Shadow Finance Minister E.T. Bob Richards. Photo by Mark Tatem

Shadow Finance Minister Bob Richards has welcomed Paula Cox's recommitment to the Sinking Fund, while reiterating concerns about Government borrowing and deficit spending.

Ms Cox announced on Monday that her Government would inject $28 million into the fund this year, after it suspended its annual contribution in 2009.

Mr. Richards said he was pleased with Government's renewed commitment to the fund — which exists to reduce or cancel public debt — but argued that an improvement in fiscal management was still necessary.

"The issue isn't whether or not you make commitments to the Sinking Fund, the issue here is whether you can live within your means," said Mr. Richards on Wednesday.

"You can talk all you like about sinking funds, but where the rubber meets the road here is whether or not you can control your costs."

Mr. Richards, a persistent critic of Government's borrowing record, said unless spending is brought under control the Country would continue to incur debt.

He also took issue with Ms Cox's assertion that Bermuda's debt-to-GDP ratio was modest compared to other developed economies.

"Bermuda is not like other countries. We are a one-horse town. We have one principle industry. That puts us at very high risk. If that industry falters, then the whole Island economy falters. Other countries to which we are being compared are diversified economies and because of that diversification their risk of faltering is a lot less."

Mr. Richards was also critical of Progressive Labour Party leadership hopeful Terry Lister's pledge to reduce the Island's debt burden by cutting capital spending.

"Mr. Lister has been complicit in this particular set of circumstances," said Mr. Richards, noting the backbencher previously served for many years as a Cabinet Minister.

"Particularly as one of the few people in this Government who have expertise in finance. He can't excuse himself, he cannot walk away — it's got to stick to him."

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