Businessman, author and economist Robert Stewart last week accused Government of putting up a smokescreen and avoiding the real issues when it came to the problems with the Island's pension scheme.

Mr. Stewart said he stood by his comments that there were serious problems with Bermuda's pension scheme and he charged that the Government had not responded to his allegations that there were insufficient funds to meet future pension needs.

A row has erupted following a speech given by Mr. Stewart last Tuesday at the Rotary Club in which he said the Island's pension scheme was heading for trouble unless serious steps were taken.

Acting Finance Minister Paula Cox took him to task on Thursday criticising his statements as inaccurate in a speech that "may have created an overly negative impression of the state and future viability of the Contributory Pension Fund".

"The Minister did not answer the question in her response," said Mr. Stewart.

"The main question is what is going to happen with the rising cost of health and pensions? The Minister did not answer the question, it is just a smokescreen - she is avoiding the issue."

He said on Friday he was astonished that his talk to Rotary had evoked such a response from the acting Finance Minister.

"As this was done, may I respond to her somewhat incomplete statement," he said. "The system is unworkable unless contributions are increased, benefits reduced, or the retirement age is pushed forward to, say, 70 or a combination of all three. There is little evidence that such difficult decisions are being thought about."

Mr. Stewart said at Rotary last week that the current plan was unworkable with huge problems looming for 30 and 40 year olds who would get little reward for contributions they were now making. And he then made comparisons to other pension schemes around the world that are now nearing bankruptcy.

Ms Cox last week said that Mr. Stewart's claim that no figures were available since 1993 were inaccurate, and that financial statements for the Contributory Pension Fund were last published in 1999 and the financial statements for 2000 and 2001 would shortly be tabled in the House of Assembly.

Mr. Stewart said last week: "The acting Minister might wish to refer to the 1995 Green Paper `A National Pension Scheme' which stated that the Contributory Pension Fund "may face a condition of insolvency" in 2012.

"If that is not a warning that something is seriously wrong I don't know what is. If something has changed, perhaps she should inform the public."

Mr. Stewart also said that he had tried to get the most up to date figures - but the head of the Contributory Pension Fund said that the actuarial reports had not been tabled in the House of Assembly. He added that e-mails and telephone calls had gone unanswered when he was trying to investigate the matter. He said he was aware of the 1999 document, but was unable to get to see a copy of it.

"As I mentioned, dealing with the Bermuda Government on such matters is virtually impossible as secrecy reigns. It is as difficult getting information on a public pension fund as it is obtaining information about the Cuban bus sales," said Mr. Stewart last week.

The Minister said in her response that there were seven types of benefits payable under the Contributory Pensions Act and said that the scheme was never intended to represent a retiree's sole source of income.

Compulsory private pension schemes for Bermudian workers were introduced in 1998 to ensure that employees now entering into the labour force would have enough money when they retire.

Mr. Stewart added: "The 1998 pension act deals only with benefits post 1998. About half of the pension age population in a few years time, mainly white collar, will have the benefit of a pension. Others, mainly blue collar, will be left out in the cold."

And he pointed to other countries that were also facing an ageing population with restricted funds.

He said: "The pension problems of Bermuda are not unique. On the day I spoke to Rotary, no one could fly into France because public servants and others were on strike because the French government was trying to come to grips with problems similar to those we face in Bermuda.

"Other countries like Japan, Italy, even the US have difficulties with an ageing population. Bermuda it appears does not. I hope the acting Minister is right, and I am wrong but the record of politicians telling the truth about long term financial matters is a good one."

He added: "The problem of meeting costs for the elderly can be identified and provision made. What is lacking is any political will to deal with the subject, or even talk sensibly about it."

Calls and faxes to the Ms Cox were not returned by press time.