairman, I think I can answer that best by [referring to] the Act. The Act does The Chairman: Continue. provide for not exceeding three months, but it also has the “and” so it has a proviso which says and upon Hon. Kim N. Wilson: Thank you, Mr. Chairman. “subject to such conditions as the Council may im- Clause 32 provides that the Council may au- pose.” thorise any person who is registered to practise a So, subject to further confirmation or disa- specified profession outside Bermuda to practise that greement from the drafter, it seems to me that this profession as a locum [tenens] in Bermuda for a lim- speaks to a power of the Council to impose such con- ited period not exceeding three months and subject to ditions as they think are appropriate, given the cir- such conditions as the Council may prescribe. cumstances of the case. Clause 33 provides for the Minister to make regulations for the better administration of this Act and The Chairman: What is requested at the time. lists matters in respect of which regulations may be Continue, Minister. made. The negative resolution procedure applies to regulations made under this Act. Hon. Patricia J. Gordon-Pamplin: Yes, I just— Clause 34 provides that fees for an application for registration or renewal of registration as a reg- The Chairman: I am sorry, continue Honourable istered practitioner or as an assistant in relation to a Member. specified profession are to be prescribed under the Government Fees Act 1965. Hon. Patricia J. Gordon-Pamplin: Oh, sorry. Clause 35 provides that the Council shall Yes. Hey, that is a Freudian slip. That is fine, submit to the Minister, as soon as practicable after the Mr. Chairman. end of each year, an annual report concerning regis- Mr. Chairman, I just think that it may . . . per- tration, disciplinary proceedings and such other activi- haps we could say, for a period not exceeding three ties of the Council as the Minister may prescribe. months “or” subject to such conditions as the Council may impose, as opposed to “and.” And the reason I The Chairman: Any further speakers? say that is because three months is specified as “lim- The Chair recognises the Honourable Mem- ited.” So it does not seem like there is any flexibility ber Pat Gordon-Pamplin. there.

Bermuda House of Assembly 338 7 December 2018 Official Hansard Report

The Chairman: The language is there, Member. It and/or the Council at large, then that conversation will says, “and subject to such conditions”—that is clear. take place with those persons. As I indicated previously, this is in the beginning stages. There will be Hon. Patricia J. Gordon-Pamplin: But for a limited constant ongoing consultation with the Council and it period. The conditions are not necessarily with re- will not stop when regulations are imposed. spect to the length of service, the conditions are in respect of— The Chairman: Any further speakers? The Chair recognises the Honourable Pat The Chairman: The conditions— Gordon-Pamplin.

Hon. Patricia J. Gordon-Pamplin: —the way it is Hon. Patricia J. Gordon-Pamplin: Thank you. reading here— Just for clarity . . . so the Council will have the responsibility of ensuring that the Boards and the var- Hon. Kim N. Wilson: “Such conditions as the Council ious members are apprised of what the regulations imposes.” are as opposed to the members having the responsibility to find out? I just want to make sure that the Hon. Patricia J. Gordon-Pamplin: Okay. Council’s duty in that regard is clear.

The Chairman: That is right. The Chairman: Minister?

Hon. Patricia J. Gordon-Pamplin: All right, so it is Hon. Kim N. Wilson: Thank you. going to be a free-for-all here, the way I see it. Mr. Chairman, I can assure that Honourable Member that the Council, the Ministry of Health, will The Chairman: It is not a free-for-all. Now let us do whatever needs to be done to ensure that the in- watch the language. It is not a free-for-all. It is very formation is communicated to the respective Board if clear what it means. If you need to be there four any regulations are passed that affect them particular- months, based on the request, that is what it says, the ly. That communication will take place. We have the Council will decide. It is . . . law is about common eHealthbites that go out to all members, all a sundry, sense, you know. that speak to regulations and different things that are happening, so that information will be appropriately Hon. Patricia J. Gordon-Pamplin: Yes, but also, Mr. communicated to those parties. Chairman, we also have to look at the specificity, and a specific period of time is delineated and it just The Chairman: Thank you. seemed like it needed something else. That is just my Any further speakers? observation— Minister, you have it.

The Chairman: Mm-hmm. Hon. Kim N. Wilson: Thank you, Mr. Chairman. I would like to move that clauses 32 through Hon. Patricia J. Gordon-Pamplin: —for us not to get 35 do stand as read and approved. into challenge. And the other question that I have is with re- The Chairman: It has been moved that clauses 32 spect to [clause] 33 on the regulations. What is going through 35 be approved. to be the mechanism by which we continue to consult Are there any objections to that? industry in terms of what the updated regulations are? There appear to be none. I just think that . . . we pass legislation here, it passes Approved. in the other place. But we want to make sure that . . . I mean, I realise that consultation happens, but once it [Motion carried: Clauses 32 through 35 passed.] is all confirmed and all said and done, how are we going to keep the professionals in tune with what their Hon. Kim N. Wilson: Thank you, Mr. Chairman. requirements are based on the new regulations? I would like to move clauses 36 and 37 concerning consequential repeals, savings and transition- The Chairman: Minister? al amendments.

Hon. Kim N. Wilson: Thank you, Mr. Chairman. The Chairman: Continue. As it indicates in that provision, the regulations are by negative resolution. However, given the Hon. Kim N. Wilson: Clause 36 repeals the Allied extent of consultation that has taken place heretofore Health Professions Act 1973 and the Chiropractors with the Allied Health Council, any regulations that Act 2002. It also makes a consequential amendment affect not only the profession if it is a specific Board to the [First] Schedule to the Government Authorities Bermuda House of Assembly Official Hansard Report 7 December 2018 339

(Fees) Act 1971 (to add an entry for the Allied Health Are there any objections to that? Professional Conduct Committee established under There appear to be none. Approved. clause 22 of this Act), and to Head 3 of the Schedule to the Government Fees Regulations 1976 (to change [Motion carried: Clauses 36 and 37 passed.] references to section numbers to those of this Act). Mr. Chairman, in clause 37 are savings and Hon. Kim N. Wilson: Thank you, Mr. Chairman. transitional provisions. The Council appointed under I wish to move the Schedules concerning the the repealed Act is continued under this Act. The list and definition of specified professions and provi- Boards established under the repealed Act continue sions in respect of the Council, its Boards and Profes- under this Act—this answers the Honourable Member sional Conduct Committee. opposite. A complaint against a registered person that, immediately before this Act comes into operation, The Chairman: It has been moved that the Schedules is before the Preliminary Proceedings Committee or be approved. the Professional Conduct Committee established un- Are there any objections to that? der the repealed Act, or before the Council, shall con- There appear to be none. tinue to be dealt with under the repealed Act as if this Schedules 1 through 3. Act had not come into operation. The specified professions established under the repealed Act continue Hon. Kim N. Wilson: Yes. Thank you, Mr. Chairman. under this Act. A person who under the repealed Act, I move that the Schedules be approved. immediately before the commencement of this Act, is a registered person in a specified profession, on the The Chairman: It has been moved that the Schedules coming into operation of this Act, continues to be a be approved—1, 2 and 3. registered practitioner in the corresponding specified Any objections to that? profession under this Act. A person practising a “new There appear to be none. specified profession” (i.e., one that was not a specified Approved. profession under the 1973 Act) in Bermuda may temporarily continue to so practise without being regis- [Motion carried: Schedules 1 through 3 passed.] tered in that profession, but the Minister is to, by notice published in the Gazette subject to the negative Hon. Kim N. Wilson: Mr. Chairman, I move the pre- resolution procedure, appoint a date: (a) before which amble be approved. any person who at the time the notice comes into operation is practising a new specified profession in The Chairman: It has been moved that the preamble Bermuda must apply for registration in that specified be approved. profession; and (b) after which any other person shall Any objections to that? not practise that profession, or be an assistant in that There are none. Approved. profession, unless he is registered under this Act. The new specified professions, Mr. Chairman, are: Hon. Kim N. Wilson: Thank you, Mr. Chairman. • acupuncturists; I now move that this Bill be reported to the • chiropractors; House as printed. • counsellors; • massage therapists; and The Chairman: It has been moved that the Bill be • social workers. reported to the House as printed. Mr. Chairman, there is an incorrect reference Are there any objections to that? in clause 37(5) that actually refers to subsection (2) The Bill will be reported to the House. when it should refer to subsection (6). We will apply the slip rule, Mr. Chairman, and have this corrected in [Motion carried: The Allied Health Professions Act the Bill in the Senate when it is reprinted. 2018 was considered by a Committee of the whole Thank you, Mr. Chairman. House and passed without amendment.]

The Chairman: Any speakers to the clauses 36 and House resumed at 3:25 pm 37? There are none. [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] Continue. REPORT OF COMMITTEE Hon. Kim N. Wilson: Thank you, Mr. Chairman. I move that clauses 36 and 37 be approved. ALLIED HEALTH PROFESSIONS ACT 2018

The Chairman: It has been moved that clauses 36 The Speaker: Good afternoon, Members. and 37 be approved. Bermuda House of Assembly 340 7 December 2018 Official Hansard Report

Are there any objections to the Allied Health cordance with the terms and conditions of the trust Professions Act 2018 being reported to the House as agreement governing the ILS transaction. The ILS printed? investor is aware of this arrangement because the No objections. offering memorandum is required to provide, amongst It has been so moved. other things, an express disclosure to all investors and We will now move on to the next item on the proposed investors that the proceeds of the share is- Order Paper today, that item being the second read- suance of the fund are held in the trust for the purpose ing of the Investment Funds Amendment Act 2018 in of collateralising the insurance loss events linked to the name of the Minister of Finance. the securitised insurance transaction. Minister, would you like to do your matter at Furthermore, the interconnectedness of the this time? various agreements—the offering memorandum, the trust agreement, the reinsurance agreement and the BILL investment guidelines, et cetera—self-govern the ILS transaction. SECOND READING Mr. Speaker, the amendment to the Act removed the requirement for the operator of a fund to INVESTMENT FUNDS AMENDMENT ACT 2018 appoint a custodian or a prime broker where the operator meets such criteria as the Authority may deter- Hon. Curtis L. Dickinson: Yes, please, Mr. Speaker. mine and has published on its website. The criteria I move that the Bill entitled the Investment the Authority is currently considering could, for exam- Funds Amendment Act 2018 be now read the second ple, require an operator to demonstrate that the fund time. proposes to issue insurance-linked securities to investors. Additional requirements to be met could include The Speaker: Any objections? No objections? an express requirement to ensure that the investment Minister, continue. proceeds are held in trust, a trustee is appointed to manage the investment proceeds, and that the offer- Hon. Curtis L. Dickinson: Mr. Speaker, Government ing memorandum provides express disclosure of the wishes this Honourable House to give consideration to same. the Bill entitled the Investment Funds Amendment Act It is intended that there will be an annual re- 2018. quirement imposed on all funds availing themselves of The purpose of the Bill is to introduce the pro- the exemption to certify that such requirements are vision under the Act to exempt a Class A Exempt In- met. vestment Fund with an insurance-linked security in- Mr. Speaker, the purpose of this proposal is to vestment strategy from the requirement to appoint a remove the duplication of custodial services which custodian where certain criteria have been met. would, in essence, be provided by both the custodian Mr. Speaker, by way of background, there are and a trustee, should both be required to be appoint- a number of techniques that have been developed to ed. The trustee is required to hold the proceeds of the allow for the transfer of insurance risk to capital mar- share issuance in trust as collateral in accordance kets. ILS securities are an example of financial in- with the terms of the reinsurance contract, the rein- struments, for example, derivatives or securities, surance agreement, and any investment guidelines. which may be linked to insurance risk. While this form Therefore, in certain circumstances there is no further of reinsurance contract is similar to traditional reinsur- security or additional benefit to be provided regarding ance contracts, the defining feature of these risk the appointment of a custodian. transfer arrangements is the prior direct funding of the Existing fund operators who have been grant- reinsurance risk exposure or loss event with funds ed a Class A exemption will also be permitted to avail raised through investment in capital markets. If there themselves of the custodian prime broker exemption is a loss event, the funds are reduced when the loss is provided they have also met the new criteria. settled. If there is no loss, the investment funds plus In addition, Mr. Chairman, these funds are any interest are distributed to the ILS investor. registered under the Proceeds of Crime—that is the ILS transactions have provided capital market AML/ATF Supervision and Enforcement Act 2008—as investors with an avenue to participate in the insur- a non-licensed person pursuant to section 9 of said ance and reinsurance market beyond buying company Act. The requirement to register as a non-licensed stocks. person will remain unchanged. As per the BMA’s normal custom and practice, the consultation paper— Mr. Speaker, the fundamental principle under- th lying the amendment to the Act is the fact that policy- the draft Bill—was published on the 11 of April 2018 holders or investors are not exposed to any additional to receive comments from a broad spectrum of the risk where the fund has been exempted from the re- market. The House is also advised that the Authority quirement to appoint a custodian because the inves- has been meeting with industry partners since 2017 tors’ proceeds shall be managed by a trustee in ac- Bermuda House of Assembly Official Hansard Report 7 December 2018 341

and following on from that consultation there were no not pay the money upfront, you make a commitment material issues raised. and it is a limited number of shareholders and there Mr. Speaker, the Bill represents a collabora- are no underlying securities as in a pool, so to speak. tive effort between the Authority and the various in- The partner—the general partner—for the underlying dustry stakeholders. Accordingly, I would like to thank . . . for the private placement, basically, will find in- all of those persons within the BMA, the Attorney vestment opportunities directly into underlying com- General’s Chamber, the Ministry of Finance, and the panies. They will see an entrance plan and an exit private sector who have assisted in the development plan and they will sell . . . well, they will follow their of this Bill. plan, basically, to realise their investments. And once Thank you, Mr. Speaker. they achieve their objectives they will then sell their position either privately or on the equity markets. The Speaker: Thank you, Minister. So my question to the Minister is this: If I Does any other Member wish to speak? came to him as a qualified investment manager and I We recognise the Honourable Member from wanted to develop a private equity fund, or private constituency 23. placement fund, would this legislation apply to that as Honourable Member, you have the floor. well?

Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. The Chairman: Thank you, Honourable Member. Speaker. And I thank the Minister for his . . . not just Does any other Honourable Member wish to the presentation of what we can expect here on what speak? we are doing with respect to the Bill, but also in No further Members? providing the background for the listening public and Minister? for those interested in this legislation. Minister, you can take the floor now. Let me just say that this is a very short Bill, but the brevity of the Bill does not dictate the im- Hon. Curtis L. Dickinson: I am sorry. portance that the Bill holds. The Chairman: You can have the floor now. The Speaker: Mm-hmm. Hon. Curtis L. Dickinson: Thank you, sir. Hon. Patricia J. Gordon-Pamplin: The Monetary I have been advised that Exempt A operators Authority has done what they normally do and what can apply. we expect of them—to have extensive consultations. They first issued a consultation paper in April of 2018, The Chairman: You can now move us into Commit- and I know that they had been dealing with this partic- tee. ular issue prior to that. So having had the level of consultation that they would normally do and that we ex- Hon. Curtis L. Dickinson: Mr. Speaker, I move that pect of them in their prudence and their prudential the Bill be committed. operations at the BMA, we have no objection to the Bill. We support it. And there is only one small com- The Chairman: Thank you. ment that needs to be made in respect of the Commit- Deputy? tee and we are fine with it. Thank you. House in Committee at 3:35 pm

The Speaker: Thank you. [Hon. Derrick V. Burgess, Sr., Chairman] Does any other Member wish to speak? We recognise the Honourable Member from COMMITTEE ON BILL constituency 8. Honourable Member, you have the floor. INVESTMENT FUNDS AMENDMENT ACT 2018

Mr. N. H. Cole Simons: Thank you, Mr. Speaker. The Chairman: Honourable Members, we are now in Mr. Speaker, I, like my colleague the Shadow Committee of the whole [House] for further considera- Minister of Finance, have no objection to the legislation of the Bill entitled the Investment Funds Amend- tion. ment Act 2018. I just have a question in regard to it being ap- Minister, you have the floor. plicable to private equity placements. If I wish to establish a private equity placement, I can see what we Hon. Curtis L. Dickinson: Mr. Chairman, I move that are doing today would apply there, because when you clauses 1 through 3 be moved. have a private equity placement you have high net worth individuals. In addition, most of the time you do Bermuda House of Assembly 342 7 December 2018 Official Hansard Report

The Chairman: Not moved. You want to debate For these exempted funds, can the Minister them? confirm the minimum size the legislation will entertain? Because it makes no sense putting through a Hon. Curtis L. Dickinson: Sorry. private exempt fund—

[Inaudible interjection] The Chairman: What is the question?

The Chairman: You moved . . . I am sorry, yes, go Mr. N. H. Cole Simons: I have asked the question ahead, go ahead. already.

[Laughter] The Chairman: Okay. That is all you need to do. Minister, do you want to answer the question? The Chairman: I was anticipating you saying move to You are not in general debate, Mr. Simons. be approved. Hon. Curtis L. Dickinson: Mr. Chairman, can the Hon. Curtis L. Dickinson: I move all three of them, Honourable Member repeat the question please? yes. So Clause 1 is a standard citation clause and [Laughter] cites the Bill before the House as the Investment Funds Amendment Act 2018. The Chairman: Please repeat the question, Honour- Clause 2, Mr. Chairman, amends section 6A able Member. of the principal Act discussing the Class A Exempt Fund qualification criteria by inserting the words: “An [Inaudible interjections] operator of a Class A Exempt Fund shall be exempt from the requirement to appoint a custodian or prime Mr. N. H. Cole Simons: Exactly. What is the minimum broker where it meets such criteria as the Authority size that we are prepared to entertain for exempted may determine and has published on its website: funds? www.bma.bm.” And clause 3, Mr. Chairman, provides for the The Chairman: Thank you. Minister to cause the Act to come into operation on Minister? such a date as the Minister may determine. Hon. Curtis L. Dickinson: With respect to the first The Chairman: Thank you, Minister. question, typographical errors will be corrected by the Any further speakers? Attorney General under section 11 of the Computeri- The Chair recognises the Honourable Mem- zation and Revision of Laws Act 1989. ber Pat Gordon-Pamplin. And with respect to the second question, there is no minimum size. Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. Chairman. The Chairman: Any further speakers? Mr. Chairman, I just wanted to point out that There appear to be no further speakers. we seem to have with this extension to (this is under Minister, do you want to move these clauses, clause 2) [section 6A], [subsection] (2)(d) under the [clauses] 1 through 3? principal Act by putting “except where subsection (2A) applies” at . . . it says at the end of that subparagraph. Hon. Curtis L. Dickinson: Mr. Chairman, I move that We have got . . . under [subparagraph] (iii) we the preamble be approved. have got an auditor “and” . . . in [subparagraph] (iv) we have a custodian or prime broker; “and” (e). The Chairman: Do the clauses first, 1 through 3, and So, I think we have got one “and” too many then the preamble after that. and I think it might just be drafting. I think if the draft- Move clauses 1 through 3. ers can just look and tidy up the additional “and” to make it read properly. Hon. Curtis L. Dickinson: I move that clauses 1 through 3 be moved. The Chairman: Any other speakers? The Chair recognises the Honourable Hadley The Chairman: Be approved. Cole Simons. Hon. Curtis L. Dickinson: Be approved, sorry. Mr. N. H. Cole Simons: Just a question, Mr. Chair- man. The Chairman: It has been moved that clauses 1 through 3 be approved. Bermuda House of Assembly Official Hansard Report 7 December 2018 343

Are there any objections to that? No objections. No objections. [Motion carried: Standing Order 29(1) suspended.] [Motion carried: Clauses 1 through 3 passed.] The Speaker: Minister, continue. The Chairman: Now you can do the preamble, Minis- ter. BILL

Hon. Curtis L. Dickinson: I move that the preamble SECOND READING be approved.

BERMUDA MONETARY AUTHORITY AMENDMENT It has been moved that the preamble The Chairman: (NO. 3) ACT 2018 be approved. Any objections to that? Hon. Curtis L. Dickinson: Mr. Speaker, before I start There appear to be none. I would like to acknowledge the cooperation and the Approved. indulgence of the Opposition in moving this Bill forward at a rapid speed. Hon. Curtis L. Dickinson: I move that the Bill be reported to the House as printed or amended. The Speaker: Thank you.

It has been moved that the Bill be The Chairman: Hon. Curtis L. Dickinson: Mr. Speaker, it gives me reported to the House as amended . . . as printed. pleasure to present to the House the Bill entitled the Any objections to that? Bermuda Monetary Authority Amendment (No. 3) Act The Bill will be reported to the House. 2018. This Bill highlights proposed fee changes [Motion carried: The Investment Funds Amendment made to the Bermuda Monetary Act 1969 by which Act 2018 was considered by a Committee of the the Bermuda Monetary Authority has proposed a re- whole House and passed without amendment.] vised fee schedule with corresponding amended fees for regulated financial institutions established under House resumed at 3:41 pm the following Acts: the Banks and Deposit Companies Act 1999, the Credit Unions Act 2010, the Insurance [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] Act 1978, Investment Business Act 2003, the Invest- ment Funds Act 2006, and the Money Service Busi- REPORT OF COMMITTEE ness Act 2016. Mr. Speaker, this Bill also includes the pro- INVESTMENT FUNDS AMENDMENT ACT 2018 posed fee changes made separately in amendments to the Banks and Deposit Companies (Fees) Act 1975 The Speaker: Good afternoon, Members. under which the Authority has proposed to revise fees Are there any objections to the reporting to for banks and deposit companies governed by that the House of the Investment Funds Amendment Act Act. 2018 as printed? Mr. Speaker, the Authority has established a No objections? track record of success and earned a positive reputa- It has been reported; so moved. tion for itself amongst industry stakeholders and inter- We will now move on to the next item on the national supranational bodies and this has also been Order Paper today. And that item is the second read- of reputational benefit to Bermuda. However, to main- ing of the Bermuda Monetary Authority Amendment tain its regulatory capability in the international and (No. 3) Act 2018 in the name of the Minister of Fi- local marketplace and to continue to meet increasing nance. demands of international standards and expectations Minister, would you like to continue? while continuing to deliver on strategic objectives amongst heightened complexities within supervised SUSPENSION OF STANDING ORDER 29(1) sectors, the Authority must further enhance its operations and augment its supervisory resources. Hon. Curtis L. Dickinson: Mr. Speaker, I move that Mr. Speaker, in this regard the Authority re- the Standing Order 29(1) be suspended to enable the cently undertook a comprehensive target operating House to proceed with the second reading of the Bill model review with the assistance of an international entitled the Bermuda Monetary Authority Amendment management consulting firm. The result of this review (No. 3) Act 2018. was a multi-year plan to effect improvements in the organisation and operations of the BMA. Based on The Speaker: Any objections to that? this plan the Authority has already begun the process Bermuda House of Assembly 344 7 December 2018 Official Hansard Report of implementing changes through aligning its human source utilisation in discharging its ongoing superviso- capital with business procedures in the context of its ry duties. Also, the basis upon which fees are charged evolving strategic priorities. is to be simplified so that entities will find it easier to Mr. Speaker, an important aspect of the target determine what fees they need to pay. This same phi- operating model review involved an analysis of the losophy will be applied in the future as the Authority’s BMA’s structure and staffing levels and, in particular, mandate expands to encompass new activities. an examination of the cost related to supervising dif- Mr. Speaker, the revised fees proposed have ferent elements within all regulated sectors. As part of been informed by four guiding principles. These prin- this analysis the external consulting firm concluded an ciples would include: independent third-party benchmarking exercise in 1. Fund the Authority’s operating budget and, which they studied peer jurisdictions to ascertain the specifically, counterbalance its projected an- fees charged for comparable supervisory activities to nual cost increases of $11.7 million by 2020; those performed by the Authority. In addition, these 2. Align fees to supervisory activity by sector by costs were reviewed in relation to the staffing levels adjusting fees to closely reflect resources uti- needed to effectively perform these key supervisory lised in regulating firms within that sector; functions. 3. Increase discretion of supervisory teams by Mr. Speaker, the output from the target oper- allowing fees to be levied for activities that re- ating model review and benchmarking exercise require exceptional BMA resources; and flected that the current fees levied by the Authority 4. Maintain competitiveness via consideration of often did not reflect the supervisory effort needed to pricing relative to peer regulatory bodies to undertake the various supervisory activities it per- ensure Bermuda remains competitive. formed. Human and financial resource levels within Mr. Speaker, it was initially intended that the the Authority were found to be below expected levels revised fees be introduced over two years—2019 and given the organisation’s continually expanding man- 2020. During the consultation process and in subse- date and what it will need to achieve in the future. quent meetings with the Authority that the Authority Furthermore, activities were identified for held with relevant industry stakeholder groups, the which the Authority charges no fees, yet the supervi- most prevalent comments were that the impact of the sory resources devoted to them are substantial. Due fee increase should be ameliorated by adopting a in part to the financial challenges facing the financial longer implementation period. As such, a three-year sector during the global financial crisis, which contin- phase-in period—2019, 2020, and 2021—is now pro- ued into recent years, fee increases which the Au- posed. thority might otherwise have introduced were moder- Insurance industries requested that the Au- ated to reduce the impact on Bermuda’s financial ser- thority have greater flexibility regarding fees to be ap- vices industry. This has, however, contributed to the plied in specific circumstances such as where affiliat- Authority operating at a deficit with resultant budget ed insurers have similar risk profiles and in cases shortfalls being covered from existing BMA reserves. where combined application fees would otherwise be Mr. Speaker, there are significant financial payable has also been addressed via a separate crea- implications associated with implementing the neces- tion in the Insurance Act by a power to waive or re- sary increase in staffing levels and other strategic im- duce certain fees. provements to the BMA’s organisation and operations For the relatively new corporate service pro- recommended by the target operating model review. vider regime the Authority proposes to retain the exist- Specifically, annual operating costs are projected to ing fee structure for one more year only, with fees for increase to $61 million by 2020, an increase of $11.7 that sector to be subject to an industry-specific consul- million over the 2017 year-end figure. The Authority tation process in 2019. incurred an operating loss of $1.6 million in 2017 and Mr. Speaker, in closing, I would like to thank is projected to again incur an operating loss in 2018. It all of those persons within the BMA, the Attorney is therefore essential that fee structures for regulated General’s Chambers, the Ministry of Finance, and the firms be revised. private sector who have assisted in the development Mr. Speaker, notwithstanding the need to im- of this Bill. plement fee increases, the Authority recognises that Thank you, Mr. Speaker. market conditions remain challenging in a number of regulated sectors. Accordingly, the revised fee pro- The Speaker: Thank you, Minister. posal (now tabled) considered [that] prevailing condi- Does any other Member wish to speak? tions were carefully researched and are presented We recognise the Honourable Member from with the sustainability and continued credibility of the constituency 23. Bermuda regulatory regime in mind. Honourable Member, you have the floor. Mr. Speaker, in this context, it is proposed that certain existing fees be adjusted and that other Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. new fees be introduced to reflect the Authority’s re- Speaker. Bermuda House of Assembly Official Hansard Report 7 December 2018 345

Mr. Speaker, again, I apologise to the people and that what could conceivably happen is when of Bermuda if I appear unprepared, but I appreciate companies go into run-off, having to pay such a large the Minister’s acknowledgement that we did agree to amount of fee from a run-off situation where they are take this up on short notice. not effectively making the underwriting profits that Let me just point out—the Bermuda Monetary they normally would have done under normal opera- Authority Amendment Act—in going through this Act tions, that these fees . . . that the companies can do there is, as the Minister indicated, a staggered ap- what has been done, as I have experienced before, is proach towards the implementation of new fees, some to take the run-off portion out of Bermuda. And that of which will come into effect in 2019 and these fees effectively impacts the jobs that might otherwise be are usually due January 1 . . . or the majority of them able to be enjoyed by the Bermudians who work for are due January 1. And then they will have a different these companies because it could be deemed that it is set of fees coming into effect in 2020 and then 2021, more efficacious to utilise a different jurisdiction in or- taking into consideration the tenuous position of the der to be able to manage these run-off funds. economy and the consultations that they have had So I am just a little concerned, especially giv- with respect to the companies that are likely to be im- en the fact that the US, in particular, under this new pacted. different administration has seemed to have made it a I do not think I necessarily have to declare an little bit more attractive for companies to relocate on- interest, in as much as I no longer work in the insur- shore. So what we do not want to do is to price our- ance industry, but it is important to point out that there selves out of the market when an ongoing concern are a lot of the fees that have come into this Act that has obviously a greater need—in my estimation—has do relate to the insurance industry and with which I a greater need for regulation than does a company am intimately familiar and for which I will probably that has been regulated to the hilt and is now simply have some queries when we get into Committee. managing its run-off book. So I was just a little concerned about that. The Speaker: Mm-hmm. As I said, there is a . . . this Bill provides for additional banking categories, there is a run-off for Hon. Patricia J. Gordon-Pamplin: The interesting general business (which has been segregated out), thing with this is that there are included in the fee there are fees when it comes to issuing certificates. structure here some categories and changes in strata That is one of the biggest bugbears that exists within that would have, perhaps, been better had we debat- the Monetary Authority, in my estimation, is that cli- ed this after we debated the next piece of legislation, ents at times require notification or certification that a the Insurance Amendment Act. corporation is compliant with whatever their responsi- But from what I have been able to see (I will bilities are as far as the Monetary Authority is con- work through this) this Act provides for additional fees, cerned. And what happens then is that the BMA is but in the banking categories there are . . . we have required to issue a certificate to say that this company moved from three to five different banking categories. is in compliance—say that they have filed their re- So we have got fees where we do not actually see the turns, they have put in their CISSAs, that they have . . . necessarily . . . I am sorry, the categories, as far done all the things that are necessary to be done. as banking is concerned, we have the implementation What happens is if you get two clients who ask you for of fees before I actually saw that there was an effec- a certificate, you have to get two letters from the BMA. tive delineation of these additional banking categories. And sometimes those requests come in at the same There are also significant fees that are being time and when those requests come in they literally addressed in respect of run-off general business, have to print two certificates instead of one on the which is a new category. Historically, companies given date, but you are charged at the same price for would operate and depending on what their capital certificate number two as you are for certificate num- and surplus is they would then carry on, and in carry- ber one. It has always been something that has ing on their business, if that business should happen bugged me and while the amount is insignificant, it is to go into run-off, then they are subjected to the fee the principle that, you know, obtains here. that is determined by the category, whether they be a We look also at some of the fees as they re- Class A, B, C . . . Class 1, 2, 3, 4. The category would late to extensions that are required because you have determine the fees. There is a specific segment within . . . under the new regime and the new additional these fees now that refer to a special run-off category. structures, many companies have been required to And while I understand fully the importance of hire additional staff in order to meet the deadlines that having a structure within the Monetary Authority that were necessary for the BMA. That is fine if . . . you monitors and that regulates run-off companies, when I know, recognising that we are required, especially looked at the fees, the fees in some instances, not- with the OECD and the EU and everybody else withstanding there has been consultation, but I think it breathing down our necks, we know that we have to is important to just point out the observations that the comply. And I know that the BMA has to be effectively fees relating to some of these are, in fact, quite large staffed in order to ensure that they have the proper Bermuda House of Assembly 346 7 December 2018 Official Hansard Report oversight capabilities and regulatory authority capabili- as well as the regulatory fees going up at the same ties as is necessary in order to fulfil the responsibilities time. that they have. Now, I know, as I said earlier in the other de- But I think that . . . I know that they have stag- bate, that the Monetary Authority are very good when gered these fees over a three-year period of time from it comes to consultation, and they put out consultation 2019, 2020, and 2021. The questions that we have, papers, and they put out position papers, and they put obviously, are such that when we have a situation out papers on the papers that they put out because where a company—and there is a category of fees— they want to make sure that companies are fully ap- in a run-off environment, if that company has an ex- prised of what their responsibilities are. But I just want tensive change of its responsibilities as well as its re- us to guard against finding ourselves in a situation sulting capital and surplus and the like as a result of where a different jurisdiction starts to look more attrac- being in run-off, what run-off precipitates are signifi- tive, especially in the run-off business. Because you cant commutations of books of business. And if there find that the run-off business has been a relatively is a commutation, then it may be difficult to determine reliable aspect where local staff, who have become from one year to the next a comparative asset base familiar with the operations of those companies, find for what is left of the shell, if I can put it that way, their niche. If we find that those companies are now when a company goes into run-off. moving, because it is more attractive to operate in a So my question is that we are having these different jurisdiction, then we are going to be negative- fees appended to a company which goes into run-off, ly impacting our employment base. which may differ significantly from year to year. Now So those are some of the concerns that I there are bands within the new fee structure that have. Obviously, as I said, we support the Monetary changes the fee from what your capital and surplus Authority and what it is required to do, primarily be- may have been . . . and I think it actually moves from cause we would be lost as a jurisdiction. We rely on capital and surplus and I think it goes to . . . if I can their oversight and we rely on them to keep our com- remember the terminology . . . give me one second panies in line so that we do not fall afoul of the inter- . . . On the run-off . . . it does not work on the capital national regulators who would have us . . . you know, and surplus, and what the company is required to hold who would be keeping a watchful eye over every step by way of confirmation to meeting certain statutory that we make. So, we certainly support the legislation. and solvency ratios, but, rather, it starts to look at I did wish to speak, as I said, more specifically what the gross reserves are and what the assets are to some of the fees where I have some questions, but in relation to gross reserves. So these can change outside of that I just wanted to, again, thank the Minis- dramatically from year to year, as I said, given the ter for his presentation and for acknowledging the fact advent of the . . . not even the advent, but the applica- that we have been required to do this on short notice, tion of commutations. and we appreciate that acknowledgment. And I just wanted to know that we are not find- Thank you. ing a company in a situation where their reserves have changed dramatically from year to year; hence, The Speaker: Thank you, Member. their fees will have to change dramatically from year Does any other Member wish to speak? to year. Or, if the fees are going to stay where they I now recognise the Honourable Member from are, are we overcharging? That would be the question constituency 30. Honourable Member, the Deputy and concern that I have. Opposition Leader, you have the floor. Some of the clauses, as I said, it is probably better to get into them when we go into the actual Ms. Leah K. Scott: Thank you, Mr. Speaker, I will not Committee. But when I look at some of the variances, be long. it would seem to me that some of the new bands that First of all, I would like to say that if I were the have been put in place, whereas you might have had, Minister for Finance, or Jeremy Cox, I would be send- historically, that the company might have assets that ing a bill to the OECD, FATF, and the EU for the regu- exceed $35 million, and now they have put in an addi- latory burden that they have imposed upon us as a tional category from $35 million to $100 million, and jurisdiction. then over $100 million, when you are talking about the A lot of what is going on— fees that are being charged for the registration fees, and for the oversight that is required for lots of these An Hon. Member: Yes. companies. I am just curious, because when a company The Speaker: I think you will have a lot of agreement goes up the ladder in terms of the business that it is on that one from here. writing and the like, I would anticipate that the audit fees are also going to go up. So, we are now in a situ- [Laughter and desk thumping] ation where the audit fees will increase exponentially

Bermuda House of Assembly Official Hansard Report 7 December 2018 347

Ms. Leah K. Scott: A lot of what is happening in Deputy, would you like to take the Chair? Bermuda is because of—and I probably should not say it, but I will say it—their jealousy of us as a juris- House in Committee at 4:07 pm diction to be able to maintain a reputation that causes people to want to come here to do business. We are [Hon. Derrick V. Burgess, Sr., Chairman] able to manage ourselves. COMMITTEE ON BILL Hon. Walter H. Roban: They are jealous. BERMUDA MONETARY AUTHORITY AMENDMENT [Inaudible interjections] (NO. 3) ACT 2018

Ms. Leah K. Scott: Thank you, Deputy Premier. The Chairman: Honourable Members, we are now in And, you know, it is unfortunate that the EU Committee of the whole [House] for further considera- can have such a level of extraterritorial reach where tion of the Bill entitled Bermuda Monetary Authority we have to now amend our tax system, we have to Amendment (No. 3) Act 2018. impose charges on companies that are servicing peo- Minister, you have the floor. ple who want to directly invest in Bermuda. I think it is Hon. Curtis L. Dickinson: Mr. Chairman, this Bill unfortunate. What I got up to say, though, was not seeks to repeal and replace the Fourth Schedule to that, because I will save that for the debate next week. the Bermuda Monetary Authority Act 1969 (the “prin- What I wanted to say was thank you to the cipal Act”) providing for amongst other things, annual Minister of Finance and to the BMA. This is one of the and licensing fees payable under the Insurance Act few papers that I can say that industry consultation 1978, Banks and Deposit Companies Act 1999, Trusts has been considered and it has been incorporated. So (Regulation of Trust Business) Act 2001, Investment I would like to say thank you to the BMA for the trust Business Act 2003, Investment Funds Act 2006, Cred- industry where the phasing-in of the fees will be over it Unions Act 2010, Corporate Service Provider Busi- a three-year period, as opposed to a two-year period. ness Act 2012, and Money Service Business Act And for corporate service providers where the level of 2016. Furthermore, the Bill provides for consequential fees will be retained at the 2018 level, there will be amendments to the Banks and Deposit Companies consultation in 2019 with the new fee schedule being (Fees) Act 1975 and the Investment Funds Act 2006. imposed in 2020. Mr. Chairman, I would like to move clauses 1 So, I was happy with the consultation. I was and 2, please. happy with the steps that the BMA took, and I would like to thank the members of the BMA and the Minister The Chairman: Yes, you may move clauses 1 and 2. of Finance for a coordinated effort. Continue. Thank you. Hon. Curtis L. Dickinson: Clause 1 provides a cita- The Speaker: Thank you, Honourable Member. tion for the Bill. Does any other Member wish to speak? Clause 2 amends the principal Act by repeal- No other Member? ing and substituting the Fourth Schedule to the princi- Minister. pal Act. The substituted Fourth Schedule provides for fees payable under Part A, for the period 1 January Hon. Curtis L. Dickinson: Thank you, Mr. Speaker. 2019 to 31 December 2019; Part B, for the period 1 In response to my honourable colleague’s January 2020 to 31 December 2020; and Part C, as question about the potential concerns around folks from 1 January 2021. leaving inasmuch as they are winding down, I will just remind her that the BMA sought the assistance of a The Chairman: Thank you, Minister. leading consulting firm as they went about doing a Any further speakers to clauses 1 and 2? review of the target operating model. As you will ap- The Chair recognises the Honourable Mem- preciate, my powers as Minister, with respect to the ber Pat Gordon-Pamplin. operations of the BMA, are very limited, as they should be. So, I have left it up to the BMA profession- Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. als to decide how to develop the pricing for the ser- Chairman. vices that they provide. I am sure that they have done Mr. Chairman, the Minister had made refer- a proper job of assessing the risk associated with the ence in clause 2 to the Fourth Schedule, so I would new fee schedule. like to refer to the Fourth Schedule for my comments. With that said, I would like to move that the Bill be committed. The Chairman: Mm-hmm.

The Speaker: Thank you, Minister. Bermuda House of Assembly 348 7 December 2018 Official Hansard Report

Hon. Patricia J. Gordon-Pamplin: So they are re- [$]35 [million] to and over $100 million. And I am just pealing the existing Fourth Schedule and replacing it wondering, with respect to the audit fees that are now with this new Fourth Schedule, with this new schedule likely to be imposed upon these companies who fall of fees coming into effect for 2019, and then a sepa- into that second band, now that there is a separate rate . . . for 2020 and one for 2021. band, it is going to require more auditing. I was just curious about that. The Chairman: What page? There also is an inconsistency (it appeared) with the band . . . hmm. Okay. Items (D) and (E) under Hon. Patricia J. Gordon-Pamplin: This is the Fourth [3] (a) with respect to . . . this is the registration for Schedule, which starts on page 3. So, I am speaking $35 million to $100 million, and then exceeding $100 now generally to clause 2, that the Minister just re- million. And I am showing that there is an inconsisten- ferred to, which was on page 2. But the [repeal and cy. I see no difference in the band cost. So, I guess replacement of the] Fourth Schedule starts on page 3. my question is, If there is nothing different in the cost So I just wondered if the Minister could give of the band (D), and this is in the middle of the page us a little bit of breakdown. The “Application for a li- [10], in the cost of band (D) which is exceeding $35 cence . . .” This is on page 3 under “Banks and De- million but not exceeding $100 million, and then that is posit Companies [Act 1999].” There are two additional $20,000 for the registration fee. And then exceeding bands. We used to have three bands, effectively, for $100 million is also $20,000. So I am just curious as banks. We now have gone into two additional bands. to whether that second $20,000 is an error or whether Is the intent that those additional bands for banks . . . it was intended that the fee remain the same. Other- are we looking to expand our banking industry, or are wise, we could just put straight over $35 million. You we just revamping the existing banks that we have? know, that just seemed to be something that needed In other words, I realise that they have to to be questioned. make provision for eventualities, but I am just wonder- I am not certain how far . . . yes, okay. I can ing whether they foresee additions here in that regard. go right the way through. I note that there is a new Page 8, of Schedule [1] which . . . starting at structure of insurance manager and the methodology the bottom of page 7, the “application for approval [of by which the new manager’s fees are being charged, an] eligible capital instrument under section 6C:” of the insurance managed, the various classes. I accept the Act. This is in the Insurance Act now; this moves the fact that this has been as a result of consultation, over to the Insurance Act. So the application for ap- so I appreciate it. It just seems like there are lots of proval of an eligible capital instrument under section extra layers that have come in as a result. 6C; this is new. And it is on a case-by-case basis. I am going to go over to page 15, and that is My question simply is: It says the application at the bottom. This is Part A 2019, at the bottom, un- is made hereunder . . . (at the top of page 8). “Applica- der item [7 (vi)](B), “Conducting unrestricted special tions made hereunder shall be subject to a sliding purpose business.” The cost of which is going to be scale fee payment . . .” and my question is, When $7,000, and [also (A)], Restricted special purpose does the applicant know . . . when will the applicant business. These are two new categories. But under- know when they have been . . . you know, what their neath [that] it has (B)(vii), Class A insurer, is $11,500, fee is going to be? Because their fee is anywhere be- and [underneath that] it has (vii) Class A insurer, is tween [$]10[,000] and [$]130,000 in the first instance, $11,500. It has the same reference. It just seems that and on a case-by-case basis between $10[,000] and something may have been overlooked there because $200,000. So I just want to know, When do they know it is duplicated. where they fall and what their fees are likely to be? As I said earlier, there is a whole different run- On that same page, on Class 3A, C and D off general business and the series of fees relating to insurers, this is for penalties . . . I am sorry, for the that, and I have expressed my concern relating to an excess that is paid when filings are late. There is a insurer registered to carry on run-off general business. plethora of new fees that are being implemented here. As I said, I think the fees . . . I accept the Minister has They are basically enhanced as the longer you take to indicated that these fees are . . . have been consulted, pay, the more you are going to have to pay. I think but they seem tremendously high and I am concerned that this is a good thing. I just wanted to let the Minis- for the impact on jobs in that particular level. ter know that we support that. Because you can find yourself having to pay $1,500 for late filing, but then if The Chairman: Honourable Member, I just want you you pass the deadline, you have to pay more. And, to pause there and get an answer. certainly, we appreciate that this has been included. My question in the general debate in respect Hon. Patricia J. Gordon-Pamplin: Okay. Sure. of audit fees, this is on page 10, when we start to look at this new . . . carrying on general business, they The Chairman: Minister, you want to answer there? have increased the number of bands which exist. It And then you can continue. used to be anything over [$]35 million, and now it is Bermuda House of Assembly Official Hansard Report 7 December 2018 349

Hon. Curtis L. Dickinson: Thank you, Mr. Chairman. Hon. Patricia J. Gordon-Pamplin: Yes, I was just I will take them in the order in which they were waiting, Mr. Chairman, on the response in terms of asked. In the first instance, the bands reflect the grow- the— ing complexity of the existing banks as they grow their asset basis. The Chairman: You can continue then. With respect to guidance, I guess the application fees on a . . . I think the language in the Act that Hon. Patricia J. Gordon-Pamplin: Okay. All right, so was tabled speaks to on a case-by-case basis. So I will continue here. guidance would be provided when the BMA has On page 22, on Digital Assets Business Act committed to the industry. [2018], Grant of a licence to carry on digital asset Then I think on page 10 there was a question business, it starts on [page] 22, respecting the grant of about audit fees. The BMA does not drive audit fees. a licence, (a) and (b) are on [page] 22. When we get Those fees are something that is negotiated between over to (c) [on page 23], it says that the fee payable the issuer and its auditors. by a licensed undertaking carrying on [digital asset I am waiting for some guidance on the other business] activity of maintaining custody of client pri- question, but I sense by the look on your face that you vate keys, it has a [subparagraph] (i). But in the prin- have a follow-up, or you need some clarity. cipal Act there is also a [subparagraph] (ii) which has been left out here. But when we switch over the page, Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. [subparagraph] (ii) comes in on page 25, in the grant Chairman. of a licence. So I am just curious as to why we have that The Chairman: Mm-hmm. inconsistency where in 2(c)(i) is included, on page 23, [and] on page 25, 3(c)(i) is included, but also there is Hon. Patricia J. Gordon-Pamplin: I can continue? a (ii). So they took that (ii) out from the page before. So I am just wondering whether that was an oversight The Chairman: Continue, yes. or whether that was intended to be? I could not quite understand why that happened. Hon. Patricia J. Gordon-Pamplin: I just wanted to So those were basically my concerns and make clear that I was not suggesting that the BMA is questions that I had. responsible for the audit fees. What I am suggesting is that as the complexities of the organisations grow, the The Chairman: Okay. Minister? auditor’s responsibilities will also grow; hence, engen- dering the necessity for higher audit fees. So when Hon. Curtis L. Dickinson: I was just waiting for some you have higher audit fees, and you also have higher guidance from the technical folks. BMA fees for registering or regulating that particular class of business, it was just those additional fees, not [Pause] the . . . you know, I recognise that the BMA does not generate audit fees. Hon. Curtis L. Dickinson: Okay. So on page 11, with respect to page 11, item (A), on some fees they have Hon. Curtis L. Dickinson: I guess in response to made concessions. And then with respect to page 12, that, I think, issuers will appreciate that, given the the run-off answer . . . the run-off issue required–– complexities of their business, this is going to result in many times [the] same amount of supervisory effort or an attendant higher fees, whether they be for the audi- resources [was required] and that is why the costs are tor and/or the regulator. I think you would be chal- what they are. lenged, like I would be, to justify why, in the provision And then with respect the observation on of a service for a complicated entity, we should charge page 22, that could be an oversight. less, because another service provider is also charging more. I think the target operating model review Hon. Patricia J. Gordon-Pamplin: Just before you has concluded that there are instances when the BMA go on, Mr. Chairman— is actually undercharging for the services that it is providing. And I would think that all of us who are fo- The Chairman: One second, Minister. cused on matters fiscal, would want to be sure that we Go ahead. are getting good value for the services we are providing. So inasmuch as they have to charge more be- Hon. Patricia J. Gordon-Pamplin: Sorry. Just before cause that is what it costs to provide the service, I you go on to [page] 22 (so I can tick this off), you said think we can all kind of fully endorse that. that there are concessions. This is on page 10; you said page 11. But I am speaking to page 10. And it The Chairman: Honourable Member Gordon- was on page 10 where the fee in relation— Pamplin. Bermuda House of Assembly 350 7 December 2018 Official Hansard Report

The Chairman: For (D) and (E), right? I think that this handles the queries that I have specifically on the Schedules. I did not literally have Hon. Patricia J. Gordon-Pamplin: Yes, where (D) the time to go into the 2020 fees or the 2021 fees. and (E) were the same, the $35 million to $100 million and over $100 million, the fees were the same. So is The Chairman: Mm-hmm. this a concession which has been made that the over $100 million will be the same as $35 [million] to $100 Hon. Patricia J. Gordon-Pamplin: But I just thought [million]? that the observations that we made in respect to the 2019 fees, which are imminent, were more important. Hon. Curtis L. Dickinson: The guidance I am getting And if there are other challenges that come up as I is that your point has been noted. further investigate and delve into it, I will certainly point it out to the Minister and to the technical officers Hon. Patricia J. Gordon-Pamplin: Oh, okay. So so we can get it right. there is probably a different fee that should be in there? Okay. The Chairman: Thank you, Member. So, it was worth staying out of bed last night, Minister. Mr. Chairman. Hon. Curtis L. Dickinson: Thank you, Member, I ap- The Chairman: Well, yes, yes indeed. preciate that. Mr. Chairman, I would like to move now Hon. Patricia J. Gordon-Pamplin: It shows how ex- clauses 3, 4 and 5. citing my life is. The Chairman: You want to approve [clauses] 1 and [Laughter] 2?

The Chairman: Yes. Yes, it is. It seems is very excit- Hon. Curtis L. Dickinson: Oh, sorry. ing. I move that we approve clauses 1 and 2.

Hon. Patricia J. Gordon-Pamplin: As well as now on The Chairman: It has been moved that clauses 1 and page 15, the duplication that is there with respect— 2 be approved. Any objection to that? The Chairman: Class A. There appear to be none. Approved. Hon. Patricia J. Gordon-Pamplin: Class A insurer. I think that is probably just an oversight which needs to [Motion carried: Clauses 1 and 2 passed.] be corrected. Hon. Curtis L. Dickinson: Mr. Chairman? The Chairman: Minister, is it the same for page 15? Down at the bottom? The Chairman: Mm-hmm.

Hon. Curtis L. Dickinson: It would appear so, sir. Hon. Curtis L. Dickinson: Mr. Chairman, I would like to move clauses 3, 4 and 5 now, please. The Chairman: Okay. Any further speakers? The Chairman: Continue.

Hon. Patricia J. Gordon-Pamplin: Just the final Hon. Curtis L. Dickinson: Clause 3 provides for con- question on the last point that I had. sequential amendments to the Banks and Deposit Companies (Fees) Act 1975. The clause amends the Hon. Curtis L. Dickinson: The question with respect Banks and Deposit Companies (Fees) Act [1975] by to page 22, I think, digital assets business, I guess, repealing and substituting the Second Schedule to item (c). I am being told that this could be an oversight that Act. The substituted Second Schedule provides which we will check. for fees payable under Part A, for the period 1 Janu- ary 2019 to 31 December 2019; Part B, for the period Hon. Patricia J. Gordon-Pamplin: Sorry? 1 January 2020 to 31 December 2020; and Part C, as from 1 January 2021. Hon. Curtis L. Dickinson: It could be an oversight. Clause 4 provides for consequential amend- We have to check it; we will review it. ments to the Investment Funds Act 2006. Clause 5 provides for the Act to come into op- Hon. Patricia J. Gordon-Pamplin: Okay. eration on 1 January 2019, subject to subclauses (3) Bermuda House of Assembly Official Hansard Report 7 December 2018 351

and (4) of clause 2 and subclauses (3) and (4) of Okay. I move that the Schedules be ap- clause 3 of the Bill. proved.

The Chairman: Honourable Member [Pat] Gordon- The Chairman: Schedules 1 and 2. Pamplin. Hon. Curtis L. Dickinson: Yes. Schedules 1 and 2. Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. Chairman. The Chairman: It has been moved that Schedules 1 As indicated just a little earlier, that it was not and 2 be approved. possible for me to go into Part B or Part C. But I will Are there any objections to that? certainly undertake to do so from my perspective so if No objections. there are any concerns I certainly will point it out to Approved. the Minister so he can pass it on to the technical officers. [Motion carried: Schedules 1 and 2 passed.]

The Chairman: Thank you. The Chairman: Now you can move the preamble.

Hon. Patricia J. Gordon-Pamplin: So I have no ob- Hon. Curtis L. Dickinson: I move that the preamble jections to clauses 3 or 4. be approved.

The Chairman: Minister. The Chairman: It has been moved that the preamble be approved. Hon. Curtis L. Dickinson: Thank you, Mr. Chairman. Are there any objections to that? I would just like to advise the Member that There appear to be none. inconsistencies in the section references will be cor- Approved. rected by the Attorney General’s Chambers under the Computerization and [Revision] of Laws Act 1989. I Hon. Curtis L. Dickinson: I move that the Bill be re- thank you for your diligence in reading through the ported to the House as printed, or amended. Schedules and identifying the typos. Mr. Chairman, I move that clauses 3, 4 and 5 The Deputy Clerk: As printed. be approved. The Chairman: It has been moved that the Bill be The Chairman: It has been moved that clauses 3, 4 reported to the House as printed. and 5 be approved. Any objections to that? Are there any objections? There appear to be none. There appear to be none. The Bill will be reported to the House as print- Approved. ed.

[Motion carried: Clauses 3, 4, 5 passed.] [Motion carried: The Bermuda Monetary Authority Amendment (No. 3) Act 2018 was considered by a Hon. Curtis L. Dickinson: Mr. Chairman, I move that Committee of the whole House and passed without the preamble be approved. amendment.]

The Deputy Clerk: The two Schedules. [Crosstalk]

The Chairman: The Schedules first, there are two. The Chairman: What’s that? Go ahead.

Hon. Curtis L. Dickinson: I’m sorry? The Deputy Clerk: He has already said that there will be typos which will be corrected by Chambers. The Deputy Clerk: Move the two Schedules. The Chairman: Yes, under that 1989 Act. Hon. Curtis L. Dickinson: Well, the Schedules are part of the clauses 2 and 3. House resumed at 4:29 pm

The Chairman: Well, you have to move them sepa- [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] rately. REPORT OF COMMITTEE Hon. Curtis L. Dickinson: Move them separately? Okay. Whirr . . . rewind tape. Bermuda House of Assembly 352 7 December 2018 Official Hansard Report

BERMUDA MONETARY AUTHORITY AMENDMENT gime for insurance agents and brokers pursuant to the (NO. 3) ACT 2018 following IAIS core principles. ICP 18, which relates to the supervision of The Speaker: Good afternoon, Members. insurance intermediaries, requires that insurance su- Members, are there any objections to the pervisors to set and enforce requirements for the con- Bermuda Monetary Authority Amendment (No. 3) Act duct of insurance intermediaries, in order that they 2018 being reported to the House as printed? conduct business in a professional and transparent manner. An Hon. Member: No. ICP 19, which relates to the conduct of business, requires an insurance supervisory to ensure that The Speaker: No. So moved. It has been reported. insurers and intermediaries in their conduct of insur- That now moves us on to the next item on the ance business treat customers fairly both before a Order Paper which is the second reading of the Insur- contract is entered into and through to the point at ance Amendment (No. 3) Act 2018 in the name of the which all obligations under a contract have been satis- Minister of Finance. fied. Minister. ICP 21, which deals with countering fraud in insurance, requires an insurance supervisor to ensure SUSPENSION OF STANDING ORDER 29(1) that insurers and intermediaries take effective measures to deter, prevent, detect, report and remedy Hon. Curtis L. Dickinson: Mr. Speaker, I move that fraud in insurance. the Standing Order 29(1) be suspended to enable the ICP 22, which speaks to anti-money launder- House to proceed with the second reading of the Bill ing and combating the financing of terrorism, makes it entitled Insurance Amendment (No. 3) Act 2018. mandatory for a supervisor to ensure insurers and intermediaries take effective measures to combat The Speaker: Any objections? money laundering and the financing of terrorism. ICP No objections. 22 also provides that a supervisor must take effective Proceed. measures to combat money laundering and the financing of terrorism. [Motion carried: Standing Order 29(1) was suspend- Mr. Speaker, the House will note that these ed.] amendments pertaining to the insurance agents and brokers are equivalent to the requirements put in BILL place for insurance managers in 2015. Mr. Speaker, it is further proposed to amend SECOND READING the Insurance Act 1978 by making it mandatory for registered insurance agents and brokers to file an an- INSURANCE AMENDMENT (NO. 3) ACT 2018 nual return with the Authority covering the following matters: • Hon. Curtis L. Dickinson: Mr. Speaker, it gives me detailed corporate data of the intermediary pleasure to present to this House the Bill entitled In- and its clients; surance Amendment (No. 3) Act 2018. • corporate governance data; This Bill highlights the proposed changes to • training; the Insurance Act 1978 [the “principal Act”] that ena- • integrity data; bles the BMA to put in place a new reporting frame- • cyber risk; and work for registered insurance agents and insurance • anti-money laundering and countering the fi- brokers, otherwise known as “insurance intermediar- nancing of terrorism risk data. ies.” There are specific provisions in the amend- Mr. Speaker, the BMA is a founding member ment that are now to apply to insurance brokers and of the International Association of Insurance Supervi- agents, such as prudential rules, principal office and sors [IAIS] and continues to be an active participant payment of fees. within this international regulatory body to the benefit Mr. Speaker, industry participants were con- of both the Bermuda insurance sector and the BMA sulted on these proposed amendments from the peri- supervisory regime. The Authority is committed to en- od commencing August 2018 ending 7 September suring that the regulatory regime that governs insur- 2018. There were no material objections to the pro- ance registrants is suitably aligned with the core prin- posal. ciples set down by the IAIS through making necessary Mr. Speaker, the Bill also makes further enhancements to the local laws and regulations. amendments to the Insurance Act 1978 by providing Mr. Speaker, it is to this end that the Authority for new subcategory definitions, special purpose busi- proposes to take steps to enhance the regulatory re- ness, and for the registration of corporate bodies that may carry on run-off insurance business. Bermuda House of Assembly Official Hansard Report 7 December 2018 353

Mr. Speaker, the proposed amendment will made, and this is for the reduction or exemption from become quite clear to Members when we are in payment of fees. Committee. Mr. Speaker, in closing, I would like to That, instead of having to write to the Authori- thank all of those persons within the Bermuda Mone- ty and then they come back and say no, then you tary Authority, the Attorney General’s Chambers, the write back to them, and they say, Give us more detail, Ministry of Finance, and the private sector who have it would seem to me to be more efficient to write with assisted with the development of this Bill. all the detail first and say what the challenge is. Thank you, Mr. Speaker. If the Authority then says no, then instead of going back to have Caesar appealing unto Caesar, The Speaker: Thank you, Minister. instead of saying, you know, The Authority said no, Does any other Honourable Member wish to we are going to go back to the Authority. It seems to speak? me that this is an ideal opportunity for us to be able to We recognise the Honourable Member from harmonise our tribunals that we have, and that second constituency 23. Honourable Member Gordon- application may be able to be made to a tribunal, as Pamplin, you have the floor. opposed to going back to the Authority who has already told you no at the outset. It just seems like it is Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. counterintuitive. Speaker. The other concern that I have is with respect Mr. Speaker, this Bill actually manifests the to cyber risk. There are significant inclusions in this observation I had when we did the last one in terms of new requirement for cyber risk. And I think that all of this now give rise to the categories for which we have us know, I think that anybody who has even been half already passed the fees. awake in the course of the last year and a half, two years, will know the challenge that we have seen, cer- The Speaker: Mm-hmm. tainly in the United States with the involvement of Russia in the 2016 elections and the grief that this has Hon. Patricia J. Gordon-Pamplin: So that is why I caused to— said I thought it would it would have been more helpful if we had debated this first. So we put the structures in The Speaker: Donald Trump said that it is not true. place and then we know what the fees are for those structures. With that said, because I can multitask, Hon. Patricia J. Gordon-Pamplin: —that infrastruc- because I am a woman and that is the way we do ture. things— He says there is no collusion.

The Speaker: Well, well, well— The Speaker: Trump says that it is not true though.

Hon. Patricia J. Gordon-Pamplin: —I was able to— Hon. Patricia J. Gordon-Pamplin: And whether there was collusion or not, I said “involvement” and I think it The Speaker: Now we are all equal Members in this has already been established that involvement was House whether you wear a skirt or pants. We are all there. And that involvement is as a result of cyber equal. threats.

[Laughter] The Speaker: Mm-hmm.

Hon. Patricia J. Gordon-Pamplin: Well, well, well, Hon. Patricia J. Gordon-Pamplin: Cyber risks are Mr. Speaker, I do not want you to mislead the House. things that insurance companies, more recently, have had to acknowledge and deal with as an integral part [Laughter] of their operations, because it can serve to undermine everything that they do. So, the whole concept of what Hon. Patricia J. Gordon-Pamplin: However, the is now being required––and we can discuss it a little concern that I have in this Bill is with respect to two bit more when we get into Committee––but the whole areas. One of which is the situation when it comes to concept of what is required with respect to cyber risks, an application to reduce or to request an exemption are now needed from the Authority’s perspective as a from payment and you make an application. You ap- separate and involved entity report that must be sub- ply to the Authority, and if the Authority says no, it mitted. says to write again to the Authority with a little bit So the question begs whether any or part of more detail. It seems to me like we are taking two that can actually be included with the CISSA respons- bites of the cherry when it could be more efficient if es. This is the Commercial Insurer’s Solvency Self the first application to the Authority set out the terms Assessment, which they are required to file on an an- and conditions under which the request is being nual basis with their statutory returns, or the Financial Bermuda House of Assembly 354 7 December 2018 Official Hansard Report

Condition Report [FCR]. Because now we have got falling afoul of sanctioned territories are made aware CISSA, we have got the BSCRs [Bermuda Solvency of the pitfalls that occur. and Capital Return] that have to be filed. We have the I think that those are my major concerns that I auditor’s statements that have to be filed. We have have with the Bill, my observations (I should not say got the BSCRs that have to be filed. We have got “concerns”). Again, let me say that the Monetary Au- CISSAs that have to be filed. We have got an FCR thority is an institution that I respect. I take my hon- that has to be filed. And now we have got a big, major ourable colleague, the Deputy Leader’s comments in cyber risk entity that has to be filed along with all of terms of the additional work that is required for us, just the other ancillary documentation that is required in to make sure that we maintain our status as a pristine order for your filing to be complete. jurisdiction. And the Monetary Authority certainly goes So I only have concerns in terms of whether above and beyond in doing their part in order to en- this can be somehow streamlined into one report, as sure that we do not fall short, that we do not have the opposed to, on the face of what is happening here, or blacklisting issues that have existed, or the threats of what is appearing to be mentioned here, is a separate blacklisting that we now have to deal with that we will report coming in again which just involves more work start to look at. and more work and more work. I understand; I am not It is also very positive [that] this Bill ensures trying to understate the necessity for the oversight and that the insurers, insurance managers, brokers and the regulatory oversight. I am just trying to determine agents shall maintain a principal office in Bermuda, whether there is a method by which we can make all because that gives rise and support to the economic of these filings a little bit more efficient for the compa- substance that we will discuss, probably next week, in nies that have to do it. detail in terms of the Bill, and that the Authority is able It might be that we want to leave it as it is and to be satisfied that there is economic substance by the maybe even make it a little bit broader so that it cre- companies having the necessary infrastructure locally. ates another employment category so we can put Not only does that bode well for us as a jurisdiction, it some more people to work. However, I always try to also gives support to the necessity for us to ensure look at efficiencies and it just seems to me that the that we find employment for people. Because if there cyber risk reporting could be able to have some effi- is a local jurisdiction . . . even if a company has a spe- ciencies relating thereto. Because when you put your cialised area of expertise under which they operate, whole business plan and your economic plan for your they also will need [people] if they have a company in ensuing year, which also has to be filed, your eco- Bermuda, even right down to needing somebody to nomic capital models . . . it seems like that has got to clean the office after five. There is always a job for be part of it. Part of the economic capital model has somebody to do. got to include your cyber risks because that is a clear And the requirement to have this is something and present danger to most companies. that we saw for the first time, I think, making it a ne- The other thing that I wanted to just highlight, cessity a few years’ back. Certainly under our adminis with respect to the schedule of compliance and istration we discussed it and thought it was probably sanctions. I think it is critical that companies are made one of the best things that had come out of the BMA aware of their necessity not only to keep themselves having that requirement, that overarching requirement currently apprised of what the restricted territories are, for effectively having a local presence. so that they do not have any challenges with sanc- So as we continue to traverse the minefields tions compliance, but also to ensure that the training of scrutiny that are being imposed upon us by the relating to sanctions compliance goes down to their OECD, by the EU, by everything else . . . we have line staff. Because predominantly where you are going country-by-country reporting, everything that we have to get these issues, especially in an insurance envi- to do with the rules and regulations under which we ronment, is where you have situations where you have to operate in order to be seen to be a pristine have got underwriters. And underwriters may be writ- jurisdiction. Notwithstanding that we have the benefits ing a risk and a risk may happen to emanate in a of (a) experience, and (b) reputation, that bodes well country or in a territory that has these restrictions. The for us as a country, we need to make sure that we underwriter may be unaware at the time that what he stay on that track and that we do not falter from it in is doing is not appropriate because there are sanc- any way, shape, or form. And for that I am apprecia- tions. tive to the Monetary Authority and obviously their sen- Well, under normal circumstances, these mat- ior staff for the job that they do in order to bring these ters will be caught by the board. And when one gives issues to the fore to make sure that it is enshrined their plans in terms of this is what we are planning on effectively in legislation so that when we are asked we writing, it can get caught. But I think that the educa- can hand on heart say, It’s there. We have done it. tional component is critical. I think that companies And, yes, we are complying. have to take that responsibility to ensure that every Thank you, Mr. Speaker. member of their staff who is likely to be impacted by The Speaker: Thank you, Member. Bermuda House of Assembly Official Hansard Report 7 December 2018 355

Does any other Member wish to speak? hanced supervisory and regulatory requirements to No other Member. Minister, once you get your apply to insurance brokers and agents in Bermuda, note, I will let you have the floor. and in furtherance of amendments required to be made to the Fourth Schedule of the Bermuda Mone- ANNOUNCEMENT BY THE SPEAKER tary Authority Act 1969, under the heading “Insurance Act 1978.” HOUSE VISITOR The Chairman: Mm-hmm. The Speaker: But in the meantime, I would just like to recognise that in the Gallery there is Senator Jones. Hon. Curtis L. Dickinson: I would like to ask to move Senator Jones, welcome to our Chamber. clauses 1 through 4.

[Insurance Amendment (No. 3) Act 2018, Second The Chairman: Continue. Reading debate, continuing] Hon. Curtis L. Dickinson: Clause 1 provides for the The Speaker: Minister. Bill’s citation. Clause 2 amends the principal Act in section 1 Hon. Curtis L. Dickinson: Thank you, Mr. Speaker. to insert new subcategory definitions of “special pur- In response to the questions by my colleague, pose business.” The new subcategory definitions are I have been advised that the Schedule of Cyber Risk, “restricted special purpose business” and “unrestricted part of the annual filing for insurers, data called in special purpose business.” The Authority has pro- 2018 with industry cooperation. posed this amendment in furtherance of enhancing Has it brought any clarity for you? the manner in which it seeks to supervise and regulate the business to be carried out on Special Purpose [Inaudible interjection] Insurers. Where a Special Purpose Insurer proposes to conduct business with only one policyholder, it shall Hon. Curtis L. Dickinson: Then they provide guid- be deemed by the Authority to be carrying on “re- ance on cybersecurity. Shortly there will be some fol- stricted special purpose business”; where a Special low-up on that. Purpose Insurer proposes to carry on business with And then the fee reductions announced for multiple policyholders, it shall be deemed by the Au- the tribunal appeal . . . in the past, the Authority will thority to be carrying on “unrestricted special purpose allow more detailed applications for fee reductions, business.” The Authority already has regard at the waivers, and review on work to be done. time of registration of Special Purpose Insurers regarding the number of policyholders it seeks to insure The Speaker: You can move us to Committee. under section 5(2)(a) and now seeks to formalise this process. Hon. Curtis L. Dickinson: Mr. Speaker, I move that Clause 3 amends the principal Act in section 4 the Bill be committed. by expanding the manner in which the Authority may register the type of special purpose business to be The Speaker: Thank you, Minister. conducted by Special Purpose Insurers. Under the Deputy. new provision a Special Purpose Insurer may be registered to carry on either “restricted” or “unrestricted” House in Committee at 4:46 pm special purpose business. Clause 4 amends the principal Act in sec- [Hon. Derrick V. Burgess, Sr., Chairman] tion 4A to insert subsections (5) and (6), which provide that, when determining the class of general busi- COMMITTEE ON BILL ness to be conducted by a corporate body seeking registration, the Authority may also determine whether such corporate body may be registered to carry on INSURANCE AMENDMENT (NO. 3) ACT 2018 run-off insurance business.

The Chairman: Honourable Members, we are now in Committee of the whole [House] for further considera- The Chairman: The Chair recognises the Honourable tion of the Bill entitled Insurance Amendment (No. 3) Member Pat Gordon-Pamplin. You have the floor, Act 2018. Honourable Member. Minister, you have the floor. Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. Hon. Curtis L. Dickinson: Mr. Chairman, this Bill Chairman. seeks to amend the Insurance Act 1978 (the “principal Mr. Chairman, as mentioned, we certainly Act”) to, amongst other things, make provision for en- support this, but we . . . I just wanted to highlight that Bermuda House of Assembly 356 7 December 2018 Official Hansard Report under clause 2, we have already shown that we have Hon. Curtis L. Dickinson: I move that clauses 1 reflected the fees in the BMA Act that we passed ear- through 4 be approved. lier for the fees. The Chairman: It has been moved that clauses 1 The Chairman: Mm-hmm. through 4 be approved. Any objections to that? Hon. Patricia J. Gordon-Pamplin: I have a question There appear to be none. with respect to [clause] 4, and that was the concern Approved. that I raised while we were in the debate of the whole [House], and that was in respect of the run-off busi- [Motion carried: Clauses 1 through 4 passed.] ness, and the fact that onshore has become more appealing. Have we gotten any kind of financial impact The Chairman: Carry on, Minister. as to what we are likely to lose by having this special category of run-off business, given the fees that are Hon. Curtis L. Dickinson: Mr. Chairman, I now wish attendant thereto? to move clauses 5 through 9.

The Chairman: Minister. The Chairman: Continue.

Hon. Curtis L. Dickinson: I am just waiting for my Hon. Curtis L. Dickinson: Clause 5 amends the prin- technical officers to provide me with an answer to that. cipal Act in section 6A to allow for the Authority to create prudential rules to govern the manner in which The Chairman: Understood. insurance brokers and insurance agents are to comply with technical requirements. [Pause] Clause 6 amends the principal Act in section 6C to require insurance brokers or agents to apply to The Chairman: Minister, are you with us? the Authority where they are desirous of being exempted from the requirements of any prudential rule Hon. Curtis L. Dickinson: Yes, Mr. Chairman. (or any part thereof); or to have an applicable pruden- I have been advised that there has been no tial rule modified. financial impact analysis. However, the BMA did com- Clause 7 amends the principal Act in section 8 plete a target operating model review. And, I think, to require insurance brokers and agents to have a consistent with that review, they are comfortable with principal office and to confirm at registration the loca- the construct that is being proposed. tion of such office; penalties shall apply for non- compliance. The Chairman: Any further speakers? Clause 8 amends the principal Act in section The Chair recognises the Honourable Mem- 8B by repealing and replacing subsection (1) to pro- ber, Pat Gordon-Pamplin. vide clarity as to the opinion requirements to be imposed on a loss reserve specialist appointed by a Hon. Patricia J. Gordon-Pamplin: Yes, just for clari- Class 1, 2, 3 or Class IGB insurer. ty. The Minister indicated that there had not been a Clause 9 amends the principal Act in sec- financial impact analysis done. And I know that action 14, (i) to require insurance brokers and agents to cording to House rules we should have, when we pay registration, annual and other relevant fees; (ii) to have these kinds of Monetary Bills, there should be a provide a new power to be exercised by the Authority financial impact statement that is attached to it, and I to exempt any registered person from the payment of note that this is missing. But I think that at some point any fee imposed by or under the section; (iii) to re- if the Minister would be willing to share with this quire an application to be made in relation to excepted House, and certainly share with me, so that we can long-term business under section 1(1)(a)(iv); and have some comfort that the financial impact, you (iv) to provide a new power for the Authority to reduce know, what it is so that we can start to evaluate. I ap- any fee payable by a registered person under the sec- preciate the Minister’s response. tion. The new provision requires that prior to granting exemption from or reduction of fee payment, the Au- The Chairman: Minister. thority is to take into account the nature, risks and scope of the business conducted or to be conducted Hon. Curtis L. Dickinson: [No Audio] by the registered person. The Authority may also re- voke its approval and is required to notify the regis- The Chairman: Do you have your microphone on? tered person in writing, who shall have 28 days from the notification date to make representations to the [Crosstalk] Authority. The Authority is required to have regard to representations made when making its decision. Bermuda House of Assembly Official Hansard Report 7 December 2018 357

The Chairman: Any further speakers? [Motion carried: Clauses 5 through 9 passed.] The Chair recognises the Honourable Mem- ber Gordon-Pamplin. The Chairman: Minister, carry on.

Hon. Patricia J. Gordon-Pamplin: Mr. Chairman, Hon. Curtis L. Dickinson: I move clauses 10 through clause 5 and 6 are effectively housekeeping, and we 15. have no objections to those. Clause 7, as I mentioned before in the debate, The Chairman: [Clauses] 10 to 15? it is just positive that insurers, insurance managers, brokers and agents shall maintain a principal office in Hon. Curtis L. Dickinson: Yes. Bermuda. That is not discretionary. That is mandatory; it is obligatory. I think it is important for our economy The Chairman: Continue. to ensure that people who are benefiting from this jurisdiction pay their fair share, and make sure that they Hon. Curtis L. Dickinson: Clause 10 amends the have an infrastructure that supports them, but I have principal Act by inserting a new section 17B which no objections. imposes a requirement on insurance brokers and agents to file statutory financial statements. The Chairman: Minister. Clause 11 amends the principal Act in section 18A to align it with the new requirement imposed on Hon. Curtis L. Dickinson: Mr. Chairman, I move that insurance agents and brokers under section 18AA; clauses 5 through 9 be approved. and ensures that there is a penalty imposed for non- compliance with such requirements. The Chairman: It has been moved that clauses 5 Clause 12 amends the principal Act in section through 9 be approved. 28 by requiring insurance agents to maintain a list of Any objections to that? insurers for whom they act. Clause 13 amends the principal Act in section Hon. Michael J. Scott: Mr. Chairman, before . . . 30 to extend the power of investigations on behalf of the Authority to insurance brokers and agents. The Chairman: No, no, no. Uh-huh. Clause 14 amends the principal Act in section It has been moved that clauses 5 through 9 30AA to require insurance brokers and agents to pro- be approved. duce documents to the Authority in accordance with Are there any objections to that? the requirements of the section. You have an objection? Clause 15 amends the principal Act in section 30CA to require insurance brokers and agents to noti- Hon. Michael J. Scott: Yes, I have an objection. fy the Authority of changes of shareholder controller or It is not an objection, I wish to . . . I thought officer. that you were going to invite other Members to speak after the Madam sat down, because I would like to The Chairman: Are there any speakers to clauses 10 speak to clause 5. through 15? The Chair recognises the Honourable Mem- The Chairman: Do you have objections? ber Pat Gordon-Pamplin.

Hon. Michael J. Scott: No, sir, as I indicated, it is not Hon. Patricia J. Gordon-Pamplin: [Clauses] 11 an objection. through 15, Mr. Chairman, are all just housekeeping. But I think it is important in [clause] 10 just to point out The Chairman: Well, you know, we are . . . you are that this is the springboard from which the other objecting. The Minister has moved the clauses to be amendments are being made. And that is to ensure approved. I cannot retract that. that insurance managers, brokers, agents shall file a statutory return in the prescribed form. Hon. Curtis L. Dickinson: Mr. Chairman, I would like I just wanted to find out what the formalisation to move clauses 10 through 15. process is for the filing of that prescribed form. Are they constrained by the same dates for filing as exist th The Chairman: Hang on. I have to put through claus- under the April 30 drop-dead date of the statutory es 5 through 9 before we . . . returns? It has been moved that clauses 5 through 9 be approved. The Chairman: Minister. Any objections to that? There appear to be none. Hon. Curtis L. Dickinson: Mr. Chairman, I am wait- Approved. ing for some technical advice on this one. Bermuda House of Assembly 358 7 December 2018 Official Hansard Report

The Chairman: Are there any further speakers? The Chairman: It has been moved that the Schedule be approved. [Pause] Are there any objections to that? There appear to be none. Hon. Curtis L. Dickinson: Mr. Chairman, Honourable Approved. Member, I have been advised that there is a requirement that financial statements be prepared and be [Motion carried: The Schedule passed.] filed by or on June 30th, annually. Hon. Curtis L. Dickinson: I move that the preamble The Chairman: Any further speakers? be approved. Minister, you want to move [clauses] 10 through 15? The Chairman: It has been moved that the preamble be approved. Hon. Curtis L. Dickinson: Mr. Chairman, I move that Any objections to that? clauses 10 through 15 be approved. There appear to be none. Approved. The Chairman: It has been moved that clauses 10 through 15 be approved. Hon. Curtis L. Dickinson: I move that the Bill be re- Any objections to that? ported to the House as amended. [sic] There appear to be none. Approved. The Chairman: It has been moved that the Bill be reported to the House as . . . [Motion carried: Clauses 10 through 15 passed.] [Inaudible interjection] The Chairman: Continue, Minister. The Chairman: As printed. Hon. Curtis L. Dickinson: Mr. Chairman, I would like Any objection to that? to move clauses 16 through 18. The Bill will be reported to the House.

The Chairman: Okay. Fine. Continue. [Motion carried: The Insurance Amendment (No. 3) Act 2018 was considered by a Committee of the Hon. Curtis L. Dickinson: Clause 16 amends [para- whole House and passed without amendment.] graph] 4(2B) of the Schedule to the principal Act to extend the requirements of paragraph 4(2B) of the House resumed at 5:02 pm Schedule on minimum criteria for licensing to insurance brokers and agents. [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] Clause 17 provides for amendments in the Schedule to the Insurance Returns and Solvency REPORT OF COMMITTEE Regulations 1980 to make requirements, among other things, with respect to the schedule of cyber security INSURANCE AMENDMENT (NO. 3) ACT 2018 management and the schedule of sanctions compliance. The Speaker: Members, are there any objections to Clause 18 provides for commencement. the Insurance Amendment (No. 3) Act 2018 being reported to the House as printed? The Chairman: Any further speakers? No objections? No? Minister, do you want to move . . . It has been so moved and reported to the Hon. Curtis L. Dickinson: Mr. Chairman, I move that House. clauses 16 through 18 be approved. We will now move on to the next item on the Order Paper. It is the consideration of the Contributory The Chairman: It has been moved that clauses 16 Pensions (Amendment of Benefits) Order 2018, and through 18 be approved. again, in the name of the Minister of Finance. Are there any objections? Minister, would you like to carry on? There appear to be none. Approved. SUSPENSION OF STANDING ORDER 29(1)

[Motion carried: Clauses 16 through 18 passed.] Hon. Curtis L. Dickinson: Mr. Speaker, I move that the Standing Order 29(1) be suspended to enable the Hon. Curtis L. Dickinson: I move that the Schedule House to proceed with the consideration of the draft be approved. Order entitled Contributory Pensions (Amendment of Bermuda House of Assembly Official Hansard Report 7 December 2018 359

Benefits) Order 2018 proposed to be made by myself, would represent an additional cost of $2.3 million per the Minister of Finance, under section 37 of the Con- year to the fund, with a retroactive pay costing approx- tributory Pensions Act 1970. imately $950,000. The Contributory Pension Fund in principle relies on current contributors, or workers, The Speaker: Any objections? paying for current pensioners and for the most part No objections. Continue. this is a pay-as-you-go finance programme. However, the policy of increasing contribution rates by 2.5 per [Motion carried: Standing Order 29(1) suspended.] cent above the rate of pension increases has allowed a significant level of funds to build up and thus the ORDER plan is partially funded, which provides further security of benefits. CONTRIBUTORY PENSIONS (AMENDMENT OF Under section 37 of the Contributory Pension BENEFITS) ORDER 2018 Act 1970, the Minister of Finance has the power to make an Order to revise the rate of contributions and Hon. Curtis L. Dickinson: Mr. Speaker, I am pleased benefits of the Contributory Pension Fund. Mr. to present the Contributory Pensions (Amendment of Speaker, there are seven types of benefits payable Benefits) Order 2018 for the consideration of the Hon- under the Contributory Pension Act 1970. All of the ourable Members. This is a reflection of Government’s pensions and allowances will be increased by 1.4 per resolute and unwavering commitment to improve the cent. These pensions and allowances are as follows: quality of life of our senior citizens. 1. Contributory old age pension; Mr. Speaker, you will recall in the Govern- 2. Contributory old age gratuity; ment’s 2017 Election Platform it was declared that this 3. Contributory widow or widower’s allowance; Government would put our seniors first and institute 4. Contributory widow or widower’s gratuity; annual cost of living increases for Social Insurance 5. Contributory disability benefit; pensions that will be linked to the rate of inflation to 6. Non-contributory old age pension; help lessen the hardships that too many of our seniors 7. Non-contributory disability benefit. now endure. Mr. Speaker, before I get into the specif- Mr. Speaker, the basic contributory pension ics of this Order, it may be useful to elaborate on the [is] $1,049.68 per month. The maximum contributory pensions arrangements currently in place. pension payable which includes additional increments Bermuda, like most other countries, currently is approximately $1,531.00 per month, although some provides retired individuals with a combination of So- 13,298 persons currently receive benefits under the cial Insurance from the Contributory Pension Fund Act. The proposed $1.4 per cent increase will raise and an occupational pension from their employer. In a the basic contributory pension to $1,064.37 per month perfect world, the Social Insurance would provide a and the maximum benefit to about $1,545.63 per first tier, or basic, pension which would most likely be month. Approximately 8 per cent of the 13,298 seniors supplemented by a second tier, or occupational pen- covered by the Contributory Pension Fund receive sion. Through no fault of their own, currently a number maximum pension benefits ranging from basic to the of retired persons are not receiving an occupational maximum. Mr. Speaker, the 1.4 per cent increase marks pension and are, therefore, relying on their Social In- th surance as their sole source of income in retirement. the 12 pension increase that the Progressive Labour Obviously, Mr. Speaker, this is not an ideal situation Party has put in in its time in Government. and the Government continues to do its upmost to ensure that seniors who rely heavily on their Social An Hon. Member: Hear, hear! Insurance benefits are cared for suitably. Mr. Speaker, notwithstanding the above, the Hon. Curtis L. Dickinson: Since taking office in No- Contributory Pension Fund benefit provides an im- vember of 1998, and now, this Government has put portant base retirement income. Currently, the maxi- through 12 increases. In August of 2000, there was an mum pension paid under the Contributory Pension increase of 3.0 per cent. In August of 2002, there was Fund is around 26 per cent of the median annual another 3.0 per cent. In August of 2003, there was gross earnings for Bermudians as indicated in the another 3.0 per cent. In August of 2004, we increased Bermuda Job Market Employment Briefs produced by pensions by an extraordinary 9.0 per cent. In August the Department of Statistics. This compares closely of 2005, there was an increase of 3.5 per cent. In Au- with the UK with a full basic state pension as a per- gust of 2006, there was an increase of 4.0 per cent. In centage of average earnings is around 24 per cent. August of 1007, [an increase] of 4.5 per cent. In 2008, Mr. Speaker, the purpose of the Order is to similarly August, 5.0 per cent. In August of 2009, [an increase pensions and other benefits under the Con- increase] of 5.0 per cent. In August of 2011, [an in- tributory Pensions Act 1970 by 1.4 per cent, backdat- crease of] 3.0 per cent. In August of 2017, [an in- ed to August 2018, when increases are typically made crease] of 1.7 per cent. And now for August of 2018, to the benefits. The 1.4 per cent increase in benefits an increase of 1.4 per cent. Bermuda House of Assembly 360 7 December 2018 Official Hansard Report

In every case, the benefit increase has either monitor the performance of the fund. It should also be exceeded the prevailing rate of inflation or has been in noted that the funding policy for the fund is not based line with the underlying trend rate. Honourable Mem- on full actuarial funding, but based on sustainable bers are advised that based on the CPI, the cost of funding; that is, contributions plus investment income living has increased by 1.4 per cent since the last in- should cover benefits and administration expenses on crease was granted. Therefore, the proposed benefit an annual basis while the fund builds up sufficient re- increase fully covers the prevailing rate of inflation. serves to cover several years of benefits and expens- Mr. Speaker, the 2018 increase in benefits would es to withstand future adverse circumstances. normally be accompanied by a corresponding in- Mr. Speaker, despite the encouraging short- crease in contributions by an actuarially recommend- to medium-term outlook on the fund, what is clearly ed rate of 3.9 per cent. However, Honourable Mem- evident from the latest actuarial review, is that Bermu- bers will recall that in the 2018 Throne Speech, Gov- da, like most of the developed world, is faced with the ernment announced that Bermuda’s Social Insurance challenges associated with the growth of an ageing system would be changed from a flat rate contribution population. During the next 50 years, the number of to one based on a percentage of income. Therefore, people over pension age, 65 at the moment, is ex- contribution increases will be delayed until the actuary pected to increase from 10,484 to 17,665, an increase completes the modelling to effect this policy objective. of 7,181, or 68 per cent. This increase in our seniors Honourable Members are advised that the will obviously place a greater strain on the country’s actuary is currently working on the 2017 Actuarial Re- pension system, and it is essential that Government port for the Contributory Pension Fund and it is antici- continues to closely monitor the performance of the pated that this report will be completed in the second fund and our overall pension arrangements to ensure quarter of 2019, at the latest. Mr. Speaker, it is also pensions are set at an appropriate level. noted that contributions were last increased in August As mentioned [previously], the next actuarial 2018 by 4.2 per cent. Considering the relatively strong report for the Contributory Pension Fund is due for the position of the fund, it is anticipated that the fund can period August 1, 2017, and is currently underway. withstand the one-year delay in contribution increas- This report will be tabled in this Honourable House as es. However, it is critical that the increased contribu- soon as it is completed. Following this review the Min- tions come into force in August 2019. istry will propose changes to the fund to ensure its Mr. Speaker, as of 30 September 2018, the sustainability in the long term. Mr. Speaker, the Pro- fund had total assets of over $1.9 billion, representing gressive Labour Party Government is nurturing the approximately 11.7 times the annual value of the ben- Contributory Pension Fund and tending to the needs efit paid in the 2017/18 fiscal year. This is a relatively of our seniors and we are striking the right balance high rate of funding, and when compared to 14 other between social and fiscal responsibility. Social Security schemes in a 2013 study, Bermuda’s Mr. Speaker, in closing, I wish to assure ratio is better than nine of these countries, an average Members, and more importantly, current and future of 7.5 years. By comparison, the ratio for the Canada pensioners, that Government is sensitive to the chal- pension plan in 2017 was 7.5 times. lenges facing pension plans of this nature and will en- The effect, Mr. Speaker, is that if the Contribu- deavour to take the appropriate steps to enhance the tory Pension Fund received no further contributions it benefits paid from the scheme, as well as ensure the could still continue to pay out pensions at the prevail- fund has an ongoing ability to pay for such benefits. ing rate for almost 12 years. However, the reality is Thank you, Mr. Speaker. that contributions will continue through time and will be increased from time to time. In addition, the pru- The Speaker: Thank you, Minister. dent investment of the pension fund assets is also an Does any other Member wish to speak? important factor in the fund’s financial position. In this I recognise the Honourable Member from regard, Government’s investment strategy for pension constituency 23. Honourable Member, you have the fund assets is achieving good results. floor. As [previously] mentioned, as of Septem- ber 30, 2018, the Contributory Pension Fund stood at Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. $1.9 billion. For the trailing year, the fund posted re- Speaker. turns of 6.7 per cent. And over the longer term, 5- and Mr. Speaker, of the legislation that we have 10-year periods, the fund posted returns of 6.1 [per passed today, this is clearly the pièce de résistance. cent] and 7.4 per cent, respectively. And I say that because we have an increase of pen- Mr. Speaker, as evidenced by the 2014 Actu- sions to our seniors, as the Minister has indicated in arial Report tabled in this Honourable House in June his presentation, which ranges from the high amount, 2016, the viability of the fund in the short- to medium- the top amount that people are getting, which is now term is good, with the fund being positive for the next $1,531.00 per month, which will go up to $1,545[.63] 25 years. However, recognising the long-term chal- per month, and is an increase of $14.00. lenges of the fund, the Ministry will continue to closely Bermuda House of Assembly Official Hansard Report 7 December 2018 361

That $14.00, Mr. Speaker, will just about pay the impact on them, notwithstanding what the overall for the Paw Paw that the Honourable Member spoke CPI index might be . . . the impact on Mr. and Mrs. to this morning (that he received a picture of) to say Senior is significant. Now, we are going to get a that the Paw Paw costs $14.00. Because there is not pushback coming from the Government saying, Well, much more that can be purchased. what happened to you? You didn’t give them increas- When we say that we want to increase how es during the four years that you were in Government. we care for our seniors, Mr. Speaker . . . and the Min- You only gave them increases the last year (I think it ister then went on to say that in 2000 they had a 3 per was; we might have done one, maybe it was two. cent increase, and then 3.0 per cent for 2002, 2003. There were two increases. So we missed one). And 9.0 per cent in 2004; 3.5 per cent in 2005; in But against the backdrop of attempting to 2006, they had 4.0 per cent; in 2007, 4.5 per cent; in keep the country from falling off the edge of a financial 2008 and 2009, were 5.0 per cent, respectively; in cliff, the austerity measures that were required to be 2011, was 3.0 per cent. And then they were only employed were significant. I expect the criticism. And I speaking about their years, so 2017 was 1.7 per cent; can take the criticism, Mr. Speaker. But I can tell you and 2018 was 1.4 per cent. So this is the lowest pen- that if things are as wonderful as the PLP Government sion increase that this Government has afforded to would have us believe they are, they should be our seniors, many of whom are struggling severely ashamed of themselves to come to seniors with a since they came into office in 1998. 1.4 per cent increase. [In 2018] 1.4 per cent—1.4 per cent! And as I If you stop and look at the amounts, Mr. said, Mr. Speaker, what we have seen and what we Speaker, it is almost embarrassing to highlight them. heard about with price gouging this morning, that dif- Where the basis of a contributory, which is now ference at the top level cannot pay for Paw Paw. 11085, it will go up to 11240, and increase of 155. Mr. Speaker, our concern, obviously, is for Mr. And that is based on a group of contributions of which Smith and Mrs. Smith. And our concern relating to that the minimum, I believe, is 25 contributions, up to a is going to be expressed in our support for this legisla- level of additional contributions that help to make up, tive Order, because, Mr. Speaker, a half a loaf, I to put the numbers of blocks (as it were) . . . This is would imagine, is better than none. But at 1.4 per where our blockchain comes in. I suppose we have to cent, I would have been embarrassed to bring this to be appreciative of it. Where the blocks together will this Honourable House. bring this base up to the total of $1,545. Why would I be embarrassed? Because what When you have some seniors, as I had very it appears is that the Minister and the Government are recently, complain that the insurance policy that they doing not much more than ticking the boxes. We said are paying for two people was in excess of $3,000, we were going to give you a pension increase, so and now we are seeing that each of them, provided here is your pension increase. Don’t complain, Mr. that they had full contribution, will get a total of and Mrs. Bermuda. I am giving you a pension in- $3,060, then they have a whole $60 left over to buy crease. That is what we said we would do and that is some food, pay lights, buy clothing, and what have what we are doing. And I grant them that, but 1.4 per you. cent. Let not anybody get particularly excited as to So I am saying that while I support any in- what this extra is going to do for them. crease for our seniors, at this paltry level we are caus- Probably the one fortunate thing is, there is a ing our seniors to grovel when they do not need to. presumption that with this being retroactive to the 1st When we listen to some of the increases that we have of August, that people will probably see it in their pen- just put through, and some of the corporate stuff, and sion cheques this week. But I do not know. It might you see these, you know, 8, 10, and 15 per cent in- not be possible, possibly. So it means that they will creases coming through for Monetary Authority and not even see this until after Christmas. So there is no you sit there and you start to juxtapose that against Paw Paw casserole, Mr. Speaker, for Mr. and Mrs. where the real necessity is. And the real necessity is Smith. There is very little more that they can do. Their in our senior population, Mr. Speaker, those who we medications, notwithstanding that the Minister indicat- always hear cannot afford the rent, have to make the ed that the rate of inflation, the CPI, has increased by choice between food and medicine. And this Govern- 1.4 per cent; hence, this 1.4 per cent offset. ment with a 1.4 per cent paltry contribution has failed But it is important also to understand that to give any significant or appreciable relief to our sen- what is contained in the basket of goods and services iors. is not necessarily all of that, that Mr. and Mrs. Senior So, as I said, Mr. Speaker, the pièce de résis- require. That basket of goods and services is more tance is the most disappointing of all the reasons why indicative of your average person in the street, your I have stood on my feet today. Mr. Speaker, you might median population, if I can put it that way, Mr. Speak- notice that I have been up on every single piece of er. Mr. and Mrs. Senior are not out buying diapers. legislation that we have covered today. They are not out buying the things that help to make up the basket of goods and services. And therefore, Bermuda House of Assembly 362 7 December 2018 Official Hansard Report

The Speaker: You have been active this afternoon, Mr. Speaker— yes. An Hon. Member: Wow! Hon. Patricia J. Gordon-Pamplin: That is for my sins of being both a spokesperson in this House responsi- Another Hon. Member: It is from your side. ble for Health, as well as the spokesperson responsible for Finance. And I have no problem with carrying [Inaudible interjections] that burden, Mr. Speaker, especially when we want to advocate on behalf of people who cannot advocate for Hon. Wayne L. Furbert: —are you trying to tell me themselves. . . . not you, Mr. Speaker. But I would ask that the Government, when they look at what they are attempting to do, as op- The Speaker: Speak to the Chair. Speak to the Chair. posed to just trying to tick the box so that they can go in 10 years’ time and say, And we gave them a pen- Hon. Wayne L. Furbert: But is the Opposition is try- sion increase of 1.7 per cent last time, and 1.4 per ing to tell me that this Government, who has made a cent . . . if you take last years’ increase plus this commitment to the people of Bermuda, to the seniors, years’ increase, it just about ekes out a comparison to that they will give an increase every year while they the lowest amount that they gave to the seniors, and are the Government, [that it] is wrong? When they that was in 2011. Because that gave you a 3.1 per were in power, Mr. Speaker, for five years—five cent total last year and this, when in 2011, they of- years—and gave one increase. Am I . . . am I . . . Mr. fered a 3.0 per cent increase. Speaker, am I missing something? So, Mr. Speaker, some people might get ex- And they tell me, Mr. Speaker, that they care. cited. The Government may say, We ticked the box. But when did they start caring? When the former Min- We heard the Minister beat his chest, pound his chest ister— and say that, We promised this in our Throne Speech. We promised it in our platform. We are going to give [Inaudible interjections] you an increase every single year. But you know what? I can say to my children that I am going to give Hon. Wayne L. Furbert: She was the Minister of you something every year. The question is, What is Health. The [Honourable Member] was the Minister of the relative value of what they are getting? And in this Health. And the former Premier sits there as they instance, Mr. Speaker, there is nothing that would say chat, and could not get his Cabinet to support an in- to me that Mr. and Mrs. Senior Smith are going to be crease for our seniors every year? Mr. Speaker, at any better off with this paltry 1.4 per cent increase least the seniors can buy a Paw Paw for $14.00. Un- than they were prior to it. Especially given that they der the OBA, they could not buy a Paw Paw at all! will not be able to have Paw Paw casserole for Christmas. [Laughter] Thank you, Mr. Speaker. Hon. Wayne L. Furbert: Mr. Speaker, they could not The Speaker: Thank you, Honourable Member. even buy a Paw Paw, because there was no increase Does any other Honourable Member wish to under their administration, [except] for one year. And speak? Mr. Speaker, that was leading up to an election. Try- We recognise the Honourable Member from ing to get the senior support. All of a sudden they constituency [6] , Honourable Member Furbert. You woke up and realised, Oops! We forgot to take care of have the floor. our most important citizens in Bermuda. Our seniors! And the Honourable Member, as she leaves, Hon. Wayne L. Furbert: Thank you, Mr. Speaker. must recognise that. You cannot challenge this Gov- ernment, who is talking about giving an increase every [Crosstalk] year on the rate of inflation, and they give no increase! Am I losing my mind? Hon. Wayne L. Furbert: Just one minute, Mr. Speak- er. [Inaudible interjections] The Speaker: Yes, you have the seat. An Hon. Member: Yes. [Pause] [Crosstalk] Hon. Wayne L. Furbert: Mr. Speaker, you know, I was not sure if I should slap myself to make sure I Hon. Wayne L. Furbert: Mr. Speaker, the Honourable was not dreaming. But I realised, Mr. Speaker, that we Member who speaks for constituency 11 [sic], in- are living in times of deception. Bermuda House of Assembly Official Hansard Report 7 December 2018 363

creases his prices every year on the wholesales Hon. Wayne L. Furbert: I know who I would like to against our seniors. slap.

Some Hon. Members: Ooh! An Hon. Member: You would like to slap yourself.

[Inaudible interjections] [Laughter]

Hon. Wayne L. Furbert: But would not give seniors The Speaker: Now, now . . . keep the conversation an increase! here.

[Inaudible interjections] Hon. Wayne L. Furbert: I wasn’t talking to him, Mr. Speaker. Hon. Wayne L. Furbert: [Constituency] 10. But he would not give an increase. The former The Speaker: Keep the conversation here. Premier would not give . . . the Honourable Michael Dunkley, from [constituency] 10, knew that he was Hon. Wayne L. Furbert: Mr. Speaker, I started out giving an increase on his Paw Paws, his eggs, his by— bread, his Pepsi, and the list goes on and on. But he would not give an increase to our seniors. [Inaudible interjections] Am I missing something, Mr. Speaker? There is not one Member on that side— Hon. Wayne L. Furbert: I started out by saying I would slap myself. The Speaker: Speak to the Chair. An Hon. Member: Yes, that’s what I’m saying. Hon. Wayne L. Furbert: —can stand up and justify for five years not giving an increase to our seniors. The Speaker: Keep the conversation this way. But, Mr. Speaker, what did the PLP do? In 2000, they gave 3.0 per cent. In 2002, they gave Hon. Wayne L. Furbert: I started out by saying I 3.0 per cent. In 2003, they gave 3.0 per cent. In 2004, would like to slap myself. they gave 9.0 per cent. In 2005, 3.5 per cent. In 2006, 4.0 per cent. In 2007, 4.5 [per cent]. In 2008, 5.0 per The Speaker: Keep it this way. cent. In 2009, 5.0 per cent. In 2011, 3 per cent. And then all of a sudden, the OBA took over. An Hon. Member: Yes, that is what I said. In 2012, 0.0 per cent; 2013, 0.0 per cent; 2014, 0.0 per cent; 2015, 0.0 per cent, Mr. Speaker. And Hon. Wayne L. Furbert: So that is what I said. they are talking about who cares? They should . . . you know, I was trying to An Hon. Member: That is what I said. keep . . . I said, They won’t say nothing. They wouldn’t have the nerve to stand up and challenge a 1.4 [per Hon. Wayne L. Furbert: And that is why I said I know cent]. A lady who can buy a Paw Paw, but under their who I want to slap. administration they couldn’t even buy that Paw Paw. I could not believe when they stood up. I said, I must be An Hon. Member: Yourself. dreaming. They aren’t even politically smart to realise just keep quiet when you know you are in trouble. Hon. Wayne L. Furbert: You can say what you want. Mr. Speaker, I am proud of this Government. Mr. Speaker, I cannot . . . just sit down in your We made a commitment to the seniors of this Island. seat. Take your political advice and tell your advisors Mr. Speaker, we not only gave an increase, but this to keep quiet. year [we] reduced some of the goods when it came to When you are in a hole, stop digging. Do not those products . . . that are . . . um . . . e— get back up and . . . and . . . and . . . I do not know who is going to stand up after me, but I would suggest [Inaudible interjections] to you, stay low. Because you cannot win this battle. You cannot go and justify a 0.0 per cent and we got The Speaker: Essential? 1.4 [per cent]. You cannot justify it. Oh, are you saying that when you get . . . you Hon. Wayne L. Furbert: Essential; essential food. think you will get back in another 50 years, then you will go up some percentage? Well, most of you will not An Hon. Member: Slap yourself. be around here, at least the Honourable Member from constituency 11 [sic].

Bermuda House of Assembly 364 7 December 2018 Official Hansard Report

The Speaker: In 50 years, I don’t think any of us will [Desk thumping] be around here. The Speaker: Does any other Honourable Member Some Hon. Members: [Constituency] 10! wish to speak? I recognise the Honourable Member from Hon. Wayne L. Furbert: Number 10, number 10. He constituency 10. Honourable Member, you have the will not be around here because his Member . . . his floor. Leader wants to get rid of him also. So he may not be around here next election. Hon. Michael H. Dunkley: Thank you, Mr. Speaker. Mr. Speaker, I am proud of the record of this Mr. Speaker, I think everybody in this Hon- Government so far. And, hopefully, when, as the new ourable House would like to ensure that our seniors Minister of Finance sees fit to take some of the rec- have sufficient pensions to allow them to enjoy their ommendations of the tax reform, who talks about even sunset years. I remember when I was younger and going further to reduce some of the cost of food being everyone talked about seniors and the sunset years. brought in. It is not just about giving . . . it is about But it seems now that seniors, as they approach those looking at the whole picture. It is about the whole pic- sunset years, life is much, much tougher for them, for ture. many reasons. One of the first being, I think, is that the cost An Hon. Member: Yes. of health care has risen at alarming rates, double dig- its over the last probably, probably over the last . . . Hon. Wayne L. Furbert: So the honourable Michael the 10 years to start this century. It slowed down a and I . . . I wanted to . . . I wanted to, Mr. Speaker, little bit and it is increasing again, so seniors have a after we gave a reduction on import of eggs in April of challenge. It is unfortunate that we get into debates in this year, I went down to MarketPlace to see what the this Honourable House about pension increases given honourable Michael Dunkley’s eggs were. to our seniors. And I know it is politics, back and forth. And I can imagine that Honourable Members, if we An Hon. Member: Yes. listen to our constituents at the end of this debate, we would probably be embarrassed because those sen- Hon. Wayne L. Furbert: And they were up. I must iors listening to this debate want to know that they are admit, maybe the chickens were not laying too many going to get an increase, and they do not want us eggs those days. Supply and demand. squabbling back and forth.

[Laughter] An Hon. Member: Are you serious?

Hon. Wayne L. Furbert: I must admit they are down Hon. Michael H. Dunkley: And, yes, certainly. The now, they are down now a little bit. Honourable Member says, [Are] you serious? I am as But, Mr. Speaker, I just ask the Opposition, serious as a heart attack. just cool out. Lay low. When you want to speak, the And while the Honourable Member interpo- first three Bills were excellent. I mean, they were ex- lates from his chair, let me digress from what I was cellent. You spoke calm and then the Honourable going to say for one second, Mr. Speaker, because it Member gets up and disturbs this Honourable House. is interesting that the debate in this House always has Mr. Speaker, there are too many Members on this to get personal. side [who] remember. You think a senior forgot that I had not said anything about this debate, and they did not get any increase at all? That is why they the Honourable Member wants to focus in on me. I will did not get voted in! stand proudly here and talk about business, because I employ Bermudians, Mr. Speaker. I never left debts An Hon. Member: Hmm. out there that could not pay. And I always hired Ber- mudians. That speaks more than the clap-trap I heard Hon. Wayne L. Furbert: Did you realise that they did from the Honourable Member on the on the side. And not get voted in because they had no increase? And that is all I will say to that. If he wants to talk about then the Honourable Bob Richards tried to sneak in pricing of consumer goods, I am happy to talk to the one just before the election. No, you cannot trick sen- Honourable Member about that. Because sometimes iors. At least under this Government we have said it is better not to insert your foot in your mouth when [that] we have made a commitment, we will fulfil our you are going on national radio, Mr. Speaker. promise. Now, Mr. Speaker, back to the subject. When Thank you, Mr. Speaker. the OBA became the Government in Christmas of 2012, six years ago, we inherited a budget that was The Speaker: Thank you, Honourable Member. going to close in on a $330 million annual deficit—

Bermuda House of Assembly Official Hansard Report 7 December 2018 365

[Inaudible interjections] it seems now that we are going in the wrong direction. We are going in the wrong direction again today. Hon. Michael H. Dunkley: [It was] $333 million, Mr. And so my colleague is perfectly within her Speaker. We bought it in at the level. right to express her viewpoint on the amount that the And I raise that point for two reasons. One is, pension has been increased, because in reality, it is a tremendous deficit because at that time, I think, 1.4 per cent is a very small increase. It is an increase; the overall budget probably was somewhere in the I will give you that. range of $950 million, maybe a little bit less, little bit more. So, every $3.00 that we spent, $1.00 we had to An Hon. Member: Margin of zero. borrow. And in that time, the Honourable Finance Min- ister, one of the first things he had to do in the new Hon. Michael H. Dunkley: And the Honourable year was go borrow more money to pay for civil serv- Member who claims to have something to do with ac- ants pay cheques. And we are talking about giving countancy, continues to interpolate. I do not believe— people increases. We had to go find money to pay people we had working every day, hard-working civil Hon. Wayne L. Furbert: Point of order, Mr. Speaker. servants. We had to go find money because the for- Point of order, Mr. Speaker. mer Government left it lay. And the other thing I say about that deficit, Mr. The Speaker: Ah, ah, ah! Member . . . Speaker, in the previous six or seven years the PLP budgets had been so far off base that the deficit that POINT OF ORDER we had ended up being much more, putting a further hurt on our economy. So the Junior Minister, no mat- Hon. Wayne L. Furbert: The Honourable Member is ter how long he is a Junior Minister, Mr. Speaker— not an accountant. And I do not claim to be . . . I do not claim—I am! [Inaudible interjections] [Inaudible interjections] Hon. Michael H. Dunkley: —should check his facts before he comes here. Hon. Wayne L. Furbert: But you are not!

[Inaudible interjections] The Speaker: Members, Members. Let me invite you all to have thick skins. If someone is going to talk The Speaker: One Member speaking, please. One about another Member, and it comes back at you, Member. have thick skin. If you do not . . . if your skin is not Continue on. thick enough to take it, do not dish it out. I did not in- terrupt you when you were throwing stones that way, Hon. Michael H. Dunkley: Thank you, Mr. Speaker. if a stone comes back this way, all the same. If I go I pay him little mind when he is sitting down in out in the playground and I pick a fight with the bully, his chair. and the bully beats me up, I cannot go crying to nobody over it. I picked the fight. If I am going to pick the The Speaker: Just speak to the Chair. Just speak to fight, I had better take what is coming. Understand the Chair. me? Continue. Hon. Michael H. Dunkley: I always do, Mr. Speaker, I know you are paying full attention. Hon. Michael H. Dunkley: Amen to that, Mr. Speak- er. The Speaker: Just speak to the Chair. The Speaker: Ah-ah. Just continue on. Hon. Michael H. Dunkley: So, Mr. Speaker, we can Hon. Michael H. Dunkley: Mr. Speaker— debate who has given pensions and who has not given reasonable pensions. The Speaker: Just continue on.

An Hon. Member: Well, we know that! Hon. Michael H. Dunkley: So, Mr. Speaker, the Hon- ourable Minister who gave a comprehensive overview Hon. Michael H. Dunkley: The Finance Minister at on the pension scheme . . . it seems important to note that time was adamant in the programme and the plan that for the next couple of years we are in a reasona- he had to get our economy back in a better position ble position, but because of the advancing age of our and to get Government finances in a better position, population, of people living longer, I think the moun- and he accomplished both of those, Mr. Speaker. And tain is going to get harder to climb over the next 5, 10, 15 and 20 years. And so while it is, perhaps, in some Bermuda House of Assembly 366 7 December 2018 Official Hansard Report minds, prudent that the Minister takes this approach Hon. E. David Burt: And, Mr. Speaker, I would first today, I think in 5 years’ time we are going to be talk- like to commend the Minister of Finance on his brief— ing a different story because people are going to be living much longer and, obviously, claiming pensions [Desk thumping] for a much longer period of time. I remember when I was younger, and to see Hon. E. David Burt: —and for laying out in such plain somebody living into their 70s, it seemed like that was and simple terms the fact that the Government is ful- an advanced age. I was talking to a constituent of filling its promises. mine the other day and both of their parents are still But I find it very interesting, coming from a alive, in their mid-90s, and play tennis every day. And Government and a party that broke their promises so that just goes to show that, with the grace of God and many times, that they almost feel it necessary to criti- with good health, you can live a longer period of time. cise the Progressive Labour Party for keeping ours. So we do have a real challenge because the sustainability of this pension fund and private pen- An Hon. Member: Yes. sions that people are also trying to earn and invest and raise, Mr. Speaker, is going to be what I consider Hon. E. David Burt: The former Premier who just one of the most critical challenges going forward. took his seat said that we will have this debate every People are going to be retiring over the coming years year. You know what, Mr. Speaker? Yes, we will. and they are not going to have adequate resources, And the reason why we will have this debate certainly from this pension fund, because $1,545 at every year, Mr. Speaker, is because we promised the the top line of it does not take you very far. And pri- people of this country that we would deliver pension vate pension funds were only mandated about 20 increases in line with the cost of living. That is what years ago. So we have significant challenges. we promised and that is what we have delivered. And the challenges that we need to find here So when Members on the other side want to in the House is how we can ensure that our seniors get into revisionist history, when they want to com- get a reasonable increase as the years go by to pay plain about the fact that the amount might not be for their goods. Because if they do not, Mr. Speaker, enough, let them be reminded, we are increasing it by what happens is, and I am sure the Minister is well the cost of living. It is now indexed to the cost of living. aware of it, that Financial Assistance pays more. Right That is a promise, and that is something that the sen- now I would imagine that at least 30 per cent of the iors can look forward to under this Government, today, monthly expenditure for Financial Assistance is for our next year, the following years, and all the time into the seniors. And that is a number that needs to be fac- future. Because there is one thing that we know, Mr. tored into the equation that we have currently, be- Speaker, it is that this side of the House will take care cause that number will probably rise over time. of our seniors and that side of the House will make So, Mr. Speaker, 1.4 per cent increase is them wait while telling them that money does not grow something that the seniors can expect in a reasonable on trees. period of time. We need to make sure that we shore Thank you, Mr. Speaker. up our pension funds as much as we can. I will be interested to see how the Government will be doing [Desk thumping] going forward. There has been some comment in the Throne Speech and I look forward to in the next year The Speaker: Thank you, Mr. Premier. when the Government actually brings legislation as Is there any other Member wish to speak? we can move forward to it. No other Member? We will have this debate again next year, I am Minister. sure, Mr. Speaker, and the year after that. But the fact of the matter is we cannot keep up with the cost of [Crosstalk] living for our seniors in the rates that we give under the current pension contributions and we have to try to [Pause] do the best we can. Hon. Michael J. Scott: Mr. Speaker. The Speaker: Thank you, Honourable Member. Does any other Honourable Member wish to The Speaker: Ah . . . speak? Mr. Premier, would you like to contribute to Hon. Michael J. Scott: Mr. Speaker, are we just wait- this debate? ing for a message to be sent to the Governor on this Order? Hon. E. David Burt: I absolutely would, Mr. Speaker. The Speaker: Yes, it does not go to Committee. This The Speaker: Well, continue on. is an Order. Yes. We do not go to Committee. Bermuda House of Assembly Official Hansard Report 7 December 2018 367

Hon. Curtis L. Dickinson: Mr. Speaker, I request that BE IT RESOLVED that this Honourable a message be sent to the Governor. House carefully consider both the contents and implications of the said report. The Speaker: Yes. Any objections to that? The Speaker: Any objections? No objections. An Hon. Member: No. Continue.

The Speaker: No objections. So done. Hon. Curtis L. Dickinson: Mr. Speaker, I did not have a chance to kind of make some closing remarks [Motion carried: The Contributory Pensions (Amend- at the end of the last topic, so I will just take a minute ment of Benefits) Order 2018 was approved.] to kind of make an observation.

The Speaker: [This] now brings us to a close of that The Speaker: I beg your pardon? matter. The next matter on the Order Paper today is, Hon. Curtis L. Dickinson: I will take a minute . . . I actually, a motion by the Minister of Finance. will ask you, can I have a minute to make an observa- Minister, are you going to proceed with your tion? motion at this point? The Speaker: In reference to? Hon. Curtis L. Dickinson: I am, Mr. Speaker. Hon. Curtis L. Dickinson: The last matter that closed The Speaker: Let me just add, I think it was [misin- before I— formation], to clarify that it is a take note motion, rather than a substantive motion. Right? The Speaker: Well, that is finished. We have moved on. Hon. Curtis L. Dickinson: Yes, sir. Hon. Curtis L. Dickinson: All right. Fine. The Speaker: That means that as a take note motion you get to open it, but you do not get to close it. If it The Speaker: We have moved on. You could have was a substantive, you would open and close it. done it before you asked for the Order to be passed on to the Governor, but you can move on now. [Inaudible interjections] Hon. Curtis L. Dickinson: That is quite all right. The Speaker: It is a take note. So, feel free to pro- Thank you. And with your indulgence, Mr. Speaker, I ceed when you are ready. would like to be able to refer to my notes as I make comments— Hon. Curtis L. Dickinson: Thank you, Mr. Speaker. Mr. Speaker— The Speaker: Yes.

An Hon. Member: You can [put] your closing remarks Hon. Curtis L. Dickinson: —on the Tax Commission. in your opening remarks. Mr. Speaker, it was three weeks ago my colleague, the Honourable Junior Minister of Finance, on [Laughter] my behalf, tabled in this House the report of the Tax Commission. By way of background, Mr. Speaker, MOTION and Honourable Members, the 2017 Throne Speech spoke to establishing a Tax Reform Commission and TAKE NOTE OF THE REPORT OF THE a Tax Reform Commission Act 2017, was passed. TAX REFORM COMMISSION 2018 The purpose of the commission was to conduct a thorough review of Bermuda’s tax system and Hon. Curtis L. Dickinson: I move that the House do revenue collection, and to make a series of recom- now take under consideration the following motion, mendations on tax reform to Parliament. More specifi- notice of which was given on the 23rd of November cally, the Tax Reform Commission was given a man- 2018. date by the former Minister of Finance to examine WHEREAS Honourable Members are mindful Bermuda’s tax system, and determine any measures of the contents of the Report of the Tax Reform that may be best taken to best enable a system of Commission 2018; taxation and revenue collection that is equitable, efficient, competitive, and transparent. It would look at ways of increasing public sector revenue. The reve- Bermuda House of Assembly 368 7 December 2018 Official Hansard Report nue yield from 17 per cent of GDP to a minimum of 20 commend on their tremendous efforts and their hard to 22 per cent of GDP, and it would prepare a report work. The names of the commission members: and submit that report to this House. The Chairman, Mr. Ronald Simmons, who is a Mr. Speaker, as Minister of Finance— partner at Moore Stephens, the accounting firm in Bermuda; The Speaker: Minister, let me just interject one thing The Honourable Wayne Furbert, JP, MP, Jun- before you really get started. Being you are new at ior Minister of Finance; this, the opening speaker is yourself and the opening The Honourable Jeanne Atherden, JP, MP, Member who replies from the Opposition gets to Member of the Opposition; speak for an hour. And every other Member gets to Mr. Donald Scott, former Secretary to the speak for half an hour after that. So feel free; you Cabinet, Head of Civil Service, and Financial Secre- have got time. tary; Mr. Mitch Blaser, COO (Chief Operating Of- Hon. Curtis L. Dickinson: Thank you. ficer) of Ironshore Inc., and CEO (Chief Executive Of- ficer) of Ironshore Bermuda; The Speaker: You have an hour. Economist, Mr. Craig Swan [sic]; and Lawyer at MJM Limited, Mr. Brian Holdipp. Hon. Curtis L. Dickinson: In the spirit of sharing, I will not take an hour. The Speaker: Craig Simmons or Craig Swan?

[Laughter] Hon. Curtis L. Dickinson: Craig Simmons.

The Speaker: Okay. Just letting you be aware of it. The Speaker: Craig Simmons, yes. Somerset boy, we want to clarify that name; get it straight. Hon. Curtis L. Dickinson: Thank you. [Laughter] An Hon. Member: No, you do not want to share your time with anybody else. Hon. Curtis L. Dickinson: From Ely’s Harbour, I think that is. Right? Hon. Curtis L. Dickinson: Well, I know that there are some in here who like to talk for the sake of talking. I The Speaker: Very true. Yes. am not one of those people. Hon. Curtis L. Dickinson: Mr. Speaker, over the last An Hon. Member: Amen! three weeks there has been considerable discussion about the content of the Commission’s report and The Speaker: Okay. speculation on what this Government will do with respect to the implementation of the recommendations. [Desk thumping] Rather than go through each of the report’s recommendations and take up an entire hour, I would The Speaker: And I hope others will follow suit from like to encourage people to read the report in its en- you and we will have short speeches from everyone. tirety in order to inform themselves of its contents. I also have had the opportunity to engage with Hon. Curtis L. Dickinson: Well, one can hope, Mr. a number of the Island’s stakeholders who have Speaker. shared with me their observations and concerns, and I would like to thank those individuals for their feedback The Speaker: One can hope, yes. Continue on. and [I] promise to consider their views in my delibera- [Inaudible interjections] tions. Mr. Speaker, let me state very clearly for the Hon. Curtis L. Dickinson: I did not mention any benefit of this Honourable House and the members of names. the Bermuda general public and business community. I continue to review the recommendations contained [Inaudible interjections] in the report and have made no decisions yet on which recommendations will be advanced to imple- The Speaker: Thank you for clarifying that, Minister. mentation. However, I have begun to develop a We appreciate that. framework through which the team at the Ministry of Finance will evaluate each recommendation. Before I Hon. Curtis L. Dickinson: Mr. Speaker, as Minister discuss that approach, let me remind Members of the of Finance I would like to convey my personal thanks challenges that we are working through: to the seven-member bipartisan commission team and Bermuda House of Assembly Official Hansard Report 7 December 2018 369

1. We have a net debt of approximately $2.45 Mr. Speaker, I want to state clearly that I be- billion, which costs the Government approxi- lieve the best way to resolve our fiscal challenges is to mately $188 million a year to service. grow our economy through the creation of more well- 2. We have an unfunded pension liability in ex- paying jobs. A growing economy leads to a broader cess of $1.4 billion. tax base with more participants and, through the law 3. We still have a budget deficit. of averages, an ability to spread the tax burden across 4. We have an ageing population. a broader number of people. While remaining mindful 5. We have an increasing health care cost bur- of the important and significant contributions that big den. business makes to our economy, we need to continue 6. We have an economy that, while moving for- to work on policies that help entrepreneurs, small- and ward, is doing so slowly. medium-sized businesses to thrive as they participate As we work through these challenges, we are in our . . . it is a critical ingredient in building employ- also engaged in a fight to remove and reduce the im- ment and growing our economy and our wealth. pact of external threats to Bermuda and our existence. However, growing the economy will take While the totality of these challenges may seem some time. In the meantime, we need to examine daunting, we remain focused on tackling them in a more immediate ways of increasing revenue while at judicious manner. the same time reducing the rate of growth of expens- As the Ministry of Finance team works to de- es. There are many variables to consider. But this velop the Government’s budget for 2019/20, we will complex equation can be solved with a thoughtful ap- be guided in our consideration of the Commission’s proach, collaboration, and consultation. I am confident report by the following: that we can develop a way forward that reflects the • We are striving for a balance approach. One concerns of all stakeholders. that looks at finding sources of incremental With that, Mr. Speaker, I yield the floor to my revenue while at the same time seeking to honourable colleagues who may want to weigh in on find opportunities to make Government more the report of the Tax Reform Commission. efficient. • We are seeking to understand the impacts of The Speaker: Thank you, Minister. You did say you any change that we propose to make in taxes were going to be brief and set a tone for others to fol- on the broader economy. We accept and un- low, so I will remind others that it is a brief discussion derstand the axiom that taxpayers do not want by all, hopefully. to pay a penny more of taxes than they have to. We will employ a consultative approach. [Inaudible interjections] We will focus on better collection and enforcement of taxes that are already on the The Speaker: I recognised the Honourable Member books. from constituency 23. Honourable Member, you have • The solutions require a lot of fiscal discipline the floor. by our Government where we properly prioritise our needs over our wants. And we will Hon. Patricia J. Gordon-Pamplin: Thank you, Mr. need to find ways of decreasing the adminis- Speaker. trative burden associated with tax payment Mr. Speaker, the presentation that the Minis- and tax collection for both taxpayer and the ter gave was brief, at best, given that this was an ex- Government. ercise that was initiated by his Government. I would Mr. Speaker, for a brief moment I would like to have hoped that the exploration of the individual areas focus on one particular area that has generated a fair that had been recommended would have had a little amount of attention by many people who have spoken bit more detail appended to it. to me over the past few weeks about this report. The Minister indicated that he does not . . . or There is widespread support for the notion that we they have not made any recommendations to pare need to do a better job of: down, or have not made any choices to pare down the 1. collecting the taxes that we currently have on recommendations that have come from the Commis- the books; and sion. Let me also say that that Commission had es- 2. collecting outstanding taxes that are due to teemed members of our community, one of whom is government. our very own Fellow Chartered Accountant, as she So enforcement and collection will continue to sits behind me, and has put her astute eye to the job be priorities of the Office of the Tax Commissioner. at hand. The other is the Honourable Member (this is We are looking at ways of supporting the Office of the from this Honourable House) from constituency 6. Tax Commissioner, which has a critically important Along with some extremely esteemed members in the mission; however, today is under-resourced from a financial world, in the economic world, and in the ac- people and systems perspective. counting world.

Bermuda House of Assembly 370 7 December 2018 Official Hansard Report

So, it was important to get a feel for what their The Speaker: Members, Members. One person recommendations were and that we have the oppor- speaking. tunity to explore how those recommendations may or may not fit into what would be good for us as a coun- Hon. Patricia J. Gordon-Pamplin: —as we look at try going forward. the recommendations that have been made, it is im- Now, the first thing that I wanted to say, Mr. portant for us to start to drill down on some of the Speaker, is the mandate that was given to the Tax things that have come to us as support for the pro- Reform Commission was that they look at whatever posals of new taxes. Now, in those proposals we have methodologies they determine to be appropriate to be a tax on rental income—commercial and residential. able to yield additional revenues, additional monies, We have a recommendation for a General Services into the coffers so that we can survive, and survive Tax. We have a recommendation for a managed ser- well economically. vices tax. We have a recommendation for interest and The one issue that came to mind immediately dividends tax and, to a certain extent, some reforms is that governments are not in the business of being a towards our payroll tax and our visitor tax structure. for-profit organisation. So what we would expect to Now, Mr. Speaker, there are certain things see with the choices that are made is that Govern- that as we evaluate them, and certainly as I—I would ment will make the necessary selection from the rec- not even say we, as I—evaluate them, I start to look at ommendations that would balance our budget. We are how best do we achieve the optimum result for the not looking for a whole of extra money. We are not rightsizing of our taxation. And it must be predicated looking for money that, on the backs of the taxpayers, upon how we manage our spending. There are indi- will go to grow a burgeoning government. That is not viduals who, when they receive money, if they are the intent. 100 per cent ranked with their neighbour, we will find The intent is to make sure that the funds that that the choices that they make and their prioritisation come in are matched . . . or the funds that go out, are of how they spend what is available to them will be matched by the funds that come in. But in that match- significantly different person to person. ing process, I think it is necessary to understand that So, what are we looking at? We, first of all, you do not want to have an assault on the taxpayer by have to recognise that our community, our economy, requiring more of them, more funds from them, in or- our country, our jurisdiction, is under severe attack der to fund a government that we have yet decided from external forces. So we are being required . . . as how we should come to grips with rightsizing. we may have alluded to earlier, my honourable col- And I say rightsizing because until we come, league mentioned that we should be sending a Bill to, until we understand our responsibility to reduce our you know, certain powers that be to whom we are an- costs, then any additional tax that we raise from any swerable and who expect us to provide certain condi- one of the methods that have been appointed here- tions in order to satisfy their oversight because they with, is simply going to be a way to put more money cannot be as successful as we are as a jurisdiction, into the kitty. that we have taken time to build and that we have Now, you know the expression, the Peter tremendous pride in to ensure that what we have is Principle, which effectively says that work expands to appropriate. suit the time that is allocated thereto? The same thing So, we want to realise, though, that we are applies when it comes to money. If you have an extra going to be deemed to be . . . well, we have striven $147 million in the kitty, you are going to spend it. So, hard to ensure that the label of being a tax haven we have to be judicious in how we approach the fund- does not stick. We have done a tremendous job, all ing of our government through the taxation structure administrations from day one, from way back in the because increasing taxes does not grow the economy 1960s all the way up to 2018. We have had the type and it does not create jobs. of regulatory environment that ensures that our regu- I think one of the things that we want to make latory ratings remain pristine. Because in the absence sure that we do in whatever our choices are is that the of this, we find ourselves unable to borrow at prefer- job element is able to be supported in the private sec- ential rates and, therefore, the cost of borrowing goes tor where we are able to create an environment which up and as you end up with deficits in your budget assists job growth. So, until we bring our spending which you may have to fund in order to reduce them, under control then whatever additional revenues are to have the cash flow, then you want to make sure coming in are basically just going to stress and strain that the money that comes in is appropriate for what the taxpayer without controlling what it is that it is go- you spend. But to keep that on an even keel, we have ing to be utilised towards. to make a commitment that we are not going to grow exponentially for the costs that we have, so then we [Crosstalk] are required to bring more money in. Now, if the Minister is saying or thinking that Hon. Patricia J. Gordon-Pamplin: We have a re- because we have large debt that he wants to, perhaps sponsibility— maybe on an even one-off basis, have sufficient addi- Bermuda House of Assembly Official Hansard Report 7 December 2018 371

tional money to go towards paying down that debt, properties) seems like double taxation—seems like that is one thing. But the important thing is that the double taxation. Now, what . . . if the Government balance between revenue and expenditure is what finds it appropriate to alter the rates and bands of ex- Government is expected to [achieve] because we are isting taxes on land, according to the ARV (which is not there to make a profit off of the backs of our peo- annual rental value) the Government chooses to alter ple. What we have to look for is where the stimulus is, the bands to be able to generate more income. Then because that is— that perhaps is a recommendation that they might want to look at. But, to bring another tax on top of a [Inaudible interjections] tax that you already have does not seem to be fair. Now, even though the recommendations— Hon. Patricia J. Gordon-Pamplin: That is what we have. Hon. Curtis L. Dickinson: Point of order, Mr. Speak- And Honourable Member from [constituen- er. cy] 32 will forgive me for not being in the position to genuflect every time he says something needs to be Hon. Patricia J. Gordon-Pamplin: —allow for— so, because it is important that we evaluate where we are in an appropriate manner so that we do not find The Speaker: We will take the point of order. ourselves continuing to go down the path that was forged between 1998 and 2012, so that we find our- POINT OF ORDER selves way, way, way behind the eight ball. You will look at the graphs of the increase in Hon. Curtis L. Dickinson: The point of order is that the debt during that period of time and see how it bal- the recommendations were made by the Tax Reform looned out of proportion. You will see that. You will Commission. Government has not decided to do any- also see that when we got to 2012 and into 2016 . . . I thing, other than to review the recommendation to am sorry, 2017, that we had the necessity . . . first off, make an assessment. I think my honourable colleague alluded to it a little earlier, that within three weeks of taking over the [Inaudible interjections] Government, we had to borrow money to meet the payroll. Such was the tenuous position that we found The Speaker: Thank you. ourselves in. Continue on, Member. As a result of that, we could not afford to continue to go down that same path, so we had to put in Hon. Patricia J. Gordon-Pamplin: I said if the Gov- different measures than might have been accus- ernment chooses to adopt the recommendation that tomed, than we might have been accustomed to as a was made by the Commission that they embodied, country. that would be an option. I did not say that Government But, let us start to look at some of the new had decided on all of these. Truth be told, I would like proposed taxes that have come, that have been rec- to see very few of these actually being implemented in ommended. the short term. However, with that said—

[Inaudible interjections] [Inaudible interjections]

Hon. Patricia J. Gordon-Pamplin: So, there is going The Speaker: Speak to us. Members, she is speaking to be— to the Chair. Members, Members.

The Speaker: Members, Members. Hon. Patricia J. Gordon-Pamplin: With that said, Mr. Speaker, I would certainly like to see— Hon. Patricia J. Gordon-Pamplin: —a tax on rental income. The Speaker: Members.

The Speaker: You all will have the opportunity. Hon. Patricia J. Gordon-Pamplin: I would certainly like to see how these recommendations actually filter Hon. Patricia J. Gordon-Pamplin: They will all have their way through to the next budget. I would be very the opportunity to speak, Mr. Speaker. curious to see that. There is tax, as a proposal, on rental income—commercial and residential. Now, Mr. Speak- [Inaudible interjections] er, we have, if one would look, a land tax which is based on the annual rental value of a property. So, if Hon. Patricia J. Gordon-Pamplin: So, what I want to there is already a tax on the ARV, to then put an addi- say was that with the ARV, as I said, it is based on tional tax on residential properties (or commercial rental value. So, to impose another tax on top of a tax Bermuda House of Assembly 372 7 December 2018 Official Hansard Report and call it a rental tax when we already have a rental You might know very recently, Mr. Speaker, tax, an ARV tax, I am not sure that this is fair or ap- that we had the merger of Tokio Millennium, which propriate. was subsumed in the corporate structure of RenRe. There are recommendations from the report in So, the people who used to be employed by the indi- which there would be a base over which this addition- vidual entities may find the necessity to . . . there will al money would not be charged. And that can all be be some redundancies, and there may not necessarily tweaked in one application to make sure that we are be all of the ability to get new jobs in the similar indus- not double taxing individuals. try that would help to replace the income that is being We also looked at what they spoke to, which lost, or the revenue that is being lost, by the mergers was the hotel occupancy tax coming down to and the acquisitions. So, we have to make sure that 5 per cent from 7.5 per cent as recommended by we consider all of those aspects as we look at the CARTAC in 2015. The only thing that I would want to recommendations that were made by the tax Reform highlight here is that with some of the vacation rentals, Commission. such as the Airbnb properties, we have just imposed a Now, I want to also thank, as the Minister did, 4.5 per cent tax on that. So, one of two things would the work that was done by the Tax Reform Commis- have to equalise. Either that 5 per cent will come sion. Effectively that we recognise that they were down to 4.5 [per cent], or the 4.5 [per cent] will go up tasked with a difficult proposition because . . . it being to 5 [per cent]. But I think it is important that we do not one-sided—let us get some revenue, but do not mess have inequitable bands of taxation if the idea is to with our expenditure. harmonise what it is that they are attempting to So, we want to look at some of the other rec- achieve. But of this additional tax that they are recommendations . . . or, I wish to look at some of the ommending, there is $41 million that they have indi- other recommendations. The General Services Tax— cated may come in as a result of implementing this now, that was something that I think was recommend- particular tax and tax on rentals. ed before. It was part of the CARTAC review and from Now, I just wanted to point out a couple of that GST, it was going to be a 5 per cent tax levied on things, if I may, Mr. Speaker. services and applicable to certain classes of business (over $250,000 annual turnover—and that is on a two- The Speaker: Yes, you may. year rolling basis). And the idea of that was that there would be an extra $27.5 million infused into the econ- Hon. Patricia J. Gordon-Pamplin: And that is to go omy on the GST. back somehow to first principles and we have to con- So, the question is, as that tax could be consider, as I started to say at the outset, what are taxes sidered as an option, how is that going to impact the for and if they are required to fund government opera- cost of doing business in Bermuda and will that exac- tions and programmes. Let us look at that. erbate what we have seen in the M&As (mergers and Let us look at that. And let us not say that we acquisitions) and the impact on our workforce . . . are going to come up from a governmental perspec- which has a snowballing, knock-on effect because tive with so much revenue that we have drained from what will happen is that when you do not have the our people because we have not gotten the mix cor- employees out there working. Then you do not get the rect. There is only so much blood, if any, that you can payroll tax. When you do not get the payroll tax, you get from a stone. And I think it is important that we do cannot pay the bills. When you cannot pay the bills, not provide the opportunity which says we have got you do not have enough money. You either have to more, therefore we spend more. get more money or you got to borrow some. And you I am concerned about the negative impact on have to be able to keep your current account current. GDP growth. We have seen now that our economy is And this is one of the challenges that we have. effectively on a downward spiral. It is mainly caused So whatever considerations that we put in by activities in the IB sector. It is caused by activities place . . . and this was deemed to be a medium-term in the IB sector. And what happens, the IB sector is a proposition. Whatever we put in place, we have to significant, reliable investor in our public purse—and I consider the final impact. And I do not know whether say “investor” using it loosely. They are the part of our you remember, Mr. Speaker, way back in the 1970s, I economy where we can guarantee their payroll tax is want to believe. We had what was then called the going to be paid on time. Their business taxes, albeit “hospital levy.” It started off being something, to all they go to the BMA, are paid on time. That is the intents and purposes, miniscule in its application with model by which they operate. But most of our payroll the idea of paying for the construction of the new hos- tax coming from our international business is done pital that went up on Point Finger Road, which effec- online, it is done on time and it is as good as guaran- tively replaced the old structure that existed there from teed as far as the public purse is concerned. So, we time immemorial. Well, that hospital levy, once it was do not want to do things that are assisting job destruc- established, somehow two or three years later the tion. then Government decided that this was a reasonably

Bermuda House of Assembly Official Hansard Report 7 December 2018 373

sure source of income so, therefore, we are going to their primary revenue to the point that, I cannot con- utilise this as part of our regular revenue stream. tinue to be a member of the club. I cannot pay my So, what has happened subsequent to that fees. I cannot pay my club dues for next year because with the recommendations that we see here, is that if I do not have that revenue coming in. So, when we the Government’s intention is to utilise additional rev- start looking at interest and dividend withholding tax, enue so that there is extra money to pay something some people do not have the benefits of having divi- off . . . and none of us wants to [say] that $188 million dend, and we recognise that. And we recognise that it which we are expending now on debt servicing, that is important for people who do not have dividends this is appropriate. You know, that is bigger than most from which tax can be withheld to have a safety net of the ministries that we assign money to in our annu- within our community. But that is where we bring in al budgets. But once you get that taxation, it does not some of our other social services, Financial Assis- go away. So, I am less inclined to be enamoured with tance (when it is necessary) and whatever other sup- something to say, Let us get as much as we can now porting bases that we need to employ to ensure that and put it in the kitty because we have got some debt they are not left out of the loop. But when we start to out there that has to be repaid and let us get as much drain, in some instances, the only means that some as we can. Because once it is implemented, it is not people have, it is difficult. It is difficult for them. going to go away. Now, Mr. Speaker, let us look at payroll tax. I So, we have looked at interest and dividend spoke briefly earlier in terms of what M&As do to pay- withholding tax. Now, that is interesting. I think, Mr. roll tax base, and what that effectively will end up do- Speaker, nobody wants to pay more tax. Nobody is ing is minimising what we have come to historically clamouring and chomping at the bit to say, Charge me rely on as being a given. So, if our payroll tax does not more. I put my hand up. I will pay you more. I will pay sustain the levels that it has done historically in terms you more. I will pay you more. Nobody wants that. But of the balance that it provides, then we can find our- what we do want is an efficient and effective utilisation selves just slipping, slipping, slipping, slipping again— of the funds that come into the government coffers. slipping back. So, it was one of the recommendations So, it is important that when we look at inter- that perhaps we look at increasing a different payroll est and dividend withholding tax there are some chal- tax band and maybe even upping the upper band, but lenges. There are people for whom their only income in terms of their total taxable remuneration. are their dividends. So, we do not want to squeeze And I think it was being recommended that it more from that pot to increase the revenue base and go up to $1 million. I think historically, or presently, it think that in the process we might have accomplished is $900,000, if not $950,000, annually. My concern . . . we might have won the battle, but we will lose the there is simply that when we have major executives war. And the significant numbers of people who have who are the ones who are really the million-dollar-plus investments and dividends that are coming in, a lot of earners who work for corporations that are multifacet- them are our seniors. ed and multinational, that Bermuda is not the be all, I remember when the Bank of Butterfield end all for them. So, therefore, lots of them . . . if we started running into challenges under the former PLP start to say we are going to tax that additional, you administration. And I can remember the then Finance know, we are going to take it up to $1 million or what- Minister, the Honourable Minister Cox, bringing legis- ever your salary is, and we are going to tax you on all lation to this House to bolster the balance sheet, as it of that, they will end of with one of two choices. And I were, of the Bank of Butterfield so that it did not go know what the choice actually will end up being, be- under. But, as a result of that exercise, or the result of cause we do not have a double taxation relief treaty the challenges that led to the requirement for that ex- that will prevent somebody who is in those upper ercise, there was a necessity for the bank to decide bands of income— that they were no longer going to declare dividends for a fixed period of time and a number of people were Hon. Curtis L. Dickinson: Mr. Speaker, point of or- hurt as a result of that—the seniors. der. You will know, Mr. Speaker, I play tennis. I go to my tennis club and sometimes— The Speaker: We will take your point of order. Mem- ber, if you will yield. [Inaudible interjections] POINT OF ORDER Hon. Patricia J. Gordon-Pamplin: —I talk to some [Misleading] people who actually would be— Hon. Curtis L. Dickinson: The Member may be inad- [Laughter] vertently misleading the House. The tax on payroll, as per the report, it is actually recommended that it be Hon. Patricia J. Gordon-Pamplin: I would talk to cut, and the $1 million threshold is actually a tax cut people at the club and they would lament the loss of on payrolls that exceed $1 million. It will be tax relief Bermuda House of Assembly 374 7 December 2018 Official Hansard Report for those companies that actually had payrolls ex- from falling off the cliff and going into the economic ceeding $1 million. abyss. So, I do not want to see us make the mistake The Speaker: Thank you, Minister. of using a flawed logic to raise tax to an extent that is Member. greater than that which we need. I cannot stress enough the equalisation necessity. Hon. Patricia J. Gordon-Pamplin: Yes, I will accept They obviously need to be able to suggest . . . that point of order, the interjection by the Minister. I and it would have been nicer if they had come to say, am appreciative of it. But I think it is also important to This is what our committee has recommended. These recognise the point that I really wanted to make is that are what we think might be appropriate avenues to whatever we do with payroll tax, we have to make consider. As opposed to leaving a wide open and sure that we do not dissuade, that we do not have a open-ended report that says, Go pick out of what disincentive for people who are at the upper bands of whatever you will. And, you know, as long as we can taxation to find that they are ending up paying twice— get to Budget day and at Budget day we can say we both in our jurisdiction and then secondarily in the ju- had a debate on this in the House of Assembly that risdiction of their domicile because when that hap- somehow gives us the ability to impose taxes that we pens, there is no . . . there is no “warm and fuzzy” might look at when we come to a March Budget time feeling to stay in our jurisdiction. It is like, if I am going that we might be concerned about the impact. to pay more, why am I going to move?—I am sorry— Now, foreign currency purchase tax. While it Why am I going to stay here? I can move to a different does not yield an awful lot, I am not sure the extent to jurisdiction where there is a comparable benefit or which increasing it to 1.75 per cent from 1 per cent is better benefit for me. And whether our payroll tax going to deter people . . . so, that will contribute some- goes up or down, they are still caught in that nexus of thing to the kitty and that is something that is, to all where we are in terms of the charges of payroll tax. intents and purposes, voluntary; it is choice. People Customs duty and excise tax. It is important, can decide, I work in Bermuda and, yes, I will send obviously, that we reduce the cost of staple food items money to wherever I send it. But if we are not mindful and of children’s clothing because that is one thing of how it is that we impose these taxes, we might find that assists our families, our average everyday fami- ourselves in a situation of encouraging people, irre- lies, to ensure that they can live and sustain them- spective for the foreign currency purchase tax, to send selves. So, I looked at the target that the Minister as much as possible wherever they send it, and not wanted to implement, excuse me, that the Commis- leave the expendable income to generate itself sion had a mandate to try to strive towards and that throughout our own economy. Because that obviously target of 20 per cent of GDP is quite an arbitrary num- is the ultimate. ber because that number actually will generate The ultimate is that we want to make sure that somewhere on the order of maybe $50 million more people who work here take as much of their money than we need on an annual going-forward basis to and put it into our economy. That is what we want. equalise revenue and expenditure. So, we need to be And we want to make sure that whatever the Gov- mindful of that. ernment chooses to adopt, once all is said and done, The question that had to beg was, are we go- with their consideration of the recommendations that ing to ringfence where the international business have come from the Tax Reform Commission, that we comes down, vis-à-vis, what happens with the local do not find ourselves continuing down the slippery businesses? And we have to be mindful that we do slope. We do not want to kill the energy that we are not have preferential treatments so that we are looked trying to generate in our community. on as being something other than an equitable tax Now, the Minister indicated that some of the jurisdiction. criticisms that he has had is that we seem to have a So, notwithstanding the negative affect on the challenge collecting the money that is already due to economy, and without examining and taking a hold of Government. And the one thing that we know histori- and arresting big expenditure, it was going to be very cally from time immemorial, people do not prioritise difficult for the Tax Reform Commission to fulfil their government debt. You know, government fees. It is mandate of trying to come up with a 20 per cent of like when you have to do up your budget. The aver- GDP. age person will say, you know, I owe land tax, I owe The . . . in case it was . . . which I know I will rent, I owe electricity, I owe telephone, I owe grocer- hear. I heard it earlier in the last debate that we had, ies. They are going to pay groceries. They are going not meaning to reflect, but we are always going to get to pay rent. They are going to pay, you know, all the this, The OBA did this. You know, We did it this way. things that they . . . they are not going to pay the gov- You guys did that. Yes. And we did raise taxes at a ernment fee. They have to pay payroll tax because it time when nobody wanted an increase in taxes. But is deducted at the source. as I had mentioned earlier, it was essential to keep us So, to the extent that people work for somebody, they will not pay . . . I mean, they have no Bermuda House of Assembly Official Hansard Report 7 December 2018 375

choice but to pay the payroll tax. But for people who of a fund for your pensions has now been salted are self-employed, the challenge that we have there away. is, are they going to stand up and make their fair So, that is one of the challenges that we have share contribution to the economy when there is no when we start to think in terms of whether we are go- penalty. There is no penalty. Okay. So, on a payroll ing to further tax dividends and interest income at a tax if you are late, there is some charge that is levied, point when it is already being subjected to a volatile if you are late. environment in the stock markets that determine I can recall, I would want to say from the whether they in fact will get dividends or not. 1970s, if not the mid-1980s, I can remember every We just want to make sure that whatever con- single audit report that came through this House siderations we are coming up with . . . this debate in showed a particular establishment in Pembroke North my estimation, is not a critical . . . it is not to criticise that owed thousands [in] taxes. Not just . . . I mean, the Government. The Government has chosen to basically they had not paid payroll tax. They had not have a Commission. The Commission has come up paid pensions for their employees. They had not paid with recommendations, and I see it as our responsibil- social insurance for their employees. And that ends up ity to say whether we agree with the recommenda- having a negative impact on those employees when it tions, we do not agree with the recommendations, or comes time for retirement. what would we do differently. Because I think that So, the attitude that we have had historically notwithstanding that this debate is intended to debate of giving people a slide, let us give them a pass be- just the report, it would be remiss of us if we failed to cause they have not paid the government fees, there give other recommendations of things that we think is no real punitive incentive to be able to say we are that might be appropriate that could conceivably be going to start collecting this. Once in a while you might considered. get the Attorney General’s chambers or the Depart- So, Mr. Speaker, I am going to allow other ment of Public Prosecutions going out and saying we Members to contribute to the debate. I know that what are going to do a concerted collection effort for the we already pay for in the taxes that we pay out we are money that is already owed to us that is on the books. not getting that which we pay for. I refer specifically to And guaranteed, if we had some of that money, Mr. things like no trash collection, poor roads, poor light- Speaker, if we had a lot of that money, we would be in ing in certain areas. So, if we do not get what we are less dire straits in certain circumstances than we find presently paying for, how can we optimise what we ourselves in now. are providing from what we presently have, and how So, it is important that we prioritise the collec- can we cull any wastage that exists before we start tion of what we presently have as receivables before trying to squeeze blood out of a stone from our popu- we start thinking that we got to go raise some more lation, some of whom are already cash strapped and money. So, I obviously am concerned. I do not want to hard done by? see that . . . historically we have had a taxation of our So, if we can start looking at some penalties active income (our payroll and the like). But when we for delinquencies from a governmental perspective, it start moving towards our passive income, some of is a real bad idea if you want to be political because which is the difference between someone being able nobody is going to remember come election time that, to pay for a mortgage or not, or someone being able you know, Oh, we really needed to collect what we to have their rents paid if they are relying on some had. We passed a couple of weeks ago the Debt Col- dividends that they have, if they chose to invest and lection Act, but government is not subjected to that. not purchase a house, but they decided that, I am go- So we do not have that ability to sort of send some- ing to invest my money in the stock market. I am go- body out on an external basis to say go collect my ing to get my dividends and interest income. And now debts. But we do have a mechanism within the gov- that money could go to keep a roof over their head or ernment in the DPP that they can actually go out and go to salt away some for a rainy day, because, clearly, start to collect debts. the pensions that we saw are not going to cut it if we So, these are things that I just want to consid- have only a government pension and if people do not er. We need to make sure that we do have something have occupational pensions to fall back on as well. set aside for a rainy day because right now our rainy- And the construct of the occupational pen- day fund is non-existent. So, as we look at the rec- sions is such that unless you are extremely, you ommendations of tax reform, it is important that we know, low risk—extremely low risk—you put your make representation on behalf of our population, that money in an account, in a pension account, and that we do not support something which looks like it may money is sitting there for the pension operators to do put them in worse and more dire straits than they with whatever they will, given your risk tolerance. And probably [are in] at the moment. then you find out that the market crashes because Mr. Speaker, I think that the contribution to somebody decided they are going to start a trade war this debate in the absence of a method or a guidance with China and then the market goes, you know, hits or an intention by the Government based on the rec- rock bottom. And what you thought you had in terms ommendations that they got is perhaps a little unfortu- Bermuda House of Assembly 376 7 December 2018 Official Hansard Report nate, because we could then explore better and tax on the employee. What we did when we came in deeper what might be appropriate or where we might and said we would not increase payroll tax on the em- have variances and how we can look at alternatives. ployer and . . . as a matter of fact, Mr. Speaker, we But with that said, Mr. Speaker, I will allow decreased payroll tax on the employee. So, we went others to contribute to the debate and I appreciate the from 5.25 per cent for the first $48,000 down to opportunity to make my contribution. 4.0 per cent between 0.0 [per cent] and 48 per cent Thank you, Mr. Speaker. [sic]. So, Mr. Speaker, tax on labour has been a The Speaker: Thank you, Honourable Member. problem. From 1995, when payroll tax came in by a Does any other Honourable Member wish to former Minister, that is the only thing they looked at. contribute to this debate? But there are thousands of people out in this country, We recognise the Honourable Member from Mr. Speaker, who are making millions of dollars and [constituency 6] Furbert, Junior Minister? Yes, Junior not paying a cent on it. But Mr. and Mrs. Smith who Minister, you have the floor. made $1,000 were paying a larger portion of their salary on the cost of goods and service in Bermuda be- Hon. Wayne L. Furbert: Thank you, Mr. Speaker. cause payroll tax was on everything that she or he Mr. Speaker, allow me at least five to seven had. So, that is the premise that the Tax Reform minutes to wear my political hat, and then thereafter I Committee started. will speak on behalf, as part of the . . . on the Com- How do we make it more fair and equitable? mission, as part of the . . . on the committee. Now, let me say, Mr. Speaker, there were very few But, Mr. Speaker, I heard the Honourable people who put their hand up when we had the 400- Member say that the report . . . we should either some people appear before the Committee and said, I agree, disagree, or what would we do different. What I want to pay more taxes—500 individuals. And, Mr. have not heard from them is what would they suggest Speaker, those members, the people that we saw we do different. started from parliamentarians, we met them. And, as a matter of fact, Mr. Speaker, I do not recall too many [Inaudible interjections] suggestions. We had ABIC [Association of Bermuda International Companies], ABIR [Association of Ber- Hon. Wayne L. Furbert: I have not heard from them. muda Insurers and Reinsurers], Chamber of Com- So, the Progressive Labour Party believes in consulta- merce, retail, construction. We had Age Concern, tion. In such a degree, Mr. Speaker, as you will recall Bermuda Tourism Authority, Bermuda Hotel Associa- last year for the pre-budget report, we went out for tion, [Bermuda] Trade Union Congress [BTUC], Ber- consultation. And, so there is no difference, and I be- muda Bar [Association], People’s Campaign, PLP lieve that the Minister of Finance will once again, after Members, OBA Members—and the list goes on. looking at the report, putting down suggestions on options that he may consider and go back into the An Hon. Member: It was bipartisan. field to look at what consultation the Government should do. That is the basic way it should happen. [Hon. Derrick V. Burgess, Sr., Deputy Speaker, in the But, Mr. Speaker, why did the Government Chair] decide to set up a committee, which was put in their platform, to look at taxes? Because of the inequality of Hon. Wayne L. Furbert: This is bipartisan. Matter of our tax system. I think first we have to accept, on both fact, the Honourable Member Jeanne Atherden and I sides, that the tax system that we currently have is not were on the committee. So, we were trying to work to equitable or fair. If we can accept that, then we can find something that we felt, the Progressive Labour move on, on how do we make it equitable or fair. If Party . . . the Premier, said, Let’s find a way that we you do not want to accept that first, then we are at a take this country together. So, now we have before standstill or standoff. If you recall, Mr. Speaker— us, Mr. Speaker, a roadmap. Two roadmaps, Mr. Deputy Speaker, a roadmap for a SAGE report which [Timer beeps] the Honourable Members, opposite, the former Gov- ernment, put in place—[but] which never implemented Hon. Wayne L. Furbert: Are my five minutes up for a thing to cut expenditure. And we have a roadmap political speech? also, Mr. Deputy Speaker, off revenue. Mr. Deputy Speaker, we cannot continue on The Speaker: Not yet. the path that we are going because I did not hear from the Honourable Member who just took her seat of how Hon. Wayne L. Furbert: —but that the Government, to . . . what revenue she would accept. And she did the former Government, was going to increase payroll not say which expenditure she would cut. She re- tax this budget from 10.25 per cent to 11.25 per cent, members the walks around this Parliament over time payroll tax on the employer and also additional payroll when they took the furloughs days. They also remem- Bermuda House of Assembly Official Hansard Report 7 December 2018 377

ber, Mr. Deputy Speaker, the other certain expendi- hensive look on what direction we will go regarding ture that the Government tried to make. taxes. So, how do we find a balance between cutting So, Mr. Deputy Speaker, enough is enough. expenditure, making things more efficient, and raising We continually do reports, have recommendations revenue? There is no doubt, Mr. Deputy Speaker, from very intelligent individuals, and we do nothing $118 million of interest that the Government pays a about it. Our reports go on our shelves and just sit year is too much. So we have got to find a way to get there for . . . and we are all at fault. But we are in a into a surplus, and both of us are in a profession to- position right now of asking ourselves where we want gether, so we understand that we need to be in a to go. Do we want to make taxes more equitable and positive mode if we are going to move forward. fair? Or do we not? If you answer that question, then Mr. Deputy Speaker, there is no doubt that you have to go after tax revenue that you have never our debt increased up [by] 2013 to $1.4 billion. Mr. gone after before. Deputy Speaker, the Progressive Labour Party was You cannot say you are going to make it fairer responsible for increasing on average of $98 million by increasing payroll tax, and say that this is fairer and per year. But, Mr. Deputy Speaker, we are all guilty, equitable because you are going after the same peo- because if I point my finger at some over there, there ple—Mr. Smith who made $1,000 paying 8 per cent are four fingers pointing back at [me]. Under the Op- this year, and so let me make, maybe we can make it position, under the former Government, the OBA, they more fairer and equitable by increasing it to increased the debt, the net debt of $2.4 billion, an av- 9 per cent. That is not fair and equitable. When indi- erage of $230 million per year. So there is enough to viduals are making millions of dollars on other trans- go around for all of us. Hence why I believe what the actions and not paying taxes on some of them at all. Premier said, Let’s find a way to move this forward It was not by chance that we said that we together. Let us find a way. would increase it by looking at tax revenue based on We have not increased debt for this year. The GDP by 20 per cent. The Cayman Islands is 24 per Government has made a commitment that they will cent. The UK Government went down there and said not increase the debt next year. But expenditure still this is what you have to do if you want to move in [the continues to rise sometimes because there are sala- right] direction. We were at 17 per cent of GDP and all ries that were not given to the civil servants for years. we are saying now is, how can we get to 20 per cent? This Government made a commitment not only to help I tell you, Mr. Deputy Speaker, if we got to 24 per cent our seniors but to ensure that civil servants get a rea- it would be too much for a Government to move for- sonable increase. ward. It would be a lot of money for the Government So, here we find ourselves. The biggest debt to collect, but too much. You are right. We cannot. that we have, the biggest expenditure, is salary. The You should not be over taxing. But how can we do it? next, Mr. Deputy Speaker, is contribution. And that So, Mr. Deputy Speaker, I notice that the contribution includes our hospital, BTA, BDA, and the Honourable Member did not say . . . Mr. Deputy list goes on. So, it is very hard to say let us slice up. Speaker, how much time do I have left, first of all? But what we did, Mr. Deputy Speaker, is say that the expenditure this year would be the same as it was in The Deputy Speaker: You have about 17 [minutes]. 2017. So, we have not increased expenditure and our deficit went down this year. And if it goes according to Hon. Wayne L. Furbert: Seventeen minutes. the plan from the Tax Commission, we could de- Mr. Deputy Speaker, I noticed that the Hon- crease that even more, or depending on how far the ourable Member . . . and I am going to get into some Government goes, possibly break even, based on the of the recommendations, because I think it is im- Tax Reform suggestion. portant. So, Mr. Deputy Speaker, we are all in this What was our train of thought, first of all, on boat together. Mr. Deputy Speaker, let me remind this taxing or looking on a tax report? What was it? And I Honourable House—for some of you who were not have to say, we met for nine months, twice a week, around at that time—that in 1999 there was a tax re- around the clock, me and individuals asking . . . one port. Mr. Deputy Speaker, let me just say, at that time, recommendation from a young lady . . . and we had guess what was some of the reference? Improve pro- more recommendations from young people than we gressivity and their overall system of taxation, in- had from ABIC, ABIR, politicians, and the whole list of crease tax revenue to 24 per cent of GDP. them. Some of them supported, Mr. Deputy Speaker, Mr. Deputy Speaker, another tax report was income tax. Young people. Black and white. done in 2017 by the former Government, by CARTAC. Mr. Deputy Speaker, one young lady felt that It was their suggestion, Mr. Deputy Speaker, to intro- we should put a toll booth down on East Broadway. I duce the GST. That GST was supposed to be imple- said, You can do one on East Broadway, but you will mented in October of 2017, if they were still the Gov- not do one in Hamilton Parish. ernment. We are starting to hold out to do a compre- [Laughter] Bermuda House of Assembly 378 7 December 2018 Official Hansard Report

Hon. Wayne L. Furbert: So, that recommendation So we said, why can we not put in what we failed. But that would not have been equitable or fair. call a withholding tax? And the withholding tax works But, Mr. Deputy Speaker, the first thing we like this: A $100,000 bill comes in from Mr. ABC Com- asked ourselves is how do . . . and you have heard pany in New York. It is a law firm in New York. They this Government from time to time say that payroll tax send a bill to AB Insurance. The tax will work with a is prohibitive to growth. So, the Honourable Member charge they withhold, ABC Company withholds 5 per earlier [asked], How do we stimulate? So, what we did cent, sent to the Government and then 95 per cent in April of this year was say that any new increase goes to them. over the net amount of staff you have as of There is no impact on the company, because March 31st, there would be no payroll tax for new em- what we said to them is that, by law, this is what hap- ployees going forward for three years. And with the pens. If you want to do work in, do business in Ber- option of the Minister of Finance to increase it. Be- muda, you are going to pay 5 per cent. It is not infla- cause it was a stimulus in saying we want more busi- tionary because it is not able to be passed on. And do ness in Bermuda. We want more . . . we want compa- not tell me they will pass it on because at the end of nies to hire more staff and that was our stimulus. And the day that means there is more . . . there is a spiral. we are seeing some progress in that. We are seeing Whatever they do, it is a spiral. And then, because some progress in that. most of the large companies . . . it is self-reporting. The Honourable Opposition Leader is shaking So, it is not difficult. his head. Mr. Deputy Speaker, despite reducing pay- Then, Mr. Deputy Speaker, [there] was a rec- roll tax last year lower than the Government had the ommendation for a GST. Now, this GST came under year before, our payroll tax is up for the first six the CARTAC report and came under the OBA. We months. looked at it and said, Hmm. This looks good. Let us So, Mr. Deputy Speaker, let us get back to the move ahead with it. And the GST works like this . . . payroll tax. There are significant numbers of people and I talked to some of the larger reinsurance indus- who are making under $48,000. And so we said, why tries because there was concern that AB Law firm or should they pay? We are recommending that they AC Accounting firm or whoever is providing the ser- should pay 0.0 per cent tax. Some people say, Yeah, vice will pass it on to them. And they said, No, no, we well, somebody should pay some tax. Well, that is up will deal with that. We will negotiate our fees with to the Minister, at the end of the day, to decide, to those companies. So, move ahead with the GST. make a decision. The recommendation from the Again, we felt this was the right move. committee was no payroll tax for those between, that Mr. Deputy Speaker, the other large increase make between zero and $48,000. which had to do with . . . and which is more sensitive, And then we said, let us bring down payroll and I accept that. But commercial rent, Mr. Deputy tax for the employer. Let us bring it down. So, by do- Speaker. For over hundreds of years individuals who ing that Mr. Deputy Speaker, it will hopefully stimulate have commercial [rental properties] in Bermuda paid new hires because the employer payroll tax is ap- very low taxes. What do I mean by that? Because proved to grow. We put a new band, because normal- they have normally what they call a “London lease” ly the band went from 1.75 per cent if you were mak- and pass all their expenses on to the person who is ing, if your payroll, I think it was, under $200[,000] or leasing the property—the land tax, service tax, what- $250,000. Then it jumps to 7 per cent. So we put a ever it is. And so they charge a million dollars for their band in there for 3.5 [per cent] to cause more growth rent for the year and they basically walk away with a in small business. million dollars. And, Mr. Deputy Speaker, with the recom- It was felt that it was time for them to pay mendation, our payroll tax will [go] from $454 million something on their commercial rent [income]. They down to $430 million. So, how do we make up the dif- benefit by the Government of the day providing a sys- ference? Again, we said payroll tax . . . sorry, payroll tem to allow them to thrive and grow within the indus- tax was inequitable, and it was not fair. Or our tax sys- try. That is why. And we held it. We were going to do it tem was not fair. This withholding tax, Mr. Deputy this year, and we put the land tax on. Now, I accept Speaker, of . . . or management and services tax was that people were charged a land tax. Well, the land an idea that came from some of our accounting pro- tax had a sunset clause, meaning the next year the fessionals. Because what they realised, Mr. Deputy land tax disappears. So, why shouldn’t Mr. Smith who Speaker, was that there were individuals coming to owns a six storey, or whatever, a five storey, and Bermuda competing against even themselves (ac- making over a million dollars, not pay anything on counting firms, law firms, actuaries, and the list goes that? on) without paying a dime other than coming in here Mr. Deputy Speaker, the other one was to do for a plane ticket from New York—$430-some dol- with . . . so that was commercial rent. Now, I accept, lars—and walking out of here, doing work in New Mr. Deputy Speaker, and we had a long debate on York, doing work in Cayman Islands, doing work in UK residential rent. This is being recommended by the and not paying a cent to this Government. Tax Reform Committee. Not necessarily does the Bermuda House of Assembly Official Hansard Report 7 December 2018 379

Government at the end of the day have to accept it. It spiral, spiral. You cannot call it expense. It is called is up to them. But, Mr. Deputy Speaker, what we rec- revenue. ognised was that anyone whose ARV was under $22,000 would not pay a rental income tax, a rental [Inaudible interjections] tax. But, Mr. Deputy Speaker, as I said to a banker once, why should a person who has 99 houses . . . Hon. Wayne L. Furbert: I will hear the Honourable and, Mr. Deputy Speaker, for some reason that bank- Member later on to hear how much he wants to pay. er knew exactly what I was talking about. That was Mr. Deputy Speaker, the other part was to strange. look at . . . and the Honourable Member, the only I do not think we ever said it and Jeanne . . . I thing I heard supported was the Foreign Currency am sorry, the Honourable Member Jeanne Atherden, Purchase Tax, which will get moved from 16-point . . . was in the room. They told me, 99 homes on an aver- the current of $22 million up to $38.5 million. age, [would earn] say $1,000 each. They would get Mr. Deputy Speaker, it was also a way to . . . $99,000 a month times 12, and not pay a cent. That immigration fees. They tell me that the immigration cannot be fair. When Mrs. Smith makes $1,000 and fees for lawyers, accountants and professionals in the pays tax on all her income. Cayman Islands is about $25,000. We charge $2,000. Now, it is up to the Government to decide how So, I said to one of my international friends . . . and I they should move ahead. But what we have put in will go slow on this. How much time do I have left, Mr. place is a balance for those grandmas, grandpas, and Deputy Speaker? even people of this House, who have ARVs under certain ARVs, to not be taxed. But those individuals [Inaudible interjection] whose ARV is over a certain amount will probably be hit. It is talking about fair and equitable based on the Hon. Wayne L. Furbert: I will go slow on this one. tax reform. I am saying that the Government would And let me explain to you. move ahead with that. So, I bring in an actuary, and I charge And, Mr. Deputy Speaker, the other one that $500,000 for this actuary. That is how much salary we moved on was, as I said, payroll tax. But we talked they are and probably more than that. But I am going about, and I mentioned it earlier. I am not going to to give him $500,000. And let us assume that the pay- reflect on the debate but, 1.4 (or whatever) per cent roll tax is 10 per cent, which now they will not pay. So, you will be getting to a senior, but reducing cost of they normally would have paid the Government staple foods items, once again, and children’s cloth- $50,000 per year for five years, [that] would mean ing. they would have paid the Government $250,000. Mr. Deputy Speaker, I would have thought Mr. Deputy Speaker, if the Government de- that we should be jumping for joy on that one because cides to move from $2,000 to $10,000 for a work per- we hoped that this cost would be passed on to the mit fee for an actuary, that company would still save consumer. The other one, Mr. Deputy Speaker, where $240,000. Here and now we are saying this is where the Government, the former Government, failed . . . we are talking about getting more equitable and fairer. financial service banks and insurers. Everybody now All right? Now, these were recommended, to be hon- looks at their insurance invoice and there is a fee and est with you, by some of the professionals out there. is says “Government fee.” It was never the intent for Mr. Deputy Speaker, the other one was the the Government to pay that fee. We were looking— international company fees. I believe we have got to you were looking, the former Government was look- do a little more work on that. But it was [that] you pay ing—at going after the financial service for them to fees based on your capitalisation. And so, because pay, because they make a lot of money. Well, the tax we were reducing payroll tax by 1 per cent, recom- reform is suggesting that you double it. And this time mended by the Payroll Tax Committee, you will have we will make it very clear. It is not going to be passed saved thousands of dollars on payroll tax. on to the consumer. Now, let me just say this, Mr. Deputy Speaker, I believe that this is definitely a way to move and [Inaudible interjections] [should be] considered by the Government. I had an opportunity to talk to ABIC and ABIR and, Mr. Deputy Hon. Wayne L. Furbert: Not. It will not be named af- Speaker, one particular reinsurance company (I will ter the Government. not name, very large). I asked them, here are the And, so the Honourable Member says that it numbers for the payroll tax. Tell me how much payroll will be passed on. And he is a lawyer; I am an ac- tax would you pay next year if the Government moves countant. So, if I am charging $1,000 and we pass on ahead in this direction. Mr. Deputy Speaker, the pay- 10 per cent . . . so it is $110. So let us say I am now roll tax went down. going to pass it on. Do you know that now you charge I suggested to the . . . you can get it down 10 per cent of the $110? It keeps on going. Spiral, further by stopping the paying of payroll tax for their employees, because every local company pays pay- Bermuda House of Assembly 380 7 December 2018 Official Hansard Report roll tax for their employees. In the olden days, they I actually, I think most of us are, just about all used to bring in individuals because it was for compet- of us, I think, that I have talked to, are quite happy to itiveness. But now, Mr. Deputy Speaker, we have got see a report of the likes. You know, the Honourable people coming from Canada, from Europe, who are Member from constituency 6 who just sat down, en- not paying payroll tax. The only country that mainly joys a bit of a political dig. So it would be remiss of me has to pay payroll tax now is the United States. So, if I did not say, you know, I am glad. I do not know if it why should they not pay payroll tax like everybody is the fact that somebody bumped their head to get else? this report done, but since 1998 we have all been But that is up to the company to decide. Not looking for fair and equitable taxes. I think that is what up to us. But we cannot at the end of the day leave led to the victory of 1998. After 20 years, we are finally payroll tax and stifle ourselves for the employee be- looking at something concerning taxation that points in cause certain individuals or certain companies feel it that direction. So, I can appreciate the fact that the was inappropriate. Honourable Member likes to get political. I will have to So, Mr. Deputy Speaker, with the payroll tax remind him of which side he was on at that time in reform and with the cost of living report that was put 1998. forward, I believe Mr. Deputy Speaker, that we are in for a new dawn. It allows this country to look at what Hon. Wayne L. Furbert: Point of order, Mr. Deputy we think is fairer and more equitable. And I under- Speaker. Point of order, point of order. stand that those who make more will cry more. and those who make less will hopefully rejoice. So, this [Laughter] allows us to move in a direction that the Government would want us to move. The Deputy Speaker: What is your point of order? So, Mr. Deputy Speaker, I appreciate the Premier, the former Minister of Finance, for putting POINT OF ORDER myself on the committee. It was a joy working with Mrs. Atherden over those nine months. We had a few Hon. Wayne L. Furbert: I do not want to . . . I am try- jokes. Of course, it had to be political. But, of course, ing my best, because the Honourable Member says Mr. Deputy Speaker, it allowed us to work together. the first time for 20 years. I said that we had a report So, if Mrs. Atherden and I can work together, as a in 1999 and we had a report in 2017. former Leader, then why can we not all work together to move this country forward. The Deputy Speaker: Thank you. Yes, we have to look at the SAGE Report to reduce expenditure. Yes, the Government has put Hon. L. Craig Cannonier: Yes, if he would have let together an Efficiency Committee to look at improving me finish, what I was going to say is that it looks to be efficiency . . . and I can tell you right now, I chair that serious intent to have something happen, which is committee, and we have. I would love to reveal some what I am hearing. There seems to be intent to ensure stuff to you today (but I will not) [of] how we improve that something is followed through on. And that is some efficiencies with the Government. And we have probably most important because I believe that we, as now a report for revenue. Let not this report die like an OBA party, also believe that action needs to take every other report that has been written since 1999. place as far as a different structure of taxation. Mr. Deputy Speaker, if we fail— But one of the concerns that . . . and I do not want to go through all of the points here. I am going to [Timer beeps] attempt to stick to a particular area because many other people want to speak to other areas of the re- Hon. Wayne L. Furbert: —then we have failed this form. So let me first say thank you to the Commission generation, our current children— for the time that they put in, for the work. We recognise that these are recommendations that are being The Deputy Speaker: Thank you. made. We also recognise that Bermuda is looking for some way to move forward with this taxation system. Hon. Wayne L. Furbert: —and our future generation. One of the things that has continued to con- Thank you, Mr. Deputy Speaker. cern me as I have grown to, I was going to say growing to be a young man, but my grey hair is telling oth- The Deputy Speaker: The Chair recognises the Hon- erwise, that, you know, we were taught to go away ourable Member, the Honourable Leader of the Oppo- and get an education so that we could come back. sition Craig Cannonier. And I can remember in the early days especially, Go You have the floor, sir. get an education so you can come back and make a difference. And many of us have come back in this Hon. L. Craig Cannonier: Thank you, Deputy Speak- room as a representation of making a difference. er. Bermuda House of Assembly Official Hansard Report 7 December 2018 381

But one of the challenges that we do have is [Laughter] that as we look at a taxation system that we improve on . . . and I will say improve on because I do not think Hon. L. Craig Cannonier: But I was just reading in there will be a wholesale change of the structure of it the Fiscal Responsibility Panel [Assessment Report], right now. But as we look at that, it is important that in the very second paragraph. It says, talking about we do and are fair and equitable. Bermuda and what it needs right now, “But perhaps of Many who have come along, and I have men- greatest concern is the certainty of the island’s shrink- tioned some who I was away at university with and the ing workforce and rapidly ageing population.” likes, are now struggling in this economy. And Mr. and And as we go through [these] recommenda- Mrs. Bermuda, which is who I am referring to, are hav- tions we have here, the single most threat . . . and we ing real difficulty with renting out homes and the likes. are just talking about (I am just sticking to the retail We can see where the economy is today, and so we sector here) is the fact that we do not have enough need something that is fair and equitable. people on this Island spending. We have watched You know, it was rather interesting as I went businesses, our friends’ businesses, go out of busi- through here. I am hoping that with these recommen- ness unable to pay their taxes. And so what we have dations one of the things that invariably happens got to do is figure out not only through stimulus of when we are not comprehensive with some of the how, you know, we change the taxation system with things that we are looking at is that the effect of what it the number of people that we do have here so that it is that we do will invariably be different than the intent. is fair and equitable, but at the same time we [need to] The effect will invariably be different than the intent. have new money being injected into the economy so Why do I say that? Because here and now, Mr. Depu- that we will see more entrepreneurship. ty Speaker, many of . . . and I will go to the retail sec- Right now, if anyone wants to start a busi- tor which is my heart. You know, I have retail business ness, they are going to look at the business plan and and I have many friends, Mr. and Mrs. Bermuda say, I cannot afford it. And one of the areas and one friends who I went to school with who have local busi- of the reasons why retail will continue to die off in this nesses who at this time are struggling in the economy Island is this one factor alone, which we have not ad- which we do have right now. dressed as yet. And that is this: duty is being paid up And we feel that the taxation system is com- front. So in order for any entrepreneur coming into the pletely unfair and has put us well behind where we Island . . . he has got to be able to say, Well, look, you should be. And so I am championing the fact that we know, I need to be able to get enough money in place have a cause here that says let us say how we can so that I can open up, but I have got to have enough make this fairer and equitable. inventory and these things. So, if he or she does not Now, I have got some challenges with some have the money themselves, they have got to go of the recommendations that are on here because for somewhere to borrow that money. me, having grown up, you know, came along and was We now recognise that the banks, quite frank- taught to go get an education and go. Some of these ly, in Bermuda are not friendly to small and medium- things are going to be a bit difficult for someone like sized business. That is just a fact. It is extremely diffi- myself, self-made, as they say, in the local economy. cult to go to the bank. It takes you sometimes almost And so, we are looking for opportunities that with a year just to get something to . . . by that time, you these recommendations will allow for business to have lost interest. You have spent everything that you thrive. And I am talking about local business. I am have and now the opportunity is lost. talking about Mr. and Mrs. Bermuda and that retail And so at the same time I am so appreciative sector in Bermuda. Next to government, who hires the of the fact that they went through this here, the main most Bermudians, the retail sector comes in right in issue in here with the retail sector, and they give a behind there as the largest employer of local people. recommendation that will help the existing retail busi- And we can see here and now. We have seen nesses that are there and for new business—it is giv- the stats, and what has been put out. Sales are down, en in here. But the reply is kind of stark and it kind of consecutively, month after month after month. And threw me back as to that reality of what they said. And what happens is we wind up having to contract and so I will get to that in just a minute. we wind up having to lay off our own Bermudians. So, You know, the key . . . I wrote down the note what we need along with a tax structure, a new tax that the Honourable Member that just sat down from structure system, is a stimulus into the economy. Now, constituency 6. He said, How do we find a balance? what do I mean by a stimulus into the economy? Well, And that is always a difficult thing. I can remember, we had a wonderful report that the . . . and I also want you know, watching the excitement as PLP had won to say, I want to thank the Finance Minister for bring- the Government in 2017. And when we came back ing this forward. I am beginning to actually enjoy him into the House one of the first things I said was, Lis- as a Finance Minister, so far. It has only been a cou- ten, this is going to be really, really interesting know- ple of weeks, but let us see how long the honeymoon ing the fact that we need more people on the Island lasts, Mr. Deputy Speaker. and one of the greatest issues we have here is immi- Bermuda House of Assembly 382 7 December 2018 Official Hansard Report gration reform. How are we going to get more people But we have got to ensure that we get people back to into the Island, spending more so that we can grow working, which I am sure for the Honourable Minister business? Because if we are going to add, in this . . . will help as far as financial assistance and all of those outside of the great three taxes that we have, we are things that is burdening for Government. talking about adding another four to this. So, I wanted to go over to this . . . this . . . sor- And, so, if we are going to add more taxation ry. I am going to flip over to page 34, where it talks to the system, because we are not saying that we are about General Services Tax. And, so I just want to go doing away with any, we are going to add to it— down to (let me put my glasses on, sorry Mr. Deputy maybe, you know, take a little more from this area Speaker) 2.3.9 and it says there “As a sector,” (talking here and add a little more over here. We still have not about retail,) “their overall sales and revenue has de- done anything about the fundamental condition and clined due, in part, to a reduced customer base.” issue that we have and that is not enough people Straight up, that is the issue. That is the issue. spending into the tax system that we do have today. You know, you will hear many times people saying And, so, as we start looking at, and I would well, you know, He who knows it feels it. Well, I feel it daresay I am recommending to the Finance Minister, on a regular basis when we start looking at fuel sales not as a finance person, but that we, as we look at (and I will declare my interest having service stations) making recommendations we have a real push with and to see how fuel sales are now just starting to fall. these new recommendations if we are going to do And usually that is one of the areas where people first some of these here, that we have a real push on stim- start cutting back on, on the amount of fuel that they ulating the economy through getting more people here . . . they do not fill up. And for us now to start seeing in different industries because therein we will find the people coming in, you know, with coins to pay for put- balance. But if we go ahead without stimulating the ting fuel in a car, it is okay for a bike, but for a car, we economy (meaning getting more people here) and we know it is getting difficult. add more taxes to the system with the same number So, we need to ensure that the taxation sys- of people that we do have today, I go back to what I tem, as was already said, is fair and equitable which said before. The effect will invariably be different than allows them to have more disposable income. But at what the intent is. the end of the day, really and truly, allows them to And I recognise the pure intent of this here. have a job in the first place, and that is where we are And I do not want that intent to be lost by not balanc- lagging. ing it out by getting more people spending into this But, anyhow, it goes on, Mr. Deputy Speaker, Island. Right now, it is difficult for Bermudians to . . . the 2.3.10 says, “As a sector they asserted that spend anymore. It is just difficult. And, so we have a paying import tax upfront before they have an oppor- real conundrum here. And as I said before, it is going tunity to recoup any part of their expenses compro- to be rather interesting to see how we manoeuvre mises their cashflow.” And that cash flow rung a bell through this new structure. It needs to happen, Mr. to me, because, having been in a position where we Deputy Speaker, most definitely needs to happen. were doing wonderful, the economy was doing well But let us not, in the intent of making this new and I personally with my business not having to go to structure system happen, lose the very retailers who the bank, we were doing wonderful. The recession have been out there struggling today who are in debt came along and everyone was struggling and we saw trying to ensure that they can pay their taxes right now how people were struggling. And all of a sudden now because they cannot and they are being held respon- we have to, as a business, also go to the bank, like sible for those taxes in a system whereby it is not al- many others had to go to the bank and say, Look we lowing them to pay it today because there are not need some help. enough people paying into the system. No fault of any Well, I am glad the recession took place when particular Government. I am not blaming any particu- it did because if you go to the bank today it is not go- lar Government for that situation, many of the retailers ing to happen. It is not going to happen, and this is a found themselves in that position, maybe because of real, real challenge. the recession or other things. But we now need to be So, when the industry says it needs that cash able to encourage and stimulate business to be able flow, I am reminded of the fact that what they are ba- to pay—to be able to pay. sically saying, the retail sector, is, Listen, the banks And, so I flip over to, you know, we need a have now moved from asset lending to your ability to taxation. I had so many marks on this thing here. This pay back what you borrow. So, no longer can you go was a very good read, I must say. It was a very, very to the bank now and say, Well, look, I got some as- good read. And for those of us who have not had the sets, you know, I want to be able to do business. The opportunity to really go point for point it will be enlight- bank will not even . . . they will not even call you back. ening for us to go through this here. But if I go over I mean, this is ugly where we are right now. and I will repeat again, we need a tax system that en- And so, that cash flow allows the businesses who are courages local job growth. That is what we need. struggling today to be able to go to the bank and say, Therein will lie the fair and equity in all of this here. Look, I got the cash flow, you know, I just need it up Bermuda House of Assembly Official Hansard Report 7 December 2018 383

front because I am just trying to keep up with my—at many in this room are aware of it because they are the end of the day—my inventory. And, so if they are involved in retail businesses. They understand it. able to keep up with their inventory, they can [stay] in So, I do not want to keep going on and on and business . . . the selling, selling, selling. Even with a on here. I think I have made the point as far as where reduced market, the cash flow is there. And, so when I I believe the real challenge is with this particular part talk about this sector . . . and it makes the one single of the industry in Bermuda who pays their taxes. And recommendation that will help save it, single-handedly there was one other area we were talking about, and I save it. would probably hope that there was some more con- This is the reply that I see. It says, “A sales versation about the taxation on imported goods tax will free up cashflow”— through the couriers. Quite frankly, now, you have seen couriers An Hon. Member: What page? just blossom. And we have seen every year during Budget time where the increase of goods coming in Hon. L. Craig Cannonier: I am on page 34—2.3.11. through couriers . . . that dollar value has increased. “A sales tax would free up cashflow and allow the sec- And, you know, Bermudians like variety. You are not tor to remit tax to the Government on goods that have going to get the variety in a small saturated Island like been sold and not on their total inventory as is the this here, so this does allow for opportunity. I think status quo.” that going to 25 per cent, in my estimation, the same I just explained all of that, however . . . and as being able to go away flying and then to bring it this may not be a reference to PLP as a Government. back, is a bit of a reach. I think we can dress that I do not know where this came from, but the answer back. But understanding that the intent of this here, I they say is, “However, the Bermuda Government,” (in can see that if it goes to 25 per cent the unintended 2.3.12) “prefers to collect tax at the point of entry as it consequence could be that many of these courier ser- is more efficient to administer, and revenue is more vices who our cousins are all working at . . . there may predictable.” be some cutting back of that. And we do not want to Well, with that, if we do not do something have that happen. And, so I am hoping some more about getting more people here now, you essentially attention will be given to some of these areas as we have just put the last nail in the coffin. And I am not move forward with this new tax structure system. saying PLP as a Government, but that answer puts And so, again, Mr. Deputy Speaker, it is the last nail in the coffin as to what happens to the pointed out in the Tax Reform Commission [Report]. It retail businesses that are now surviving. is also pointed out in the Fiscal Responsibility Panel And, so my recommendation to the Minister [Assessment Report] that the major threat to Bermuda is, please, go back to this particular section right here, is the fact that we have the certainty of the shrinking the sector that hires, outside of Bermuda government, of our population. That has to . . . and that may need more local Bermudians than anyone else. Please, go another report to address it and what exactly do we do back to this particular area and give it some more at- as far as industry is concerned to get more people tention. And I would be willing to recommend many of here. And I think that we can get to that. I certainly my friends who are in the retail business and the retail believe that there has been some speed up as far as sector. Please, go talk to them. I will send them to the work permits are concerned now, and getting them Tax Reform Commission. I will send them to them to through. That is one area. But not just getting them have some more conversation. through, getting new people to this Island so that we I mean, you know, not everyone is a member can continue to ensure that this reform gets talked of the Chamber of Commerce. Many in the retail sec- about some more, more ideas, and then we start im- tor out there are outside of the Chamber of Com- plementing it. merce. It would be wonderful to be able to get to a Thank you, Mr. Deputy Speaker. position whereby we understand at this point and juncture, here and now, as you have heard me say ANNOUNCEMENT BY THE before, that it is critical that this happen and that the DEPUTY SPEAKER Government find a way. Just like it is finding ways for other things, putting new administration in, changing HOUSE VISITOR up ministries to be more efficient, and all these kinds of things, it is vital for it to find a way to save these The Deputy Speaker: Thank you, Leader of the Op- businesses because these businesses want to pay position. their taxes. They want to pay it. But right now, they Before we call the next speaker, I would like cannot. And it is a dark cloud sitting over all these re- to recognise the former Deputy Speaker of this House tail businesses trying to survive. who served over 25 years in this Parliament, the Hon- They do not want somebody to come chasing ourable “Uncle” Walter Lister. after them. But they are in that position. And I know [Desk thumping] Bermuda House of Assembly 384 7 December 2018 Official Hansard Report

The Deputy Speaker: Sergeant-at-Arms, he is wel- make a return. And so, the margin [for] retail is very come to come and sit inside the Chambers, if he thin now, more so than it was even when I entered wants. So, Sergeant-at-Arms, if you want to invite him retail. in, you can. And so, you know, many of us are looking forward to the opportunities for growth—growth in [Tax Reform Commission Report 2018, take note tourism. The Honourable Member spoke about growth motion, debate continuing] as far as people. But maybe repatriation of our very own people in the thousands who have left Bermuda The Deputy Speaker: Any further speakers? would help our situation and help us culturally regain. The Chair recognises the Honourable Kim But, you know, I just ever so briefly would like Swan from constituency 2, in St. George’s [West]. to look at 8.3 on page 69. Some of the guiding attrib- Mr. Swan, you have the floor. utes that the Tax Commission took on board, and one stood out to me. It would be number four (it is not Mr. Hubert (Kim) E. Swan: Good evening, Mr. Depu- numbered, but it is there). “Taxes should not favour ty Speaker, and like our lead-off speaker tonight, I will one group or sector over another and should not be not be long. Save and except to say, in the first in- designed to interfere with or influence individual deci- stance, the Finance Minister was wise to give a brief sion-making [amongst] economic choices.” presentation, Mr. Deputy Speaker, because this par- Well, we know in this country that the tax sys- ticular Tax Reform Commission was commissioned tem that we have inherited has been there since time before he was a Member of Parliament, and he was immemorial. And certainly there is a great deal of fa- returned. And [I am] very pleased that he was re- vourability which has not been enjoyed by, particular- turned to the House of Parliament upon the retirement ly, the black community. And we in the black commu- of a Member. And he has ascended to great heights nity have not enjoyed the spoils of Bermuda’s eco- from the Robin Hood Corner to become the Finance nomic success as a collective. So, as we look at fair- Minister. ness . . . and let us be fair when we talk about fair- I think it is prudent that he, in his role as Fi- ness, in that whenever a Government comes into ex- nance Minister—yet to present his first Budget . . . I istence, what are the two boogeyman words that are think it would be foolhardy for him to come here today used? There are three of them, because I remember to espouse exactly what it is that he would propose to Dale Butler calling them out in threes. do, having not yet even really . . . I do not even know One is “independence.” Mention independ- if he has given his Maiden Speech yet, apart from do- ence and people go nervous and the boogeyman ing his ministerial responsibilities. comes out. And yet we have Britain going through voting and making decisions that impact everyone [Crosstalk] associated with them, and very little is said about that, and beneficial owner. A member of the Opposition Mr. Hubert (Kim) E. Swan: So, I believe that you cer- even wrote about that this week, and that is a biparti- tainly cannot be judged for what you do not say. But, san issue. Our Finance Minister, former Finance Min- yet, having not said it, persons were prepared to judge ister and Premier, and the Honourable Member, the him. And I do not think that was . . . I would not say it National Security Minister, have travelled extensively was not fitting. But I do not think that it has the merit for Bermuda, have been defending Bermuda in the that persons would have liked to have attributed to it. I same way that former persons who held those offices think that persons were being politically mischievous have done so. But yet people would nit-pick on their when they did so. But I think he was acting very pru- travel and all the like while they are doing necessary dently— business. But let somebody else say it. It is great.

[Inaudible interjections] [Inaudible interjections]

Mr. Hubert (Kim) E. Swan: —and I just want to pig- Mr. Hubert (Kim) E. Swan: And, so . . . Yes, when gyback on what the previous speaker said, the Hon- the PLP are doing it, we are going to, you know, find ourable Opposition Leader. fault. And that does not speak to fairness and biparti- And I will declare my interest, like he did. I sanship. have been in retail, not currently, but for many years And I was pleased with the Junior Minister of my professional life. And I think that he made a very who spoke of the collaborative way in which he and good point, of which I have already shared, as he was the former Opposition Leader were interacting. I can making it with the Finance Minister, about the fact that imagine how some of those conversations were going, we in retail have always had to carry the burden, the because I am sure he could foretell for her some of tax burden. Many of us know exactly what it is like to the things that she might not have been aware were employ many Bermudian people and then have to happening under her very eyes and ears at that par- shell it all out ahead of time and hope that we would ticular time. Bermuda House of Assembly Official Hansard Report 7 December 2018 385

But, as we look at fairness, “income tax” has Mr. Hubert (Kim) E. Swan: Yes, indeed! I am very always been the other “I” boogeyman of Bermuda. proud. I knocked on doors. And I look forward to the And we hear persons make reference to, It is the sole critical eye that he will put on this important subject. responsibility of a government to only take in what it Thank you, Mr. Deputy Speaker. intends to spend. In an ideal world, yes. When times are going good, yes, you can operate with a surplus. The Deputy Speaker: Thank you, Honourable Mem- But I remember . . . and I have to be fair. Between ber. Any further Members want to speak? 1998 and 2008 when I was in . . . 2007, when I was a There appear to be none. Senator. I remember that Bermuda enjoyed a tremendous boom period economically. Unprecedented! It [Inaudible interjection] was a PLP Government that presided over that. Growth and increases in population do not [Laughter] guarantee equity. And I am sure another Member can speak to that far better than I can. But I can tell you The Deputy Speaker: The Chair recognises the Hon- this, when Bermuda’s poor population and near poor ourable Member Rolfe Commissiong. grew, it was when the boom period was taking . . . and that is what has to be taken on cue because right now [Laughter] persons that are looking to boost their pockets are persons in position to benefit from it. Mr. Rolfe Commissiong: Thank you, Mr. Deputy You know, I was encouraged today, and if I Speaker. could have read this article written in The Boston Mr. Deputy Speaker, Steven High, the author, Globe about a young Bermudian, a young Bermudian wrote a book called Base Colonies in the Western that just received the Rhodes [Scholarship], became a Hemisphere, 1940 and 1967. I have used this quote Rhodes Scholar. Her mom is a lawyer, Ms. Stone. before and, with your indulgence, I would like to re- And I am looking because I posted it. And it showed peat it. He described Bermuda, and I quote now, some hope because this young lady in being around “Ruled by and for a white oligarchy” and said that IB and the like and accepting the opportunity to further “Bermuda was one of the most reactionary colonies in herself academically touched my heart in saying that the British Empire.” being around the Jesuits and the like and advancing Now, he may have gone overboard a little bit herself academically, she is going to go and examine on that one. Certainly, the colonies in other areas and the poor and how [they are] impacted in a community. in Africa were fairing far worse. May we have more people like that. May we have But he went on to say, “There was no income more people like that. tax. No inheritance tax. No luxury taxes of any kind. And, Mr. Deputy Speaker, as we look at these Property taxes were nominal at best. Without a sys- terms of reference that have been laid out, fairness tem of direct taxation, the colonial revenues were has not been the order of the day in Bermuda for cen- largely derived from customs receipts. The great ben- turies. It has not. And as a consequence of now hav- eficiaries of Bermuda’s reliance on customs duties ing this Commission in front of a new set of eyes in were landowners who paid nominal taxes and mer- finance for the Progressive Labour Party, it is only fair chants who paid none. The great losers, by contrast,” to that postholder’s office, for him to measure it twice according to High, “were working people who paid the before he even decides that it is going to get the scis- price of higher living costs. As virtually everything had sors to do what he needs to do (and I use that meta- to be imported.” phorically). And, so, as it relates, I promised that I was He went on, “For a hundred years, a small not going to be long and I am not. But fairness is the group has made Bermuda its own paradise by control- operative intent of taxes. ling legislations and by seeing that taxation policy kept But as a retailer . . . I am not a practicing re- all but themselves in strict economic subjugation while tailer right now, but one at heart as well as other they themselves accumulated fortunes subject to no trades, I have to say that the burden on a retailer in taxes whatsoever.” that regard is far greater. It is far greater than other Mr. Deputy Speaker, we have talked consist- persons in business. And I would hope that those set ently about the inequities in our tax system. And when of eyes that have elected to measure twice and then I say we have talked, I am talking about for decades proceed, as we will get a look at the budget, would on this side of the aisle. The Progressive Labour Party take a worthy comment like that from the Opposition Government and the Progressive Labour Party going on board. But I am confident in my Finance Minister. I back to its inception over five decades ago described am very confident. I am proud to have canvassed for the inequalities in our tax system and called for a my Finance Minister. more fairer, more progressive tax system. So, let us not be any illusion here. We know the philosophical [Inaudible interjections] origins of this work, and it does pose a monumental

Bermuda House of Assembly 386 7 December 2018 Official Hansard Report and fundamental shift on how Bermuda treats its peo- living wage,” I quote. “The trade-off was increased ple. Long overdue, I might add. labour costs for companies and higher-priced manu- Mr. Deputy Speaker, this work by the Tax Re- factured goods for consumers. That was then. Mem- form Commission was a bipartisan work. I think it was bership in labour unions has been falling since the the right approach to take, and all credit to our Prem- 1950s. As of 2017, just 10.7 per cent of wage and ier (who was then the Finance Minister) for moving in salary workers in the US belonged to a union; that is this direction. Certainly, we want to have as many half of what it was in 1983. The share of unionised Bermudians on board as we can as we look to move workers in the private sector is even lower, at 6.5 per towards implementation in 2019. As a cautionary note, cent. and for all those in radioland, it is not to say that this “A turning point in the fate of unions came report will be accepted in toto by our Government. But when President Ronald Reagan fired striking mem- certainly, you expect that they will act in good faith in bers of the Professional Air Traffic Controllers Organi- judging the recommendations and making that mon- sation. A number of states, especially in the South, umental shift toward a more progressive tax system. passed laws making it harder for unions to organise. Mr. Deputy Speaker, last week I talked about As union membership declined, so did the ability of the historical currents which are running throughout workers to win pay increases from employers. This the world right now with a bill that is coming due on ties in to the next point.” (As I said, about rewarding decades, beginning in the 1980s where there was a capital instead of labour). monumental shift from labour to capital, what more “We can point to the Reagan, Clinton, Bush commonly came to be known as a neoliberal period and Trump” (I would add Thatcher.) “Administrations from the 1980s right up until the present probably hit- for various changes to the tax code that were much ting a brick wall in the 2008 recession. This shift from friendlier to capital than to labour,” he writes. “Capital labour to capital ensured that income inequality gains taxes fell, as did the top income-tax brackets. throughout the West, along with the trends that the Policies that were extremely shareholder friendly were now-called globalisation exacerbated, would ensure also put into place. Although income inequality has that there would be shrinking middle classes, growing been rising for decades, these four administrations,” poverty in most of these nations and mainly in the An- talking about the American administrations, “had an glo-Saxon world of the UK, the US and Bermuda. outsize impact.” Although, as Steven High points out, they And at the same time we saw a decline of were late to the table, because Bermuda’s tax system, unions that protected the rights of workers through Bermuda’s assumptions around the way it organised collective bargaining and ensured that they could ex- its economy were there decades before Reagan or tract equity from these respective economies; we saw Thatcher thought to move in that same direction. We the same trend take place in Bermuda. In 1981, 1982 were at least pioneers in promoting inequity with re- or 1983 (and I stand to be corrected with respect to spect to our economy and our tax system. Let us be those dates), the BIU had over 6,000 members. And it honest about it. was the BIU that helped protect the interest of Bermu- But that period is over now. France is burn- da’s workers, particularly the black Bermudian working—Paris and all the suburbs. We see the politics in ers, but not exclusively—over 6,000, [in] 1983 in a far the US and in the UK as the old certainties fade away smaller economy with fewer workers in that economy. as that period ends. We would be unwise not to en- Now that has dropped by 40 per cent in a larger sure that we shift with the world—but in a positive di- economy, I might add, with far more workers whereby rection, not in a reactionary, racist, xenophobic, and the BIU today has just over 3,000 members. ultimately destructive one, which seems to be the And in Bermuda, and in many other countries case in countries that we viewed as exemplars for in Europe—again the UK being the most principle of- ourselves. fender, but even in mainland Europe—you had in- So, Mr. Deputy Speaker, let me just bear creasing numbers, and in America, of workers coming down a little on that thought. There is a columnist in into the workforce without those protections, without Bloomberg View who writes quite prodigiously as Mr. the protection of collective bargaining. That is why Barry Ritholtz. I will give a little background on what increasingly from Europe through to the US you saw has taken place in the world over the last four dec- more calls for minimum and statutory wages to fill that ades. It was featured in the 1Royal Gazette. And let void that was filled during the 1960s and 1970s by me just get the . . . one of the key factors, Mr. Deputy labour unions. That is what has been happening here. Speaker, and you would be pretty understanding, I It was a massive transfer of wealth that created signif- think, of what I am going to read here. icant amounts of income inequality, and Bermuda has He says one of the factors that led us to this been— period is what I call the decline of unions. “Unions once guaranteed the middle-class good jobs and a The Deputy Speaker: Honourable Member, speak to the Chair, please. The Gallery is outside of the House. You can speak to the Chair. 1 Royal Gazette, 29 September 2018 Bermuda House of Assembly Official Hansard Report 7 December 2018 387

Mr. Rolfe Commissiong: Thank you, Mr. Deputy within the public sector. At no time did the SAGE Speaker. Commission talk about the fact that we needed also to So, let us go into the weeds here a little bit, increase the size of revenue which was coming in to with respect to the report. Mr. Deputy Speaker, on the government, and that essentially, in terms of that page 11, 1.2.7, it says, “There was a consensus tax to GDP ratio, Bermuda’s was too small. amongst stakeholder groups that Bermuda’s tax struc- Know why? Because if we did that then those ture placed a disproportionate burden of tax on those who were earning more would have to pay more. least able to pay.” I mean, look at the makeup of that SAGE Some time ago, it may have been a year ago, Commission. I feel the Chairman is a person I can I came with a report, it was called the Tax Incidence probably rightly say earns millions of dollars of income Report, which was undertaken by Mr. Eugene Cox, every year—and others. But they were prepared to the Finance Minister of the PLP Government, per- place the burden of necessary changes solely on the haps, only within a year or two of us taking power. civil service and in the public sector, while, as Mr. That Tax Incidence Report indicated that with respect High said, they essentially paid no tax whatsoever to Bermuda’s principal revenue streams, in terms of themselves. This is what we have to end. our Government, of land tax, customs duties, and pay- So, the Commission has recommended that roll tax, it placed a disproportionate burden on those we increase tax revenue to 20 per cent [of GDP], I at the lower income distribution bands. believe. Although that would still place us probably As I said, the observations by the mid-20th 2 [per cent] to 4 per cent below what is the norm in century indicate Bermuda’s tax system was essential- OECD in terms of the developed world. ly doing the same thing then. And we know the inter- Okay. I might add, even though in terms of the sectionality in Bermuda between poverty, low income government pay . . . the tax to GDP ratio is around and colour. But that tax incidence survey was illustra- 17 per cent. Once you add in, as it states here, the tive and clearly showed the wage and income, or in- Bermuda Monetary Authority, the Tourism Authority come disparity was pronounced in terms of the tax and other Authorities who have fee collecting powers, system that we had there and how it exacerbated it. it goes up to 18 per cent. But this still leaves us short I heard earlier about the question of land tax. of what the norm is in most countries. Those taxes are usually passed on to the renter, Just moving on. And this is important. “In the- whether residential or at the commercial level. And ory and in practise,” ([This is] 1.2.15.) “tax measures with respect to payroll tax, it has been one of the more may be applied to income or consumption streams in regressive taxes we have had, although there have a modern economy. Tax measures may also be ap- been attempts to tweak it here and there, to try and plied to the accumulation of wealth.” No doubt, and add more progressivity to it. And lastly, customs du- that is another area that we are going to have to look ties—not as big a percentage of the overall tax reve- at. nue as it was going back 20 or 30 years ago, but still It says here at point 1.2.19, “In Bermuda’s significant. And, again, at every instance the impact case, the tax structure is primarily consumption-based upon poor, lower-income and middle-income Bermu- and remains largely tied to 19th and 20th century man- dians has been pronounced. This is what we were agement systems that present constraints on a tax faced with and that is why this has called out for pro- reform process in Bermuda.” gressive change. Imagine that! We are living in Bermuda, one Moving on, 1.2.9, page 11, “In comparing of the most advanced countries in the world (at least tax/GDP ratios with other countries the Commission we like to think so), certainly one of the more richest found that Bermuda was lagging behind its main com- by any crude measurement, but yet they say that we petitor jurisdictions as well as the rest of developed are still constrained by having a tax system containing economies.” powerful legacies from the 19th century, at a time Related to that, 1.2.10, “In comparable inter- when the very rich pay little or no taxes whatsoever, national financial centres in the Caribbean and else- as mentioned. where, tax/GDP ratios have converged to 20%-24% of Now, this is fascinating, 1.2.22 . . . no, I cor- GDP compared to Bermuda’s ratio of 17% of GDP. In rect myself, 1.2.23 . . . just a minute. Okay, no. On OECD countries, the tax/GDP ratios are in the range both counts I was wrong, Mr. Deputy Speaker, [it is] of 24%-28% of GDP.” 1.2.21. It says here . . . this is very interesting, “Going And that brings up the point of the SAGE forward with this type of tax policy direction” (as en- Commission. The SAGE Commission . . . and if I am capsulated in this report) “would require the elimina- being a little unfair in my characterisation, I will stand tion of the tax assurance regime (no extension beyond to be corrected. Its underlying philosophy was that 2035 . . . .)” For our listeners out there, tax assurance government was too big and thus needed to be cut, regime was a regime that was put in place decades and that would have resulted by way of privatisation ago to ensure that the companies within Bermuda’s and other just direct reductions, and probably hun- then burgeoning international business sector—this is dreds of Bermudians losing their jobs, professions, even before the 1980s—would be exempt from having Bermuda House of Assembly 388 7 December 2018 Official Hansard Report to pay taxes such as, prospectively, income taxes on Mr. Deputy Speaker, I am just going to con- their corporate earnings, for example. clude here by saying the following. I came across That is still in effect. In fact, the PLP Govern- something in the New York Times Sunday Magazine ment under the former Premier extended it before the that I thought was very fitting. And it talks about the 2012 election—something that I was not necessarily need for a new social compact between the various sanguine about myself, I must say. And so that pre- parts of our society. I will say it as that. We know what cludes us––because of the 2035 extension––from the old compact is—we are struggling with it now, the moving in a direction where we can ensure that the current status quo. And so, as I mentioned last week, larger corporate companies in Bermuda are paying we have a historic opportunity to craft a new social more to ease up the same small to medium-sized compact (this is how I am going to term it), one that businesses that, Mr. Cannonier, the Opposition Lead- will be consistent with our values as members of the er, talked about. Progressive Labour Party and, more importantly, our That is how we can get more fairness and eq- values as Bermudians. uity within our business community, in terms of the Earlier we heard the Minister, or the Opposi- business sector. But it can only happen if we can en- tion Leader, talk about the people who are overseas sure that the Dunkley’s Dairy conglomerate empire or . . . no, he talked about the need for us to grow our pays more proportionately than the person operating, population by increasing the numbers of work permits metaphorically speaking, the small mom-and-pop in our society. But there is hardly any mention as was store. mentioned or alluded to by some already that . . . what about the over 3,000 Bermudians who are no longer [Inaudible interjection] with us? And many of them are young Bermudians. Many of them black, but white as well, who are over- Mr. Rolfe Commissiong: Ashley’s Lemonade. I love seas in places like the UK. Many of whom left the Ashley’s Lemonade. I just do not . . . I like some, but I country because they became essentially economic have to say . . . you know, I have to be politically as- refugees in this country, outside of those who have tute here. I love it; but I would not like it as much if it gone for education. was down on the Shelly Bay Beach. But anywhere There are those who have actually picked up else, Ashley. sticks and left to live permanently in the UK. And I So, that is an issue. Now, having said that, I would say many of those people were economic refu- have had it confirmed that while that assurance is in gees. Unless we begin to get this right and recognise relation to corporate tax on earnings, there is nothing that this status quo is no longer serving us, and that it comparable with respect to personal income. And I has become an existential danger to us if continued to am not suggesting that we need to do that, but it is on maintain over the next few years, then unless we have the table, and should be, for consideration. realised that it has to go, and we need to judiciously Now, Mr. Deputy Speaker, I just want to go bring about these types of progressive reforms, I can down . . . how many minutes do I have left, Mr. Depu- get very pessimistic about Bermuda’s immediate fu- ty Speaker? ture. But this does give me cause for optimism. The The Deputy Speaker: Ten and a half. health care reform that is coming down the pike gives me cause for optimism. The course for living wage Mr. Rolfe Commissiong: Ten and a half, okay, I still gives me cause for optimism, and a reduction in the got some time. overall cost of living gives me cause for optimism in Mr. Deputy Speaker, I just want to say this, Bermuda. The fact that now and within the corporate that what I was really positive about . . . were two sector and IB you have people sounding like a Ewart things. I believe we need to get the proverbial monkey Brown and calling for inclusion and inclusivity and di- off the back of Bermuda’s low income, its poor, its versity, racial diversity within IB and our corporate middle class—which is shrinking. And I am happy that sector, gives me cause for optimism. The fact that the for person’s earning up to a $48,000 per annum, that PLP is now prepared to call for pay equity gives me they would not pay any payroll tax under this plan, cause for optimism. These are the things that will help under this recommendation. Whether it holds up as it us create a new social compact for Bermuda and we goes through the sausage factory of politics is another should make no apologies about it and pursue this matter. But, clearly, this is welcome. I would like to social justice agenda. see it a little higher, myself, to be honest about it, also, Thank you, Mr. Deputy Speaker. the move to reduce customs duty on staple foods and children’s clothing to 0.0 per cent. That should have The Deputy Speaker: Thank you. Any further speak- happened a long time ago. Just remember, as I said, ers? the burden that is placed on low-income and lower- The Chair will recognise the Honourable middle income people by way of customs duties, a Pearman from constituency 23 [sic]. land tax and payroll tax is phenomenal. Bermuda House of Assembly Official Hansard Report 7 December 2018 389

Mr. Scott Pearman: [Constituency] 22. Mr. Deputy Speaker, we all know about the law of unintended consequences. And the best thing The Deputy Speaker: [Constituency] 22. Thank you. that we can do, because we do not anticipate what Mr. Pearman, you have the floor. may happen by our actions, we do not know what is six or seven steps down the road, so the best we can Mr. Scott Pearman: Thank you, Deputy Speaker. do is to ask ourselves what might happen if we do Let me start, Deputy Speaker, by winding this this. back about five speakers to the Minister for Finance Now, the present-day facts are these: At the who began the debate. He presented this Tax Com- moment, we have the big three. We have the big three mission Reform in a way that was carefully and softly taxes. We have payroll, land tax and customs duty. spoken, projected at a high level. He spoke to this And no one—no one—likes to pay tax. But the posi- report, and he was brief. And I will try and emulate tive point about the big three that we have is that in that style of presentation now. theory they are relatively easy to collect. They are taken either at the point of entry, or they are taken The Deputy Speaker: It would be appreciated. from the employer, or they are taken from the land- owner. And they are relatively easy, in theory, to col- Mr. Scott Pearman: And I want to also look at this lect. based upon fundamental principles and not political Now, the Minister of Finance, when he point scoring. opened, recognised that in practice there may be Let me start by putting the report itself in con- large amounts of uncollected taxes. Indeed, I would text. And, if you permit me, Mr. Deputy Speaker, page go further, there are large amounts of uncollected tax- 11, paragraph 1.2.3, “For the avoidance of doubt, the es, and I think it would help if working together we all Commission has not addressed Government spend- agreed that. But in theory, it is an economic principle ing directly. This was not part of the Commission’s that when taxes are less complicated, more taxes are remit.” paid. The reverse is also true. When taxes are more So, this report is ignoring one of the major el- complicated, less taxes are paid. And the current ephants, namely government spending. But let us look three that we have, no matter their faults and their at this report. What is the problem that needs solving? flaws, are at least commendable in that they have the Simply put, we need to grow the economy and we beauty of not being that complicated. need to increase jobs. And, Mr. Deputy Speaker, both And I say that because we are moving from sides of the House recognise that. The current PLP the current big three in this proposal, or we may move Government recognises that in their drive to grow the (more accurately), to a big seven. What is being pro- FinTech industry. They recognise that more jobs are posed now—and there are more in here, but the lion’s needed. share of these are four new ones: a rental tax, a Gen- But, respectfully, Mr. Deputy Speaker, the eral Services Tax, a tax on interest and dividends, and solution being offered by this report does not solve the what I am going to call an outsourcing tax because problem that I have just identified, the problem that there is a little bit of confusion as to the nomenclature. Bermuda faces. And the reason I say that, again, Now, here is a fundamental problem. None of based upon fundamental principles, not politics, fun- those, save perhaps for the rental tax, are easily as- damental principles, is that taxing and spending does certainable and easily collectible and that is an issue not grow an economy. Taxing and spending does not that no doubt the Minister of Finance and his Junior grow jobs. Taxing and spending merely circulates ex- Minister and the Government in general will have to isting money, and that is a fundamental economic grapple with. principle. Let me quickly address each of the four and A few hard facts in relation to this report: The share my two cents, for what they are worth. After taxpaying population of Bermuda is shrinking. On that these taxes are in place there may be just one penny I think we can all agree. We need to be very careful left. about placing an increased tax burden on this shrink- The GST: If there is going to be a General ing population. On that, I think we can all agree. The Services Tax, and if it is going to be, if not welcomed, report, if enacted in the way that it is envisaged, and it then tolerated by business in Bermuda, then perhaps may not be, and the Minister of Finance rightly recog- consider whether or not the GST should apply only to nised that this is a menu and he may not choose cer- foreign purchasers of our services. Do not say to an tain things from this menu, but this is a projected new accounting firm or a doctor’s firm or a lawyer’s firm, tax burden if enacted in full in the region of $150 mil- and I declare my own interest both as a lawyer and a lion. That is a substantial burden to be placed on an taxpayer, do not say, Let’s place this additional tax increasingly shrinking taxpaying population. And there burden under a GST on everyone, because that is just is also the fundamental principle, which is that raising going to hurt Bermudians. Maybe, just look at the in- taxes in a faltering economy is dangerous economics. ternational providers of the services. It is just a recommendation. Bermuda House of Assembly 390 7 December 2018 Official Hansard Report

The tax on interest and dividends: I have al- grow the economy and to grow jobs. So, unintended ready addressed the House of Assembly on this be- consequences. Bermuda business will become more fore, and I do not need to repeat myself, but it is im- costly, and, potentially, Bermuda business will be- portant to recognise this key point on taxing dividends come less efficient. because there is a general sense, and it is wrong, that The Junior Minister made a comment about taxing dividends just hits the rich guy. Not at all, Mr. the cost of work permits in Cayman—and he was Deputy Speaker. Anyone who operates their business quite right. The cost of work permits in Cayman— through a company suffers from a dividend tax. Who is it on this Island, not the businesses, but who are the [Inaudible interjections] people on this Island who operate businesses through companies? Well, the answer is, those who need the Mr. Scott Pearman: Okay. The cost of work permits protection of limited liability—electricians, masons, in Cayman is considerably more expensive than the carpenters, people driving around in white vans with a cost of work permits here. But in Cayman there is no limited company. And how do they pay themselves, payroll and there is no tax on earnings. So, it swings because often they do not draw much of a salary? in roundabouts. They wait until the year end to see how their business Turning to the rental tax on commercial and has done during the year, and then they seek to pay residential property, a number of those on our side themselves from the profits of what they rightly see as have already pointed out how this is in fact double their business. And it is at that point that the dividend taxation, because land tax already taxes people on is what they are waiting for. It is the pre-Christmas the annual rental value of their property. The last money to themselves to support their family, to pat speaker before me pointed out how these costs would themselves on the back, metaphorically, since they be passed on to the renter. And, yes, they often are. worked hard and scrimped and saved all year. So, just But that does not grow Bermuda either, because if a remember that a tax on the dividends hits people who tenant, commercial or residential, finds their rents are operate through businesses. going up, it is a good reason for them to move on. Also remember that taxes on certain busi- In closing, just a few general points. These nesses in Bermuda, local businesses, when we are proposals at their heart mean more tax on Bermudi- not taxing international businesses, put a very large ans when there are less Bermudians to pay them. target on the chest of Bermuda in the eyes of the OECD and the EU, because they will come and say [Hon. Dennis P. Lister, Jr., Speaker, in the Chair] that is unfair tax treatment. You are preferring international business when you are not doing the same to Mr. Scott Pearman: Mr. Speaker, we need to attract local business. So again, the law of unintended con- more people to this Island, not chase them away with sequences; we may think that this is a good idea, but higher taxation. And it is not proposed, at least not then along comes a blacklist that we have tried so yet, that any new taxes, any big seven that might be hard to avoid as a jurisdiction. Another potential unin- implemented to supplement the current big three, tended consequence, if you are going to tax on divi- would be used to pay off Bermudian debt. So, re- dends and interest, then fewer people will be likely to spectfully, tax and spend is not a solution. invest in Bermuda and in Bermudians. Growing the economy and growing jobs is the Turning, and trying to keep this quick, to the solution that we need. We need more people here outsourcing. I must confess, Mr. Deputy Speaker, I did spending more money. And, Mr. Speaker, it is inter- not entirely understand the explanation that was (I do esting that today the Fiscal Responsibility Panel also not mean this disrespectfully) ventured by the Junior tabled their report in the House, because I would just Minister. I struggled with the analogy of $100 coming end with this observation, and it is on page 2 of the from a US lawyer and $95 going back. I am not sure report, second paragraph, and so important is it that why a US lawyer would take $95 back and not de- they have italicised it. “But perhaps of greatest con- mand the $100 they were paid. But, as I understand it, cern,” it says, this report, “But perhaps of greatest it is a tax on outsourcing. It is a tax on businesses that concern is the certainty of the island’s shrinking work- use other international businesses to help them grow force and rapidly ageing population.” their businesses. Mr. Speaker, if we are to grow the economy, if Now, Bermuda is 21 square miles. Bermuda we are to create jobs, more jobs for Bermudians, we businesses, the big ones, the ones that employ lots of do need more people here, and taxing the dwindling Bermudians, are trying to compete on the global numbers that remain is not the solution. stage. They are competing with these other business- Thank you, Mr. Speaker. es around the world. To deny them the opportunity to outsource where necessary, or to make it more diffi- The Speaker: Thank you, Honourable Member. cult or burdensome or expensive, ties the hands of Does any other Honourable Member wish to Bermudian businesses behind their backs and it does speak? not assist in their ability to grow their business, to Bermuda House of Assembly Official Hansard Report 7 December 2018 391

No other . . . We recognise the Honourable even encourage other people to come who were not Member from constituency 19. (if you will) in what I call the established business organisations, to be able to come and talk to the issues Hon. Jeanne J. Atherden: Hello— that were important to them. We also tried to go out and have consultations with the under-35s, the young The Speaker: Honourable Member— people who are out there who potentially will be impacted by this, because we do not know when the Hon. Jeanne J. Atherden: —Mr. Speaker— Finance Minister is going to pull the lever (and I call all these things levers), and how much of each lever he The Speaker: You have the floor. is going to pull. The bottom line is every one of these things, Hon. Jeanne J. Atherden: I think, recognising that I although we put a number there, every one of these did sit on the Commission I have a few observations things is something that could be operated. And just to make. And I think I am just going to observe them by changing it from 5 per cent to 6 per cent or 7 per in the context of the way the motion was laid. The mo- cent you can double the number and you can decide tion said: that you get rid of one potential tax and you have “WHEREAS the Honourable Members are something else. So, I am not suggesting that the Fi- mindful of the contents of the Report of the Tax Re- nance Minister is going to say that a certain one of form Commission 2018; these things is going to be implemented over some- BE IT RESOLVED that this Honourable thing else. I think we have to understand that it is a, if House carefully consider both the contents and the you will, a landscape that the Finance Minister can implications of the said report.” look at and say, What do I want to implement?, based And I think it is important that we talk about on some of the other parameters that he is going to the implications, because sometimes you are busy face at the time. And I say some of the other parame- looking at the content and you do not realise that the ters because the bottom line is that it is important to implications are what is going to be the operative understand that we have a choice. word. Because once it is out there it is up to the Minis- We have what I call a consumption-based ter of Finance to decide which, if any, and how much economy. Our tax system here is based on what you of any of the recommendations he wants to imple- consume whether it be the goods that come in that ment. And that is why I am just going to concentrate are subject to duty or whether it be when you are go- just for a few minutes on what I believe are implica- ing abroad, whether it also be the, sort of, the land tax tions because I recognise that when the Finance Min- . . . some of these things are more what I call con- ister put together the Commission, there were some sumption based rather than income tax. parameters that were put, and I think it is important for Now, we know that in some other countries us here and also for Mr. and Mrs. Bermuda to under- there is a mix of income tax and consumption tax. And stand that, you know, there were some guidelines. in the past, I think we have always been able to say to There were some guidelines that we had to help us ourselves that we could stand up and we could say address and deal with all the vexing questions that we proudly that Bermuda does not have income tax. But I have to ask. think you would also have to acknowledge, although And I am just, if you could allow me, Mr. you do not have income tax, there are ways in which Speaker, just going to observe a few things from the taxes have been collected. And in some respects, it is report. The questions that have to be considered, as it a form of saying [it is] tax on something that you have says in the report, are the following [1.2.14]: earned and therefore on your income. • Are the tax measures fair? Are they simple But I think we have proudly been able to say and easily understood? to people abroad that do have income tax where they • Do all tax payers contribute their fair share to sit down, and they fill out [and list] everything that they the public purse? own, everything that they earn, and they have dollars • Is the tax base broad and resilient enough to . . . so we have tread this fine line. And I think, Mr. withstand global and local economic or other Speaker, this report reminds us that the majority of shocks to the system? developed economies have a combination of taxes on And I think, if you put that in the context of the income and taxes on consumption. And all it is doing Commission which was then directed to go and look is making Bermuda and the Minister aware of different at the tax structure, look at the Bermuda economy and types of consumption tax, or different types of income to come up with some recommendations, at least you tax, that he can decide to either increase or reduce. can understand when you start to read the report And as I said before, he can decide, based on what again how some of these things were developed. he has to achieve in terms of the amount of revenue We were very fortunate in being able to reach that he has to try and find in any one year or in any out to Mr. and Mrs. Bermuda, Mr. and Mrs. Business one period which pieces of it [to choose]. Bermuda, the ABIC, the ABIR, the retail sections, and Bermuda House of Assembly 392 7 December 2018 Official Hansard Report

Now, I think it is important for us to recognise taxed, then all you are doing is turning around and that when we had the conversation in terms of the Tax what you are saying is that the small base that you Commission, and we said it right in our report, we did have there, more people have to pay more—the same not get into a discussion [about] government spend- number of people have to pay more in order to get the ing, how efficient the government was on spending, higher amount. And you know that if you do not want and also what [amounts] of money the government to do that, the bottom line says get more people and needed to achieve because that is something that the you can spread it around and everybody pays less. Finance Minister of the day is going to have to. When And I know that very carefully. And I say this he decides to introduce any of these taxes, he is go- because I know that when we started to look at health ing to have to say to the people of Bermuda, I need to that we were going along, we had a bigger base of raise this amount of money and this is why we need to individuals who were sharing the health expenditure, raise it. And the people of Bermuda all the time have and it meant that the premiums could go down be- to be looking at the government and saying, How effi- cause the expenditure was spread around. It is the cient are you, government? What are you spending same principle with respect to taxes. If you can get our money on? Do we feel that we are getting value more people in here . . . and I say more people in here for money? Are we happy then in you telling us that by growing businesses, by having people here who you are going to introduce this tax and you are going can employ Bermudians. Because the bottom line is to include this one and lower this other? So, it is still in you want people to be on the Island. You want Ber- the hands of the Finance Minister, but it is also in the mudians to be employed and you want them to be hands of the people. paying payroll tax because they have a job as op- From the perspective of revenues, govern- posed to not being able to pay payroll tax, or paying ment revenues have always been raised to take care payroll tax on a shrinking . . . on a shrinking revenue of government programmes. And always the people of and therefore feeling, how can I make ends meet? Bermuda should be looking at the revenues that have been raised and how efficient and how well they have The Speaker: Mm-hmm. been spent. And that is why, when you talk about in the report and also in the Fiscal Responsibility Panel, Hon. Jeanne J. Atherden: So, we know that it is im- you see people like . . . our Tax Commission said that portant. we have not opined on how efficient government is or So when I hear each one of us talking and how much revenue they need to achieve. But we un- saying to the Finance Minister the fact that we believe derstood the relationship between raising revenue and that it is important when he looks at all of this, to be spending. reminded of the fact that these levers are just oppor- And also the Fiscal Responsibility Panel said tunities to raise revenue, but more people having . . . very clearly that it is important for the Government to your tax base, if it is increased by the people that are understand that if they do not start to pay attention to working here, then it makes it easier and it also makes the efficiencies, the government efficiencies, then they it fairer for people in Bermuda, because the other side are going to have some negative knock-on effect with of this, when we talked about this, was to hold the respect to the people of Bermuda. question of trying to make it fair and trying to make it We said, and I know that it has been said equitable. And it is difficult when you start trying to go even more clearly, that another paramount issue is from a system that is in place to potentially look at the question of the deficit of the country and the deficit another system. And I think if you start to look at what and the amount of debt that we have. We had to at the Tax Commission is saying, that in some cases least recognise that it was there because if we did not there has been an indication . . . if you read some of recognise that it was there we would not be recognis- the information that is in this book, there is a sugges- ing, one, why the Commission was being given a di- tion that you might have one type of tax and . . . let us rective to raise a certain amount of GDP—a certain just say you are talking about the tax on terms of land amount of revenue to a certain level of GDP. But I am tax, that is a tax on your property. But the other tax, saying that when you are tasked to do that, you have which is the tax on your rental incomes . . . I heard to recognise that the other side of the lever, potential- people sort of saying that is double taxation. ly, is to be more efficient. And then you do not have to Well, anything that you have as a tax, it does have as much revenue. not matter. A tax is a tax. And if you start to say reduc- So, I think that we know that we cannot do ing one and increasing another . . . the bottom line in anything, as it says in the report, that we did not want the end is that you are supposed to be revenue gen- the risk of a downgrade. And I think that the point that erating and some taxes, when we start talking about we want to make . . . and for me personally, I think consumption and some taxes when you start talking this is something that has been very strong from my about income, they potentially can go after the same perspective. Unless you get more people on the Is- item. But they are a different direction in which you land, unless we start to grow the base on which the are trying to look at it. You are trying to look at some- taxes are, the taxes are . . . the people that are being thing that says that on the one hand it is a consump- Bermuda House of Assembly Official Hansard Report 7 December 2018 393

tion and on the other hand it is income. I think that we our report, was being discussed. I think we have to have to understand that. recognise that some of the things here we will be able The other concern that has been raised, and I to compare to what is happening in other jurisdictions, say that because I know that from the Commission’s and the Finance Minister will have to make his deci- point of view, and I also know from the perspective of sion on whether he believes it is appropriate or not. the Fiscal Responsibility Panel, it does not make any But I think that the bottom line that we all have to keep sense for us to start to make suggestions about col- working towards is the fact that the amount of tax that lecting tax or raising revenue if we are not able to any Finance Minister will have to raise will be directly make sure that the taxes are collected. And you see in related to the expenditure that he is having to cover. the Commission booklet a lot of information has been And the more efficient a Finance Minister could be, put out in terms of the office of the Tax Commissioner. then it means the better . . . the less tax that he will How is it going to be structured? How is it going to be have to raise and therefore by, by . . . as an automatic able to make sure that they can collect these taxes? by-product of that then it means his citizens will have Because I have something that I say, and I say often to pay less tax and be happier people. because it is coming from my auditing days, that you I think that we all want to make sure that there have a single point of failure. And what that means is is fairness here. And when you started to look at some if there is something that, regardless of what you do, of the exemptions that have been put in place, one when it gets to that point, it fails. Then we always look based on information which talks about people at the around and see people making changes to systems lower end of the scale and making sure that if they are and the point where it fails is still there in the middle. not able, if they are already struggling to make ends And, therefore, you have gone all around thinking you meet, then why should we add the burden. Why have done something really great, but the single point should we burden them? And therefore, that is why of failure is still in the middle, which means that you some of the exemptions have been put forward. have made all sorts of changes and nothing, nothing Also, I think there is a belief that when you good is going to come out of it because the failure is start looking at fairness, you know, there are some there. And that is why, I think, that it is important for us people who sort of talk about a person’s ability to pay to understand that the office of the Tax Commissioner versus a person’s ability to be able to . . . pay more. is very important. And I know that we have had discussions from the Now, the suggestions are here being made point of view of health care, where it has been sug- effective to consolidate—consolidate departments that gested should everybody pay the same for health are collecting tax—because the bottom line is in most care. I will put my former Health Minister hat on. I cases the individual, it is an individual who is there have had some people come and say, Well, I do not that is being taxed in many, many ways, whether it be want to have a government subsidy because I can the tax that you pay because you are having a car, or pay for it. I would much prefer to have people who whether it is the tax that you pay with respect with be- cannot pay it have the money. And I think over time I ing able to get a licence to have property, or the tax actually do believe that most people in Bermuda want that you pay to be able to have an Airbnb. All of these fairness. I think most people in Bermuda feel that they things are forms of taxation. And when I look at it from are not their brother’s keeper, but they understand this perspective, I do not differentiate between the that if someone is genuinely working and trying to types. All I say is that it is the Government of the day make ends meet and they are not able to, they should figuring out a way to collect money from its citizens to be able to be given some sort of benefit so that their generate the revenues to pay for all of the expenses, family can be able to live properly on the Island. all of the services that they have to offer. We want everybody on this Island who is And so, if you start looking at the fact that if making a contribution to be able to say, Well, the sys- we start focusing on individuals, then you will see that tem works for me and at least I can feel that as long I if someone keeps track of an individual and everything am a contributor, then I am being treated fairly. that they have to pay, whether it be a social insur- So, I think, Mr. Speaker, what I want to say is ance, your payroll tax, they keep track of all of these the fact that I will be intrigued to see how the Finance things they will be able to see how when people get Minister makes some decisions. And as I said going behind, when people start to owe money to Govern- back from when I started from the beginning, the im- ment, and then you will start to see that it is important plication of this is something that is important. It is im- for us not to put in new taxes, which are either overly portant for him and for us to understand that, as I say, complex or they have difficulty with collections. Be- all of these things are options. They are options for cause if you generate all this money and you do not the Finance Minister to decide whether he is going to have it, then Government cannot use these monies to actually implement all or none, some of this, part of it, turn around and pay their bills or pay their staff. in greater numbers or lesser numbers, but it does So, when you started to look at the Fiscal Re- come down to the fact that if you look at what the Fis- sponsibility Panel, which I think it was fortuitous that cal Responsibility Panel said . . . and if you allow me, the report was tabled just at the time when this report, Mr. Speaker, just to say two things. Bermuda House of Assembly 394 7 December 2018 Official Hansard Report

The panel said, “We would be cautious in as- mentary colleague, had the best interests of Bermuda suming that the time frames envisioned by the TRC— at heart. And I just want to acknowledge their hard essentially 18-24 months for most of the policy re- work and dedication because they dedicated a lot of forms—are realistic.” And they also made the sugges- time and effort into this. tion that, and as we said before, that the office of the So, there are nine existing taxes that the Tax Commissioner would need so many more staff. Commission has recommended be reformed. Those And the last thing, I think, which I think I have recog- are: nised and most of us probably will have to do, “[Most] 1. Payroll Tax, which will eliminate the rate of the proposals are perhaps best seen as steps to- for person’s earning $48,000 and under. wards an eventual move to a more conventional sys- 2. There will be a tax on owner-manager de- tem of in-come and sales taxation.” clared dividends. Now, I do not know, I mean, that is something 3. Custom Duty. The aim will be to reduce Bermuda, as I say, we have always said that we the cost of staple food items and chil- would never have income tax. But I remember when dren’s clothing. my Leader was talking about sales taxation as being a 4. Excise Tax. The goal will be to increase fairer way of having people pay, paying for the tax at the tax on wine and beer. the time of sale. You know, as I say, if you look at 5. Land Tax. There would be a restructuring these, if you look at this last statement, it just raises of the land tax. something very interesting from the perspective of a 6. Financial Services, Banks and Insurers. step towards an eventual move to a more convention- The goal would be to increase the tax for al system of income and sales taxation. banks and insurance fees. So, I think, Mr. Speaker, the report is there. 7. Foreign Currency Purchase Tax. The goal The contents are there, and it is the implications of would be to increase the rate to 1.75 per this report [which are] going to be something that the cent for individuals and companies. Finance Minister will have to look at. And I think that 8. International Company Fees. The goal Bermuda and all of us will be looking for him to come would be to align the fees with a compa- back and tell us over time which pieces he will start to ny’s assessed capital. use and why. But I think the bottom line is that we re- 9. Immigration Fees. The goal would be to ally do need more jobs and we need an efficient Gov- increase fees to generate more revenue. ernment. Now, there are five new taxes being pro- Thank you, Mr. Speaker. posed. 1. Commercial Rental Tax. This tax will be The Speaker: Thank you, Honourable— based on the annual rental value of the commercial property. [No audio: 06:46:45 – 06:46:49] 2. Residential Rental Tax. There would be a charge for that. The Speaker: Honourable Member Richards, you 3. The General Services Tax would be a flat have the floor. tax based on value of local services. 4. Withholding Tax for Managed Services. Mr. Sylvan D. Richards, Jr.: Thank you. Thank you, This would be a flat tax based on over- Mr. Speaker. seas services provided locally. Mr. Speaker, I am going to try and keep my 5. Withholding Tax for Dividend and Interest. comments at a 40,000 foot level because there is a lot This would be a flat tax on the value of of information in this Tax Reform Commission book, dividends and interest. which has been passed out today. And I am sure that This last one, I am going to jump ahead a bit, the members of the public who are listening and even number five, the withholding tax for dividend and in- those who are not listening tonight will be able to go terest. Interestingly enough, it only applies to local through it and absorb it at their leisure. businesses. It does not apply to exempt company With your indulgence, Mr. Speaker, I would business, or what is commonly known as international like to just lay out for the listening public the nine ex- business. This one is problematic for me. Okay? And isting taxes to be reformed and the five new taxes that . . . I am just trying to find my notes, because I have are proposed so that folks can get an idea of exactly written all over this booklet. But basically, because what the Tax Reform Commission came up with. And international business is exempt, local business is before I do that, I do want to commend the effort that being treated differently from international business. has been put into this exercise. I personally know And when you have this difference, it is basi- some of the individuals involved. I have had conversa- cally saying that Bermuda is a tax haven because you tions with them over the last few months about their are giving a break to international business, but you activities, the consultation process. So, I know that the are charging local businesses the tax. This is very, folks who were involved in this, including my parlia- very problematic. And I am actually surprised that this Bermuda House of Assembly Official Hansard Report 7 December 2018 395

has not been highlighted in the Tax Reform Commis- number of different reasons. There is no real stimulus sion. But it is something that has been picked up on. going on in the economy right now. We have had I am going to dive into the book. So, let us shrinking retail sales for consecutive quarters. So my start with the premise. What are taxes for? Govern- fear is that implementing tax hikes when your econo- ments tax to fund government operations and pro- my is shrinking . . . it is going to accelerate that. grammes. It is a necessary function of government. Taxes are effective when they are implement- Government has bills, they have payroll to pay, so ed in times of growth—when the economy is strong, people are taxed. And people pay taxes to the extent when jobs are being created, when there is an ability that government operations and programmes require. to pay. Also, it states in the book, on page 11, section Governments are not in business for profit. They are 1.2.3, and I will quote, it states: “For the avoidance of there to make just enough money to fund their ex- doubt, the Commission has not addressed Govern- penses. ment spending directly. This was not part of the My fear is that with the $147 million that is Commission’s remit. However, due to overlap of being targeted that this money if there is— cross-cutting issues, some of the recommendations submitted by the Commission have touched on Gov- Hon. Curtis L. Dickinson: Mr. Speaker, point of or- ernment expenditures.” der, please. As far as I am concerned, this is a major flaw with the Tax Reform Commission report. And I have to Mr. Sylvan D. Richards, Jr.: Sure, go ahead. assume that they were instructed to not consider government spending directly. But when I look at this re- The Speaker: Yield for a point of order. port and I see that government spending is not ad- Yes, Minister? dressed at all, it gives me concern.

POINT OF ORDER Hon. Curtis L. Dickinson: Mr. Speaker, point of order. Curtis L. Dickinson: The $147 million represents the aggregate on the taxes that are being proposed by the The Speaker: I will take your point of order. Tax Reform Commission. It does not represent the amount of new taxes that the Government may or POINT OF ORDER may not decide to implement. Hon. Curtis L. Dickinson: Page 66 of the Tax Re- The Speaker: Thank you. form Commission’s report sets out the terms of refer- Member? ence. There is no need to make any assumptions. Just read page 69— Mr. Sylvan D. Richards, Jr.: Point is taken. The Speaker: Thank you. The Speaker: Okay. Continue on then. Hon. Curtis L. Dickinson: —[page] 66, I am sorry. Mr. Sylvan D. Richards, Jr.: But the argument that I am making is that governments, regardless of what [Inaudible interjections] the surpluses are, have a tendency to spend the surplus. Okay? When we budget . . . departments get Mr. Sylvan D. Richards, Jr.: Mr. Speaker— financing and, coming down to the end of the year, if that money has not been spent, they will find a way to The Speaker: Continue on, continue on, Member. spend it. That is just the way governments work. And my concern is that if these taxes are implemented and Mr. Sylvan D. Richards, Jr.: The Tax Reform Com- there is a surplus, will it be used to pay down the defi- mittee recommendations, as I stated, will negatively cit? Who knows. I think that government will grow to impact GDP growth. I will reiterate. Bermuda’s econ- spend that money. omy has stalled, and I believe is in a downward trajec- Then you have to think of the effect that taxes tory. And raising taxes in the midst of a faltering econ- have on the overall economy. It is a simple equation, omy is bad economic policy. Mr. Speaker. When you raise taxes, there is a de- The Tax Reform Committee completely ig- crease in economic activity. When you lower taxes, nores the effects of taxes on the overall economy. The there is an increase in economic activity. Put another fragile state of our current economy has not been fac- way, tax hikes dampen GDP growth. Tax cuts stimu- tored into the taxes that the Government will consider late GDP growth. implementing. So, we have an economy right now in Bermu- Also, on page 13 of the report, section 1.2.24. da, and I have spoken on this in the House previously, It is an interesting paragraph and is very topical. And I that our economy appears to be slowing down for a will quote, it states, “The reasons for the exodus of Bermuda House of Assembly 396 7 December 2018 Official Hansard Report

Bermudians and expatriate workers remain conten- What I hear, Mr. Speaker, is that there is one tious. The central points of debate include, inter alia, side, which is protecting the status quo, and there is the perception that there is a lack of suitable employ- another side which wants to change things to make ment opportunities for Bermudians with qualifications sure that we lower taxes for workers, lower taxes for and relevant skill sets, the difficulties that highly- the low-income people, and possibly tax those per- skilled expatriate workers often experience when deal- sons who may be a little bit more wealthy whose in- ing with the Department of Immigration, mainly with come has never been subject to taxation. respect to the work permit process and related matters, and the belief that such difficulties inhibit the free An Hon. Member: Exactly. flow of ‘job creators’ into Bermuda.” Mr. Speaker, we have a situation where our Hon. E. David Burt: It is a very simple premise, Mr. population is shrinking. We have a low birth rate and Speaker. It is about fairness. It is about equality. And an ageing population. I believe that until we deal with it is about recognising that we have the most regres- our shrinking population, having a discussion about sive tax system on the planet. We are the only country implementing more taxation on the public is going to where after you make a certain amount of money you be a difficult one. It is kind of like putting the cart be- stop paying taxes. fore the horse. If Bermuda’s economy was improving, I would An Hon. Member: There you go. feel more comfortable having this discussion. And I wonder, and I ask myself, are there Members on the Hon. E. David Burt: Now, I know that there are Mem- other side who share the same concerns I have. Be- bers on that side who may make $900,000 a year, cause, as far as I am concerned, this is not political; and who may be subject to this. I understand that this is our economy and the country. And the Gov- there are Members on this side who may have sizea- ernment would be wise to carefully, carefully consider ble dividends coming into their pockets which hereto- which of these recommendations they are going to fore have never been taxed, while the workers in their implement. companies pay taxes on every single dime they get Mr. Speaker, with that being said, I will take out of a company, Mr. Speaker. That is the unfairness my seat. we are here to address, Mr. Speaker. Now, again, this Tax Reform Commission re- The Speaker: Thank you, Honourable Member. port has recommendations. It was a bipartisan com- Does any other Honourable Member wish to mittee. And if you look, Mr. Speaker, at the number of speak? No other Honourable Member . . . Premier? meetings they held, those commissioners should be thanked. They did a thorough job. They examined all Hon. E. David Burt: Thank you, Mr. Speaker. of the taxes which exist. And they made recommenda- Mr. Speaker, it would be remiss of me, as at tions only for taxes to be introduced, that existing tax- one time I did serve as the Minister of Finance of this es be reformed, and [they made] recommendations to country, to not speak on a report which I was respon- enhance the system of revenue collection inside of the sible for piloting legislation through this House to country, Mr. Speaker. make sure it became a reality. And as is often said in The purpose of bringing this motion was this House, Mr. Speaker, what the Progressive Labour hopefully to hear from the House as to what they Party promises on election platforms it delivers insofar thought was a good idea, and what they thought was as legislation and action inside of this House. We a bad idea. I heard contributions from some people promised that we would create a Tax Reform Com- talking about the fact that we never touched spending. mission and we did create a Tax Reform Commission. Well guess what? The SAGE Commission never The Tax Reform Commission was a bipartisan com- touched revenue either. mission, represented by Members of both sides of the political divide to come up with and examine our sys- [Desk thumping] tem of taxation and to recommend changes to taxes. What I find interesting, Mr. Speaker, is that Hon. E. David Burt: It was not meant to address the contribution which has come from that side of the spending. aisle, as typical, are political and not looking at the We came to this House and we passed a Bill actual recommendations, without recognising that which set up a Tax Reform Commission, and it had a there are recommendations to cut some taxes and to very specific mandate. We debated that mandate and also increase others . . . this is about making our tax now we have this particular report. And it would have system more fair and more balanced. And the ques- been my hope that we would have heard a little bit tion we have to ask is whether or not there is support more about what we like and what we do not like. on both sides of the aisle for making our tax system However, we will go ahead, the Minister of Finance more fair and more balanced. when he is putting together the Budget will consult, I am assuming, through the pre-budget process, and Bermuda House of Assembly Official Hansard Report 7 December 2018 397 there will be a signalling as to which recommenda- Hon. E. David Burt: I am just saying, most people do tions will be accepted and which will not. not. Now, here is what I will say, Mr. Speaker. And But this is a question of what is right and what this is just me, because I am like everyone else and I is fair. Because when we hear the conversations from will express my opinion on the report, as this is the Honourable Members talking about the things which debate on the report. The premise of the report is need to be done, talking about the facts of the invest- sound, to make our system of taxation more fair. ments which need to be made, we have to balance Whether or not I think we need to go from 17 per cent the need to freeze spending at current levels, which revenue collection up to 20 per cent revenue collec- the Government pledged to do, and which we are on tion of GDP, is debatable. I believe that there may be track to do, and also make sure that we can make our some more revenue that is needed. But I also believe taxation system more fair to encourage additional em- that there are spaces for reduction in taxes that can ployment in Bermuda. happen. And so, when we have a report which basi- Now, as the Junior Minister of Finance said, cally says that we are going to eliminate taxes on the one of the things that this Government has always first $48,000 of income from labour, I think that is a stated is that payroll taxes are an inhibitor to job good idea. And I would have hoped that this would growth. And, therefore, this is recommending an over- have had support from both sides of the aisle. all reduction in the yield from payroll taxes. That is At the same point in time when we are looking something that is positive, Mr. Speaker. That is some- at making sure that those who own more and have thing that will return money to many people’s pockets. additional revenue have the opportunity to pay more, And I hope that it is something that can be supported then I think that is also something we should also look across the board. In addition, certain reductions to at. things such as custom duties and others are things Now, I know that there are certain things which I think would be supported across the board. At which may be controversial, Mr. Speaker. But let me the same time, some types of new taxes or revisions tell you a story and it rather surprised me. It was about of taxes, which could mean that those persons who a year ago, I was at KPMG, I believe it was. And there can afford to pay more actually are paying more, are was actually a discussion about taxes. And I think this also things that we would hope would be accepted by was before the last Budget when I was the Minister of both sides of the aisle. Finance and there was this entire debate over the pro- But the reason I got up today, Mr. Speaker, fessional services tax, and what the professional ser- was not to talk to specifics. The reason I got up today vices tax would look like. And we have to remember was to thank the seven commissioners who spent an that the new form of taxes on local drawings from awful amount of time carrying out their mandate. This owner-managed companies, which the Honourable report is a quality report. It has a lot of food for Member for constituency 22 is always talking about, is thought. It has a lot of items that should be digested something that came out of the discussions with the by both sides of the House. And I look forward to Feb- local law firms . . . sorry, with the local accounting ruary, understanding what the Minister of Finance will firms. And at that meeting, one of the things which put forward for the changes which are necessary. they said, which I thought was interesting, was it is Yes, we need to make our tax system more fair; yes, very interesting that in Bermuda, as in other countries, we need to reduce taxes in certain places. And if you there is not a tax on rental income. And they said that reduce taxes in some places you need to make up for this was something that was common in many other that shortfall in others. places. There are some persons who are saying, and Now, Mr. Speaker, I recognise entirely that seemingly forget, that the One Bermuda Alliance dou- this is controversial. And I recognise entirely that the bled taxes on energy. last thing I want to be doing is taxing the people of constituency 18 who have an apartment or two behind Some Hon. Members: Aah! their house and are now going to say they don’t want to be taxed. But guess what? This recommendation Hon. E. David Burt: Some people forget. does not contain that. This recommendation contains Energy taxes doubled. So now we talk about a recommendation for a tax that is over $90,000 ARV high energy costs. So, if we reduce the amount of . So, if you have a collective ARV that is over that taxes paid on energy, then you have to make up that amount, that means that you have a property, or a revenue somewhere else. And the question is, where? collection of properties, that is over $2 million. Now, And if you are unable to stand up and at least say one most people in this country do not have properties that of the proposals you support on that side, and just go are over $2 million, Mr. Speaker. with a simple political pabulum of saying, Oh, well, you know increase in taxes and this, that and all the [Inaudible interjection] rest, economy here, there and there, you are not con- tributing to the debate, Mr. Speaker. The fact is that our tax system must be reformed, this Parliament Bermuda House of Assembly 398 7 December 2018 Official Hansard Report passed an Act to reform the tax system to set up a Hon. E. David Burt: So, our record is clear. We un- commission to examine it. They came back with a de- derstand precisely what it is that we have to do. There tailed report on a number of options that can be con- is a reason why the Minister of Finance and I can go sidered. And the very expectation I would have is that to Wall Street and get a tighter spread than the former at least something will come . . . maybe the former Government got on raising money. And that is be- Leader of the Opposition, who was a member of the cause there is a reason why we can have independ- commission will actually speak on it, and tell us her ent assessments that will upgrade our economic out- thoughts so we can hear— look for the first time in 12 years, Mr. Speaker. Be- cause they understand, with our commitment to eco- [Inaudible interjection] nomic diversification, with our commitment to reducing taxes on employment, and on our commitment to Hon. E. David Burt: Oh, she did. Okay. That means I making sure that our economy is more fair, that we was missing. are on the right track, Mr. Speaker. So, with that, I want to thank the members of An Hon. Member: She did a great job. the commission. The seven of them took an incredible amount of time. It was not volunteer work, of course, Hon. E. David Burt: Oh, she did? but it was an incredible amount of time and energy which they put into this report, and I am thankful for Some Hon. Members: Yes. their contribution. I am happy that they took the task on with fervour and made sure they came up with a An Hon. Member: She was conciliatory. very meaty set of recommendations of which we can consider in order to make our taxes more fair. [Inaudible interjections] We promised a fairer and better Bermuda, Mr. Speaker. And there are a lot of recommendations in- Hon. E. David Burt: Oh, she was conciliatory. side of this particular report which can lead us to the fairer and better Bermuda. And for that I am grateful. [Inaudible interjection] Thank you, Mr. Speaker.

Hon. E. David Burt: I hope the other Members on her [Desk thumping] side that I heard were just as conciliatory. The Speaker: Thank you, Mr. Premier. [Inaudible interjections] Does any other Honourable Member wish to speak? No, Honourable Member wishes to speak? Some Hon. Members: We were. That brings this matter to a close.

The Speaker: Premier, direct your comments this [The House took note of the Report of the Tax Reform way. You may get yourself out of trouble. How’s that? Commission 2018.]

[Inaudible interjections] The Speaker: We now move . . . no, no, it’s a take note. The Speaker: Direct them this way. Come this way. [Inaudible interjections] Hon. E. David Burt: Mr. Speaker, the Opposition Leader says he does not know what I am talking The Speaker: It’s a take note. about. I will remind him. We now move on. I understand that the other I will remind him of the comments that I heard three matters on the Order Paper are being carried from numerous Members on that side talking about over. So, we are now down to the third readings. the fact that taxes are too high, how the economy is in Ministers, would you like to do your third read- bad shape, how X, Y, and Z and all the rest, and talk- ings? ing about spending and different things, as opposed to focusing on exactly what was exactly inside of this Hon. Curtis L. Dickinson: Mr. Speaker, I have three particular report. And if we want to talk about spend- items, shall I do them consecutively? ing, Mr. Speaker, I shall remind the Members opposite that we inherited additional spending that was un- The Speaker: Yes. budgeted from that side, and we beat their budget targets. That is what happened last year. SUSPENSION OF STANDING ORDER 21

[Desk thumping] Hon. Curtis L. Dickinson: I move that Standing Or- der 21 be suspended to enable me to move the Bill Bermuda House of Assembly Official Hansard Report 7 December 2018 399

entitled Investment Funds Amendment Act 2018 to be SUSPENSION OF STANDING ORDER 21 now read a third time by its title only. Hon. Curtis L. Dickinson: Mr. Speaker, I move that The Speaker: Any objections? Standing Order 21 be suspended to enable me to No objections. Continue. move the Bill entitled Insurance Amendment Act 2018 to be now read a third time by its title only. [Motion carried: Standing Order 21 suspended.] The Speaker: Any objections? BILL No objections. Continue.

THIRD READING [Motion carried: Standing Order 21 suspended.]

INVESTMENT FUNDS AMENDMENT ACT 2018 BILL

Hon. Curtis L. Dickinson: I move that the Bill be now THIRD READING read a third time by its title only and passed. INSURANCE AMENDMENT ACT 2018 The Speaker: Any objections? No objections. Passed. Hon. Curtis L. Dickinson: I move that the Bill be now read a third time by its title only and passed. [Motion carried: The Investment Funds Amendment Act 2018 was read a third time and passed.] The Speaker: Are there any objections? No objections. Said matter has passed. The Speaker: Continue to the next one. [Motion carried: The Insurance Amendment Act 2018 SUSPENSION OF STANDING ORDER 21 was read a third time and passed.]

Hon. Curtis L. Dickinson: Mr. Speaker, I move that The Speaker: Minister of Health. Standing Order 21 be suspended to enable me to move the Bill entitled Bermuda Monetary Authority Hon. Walter H. Roban: Mr. Speaker, on behalf of the Amendment (No. 3) Act 2018 to be now read a third Minister of Health— time by its title only. The Speaker: Yes. The Speaker: Any objections? No objections. Continue. SUSPENSION OF STANDING ORDER 21

[Motion carried: Standing Order 21 suspended.] Hon. Walter H. Roban: I move that Standing Order 21 be suspended to enable me to move that the Bill BILL entitled the Chief Medical Officer (Transfer of Func- tions and Validation) Act 2018 be now read a third THIRD READING time by its title only.

Any objections? BERMUDA MONETARY AUTHORITY AMENDMENT The Speaker: No objections. Continue. (NO. 3) ACT 2018

[Motion carried: Standing Order 21 suspended.] Hon. Curtis L. Dickinson: I move that the Bill be now read a third time by its title only and passed. BILL The Speaker: Any objections? No objections. So passed. THIRD READING

[Motion carried: The Bermuda Monetary Authority CHIEF MEDICAL OFFICER (TRANSFER OF Amendment (No. 3) Act 2018 was read a third time FUNCTIONS AND VALIDATION) ACT 2018 and passed.] Hon. Walter H. Roban: I move that the Bill be now The Speaker: Continue with your next one. read a third time by its title only and passed.

The Speaker: Any objections?

Bermuda House of Assembly 400 7 December 2018 Official Hansard Report

No objections. It is now passed. DOCKYARD PREFAB HOUSES—REBUTTAL BY MP MONIZ TO MINISTERIAL STATEMENT [Motion carried: The Chief Medical Officer (Transfer of Functions and Validation) Act 2018 was read a third Hon. Derrick V. Burgess, Sr.: Mr. Speaker, this time and passed.] morning we had a [Personal] Explanation based on a Statement the Minister of Public Works and Engineer- SUSPENSION OF STANDING ORDER 21 ing made two weeks ago. In the [Personal Explana- tion] it says that the former Government saved the Hon. Walter H. Roban: I move that Standing Order public $11 million by not building the 100 houses that 21 be suspended to enable me to move that the Bill we had contracted to build for $36 million, and, con- entitled the Allied Health Professions Act 2018 be now sequently, only 20 houses were built for $25 million. read a third time by its title only. Mr. Speaker, that is $1.25 million per unit for apartments that are roughly around 1,200 square feet. The Speaker: Any objections? Mr. Speaker, what really surprises me is that No objections. Continue, Minister. the Auditor General made no comment (and I have made this statement already) on this. And, you know, [Motion carried: Standing Order 21 suspended.] they come under the authority of Government House. And based on these are facts that they spent $25 mil- BILL lion on 20 units. But Government House can order an investigation into a former Premier of this country THIRD READING based on an allegation, an investigation that has been [going on for] over eight years, and has cost the taxpayers millions of dollars, but [no investigation on the] ALLIED HEALTH PROFESSIONS ACT 2018 20 units—that were originally priced to cost $360,000—that ended up costing $1.25 million per Hon. Walter H. Roban: I move that the Bill be now read a third time by its title only and passed. unit.

Unbelievable. The Speaker: Any objections? An Hon. Member: No objections. The Bill is now passed. Hon. Derrick V. Burgess, Sr.: In the Statement that [Motion carried: The Allied Health Professions Act the former Minister of the OBA made at the time for 2018 was read a third time and passed.] the OBA Government, it said nothing about the cost, what it actually cost to build those 20 units, Mr. Speaker. And that is what I find quite amazing, that The Speaker: Mr. Premier. the former Minister at that time from the OBA Gov- ADJOURNMENT ernment wanted us to accept that it is okay to build 20 units for $25 million and then make a statement that he saved the taxpayers $11 million. It makes no Hon. E. David Burt: Good evening, Mr. Speaker. sense. I move that the House do now adjourn until th If we were going to build 100 for $36 million Friday, December 14 . and we end up building 20 for $25 million, . . . that is

th not a savings. Anybody that can count from one to ten The Speaker: December 14 . will understand that, Mr. Speaker. Does any Honourable Member wish to speak So, Mr. Speaker, the [Personal Explanation] to that? this morning even called for the Honourable Minister Deputy, would you . . . Deputy, I thought you Burch to apologise—apologise for giving facts to the were backing out to leave that time. people of this country. How can you apologise when you are giving the facts, that you built 20 for this Hon. Derrick V. Burgess, Sr.: Well I— amount of money? There is no apology necessary here, Mr. Speaker. The Speaker: I recognise the Deputy Speaker. The apology really should have come from the Deputy Speaker, you have the floor. [Personal Explanation] that was delivered this morning, because we have not been told . . . he has not Hon. Derrick V. Burgess, Sr.: I would think after I said . . . nothing has been addressed in this [explana- speak everybody would want to go home. tion] why the Government of the day spent $25 million to build 20 units, Mr. Speaker. But I guess that is what [Laughter] we see in Bermuda. The Two Bermudas. The Two Bermudas which is endorsed by Government House, that one segment of the country Bermuda House of Assembly Official Hansard Report 7 December 2018 401

can do what they like, and this is fine. And when it is bottom of this and find out how did they spend this the PLP we would do special audits and investigations $25 million. Thank you, Mr. Speaker. and everything we can. It makes no sense. That is consistent with Government House, Mr. Speaker. The Speaker: Thank you, Honourable Member. If you look at the history— Does any other Honourable Member wish to speak? No other Honourable Member? Hon. Michael H. Dunkley: Point of order, Mr. Speak- I will take the Honourable Member from con- er. stituency 11.

The Speaker: What is your point of order? Mr. Christopher Famous: Good evening, Mr. Speak- er. POINT OF ORDER [Standing Order 19(11)(g) and (h)] The Speaker: Good evening.

Hon. Michael H. Dunkley: Mr. Speaker, as it was last OBA —TAX AND SPEND GOVERNMENT week and again this week, I believe the Honourable Member is contravening Standing Order 19[(11)](g) Mr. Christopher Famous: Good evening colleagues, and (h), in regard to referring to another place. and good evening Bermuda. Mr. Speaker, it is kind of fertuitous [sic] . . . is Hon. Derrick V. Burgess, Sr.: Mr. Speaker, I am not that a word, “fertuitous”? contravening the . . . if you read it you will see that— [Inaudible interjections] The Speaker: One second, one second. Some Hon. Members: “Fortuitous” . . . for-tuit-ous. Hon. Derrick V. Burgess, Sr.: I’m sorry. [Laughter] The Speaker: We have to be guided, and not refer to the individual as in case . . . walking a close line by Mr. Christopher Famous: Fortuitous— referring to the house, but not the individual. So I am guided. I am watching it real closely. The Speaker: Speak to the Chair.

Hon. Derrick V. Burgess, Sr.: I know that rule very Mr. Christopher Famous: Fortuitous, that tonight’s well, Mr. Dunkley. And I have not called any names. If biggest discussion was about tax, because my talk you want me to say the occupant of the largest house tonight is about tax. on Langton Hill I can say that too. Mr. Speaker—

The Speaker: Don’t refer to the individual. The Speaker: Now, you do not want to go back over a debate that has been concluded, you know. Hon. Derrick V. Burgess, Sr.: Right. I will not refer to the individual, because the individual there now is not Mr. Christopher Famous: No, no, no— the only culprit. So, Mr. Speaker, I would . . . I am still wonder- The Speaker: You could have participated then, so ing why no statement has been made by the Auditor just watch which line you take. General on this here. It’s acceptable for this type of money to be spent, and they say nothing? I mean, Mr. Christopher Famous: Oh no, let’s be clear. I am these are facts; these are not allegations. This is $25 not talking about that. I am talking about some other million to build 20 houses, precast. Really, I thought tax. $360[,000] per unit was very high for precast concrete. You just put them together, it’s pretty quick. The Speaker: Okay. Concrete roofs. That’s a lot of heat; a lot of heat, Mr. Speaker. But anyhow, that is what was agreed to, so I Mr. Christopher Famous: Mr. Speaker, have you cannot criticise that. I will not. But it is my personal ever heard of robbing Peter to pay Paul? Well, let’s opinion that it was too expensive from the start. talk about people who have robbed Peter and they Obviously, $1.25 million is expensive, but cer- have robbed Paul. tainly acceptable by the Auditor General and the boss of the Auditor General. It is acceptable by them. So, An Hon. Member: Double robbery. Mr. Speaker, I find that to be something that we should not accept. And I hope that we will get to the Mr. Christopher Famous: Exactly. Double robbery. Triple, even. Bermuda House of Assembly 402 7 December 2018 Official Hansard Report

In July 2013, the OBA began a programme Mr. Famous, if you would you like to keep called . . . in conjunction with the BTUC [Bermuda your status on your feet, talk to me. If you don’t you Trade Union Congress], began a programme called can sit down. “furlough days” where they cut 4.6 per cent of all public sector workers’ pay. That equated to $1.75 million Mr. Christopher Famous: Mr. Speaker, I am speak- per month. That equated to $21 million per year. That ing to you. lasted from July 2013 until May 2015. So, in totality it was 20 months at $1.75 million. That will be $35 mil- The Speaker: Well, let me hear you. lion, approximately, that they took from the public sector workers. Mr. Christopher Famous: There were 5,000 gov- They got kind of addicted to that money, be- ernment workers surrounding Cabinet office for three cause they were like, Oh, all this extra money coming days, until the OBA had to back off, they had to back in. Was it not? A penny saved is a penny earned, down from saying, We’re going to take your money. right? They got so addicted, Mr. Speaker, that in Jan- So— uary 2015 the then Finance Minister said, Hey, you’re going to keep giving us money. Hon. Michael H. Dunkley: Point of order, Mr. Speak- And the workers said, No, we ain’t. er. And he said, Yes, you are. Do you know what the workers did? Five The Speaker: May I have the point of order? thousand government public sector workers marched on the OBA for three days. POINT OF ORDER [Misleading] [Inaudible interjection] Hon. Michael H. Dunkley: Mr. Speaker, the Honour- Mr. Christopher Famous: Oh, you remember now? able Member is misleading the House. The facts of You forgot which protest? Let me help you the matter are that agreement was between the Gov- out. January 2015. ernment and the unions. Once it expired it could not be moved forward unless both parties agreed. Those [Inaudible interjections] are the facts.

The Speaker: Speak to the Chair. The Speaker: Thank you.

[Inaudible interjections] Mr. Christopher Famous: Mr. Speaker, so why was there a protest? Mr. Christopher Famous: You want to take a point of order? [Inaudible interjection]

The Speaker: Speak to the Chair, speak to the Chair. Mr. Christopher Famous: Okay. Okay. Member, Member, speak to the Chair. So, they had to say, Where are we going to get this money from? Hmm, who can we tax now? [General uproar] And do you know what they did? In the Budget of 2015 they decided to tax BELCO. Mr. Christopher Famous: Do you want to take a Yes, BELCO, where I work. So I know. point of order? So, they increased the taxes on every drop of fuel that came into this Island that powered up this The Speaker: Speak to the Chair; don’t get caught up Island. Every drop. In 2015, BELCO paid $15 million in side conversations. in government taxes. Correct? Then, they increased it to . . . in 2016, BELCO Mr. Christopher Famous: Anyway, Mr. Speaker, paid $23 million in taxes. That was not enough for there were— them. In the time when sales were going down, because of less consumption, they taxed BELCO more. [Inaudible interjection] So in 2017, BELCO was forced to pay $31 million in taxes. Doubled! Mr. Christopher Famous: There were— And you know what happened, Mr. Speaker? Every house in this Island had to pay more. Every [Inaudible interjections] house, every store in this Island had to pay more. Every wholesaler had to pay more. Every grocer had The Speaker: Members! Members! to pay more. So you know what that meant? Every

Bermuda House of Assembly Official Hansard Report 7 December 2018 403

citizen in this country had to pay more because the Cold and callously, like people do not matter. OBA doubled the tax on BELCO. People’s jobs being lost did not matter. How could you It did not stop there, Mr. Speaker. It did not write in one thing saying you tackled energy costs, stop there. You see, Mr. Speaker, I work at BELCO. I and two weeks later say on television, Well, we put up have been there for 25 years. And when their taxes the taxes. They contradict each other. It goes back to started doubling, BELCO started saying, How can we what I said a few weeks ago. Remember that word? cut our costs? The word is called . . . do you remember, Honourable So, you know what they did? Member?

[Inaudible interjections] The Speaker: Speak to the Chair. Speak to the Chair.

Mr. Christopher Famous: But you doubled the taxes. Mr. Christopher Famous: Okay.

The Speaker: Speak to the Chair! The Speaker: Your conversation is supposed to flow this way. Mr. Christopher Famous: They looked at the workforce. [Inaudible interjection]

The Speaker: Speak to the Chair. Mr. Christopher Famous: That is it. Situational ethics. Mr. Christopher Famous: For the first time ever, BELCO workers were faced with redundancies. [Inaudible interjections]

The Speaker: Yes. The Speaker: Let the conversation flow this way.

Mr. Christopher Famous: Forced redundancies! Mr. Christopher Famous: No, the word I was looking for is “credibility,” Mr. Speaker. No credibility. You An Hon. Member: Hmmm. cannot write that you lowered energy costs, and in truth, you raised the taxes on energy costs. No credi- [Inaudible interjections] bility. So, you know what, Mr. Speaker? We have a pattern here. Robbing Peter, robbing Paul, tax and Mr. Christopher Famous: Mr. Speaker, the same spend Government. people who claimed that they were going to create Let me reiterate, Mr. Speaker. The OBA got in jobs cost people jobs at BELCO! People who had conjunction with the unions, $35 million dollars from been there for 20 years lost their jobs! People who furlough days, $35—I want you all to write this down— had their careers lined up at BELCO. There is no oth- $35 million from furlough days. They got an increase er BELCO around here for people to say, Well, I am a of $22 million from BELCO—$22 million! In totality, power engineer, so let me go work there. No! But they that is roughly about $57 million. So, we ask our- are going to say, We save jobs. selves, we hear all day about, Well, you should not tax Mr. Speaker, let me go a little further. In the the people, that slows the economy. Oh, it does this. 2018 OBA Throne Speech Reply, they wrote, and I Oh, it does that. But you all did it yourselves. quote, “It was the OBA that tackled rising energy costs.” How could you write something like that when Some Hon. Members: Hmmm. you doubled energy costs? How could you? Totally false. Totally untrue. In parliamentary language, totally Mr. Christopher Famous: You all did it yourselves. misleading. And, in unparliamentary language, lies, lies, lies! [Inaudible interjections]

The Speaker: Let’s keep it parliamentary. Mr. Christopher Famous: So, all of this hyperbole during the day, Mr. Speaker, all of that has low credi- Mr. Christopher Famous: Do you know how this has bility. been proven to be true? Last week, Friday, there was an interview right outside of this Chamber by ZBM’s [Inaudible interjections] Gary Moreno. He asked the then Premier, the Hon- ourable Michael Dunkley from constituency 10, So Mr. Christopher Famous: All of that amounts to noth- why did you increase these costs? ing. Because when you tax people, when you cause And I quote Mr. Speaker, It [the taxes] was groceries to go up, when you cause seniors not to be put up on BELCO. It will have an effect on every con- able to buy Paw Paws— sumer. Bermuda House of Assembly 404 7 December 2018 Official Hansard Report

[Laughter] The Speaker: Thank you. Does any other Honourable Member wish to speak? Mr. Christopher Famous: —that is because of your I recognise the Honourable Leader of the Op- taxes. All that tax you collected, not one dollar went to position. Honourable Member, you have the floor. the seniors. [Except at] the end of your term when you were desperate for votes. Correct me if I am wrong. OBA SUPPORT FOR TAX REFORM Zero, zero, zero, zero, given to seniors. Took it all! And where did the money go, Mr. Speaker? Hon. L. Craig Cannonier: Thank you, Mr. Speaker. Now, I am going to start off by saying this here: You Some Hon. Members: Where did the money go? know, I have been trying to be a good boy, Mr. Speaker. Mr. Christopher Famous: Where did the money go? Follow the money, Mr. Speaker! Fifty-seven million The Speaker: Continue trying. dollars in taxes from the workers, the Government public service workers, and $22 million from BELCO. Hon. L. Craig Cannonier: I have been trying real Where did that money go? It did not go to seniors. It hard, Mr. Speaker. did not go to the schools— The Speaker: Continue trying. Do not let anyone An Hon. Member: No. break you off that.

Mr. Christopher Famous: —that you are all now Hon. L. Craig Cannonier: Christmas is coming, I suddenly concerned about. None of that went to the have been trying to be a good boy, you know. And we schools. Where did that money go? keep hearing, you know, Well don’t throw stones if you live in a glass house. And, you know, I want to [Inaudible interjections] just be a little political here, as we start out in some of our debates. And then I hear the Member who just sat Mr. Christopher Famous: It did not go to those down in his seat talking about taxes and his concern houses up at Dockyard. with BELCO. Well, I can recall many conversations, Mr. Some Hon. Members: No. Speaker, with Ascendant Group. And the biggest issue with Ascendant Group was that it was taking its Mr. Christopher Famous: Where did the money go? profits from BELCO and putting them into other busi- The money went up Dockyard, but not to the houses. I nesses. And the conversation was, You need to be want somebody to point of order me and say, That is putting it back into BELCO. That is where you need to not where the money went. be putting the profits. So, if he has an issue with BELCO, he needs An Hon. Member: That is not where the money went. to go to the Ascendant Group, go to that board and ask them exactly what they were doing. Because Mr. Christopher Famous: I am waiting for the point those profits were going into other businesses that of order. BELCO was making.

The Speaker: Talk to the Chair. An Hon. Member: Your lights are going to go off.

[Inaudible interjections] [Laughter]

Mr. Christopher Famous: Mr. Speaker, I am going to Hon. L. Craig Cannonier: That BELCO was making. close with this Exhibit A. This is where we were before Yes, I have got a generator. the OBA decided to rob BELCO. This is where we are afterward. Double the taxes on BELCO. [Laughter]

An Hon. Member: And I assume you have dropped. Hon. L. Craig Cannonier: I have got a generator.

Mr. Christopher Famous: I put it in red just for you, [Laughter and desk thumping] Honourable Member. So, Mr. Speaker, the $57 million that they An Hon. Member: Whoa! taxed went one place—America’s Cup. I am finished, Mr. Speaker. Hon. L. Craig Cannonier: Because if the Honourable Member is looking at my house, and knowing where it is, I know that switch will get switched real quick! Bermuda House of Assembly Official Hansard Report 7 December 2018 405

[Laughter] Hon. L. Craig Cannonier: That is what they have inherited. So, I glory in the spirit at the opportunities Hon. L. Craig Cannonier: But what he needs to do is that they do have. turn out the lights on Ascendant Group— DOCKYARD PREFAB HOUSES—REBUTTAL BY Some Hon. Members: Uh-oh. Uh-oh. MP MONIZ TO MINISTERIAL STATEMENT

An Hon. Member: Yes. Hon. L. Craig Cannonier: So, let us switch off from that and let us talk about why the Honourable Member Hon. L. Craig Cannonier: —because of the profits . . . he is not here in his seat right now— that they have been making, and squandering them somewhere else, rather than putting it back into that An Hon. Member: He never is. man right there! [Laughter] [Desk thumping] Hon. L. Craig Cannonier: —Moniz. Hon. L. Craig Cannonier: So, when he gets up, [he That is all right. But I am glad that you are in should] do his homework! your seat right now. And the fact that taxes had to go up when we became Government . . . let me remind Bermuda what An Hon. Member: Oh, don’t you worry. I am going we inherited in 2012! DEBT! DEBT! DEBT! And we to— could not even pay civil servants. So, when this Hon- ourable Member gets up he needs to think about what Hon. L. Craig Cannonier: I am glad you are in your he is saying, just like we have heard about educa- seat. tion—act before you start talking! The Speaker: Members! Members! Only one person An Hon. Member: Ouch! talking!

Hon. L. Craig Cannonier: Act! Do something about it! Hon. L. Craig Cannonier: So, you know, we— No one wants to hear about yesterday. Peo- ple are concerned about here and right now. That is The Speaker: Just one Member talking! why I supported this reform thing, because if we can get somewhere, let’s do it! Hon. L. Craig Cannonier: —want to go on about But how many times do I have to remind this these hundred units— Honourable House of the debt that we inherited? I am glad to see the Honourable Premier com- The Speaker: Speak to me. ing in here to hear this here. The debt that we inherited— Hon. L. Craig Cannonier: —and the Honourable Member— [Inaudible interjections] The Speaker: Speak to me. An Hon. Member: Half of what we inherited. Hon. L. Craig Cannonier: —was asking for an apolo- Hon. L. Craig Cannonier: —and in four . . . Listen, gy, because it was said that not even a whimper was they inherited . . . they inherited a Government, Mr. said or a statement made about those units—which is Speaker, of $160 million in debt and put it over $1.5 untrue. That is why the apology was being asked for. billion over! Okay? And so, when we became Gov- And so, we heard the Honourable Minister get ernment, it would have been easy to try and handle up and say that he wants to know what was going on. that, but it takes billions to take care of billions. Oh, Well, I am encouraging this Minister . . . after he made yes! his statement, by now he should know what was going on up there. I, too, want to know what was going on. [Inaudible interjections] Why in the world . . . and who negotiated that price? I have got a feeling who it was; but I want him to find Hon. L. Craig Cannonier: Oh, yes! This is no excuse. out who negotiated that price. Because it was negoti- But when you cannot pay civil servants, something ated. has got to happen! That is what they have inherited. They flew away, they negotiated . . . and I An economy that was turning around. want to know, Mr. Speaker. The contractor who had that project subcontracted a Bermudian to build those An Hon. Member: Hmmm. units. He also was given, without even a contract be- Bermuda House of Assembly 406 7 December 2018 Official Hansard Report ing signed, a multimillion-dollar project to fill that land- that up here. And number two, the project did not start fill up there. Nothing was signed! But guess what hap- under the Progressive Labour Party Government. pened Mr. Speaker? Hon. L. Craig Cannonier: Cross Island? An Hon. Member: Hmmm. Hon. Derrick V. Burgess, Sr.: No, it didn’t. Hon. L. Craig Cannonier: Because the then Gov- ernment went ahead and allowed this man to start Hon. L. Craig Cannonier: We are not talking about working on Cross Island without a contract—no con- who it started under; we are talking about who gave tract—he sued the OBA Government. Because when the contracts, and under which Government the con- PLP was Government they went ahead and started tracts were given. paying him to get work done without a contract. So, I am saying, investigate it. I want you to An Hon. Member: Exactly. go and look at why and what was spent. Because I know that the same contractor, Mr. Speaker— Hon. L. Craig Cannonier: Under which Government the contracts were given. Hon. Derrick V. Burgess, Sr.: Point of order, Mr. So, all I am saying is . . . you are saying, What Speaker. Point of order, Mr. Speaker. are we talking about? Why don’t you find out? Your Minister is supposed to find out. Find out. I am saying The Speaker: I will take your point of order. have a full investigation on what took place up there, and I guarantee you this, Mr. Speaker, eyes will open. POINT OF ORDER [Misleading] An Hon. Member: Why didn’t you order it?

Hon. Derrick V. Burgess, Sr.: I think the Honourable [Inaudible interjections and laughter] Member is misleading the House. Cross Island or whatever you call it, land reclamation, did not start Hon. L. Craig Cannonier: Eyes will open. Okay? under the PLP Government. The Speaker: Members. Members. Members! I need [Inaudible interjections] to hear one voice!

The Speaker: Speak to the Chair. Hon. L. Craig Cannonier: Eyes will open!

Hon. L. Craig Cannonier: Mr. Speaker— The Speaker: One voice!

The Speaker: Continue. Hon. L. Craig Cannonier: Eyes will open, Mr. Speak- er. Hon. L. Craig Cannonier: —what I said was they contracted the gentleman who was doing the apart- [Inaudible interjections] ments, those hundred units. They also took him on to do Cross Island development. They took him on. Hon. L. Craig Cannonier: Because, I . . . you know, we understand it did not cost that much to build them. An Hon. Member: Who is “they”? That is what we are hearing. That is why I am saying it is important to have an investigation, because we are Hon. L. Craig Cannonier: So, I do not know what he hearing that they did not cost that much, so I would is talking about. All he has to do is go . . . I am not like to know where that money went as well. naming the name of the company. . . [Inaudible interjections and laughter] Hon. Derrick V. Burgess, Sr.: Point of order, Mr. Speaker. Hon. L. Craig Cannonier: I would like to know where that money went as well l, Mr. Speaker. [Inaudible interjections and laughter] So, you know, we can get exercise, or we are going back and forth, you know. And the Honourable POINT OF ORDER Member is calling for . . . he wants to understand and know what was going on. Yes . . . well, we all want to Hon. Derrick V. Burgess, Sr.: Two things: You can- know what is going on. I can go back to many pro- not refer to Members like that, He doesn’t know what jects, Mr. Speaker, that we all want to know what was he is talking about. You cannot refer to Members like going on about. Certainly, Mr. Speaker!

Bermuda House of Assembly Official Hansard Report 7 December 2018 407

And we are talking about dollar values—we Mr. W. Lawrence Scott: Point of order, Mr. Speaker. have a Grand Atlantic that is still empty today. How much interest are we paying on that? Still today com- Hon. L. Craig Cannonier: Interesting that he brings pletely empty! I understand it was hundreds of people up . . . interesting that he brings up a private jet.— who applied! Mr. W. Lawrence Scott: Point of order, Mr. Speaker. [Inaudible interjections] Hon. L. Craig Cannonier: We are going to get to that. Hon. L. Craig Cannonier: Hundreds of people who applied! And wonderful, thanks to us! The Speaker: Point of order. Hey, you know what? This is amazing. You build a unit, and you cannot sell it, and you blame POINT OF ORDER someone else because you cannot sell it. [Misleading]

[Laughter] Mr. W. Lawrence Scott: Yes. The Honourable Mem- ber is misleading the House when he is talking about Hon. L. Craig Cannonier: You blame someone else Grand Atlantic, because under the PLP they had nu- because you cannot sell it. merous Members and numerous families that were lined up ready to buy those units, because the PLP [Inaudible interjections and laughter] had organised 100 per cent financing. I do know this because it is in my constituency. The Speaker: All right, Members! Members! Hon. Michael H. Dunkley: So, what happened? Hon. L. Craig Cannonier: You took on the responsibility to have a concert and because— Mr. W. Lawrence Scott: And what happened? The Honourable Member Michael Dunkley asked what The Speaker: Members! happened. The OBA, the Member from WEDCO was saying that it was going to fall into the ocean. Hon. L. Craig Cannonier: —no one showed up, you blame everyone else! Hon. L. Craig Cannonier: Oh, yes. What is wrong with your campaign? What is wrong with your campaign team? Mr. W. Lawrence Scott: And then what happened is that after that the OBA took over in 2012 and cut the An Hon. Member: Wow! funding, and made it unattractive for anyone to live in there until— Hon. L. Craig Cannonier: Come on, now! [Inaudible interjections] An Hon. Member: You are blaming it on PR. Mr. W. Lawrence Scott: —until, until America’s Cup [Inaudible interjections] came. And then they used it for America’s Cup.

Hon. L. Craig Cannonier: And units that cost over [Inaudible interjections] $400-and-some dollars a square foot, if I take a look at the numbers. Back then, 12 years ago or whenever The Speaker: Member! All right. Thank you. Come it was done, construction costs per square foot were on. way below that. Concessions were given, and this was low-cost housing. And to this day we do not have Hon. L. Craig Cannonier: Thank you, Mr. Speaker. anyone in those units. I would venture to think that You know what? I heard a saying the other when they went for financing it did not pan out. It just day from a PLP member who said, Stay woke. Ber- did not pan out. muda—stay woke. Okay? Okay? We heard that here, So, sure, we should take a look at these in this House being said. I want to make sure that things. But I do know that the interests of this country Bermuda is awake on every issue that is going down. have always been to heart, when we were Opposition I am not afraid to stand behind where we are. and when we were Government. [Inaudible interjections] An Hon. Member: And when you were on a private jet plane. Hon. L. Craig Cannonier: Yes, I heard the Honoura- ble Member, and this is the one, this is the Honoura- Hon. L. Craig Cannonier: And so, absolutely— ble Member interpolating that built the units that we Bermuda House of Assembly 408 7 December 2018 Official Hansard Report cannot still to this day fix! So, I hope on the second Hon. L. Craig Cannonier: Black Bermudians! If you time around that he fixes it. I hope he fixes it. That is cannot read a newspaper, then something is wrong what he is there for. Fix the problem that you created with you as an MP! in the first place, you know, and then we are going to . . . and . . . and . . . yes, we are talking about building The Speaker: Turn this way. Turn this way. Talk this more. When people are trying to rent the places right way. now. Mr. and Mrs. Bermuda are trying to fill the place up and rent it out. And we are going to still build more Hon. L. Craig Cannonier: Because they are in the units. paper! All right? So, Mr. Speaker, we need to get beyond this An Hon. Member: You will see them fall into the sea, stuff. But if the Honourable Minister is going to get up too. and start scrutinising without doing his homework . . . go do your homework! Act before you start, you know, Hon. L. Craig Cannonier: Yes, and this is— running your mouth! Act! Act! Act!

[Laughter] [Inaudible interjections and laughter]

Hon. L. Craig Cannonier: This is . . . this is their Hon. L. Craig Cannonier: And you know, the Hon- stimulus. Amazing that you can be the architect of ourable Minister when he went to talk about plane something and you cannot sit down with Bermudians rides . . . well, I can tell you, Mr. Speaker, the number who will listen. Reasonable Bermudians, I am sure, of plane rides. applied for those places, and you could not convince Just yesterday I had a meeting with one of the them that those places were okay. Could not convince exempt companies, and they said categorically out them that those places were okay. front the number of times that their Premier and former Premier asked for their plane to go take a ride! [Laughter and inaudible interjections] Several times! In fact, Mr. Speaker, I will bring it to you and present it to you. I have a picture sent to me Hon. L. Craig Cannonier: Absolutely, Mr. Speaker. of a plane ride, and the Honourable Minister who I have been talking about, knows about this plane ride, The Speaker: Members! Members! where they went away on this plane.

Hon. L. Craig Cannonier: We can go on and on and [Inaudible interjections] on and on, and talk about the many projects that cost the taxpayer, so that by 2012 we were in a hole where Hon. L. Craig Cannonier: Okay? Not him; but he was we could not even pay people. And that was not done there to pick up the goods. He was there to pick up by this Government. But— the goods that came off the plane.

[Inaudible interjections] Some Hon. Members: Whoa! Whoa!

Hon. L. Craig Cannonier: And America’s Cup . . . I [Desk thumping] love the fact, Mr. Speaker, that America’s Cup keeps coming up. America’s Cup, America’s Cup, America’s Hon. L. Craig Cannonier: Oh, yes! With the Regi- Cup. ment truck! Well, the last time that I went to America’s Cup it was a whole lot of Mr. and Mrs. Bermuda work- [Laughter and desk thumping] ing up there getting publicity for the work that they were doing. And to this day, Mr. and Mrs. Bermuda An Hon. Member: With the Regiment truck! are benefitting from it. All you have to do is read the newspaper and see young people who are benefitting Hon. L. Craig Cannonier: So, be careful what you from that. pray for and get up here and start running your mouth!

An Hon. Member: Amen! [Inaudible interjections]

Hon. L. Craig Cannonier: [It was] $300-plus million An Hon. Member: Point of order! back into the economy. Black Bermudians who are benefiting! Hon. L. Craig Cannonier: And tons of rides, Mr. Speaker, and they did not even pay for it! Did not [Inaudible interjections] even pay for it!

Bermuda House of Assembly Official Hansard Report 7 December 2018 409

An Hon. Member: Point of order. Hon. L. Craig Cannonier: I hope, Mr. Speaker—

Hon. L. Craig Cannonier: Did not even pay for it. Hon. E. David Burt: Point of order, Mr. Speaker. Okay? Oh, but guess what? Taxpayers here paid for The Speaker: We’ll take the point of order. it! Taxpayers on this Island paid for it. I just told you one of the exempt companies who talked about PLP POINT OF ORDER and the number of plane rides. So, we are going to get to that, and we are going to get Four Seasons Hon. E. David Burt: I am going to give the Honoura- coming real soon. ble Member a little bit of time before he, you know, pops a blood vessel in his brain, because he was go- An Hon. Member: Oh, yes! ing on a little bit too much.

Hon. L. Craig Cannonier: It is coming, but we are Hon. L. Craig Cannonier: Oh, I am just following your going to save that for the New Year, Premier. We are suit. going to save that, and the contents of that, for the New Year. Hon. E. David Burt: Hold a second.

[Inaudible interjections and laughter] The Speaker: Just talk to the Speaker.

Hon. L. Craig Cannonier: So, put on your seatbelt. [Laughter] Because Christmas is going to be long. Okay? So, Mr. Speaker, this is what I am looking for. The Speaker: Talk to the Speaker. I have always been a fair and equitable guy when it comes to the House, wanting fair debate. But what I Hon. E. David Burt: It is just very simple. There are continue to see is (not initiated from here) personal 10 ministries in Government, Mr. Speaker. There are attacks from over there. And when we respond, Mr. 12 Ministers, but there are 10 ministries in Govern- Speaker, Oh, woe is me! Woe is me! Woe is me! The ment. Those are the facts. bogeyman has come out! Well, let me tell you something. [Inaudible interjections]

An Hon. Member: No, no. Stop that. Hon. E. David Burt: There is nothing misleading about saying that there are 10 ministries in Govern- Hon. L. Craig Cannonier: The negativity that I con- ment, a number that no one on that side ever got to. tinue to hear, you are creating your own bogeyman. And the more that we continue to talk about wealthy [Inaudible interjections] white people who have . . . guess what? The frame of mind is that we will never have. Okay? Hon. L. Craig Cannonier: Bermuda, Bermuda, just Oh, yes. We are always inferring certain as you read in the newspaper how things are escalat- things. I am black just like them. I know the infer- ing, how issues are escalating, Bermuda is not stupid. ences. So, do not sit in this House and infer things and think that some of us over here ain’t as Back o’ An Hon. Member: No. Town as you! And you keep on that. And you want to know, Mr. Speaker, what has Hon. L. Craig Cannonier: They are not! been interesting? The Premier is over there laughing. And the Premier is making misleading statements, [Inaudible interjections and laughter] telling Bermuda, Oh, well, we got 10 ministries. But he forgot to say, But we are paying for 12! Hon. L. Craig Cannonier: Bermuda is not!

An Hon. Member: Yes! [Inaudible interjections]

Hon. L. Craig Cannonier: That is misleading the pub- The Speaker: Members! lic! Misleading! Hon. L. Craig Cannonier: And so . . . and so— [Desk thumping and general uproar] [Gavel] Hon. L. Craig Cannonier: So, I hope, Mr. Speaker— Hon. L. Craig Cannonier: And so, Mr. Speaker— Hon. E. David Burt: Point of order, Mr. Speaker. [Gavel] Bermuda House of Assembly 410 7 December 2018 Official Hansard Report

The Speaker: Members! not say my name, he said, The Opposition, get your people in line. Get your people in line. Because I can Hon. L. Craig Cannonier: Listen! Mr. Speaker, I am assure you . . . you look at this team here. They’ve grateful to hear the interpolation. You want to know have got plenty to complain about. It ain’t no shortage why, Mr. Speaker? I know they know what it means to of talking over here. Ain’t no shortage of talking over go down to at least seven. Okay? I know they know. here at all. They know! Oh, yes, seven Members! Oh, yes. PLP has been there before. Yes, right? [Inaudible interjections] So, you never, you never count out the Oppo- sition. Continue on. I have seen it before! Continue An Hon. Member: They are complaining about you. on! But the people of Bermuda are already starting to respond. They are concerned. And they are con- Hon. L. Craig Cannonier: Complain, complain. You cerned about the here and now. And that ain’t no joke. see? You see? They still do not get it. Still sifting And I glory in the spirit. Okay? You know, we have got through the dark cloud of whatever is in their head. 25 seats. I glory in the spirit. But do not for a minute They need to clean it. underestimate Mr. and Mrs. Bermuda. It has happened many times before by this Government. [Inaudible interjections]

[Inaudible interjections] An Hon. Member: Mm-hmm.

Hon. L. Craig Cannonier: Many times! Once with the Hon. L. Craig Cannonier: Okay? Talking about get- OBA, but many times with this Government they have ting personal. Like I said, the shot was over my bow. If underestimated. Okay? That pendulum, I can assure you think you are going to shoot over my bow, and at you, if we do not get it right—and I said “we,” because some point in time it is not going to come back . . . you we are all up here—it is going to swing. And when it might shoot a bullet. But a bigger one is coming back. comes back, be careful. And if you shoot a bigger one, then a missile is com- So, yes, we can talk about situational ethics ing back. and you know, I would hope, Mr. Speaker, that when people want to get up and use references like “situa- [Laughter] tional ethics” that they really, really understand those kinds of terms. Because there is a whole lot of situa- Hon. L. Craig Cannonier: This makes no sense. tional stuff going on. There is enough of it going on, you know. And immediately when I say something that [Timer beeps] is you know, middle line, all we hear . . . and just the other day on the motion to adjourn, we said, Everyone Hon. L. Craig Cannonier: It makes no sense with was cool, you know. What did we have to put up with? what they are going through. More attacks? And personal attacks at that. What for? You are not stimulating the economy by at- [Inaudible interjections] tacking someone. You are not getting jobs back on the table by having to refer to this person and have The Speaker: Thank you for your contribution, Mem- interpolations in the hallway calling people racists and ber. the like. What are you fixing? You certainly are not Does any other Honourable Member wish to fixing what the people of this country are looking for contribute or are we closing? you to fix! They could care less what you personally think about someone over here. What they want is [Inaudible interjections and laughter] their situation fixed. And in the spirit of working together, we support what is good. Lt. Col. Hon. David A. Burch: Mr. Speaker, having But I can assure you that maybe Santa Claus been invited to speak, I shall. will not be so nice to me, because I am being a little bit bad right now. But, you know what? I am up here An Hon. Member: Where are you going? working just like everyone else here in the interests of this Island. Some Members just do not like that, be- [Laughter and inaudible interjections] cause we in the so-called “Westminster System” sit on different sides. I can assure you, I will be more than Lt. Col. Hon. David A. Burch: All right. No, he would happy to sit in just about every single one of their have to leave. homes and have an eggnog with them. But the minute you get personal—and I am An Hon. Member: Run away. That’s right. Run, run, saying this to the Premier. The minute that it gets per- run. sonal . . . when he said to me, Look. You know, he did Bermuda House of Assembly Official Hansard Report 7 December 2018 411

Lt. Col. Hon. David A. Burch: Mr. Speaker— Now, Mr. Speaker, in this House, you know, one of the best inventions is something called “Han- The Speaker: You rose to speak to the Chair. So, sard.” speak to the Chair. It does not matter who is there or not. Some Hon. Members: Yes.

Lt. Col. Hon. David A. Burch: I am speaking just to Lt. Col. Hon. David A. Burch: And, Mr. Speaker, you you, Mr. Speaker. may, in fact, recall the occasion on the 7th of June 2013, because you, in fact, asked some questions on The Speaker: Thank you. this very statement, Mr. Speaker, the very question that I am asking today. And you were promised by DOCKYARD PREFAB HOUSES—REBUTTAL BY that Minister then, Mr. Speaker, that you would get an MP MONIZ TO MINISTERIAL STATEMENT answer, the House would get an answer. I can quote, if you like, Mr. Speaker. Lt. Col. Hon. David A. Burch: I sat quietly this morning, and I was curious [because] the statement that An Hon. Member: Who is the Minister? was issued in June 2013 actually revealed more information than I had on November 23rd, Mr. Speaker. Lt. Col. Hon. David A. Burch: The Minister is the Actually, what is more astounding to me, Mr. Minister who I referred to and who answered today. Speaker, is that we have been in office just over 18 months, or 568 days. So, we own all the problems that An Hon. Member: Ah! this country now faces. I get that. We own all the problems that we inherited. They belong to us. Lt. Col. Hon. David A. Burch: He is the same Minis- ter. The one who is never in the House! That is why The Speaker: Hmmm. he had to make a personal explanation. And he said, Mr. Speaker, on page 1274, dat- Lt. Col. Hon. David A. Burch: Governments actually ed the 7th of June 2013, and I will not read the begin- get to enjoy the successes of their predecessors and ning of it, because it will take up too much of my time. the blame of the mistakes that they made. That is the But what I quote, “But I can undertake to release a nature of the beast, Mr. Speaker. statement with respect to how it breaks down.” (That What I cannot accept is the unmitigated gall of is the $25 million.) “But all I can say, Mr. Speaker, is many of the Members of the former administration that, you know, when you are given lemons, you just who carp at every turn. And now, all of a sudden, they try to make lemonade. And we are trying to make have the answer to fix every problem that we face. In lemonade here.” the case of the houses at Dockyard, Mr. Speaker, yes, Well, that is a pretty expensive lemonade, Mr. they were started on under the PLP. I was not a Speaker. Member of the Government, so I do not know what he So today we got a statement, Mr. Speaker, is talking about in terms of who contracted anyone. and tonight we got a reinforcement of it that the Grand So, I have no clue what he is talking about. Atlantic was an abject failure housing project. And they had a clear indication that there was sufficient [Inaudible interjections] housing stock after a major exodus of thousands of Bermudians under the PLP Government. Only two The Speaker: Talk to the Chair. Talk to the Chair. units were ever sold at the Grand Atlantic. Talk to the Chair. Be honest, Mr. Speaker. All you have to do is google it. That was no fault of the PLP Government Lt. Col. Hon. David A. Burch: Mr. Speaker, as the that we only sold two units. Their organisation, one of Minister who I replaced in Public Works, why did he the . . . one of the [originations], I would say, of their not order the investigation if he has got all this infor- entity the Bermuda Environmental Sustainability Task mation? They had five years to figure this out. Do not Force. And I really want to know what task force is? be asking me. I am digging up and cleaning up Can you call three people a task force, Mr. Speaker? I enough of their mess, Mr. Speaker. don’t know. But they harp . . . and all of those envi- What I want to know, Mr. Speaker, is, yes, we ronmentalists . . . these places were going to fall into agreed to build 100 houses for $36 million. They South Shore. Nobody remembers that? changed it to 20 houses for $25 million. Stevie Won- der could see, Mr. Speaker, that this makes no sense Some Hon. Members: Yes. to anyone. And we have yet to have an explanation as to why that is the case. Lt. Col. Hon. David A. Burch: And nobody would invest in such, because they believed what those people said. Bermuda House of Assembly 412 7 December 2018 Official Hansard Report

But even if that were not the case, Mr. Speak- Lt. Col. Hon. David A. Burch: What is the question? er, the indictment does inure to them. I have a What’s the point? memory, Mr. Speaker. I don’t even need Hansard most of the time because I remember on Decem- The Speaker: Thank you. ber 13, 2012 . . . was that the day after the election? My date might be a little off. In 2012 was the election. Hon. L. Craig Cannonier: Misleading the public. It was the 18th of December. That same task force said, Oh no! All is well. The houses are not going to The Speaker: Thank you. fall into South Shore now. Everything is fine. Continue on. So they had five years to do something with those houses. And the only thing they did with those Lt. Col. Hon. David A. Burch: Mr. Speaker, yes, they houses, Mr. Speaker, was to put their beloved sailors got one day’s notice; I got two. And what I explained from America’s Cup up there for two months. That is to them . . . and I do not understand what the great the only thing they did. So, Mr. Speaker, you know mystery is, Mr. Speaker. It was fully explained to the what we are doing now? Which actually astounds me, Opposition the reason why we were doing it late, the because I gave them credit for it when we announced reason why the advice had come late. They served in more than a year ago what was happening with Grand Government for five years. They know the challenges Atlantic. It was the proposal that was made to the for- people have with getting things out of the Attorney mer Government. They could not bring it to fruition. General’s Chambers, and lawyers in particular, Mr. We are. And I don’t know if all of those people on that Speaker. So we were aware of these too. side live east of Hamilton and so they never travel Go to South Shore if you want to know what is west, and if they do, they only travel Middle Road. happening up there. There are all sorts of activities, Because if they travelled on Harbour Road, Mr. Mr. Speaker. There is all sorts of work going on. And Speaker, . . . on South Road, Mr. Speaker, you will you will find that next week we are going to pass an- recall that on August 10 this year, we were criticised other piece of legislation to provide concessions for up and down by almost every Member on that side for the hotel that is going to be developed there, Mr. railroading through subsidiaries for the Bermuda Speaker. And the reason for that is so that the equip- Housing Corporation so that they could start that pro- ment that is on its way to Bermuda now can be landed ject. and installed so that the show units are ready to go early next year. We are not going to be deterred, Mr. An Hon. Member: Correct. Speaker, by making progress in this country. Mr. Speaker, they talked about the fact that, Lt. Col. Hon. David A. Burch: And we were criticised you know, we need to be careful about the people of up and down the land for it. And I stood on the floor of this country, because they are listening and they are this House and I said that it would impede the pro- not stupid. I can guarantee they are not stupid. gress and the employment of Bermudians if we did not pass it. And so we used— Some Hon. Members: Absolutely!

Hon. L. Craig Cannonier: Point of order, Mr. Speak- Lt. Col. Hon. David A. Burch: I can guarantee they er. are not stupid. I can also guarantee, Mr. Speaker, that their memory is crystal clear. Lt. Col. Hon. David A. Burch: —our majority and railroaded it through. An Hon. Member: Yes.

The Speaker: State your point of order. Lt. Col. Hon. David A. Burch: Crystal clear. And they, in fact, remember, because they POINT OF ORDER lived it the five years under that administration, Mr. [Misleading] Speaker. And trust me, Mr. Speaker. Just as we won . . . do you know why we won 25 seats, Mr. Speaker? Hon. L. Craig Cannonier: The cries of that particular It has never been a big secret; it is something that we debate and Bill were the fact that we had one day to have always done better than them. We actually debate it. It was presented to us in one day. That is knock on peoples’ doors. We actually engage people unacceptable. It should never have been allowed. But on a regular ongoing basis. And so we don’t need we went ahead with it. The protest was over receiving them to tell us what is going on in our community, they a Bill in one day. What kind of consultation is that? tell us directly, Mr. Speaker. And we just heard today how consultation is primary You want to know why you all retired Wayne to them. Scott in [constituency] 27, and why the current Mem- ber won two-thirds of the vote, Mr. Speaker? I will tell them a little secret. Bermuda House of Assembly Official Hansard Report 7 December 2018 413

An Hon. Member: Your crystal ball. ing Corporation during their five years, whether it re- sided with the Ministry of Public Works. But that is Lt. Col. Hon. David A. Burch: It’s no crystal ball. We where it resides now. And I can tell you as of today, started canvassing in January 2013. That’s why. Mr. Speaker, the Housing Corporation is currently car- So, in July 2014, when the former Minister rying 407 families on their list for housing in this coun- and Member saw me, she said, Colonel, are you run- try. ning up in 27 again? And now, Mr. Speaker, in the interests of full I said, You know, I can’t answer that. disclosure, not all those [407] people do not have an- Our party picks its own candidates. But what ywhere to live. Let’s be clear. But this Government that demonstrated to me was that in a year in a half has a policy of adequately housing Bermudians. And they had never been back into the district, Mr. Speak- what I mean by that, Mr. Speaker, is that if you are a er. And that is why they had to ask me if I was run- family of four, with two children of both sexes, they ning, because, had they been, they would have said, cannot sleep in the same room. So, under this Gov- That crazy bye has been up here on a regular basis. ernment we are looking to accommodate people with And that is why. So we do not need any instructions that type of family in three bedrooms, Mr. Speaker. So from them about how it is to interact with the people of what I am hearing is absolute rubbish. That is what I this country. am hearing, Mr. Speaker, because when you stand Mr. Speaker, how much time do I have left? and say that we should not build, and I have the advantage of having had the responsibility a decade The Speaker: Nine minutes. ago, and it is very much déjà vu. They changed their name, but they have the same policy as the UBP, be- Lt. Col. Hon. David A. Burch: All right. That is plenty cause in 2006 when I took on this responsibility, we more time than I need. had the same problem, Mr. Speaker. No inventory— Two other things I would like to address, Mr. no inventory to sell, no inventory to rent. And we built Speaker. This whole business about the fact that you during the first term of a PLP Government. saved $11 million by going from 100 units for $36 mil- And I invite them. They can say whatever they lion to 20 units for $25 million, so, therefore, Bermuda, like. I know that part of it, Mr. Speaker, is to protect accept that we saved $11 million of your money. their real estate cartel, who carp and complain. Okay? Mr. Speaker, I thought that voodoo economics was buried in Simi Valley 14 years ago with the archi- [Desk thumping] tect of it. Lt. Col. Hon. David A. Burch: I know that. [Inaudible interjection] And so, when you say to me that you know Bermudians who have vacant units, and they cannot Lt. Col. Hon. David A. Burch: No, it wasn’t. No, it rent them . . . they cannot rent them in the main, Mr. wasn’t, Mr. Speaker. Clearly it has been resurrected Speaker, because they try to gouge people. That is by the former Government. the reason, Mr. Speaker. That is the reason, Mr. Speaker, because the Housing Corporation has had, [Laughter] before that time, during that time, and after that time, a programme where they will be the tenant. They are Lt. Col. Hon. David A. Burch: I cannot understand, not going to get the gouging rents, but you will be Mr. Speaker, why . . . I thought . . . when I made the guaranteed a rent, you will be guaranteed a tenant if statement not one question, Mr. Speaker. you are interested in participating in that programme to house your fellow Bermudians who you claim to say An Hon. Member: Not one! you have some care and concern for. If you did have some care and concern for Lt. Col. Hon. David A. Burch: Not a whisper, Mr. Bermudians for five years, you would not be sitting on Speaker. They always have to go back to the people that side of the House! You would not be able to . . . who write all their stuff and give them something to you would not be going into districts on election day in ask me. And so when you . . . Mr. Speaker, so . . . it July 2018 and be told by people who you thought astounds me how you could even say with a straight were your supporters, Don’t come near me, because I face that you saved the country $11 million. Who haven’t seen you in five years, and you haven’t done knows that? Who knows that? anything to help me. Mr. Speaker, then there is the suggestion that Mr. Speaker, my last point, and I carp on this there is a glut of housing in the country and so that is too, not a whisper from the Auditor General of these why they reduced down to 20 units and why Grand Islands. Not a whisper! And with an indictment like Atlantic is vacant and why they would not build any this, you say to me that you built 20 houses at $1.25 new units. Mr. Speaker, I do not know who in that million a house? Those people should be living in Government had responsibility for the Bermuda Hous- Tucker’s Town. Bermuda House of Assembly 414 7 December 2018 Official Hansard Report

Some Hon. Members: Yes. I do not know what Ministers of Public Works did under the OBA in that office, Mr. Speaker. And I Lt. Col. Hon. David A. Burch: They should not be suspect that the one who has the biggest mouth is living in . . . there are four units in one building, you going to speak after me and try to explain it away. But know, Mr. Speaker. I know you know that. There are I do know this, Mr. Speaker— four units in one building—and no yard! For $1.25 million! [General uproar and inaudible interjections] What I want them to do is answer that. We did not make that decision, Mr. Speaker. They did. And, Lt. Col. Hon. David A. Burch: I do know this, Mr. Mr. Speaker, I can tell you that we are headed to build Speaker. more houses around here. Oh yes, we are, because there is not a day that goes by that people bypass the The Speaker: One minute. Housing Corporation and figure that the Minister has a secret supply of houses under his desk, and that if Lt. Col. Hon. David A. Burch: One minute? I do they actually get to him they will get those houses. know this, Mr. Speaker— That is not the case, Mr. Speaker. But what it does do for me is it causes me to push as hard as I possibly [Inaudible interjections] can to ensure that we are going to be in a position to be able to help the people of this country in terms of Lt. Col. Hon. David A. Burch: Civil servants talk, Mr. housing. Speaker. Oh, do they talk. And they will let you know I do not need a lecture from anybody to do exactly what went on. I am afflicted with the obsession that. That is my mandate! That is my remit, Mr. of wandering around that Ministry talking to people. Speaker. I have been in this movie before and had So I get to understand what it was like. I get to under- some success. Normally, they say . . . what they have stand what it was not like, Mr. Speaker. And I can as- not said, Mr. Speaker, because I have had this too. sure you, Mr. Speaker, that whatever the assertions You can build, but you can only build in certain places. are in relation to . . . to divert, I did take one private You cannot build in Paget, Mr. Speaker. Because I plane ride and the Government of Bermuda paid for it. very well remember, clear as a pipe stack the Lough- Thank you, Mr. Speaker. lands complex, Mr. Speaker. I remember the announcement. The Speaker: Thank you, Minister. Any other Member? An Hon. Member: Can’t do it. I recognise the Minister of National Security.

Lt. Col. Hon. David A. Burch: I remember the cam- PLP GOVERNMENT REPRESENTS THE WORKING paign. Even after the first phase was built, they still MAN AND WOMAN talked about it. And I shall give them an education in politics. Hon. Wayne Caines: Thank you, Mr. Speaker. When it’s built you need to shut the hell up Because Mr. Speaker, I heard the Leader of the Oppo- when you send your person up here to try and get sition. He was very animated. He spoke very passion- some of those votes, they are going to tell them what ately. He said a number of things. I was able to focus the people told Grant Gibbons. on that which he said, and get right to the crux of it. There were a few things that he said which he clearly Some Hon. Members: Yes. does not understand the context of which he was saying it. Lt. Col. Hon. David A. Burch: The only thing I re- He made reference two weeks ago to the member coming out of your mouth, Mr. Gibbons, is Progressive Labour Party having a view of the bo- that you did not want me to live there. And so why are geyman. And he said it again tonight, about the view you coming to us for my vote? that there is a bogeyman. He took umbrage to what So, Mr. Speaker, you know there is a multi- the MP Famous, for constituency 11, was saying. If tude of things. They want to know what happened, I you do not understand the context, or the history, of suspect in the case of whatever the Opposition Lead- this country, then you will see the protestation, the er says tonight, I am surprised that he does not know highlighting of injustice in this country, as being the what it is, because I know that in 2012 when they won work of the bogeyman. the election and appointed a chairman of WEDCO, do you know what he spent his whole first year doing? An Hon. Member: Correct. Sitting in WEDCO looking at every file that went through that organisation, looking for what the media Hon. Wayne Caines: We represent a party that had said had gone on, and could not find a thing. speaks for the voiceless, the working men and women of this country that were disposed of their land down Bermuda House of Assembly Official Hansard Report 7 December 2018 415

in Tucker’s Town, that had their land taken from them, and that is what is creating the bogeyman of the PLP and it was re-built on. leadership. We speak for the people in this party who live in the central Pembroke parishes that do not have [Inaudible interjection] yards. And their homes, their yards . . . they were not allowed to buy homes with yards because was a part Hon. Wayne Caines: Because you would love this of a master plan to keep them from having the ability country to think that we are irresponsible, taking mon- to vote. ey and stealing money and not taking care of the finances of this country. But that is not the case. We An Hon. Member: Right! are seeing prudent leadership. And it is shown by what we are doing with NAMLC [National Anti-Money Hon. Wayne Caines: So when we speak of the peo- Laundering Committee] and how we have put a num- ple that we represent, this is a historic representation ber of Bills which have gone through this House and of injustice in this country. We represent the working our assessments are coming back and we are in good man, the struggling people of this country. That is the order. Those are the things that we are doing to voice which the Member for constituency 11 speaks. change this country, when we are working on things He speaks for the working men and women of this like the issues with economic substance, when we are country. And we can never forget that. doing things like working with the Bermuda Regiment, So something that you call “the bogeyman” not only to end conscription, but to give the young are the things that we see as injustice, as white privi- men and women in the Bermuda Regiment other al- lege, the inability for us to have specific things, have ternatives. neighbourhood schools . . . do not have opportunities So when you speak of the bogeyman, when that our colleagues have. The very reason we are we are taking this country that, for years, has dispos- here is to [level] the playing field, but you call it “the sessed people of colour, has taken away their oppor- bogeyman.” tunities, it is our responsibility to bring an equal playing field so that everyone gets a balanced opportunity [Inaudible interjection] in Bermuda. Now, I know that we are on both sides and on Hon. Wayne Caines: Sometimes, sometimes— different sides of the aisle. But we must bring it back to why these Members are here. We sacrifice. The Speaker: Talk to the Chair. Minister! Minister! An Hon. Member: And Boundary Lane. Hon. Wayne Caines: —sometimes— Hon. Wayne Caines: And Boundary Lane. [Inaudible interjection] We work hard. We sacrifice. We give our all for this country. And sometimes, in the cut and thrust The Speaker: Minister! of this House we oftentimes forget, all of us, why we are here. We have seen this week a number of things Hon. Wayne Caines: Sometimes you have to high- highlighted in our community. But let me tell you this: light wrongdoing. Sometimes you have to highlight We stand on our post every day with legislation that wrongdoing, injustice, unfairness, to change it! has to be passed in this House. We now see roadside sobriety testing. An Hon. Member: Yes! Some Hon. Members: Yes. Hon. Wayne Caines: And if we don’t bring it and keep it in the forefront, we forget that many people Hon. Wayne Caines: And it is not popular in all seg- that we represent are not living in gated communities, ments of this community. But guess what we are go- have the ability to be at Coral Beach playing tennis, ing to see? We are going to see less people dying on that they are struggling every day to make ends meet. our roads. We are going to see paying closer attention Those are the people that we represent. to their speed and to changing of their responsibility So, when we speak of . . . when you speak of on the roads. That is what we are going to do, in the the bogeyman, we are disassembling white privilege. absence of all the noise, in the absence of everybody And that is not necessarily a bad thing. We are talking pointing fingers and getting up. about a party that has to be focused on where we are And, of course, we are going to vociferous on going for our people. You spoke about arrogant, and a some points. But let’s look at what we are doing in the pendulum swing, and telling us to be careful about FinTech space. Forty-four companies have set up in what we are doing, and not to be haughty. Look at the Bermuda. This coming week we will make announce- work we are doing. It speaks voluminously. If we allow ments of more companies coming and setting up and the Royal Gazette to paint the narrative, that will be, creating jobs in Bermuda. So, after all the hype is Bermuda House of Assembly 416 7 December 2018 Official Hansard Report gone, everything that we are doing is to continue to they are being taught how to change it, because we make this country a better place. understand with certain things that are happening in When we look at the sugar tax, a number of our community, there have been years of things that people have decried the sugar tax. But what is the have happened to us that this party is working to re- basis of it? We have some of the highest instances of verse. So the psyche and the psychology of our peo- diabetes in this country— ple . . . they are being taught how to deal effectively with conflict. An Hon. Member: In the world. That is not being done by anybody else. That is being done by this party. Hon. Wayne Caines: In the world. So, when people talk about the bogeyman . . . The epicentre of this legislation was to change People, do not be misguided by that. Look at the ac- behaviour and to spend less money and to make sure tion, look at the development, look at the movement. that our people live longer and healthier and fruitful And I will not reflect on an earlier debate, but we have lives. seen the tax reform. So we have had to go up into the Guess what? That is not coming from any- echelon of business, come down to the social strato- where else. That is coming from this party. So when sphere and balance this country. How could we not you tell the story we have to make sure the whole sto- have the opportunity to do so? We see all the things ry is told, Mr. Speaker. Because they would like for us that are happening; we see what is happening and to be labelled as people that mismanaged projects, working in education. But we continue to have to do people that do illegal and nefarious things, and people so. who just come to this House and scream about rac- What we have learned from the Opposition is ism. But that is not the case. that they focus so heavily on specific segments that The agenda is clear. We are working to they neglected the people of Bermuda, the everyday change the life of each and every Bermudian. And we men and women. Those are not my words; they sit in know, and we are clear of the responsibility. So we the very seat that bears an effigy to their failings. And are not going to wait on the Royal Gazette to tell eve- now they challenge us as we right the wrongs of their rybody in this country what is going on; they won’t do leadership and underserved civil service, and under- it! staffed civil service, and under-funded civil service. And now we are trying to make heads and tails of the An Hon. Member: That’s right! mess that they have created. And they challenge us to create a bogeyman? Hon. Wayne Caines: Because they represent ele- We are balancing this country. Our children ments that want to demonise and villainise. And, yes, go to these schools. This is our country, and we will that is not the bogeyman. That is fact. Because you continue . . . look at the legislation that we have can look at historically what has happened in this passed. Look at the opportunities that we have given country. to young Bermudians. When you go to the Bermuda College, the majority of the children there ran to us at An Hon. Member: Yes! our last meeting thanking us for giving them the opportunity to be able to afford to go to school. Do you Hon. Wayne Caines: But the reality of it is . . . it is not know who cut the funding? The OBA Government cut just the words that you know. We are looking at the the funding for education! actions of how this country is changing through this party’s leadership. An Hon. Member: Aah!

An Hon. Member: Yes. Exactly. Hon. Wayne Caines: Where do all the increases go? Show me the increases. The increases went to the Hon. Wayne Caines: We have seen an increase in America’s Cup! And they are now held to account for gang violence in Bermuda. And this Government is their mismanagement of the social element of this working to change it. We have seen more G.R.E.A.T. country. They laud that they changed this country [Gang Resistance Education And Training] gradua- economically. At what expense? To the very expense tions, police officers, community support workers, go- of the people, now that we are left to try and pull the ing into this community, rolling up their sleeves. Three pieces together. graduations this week, two next week. And then when we challenge them on it, when Middle schoolers are now being trained how we challenge their bad record of social justice, their to deal with violence, how to deal with conflict. We bad record of social justice, they throw in our face, have created two circles, restorative circles at Cedar- when we highlight the injustice of years in this country, Bridge and at Berkeley where our young men are they throw in our faces that we are imagining a bo- coming in and, when there is discord, when there is geyman. Do they understand the very effigy of what disquiet, no, they are not being taught how to fight; we have to go through in this country every day as Bermuda House of Assembly Official Hansard Report 7 December 2018 417

Bermudians struggling to make it while they represent When I look at MP Ming, when I look at the an oligarchy that oppressed the working majority in Premier, when I look at MP Furbert, when I look at MP this country for years? And they say that they speak Famous, we all trust our children to the public school on our behalf? system. That is something that we can say about this For generations they represent an oligarchy side of the House, Mr. Speaker, because we are seri- that oppressed the people of this country. And we now ous about what is happening in education. struggle to keep it together, to balance it. And they Like all, I am saddened by . . . yes. The Mem- now have the audacity to say when we reference their ber interpolates, did I go to public school education. I bad deeds that we are speaking of the bogeyman? attended the Elliot Primary, Mr. Speaker. The same We will continue to work for the people of school my daughter attends. Bermuda. And sometimes when we come to the Mr. Speaker, I am saddened by the recent House we have to remind each other through strong events. And I do not want to see our educators en- words of our past. We have to stand for justice. And gaged in any sort of industrial action. That is detri- sometimes it is uncomfortable to hear what the oligar- mental to the studies of our students. Our students chy has done, how they have benefitted, how they show up for school faithfully and expect to learn. And have gilded their homes, how they have gilded their they expect their teachers to be there as well. But, Mr. lives off the blood, sweat and tears of black Bermudi- Speaker, right now we have a problem. We have a ans. Sometimes we have to highlight that and it’s un- problem, Mr. Speaker, that is not unsolvable. We have comfortable for all. But we will continue to work a problem that requires the will, we have a problem through it. that requires the fortitude to do the things necessary But guess what? The disadvantage that every to take education to the height it needs to be taken to, one of the Opposition has is that we will do it for all of Mr. Speaker. Bermuda—white, black, everybody in this country. We have been here for 18 months. And every day is spent working hard to get our education system [Desk thumping] up to the point where it is supposed to be, Mr. Speak- er. When we first took office, Mr. Speaker, one of the Hon. Wayne Caines: We will work to see their bene- first things that I, as Education Minister, had to do was fit. And that is the difference. bring a Cabinet paper to refurbish Dellwood Middle We believe in a good Bermuda for all, that School, a school that stood closed since May of 2017 high tide raises all boats. Thank you, Mr. Speaker. under the former administration. And they had not even begun to start the work needed to get it ready for [Desk thumping] September. The very first thing we had to do was spend money to get that school ready, Mr. Speaker. The Speaker: Thank you, Honourable Member. Those are the types of challenges we had to deal with Does any other Honourable Member . . . we when coming in. We had failing infrastructure from recognise the Honourable Minister of Education. You years of neglect where the former Government took have the floor. money from our schools to spend on other things. Mr. Speaker, we have a Shadow Minister re- PUBLIC EDUCATION—INDUSTRIAL ACTION leasing statement after statement of hollow things BY BERMUDA’S UNION OF TEACHERS every week talking about what is wrong in education. Mr. Speaker, let’s talk about what is wrong in educa- Hon. Diallo V. S. Rabain: Thank you, Mr. Speaker. tion right now which is getting fixed. I see tonight we are a bit fired up. I was hop- Mr. Speaker, the Shadow Minister of Educa- ing we would actually hear . . . I was hoping that we tion had the audacity to release a statement yesterday might get out of here a little bit early. But tonight, Mr. that talked about the need for more collaboration, the Speaker, I find myself having to stand to speak about need for paraeducators, the need for learning support education and what has been going on. I want to up- teachers, the need for professional development. date the people of Bermuda about how hard this Gov- Well, let me tell the Bermuda public what happened ernment has been working to achieve our election between 2012 and 2017, Mr. Speaker. mandate. And that is to reform education. Mr. Speaker, in 2012 there was $1 million for Mr. Speaker, I stand tonight before my col- professional development. In 2017, it was zero. leagues and before Bermuda not only as the Minister of Education, but as a parent with a child within the Some Hon. Members: Aah! public school system. I stand as a citizen of this country who is very concerned about the action we have [Inaudible interjections seen within our public school system as of late. And I know I am joined by other colleagues who stand on Hon. Diallo V. S. Rabain: Mr. Speaker, in 2012, this side of the House who entrust their children to paraeducators had a budget of $5.6 million. In 2017, it public school education. was $4 million. Bermuda House of Assembly 418 7 December 2018 Official Hansard Report

Mr. Speaker, in 2012 to 2017 the budget for nothing to increase the numbers in these critical areas learning support stayed the exact same. Why is this I spoke about, such as paraeducators and learning an issue, Mr. Speaker? It is because we recognise support teachers, did nothing to increase those num- that this young man at Dellwood who is having prob- bers but now they have all the answers. lems did not turn 13. He wasn’t born on Sunday and This Government is now spending all of its turn 13 on Tuesday. It took years for him to get to that time to right the wrongs of yesteryear. If I have any- point. But we knew that he was like that. We knew thing to say, Mr. Speaker, I would say that they just some of the students coming through the system went back to the days of the UBP when they did not needed additional support. But did the Government care about school. School was just something that put things in place to support that? No, they did not. In they put in place so the people would have something five years they did nothing, Mr. Speaker. to do. They had no intention of educating our children, Mr. Speaker. And it is obvious from what we see to- [Inaudible interjections] day. No indication, Mr. Speaker. So, when you look at the BUT’s list of griev- The Speaker: Members! Members! ances, I empathise with them. When I talk to the teachers, I empathise with them. I understand what Hon. Diallo V. S. Rabain: Mr. Speaker, the budget for they are going through. But I want them to know that education in 2012 was $120 million. When this group this Government has their back. And this Government was voted out, that budget had dropped to $109 [mil- will do what needs to be done to ensure that our lion]. schools have the resources that they need to do the things for our children that need to be done, Mr. Some Hon. Members: Aah! Speaker. We are making progress. We are a long way Hon. Diallo V. S. Rabain: We could not do what away from where we want to be. We are a long way needed to be done with the budget they left in place. away from where we should have been. But if this They neglected our students, they neglected our Government did not have to take a break and sit back buildings, they neglected our educators, and now this and see what we need to do better in order to win Government has the fortitude to do the things which back Government. It is unfortunate that our children need to be done to put the things in place to ensure had to suffer through the years of an OBA Govern- that education is where it needs to be. ment, Mr. Speaker. But they will not suffer through the We were elected to do that, Mr. Speaker— years of a PLP Government. Thank you, Mr. Speaker. The Speaker: Members, Members. [Desk thumping] Hon. Diallo V. S. Rabain: We were elected to do that, and we will do that. The Speaker: Thank you, Honourable Member. Change is difficult. But change is coming, Mr. Does anyone else wish to speak? Any Hon- Speaker. We spent the first 18 months making sure ourable Member before the Premier closes out? Does that our buildings were safe for our students. We any other Member wish to speak? The Premier will spent the first 18 months looking at the system and close it out. I hear comments from the other side. making sure that we had things in place. We spent the first 18 months increasing scholarships for our stu- [Inaudible interjections] dents so they can go to Bermuda College. We spent the first 18 months increasing monies to make sure The Speaker: Premier? that we have the programmes in place to restore our Premier, take the floor. infrastructure, upgrading our technology. We are not there just yet, Mr. Speaker. But we JETGATE are intent that this is what will happen, despite the hollow attempt by an asleep-at-the-wheel Shadow Hon. E. David Burt: Thank you, Mr. Speaker. Minister who had no idea what was going on in this Mr. Speaker, I will not talk long. But it has Ministry— been a very interesting night. It was a night which started on a good wicket and then got very excited by The Speaker: Let’s keep the comments . . . you’ve an Opposition Leader that exhorts everyone to tell the been on a good line, keep the comments up high. truth, but refuses to tell the truth about why he went on a jet ride, Mr. Speaker. Hon. Diallo V. S. Rabain: —has no idea what was So, the only thing I have to say is . . . and I going on in this Ministry, but now has all of the an- have said it on numerous occasions. If the first thing swers, Mr. Speaker. I find it disingenuous that this you say when you are sworn into office as the Leader Opposition, who spent their time in Government doing of the Opposition is that you are going to come clean Bermuda House of Assembly Official Hansard Report 7 December 2018 419

on what actually took place in Jetgate, and you actual- POINT OF ORDER ly refuse to come clean about what took place in [Misleading] Jetgate, then I do not believe the people of this country should deserve to believe anything that it is that The Speaker: Continue. you are saying until you actually talk about the one thing of which you promised to say. Because no mat- Hon. E. David Burt: So, Mr. Speaker, you do realise ter what you want to talk— that in the last minute the story changed twice. The information first of all, it was already all in the public Hon. L. Craig Cannonier: Point of order, Mr. Speak- domain, and then it was, Well, I put additional infor- er. mation in the public domain. While at the same point in time, the former Leader of his party is still telling The Speaker: We will take your point of order. him that he needs to come clean over the information of what happened with Jetgate. POINT OF ORDER But that’s okay, Mr. Speaker, because there is [Misleading] one thing that I will agree with the Opposition Leader on. And that is talking about Jetgate is not going to get Hon. L. Craig Cannonier: Clearly the Honourable anyone a job. That is a fact. However, when the peo- Member is misleading the House and the general pub- ple on that side want to go back through history, or lic. He certainly does not know what he is talking talk about openness and transparency, but refuse to about, about coming clean. All the information is al- be open and transparent about their own activities, ready out there. That is the ironic thing about it. Mr. Speaker, that means that the people of this country, just like when they were in Government, do not The Speaker: Premier. trust them, they still will not trust them now, Mr. Speaker. It is that simple. Hon. E. David Burt: See, Mr. Speaker? When people So, Mr. Speaker, there is a whole lot of mum- . . . there is a sign in West Pembroke that says some- bling. You can point-of-order me, Mr. Opposition thing along the lines of, you know, if you tell the truth Leader, if you want, but you will have your time to you don’t have to remember what you said. And it is speak. very interesting that if you came into office and, in swearing in, you say you are going to disclose all of The Speaker: Talk to me. the information, and then you put out no additional information . . . and then tell the people that it is in the Hon. E. David Burt: Because here is the thing, Mr. public domain— Speaker.

Hon. L. Craig Cannonier: Point of order, Mr. Speak- The Speaker: Talk to me. er— PLP EXECUTING ITS PLATFORM Hon. E. David Burt: —why would you have to say that you are going to disclose information? Hon. E. David Burt: No problem. Here is the thing, Mr. Speaker. Look at the Hon. L. Craig Cannonier: Point of order, Mr. Speak- progress that is being made. Look at the progress that er. is being made, whether or not it is overseas, whether Maybe if— or not it is in a meeting that I held here earlier today with a company that is setting up operations that will The Speaker: Premier, we will take his point of order. be setting up office space and moving people to Ber- muda to start jobs, whether or not it is the Economic POINT OF ORDER Substance Act which we tabled today after months [Misleading] and months of negotiations with the European Union and our private sector partners to make sure whether Hon. L. Craig Cannonier: Both of those things aside, or not those are the exit reports which we got on our there was an interview that I did immediately . . . not draft mutual evaluation report on our Anti-Money immediately, but pretty soon after which— Laundering Assessment, that they did not do any work on getting done, Mr. Speaker! An Hon. Member: What’s your point of order, man? [Inaudible interjections] Hon. L. Craig Cannonier: He is misleading the House. More information was given. Hon. E. David Burt: This is the progress that is being made. So while we hear the endless cries about retail sales, at the same point in time that the chairman of Bermuda House of Assembly 420 7 December 2018 Official Hansard Report their favourite mouthpiece, the Royal Gazette, is on [At 10:44 pm, the House stood adjourned until TV every night telling people to shop online, we will 10:00 am Friday, 14 December 2018.] not take our eyes off of the goal. And do you know why, Mr. Speaker? Because we were elected to make life better for people. We were elected to make Bermuda fairer for people. We were elected to advance our agenda for people. And today we took another step in that direction. So, while Opposition Members will talk about the fact that the increase for pensioners in this country is not that big, guess what? They are getting an increase in line with inflation. Those are the facts. We understand what we were elected to do. We have a platform that we were elected to execute. We are executing on that platform week by week by week, Mr. Speaker. And we will continue that march. And it does not matter how animated the Opposition Leader gets on a weekly basis, because until he comes clean on (and I quote from what he said inside of that fall of Clinton that, I, over time, was not completely honest. Well, you have plenty of time to be completely honest now, Mr. Opposition Leader. But until that point in time, until that point in time, until that point in time, Mr. Speaker, quite frankly, the people of this country should not listen to anything he has to say, because the only question they need to know, the only question that they need to understand is, why can’t that side not be trusted to be clear and honest with the people of this country. So, here is what I will say in closing, Mr. Speaker: We have had a good debate. I want to commend the Minister of Health for her Bills. I want to commend the Minister of Finance for a very busy day—

[Desk thumping]

Hon. E. David Burt: —at the office, making sure that we continue to pass legislation that is going to improve the environment that we have here in Bermuda and make things better. And I want to thank the people who contributed to the debate on the Tax Reform Commission. We will come back next week, Mr. Speaker, for some very important debates. And we will continue the work of which we are doing for the people of this country. We will execute our mission, and we will build that better and fairer Bermuda and no amount of gesticulation from that side is going to deter us from our mission. Thank you, Mr. Speaker.

[Desk thumping]

The Speaker: Thank you, Honourable Members. We stand adjourned until Friday next at 10:00 am.

[Gavel] Bermuda House of Assembly