Premier says it’s “nonsense” to suggest PLP Government shouldn’t take credit for International Business growth
Premier David Burt asserts that the success of the International Business sector can legitimately be associated with the work of the PLP government.
He also cites the PLP’s payroll tax amendments as a driving force of their budgetary success.
At today’s Chamber of Commerce Budget Breakfast, the Premier and Finance Minister presented the highlights of the new budget to Chamber members, saying “we have four years of strong GDP growth. This GDP growth has exceed the expectations on every given year.”
“International business remains our economic engine, supported over 5000 jobs, and delivered $2.9 billion in foreign currency receipts.”
As the Premier opened for questions, Arthur Wightman, Teritory Leader for Event sponsor PwC, welcomed the budget surplus – a revised estimate of 19.7 million for last year, and a projected 43.3 million this year.
He asked what the Premier would summarize as the most critical decision that led to reaching a surplus, to which Premier Burt responded, “the very controversial changes to the payroll tax, which was the subject of controversy when I was here two years ago. But, that was it.”
“We increased the rates of payroll tax for high earners, while reducing payroll tax for 86% of workers inside the economy.”
Indeed, payroll tax, the single largest contributor to Government revenues for 25 years, spiked even more between 2021 and 2024.
Furthermore, International business – already a sector with comparatively high wages – has seen total annual employment income increase by $453 million dollars in the same period.
Now representing more than 40% of total employment income in Bermuda, International Business is a massive contributor of payroll tax.
Elsewhere in his comments, the Premier rejected any attempt to not correlate I.B.’s success with his Government’s policies.
“There’s another argument, he said, “…the government shouldn’t take credit for what international businesses are doing. It’s a nonsense.”
“It’s an absolute nonsense because I can promise you, if international business was not growing, it would be people shouting from the rooftops – it’s David Burt and the PLP’s fault. So you can’t have your cake and eat it too. It’s either one or the other. And it comes from sound policymaking.”
Answering questions from Gary Foster Skelton, the Premier subsequently said the PLP has created a more stable business environment than the OBA.
GFS: “What’s the nuance here of what government can claim and can’t? Do you manage the house, make it attractive and people want to do the business here… but then it’s up to them to do the business and make the money?”
Premier Burt: “I don’t think there’s any nuance. This is total economic management from the local economy to the international economy. And we do not have growth in international business unless people have confidence in the government to make those long term investments inside of a jurisdiction… And we saw a different sense when there was a lack of confidence and falling numbers of jobs in international business under the former government, because of haphazard policymaking, because of conflicts in the public… there were people marching in the streets… People want to be in a space where they can operate stably. If you have a space where there is massive social disruption, where you are voiding contracts in Parliament – private contracts that are established… Those are not the things which set confidence for business growth.”
