Saying Government's new role is to broker partnerships, Government Senate Leader Lynda Milligan-Whyte yesterday kicked-off debate of Government estimates on revenue and expenditures for 1997-98.

Government would not be passive, rather it would act as a facilitator, coordinator, and stimulator to help Bermudians adjust to the rapidly changing circumstances of the "digital revolution''.

Sen. Milligan-Whyte told the Upper House Finance Minister Grant Gibbons' Budget reflected an understanding of global economic changes, changes as far reaching as the 19th Century's industrial revolution.

With significant capital and operational spending in areas such as education, the Budget provided support to the Island's young population and not just the privileged few, she said.

Sen. Milligan-Whyte pointed to the partnership forged between Government and the international business sector as evidence of a pro-active partnership that works. For a small island with a limited resource base, such partnerships were vital if Bermuda was to continue to do business on a global scale, she said: "We have weathered the storm that had arisen from the pullout of the bases,'' closures forecast to cost around $50 million. Through good financial management however, the impact of the closures had been minimal, she said.

She acknowledged tough times remained in the tourism sector, but Government had brokered partnerships with the hotel industry, tourist boards, and the unions to carry on efforts to rebuild.

Two success stories meanwhile were the transition of the International Airport to local control, and the Bermuda Land Development Company which had brought in serious foreign capital which in turn stimulated local industry.

The Budget meanwhile had placed emphasis on developing people, with money being set aside for training, and a two-year pilot project that would train 29 unemployed Bermudians for work in the international business sector.

Bermuda's economic performance meanwhile, mirrored global trends, with a growth pacing that of the US and the UK at 2.5 percent over 1996 while maintaining low inflation.

Real growth in Gross Domestic Product was 4.5 percent while Government spending -- estimated at $435 million last year -- came in $1.3 million below forecasts.

Borrowing last year came in at $25 million while total Government debt was estimated at $135 million.

Progressive Labour Party Senator Walter Lister acknowledged a host of positive indicators throughout the economy, the proof being the fact that nearly 1,080 international businesses joined the Bermuda register last year, the second best year ever recorded.

He was particularly pleased to see a healthy construction industry, and said plans for development of Morgan's Point and the Bermudiana Hotel site should keep that sector healthy for the next few years, if the pace of development was planned and organised.

Tourism -- which was still the major employer on the Island -- represented a dark spot on the horizon he said, and it was disappointing to see visitor arrival targets not met for 1996.

While applauding a recent joint initiative between the private sector and Government to utilise the Cambridge, Massachusetts-based Monitor Company, he urged Government to do something to improve the industry in the short-term, and not to hide behind Monitor.

Sen. Lister said he was pleased to see the Budget lift duties on water-sport related products, but said it should have been done years ago. Meanwhile Government should move quickly to develop Bermuda's scuba market.

He also praised the Hotel Refurbishment Act, 1997, for providing incentive for hotels to improve their product. One improvement to bear in mind would be to bring back local entertainment to the hotel scene.

He also slammed Government inaction on Club Med and said efforts such as Jazzscape were a joke: "It was a joke. Jazz festivals have become the flavour of the month,'' he said to catcalls from Government Senators.

"And my personal opinion is supported by the attendance figures,'' he added.

Sen. Lister said Bermuda needed a new property: "Something that's exciting, something wonderful, to get people talking. Word of mouth is the answer,'' he told the upper chamber.

He also urged Government to put pressure on the small hotel operators to sign an outstanding contract with the Bermuda Industrial Union, especially at the publicly owned Stonington Hotel and the Reefs, owned and operated by Minister of Tourism David Dodwell, raising the ire of Senator Gary Pitman, who called it a "cheap shot''.

Turning to education, Sen. Lister said all were concerned about the rise of violence in the schools and increased use of drugs in general.

Saying drugs were clearly a problem, he called on the National Drug Commission to come before the Senate to give an accounting of how their annual $1-million operating grant was being used in the war on drugs.

Sen. Lister said the PLP had been calling for a review of the entire tax structure and he stressed this did not mean income taxes.

And he said the focus of this activity would be to enhance fairness.

Sen. Lister said the decrease in social assistance by $2 million was due to persons being kicked out of the system.

Instead he said the receipt of social assistance monies should be tied to training at either the Bermuda College or Stonington because this would increase their sense of pride and self-worth.

Meanwhile Sen. Larry Scott (UBP) said good management had brought the Bermudian economy to its present buoyant state.

Sen. Walwyn Hughes (Ind.) said Budgets reflected the time under which they were drawn up and this year's Budget showed off the strength of the international business sector.

Sen. Yvette Swan (UBP) said her Ministry, Community and Cultural Affairs did a good job with its limited budget, which included the elderly and the Small Business Development Corporation.

Sen. Neletha (Honey) Butterfield (PLP) said even though Bermuda's economy was growing, it was still important to look at the social side which included the youth and the elderly.

Sen. Milligan-Whyte said it was difficult to manage an economy but easy to find faults in how it was being done. The bottom line was that the economy had gone through structural changes yet there were no major economic problems to talk about.

She said Government was enacting legislation and independent bodies to deal with the problem of drugs on the Island -- particularly in the schools -- but this was not solely Government's responsibility.

The whole community had to take up arms in the war against drugs, said Sen.

Milligan-Whyte.