friendly to the special interests of small businesses and new businesses, especially when you consider that a number of our cottage industries have suffered and gone out of business as a result of the decline in tourism. The Government should promote a climate, which is more conducive to the growth and development of small business and to promoting economic opportunity for all -- a level playing-field.

Competition We believe that a legal and regulatory framework needs to be instituted which will promote open competition yet protect the interests of consumers and the environment. This requires that we remove the obstacles in the economy which impede businesses from becoming more innovative and enterprising.

We believe that there needs to be a consistent coordinated policy regarding competition. Competition helps businesses to flourish by creating new businesses and employment opportunities. It also brings benefits to consumers reflected in quality, price and choice.

The Government has a role to play in encouraging a climate to stimulate competition. We look forward to some of the recommendations of the Report of the Consumer Protection Task Force being implemented together with the recommendations of the PLP as to a revamped Consumers Affairs Board with a Consumer Affairs Officer with statutory powers.

Mergers, Acquisitions and Strategic Alliances Increasingly, in Bermuda's business environment we see cost-cutting and streamlining cost so that the expense-cost ratios are maintained at acceptable levels. For instance consider the cases of the Alexander & Alexander/Aon and J&H/Marsh & McLennan acquisitions, the joint venture between The Bank of Bermuda Limited and The Bank of NT Butterfield, for conducting their data processing activities. We have to be mindful of the effect of the consolidations on the `job share' of Bermudians.

It is not just the banking industry which is going through changes and restructuring. In recent months, there have been mergers also in the legal profession. Hallett, Whitney & Patton have officially tied the knot with Cox & Wilkinson. Smith Barnard & Diel have announced their dissolution. There is increasing competition and competitiveness and the world is shrinking to one marketplace. If Bermuda is to regain the edge and recapture some of its lustre then it has to be in a position where it can offer the better deals and the better price. Too often we send the message that we cannot keep up and that we are not competitive enough, whether you are referring to our tourism product or the cost of doing international business here in Bermuda. We have to change the action and change the thinking.

With economic globalisation, our relations with the rest of the world assume greater prominence. In December 1997, the World Trade Organisation's pact opening the world's financial services industries to foreign competition was hailed as a "landmark in the history of trade liberalisation''. This will have a real impact on the operations of banks around the world.

Bermuda has to be aware of these international changes as the enhanced attraction of these emerging market economies as a source of investment and access to these markets by Western financial markets with banks and securities houses may make the banks less attractive and there will be a greater pressure on the local economy to become less restrictive, especially given Bermuda's membership in the OECD.

There must be a national criteria for policy formulation not just political self interests and vested interests. Governments must be vigilant. Inefficient banks will close and closed financial systems will be blown apart. Local banks and securities firms which are exposed to these unprecedented levels of capital will be forced into strategic alliances or towards a painful belt-tightening, although the surviving banks should emerge stronger. It is thought by the year 2000 that market forces will have made these countries realise that they have much to gain from opening up to even more competition.

Human Affairs This 1998/99 Budget illustrates the UBP Government's continued pre-occupation with the quantity of life and its callous disregard for the quality of life.

An increase in dollars does not guarantee success where there have been failures. This Government's record, judged by the results in the Human Affairs arena is one of dismal failure.

The fact that Bermuda has imported a team from Ireland to show the UBP Government how to deal with the race problem, is a clear indictment of 30 years of UBP failure on this issue, more than three decades after segregation officially ended.

Can the Government point to a reduction of racism in the workplace or penalties levied against businesses found guilty of racist hiring and promotion practices? A PLP Government will do what is necessary to eradicate the racism which pervades every aspect of life in Bermuda.

We welcome the additional sums allocated to the Human Affairs Ministry. The PLP considers the need to improve the quality of life for Bermudians to be of great importance. In fact, we go further and have consistently called for residential treatment and rehabilitation facilities for drug addicts.

Works, Engineering and Housing The cost of housing and shelter for the Bermuda household is by far the largest of the expenditure divisions. The Household Expenditure Survey 1993 cited that spending on housing had increased substantially over the past ten years.

In Dorothy K. Newman's Report entitled "Bermuda's Stride Toward the Twenty-First Century'', she stated: "An important measure of a country's economic democracy is, in fact the degree to which that gap reduced the economic distance between rich and poor.'' There must be a recognition that accelerated economic growth does not by itself improve the quality of life of the population. Shadow Works, Engineering and Housing Minister Mr. Stanley Morton, J.P., M.P. last week debated his Motion on the lack of affordable housing. In his Motion, he stated: "We will show them how to put the people first and foremost in this country.'' The social dimension of development needs also to be emphasised.

The empowerment of the community in terms of social and economic issues is an essential factor in the eradication of poverty. There is a need at the governmental level to undertake legislation so that persons are given a full and equal access to economic resources.

Poverty has various manifestations including lack of income, homelessness and inadequate housing. The high cost of living and in particular Government's failure to provide truly affordable housing has fuelled increases in labour costs. Basic shelter costs since the mid-80s have risen as a proportion of household income. We must seek to address the concerns and the need for persons to be able to attain affordable housing and this comes with a refocus on people-centred development.

Technology and Information As early as 1985, our then PLP Leader, Mrs. Lois Browne-Evans, made a landmark address to the Rotary Club, calling on Bermuda to be developed as an international headquarters for computer software development and storage.

Bermuda could conceivably become the research and development test-bed centre for new technologies. In the US, General Motors is testing its EVI, the first electric vehicle which was being mass-produced in the US. This has helped to re-establish General Motor's image as a technology leader. This all assists as a platform for economic growth in Bermuda. The island's size, road infrastructure and proximity to the major economies like the US make it very attractive in this regard. We have so much potential and it has been said by the PLP previously and it will continue to be said by us but too often our suggestions and recommendations fall on deaf ears and the only way we can see these coming to fruition is by changing the thinking in the top echelons of Government with a change of Cabinet Ministers -- by changing the government.

A clear example is the world of technological change and the information superhighway. North Rock Communications was recently linked to the World Wide Web and provides competition to Internet (Bermuda) Ltd., now renamed Logic, and merged with a Bermuda Telephone Company subsidiary. The PLP as a government is concerned that we reap as a country the full potential of any windfall of the globalisation of modern-day communications systems. Bermuda is well-placed and with proper planning could be poised to reap significant benefits by the stimulation of a national communications infrastructure. We need to demonstrate a genuine commitment to examine ways to benefit from this information age. We should look at ways to stimulate our young people to take full advantages of the benefits on offer. They should be encouraged to consider jobs in this area. We can use information technology to stimulate the job market and the economy as a whole.

There are creative and new ways to do things differently and positively so that we can all benefit. It is important to also highlight that while information technology can be capital intensive, it does not necessarily need to be resource-intensive and great tracts of land which would be a significant disincentive to a small island like Bermuda.

There has got to be an overall change in policy orientation. Unless you get a policy change higher up the scale, you'll never get changes right at the root of the problems in the community.

Environment The Progressive Labour Party is committed to the protection of the environment of Bermuda. The PLP's commitment to environmental protection is given, recognising that our tourist industry and its international business sector, and most importantly the local business sector, operates within and are sustained by Bermuda's physical marine and air environments.

In order for each of these important sectors to thrive, and be successful, we, in the PLP recognise the need to integrate our environmental policies. We want all elements of our business sectors to be able to achieve high levels of productivity without a negative impact on Bermuda's environment, so that our delicately balanced environment is not sacrificed to business productivity per se.

With this in mind, the PLP recognises the trend in hotel construction, which is to include condominiums as part of its design features, for obvious reasons on some of our remaining open spaces. On the other hand, we are determined to maintain strong protection of the woodlands of the island's geographic environment, reserving in the proper cases sensitive use of the woodland reserve.

The PLP will continue to look to our surrounding marine environment as one for providing employment and again adopting an integrated policy with the policies For the promotion and development of the local and tourist economies.

Government Efficiency A strong economy is an essential foundation for the provision of high quality public services. A PLP Government will demonstrate that it is determined to ensure that every penny spent on public services is used as effectively as possible. Government must play a more significant role in improving business performance by helping to remove barriers to growth: Promoting fair competition and efficient regulation; Fostering a culture of entrepreneurship and innovation, and; Providing, in partnership with the private sector, the infrastructure and high quality public services that are essential to our community.

If the UBP Government were serious about claims made in previous Budget Statements to reduce Government's contribution to the GDP to below 20 percent, they would have taken a series of actions aimed at putting a framework in place that would improve the efficiency of public spending to yield greater value for money for the taxpayer.

Concluded in tomorrow's newspaper.