Scott is willing to pay the eventual contractor of the new Berkeley Institute a cash bonus for every Bermudian it employs on the site.

Mr. Scott reasons that the scheme will help Bermudians become involved in local projects and will also keep more dollars on the Island.

"Now there will be an incentive to use Bermudians, as opposed to bringing people in,'' he said.

Mr. Scott also dismissed comments made by Government backbencher and Bermuda Industrial Union president Derrick Burgess that the eventual contractor, and sub-contractors, might be tempted to take on non-skilled Bermudians for the sake of a cash `incentive'.

"I am sure that contractors and sub-contractors will put the best people on the job -- they will be looking for quality,'' Mr. Scott said.

While no doubt true, Mr. Scott's arguments provide no justification for him to come up with such an incentive scheme.

Why? Firstly, employers already have a financial carrot in front of them when it comes to hiring staff.

Surely it is far cheaper -- and more convenient -- for any company operating on the Island to use local skill when available? Drafting in overseas expertise is costly and can be a bureaucratic nightmare, as many companies will testify. If a `quality' local workforce is already in place, few companies would consider not utilising that source.

But there is another, far more significant reason why cash incentives are unnecessary, if not dangerous.

For years the Island has had a strict labour policy whereby firms must do their utmost to take on Bermudians whenever a job vacancy comes up. Only when the pool of skilled, qualified and experienced Bermudians has been completely exhausted can a company consider seeking overseas expertise. Even then it has to jump through many bureaucratic hoops to prove that no suitably qualified Bermudian is available to fill the vacancy.

That is a policy that this newspaper has always supported. It is right that Bermudians must come first in the employment queue.

Last July, after the new CURE regulations became law, Development and Opportunity Minister Terry Lister rejected a suggestion put forward by the Opposition that companies adhering to the law should be given tax breaks.

"In plain English that says that I should in essence pay somebody for not being a racist,'' Mr. Lister said.

Those comments were applauded by this newspaper at the time. After all, nobody, be they individuals or international companies employing hundreds of people, should expect to be rewarded for simply obeying the law, and a company which employs Bermudians at every opportunity is doing just that -- nothing more.

Mr. Scott describes his plan as "a pro-active incentive''. In plain English he is using taxpayers money to bribe a company into toeing the line. That is a dangerous step for any Government to take.