Hamilton Rotary Club on January 20 which we think needs to be heeded. The headlines focused on his announcement that his bank wanted to move outside the 60-40 rule but he also said a great deal about the state of the Country.

Recent political shenanigans seem to have distracted Bermudians from a basic fact which Mr. Smith emphasised: "...the bank and Bermuda are in very good shape today. Indeed, my economist friends tell me that, taken as a whole, Bermuda's economy is as healthy as it has ever been. It has been steadily expanding since 1993, while inflation has been very much under control. Unemployment remains very low; we still boast one of the highest per capita incomes in the world; and we carry a strong current account surplus. Things look pretty good, and prospects for 1998 indicate continued growth.'' Yet as Mr. Smith is quick to ask: "Why doesn't it feel a little better?'' "Feel good'' is a very important factor in any Country and we think that part of the reason it does not "feel a little better'' is that Government has been slow to point out to Bermudians just how good things are right now. Then too, the "feel good factor'' has been dampened by some very disturbing political events but that may be changed by such things as the success of the British Dependent Territories meeting in Bermuda and by the conference in London in early February.

Mr. Smith also identified the very important factor that the economy lacks balance. The international company sector and construction are "absolutely booming'', but other sectors, notably retail and tourism, are flat or declining. Mr. Smith noted: "Clearly, given that the latter employ the most people, we have a problem.'' The problem, of course, is that Bermuda has relied on the retail sector and on tourism to provide jobs for people, especially women, who are not necessarily employable in the more demanding and complex company sector. When those jobs begin to dry up, it hurts the people who are least prepared to withstand lay-offs. That, of course, is the lack of balance and it is one which could lead to further disparity in incomes and a greater feeling that some Bermudians are not sharing in the Country's economic success.

That takes note of the importance of tourism and its attendant retail sector to Bermuda in general. Tourism needs good shopping and that depends on healthy visitor figures. Mr. Smith urges "taking stock'' by taking a hard look at ourselves and what we are.

He is quite correctly asking Bermuda to be forward thinking and to examine if the businesses we are in are sustainable and if we have the resources to expand these businesses. He asks if we should be in these businesses and if they support each other.

These are valid questions in what is really a time of change. Today Bermuda competes with the world in both its international sector and in tourism and retail. For far too long we took our good life for granted.