Government needs to cut staff levels to save cash with no end in sight for the global economic crisis, Shadow Finance Minister Bob Richards said yesterday.

Mr. Richards predicted the Island will feel the pinch for another six months at least, as trends in the United States show people are spending less now than in March, while the US unemployment rate remains high.

He said the culture of "staycations" in America — people taking vacations at home instead of travelling to destinations like Bermuda — would hurt the Island for months to come.

Mr. Richards told a press conference Premier Ewart Brown and Finance Minister Paula Cox had done a "remarkably poor job" steering Bermuda through turbulent economic times.

He claimed the pair had ignored his previous warnings and urged them to take action ahead of an expected "double dip recession" — despite yesterday's welcome news the Island's outlook from financial analysts Standard & Poors has been upgraded from negative to stable.

After the press conference, Mr. Richards explained how Government could tighten its belt.

"They continue to hire. Two years ago, I said they need to freeze the size of the Civil Service," he told The Royal Gazette.

"You just can't keep adding civil servants because somebody needs a job. When I see the numbers start going down I will start getting encouraged that at least they are getting the message."

According to this year's Budget, Government has an estimated 5,858 full-time employees for 2010/11; ten years ago, that figure was 4,825.

Mr. Richards said numbers could be reduced by failing to replace staff as they retire, something likely future Premier Ms Cox has pledged to do.

He has frequently complained Ms Cox did not heed his warnings in 2007 that an economic storm was heading to Bermuda, leaving some in the Progressive Labour Party joking Mr. Richards must have a crystal ball.

"She needs to start to listen to some of the things that we have been saying this time," he told the press conference.

"Nobody has a crystal ball, but at the same time we can predict things like the economy like we can predict when there's going to be a hurricane.

"It's a bit late to start living within your means, but it's not too late. The medicine is going to be much more bad tasting than it should be."

Official Opposition chair, Senator Jeanne Atherden, said the United Bermuda Party faces continual criticism for only being experts on finance, adding: "We have that expertise; you should listen to us."

Mr. Richards also said he doesn't believe Government has much ammunition left to fight a recession in the construction industry, because it overspent in previous years.

He said Government's role should be to smooth out the natural peaks and troughs of the business cycle, but instead it has allowed the economy to overheat in good times and not done enough to help people in the tough times.

And he warned crime is the biggest threat to Bermuda's economy because potential visitors would be put off by reports of gangsters shooting each other.