vote through new Commission for Unity and Racial Equality regulations to measure the racial make-up of companies.

Progressive Labour Party Senator Michael Scott pleaded with the Opposition and Independents not to fall victim to "mindless, reactionary, stonewalling tactics'' to stall the proposals.

But the three Independents agreed with the United Bermuda Party Senators that the business community needs more time for consultation, and voted down the plans.

Sen. Scott asked: "What is the problem? Without statistics, flow charts, and information we will not be able to give and inform answers to our constituents.

"The whole issue is the act and principles in the regulations were subject to full consultation,'' he continued. "When the Progressive Labour Party came to power, voluntary compliance was reviewed and led to this.

"Be sure that you are not being used for some abusive purpose. Don't kowtow to an agenda that is designed to bamboozle. Beware and be careful and not let histrionics let you fall into the hands of a small group.'' Sen. Scott said the regulations would lead to a more harmonious workplace where there would be equality among the races and lead to greater productivity and economic benefits.

"These regulations are the will of the people who elected us,'' he said. "We have to be careful not to fly in the face of that.

"The Code of Practice (passed under the previous United Bermuda Party Government) can't generate statistics to generate comparisons.'' Sen. Scott also questioned why there had been a perceived about-face from business leaders in recent months.

"Since January, when Bermuda Employers' Council, Bermuda International Business Association, Hotel Employers and others were on board,'' he said.

"What happened between January and March 27 to promote this controversy?'' He added: "Four hundred and ninety four businesses who qualify to be registered have done so and only six have not. They were saying `we're keen and we're happy'. You can't say there hasn't been any consultation.'' Sen. Scott explained that information about individuals in the CURE forms such as salary and benefits would be kept confidential between employers and employees.

Employees would simply be required to present aggregate sums based on race to the Commission.

Stressing quotas would not be introduced, he said: "We hope registered employers will use the data they collect to assist their overall picture, so there's an element of confirmation'' so that employers could use "self-regulation''.

It would also allow bosses to assess whether their advertising, recruitment and training procedures were adequate.

He said he wanted to allay fears that equality in the workplace meant firing workers and hiring ill-trained people.

"At one time it was taboo to speak about racial discrimination. Not only will this Government speak about it, it will address it.'' Senate Opposition leader Maxwell Burgess said all Senators supported the legislation.

He said since the election of the PLP, black people criticising a black government were accused of being disloyal and whites doing the same were branded racist.

Sen. Burgess said the legislation needed a good working relationship between all involved to proceed, but business leaders were crying out for more consultation.

"Until we are satisfied that a reasonable conclusion has been reached with all the stakeholders who are expected to work it day in day out, all you have done is nothing but continue to (pass) a wonderful piece of legislation in vain. We want to make sure what we want accomplished get's accomplished.'' He said Sen. Scott had talked about a minority of employers lobbying for more time. When negotiations were going well prior to January, the PLP claimed the majority of employers group supported it, when the same group called for a delay, Government had characterised them as a minority.

"That's not the way to go forward, especially when we had the Premier on Friday speaking out (to St. George's Preparatory School parents) saying there's no reason to use a sledgehammer, we're a government of consultation.

"Now with the same Government we have groups crying out saying they weren't consulted enough. That's why you get people called liars.'' He said Government consulted with human resource managers of leading companies before January, but if chief executive officers, who have to "sign off on it'' want to see it, it was not an unreasonable request to see the document.

Government Senator David Burch said it was not unreasonable for company representatives to have showed the plans to their bosses.

But Sen. Burgess hit back: "When Government finds itself in a hole, drop the hoe. CEOs said they had not been consulted, so drop the hoe. It's not about who's fault it is, it's about how do we go on from here.'' He continued: "Any Government that believes in transparency should make sure proper consultation takes place and procedures because it is the moral and right thing to do. We don't want business groups marching on us next.

"Pressing on for pressing on's sake...simply makes no sense to me. When we get it right we can hold our heads high and say we got it right. Then anyone who doesn't want to comply can be seen as a minority.

"What we do today speaks about how we treat our fellow Bermudians, one on one, and how we respect each other.'' PLP Senator Patrice Parris said she expected the debate would be about issues such as the forms and classifications. "Is it just the consultation issue that is important? The Minister had consultation with the most appropriate individuals, the human resource managers.

"I would imagine the CEOs appointed these people because they had expertise.

It's assumed it's been done. We were prepared to answer questions about the forms.'' Independent Senator Jeanette Cannonier said it was clear there had been an outcry about lack of consultation from the business community.

"Government makes a big issue of transparency. If some issue is made of transparency, why not be transparent,'' she said.

"Why does this have to pass today? What are the issues saying that we don't have time to consult? "Bermuda Employers' Council sent out membership information earlier this month saying the same thing as Bermuda International Business Association -- that we've not been consulted. Why cause unrest when it's totally unnecessary? "We may come back to the table with the same set of proposals, maybe minor amendments.'' She wondered whether the plans would achieve Government's stated objective of achieving happier and harmonious working environment. "These regulations might have the reverse. This is Bermuda, let's face it.'' She added: "I strongly believe institutionalised racism is alive and rife -- however there are pockets of the community where it is alive and rife. Let's find out who's not doing it right and let's go after the offender.'' Independent Senator Walywn Hughes said most employers were working towards the "noble cause'' of eliminating racism in the workplace, but commitment only comes from participation.

"Stakeholders, and employers are stakeholders, need to be part of the process and be part of consultation.'' He said the regulations might be considered intrusive and burdensome on employers. Overseas applicants might be offended by having to give details about their race, and it would not be allowed in the United States.

"There are things that have to be talked out. Whether better other regulations would be produced, who knows? Something better might come out but better the feeling there might be for those who have to get in to play these regulations.'' Government Senator Calvin Smith said he was "baffled'' by the demand for more consultation, as it was "something a simple child could understand''.

"We are asking permission to ask five simple questions classified by race.

Who do you hire? Who transferred? Who left the place, and asking the questions on the basis of six categories of race.

"This is put in front of the employee. Does someone need knowledge of rocket science to fill this in? "I agree race has been here for a long time, and that might be the problem (that people don't) really believe something ought to be done.'' He said it was "insulting'' to suggest people of the intelligence of CEOs would need to have this explained to them.

"Don't tell me they don't understand this and don't understand the implications and we've got to continue consulting.'' He said he had been waiting "all these days for better days, for the promised land, and we were just about to do something about the consequences of rampant racism'' but Government was being asked to wait again.

It was a chance to have a "rational way to develop policies to hire people only on the basis of ability. We are in the position where we must have the best possible employees and remove the practices of the past and remove the institutional practices of the past.'' He added that the regulations would reveal which companies were discriminatory rather than allowing people to claim it was "institutional''.

Senate President Alf Oughton said he had heard that Development Minister Terry Lister had already consulted with representatives of some exempted companies and heard their concerns regarding the regulations.

"I had just hoped that they could have been put on the back burner to give the Minister some time to meet with these people some more and really listen to what they have to say,'' he said.

"And it hopefully it would not be them telling him what is wrong with the legislation but rather how it can be made better.'' Sen. Oughton said it was not the principle of the regulations that worried him but rather the content.

"I fully approve of the aims of the legislation,'' he said, "but it would be better if the Government took the approach that they did when considering the work permit regulations, consulting all parties who represented the `broad interest of the community'.'' "Everybody buys into the basic principle of the matter,'' Sen. Oughton continued, "and I agree with what Sen. (Calvin) Smith said about the form being easy to read.'' "But the fact that he has already met with many of the those interested parties and that he understands their concerns leads me to hope that we will be able to hold it over until after Easter.'' Sen. Michael Scott said he felt, if further consultations were carried out, the resulting changes would not be significant enough to change the fundamental purpose of the regulations anyway.

"We can see which way the wind is blowing on this and it's blowing in an easterly direction,'' he said.