that Government has misled the Island over the state of the economy.

The Hon. David Saul said Government had a proven record in correctly forecasting the Island's economic condition and in communicating its assessments and warnings to the population.

"To say that David Saul has not been warning the population is baloney,'' he said. "I think sometimes the population has become a little tired of it.

"Even I have got tired of my own voice saying for 3 1/2 years that we'd been spending like drunken sailors, that we would have to cut back our spending.'' Dr. Saul was responding to criticisms by Opposition counterpart Mr. Eugene Cox who said the Minister had misled people with statements not born out by measurements of economic performance.

In particular, he chastised the Minister for saying last month that things were looking up when first quarter economic results released this week showed the economy performing at historically low levels.

Dr. Saul said his comment on the improving economy was made in April -- after the first quarter -- and when the economy was finally showing signs of performing better than 1991 and 1990.

The Minister welcomed Mr. Cox's warning that people exercise thrift and minimise consumption.

"We're pleased that the Opposition finally seems to understand this is a difficult time,'' he said. "I wish they would say a few words to their friends in the Bermuda Industrial Union for a more sensible approach to their talks with the hotels and to exercise more thrift in their demands.'' Dr. Saul referred to Government's last two Budget statements to defend against Mr. Cox's charge it was misleading the population.

Government in the 1991 Budget, he said, warned the coming year would be difficult and that it would not be possible for "the majority of us to achieve an improved standard of living in the immediate future''.

"Indeed many of us will be lucky to retain even our current standard of living,'' the document said.

This year's Budget warned that Bermuda's economic recovery was tied to that of the United States, that recovery would be "extremely slow'' and not occur until the second half of the year.

"Government itself has basically recognised difficult times and it's gone out to help people,'' he said.

The Minister outlined six areas Government had moved to ease the blows of economic recession: More than $600,000 spent by Works and Engineering on job creation operations; $70 million committed to Government construction jobs; Community Affairs Ministry regular seminars on household budgeting and helping people with job-searching skills; Labour Ministry job-finding assistance through the employment bureau; and "millions of dollars in spending'' on direct social assistance through Social Services.

The Hon. David Saul.