Government's budget caters for the rich and fails to close the earnings gap between international business and hotel workers, according to the Shadow Finance Minister. Eugene Cox yesterday delivered his reply to the budget and accused the Government of electioneering -- as well as copying many of the Progressive Labour Party's policies. He said Government was beginning the lose the people's confidence and the time was ripe for the PLP to take over the reigns.

However the PLP's budget reply was savaged by Premier David Saul who said it was riddled with trite remarks.

"If ever there was a classic case of the blind leading the blind we have it here,'' said the Premier. "It must have been an effort to get to 16 pages because the padding in here is unbelievable. "We should take a brief look at it and then reject it and treat it with the contempt it is due.'' Premier dismisses PLP's response to budget Last week Finance Minister Grant Gibbons signalled a move towards less protectionism and a decreased Government.

His budget included tax breaks for hotels, a complete tax review, increased spending on education and training as well as three new finance posts to deal specifically with international business.

Police, the hospitals and social care all received more money and although bus and ferry fares will increase by five percent, the elderly and the disabled will go free.

Dr. Gibbons also promised to keep the growth in total Government spending -- which has exceeded economic growth in recent years -- to 2.5 percent and in line with the expected inflation rate.

Yesterday Mr. Cox said: "How can we disagree with ideas that mirror our own? How can we disown our own ideas? How can we disagree with Government's new-found concern for strengthening the family unity? "We have no choice because the UBP Government has shown in the best possible way, imitation being the most sincere form of flattery, that it recognises that the Progressive Labour Party not only has good ideas, but ideas that it has chosen to adopt. Ideas that befit a Government.'' The PLP response ranged across all sectors of the economy laying out policies and ideas.

On tourism Mr. Cox said the PLP would introduce a basket of tax incentives and concessions as well as adjustments to the Hotel Occupancy Tax.

It would remove duty from a wide range of goods to "establish Bermuda as a major duty-free shopping venue'', increase spending on Bermuda's overseas sales teams and bring in a sixth cruise ship, operating on weekends.

Mr. Cox said there was also a need to address the disparity in incomes between tourism and international business.

"If we want to seriously review what is happening from an income generation standpoint we must look at the disparity that exist between these twin pillars of the community.'' On tax and Government spending, Mr. Cox said he welcomed the tax review and pledged to increase the role of the Auditor to examine spending.

Mr. Cox called on Government to study the benefits of year-round schooling and alternatives to the schools current three-term system.

He also called for increased use of school buildings to give Island-wide access to people interested in continuous learning.

A National Youth Corps could be developed through the Bermuda College and the Regiment to help the young and funding was needed to provide community centres in strategic locations.

There was also a need, he said, for the Commission for Unity and Racial Equality to act as Government's official watchdog.

People must also be offered retraining to cope with changes in the economy.

"The budget is perceived to establish a two-tiered form of economic justice, one for the rich and the other for ordinary people,'' said Mr. Cox.

"A PLP Government will clearly demonstrate what an innovative and entrepreneurial Government involves.

"Firstly we will be innovative and secondly we will demonstrate marketing initiatives which are pro-active and will give priority to the needs of our people.'' The Premier scathingly dismissed the PLP's response to his Government's budget.

Dr. Saul rubbished claims that the budget was aimed at the rich and that it was an electioneering tool.

The budget, he said, earmarked hundreds of thousands of dollars for youth and sport, people's safety on the roads and free transport for the elderly.

A scholarship fund for students had also increased by 100 percent to $4 million, he said.

"Last year's budget set this Country on a road that allowed us to grow over the previous 12 months.

"Government's budget sets out a plan, not little trite statements, so we can grow over the next 12 months without any increase in new taxes,'' said Dr.

Saul.

"This budget is a very, very good one. There is little doubt that the policies contained in it and the programmes set out in it will keep this country on course as we go forward.

"I do not think we will see an Opposition Government for many, many years to come. I ask the people of Bermuda to look at the budget speech and look at the budget reply and make up their minds on the clear evidence that is before them.'' GRANT GIBBONS -- Finance Minister is shown briefing the media on his budget last week.

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