A businessman set to quit Bermuda in protest over get-tough policies in the workplace yesterday welcomed a Senate block on new Commission for Unity and Racial Equality rules on race reporting in the workplace.

And William Williams -- who announced earlier this month he was moving his multi-billion dollar business to California due to work permit restrictions and the workplace racial monitoring proposals -- said he hoped the delay would mean Government would rethink the regulations.

Mr. Williams said: "I'm absolutely overjoyed and elated that we've got some breathing space now.'' And he called on the Island's business community to stand firm to force a change of policy.

Mr. Williams added: "If business leaders will speak out, be very specific and very forceful, maybe this thing can be modified and maybe put in a form which will allow business to operate efficiently here.'' He was speaking after Opposition and Independent Senators united to vote down the CURE rules six to five in Senate on Monday.

That means Government has the option of modifying the regulations -- which business bosses claim are too bureaucratic and intrusive.

But the Senate can only block Government legislation for a year, so Development and Opportunity Minister Terry Lister could opt to sit out the time and bypass Senate altogether.

Mr. Williams, who is taking his STW Fixed Income Management to Santa Barbara, with the loss of up to 18 jobs, many of the Bermudian, warned that the Senate vote would not necessarily mean a change of heart.

He said: "The fact that we've got breathing room doesn't mean that the business community will be successful in getting legislation to allow them to operate as they should be able to, but it certainly does give hope.'' But Mr. Williams added: "If concerned business people are relentless in putting forward their ideas to Government and letting them know what they will do if the CURE legislation and work permit legislation goes forward, not as threats but as facts, I think it would be very hard for Government to sit on their hands and not react.'' He said: "It's time for these people to speak out publicly and they have as much as a year to do it.

"But if enough people stay quiet, they will pay the price of their silence.'' And he asked: "What can they do to them? They will do it anyway if they don't speak out.'' After saying his firm was leaving, Mr. Williams later called for a campaign of civil disobedience and offered to pay the fines of up to 20 Bermudian companies who wanted to register a protest, but could not afford the penalty.

Earlier, he stressed his commitment to employing the best candidates regardless of race and accepted that the racial discrimination of the past still "haunted'' the Island.

But he insisted the work permit rules -- including time limits -- and the CURE regulations were "unworkable''.

Mr. Williams declined to take credit for helping to sway Senate in favour of blocking the controversial legislation.

He said: "I'm not looking for vindication because, for the little bit of vilification I've had, I've had a lot of calls of support and privately people I respect a great deal have indicated that what I've said was best for Bermuda.

"People have seen my advice to Government -- the legislation should be scrapped. If they want to do an employee consensus that's fine, but they should scrap this legislation.

"I hope I did have influence -- but for whatever reason, I hope this moves in the right direction, whether I speak out, or whether other people speak out in the future.'' The original rules passed by the House of Assembly covered any firm with ten or more employees. Firms would have had to register with CURE and provide an annual breakdown on race, employment level and income of the workforce. Firms would also have had to provide information on the racial breakdown of job applicants and a list of people who quit by race and give a reason.

Employees would have had to fill in forms giving their ethnic origin, job, pay and perks, while job applicants would be required to give race and post applied for.

Firms failing to register or to provide information to CURE would be liable for fines of between $1,000 and $5,000.

Business chiefs said -- while they supported equal opportunity -- the CURE regulations meant too much red tape and complained of insufficient consultation before the legislation went to the House.