To His Honour the Speaker and Members of the Honourable House of Assembly:

Mr. Speaker,

You will have observed that a new era has dawned on the United Bermuda Party. We have for the first time in our history, a woman whose primary responsibility is the portfolio of finance. I would be less than truthful if I omitted to say that I would have preferred to be the second female Finance Minister, however, to be the first of my gender on this side of the House is a signal honour.

I would, Mr. Speaker, at this time, like to pay tribute to my predecessor in this role, the Hon. Grant Gibbons, whose stewardship of this portfolio was outstanding as he served this country and this party with distinction, expertise, care and compassion. I certainly look forward to his continued support and contribution.

We now have a new leader of our Party, the Hon. Wayne L. Furbert, whose aim is to realize a new vision for this Party and for this country, one in which the deeply rooted prejudices of the past are finally put to rest. In this vision, there is abiding concern for the plight of our citizens for whom the quality of life has significantly diminished, and who are suffering at the hands of a Government who want to offer them too little, too late. We, in this party, work alongside one another in the spirit of cooperation to advance this vision. We hope to see within our lifetimes that all prejudices will be set aside, and a healthy respect shown for each other, irrespective of which side of the aisle we sit or what our political affiliations may be.

We do, however, still reserve the right to criticize any programmes that are being advanced by the Government that we do not consider to be in the best interest of the country. Indeed, it is our duty to do so. It is a criticism that says mediocrity has no place in government, regardless of who the government is. We are living in a time when innovative measures are required to address the declining standards in the quality of life that have beset us, and not in a time for a simple illusion of inclusion. We need more than a 'Spend and Spin? administration ? our people are hurting.

We note the Government set aside $125,000 in this Budget for reactivating CURB (Citizens Uprooting Racism in Bermuda) to work along with CURE (Commission for Unity and Racial Equality). Perhaps the infusion of funds for this initiative might allow the Government to recognize the inappropriate comments made by some of their key members, to repudiate such comments and work in a real way to embrace each other for the common good of the community, notwithstanding our political differences.

In my new role, Mr. Speaker, it is my intention to highlight those areas where we believe that a United Bermuda Party Government will better serve the people of Bermuda with prudent and austere management, and to point out the opportunity costs of poorly managed projects. It is NOT my intention to school the electorate in macro-economics, but rather, to speak in laymen terms on day to day issues that affect the average man and woman in Bermuda.

I am pleased, therefore, to present to this Honourable House the United Bermuda Party reply to the 2006/2007 Budget Statement.

As we listened patiently to Budget 2006/07, it proved to be a verbose, repetitive document, with many recycled ideas, but in essence, devoid of specific targets. It said a lot of things, but promised little that would really reach down and help those people in our society that are left outside the ark of safety ? our seniors, our single parent families and the working poor. If it did nothing else, Mr. Speaker, it provided the illusion of inclusion, while our people are hurting.

We have seen, Mr. Speaker, over the past eight years of PLP stewardship, one financial failure after another, with each debacle succeeded by an equally costly and ill managed clone. Worse yet, they have failed to deliver on a timely basis and within budget, projects that were touted as essential. We have also seen in this Budget, a further infusion into the capital cost of the second senior secondary school at Berkeley Road, which has risen dramatically from $71.2M in 2000/01 and a projected completion date of September 2003, to a new high of $125M, and still counting, with occupancy projected for September 2006. We have heard troubling reports that even with $125M of expenditure, certain aspects of the building may be suspect, structural deficiencies need to be remedied, and it may prove difficult to get the required certificate of occupancy.

We see a reduction in the commencement of capital projects, some of which were deemed essential when they were rolled out, but which the Government has now determined would overheat the economy and put strain on the construction sector should they be initiated. It is certainly better late than never to acknowledge the overheated construction market, however, it also appears that given the history of the Second Senior Secondary School, the Government is gun-shy of its own ability to deliver, and that Budgets to them have become the annual exercise to test the traditional limits of variance analyses.

As an example, Mr. Speaker, the current account revenue projection for 2005/06 was $750M, 2006/07 proposes $836M, an increase of 11.3%. However the Minister chose to compare the new revenues against the revised 2005/06 estimates of $798M showing an increase of 4.5%, so as to mask the full impact of their failure to correctly project the 2005/06 estimates which were totally out of whack. With all the additional income from 2005/06 there seems to be no thought for the source from which those funds emanated.

We would have expected to see relief for the International Business Sector, which once again has been the cash cow for Government operations. Little thought appears to have been given to the rising operational costs for international business, or the longer term impact of competitive jurisdictions offering more favourable terms for operating. In particular, we would have hoped that the grant to the Bermuda International Business Association (BIBA) would have been increased in order that their valuable contribution to this sector of our economy could be further enhanced.

On the other side of the equation, Mr. Speaker, the Minister?s expenditure for 2006/07 hit an all time high of $806M, and there have been no measurable austerity approaches that you would expect of a Government that claims to be frugal and prudent. The Civil Service is growing exponentially, and costs are escalating commensurately. This wanton spending on empire building has proven to be anything but frugal or prudent.

We hear about the new Age of Empowerment that seems to have overtaken the Social Agenda as the new buzz word. This is because, Mr. Speaker, the Social Agenda has failed to meet the needs of the electorate, and of necessity, there must be another fancy sounding clich? to give a ray of hope for this failing administration. The additional wasted $53.8M allocated to the Second Senior Secondary School project would have gone a very long way into satisfying some very real and pressing needs in the community.

We have heard further promises that the Seniors Residence in St. George?s will be completed in the fall of 2006. This is another project that required further funding as the Total Authorized Figure increased from $20.7M in 2005/06 to $25M, and no telling when it will be completed. Excuse us, Mr. Speaker, but the PLP record gives us cause to express cynicism with respect to the possibility of the 330 homes initiative being completed any time soon, or anywhere near budget. The plan is vague, the specifics are non-existent.

The derelict homes project, repeated promises from former years, has again been thrust into the limelight. What progress has there been? Are we telling an already frustrated electorate that their expectations of getting a house when they voted in the PLP Government in 1998 will still take another 30 months to build, and that delivery for them will have been 10 years into the future? Much too little, way too late!

The failure to act quickly has created for us, Mr. Speaker, a scenario where our country, although only 21 square miles, shows disparate results for the residents and observers alike. We have a country in which the gap has widened between the haves and the have-nots. When we look at just the travel budget projection which has increased a whopping 400% from $2.4M in 1998/99 to almost $12M this year, the pangs of longing will begin to rise in the bellies of the electorate who believed that their dreams and aspirations were within reach, and that reality would show a sound, active and prudent management of our economy. Rather, Mr. Speaker, the working poor are just that! Their meager earnings have paid the tax bill, but in return they have received too little, too late! Our people are hurting.

Having more money, and less debt because of legislated Sinking Fund contributions is little, in and of itself, in which to take pride, when it is the result of dwelling in the arena of do-nothingness. Our electorate may have approached that reality with calm acceptance. However, Mr. Speaker, beneath the placid surface, and beneath the calm exterior lie a people crushed by dashed expectations. The Minister speaks to a quiet desperation with our young people, but in fact, in the countryside that I frequent, the cacophonous sounds are loud and clear for all to hear, and the only quietly desperate are those who have become hoarse from shouting and not being heard. They are asking ?how long must they wait for a few crumbs to satisfy this illusion of inclusion??

The reports that the economy is alive and well have belied the facts provided by the Economic Review 2005, which, year after year, show the shrinkage in available opportunities for Bermudians. In 2000, 28,717 Bermudians were employed, a figure that shrunk progressively until 2005, when the employed Bermudian figure was at an all time low at 27,219, a decrease of 1,498 jobs.

Let?s look at the picture, Mr. Speaker:

While the Minister argues that an increase from 24% to 30% over a 6-year period of non-Bermudian job holders is not a failure of the PLP policies, it does not require rocket science to see that many of the jobs lost over that time were in the hospitality and retail industries. With their inability to close a deal for a new hotel, and the shrinkage of existing beds caused by closures and changes of use, they did not create any jobs for Bermudians either!! Is every Bermudian who was displaced a retiree over the age of 65? Did Triminghams only employ seniors ready for retirement? I think not, Mr. Speaker.

However, if the Minister can provide statistics that show by demographics that every lost job falls into that category, I would be prepared to apologize and stand corrected. The truth is the failure of tourism has significantly impacted our economy and jobs for Bermudians - no tourists, no spending, no retail shops, no jobs!! Little bread, no cake! Our people are accustomed to being able to have a second or third job to help themselves to get ahead. Those opportunities have been denied them. Our people are hurting.

The picture for Non-Bermudian held jobs speaks a thousand words:

There are more non-Bermudians in the workforce than ever before.

During this time, Mr. Speaker, Government reports highlighted how successful our economy was. Revenues streamed in ? primarily at the expense of the one-sided economic pillar ? international business. The failure to stem the precipitous drop in tourist arrivals robbed many of an opportunity for gainful employment, and may well have led to the frustrations that are manifesting themselves in anti-social behaviour.

Repeatedly underestimating revenues, thereby providing unprecedented surplus in the current account when more funds were received than budgeted, were deemed great achievements. The reality, though, Mr. Speaker, is that Government is NOT a corporation, it is NOT a for-profit entity, and the fact remains that such additional revenue over the last 4 years, has been the result of the taxpayer being bilked out of nearly $200M more than that which would have been deemed appropriate for the provision of services.

It is incumbent upon Government to raise taxes to the extent that programmes demand, to cover debt servicing, and to increase borrowings for capital projects in a measured and prudent manner, but most importantly to ensure that we get value for money.

A United Bermuda Party Government will employ more realistic budgeting parameters for its visionary plans, and where appropriate will offer tax reductions so that the taxpayers have the privilege of spending their own money rather than the government taking it from them and putting it in government coffers. Mr. Speaker, we trust the public to be able to know how and where they choose to spend their hard-earned funds.

Housing:

It is noted that $25M has finally been allocated to help ease the housing crisis. From 1998, it was apparent that affordable housing was a major cause of concern; however, it has taken eight years until this 8th PLP Budget to see a measurable infusion of money for this extremely critical area. As we pointed out in our last Budget response, the PLP Government expected the Bermuda Housing Corporation to handle the housing crisis. Their myopia caused them to believe that the problem of housing was primarily restricted to low-income families and homeless men.

Five housing Ministers later, we see at last a hint of concern appearing on the horizon. Yes, there may be a $25M allocation, but Mr. Speaker, examine this in the context of the additional wasted funds allocated to the Second Senior Secondary School. How many houses could have been built with that extra $53.8M?

Mr. Speaker, do you remember The Bermuda Homes for People project that went bust? The Government proceeded with the lottery amid great fanfare, and unconscionably failed to advise the successful bidders that the project was in jeopardy. It was the eagle eye of the Opposition who uncovered the fiasco, and brought it to light. We are told that this project has been given a new life as Government and BLDC have agreed to work collaboratively for completion, but we have no idea, Mr. Speaker, whether the revised project will bear any resemblance to the original plan. Heaven help us if we should even venture to speculate about the completion date.

As we speak, the average cost of a home is $1.1M+ - who can afford that? The average cost of a rental is $2,500 ? who can afford that?

How would a United Bermuda Party Government handle this crisis?

In our Budget reply of 2004/05, we offered a concrete plan that should have been adopted since the PLP Government was devoid of vision on this issue. They did admit to having a holistic plan that was in the then Minister?s head, but nothing on paper.

We pledged as a start to build 100 homes in the first 12 months, on property situated at Tudor Hill in Southampton to help ease the emergency situation. We recognized that Government already owns the land, which is the predominant contributor to costs of housing. People need houses.

We would also go one step further ? provide tax incentives for each homeowner who builds an extra apartment that falls within the qualifying criteria for affordable housing ? no land tax for the next 12 months on the completed, occupied new addition, and tax relief on materials for construction of homes that fall into affordable housing parameters.

We stand by those proposals, notwithstanding that the intervening two years that the Government wasted by inaction, coupled with the effects of inflation will impact on the pricing, the principles are still sound.

In addition, a United Bermuda Party Government will provide 50% relief from Stamp Duty on qualifying purchases by first time buyers.

The rooming houses slated for construction in the City would have become a reality, and not have waited until the good graces of the owner of the Canadian Hotel had been exhausted before taking a scattershot approach to house single males, many of whom work in the city, at a soon-to-be-renovated upper floor of a building in Southside.

The derelict houses programme would have yielded measurable results, and not seen houses already refurbished by BLDC lying vacant while people sleep in cars, or worse yet, under the stars.

The emergency housing units, imported six months ago, are still not utilized. What is the problem? This proves, Mr. Speaker that all motion is not progress. People had to see that something was happening for them to restore hope ? the Government showed that something was happening, although quite what was never determined. Again, the illusion of inclusion from this ?Spend and Spin? Government ? Spend the money, spin the story!

The sad reality for the Government is their belief in their statement that prior to coming into office there was no coordinated effort to mobilize resources to address the island-wide housing issues. I would imagine then, Mr. Speaker, that projects such as housing developments at Boaz Island in Sandys, through Far Rockaway, Middle Town, Frog Lane, Cedar Park, Devon Springs, Mary Victoria and Alexandra Roads, Midland Heights, Ducks Puddle, Battery Park, to Top Square in St. George?s were like ?Topsy? who said ?I spect I growed?.

No, Mr. Speaker, quite the contrary! Those housing developments were born out of a very measured and coordinated response to the housing crisis that was recognized as cyclical, and responded to accordingly. The slowing down of new major development after 1995 was an acknowledgement that the Bases had withdrawn from Bermuda, resulting in a glut of houses on the mainland where base personnel previously rented local homeowners? accommodations. To build major additional housing during a period when many houses were vacant would have created further hardships on homeowners who would have been unable to rent their accommodations and service their mortgages, and would have been irresponsible.

While some may be too myopic or closed-minded to accept the reality, the United Bermuda Party Government showed ever so well how major housing projects were not only needed, but were provided. When the demand began to rise again in 1997 and 1998, the plan was again put in place to construct additional houses. Enter the PLP! Finally, eight years later, when they should have hit the ground running in 1998, they implement HIT ? a team to look at, consider and discuss the housing crisis.

The only thing hit, Mr. Speaker, is the pocket book of the taxpayers as well as the pride of the family breadwinner who is unable to provide a roof over the head of his family and who consequently, watches as his wife and younger children go to emergency housing, his 10-year old male child goes to foster care and he goes to wherever he can lay his head. That?s what is hit.

What about the self-esteem of the single mom who has to see her children go to foster care because of her inability to find a home for them, and the car in which she sleeps is even being taxed a higher license fee! That?s where the sledgehammer hit really is. And now, Mr. Speaker, because they have to wait for the HIT, it will be another two and a half years before relief is in sight. Our people are hurting!

Bermuda Housing Corporation

Mr. Speaker, you and I both know that the BHC has been fraught with controversy over the past few years. Write-off of amounts due to BHC because of overcharging and mismanaged projects in the renovation program cost the tax-payer $8.4M in the 2002 financial year, a direct hit. Money was spent out, meant to be recovered, was deemed irrecoverable, and therefore was written off. It was therefore with interest when the Minister in this statement indicated that $49M owed by BHC to the Consolidated Fund would be converted into an investment. I wondered Mr. Speaker, what this meant in dollar terms.

An investment yields returns. What are the terms of this investment? What are the projected yields? How would a reclassification help strengthen the borrowing powers of the BHC?

Upon further investigation, the intent was made clear. The amount of money due from BHC to the consolidated fund would not be recovered ? it?s written off ? gone! Have controls been implemented for the future so that write-offs of this magnitude are not the order of the day? The PLP Cabinet need to understand that this is not their money, it is the people?s money!

From the BHC perspective, their financial position will be strengthened on paper, and there will be no further responsibility or accountability for the $49M that they have received. Yes, there are assets that have been acquired with this money, but the management of the BHC fell short in being able to generate funds to repay this money to the Consolidated Fund. That amount is now written off. $49M that the Consolidated Fund will not get ? an investment, indeed! ? More accurately, a sleight of semantics that would make Merlin?s magic powers seem oh so inadequate!!

Seniors:

Seniors in our community have under the PLP suffered more and more hardship as their insurance costs escalated and the cost of their medicine spiraled out of control, with little relief in sight. The PLP responded in June 2003 with a programme for the provision of prescription drugs to a tune of $1,000 p.a. It had not escaped us that June 2003 was in fact one month before the July 2003 general election, so the intent to ease the plight of seniors may have been less the focus for this programme than the ulterior

motive of the publicity that surrounded this initiative on the eve of an election. That publicity may just have gotten 8 extra votes in two constituencies.

It is interesting to note that prescriptions can only be obtained at the behest of a physician. Since HIP only covers 2 doctors? visits a year, many seniors cannot go to the doctor because they do not have the money to pay the fee. Close scrutiny may show that providing this allowance will not be a very expensive proposition for the Government ? again, the illusion of inclusion, and much too little, too late.

Thanks to the indefatigable efforts of our Seniors? advocate in clamouring for further assistance in a real way, the Government has provided an additional $12.50 per month in prescription allowances which will assist some, but will still be woefully inadequate for others with more chronic challenges. It may have sounded magnanimous to say that there would be a 15% increase, but when the base is meager, the actual dollars are miniscule.

Pensions have been increased by 4%, but when offset against an inflation rate of 3%, the net effect for pensioners is a paltry 1% increase.

Clearly, Mr. Speaker, there is a fundamental misunderstanding by the PLP of what our seniors really need. Throwing a few dollars, masked in fanciful percentage terms does not take into account that a significant number of our seniors have annual incomes of less than $12,000 ? Poor by any standard.

A United Bermuda Party Government would quickly identify the actual number of seniors who fall into the category of ?poor?; conduct a needs analysis for seniors? medication, along with an ability to pay examination so that NO senior is faced with the choice of medicine, doctors? visits or bread. We would ensure that the Seniors Wellness Clinics are properly staffed by a qualified gerontologist so that the number of doctor?s visits may be enhanced.

We would examine the entire contributory and non-contributory pension scheme for seniors with a view to ensuring that they can live in dignity without having to grovel on bended knee for Financial Assistance.

Insurance Costs and the Rising Costs of Health Care

Mr. Speaker, we continue to be concerned about the exorbitant costs being borne by our seniors for insurance and health care. After eight years, many promises and the formation of the Health Council, the Government still has not articulated a plan to deal with this significant hardship to one of our most treasured possessions, our seniors. If a country is judged by its treatment of its youth and its seniors, I am afraid we have fallen so far short.

Hospitals

A new hospital is at least 8 years away from completion. In fact, not one word has been mentioned in this Budget concerning the forward planning for a replacement hospital, even though the existing structure is perilously close to obsolescence. Until new facilities are in place the hospitals must give the country the most professional care possible.

It has been reported that MRSA infection was evident, which raises sanitation issues. Some wards have been up-graded and are in excellent condition. Unfortunately, wards that cater to surgical and general patients need to have staff working conditions enhanced in order for them to give optimum service. Some of the professionals working in this area are housed in an old, dilapidated nurses? quarters in conditions under which few of us would want to live. It is no small wonder that the turnover of nurses is high, morale is low, and the quality of output may be compromised.

The United Bermuda Party recognizes that a new physical plant will be needed, and we will work with the private sector to determine the most cost-effective method of replacement.

Care giving

Caregivers are prohibitively expensive. Many families do not have the resources to afford a home or hire a caregiver. This places a tremendous strain on families of seniors charged with burdensome care.

We must be also on guard for the potential of elder abuse, and of unscrupulous caregivers who may take advantage of seniors.

A United Bermuda Party Government will implement a register for caregivers, require that they be licensed, and that background checks are part of the licensing process. We will also examine the financial assistance levels to help families reduce burdensome costs.

Grants

Mr. Speaker, repeat a story enough and it becomes entrenched. The Salvation Army fiasco is a classic example. The Minister of Family Services spoke of her disapproval of this organization?s request for additional grant funds, after they had experienced cuts. She, Mr. Speaker, was fed up, and pointed out ?They always open up after the Budget cuts, so why give them any more money?. We continually heard from some members of the Government that the Salvation Army sent a major portion of our grant money to its Corporate Headquarters in Canada. It was subsequently revealed that we were misled, and that funds granted to this organization were used here on the island.

Because of our homeless population, it is important that helping agencies are funded, as they are the only lifeline for many of our emergency situations.

The United Bermuda Party sees no need to decry the efforts of the Salvation Army, we would not deem them to be a nuisance factor, and certainly would willingly continue to foster the longstanding partnership. In addition, in light of their continued commitment to Bermuda, and their knowledge of running such a programme, we would welcome their application to renew their management agreement for the emergency housing facility.

Clinics and Residential care

Wellness clinics are falling short in meeting the needs of seniors, and consideration must be given to the employment of a geriatrician. Many sick, needy seniors require help with chronic problems like Alzheimer?s Disease, heart disease and diabetes. Many of our seniors require dental care that is beyond their means to attain. Geriatric dentistry is non-existent at the clinic, and must be addressed.

In addition, a United Bermuda Party Government will implement nursing home standards to ensure that patients island-wide are treated with dignity and professionalism.

Financial Assistance

Seven out of ten seniors own their own home. Many are land rich but cash poor. If they own a car, $5000 in cash or assets, they are not eligible for financial assistance, notwithstanding that they have little cash flow.

A United Bermuda Party Government will implement an awareness programme, soliciting the financial institutions and working with the

Bermuda Housing Corporation to expand the use of reverse mortgages for those seniors who have home ownership, but limited cash.

Many seniors are unable to understand how to receive assistance and are often turned off by the bureaucracy of applying and meeting the standards of getting assistance. The intent of the National Office for Seniors was to ensure that a helping hand is granted when needed. The National Office for Seniors is an under-utilized white elephant.

A United Bermuda Party Government will ensure that the National Office for Seniors is mandated and equipped to provide meaningful assistance to seniors.

Drug Control:

We have heard, Mr. Speaker, of the plan to ensure that funding is set aside for Drug Treatment programmes for inmates. In order for any institutionalized drug treatment programme to be effective, it cannot be voluntary. Education, counseling and therapeutic regimes must be made mandatory in the prisons.

The Helping Agencies, such as Focus, Camp Spirit and other support programmes for drug addicted persons must be well funded. There are many success stories coming out of these programmes. The Ministry of National Drug Control has been given a budget of $4M, the significant portion of which will be a grant to the National Drug Commission. However, in 2005,

the National Drug Commission Repeal Act was passed, thereby nullifying this organization. It was apparently absorbed into the Health Ministry, and has now been transferred to the Ministry of National Drug Control. Someone needs to tell us why Government is so confused. They show that they do not have a plan, so they make it up as they go along.

Education

Economic opportunity is key to achieving racial parity in Bermuda, and education is the key to economic opportunity. We have become increasingly concerned about the deterioration of public education in our island. Education should be the source of opportunity, not a mark of privilege. The overall budget allocation for students through Senior level is $114,730M, with an enrolment of 6,221 students at September 2005.

We note a decline in enrolment compared to September 2004, resulting in even higher annual costs for educating each child. This is too great an investment to not yield results, but graduation rates in the public school system are still less than 55% - that is to say that approximately 45% of all students eligible to graduate from the public school system, fail to do so. Terra Nova exam results show that Bermuda?s middle and senior school students have scored consistently below the US average on language, reading and math over the last five years.

We all know that a dysfunctional public education system has a powerfully negative impact on our social cohesiveness, as well as our competitiveness as a country and our ability to supply educated Bermudians to power our economy. It widens the gap between the haves and the have-nots.

In practical terms this means that 45% of our children who aren?t graduating from our public secondary schools are doomed to a lifetime of substantially lower earning capacity ? unless they have the benefit of other training programs.

The United Bermuda Party plan for education reform focuses on three basic principles: 1) Increased emphasis on the individual student and the role of the parents; 2) Setting higher standards: benchmarking student achievement against international student performance standards and demanding greater accountability for better results; and 3) Increased responsibility and flexibility for each school.

Here are some of our specific proposals:

? There will be a licensed teacher in every classroom and teacher effectiveness testing will be administered regularly to measure performance and student achievement;

? We will ensure a rate of compensation for teachers that is fair, and commensurate with their results;

? Teachers and parents will have the resources and tools to know if their children need extra support and development of a special talent;

? Achievement levels of all students will be tested regularly against international student assessment standards;

? Performance of individual schools will be measured and reported on a regular basis to the people of Bermuda;

? Our students will learn in an environment that is rich in information technologies which will support their individual learning styles and needs.

For their own sake and for Bermuda?s future, our children must be able to compete on the world stage.

A United Bermuda Party Government will deliver a public education system that graduates students with the right academic, technical and life skills to enable our children to fulfill their potential in a competitive global environment.

Tourism

Mr. Speaker, we have seen and heard a lot of activity by the Tourism Ministry. Some of the efforts have resulted in further airline price competition to Bermuda, which is a basic requirement for the improvement of visitor numbers to the island. We applaud them. We have also seen, though, that from 1998, total arrivals have been reduced by 10%, during which time, air arrivals suffered a 27% decrease. We need a lot of Jet Blue?s to bridge the gap of this slippage.

In addition, we have seen cruise arrivals increase by 31% over that same period. We need to remind the Government that cruise ship passengers do

not infuse as much into our economy as air arrivals. They do not stay in hotels, they spend less in restaurants, and statistically are not as valuable to injection of cash into the economy.

The Government has tried to bolster our tourism arrivals by increased use of cruise ships, however, that does not assist in the creation of jobs for our Bermudian population.

We have seen, by the Government?s own statistics that visitor expenditure in 1998 was $482M, and by 2004, the last complete year available, the amount was $354M, a shrinkage of $128M. We are going in the wrong direction, and this should be cause for alarm. The ratio of cruise to air in 1998 was 34:66, and by 2005, 47:53. The forecast for 2006 is that for the first time ever, cruise visitors will outnumber air arrivals.

We must question whether the Tourism Ministry?s budget is delivering value for money. Two of the issues are that we are losing our awareness in the global marketplace and our brand image is off the radar screen to our potential customers. Clearly, the advertising campaign is not yielding the expected results.

The lack of hotel development is a painful reality. While our neighbours to the south can boast of millions of dollars in investment capital and name brands, the PLP cannot seem to close a hotel deal. Each opportunity has been fraught with controversy, challenge and lost opportunities. Club Med is the latest disaster for delay. We could have had a world class name brand

in Four Seasons, but now there only exists uncertainty with respect to that property. Sadly, the people of Bermuda have not been told why the project failed. They haven?t even been told part of the facts!

If we continue to send the wrong message to investors, they will continue to do what they are doing ? invest in our competitors, to our detriment.

A United Bermuda Party Government will:

? Take the politics out of tourism by the creation of a Tourism Authority, comprised of professionals in the business who know what they are doing in the managing of short and long-term strategies in product development, marketing, air service, tourism appreciation and new opportunities;

? Restore tourism as a major contributor to our economy. Create and assist in the development and funding of a tourism venture capital fund which would empower and finance Bermudians in new product development and services, and where necessary, subsidize new and existing air carriers in order to ensure consistent and reasonable airfares to Bermuda;

? Increase the speed of decision making;

? Put tourism back in the hearts and minds of Bermudians and residents with the production of a well-funded tourism appreciation campaign throughout the community, beginning in the schools;

? Commit to ensuring that notwithstanding the ongoing studies of the future of Bermuda?s cruise industry we WOULD NOT widen

the Town Cut channel in St. Georges or Two Rock Passage in Hamilton to ensure that there is no negative impact on the environment.

In short, we would move from red tape to red carpet in addressing the challenges and finding the solutions in this very important segment of our economy.

Transport

Mr. Speaker, we noted with interest that the Government has tried to sweeten the pill that they forced down the throats of the taxi drivers with their legislated policy on mandatory GPS. They have now seen fit to offer a tax break to the taxi industry on importation of GPS equipment. However, the date for installation of GPS has passed. As a result of the inexplicit semantics of the Budget brief, we need to question whether this benefit will be retroactive so that there would be a rebate to those owners who have already put out the expenditure to comply with the legislation.

Employment & Economic Opportunity

North Hamilton empowerment zone ?

Mr. Speaker, the United Bermuda Party platform for both 1998 and 2003 spoke to the provision of a North Hamilton empowerment zone, such that the Government is now able to consider this very necessary development.

In February 2003, the United Bermuda Party in its Budget response advanced the idea of a revitalized North Hamilton, offering up music, multicultural dining and street performers.

The French Quarter - Le Monsieur Haut-parleur, c'est bon que je parle quelque fran?ais. As there is little French in our heritage, we trust that this idea will be beneficial and create the excitement that the Minister seems to anticipate. This is a combined tourism initiative, and we would venture to guess, a substitute for the failing African Diaspora Heritage Trail plan on which they spent so much time, hype and money.

As opposed to one scattershot initiative after another, a United Bermuda Party Government?s cohesive plan would seek:

? To create an Office of Economic Empowerment within the Ministry of Finance;

? To establish a Community Trust Board to act as the collaborative body within the Zone;

? Some measure of Payroll and land tax relief for all businesses operating within the Economic Empowerment zone;

? Reduction of government fees related to obtaining planning permission for expansion or renovation of existing businesses;

? To commit to a plan to allocate 20% of Government?s spending on goods and services among small businesses;

? To establish a Small Business Procurement Programme;

? To facilitate the training of small businesses on how to bid for Government contracts;

? To assist in facilitating financing by local banking institutions for small businesses that have acquired Government contracts.

Today almost one-third of our population has been identified as poor or near poor. Addressing the issue of poverty is a critical component of our Economic Empowerment program. We cannot talk about empowering our people without addressing the fact that many of our children go to school without having eaten breakfast or without a decent lunch. This is a growing problem and a child who is hungry cannot be expected to compete at the highest level.

A United Bermuda Party Government will work with helping agencies to formalize a meals programme starting at Primary school level to ensure that our children are not forced to try and study while hungry.

Mr. Speaker, when there is room for praise, we are not above working in a spirit of cooperation with the Government in acknowledging those areas. The additional funding of the National Training Board program, which will give opportunity to many Bermudians to retrain and to qualify in technical fields, to enhance their skills, and to effectively contribute to the betterment of Bermuda is one programme that we applaud and support. A United Bermuda Party Government will ensure that these opportunities are also supplemented by ensuring that the support network (such as affordable, reliable child care) that is required for families of those designated for these scholarships and further training is made available.

Sustainable Development

Mr. Speaker, from 1996 to 1998, the United Bermuda Party Government budgeted $4.5M, $1M and $1M respectively for purchase of open spaces. The $600K budgeted this year pales in comparison, given the escalation in property values in that period of time. We question the Government?s level of commitment to preserving open spaces.

The continued growth of international business amid stiff competition from other markets speaks to the wisdom of the established regulatory framework that the PLP Government inherited. It is incumbent however, that recognition is given to the strain on the infrastructure of continued new corporate startups.

As Bermudian jobs have shrunk, so has the ability for many to find affordable homes to rent or to buy. Frustrations abound when the cosmopolitan look of Hamilton is observed by those who are outside of the economic safety net. The alienation and dissatisfaction can manifest itself in anti-social behaviour. We must find the correct balance.

Sustainable Development is an integral part of the United Bermuda Party philosophy and we will continue to implement policies that will serve to significantly preserve our environment for future generations.

London Office

Is the PLP intent on cashing in on the alimony before the divorce?

After thrusting the topic of Independence into the faces of our Bermudian public in spite of far more pressing social issues, and after totally ignoring a significant percentage of our electorate who signed a petition requesting a Referendum on the subject, this PLP Government, determined to gain Independence from Britain, has chosen to open a London Office.

Is this the precursor to an Embassy? Is it not odd to want to strengthen relations with the U.K. Parliament if the intent is to secede from the Overseas Dependent Territory family? Mr. Speaker, we do not wish to see a London Office opening while Hamilton shops are closing.

Concentrate on the home front, and offer customs duty relief to the retail industry, as a start! At the very least, be sensitive to the cash flow for the retail sector when they have to pay duty on imports before selling their goods. Work with the retail sector and help them to keep their doors open. When that is done, maybe an office in London may be more palatable.

Conclusion

Mr. Speaker, The PLP inherited a well-oiled machine of economic success. Many of the policies that were the hallmark of United Bermuda Party successes have been continued, but many of the efficiencies have not.

Although we recognize that there are financial constraints, many of long-term cries for consideration have gone unanswered. Some programmes that have been given priority arrived on the table ?last night?. It is no small wonder that frustrations abound.

The maintaining of a 10% of GDP debt ceiling is prudent. The consistent underestimating of revenues that create a windfall when the numbers are finalized is not prudent management, and needs to be addressed.

Government must raise taxes to the extent that they need to fund projects, both current and capital. To exact more than is needed on a consistent basis

is unfair, imprudent and irresponsible. There ought to be serious belt-tightening, and the recognition that we need not be biting off the hands that feed us.

There is no cynicism in that criticism, no sarcasm, and certainly no jealousy. There is just a compassion for the lamentable plight in which many people find themselves. They thought they had a caring concerned Government, sensitive to their condition. They expected progress and inclusion. They expected delivery on promises made, and certainly, not only expected, but also deserved relief from poverty. Instead, Mr. Speaker, they got too little, too late, thus they have been burdened instead with nothing more than the illusion of inclusion.

Thank you, Mr. Speaker.