higher taxes.

Managing Director at the Pink Beach Club Mr. W.A. (Toppy) Cowen believes a rise in the hospital levy will hit every employee on the Island.

And Mr. Cowen has calculated that lower paid hotel employees will end up losing their pay increases because of the recent tax increases in the budget.

He fears it will mean dissatisfaction among workers leading to more confrontations over wage settlements.

Mr. Cowen said: "Non-tipped hotel workers this past weekend received a $16.72 per week increase.'' He then listed what an worker, earning $500 a week, can expect to pay extra every week. His total came to $16.85.

The list included the hospital levy, a two percent increase on $300 worth of food, health insurance, electricity, car care, land tax or rent, clothing, soft drinks and beers and wines.

Mr. Cowen said: "While Finance Minister Dr. Saul was talking about the `third pillar' for us to derive additional income, he was also assailing the low bracket job holders with higher taxes.

"This, despite the fact that many Bermudians virtually survive on institutionalised begging through Government aid and charity programmes.

"The Minister's thrust was that the hospital levy was only going to be increased by one percent. In simple arithmetic every employee will be paying 40 percent more than they did the previous year.

"Perhaps money does not make an individual any better or any worse but it is a potential for conflict if he or she does not see a better way for the future.'' Having seen plenty of conflict over money in the hotel industry Mr. Cowen believes the increases could lead to industrial problems.

He said: "It was only a short time ago that the Minister for Finance encouraged employers and employees to negotiate reasonable wage agreements for the good of the country.

"Undoubtedly the move executed by the Minister has once again paved the way to aggressive and confrontational settlements''.

Mr. Cowen turned his attack on the Progressive Labour Party who, he said, were offered the "olive branch'' to come up with an "equitable solution to the unpopular manoeuvre''.

He said: "Incidentally the feeble efforts of the PLP in vocalising their displeasure in the House, and elsewhere, have been appalling. Obviously they have not done their homework.'' Turning his attention to unemployment compensation and its link up with the pension scheme, he added that if employees are not compensated for lay-offs how would they comtribute to a pension scheme? He said: "Unfortunately the so-called `user friendly' Budget cost the employee who earns $500 or less almost the same as it does for the individual who receives $1,500 per week.''