mediocrity, Chamber of Commerce international companies division chairman Tony Goodfellow said yesterday.

What the Island does over the next few years will "determine whether we are to be the success story of the 90s and the new millennium or abject failures,'' he said.

Mr. Goodfellow, also managing director of Rothschild Trust (Bermuda) Ltd., spoke yesterday at the Hamilton Rotary Club luncheon at Pier 6.

As evidence of the success so far, Mr. Goodfellow cited the financial and employment benefits international companies have created in Bermuda.

The latest Archer Report showed of the 8,720 international companies registered in Bermuda, three percent, or 274, had a physical presence. That three percent accounted for 84 percent of the $527 million spent in Bermuda by international business.

International companies generated total income of $750 million with one-third of the Island's work force affected by international business.

As many as 100,000 visitors may be international business related, he said.

To foster success, Bermuda must now address several issues from franchises to education, from crime to drugs, he said.

Mercifully, crime appears to be subsiding but on franchises, he said that: "Already this has taken up too much of everyone's time and is causing nothing but amusement overseas.'' Mr. Goodfellow said Bermuda must also address: Payment of payroll tax by international companies on the Island which raised the cost of doing business.

Shortage of places in private schools.

A dramatic increase in crime and drugs, the former now mercifully reversed.

A proposal that management be invited to join the Bermuda Industrial Union.

"Whilst the delicacy of this situation is fully appreciated, the whole essence of management is that is should be free to do just that -- manage.

"Were such a proposal to be adopted, one has to question whether that would assist in the pursuit of excellence,'' he said.

Mr. Goodfellow also said that the proceeds of crime bill may have gone too far, specifically, the potential imprisonment for someone who has any suspicion of related crime and fails to report it.

He also said that there are too many committees and task forces.

They "seem to take an undue amount of time in their deliberations and whose recommendations do not always see the light of day.'' Bermuda at crossroads: Goodfellow Efforts to speed up the company incorporation process, first discussed in April, have not materialised and needs to be addressed, he added.

And on the expansion of financial services, he said there is an "urgent'' need for legislation, for example, to cover investment services and uncontrolled visits by overseas investment managers.

He also said that there needs to be relaxation of non-Bermudian ownership of land rules.

Some progress has been made on the long leasehold of commercial property and we "believe that serious consideration is being given to some relaxation of the rules on residential property. It does seem reasonable to allow a further limited number of empty dwellings, some empty for a considerable time, to be available for purchase by non-Bermudians.'' CLUB CLB