The Senate agreed to pass a bill yesterday that will establish the setting up of the new Unemployment Insurance Fund to financially assist people out of work.

Government Sen. Patrice Parris said this piece of legislation would prove helpful in the long-term to many workers who ever found themselves without a job.

She said the fund would be started by transferring $1 million from the Consolidation Fund.

Sen. Parris said consultation would now begin with stakeholders in the community, and said the most efficient administration and management" would be put in place to ensure that it ran smoothly.

But United Bermuda Party Senate Leader Kim Swan said he was not impressed.

He said: "This is a classic example of where the Government makes a commitment first and then goes to the consultation process after the fact.

"We have this bill here today. Obviously, we show good faith, but there is a lot of discussion that needs to take place and we look forward to any opportunity to make representation at that time."

Independent Senator Walwyn Hughes said Sen. Parris had introduced the bill as being helpful to workers. He said, obviously, the intent was to be helpful, but said little was known about how it would operate. He said no one knew if companies would have to contribute, or if Government would also contribute.

He said: "Until we know how it will be, it's difficult to know how helpful it will be.

"You only get out of these schemes what you put in. Somebody has to put it (cash) in. Some has to come from the employees. Money has to be put in from somewhere."

And he said he was concerned about those people on lower salaries who were already hit by large deductions from their wages, who may not be able to afford more. "Having said that, if you can get this thing working, it may be of help," he added."

But Minister without Portfolio and Government Leader in the Senate Colonel David Burch said this bill only sought to establish an Unemployment Insurance Fund.

He said: "It does not cover the terms and conditions of unemployment insurance. It needs to be brought before the legislature. It's going to come back to us."

Also passed in the Senate yesterday were The Customs Tariff Amendment Act 2002; The Trusts (Regulation and Trust Business) Amendment Act 2002; The Land Tax Amendment Act 2002; and consideration of draft regulations entitled The Government Fees Amendment Regulations 2002 was given and approved, as the draft regulations entitled The Government Fees (Trade Marks and Service Marks) Amendment Regulations 2002.