The following is a continuation of Friday's House of Assembly's debate on the Budget Allegations that the Government is xenophobic and operates "secretly'' and in "stealth'' were thrown by Opposition Leader Pamela Gordon as she responded to the Budget in the House of Assembly on Friday afternoon.

Clearly frustrated at what she called Government's refusal to divulge their plan for the future, Ms Gordon accused the Progressive Labour Party Government of not showing any vision and charged that the recent Budget did not see them making "the tough decisions'' they had promised they would.

The importance of international business foreign investment, e-commerce and the dangers of Government investing in property, were stressed by Ms Gordon in her address.

She pointed to current statements in the media by Government ministers and charged that they would chase foreign business away. Insistent that Bermuda was heavily reliant on international business and foreign investment to sustain the standard of living locals have become accustomed to enjoy, she warned that the departure and withdrawal of this financial base would impact Bermudians severely.

"Fifty-five percent of the jobs in international business are held by Bermudians,'' she said, "so we have to be careful what we ask for because if these businesses go that means almost 2,000 people will be without jobs.

"If we are going to chase away international business then people will have to invest in local businesses or else we will suffer,'' she continued, "and thus far we have not seen locals investing in local companies.'' Ms Gordon took a hard line with what she felt was Government's lack of spending in the area of e-commerce. She held that the Budget saw the creation of only two jobs in the area to conduct market research.

"By that time we will be so far behind the rest of the world,'' she said, "We will be the laggers and it is unfortunate because we had the opportunity.

We in the UBP considered this a prime opportunity for Bermuda to leap into this industry.

"Instead we see this huge infusion of capital into tourism with no back-up plan,'' she said.

"I hope we will have better tourism results than last year but in order to maintain the standard of living we have to change our positioning.'' The Opposition Leader also took issue that the Government did not institute special educational incentives and initiatives based around e-commerce and its rapid growth.

Cautioning on the dangers of Government's plan to buy up property for rental, Ms Gordon charged that such a move would have the long-term effect of increasing the size of Government.

"This Government had said that they are committed to a reduction of Government,'' she said, "but the long-term effects of buying property will be just the opposite.'' Pointing out that landlords were faced with maintenance and upkeep as well as mortgage payments, Ms Gordon illustrated her contention.

She also urged the Finance Minister to provide one taxation structure for both local business and exempt companies.

"We are concerned that this $250,000 cap also be placed on local businesses so that there can be no `ring fencing','' she said, "because that will put us at a distinct disadvantage internationally and with the OECD. It is for this reason that we strongly urge and encourage the Finance Minister to embrace all of it.'' Shadow Tourism Minister David Dodwell sought to highlight some alleged deviations from pre-election promises made by the Progressive Labour Party.

Quoting from `A Summary of the Progressive Labour Party's Economic Policy', which was released two months before the last election, Mr. Dodwell read: "It is the PLP's policy to introduce new standards of Revenue Management that will represent a dramatic departure from the manifest extravagance, waste and fiscal irresponsibility of the outgoing administration.'' "Through prudent Revenue Management, a PLP Government will ensure that Government's finances are put to optimum use, and will/pre-empt/the need to consider new tax measures...'' But Mr. Dodwell pointed out that Budget 2000 showed no "new standards of revenue management'' and he held that taxes had increased.

"This is directly the opposite position,'' he said.

Returning to the pre-election document, Mr. Dodwell held that there was another major variance.

The document reads: "Our economic policy will operate in a framework predicated on the recognition that real growth must come to the stagnant economy that the PLP will inherit, the economy will continue to be market driven by an enduring partnership between the private sector and a genuinely `business friendly' Government.'' Mr. Dodwell took issue with the promise by the PLP to be `business friendly', contending that Budget 2000 offered no real concessions to businesses.

"Retailers in particular are desperate,'' he said, "but they have only been given a reduction in duty of cut flowers and polyester clothing.

"Clearly there wasn't a level of satisfaction with this Budget at the Chamber of Commerce breakfast I attended,'' Mr. Dodwell noted, "and my phone has been ringing with many people dissatisfied and full of questions about it.'' Mr. Dodwell suggested that the `acid test' for the Budget was to ask yourself `are we better off?' and he held that those who questioned whether the PLP Government had lived up to their promises or were beginning to, might be moved to answer either `yes' or `no'.

"Those who answer `yes' will say yes but land tax has increased, payroll tax has increased and crime has increased,'' he said . "Those who answer `no' will say they still have no housing, crime has increased, drug prevention needs to be done and there still needs to be tourism incentives.'' He suggested that most sectors of society would not be able to say that this Budget made them "better off'' than they were before.

"We hear the minister saying the tourism industry has been in decline for 18 years,'' Mr. Dodwell said. "But it has really been in decline for one more.

It's 19 years and we're headed into the 20th year.

"I'm calling on you to produce your strategic plan. It's now 500 days (since the last election) and you've given us no inkling what you plan to do.'' During 1999, Mr. Dodwell said, hotel occupancy, bed nights or the average amount of nights tourists would stay in hotels, and the length of stay statistics all declined.

And he warned against allowing the percentage of visitors who arrived via cruise ships to rise to nearly 40 percent of the total, citing The Bahamas who had turned back from a high of 65 percent.

"We take the view that one quarter is about right. And the post-Pindling government of Bahamas recognises that.'' Mr. Dodwell also complained about secrecy in government negotiations, saying: "You can't let our investors open up The Royal Gazette to find out who got the concessions and who's investing here.'' "You hit them with a million dollar tax in July 1999 and then give them a $200,000 break in this budget,'' he said. "Are you not still $800,000 behind?'' Mr. Dodwell also presented a seven point plan for tourism revival, which brought derision from the Minister who said it was nothing new.

The UBP plan includes a five-year development plan for the industry including an airline strategy, a realignment of the cruise ship to airline passenger ratio, and greater Internet presence for the Island's tourism industry.

Allen hails $200 million hotel deal as evidence of tourism turnaround And he again called for the creation of a Tourism Authority to replace the Tourism Board for the future direction of tourism, citing examples of US states who raise more money privately for tourism than from the Federal government.

"The tourism ministry is the most important ministry because it is the only one in competition with other country's tourism ministries,'' Mr. Dodwell said. "But it is in decline. We had lots of promises and no delivery.'' Tourism Minister David Allen said Mr. Dodwell had "Chutzpah'' to suggest that tourism had not been turned around and listed several new programmes that had been launched or were about to be launched in the coming months.

He said it had been 27 years since the Island had seen any new hotel development and his party had completed at least three since taking power.

Mr. Allen cited the revamping of the Tourism Board with more than 75 percent new faces replacing "deadwood'', and a new airline strategy with new gateway cities.

The $200 million Castle Harbour deal and the $11 million Daniel's Head development were also signs of progress, as were negotiations with larger hotel management firms than the Island's current partners like Rafael, Fairmont, and Sonesta.

He added: "There's $300 million in new investment. Our partners know that Bermuda is back! The true test of Government's programmes is the Cruise, Fly and Stay.

"It's about the seduction of cruise passengers away from the ships and onto the land, they will come back,'' Mr. Allen said.

Mr. Allen refuted claims by his shadow counterpart David Dodwell that the Government were not `business friendly'.

"We are a business friendly ministry and a business friendly Government,'' he said. "We are ready to work with the private sector and have been developing relationships with them.'' Mr. Allen pointed to the agreement with Regency Hotel to take over the former Marriott Castle Harbour property as an example of the partnering Government is doing.

He applauded the agreement and noted that incentives including reduction of duty on wine and liquor were a new move and integral to the agreement.

Mr. Allen held that the move has attracted attention from at least six other hotels to operate in Bermuda.

"At least six hotel developers are wanting to come to Bermuda. We can almost pick and choose who we want here now, that is the situation this Government finds itself in,'' he said, "so that if talks break down with one group we have others to fall back on.'' He also noted that the Bermuda website is being revamped.

"We find it too static at the moment so we are making some changes there and those changes are underway now as we speak,'' he held.

Responding to heckling from the opposition that he has no tourism plan, Mr.

Allen said: "We have a plan. We don't need to let all our competitors know and so we're not going to put it on the Internet.'' But former Tourism Minister and UBP MP Jim Woolridge charged that Mr. Allen had no idea about tourism marketing.

"He has no compunction of what marketing is. He likes to travel and spend money,'' he said. "He thinks tourism marketing is going on a road show taking the gombeys and having a party.

"Everybody loves a party. The travel agents love them , they can go there straight from work and have food and drink,'' Mr. Woolridge continued, "but how much of that will translate into actual visitors? I think we'll be lucky if we get one.'' Suggesting that Mr. Allen resign or be fired, Mr. Woolridge noted that tourism figures had dropped and spending increased, since he took office.

Mr. Woolridge also accused Mr. Allen of being environmentally insensitive by having "no regard for the visitor load we can adequately accommodate''.

"I was surprised to hear the minister complain,'' said Mr. Woolridge,"that we must be the only country in the world that restricts the number of cruise ships coming to its shores to six.'' Mr. Woolridge then explained the great difficulties just in trying to arrange transportation. These problems were likely to happen if there was a proliferation of cruise ships coming even during the weekends.

Criticising the concessions Government had offered to the Regency Group to attract them to the Island, Mr. Woolridge noted that the perceived favouritism caused the potential investors in the Belmont hotel to pull out.

"The deal with Belmont has fallen through because when they saw the deal Regency had they asked `what about me?','' he held.

Illustrating the delicate relationship of businesses in the economy Mr.

Woolridge noted the integral role large hotels and big business play in keeping the cost of electricity where it is.

"I understand that hotels and big business account for 81% of the revenue from the fuel adjustment alone,'' he said, "if they close or leave, that in the long run will have an impact on BELCO which they may be unable to absorb.'' Mr. Woolridge also charged that much more progress could have been made in developing tourism when the UBP were in power were it not for Mr. Allen complaining and "putting a pneumatic drill in the works''.

Specifically recalling Mr. Allen's opposition to Club Med and the Ritz Carlton Hotel developments, Mr. Woolridge charged: "He may have thought he was hurting us, but he was hurting his country.'' PLP MP Delaey Robinson laughed off Mr. Woolridge's comments saying he found it funny that Mr. Woolridge could seek to attribute the 18 years of declining tourist arrivals, to the voice of one opposition member.

"That is really a load of you know what,'' Mr. Robinson said.

He held up the Budget as a `people's budget' and noted that it emphasised programmes which will enhance the development of Bermuda's people.

Marshall urges Govt. to rein in spending "If you look at where Government is going to be spending money, education is at the top of the bill,'' he said, "We are not afraid to spend money on our people.

And he pointed to the provision of 1,721 new jobs by the Government compared with 27.

"And sixty percent of those 1,721 jobs were filled by Bermudians,'' he said.

Mr. Robinson praised the inclusion of local black history in the educational system, and held that it would go a long way to causing Bermudians to "know who they are'' and "allow them to puff their chests out and feel proud''. He also contended that this would result in locals giving better service because "they will feel good about themselves''.

Seeking to put Government spending in its proper context, Mr. Robinson noted that its influence did not have as large an impact on the local economy as the Opposition would suggest.

"When we look at the ability of this Government to influence GDP it is barely over 20 percent,'' he said, "so the marginal changes in Government spending will have much less impact on the economy and are not likely to have the dire consequences of doom and gloom the Opposition suggest. Government's spending is relatively small.'' Environment Minister Arthur Hodgson said Government would introduce a "comprehensive environmental protection act'' and was re-evaluating the development and planning legislation.

Mr. Hodgson promised a mapping system which would regularise and register each plot of land in Bermuda, which would be more accurate than the maps used by the Planning department.

"It will be on disk and retrievable by the public,'' he said, adding it would help Government to protect the Tribe Roads and Railway Trail, land access to beaches, and smaller lanes and roads.

He added: "We want to be at the forefront of environmental protection in the world.'' Opposition Development and Opportunity Minister Alan Marshall pleaded with Government to rein in spending, which he said was adding nails in Bermuda's coffin of economic decline.

He said the increase in the statutory debt limit to $250 million from $185 million would give the Island a debt beyond $4,000 per person in the future.

While he approved of the major item in the increase in the debt -- a new senior high school -- he called for less spending in a time of potential economic downturn and rising inflation.

"Spending is rising faster than inflation, Government is nickel and dimeing us in that spending, and we are increasing our indebtedness,'' Mr. Marshall said.

"One by one we are putting the nail in the coffin. I liken this budget to a bikini in that what it reveals is interesting but what it conceals is vital.'' Mr. Marshall also noted that the gross domestic product rate of growth was slowing, the cost of borrowing money is rising, and the contribution of the Government budget is higher than that contributed by tourism.

He also complained jobs had been given to Progressive Labour Party stalwarts like Roosevelt Brown and Raymonde Dill, and the Bermuda Archives storage had been moved to a Bermuda Industrial Union building without public discussion.

Mr. Marshall said Bermuda had seen "champagne socialism'' in the PLP MPs getting oversize cars, numerous expensive trips, and parties, which drew derision from the Government benches.

"I expected something bold and visionary,'' he said. "I have to say I'm disappointed. How can we have a happy future for our children and our children's children if we spend beyond inflation?'' Transport Minister Ewart Brown challenged opposition members to think of his Government as capable of leading rather than being "arrogant'' and questioning its abilities.

"What we have heard today from them is exactly why they are there and we are here,'' he said. "We work for the people of Bermuda, not for you. You haven't seen the contracts or a plan because it's not your turn!'' To show Opposition mismanagement of Government coffers, Dr. Brown said "put up or shut up'' and admit which UBP finance minister was in charge when $1 million was paid out in pension payments improperly.

"Who was at the calculator? You want to talk about management,'' he said.

"All of this was about that old adage that we can't manage money.

"We are doing this differently. We may disagree on how to do it, but to ignore principles (of money management) would be reckless. We have spent as much time in four walled schools maybe even more as you.'' Later, Dr. Brown said: "They embezzle and we steal. Do you understand what I'm saying, Mr. Speaker? I'm not making any accusations, I say that to show the difference in intention.'' Dr. Brown said his party had retained certain UBP projects because it did not want to be "arrogant'' and drop good programmes.

And he railed against opposition objections about the budget, saying they belie "the old adage that the PLP can't manage money'' a belief that he said had been put to rest by the budget.

Dr. Brown said he could not understand why there had been protests about spending on the new cabinet and senior civil servant car pool.

He said: "We never said you could not have your Mitsubishi's. But there is something different about a Peugeot.'' Dr. Brown said PLP parliamentarians had spent as much time in "four walled schools'' as opposition members and knew money management, adding: "We may disagree but to ignore principles would be reckless.'' PLP backbencher Dale Butler said people told him during the week the budget seemed to be one of "steady as it goes'' and he was glad Mr. Cox had made "tough decisions'' like the commitment to Berkeley Institute.

Shadow Health spokeswoman Kim Young questioned some of the choices in the budget, such as why bus and ferry fares were raised when, she added derisively, "it is supposed to be a people's budget''.

"Perhaps new or wider cars for the cabinet could have been forgone and maybe we would not have to increase bus fares,'' she said. "It looks as though government officials are looking out for themselves first.'' Government backbencher Wilbur Lowe was confident in the budget "because the Minister of Finance is a real champion''.

Rev. Lowe added: "I want Bermuda to beware of Absalom who is posted at the gate of the City. I believe the Minister is working it out and we are on the right path.'' And he said there were "new and exciting'' things developing at Southside, St. George's where a "beautiful community'' will soon form.

Opposition Whip Cole Simons said he was concerned not enough was being done to encourage e-commerce in Bermuda and called for a reduction in the cost of doing both international and small business.

Mr. Simons said: "I believe more concession should have been given to small businesses to see that they maintain and grow.

"Over the last two years there has been a $744 increases in the taxes paid per person,'' he said. "Bermudians should be put on notice that they will be asked to dig deeper and deeper in their pockets.'' Shadow Youth and Sport spokesperson Patricia Gordon-Pamplin said that despite years of PLP protests the UBP had focussed on "bricks and mortar'' when it was in power.

But now, she said with it's second budget, the PLP were doing the same.

Citing an increase in the Bermuda National Library book budget, she said: "A book on the shelf does not translate into learning. I would have liked to have seen a reading mentor programme to make sure books on the shelf are consumed.'' Mrs. Gordon Pamplin also asked why Government borrow money for new capital projects at a fixed interest rate.

"We expected much from this budget,'' she said. "We expected prudent fiscal management. What we have seen is spending, spending, and more spending. We have to note that negative economic indicators are coming into the debate.'' Michael Dunkley (UBP) said that by his calculations, each person in Bermuda paid the equivalent of $10,000 a year in taxes.

Holding the Budget Statement in his hands, Mr. Dunkley said: "There is a five percent increase in Government fees. People stop me and ask are we getting value for our money (from government).'' He said the PLP "lambasted'' the UBP government for having a debt ceiling of $140 to $150 million, but want to raise the ceiling to $250 million.

This would place on Bermudians a burden of about $4,000 per person in the future.

"Bermudians are starting to pay attention that this Government is beginning to spend money at a great rate,'' Mr. Dunkley said. "I hope this budget is more straightforward than the last one.'' Legislative Affairs Shadow Minister John Barritt warned of dark economic clouds in the future, and added now is not the time for added spending, particularly deficit financing.

He said the Island would have to wait for the "chickens to come home to roost'' with the budget, adding: "The question is will they come home strutting or will they come squawking?.'' On the attack: Pamela Gordon David Allen Alan Marshall Ewart Brown Gary Pitman