An inflationary package which will only pile on misery for those at the bottom of society – that was Opposition Finance spokesman Bob Richard's verdict on the Budget.

Making his maiden House speech to give the United Bermuda Party's official Budget response Mr. Richards said Bermuda was not 'another world' but was incredibly dependent on the global economy and thus vulnerable to the recession gathering pace in America.

Yet he said Government had come up with a "tax and spend" budget which would further overheat Bermuda's economy.

That phenomena had exacerbated the affordable housing crisis in Bermuda, as rent rises outstripped the ability of tenants to increase earnings.

He said: "Thus even many middle class Bermudians are struggling to make ends meet because what was once affordable has become unaffordable.

"Some families have had to break up because they cannot afford to live under the same roof, and broken families have spawned negative social, educational and even criminal consequences.

"Many seniors, who are living on fixed incomes, and cannot adjust to the spiralling cost of living, have had to make diabolical choices, like rent versus medication."

Overheating had also dented the dreams of young people who want to own a piece of the rock but cannot afford the lofty prices of property despite earning high salaries, said Mr. Richards.

He added that the last Household Expenditure survey showed the cost of shelter had soared 325 percent faster than inflation.

He said as the US lowered interest rates to avoid recession lending rates would likely be dropped in Bermuda which could further over-rev the economy and put property further out of reach of ordinary people.

Government should have cut taxes for the poor, said Mr. Richards.

Bermuda is now totally reliant on international business, argued Mr. Richards which was six times more important than tourism economically and yet Government intended to spend $35 million on promoting tourism and just $2.6 million on international business.

And he said the same "complacency and arrogance" which had decimated tourism years ago was now creeping into Government's dealings with international business which it treated like pariahs rather than partners – the result being the outsourcing trend.

He said 90 percent of Bermuda's economy was owned by foreigners with little physical stake in the Island.

"The impressive local office buildings these companies occupy account for less than one half of one percent of their actual wealth, hardly an amount worth much consideration.

"The Bermudian people, through their Government, whether it happens to be PLP or UBP, have little or no control of these assets.

"With the click of a mouse they could be gone. The bottom line is we have no control of the vast majority of the assets and revenues that have a 'Made in Bermuda' label stuck to them."

Mr. Richards echoed concerns made by the International Monetary Fund at Bermuda's inability to catch local drug dealers laundering money. Spiralling costs of capital spending was also a huge concern said Mr. Richards.

He said the Total Authorised Funding (TAF) on the new court and Police headquarters in Hamilton has increased approximately 40 percent over the figure in last year's Budget, from an estimated $58.5 million to $78 million while the reconstruction of the Port Royal Golf Course has jumped nearly 100 percent from $7.7 million last year to an estimated $13.6 million today.

Similarly, the Dockyard Pier project had jumped from an estimated $35 million to more than $50 million.

Mr. Richards said plans for a new hospital by the deadline of 2013 appeared to be missing in action. However Government had blown millions on consultants and reports including:

¦ Kurron Shares of America carrying out a $450,000 review of Bermuda's hospitals in 2003

¦ The hiring of two major design companies, Cannon Design and OBM International, in 2004 to create a long-term plan outlining infrastructure planning guidelines. The creation of this Estate Plan was to later cost tax payers more than $1 million.

¦ In November of 2006, Kurron Shares formed a partnership with Government to ensure its 2003 recommendations were implemented. The cost for this was $13.5 million.

¦ Johns Hopkins Medicine International of Baltimore launched a $200,000 review of the Island's healthcare needs ahead of the rebuilding of KEMH.

The five percent pension hike was welcomed by Mr. Richards but he lamented the large hikes in the Hospital Insurance Premium which he said had increased by an average of 15 percent a year meaning that seniors were losing ground.