$71m for new school Employee payroll tax to rise Ferry and bus fares face hikes Police get $766,000 more money A total of nearly $529 million will be spent by Government this year -- an increase of $17.66 million on the previous year -- and with a heavy slant towards social spending.

Finance Minister Eugene Cox said: "This is a Budget designed to empower the people of Bermuda.'' He added: "It doesn't mean we're going to be on a social programme all the time, but this year it's more social than business.'' But borrowing is set to jump to almost $27.5 million -- with plans to increase the current ceiling of $185 in total debt to $250 million, although that will still be within the fixed figure of ten percent of the Island's Gross Domestic Product.

In the first full Budget crafted by the Progressive Labour Party -- more than $90 million will be spent on major building projects -- including an $18 million contribution towards the $71 million-plus cost of turning the Berkeley Institute into the new senior secondary school.

An extra $4.3 million will be spent on health -- with a whopping $2.5 million going towards the cost of in-patient care at the King Edward VII Memorial Hospital.

New teachers and teaching support staff will also be taken to boost education, while six extra truancy officers will be hired to make sure youngsters turn up.

And the National Training Board and student summer employment scheme are also in line for more money.

The Bermuda Housing Corporation is to get an extra $461,000 to help fund the bid to bring 100 new homes at affordable rents on to the market.

But most workers will pay 0.25 percent extra in payroll tax -- 4.75 percent -- raking an extra $2.2 million into Government coffers, although new breaks will be given to employers to lessen the tax load.

The owners of larger homes will also pay more in land tax -- but senior citizens will get further breaks, removing hundreds from the tax bracket altogether.

But commercial premises will see a fall in their land tax, from six percent to 5.5 percent -- and expected total relief of $1.1 million.

Increases in bus and ferry fares -- as well as the cost of joining the Bermuda Aircraft Registry -- are expected to to net around $1.7 million, while the cost of postage will also go up.

Mr. Cox told the House of Assembly that the world's future belonged to the service and information industries and educated work forces -- not last century's dependence on heavy industry and unskilled labour.

He said: "Bermuda will achieve worldwide prominence in its chosen field if it can excel at generating and disseminating information and commercially exploiting it.

"We can gain massive value and commercial advantage in the modern economy by virtue of the services we can provide and by the manner in which we provide them.'' And Mr. Cox added: "This Government's emphasis on education and training is the most far-sighted economic investment that this country can make.

"Educated and equipped people have a great future. Unqualified and ill-prepared people will face continued economic, and hence social, struggle.

"We cannot afford to waste any Bermudian lives and opportunities if they as individuals and we collectively as a people are to progress into the next century with confidence, fulfillment and prosperity.'' Mr. Cox said: "Consequently, in this first Budget of the new century, the Government will provide extensive new funding for education and training, continued support for Bermuda's healthcare system and funds to address the housing problem.'' "In addition, the safety and security of the community will be assured through financial support for the administration of justice and law and order.'' Budget 2000 an investment in Bermudians: Cox The Police will get a total of $766,000 in new cash -- to help fund pay awards, while a new Hamilton Police Station and courtroom will be built.

A new Assistant Justice will be hired and a proper court reporting system set up.

And -- to rehabilitate existing prisoners -- 12 new prison officers and four caseworkers will be hired, at a cost of $618,000, and the new Halfway House for prisoners training for freedom will be completed.

Tourism will get a total of $2.43 million in extra cash to help the bid to revitalise the industry.

And ferry trips are on schedule to get faster -- with $6 million budgeted to pay for two fast ferries and upgrading dock facilities.

And more than $6 million will go towards completing the Island's National Stadium.

But it was bad news for smokers -- with a duty charge per cigarette of 10 cents each, $4.60 in extra tax per carton of 200 cigarettes.

However, cuts across the board of $14 million in Ministries and departments will offset some of the Progressive Labour Party's programme for the coming financial year.

A further $11.4 million in increased tax returns, plus $10.5 million from the growth in the economy is expected to boost Government revenues over the coming year to nearly $592 million -- but Government is still expected to borrow $27.4 million to cover the expected deficit in the Budget.

"Government's response to the people's needs and aspirations . . .'' "This is the real world however, and somebody has to pay . . .'' "We can gain massive value and commercial advantage . . .'' CHART BUDGET 2000 --- CHANGES AT A GLANCE PAYROLL TAX .25% GOVERNMENT FEES 5% HOUSING 100 HOMES $461,000 TOURISM $2.43M COMPANY FEES 5% HOTELS & RESTAURANT Combined Tax relief $685,000 BUILDING BERKELEY $71M CIGARETTES 46 EDUCATION $1.4M CAPITAL EXPENDITURE $90.5M PRISONS $444,000 FAST FERRIES 24.5M