this year, Bermuda's economic recovery is extremely fragile and could easily turn back into recession.

While improved arrivals will help the hotel industry and keep workers employed, the American consumer remains extremely cautious about spending and for this reason, we believe the recovery will be slow and it will take time for it to filter through to the average Bermudian.

Nonetheless, inflation remains low and if there is some job creation over the summer, it will bode well for the Island .

What will also help is the restraint displayed by unionised workers and their employers in three sets of negotiations concluded over the last few weeks.

Talks between Government and its blue collar workers, Stevedoring Services and the port workers and the Bermuda Telephone Company and its white collar workers have traditionally been rancorous, resulted in some form of industrial action and have eventually had to be settled by a third party.

The fact these three groups have been able to agree with little or no need for mediation is a good sign. Further, these contracts give wage increases that are in line with inflation and are reasonable in terms of increases in benefits which will help the Island keep its costs competitive with rival destinations and business centres.

Better labour relations and an end to cost increases over inflation are both essential parts of the cure for Bermuda's economy. Another part is the need for greater innovation and enterprise in developing new industries and keeping our existing "twin pillars'' ahead of the competition.

In many areas this is being done. There are two areas where it is not.

The Bermuda Taxi Operators Union's opposition to credit cards in taxis is shortsighted.

While concerns about time, bad credit cards and the cost of equipment may seem justified, we believe that the owners are making a severe error.

Like the hotels which have been forced to come around to the use of credit cards, the drivers should accept that "plastic'' is the way of the future and as time goes on, more and more visitors will want to pay for more and more of their purchases in this way.

Drivers who refuse credit cards will lose business to those who accept them.

However, if enough drivers refuse to accept the machines, it is Bermuda that will lose out because visitors will not come to an Island where they cannot pay for services via credit cards.

The fishermen who oppose the use of an American trawler to fish the Island's outer waters are also being dangerously myopic. This experiment could prove to be a lifeline for the fishing community at a time when pot fishing is banned and the fish in the inner waters have to be preserved.

If the experiment works, then Bermudians can invest in this business and make a decent livelihood on the sea. If it does not work, then we have lost nothing.