protect Bermuda from exploitation by outsiders -- despite Progressive Labour Party support on a vote to waive the 60/40 ownership rule for the old Bermudiana Hotel site.

Finance Minister Grant Gibbons said yesterday that new ideas were needed to develop Bermuda in the future -- particularly the old Base lands -- and the 60/40 rule may need to be reviewed.

But Shadow Finance Minister Eugene Cox warned support for exempted companies ACE and Exel's plan to develop the Bermudiana site did not guarantee PLP support for future exemptions.

Dr. Gibbons said: "Bermuda has been very internal looking -- but what I'm trying to do in this Budget, and what we need to do, is look externally.

He added on the Base lands: "We need to do as much as we can to remove impediments to local as well as international investors to turn this into the opportunity which can and should be going forward.

"Government can't fund it on its own and neither can the local economy. We are going to require significant international investment.'' Dr. Gibbons said Bermuda could not allow itself to be left behind in the wake of a technological revolution which has broken down international barriers.

He said: "We need to look outside of Bermuda to realise a lot of these opportunities coming forward in order to maintain our standard of living.'' The House agreed last Friday to pass the bill allowing ACE and Exel to develop the prime Hamilton site for their offices without debate only 42 seconds after it was introduced as a private member's bill by PLP MP Reginald Burrows.

The bid was opposed by the locally-owned Bermuda Financial Centre Ltd. which wanted to develop the site for offices, shops and a hotel.

But the firm struggled to come up with the cash for the deal and site owners Argus Insurance agreed to sell it to ACE and Exel, conditional on the private member's bill passing and planning permission being granted.

Rift may open over 60/40 rule Opposition Leader Jennifer Smith said yesterday that the 60/40 rule guaranteeing majority Bermudian ownership of businesses had been passed several years ago and should be looked at again.

But Mr. Cox said: "One should not guesstimate that because we have done that in one particular instance it's a case of tearing down the walls.

"We obviously have to look at it, as the leader said, but that legislation has served us well and we must be careful how we address it.

"After we give consideration to it we should come up with something which will not harm Bermuda when we make changes such as the ACE and Exel thing.'' Mr. Cox added: "As we said with ACE and Exel, it's really a private act which gives the companies Bermuda status almost.

"We have to look at each case on its merits. It's a case of looking at all of these -- the legislation has served us very well.

"We may find down the road that we need to make some amendments but we shouldn't just roll up the door.''