Bermuda Post

Friday, Mar 29, 2024

Minister Dickinson: "our objective is to retain jobs, strengthen our economy"

Minister Dickinson: "our objective is to retain jobs, strengthen our economy"

The Minister of Finance the Hon. Curtis Dickinson, MP, JP, issued an open letter to all public officers regarding the island's economic situation.
Our success with managing the COVID-19 crisis over the past several months lies mostly in the hands of earnest and hardworking public officers. Your professionalism, mature and thoughtful decisions, operational efficiency, daily grind, and your steadfast efforts have been invaluable. While some public officers were directly engaged in pandemic affairs, others were focused on keeping all areas of the Government operational and providing for the people of Bermuda.

Many of the unsung heroes worked from home, or simply stayed at home as directed, some willing but unable to assist because of circumstances beyond their control. Your dedication and love for your country have amazed me. Your hard work has brought us to this point. Thank you for giving your best to Bermuda during the past few months. I’m not alone in my recognition, the Government received hundreds of emails, letters, and social media posts from grateful residents extending their thanks as well.

This crisis however has bought with it a new level of economic hardship for Bermuda and its people.

Based on submissions by Ministries and Ministry of Finance projections, unbudgeted COVID-19 expenditures for this fiscal year are estimated to be in the range of $80-$90 million. These funds have been expended on things like the Unemployment Benefit Programme; COVID-19 testing; personal protective gear, supplies and equipment; homeless shelters; quarantine facilities; and more.

Further, all public officers continued to receive full salary during the shelter-in-place phase despite the loss of tax revenue, and in some cases, our inability to provide full service levels.

We are still progressing through the phased re-opening of Bermuda and economic activity is just beginning. COVID-19 will cause a major decline in Government revenues. This is caused both directly by the economic slowdown and indirectly by necessary tax policy and administrative measures taken in response. The Ministry of Finance estimates that revenue yields for 2020/21 could be reduced by an estimated $200-225 million. After factoring in the impact of COVID-19, the revised deficit for 2020/21 is estimated to be in the range of $275-$315 million.

This level of deficit is not only unsustainable but economically and fiscally imprudent. When considering the current high level of our public debt, the Ministry of Finance regards this level of deficit as a serious challenge. The Government’s target is to keep the deficit for 2020/21 below $175 million.

The Government now needs to raise $700 million to finance the 2020/2021 deficit, refinance short-term credit facilities and other current government bonds with relatively high interest rates and also fund possible deficits over the next two years. If government does not convince foreign creditors and rating agencies of our absolute commitment to manage this crisis and control our deficits, credit rating downgrades will come.

Continuing declines in our ratings will not only lead to higher interest rates, but threatens the job security of public servants, it threatens the job security of those people employed in International Business and the job security of all those companies and individuals employed in providing services to International Business. This will result in the loss of more Bermudian jobs. We cannot allow this to happen.

Our objective is to retain jobs, strengthen our economy, and get Bermudians in all sectors back to work. That’s why we’ve been working hard with our Union partners on a package of savings to avoid layoffs and balance the budget.

The savings package is perhaps tougher than the Unions had envisaged however, I am satisfied that this is the best deal we can achieve; one which saves jobs, creates room for us to continue delivering much needed services to our people and positions us to lead Bermuda’s recovery.

The Unions have now taken the necessary steps to arrange a series of membership meetings. Your support is vitally important to our country’s success.

Thanks again for your continued excellence in public service.
Newsletter

Related Articles

Bermuda Post
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
'I just lost it' Lowe’s worker fired after 13 years of employment for confronting thieves trying to steal $2K of merchandise
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
×