despite allegations they have risen alarmingly, senators were told yesterday.

Parliamentary Finance Secretary Sen. Grant Gibbons said despite "intense publicity'', the evidence was anecdotal and suggested only up to two dozen homes had seen marked increases.

The PLP's Sen. Terry Lister had asked him what action Government would take to stop Bermuda becoming too expensive for international business.

Dr. Gibbons said Government was monitoring the situation. But it was perhaps a temporary perception, and "market forces'' would hopefully correct it.

Sen. Lister also asked, "in view of the Minister of Finance's reported comments on the freeing of exchange controls'', how house values would be affected and what Government steps would be taken to ensure "there is no adverse effect on individuals' mortgage commitments''.

Dr. Gibbons said no firm decision had been made on exchange control, so the question was hypothetical.

Sen. Lister said commercial rental space in Hamilton was becoming scarce. He asked how Government would prevent an escalation in such rents, which could cut job opportunities for Bermudians.

Dr. Gibbons said he was not aware it was difficult to get commercial space.

Sen. Lister said Dr. Gibbons' answers had not been to the point.

He said he did not want rent controls on commercial space. But Government should encourage property owners not to raise rents "any old way'' and discourage new businesses from setting up.