Shadow Finance Minister Grant Gibbons has called on Government to curb spending in the face of what he predicts could be a downturn in the Island's economy.

Dr. Gibbons said Finance Minister Eugene Cox should be preparing Bermuda for any possible slow down by cutting spending.

He said: "One of thing we should hear from Mr. Cox is what plans does Government have to essentially curtail their spending in the event of a significant economic slow down here. As we pointed out in the budget statement, you can't continue to spend like a drunken sailor if the economic situation in deteriorating all around you."

Dr. Gibbons' comments come after last week Mr. Cox said that Bermuda's economy was not facing a slowdown and was in fact going through a period of moderate growth.

And he projected that the country was on target for a 2.7 percent growth in an interview with The Royal Gazette. But Dr. Gibbons said he disagrees with Mr. Cox's rosy projections and said that Bermuda was likely to be affected by what was happening around the world, particularly in the United States economy.

He said that layoffs and lack of consumer spending in the States would impact on people's travel decisions - which would affect one of the largest sectors of the Bermuda economy, tourism.

Dr. Gibbons said: "Bermuda depends to a large degree on what is happening in the greater world for its economic circumstances and I think we really should be, on an individual and company side, but also on a Government side... we should really be preparing ourselves for a potentially declining situation over the next six months."

In an interview with the newspaper on his perception of what was happening in the economy, the former Finance Minister, contradicted Mr. Cox and said that he thought that the economy would go into slow down over the next six months.

And he said that the Government must brace itself for a possible slow down and help prepare the Island for any changes in its economic state.He said; "I think there are two parts to our economy. One is tourism, which I think most people would agree, has been in recession for some time now, and the other is the international business side, and that so far seems to be doing relatively well.

"But it is difficult to believe that if economic conditions deteriorate in other places that will continue to as well as it has been. Although the insurance sector seems to have been relatively robust, and seems to have been going through an up cycle right now with hardening rates and that sort.

"But the real reason that Mr. Cox should be a little more forthcoming here is that one of the effects of Government's spending and something like an additional $73 or $74 million dollars in increase in Government spending here and one of the effects of that has been increase borrowing to the tune of $50 million."

He added: "I think there really need to be a statement from Government on how they are going to moderate what, certainly what we in the United Bermuda Party see as undisciplined spending in this budget."