"shocking lack of understanding'' of the hospital's finance system.

And Grant Gibbons claimed Renee Webb made offensive remarks about him when she alleged a conflict of interest because his wife was on the Bermuda Hospitals Board.

But Ms Webb came back fighting last night -- and said the Minister should check his own job description.

Dr. Gibbons said: "Ms Webb's remarks are not only offensive but indicate what I would call a shocking lack of understanding of the relationship between the hospital and Government, and how the hospital is funded.

"I find them unacceptable for someone who speaks for health on the Opposition side.

"In fact, she's done this before. It demonstrates yet again that she's not done her homework and got her facts wrong.'' He said Ms Webb was wrong to say he was responsible for the hospital's finances.

But the Shadow Health Minister said: "I understand exactly how the hospital functions and I understand that Dr. Gibbons is responsible for the entire budget of this country as Minister of Finance.

"If he didn't realise that, he should check his job description. And with respect to being offensive, I don't really care if he's offended or not.

"As a politician, I have to bring certain things to the public. He has a direct conflict of interest in that his wife sits on the board.

"He should just admit that and move on. And he should be making sure taxpayers' money is spent as efficiently as possible.'' The Hospitals Board is considering huge savings after two reviews looked at ways of cutting millions from the hospital's spiralling bills.

One, the Monahan & Associates report, recommended that around 20 nursing jobs should be axed.

Figures for 1997 show the hospital has $74 million coming in but $47 million is spent on staff salaries alone.

The Royal Gazette revealed the Dr. Gibbons conflict controversy on Friday, when Ms Webb said Government needed to be more open about declaring Board members with UBP ties.

But Dr. Gibbons said the Ministry of Finance was not involved in the day-to-day financial operation at the hospital.

He said the hospital's funding was controlled by a director of finance and other support staff responsible to the Bermuda Hospitals Board, which answers to the Ministry of Health. "The KEMH funding doesn't come as an operating grant,'' he added.

"The $41.7 million appropriated in the 1998/9 budget is an entitlement due to the hospital based on specific subsidised services provided to youth, the elderly and the indigent.

"Those sums are directly reconciled against claims that the hospital makes to Government for providing those subsidised services.'' Gibbons, Webb in verbal battle Government allows 100 percent treatment subsidies for youth and the indigent and 80 percent for the elderly.

"I have never called on the Bermuda Hospitals Board to make vast savings,'' added Dr. Gibbons, whose wife is chairman of the Board's Strategic Planning Committee.

"However, what I would say is I obviously support the recommendations of the most recent study by Arthur Andersen which speaks of ways to improve the quality of healthcare and also improve the value for money provided to the community.

"As Minister of Finance, I'm consulted by the Hospitals Board before the hospital undertakes any major borrowing initiatives.'' Renee Webb Dr. Gibbons