New regulations to ensure racial breakdowns in businesses are against the law, a top lawyer claimed yesterday.

And Tim Marshall predicted a legal challenge to the Commission for Unity and Racial Equality regulations could result in the new rules being struck down as unconstitutional by the courts.

But last night Development and Opportunity Minister Terry Lister brushed off the claim. And he pointed out Mr. Marshall had in 1995 attacked the previous United Bermuda Party Government's decision to include a race question in the Manpower Survey -- also citing the Constitution.

Mr. Lister said: "For him to have a problem with CURE, so what? I'd expect him to say that.'' And he added: "You can't have 500 people saying `this doesn't make sense' and 20 law firms ticking the box and suddenly one lawyer is right.

"I'll go with the 500 -- he can say what he wants.'' Mr. Marshall said: "I think from a legal perspective these proposed regulations are unconstitutional.

"They are too broad and they don't have a legitimate purpose the Government can point to.'' And he urged: "Businesses should consult with their lawyers and challenge this under the Constitution.'' Mr. Marshall said: "Our view, as a law firm, is that this legislation will fall and Government should rethink it.'' He explained that his reading of the regulations -- due to be put up for debate by Mr. Lister -- was that they contravened the section of the Bermuda Constitution guaranteeing freedom of assembly and association.

He added: "There are many business owners who would like to run their businesses on the basis that they don't take account of race -- and indeed the Constitution encourages them not to take account of race and to treat everybody equally.

"Right-thinking people will be offended when they come to learn what Government is trying to obtain out of these regulations.

"They basically force us to deal with individuals in a very arbitrary manner -- by what their physical complexion is rather than their actual qualities.'' He added: "If information is not provided, it will become a criminal act. If somebody is recruiting from overseas, they have the potential of being exposed to criminal penalties if they don't record the race of people they interviewed for this job.'' The proposed regulations cover any firm with ten or more employees and demands that those registered provide an annual breakdown on race, employment level and income of the workforce, as well as a racial breakdown of people interviewed for specific positions by race.

Race reporting laws `illegal' The CURE forms also ask for a list of people who leave companies by race and the reasons.

Mr. Marshall said that the regulations were unfair -- and smacked of rules introduced by repressive regimes like Nazi Germany, pre-civil rights America and apartheid South Africa.

He added: "They are very reminiscent of laws which were passed by governments now viewed as historical outcasts.

"This is why this legislation is very dangerous and why we should think long and hard before we embrace it.'' And Mr. Marshall added: "I don't think Government claiming they have a noble purpose will make this legislation good -- what it will accomplish is to create a great divide among the people of this Island.

"It's an unwarranted intrusion into people's affairs and people should speak out about it.'' And he called for Government to get back to the drawing board and obtain major input from the community before introducing any regulations.

Mr. Marshall questioned the usefulness of information obtained about racial makeup of any workplace.

He pointed out that -- if a black-owned business employed only black people -- that did not necessarily mean that the business was discriminating against white people.

Mr. Marshall asked how "that leap could be made'' based on the survey information and questioned the point of asking at all.

And he added that legal avenues already existed for individuals and Government to take action against anyone suspected of practicing racial discrimination.

Mr. Marshall said: "Every single one of us has the right to file a complaint if we feel our employer is engaged in racial discrimination and the Human Rights Commission has the power to investigate and find remedies.

"I just don't see why Government has gone to these great lengths -- the fact that they have should frighten people who can objectively look at this legislation.'' He added that information on race and work could be gathered in "a much less intrusive way'' -- like through the census, where consideration is already given to ethnic origin and income.

Tim Marshall: `Unwarranted intrusion into people's affairs'.