Party's election package unwrapped in Parliament.

And Bermudians would probably pay for the ballooning budget through income tax.

That's the claim of the Premier the Hon. Sir John Swan and Finance Minister the Hon. David Saul.

But yesterday PLP leader Mr. Frederick Wade dismissed the costing as "propaganda'' and "negative Bush-style campaigning.'' "It is just an attempt to discredit the PLP without any reasonable facts or details to go on,'' he said.

"I only hope Bermudians will not be hoodwinked into believing this arrant nonsense. It's just pie in the sky.'' Mr. Wade accused Government of pulling figures out of a "magical bag.'' Government, however, believe the PLP's proposals will doom their election hopes to failure.

"It seems to me that the Opposition are offering solutions without telling us the cost or the consequential effects,'' Sir John said.

And Dr. Saul said: "The PLP's proposed review of the tax system probably means introducing a form of income tax. That would hit the middle classes, and also create a huge bureaucracy.'' Government claims the overall cost of those PLP proposals announced during the reply to the Throne Speech in the House of Assembly on November 13 would be between $18.5 million and $25.1 million.

Funding of the National Stadium would be the highest burden -- $9 million, it is alleged.

And the cost of setting up an Unemployment Fund would swing between $4.5 million and $7.5 million.

A $1-$2 million price tag has been separately attached to three of the Opposition's proposals -- aggressive marketing of tourism in Europe, advertising overseas, and joint venture charter flights from Europe.

It is estimated tax incentives for hotels in winter months would cost $500,000-$1 million, while off-peak reductions in departure tax would add $300,000-$600,000 to the budget.

The planned tax incentives to create more jobs, meanwhile, are expected to cost between $800,000 and $1 million.

Two PLP measures have been left uncosted -- an additional cruise ship, and proposed social services improvements.

Government say the moves are too difficult to price.

Sir John attacked the Opposition for not saying how the money would be raised, or how they would run the Country while deeper in debt.

"Government is trying not to over-extend the Country but at the same time it has to meet the needs of its people.

"We prepared for the recession with the budget, capital plans and making sure the system was responsive to people's needs, as well as maintaining and enhancing good external relationships.'' Dr. Saul said it was easy for the Opposition to talk of spending money without accounting for the cost implications.

Government had to organise its finances around what the Country could afford.

Dr. Saul said Bermuda's size made it difficult for an income tax system to work.

Antigua had brought in income tax, but later abandoned it because of the massive bureaucracy it entailed.

Mr. Wade said Government's so-called costing was not a real attempt at analysis.

And he said the PLP was ready "mentally and politically'' to deal with UBP's "mud-slinging''.

Mr. Wade said, for example, it was impossible to cost the National Stadium proposal.

The PLP had to sit down first with the Bermuda Football Association, and other sporting groups, to decide how to proceed.

Any costs could be stretched out over a 20-year period, he said.

Mr. Wade added he was also confident the PLP's proposals would help small businesses.

"We know we can assist by amendments to hospital levy and employment tax.''