Economic Co-operation and Development because of its restrictive business practices.

Many of the practices violate the OECD's aims, Finance Minister the Hon. David Saul told an accountants meeting yesterday.

And among the opportunities it was missing was the opportunity for local companies to trade in another jurisdiction on an equal footing with the companies of that jurisdiction.

"If we are to take maximum advantage of the potential to expand our international business sector, such opportunities will be essential,'' he said.

There were risks, though, associated with the re-examination of Bermuda's current protection policies.

But, with a domestic market of just 60,000 people, Dr. Saul said it was "unlikely'' there would be a rush of foreign companies wishing to establish in Bermuda.

He also did not believe there would be a surge of companies coming to Bermuda for the advantages of setting up offshore.

"That was the argument when the trust company legislation was being developed,'' he said. "I believe such a fear is as false today as it was then.'' he said.

"Bermuda is at an economic crossroads. It can either remain on the sidelines of the world economy and run the risk of being gradually frozen out of many of the new developments of the 1990s.

"Or it can rise up to the challenges of deregulation and liberalisation in order to be an active player in the wider world and thus ensure economic prosperity as we enter the 21st Century.'' Earlier in his speech to the Institute of Chartered Accountants of Bermuda, Dr. Saul said the world recession had "shaken Bermuda out of its lethargy''.

"I believe that, in time, we will look back on the last few years and see the recession as a watershed in our economic development,'' he said.

"It has challenged the premise that `what has served Bermuda well in the past will continue to serve Bermuda well in the future'.

"It has dispelled some of the complacency which was undermining our ability to move forward.'' People longing for the "good old days'' must be "shunted aside'', said Dr.

Saul in a hard-hitting speech.

"Bold, experienced leadership is what Bermuda needs to move forward with a bright future,'' he said.

Dr. Saul was remarkably frank about the future of Bermuda's international business community.

"There are clear signs that this sector is maturing and we would be deluding ourselves if we were to expect rapid expansion in the 1990s.

"Bermuda does not have the land mass or the population to enable it to become a major international financial centre, even if such a development was desirable, which I doubt, or if there was the global demand for another such centre, which I doubt even more.

"Furthermore, Bermuda does not have the required infrastructure, or sufficient skilled manpower, for it to continue indefinitely to develop as an international business or financial services centre.'' This sector could grow, though, by upgrading existing products and identifying new areas to move into.

"To do so will require a very tight control on costs by local professionals and Government alike to ensure that our competitive position is not eroded,'' he said. "Also required is aggressive yet controlled marketing and promotion of Bermuda while, above all, an open-minded approach towards new ideas and changing practices is absolutely essential.'' Dr. Saul said it was important that the local public realised the importance of the "significant economic contribution of both international business and, especially, of the non-Bermudian workers who come to support international business through an extensive education programme''.

"Much is already being done to improve the working relationship and communication between international businesses, the local firms which provide these businesses with services and with the Government.'' On tourism, Dr. Saul said considerable changes were taking place.

"The global over-capacity in tourist infrastructure and the opening of the East European countries is prompting some shift in American vacation plans,'' he said.

"As the US dollar surely appreciates against European currencies in the next few years more Americans will be encouraged their `old ancestral homeland'.

"To this must be added the impact that the opening of Cuba, a vast slumbering tourism giant, will have on island holiday destinations.''