is a budget which gives some support to tourism and international business while concentrating on the people by allocating $270 million to spending in such areas as education, training, health, youth, sports, social services and public safety. The Minister of Finance says the Budget has addressed "our social safety net in relation to health-care, education and pensions''. He also says there will be work toward ensuring access to affordable housing for those with demonstrated need.

Dr. Grant Gibbons was quick to point out that there is an absence of new domestic taxation and that is bound to make the general public happy even if there is an increase of 4.5 percent across the board in Government fees. He has resisted increasing sin taxes on alcohol and tobacco which is both wise and unwise. It is wise not to increase liquor taxes because hotel drinks are now at New York City prices but a health conscious Minister would have greatly increased cigarette taxes and applied them to hospital care, but then smokers vote too.

The budget is unlikely to please the hardpressed retail sector which gets only one concession even though Dr. Gibbons defends himself by pointing out in the Budget that consultants are taking a careful look reviewing and expanding the Corporate Services Tax. In an apparent slap at the complaints of retailers Dr.

Gibbons says that there is evidence of Bermuda's vibrant economy in the retail sector where there have been real increases in sales since May of 1997. He also pointed out that goods declared at the Airport by returning residents did not increase in the last year.

Following the pattern of the past where Government has assisted specific areas of the retail sector with duty relief on china, perfume and jewellery, Dr.

Gibbons has dropped the duty on linen table coverings and accessories from 22.25 percent to 6.5 percent. This could help hotels and restaurants and assist such classy tourist oriented stores as the Irish Linen Shop.

To encourage investment in both new and existing visitor accommodation, duty on items needed for their construction is reduced to zero until the end of March 2001. The current duty rate is 5 percent. This is a sensible decision aimed at upgrading hotels and guest houses and encouraging the redevelopment of Club Med which is vital to Government in St. George's. St. George's also gets a large expenditure to improve Town Cut Channel.

However, hotel operators probably hoped for something much more substantial to allow them to compete in terms of price with other resorts. After all, every major hotel in Bermuda is for sale except Elbow Beach. Those who hoped for a decrease in hotel occupancy taxes will not be happy.

At the same time the Minister of Finance is imposing a tax of $8 per cabin for each night a cruise ship is berthed in Bermuda during the high season, May to August, and drops to $4 September and October but does not apply between November and April. He says the tax is because the cruise passengers are housed and fed aboard ship and a substantial part of their spending in Bermuda accrues to the shipping line. That may, of course, encourage cruise lines to try to keep their passenger spending aboard ship to recoup the taxes.

In response to unhappiness over the Ministry and Department of Education, the Minister says that we must make certain that the 18 percent of the Budget allocated to education is managed productively and says the Ministry of Education will receive help in "improving efficiencies''.

The Minister said that for three decades Government has exercised a combination of good judgment and common sense to create a sound economic environment in which Bermudians could work hard and prosper and the new Budget follows the tradition. "I believe that Bermuda's potential is almost unlimited,'' Dr. Gibbons said.