Bermuda's debt of $185 million is well within bounds, an Opposition Senator said yesterday.

And Sen. Kim Swan said the ruling PLP was happy to take credit for major projects started under the previous UBP Government -- which were mostly paid for out of borrowing.

Sen. Swan was speaking after Environment Minister Arthur Hodgson told the House of Assembly that the PLP had inherited a massive debt from the old Government -- which was a hindrance to PLP plans for the future.

But Sen. Swan said: "The reference was made to cast a bad light on the workings of the former Government in such a way as to suggest the former Government had burdened the incoming Government.'' And he added: "That is a very conservative figure by world standards -- and if you look around the Country, this money refers to capital projects, like CedarBridge, the incinerator, things of that nature.'' Sen. Swan said that PLP Ministers "have taken pleasure in going to sites like Parsons Road to cut the ribbon on a new park'' or open new facilities at the airport.

He added: "That $185 million is around this Country and that's the reason people want to set up business in Bermuda.'' But Government Senate leader Milton Scott said the UBP claim that the Country's coffers were in good shape was incorrect.

He added: "When the Budget comes next month, lots of information will be made public.

"What I can say is the economy is not in as good a shape as people generally believe it is. There are some challenges in that area but they are being effectively addressed.'' He added that the UBP had spent a lot of cash in the run-up to last November's poll on "election gimmicks.'' And he said: "The people saw through these gimmicks and said `if you couldn't do it two or three years ago, why are you doing it now?' "They are the ones who gave the report card on that and the report was given on November 9.'' But Sen. Swan was backed by Independent Sen. Walwyn Hughes, who said Government debt was controlled by legislation.

And he said cash poured into the sinking fund was designed to cover the Island's debts.

UBP Sen. Patricia Gordon Pamplin said capital expenditure meant "capital assets which form underlying value for the debt you have.'' She added: "There is an identifiable asset which goes along with the debt.''