Finance Minister Paula Cox will deliver her third budget on Friday in what could make or break Government's credibility on delivering its "social agenda".

Government has already pledged money for replacing the Salvation Army Emergency shelter and pundits have zeroed in on housing as the key issue. Political scientist and PLP supporter Walton Brown said: "There needs to be innovative thinking and funding to create affordable housing for people."

He said those struggling to pay inflated rents were generally PLP core supporters who expected better.

"There is significant frustration. There was a reasonable expectation by people that the PLP would do something to help them."

Bermuda Public Services Union leader Ed Ball agreed housing was a very ticklish issue and he urged more high-rise building for those who couldn't afford the huge prices for traditional homes.

Opposition finance spokeswoman Patricia Gordon-Pamplin agreed a major boost was necessary for housing.

"The Premier will have to do something significant given that in the last few years very little has been put into construction of housing ? low cost or otherwise."

"It's the most pressing social issue."

Tackling the whole issue of poverty was something Government had done little with, said Mrs. Gordon-Pamplin, with one third of the nation poor or near poor according to 2000 census figures.

More needed to be done to protect dwindling job opportunities for locals said Mrs. Gordon-Pamplin.

"It's time for Government to put up or shut up."

Family Centre executive director Martha Dismont said she hoped some of the extra money Government has racked in recently could support families who were put under tremendous financial strain by high prices and had to work several jobs just to keep up.

She said: "Higher taxes will continue to break the back of not just families but also local businesses."

The issue of unemployment insurance, flagged up years ago by Mrs. Cox's predecessor Eugene Cox, could be addressed this time around although Mr. Ball said he would be surprised to see action.

Asked about his general hopes for the budget he said: "We don't want to see any more increases in the usual taxes ? TCD, land tax ? anything that basically takes away the gains unions have been trying to negotiate."

He said inflation needed to be held in check otherwise unions would be pushing for more in compensation.

The BPSU leader also hoped for a boost to education funding to build the "three Rs" after noting youngsters were leaving school without the skills to get jobs.

Meanwhile Walton Brown said Government would need to give financial teeth to Wayne Perinchief's National Drug Control Ministry which is tasked with fighting the drugs scourge.

"That minister needs a budget to get things done. They need to demonstrate they are serious."

The growing shortfall in the Government pension fund ? which had hit $44 million last year ? needed to be addressed said Mr. Brown. And he said Government needed to turn attention to tourism as infrastructure, marketing and service were all concerns.

"We don't have a vibrant enough night life. We have not had a new hotel since 1972. We need to target people who can afford Bermuda as a vacation."

Asked what Ms Cox might be planning on Friday he said: "She has always demonstrated a cautious approach to money. You are going to see that continue.

"You won't see vast expenditure without the underlying revenue to support it."