The Environment Ministry is looking to commission an overseas laboratory undertaking wind tunnel tests on model Bermuda homes, Minister Neletha Butterfield announced in London this week.

And she said Bermuda's economy is "in good shape", on track for current account surplus and expected to borrow less than the $78 million projected in the budget - in spite of Hurricane Fabian.

Ms Butterfield took Premier Alex Scott's place as guest speaker at a meeting of the Bermuda Society in London on Tuesday evening. According to a Government spokesperson, Premier Scott could not attend the black-tie, gala event attended by some 60 friends of Bermuda due to other pressing commitments.

The spokesperson said Mr. Scott would be making several trips off the Island in the near future and therefore had business on the Island he had to take care of before leaving, though she could not specify what that business was.

Ms Butterfield, who was accompanied by Environment permanent secretary Brian Rowlinson, brought the Bermuda Society up to date on what has been happening on the Island in the wake of Hurricane Fabian.

The Bermuda Society is an organisation that formed in 1987 to look after Bermuda's interests on a number of fronts, particularly in the areas on finance and commerce.

It is composed mostly of Bermudians living in London and aims to promote Bermuda's image and foster closer links between Bermuda and the UK and Europe.

It also assists with Bermuda International Business Association promotions and offers support and guidance to Bermudian students and workers in the UK.

"The winds of change blew strongly in November 1998," Ms Butterfield told Society members on Tuesday evening. "Following our re-election in July, the winds howled!"

She described the excitement of the July election: the first election held under single-seat constituencies, the first time the PLP had ever been re-elected, and the first time a newly-elected government had successfully negotiated a change in leadership within its first 24 hours. She also described the willingness of the Government to work not only with its elected representatives but with talent throughout the private and public sectors in addressing local issues.

"From the day the Premier was sworn into office ... he has ably demonstrated his commitment to these principles."

While it was still to early to predict the cost of Fabian, Ms Butterfield was optimistic. "Despite the unanticipated costs of Fabian, we are on track for current account surplus and expect to borrow less than the $78 million projected in the budget's capital account."

Increases in retail turnover, boosted by sales in building supplies, would be offset by the fall in visitor arrivals, and the higher than expected imports of building material compounded with lower visitor expenditure may put pressure on Bermuda in the fourth quarter, she noted.

However the construction industry, which was functioning at near-capacity before Fabian, would remain buoyant and help absorb the loss of jobs in the tourism industry.

In the meantime "the signs of a rejuvenated and regenerated tourism product are very encouraging".

Ms Butterfield listed the nearly-completed sale of the old Lantana location, the multi-million dollar redevelopment of Belmont, plans to upgrade Newstead hotel and plans for a new five-star hotel at the former Ritz Carlton site in Warwick as evidence.

In addition: "Just last week Ministry officials met with renowned hotel developers and investors to review exciting new plans for the development of the Par-la-Ville car park in the City. This is a perfect location for a high quality business hotel."

The international business community is continuing to establish itself as "the centre for global insurance and reinsurance", with insurance premiums written in Bermuda skyrocketing 300 percent in 2002, she said.

However: "Our success in this regard is bringing pressures of a different sort - most notably on the local housing market.

"The construction of a stock of public housing is not the easy solution... We need innovative approaches to these pressing issues to avoid more and more Bermudians feeling divorced from the success of their Island.

"It is a challenge we are committed to address by drawing on the expertise of private sector agencies... and in partnership with the international business community," she said."Together, we can assess the situation, review options and develop good solutions."

Ms Butterfield also discussed environmental initiatives post-Fabian.

Consultants documenting coastal erosion have returned to the Island, and an air survey has been commissioned providing accurate reef platform data for modelling wave direction and strength in storms.

UK tree surgeons have been brought in to train local crews in restoring trees, and the propagation of a sizeable stock of native and endemic species to replenish land is underway.

Satellite images have been purchased to analyse damage and calculate tarpaulin and roof slate to be stockpiled for future emergencies, and the Ministry has commissioned an overseas lab using wind tunnel tests on model Bermuda homes to help determine weaknesses and breakpoints in traditional roof construction. "This will be an expensive exercise," Ms Butterfield admitted.

"But not as expensive as replacing 500,000 roof slate every five years or so."