Mr. Speaker and Honourable Members, 

Today I will be laying before this Honourable House a report proposing the establishment of an Economic Empowerment Zone in South East Hamilton.

Mr Speaker,

The report was prepared by the Bermuda Economic Development Corporation (BEDC), which has made substantial strides in creating productive partnerships in both the public and private sectors to establish the three Economic Empowerment Zones (EEZ): the Northeast Hamilton Economic Empowerment Zone; the St. George's Economic Empowerment Zone; and the Somerset Economic Empowerment Zone.

The first EEZ was established in Northeast Hamilton in June 2007.  Two additional EEZ's, in Somerset and St. George's, were established in March 2011. The initiative continues to meet the Government's goals of empowering businesses and residents in these designated areas.

 Mr. Speaker, 

The PLP's 2020 Election Platform and 2020 Throne Speech included a goal to transform the City of Hamilton into a liveable city by fostering the development of apartment buildings, and other developments in unused and underused sites.

 In line with Bermuda's Economic Recovery Plan, the 2021 Throne Speech indicated that the boundaries of the Northeast Hamilton Economic Empowerment Zone would be extended.

Mr. Speaker, 

Given the success of the three established EEZ's, the Government is committed to empowering additional communities to succeed economically, socially, and physically. The Report before the House today proposes to establish a new economic empowerment zone in South East Hamilton.

Regarding this new proposed EEZ, the Bermuda Economic Development Corporation (BEDC) has carried out extensive consultation with stakeholders and businesses in South East Hamilton. Additionally, the City of Hamilton Plan 2023 Consultative Draft and related documents, recognise that South East Hamilton warrants investment and has good development potential.

As the gateway to the city, South East Hamilton plays an important role by providing key commuter routes into and out of Hamilton. It also plays a key role in Bermuda's economy as it hosts the container docks. However, the full economic and development potential of eastern Hamilton, both north and south, has not yet been fully realised compared to the central and western areas of the City. The designation as an EEZ provides access to economic development tools to help this area fully realise its potential.

The BEDC conducted a survey of the area, including current land use, business needs, and an assessment of existing infrastructure in the area.

Mr Speaker,

Respondents to BEDC's survey were in strong agreement that there should be more economic investment in the area, citing such reasons as the need for investing in building refurbishment, under development, the need for support of the many small businesses in the area, as well as the need to encourage more entrepreneurship in the area.

 The research also concluded that there is a need for increased investment opportunities in the area to benefit the efficacy of the EEZ. Combined with pedestrian linkages to the North East Hamilton EEZ and vehicular access in and out of the City characterize the potential for the proposed South Hamilton EEZ to be a well-connected district in which to live, work, and play.

Mr. Speaker,

Its important to highlight that designation as an EEZ allows immediate access to a variety of incentives and products for qualifying businesses, property owners, developers, and investors that meet the criteria and show need for support. Currently, specific EEZ incentives available are as follows:

(i)           BEDC EEZ Payroll Tax Concession

(ii)          BEDC EEZ Customs Duty Deferment

(iii)        Reduced land tax

(iv)        Reduced application fees on products

(v)          Preferential interest rates on funding, and

(vi)        Approved Residential Schemes

In closing, Mr. Speaker, this Government is serious about encouraging a viable, reputable business environment, as well as the development and economic regeneration within the City, both north and south. To this end the Ministry of Economy and Labour will continue to make economic empowerment an imperative by creating sound, progressive policies that support investment, regeneration, and growth. The creation of the South East Hamiton Economic Empowerment Zone is a tangible example of this commitment.

Thank you, Mr. Speaker.