Shadow Finance Minister Bob Richards said Bermuda would not have seen two years of budget deficits and $989.8 million in national debt and outstanding guarantees if the United Bermuda Party were in charge.

Mr. Richards said his party had fundamental differences with the Government when it came to economic policies, and outlined what his party would do if it had control of the Island's purse now.

In his reply to the Budget yesterday, Mr. Richards said Government was incorrect to be banking on an economic recovery and that raising taxes was the wrong way to deal with the current climate.

In the Budget presented to the House of Assembly last week, Finance Minister Paula Cox raised payroll tax to 16 percent up from 14 percent.

"There is no way Bermuda's finances would be in this predicament if the Government were under the guidance of the United Bermuda Party," he said. "There is a fundamental difference in our approach to finance from that of this Government.

"Our approach is based upon widely accepted family values like living within one's means, the judicious use of debt and sound judgment. Budgets need to be made on the basis of expectation not a wish list. We all wish that a recovery takes place in Bermuda this year, but to make a forecast on that basis is not realistic."

Mr. Richards made several recommendations on ways to improve Bermuda's economy including not raising payroll tax; complete tax breaks for hotels, more assistance for Police and improving the relationship with international businesses.

"The proposed tax hikes more than $100 million in total will harm working Bermudians and business, particularly small business," he said. "Raising taxes at this time threatens to snuff out any recovery that may be in the economy. Our emphasis would be on cutting costs and postponing many of the initiatives presently underway in Government."

To help the tourism industry, which he said was facing "its most challenging year ever" Mr. Richards suggested waiving all taxes that arise in the sector: hotel occupancy tax, land tax, payroll tax, customs duties and duties on fuel.

"Virtually all hotel operations are hanging by the skin of their teeth, the industry is in terminal decline and the Minister is committing time and taxpayer dollars to building tourism a world away," he said. "The trip to India will not help Bermuda tourism this year and that is the only thing this Tourism Minister should be focused on, because right now this year is all that matters. If we don't get through it, if we don't drive enough visitors to our shores, we may well be left with a shattered industry.

"It is essential that hotels survive this industry depression so that when consumers do resume spending they will be in business to welcome them. Jobs depend on it."

Mr. Richards said his party supported Government's plan to have a hospitality mega-fund to finance advertisements about the Island, paid for by Government and hotels.

But he added: "To underline our commitment to getting more visitors here to Bermuda, we would commit the $800,000 earmarked for the corporations takeover study to the special fund."

With the current state of the tourism industry Mr. Richards said it was important to ensure there is a strong relationship with international businesses on the Island. He characterised the current relationship as 'weak' adding: "Irritations continue to fester, impediments remain and ministers alienate."

The UBP again called for Government to follow through with a recommendation in the bipartisan Bermuda First report: waive term limits for job categories that receive 100 percent work permit approval.

And he said the UBP would freeze Civil Service hiring and reduce the number of consultants if it was in power. "Bermuda has the largest government in its history more people in its ranks than ever before yet ministers have hired what is, in effect, a shadow government, accountable to no one but them," he said. "Consultants now account for an astounding $100 million in spending, nearly ten percent of the Government's budget. That's costing taxpayers more than $30,000 a day."

And with gun crime at an all-time high the biggest problem facing Bermuda in the official Opposition's opinion more should be done to assist Police. Mr. Richards said Government was "spinning reality to the public" by highlighting the increase Police received this year because the policing budget was actually $4 million below what it was three years ago.