Budget Statement.

Finance Minister the Hon. David Saul announced plans to reduce the ten percent overseas investment tax to a quarter of one percent in Statement in the first step towards exchange control de-regulation.

Bank of Bermuda senior vice president Mr. James Masters, said his bank has dedicated three people full-time to answering the telephone calls and delegating the enquiries to the various investment specialists.

At the Bank of Butterfield, Mr. Preston Hutchings, director of Butterfield Asset Management, says that many people see foreign exchange earnings for the long term as a cushion against a troubled future economy. Like many investment firms, the Bank of Butterfield is also gearing products toward smaller investors.

Emerald Financial concentrates on overseas investments in mutual funds.

President Mr. David Bolden said: "We've seen a dramatic increase in business already.'' "It's a great time in the investment industry,''said Kast Investment Management president Ms Anne Kast. "And it's clear that the small guy knows that there are investment products that can be tailored for him.'' Mr. Andrew Doble, President of Ardent Investment Management says the only problem is how to sell large assets, like property, with a view to moving funds into an overseas investment.

He agreed with Mr. Jeff Conyers of First Bermuda Securities, who observed: "What's encouraging is that although there are people ready to talk to us, there's no avalanche of money ready to flee the country.'' Mr. E.T. (Bob) Richards, chairman of Gulf Stream Securities and president of Bermuda Asset Management, said there would be real competition for the Island's investment dollar, adding: "It's got to be good for Bermuda.'' Still, Mr. Shaun Davis at Performa Securities and Bermuda Investment Advisory Services' Mr. Mark Melvin, are unconcerned about the risks of the flight of capital, even if the $25,000 cap is doubled or trebled.

Mr. Davis said the figure is no longer substantial in today's terms.