January 30, 2013 at 5:54 p.m.
Budget shows Gov't is not careful with public's cash
Finance Minister Paula Cox disagreed, saying a government's budget is different. Is it really?
If Government had lived within its means, it would not be hitting the community with more than $100 million in new taxes.
If it had been judicious in its use of debt, it would not be foisting nearly $1 billion of debt onto the shoulders of future generations.
Deficits
If it had used sound judgment, it would not have continued spending in the face of recession and run, for the first time ever, $95 million in current account deficits over the past two years.
Our main concern with the Budget is that Government does not understand how to be careful with the public's money.
If it did, we might not have to hear about construction projects overshooting their budgets by tens of millions of dollars.
We might not have to hear the Auditor General say there is a "pervasive lack of accountability" in the halls of Government "creating an environment conducive to error, misappropriation and fraud". We might not have to hear about a million dollar contract with a U.S. consultant that contains "no specific deliverables".
We are also deeply concerned that Government does not recognise the need to set the right example for the country.
Hypocrisy runs through the marrow of the Budget.
So while the Finance Minister orders people to pay more in taxes, she continues increasing Government spending.
While Government encourages hotel workers to accept a wage freeze, it tables amending legislation to increase the Finance Minister's salary by more than 40 per cent.
Unsustainable
The unwillingness of Government to change its spending habits and its lax management of the public purse has put Bermuda on an unsustainable path.
In the six years since the finance minister came into the job, Government's gross debt has gone from $175 million to $830 million - an increase of more than 400 per cent. Consider too that the Finance Minister is increasing the debt again - to an estimated $973 million this year.
This means Bermudians under the age of 35 - those who will have to pay it off - will inherit a debt of $36,000 per person.
In 1998, that debt was $5,602 per person.
The fact Government did not put forward a plan to reduce its debt says it is either incapable of disciplining itself or it does not want to discipline itself. Whatever the case, without a change in the mindset of Government, Bermuda will continue losing strength. We must have change.
Damage
The Bermuda economy needs careful stewardship.
We are not big enough and we lack the economic diversification to absorb bad public management for too long without risking mortal damage to our reputation, our governance and the overall health of the economy. But bad public management is what we have had for too long.
The Budget is simply a milestone on a path we cannot continue down - a path on which we squandered money, spent more than we earned and mismanaged tourism to the point of collapse.
What is most galling is Government's failure to adjust - to recognise it is out of sync with the concerns of everyday people.
So we see no change in their travel habits, we see ministers disregarding cost-cutting measures ordered by the Finance Minister and, worst of all, no real compulsion to solve any of the problems that have plagued Bermuda for too long.
Prudent
We elect a government to solve problems, strengthen the island, maintain public safety and foster conditions to ensure people have jobs.
It takes real leadership to achieve these things - leadership that has the strength to stand on principle and put country before colleagues.
Bermuda does not have to accept the way things are.
There is a better way to manage the public purse - a pragmatic, prudent way.
Our approach is like the head of a family. We would make sure our children are educated and protected, provide for their futures, live within our means and use sound judgment. We would do better.
E.T. 'BOB' RICHARDS is the shadow minister of finance. To read the UBP approach to managing public finance, visit www.ubp.bm.
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