telephone giants Cable and Wireless.

Government Senate leader E.T. (Bob) Richards went on the offensive after Cable and Wireless -- once the monopoly provider of overseas telephone services -- announced it was to shed jobs in the face of Government-inspired competition.

He said: "The timing and magnitude of their recently-announced downsizing move clearly shows their intention to callously use staff as quasi-political pawns, rather than showing genuine sensitivity for their needs.'' And the Technology Minister claimed: "Their actions should be seen by Bermudians as a blatant attempt to bully the Government of this Country.'' He added that increased competition had already led to more job opportunities -- not just in telecommunications, but in associated hi-tech businesses.

But afterwards, Opposition Senate Leader Milton Scott challenged Sen. Richards to repeat his statement to the Upper House outside -- without Parliamentary privilege.

Sen. Richards said Government had announced three years ago that it was introducing competition to provide cheaper and better service for customers.

And he added that rival telephone firm TeleBermuda International had been granted a licence in 1996 -- but that Cable and Wireless had done nothing "except engage in legal sparring.'' He said: "Cable and Wireless had ample opportunity to downsize staff in an orderly fashion, an action which that would have made it easier for displaced staff to find alternative employment in the expanding telecom market and elsewhere.

"Up until now, the Cable and Wireless record in Bermuda has been exemplary -- except for the very high rates -- but this latest, calculated action is a major blot on their record in these Islands.'' Sen. Scott countered: "He made some very disparaging remarks against Cable and Wireless.

"What Cable and Wireless should do is get a copy of that transcript and say `if you believe in these remarks, you should make them outside the Chamber'.

Cable and Wireless have served this Country for years and they have made a substantial investment.'' But yesterday, C&W declined to comment on the telephone boxing match.

Sen. Richards told Senate that demonopolisation had "resulted in a net creation of jobs -- 103 jobs were added in three years, an increase of 16.3 percent.

"Other countries' experience with demonopolisation has been that -- while jobs are lost from the company being demonopolised -- jobs are generated in other companies.'' He said a spin-off from deregulation had brought new jobs in Internet service provision, voice and data services, wireless and overseas phone service.

Sen. Richards added: "A massive increase in the hi-tech infrastructure has arisen in Bermuda due to this policy.'' Cable and Wireless recently announced jobs would have to go after TeleBermuda carved 25 percent of its market share away.

The firm is also claiming what is believed to be $100 million in compensation through an arbitration process laid down in a 1985 Act of Parliament.

House of Assembly debate: Page 4 SENATE SEN