Premier Ewart Brown yesterday launched a vociferous defence of his Government's financial record — saying it had no choice other than to spend money for the good of the people.

Dr. Brown said the United Bermuda Party Government had left the Island in such a state 12 years ago, cash had to be directed toward fixing social problems such as absentee parents, crumbling infrastructure, ailing Government buildings, antiquated transport system and an out-of-date tourism model.

"It was a situation that demanded a Government respond to those needs," the Premier told the House of Assembly as he kicked off the Progressive Labour Party's response to Shadow Finance Minister Bob Richards' Budget Reply.

"Under the previous Government, if Bermuda Inc. was doing well, Bermuda people were said to be doing well. Sometimes, what's good for the Bank of Bermuda might be good for Bermuda, but not automatically so."

Dr. Brown said money had been well spent improving health, fixing problems with racism and instability at King Edward VII Memorial Hospital.

He spoke against accusations of wastage, saying it was customary for costs to grow on construction projects such as his Tourism and Transport Ministry's Dockyard Pier; and that his recent trip to India had cost less than $40,000.

Reflecting on his own Ministry, Dr. Brown said: "We think that we are on track. We believe that with the amount of money we have, we do the best that we can and we are also committed to the idea that first and foremost in Bermuda's tourism rebirth is the establishment of new hotels."

Once again he promised visible progress would soon be made on hotel developments, saying: "I believe, Mr. Speaker, that it's going to happen in the near future."

And he claimed that contrary to reports his Government's relationship with international business is good, saying that he regularly has breakfast meetings with business leaders, and that Immigration Minister, Senator David Burch also reports healthy dealings with that sector.

Questioning why people say the relationship is faulty, he said: "Is it because we don't have a social relationship? As many personal connections? As many people over here who don't do business with international business people?"

PLP backbencher Dale Butler later said on this subject: "The Premier has one perspective, but when you speak to them on the other side you hear other concerns on the other side."

Dr. Brown concluded his speech by declaring himself "so proud" of what his Government has achieved.

"I'm not proud of the errors that we have made because in trying to execute an ambitious agenda it's inevitable that errors will be made. We acknowledge that," he said.

"We are still at work, moving in the same direction, putting the people first and achieving at a rate that far exceeds the productivity of the previous Government."

However, Grant Gibbons of the UBP said Government keeps repeating "it's not our fault" and blaming Bermuda's problems on the global climate and the legacy of the UBP.

He said this is getting " a little bit old" and it's time for the PLP to step up and be accountable.

He noted that the reply to the budget cited gun violence as "the greatest threat to the economy". He agreed, except, he said, this was the greatest threat "after the Government". Dr. Gibbons said the "tone at the top" is setting an example to young people that they can get away with doing what they want.

Dr. Gibbons also said it's wrong to impose tax hikes on businesses and individuals as it may harm the recovery.

He complained that most of this year's $77 million increase in payroll tax will be spent on sinking fund payments and payments on Government debts.

As for the $14 million to be raised from doubling the foreign currency purchase tax, Dr. Gibbons said this would not have a "terribly useful" effect because it will raise the cost of everything coming into the Island that has to be paid for in foreign currency.

He expressed concern that many international businesses are meeting the full 16 percent payroll tax — the company portion and the employee portion.

He reminded the House: "These companies don't have to be here."

Dr. Gibbons also cited concern over the level of Government debt.

"This kind of growth in debt is unsustainable" he said, commenting it could "crowd out" other people-oriented Government programmes in future as it will have to "feed the beast of debt on these loans".

Minister of the Environment Glenn Blakeney defended complaints that the planning process is slow. He said part of the problem is that people arrive without the correct documentation, yet are given a number and get in the queue.

This, he said "creates huge problems."

He also blamed those who bypass the process entirely and submit retroactive applications. He said increased fees would be imposed in future for those guilty of slowing down the planning process.

Mr. Blakeney also attacked those who criticise Dr. Brown for taking foreign trips, and said he is doing it for the good of Bermuda. He pointed to things he has achieved such as the fast ferries and new cheap WestJet plane service to Toronto.

He noted people criticised Dr. Brown going to India when there is a Bermudian student going there to "one of the best drama schools in the world" which is "pro bono, it's free."

"Why are we prepared to throw the whole country under the bus to get one individual?" Mr. Blakeney asked.

And he said he wished to commend Deputy Premier for her budget. He rounded on those who have criticised Finance Minister Paula Cox and "maligned" her credibility.

As Ms Cox said three seats away from him, smiling at his words, he shouted: "And now you are going to attack her through the might of your pen ink by suggesting she's not prudent, fiscally responsible?

"Do you not know she has thousands if not hundreds of people that love her in her country, who vote for her. They know we have challenges and it's not through lack of effort that we are responding to the challenge in honourable ways."

He also attacked those who have criticised the cost and time overrun for the new Police and court building.

"The building will be here for one hundred years," he said. "Divide that by whatever it costs to finish."

He said he could "guarantee" it would be worth more in one hundred years than it cost to build.

Mr. Blakeney shouted "how dare you" at those, who, he said, were criticising the Government of "the best country in the world".

But John Barritt of the UBP said people have a right to be concerned over what is going on in Bermuda. In particular, he cited recent news about the Bank of Butterfield. He said people are also concerned about unemployment and shorter work weeks.

On top of that, he said, are concerns over Government expenditure and debt, and over increased payroll tax and foreign currency purchase tax, the latter of which will send the cost of living up. Plus he noted that increased Government fees will affect everybody.

Mr. Barritt referred to a previous comment last summer from PLP backbencher Terry Lister that the debt levels were scary at $680.

"He said it was scary. What is it now?" asked Mr. Barritt. "That was Halloween time. Now it's Nightmare on Parliament Street."

He said Government is now budgeting on paying back $30 million of debt, about the same amount as the Environment Ministry gets.

Bermuda Democratic Alliance MP Mark Pettingill was next to his feet, questioning why PLP supporters were unable to admit that not everything is rosy.

"Supporters in the PLP need to stop acting like they support Manchester United until they die," said Mr. Pettingill.

He described tourism as flat and boring and said gaming could help attract more visitors, and warned Bermuda is no longer making itself attractive to the "bread and butter" of international business.

The lawyer then launched into an attack on Government — particularly Ms Cox — for failing to accept responsibility for its actions.

"Stop it! Stop making the excuse," he said. "If the Government is honest with the people of this Country can they really say that over the last ten years they have approached the finances of this Country on the basis that there may be seven years of lean that are coming?"

Of Ms Cox's claim that she is a mere "cog in the wheel" unable to refuse Ministers' requests for more money, Mr. Pettingill said: "To hear that admission was worrying to me because what it says is, 'other people in my Government have been able to dictate how money was spent and I haven't had the control over that I should have had'."

PLP backbencher Wayne Perinchief repeated his previous claim that the payroll tax increase would hurt the working class.

"We are all aware of the imbalance of the weight the poor man is put under in this economy," said the former Culture Minister. However, he said Mr. Pettingill and others were wrong to make personal attacks against Ms Cox, and that the Opposition was disingenuously acting as though the global economic downturn was not a major factor behind Bermuda's problems.

He claimed that some in the UBP had experienced difficulties themselves in recent weeks because they have been close to Butterfield Bank.

And Mr. Perinchief backed the Premier's claim that the infrastructure was in tatters when the PLP took over leadership of the Country from the UBP.

Many of the PLP's projects, while creating a deficit now, will reap benefits for many years to come, he said.

Fierce FutureCare critic Shadow Health Minister Louise Jackson spoke next, claiming that 66- to 69-year-olds are being discriminated against because they are excluded from the initiative.

Mrs. Jackson also hit back at those who have gone on the radio to discredit her comments, telling the House: "To top the whole thing, they turned me into a Nazi. Oh yes! Those of you who didn't hear it, I was accused of having a plan to kill Jews, euthanasia.

"That's absolutely the bottom of the barrel. When you stoop that low you have lost the argument. It's pathetic. The promise of FutureCare is too big for Bermuda. It needs to be revamped; it needs to be revised."

Donte Hunt of the Bermuda Democratic Alliance said his party supported the concept of FutureCare.

However, he expressed concern that the cost of the plan has shot up from an initial $262 to $600.

He wondered if this was affordable for seniors, and suggested the price hike had caused seniors to lose faith in the Government initiative.

"It speaks to Government's inability to provide a sound, well planned initiative to seniors," he claimed.

He said there was some merit in the solution brought forward by the official opposition, the United Bermuda Party, that FutureCare should be means-tested.

He went on to give "kudos" to Government over its Mirrors youth intervention programme. However, he said the budget statement was short on benefits for young people, which is "deplorable" to him.

Mr. Hunt called for a state-of-the-art youth centre as "you know what they say about idle hands and that's the problem we have today".

Minister of Works and Engineering Derrick Burgess opened his speech by criticising the fact that the Opposition reply to the budget refers to Minister of Finance Paula Cox as "she" and "her."

Mr. Burgess said: "I think that's unparliamentary and I would ask for it to be removed. I take it personally that this is how they refer to the Finance Minister. It's unparliamentary language and very disrespectful."

He requested a ruling on the issue from Speaker Stanley Lowe. The Speaker said at the end of Mr. Burgess's speech: "I will take it under advisement."

Mr. Burgess praised the budget and said Bermuda is being "prudently managed" by the Minister of Finance.

Independent MP Wayne Furbert said the budget is not perfect, but it is good. He said there are some things he would have done differently "but you can't help but say that this little country of ours is blessed" in comparison to places such as Haiti.

Shadow Minister of Works and Engineering Patricia Gordon Pamplin recited the nursery rhyme about Old Mother Hubbard who went to the cupboard and found it bare. She equated this to the job that the Finance Minister had to do when compiling the budget.

She said that due to "fiscal indiscipline and lack of restraint and constraint," the Minister not only opened her cupboard to find it bare, but there were also "$53.5 million of IOUs."

Mrs Gordon-Pamplin added that according to a survey she's seen, the increase in payroll tax raided the burden for class four insurers by between 42 percent and 76 percent on what it paid before. She said some companies find their "expense ratios are going through the roof" in combination with things like increased US taxation.

Mrs. Gordon-Pamplin is the chief accountant for a class four insurer.

She said this could mean in some cases an additional $100-$150,000 per year. And she said in one instance of a class four company, the payroll tax bill will be over $1 million in additional payroll tax as a result of the budget increase.

She said the payroll tax rise was a mistake in the current economic conditions, and suggested Government should rethink it.

Mrs. Gordon-Pamplin also suggested that the "budget estimates book" which gives a detailed breakdown of the budget would be made public and published online, since this is not done at present. She said misinformation abounds when it is withheld or non-existent and it is not right to "keep people in the dark."

Former Education Minister Randy Horton said Mr. Richards and Mr. Pettingill were "totally out of order" for what he described as personal attacks on Ms Cox.

Mr. Horton said tough decisions had to be made but that while everyone complains about taxes people must acknowledge they are necessary.

He predicted that Government would come back next year having saved a thousand dollars more than estimated, pledging: "We are going to be the best Government that ever there was."

Mr. Horton said Mr. Richards's Budget Reply had shown plenty of doom and gloom, flogging and spanking, but took heart from the Shadow Minister's declaration that he remains bullish on Bermuda.

"He really believes that over on this side of the House are the people who can bring this Country through the recession," said Mr. Horton.

Continuing the theme was Independent MP Darius Tucker, who spoke about the importance of remaining positive.

Mr. Tucker said he believes Ministers will run their Ministries effectively and efficiently because they know that's what's best for Bermuda; although he urged Public-Private Partnership contracts to be carefully thought out for the benefit of the Island.

Health Minister Walter Roban praised Ms Cox and her team for the Budget and then told how his Ministry was on the verge of "revolutionising health care".

Mr. Roban said FutureCare is a key part of that revolution. Responding to Mr. Richards' claim that they should go back to the drawing board on that project, Mr. Roban said the UBP had not shown any figures indicating what such a move would cost.

He also criticised Mrs. Jackson for what he described as "fantasy math".

See Monday's edition for more from the debate on the Reply to the 2010 Budget