needs is a sound Government plan to beat recession.

That was the message yesterday from Shadow Finance Minister Mr. Eugene Cox.

Mr. Cox welcomed Monday's announcement from the Bank of Bermuda that rates would drop half a percent in December.

"We are grateful for the bank's largesse, especially given the current economic stagnation,'' he said.

"But interest rates are only a tool - a short-term palliative. Until business and individuals have confidence in the future ahead, they will tend to curb spending, despite the interest rate cut.

"The unemployed and the ailing businesses who need the boost more than most will not benefit directly. To turn our faltering economy around there has to be a well thought-out plan.

"The Government of the day, the UBP, have a duty to take measures to get the Country moving and to get the people back to work.

"The Government must follow the lead of the private sector and set about injecting money into the economy to spur job creation.

"They cannot sit by while managers and employees are losing jobs due to lay-offs and redundancies.'' Hotels were closing and small businesses were going bust, Mr. Cox added.

Government had to do its part by creating jobs, and by education, training and retraining.

Deposit companies and the Island's two other banks were yesterday still considering how to respond to the Bank of Bermuda move.