companies, yesterday enjoyed bipartisan support as it sailed through the Senate.

UBP Senator Allan Marshall told the Upper House that the Companies Amendment (No. 2) Act 1998 was the result of an internal review of the incorporation procedures.

The legislation repeals the need for Ministerial consent and advertisement in the incorporation procedure. But the Bermuda Monetary Association will conduct a vetting process on the firms before they are incorporated.

"It will speed up the process for about 30 to 40 percent of the applicants,'' Sen. Marshall said.

Under the Act a new category of restricted businesses, including banking and insurance firms, is introduced which do require permission.

And the new legislation allow exempt companies to have longer leases on office space in Bermuda. Overseas firms based on the Island can now have 50 year leases instead of 21 years.

It had been argued that 21-year leases were not long enough to allow firms to write off major improvements.

Senate President Alf Oughton said this aspect of the Act would provide a sense of security for all involved.

"Hopefully we will see some fruits from this change,'' he added.

PLP Senator Terry Lister called the legislation a positive one which would allow Bermuda to remain competitive.

"Removing the need to Gazette is a good thing,'' he added. "It is a good move to speed up the process. This also places greater reliance on the Bermuda Monetary Authority.'' After stressing the need to know "who you're getting into bed with'', Sen.

Lister applauded a clause in the Act which allowed an outgoing auditor to communicate with his successor.

"It makes it safer,'' he said. "The old auditor can inform the new one about everything going on in the company.

"And he has the right to stand up and address the annual general meeting.'' Independent Senator Walwyn Hughes threw his support behind the Act, saying it was a "very good piece of legislation''.

And he echoed Sen. Lister's stance that it was important to have good vetting processes in place.

After noting that there was a great deal of competition in the off-shore arena, Government Senate Leader E.T. `Bob' Richards reassured his colleagues that Bermuda had not "diluted the quality'' of its product.

"We are just responding to fierce competitive pressure''.

Senators also passed two other pieces of financial legislation -- the Government Fees Amendment (No. 2) Regulations 1998 and the Bermuda Monetary Authority (Amendment) Act.

Together they will give Government the power to set fees for applications for the classification of mutual funds on the Island. And they will allow the Government to collect fee rates for annual Public Telecommunications Licences.

A Class A licence will cost six percent of total revenue in Bermuda or 20 percent of profits, whichever is the greater. Class B licences will rake in three percent of total revenue in Bermuda, while a Class C licence will cost the applicant $2000 on the granting of a licence and three percent of total revenue in excess of $100,000 after the first year.

Sen. Richards pointed out that the difference in price for a Class A and Class B license reflected the fact that Class A holders received a duty exemption on their imported telecommunications equipment.

Sen. Lister supported both Acts and said the reforms reflected the changes in the way locals did business.

A proposal to stop existing pension holders getting refunds on their contributions was rejected by Senators.

Sen. Terry Lister moved that a section within the new national pensions scheme, which allows refunds from a pension started before the new act came in, should be deleted.

But a vote of seven to four rejected his motion.

Sen. Allan Marshall said the effect of Mr. Lister's motion would be self-defeating and a backward step.

He was speaking as Senators passed the National Pension Scheme (Occupational Pensions) Act 1998.

Sen. Alf Oughton