business support for Government's Budget.

The Hon. Sir David Gibbons said the document was "very reasonable'' under the circumstances.

"It's always unfortunate to have to increase taxes, but by and large adjustments have been made to reflect the minimum rate of inflation,'' the former Premier and Finance Minister said yesterday.

The Budget included increases in sin taxes, residential land tax, the hospital levy, vehicle licence costs, and most Government fees.

The phased easing of exchange controls in the Budget was "the correct thing to do'', Sir David told The Royal Gazette .

"Any case there would have been for the complete removal of controls was overtaken by the sudden emergence of this consideration of Independence,'' he said. "With the ensuing uncertainty, there could be no question of removing (controls) entirely.'' Sir David shared Dr. Saul's confidence that income from overseas investments would become a third major source of the Island's foreign currency.

"Hopefully, this will encourage a move away from the consumer-oriented philosophy which certainly has developed here over the years'', and more people would be encouraged to invest and save, he said.

The announced tax increase on wines and beers was the only Budget measure that Sir David mentioned as a source of concern.

The prices of alcoholic drinks in Bermuda were "fairly high,'' and "continuing increases in the prices of wines and beers and spirits is not a good thing''.

Wine and beer were part of the Bermudian lifestyle, and the drinks enhanced holidays for visitors, said Sir David.

"One has to be careful about further increases in cost, in so far as the hotels in particular are concerned,'' he said. As for tobacco tax increases, "as far as I'm concerned, the sky is the limit'', he said.