Budget as "ruthless''.

He blasted cuts in Police, education, and youth services, deploring their timing.

And he accused Government of sitting back on its haunches, rather than finding ways to boost the economy.

But earlier Sen. Wendell Hollis (UBP) opened the debate with a robust defence of the Budget.

The Budget's thrust was to keep the lid on spending, rather than seeking extra revenues through tax increases, he said.

It was also designed to stimulate the economy by tax incentives.

Sen. Hollis said there were signs of an economic recovery, but the key lay with consumer confidence.

It was for Government, employers, and employees, to pull together.

Sen. Hollis said the long-awaited world recovery from recession was taking longer than first expected. But the good times would come back when confidence was fully restored.

"People have got into the habit of saving, not spending,'' he claimed.

Sen. Hollis said the recession had hammered domestic demand, and the construction and hotel indutries.

The number of non-Bermudians workers had also gone down, meaning less rent for landlords.

In 1992, 73 percent of jobs lost were by non-Bermudians, said Sen. Hollis.

But although tourism had declined during the recession, international business had improved.

"At the end of 1992 international business was approaching tourism in its foreign earnings contribution.'' It was important, however, not to begrudge the way international business had grown.

Tourism and international business worked hand in hand, complementing each other, not conflicting.

Although air arrivals had slipped, Sen Hollis pointed to an upsurge in cruise ship passengers.

And with coming cruise ship replacements there would be an extra 820 berths -- the equivalent of a fifth vessel.

Sen. Hollis also underlined the increased liquidity of banks -- the gap between money on deposit and that given out.

Such liquidity was a crucial potential fuel for the economy, although confidence was needed to spend it.

Bermuda also had a solid insurance sector -- a very positive sign.

There were plenty of other reasons to be upbeat about the year ahead, stressed Sen. Hollis.

These included low inflation, a positive balance of payments, and a strong stock market.

The construction industry would also be picking up with private projects, including the new Bank of Butterfield building in Front Street.

In addition, the last quarter of 1992 had seen an improvement in retail sales.

And in the US consumer confidence also appeared to be edging up.

One Budget measure which had been criticised by the PLP was the Sinking Fund, said Sen. Hollis.

But this was vital if Government was to borrow from the banks.

"You have to show your bona fides if you want the bank to help you,'' said Sen. Hollis.

Sen. Scott , however, was scathing in his criticism of Government, accusing it of passivity.

Bermuda could not just wait for the United States economy to revive, and the recession to end.

"You have to stimulate the economy. You can't just sit back and expect it to grow like topsy.'' And he hit out: "The United Bermuda party is sacrificing the community's interests for its own political interests.'' Sen. Scott compared the political scene with the fairytale of Cinderella.

Too often, the UBP depicted itself as the beautiful sister who became a Princess after her foot fitted the slipper at the ball.

Too often, the PLP was cast in the role of the ugly sisters.

But Sen. Scott claimed the slipper was currently on the wrong political foot.

"Maybe we should look at the ugly sisters. Maybe they are not so bad in comparison.'' Sen. Scott opened his attack by rapping Tourism Minister the Hon. C.V. (Jim) Woolridge and the Premier the Hon. Sir John Swan for running the Country down.

He criticised Mr. Woolridge's claim in the House of Assembly Bermuda could not expect to regain her tourism glory days.

And he knocked Sir John for saying Bermuda was boring and needed to offer something better to tourists.

Such talk did not suggest Government was on top of its job, said Sen. Scott.

Sen. Scott accused Government of "number crunching'' to give a distorted economic picture.

Inflation was low because of the recession -- it was wrong for the UBP to claim the credit.

And Government was "unethical'' in claiming it had boosted social assistance to more than $6 million.

In fact, it had cut assistance from the revised 1992/93 estimate by about $1 million.

Government claims about reducing the non-Bermudian workforce were also ill-founded, said Sen. Scott.

During the economic upswing jobs for non-Bermudians had risen by 71 percent, he added.

Sen. Scott also pointed out the expansion of international business benefited non-Bermudians.

The contracting tourism industry, however, hit Bermudians.

Sen. Scott said a PLP Government would add tourism to the school curriculum, thereby promoting home-grown expertise.

Sen. Scott launched a blistering assault on Government's education record, accusing it of stopping and starting over proposed reforms.

A PLP Government would make education a priority, setting up apprenticeships to boost training.

There would be an understudy programme for Bermudians to improve their skills.

"The UBP is proposing cuts. Any economist will tell you you do not stimulate the economy by cutting.

"Many people feel Government puts more priority in a prison than education.'' Sen. Scott attacked cuts in the Police during a period of rising crime, and increasing drug abuse.

"This is a ruthless document,'' he said, referring to the Budget.

"By cutting education Government made a statement to Bermuda that it is not fully prepared to empower Bermudians to participate in the economy in the future,'' Sen. Scott added.

Government Senate Leader the Hon. Mike Winfield defended Government commitment to education and youth.

"This Government is investing over $100 million in the education system over the next seven years -- the largest single commitment in capital funds this Government and this people have ever made.'' The investment would "ensure that every single child is afforded an opportunity that cannot be found in any other country in the world''.

The Opposition wanted to spend a great deal, and seemed to be favour borrowing to finance that spending, he said.

But borrowing to pay for operating expenditure was a route to economic suicide. When this Government borrowed it did so prudently, to undertake capital projects.

Government supported both pillars of the economy, tourism and international business, but wanted to add other pillars, like international arbitration and telecommunications.

He said it was extraordinary for the PLP to say Government should not be making cuts. Government was not putting a stranglehold on the economy, as the Opposition claimed, but freeing it.

"It's reducing the burden of Government on the economy, that's what cuts are doing, making Government more efficient.'' He said it was "absolute and total nonsense'' to say Government was favouring a new prison over education. The Opposition had supported the new prison, and the work was providing hundreds of jobs.

Sen. Joe Johnson (Ind) congratulated the Finance Minister on making inroads into expenditure, but noted the size of Government's wage bill. Government had to be made more efficient, he said.

He was glad to see Dr. Saul's emphasis on tourism. "International business cannot supply sustain the employment levels needed to support Government's initiatives,'' he said.

He also welcomed the Budget's conservative approach and boost to new businesses, but was surprised there was no plan for reducing the number of GP cars.

He was also concerned about Dr. Saul's "all or nothing approach'' to international trade deregulation, rather than relaxing or modifying regulations.

Sen. Johnson said he wanted Bermudians to retain control of their economic institutions.

Sen. Ira Philip (PLP) said education restructuring and the new prison should have been completed in the "boom years''.

Government was not working for the whole community. "They have a determination to hold onto this Country at all costs, and to flog it for all it's worth.'' Sen. Philip said Government should have made the Country more competitive by education and training and by making things cheaper, not more expensive.

There was not much hope for the Premier's Commission on Competitiveness given the UBP legacy of institutionalised racism, cartels and monopolies, and its favouritism for foreign expertise over local talent.

Only the PLP could remove the artificial blocks encountered by so many Bermudians trying to progress.

The Hon. Pam Gordon , Minister for Youth, Sport and Recreation, said the Budget was a "recovery budget''.

She listed Government spending on youth, and said it had helped sports clubs survive the recession.

Government was makings savings, not cuts, she said. It had to be accountable to taxpayers and remove waste.

"The Opposition complain for the sake of complaining,'' she said. Sen. Trevor Woolridge (PLP) told the Senate: "This Government has failed the young people of this Country miserably. The on-off National Stadium project is a prime example.'' He said Government was trying to hoodwink people into thinking it did not borrow. "The capital projects are current projects. They are all part of what's happening to stimulate this economy.'' He recalled when education was not equally distributed between the races. "We still have the remnants of that kind of behaviour. Institutionalised racism is still alive and well in this country.'' He accused the Premier of "pulling together his Front Street friends on his various taskforces and commissions and the like''.

Sen. Hollis pointed out that international business brought jobs indirectly, to banks, Telco, Belco and construction tradespeople.

He defended Government's presentation of social assistance spending as standard operating procedure.

It was distressing to hear PLP misunderstanding of economics -- for example on the difference between current and capital spending.