Shadow Minister also question why Gov’t left them out of stakeholder discussions
Photos: US President Donald Trump (CBS); MV Oleander lauched in China in 2018 (supplied); Bottom-left: Shadow Finance Minister Dr Douglas De Couto; Top-right: Shadow Home Affairs Minister Michael Fahy.
- UPDATED with Michael Fahy interview – scroll to bottom…
In the face of a potential swell in shipping costs, we should set up a fund to soften the impact of such increases.
So says the One Bermuda Alliance, who have proposed a Supply Chain Contingency Fund to subsidise shipping companies, support the development of alternative supply routes, and offset higher prices on essential goods.
Shadow Home Affairs Minister Michael Fahy says, “we recognise that importers and shipping companies are working diligently to find alternative vessels, explore new trade routes, and identify different sources for Bermuda’s essential goods.”
“However, these solutions will take time to implement and will inevitably increase costs in the short term.”
US trade policies under President Trump could potentially increase US port fees for Chinese-built ships like Bermuda’s MV Oleander, and increase costs in the overall supply chain as a minimum 10% tariff is added to all goods imported into the US.
Premier David Burt and National Security Minister Michael Weeks met with local shippers and importers on Monday.
Speaking to Bermuda Broadcasting afterwards, the Premier said that nothing is off the table in securing Bermuda’s shipping lifeline – including looking at ports outside of the US.
Shadow Home Affairs Minister Michael Fahy, however, questions why the OBA was not part of these discussions.
He said, “this is not a partisan issue… It requires the collaboration of all stakeholders — government, opposition, and the private sector — to develop effective solutions.”
“We were disappointed to learn that the Government recently held a stakeholder meeting at Cabinet Office without extending an invitation to the Official Opposition, despite the Premier’s stated desire for collaboration rather than criticism.”
The proposed Supply Chain Contingency Fund would be financed through a combination of the projected budget surplus and revenue from the new Corporate Income Tax, an OBA statement reads.
Shadow Finance Minister, Dr. Douglas De Couto, says the OBA’s proposal “aligns with our core principle of fiscal responsibility for social fairness”.
“While we continue to advocate for responsible allocation of Corporate Income Tax revenue toward national priorities like debt reduction and infrastructure, this emerging crisis certainly qualifies as an urgent national priority.”
UPDATE: Reports today indicate the Trump Administration may soften proposed US port fees, and a plan to increase tariffs on imports into the US has been partially paused. Shadow Home Affairs Minister Michael Fahy doesn’t think it’s premature to make plans such as a Contingency Fund…
Michael Fahy also suggests that it would have been better if the OBA had been included in the stakeholder discussions earlier this week…
