commerce -- technology which could spell the death knell for companies which fail to keep up.

The bill -- which now goes to the Senate -- tells the world that Bermuda is "open'' for e-commerce, said Telecommunications Minister Renee Webb .

And Shadow Finance Minister Grant Gibbons told MPs that computer-based buying and selling was not just a potential "third pillar'' of the economy alongside tourism and offshore business, but vital to all sectors of the economy.

Dr. Gibbons said: "This particular revolution is going to redefine all business.

"It will rapidly redefine how people deal with their customers as well,'' he said, adding that companies which fail to keep up could find themselves out of business.

He was speaking after Telecommunications Minister Renee Webb opened the debate on the bill.

She told the House: "This Act isn't the be all and end all -- it's simply telling the rest of the world that Bermuda is open for business in respect of e-commerce.'' And she added that it was not Government's intention to stifle the industry with cumbersome regulations.

But she warned: "There are some types of business we don't want to attract to Bermuda.'' Ms Webb explained that Bermuda's laws were based on paper transactions -- not electronic ones.

She said: "This Bill clearly states that in Bermuda records in electronic form have force in a court of law, if the conditions set out in the Bill are met.'' And she said the new industry would offer a host of fresh opportunities for Bermudians in the future.

Opposition Leader and Shadow Telecommunications Minister Pamela Gordon , however, said that Bermuda could find shady operators trying to "slip in'' to Bermuda precisely because it had a good image.

And she questioned people being able to do Internet business using psuedonyms when Bermuda's reputation was based on "know the customer''.

She added that e-commerce did not create many new jobs -- but required reskilling among the existing workforce.

And Ms Gordon said proper training was vital if Bermudians were to take advantage of new technology.

She added: "I still believe we have to go further in the educational process for the people of our Country.'' And she warned that there were "nine or ten'' questions which still had to be answered.

Ms Gordon added that bringing forward a bill without accompanying regulations and a code of conduct for the industry "made no good sense''.

If Bermuda did not have the mechanisms in place to regulate the industry, it could damage the Island's squeaky-clean reputation.

She warned: "I would certainly implore the Minister to bring forward regulations at the earliest convenience and the code of conduct -- like yesterday.'' Ms Gordon added the boom in international business would begin to "level out'' in the future.

She said: "What is important to Bermuda is to make sure we keep up with the industry but that we maintain our reputation.'' The technical revolution isn't about creating jobs but is about eliminating them as we know them, said Finance Minister Eugene Cox .

He warned the House that as people communicated directly with each other, intermediaries would lose out.

He said that Bermudians needed to train in the new technology to ensure they weren't left behind.

He said: "We must hope for the best but plan for the worst.'' He added there was a danger of creating a new class of people -- those in the know -- while others without new skills to cope got left behind.

He explained: "People whose job it is delivering the mail will find e-mail eliminates the need for them.'' "Typists and secretaries will lose out.'' He said office and labour costs would be slashed as firms removed unnecessary overheads.

"The effect will be disastrous if people aren't prepared for what's to come.'' But he also said if Bermuda handled the new challenges then wealth would be created and distributed via the trickle down effect.

Home Affairs Minister Paula Cox said she hoped the new high-tech jobs wouldn't be snaffled by foreigners but that the education system would be geared to train locals.

She said of the new technology: "It's the responsibility of all of us to underline its importance to the young and not so young.'' She said the e-commerce bill was a great platform but further legislation would be needed to deal with future issues such as privacy and confidentiality.

Delaey Robinson (PLP) praised the Internet as an egalatarian device safe from outside interference.

He said: "It's a wonderful place where the government cannot control what is downloaded.

"It's a tremendous vehicle for people not to be restricted. It goes hand in glove with freedom of information and transparency.'' But he said costs of using the new technology in Bermuda were uncompetitive, adding: "We are shooting ourselves in the foot.'' Mr. Robinson also said he hoped kids would spurn TV and get into the new technology.

Development Minister Terry Lister said the web offered new opportunities for entrepreneurail spirit, particularly in the very young.

"It gives everyone the opportunity to progress. It's the start of something wonderful.'' Closing the general debate on the bill, Ms Webb said the Code of Conduct would be developed from the new legislation and that typically such codes follow the parent Act.

Ms Webb outlined how those who "know best'' will develop the Code and that consultation with people in the e-commerce field will take place.

Top UK law firm Linklaters assisted with the drafting of the bill and will also help in developing the framework for the Code of Conduct, as will local law firms and the Attorney General's Chambers.

Ms Webb also challenged Ms Gordon's statement that e-commerce does not create jobs.

Ms Webb said that not only did it create jobs, it created entrepreneurial opportunities. She outlined how many young people in the US had taken advantage of the opportunity to do business on the Internet and made fortunes doing so. She said Bermudians could do the same.

Concluded in Monday's newspaper