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

I hear about 'change' but see very little


By Larry Burchall- | Comments: 0 | Leave a comment

The Pope has given Papal consent for condoms; a Greek sculptor is making a Statue of Dame Lois which seems to be destined for display in the ‘new Court building’; Dame Jennifer is back as Education Minister; and there was a double shooting last week with two men getting hit.

Government spokespeople say that school results show that the public school graduation rate is 99 per cent, but at the same time only 70 per cent of students are proficient at maths; the Collector of Customs avers that 236 persons applied for entry level Customs jobs in Customs, but only 12 people passed the written tests and only eight of those 12 got through the drugs screening; and the Commissioner of Prisons says that prisoners are lacking love.

The Irish Government has to borrow billions of euros, and a thoroughly pissed-off population of Irish people seem about ready to vent their feelings on their own Irish Government.

Twenty-four days from now that “jolly old fellow” will come sleighing through Bermuda. He’ll dispense his largesse, and then fly on to deal with the rest of that lot who inhabit this planet — along with us lot.

With the furore and smoke and mirrors of the end of October past us, with the first 33 days of a new Premier behind us, what — exactly — do I see? And hear?

No solutions

I hear a softer voice, but no better solutions. I hear many more ‘announcements’, but I sense no changes. I see that the civil service’s topmost echelon of civil servants have played musical chairs — among each other — which has left a key chair — that of Financial Secretary — filled by a temporary post-holder.

I see that the MV Bermudian – the boat that broke loose and ran aground during Hurricane Igor —  has finally been hauled out the water and that some repair work is underway. But I hear nothing about an inquiry into why the boat ran aground in the first place, and resulted in huge amounts in first recovery costs and now in repair costs.

In short, I see and hear some change and I see and hear no change. But I was pleasantly surprised, however, to hear that the Minister for Finance is promising to reduce spending — next year — by about $150,000,000.  That was good news because it means that, at last, the minister is beginning to face financial reality.

In this year’s Budget, as reflected in the Appropriation Act 2010, the Minister fixed spending at $1,202,265,114 which works out to about $100 million a month. In the same Budget, and again as reflected in the Appropriations Act 2010, income was projected to be $1,058,317,172 which works out to be about $89 million a month.

So the minister is still planning to spend $11 million  a month more than is coming in. So the promise to cut $150 million from next year’s spending means that next year, with revenue about the same as this year, the minister expects to bring spending much closer to revenue — but not until 2011.

That leaves a vexing and unanswered question. What is happening in Government in this year? With all the whispers about downsizing and unemployment, IB shrinkage, retail and hospitality in trouble, and clear evidence that shops and operations are actually shutting down; will Government revenue meet that $89 million a month that the minister was counting on? Will it?

If the Government is not getting revenue at the rate of $89 million a month, but is getting something significantly less, then this year’s spending will have to be cut — and cut now. If, for instance, Government is only collecting at the rate of about $83 million a month, that is $6 million a month less, each month, every month, that will not arrive in Government coffers. Over 12 months that is a $72 million one year undershoot.

On the other hand, Govern­ment could be raking in an EXTRA $6 million a month — each month, every month. Government coffers could even be overflowing. In which case, the Minister will be ‘rolling in dough’.

In a changed world where the Pope now blesses condoms and ex-President Dubya Bush reckons that water-boarding is an acceptable form of interrogation, anything can happen.

So, are the dollars and euros piling in so fast that Bermuda is ‘rolling in dough’? Or, has there been a distinct downturn in overall Government revenue? Which is it? 

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