the recession. In fact, the exact opposite is true. The truth is that Bermuda was economically sound when the recession began and was in a very good position to ride through the recession with strain but without the terrible results seen in other places.

It is, of course, nonsense to suggest, as some people have done, that Sir John Swan and his Government somehow started a worldwide recession and then applied it to Bermuda. That suggestion has been made by the leadership of the Progressive Labour Party despite the fact that the PLP's friends in the Bermuda Industrial Union have yet to admit that there is a recession. What the UBP Government did do was keep Bermuda's economy strong by deciding that Bermuda would have very little debt. That allowed Bermuda to survive the recession much better than most countries. Other countries, big and small and including the United States and the Bahamas, have been crippled by paying huge sums in interest on their debts during hard times. The UBP had wisely restricted Bermuda's borrowing and we had only minimum interest to pay when the hard times came.

Yes, the recession has been bad for a great many Bermudians but it has not been as bad for Bermuda as it has been for many other places.

Despite our grave concerns about Bermuda's tourism, it is not down as badly as many other places.

Bermudians travel a great deal, even in a recession, and they know that these are not the wholesale selling of houses in Bermuda that is going on along the US Eastern Seaboard.

Because the banks have been helpful to loan and mortgage holders, Bermuda has not experienced the large number of foreclosures on houses and households seen in other places where customers have a less personal relationship.

Because Government decided some years ago, very wisely, to cooperate with the Salvation Army to find solutions for the homeless, there is not the homeless problem so depressingly obvious from London to Miami.

Because Government had a social assistance programme in place and financed, Bermudians have been able to get help in hard times.

Yes, we have real unemployment for the first time in many, many years but the rate is about one-half what it is in the countries with which we associate.

Because Bermuda's employers cared about their employees, we have seen businesses work to keep their staff employed and that has been of considerable help to Bermudians and a very responsible thing to do.

There is no doubt that the recession has been a tough time for tourism, for local business and for many individuals. However it has not been nearly as bad in Bermuda as it might have been and it has not been as bad in Bermuda as it has been in many other places.

Why? Because Government provided Bermuda with a sound economy and because too cautious, but much complained about, Government Budgets put us in a good position to ride out a recession.