The cost of Hurricane Fabian to the public sector is $45 million, according to Finance Minister Eugene Cox.

This includes $2.2 million for re-building the Causeway and $1.8 million for the emergency services, Mr. Cox said yesterday in his half-yearly update in the House of Assembly.

?The damage to infrastructure, buildings and equipment was substantial and has been estimated at $46 million in total,? he told fellow Members of Parliament yesterday.

He added that of that figure $30 million was insured, and may even be higher as there are still surveys being undertaken to look at damage to buildings.

The estimated cost of the damage to Bermuda overall from the hurricane that hit at the beginning of September stands at between $200 to $225 million.

The estimate states that between $120 to $125 million is being paid out for buildings and goods insured with local insurance companies and between $80 and $100 million insured overseas.

Mr. Cox said that in all, 850 public buildings and sites had to be surveyed after Hurricane Fabian and some were still being surveyed by engineers and the cost may still vary.

?While the process of loss-adjustment is still underway, Government anticipates that the vast majority of these costs will be met by insurance,? he said.

And he said that Government expects to be out of pocket by $16 million, with the money spent on operational expenses and uninsured items such as roads and some infrastructure. Mr. Cox said for example, the sea wall at Boaz Island and the cruise ship dock at Dockyard were included in the figure.

Mr. Cox also pointed to the economic impact of Fabian, with the decline in visitor numbers and therefore visitor spending.

He said: ?One of the real frustrations in the hospitality sector is that the possibility and potential for a good year in tourism in 2003 was wiped out by Hurricane Fabian during those 12 fateful hours on September 5, 2003.?

Visitor spending fell by 2.9 percent to $303 million for the first nine months of the year compared to $312 million for the same period a year earlier.

And he said visitor numbers and expenditure were expected to remain low in the third and fourth quarters of the year.

Damage caused hotels to close which resulted in about 20 percent of the capacity in the hotel sector, equivalent to 1,200 beds.

?This has given rise to short-term structural unemployment in this area,? he said, adding that the ?financial hardship resulting from the job losses? was partially mitigated by an agreement between the hoteliers and the Bermuda Industrial Union to move as many workers over into recovery and restoration work.

?Nevertheless there will be some job losses and earlier than normal seasonal layoffs. Restaurants, merchants and other sectors catering to tourists will also experience weakness due to the loss of air arrivals.

But he said that these losses would be offset by merchants and suppliers providing building supplies, furniture and equipment.

And also construction, landscaping, painting and other trade sectors had made significant gains following an increased demand for their services.

?I conclude by saying that Bermuda is standing up to the economic and financial challenges left by Hurricane Fabian.