Bermuda's small business development chief yesterday blasted claims by a bosses' organisation that the new national pension scheme would kill off little firms as scare tactics.

And Bermuda Small Business Development Corporation general Manager William Spriggs said: "It is highly unlikely that the pension scheme, by itself, will kill small firms.'' He added: "The Corporation feels that the January 2000 phasing in of our national pension scheme should be palatable to most small businesses -- most of us will agree that our current system is inadequate.'' Mr. Spriggs lashed out after Bermuda Employers' Council president Gerald Simons called on members to petition Finance Minister Eugene Cox in a bid to force changes to the new pension law, due to come into force next year.

Mr. Simons said the Act setting up the new scheme was "all encompassing, excessive, overwhelming and rigid''.

BEC chief under fire And he also called for exemptions to be granted to employers who have around three workers -- and warned that the scheme, if implemented as it stands could be the death knell for small or vulnerable businesses.

But Mr. Spriggs said: "Certainly, if a small business is crippled by cash problems such as soft sales, uncollectable accounts receivable or mounting trade debt adding anything to the businesses overhead is generally not a good idea.'' But he added: "By far, most small businesses which fail do so because of management problems.

"A good number of small firms, especially those with longstanding Government payroll and social insurance arrears will not find our new pension legislation attractive for obvious reasons.'' But he said the phasing in of the full contribution over a number of years gave entrepreneurs "a window of opportunity'' to restructure their businesses towards showing a profit in the long-term.

Mr. Spriggs added that Mr. Simons' terror tactics could knock the wind out of small businessmen already struggling to make ends meet.

He said: "Most small businesses are confident about the future -- I've had a lot of phone calls since Mr. Simons spoke from small businesses saying that nobody likes extra expenses, but that they're pleased with the way it's being phased in.

"But to many small businesses out there who are in desperate straits, who are looking at restructuring, have debt with the bank and Government, it doesn't do anything to boost confidence.

"Small business should be put on the alert -- but they shouldn't be frightened unnecessarily.'' Mr. Spriggs said nearly 400 small businesses took advantage of Corporation consulting services last year -- and a big increase was expected over the next few years.

He added that small businesses would find that they could no longer do business as they did in the past.

Mr. Spriggs said: "A new breed of entrepreneur is among us -- one who is computer savvy and fairly well-educated on the benefits of keeping proper management accounts.'' And he warned that hi-tech computer-based buying and selling and changing trends in consumer behaviour would also impact on the future of small business.

He added: "The Corporation is eager to assist and should always be thought of as a solid resource for assistance with any small business development issues.'' Any small business interested in taking advantage of a free consultation with the Small Business Corporation should call 292-5570.

BEC chief under fire And he also called for exemptions to be granted to employers who have around three workers -- and warned that the scheme, if implemented as it stands could be the death knell for small or vulnerable businesses.

But Mr. Spriggs said: "Certainly, if a small business is crippled by cash problems such as soft sales, uncollectable accounts receivable or mounting trade debt adding anything to the businesses overhead is generally not a good idea.'' But he added: "By far, most small businesses which fail do so because of management problems.

"A good number of small firms, especially those with longstanding Government payroll and social insurance arrears will not find our new pension legislation attractive for obvious reasons.'' But he said the phasing in of the full contribution over a number of years gave entrepreneurs "a window of opportunity'' to restructure their businesses towards showing a profit in the long-term.

Mr. Spriggs added that Mr. Simons' terror tactics could knock the wind out of small businessmen already struggling to make ends meet.

He said: "Most small businesses are confident about the future -- I've had a lot of phone calls since Mr. Simons spoke from small businesses saying that nobody likes extra expenses, but that they're pleased with the way it's being phased in.

"But to many small businesses out there who are in desperate straits, who are looking at restructuring, have debt with the bank and Government, it doesn't do anything to boost confidence.

"Small business should be put on the alert -- but they shouldn't be frightened unnecessarily.'' Mr. Spriggs said nearly 400 small businesses took advantage of Corporation consulting services last year -- and a big increase was expected over the next few years.

He added that small businesses would find that they could no longer do business as they did in the past.

Mr. Spriggs said: "A new breed of entrepreneur is among us -- one who is computer savvy and fairly well-educated on the benefits of keeping proper management accounts.'' And he warned that hi-tech computer-based buying and selling and changing trends in consumer behaviour would also impact on the future of small business.

He added: "The Corporation is eager to assist and should always be thought of as a solid resource for assistance with any small business development issues.'' Any small business interested in taking advantage of a free consultation with the Small Business Corporation should call 292-5570.