companies could be too strapped for cash to set up pension schemes.

That was the warning yesterday from Progressive Labour Party leader Mr.

Frederick Wade. He said the recession had hit businesses throughout Bermuda.

"I am concerned many firms are still fighting their way out of the recession.

It would be asking a lot for them to bear the burden of another payment.'' But Mr. Wade said he strongly backed proposals for adequate company pensions for all.

It was last October Finance Minister the Hon. David Saul unveiled Government's national pension plan.

He said only about half of Bermuda's 32,000 workers were covered by a pension.

Of the 16,000 who were covered, 50 percent were in plans which did not separate pension funds from the company's regular cash flow.

That meant they were not protected, said Dr. Saul. "Three quarters of Bermuda's workers do not have a proper pension scheme, except what they get from Government.

"That is not very good. We should do something about creating a national pension scheme whereby everyone in Bermuda, particularly young workers, would start contributing to their retirement.'' Dr. Saul pointed out Government pensions, about $680 a month, were only intended to top up those of companies.

He said Government would meet with employers to discuss the proposal. The national scheme formed part of the United Bermuda party's October 5 election campaign platform.

And Premier the Hon. Sir John Swan vowed it would be in place by next February.

Yesterday, however, Mr. Wade urged Government not to rush the proposal. He pointed out employers were already hit by other taxes.

"I'm just worried about the way the recession is still affecting some employers. Theses companies are struggling. I'm sure people would rather have a job than a pension.

"The whole scheme has to be thought through very carefully so employers can meet their commitments.''