The Bermuda Public Services Union (BPSU) held an emergency meeting over pay which resulted in hundreds of workers gate crashing the Throne Speech.

In an unprecedented move, BPSU white-collar workers marched on Cabinet, just before the delivery of the Government address by Governor Sir Richard Gozney.

According to BPSU president Armell Thomas, Government offered members a four percent increase, subtracting one percent for pensions. The cost of living however, was estimated at 4.7 percent, and members demanded a 5.1 percent increase.

The Throne Speech

When asked what the top priority was in Government's vision, Premier Ewart Brown replied "education, education, education", echoing the UK Labour Party slogan.

Government was to institute "real accountability for principals, teachers and students", with rigorous academic standards to be enforced.

Free childcare for children under four, better health coverage for seniors and interest-free loans to buy homes were also promised.

Government also said it would modernise the Corporations of Hamilton and St. George's, as they were "outdated" and did not "reflect modern good governance". Proposed amendments to the Municipalities Act 1923 were suggested, "to better serve the people of our past and present capitals".

But Hamilton Mayor Sutherland Madeiros said the Corporation had already started its own review of the Act. "I think it's been run extremely well over the years," he said.

The Corporation was criticised for holding meetings closed to the public and for having an election franchise not based on universal adult suffrage. Business owners had one vote each while residents had one per household.

The Throne Speech also outlined FutureCare – healthcare services for seniors at the same standard they received pre-retirement, plus free dental care. Dr. Brown said the scheme would be "modelled along the lines of the Medicare Programme in the United States".

Government also wanted to bring in a self-regulatory Press Council to enforce compliance with a Code of Practice. But with no further details on the proposal, editors of The Royal Gazette, Mid-Ocean News and Bermuda Sun warned that such a body must not be used by politicians to score points against the media or thwart the pursuit of truth.

Bill Zuill, editor of The Royal Gazette, said: "We would be strongly opposed to such a council if it was subject to any kind of political control, or if the intent was to use it as a tool to limit freedom of speech."

The Budget

Finance Minister Paula Cox's fifth Budget does not float everyone's boat, as the duty on vessels soars from 33.5 percent to 55 percent.

Announcing the Budget, Deputy Premier Ms Cox said: "Pleasure craft including motorboats and sailboats are luxury items. Their numbers continue to proliferate, which is a reflection of the growing levels of income and wealth in our community."

But Lyle Douglas, manager of Marine Locker, said: "This has basically added 20 percent to our overheads and we are a small Bermuda business and it is just deadly for us.

"And the other thing is them (Government) acting like people going on the water is a privilege and a luxury – it is as if it is something only the rich can do, and now they are ensuring that.

"Even duties on rowing boats are 55 percent – it does not make sense."

Meanwhile, social insurance contributions are increased by 6.75 percent to cover a five percent increase in pensions and allowances for seniors. There is also a 0.5 percent hike in payroll tax for employers.

Government aims to collect $985 million in revenue from the 2008 Budget – a 7.5 percent increase on the 2007-8 estimate of $917 million. It will borrow a further $111.4 million to fund capital projects.

Capital spending is set at $155 million, $125 of which will be spent on housing initiatives, seniors' facilities, improvements to schools, the airport and cruise ship docks, plus the redevelopment of the Port Royal Golf Course and the new court and Police complex.

Money is also allocated for remediation work at Morgan's Point and the former Club Med.

The Budget sets account expenditure at $931 million, giving a Budget deficit of $131 million. It brings the total level of Government debt to $465.4 million, compared to $256.5 million two years ago.

Other items of note include concessions for retailers, free Bermuda College education, plus 500 interest-free, down-payment loans for first-time Bermudian homeowners. Another $1.5 million is allocated for childcare for qualified Bermudian families with children under four.

The Bermuda Police Service also receive a ten percent funding boost to help overseas and local recruiting, in a bid to stem the tide of "lawlessness" on the Island.