The Progressive Labour Party will fund its extra spending programmes through more stringent tax collecting if it forms the next government, Shadow Finance Minister Eugene Cox has told The Royal Gazette .

Mr. Cox said in an interview that last year's Auditor's Report showed that Government had about $57 million accounts receivable outstanding at the end of March, 1997. Proper collection of such money and cutting down on Government waste of money will help fund the PLP's programmes, he said.

But Finance Minister Grant Gibbons countered yesterday that Mr. Cox had misread the report and most of the outstanding taxes had already been collected.

Mr. Cox said the Government Auditor's report for 1997 -- released in May, 1998 -- showed Government had $57 million in accounts receivable outstanding by March 31, 1997.

That showed the UBP had mismanaged Government finances.

"We haven't had good fiscal management,'' he said. "The report found deficiencies in the way the Government has managed the economy in terms of projects.'' He said a PLP Government will not have to levy new taxes for any of its programmes because as Minister of Finance he will cut out waste and collect the money owed to Government. Proper collection of the $57 million accounts receivable will fund the programmes, he said.

"We don't have to increase taxes to get that money. What we will do in order to get that money is eliminate the wastage that we presently see as stated by the Auditor. If we properly manage the revenue that should be coming in and we get it all or most of it I think we should get sufficient funds. Government has been wasting money. We are not getting a good deal for our money.'' Dr. Gibbons countered that the accounts receivable fluctuated during the year.

The $57 million was made up of payroll tax and land tax owed. Most of the payroll tax owed is collected within 40 days, he said. About 40 percent of the land tax had been collected by June 1997.

"What you are looking at is a snapshot of Government's finances,'' he said.

"...It's like any business at different times of the year. The receivables go up and down depending on when bills go out and when they are due.'' He said the actual provision for bad debt for the financial year ended March 31, 1997 was about $5.3 million, about one percent of revenue.

"I think it's not a bad figure,'' he said. "We feel there is room for improvement.'' Government was taking measures by putting in new computer software to better track accounts. Government has also started a crackdown by taking more businesses that were not paying their debts to court.

The Tax Commissioner also had a policy of negotiating schemes of arrangements with businesses for paying delinquent accounts.

Parties clash over tax policies "In order to collect all that money the PLP will have to impose an extremely draconian situation in terms of receivables,'' he said. "They will force a lot of small and medium sized companies out of business in order to collect the money. It's much better to keep them in business and have them pay it off over a period of time if they get behind.'' Dr. Gibbons went on to accuse the PLP of dodging questions over its financial plans if it wins the upcoming Election.

He warned: "Not being forthright on economic issues is one of the first steps towards destroying Bermuda's reputation on an international basis -- particularly at a time like this, when we have got such groups as the Organisation for Economic Cooperation and Development and the European Union looking at us.'' And he cautioned that overseas uncertainty on fiscal policy could hit the taxpayer in the pocket if interest rates rose amid fears for the Island's future economic direction.

Dr. Gibbons said that the Island rated AA1 and AA national credit ratings from independent watchdogs.

But he said a lowering of Bermuda's international standing would hit the public purse and the taxpayer because lenders would respond with higher interest rates to reflect a higher risk.

He added that anyone looking to invest in the Island for things like tourism and hotel projects would use the recognised rating systems to assess the risk.

Dr. Gibbons quoted the PLP's own manifesto, which promised Government business would be carried out in the "sunshine of public scrutiny'' and that "accountability and transparency'' would be the watchwords under a PLP administration.

But he said: "Their behaviour up to now has been anything but that -- particularly the inaccessibility of the PLP leader who is notoriously difficult to get hold off.'' Dr. Gibbons claimed: "If the leadership of the PLP is like this now in terms of being difficult to get hold of, I wonder what they would be like if they were actually in power.'' Dr. Gibbons also took a swing at PLP calls during the Budget debate, when then-Opposition MPs said "we're not going to tell you'' when challenged by UBP members on how the party would pay for programmes.

He said: "The reason I raise all this is because when you are Government, you can't duck or hide from these economic issues.''