Bermuda's international business sector came out in support of what was generally characterised as a modest first budget by a new Government with indications of a more aggressive approach to come next year.

Most said they had expected such a budget given the short time constraints under which Finance Minister Eugene Cox had had in which to prepare since the November election.

International business consultant William Storie characterised the budget as good but "middle-of-the-road'', meaning there wasn't much change.

He endorses the emphasis on education and training. He expects the next budget to be very different as Mr. Cox will have had more time to settle into the post.

"Once they understand the full workings of government they will come up with more flavour and more accent toward social programmes,'' he said. "We may see a slightly different emphasis, which I would endorse as long as they don't lose sight of the importance of international business. I think they are right on the ball with social programmes targeted at youth and education.'' Bermuda Investment Advisory Services Ltd. financial analyst Mark Melvin described the budget as a cautious one in light of the ongoing review of the tax system.

"Everything hinges on the review,'' he said. "It's business as usual as far as we're concerned.'' Bermuda International Business Association (BIBA) chairman Glenn Titterton said the budget was fiscally responsible. Government allocated an additional $100,000 to BIBA for a total of $1.6 million in the next budget year beginning April 1.

He noted the increase in total Government expenditure for the year leaving a projected budget deficit of $17.7 million based on projected revenues of $551.6 million. Government's current long term debt expected to increase to $169.5 million by March 31, 2000.

"The fact that we currently have a strong and growing economy has made structuring the budget in this way possible for this year,'' he said.

"However, other economies on a global basis are not as strong, and we must be mindful of, and guard against, the possible negative impact of external forces on our economic position.'' He said the new 15 percent customs duty tariff on overseas printing of annual reports will cause some concern among international companies. However BIBA supported the protection of the local printing industry as long as businesses can deliver the quality.

KPMG Peat Marwick Bermuda managing partner Robert Steinhoff, the chairman of the Insurance Advisory Committee, called it a "win-win'' budget.

"It's a win for the people with spending on education and social programmes and a win for international business,'' he said. "The Government recognises the importance of the twin pillars of the economy is international business and tourism. Both bring jobs and growth in wealth.'' He said he was pleased to see the Government maintained its commitment to not imposing a system of income taxes.

"International companies are very sensitive to taxes,'' he said. "It is sound policy to increase revenues by stimulating growth in the economy.'' He said he was encouraged by the spending on education as this would help increase skills to support the growth of international business. The budget push to cost savings by weeding out unproductive spending in the running of Government and better financial reporting was also noted.

He didn't consider the tax on annual reports printed overseas as a major concern in the international sector.

"There is no significant pains for any category in this budget and they are doing what a Government should do,'' he said. Bermuda Employers' Council president Gerald Simons said the organisation was pleased there was no increase in the payroll tax especially with the upcoming implementation of mandatory pension plans.

He supported the measures to stimulate the local printing industry. The organisation had worked with the industry in making a presentation to Government.

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