PAULA COX:

Some capital projects face being held and Government will reduce its staffing levels, says Finance Minister Ms Cox as she tries to bring Bermuda's debt back down.

The Minister says Government will tighten its belt having carried out a review which has pinpointed areas where cost overruns can be cut and controls improved.

She believes debt — which has grown to record levels during her tenure as Finance Minister — can be reduced: "By looking at our capital projects and looking at those that are necessary and those that are must-do's, and those that can be deferred. That's already done."

The rebuilding of the Causeway is one item which has been put on hold, she says.

And manning levels will be "rationalised" through rejigging of ministries, although numbers will be brought down through natural retirements rather than redundancies, she says.

She says Ministers' travel, a persistent source of criticism, is only approved when it's deemed necessary, while a much tighter rein over the Ministries is now in place.

"The information is there has been some reduction in travel and reduction in costs," she said.

Ms Cox has stressed Government doesn't borrow haphazardly, and that necessary spending for 2008/09 included $148 million of borrowed funds on modernising schools and making them safer; $37 million on new health care facilities including the Sylvia Richardson home in St. George's; $84 million in airport works and seaport infrastructure; $40 million in housing initiatives; and $74 million on Home Affairs projects such as the Hamilton Police/court building.

Moving forward, she says the economy can be stimulated by a greater focus on jobs creation, particularly at a lower income level in areas such as construction.

And she says efforts will be made to reduce the tax burden on the retail sector to keep people open for business and decrease the risk of redundancies.