effect from its conception.

And, according to its chairman Mr. Mansfield J. Brock, the mere fact that the Commission on Competitiveness came into existence was a boost to the ailing economy.

Figures prove that Bermuda prices began to improve competitively against the United States in 1992, when the Commission was formed by Premier the Hon. Sir John Swan.

For the first time in more than 20 years, the Island's Consumer Price Index was below that of the US.

The CPI reflects the cost of living. The report explains: "If our prices, over time, rise faster than the US, then we will be perceived as being expensive relative to what our major customers expect in their own country which will impact on their decisions to do business or travel to Bermuda.'' Bermuda's CPI stayed above the US figure between 1968 and 1992. Since then it has fallen below.

Mr. Brock said: "The possibility is that in 1992 we finally started to address the situation because we were focused on how we could improve the situation.

"Some people have explained this as being a result of the recession, but there were recessions in Bermuda in 1973-4 and 1981-2 and they had no effect on the CPI.

"The only explanation for the improvement must be that the very existence of the Commission and the Task Force on Employment have helped the country.'' Certainly many of the recommendations from the Commission's report, which was presented to the House of Assembly last week, have already been implemented.

Mr. Brock said: "There had been a steady erosion of our competitive position.

We were paying ourselves over the odds to the point where our price structure had gotten out of hand. We could not stand that and remain competitive.

"Since 1992, we have started to address the situation, and I am not just talking about Government, but in areas which provide services like BELCO and Telco.'' The chairman said it was a case of getting the main service suppliers into one room and asking them: "What can we do to remain competitive? We must increase productivity and get rid of waste.'' Mr. Brock said that by creating the Commission on Competitiveness, Government has focussed on the problems.

But he warned that it was not simply Government's job to improve the Island's competitive ability.

He said: "Everybody is looking at what Government is going to do. But we have proved that other sectors can help.'' In support of Mr. Brock, another Commission member Mr. Richard Butterfield, a former president of Bermuda International Business Association, believes many of the 156 recommendations will come into force.

Again Mr. Butterfield stressed that it was up to the whole of Bermuda to help to improve the economy. He said: "Our attitude towards our customers has always been important and in the more prosperous times we tend to forget what our customers want and the quality of our service.

"We must remember that the customer is always right in tourism and international business.

"We have been thinking about what our customers want and what will please them as part of these recommendations. That I think is a great benefit to the country.'' Mr. Brock praised Tourism Minister the Hon. C.V. (Jim) Woolridge, who constantly calls for Bermuda to give value for money to visitors. Mr. Brock said: "People will pay more for a Rolls Royce than a Volkswagen Beetle. We have to give them the Rolls Royce.''