A story in yesterday's newspaper incorrectly named Derrick Burgess as Finance Minister. The Finance Minister is Grant Gibbons.

Union president Derrick Burgess last night called on Finance Minister Derrick Burgess to resist pressure to trim Government spending by increasing privatisation.

But others insisted a leaner Government was vital for the well-being of the whole economy.

And many pointed to struggling tourism and the embattled retail trade as areas which need urgent attention.

Bermuda Industrial Union president Mr. Burgess delivered his eve-of-Budget warning after calls from the business sector to cut down on the cost of Government -- without raising taxes.

He said: "I would like to see Government create some jobs and keep people employed.

"It seems like there are some tendencies pushing towards privatisation.

Government should not be involved in privatisation.

"Bermuda is small -- if you put people out of work there is nowhere for them to go. There isn't much industry in the Country.

"Government should not consider any privatisation in any form. They should be trying to create work and keep people employed. It's not good to have our streets filled with the unemployed. That's not good for any Country.'' Last month, a Bermuda Institute of Directors said Government should cut spending and review the tax system.

The committee report recommended a business plan for all Government departments and a hard look at hiving off some to the private sector.

Other money-spinning suggestions included a look at a whether a national or international lottery could operate on the Island.

Bank of Butterfield executive vice-president Stephen Kempe said his gut feeling was that the Budget would tinker with the economy rather than offering anything ground-breaking.

But he added that the business community would expect to see some Government good housekeeping.

Mr. Kempe said: "We would all like to see Government doing its share of belt-tightening, ensuring that Government is getting value for money, that it's seen to be ensuring its costs are under control and cutting back where necessary as the local private sector has had to do and is continuing to do in order to make ends meet.'' But he said areas where Government intervention was needed were tourism and the retail trade.

"Whether they have been able to accomplish that, only time will tell. But I sincerely hope the Budget will reflect that and the importance of international business to the community.'' And he said the entire tax structure of the Island needed a long, hard look.

"Government needs to look at its share of the economic pie and where that comes from -- it's time to take a real serious look at that.'' Mr. Kempe said he hoped not to see an increase in the bank licence fee.

He added: "We are already paying $1 million a year, which was plucked out of the air and has no basis in the profitability, size or anything else of the banks.'' Bank of Bermuda executive vice-president Henry Smith declined to make any comment before the Budget provisions are known.

H.A.&E. Smith president Roger Davidson said he was adopting a wait-and-see attitude -- but backed calls for a slimline Government.

He added: "What we need is creative thinking in the way the Island is governed. Government is too big....it just becomes increasingly expensive while the people paying the taxes have smaller levels of sales and/or income.'' Budget predictions Trimingham's president and Bank of Bermuda chairman Eldon Trimingham said: "I'd like to see something to help tourism -- there are a very large number of people employed in the tourism industry.

"The Tourism Ministry has a problem and I would expect the Budget would go some way to addressing that.'' And he said a reduction or abolition of duties on general merchandise was needed to ensure Bermuda stayed competitive -- plus an end to retailers having to pay duty before selling their goods.

Mr. Burgess added he would also like to see proper unemployment benefits -- particularly for the seasonal hotel workers.

He said: "The season is short -- shorter than it used to be. Seven or eight months employment isn't good at all when you have to live 52 weeks a year.'' Mr. Burgess added that the employers' tendency was still to complain about high labour costs.

But he said: "There is a lot of mismanagement and there are a lot of expenses created with that -- there are not a lot of cases but there are some.

Everybody talks about the cost of labour and it's always the fault of the staff.'' And he called for a greater recognition that everybody must shoulder a fair share of the burden of Government services.

Mr. Burgess said: "Government can't pay it all, employers can't pay it all and workers can't pay it all. Everyone has to pay a fair share based on what they can afford to pay.'' Bermuda Public Services Association general secretary Eugene Blakeney said he would be more inclined to comment after the Budget was announced.

But he added: "We just hope it's more of a working man's Budget this time.

"People are concerned at all times about taxes and sometimes they feel it's an unequitable distribution.'' Shadow Finance Minister Eugene Cox refused to comment in advance on the Budget or on what he would have liked to have seen in it.

But Bermuda Hotel Association executive vice-president John Harvey said he hoped Government would not impose any new burdens on the struggling hospitality industry.

He added: "I would like to see some features which will get us more business with regard to air arrivals.

"There has to be a sincere effort directed towards getting our regular arrivals up. The trendy thing at the moment seems to be pleasing cruise ships.'' Bermuda Chamber of Commerce president David Rowntree said he hoped the Budget would be dynamic not dull.

And he echoed called for changes in the tax structure for the ailing local business community.

He said: "We are looking for some tax relief and some relaxation in some of the duties on imported goods.

"What we want is a Budget which puts us in a more competitive position. But we are not proposing a system where we would do away with something entirely.

What we we are looking at is an easing of up-front commitment by the retailer and something a bit down the road being introduced instead.'' The Royal Gazette will carry the full text of the Budget speech via the Internet today. It will be available at noon by keying in http://www.accessbda.bm/gazette.htm As in previous years, Deloitte & Touche will also have a Bermuda Budget Release on the Internet at noon. The address is www.deloitte.bm GOVERNMMENT GVT TAXES TAX