Premier Paula Cox told businesses in Bermuda to ‘keep dreaming’ about getting a payroll tax reduction today at the Chamber of Commerce’s Budget breakfast panel discussion hosted by PwC.
“In your dreams”, she lightheartedly said to a chuckling crowd when asked by the panel moderator whether there was any chance of a reduction.
When questioned about whether she would consider austerity measures to help Bermuda’s struggling economy, she said that once businesses were back on their feet, then she might consider taking away the “crutch” of concessions for the hospitality and retail sectors.
She added that the Government could have saved $21 million by not giving out business concessions, but reiterated the Government favoured growth over austerity measures.
“There can’t be any guarantee going forward,” she said of continuing concessions.
Wayne Caines, CEO of Digicel and member of the executive committee of the Chamber, was also on the panel representing the business community.
In his speech he said that Bermuda needed to reduce spending, cut costs and have a “clear plan for the future” to increase revenue.
“It must be noted that as of March 31, 2011 the Government’s revenue deficit stood at $254 million,” he said. “Even with borrowing from the Sinking Fund and pension plan, the Government will still be short $172 million in 2013, with no viable means of repayment.
“There must be a refocused, lean Civil Service, cutting jobs through attrition will not be enough. There must be a cut in pay for Civil Servants and MPs. I know that talk of cutting jobs and salaries in the Civil Service is not easy and is never popular. But the fiscal times in which we are living call for such measures.”
He offered “out-of-the-box” revenue-generating ideas, including privatising LF Wade International airport and the ferry service, long-term leases for small uninhabited islands and generating income from satellite orbital slots through administration fees.
