marketplace, it must remove the structural impediments that promote big business at the expense of ordinary people.

That call came from Shadow Minister of Finance Mr. Eugene Cox , who was responding to Government's overview of its work since the release of the Commission on Competitiveness report.

Finance Minister the Hon. David Saul introduced a "take note'' motion on the report which was tabled last summer.

He explained that the Premier commissioned the study during the spring of 1992, when Bermuda was in the midst of "the worst recession since the war''.

Dr. Saul said Bermuda had to remain on the "cutting edge'' but it had to also keep within its own pocket book.

Of the more than 94 separate recommendations contained in the report, Dr. Saul said 12 had already been implemented, 38 were being worked on currently and 44 were still to be considered.

Yesterday, Dr. Saul said Government would not be making a formal reply to the Commission's findings.

Instead, it will try to get as much input as possible from Opposition MPs, organisations and members of the public.

In the interim, Government will examine the other 44 recommendations.

Dr. Saul (UBP) said the 417-paged report could be broken down into five areas.

They are: Tourism, International Business, Future Opportunities, Competitiveness/Protection policies and Local Costs.

He said Government embraced the definition of competitiveness used in the report.

This definition ties a country's competitiveness to its productivity.

"A rising standard of living depends on the capacity of a nation's firms to achieve high levels of productivity,'' he read.

Moreover, this productivity, he said "must increase over time''.

The general theme of the report centred on two issues -- costs and protectionism, Dr. Saul explained.

Costs, he said, were high on the minds of the report's writers because of the recession.

Therefore prices charged to tourists and people from the international business sector were a cause for concern.

Regarding protectionism, Dr. Saul pointed out that the rules governing non-Bermudians who wanted to purchase real estate, the 60-40 rule, foreign workers and exchange controls were also examined.

However, the Commission's authors had adopted a balanced approach to three of the issues, with exchange controls excepted.

Meantime, Dr. Saul said the Tourism department was being looked at with a view to the possibility of it being a quango like Wedco or expanding the department.

But these are just some of the "blue sky ideas'' on which Government needed input from the public.

Attracting more international businesses and creating more local business was also important, and Government is looking at establishing a Business Development Board to encourage local business and an Institute for Business Development.

Having already received feedback from the Chamber of Commerce and the International Companies Division, Dr. Saul said there were five priorities.

They were tourism, financial services, local costs, monopolies and miscellaneous.

There are 33 recommendations that have been advanced, he said, of those 6 have been adressed and 14 are in progress.

Government would look closely at how the Island is currently being marketed and attempts would be made to increase tourist amenities.

Additionally, Government would also look to encourage more mutual fund business to incorporate in Bermuda because it is a fast growing industry.

Bermuda's banking system would also be closely scrutinised with the possibility of offshore banks incorporating in Bermuda.

Mr. Cox said the Commission's document on Competitiveness was an "exhaustive document'', and a credible first draft.

However, he asked why the United Bermuda Party had not set out its broader guiding philosophy for Bermuda given that it constantly trumpeted its belief in free enterprise.

Mr. Cox said that while he also agreed with the definition of competitiveness used in the study, he found it odd that Government had a separate rule for big business and ordinary workers.

The workers, he claimed, were subjected to unfair competition with foreigners who had in many instances the benefit of experience overseas.

These individuals were set against Bermudians who often did not have the opportunity to acquire this experience locally.

But when it came to big business, he said, Government ensured through legislation that it was protected from unfair competition.

Mr. Cox also said new businesses were stymied when they needed loans because of a strong "old boys network'' that is firmly in place through certain law firms and banks.

Mr. Cox stressed he was not against all of the protective legislation that existed, but he questioned whose interests were being served.

"I don't see any effort being taken to bring women into the working world on an equal footing with men,'' he said.

He pointed out that many of his party's proposals for tourism were being discussed in the document, although he said every effort must be made to bolster the industry which unlike international business, is labour intensive.

As a result, tourism is able to absorb those Bermudians who go overseas for further education and those who do not.

Although over regulation is never the way to go, international business needed rules which encouraged a smooth transition to the Island.

However, some firm regulations were required to prevent "fly by night'' companies from coming to Bermuda and robbing Bermudians of their savings.

Transport Minister the Hon. Maxwell Burgess said Bermuda had to recognise the world was changing.

The Island faced this challenge: Either it changed and stayed competitive, or it remained the same and died.

Mr. Burgess said information, technology and productivity were the key ingredients for survival in the years ahead.

Bermudians had to ensure they retooled themselves and maintained a high standard.

It was important, said Mr. Burgess, for Bermudians to be put first in the job market.

If a Bermudian was qualified for a job, he should be offered it before an expatriate.

But the Island had to recognise as well the need for experts in the international business community.

Companies should be encouraged to bring in these experts so business could flourish and grow, said Mr. Burgess.

"The real challenge is to make sure we encourage our people to retrain and retool themselves to come into the 21st Century,'' he said.

Mr. Burgess said it was clear Bermuda's tourism industry required a shot in the arm. A new hotel was needed. Fresh "attractions'' for tourists were also essential, he added.

Turning to small businesses, Mr. Burgess said he did not accept the notion they had been hurt by lack of capital.

It was just the reverse -- an abundance of capital had been made available to them.

And many small businesses had been unable to carry debts through the recession.

Mr. Burgess was accused by Opposition MPs of being pessimistic about Bermuda.

He retorted this was not so.

"Optimism is my first name, but practicality is my trademark,'' he said.

"Training, information and technology are the way of the future.'' Mr. Burgess said the report was a good one, and should be used as a "baseline'' from which to improve the Country's competitiveness.

Shadow Tourism Minister Mr. David Allen began his 95-minute speech by accusing Mr. Burgess of giving forth a torrent of rhetoric.

"It will certainly take more than rhetoric to turn this Country around,'' he said.

Mr. Allen went on to describe the report as a damning indictment on the Tourism Board and Tourism Minister the Hon. C.V. (Jim) Woolridge .

After interjections by Mr. Woolridge, Mr. Allen replied: "If he can't stand the heat he should get out of the kitchen.'' Mr. Allen said he knew why the Commission had moved in the direction of setting up a quango to run tourism.

It was because Mr. Woolridge had repeatedly failed to heed anyone's advice about how to improve the industry.

But Mr. Allen attacked the idea of a quango.

"We believe we can't have one of the fundamental pillars of the economy, tourism, in the hands of a quango, an autonomous organisation.'' He added it was important those responsible for tourism be accountable not only to Government, but also to Parliament.

A quango could prove a "loose cannon roving around on the deck''.

Mr. Allen said nothing could supplant tourism as an employer of Bermudians.

Not every chambermaid wanted to become a chartered accountant or computer wizard in the international business sector.

"Bermudians are people people, and fit very well into the tourism industry,'' he declared.

Mr. Allen said many of the report's recommendations mirrored those in previous Progressive Labour Party platforms.

Tourism sector needs shot in the arm For instance, the report recommended a push for ecological tourism.

It was time to promote tourism by relieving the tax burden in the industry.

He accused Government of hitting tourism with higher and higher taxes, such as duties on wines, and increasing the cost of fuel.

It was also important to make tourism appear glamorous and exciting to Bermudian youngsters looking for a career.

"We have to get to them at an early stage.'' Mr. Allen turned to the idea of a weekend cruise ship. Such a move would be justified, and would benefit local retailers.

Cruise passengers could shop on Fridays and Saturdays, although Sundays should remain a day of rest, said Mr. Allen.

Mr. Allen continued by attacking Mr. Woolridge over the erosion of air arrivals to Bermuda, while other destinations had been gaining ground.

It had been customary to use the number of cruise ship passengers to mask the truth about air arrivals.

The Commission report stripped away that mask, said Mr. Allen.

On adventure sports, Mr. Allen said there had long been a need for the Island to capture a niche market.

And Bermuda, added Mr. Allen, had also failed to promote itself as an ecological tourism destination.

At this point, Mr. Woolridge, waving a tourism pamphlet, described Mr. Allen as a "dumbo''.

Speaker the Hon. Ernest DeCouto asked Mr. Woolridge to withdraw the remark.

"But he is a dumbo,'' Mr. Woolridge rejoindered, before agreeing to Mr.

DeCouto's request.

Mr. Allen continued by slating Government for not providing more affordable housing in Bermuda.

High housing costs fuelled wage demands by hotel workers, he said.

Mr. Allen also bemoaned the lack of good shops for tourists.

There was a danger of Bermuda being wiped off the map as a shopping destination.

The Airport, for instance, must be one of the dullest in the world.

"A lot of people like to do some last minute shopping.'' Mr. Allen said tourists often liked to pick up souvenirs, such as work by local craftsmen.

The problem was that there was no way of knowing whether craft work was produced locally or not.

Legislation should be introduced to ensure every souvenir bears its "country of origin'', said Mr. Allen.

Mr. Allen then switched to hotels, welcoming plans by Sonesta Beach to spruce itself up.

Of the dormant Club Med, Mr. Allen said the property could benefit from some form of quango.

Such a quango could develop the property, parts of which could be leased out to entrepreneurs.

Mr. Allen said the lack of Bermudian hotel managers was an indictment on Government. This contrasted with the position in the Caribbean.

"The Minister should hang his head in shame.'' Mr. Allen did have some good words for Government, however.

He said they should be congratulated for the temperature guarantee scheme aimed at killing the perception Bermuda was cold in the winter.

But after handing over this bouquet, Mr. Allen returned to form saying Government was not doing enough to tap the Afro-American and European markets.

Government's tourism failure was further demonstrated by an Airport survey, said Mr. Allen.

The survey revealed visitors' dissatisfaction with hotel night life and on site recreation.

And just 57 percent felt Bermuda was a good place to bring children.

Mr. Allen said it was time for Mr. Woolridge to "wake up and smell the coffee''.

On gambling, Mr. Allen said the PLP were against such an idea.

He urged Bermuda to resist gambling, and pride itself on being different from other destinations in this regard.

Tourism Minister the Hon. C.V. (Jim) Woolridge immediately went on the offensive, slamming Mr. Allen for misleading the House with his comments.

He said it was hardly surprising Bermuda had seen Caribbean countries make advances in the tourism industry.

Bermuda had not had a new physical plant since 1972.

Mr. Woolridge said Mr. Allen "babbled on'' about the Bahamas, and how well they were doing.

But the Bahamas had a debt which was bigger than Bermuda's national budget.

Mr. Woolridge also took issue with Mr. Allen over claims travel agents were boycotting Delta in a row over cuts in commissions.

"It doesn't apply to Bermuda. Delta have given this country valuable service out of Atlanta and Boston.'' If Bermuda was doing so badly, why was it that the Island benefited from 13 flights a day out 10 gateway cities? Mr. Woolridge then took Mr. Allen to task for claiming high taxes were deterring visitors.

This was not true -- Bermuda had not lost one cruise passenger because of the $60 tax.

Mr. Woolridge praised the way his department had fared in the face of financial constraints.

Despite the constraint, the department had produced the goods.

And such success was recognised through 11 awards over the last four years.

The department, for example, had been honoured for its efforts in protecting the environment.

Mr. Woolridge said, contrary to Mr. Allen's assertions, much had been done to boost eco-tourism -- the new buzzword.

The Gombeys, Cup Match, the Maritime Museum and Biological Station -- all were examples of Bermuda's efforts in this area, said Mr. Woolridge against a background of Opposition cries that he did not understand the meaning of eco-tourism.

"He is a phoney,'' Mr. Woolridge retorted, referring to his tourism counterpart.

Mr. Woolridge said Bermuda had done very well and cornered the group convention market.

He went on to express puzzlement at the report's statement that tourism had "lost its way''.

"I would say where has tourism gone?'' Mr. Woolridge defended Government's record in drawing visitors from Europe.

There had been a 26 percent increase in tourists from this market.

British Airways was also planning on laying on a fourth flight earlier next year, in June.

And there were plans to get a flight out of Frankfurt in 1995.

Mr. Woolridge slammed Mr. Allen for being wedded to the idea of charter flights.

They were not the way forward. Regular airline carriers were, he said.

Another cruise ship would only drive visitors away, Mr. Woolridge said.

"When the Royal Majesty came here on the 30th of May out of Boston we were up 13.6 percent (in air arrivals),'' he said. "After July and August we were down in that area.'' The manager of Bermuda's Boston office said 70 percent of the calls he was getting were for Royal Majesty , and rightly so, due to the price of the holiday.

But while Government appreciated the contribution of cruise ships, it was small compared to that of air visitors. The hotels employed Bermudians and kept the economy going.

And while international business was important, Bermuda would not have the air service that supports that sector without tourism, Mr. Woolridge said. "One supports the other''.

Bermuda's marketing budget had remained flat since 1989, but the Island would have close to 600,000 visitors in 1994. While he had hoped for a ten percent increase in visitors, he cited the mid-term elections in the United States as one of the reasons the target was missed.

Bermuda could not compete with destinations that were spending millions more on marketing, but "what we can do is hold those visitors that we have.'' Mr. Woolridge said that Bermuda did not need the low-spending T-shirt visitors, either.

Mr. Ottiwell Simmons (PLP) said competition was good for Bermuda's tourism business, because it made for improved efficiency and quality. But the report did not seem to see it that way.

The report did not adequately cover the North American Free Trade Agreement or the General Agreement on Tariffs and Trade, Mr. Simmons said. The report could even be out of date, due to approval of GATT by the United States Congress last week.

Under GATT, 144 nations would be lowering duties on imported goods, Mr.

Simmons said. "That's more important to Bermuda perhaps than any other Country,'' he said.

Bermuda relied on Customs duties for 39.2 percent of Government revenues. But under GATT, Japanese cars would be sold in the States much more cheaply than in Bermuda, and cheaper goods in the US will mean "it's not going to be worth anyone's while to open a store in Bermuda''.

The Island's "reliance on import duties has got to be in trouble''.

Another weakness of the report was that it did not deal adequately with the effects of the Base closures, Mr. Simmons said.

Bermuda had to find $50 million to replace the annual income from the Bases.

Bermuda had to diversify into businesses which -- unlike tourism and international business -- were controlled by Bermudians.

The Island needed an "exclusive'' business. Mr. Simmons suggested manufacture of high-quality furniture.

The rest of the debate will be carried in Monday's newspaper.

The Hon. David Saul Mr. Eugene Cox Mr. David Allen The Hon. C.V. Woolridge Mr. Ottiwell Simmons