Gaming machines will finally be phased out by June 2004, Premier Jennifer Smith announced yesterday.

But the United Bermuda Party condemned the deadline as too late, saying many Bermudians will become addicted to gambling before the machines are finally scrapped.

The Chamber of Commerce expressed regret, saying bar and restaurant owners hoped a compromise could be reached where Government would allow the money-spinning machines to remain but would tax them. Bar owners who have been hard hit by the slump in tourism say banning the machines will starve them of a valuable source of money.

Legislation to ban the importation of the machines and spare parts was passed in June last year and became effective in January.

Ms Smith said a report from Police Commissioner Jean-Jacques Lemay suggested the machines will experience technical problems after three to four years.

The Premier said some of the Island's 335 gaming machines, which are housed in 46 bars and clubs, may be able to survive the ban on importation of spare parts by cannibalising scrapped equipment.

But by June 30, 2004, any still working will have to be dismantled.

She said: "We have been in touch with the manufacturers to find out what the average life of these devices might be.

"We have also listened to the owners of gaming equipment and considered their need for an adjustment period.

"As a result of the information contained in the Police report and our consultations, we believe that five years after our first announcement is a reasonable amount of time for operators to wind up their operations.

"This Government does not believe the best interests of the community are served by allowing gambling to become more prevalent and pervasive.

"Although the existing ban on spare parts might have spelled an early end for much of this equipment, some might have been kept in use by scavenging spare parts from scrapped equipment.'' Deadline set for gaming machines "The effect of Government's decision, and the proposed legislation arising therefrom, is that any equipment still operational by June 30, 2004, will need to be scrapped completely.'' UBP Shadow Environment Minister Gary Pitman said: "What they are doing is condoning gambling for another three years and there is a lot of damage that can be done from a social point of view in that time.

"The number of people that could become addicted to those machines in that time is phenomenal.

"It is most disappointing to hear, but at least some deadline has been set, albeit an extremely generous one.

"I would argue to have them phased out in three months, 12 months at the very outset, but three years is absolutely shocking.'' Jay Correia, the Chairman of the Chairman of Commerce's Nightclubs and Restaurants division and co-owner of The Swizzle Inn, said: "They are here, people enjoy them, and it is unfortunate to see them go.

"I was hoping they would come to some form of accommodation through taxation.

I don't see them, as some people do, as a social ill.

"In many ways gaming machines offered entertainment for people and clearly there are a lot of people who enjoy playing them, understand the risks and take a chance with their money.

"What concerns me is that given the downturn in tourism and the serious financial situation, for pubs on the Island it has proved to be a nice source of revenue.'' SPECIAL FARES FLY Special fares British Airways has announced a Europe for Christmas special fare for Bermuda residents.

District manager Philip Troake said: "We are excited to offer this highly competitive fare to ten cities in Europe before as well as over the Christmas period if tickets are purchased seven days in advance.

"For travel commencing November 28 through December 12, the round trip midweek airfare from Bermuda to Paris, Nice, Geneva, Zurich, Frankfurt, Munich, Rome, Milan, Barcelona and Madrid is offered at $624.

"The midweek round trip fare to London or Manchester will be $524.'' The minimum stay must include a full Sunday and the maximum stay is for a period of 45 days. These fares are subject to availability and other conditions may apply.