In a special television broadcast, the Premier last night urged citizens to celebrate the Island's 400th anniversary by uniting as "One People for One Bermuda".

As he appealed for unity to face the future, Dr. Ewart Brown spoke on the current challenges in tourism and international business the two main pillars of the economy.

Telling viewers he would "speak candidly", the Premier admitted hotel projects were delayed but also claimed that, "in tourism, we are holding our own".

In international business, Government was working hard to make Bermuda "the best possible place for international business to reside" and to push the case against punitive US tax legislation.

In addition, moves were afoot to ease 'stop list' restrictions and to persuade the US Government to clean up Morgan's Point.

On the other side of the Atlantic, Dr. Brown is pushing to take operational control of policing out of the hands of the Governor and into Government's jurisdiction.

Speaking in the televised address, the Premier said just as a birthday is a time for reflection, so was Bermuda's 400th anniversary a time to "reflect on our past, contemplate our future".

"I am going to share with you where I think we are as a people, where we are as a country, and the direction in which your Government is headed," said Dr. Brown.

"Importantly and ultimately, I am going to try to impress upon you that unity as a people is our best recourse for whatever we do in the present, and for whatever we face in our future."

The Premier, Minister of Tourism and Transport, said: "The world has been enduring tough economic times. The US, home to 85 percent of our visitors, has been enduring tough economic times. Bermuda has been enduring tough economic times. So, when we hear that a statistical measure of our tourism activity is the worst it has been in 30-35 years, we should not be surprised."

He said: "At this time last year, we talked about the likelihood that Bermuda would suffer during this global economic turndown: that we might experience lower or stagnant visitor arrivals, hotel occupancy rates and retail sales; that matching the statistical performance of prior years might not be possible; and that the credit crisis might make it tremendously difficult for developers to secure funds for new hotel construction.

"While Government cannot cause or control the effects, we can and will do everything in our power to minimise the negative impact on Bermuda.

"We believe that we will rebound because, technically, the US recession is over and expansion has begun, although recovery is expected to be slow; and because Government continues to implement strategies that attract visitors to Bermuda as we have done throughout this challenging economic period."

Last night Opposition Leader Kim Swan said: "Tonight's address by the Premier stands out for its positive tone and encouraging words of unity.

"We are pleased he has adopted the language of inclusion and are flattered he has lifted for his own use our motto of 'One Bermuda'.

"But we are not sure what this speech really means for the people of this great island. Who is the Premier? He has been the architect and driver of the most divisive politics Bermuda has ever seen from a government leader; he spins the truth away from terrible failures and he presides over a government that favours friends over fairness."

Mr. Swan said: "Bermuda needs its Premier to lead by example and move beyond mere words to real deeds that can build the 'One Bermuda' all of us want. The country has been severely fragmented under his leadership and until we see meaningful change for the better, the jury remains out."

The Premier said next week's 3rd PGA Grand Slam of Golf would showcase Bermuda to a worldwide audience of millions. This year's Music Festival would also attract tourists who "will not be able to resist our line-up".

Dr. Brown said the new marketing partnership with the Boston Red Sox would also create "great exposure". "We expect to begin to see more visitors as a result of this partnership over the next few years," he said.

Meanwhile in the UK, the Premier last week "pushed the cause of a low-cost carrier from the UK to Bermuda" in a bid to replace the Zoom Airlines' service. As for the hotel developments he announced in the past, Dr. Brown said: "I continue to believe that all of these projects will come to fruition and that we will still fully realise a Platinum Period in Tourism."

However, this would be delayed by the "capital-raising problems" faced by developers in the current climate.

In international business, the Premier said Finance Minister Paula Cox's signing of the 16th Tax Information and Exchange Agreement had only strengthened Bermuda's position on the OECD 'white list'.

The country's election to Vice-Chair of the OECD Global Forum's Steering Group was also "a powerful illustration of Bermuda's position and reputation as a premier and pristine global financial centre".

He added: "In 2009 alone, we have seen over 600 new businesses make Bermuda their home. In furtherance of my promise to speak candidly, it is probably appropriate at this time for me to correct a falsehood concerning the departure of some of our businesses to other countries like Switzerland and Ireland. The falsehood is that they have been motivated by the need for a more stable political environment, or that this Government is running them away. The fact is that many of them have simply sought what they believe is a more predictable tax environment. What do we mean by that?"

He said Tyco's move was due to Switzerland having tax provisions independent of "the whims of a US Congress".

Concerning the anticipated changes in US tax laws, Dr. Brown said: "We will continue our unrelenting efforts against enactment of legislation that would be harmful to our economy."

The opening of the new Bermuda office in Washington D.C. would only help efforts to "convince the United States of our value and of the negative consequences that the US itself will incur with unfavourable tax treatment of insurance and other companies located in places like Bermuda".

In terms of other initiatives, Government is pushing for Bermuda to be a partner in US Coast Guard programmes. This would provide the Island with interceptor boats, special communication equipment and law enforcement training for drug interdiction.

Dr. Brown added: "We are also redoubling our efforts to try to persuade the US Government to reopen and re-negotiate the clean-up of Morgan's Point. We will keep you apprised of our progress."

The Premier also spoke on anti-social behaviour and gun crime. He said: "I now speak for Cabinet and all of Government when I state that we are deeply frustrated with the current approach to tackling crime. Constitutionally, we are hamstrung.

"We control the purse strings but have little or no say in how the fight is managed. That is why we took the opportunity in London as recently as a couple of weeks ago to leave the UK Government in no doubt that the people of Bermuda need operational control of the Bermuda Police Service. Increasing criminal activity threatens the very social and economic fabric of our Island, and it must stop."

The Premier went on to say that Government would continue to "meet the needs of everyday Bermudians".

This included: free and subsidised day care; advancing FutureCare for seniors; a 24-hour drug treatment facility; providing shelters for the homeless; and a crackdown on employers flouting immigration and employment laws.

In addition, Government is to create Economic Empowerment Zones around the Island. The Premier ended his speech on the theme of unity. "As we have experienced challenging times and look forward to exciting times, my message to you with all that we do is that we must come closer together as we forge ahead to what the future holds for us.

"We need to cease to be motivated by our differences of opinion, and start to be driven by our common love for Bermuda.

"As Premier of this Island paradise, I am humbled, I am honoured and I am grateful. I am calling on all who live and love here to use this 400-year hallmark to begin a new paradigm together focused as One People for One Bermuda.

"Imagine. We only need to reflect momentarily to conclude that but for the unity of the people who landed on this then-isolated island in the middle of the Atlantic Ocean in 1609, we would not be here today to celebrate this 400th year."