irresponsible increase in spending against a slowdown in the economy''.

He said the "little man'' would have to pay in tax hikes to finance the spending increases.

Dr. Gibbons said it was appalling that there was no major initiative to tackle the decline in tourism and said retailers would be disappointed that Government has still not delivered on its promise to introduce duty-free shopping for visitor-orientated goods.

"It is really clear that there has been an irresponsible increase in spending against a backdrop of a slowing economy and a possible burden on the economy,'' he said at a press conference yesterday.

"Current account spending is increasing at almost three times the rate of growth and capital spending has increased by 45 percent from last year. That's an enormous increase in spending.

"Travel has increased by 48 percent, almost $1.5 million more and there are a lot of areas where spending has gone over the top.

"To fund this irresponsible increase in spending they are adding $50 million to debt and taxes across a range of areas.

"Last year Eugene Cox said in the real world someone has to pay and this year it is clear it is the little man who will have to pay.

"Cigarettes, alcohol, car licencing, the list goes on. There is a real sting in the tail in this Budget.

"One very disappointing thing about this Budget is the lack of appreciable comment or solution on tourism.

"The economy is firing on three cylinders almost entirely based on international business and we were expecting additional solutions for tourism.

"There is no duty free relief at all and to add $5 per head on departure tax seems to fly in the face of what is needed.

"Retailers haven't been holding their breath. They were promised in the run up to the last election an effort to get duty relief on visitor orientated retail and we've seen nothing.

"They also faced additional land tax last year and payroll tax from last year.'' He warned of the danger of shifting the tax burden too heavily towards international business because other jurisdictions, which were improving their regulatory frameworks, were much cheaper to do business.

Dr. Gibbons said the alcohol duty concessions contained in the Hotel Concessions Act, combined with increased alcohol duty in this Budget, would further drive a wedge between hotel bars and ordinary bars at a time when the latter is already under increasing pressure.

"It is a reckless increase in spending at a time when the economy is slowing, and the community will have to pay for that in the long-run and it looks like the small guy is going to take a lot of that burden.'' Grant Gibbons