2/10/2010 9:28:00 AM Gov't should scrap its takeover bid for the city
* File photo by Kageaki Smith. No debt: City Hall’s finances are in good shape.
Dennis Tucker, guest columnist
Lately there has been a lot of discussion about the growing economic challenges facing Bermuda.
Today, too many Bermudians are worried about job security and providing for their families. The rise in unemployment continues to climb and good paying jobs are becoming scarce across the island.
This economic crisis has also impacted the Government.
In the past two years, Bermuda's national debt has nearly doubled, to more than a half billion dollars - $680 million.
At this rate, Bermuda's national debt could top one billion dollars by 2012. That amounts to nearly $15,000 for every man woman and child in Bermuda, and more than $60,000 for a family of four.
Government monies that are available to reduce the national debt or applied right here in Bermuda on solving critical problems such as the education crisis, housing shortages and security shortcomings are consistently being paid out to foreign consultants and that money rarely comes back to benefit Bermudians and our economy.
These challenges are daunting, and government is struggling to balance its budget.
The new Auditor General herself stated recently that the government's current challenges include a "weakening cash position, as evidenced by a substantial bank overdraft, expenditures significantly outstripping revenues, increasing long-term debt and, by extension, a growing deficit and public debt".
At the same time that Government struggles, however, the Corporation of Hamilton continues to thrive and demonstrate sound fiscal management.
During a recent public town hall meeting, the Corporation of Hamilton presented the community with the state of the city's finances and reported that the Corporation has managed taxpayers' money effectively and responsibly.
The city's property portfolio, which we all use and enjoy, is well managed and this ensures that the City remains a vibrant place to live, work and visit.
City is debt free
We continually are working on city projects and upgrades to improve the daily lives of the City of Hamilton community.
We were very proud to announce that the city is debt free and has been for more than 15 years for all of its operational purposes. And our financial affairs are audited every year by independent auditors, and without fail the reports are clean and unqualified.
Additionally, it is worth noting that for the first time in Corporation history, the new team at City Hall has made all of the city's financial statements and presentations public; we have opened our board meetings and town halls to the public and to the media.
The people of the City of Hamilton deserve to know how taxpayer money is being spent and we demonstrate the good works that are being developed to improve the lives of all city residents.
Given the financial strength of the Corporation of Hamilton, and the many budget challenges that the Government faces, it is curious that Government has decided to take steps to take over both the Corporations of Hamilton and St. Georges.
Even more concerning are reports that, faced with mounting national debt, the Government has decided to pay $800,000 in taxpayer dollars to two consulting firms (one from the U.S.) to help them in their takeover efforts. You may wonder about the appropriateness of foreign consultants deciding the fate of a uniquely Bermudian city.
It appears that Government looks to take advantage of the Corporation's fiscal strength - it can be likened to using Hamilton to pay off the Government's massive credit card bill.
However, with all of the challenges that Bermuda is facing right now, the government should prioritize their actions and deal with other critical issues in addition to the rise in unemployment, like improving education and reducing crime that has plagued the island.
The Corporation of Hamilton has a strong record of fiscal responsibility and managing the taxpayers' money in an effective manner.
Given the daunting budget shortfall that Government faces, along with the many challenges facing Bermuda that Government must deal with, the taxpayers' money can be better served than on a risky and expensive takeover scheme.
DENNIS TUCKER is a Councillor for the City of Hamilton and Chairman of its Finance Committee.
Posted: Tuesday, February 16, 2010
Comment by:
SBT
For several years the Corporation of Hamilton went through difficult times and changes were much needed, particularly the need to hold open meetings and to extend the mandate. However, throughout this period the Corporation still managed to balance its budget, not go into debt, have their accounts audited annually and submitted to Government on time, and they still managed to maintain essential services in the City. Where else do you have your trash collected every day? They now have a new and dynamic team under the leadership of Mayor Gosling. They have completely opened their meetings, and they submitted recommendations to Government at least 18 months ago to modernize and update the mandate. For some unknown reason Government has done absolutely nothing with these recommendations, and for anyone who is not familiar with the laws of the land, the two Corporations have NO power to amend voting rights as laid down in the Municipalities Act. That is the sole responsibility of the Government - whichever Government is in power. It will be interesting to see just exactly what recommendations come out of a study costing $800,000. Many people suspect that this is simply a cover up for a Government takeover of Hamilton's assets. It remains to be seen how objective the study will be, and even if will be made public. How ironic that at a time when the Corporation has made the necessary moves to be completely transparent, our Government is conducting a study that may never see the light of day.
Posted: Sunday, February 14, 2010
Comment by:
Greg Roberts
Hey Keg...speak english.So folks may not understand those educated sentences of yours...In a nutshell,I think what you really said is...THEY WANT IT ALL..but as always,as Brown has said many times,"its just a storm in a teacup",this to will be forgotten.I think its really time that the Bermuda public wake up.Bermudians have just one problem,we're all just to nice,it's time to hurt some feelings.
Posted: Wednesday, February 10, 2010
Comment by:
Paul Clinton
Hey dude, party Green will consign to the trash anything that works. You know, that shop-worn aphorism, "If it ain't
broke, break it anyway!"
Posted: Wednesday, February 10, 2010
Comment by:
KEG
The hypocrisy and sad irony of the PLP Government’s attempt to gain control of the Corporations of Hamilton and St. George’s is ridiculous. How can a political party which supports and promotes the idea of an independent Bermuda be so hell bent on effectively colonising from within?
These actions only serve to reinforce what most Bermudians see as nothing more than a pillaging of our own resources by a financially irresponsible and intellectually spent PLP Government struggling to keep pace with their own political and fiscal short comings that have, without question, burdened future generations of Bermudians with hundreds of millions of dollars of debt.
