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Showdown looms over spending

And the Opposition United Bermuda Party is gearing up for a major attack on the ruling Progressive Labour Party's record of controlling the public purse.

of the House of Assembly.

And the Opposition United Bermuda Party is gearing up for a major attack on the ruling Progressive Labour Party's record of controlling the public purse.

The clash is brewing over the near $5 million third supplementary estimate brought to the House for MPs' approval -- which includes an extra $1.31 million for Cabinet Office alone.

Shadow Finance Minister Grant Gibbons said: "It's pretty clear it's going to be a spirited debate -- Government has a lot to answer for.

"This is the third request for extra money this year -- and takes us $15 million over the original Budget.'' The Cabinet Office and the Tourism Ministry top the league for more cash in the supplementary estimate, with Tourism asking for more than $1 million in additional funds.

Dr. Gibbons said: "There are some quite extraordinary areas -- for example, Cabinet Office, where the total budget was just over $2 million for the current year.

"Yet they're coming back for supplementary spending of over $1.3 million -- and this is the second time they have looked for additional expenditure. This latest is well over 50 percent of the entire Cabinet Office Budget for the year.'' The extra cash for Premier Jennifer Smith's personal office is listed under marketing and promotion, the establishment of a special team to deal with the Millennium bug and grants and contributions.

Tourism lists its request for additional funds under marketing and promotion.

Finance Minister Eugene Cox could not be contacted for comment last night.

But -- when the supplementary was first tabled two weeks ago -- he mounted a major defence of the spending.

He said then that the money was not being wasted, and insisted it was vital to boost Bermuda's image overseas.

The Cabinet Office had also footed the bill for other departments -- including some cash to bolster tourism.

Mr. Cox also cited travel to an annual world economic forum in Switzerland and a visit to international financial watchdogs the Organisation for International Cooperation and Development in Paris as other reasons for the extra money being needed.

Showdown over extra spending But Dr. Gibbons said: "The Minister said there would be no need to increase taxes or impose new ones -- and three months into the year, he increased land tax by 25 percent.'' And he claimed: "It's pretty clear why the Minister had to break his promise on new taxes and come back with a whopping $7 million increase in land tax -- he obviously saw all these supplementaries coming.'' Also on the agenda for today's session is a bid to outlaw the further importation of electronic gambling machines to Bermuda.

And MPs will also discuss proposals to give the Island's financial watchdog more power and greater independence from Government -- in line with international recommendations.

The bill to amend the rules governing the Bermuda Monetary Authority aims to give it more freedom to carry out its regulatory role -- and proposes massive penalties for offenders.

Fines for summary offenders would go up from $720 to $10,000 and a six-month jail term option would be retained.

A new category of indictable offences -- Supreme Court territory -- would have $25,000 fines and/or two years in prison.

Plans to make the planning process easier for applicants and the sale or purchase of land -- including some to be bought as part of the stabilisation of the rock face on the Railway Trail in Southampton -- will also get an airing.