A scathing report on Bermuda in an international business magazine has highlighted the PLP Government's first quarter teething problems.

It says "signs of strain'' within PLP ranks have begun to show over various policies particularly those affecting unions which the UK-based Economist Intelligence Unit (EIU) describes as the party's "constituency''.

The Premier's surprise declaration of the January 4 victory holiday is also panned for causing "broad resentment'' in the business community.

The magazine is widely distributed to companies and governments -- mainly based in Europe, the Middle East, Africa, North America, South America, Asia and Australia -- interested in different world markets.

EIU is a subsidiary of monthly glossy magazine The Economist and publishes its quarterly Country Reports on the current political and economic state of over 180 countries.

It aims to monitor recent events and give a political and economic outlook for up to two years. The just-released report says Bermuda Industrial Union president and PLP MP Derrick Burgess has caused ripples by fighting the previous government's move to open up the telecommunications' industry to competition.

The business community's feeling towards the new Government was described as "apprehensive''.

"The international business community is concerned that the implementation of the PLP's social agenda will make Bermuda a more expensive business location,'' one section of the report reads. And the PLP's goal to introduce an unemployment insurance programme funded by contributions from businesses has sparked concerns.

The party's "nationalist posture'' has also led to fears of greater restrictions on the granting of much-needed work permits to foreigners, it says.

It mentions the incident earlier this year when a Government-appointed Immigration Board member issued a veiled threat to expel a top foreign journalist from Bermuda because his reports were allegedly critical of the PLP.

Report: Business community fearful about PLP intentions "While the PLP has taken steps to build support from the international and local business sectors, some early government measures have confirmed fears about the future of the business environment under the new administration.

"There are enough conservatives within the PLP with experience in the international sector who realise that the party's success depends on maintaining business confidence.

"These members seem to be trying to tone down some of the more contentious statements made by their colleagues.'' PLP MP Reginald Burrows caused "controversy'' when he said in the House of Assembly he expected international companies to give jobs to new Government MPs merely because they had been elected.

While most of the speculative figures given in the report remain steady on the previous quarter or year, it is the commentary which highlights friction sparked by the change of government after 30 years of UBP rule.

The furore over the acquittal of Justis Smith in the Middleton murder case was also mentioned as a possible cause for a dip in Canadian tourists to the Island.

BUSINESS BUC