The Island's seniors were certainly not overlooked in this year's budget.

Finance Minister Paula Cox revealed that a nine percent increase in pensions would be forthcoming in August and that work would begin on a "state-of-the-art" government seniors' home.

Ms Cox said that construction of the St. George's Residential Care Facility for Seniors will begin this year, and that she expected it to be finished next year. The care facility has been promised since the old St. George's Rest Home was closed in 1999 for health reasons. Government has promised the new facility will be ready this year, with four different levels of care.

"A sum of $7.6 million has been earmarked for the construction of this modern senior's facility in 2004/05," Ms Cox said.

Ms Cox also said no one could "begrudge this expenditure", and in a random sampling of seniors we spoke to after the budget release, that was certainly the case. "I'm sure they could use it down there," a Bailey's Bay senior told us, while a 68-year old Pembroke woman said: "They need that kind of thing. Where else are people going to go?"

Age Concern director Claudette Fleming was also appreciative of the move. However, she pointed out, financial attention was also needed in the seniors homes which already exist on the Island.

"What happens to an already strained system?" she asked. "We can't have it all. But, if we could, some money directed towards the running of rest homes in general would be nice - recognising there is only so much money to go around."

The three seniors we spoke with were most appreciative of the nine percent increase in pensions. Having battled hard just to receive a three percent increase last year, which seniors did not receive until months after it was originally promised, the promise of an increase of nine percent was received with acclaim.

The Bailey's Bay lady is on a full Government pension, and while she said she is not struggling to make ends meet, she explained that she is careful because she has to buy medication.

She spends on average $200 a month on medication for diabetes, high cholesterol and high blood pressure. "I make sure I put the money aside for that every month, because I have to have those medicines," she said. "I am able to keep my cholesterol down because I regularly exercise. I go walking and swimming at John Smith's Bay. I try not to let anything get me down because it's just not going to help. I'm sure it (the increase) will be a good thing for me."

In contrast, the 68-year-old Pembroke lady said she does struggle with her finances and uses all her pension every month. "I have to pay rent of $500 a month, and electricity and telephone and everything else goes for food," she said.

"I am behind in my cable payments now and keep saying I need to go and put something down on that bill. Sometimes I go two and three months without paying my electricity bill because I am trying to make ends meet. I make my food last for two days instead of one. I use all my money every month. I wish the money ( the increase) was coming tomorrow."

Recuperating at home after a stroke just a few months ago, a 78-year-old Hamilton parish woman said the increase would not put she and her husband in the clear financially. The elderly couple are both on partial pensions and neither work now.

"It's very difficult I had been in hospital for 13 weeks," she said. "It's not much of an increase it will be all used up in medication. I just had a little change last month so I bought water and paid my doctor's bill today. After we pay rent, electricity and our phone bill there 'aint nothing left really," she said. Age Concern applauded the increase. "Congratulations are in order to the former Minister (of Finance) and his daughter (the current Finance Minister) for this foresight," Ms Fleming told The Royal Gazette. "They have proven they have been responsive to the calls for action for seniors."

However, with no increase being made in pension contributions and the majority of the money for the increase coming from money Government received in the termination of the US Baselands Agreement, there are questions as to how Government will fund the increase in the long-run.

"Going forward there is a challenge for the Minister," Ms Fleming agreed. "I don't think we should kid ourselves, sustainment of these types of programmes means they will have to be paid in some way. It is up to the Government of the day to find the way to pay for that."

A study on Ageing in Bermuda" conducted by Government in partnership with Fordham University was also highlighted in Ms Cox's Budget Statement. Ms Fleming said she understood that study would look at families, seniors and their needs. Simultaneously, Age Concern released a statement announcing that accounting firm PriceWaterHouse Coopers has agreed to help fund a feasibility study by Age Concern on the Island's 13 private and not-for-profit rest homes.

The homes agreed to have their records reviewed to determine the actual costs of caring for seniors. "With the two together, we should get a very clear picture of where we stand," said Ms Fleming.