Two senators locked horns yesterday over the issue of government contracts allegedly being awarded to Progressive Labour Party cronies.

Opposition senator Michael Dunkley claimed some contracts worth millions of dollars were given for reasons of "political patronage" rather than because they represented value for money.

He said people throughout the community, including members of the United Bermuda Party, won government contracts and there was nothing wrong with that, so long as the bidding process was open and transparent.

He suggested some of his party colleagues had won such work on merit, adding: "That's more than many people in the community can say about people on the other side."

The Shadow National Security Minister questioned why a promised scheme to bring in electronic tagging for offenders seeking bail had yet to be put in place. "I can only guess and surmise it's because we can't figure out who to give the contract to," he said.

Sen Dunkley criticised Government for the Island's $1 billion debt and listed a raft of multimillion dollar overspends on capital projects, including the Dockyard Pier, the Berkeley Institute and the new TCD building and emissions testing centres.

Government senator David Burt, giving his first speech in the Upper Chamber, suggested the UBP politician had stretched the truth and bent the facts.

On the issue of government finances, he said: "The balance of payments has been in surplus and we are continuing to monitor the balance. That's a good thing. We have to continue earning foreign currency. That's something that has not been an issue for this country.

"Our fiscal house is in order. Our debt is far lower as a percentage of GDP than almost any other industrialised country in the world."

The Junior Finance Minister insisted the vast majority of government contracts were put out to tender and bids were opened publicly.

"It's disingenuous on the Opposition's part to suggest otherwise," he said, adding that the new Procurement Office would strengthen the financial controls already in place.

He said Sen Dunkley made a "disparaging remark" about contracts for no particular reason. "This is exactly what Bermuda is tired of," he added. "It is tired of the bickering. It's tired of the back and forth."

Sen Burt said the Opposition member could have asked a question about the electronic tagging and got an answer.

"Instead, he threw accusations across the table," he said. "The contract was tendered and was awarded and was put in place."

At that point, Sen Dunkley asked Sen Burt if he had an interest to declare.

"I have no interest to declare," replied the PLP senator. "This is just a perfect example of why we need to make sure that we are careful with what we do and what we say around this table because it will affect what the people in the public think."

Sen Burt later told The Royal Gazette he was part of a team which bid unsuccessfully for the electronic tagging contract.

Former Attorney General Kim Wilson said in August that the tagging scheme for offenders and defendants seeking bail would be fully operational by the end of September.

It was not possible to get an update on progress from the Ministry of Justice by press time last night.