This is the full text of a speech made last night by the Premier, Dr. Ewart Brown, as he addressed the nation on the turbulence in the world's economies.

Good evening. As young people many of us learned a song that said: "Bermuda is another world."

While the premise of that song is still true, the reason I am making this unusual address to you this evening is to remind us all that when it comes to the economy, Bermuda is not another world.

We are very much linked with the rest of the world, so we are not immune to the challenges that the global economy is experiencing.

Things have changed dramatically in the last few weeks. In the history of financial markets, the United States – indeed the world – hasn't seen a period of economic challenge like this since the Great Depression.

The sub-prime crisis leading to the instability and failure of major Wall Street institutions, a credit crunch, and the US bursting housing bubble, have made for a dangerous economic cocktail.

The financial system has been perilously close to collapse. This decline has occurred so quickly and deeply that politicians, regulators, world-renowned economists and even governments, have been unable to restore sustained confidence in world markets.

The $700 billion rescue plan in the US still has not had the desired impact. It is everyone's hope that markets will begin to stabilise as global leaders unite and as European and other nations implement rescue plans which provide equity injections for their banking institutions.

We are witnessing extraordinary global collaboration that offers the best chance to create solutions which will allow an eventual return to a more stable financial environment.

Many of you want to know how all of this affects you and your family… living in White Hill or out in Spanish Point or wherever you call home.

Let me take a minute to talk about that.

The inter-dependence between our economy and the world's economy is inseparable. Economic hardship in North America and Europe will have an adverse impact on us locally – no doubt about it.

The two principal pillars of the Bermuda Economy – both international business and tourism – will not be immune to the negative developments across the global financial landscape.

The Bermuda international business sector, cemented in insurance and reinsurance, is well managed and continues to play a vitally important role in the world of risk management.

Yet some of the companies in our international business sector have had to deal with investment losses from deteriorating financial markets. Some have incurred costs as a result of Hurricanes Gustav and Ike.

Meanwhile, the formation of new international business in Bermuda has slowed over the past three months, all but certainly related to the pinch being felt around the globe.

However, even with that cautious assessment of the insurance sector I'm encouraged by one simple fact: the world needed to buy insurance yesterday and it will need to buy insurance tomorrow. Insurance is one of the most recession-resistant industries there is.

Few jurisdictions provide the business regulatory environment and infrastructure we have in Bermuda. The Government will continue to do what it needs to do to ensure we are well positioned to keep international business strong.

I will continue to meet with our international business partners in the coming weeks to reassure them that this Government values them immensely and stands with them resolutely.

We are willing and ready to help in whatever ways we can.

They will make it through these turbulent times knowing that Bermuda is a secure and helpful place in which to reside.

Our other great pillar – Bermuda Tourism – will suffer in a global economic downturn, especially since the US is feeling the brunt of that downturn and 85 percent of our visitors are from the US market.

This might mean lower or stagnant visitor arrivals, hotel occupancy rates and retail sales.

Matching the statistical performance of prior years may not be possible.

Our numbers may fluctuate with the markets.

So we will be reassessing our strategies, working with our tourism partners and making an all-out focused effort to keep our numbers as high as possible under the circumstances.

I should also point out that the credit crisis will make it tremendously more difficult for developers to secure financing for new hotel construction.

Only one project has indicated new challenges with getting started as planned. The others appear to be on track and have not indicated that they expect trouble with financing.

But we will continue to keep a close eye on their progress in light of the challenges we know they will face in capital markets.

Our outlook will be cautious, yet optimistic, until the world's credit markets get rolling again. And they will get rolling again. Throughout, Bermuda will remain well-positioned to forge ahead.

Over the weekend, I met with the Council of Economic Advisors – a group of international and mainly local business leaders I formed last year to help us assess economic issues that I knew we were certain to face.

Some of our time was spent sharing views on the extent of the global economic crisis and its expected impact on Bermuda.

However, a good portion of our time was spent on the Low Income Threshold Report I tabled in the House of Assembly this year.

All of us want to ensure that new social programs are providing real relief for working families and seniors, especially during these increasingly difficult economic times. We discussed how initiatives like free public transport for school students and free tuition at Bermuda College can alleviate financial burdens on single parents, for example.

We also discussed the implementation of the free daycare initiative which will begin on November 3.

We think all of these programs are forward-thinking because they were designed to take some of the stress off working families.

So, be assured, that as this time, our commitment to progressive social programs remains strong… perhaps even more so now than ever.

There was a lot more work put in by the Council of Economic Advisors this weekend that you will hear about later. You will also see the results of their labour. Even though they don't expect or get recognition by name, I thank them for the selfless effort they are putting in on behalf of Bermuda.

On issues as important as the economy it is my hope that consultation and cooperation will be free-flowing. Over the past week alone, I have chatted with local banking executives and a cross-section of others on how we can best ready Bermuda for the local economic climate we might face as a result of the global economic crisis. For the most part, there are no clear answers because the times are so uncertain, but the discussions have been fruitful.

In conclusion, I have to relate to you that no one knows how Bermuda will be impacted – whether it will be severe or not. Nor do we know the extent or length of any economic difficulties we might face.

Nevertheless, the Government has already been seen to take proactive steps with the social programmes we designed last year that are presently being put into place. Now the Government must be prepared to execute appropriate and timely intervention when it is necessary.

We'll be reviewing a number of things over the next few weeks as we proactively manage Bermuda's economy to put us in the best position to weather an expected downturn.

We will phase implementation of public projects to support employment in the short term. And we will accelerate our focus on education to enable Bermudians to reach higher paying jobs in the long term.

I will be working with the Finance Minister on this and other ideas and asking Government Ministries in the immediate term to trim the fat that is not being directed to our local economy – I will be calling for an immediate moratorium on all but essential Government travel for the next six months.

I will also be asking that all Government officials – Premier and Ministers included – travel by coach class for all Government-paid travel segments that are of three hours or less duration. Upgrades using frequent flyer miles will be allowed.

I will also be looking at other ways that Government can reduce spending and save money in our coffers to prepare for what may be leaner times ahead.

I expect you'll be talking about the economy a great deal in the coming weeks as well… just like citizens the world over.

This message is not meant to alarm you.

It is meant to reassure you that as you hear about what is happening with the global economy, you should know that so far, Bermuda is doing okay.

However, we are a proactive Government and a proactive people. We know that we do not have any insulation from the effects of the global economy, so we must be prepared.

So far, we are weathering the storm.

We are benefiting from the strict lending practices that we had in place.

Homebuyers in Bermuda did not fall victim to the widespread predatory lending that precipitated the sub-prime crisis in the United States.

While the sub-prime crisis is gripping the US with foreclosures, Bermudian homeowners are still making their payments and keeping their homes. Things may be tight and may get tighter, but your Government is working hard every day to keep confidence high and to be in a position to assist you in any time of need you may potentially face.

We will be working with our local banking institutions to ensure that work-out solutions will be available if you need them in the future.

It is our best defense for what may lie ahead.

I hope I've been able to provide some concise insight for you and your family on some very complex economic issues.

Although I want to leave you on a cautious note, I want all of us to remain optimistic.

Bermuda is a resilient nation with a resilient people. We were made for the tempest and we were made for the teapot. So even though we may have to navigate some uncertain or difficult waters, I am confident that we will emerge together on the other side.

Thank you for listening and God Bless.