The Bermuda International Business Association, an organisation that works with companies that provide services to the Island's international companies, won't be getting any more money from Government this year.

Finance Minister Paula Cox said not increasing the $1.65 million grant to BIBA would allow Government to itself play a greater role in marketing Bermuda as an international finance centre.

In a post-budget Press conference on Friday, Ms Cox said Bermuda was going to raise its profile in Washington and London. Government has set aside $1 million for the marketing initiative, which will include hiring a designated person to drive the effort, she said.

"While BIBA is grateful for its funding, we are disappointed not to have received an increase in our budget which at least accounted for inflation," BIBA chairman Lloyd Wiggan said in an e-mailed statement. "International Business is the engine which drives our economy and BIBA works hard to ensure that Bermuda remains a key player in an ever increasingly competitive global market."

While some in the international business realm said a push for more Government-to-Government diplomacy was a positive development, a more independent body, like BIBA, also has an important role to play. BIBA, as a Government quango, is viewed as being largely independent, something valued by businesses seeking unbiased information on doing business on the Island. The association includes participation of many of its member companies, including in overseas sessions to provide information on the business climate here.

Raymond Medeiros, a partner with PricewaterhouseCoopers, and a former chairman of the Bermuda International Business Association, said BIBA has been "pushing to have a closer link with Washington. In my view this is a step in the right direction." However, he said BIBA could face a cash crunch that may be helped by careful budgeting but ultimately could limit the extent it can be involved in overseas efforts. "BIBA is not going to be able to do it with their budget not having increased in several years," he said. "BIBA won't be able to do everything that they would have liked to do, but Government is going to jump in and do some things in Washington."

BIBA is now looking at how it can assist Government in its plan to more directly market Bermuda, Mr. Wiggan said. The body has "already identified and submitted our blueprint to the [Finance Ministry of new and expanded markets that we believe are of huge potential benefit to the jurisdiction.

"We look forward to continuing to work closely with the Ministry in the best interests of our country and furthering Bermuda's standing in the global business arena."