In a luncheon speech to the Hamilton Rotary Club, Bermuda Chamber of Commerce president Mr. Louis K. Mowbray said last week's Budget was "well-designed for current conditions.'' By emphasising spending controls and minimising tax increases, the Budget tabled by Finance Minister the Hon. David Saul "will avoid further restricting the cash flow of individuals and businesses and slowing the recovery,'' Mr. Mowbray said at the Hamilton Princess.

At the same time, the Budget would not result in higher costs and prices. That will help keep Bermuda competitive, he said.

Thirdly, "there is a realisation in this Budget that Government alone cannot create economic recovery and that a cooperative effort is going to be required by everybody concerned.'' Specifically, Mr. Mowbray praised relief to the hotel industry through the sharply-reduced duty on fuel oil and extension of the lifted customs duty on renovation materials.

He noted Bermuda's largest hotels had reported losses of $41.6 million in the last five years. The result was reduced spending on renovations, which "probably almost immediately is going to limit Bermuda's ability to compete with many other destinations that have newer facilities.'' Mr. Mowbray also approved of the $500,000 earmarked to encourage visitors from Europe, "an area that's been somewhat neglected, to this point.'' Lifting of the passenger tax on winter cruise ships, and reduction of the head tax on yacht passengers to $15 from $30 should also help, he said.

There is also relief for small business in the budget, mainly through changes to the payroll tax, Mr. Mowbray said.

And he praised creation of a sinking fund to help repay Government borrowing required to help fund this year's capital spending of $47.7 million.

Because many Bermudians are hard-hit by the recession, Mr. Mowbray said the Chamber also approved of the doubling of social assistance funding to $6 million and the announced $3.5 million in housing allowances.