Mr Speaker, I rise today to present to this Honourable House the Government’s position on the remuneration of Members & Officers of the Legislature. This is a matter that requires careful consideration, balancing fairness with fiscal responsibility, while ensuring that those who serve the people of Bermuda are compensated appropriately for the responsibilities they shoulder.

Mr Speaker, honourable members will recall that in November, the Ministers and Members of the Legislature Salaries Review Board Final Report (August 2024) was tabled in this Honourable House. The Board comprised of representatives appointed following consultations with the President of the Senate, the Speaker of the House, and the Leader of the Opposition. The members of the Board were: the Honourable Maxwell Burgess (Chair); Ed Ball Jr., JP; Donnie Francis; Steven Holdipp; Carl Neblett; NH Cole Simons JP; Jocene Wade, JP.

The Ministers and Members Of The Legislature (Salaries And Pensions) Act 1975 requires that this Board be convened every two years to review and report its recommendations to this Honourable House. Once appointed, the Ministers and Members of the Legislature Salaries Review Board operate autonomously and reach their conclusions without any direction from the government.

Mr Speaker, in my public statements after the report's publication, I expressed concerns about some aspects of the Board’s report. One concern I raised was that the recommended increases disproportionately favoured the Premier and the Speaker of the House. As I did in November, I wish to make it clear that I do not support an outsized increase in the Premier’s salary, and any adjustment should be applied fairly and consistently across the board to all officers and Members.

Mr Speaker, there has been no salary adjustment for Members of the Legislature in over 15 years. Additionally, Ministers' salaries were reduced by 10% in 2013, and those reductions have remained in place.

Over this period, the demands and complexities of public service have increased significantly. Officers of the Legislature now operate in an era of heightened public scrutiny, faster decision-making cycles, and increased responsibilities in a rapidly evolving governance landscape.

Mr Speaker, the scope of work required to manage critical national issues, engage with the public, and navigate modern governance challenges has grown substantially. The proposed adjustments recognise these realities and ensure that remuneration fairly reflects the workload and expectations placed on those who serve as officers of the Legislature.

Mr Speaker, reasonable increases to compensation also serve as an incentive to encourage those in the community who may be interested in serving as a member of this Honourable House. By ensuring that remuneration reflects the responsibilities of the role, these adjustments improve the attractiveness of public service, helping to mitigate the challenge of motivating residents to step forward and contribute to our country's governance.

Mr Speaker, Cabinet has reviewed the recommendations of the Board and approved a final set of recommendations for adjustments to salaries for members and officers of the legislature. The resolution that will be tabled in this Honourable House later today aligns with our principle of fairness while ensuring that these adjustments are balanced.

Mr Speaker, The Government has accepted the Board’s recommendations for base salary increases for Members of the House of Assembly and Senators. The Committee recommended an additional $7,000 increase for Members of the House in addition to awarding a cost of living increase of 18.8%. This additional increase was not initially supported by myself, however, in the interest of respecting the bi-partisan consensus following the report’s discussion in the Standing Orders Committee of the previous legislature, the Government has accepted this recommendation.

The Government has also accepted the Committee’s recommendation for a substantial increase for the Speaker of the House, recognising the role’s importance to the operations and function of the House of Assembly as the bedrock of the island’s democracy. The bipartisan Standing Orders Committee also supported this adjustment.

Mr Speaker, as mentioned earlier in my statement, the remuneration for officers of the Legislature has not been adjusted since 2009. Consistent with the recommendation of the Standing Orders Committee, cost of living adjustments have been applied to all officers. The formula used to arrive at these adjustments was the approved increases for public officer salaries for 2022 (2.25%), 2023 (2.25%) and 2024 (4.8%) equalling 9.6%.

It should be noted that the Government did not take into account increases awarded to public officers in 2009, 2010, 2011, 2017 & 2018. The adjustment in remuneration for officers of the Legislature will be increased by 9.6% from 2009 levels, which amounts to less than half of the 21.1% that has been awarded to public officers over the same period, equating to 0.64% per year. The Government felt this was reasonable considering the base rate adjustments recommended by the Board and accepted by the Government.

This 9.6% increase for officers will apply to the: President of the Senate, Vice President of the Senate, Deputy Speaker, Premier, Deputy Premier, Attorney General, Ministers, Junior Ministers, Opposition Leader, Junior Ministers & Opposition Whip.
Mr Speaker, the government has made additional adjustments to two other officers of the Legislature, the Minister of Finance and the Government Whip.

The Minister of Finance has an important constitutional role in our island. Given the complexities of that role, it was felt that remuneration for that position should be increased. The resolution increases the remuneration for the Minister of Finance by $10,923 more than the 9.6% increase from the 2009 remuneration applied to other officers of the Legislature.

Schedule 2 of the Ministers & Members of the Legislature Salaries & Pensions Act allows for different rates to be paid to the Government Whip and the Opposition Whip. The resolution sets the remuneration for the Government Whip equivalent to that of a Junior Minister, which is $4,177 more than the 9.6% increase from the 2009 remuneration applied to other officers of the Legislature.

Mr Speaker, had salaries for officers of the Legislature been increased in direct alignment with the wage adjustments received by public officers, as some have suggested, the financial impact would have been more significant. Instead, the resolution tabled today reflects a more measured approach, keeping the adjustments for officers well below those seen in the public sector while ensuring that remuneration remains fair and appropriate for the responsibilities of these positions.

The financial impact of these adjustments is $283,343 per annum above the Board’s recommendations but ensures fairness across the board rather than large increases for a select few.

Mr Speaker, the resolution proposes that changes will take effect on January 1, 2025, to ensure fairness in pension calculations for former members. This approach guarantees that long-serving members who recently left the Legislature are not unfairly impacted by the 15-year wage freeze in pension calculations.

Former members such as the long-serving Deputy Premier, Deputy Speaker, and Minister of Public Works, and members of the Opposition who dedicated years to public service will have their pensions calculated based on adjusted salaries rather than the 2009 rates. This decision ensures that those who have served Bermuda over many years receive fair treatment in retirement, in line with the adjustments being made for those currently in the Legislature.

Mr Speaker, I understand that discussions around salary adjustments for elected officials are often met with scepticism. However, it is essential that we collectively acknowledge that serving in public office is not easy. It is a demanding responsibility that requires personal sacrifice. Fair compensation helps to attract and retain individuals with the expertise, dedication, and commitment required to govern efficiently and effectively. These adjustments are not about financial gain but about fairness and recognition of the evolving role and increasing demands placed on those who serve the people of Bermuda.

Thank you, Mr Speaker.