Government is looking at raising the retirement age in response to declining fertility rates and rapidly increasing numbers of old people, Finance Minister Paula Cox revealed yesterday.

Speaking at a press conference on the Throne Speech, she said: ?We have to encourage more of our seniors to stay in the workplace and that means Government has taken the position that it wants to extend the retirement age.?

She also said Government would look at family-friendly policies to provide incentives to encourage people to have children.

Unemployment assistance will be rolled out next year, although Ms Cox stressed Bermuda had relatively low unemployment levels of 2.1 percent last year.

She said income assistance would be temporary and there will be a close link to job search and retraining. Before legislation is brought in, there will be a further round of consultation with unions and employers said Ms Cox. Further details will emerge in the Budget.

The Small Business Development Corporation will also be beefed up with larger access to capital and a larger board.

It will be working with the banking sector to develop an Enterprise Capital Fund to help spur economic activity in the North Hamilton Economic Empowerment Zone.

And the Customs Tariff will be amended to provide further assistance to light industry.

?In addition Government will be taking innovative steps to stimulate enterprise in small business circles. The initiatives will include promotion of entrepreneurship through assistance to road side vendors.?

She said Government had identified areas designated for use by road side vendors which will be announced shortly.

On the international front Ms. Cox said Government will introduce legislative items to maintain Bermuda?s standing as a premier international business centre.

?One of the legislative initiatives is in the form of an umbrella legislation for international cooperation in tax matters.

?Bermuda recently concluded a Tax Information Exchange Agreement with Australia.?

Her Ministry is now scheduling other countries for negotiations including Mexico, Germany, New Zealand and others.