problems according to the detailed report by the Commission on Competitiveness.

And one way is to make trading easier in Bermuda by removing restrictive "protectionist policies''.

It is just one of a total of 156 recommendations from the Commission set up two years ago to look at the plight of the Country's two main industries, tourism and international business, in the midst of recession.

The Commission claims the Island must work both on Government, business and individual levels to attract new business and remove red tape for local and international industry setting up a base.

It states: "Bermuda must adopt and commit to a policy of encouraging the spawning and developing of new industries.

"These may require the removal of regulatory barriers. Potential new sources of foreign exchange revenue will also incur additional expenses but certain of these new ventures will result in an increased margin of business and will contribute to our increased standard of living.

"Bermuda's protectionist rules have generally served us well but in terms of controls on monetary flows, Bermuda should abolish the existing impediments to the flow of money into and out of the Island.

"Changes in the flows of money as well as the cost of money will have a large impact on how individuals and companies make decisions.

"We believe that on balance the community will benefit from the increased level of competitiveness arising from the abolition of exchange and interest rate controls.'' The report also asked for improved flexibility of the labour force which would need improved training and better relationships between unions and management.

One specific study concerned protectionist policies like monetary controls, restrictions on foreign ownership and access to local markets.

The protectionism study was carried out for the Bermuda International Business Association, chaired by Mr. Richard Butterfield. Mr. Butterfield said: "Protectionist measures have fallen on us over time like leaves. They have settled slowly until they have become like a blanket. They stick to our shoes when we try to move about.

"Bermuda, because of its small size, will always need some restrictions or else we'd be swamped. But many of the policies no longer seem to serve their original purpose.'' The report adds that under unrestricted free trade, Bermuda should eliminate restrictions that limit access by non-Bermudians to the market.

But the report supports Bermudianisation stating: "There is no doubt that Bermudianisation as a policy has increased job opportunities available to the indigenous population in Bermuda. In so doing, it has kept the proportion of Bermudian unemployment to a minimum.

"The lack of local unemployment, the visible commitment of the Government to ensuring that Bermudians receive every opportunity to work and the resultant low level of guest workers have all contributed to a sense of well-being.

"Much of the potential for resentment of `overpaid foreign workers taking Bermudian jobs' appears to have been diffused by the application of Bermudianisation.'' The report also looked at ways in which local costs could be reduced which would also help international businesses set up on the Island.

The mandate of the Commission on Competitiveness, formed in the spring of 1992, originated from concern over the economic performance of Bermuda during the 1980s and early 1990s amid signs that Bermuda's competitiveness was trailing other countries and jeopardising the standard of living.

It states: "The mandate also recognised the tremendous changes which were taking place outside of Bermuda and the impact these changes were having on traditional sources of foreign exchange revenues.''