We need long lasting solutions, not quick fixes

FRIDAY, DEC. 2: The Regeneration of Bermuda’s Economy project is to provide suggestions from all sectors of the community that will benefit Bermuda on a long term basis, can be implemented quickly and are of no cost to Government.

Over the past couple of weeks there has been talk of implementing some ideas that certainly have merit, but what we see getting traction are ideas that will do very little in the way of stimulating the economy and are not clear and  defined.

One such idea is Arrivals Duty Free shopping at the airport. It is not customary to have duty free shopping in the arrivals terminals in airports. The duty free shops are usually located in the departure area in an effort to capture that last spending dollar.

This Act is most definitely going to affect many local merchants who are struggling to keep their doors open.

Why should someone who arrives in Bermuda, local or tourist, spend their money at the airport when there are many other outlets on the island that they can patronize? These other outlets pay payroll tax to Government and employ Bermudians at a time where unemployment is increasing.

This will only exacerbate the situation. These types of implementations do nothing to stimulate the economy in any substantial way. 

Suggestion

Many suggestions that were put forth in our initial article can be implemented quickly by way of a simple policy change. These suggestions are:

• Provide permanent residency and/or domicile status to high net worth individuals;

• Remove the 60/40 rule;

• Relax ownership restrictions on married couples where only one is the Bermudian. Purchase of the 1st property would not require government approval;

• Lift ownership restrictions on PRC holders to allow for the purchase of one property;

• Liberalise immigration policy to allow for Bermudians to sell to non-Bermudians where property is above a set ARV;

• End senior benefits such as free land tax above a set ARV;

• End senior benefits of free car registration above a set vehicle class;

• Remove term limits on work permits.

Government would not incur any cost in implementing these suggestions and they would be a means of jump starting the economy and see revenue flow back into the Government as well as the public’s pocket.

There needs to be clear, concrete decisions made by our policymakers to ensure that the benefits that will accrue will be long lasting and not just a quick band aid fix that will lead to instant gratification and very little else.