Bermuda’s crippling debt, the looming threat of redundancies and unpopular tax hikes may dominate news reports, but Finance Minister Bob Richards yesterday insisted that there was room for optimism about happier times ahead.

Unprecedented investor interest in the hotel construction industry, linked to the securing of the America’s Cup, promises a “massive boost to the economy”, the Finance Minister said, as he squeezed an upbeat message into an otherwise sobering Budget statement at the House of Assembly.

Mr Richards said that recent jumps in retail sales, planning applications and building permits, as well as the first rise in work permits since 2008, all suggested that Government’s attempts at economic growth were bearing fruit.

“We can see it in this Budget, where the current account balance before debt service will achieve a surplus position — the first time in more than seven years — and where the target has been set to balance the budget within three years,” he said. “These signs bode well for the future but there is a long way to go before we get to solid ground.”

Mr Richards noted a succession of projects, including six hotel developments, the new airport terminal and the America’s Cup, are valued at $930 million over the next three years.

“This list of projects, representing inward direct investment, is the essence of our stimulus package,” he said.

“In two years, this Government has changed the reputation of Bermuda as being unfriendly to investors to an investor-friendly environment where global businesses feel comfortable to invest in our country again. “These projects comply with the conditions we laid down from the start, and that is they should add to our productive infrastructure, thereby creating short-term as well as long-term jobs; and that they should not be the result of deficit-financing by the Government.”