Government "cannot play Robin Hood" — but it will do whatever it can to help industries in need, Finance Minister Paula Cox told an audience of business people yesterday.

Speaking at the Chamber of Commerce Power Breakfast about the Budget statement she delivered last Friday, Ms Cox said she would even consider drawing up an interim Budget before next year's scheduled date if a further worsening in economic conditions justified it.

In the Budget Ms Cox proposed to raise the public debt ceiling to $1 billion, which includes a $250 million provision to be used only as strategic response to "systemic threats" to the economy.

She explained more at the Fairmont Hamilton Princess, where business leaders, grateful for the absence of tax increases in the Budget, gave her a cordial reception.

"When I talk about systemic risk, I'm not just talking about the financial sector — it goes way beyond that," Ms Cox said. "It may mean the retail sector, for example. The help does not have to mean money. It may mean a Government guarantee or a letter of commitment. We have to enable our key sectors to continue.

"International business does not envisage that they will need things like payroll tax relief. But if it's an issue of maintaining Bermudians' employment, then at least the door is open, as part of making sure we shore up the economy.

"There are no absolutes. Now we are having to be flexible in terms of changing circumstances."

The deepening economic crisis around the world had left many governments like "a deer caught in the headlights", Ms Cox said. "They don't know what's about to hit them, but they know it's not going to be good," she added.

"Government is not playing Robin Hood, but we must try to keep people employed and to sustain economic activity. We'll have to see how it goes. Maybe in eight months time, I'll have to come up with a mini-Budget, if I think that people are in real need."

She also answered criticism over the decision to take money out of the Sinking Fund — established 16 years ago to pay off the principal on long-term debt — for the purposes of paying off next year's interest payment on long-term debt, around $20 million.

"Some say the piggy bank has been raided," Ms Cox said. "Others say it is using money that has been set aside for rainy days and that now we are facing some rainy days. Government subscribes to the latter point of view and it should be noted that this is a temporary measure."

She also expanded on how the increased debt ceiling could help soothe any concerns the UK might have about holes in Bermuda's finances, as it undertakes its review of Overseas Territories.

She said the UK wanted to ensure that none of its possessions were left in a situation like Iceland, whose banks' debts were larger than the country's GDP, which could leave the UK facing claims from creditors.

"They have no reason to have any issue with Bermuda," Ms Cox added. "But I want to make sure that no one has to worry about plugging the gap. And so we have resolved to increase the debt ceiling beyond our immediate needs as an economic fallback, should we need it to protect a key sector of the economy."

Ms Cox received a question about a $2 million cut in funding for the Police. She said that Home Affairs Minister David Burch had held round table meetings with department heads to work out how the cuts could be achieved.

She said Sen. Burch had risen to the challenge of "doing more with less".

In answering a question about the increasing monies allocated to consultants, Ms Cox said around $10.2 million of the $17 million hike could be accounted for by the Future Care for seniors programme being overseen by the Department of Health.

Provision for short-term contractors, security services and fees paid to members of boards and committees also came under consultancy costs.