From Page 6 The additional $430,000 for funding of the incinerator reflects the increased costs of this project. This is another instance of a government managed project which seems to have gone astray. Garbage collection has been decreased to a once a week collection, and the private sector is benefiting as more and more garbage and waste disposal is being put into private hands, which has the corresponding effect of increasing the costs to the public purse.

YOUTH, SPORT & RECREATION Mr. Speaker, despite the Government's efforts to take the National Stadium out of the spotlight by transferring the responsibility to a group of Trustees, one fact is once again clear to the Bermudian people: this UBP Government does not have a serious commitment to the completion of a National Stadium that Bermudians can be proud of. In particular, we have a National Stadium, which remains a long way from completion, and the 1995 6 allocation to the Trustees which is unchanged from last year's budgetary assessments. The $220,000 again earmarked for the Trustees in this Budget will likely produce a series of media conferences but very little substance.

Mr. Speaker, the Budget calls for $484,000 to be spent on "contributions'' to sports development. This is actually a misleading term simply because such a paltry sum can only be considered a stop-gap means of assistance for the various sports, and in no way can be confused with a real commitment to the development of the sport.

The Government needs to focus on repairing the social fabric. From teenage pregnancy, to family breakdown, to violent crime, the social fabric is ripping apart.

COMMUNITY AND CULTURAL AFFAIRS Mr. Speaker, Bermuda is in dire need of a multi-purpose cultural centre. Yet despite so many persons highlighting the need for such a centre, there has been no concerted effort to have a feasibility study done so that the Government could devise a timetable for constructing Bermuda's own purpose-built cultural centre. This year's Budget estimates remain unchanged from last year's estimates.

SMALL BUSINESS DEVELOPMENT CORPORATION Mr. Speaker, in our last Budget Reply, we called upon the UBP government to increase the capitalization of the Small Business Development Corporation in order to provide for an increase in the level of guarantees made to small businesses. It is gratifying to see this policy implemented -- albeit one year too late, to assist small businesses.

Mr. Speaker, private individuals should be offered incentives to invest in small businesses. Further emphasis also needs to be given to providing financial expertise to the small business sector. Since previous annual reports of the Small Business Development Corporation indicate that the weaknesses of many small businesses is in the area of keeping proper financial records, the government should consider introducing a financial management certificate accreditation as has been done in other jurisdictions. The certificate would serve a twofold purpose. On the one hand, it could help entrepreneurs, who need to raise capital by providing a clear signal of financial competence to prospective lenders. Secondly, the attainment of the certificate could help the small businessman to increase his own level of skills and better equip him to manage his own business.

FISCAL POLICY Mr. Speaker, the Finance Minister's 1995 6 Budget has to be seen in its proper historical context. The fruits of economic growth in the past were not always distributed in an equitable manner. Mr. Speaker, Bermuda is now in a period of economic growth and the most stirring challenge that lies ahead is to ensure that the transition and assumption of responsibility by the government of the control and monitoring of the airport and the handover of the Base lands is dealt with in a manner which benefits the interests of the whole of Bermuda.

Mr. Speaker, while we applaud the fact that the rate of land tax will not be increased this year, the removal of the 5% discount for timely payment is effectively a 5% increase, since our research indicates that the vast majority of Bermudians and residents alike availed themselves of this discount.

Mr. Speaker, although this year's Budget may not seem unduly harsh in terms of any new taxes, we need to remember that the major source of revenue is still obtained from the customs duties. So the residual effect of the UBP Government's existing tax policy is that it is still Mr. and Ms Little Bermuda who pay the brunt of the taxes. Accordingly, the Government has to appreciate that when it increases the level of customs duties, the ultimate consumer, Mr.

and Ms Bermuda, feel the effect of these hikes.

For instance, Mr. Speaker, the UBP Government has imposed a $10,000 fee on the bonded warehouses for alcohol. In terms of the net impact of the increased fees now payable, Mr. and Ms Bermuda are likely to feel the effects of these increases as liquor stores move to "peg'' on these additional costs to consumers in the form of increased alcohol prices. Alternatively, they may choose to reduce overhead in an effort to stabilise profits which could possibly lead to employment lay-offs.

Mr. Speaker, that is why we have proposed that government grant exemptions, relief, and deductions to the commercial sector, to help militate the adverse impact of any increase in prices on Mr. and Ms Bermuda. This system of rewards and incentives can help to encourage and to influence businesses to adopt certain practices which are more consumer friendly.

Mr. Speaker, Government could encourage businesses to maximise Bermudianisation by instituting tax rebates where businesses employ over a certain percentile of Bermudians. Currently businesses with an approved training scheme obtain a rebate for employment tax.

Mr. Speaker, the Consumer Price Index as it relates to rental costs has increased for the third quarter in succession to a high of 1.6. As rental costs accelerate so does the burden for the lower income earners, who happen to represent the highest proportion of the home rental population. Mr.

Speaker, we have to be mindful that it is Mr.

and Ms Bermuda, who will bear the brunt of these price increases.

Mr. Speaker, you will be aware that the 1995 6 Budget Statement has introduced measures in terms of the local estate planning and property transactions. Mr.

Speaker, many families do estate planning so that their families can benefit financially on their death. They have a home that they want to leave to their children and take steps to arrange to voluntarily convey the property to their children, retaining a life interest for themselves. The effect of the changes in the rates of taxation payable on voluntary dispositions has meant an additional one percent to each tax band, which will be felt by Mr. and Ms Little Bermuda.

INTEREST RATES Mr. Speaker, the Government in last year's Budget statement introduced the lifting of the ceiling on interest rates. We were opposed on this side of the House to the lifting of interest rates. However the government's arguments were that overseas territories that we normally did business with had low interest rates and that these rates would remain low for the foreseeable future. Last year during the Budget debate, the UBP Government enumerated a host of benefits for removing the ceiling on interest rates. There were promises of cheaper credit, help for local businesses, possible reduced prices and reduced mortgages, yet these promises have not been fulfilled -- and mortgage rates have risen.

Mr. Speaker, just one year later, Mr. and Ms Bermuda are feeling the effects of the increases in mortgage rates, because we no longer have a fixed rate.

PROFESSIONAL FEES Mr. Speaker, the Finance Minister should not have presented the House with a generic list of increases for professional bodies, without providing specific information as to the level of increases and those categories affected. Mr.

Speaker, professionals paying an annual fee is not something we object to in principle. However, there needs to be specific information as to the amounts that are to be payable, by the various professional groups. The Finance Minister states that the fees are to be spread between $50 to $2500, we need to know at what levels the various professional bodies are to be charged. We cannot assume that nurses, lawyers, accountants all fall within the same income brackets and are therefore at the same economic levels. If this government is attempting to make taxation more progressive, we must ensure that this sort of tax does not become a mechanism which further creates barriers of entry for young professionals attempting to secure themselves for the future in an already competitive environment.

TRANSPORT Mr. Speaker, the Honourable Finance Minister in presenting this year's Budget has stated that it is soft on the areas that impact on the average man in the street and that it contains no real surprises. He outlined a number of the detailed changes. However it is curious and noteworthy that for the Ministry of Transport, the Finance Minister has indicated that there are to be licence increases without detailing the level of increases.

Mr. Speaker, currently our licensing fees are amongst the highest in the world. The role of the motor vehicle has changed from a luxury item to a necessity in today's world and accordingly we see no compelling reason why Bermudians and residents should be subjected to further increases in this area.

Mr. Speaker, It is also notable that there is no other mention of the Head of Transportation at a time when segments of the transportation industry are calling for a new direction. This highlights our call for a National Transportation Plan.

TELECOMMUNICATIONS Mr. Speaker, with technology and communications about to explode on to a new frontier, one would have thought it merited at least a mention in the Budget Statement, especially in the context of the departure of the Americans from the Naval Air Station and the handover to Bermuda and Bermudians of the Base lands. This is a major money-spinner for the Island's economy and could become another strong string to our bow with the existing two pillars, as it develops in the future. There is a technological boom occurring all over the world, and to date Bermuda has not benefitted in any concrete way from this. However, there have been a number of applications for telecommunications operations, which at the very least should provide additional competition and offer competitiveness in our Continued on next page