The international sector accounts for approximately 70% of Bermuda’s GDP. Yet the Bermuda Government has pursued a term limit policy that on paper creates a high turnover in expatriate workers. The associated uncertainty for both local and international employers is detrimental to our economy. It costs money and burns substantial goodwill. Government has not been [...]
Entries from February 12th, 2010
Crash Landing
February 11th, 2010 · Comments Off · Tourism
Air arrivals to Bermuda in 2009 were roughly 236,000 (down 11% from the year before). They are down from around 400,000 in 1998. 2009 average hotel occupancy slumped to 51% despite the long list of guest properties that have disappeared since 1998. October was the best performing month of the year with 22,000 arrivals, a [...]
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Love Fest
February 10th, 2010 · 1 Comment · Tourism
The Premier’s annual celebrity-stalking Love Festival is this week. Like many people, I believe this event does not represent value for money for the ailing tourism sector. In my opinion, it seems more like a personal boondoggle than a business promotion. Press releases like this seem to reaffirm that opinion. Chattanooga Chef to Cook For [...]
Tags:Boondoggle
Fun with Numbers
February 9th, 2010 · Comments Off · Economy
Last week Government announced that the unemployment rate was 4.5% or around 1,700 people. I think this is optimistic for two reasons: The survey was conducted nine months prior. Old data. The economy has eroded a lot since then. As a reader points out, the survey appears to have included expats who represent about 29% [...]
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Follywood
February 8th, 2010 · 1 Comment · Bermuda Politics, Economy
My Premier went to India and all I got was … What a joke. It’s funny how the press release in Bermuda says that the Premier has struck a deal for Bermudians to get reduced tuition at the Mumbai film school … but the film school’s release says the Bermuda Government has agreed to sponsor [...]
Tags:Spin Doctor
Follow Through
February 5th, 2010 · Comments Off · Economy
Government today announced that, as of May 2009 (nine months ago), unemployment was running at 4.5%. Funny they should mention that. The Auditor General’s report this week reminded us that back in 2002 Finance Minister Eugene Cox proposed setting up an Unemployment Insurance Fund for Bermudians, and enabling legislation was passed to the Public Treasury [...]
Tags:Unemployment
Essential Problem
February 4th, 2010 · 1 Comment · Economy
Bermuda has racked up $679,000,000 of public debt in just a few years. Now, FinMin Paula Cox says we need to borrow more. Here’s the essential problem: The Bermuda Government can’t properly account for the way it overspent its past budgets (which themselves have doubled in size). And they want to borrow more … without [...]
Tags:Budget
Pliable
February 3rd, 2010 · Comments Off · Economy
The Minister of Finance published a controversial opinion last week that she should not be held accountable for the Bermuda Government runaway expenditure, deficits, and debt. She implies that she does not have the support of Cabinet to enforce financial discipline and hides behind “collective responsibility”. She said: I can indicate support or objection. However [...]
Tags:Budget
Accumulated Deficit
February 2nd, 2010 · Comments Off · Bermuda Politics
Bermudians are looking for reasons why the Bermuda Government is so horny to perform its hostile takeover of Bermuda’s municipal corporations. Well here’s a candidate. The Auditor General’s scary graph shows the rapid growth in Bermuda’s Accumulated Deficit over the past 6 years. “The Accumulated Deficit represents the difference between the Consolidated Fund’s total liabilities [...]
Qualified Auditor Opinion (now with scary graphs!)
February 2nd, 2010 · 1 Comment · Bermuda Politics, Economy
Auditor General Heather Jacobs Matthews today released the Bermuda Government’s 2008/09 Consolidated Fund financial statements and her report on them. It includes the stench of damnation of a Qualified Audit Opinion. Not pretty. Gee, it seems that Larry Dennis may have been correct in his past criticisms. Imagine that. “The trend speaks to financial challenges [...]
Tags:Audit