localjob-creating projects, National Liberal Party leader Mr. Gilbert Darrell suggested yesterday.

Such investments would result in a "transfer'' of wealth without the use of additional taxation and welfare payments.

Mr. Darrell put forward the idea in a three-page statement that blasted the Finance Minister's "fantasy'' assessment that Bermuda can expect economic recovery to begin next spring.

The Hon. Dr. David Saul, he said, should "not indulge in these fantasies, but be honest with the people of this country and take steps, where he can, to relieve some of the burden of a poor economy''.

Top business leaders and bankers backed Dr. Saul's forecast. But Mr. Darrell said that such people, who enjoyed a guaranteed income, "need to experience this recession and give more than lip service to this dilemma''.

He called on top Government employees, professionals and executives of major companies to "make their disposable income available for investment in projects designed to create employment, rather than using that income for unproductive means''.

He proposed that such a scheme could include tax breaks. Mr. Darrell, whose statement contained Party suggestions to help Bermuda adapt to recession, said surveys assessing the number of unemployed and their abilities were necessary for effective Government management.

A "badly needed'' economic survey could compile cost-of-living and disposable income figures for various levels of salaries and wages.

And an unemployment survey could determine the exact number unemployed Bermudians and record their qualifications.

The list could then be matched with existing work permits to see which permits could be cancelled.

"We, management and labour, must accept this guest workers phenomenon as a matter of survival for Bermuda and Bermudians,'' Mr. Darrell said.

The NLP said that such a plan would reduce the workforce and obligate unemployed workers to accept what jobs are available at the time.

Mr. Darrell also targeted Government, saying cuts in staff and costs are long overdue.

"Government salaries and overtime make up 53 percent of (Government) expenditure,'' he said.

A "firm immigration policy'' would "assure'' any redundant Government workers jobs in the private sector. The work permit survey could be used to reveal job openings.

Mr. Darrell took aim at overseas building contractors who are allowed to bid for contracts "and bring in staff for projects''.

He suggested it was time Government restricted their access to the local market.

"There is no shortage of abilities to bid on these projects except in very rare cases,'' he said.

"Overseas contractors take all profits abroad; local contractors and suppliers keep those profits in Bermuda assisting the economy.'' Mr. Darrell's sweeping statement also called on Government to look at import duties with a view to reducing the cost of goods on the Island.

Duty reductions would go a long way toward making local companies competitive with overseas prices.

He also appealed to consumers to understand that unavoidable charges such as transportation and import duties are part of the equation in the pricing of local goods.

Mr. Darrell said such understanding would go a long way to breaking down the view among consumers that local businesses are profiteering.

"We do not support price gouging,'' he said. "Local businesses must strive for higher productivity with a leaner operation.''