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Gibbons to warn of fragility of economy

The Opposition will today go on the offensive in its first-ever reply to the Budget.And they will kick off next week's debates on individual Ministries by putting Premier and Education Minister Jennifer Smith in the spotlight.

The Opposition will today go on the offensive in its first-ever reply to the Budget.

And they will kick off next week's debates on individual Ministries by putting Premier and Education Minister Jennifer Smith in the spotlight.

Shadow Finance Minister Grant Gibbons last night confirmed he is to come out punching when the Speaker calls "seconds out'' in the House of Assembly this morning.

But he was staying tight-lipped over his precise line of attack when he takes on Government.

But it is understood Dr. Gibbons will concentrate on a world view -- and the potential impact on Bermuda -- rather than focusing on Ministerial spending.

Dr. Gibbons said: "It would be fair to say we've taken a closer look, as you would expect, and taken points out which may have escaped the more casual reader.

"We've also tried to put this Budget and Bermuda's economic future into a broader, more world context, which is particularly important for the tourism and international business sections, which is very important for Bermudians.

The PLP unveiled a Budget which will spend an extra $17 million -- but without raising taxes.

Finance Minister Eugene Cox predicted continuing growth in the economy at a "conservative'' real rate of two percent, based on upbeat predictions for the performance of the US economy.

But The Royal Gazette understands that the thrust of the reply will hammer away on the theme that the PLP have failed to take account of world conditions -- and the fragility of the current prosperity being enjoyed by the US and Europe.

Dr. Gibbons said: "While it's comforting to try and block out the rest of the world, it's really clear to those in tourism and international business that we depend on customers from outside Bermuda.

"We've got to take account of what's going on in the global sphere and translate that into the impact on Bermuda, Bermudian business and those who live and work here.'' Dr. Gibbons added: "I've tried to take a more economic view rather than the very political view that a lot of past responses have been -- but that's not to say there won't be politics in there.'' And he said: "It's an interesting challenge to be responding to a Budget for a change, as opposed to producing them.

"But, equally, that will give us a slightly different perspective compared to someone who has never done one before.'' The series of debates on individual Ministries and areas starts on Monday, with the UBP opting to put Ms Smith in to bat first for Government.

And that could be a calculated ploy to allow her to set the tone for Government's handling of the Budget debates.

The set-up under the UBP was a sore spot with the PLP when they were in Opposition as they claimed Government used up too much time of the alloted hours -- leaving Opposition figures too little time to get their teeth into the issues.

The UBP -- which sets the allocation for debate out of a total of 42 hours -- will devote four hours to Education on Monday, although Ms Smith will speak first.

Monday afternoon sees three hours spent on the Environment Ministry, while next Wednesday starts with a four-hour debate on the crucial Tourism Ministry, followed by three hours on Transport.

Budget Debate Preview: Page 9