Labour Party had spent a lot of time while in Opposition trying to persuade international business that it would not usher in excessive regulation.

The increase in travel from $71,000 to $125,000 for this year was for ministers and civil servants to attend Commonwealth conferences, Davos, other financial conferences, and contingency funds to lobby overseas if there are any harmful tax developments.

Customs expenditure is set to rise by $368,000 to $9,167,000, with much spent on training. Mr. Cox said the computerised Customs clearing system was running behind schedule.

The redeployment of Customs officers from full-time duty at cruise ships to a roving interdiction service had resulted in increased seizures and arrests, he said.

Customs revenue is projected to increase by $7,654,000 to $184,400,000 in the coming year.

Weaknesses had been identified in the Post Office particularly over the delivery of letters within two days -- and they would be tackled. Post Office expenditure is projected to go up by $87,000 to $4,707,000.

Mr. Cox said it was a myth to say that pension benefits did not go up, as they had increased. He said benefits paid out in the past year were $57 million, while $72 million was collected in contributions.

Income from payroll tax at $175 million last year was $12 million higher than projected due to exempt companies paying tax on actual rather than assumed income, said Mr. Cox.

Government predicts payroll tax revenue in the coming financial year will rise by a further $3.6 million from this year's predicted figure to $178.6 million.