Opposition Senator Bob Richards blasted Government for its mishandling of the economy which he said was veering out of control.

He said Government had not got a grip on credit which was vastly outstripping inflation ? growing 161 percent since 1998.

"Too much credit in the system causes economic overheating and inflation."

An "orgy of lending" had fuelled a huge surge in property prices, said Sen. Richards, which had soared 325 percent higher than inflation.

"This PLP Government is sitting on its hands and doing nothing to manage, influence or control important factors in the economy, factors that are having a profound negative affect on members of our society."

He said the construction boom was doing nothing to help house ordinary Bermudians.

"Residential starts are down, having peaked in 2003. Can you believe this? This in a time of prolonged housing crisis."

Although a firm believer in free enterprise, Sen. Richards said it did not always address clear cut social needs and Government needed to get going on housing. But there was nothing in the budget to fund new housing which it had promised.

"Why is a Government, which is flush with cash, not putting one dime of its money where its mouth is?"

He said there were few entities in the world that could borrow as cheaply as the Bermuda Government but the public/private housing partnerships being proposed might see added costs to the taxpayer.

And he added: "Such arrangements have an elevated ability to have details hidden from public scrutiny, thereby expanding the scope for nefarious, sweetheart deals to flourish undetected.

"The still missing $700,000 of Berkeley fame will seem like small potatoes compared to the potential for abuse here."

There was little or no regard to sustainable development said Senator Richards with five major hotels slated for a single five-mile stretch of South Shore.

He said Government's supposed success on tourism was hype when you consider bed nights sold last year were only 71 percent of the 1998 figure.

Arrivals have been dominated by cruise ship passengers who now spend only a tenth of their counterparts coming by air.

Senator Richards said there were nearly 300,000 visitors last year but when the numbers of people visiting friends and relatives, business travellers and repeat travellers were subtracted then only around 92,358 were genuine first-time tourists.

"Those are the people we can legitimately say our Department of Tourism spending has caused to visit our Island for a holiday."

Divide the $40 million tourism budget by the 92,358 arrivals and it works out $433 was spending on luring each new tourist to Bermuda's shores.

"We may as well have purchased each of them a free airline ticket, it would cost about the same amount.

"And of course to be consistent we would have to continue offering Ashford and Simpson their obligatory $18,000 private jet to entertain the minister and his friends."

Sen. Richards, a former Telecommunications Minister, said oversight and regulation in the telecoms sector was now in chaos.

He said Government was consulting on plans to end the 60/40 ownership restrictions but it was a complete sham as it had already let Digicel become 100 percent foreign owned.

And he said the industry was against changing the rules which only favoured foreign owned carriers.

Sen. Richards also hit out at Government for doubling tax on foreign currency sales which he said would make the cost of living even more expensive and push up overheads for importers.

He compared the $26 million for sport as similar to Caesar's use of Coliseums in Rome to distract the average Romans from rising up against their emperor over poor living conditions.

He indicated the money would be better spent on basics such as education.

Opening the debate, Senator Kim Wilson said Bermuda was an economic success with the balance of payments and the current account both in surplus.

She said Bermuda was the third richest country in the world, there was a large balance of payments surplus and the gross domestic product was the world's highest.

The naysayers who said international business would come to a grinding halt under the PLP had been proved wrong said Ms Wilson.

International business jobs had leapt 6.1 percent in the past year ? a total of 256 jobs said Mrs. Wilson.

She said the economic zone in North Hamilton would bring new hope for those who didn't have the access to finance enjoyed by colleagues south of Church Street.

She said: "It isn't about redistributing wealth. It is about a level playing field."

But she Government was aware of problems in education such as poor graduation rates and would tackle them.

She said there would be a literacy initiative to boost reading among primary and middle school students. Students from P1 to P6 will be assessed in reading three times a year.

There was a lot of finger pointing in education with everyone blaming each other said Sen. Wilson. "But it isn't the teachers responsibility to teach children life-skills or manners or respect, it is the parents' responsibility."

Independent Senator Walywn Hughes said the economy was booming and there wasn't much in the budget to upset the man in the street.

But he regretted the rise in tax on taxes on foreign currency purchases which goes up from 25 cents for every $100 to 50 cents.

He welcomed the fact that war veterans would be given bigger pension pay-outs which he said was long overdue while he praised the new emphasis on education.

"It is great to see the problem has been realised and now we are going to get on with something."

And he had praise too for the economic empowerment zone in North Hamilton.

But he lamented more had not been to curb spending and pay off debts.

"We are not putting much aside for a rainy day."