The PLP has argued that should the Foreign Exchange Controls be lifted and monies be freely exported for overseas investment, the monies currently available for mortgages would be severely reduced and property values would slump. Some might argue that this is good as housing costs are too high.

However, the release of the land associated with the Bases, which approximate ten percent of Bermuda's land mass, will by itself result in a gradual, (hopefully controlled) reduction in house and property values. This not only should allow new home owners to have an opportunity to purchase at a price, lower than today's prices, but it also would avoid a sudden decline in values, which would destroy our property markets. Furthermore, the lifting of foreign exchange controls would impact unfavourably on those who own property -- many of whom are in the middle and lower income groups.

It has been said that lifting of foreign exchange controls allows for the inflow of foreign capital and we could have foreign banks. The question one must ask is, do we need additional banks, given the fact that we have two world class banks in Bermuda or do we need to ensure that the existing banks are properly servicing all aspects of the Bermuda populace? We should ensure that the two major banks in Bermuda service Bermudians in the appropriate manner rather than bringing in overseas banks.

It has been argued that the foreign banks could come in to service the international company business. If the two major banks, in fact, lose money on their domestic banking, bringing in other banks would only serve to make the more profitable end of their business less profitable and would eventually lead to these banks shrinking in size, laying off staff and, quite possibly, reducing the quality and level of service in the domestic banking area.

FISCAL POLICY Mr. Speaker, the Government taxation and spending policies continue to place the burden on those least able to pay, i.e. the majority of wage earners, and impacts adversely on the ability of our tourist industry, the pillar of our economy, to compete effectively. We do not believe that the increased taxes to be levied will command broad public acceptance as to their fundamental fairness. A more equitable system of generating Government revenues is needed through a thorough review of the entire tax system.

Mr. Speaker, we note that the Finance Minister promised in his last Budget a complete review of the existing tax structure which was to be in addition to changes in the customs tariffs. We call on him once again, to get this review underway.

FINANCIAL SERVICES INDUSTRY In view of recent events, now is the time for the Government to give tangible assurances to both the local and international financial community that there are already adequate controls and necessary legislation in place to satisfy their requirements and to meet the criteria of proper review and scrutiny so as to safeguard Bermuda's reputation. If adequate and proper controls had been in place, this could have mitigated the damage to Bermuda's business reputation caused by the alleged improprieties in Televest and Bermuda Fire & Marine.

Mr. Speaker, the financial services industry, in our view, would welcome any assistance it can get from Government in this regard. While we do not want to over-regulate and impose onerous regulations by introducing laws that are unduly restrictive, there has to be a balance struck so that the industry is not too self-regulatory.

The recently-formed Investment Services Advisory Committee has drafted a Code of Business Practice and Standards of Professional Conduct for local investment advisers, who deal with the general public in Bermuda.

There has also been the formation of the Bermuda Association of Securities Dealers, who are local investment advisers. They are also discussing proposals regarding self-regulation. One would have thought that the UBP Government would have been in the vanguard of this movement. They should have taken the lead and spearheaded these initiatives and efforts to establish a comprehensive scheme of regulations with input from the banks and other leaders in the financial services industry.

CUSTOMS TARIFFS Mr. Speaker, it is welcomed that the number of items listed in the tariff rates for customs duties is to be reduced by 60 percent from 522 to 215 categories. This streamlining of the rating should offer considerable scope to retailers, wholesalers and manufacturers and enable them to pass on their savings to the consumers.

Mr. Speaker, we believe that it is incumbent upon the Minister in consultation with the Chamber of Commerce and the Consumer Affairs Bureau to monitor that the savings derived from reduced duties are in fact passed on to the Bermudian consumer.

PENSION We are seeing a pension reform in Bermuda, and the hoped-for effect is that individuals will have a greater choice in how their pension money is invested.

Mr. Speaker, the PLP wants to see the people of Bermuda have a user-friendly financial environment so that people have a better financial climate which is conducive to planning and safeguarding their financial future.

The PLP supports the idea of a national pension scheme. However, we believe that the impact on small business must be carefully monitored so that we do not add a new burden at the wrong time.

PARLIAMENTARY SALARIES We note the Government plans to recommend a Joint Select Committee to review future Parliamentary salaries. We propose that any such committee should be advised to take account of the appropriate Bermuda Public Service Association directives and r the cost of living index.

EXPENDITURES Mr. Speaker, the Current Account Expenditure estimates for the year 1993 4 states that the over-expenditure was the result of additional expenditures of approximately $3 million for social assistance and $500,000 for temporary work schemes within the Ministry of Works and Engineering. This band-aid approach is typical of the UBP Government philosophy. As far back as 1991 we advocated that there should be a scheme of unemployment insurance and we tabled a motion to that effect and an amended version was passed. Yet in 1994, not too much has been done towards achieving this end. Our philosophy is not to chain people into a state of dependency, which is not too far removed from a welfare state syndrome. We believe that had there been a scheme of unemployment insurance where employees contributed to the scheme so that they had a safety net to insulate themselves from harsher economic times, this would have been infinitely preferable to just throwing money at the problem.

As previously stated, the Government has shown no real initiative regarding what is to be done to safeguard Bermudians' interests. Bermudians are the first to be affected whenever there is a downturn in the economy. We are strongly convinced that monies should be allocated for the training and re-training of workers in order for them to become productive citizens once again.

Mr. Speaker, we think a more pro-active approach should have been taken by the Government to facilitate dislocated workers by funding training. Once these workers are gainfully employed, they will be able to contribute to a proposed unemployment insurance scheme. In this way, in due course, workers will be able to assist themselves rather than become addicted to social assistance handouts.

Mr. Speaker, we think the government is wrong in deviating from an employer-employee contributory insurance scheme, and instead is relying on this stop-gap method of providing inadequate social assistance without making provision for workers who find themselves in need of financial assistance treated as a welfare dependent rather than being provided with skills and training to enable them to become productive citizens.

Mr. Speaker, there is a broader role for public spending than providing goods and services of value to the whole economy. We believe a successful economy must invest considerable resources in developing the backbone of the economy -- such as education and training. There is a benefit to the individual receiving training. But the economy as a whole gains from having a more highly skilled and adaptable work force. Mr. Speaker, wherever the benefit is wider to the individuals or businesses involved, then the government must step in to ensure that sufficient resources are allocated to this end.

INTERNATIONAL COMPANIES Mr. Speaker, we in the PLP cannot and do not turn away from the future. Our whole aim is to set about finding creative ways to empower the people and to allow them to realise their full potential. They can only do that when the country has the financial resources to solidify its financial position. With all this talk of Independence, it makes little sense Mr. Speaker, not to lay the building blocks for the future. We the Progressive Labour Party do not believe we should exchange political dependency for economic dependency. We as an alternate government are in the business of setting certain goals and economic projects in place so that the country can realise its goals.