The House of Assembly dissolved into uproar yesterday as the Opposition proposed that Governor Lord Waddington's salary be slashed to $1 a year.

The motion from the Progressive Labour Party's Mr. Stanley Morton was finally ruled out of order, but only after a wild exchange involving the Premier and senior MPs from both parties.

In moving that the Governor's $126,063 salary be cut to $1, Mr. Morton said Lord Waddington treated Opposition Leader Mr. Frederick Wade with "contempt'' when he received a 6,000-name petition at Government House on Thursday.

"It appears from his behaviour pattern that he despises Bermudians,'' Mr.

Morton said.

The Governor also showed contempt for Bermudians eligible to head the Police Service when he decided to bring the Commissioner and Deputy Commissioner from England, Mr. Morton said. The petition Mr. Wade presented Lord Waddington asked that the overseas hiring decision be rescinded.

The Governor's response to the petition was that "what he says goes, and that's it,'' Mr. Morton said. "Like it, or lump it.'' Premier the Hon. Sir John Swan said the PLP motion was a national "embarrassment''.

And the Governor himself denied the Opposition charges. "I certainly don't despise Bermudians,'' he told The Royal Gazette . "I have the greatest respect for the Bermudian people, and I also have the greatest respect for decisions taken by a democratically-elected Government.'' In accepting the petition at Government House, Lord Waddington appeared angry as he told Mr. Wade the decision would stand and people of goodwill should now support it.

"I made it absolutely plain...that the decision was my decision after consultation with the Public Service Commission and with the elected Government of the people of Bermuda.

"I cannot believe that Mr. Wade or anybody else seriously thought that I, the Governor, would reverse a decision taken with the agreement of a democratically-elected Government, on receipt of a petition.

"To do so, if anybody just thought about it for a moment, would be the antithesis of democracy.'' Mr. Morton's motion came during the Budget Debate, on the first morning the House met in committee of supply to consider the 1995-96 Government Estimates in detail.

"None shall be spared,'' Mr. Morton said. The Governor "comes under the spotlight of scrutiny like anyone else who's receiving a pay cheque from the people of Bermuda''.

"For the $126,063 we have to pay him, we are expecting better value for money,'' he said.

The days of British Governors "sticking their chests out and telling us what to do are long gone.'' Sir John said that for the Opposition to want to remove the Governor over a disagreement "is sending a message to the outside world that there is a level of irresponsibility in Bermuda''.

"Basically, the motion is to remove the Governor,'' he said.

Sir John went on to suggest that Mr. Morton's motion could place the Governor in danger, recalling the assassination of Governor Sir Richard Sharples in 1973.

Recalling a speech at the time by Mr. Walter Roberts of the PLP over "a similar type of disagreement'', he said the Governor was subsequently assassinated. Mr. Roberts "talked about the Governor's dog and the dog also was assassinated''.

Deputy Premier the Hon. Irving Pearman said Mr. Morton's motion was "beyond reason'', and Bermudians should view it with "alarm''.

"They are totally disregarding the fact that we are a British dependent territory,'' he said. "Great Britain is responsible to provide us with a Governor, and we have a responsibility to see to it that that office is properly provided for.

"Otherwise, you start to bring down the whole structure of this democracy.'' Mr. Pearman also accused Mr. Wade of going over the Governor's head when he flew to London this month to present the petition to Mr. Tony Baldry, the British Minister responsible for Bermuda.

"The UK Government would not accept it, because they respect our Constitution,'' Mr. Pearman said. "They said it should go to the Governor, or this House.'' Mr. Wade denied that, and said Mr. Baldry did accept the petition.

Deputy Speaker Mr. Tim Smith overruled a number of Government objections that the motion violated Rules of the House of Assembly. But after Clerk Mr. James Smith researched the matter, he eventually bowed to the Hon. Ann Cartwright DeCouto's argument that the motion violated the Constitution.

Opposition MPs said the Governor would never have brought in the UK officers if Government had not supported the move. "How can you pursue Independence, if you feel so insecure,'' asked Shadow Home Affairs Minister Mr. Alex Scott.

Government plans an Independence referendum for this summer.

At the end of the debate, the PLP voted against Finance Minister the Hon.

David Saul's motion to approve a total of $902,000 in spending for the Governor and staff. With PLP MP Dr. Ewart Brown absent, Dr. Saul's motion passed 20-17.

Section 100 of Bermuda's Constitution says the salary of the Governor and several other officers "shall not be altered to his disadvantage after his appointment''