Tourism Minister David Dodwell yesterday fired back at critics of the franchise report.

He said allegations of a "whitewash'' and "stacked decks'' were unfair to the Cabinet-appointed committee which produced it.

And he claimed Bermuda owed a debt of gratitude to the committee.

"I think they deserve better than the criticism,'' he told the House of Assembly.

Mr. Dodwell, who chaired the committee, said the report was not the final word on franchises.

"It is a step along the way. I want to listen to all your suggestions.'' MPs yesterday debated a motion -- moved by Mr. Dodwell -- to take note of the committee's franchise report.

The franchise review was launched following a storm of protest over Government's approval of the incorporation of Grape Bay Ltd. -- a company run by ex-Premier Sir John Swan and Government backbencher Maxwell Burgess which would operate a McDonald's restaurant in Bermuda.

The incorporation has triggered accusations Government ignored its own anti-franchise policy and a Bermuda Monetary Authority circular.

But this has been fiercely denied by Finance Minister Grant Gibbons.

At the outset yesterday, Mr. Dodwell applauded the committee members for their hard work.

They had attended 25 meetings and put in many hours producing a report which was bound not to satisfy everybody.

Everybody had an opinion on the franchise issue -- and it was difficult to canvass all of them.

Nevertheless, the committee produced a "unanimous report'' signed by all members, who represented a broad cross-section of the community, said Mr.

Dodwell.

Mr. Dodwell stressed the committee had had the chance to produce a "minority report'' -- but did not do so.

He said Mr. Gibbons offered to resign his seat on the Franchise committee but the membership persuaded him not to because of his in-depth knowledge both of the Companies' Act and the decision to incorporate Grape Bay Ltd.

He said the committee put in between 50 and 60 hours of work over three and a half months.

They read material on franchises, conducted searches over the Internet and looked at legislation from other places before they came to any resolutions.

And he said each committee member tried to ensure decisions were not rushed.

To do that they canvassed as many sources as possible.

Extensive notes were taken of each meeting, he explained and there were 41 written submissions. This Mr. Dodwell said was disappointing.

"The issue of fairness came up over and over again when we deliberated this particular subject,'' he said.

Mr. Dodwell said there was no reference to the word "franchise'' in current Bermuda law.

And he explained foreign food franchises were not always selling fast food.

Mr. Dodwell said that the committee found those over 50 to be against the idea of franchises and those under 50 to be generally in favour.

He said some organisations that reported to the committee were split and had difficulties polling their members.

The Tourism Minister said that aesthetics, image and Bermudian culture were constant themes in the committee's deliberations and there were also strong feelings on the issue of litter.

However the committee said the Island had a problem with litter generally and that has to be addressed whether or not franchises are here.

Mr. Dodwell said that the 1911 Advertising Act needed to be upgraded so that advertising was made to suit the local environment.

The Tourism Minister said that the recommendations were the most important part of the committee's report.

Among the list of suggestions was the need for a grace period of one year for current foreign franchises to comply with the new rules.

Moreover a separate body with the power to enforce the rules regarding advertising needed to be set up.

Mr. Dodwell said the "pink cottage concept'' was definitely one that the committee wanted to see as opposed to the golden arches of a McDonald's restaurant.

Deputy Opposition leader Eugene Cox said Government's decision to use a "take note'' motion was a waste of time because such motions are only intended to ventilate issues.

However he said to use a take note motion to debate the franchise committee's report was "counterproductive'' and a waste of Parliament's time.

Mr. Cox said that there were far more important issues on the agenda such as the Health Report, Treatment of Offenders Board report and the report on Child Abuse that needed attention.

"All manner of concerns should be addressed by us,'' he said. "(Government) is just trying to whitewash a decision that the Minister has already made.'' Mr. Cox then moved that the motion "That this House take note of the report of the Cabinet Appointed Committee on Franchise Policy and related issues.'' be altered and delete the words "take note of'' and substitute the word "rejects''.

Deputy House speaker Stanley Lowe put Mr. Cox's motion to a vote and the Opposition carried the motion because the Government did not have sufficient numbers to oppose it.

Government whip Rick Spurling then rose and said the House rules did not allow that to happen.

Mr. Lowe then asked if there was anyone in favour of the motion as amended and the Opposition again voiced their favour and the Government went against it.

Mr. Spurling reiterated his point that the vote was a contravention of House rule 16 because he alleged Mr. Cox's motion materially altered the nature of the debate and Mr. Lowe concurred.

Opposition Leader Jennifer Smith said she accepted the deputy speaker's ruling and she proposed a second motion which aimed to delete the full stop and replace it with a comma after the word "issues'' and adding: "and rejects the recommendations of same.'' Mr. Spurling said that Ms Smith's amendment was the same as Mr. Cox's earlier motion in that it proposed to change the original "take note'' motion into a substantive issue (capable of being voted on). Consequently the rules were still breached.

And Premier Dr. David Saul said that House was bound by an earlier ruling from former Speaker David Wilkinson which stated that "take note'' motions cannot be changed into a more substantive motion.

However UBP backbencher Ann Cartwright Decouto said that Mr. Spurling had misunderstood the intent of rule 16 (3) because it allowed a member of the House to amend a motion if he was the originator of it.

In the end House Speaker Ernest Decouto returned to the chair and supported Mr. Lowe's ruling that both motions be rejected because of the precedent that Mr. Wilkinson set on February 21, 1992.

Attempts by the PLP to have that decision overturned were rejected after Mr.

Decouto read an entry from page 52 of the 1991/1992 House journal that proved that Mr. Wilkinson had made that ruling in 1992.

Mr. Spurling, who served on the committee, said it had Bermuda's best interests at heart.

Selection of the committee was done carefully to ensure members represented different views. "We wanted to avoid at all costs the appearance of trying to stack the committee,'' he said.

Mr. Spurling said it was also decided not to ask people as representatives of organisations because it was considered best for people not to be bound by one body's views.

"I do resent the lack of respect that has been afforded this committee,'' he added.

Mr. Spurling said the committee agreed that what happened with Grape Bay Ltd -- in getting franchise approval -- was done correctly.

He said franchises had positives, such as striking up a relationship with foreign suppliers and manufacturers, as well as some negatives such as image and culture.

But he added: "We are talking about Bermudians getting out and getting a better product to do business. There is no reason why they cannot do that. It is free competition.

"This committee did a responsible job and it should be thanked rather criticised.'' One of the "People's Five'' Dr. Clarence Terceira said the committee was a "stacked deck''.

He said there was a 4,000-name petition against fast food franchises and the report said out of 41 presentations to it one was for, one was neutral and rest were against franchises.

In addition, Dr. Terceira said of tourists questioned for the report 83 percent disapproved of franchises for Bermuda and 88 percent said they would not use them.

"After all the statistics the report said it recommended fast food franchises. In the face of all that they said `let's have them'.'' Government backbench MP John Pearman , who was also a member of the committee, said the report made provision for entrepreneurs -- and not those on Front Street.

"It lets a person get the skills, training and marketing tools at a far less cost to himself if he did not have the franchise association,'' said Mr.

Pearman.

Dodwell hits back From Page 4 "I have great difficulty in saying to a Bermudian who wants to establish himself in business `you can't do it' because you will have a franchise.'' Finance Minister Grant Gibbons said throughout all the debates on franchises there had been efforts to find villains.

"What this committee did was to come together to solve the problem. The problem was to find a way forward that the majority of Bermudians would feel was a sensible and forthright approach.

"This report has accomplished that and has achieved a common ground,'' said Dr. Gibbons.

Rebel Government MP and one of the `People's Five' Trevor Moniz gave submissions to the committee but claimed yesterday that it had voted on the issue before he gave his views.

"It was wrong for the Minister of Finance Dr. Grant Gibbons to be a member of the committee.

"He made the original decision to let McDonald's come to Bermuda. What do you think his decision was going to be?'' Mr. Moniz added: "The vast majority of submissions to the committee were against franchises. What part of `no' does Government not understand?'' Environment and Planning Minister Pam Gordon said she found it offensive to suggest the report had been rubber stamped.

She said franchises would benefit the young Bermudian entrepreneur and give everyone a chance.

"People want to know that they have a chance. The reality is we are interested in ensuring that we can promote opportunities for people who did not have an opportunity before.''