Income tax has been ruled out as a way to increase revenue to pay for Government?s social policies, according to Finance Minister Paula Cox.

And she pledged that there was enough money in Government coffers to keep paying pensions and will find ?innovative? ways of raising revenue to pay for the Progressive Labour Party?s proposed housing programme.

?There are some issues that we are looking at that might require us to be a bit more innovative,? said Ms Cox. ?I hasten to say that I am not talking about income tax.?

Fears over the PLP bringing in income tax surface every few years, and have been a burden to the party which claim the Opposition, the United Bermuda Party, have used the tactic to scare-monger and put off voters.

Ms Cox?s father, former Finance Minister Eugene Cox, loudly denied reports two years ago that a team of Canadians had been shipped in to look at the possibility of income tax.

This is the first time Ms Cox, who stepped into her late father?s shoes on January 22, has firmly said no to income tax.

Ms Cox made the revelation while speaking about the pension increases announced in this year?s Budget. ?I think the main thing that people should be reassured by is that before we made a decision to pay an extraordinary increase in pension by way of the injection of capital, $2 million, into the contributory pension fund, that we did the forecasting and looked at cash flow projection and felt that was a reasonable and prudent decision,? she said.

?So I think there is no question that we won?t be able to afford to keep paying pensions, even though some may have raised that question in terms of the more recent discussions over the weekend.

?But in terms of how to raise money, I think the Financial Secretary Donald Scott has talked generally about the rationale, in terms of what avenues are open to Government in terms of bonds, but I think we have no particular scheme... of raising money... but if you are talking about generating revenue generally generating revenue, then I think there are a number of policy decisions and the discussions are starting to take place at the ministry in terms of how we look at how we even prepare to look at even next year?s Budget as to where we should be looking in terms of our outlook for the future.?

When asked how the Government was going to fund its housing initiatives ? affordable housing has been on the PLP agenda now for many years ? Ms Cox said they were looking at ways of implementing these kinds of policies without spending an arm and a leg and by looking at renovating existing derelict properties.

?I think you know we put in $1.2 million to the the Minister of Works and Engineering and Housing for the housing for the homeless initiative,? said Ms Cox.

?I also think that while it is not prudent for me to go too far along in discussions about another Minister?s Ministry, I think that certainly as a result of the collaboration, the Ministry of Environment is looking at some of the vacant properties. I think there are a surprisingly large number of properties that are derelict and there are persons who own these homes who have not been able to in many circumstances to manage the upkeep and afford the upkeep.

?There may be opportunities that present itself there in terms of where people may wish to maybe get rid of some of these properties as opposed to necessarily going as your first port of call, building in terms of high rises.

?I think the first principal is you look at what some of the obvious solutions are before you start having to maybe deviate from what might be environmentally friendly. I think that is certainly an issue.?

And she said that the housing issue was also on several different levels, from those in dire straits, to those who wanted to own their own home to a shortage of rental accommodation.

?You also have to deal with those who are actually in a dire straits situation. And I think there are a number of options the Minister of Housing has to take account of because I think on so many different layers there is a housing issue.

?There are those who are in desperate and immediate need, there are those who are potential first time home buyers who may be working in good jobs but unable to buy something that is affordable, and then there are those that need rental accommodation, and I think there is a multi-pronged approach. I think I have given you an overview, the detail you will probably wish to speak to the Minister involved.?