The Coalition on Long-Term remains optimistic that Government will make eleventh hour amendments to its proposals - even though they have already been passed by the House of Assembly.

Spokesman Robert Pires said Home Affairs Minister Paula Cox wanted a fair solution, but racists in her Government who do not like white people were making it difficult.

He said the "Butler effect'' - named after backbencher Dale Butler's xenophobic comments about European women being plain and not using deodorant - in the Progressive Labour Party was holding back a fair solution for long-term residents.

The Coalition has countered Government's long-term residents' White Paper with a suggestion that everyone who has been in Bermuda for 20 years should be given status. But it would compromise on 25 years. MPs have already voted to give everyone on the electoral roll on May 1, 1976 status, but this excludes many who did not or could not register, and the Coalition is arguing that they should also be included.

Mr. Pires said he was optimistic the proposals - which still have to be debated by Senate - will be amended and taken back to the House of Assembly.

He was speaking last night after it was revealed that Bermuda's commercial rival - the Cayman Islands has lifted a ten year moratorium on granting status to long term residents and will now give status to anyone who has lived there for ten years, or anyone aged 18 who has been a resident for the preceding three years.

Mr. Pires told The Royal Gazette: "We think the minister, being a very good international lawyer, knows what needs to be done, but she is having to contend with the Butler effect of tremendous racial animosity and bigotry among her colleagues that makes it very difficult for her to come up with a better offering for long-term residents.

"What it comes down to is that the great majority of these people are Caucasian and that's creating great difficulties for the Minister among her colleagues. The Butler effect aside, what we've proposed would be achievable. We're hoping we can sit down with the Minister and smooth this out.

"Bermuda is very much out of step with the world community on this. We understand Bermuda has to take a more conservative approach than Cayman, but 25 years is a pretty good compromise when our most similar neighbours are giving status after 10 years.

"It's not over until it's over, and although we are talking tough, we are optimistic. The White Paper does have a lot of gaps and it is confusing, so we would be looking for clarity and therefore new drafting.

"Although we are talking tough, the Government does want to do the right thing and for that we congratulate them. The chances are because they have such a high majority they will get whatever they want, but the whole point that they made is they wanted to settle this once and for all, but they are not doing this because there are gaps.''

Cayman is bigger than Bermuda, but has a population of just over 40,000, almost half of whom are ex-patriots. Mr. Pires added: "We would be happy if Government approved status to anyone here for ten years, but because of Bermuda's limitations, we've proposed 20 years.

"It is unconscionable for people to have been here for 25 years and not have rights. The Portuguese are most discriminated against because they are not Commonwealth citizens and there was no possibility of them being on that register.

"But the West Indians are equally discriminated against and feel very angry because being common labourers for the most part, they were not able to take time off work during the day to come to Hamilton to register and they were never encouraged to do so.

"The Coalition is most grateful for what it has accomplished, but there are still tremendous gaps that have to be resolved. Our legal committee reviewed the white paper and there are not just gaps, but a lot of confusion as to how it can be interpreted. We will sit down and meet in September when everyone is back from holiday, but it isn't over until it's over.''

Ms Cox did not want to comment on the proposals in the Caymans and could not be contacted later last night to respond to Mr. Pires' comments.