If Bermuda does not adopt tough new laws to combat modern-day piracy on the high seas, the US could step in and demand inspection rights, the House of Assembly heard yesterday.

Tourism Minister David Dodwell said: "There are potentially serious consequences if we don't comply with UK legislation.'' He told the House that Bermuda is currently inspected by the UK Government, which has signed a joint agreement with the US on standards of security.

And he said if Bermuda wanted to be included with Britain in the agreement it would have to pass international-standard legislation.

He warned if the Maritime Security Bill -- which passed last night -- was not backed "the US Government would step in and they would require their level of inspection for the cruise ships which ply the waters here.'' Mr. Dodwell said: "It's better, frankly, to be able to continue the inspection process which is carried out by the UK Government right now.'' The Tourism Minister -- who was responsible for marine and ports matters as well tourism until a recent shuffle handed ports to Transport Minister Wayne Furbert -- stressed Bermuda was a low risk area for terrorism and UK Ministry of Transport officials gave the Island "high marks'' after their biannual inspections.

He added: "This legislation will protect 25 percent of the visitors who come to our Islands and protect our shipping registration.'' The bill creates new offences relating to acts against ships and their officers -- with maximum penalties of life imprisonment.

It will also give Bermudian-registered ship's Masters the power to turn offenders over to Island authorities -- even if the crimes take place outside Bermuda's territorial waters.

The Governor will also be able to order searches of ships, harbour areas and terrorist suspects. Ships failing to comply with anti-terrorist requests could be impounded.

Introducing the bill, Mr. Furbert said: "We live in changing times -- we have to be always prepared for security, whether it's at the Airport or our docks.'' He added the hijacking of the Achille Lauro in the Mediterranean during the 80s had focussed the world on the vulnerability of cruise ships to attack.

Mr. Furbert said: "With the increased threats around the world involving tourists, we have to put in place security measures to ensure they are protected.

Shadow Transport Minister Dennis Lister backed the new legislation and said everyone recognised the need for new laws.

But he asked if it would be possible for any alleged offenders to be turned over to the UK -- which is more experienced in terrorism matters.

He said: "Maybe we should allow the opening for such arrangements to consider the seriousness if such an event happened. We have seen occasion much less serious when we have had to bring in personnel to conduct the criminal process.'' But Labour and Home Affairs Minister Quinton Edness said any alleged terrorists would have to be brought to Bermuda and tried here.

And he said it would "offer great reassurance'' to the UK and US that any future incident would be dealt with in Bermuda.'' POLICE AMENDMENT BILL PASSED BY HOUSE Police Amendment Bill passed by House Mr. Edness introduced the Police Amendment Bill, later passed by the House, which will set up a new tribunal to impartially settle disputes over pay and conditions if deadlock is reached.

He said: "It's fairly obvious why the Police are not allowed to strike -- the need for security in this Island does not stop. It's a 24-hour-a-day thing.'' He added rank-and-file Police and Government had disagreed in 1989 when a non-statutory body had made recommendations and Government had not implemented all of them.

But he said the new statutory body which would be created under the Bill offered a "much more mature'' process, with the results binding on both sides.

He said the legislation was important in creating a "well-motivated, efficient and content Police Service'' -- and vital in attracting the best talent into uniform.

Shadow Labour and Home Affairs Minister Alex Scott insisted that Government control over budgets was "great control over the Police themselves.'' He added that some officers had to take other jobs to make ends meet and the new tribunal could offer them the chance to devote themselves exclusively to the job -- and give the time and opportunity to advance their careers.

Mr. Scott said that a helicopter, which could be used by Police, Tourism and Fisheries officers was available for around $5,000 a month.

He added: "It's not buying a helicopter, it's providing enough business for it to continue.'' And he added the cost was not much to have Bermuda's waters patrolled by air to discourage people like seaborne drugs smugglers.

Finance Minister Grant Gibbons , however, went on the offensive over allegations that Government could use the Police budget for political ends.

He said it was "presumption'' to suggest that somehow "undue influence'' could be exerted through the budget process.

Dr. Gibbons added the the Police budget had increased in his time as Minister and 43 officers had been taken off desk jobs through civilianisation.

Dr. Gibbons reminded the Opposition that it was they who had asked for the salary of then-Governor Lord Waddington to be reduced to $1 a year.

He added: "It's clear they were prepared to use budgetary control.'' He asked that if Mr. Scott thought an "adequate'' Commissioner was enough for Bermuda, did that mean "adequate'' doctors and teachers would do him as well.

PLP backbencher Ottiwell Simmons argued that the Act lacked a provision for the settlement of grievances between employer and employee.

But Mr. Edness pointed out that the Police could not have the type of grievance resolutions found in other sectors.

"The Police are a discipline service,'' he said. "They are different.'' Mr. Edness said any Police officer who had a grievance had certain procedures they could follow.

Regarding Mr. Scott's comments about the Island's only helicopter, Mr. Edness said the Government canvassed the Police about using the helicopter.

He said the Police said the helicopter was not equipped to do what the Police need it to do -- search and rescue.

Mr. Edness then referred the Act into Committee for a clause by clause debate.

While in committee, Mr. Scott argued that the provision for the reappointment of tribunal members, after their five-year stint, took away from the "spirit'' of what they were trying to achieve.

And Mr. Simmons argued that the tribunal would be biased due to the fact that its members were chosen by the Governor after consulting the Minister of Labour, Home Affairs and Public Safety.

Mr. Simmons said it would be more democratic if members of the tribunal were appointed by a non interested party or the Government, Minister and the Police Association -- all the interested parties.

But Mr. Edness said that the Governor was a neutral party whose only interest was to ensure that there is fairness.

And he said that the Act allowed tribunal members to serve more than their five-year terms to ensure continuity.

Noting that one or two members may depart after their terms, Mr. Edness said that an experienced member was need to keep some form of continuity.

Mr. Edness also pointed out that the Act had the full support of the Bermuda Police Association.

The committee approved the Act as printed.