Chamber of Commerce president Phil Barnett has welcomed what could be a freeze on taxes on businesses as hinted at by Finance Minister Paula Cox.

This follows a statement released by Ms Cox earlier this week saying that the Government's "desire to assist in this challenging economic environment requires us to avoid imposing any increased financial burden on people and businesses". She added that the effect of this would be to limit the potential for revenue rises in 2009/10.

Mr. Barnett also called for the creation a duty free shopping structure for luxury goods in Bermuda and sought assurances from Government to see through its Hotel Development Act.

And he also gave his backing to Ms Cox's suggested budget cuts of 10.5 percent per Ministry, which could trim $110 million off last year's spending figure.

David Ezekiel, chairman of the Association of Bermuda International Companies, also expressed support for Ms Cox's comments and said a well thought-out, long-term plan to trim the civil service was needed.

"I think it is a no-brainer to say that business would obviously more than welcome, but expect that there would certainly be no new tax increase," Mr. Barnett said.

"It is important for the Minister to think of opportunities to spur growth and entrepreneurs, whether there is the possibility to create a duty-free shopping structure for world luxury items here in Bermuda, and just obviously to continue with the programme that they have in place as well as to have a reassurance that the Hotel Development Act and the new retail rejuvenation plan and those places it includes would continue for the future because it is incredibly difficult for business to compete in this difficult economic environment.

"A lot of it is due to factors beyond the control of hoteliers, restaurateurs and retailers simply because of our position as an island in the middle of the Atlantic and the infrastructure and our high cost of living."

Mr. Barnett said Government always needed to look at ways of reducing its expenditure and weeding out unnecessary jobs, and that he would be concerned if it was intending to increase its number of civil servants.

"I think like any good sound business plan, certainly it would be concerning to learn that the civil service is being increased and supposedly there are a few positions that are being looked at to be filled in some programmes," he said.

"I think there has to be a real focused effort to trim expenditure where possible and I think we need to look at streamlining the civil service.

"There are some departments which are overworked such as Immigration. However, I believe that there are places of waste that can easily be eliminated and I would hope that the government would work very closely with the BIU(Bermuda Industrial Union), BPSU(Bermuda Public Services Union) and other unions to work out where those places are and ensure that they are cut out."

Mr. Ezekiel said Ms Cox's plans were spot on and addressed the reality of the situation.

"Ithink really there is no room for inflation because just given the state of the financial market and the property market people are absolutely thrilled if they have been able to stand still," he said.

"A great deal of people are just relieved at having in the bank close to what they had at the beginning of the year.

"I think her (Ms Cox) targets here display her background in this area I think they will strike a good chord with people looking to do exactly the same in their business."

And he reckons the size of the civil service need to be balanced with the needs of its employees."We have always questioned the size of the civil service and believe that a long-term plan to trim it needs to be well thought through because jobs are important for people and especially in a country this small the ability of the economy to do well is important," he said.

"But I think it could be managed by attrition and there is a private sector that for the most part is looking for qualified people and that absolutely has to recognise that at this stage hiring is pretty much frozen everywhere and so it is good to know that is in Government's long-term plan and needs to be balanced alongside the needs of individuals."