Mr. Louis Mowbray said there were also worries about a projected six percent hike in Government salary costs and talk of a possible pay rise for MPs and Senators.

And for some, the one percent hike in the hospital levy announced on Monday by Finance Minister the Hon. Saul would be hard to take, Mr. Mowbray told The Royal Gazette .

In general, though, "the Government should be congratulated on a thoughtful approach to the whole subject,'' he said.

The Budget had to be considered in the context of Bermuda emerging from a recession, the withdrawal of military bases, and the impending costs for assuming operations at the Civil Air Terminal.

Although current account spending had jumped by seven percent, Government "had to balance off the need to help elements of the community that had been particularly hard hit,'' he said.

Social assistance spending was up sharply.

A simpler tariff structure was a positive change, and so was a phased approach to lifting foreign exchange controls, he said.

Lower duties on several tourist-oriented goods would make it easier for retailers to compete.

He also welcomed slashed duties on computer technology that businesses needed.

But duties on some items were up sharply. For instance, the tariff on aluminium windows jumped to 22.25 percent, from 11 percent. "I'm not sure if that happened by design or by accident, but there are some cases like that which we might want to take up,'' Mr. Mowbray said.

A large concern was increased Government borrowing. Though debt levels were still within prescribed limits, they reached $115 million when Bermuda Housing Corporation guarantees were included.

"That is very high by historical comparisons,'' Mr. Mowbray said. "All that money has to be serviced -- interest has to be paid.'' The Chamber also had questions about a six percent increase in Government salary costs when inflation was running just above two percent.

As for plans for a Joint Select Committee on possible pay rises for MPs and Senators, "when you consider that many people in the community have not received increases, or have received only very small increases over the last few years, the timing doesn't strike us as particularly auspicious.'' Although Government said businesses could collect the entire one percent hike in the hospital levy from employees, Mr. Mowbray said he believed some companies would split the cost of the extra tax with their workers.

However, "there are situations where neither the employee nor the company are in a position to meet that increased cost,'' Mr. Mowbray said.

Mr. Louis Mowbray.