Bermuda, despite a five percent rise in hospital rates.

It would act as a pick-me-up to senior citizens and the sick, he said.

"I'm very pleased indeed. It's a big assistance for people,'' he said.

Health & Social Services now has a $103.5 million budget -- the biggest of any Ministry -- after a seven percent increase.

Of this amount, some $56 million has been set aside for the hospitals.

In his Budget statement, Finance Minister Grant Gibbons warned of rising health costs as Bermuda's population grew older.

It was having an effect on the Government Employees Health Insurance Fund, he said.

And he announced contributions to the Fund would increase by $13 per month from April 1.

"Attendant rises based on hospital rate increases and related health care costs will take the total premium adjustment to about $20 per month.

"Government as employer must match this contribution, and thus $1.6 million has been set aside for the purpose.'' Dr. Gibbons also said: Additional funds would be provided to cover the cost of inpatient and outpatient care; Government would examine options for delivering quality care in a more cost-efficient manner; and Government would bring in the first phase of the National Pension Scheme.

Dr. Gibbons said:"Government recognises that the opportunities ahead in the 21st Century will be unavailable to many Bermudians unless strong emphasis is placed now on strengthening the family unit and safe-guarding the well-being of the young and the elderly in particular.'' He added an extra $816,000 in funds to the Ministry of Health and Social Services included some $153,000 for the development of a corporate services unit at its headquarters.

This would encourage forward planning and boost the efficiency of delivery of many services.

In addition, a further $157,000 would be allocated to support various services provided by the Department of Health.

And $440,000 had been set aside for the Department of Child and Family Services.

Dr. Gibbons said in-patient care for Bermuda's ageing population at King Edward VII Memorial Hospital would cost $2.7 million more for the coming year.

Dr. Terceira said he was pleased by the seven percent Budget increase, which came to nearly $7 million. "We've got to be prudent with expenses and make sure we exercise restraint.'' HEALTH HTH