companies if work permits were curbed.

Guest workers had helped Bermudians propel the Island to the forefront of global economic achievers.

And governments should be wary about restricting permits for categories of workers which Bermudians could not replace.

Sir John said Bermuda's economic success had made it a first world nation which could successfully manage its affairs.

And providing the keys to this success in the next century were essential if the Island was going to continue reaping the benefits a strong economy provided.

"The quality of Bermudian society is directly linked with the strength of its economy,'' said Sir John.

"Without a strong economy we would not have been able to make the social and political progress that we have made over the years,'' he said.

This "unprecedented'' economic success, especially over the past 25 years, had allowed Government to work with the people of Bermuda -- whether they be local or foreign -- to create one of the highest per capita standards of living in the world, said Sir John.

"Bermudians are fully employed, better schooled, better housed (2.4 people per average household) and more travelled than any other country in the world,'' said Sir John.

Over those 25 years more than half the Island's budget had gone on education and social services, he pointed out.

"As a consequence, a higher percentage of our people finish tertiary education than most other countries,'' said Sir John.

He added: "A key feature of our Bermudian identity has been our willingness to support both the promising -- with a tremendous array of scholarships and training -- and the vulnerable (those who are less able to compete for life chances) by social services programmes.'' And this economic and social progress provided employment, noted Sir John, which gave people purchasing power and the opportunity to contribute to The Island's economic growth.

They in turn benefited from that economic growth by learning new skills and using them to earn more and enjoy that higher level of income, he said.

On the eve of the Millennium, the keys to this growth had to be reinforced to ensure they were applied in the future.

Those keys, continued Sir John, included ensuring the Island: continued to have good stable Government; ensured that students and the next generation of workers have the skills necessary for jobs in the new digital economy; had a judicial system that works well; had an economy open to foreign investments and foreign participation; had a Government which minimises controls over businesses but continues to supervise financial institutions to international standards; and provided greater transparency of all our affairs and availability of economic information which spurs effective business decision-making.

The rest of the world had always admired Bermuda for its high integrity and standards and as the Island approached the 21st century it was important that it continued to employ the creativity and common sense which had served it so well, said Sir John, including the principles of good Government, peace, order, tolerance and respect for diversity.

"Our Country is made up of Bermudians and thousands of people from around the world who have pieced together a rich and complex mosaic, and who can take credit for our remarkable success,'' he said.

This status was achieved without natural resources but through the vision, intuition and hard work of Bermudians, guest workers and the Island's international supporters, he said.

And Government should not play with the balance of input from these three sources too much or it could have dire consequences.

Work permits warning "For example,'' he said, "when governments limit work permits for categories of workers that they cannot get locally, companies just shift the work overseas.

"Very often this leads to a loss of work for local workers and/or the company leaves the jurisdiction.'' The quality of society the Island enjoyed would never have been reached if it were not for the strength of the economy, he stressed, but it was not a Utopia as it still had societal issues which demanded attention.

But Sir John pointed out that: "Bermuda, warts and all, is better able to deal with these issues than most other countries in the world because of the strength of our economy, institutions and the benevolent nature of our people.'' Institutions such as Parliament, the courts, the Human Rights Commission, the Public Service Commission, trade unions, municipalities and charitable organisations provided careful management of Island affairs and this sent good messages to the outside world, he said.

"How we manage our economic, social, political and legal issues or indices are indicative of a first world country,'' said Sir John.

CAPITAL PROJECTS Capital projects Government has achieved a number of significant capital projects during the past 25 years which include: Building the Bermuda College and Stonington Beach Hotel; Revitalising Dockyard; Building the incinerator at Tyne's Bay which is allowing Pembroke Dump to be turned into a park; Upgrading and taking over all responsibility of the airport; Upgrading King Edward VII Memorial and St. Brendan's hospitals; Building the bus garage at Palmetto Road; Building CedarBridge Academy; Building Westgate Correctional Facility; Upgrading all public schools; Improving roads and amenities; Improving public transportation systems; and Putting Bermuda at the forefront of having access to cable, technology and telephone networks.

BENEFITS FROM THE US Benefits from the US The Island is fortunate to have the United States as a neighbour due to what the two countries share economically, culturally, historically and linguistically, said Sir John Swan.

He noted the following points: Eighty-five percent of the Island's tourist trade comes from the US; Most of the exempt companies domiciled in Bermuda have their origins in the US; The vast majority of goods are imported from the US; A very favourable tax treaty exists with the US; Bermuda's currency has the same value as the US dollar; The overwhelming majority of Bermudians go to the US for their tertiary education; The US is the country most visited by Bermudians; The strength of US cultural influence on Bermuda; and Historically Bermuda and the US are two vines growing from a common British root.

Speaking out: Sir John Swan IMMIGRATION IMM