Vexed Bermoothes

Bermuda’s central Government is unlikely to make public the $800,000 report behind the unpopular municipalities law because, in my opinion, rather than discussing reform, it is all about the tactics of taking over Bermuda’s local governments.

You see, it would be difficult for Government simply take them over, both from a public opinion perspective and a practical perspective.  So, here’s how I see it unfolding:

1. If passed the law will cripple the Corporation of Hamilton by gutting its revenues (by removing tax base and increasing the taxes they must pay) and ability to develop its way out of the shortfall.  Currently the Corporation may define its own City limits.  Under the proposed act, that power becomes Government’s.
2. The PLP may be able to wiggle this through the House, but are less certain to get it through the more balanced Senate.  So, they have called this a “money bill” which only needs approval from the House.
3. The Corporation of Hamilton will have only two choices in its predicament:  to raise taxes or to cut services.  Either would eventually undermine its popularity.
4. The Corporation is already audited for its own purposes.  However the new Government stipulated audit will give them much information they need about the city – and will highlight the growing gap in revenues and expenditures.
5. Today the Corporation is independent.  If the proposed law is passed, it clearly makes the Corporation subordinate to a Cabinet minister who has the ability, under Section 12, to amend the Act or repeal other laws (subject to affirmative resolution).  The Minister can then use the deteriorating financial situation as cause to complete the full take over of the city.

This takeover is being couched in the usual “us vs them” rhetoric that dooms most decision making in Bermuda.  This is wrong.  Each time we allow it to happen it lets Government off the hook from acting with responsibility and accountability.  And each time, we go deeper into clutches of the Forty Thieves’ cave.

Remember the fact:  the Corporation of Hamilton proposed a broad set of reforms to Government back in 2008.  The PLP have ignored them.

Reform in Bermuda’s municipal corporations is possible without a takeover.  It is possible without the financial disruption and deepening distrust that this act will cause.  This act is, in fact, anti reform.

Bermuda today is a very divided place.

On a side note:  the international sector this week is aghast at the machinations surrounding the City as well as the intimidating emails to employers of citizens who support the City.  Another chip in the wall.