the future, Shadow Finance Minister Mr. Eugene Cox charged yesterday.

"Mr. Mrs. and Ms Average Bermuda will bear the heaviest tax burdens,'' he told MPs.

"It was not enough that they were the ones who bore the brunt of the recession. Now they are being forced to bear the burden of the new taxes that are supposed to put the Country back on its feet.'' Attacking Government's plans in his official reply to the Budget Statement, Mr. Cox mocked the UBP's troubles over Independence.

He said international business would not dry up if the PLP, the "Government in waiting'', came to power. What business really feared was instability.

"Right now, with all this talk about a Commission of Inquiry, a referendum and Cabinet resignations, Bermuda under the UBP Government does not appear to be as stable as it should be.'' For Mr. Cox's full Buget Speech, see Pages 4-7 .

Premier the Hon. Sir John Swan ridiculed Mr. Cox's speech. "Having been given a week to prepare, I'm amazed and shocked by the lack of substance.

"We have heard for the past hour how money is going to be spent, and I keep waiting as to how money is going to be raised.'' As the Speaker warned MPs to calm down or be thrown out, Sir John said it was easy to make promises. "It's harder to earn money, to save and invest, than it is to spend.'' Bermudians had "over-extended themselves''. This tendency was rampant in the Country and evident in Mr. Cox's speech.

He added: "Bermudians during this recession have been better cared for than any Country in the world.'' He denied the tax burden was on the average working man. Smokers, drinkers and those with big houses would have to pay substantial increases.

PLP proposals would lower Bermudians' standard of living, he said. The Budget plan was to raise taxes "moderately'' while being sensitive to the consequences, and to stimulate the economy.

Tourism and international business were reaping the benefits of Government policy.

He said workers and employers had to become partners in survival, as the world changed and jobs became harder to come by.

Government had invested in the future -- in education, health and "bricks and mortar''.

Sir John said the Opposition response did not deal with how money would be raised for its spending initiatives.

He recalled the Opposition-organised protest marches against the 1990-1991 Budget -- a "harsh'' document that gave revenue-room to Bermuda to deal with the recession pressures against it.

The Premier said it was vital to always run the Country with a current account surplus and prudent borrowing for its capital building projects. Only through such management could the Island maintain credibility and the wherewithal to meet its needs.

PLP suggestions to cut taxes would undermine important spending such as for social services.

"One has to weigh theee things against minor cuts,'' he said. The Premier criticised the call for a freeport or free zone at the base lands such as was once advocated for Dockyard. Technology had changed the nature of free zones.

"Unless you have something very special, it's hard to justify one,'' he said, adding that Bermuda's high labour costs and expensive real estate would take away from any free zone's attractiveness.

"We should integrate these bases into what we do (as a country) and then do more of it and do it better.'' He rejected Opposition statements that the National Stadium was a failure. The Budget had given the stadium trustees $1.

4 million to "go ahead and get the job done.

"I think we'll see a lot of progress in that area.'' Sir John turned on Opposition comments that the UBP's consensus approach was not working.

"How can you say you believe in people power and not allow it to take place,'' he said. "These statements camouflage their ability to produce a good Budget response.

"The Budget response lacks substance, guidance and indication they are capable of running the country.'' Opposition Leader Mr. Frederick Wade said it was his party's Parliamentary duty to examine in the next two weeks "how Government raises and spends money and to examine its priorities''.

He said his party was not privy to all the economic data to produce a detailed budget for Education, for example. And if it tried to "we'd be laughed out of the House''.

Mr. Wade stressed that the Government should focus on simple solutions in approaching problems. One example of simplicity, would be to set up a register for Bermudians interested in jobs at the airport when the facility is taken over by Bermuda.

"It's time to start to act in that simple kind of way,'' he said. To a chorus of catcalls from the Government benches, Mr. Wade said the Government was going to impose an income tax next year.

"That's what the new payroll tax is,'' he said.

"We've learned hidden agendas are your programmes not ours. You're the one who deceived the voters. Government deceived the voters when it did not tell them they were going to introduce this.'' Mr. Wade said the Government lacked integrity.

He expressed concern that the one percent increase in the Hospital levy would affect workers, particularly those working for charities which do not pay a portion of their employee levies.

Mr. Wade said the Budget would hit the ordinary man, particularly the so-called sin taxes.

"In Bermuda, our national sport is drinking,'' he said. While Bermudians drink too much, it didn't take away from the fact that the ordinary man's idea of recreation is "to go to his club and drink.'' Mr. Wade said he was not yet convinced removing interest rates was a good idea. He was, however, convinced it was a bad idea.

Government was pandering to the power of a few powerful Bermudians who have either "have Government in their pockets or the Premier's ear or the Finance Minister's ear,'' he said.

"I don't see the benefits. We're doing this for two percent of Bermudians so they can get richer.'' He predicted Bermudians would be subject to mortgage rates in other countries -- an unsettling situation given that the average Bermudian mortgage was about $250,000.

Mr. Wade said there already were signs of interests rates going up, meaning Bermudians would be faced with higher rates.

He saw problems down the road. Money that left the Island would not return because of worries about a PLP Government and a new round of (exchange) controls.

Mr. Wade panned as "pie-in-the-sky nonsense'' the idea of foreign investment earnings becoming a third pillar of business earnings.

Mr. Wade questioned how much money was owed to the Hospital levy and whether the Minister would consider writing it off to give small businesses relief.

"This would not be any real hardship to Government and would do a great deal for small businesses in keeping their commitments and to keeping their jobs going,'' he said.

Mr. Wade said there used to be a policy whereby salary increases for MPs followed BPSA increases.

"We've now gone six years without an increase,'' he said. "MPs will have to make a decision about what to do about that.'' Mr. Wade said he thought MPs "do work very hard and by and large earn their keep.'' The Opposition Leader said he was amused to see Government squirming over the discomfort aroused by its Independence plans. To see Front Street saying Government is wrong about Independence and that it was causing uncertainty reminded him of old bogeyman charges hurled against the PLP.

Government, he said. was now "reaping the whirlwind of its own policies. Now Front Street was finding that it's not the PLP creating instability "but the very power over the years they have been helping.'' "We believe Bermuda could have pursued the question of Independence in a civilised and calm manner that the Premier has not achieved,'' he said.

"We hope we can bring some sanity to the situation so that overseas guest companies will appreciate that Bermuda can have constitutional changes without the instability that people are now discussing.'' If the Premier continues as he has been going then "instability is the natural result''.

Mr. Wade hel his harshest words over Government's organising effort to get names for the various committees involved in the takeover of the Bases.

The PLP had been invited by letter to submit names for two places: one on the utilisation committee and the other for inventory committee.

One condition was that they not be MPs, he said. Mr. Wade didn't think this fair given that politicians would be involved on the Government side.

Mr. Wade said the offer was insulting.

"We will send him names,'' Mr. Wade said. "We would rather have MPs who are in the room -- people who represent people and who are fully conversant with these matters as opposed to lay people from the community.'' Mr. Wade said the Premier was treating the Opposition like "little school boys, giving it two out of maybe 34 on the Bases committees. We find this contemptuous and disgusting.'' Mr. Harry Soares (UBP) took issue with Opposition claims that the Budget hurt the ordinary man. Rather, the "sweetheart Budget'' imposed only a five percent tax hike when incomes had risen 5.5 percent.

Criticism of rising passport costs were unfounded in that the $5 increase amounted to something like 50 cents a year.

Similarly, the the rise in land tax would cost the 25 percent of property owners in the bottom bracket less than $5 a year.

Sin tax hikes were justified, he said. Heavy smokers and drinkers tended to use the Hospital more. With Hospital costs increasing it only made sense to get the money from people who use it more.

"You don't get something for nothing,'' he said.

Similarly, users had to pay for the salary rise at the Transport Control Department as well as the road improvement programme. Car licencing fees were going up about $6-$7, the first increase in two years.

"I don't see how $6 to $7 is a major problem for small car owners,'' he said.

Mr. Soares said the PLP claimed the lifting of foreign exchange controls would hit lower income groups.

It was a tribute to the United Bermuda Party that many homeowners were in these groups.

Mr. Soares continued by stressing Government had never maintained it was planning an influx of foreign banks -- contrary to PLP assertions.

This was an example of "emotional trickery'' by the Opposition, he said.

"I have never heard the Finance Minister ever espouse the theory.'' He added: "It almost seems the Opposition wants to mislead or keep the public in the dark.

"They always seems to be opposed to anything that will help the common person.'' Mr. Soares then turned to the Small Business Development Corporation.

The Corporation served two functions: to give business advice, and provide guarantees for loans.

"I would hate to see Government go into banking.'' Mr. Soares, switching to tourism, said the PLP wanted more focus on the European market.

He pointed out there were extra funds allocated in this area.

Mr. Soares described the PLP's call for a joint venture on air charters as a "new twist'' on their old idea of having a national airline.

Mr. Nelson Bascome (PLP) said Government was always talking about things getting better in Bermuda.

But better for whom? Mr. Bascome said he often came across people who were still reeling from the recession.

He added he was disappointed Dr. Saul did not tell people where Bermuda stood with regard to NAFTA and the European Community.

Mr. Bascome said there was no "thrust'' in the Budget to help people in the 16-35 age group.

Many in this category needed retraining.

Mr. Bascome voiced concern at the number of black Bermudian males finding difficulties in getting a job.

"I have a real problem with the way they are being left out of the process.'' Mr. Bascome accused Government of a "band-aid'' approach to Bermuda's problems.

There was no point in putting a band-aid on an untreated wound.

Bermudians were a proud people and did not want to depend on Government for help through social assistance.

Young black men were crying out for employment. It was upsetting to see contract workers doing jobs Bermudians could do.

Mr. Bascome finished by stressing the need for a return to family values.

"We have to provide the family agenda,'' he told MPs.

Mr. David Dodwell (UBP) praised the Budget.

"I believe we have got it right,'' he said.

Mr. Dodwell, a hotelier, said it was a "tourism-friendly'' budget.

He described the general tourism picture for MPs, saying arrivals last year had risen 10 percent, and occupancy levels had also gone up.

Mr. Dodwell hoped to see further growth, with levels reaching 65 percent.

This would enable Bermuda to return to the position it enjoyed in the late '80s.

Mr. Dodwell said the recent announcement of air fare reductions were welcome.

The economic benefit would last throughout the summer, he added.

Mr. Dodwell, however, reminded MPs of the major losses suffered by the large hotels.

And since 1983 2,000 hotel beds had closed.

Mr. Dodwell praised a cooperative effort between Government and the hotel industry.

There had been a meeting between the two parties to boost business.

Mr. Dodwell picked out the extension of the Duty Relief Act for particular praise.

"I believe a case can be made for extending it until the industry is turned around.'' He also applauded lower duty rates, restructuring of airport tariffs, and planned road surface improvements.

Mr. Dodwell attacked PLP calls for another cruise ship.

"Nothing could be worse at this moment.'' Mr. Dodwell praised the Tourism Ministry's advertising and marketing campaign.

It was wrong for the PLP to call the advertising "stuffy''.

Mr. Ottiwell Simmons (PLP) described the Budget as a "poor man's burden in disguise''.

He said people were being hit by a retroactive tax system.

Mr. Simmons attacked Mr. Dodwell for not paying recognition to the efforts of 3,500 workers in helping the hotel industry.

It was typical of the UBP's failure to appreciate the working classes.

Mr. Simmons accused Mr. Dodwell of being one of the hoteliers who refused to sign a collective bargaining agreement.

And he asked why Bermuda's 13 smaller hotels had not made public audited accounts.

It was because these hotels were not showing the losses of the larger ones.

"The hotel industry is not doing as badly as they make out,'' he said.

Mr. Simmons said while the large hotels complained of losses, they had a big cash flow.

He went on to describe a huge gap in wealth between different segments of the community.

There were more and more poor people in Bermuda these days, he said.

The Salvation Army, for instance, was working flat out to help people find beds.

Mr. Simmons continued by attacking Government for not producing jobless figures.

He said Government was breeding discontent and a spirit of "I have got to get mine too''.

"We are heading towards a calamity,'' he warned. Mr. Simmons finished by urging people to rebel against the one percent tax increase.

"People should not pay,'' he said, calling on Government to "get it fair and get it just''.

Transport Minister the Hon. Maxwell Burgess immediately paid tribute to working class people.

He said they had borne the brunt of the recession, and many were still reeling from it.

"The road to recovery is long for some.'' Mr. Burgess said the budget was designed to get back to work.

Hoteliers had been given incentive to refurbish their properties, for instance.

In contrast the PLP had adopted a "spend, spend and spend some more'' approach.

The Opposition also spoke of introducing an "equitable tax'' -- but released no details.

Mr. Burgess said "protection of jobs'' was the way ahead in the '90s.

People will have to work harder, and be smarter.

Mr. Burgess continued by saying Government had a good track record in helping people when interest rates "get out of hand''.

Shadow Youth and Sport Minister Dr. Ewart Brown started with an appeal to MPs.

"I hope maybe we can rid ourselves from the unnecessary divisiveness and haranguing which comes with the colonial system.'' He also hoped voters would tire of this approach.

Turning to Mr. Soares' speech, Dr. Brown spoke of waste and inefficiency at the hospital.

It was wrong to hail a cat scanner as being on the cutting edge of technology.

This did not prove Bermuda had an excellent hospital.

Dr. Brown said Government often compared Bermuda with the Caribbean.

To some extent it was accurate to say Bermuda's hospital was better than those over there.

But why didn't Government try to match the hospital's technology with its boast about Bermuda being one of the richest nations in the world? Dr. Brown urged people to look at those who used the hospital.

Between 80 and 85 percent of the hospital's population was black.

This was a reflection on their lifestyles, and demonstrated the stresses and strains they were under, Dr. Brown said.

Dr. Brown concluded by saying: "If the banks used the same technology as the hospital does they would be outdated.''