Reallocation of promotional spending toward the development of a comprehensive tourism Internet strategy. The coordinated strategy should address the significant impact that this medium is having on our target customer as well as the profound changes occurring in the marketing of travel.

Development of consistent incentive guidelines and predictable tax policies that demonstrate a true understanding of hotel-industry needs.

Development of a resort-investor marketing tool, which aids and encourages investment in new and existing resort properties. The current ad hoc, cut-a-deal approach has ramifications for existing properties and potential investors that clearly have not been thought through carefully.

Creation of a Tourism Authority, properly funded and constituted with representatives from labour, industry and Government, to manage these initiatives more effectively than Government alone.

Economic Diplomacy Mr. Speaker, The UBP recognised some three years ago that the so-called harmful tax initiatives emanating from the OECD and the EU would have important consequences for the reputation of Bermuda as an international financial jurisdiction. This was the basis for the carefully crafted position papers and complex discussions carried on by the UBP Government in 1998. We recognise and appreciate the work that has continued, principally led by the Financial Secretary, who has apparently had extensive meetings with representatives of the US Treasury, the EU, the OECD and HM Government. We also recognise the extensive support provided by a subcommittee of the International Business Forum and by the consultants hired by Government to advise them and make representations on Bermuda's behalf. In fact, we note the additional expenditure in this year's Budget of some $330,000 toward professional fees.

Mr. Speaker, While we recognize that some portion of these efforts must necessarily be confidential, we believe that the PLP Government is obligated to keep Bermudians better informed of progress. Ministerial statements providing nothing more than meeting and dinner schedules are inadequate and insult the electorate.

Fortunately, independent sources have informed us that the OECD Forum on Harmful Tax Practices met in late November 1999 to evaluate the more than 40 jurisdictions under review. The November meeting represented the completion of the first stage of the OECD's work, and the Forum reported its initial conclusions to the Committee on Fiscal Affairs at the end of January. The Committee on Fiscal Affairs is scheduled to use the period from January to May to finalise a report for the OECD Ministers when they meet in June of this year.

We understand that there will be further opportunity for dialogue between Forum members and the jurisdictions under review during this period and that the Committee on Fiscal Affairs is not expected to publish their listing of harmful/preferential tax jurisdictions until the June Ministerial meeting. In the meantime, the Forum will advise jurisdictions of their initial findings and will provide a further opportunity for jurisdictions to eliminate harmful aspects of their regimes if they are prepared to make a firm commitment to work with the OECD.

It is toward this latter end that we support the removal of the option that exempt companies currently have to choose between assumed remuneration or actual remuneration in their payroll tax. Currently, this choice might be construed as providing a different tax basis for local and exempt companies and thus evidence of ring fencing. It follows, however, that the $250,000 payroll-tax cap on individual salaries announced in this Budget should apply equally to exempt and local businesses.

Mr. Speaker, The costly issue of environmental remediation at both Morgan's Point and Southside remains unresolved and will continue to impede the longer-term development of these sites.

The PLP Government has provided no further information on negotiations with the US Government. The momentum established by the UBP Government -- fuelled by the successful resolution of similar Canadian claims -- seems to have dissipated completely. While we have been treated to photo opportunities and broad words of support from the UK Government, in the longer term these efforts by the PLP Government could well prove to be a transitory sideshow.

The Canadian experience demonstrates that Bermuda's funds will likely come from specific defence appropriation committees in the US Congress -- a path pursued with some success by the UBP Government. A significant opportunity was also squandered in the disgraceful handling of the West Group in their bid to redevelop Morgan's Point.

It is also unlikely that a Minister's intemperate and irresponsible public remarks about America's lack of moral leadership will do much to advance our collective cause in Washington. As the last estimate for cleanup was in excess of $65 million, we wait in hope that some good news will come from the PLP Government on this issue.

E-Commerce and Telecommunications Mr. Speaker, A cursory read of the business press over the past year will underscore for even the most sceptical reader the explosive impact that the Internet and e-commerce are having on consumers and businesses, and the distribution of goods, services and even jobs. We believe that these changes will impact all economic sectors in Bermuda and present opportunities for the creation of new businesses and jobs.

The Electronic Transactions Act 1999 provides a useful legislative platform for e-commerce, and the draft code of conduct for the industry, initiated by the private sector, will reinforce Bermuda's reputation for high business standards, provided it is not heavy handed. In this new Internet space, mobility, speed and change have become the watchwords for business development. Government should function as a facilitator in close cooperation with the private sector. It should recognise that the accumulation, development and preservation of intellectual capital will be critical to Bermuda's success in building a sustainable e-commerce industry.

In regard to telecommunications, the slow progress in producing an updated Telecommunications Policy and the absence in the Budget of any duty-relief initiatives to encourage on-Island e-commerce infrastructure are disappointing to say the least.

Social Service Ministries Public concern for housing, education, health care, public safety and senior citizens has not abated, yet the Ministries responsible for these areas receive little discussion in the Budget Statement. Individual allocations are specified, but details about the funded programmes and initiatives are vague or incomplete. The Bermudian taxpayer will have great difficulty determining the value of spending increases under these circumstances.

Housing Prior to the 1998 general election, the then PLP Opposition was harshly critical of UBP Government housing initiatives. Our plans included building 100 new low-cost homes, renovating at least 100 derelict houses and bringing to market 54 moderately priced homes at Southside.

The PLP Government has had 15 months to act on housing. During that time, they have offered not a single new idea, and they have been extraordinarily slow in implementing the ideas they borrowed from us. In last year's Budget, we heard that the "100 houses'' project would be completed at a nominal cost to the taxpayer. One budget year later, not one of these 100 houses has been built, but we note that the Government has allocated $461,000 toward operation of the project. For the benefit of the many families who are still in need, we urge the PLP Government to get on with it.

Education We have heard promises over the past year to increase staffing and reduce class sizes. The cost of educating a child in Bermuda's public system has risen to somewhere between $9,000 and $10,000 annually, more than private school tuition. While smaller classes and more staff may lead to improvements, we believe parents and taxpayers should receive a more detailed explanation as to how their increasing tuition tax dollars are improving the quality of education.

We have consistently called for performance levels on individual schools to be made public. We believe that those responsible for educating our children and preparing them for the workforce should be held accountable for the results they achieve. We call on the Government to provide a progress report on the exciting program that we initiated in partnership with XL Capital to infuse technology into the school curriculum. We anticipate that this innovative program will play a critical role in preparing our children for the technological competency demanded by existing business and new e-commerce opportunities.

Police Unfortunately, it is not just economic indicators that have deteriorated over the past year. For the first three-quarters of 1999 compared to the same period in 1998, the Police statistical report indicates a 19 percent jump in breaking and entering offenses. Total thefts including handbag snatches rose a dramatic 46 percent, while crimes of violence, including wounding, assault and robbery leapt 20 percent. Overall, according to Police figures the crime rate was up over 21 percent during this period. It is apparent to everyone in the community that the Police have struggled with manpower shortages all year. We wait to hear how this Budget and the Minister responsible intend to provide the assistance that the Police Service so desperately needs.

Seniors, Health Care and Pensions For the second year in a row, the PLP Government has failed to increase the contributory pension benefit for seniors. Not only has the rising level of inflation eroded the living standard of seniors on fixed incomes, but the large increase in land tax and the rising costs of healthcare, prescription drugs and rents have exacerbated their financial situation. In addition, the Seniors' Centre promised in last year's Budget to improve access to government services has yet to materialise.

On the broader issue of healthcare, we feel it is imperative to implement Bermuda's Strategic Healthcare Initiatives and are concerned that there is no mention of progress or further financial support for consultants in the Budget Statement. The quality and cost of healthcare and access to services are issues that we feel strongly about and will be pursuing during the course of the debate.

We are still waiting for the Minister of Finance to address the annual shortfall in the civil servants' Public Service Superannuation Fund. As the Auditor has correctly noted, there is a significant shortfall between the annual contributions paid in and the benefits paid out that must be addressed in order to ensure the long-term viability of this pension fund.

Mr. Speaker, During the course of Parliamentary debate we fully intend to address further issues such as the need for an integrated transportation plan prior to spending significant sums on fast ferries, the increasing cost and apparent delays at the Post Office and the level of funding provided by Government to sporting clubs and summer programs for our children.

Conclusion It hasn't escaped our attention that the Minister of Finance concluded the second PLP "people's'' Budget with a warning. He said, "This is the real world and someone has to pay.'' Unfortunately for Bermuda, truer words were never spoken. Government spending levels in this Budget mean one thing for certain: The people will pay and they will pay dearly.

But will they get their money's worth? Look back one year for clues. After additional spending of over $40 million in last year's Budget, was value obtained? Are seniors better off now than they were before their land tax went up? Has the whirlwind of expensive tourism activity produced any visible results? Has the quality of education improved? Do Bermudians feel safer in their homes knowing about Police manpower shortages? Have pockets of sloppiness been removed or added? Has drug use declined? Has business confidence been bolstered or shaken? Is there more affordable housing? Are hotels more profitable? Are retailers benefiting from promised duty-free shopping? Mr. Speaker, It is important to answer these questions and hold Government accountable, because it is the people who are taxed and it is their money that is being spent.

Let's make the United Bermuda Party position on spending clear. We believe in the simple principle that spending levels should reflect economic conditions and that Bermuda should live within its means. The continuation of sharp spending increases in the second PLP Budget indicate that the Government has either misread or ignored the warning signals of an economy whose growth has slowed. Under these circumstances, a more prudent approach to spending on both current and capital accounts and better prioritizing of capital projects is called for.

In the real world, economies pay and people suffer when Governments fail to adhere to sound economic principles.