There are times when the limitations of Government's ability to intervene in the current economic crisis are all too clear.

Government Ministers Elvin James and Nelson Bascome held a press conference on Friday which fell well short of expectations when they admitted that cutting Customs duty on food would do little to reduce prices. Instead they were reduced to offering the kind of advice on grocery shopping best issued by advice columnists.

That does not mean the advice was not valuable; just that it was not much to offer up to people seeking help now. Similarly, Finance Minister Paula Cox's waiving of permit fees for Sunday openings and a $20,000 grant for a Buy Bermuda campaign this Christmas won't be turned away by retailers, but it is very little, very late for a sector that does pay high Customs duties and has already been battered by a poor tourism season, caused in part by the lack of cruise ships on Front Street.

In fact, and this is about the only good piece of economic news available, the high cost of living that has assailed Bermuda residents in the last 12 months in particular will start to ease soon. That's because the slump in oil prices from the record highs of the summer will now start to kick in.

That's not only true for electricity bills, where December should see the beginning of relief, but at the pump and, more importantly on supermarket shelves, where prices are affected not just by local electricity prices but by fuel surcharges on transport. The concern is that the Bermuda retail sector needs to get through the current difficult period first. Lower electricity prices may be offset by generally lower revenues and it was worrying to see that overseas shopping continued to rise in October after dropping in September.

The major question now is what happens in January when the Island is likely to see the construction sector begin to slow down and local businesses will come under tremendous pressure to reduce costs – with the obvious area to do so being through staff reductions.

There are already signs of this. Some shops are not waiting for Christmas to close, while John Barritt Ltd.'s announcement last week that it was ending local bottling of Coca Cola products due to high local production costs is a true sign of the times. Indeed, Bermuda's small local manufacturing sector is probably under the heaviest pressure of all.

What Bermuda needs now is fewer platitudes and over-hyped gestures and more action, beginning with a genuine commitment by Government to work more wholeheartedly with the private sector. Two summits hosted by the Premier this year, one specifically on tourism and the other devoted to the economy generally, have produced little concrete results or new ideas. More also needs to be done to restore local confidence as many people now simply wait for the next wave of bad news.

And while Government is limited in everything it can do, it needs to recognise that there are concrete steps that can be taken. Orderly plans for capital projects to keep the construction sector afloat is one area. Reducing Customs duty for retailers – or charging returning residents more – would reduce the burden for retailers. And sending out a concrete message to international companies that they are welcome in Bermuda after the shocks of last week would be most welcome. What the public is looking for now is a plan and sense that the economy is in safe hands.

Phillip Rego

While Bermuda's economy is beginning to feel the effects of the global economic slowdown, it is worth remembering that the Island remains in vastly better shape than many other countries – most notably Haiti, generally regarded as the poorest country in the western hemisphere and one of the places hardest hit by the 2008 hurricane season.

As you will read in today's newspaper, Bermudian Phillip Rego has essentially given up his life to helping Haitians and citizens of other poverty-stricken countries.

But the orphanage which is raising money in Haiti badly needs help now, and we encourage all our readers. Especially in the Christmas season, to read the stories, watch the interactive slide show on www.theroyalgazette.com and to give what you can for a people who struggle simply to survive from one day to the next.