Created on: September 28, 2024 08:03 AM
Proceed with caution: government backbencher Anthony Richardson (file photo)
Controversial legislation that would allow first-time homebuyers to compulsorily take pension funds as a down payment on their mortgage was passed by parliament yesterday despite reservations from many government members.
The National Pension System (Occupational Pensions) Amendment Act 2024, introduced by Deputy Treasurer Jaysh Adams, was supported by 17 government MPs, opposed by four opposition MPs, and opposed by government MP Curtis Dickinson. Scott Simmons and two others opposed it. .
The government’s Anthony Richardson gave it lukewarm support.
He said: “There needs to be a lot of education on this issue. We need to be careful when extolling the benefits of home ownership. Any withdrawal from pensions must be done in an educated and understanding manner.
“There’s danger ahead. It’s not a red light, it’s an orange light, so proceed with caution. You can’t do anything you want.”
Deputy Speaker Derrick Burgess acknowledged the initial concerns, adding: You’ve been doing it wrong from the beginning. I believe people should not touch their pensions. ”
Despite this, Burgess supported the bill during the vote.
Christopher Famous, a government backbencher, recalled how previous generations were able to buy “a piece of stone” without having to get a well-paid job.
The Devonshire East MP admitted times have changed, with would-be homeowners having to “borrow money at extortionate interest rates to leave something for their children”.
Opposition deputy leader Ben Smith acknowledged that there are times, such as the coronavirus crisis, when people have to dip into their pensions, but these are exceptional circumstances.
“We have to stop people from getting on a plane and never coming back because they can’t afford to be here. There are risks in interfering with their futures.”
Prime Minister David Burt described the comments as “depressing and condescending”.
“They are moving their savings from one asset to another,” he said.
“Many people are still living with their parents. In the name of progress, we are giving our people the tools they need to pursue what many want to have: homeownership.” .
“Let’s stop using such bogeyman language.”
Bermuda Alliance MP Robert King referred to Mr Dickinson’s earlier comments, saying:
“We are being asked to ignore the advice of reputable experts.”
Craig Cannonier said he understood the government needed to find “creative ways” to help Bermudians get onto the property ladder.
But the shadow public works minister warned: “It’s tough out there and while I understand this creative idea, we may never know when the next coronavirus will hit us.”
He added: “Are you willing to bet on the future?”
Scott Simmons, for the government, ended the debate by admitting that he was “not very happy” with the bill when he first read it.
He said: “I would like to see provisions put in place so that we can work with the community, and I think we need to approach this carefully.
“This is a tool for people who need support, but we also need to make them aware of the downside. As well as helping them move forward, there is also a flip side to this. Please let me know.”
Mr Adams agreed that financial literacy was key and said a “collective effort” was needed to ensure all applicants understood the risks and how to mitigate them.
He said the option was “completely voluntary” and people were “very welcome to keep pensions as they are”.
He added that the proposal is an election platform promise that the government will strive to fulfill.
“Homeownership is important to my party and homeownership is an aspiration for many Bermudians.”
Mr Adams said real estate was an investment that many Bermudians fear they would never be able to make. We make no apologies for providing options that will improve the lives of families for generations to come.” Please come. ”
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