Minister Grant Gibbons yesterday.

His Budget statement for the coming year laid out the ruling United Bermuda Party's manifesto for the millenium.

And that includes cutting back on protectionism, increasing the role of the private sector in providing services traditionally handled by Government -- and no new taxes.

Dr. Gibbons said: "There are limits to what Government can do and limits to what the public can expect Government to do.'' And he warned that the age when "Government does everything for everybody'' was drawing to a close.

He said: "One has to look at the circumstances as they arise -- what the public expects us to do is provide Government services in as efficient and customer-friendly way as we can.

"As things arise, the Ministry of Finance and other departments will have to see what is the most effective way to do it -- it may be through the Civil Service or out-sourcing.'' Dr. Gibbons cited the civilianised Airport, security on the Base lands and the use of private contractors by the Works and Engineering Ministry as good examples of the use of privatisation.

He said: "It's something which has worked effectively up to this point and I would not be surprised if we look at it other areas.

"But it would be difficult to say which areas these might be or how quickly that would happen.'' The news came after a Bermuda Institute of Directors committee -- backed by banking and other business interests -- called for cheaper and leaner Government.

Dr. Gibbons also signalled a relaxation of the 60/40 rule -- designed to ensure majority Island ownership of businesses -- in a bid to keep the Island up-to-date with world trends towards deregulation and help develop the Base lands. (See story below) The embattled hotel and retail sectors also received some tax breaks in an attempt to stimulate new business.

And a top-level external review of the entire tax structure in Bermuda will begin -- with a view to "adjusting and refining in gradual but meaningful steps''.

Charities will get a payroll tax break with employees being put in the lowest category of 4.5 percent which is fully recoverable from employees.

But the rate of payroll applicable to any other employer will be frozen at current rates.

Dr. Gibbons' Budget statement warned Bermuda faced a host of challenges from the electronic revolution and sophisticated communications networks.

He predicted: "How we manage this new revolution and the social, political and economic changes it brings will determine Bermuda's success as we enter the 21st Century.'' Dr. Gibbons said there would be extra expenditure on education and training.

Financial support for "an intensive public and private sector planning effort'' to help the tourism industry face the future will also be forthcoming.

Government will also fork out $500,000 to support the Monitor consulting firm probing ways to boost tourism, an initiative initially sponsored by the private sector.

Rift may open over 60/40 rule Opposition Leader Jennifer Smith said yesterday that the 60/40 rule guaranteeing majority Bermudian ownership of businesses had been passed several years ago and should be looked at again.

But Mr. Cox said: "One should not guesstimate that because we have done that in one particular instance it's a case of tearing down the walls.

"We obviously have to look at it, as the leader said, but that legislation has served us well and we must be careful how we address it.

"After we give consideration to it we should come up with something which will not harm Bermuda when we make changes such as the ACE and Exel thing.'' Mr. Cox added: "As we said with ACE and Exel, it's really a private act which gives the companies Bermuda status almost.

"We have to look at each case on its merits. It's a case of looking at all of these -- the legislation has served us very well.

"We may find down the road that we need to make some amendments but we shouldn't just roll up the door.'' No caption HOUSE OF ASSEMBLY HOA