Bermuda is falling behind in its bid to make hi-tech computer trading the third pillar of the Island economy, Opposition leader Pamela Gordon claimed.

And Ms Gordon -- also Shadow Telecommunications and e-commerce Minister -- warned that Government has to strengthen its commitment to avoid being left behind in the rush to capitalise on Internet-based buying and selling.

Ms Gordon said the UK had sent clear signals of its intention to become a major player in Internet commerce -- and had put its money where its mouth was.

She said: "It's clear that Bermuda has to do far more than it has been -- otherwise we will fall so far behind, we will never catch up.'' And she added that the cost of overseas calls and Internet access in Bermuda was still far too high to allow Bermuda to stake a claim to e-commerce.

The cost of overseas calls have dropped by between 35 and 50 percent in recent times, while the price of Internet access has fallen by 10 percent -- but Ms Gordon warned that was still not enough to make the Island competitive.

Ms Gordon was speaking after UK Chancellor of the Exchequer Gordon Brown in last week's British Budget speech unveiled a range of incentives for companies to get on-line.

He told UK MPs: "I want to make Britain the best environment for e-commerce and catch up with America as swiftly as possible.'' And he said he would be introducing special tax incentives to get up to one million small firms on line fast.

Mr. Brown promised, for the next three years, small businesses buying computers or investing in e-commerce will be able to write off the tax.

And he added that the small business service will offer special consultancy, advice and planning to small companies on e-commerce, as well as the "University for Industry'' -- which will offer employee training on the Internet.

Mr. Brown said that Britain would also loosen off on work permit rules for overseas experts.

He added: "We are determined to lead in e-commerce and the Internet. We are introducing new rules for work permits in areas of highly-skilled information technology where there is a global shortage.'' Tax will also be cut for firms which electronically file tax returns and other information.

The UK Budget breaks came after UK e-Minister Paula Hewitt made a keynote speech at the Massachusetts Institute of Technology in Boston.

She said Britain was already Europe's leading e-commerce nation, with e-trading four times the average for EU countries.

Ms Hewitt said that an e-commerce Act was already before Parliament -- and said Britain's "liberalised and competitive'' telecom market was a major key to success.

She said bidding had already started for new mobile telephone licences -- with one reserved for a new player to join the existing four.

The third generation cellphones will be able to be used as mini-computers with Internet access.

And she said interactive digital television -- which will also open up the Internet -- was well-established and ahead of the US.