afternoon.

Discussing this year's budget allocation for the Department of Works and Engineering, Senators acknowledged that Government needed to tackle the problem of providing more affordable housing.

Government Senate leader E.T. (Bob) Richards claimed that unoccupied homes at the former US naval base were unsuitable for residents, although he did admit that Government was investigating the possibility of renovating the homes.

And he said the Housing Assistance Programme -- which makes up the difference for people who cannot afford to pay the full market rent on a property -- was also being re-examined.

"The Housing Assistance Programme is inadequate in that some of the factors in working out the formula have become out of date,'' he said.

"We find ourselves in a situation where the housing stock is inadequate but Government has recognised this problem and is putting in a great deal of resources to identify an array of solutions.'' Sen. Richards also commended the work of the Bermuda Housing Corporation in finding people accommodation and encouraging residents to buy their own homes.

"The expanding economy of Bermuda has put pressure on housing supply,'' he said.

"The private sector wants to build houses at the higher end where they can charge higher rents. It's not providing houses for low income families.

"Another factor is that many houses have been taken off the market for one reason or another.'' Opposition Sen. Terry Lister argued that new houses did not have to be built but that current resources could be used more effectively.

"We have 300 units sitting out there derelict,'' he said.

"You could invite owners to renovate their houses with soft loans.'' Sen. Lister also called for new laws to encourage people to rent out their homes.

"There might be people who have had a bad experience with tenants,'' he said.

"A law that deals with landlord/tenant relations needs to be addressed. I don't think the law has been amended in 15 years.

"Can we supply low cost housing? No. Can we provide affordable housing? Yes.'' Other problems discussed by Senators were the cost of building bus shelters, which many claimed were too expensive.

But Sen. Richards argued that they were designed to last and would prove cheaper in the long term.

The Tynes Bay Waste Treatment facility was also praised by Sen. Richards.

"I think this facility is a success story for Bermuda,'' he said.

"You can get rid of your trash by putting it in the incinerator and then get something back in the form of electrical power.'' But Sen. Lister argued that the facility was not being used to its full advantage and that electrical output could be improved if trash collections were made twice a week.