Government demonstrated the power of its Parliamentary majority on Wednesday night after defeating opposition MPs in their bid to amend an act that will increase stamp duty when purchasing property by $500.

In the last order of a long day for MPs the Stamp Duty Amendment Act 2001 was discussed which proposed increasing the stamp duty on any property over $100,000 by $500.

Shadow Minister of Legislative Affairs, John Barritt attacked Government for what he said they were doing not for the public, but to them.

Mr. Barritt said he wanted the public of Bermuda to know exactly what Government was doing by increasing the rate of stamp duty for buying and gifting property.

He explained that every piece of property that is sold in Bermuda is subject to being stamped under the Stamp Duty Act, and on Wednesday politicians were asked to agree to a $500 increase for all property transactions as Mr. Barritt said it was highly unlikely that anyone would find property for under $100,000.

Mr. Barritt said that in the battle to improve home ownership, having to pay $500 more was sending mixed messages.

And Mr. Barritt defiantly objected to the passing of the bill.

Shadow Minister of Finance Dr. Grant Gibbons lent his support and also objected to the bill.

Trusts were also included in the amendment and the level at which ten percent taxation occurs was lowered from $800,000 to $500,000 which would create an extra $3,000 for Government coffers for every new trust set up in this bracket.

Mr. Barritt said that the average man and woman does not deal with trusts, but that they were becoming more popular, and he commended Government for doing something progressive with respect to trusts.

He said lowering the level at which trusts would be taxed was putting it on the middle level.

But concerning the increased stamp duty, Mr. Barritt said: "It doesn't sound like investing in people to me, it doesn't sound like encouraging home ownership, especially after two whopping increases in land tax.'' He said the trust amendments were progressive, but the stamp duty amendment was regressive, and he joked that Government should be called the "Regressive Labour Party''.

Finance Minister Eugene Cox said the bill was relatively simplistic and found the oppositions objections amusing, and commented that he had never seen them so emotional.

He said: "Mr. Barritt is trying to excite the people, but it is a bit late now.'' Mr. Cox said that if people went to the Bermuda Housing Corporation to buy a house, they did not have to pay stamp duty, which met with cries of "discrimination'' from the opposition.

Mr. Barritt said: "The Minister described this as a reasonable approach, and said Barritt is making a big deal out of $500.

"They are in power and they have the opportunity to do something, and what do they do, increase the cost of buying a home.

Mr. Barritt then appealed to MPs and said: "This thing can be reversed, and it should be.'' And he said the people of Bermuda must be getting sick of politics and said: "UBP, PLP, all the same damned P!'' Opposition leader Pam Gordon said the amendment would act as a disincentive for first time home owners, and suggested that the act be amended to exempt first time buyers from the increase in duty.

She said: "Would the Minister consider making an amendment that would take into consideration first time home owners, and make it exempt for them.'' Ms Gordon said it could be done with a stroke of a pen, but the request fell on deaf ears and was rejected.

Minister of Labour, Home Affairs and Public Safety, Paula Cox hit back at the opposition and asked: "Can the old guard pass itself of as the new deal?'' And she said that taxes needed to be raised for money to be generated, and that the aim was to craft a better Bermuda.

As the opposition objected to the passing of the bill, a vote was required, but Government had enough members in the House to easily defeat the Opposition.