Government is misleading the public to make the economy seem healthier than it is, according to Shadow Minister Bob Richards.Mr Richards said that Government figures on the number of new international businesses registered on the Island were below average, but the PLP called his comments “disingenuous,” saying the country had made gains despite the economic downturn.Last week, Government announced that at total of 53 new international businesses were registered in Bermuda, a notable increase from last year’s 36 registrations.In an official statement, Mr Richards said: “Government touting 53 insurance company incorporations as a 50 percent increase over 2010 creates another false impression, given that 2010 was one of the worst years on record for company incorporations.“It’s like a Tourism Minister crowing over a 100 percent increase in winter cruise ship business, when two ships visit the Island compared to the year before.”He said that 53 new businesses is a higher figure than in 2008, 2009 and 2010, but lower than any year between 1991 and 2007. And while the businesses would help the Island, he noted that nearly half were “paper companies,” which he said would do little for the local economy.“Of the 53 ‘new companies’, a significant number, 23, are ‘paper companies’ or ‘special purpose insurers’, that were formed to perform specific insurance transactions,” he said. “They don’t actually have a physical presence with staffing jobs, though they do generate business for accounting and law firms and management companies. 2011 saw only two significant companies formed Third Point and PaC.“New incorporations are good for Bermuda because they generate business for local service companies, and there is no doubt that has occurred among the 53 ‘new companies’ in 2011, but the Island remains in a deep hole that has been driven largely by the loss of international businesses. Our unprecedented levels of unemployment, empty rental units, declining local sales are all a reflection of the outflow of business people and their families to other jurisdictions.“How we manage our way out of these hard times will depend on all of us conducting our daily affairs with the best understanding of our economic situation. Government information that misleads does nothing to help the situation.”He dismissed recent attacks by the PLP, saying: “It’s part of their shtick to tear down people who have different points of view.“My approach to public policy has always been to tell the truth as I see it. People need the best information to make the best decisions. This is especially important when times are tough.“The Government ignored my advice and Bermudians have paid the price for it in the form of continuing bad policies that have cost jobs and income and cutbacks in services and employment.”The official PLP Blog yesterday refuted Mr Richard’s saying that the increase in registrations was a positive sign for the Island.“We understand that the Shadow Minister of Finance doesn’t believe that there is a global economic crisis raging and that it is severely impacting Bermuda. But, it’s reality. And, the fact that we saw big gains in new registrations in spite of this global economic crisis is welcome news,” the post said.“But, don’t take our word for it. Peter Willitts of the Bermuda Captive Conference called the registration number ‘nothing short of fantastic.’ Tom McMahon of the Bermuda Insurance Management Association, said that “these are indeed great numbers for Bermuda” and that it was ‘a great vote of confidence by the international market’ in our island. And, Tim Faries of Appleby said that our 2011 performance ‘bodes well for the future.’“Bob Richards may attempt to feebly spin his way out of this good news by comparing numbers we produced in the midst of a global financial crisis to the numbers produced during global financial boom times. But, that’s disingenuous and the non-political IB executives know it. That’s why they are lauding the numbers and Bob Richards isn’t.“Bob Richards has a political stake in talking down Bermuda. But, the non-political IB executives don’t. They are telling it like it is, and, the truth of the matter is that in the middle of a global financial crisis, the registration news is indeed encouraging.”