conducted by the Financial Times.

The eight-page supplement, contained in Monday's newspaper and reported on in yesterday's Royal Gazette , notes: "The change of government in November, the first in 30 years, promised a departure in economic and social policy. In the event, the change has been seamless.'' This is heady praise from, along with the Wall Street Journal, one of the most influential business newspapers in the world.

Because business treasures stability, "seamless change'' is important; low taxes and regulatory advantages are also good.

The FT Survey does not shy away from the problems the Island faces; the high cost of housing, the continued decline in tourism, the challenge posed by the OECD etc., and the pressure of low premiums on the insurance industry.

Against that, it acknowledges the strength of the international business sector, buoyant economic growth, the stream of innovation coming from the international sector and the success, compared to other countries, of deregulation of telecommunications.

It is possible in a place as small as Bermuda to get the sense that our problems are huge and unsolvable. It is sometimes helpful to have clear-sighted outsiders take a hard look at the Island and to report back.

This survey shows that despite the challenges facing the Island, it is in good shape.

Even if the claims of Opposition Leader Pamela Gordon have a germ of truth in them (that the PLP's success so far is based on their continuation of UBP policies), that too may be to the credit of the Government, which has been wise to retain good policies. And just as any Government will be held partly responsible for a weak economy, it deserves credit when the economy is strong -- and this Government can bask in the glow of a positive survey from the Financial Times.

HALFWAY THERE EDT Halfway there One of Social Services Minister Nelson Bascome's first acts on taking office was to begin the demolition of Clarence Terrace in Dockyard in order to convert it to a halfway house for prisoners.

The moved showed that Mr. Bascome was prepared to energetically deal with a promise that the previous Government had failed to fulfil -- and showed his commitment to helping the Island's prison inmates.

Unfortunately, it seems Mr. Bascome's enthusiasm was misplaced; Clarence Terrace had been listed for preservation and the work was stopped almost as quickly as it began.

Now we are left with no halfway house, a partially demolished listed building and yet another shortlist of possible sites.

This is a salutory lesson for the still young Government; enthusiasm is laudable, but careful preparation is even better.