The Premier's economic address to the Island was disappointing with its lack of specific solutions, according to community leaders who also asked for more investment.

Premier Dr. Ewart Brown on Monday night, warned tourism and the insurance industry would not be immune to international economic crisis, while heralding the help various social programmes were giving to working families and seniors.

Dr. Brown said that the Government, however, was committed to providing free childcare to those making less than $70,000 a year, free Bermuda College tuition for students pursuing their first bachelor's degree and free student transport, adding that these programmes "are forward-thinking because they were designed to take some of the stress off working families".

Questions to the Premier about how much these would cost remained unanswered last night.

Craig Simmons an economist and Bermuda College lecturer said he recognised that these programmes were a step in the right direction, but said he had hoped for more to help empower people such as income supplements.

He said: "Low income households have not shared in Bermuda's economic success. Low income households have been living under increased pressure since food, gasoline and commodity prices started their meteoric rise earlier this year.

"These households need support. Free public transportation and tuition for students, as well as free day care are a step in the right direction, but these initiatives fail to consider the needs and preferences of individual households: their medical, dietary and housing needs.

"In light of present circumstances and the time that has passed since food and commodity prices began to adversely affect our people, I expected Government to deliver on its commitment to empower the disadvantaged to fight poverty.

"I expected a policy initiative that would firstly, target the poor directly, that would secondly, be transparent to those applying for assistance as well as for those who are footing the bill, and that would thirdly, be temporary — until the recession is over.

"As an example, income supplements for families below the poverty line are the cheapest and most effective way of addressing the needs of the poor."

Dr. Brown gave his 12-minute speech, broadcast on ZBM, VSB and CITV.

He did indicate that far more work had been done than he disclosed in his speech adding that capital and public projects would be phased-in to secure employment in the short-term.

Shadow Finance Minister Bob Richards, however, said Parliament was told all travel was essential and said the lack of specifics indicated there was no planning on Government's part for warnings that came months ago.

"I think what is clear here is that the Government has been totally surprised. They have been caught totally unprepared despite our warnings in February in our budget speech," he said.

"The only solutions presented are to cut non-essential travel, but we were told in Parliament all travel was essential. It shows that they were not prepared for this at all. They were living in a fantasy world."

Cheryl Packwood, CEO of Bermuda International Business Association, said they welcomed the Premier's address and praised the Minister of Finance for her careful management.

But she added that the Government should have more focus on potential regulation change in America.

"While the Premier is right to be concerned with spending, we should also recognise that our partners in government in the United States, Europe and Asia are taking bold steps to continue to invest in their financial sector to ensure the overall health of their economy," she said.

"Bermuda may not need to take these steps, but we should consider other investment. We also believe that with a change in administration in Washington, Bermuda should be focused on building relationships and explaining our role, so we do not become a misguided target in the re-regulation of America's financial sector.

In his speech the Premier did promise continued spending on capital and public projects as part of a phased-in process, and said hotel projects continued to be on the move.

Alex DeCouto, president of the Construction Association of Bermuda, said: "Where Government could make a difference is to spend on capital projects. This keeps locals employed during down time. There are already Bermudian construction workers that are feeling the pinch."