Public-private partnerships are a way for Government to help protect and advance the Island's status as a leading financial services jurisdiction, Finance Minister Paula Cox said yesterday.

Ms Cox, speaking as she delivered the 2005/2006 budget, said there were plans for alliances with the private sector on several fronts including working with international business to protect the Island's reputation as a leading financial services jurisdiction as well as to extend a helping hand to the Bermuda Stock Exchange (BSX).

For the BSX, Government said it proposed to provide assistance as part of a public-private partnership in maintaining high compliance standards in Bermuda's financial services sector.

"The funding is to be earmarked for listing and compliance functions of the BSX and a small contribution towards its international marketing efforts. Private sector entities are assisting the BSX through the extension of credit facilities.

"The grant is temporary and will cease when the BSX acquires the recognitions that it has sought from overseas authorities during the past several years. The recognitions are now imminent, but the delays have impacted the BSX's revenue base," Ms Cox said.

Government also said it would continue to "strengthen and nurture" vital channels of communication with key persons and institutions in Washington DC.

In last year's budget, Ms Cox announced that a portion of the Finance Ministry's total budget had been earmarked for "economic diplomacy" measures.

She said: "During the past year, Government has bolstered its position with key persons and institutions in Washington, DC. Government has broadened its network of contacts and the work in this area will be sustained in 2005/06.

"The relationships that we have established remain key to Bermuda's long-term success. Government will continue to these vital channels of communication."

She said the Finance Ministry's proposed budget for the coming year ? up by $13 million or 15 percent at a total of $98 million ? also includes provision for continuing initiatives in economic diplomacy.

A sum of $516,000 (compared to $497,000 last year) was set aside in the budget yesterday for "economic and financial intelligence" by the Finance Ministry but it is not clear whether funding for economic diplomacy falls into this category.

Ms Cox also signalled that Government would continue to partner with the Island's international business community to make sure Bermuda's reputation outside of the Island was safeguarded.

She said "economic diplomacy" steps taken by Government were "in addition to the strategic partnerships that have been established between the Government of Bermuda and the locally-based stakeholders".

"We are action-driven and in rising to the challenge, to ensure we ably protect Bermuda's reputation in the international market place, we acknowledge that business and community go hand-in-hand," Ms Cox explained.

"All elements of society need to work effectively together to attend to our national goals. No one group on its own can achieve these goals. We cannot afford to be isolationist."

She concluded that Government's partnering with international business in lobbying efforts had helped "Bermuda maintain its international reputation as a vibrant, well-regulated and stable financial services jurisdiction".

"The Finance Ministry will continue to develop and strengthen these relationships in 2005/06 in order to protect Bermuda's national economic interest," she said.