January 30, 2013 at 5:54 p.m.
Budget 2011

Ministers outline raft of plans, spending cuts


By By Simon Jones & Amanda [email protected] | Comments: 0 | Leave a comment

FRIDAY, FEB. 18: There was no backslapping, no extravagant applause and no cries of “thank God for Paula Cox” as there had been at last year’s Budget press conference.

Instead, today’s post-Budget speech event was, by comparison, more subdued and businesslike — with an undertone of determined optimism.

Catchphrases such as “doing more with less” and “re-setting the dial” bounced around a packed Cabinet office as each government minister in turn to explained their spending priorities for the next year.

Premier Cox kicked off proceedings by saying that payroll tax breaks worth $50 million would help to stimulate the economy.

The reduction — from 16 to 14 per cent, a reversal of last year’s increase — will help growth by giving more money back to consumers.

As a result, “jobs will be retained and preserved, and when businesses are stronger, more will be created”.

When asked if last year’s hike had been a mistake, the Premier said: “Without it we would have risked a ratings downgrade which would have driven up the cost of borrowing in Bermuda and damaged our reputation.”

Ms Cox also announced Government’s budgeting process would become more transparent, involving the general public as stakeholders.

She said the “open Budget process” would give people a greater understanding of its workings.

“Now you’re going to see it become more transparent and engage the public,” she said.

 

Deputy Premier and Minister of Public Works Derrick BurgessDeputy premier Derrick Burgess spoke enthusiastically about a new trash collection scheme that will see rubbish collected less often to cut costs.

He announced Government would purchase a new turbine to produce power for BELCo and said plans were afoot to deal with asbestos disposal.

The Works Minister outlined improvements to the water supply system in the West End and stated road resurfacing work would be done during the summer so manpower could be diverted elsewhere.

Mr. Burgess said he was hopeful work on the 9Beaches and Morgan’s Point developments would begin within the next 12 to 16 months.

 

Minister of Education, Dame Jennifer SmithDame Jennifer Smith, Minister of Education, said her ministry would aim to “support schools, to raise teaching levels so that students are encouraged to learn to the highest possible degree” and to “provide expert help and services”.

The Ministry will also “evaluate the results of teaching and learning to determine progress and to offer help and encouragement where needed”.

The Ministry is to relocate under one headquarters with the Department of Education at Southside, to bring greater unity.

The Minister also hopes the Adopt-A-School programme will be expanded to encompass more support from businesses in the community.

“I look forward to the day when every school can boast of being ‘adopted’,” she said.

The Ministry has been allocated $128,158,000 for 2010-11. This includes $4,495,000 for Ministry headquarters, $105,544,000 for the Department of Education, and $18,119,000 for Bermuda College.

Another $3,488,000 has been allocated for the capital account.

To ensure ‘economies of scale’, there will be one line of accountability for office supplies, travel, consultants (both foreign and local), contracts, grants, professional development and training. This will come under the authority of the Permanent Secretary, as represented by the Commissioner of Education.

Dame Jennifer said: “We have trimmed expenditure in some areas; opted to modify and/or discontinue some practices and procedures. Specifically, the way we provision student services in schools and make purchases; and we are examining the way we allocate substitute teachers and paraprofessionals. We will continue to examine every policy and programme to ensure that it is in line and relevant to our mandate.

“There remains much work to do as we reset the dial – but we have started.”

 

Minister of Economy, Trade and Industry, Senator Kim WilsonKim Wilson pledged that her department would reshape the economy and remove barriers for jobseekers.

She explained the Bermuda Small Business Development Corporation would be boosted by the new EEZ offices despite a reduction in their grant.

The Minister for Economy, Trade and Industry announced the establishment of a one-stop career centre and a jobseekers’ website, careers.gov.bm, to help people find work.

Ms Wilson said the Post Office would “re-invent” itself by adding new features like secure email and a U.S. shipping address system for overseas shoppers.

 

Next to rise was Patrice Minors – much to the chagrin of Colonel David Burch who was due to talk next.

Ms. Minors returned to her seat to roars of laughter while the Minister Burch quipped: “I am going to lock you up”.

 

Minister of National Security, Senator Lt. Col David BurchDavid Burch, Minister of National Security, said despite budget restraints, the safety of Bermudians would not be compromised.

“Tough economies make us more sensitive to management and more attuned to stronger performance,” he said.

“There is less scope for turning a blind eye and the importance of prudence in the management of resources is brought into sharper focus.

“I wish to assure the people of Bermuda that the successes achieved in public safety and restoring safer communities will not be sacrificed in the name of funding challenges.

“The Bermuda Police Service will continue to provide the coverage and targeted enforcement that has yielded the impressive results of arrests and charges through 2010.

“This will require some deployment management on the part of the Commissioner and he and I will continue to discuss how to meet the needs of the public in a way that does not ‘burn out’ the hard-working men and women of the BPS.”

On housing matters, he said on Harbour View Village at Southside will have its official opening on March 5.

Staffing for the Bermuda Fire and Rescue Service will increase this year when the current recruit training course ends.

The Minister also announced the creation of a single border protection agency.

“The Department of Immigration becomes the Department of Border Control and it will consist of those elements of HM Customs and the Department of Immigration concerned with this function.”

The Bermuda Public Services Union and affected staff will be consulted to devise a “best-practice model”.

 

Minister of Business Development and Tourism, Patrice MinorsMinister of Business Development and Tourism Patrice Minors announced a $7.9 million cut in tourism spending.

She revealed the Music Festival would be ditched while $500,000 would be ploughed into a variety of smaller events with local performers.

Ms Minors said her department would cut costs in advertising by going directly to media buyers themselves.

She also set down plans to launch a Hotel Entertainment Programme.

 

Attorney General and Minister of Justice, Michael ScottMichael Scott, Attorney General and Minister of Justice, said his ministry would aim to “balance the fair and proper administration of justice” with rehabilitation of offenders.

He said transformational programmes will re-integrate offenders into society and reduce recidivism.

Mr. Scott said legal aid has been cut, and an overhaul of the granting of aid will be unveiled in forthcoming legislation.

The Witness Care Unit will be further developed, to ensure greater care in Supreme Court and Magistrates’ Court cases.

 

Minister of Transport Terry ListerTerry Lister seemed upbeat and cheery despite a $6 million drop in the Transport Department’s budget.

He’s hopeful that his blossoming relationship with taxi drivers will continue to grow as long as he does not mention the “three magic letters”. (GPS)

Mr. Lister announced there would be no new ferries brought in this year, despite the mechanical problems that arose in 2010.

And he said he would be talking to JetBlue and WestJet to ensure Bermuda gets more flights not less.

The Transport Minister also outlined plans for the hiring of new bus drivers and a revised bus schedule that would save $500,000.

 

Zane DeSilva, Minister of Health, began his Budget statement by praising the Premier.

“I’d like to congratulate the Premier on a fantastic Budget,” he said.

“You may have set a Bermuda record today for the silence level of those in the House of Assembly listening to your Budget presentation.”

Mr. DeSilva said the priorities for this year were to ensure that the development of the new hospital proceeds as planned and to develop a final version of the National Health Plan.

Mr. DeSilva said Government would continue to operate the two public health insurance products — HIP and FutureCare, the latter of which will be available to all seniors from April 1.

 

Glenn Blakeney’s speech read like a severe hair cut – cut here, cut there, another snip around the edges –his budget was slashed from $71.5 million to $66.2 million.

The Youth and Families Minister echoed the Premier’s mantra of “workfair not welfare” before listing a series of cost cutting measures in his department.

Mirrors’ funding will be reduced by $800,000 while the Bermuda Cricket Board will get just $250,000 and the Bermuda Football Association will received $750,000 – a huge reduction in support for the island’s two premier sports.

Mr. Blakeney had more bad news when he announced that there would be a reduction in Financial Assistance by $1.2 million and daycare allowance would only go to families that earn less than $50,000 — down from $70,000.

 

 

Walter Roban said Bermuda is to become a player in the global satellite industry.

The Minister of Environment, Planning and Infrastructure Strategy, said securing “orbital slots in space” would generate revenue on a long-term basis. Details however, were scarce.

The Department of Energy is also ready to release its White Paper. Mr. Roban said. This will “chart a course for Bermuda to decrease its reliance on fossil fuels”.

He sad that anyone submitting a planning application will be pleased to hear the ministry will be cutting processing times.

 

Neletha Butterfield spoke a lot about books – she even detailed the range of books available from the national library.

The Minister for Public Information announced that the libraries budget would remain the same at around $2m.

By this time many it was getting towards the end of a long press conference and many of her colleagues standing behind her were seen busily using their BlackBerries.

 

Michael Weeks, Minister without Portfolio, gave a brief rundown of the Non-Ministries 2010/11 budget.

This has been allocated as $14,665,000 — an increase of $1,072,000, or eight per cent.

He announced that the Auditor General is to get more staff. And the Ombudsman will get a new investigations officer, “to meet increased workload of the public’s enquiries and complaints”.


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