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2.23pm: That's the end of the press conference. To summarise with the catchphrase of the day "We must do more with less".
Big cuts for Education (-$15m), Tourism (-$7.9), the police force (-$7.5m), youth, family, sports and community development (-$5.3) and Transport (-$6m). Even the much touted Mirrors programme and Financial Assistance had their funding cut.
For the Bermuda Cricket Board and Bermuda Football Association the glory days of big Government support are over — their funding has been slashed to $250,000 and $750,000 respectively.
The Music Festival has been axed and $500,000 allocated instead to a series of smaller events.
No new ad-agency for tourism will help save costs.
The pay-roll tax reduction (back to 09/10 levels) is expected to help businesses grow and provide employment. New one-stop careers centre and website also planned as well as regional Economic Empowement Zone offices in east and west.
Transport Minister Terry Lister says new bus schedule will mean more bus drivers can be hired and $500,000 saved. The theme has been creative measures to cut costs, keep staff (no job cuts in public sector) and still provide strong services.





2.08pm: She is explaining Financial Assistance cuts - "You don't just give a person a fish, you teach them how to fish". Synergy with Department of Labour and National Training Board will seek to get people off benefits and into work or training
She says Government will continue to help people - but will do so by being better at helping them earn for themselves - back to 'workfare nor welfare'.
"Its about how you apply Financial Assistance".
We've had mentions of Steven the mechanic, Annie (I think that was the shop owner) and now Jimmy the plumber (Joe's cousin). Are they this year's Sven and Johnny?



2.02pm: "Sometimes we got the sums wrong" says the Premier in response to a question about the difference between revenue forecasts and the actual spending.

2pm: Premier says it was not a mistake to cut payroll tax last year because revenue was needed to help people - she says it was necessary at the time, also, to preserve financial rating.
Says looking forward it was important to seek to stimulate job growth — without being reckless.
"Find a way without being lavish to inject stimulus into the economy."

1.58pm: Questions now: Premier is explaining the $84m capital projects, saying it is spread over several initiatives - costs have been cut by staggering some planned projects over a longer period.
Tynes Bay — $27m — is the biggest single expense.

1.55pm: Michael Weeks announces small increase (around $1million) for non-ministries, which includes Ombudsman and Auditor General.
Says increasing staffing for the Auditor General will help finish reports, new investigations officer in the Ombudsman's office, Legislature funding has increased to facilitate public committees.
Says better accountability is important to the Government even at a time when cuts are being made elsewhere.


 
1.50pm: Neleetha Butterfield, public information minister, says libraries budget will stay the same (around $2m). She is talking about the range of books it has! She is now praising the Archives department. She is going through every part of her budget - $35.5m.

1.44pm: Walter Roban says Environment gets $15m.
New white paper planned to decrease reliance on fossil fuels.
New focus on customer service within the Department of Planning. Delays in the decisions at the department can have social and economic impact — 'looking forward to reducing some of those frustrations' - ie: making the planning process quicker.
Vague details of plans to attract space-exploration business to Bermuda.
More can be done to increase farming and produce food locally. Ministry will work with partners on new agriculture policy.


1.35pm:  Youth and Families minster continues the 'more with less' theme and repeats Premier's pledge of 'workfair not welfare'.
Reduction in budget from $71.5m to $66.2. Mirrors funding has been reduced from $2.5m to $1.7m and will only hold one residential session instead of two.
Youth, Sport and Recreation will get a small budget reduction.
Bermuda Cricket Board will get just $250,000 and the Bermuda Football Association of $750,000 — a huge reduction for the two national sports which have enjoyed increased funding in the last few years.
Reduction in funding for Financial Assistance by $1.2m — paid for through better assesment of clients to get them back to work and control of abuses of food voucner programme- daycare allowance will only go to people who earn less than $50,000 instead of $70,000

1.30pm: Health Minister Zane DeSilva says his ministry will get  $172.2 - a reduction of five per cent.
Priorities: Ensuring development of new hospital and renovation of old hospital proceed as planned, Developing the final version of the national health plan after the completion of the consultation process.
Will put together teams to work on implementing the 11 goals set out in the plan and any other priorities that emerge after consultation.
'Well Bermuda programme' will be revitalized in a bid to promote healthy lifestyles and help cut health insurance costs.
FutureCare open till all seniors from April onwards.
No compromise on quality of service.


1:25pm: Transport Minister Terry Lister says his ministry will get $76million (plus $3m for capital expenditure). That's a decrease of just over $6m on last year. Increase in funding, though, for the Department of Civil Aviation which brings in foreign currency exchange.
Ministry staff relocated to TCD building - helping create cuts on office space spending.
Taxi drivers are working with the ministry instead of 'beating up the minister'. He says that will continue as long as he doesn't call three magic letters (GPS in case you were wondering).
New bus schedule will lead to the hire of new bus drivers but will save $500,000, says Mr Lister.
Less flights from JetBlue in New York and WestJetin Canada in this summer's schedule but Mr Lister says he will do his best to ensure that ultimately Bermuda gets more flights not less.
Record 380,000 people expected to arrive on Cruise Ships this year. Improved relationship with taxi drivers will help.
No new ferry despite mechanical problems last year, but Mr Lister confident the ferries will do their job.



1.15pm: Attorney General and Minister of Justice Michael Scott. $57m budget for ministry.
Focus on rehabilitation 
Department of Corrections must look at better prevention of drugs coming into Westgate. Restructuring of programmes for rehabilitation of offenders — collaboration with National Drug Control.
Funding for psychologists who will evaluate delivery of programmes in prison.
Entrepreneurial programmes increased for prisoners to give them options when they are released.
Reduced budget for legal aid to be combined with reforms to ensure it can carry out its role fairly.
FUnding allocated to reduce backlog of family matters in Magistrates Court.
Witness Care Unit will get funding to provide improved care for witnesses.
Commencement of Witness Protection Programme to aid war on gang and gun crime.




1.10pm:  Patrice Minors confirms $7.9m cut in tourism  spending. Tourism won't seek a new ad firm to replace Globalhue - goiing direct to Media Buyers themselves.
Music Festival will be ditched — $500,000 to be spent on a variety of smaller events, some involving local performers.
Support for Bermuda Alliance for Tourism and Hospitality Institute - recognizes importance of getting young people involved in tourism and hospitality trades.
Launch of hotel entertainment programme, involving local entertainers.


1.05pm: National Security Minister David Burch says prudence is necessary but successes in restoring safety will not be sacrificed.
Police will continue to provide targeted enforcement that has yielded good results in last year - will require management of service to ensure officers don't get burnt out.
BHC goes from strength to strength.
Harbour View Village will open at Southside on March 5.
New Department of Border Control will combine immigration and customs to strengthen security at borders.
"We will meet the challenges of these times with creative sound management."


1pm: Reshaping the economy to create jobs and remove barriers for jobseekers. Bermuda Small Business Development Corporation will launch new EEZ offices in east and west of the island. She says despite reduction in grant the Small Business Development Corporation will continue to provide support. One-stop career centre held and jobseekers website - like monster.com - will be developed. 100 College students to get summer work opportunities during their break. Post Office must come to terms with reduction in mail volume and revenues - reinvent itself, adding new features like secure email and new US shipping address system for overseas shoppers.


12.55pm: Dame Jennifer Smith confirms the education budget is now $128m - a $15m cut. Restructuring of the department — re-examining programmes for effectiveness.
Expenditure in all areas - everything frmo consultants to office supplies — has to be approved by the Permanent Secretary.
Expansion of Adopt a School programme will continue. 
"We will continue to examine every policy and programme to ensure it is inline and relevant to our mandate".


12.50: Works Minister Derrick Burgess is at the mic now. He's outlining a scheme to reduce garbage collection (every five days rather than every four) to save money.
Roads won't be repaired unless absolutely necessary until summer, diverting st aff to other roles and saving money.
Says he hopes to see some work on 9Beaches and Morgans Point this year.



12.40:  Paula Cox is speaking at the post budget press conference. It sounds like she is repeating this morning's speech - almost word for word. We'll continue to filter in facts from the budget book with news from the press conference.

12.30: Our business editor Don Burgess is sifting through the small print of the Budget to find out where the cuts are coming.

The Ministry of Education gets a cut of $15m — from $143m t0 $128m.
Police, who had been told to expect a $16m cut, have escaped with a $7.5m cut — still a substantial loss to their budget but not to the extent they were initially told to expect — at least not this year. Their budget goes from $65.7m to $58.2m. The amount available to help the needy through Financial Assistance  has been cut by $1.2m from $28.6m to $27.4m.
The Tourism  budget has been cut by $7.9million - from $38.1m to $30.2.

For MPs will be required to have a 90 per cent attendance rate, according to the budget book.




11.30am: There's a bit of a lull in proceedings now before the press conference begins at 12.30pm. We've posted a summary of the main points from this morning's speech, linked at the foot of this page. We

11.10am: Ok, that's it. The budget speech was short on specifics, and more will come later from the Ministers and when we get the book of revenue and expenditure estimates.
To summarize what we know so far: $150m in cuts delivered through $90m cuts from the annual expenditure (current account) and $60m from capital projects: No Government job cuts but empty positions will not be filled, Unions credited for compromising on hours, pay, overtimes etc... payroll tax will be reduced (back to 14 per cent) as part of a series of tax breaks to help businesses stimulate jobs. No real detail on where the cuts are coming although overtime cuts for Government staff was highlighted as one cost-cutting initiative.
The Budget is framed as part of a long-term financial plan to reduce Government spending and increase revenue through job creation. 


11.03am: The Premier closes with this to rapturous applause: "We must prepare for the future and we must put the people, policies and programmes in place today that will ensure economic stability and growth to Bermuda tomorrow."

11.01am: Budget will discourage marginilisation of young people and help create jobs.
Details will be revealed by ministers but she says it will include: focus on education, payroll tax honeymoon, increased competitiveness through more 'red carpet and less red tape".
Recession has highlighted the urgency of charting a new path. Government will create favourable environment for investment, social and economic policies will remain focus to provide assistance for those in need and encourage investment."


11am: "Conditions in Bermuda will pose a challenge over the next year - we are all in this together - Government cannot and will not achieve what it needs to without the help of the public."
Time to forge new deal connecting public, private and philantrophic entities.
"Government can step out of the way and prevent duplication of services that can be better delivered by the private sector."
New partnership necessary with corporate sector, she says — an allusion, perhaps. to privatization of some Government services.


11am: $900m in spending over the next 12 months to education, health, youth and families, fighting crime, infrastructure and development, preserving public sector jobs and a couple of other areas I didn't catch.
She says budget includes reprioritization of programmes to see which work and which don't.



10.55am: Premier promises 'open budget structure' for the next three years with more public involvement in spending decisions. Blogs and other websites will encourage greater public involvement in budget and policy formulation.
Pilot will start in three ministries.


10.51am: She says budget is not a one-year thing but part of a multi-year approach.
The budget should provide Bermuda with the foundation for a three-year revolving framework — long term structural reforms that will allow a 'multi-year' approach to financial planning.
Rebuilding revenue base part of the plan - better budget preparation, better budget execution and systematic budget monitoring. Essentially - make a good plan, monitor it and stick to it.

10.50am: Premier is giving examples of real struggles — 'Steven' a mechanic who walked to work from Crawl to Hamilton during the bus strike for fear of losing his job. She also pays tribute to the owners of True Reflections — a Hamilton store which she says is sadly closing.
She says those are just two examples of people suffering. 

10.47am: Government allocated $304m in funding to social, educational, medical and environmental programmes last year - more than three times that of the UBP.
Government has spent large amounts on social programmes compared to the previous Government - hundreds of Bermudians have been helped, says the Premier.


10.45am: 
$3m earmarked for new x-ray scanner at the docks. 
Enhancements to tendering and project management will restore confidence and save money.
Anticipate revenue of $940m for the next financial year.
Total expenditure including debt servicing and capital expenditure estimated $1.08billion - $136.5m of borrowing, $25.7m in sinking fund contributions - Bermuda on track to reduce debt.



10.40am:  Budget will deliver $90m in cuts on expenditure and $60m cut in capital spending - delivering promised $150 in cuts.
There will be $900m spent on current account.
"Unless a defensible case can be made to the contrary, vacant positions in Government will remain unfilled."
Overtime will be trimmed from $18m to $11m. 
Allocating $12m to small projects such as roadside work, maintenance etc to stimulate small business.
$27m earmarked for Tynes Bay.

10.38 am: Pilot programme will enable businesses in debt to Government on payroll tax will have the chance to pay back their debts through 'services in kind'.
Payroll tax breaks will return 50m in spending power to taxpayers: "The hope is jobs will be retained and more jobs will be created."
"The overriding consideration is businesses and workers need assistance now to help them through the final stages of the recession"

10.35am: Payroll tax increase will go. Ms Cox says it was necessary last year but was never meant to be permanent and will be rolled back to 14 per cent — an adjustment of two per cent.
Relief from payroll tax for hotel sector will be extended to March 31, 2012. Extension of duty relief for business refurbishing their premises.

10.30am:  "Public spending cuts are clearly needed," says the Premier. But she says the strategic aim of the budget is to help the economy 'prepare to exhale' and get to the next level in anticipation of recovery in the reinsurance sector.


10.30am: "Government must deliver value for money in the face of heavier demands on resources" — do more with less, essentially.
There's more to managing the country than shaving 15 per cent form spending programmes, says Ms Cox.



10.27am:  Hotels, restaurants need to absorb more labour, says Ms Cox.
"Effor ts are under way to recruit Bermudians into the hospitality industry."
Government is working closely with Park Hyatt and Morgan's Point developers to help ensure Bermudians get jobs.
"We believe in work fair, rather than welfare," says Ms Cox. People who receive benefits should do everything within reason to find work or prepare for work in the future.
Government will do everything it can to help people find work — including retraining.


10.25am: No job losses in public sectors, says Ms cox: "The number of established Government jobs we are planning to shed is zero."
Credits the Unions for recognizing the need for hiring, pay and overtime restraint.

10.22am: Upsurge in US economy will benefit Bermuda by next year, says Ms Cox.
She is now recapping Bermuda's credit reports — saying the island still has good ratings and is considered a good risk for lenders.


10.15am: Premier says world recession is 'out of our control' but we are 'in control' of how we respond. Bermuda will not settle for the role of victim.
"We can and will lead Bermuda out of the grip of these current difficulties.
"We can't understate the severe impact of a recession whose depth and complexity is of such unprecedented proportions it has confounded economists all over the world."
Effects in Bermdua: Employments has risen to five per cent. Policy adjustments required to improve job growth.
"Increasing employment is the only sustainable solution to reducing poverty and inequality.
"Today's programme demonstrates fiscal restraint and encourages job production."

10.13am: The Premier opens with a quote from US president Barack Obaama's State of the Union: We can not win the future with the Government of the past”.

She says she is not happy to see her forecast last year of a slow recovery proved correct and comments that in economic terms ‘Bermuda is not another world’ and is caught in world events.

She is now giving an overview of the world situation — protest, strikes and austerity budgets across Europe.

10.10am: Speaker Stanley Lowe goes through the formalities and apologies — MPs Ashfield deVent and Alex Scott are not in attendance.

10.05am: They are opening the session, as normal, with morning prayers and the Premier's statement is imminient.

9.50am: The general consensus is that this is one of the most important budgets in recent history. The Premier has the tricky task of scaling back spending at the same time as stimulating the economy. She has to do something to help boos business and create jobs, but she also has to take steps to rein in spending.

9.43am:  The Premier just arrived at the House of Assembly grounds wheeling a small suit case, presumably containing the budget, and pursued by a pack of photographers and four or five staff members. The rest of the MPs are filtering in — Shadow Finance Minister Bob Richards just arrived, also.


9.40am: Plenty of predictions about what the Premier will do today. Large scale cost-cutting is expected. Ms Cox herself said she would aim to make $150million in cuts when she took over as leader at the end of last year. Will she meet that target? We'll find out in a few minutes.

9.35am: Speaking to the Bermuda Sun yesterday the Premier spelled out the importance of today's budget. She said she had been prepared to make 'difficult decisions' at a time of 'unprecedented challenges'.
She also made it clear that this was a Paula Cox budget. There was no talk of cogs in wheels, she said this budget is all about leadership, tough decisions and accountability for those choices.
9.30am: The Premier is expected to arrive at the House of Assembly any moment now for the traditional 'briefcase' shot.
She will begin her budget speech to the House at around 10am and the budget book - containing the breakdown of Government's expenditure for the coming year — will be  available shortly after. We'll post it online as soon as we have it.[[In-content Ad]]

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