Government will still press on with its plans to offer licences to businesses interested in supplying telecommunications services despite the Senate's resfusal to approve the Telecommunications Amendment Act.

Senate President Albert Jackson yesterday rejected Government Sen. Gary Pitman's proposed amendment to the legislation which would have re-introduced debate on the bill.

Sen. Pitman said: "There are a lot of eyes looking at us and a lot of money that has been invested but the buck stopped with the President of the Senate.

"Even though I disagreed, I have to respect his ruling. I was very disappointed because I was completely ready to put forward the motion (yesterday).'' The Telecommunications Amendment Act 1996 is designed to open up the Island's telecommunications industry to competition.

It was sent back to the House of Assembly after a minor amendment was passed with support from Opposition and Independent Senators in a six to five vote two weeks ago.

That meant the House of Assembly could not debate the bill again and send it back to the Senate until November -- when the House reconvenes.

But Sen. Pitman tried to get the bill discussed again and tabled a motion that discussion should re-open.

However Sen. Jackson's ruling has effectively killed the bill which must now be reintroduced to Parliament in November.

At an afternoon Press conference, Information and Technology Minister John Barritt said: "We made the decision...to withdraw the proposed amendments to the Telecommunications Act in light of the ruling of the President of the Senate.

"We were disappointed by having to do that and by the delay this will cause in the progress of telecommunications reform in Bermuda.

"However one must respect the Parliamentary process and the wishes of those who play a part in it. This is what democracy is all about.'' Despite the setback, Mr. Barritt said Government will still move forward with telecommunications reform.

"We believe we can, nonetheless, move forward under the current Act and this we intend to do,'' he continued. "As the Minister responsible, I will be making offers of licences to those four companies which had previously been approved.

"I will be doing this under the terms of the current Act, subject to conditions which will permit them to develop a business plan, secure investments and generally position themselves for entering into the market.

"If those conditions are met, licences will be issued.'' Mr. Barritt added that if the companies are successful in meeting the conditions, they will still have to comply with any new regulations that come into being when the new Telecommunications legislation is finally passed.

He added:"My own view is that the result of the decision and the course of action which we are now taking means that competition will not take effect at the speed which we had envisaged...we are not dead in the water.''