Continued from Saturday's newspaper.

Senator Terry Lister (PLP) said Bermuda still had a long way to go with employment.

"Six and a half to seven percent of jobs are still gone since 1988. We need to talk to the construction workers about their jobs. They do almost all commercial work.'' Sen. Lister also put down the increases in motorcar and auxiliary bike licensing fees.

"Government has increased the fees up to 75 percent and these are the same bikes that are getting stolen. If that is not a cynical attempt to help the people I don't know what is.'' He added that the Passenger Tax Amendment Act 1995 increased departure tax from $15 to $5. "Children leaving the Island use to be free but now they have to be paid for from the age of two.'' Sen. Lister also wondered where the money for the National Stadium was going as bathrooms, changing rooms and the weight room were set up in containers.

"Last year $16 million was allocated to the National Stadium and this year it received $10 million. Well where did it go? Is this acceptable or are we dreaming.'' The constant decline in average length of stay since 1984 is worrisome, said Sen. Lister.

Short term vacationers were less likely to shop and only the hotels and restaurants were likely to benefit.

"It is not the kind of tourism we talk about when we talk about tourism for Bermuda,'' he said.

Government needed to make a decision on the future of the Club Med facility in St. George's. Meanwhile the beaches should be opened to the public.

He added Bermuda was in need of a new hotel property to breathe new life into the industry.

The loss of the Raleigh Durham flight left a gap that should have been offset by a Miami flight to open up the South American market. But this had not come about he said.

Sen. Lister expressed his concern that there was already unrest in the hotel industry only three months into the year.

He called the BIU's demands "outlandish'' and management offers "not realistic''.

On the base issue, the Budget's allocation of $13 million was an opportunity to pay for the Airport.

He said Bermudians needed to be convinced they were "all on board'' and that a poorly attended tour of the bases by the Minister of Cultural Affairs for small businessmen was given in December when most people are busy But since then, nothing further had been done, he claimed.

Two years on, Daniel's Head remains abandoned while a committee decides how to use the Canadian base and Annex. He added the half million dollars allocated to the Annex was not much.

Sen.

Lister suggested the beaches be turned over to the people of Somerset and the facilities be used for a youth programme.

But he added work on Somerset beaches was "nothing short of excellent''.

Bermudians who were interested in coming back to work at the Airport should not be rebuffed, he said.

He was referring to Bermudians who receive the same salaries as foreign employees but who do not benefit from free housing and other benefits.

To this end, the Serco salary package should be carefully examined, he said.

And when handing out large contracts, Government should make more effort to explain where the money is spent.

On the issue of customs duties, Sen. Lister said although the Finance Minister had tried to appease retailers but that customs duties would continue to rise.

Changes in duty allowances last year led to a huge ten percent increase in overseas spending, he said. He called it an error in budgeting. With cheap flights to the States, he saw "no way out for the retailer''.

"We must take a good hard look at the taxation system as it relates to the retailer. A failed system hurts all of us.'' With no shops, tourists would be confined to the beaches, and would be putting less money into circulation.

And although the impression given by the Budget was rosy, what did the man in the street feel? he asked.

A 1994 Bank of Bermuda report concluded that Bermuda's recovery is stumbling unlike the US.

"Now the US economy is back on its feet and here we are in Bermuda saying the opposite,'' he said.

He said the Monetary Authority should have regulations to cap interest rates.

And in the sluggish housing market, the atmosphere was one of nervousness he said.

But while the high number of international businesses in Bermuda painted "a very positive picture'', the budget did nothing to protect the industry.

Instead taxes on professionals and foreign owned properties "beat up on'' exempted companies, he said.

The bulk of foreign owned property belonged to people working in Bermuda, not multi-millionaires and who were offended by the tax.

Stamp duty increases were an additional attack on the international business arena, he said.

And he said the tax on professionals would ultimately be picked up by their companies.

"It will ultimately defeat the country. Companies will think "why not go to Turks and Caicos or the Cayman Islands and bypass Bermuda''.

The PLP, accused for many years of destroying the economy if it took power, was seeing it happen under the UBP.

"The PLP doesn't even get a chance to destroy the economy,'' he contended.

"We the PLP are opposed to this level of taxation...The question still stands, what is the plan?'' And while the policy of the PLP was to help the little man, it had a healthy respect for the need to do business, he said.

He added the Budget was an indication that Government had lost touch with the people.

Highlight the important role of exempt companies in the schools -- Oughton Sen. Alf Oughton (Independent) commended the Finance Minister for putting Bermuda in a "sound financial position''.

But he said more public relations work was needed in schools and in the community to highlight the important role of exempted companies in Bermuda.

He said the question of a new hotel was long overdue but the industrial unrest in the hotels concerned him.

Following the decline in unemployment following the recession, retraining was vital to keep Bermudians abreast of changing technology.

Turning to education, Sen. Oughton praised a youth television programme this week that tackled the question of the megaschool.

He praised the youngsters saying the Education Minister should follow their example by "preaching the gospel'' to parents and the rest of the community.

He also highlighted allocations in the Budget for sabbaticals and after school activities, students with special needs and Police cadets.

But he pointed out Government should be aware of an increasing need for care for the elderly.

Sen. Oughton congratulated Elbow Beach Hotel for its recent refurbishments adding that other hotels should follow suit.

On the issue of the payroll tax, he said that while employers have seen no change in the tax since 1993, employees are suffering a 60 percent hike.

Sen. Oughton also queried why there had been no audit of Government accounts since 1989.

And he questioned whether surplus funds allocated to one department could be used in different areas.

In conclusion he said the Finance Minister deserved praise for his sound fiscal management over the past few years.

Sen. Lawrence Scott (UBP) claimed the main issue was to get the Budget in light of the base closure right.

On this occasion, professionals, not the little man had been hit with taxation.

Nonetheless, Bermudians were still able to enjoy the luxury of travel.

"I don't think we've got it wrong,'' he said.

And he praised Government for providing sound financial guidance.

On the professional tax he said: "Everyone spends but at the same time everyone must pay. Now it is time for the professional to pay.'' He added he found it distressing that professionals were threatening to hand the costs on to their clients and desert their professional bodies.

"I find it incredible that professionals who have done very well in this affluent society would desert their professional bodies. That's not good enough,'' he said.

Sen. Neletha Butterfield (PLP) emphasised the need for active social programmes viewed against a background of rising crime and drugs abuse. And she called for clear thinking and planning in tackling the issue.

Unemployment, she claimed, was still a problem but she queried whether the bases would provide jobs for Bermudians.

"Will the road be paved for Bermudians or will there be potholes and cracks?'' she asked.

On retraining, she said Bermudians have to "be doing it -- not saying it''.

"Government must become serious in its commitment to train,'' she said. Crime too was on the increase. She attributed the problem to a lack of opportunities for black males.

The challenge was to provide a stable economy and stable community by looking at the problem as a two-sided coin.

Sen. Milton Scott (PLP) said the two most pressing issues were crime and drugs and how they related to the education system.

He said teachers had not forgotten honorary and sabbatical sums owed them by the Government.

On the issue of the new senior school, Sen. Milton Scott said the public needed a clear idea of what would happen.

He added that 22 hours to debate the budget was not sufficient and should be extended to 30.

Government leader in the Senate the Hon. Gerald Simons (UBP) said he did not envy the task of the Minister in meeting the social needs of people, managing the debt and avoiding inflation while being careful to overburden people with taxes.

This year's Budget showed a substantial increase in social assistance. He added that a new training programme was to be unveiled this year.

He also pointed out the Bank of Bermuda was one the top 500 banks in the world.

"This little Island is a wealthy community and a very concerned and caring community.'' Sen. Lynda Milligan-Whyte (UBP) said the role of any Government was to raise revenue and provide services in a fair and equitable way.

She said the payroll tax was increased by 0.5 percent but did not equate to imposing an income tax.

The Opposition, while chipping away at the Budget omitted to suggest an alternative way of raising taxes, she claimed.

"They have attacked every level without saying it is the responsibility of the Government to impose taxes without putting forward an alternative.'' And while the taxes took many Bermudians by surprise, the rationale behind them was that every Bermudian should pay for the increased expenditure of the airport.

"If professionals pay their own fees, they are contributing directly to the airport,'' she said.

The Appropriation Act 1995 with the Estimates of Revenue and Expenditure were read a second time.

Sen. Yvette Swan (UBP) said that the PLP referred to the fact that there was not enough money in the budget for libraries.

"However, there is a good library with good books at the Naval Air Station and they have been given to the library.

"When you look at the library and the work of the library look at the number of people who use it,'' Sen. Swan said.

She added that mobile libraries operate five days a week and she also said that newspapers are being microfilmed.

Sen. Swan said she found the Ministry of Community and Cultural Affairs interesting "because it looks at the culture in the country and encourages the arts.

"It also initiated and supports the children's television programme the Learnalots, Treasures which profiles senior citizens, and Bermuda Profiles which highlights young Bermudians.'' In 1995-96 the goals of the Ministry of Community and Cultural Affairs are to hold the 11th Premier's concert, continue supporting the television programmes, have a show displaying photographic art work by secondary school students, and the Carib art show.

Sen. Swan also said that the Menuhin Foundation, which shares a grant with the art council, has contributed a lot to Bermuda.

"I think the foundation is one of those organisations that you can be proud of.'' She also stated that the Bermuda Archives was a very important department as they receive 3,000 requests to access records last year.

Sen. Neletha Butterfield (PLP) said that the library must get on with the changing times.

"It needs updated equipment, and an elevator that is long overdue. The list of things that were needed were discussed 10 years ago and still we are requesting those same things.

"Senior citizens can not always get up the steps of the mobile library and some of them cannot drive cars. We have to recognise the usage of the libraries.''