Honourable House of Assembly: In the last twelve months, the world has been undergoing one of the longest and most severe recessions in modern times. Bermuda has not been spared the impact of this economic downturn. Both tourism and international business -- our twin economic pillars -- have been adversely affected.

For the first time in living memory, our Island is experiencing significant unemployment, and the Government is very conscious of the concerns and fears of people for the future. However, careful planning by the Government is not only enabling us to manage the Island through this period, but also to direct its limited resources to the provision of support and assistance to those most severely affected.

The Housing Assistance Programme and a fortified Social Assistance Scheme have served the community well as they soften the worst effects of the recession for many people. Moreover, the Government has put in place a number of schemes and projects designed to provide meaningful employment and it has also accelerated many of its minor capital projects to stimulate the construction industry specifically and the economy generally.

The recession has, however, adversely affected Government revenues and it has been necessary, as a consequence, to make reductions in some programmes.

Unless there is a marked improvement in the overall economic situation, further cuts may well become necessary.

Two years ago, Government put forward a plan for the future of Bermuda incorporating five key fundamentals.

That plan is as relevant today as it was when it was introduced. The Government has continued to develop its planning process even further and it is confident that, with the dedicated assistance and active participation of the community, Bermuda will be able to grasp the opportunities of the future.

The commitment of developing A Bermudian Consensus by seeking active participation demands that this planning process receive the maximum input and involvement of the people of Bermuda.

Government is gratified by the level of participation in this process by a wide cross-section of the community and, in the coming year, the aim is to secure an even greater measure of participation.

Despite the difficult economic circumstances, the Government remains committed to its pledge of providing Economic Stability and Responsible Management .

While the recession has certainly challenged the community, the implementation of Government's long-term plans should ensure an orderly progression towards renewed growth.

Government is committed to improving its productivity and efficiency. The freeze on new positions within Government, which has been in effect for two years, will be continued for another year and every request for the filling of existing posts will be subjected to detailed scrutiny.

The "Access to Government'' initiative is reviewing the way Government does business with the goal of making Government more efficient, more productive, more accountable and more effective.

Each programme of Government is being analysed and, over the next two years, every resource need will be quantified, the customer base defined and the delivery of specific results enunciated so that those responsible may be held accountable.

Government's successful efforts to date in ensuring there is a positive environment for retaining and attracting international business to Bermuda will provide a stable platform for further development and expansion of this important element of our economy. Over the past several months, Government has been examining ways of taking advantage of new business opportunities for the Island.

In the last Session, Government introduced legislation which will encourage trust business and provide a new arm to international business.

Amendments are to be introduced this year to encourage international arbitration in Bermuda and this will further expand the Island's international business opportunities.

Additional measures to maintain Bermuda's competitive edge as a financial centre will be introduced in the form of amendments to both The Insurance Act, 1978 and The Stamp Duties Act, 1976.

International telecommunications is another area of opportunity and Government is now working with the major providers of telecommunications services to develop an effective plan designed to maximise this opportunity. Accordingly, amendments to The Telecommunications Act, 1986 will be introduced in this Session.

Government remains committed to the development of new tourism markets while ensuring that our traditional markets are well serviced. Work is now underway to focus our marketing efforts to ensure that the Island's tourism industry remains competitive. Government is involved in meaningful discussions with a number of entities capable of providing airlift from Europe.

Government has continued its successful dialogue with the major hotel operators in Bermuda and it has been encouraged by the joint initiatives that have resulted. A real partnership has been established, providing a solid platform from which additional initiatives can be launched. Recognising the need to maintain the primacy of our hotels, Government will continue in 1993, the duty advantage given to hotel refurbishment.

Government's cruise ship policy has been proven effective. A fifth, single-port ship has now been secured for St. George's in 1994.

Government's efforts to establish a productive partnership with cruise ship operators and retailers have been successful and this relationship should result in cruise ship visitors having a wider knowledge of Bermuda's facilities and products.

Recognising the change underway throughout the world and, cognisant of the need to ensure Bermuda remains competitive and prepared for the challenges of the future, Government has commissioned two major studies. The Task Force On Employment and The Commission On Competitiveness are now well into their work.

The work of these two bodies will materially assist Government to chart a secure path to the future. That so wide a cross-section of the community is involved in the work of these two groups reinforced the Government's commitment to the development of A Bermudian Consensus .

The world is undergoing a period of substantive change and Bermuda must respond to that change if it is to remain prosperous and maintain its quality of life. Bermuda must not be left behind. Government recognises that such change will pose significant challenges to the entire community, but it is confident that, because of its commitment to working in partnership with the people of Bermuda, it will be able to effectively and successfully manage our Island to respond to the restructuring underway all over the world.

This change is symbolised by the withdrawal of Canadian Forces from Bermuda and by the downsizing of US Forces. A Committee consisting of a broad cross-section of Bermudians is examining the ramifications of this reduction in military presence in Bermuda and will present options for maximising the resulting opportunities.

Government's commitment to working with the people of Bermuda and to utilising the many talents that exist throughout the community is fundamental and this commitment will be strengthened in the coming year.

Government has consulted extensively throughout the community on the subject of human rights and amendments to The Human Rights Act, 1981 will be debated by Parliament this year.

The annual Heritage celebrations have grown from a modest beginning to being a source of great Bermudian pride. Government will continue to promote the celebration of Bermudian culture in 1993 as the City of Hamilton marks its 200th anniversary.

Government has long held that all of its people must have Equality of Opportunity . It is through the guarantee of a first-class education system that this gaol will be further realised. While there is already much to be proud of in our education system, the demands we will face in the 21st Century have reinforced the need for a restructuring of our system.

Government is committed to ensuring that all young people are given the opportunity to develop their potential to the fullest. Government remains committed to its plan to provide a curriculum that is relevant to the needs of the Island; to providing professional development to prepare teachers to deliver the curriculum in a well-motivated, dynamic manner and to responding to the personal and social needs of students and to improving the facilities of Bermuda's schools.

The plans for education reform are well underway and will be supported by the introduction of a new Education Act.

Bermudians are justifiably proud of The Bermuda College. This year, the College, in association with other international, tertiary education institutions, will expand its role by offering degrees in international hospitality and tourism management as well as insurance and risk management.

The facilities of the College will be further enhanced in the coming year.

Government's commitment to working with, and assisting, Bermuda's many sporting institutions will remain a priority.

Government will be seeking to coordinate the many organisations throughout the community which are currently providing assistance and support to Bermuda's young people. In a similar vein, Government will be encouraging even greater community participation in a voluntary scheme to promote healthier lifestyles.

The current economic conditions demand prudent allocation of resources. The Government's commitment to the National Stadium will continue with the construction of much-needed changing facilities. Government also looks forward to a dynamic contribution by the new Trustees and, with their assistance, the forging of new partnerships dedicated to the enhancement of this facility.

Bermuda's constitutional position makes the issue of citizenship complex.

Government intends to clarify this matter by introducing a National Register which will clearly indicate all those who are Bermudian.

Government's commitment to Equality of Opportunity will be further demonstrated by amendments to The Bermuda Immigration and Protection Act, 1956 which will guarantee equal rights for Bermudian women in respect to the Bermudian Status of their children.

Government's commitment to the preservation and Enhancement of the Environment has been clearly demonstrated in the past year and will be further reinforced in the coming year. A comprehensive Waste Management Plan has been introduced and Government will continue its efforts to persuade the entire community to participate in recycling and in the safe disposal of hazardous items.

Government recognises that, whereas some jurisdictions may have the luxury of alternative waste disposal methods, Bermuda does not. The preservation of our water lens, the elimination of the Pembroke Dump and its conversion into a public park are essential. Government has ensured that the output of the mass burn incinerator at Tynes Bay will be monitored by an independent review body so that the health of the people of Bermuda is protected.

Regulations under The Clear Air Act, 1991 will be introduced to Parliament in the coming year. These Regulations will establish ambient air quality standards and will further guarantee independent monitoring of them.

The new Bermuda Plan has been introduced and, recognising the need for public response, Government extended the appeal period. The overall concept of the Plan has been widely acknowledged and Government believes it will greatly assist in protecting the fragile balance between preserving open space and permitting realistic development.

Government has been investing in open space for the community's enjoyment today and for the future. This policy will continue within the context of the Island's economic constraints.

The National Parks Management Scheme is now being implemented and this meaningful initiative to manage our parklands effectively for the enjoyment of all will be further reinforced in the coming year.

Government is greatly encouraged by the marked improvement in Bermuda's fish stocks. It is now clear that the difficult decision Government was obliged to take in eliminating the use of fish pots was correct and was taken in time to save this vital natural resource. Government's successful experimental lobster pot programme will be continued in 1993.

The true success of any country must be measured as much by its commitment to Social Stability and Security as by its economic success. Government is justifiably proud of its significant social programmes which have greatly assisted the people of Bermuda.

Government is concerned about the growing trend of abuse affecting both women and children. No individual should fear for his or her safety in this community and Government is determined to take further action to address this important issue. In particular, Government will be introducing amendments to The Criminal Code in this parliamentary Session.

Government's plan to reduce the amount of arrears owed to single parents has been laid before Parliament and this plan is now being implemented.

A review of the agencies providing accommodation and assistance to the homeless has been completed and new measures, designed to provide further assistance to these less fortunate residents, are now underway. These new measures will include the provision of an additional shelter for the homeless.

Government has undertaken a comprehensive survey of the needs of the elderly and will be implementing recommendations from this survey designed to assist Bermuda's senior citizens lead comfortable, dignified, productive and healthy lives.

Government is committed to the principle of ensuring that all Bermudians in need have access to the basic necessities of life. It has, therefore, prioritised its agenda to ensure that commitment is not compromised during these difficult economic times.

As part of Government's continued commitment to developing effective community mental health programmes, a second group home for the mentally handicapped will be opened in 1993.

Bermuda's Mental Health Act, 1968 has also been completely reviewed and amendments will be introduced in the coming year.

The Review of the Criminal Justice System, now complete, will assist Bermuda in developing new ways of correcting those who, for one reason or another, have fallen into a criminal lifestyle. While Government remains committed to substantial sentences for serious offences, it will seek to place greater emphasis on correction rather than incarceration, wherever possible.

The new Corrections Facility will be completed by the end of 1993. This Facility has been designed to provide programmes to more effectively correct behaviour and rehabilitate inmates. This new Facility will also enhance the security of both inmates and corrections officers.

Government is pleased to note the emergence of community action groups in Warwick and in Somerset such as O.R.S.H.A.D., W.A.R.C.A.G. and S.A.D. This community response is the beginning of what Government hopes will be an Island-wide involvement in dealing with the menace of drugs.

Government now has in place initiatives in the pre-schools, in the education system generally and, indeed, throughout the community, which are focussed, not only on highlighting the negative results of drug abuse, but also improving self-esteem and providing a multi-faceted safety net for those at risk.

Determined detection and apprehension of drug traffickers, harsh sentences including the seizure of assets for those engaging in this kind of criminal behaviour, rehabilitation, assistance and guidance to those in need, education throughout society and community involvement are all elements of Government's plan to deal with the threat posed to our people by drugs.

The National Drug Authority will be formally established by legislation in this parliamentary Session and will form the spearhead of this Island's attack on the use of illegal drugs and the abuse of legal drugs. Government will do everything possible to work with the Authority in mobilising the collective will of the community to eliminate this menace from our society.

Government's report on unemployment insurance will be tabled in Parliament in the coming year.

Recognising the need for input and participation on the subject of financial security for the people of Bermuda, Government intends to introduce to Parliament a Green Paper which will detail proposals to enhance the pension provisions for all residents. Continued from page 4 Government will review current labour legislation, taking into consideration the Report of the Joint Select Committee and the recommendations of the Task Force in Employment. A new Code of Ethics for the workplace, designed to foster trust and understanding, will be introduced in Parliament in this Session. Government will redouble its efforts to promote a spirit of cooperation and trust in labour relations.

The world's economy remains in disarray. These are few concrete signs of recovery in the global economic picture and it is still too early to predict what impact the results of the election in the United States will have.

However, if Bermuda is to be the beneficiary of growth and improved circumstances, it is imperative that we effectively and efficiently prepare ourselves to take advantage of the opportunities which most certainly will come our way.

Government is committed to forging genuine partnerships within the community and it is convinced that the existence of these partnerships will ensure that Bermuda will be ready and able to grasp the challenges of the next century.

In the past year, a number of businesses have been forced to reduce operations, to cut back on hours of operation and to look for efficiencies wherever possible. Government has been extremely gratified by the response of the private sector as it has worked with Government to establish joint initiatives to assist those in need to train and learn new skills. These joint programmes will not only continue in the coming year, but they will also become more innovative and relevant.

Government wishes to express its sincere appreciation to all those businesses which, though faced with declining revenues, have nevertheless continued to provide employment.

Equally, the Government would wish to commend those many employees who have readily agreed to improved methods of productivity; who have accepted marginal or non-existent increases in personal remuneration and reduced work weeks and who have sacrificed a great deal in order to ensure the continued existence of many businesses and jobs. Their sacrifice and contributions have not gone unnoticed.

Bermuda is especially fortunate to have so many people involved in community service. In these harsh economic times, these community service organisations -- many staffed only by volunteers -- have been severely tested. Bermuda can be particularly proud of the way they have risen to the challenge and we all applaud the contribution they continue to make to the wellbeing of our community.

Bermudians in general are to be commended for their practical response to the recession and for the sensible manner in which they are addressing its impact and implications.

Bermuda, in comparison to other jurisdictions, has weathered this recession reasonably well. This has been due to a combination of effective planning, real determination and meaningful partnerships with all those involved. It is this combination which will stand Bermuda in good stead in the future.

Mr. Speaker and Members of the Honourable House of Assembly: The Estimates of Revenue and Expenditure for the next financial year will be laid before you.

Mr. President and Members of The Senate: Mr. Speaker and Members of the Honourable House of Assembly: You will be invited, in the coming Session, to consider legislation which will include the following: The Auxiliary Bicycle (Amendment) Bill The Bermuda Government Scholarships (Amendment) Bill The Education Bill The Human Rights (Amendments) Bill The Motor Car (Amendment) Bill The Roadside Vendors Bill The Marine Board (Safety) Regulations The Public Carriage (Operations and Conditions of Hire) Regulations Tradition allows a few personal remarks at the end of this Speech: And I would like to say that my wife and I count ourselves very fortunate to be living here in this beautiful Island and we are determined to serve Bermuda to the very best of our ability. We are most grateful for all the many kindnesses which have been shown to us since our arrival.

It is a great honour to open Parliament today on behalf of Her Majesty The Queen and I wish all of you well in your future work on behalf of the people of Bermuda.

Mr. President and Members of The Senate: Mr. Speaker and Members of The Honourable House of Assembly: I now declare this Session open. May God guide you in your deliberations.

Governor Lord Waddington.