Shadow Finance Minister Bob Richards last night accused Government of ignoring the impending threat of the US Government targeting so-called tax havens like Bermuda.

He told the House of Assembly during a debate on the Throne Speech that the dire financial situation in America would mean government there would do everything it could to recoup lost tax revenue — including closing loopholes which allow US businesses to avoid taxes by basing themselves in places like Bermuda.

Likening the Island to a ship which is about to be torpedoed but doesn't have the crew to get the vessel to safety, Mr Richards told MPs: "The Throne Speech appears almost oblivious to what amounts to a clear and present danger to Bermuda.

"The Throne Speech skips over the event and starts talking about what we will do after the event.

"What we do after the so-called event and what we will be able to do for the Bermudian people after this so-called event will depend entirely on how we handle this challenge that faces us now."

He added: "We must operate on the assumption of worst case scenario taking place. We are fighting for our survival."

Premier Ewart Brown later stood up to refute the allegation that the global economic downturn was being ignored by Government, reminding members that Finance Minister Paula Cox had made many statements on the subject.

"We did not think it was prudent or necessary to repeat what we had said in the Throne Speech," he said.

Responding to criticism that this year's nine-page Throne Speech was too short, Dr. Brown recalled the UBP's Throne Speech from 1990, when the US was in recession.

He said they produced a five-page speech, which promised to plough on with costly capital projects, such as the Tynes Bay waste facility and the National Stadium, despite the state of the American economy.

Opposition leader Kim Swan, in his party's response to the Throne Speech, said: "History has shown us that when the United States catches cold, Bermuda catches cold."

But Shadow Attorney General Mark Pettingill said that didn't go far enough. "If the US catches an economic cold, Bermuda catches an economic flu," he said.

Mr. Pettingill warned the House that a US economic downturn would hit Bermuda hard and would result in a rise in crime.

"Economic downturn is a red warning light for crime increase," he said. "We are already seeing that. When people aren't provided for because of economic downturns there are those that will turn to taking what they can't achieve, out of frustration often."

He said the Throne Speech failed to give nearly enough detail on how Government intended to tackle rising crime.

"Where's the beef?" he demanded, suggesting that such a "nine-page dissertation" could have been quickly put together by a class of ten-year-olds.

"It shouldn't be an esoteric incantation that one has difficulty getting one's head around."

Government backbencher Zane DeSilva, referring to Mr. Richards' torpedoed ship analogy, said: "I would like to say that we do have a full crew on that ship, unlike the other side who, if they were in a ship with a torpedo coming, I don't know if we'd have anybody totally on board."

He said that Mr. Richards' language about "fights" with the US Government and "survival" was inappropriate and that words like "negotiate" and "discuss" would be better.

Government backbencher Michael Scott praised the plan for a witness protection programme, arguing that it was needed now times had changed in Bermuda and witnesses were less willing to help the Police.

He scoffed at claims that the Throne Speech did not give enough detail, saying that it set out an agenda and the Budget would give details of how public money would be spent.

Mr. Scott said he was optimistic about Bermuda's future, despite the gloomy global economic outlook. Mr. Richards' claims were, he said, "poppycock".

Shadow Health and Seniors Minister Louise Jackson praised plans to build a new hospital but questioned what would happen to the Continuing Care Unit for elderly people.

She queried why the Throne Speech did not explain how Government planned to increase the number of residential home places for seniors; something she said was desperately needed.

"This Government has been in power now for ten years," said Mrs. Jackson. "If they can't figure out what's to be done then this is truly tragic."

She also mentioned that she does not understand why, amidst this global recession, seniors are finding it so hard to meet everyday demands.

"Why would Bermuda Housing Trust increase rent in Elizabeth Hills and Furguson Park by $75, it was $800 now it is $875 for seniors who are getting a monthly income of no more that $1000 per month and have to pay for other utilities and food.

"I'm asking Government to have pity on seniors." She added: "Had the United Bermuda Party been in power, they would have subsidised the rent for seniors."

Mrs. Jackson also questioned the progress of the Homeless Shelter initiative introduced by Social Rehabilitation Minister Dale Butler stating that no one had heard of any updates.

Minister Butler said: "I have given the House numerous updates and informed Salvation Army of updates and whether or not we would be putting out to tender with regards to who would be running it as a service.

"Every time we get additional information from the architect we do give updates.

"Before the [economic] downturn, our intention was to have a major release in January with the 60 individuals who responded to The Royal Gazette and television request with their interest in working on the homeless council.

"I also have collected a lot of data and put it into a documentary which recognises 250 people who are homeless which varies from season to season."

He said that it was decided not to put this information in the Throne Speech because this program is up and running and progress has already been made.

Health Minister Nelson Bascome told MPs he intended to help them lead the way for the Island in terms of healthy eating by drawing up an improved menu for late-night sessions at the House of Assembly.

He said obesity, hypertension and the number of people having to use kidney dialysis meant Bermuda was in a "critical situation". There is, he said "an inordinate number of Bermudians receiving dialysis".

John Barritt, the Opposition's legislative and public administration reform spokesman, pointed out that it was incumbent on members of his party to ensure that Government was preparing properly for the financial woes ahead.

"You hope for the best, but prepare for the worst," he said, echoing an earlier comment by Mr. DeSilva that the Island should "prepare for the worst, but hope for the best".

"There should be more in the Throne Speech with respect to what the Government is committed to doing," said Mr. Barritt, adding that some of the solutions might mean "acting outside of the box".

Mr. Barritt also suggested there was not enough in the speech for the growing population of elderly people. "There's a demographic tsunami coming with respect to seniors," he warned.

Education Minister El James focused mainly on his new portfolio, urging the country to be patient and promising that the fruits of reform would eventually be seen.

He revealed that since taking office he has had a four-and-half hour meeting with the Bermuda Union of Teachers after which all were "on the same page".

He said weekly meetings would now take place with the BUT and the Association of School Principals.

"We have some enthusiastic teachers," said Mr. James. "We have a great team we are working with in education as this process unfolds. Over a period of time, we are going to see some results."

The Minister promised that annual reviews of schools would happen and the results would be published. Other measures include increasing the number of school hours spent on exercise to make children more "balanced".

He said there would be an increased focus on careers guidance and school assistance teams would be a big boost for struggling schools. "I would just say to those naysayers: 'Just give us a little time, be patient and we will see the results'."

Opposition MP Patricia Gordon Pamplin voiced her concern with the trend of anti-social behaviour referred to an example of an unemployed young person who said that he said he was afraid to enrol in classes at the Bermuda College because of gang members who attend as students there.

She said: "A structured environment needs to be implemented, especially in a school setting, and that the opposition will support that."

Mrs. Gordon Pamplin also talked about the mould problem at CedarBridge Academy (CBA) questioning why no plan had been put in place concerning the mould crisis.

"What has the Government been doing over the past few years? They should not be at the starting point of the mould in a 'sick building'."

When Mr. DeSilva made reference that it was United Bermuda Party who built and designed the school, Mrs. Gordon Pamplin said: "It was built in 1997 and PLP came into power in 1998, you cannot say it's our fault ten years down the line. It is a maintenance problem."

Minister of Works & Engineering, Derrick Burgess responded to Mrs. Gordon Pamplin saying that CBA was designed to be operated with no air conditioning but they were installed anyway, noting that this is what caused the water retention and mould to build.

He said: "As problems arise we fix them, but we don't know what's wrong until something happens," referring to the original plans of the structure.