The ?grand-daddy? of all PLP schizophrenia is the party?s attitude towards selling Bermudian assets to foreigners, Opposition Senator Bob Richards said yesterday.

As the Budget debate kicked off in the Senate yesterday morning, Sen. Richards also said Government should have been able to see the retail sector was in trouble before the dramatic announcement that Trimingham?s will close.

Citing the weakness of the US dollar as the reason for high inflation in Bermuda was misleading, he claimed, noting that some 80 percent of Bermuda?s imports are from the US or are priced in US dollars, and so should not be affected by a falling US dollar. Instead, inflation is driven by local factors such excessive money and credit lines which, without a central bank in place, the Bermuda Government had failed to control.

Government spending outstripping the rate of inflation was another factor driving prices up, he said, warning that the reason Government now wants to raise the statutory debt ceiling is to pay for the backlog of capital projects currently crammed down the pipeline.

Meanwhile Sen. Richards called on Government to decentralise the Ministry of Education, giving those talented principals and teachers ?in the field? more autonomy; and questioned the ?unintended consequences? of PLP decisions which, he said, have benefited only ?rich white folk? in the end.

However Government Sen. Raymond Tannock, who led the Budget charge in the Senate yesterday, said no one could deny that the economy is ?flourishing?.

The international business sector ? already more than one fifth of the gross domestic product (GDP) ? continues to grow, he said, while the downward rush of tourism has been halted and that sector ?is finding its feet?.

Construction was the only sector which came close to providing as many new jobs as international business last year, he said. International business grew by 315 jobs while construction grew by 253 jobs.

Breaking down facts and figures in the Senate yesterday, Sen. Tannock said the retail sector in 2004 performed ?better than expected?, despite the fact that Bermudians continue to purchase goods overseas.

Government will continue to support that sector, he said.

The presence of banks such as global giant HSBC on the Island are helping Bermuda to stay competitive by offering the international business sector services which other banks could not, he said.

However, while not disputing that ?Hamilton International? ? the international business sector ? is thriving, Sen. Richards said the closure of Trimingham?s indicates that ?Hamilton Local? is ?stumbling and gasping for breath?.

Government statistics showed the total retail sector had posted negative growth over two of the past four years, with the apparel sector posting negative growth for three of the past four years, he said.

The collapse of Trimingham?s, he hoped, would be the wake up call Government needs to provide relief for that sector.

Calling the PLP Government ?schizophrenic?, Sen. Richards also tackled the controversial Bank of Bermuda/HSBC sale and the new land policy preventing the sale of certain properties to non-Bermudians.

?The grand-daddy of PLP schizophrenia is their attitude towards selling previous Bermudian assets to foreigners,? he said.

Regarding the land policy, he said: ?If a foreigner set up a Bermuda trust which was effectively controlled by him, the house could be sold to that trust.

?How does the new policy stop that practise? The new policy bans the sale of property from Bermudians to foreigners. A Bermuda trust is not a foreigner. So the new policy has no effect on this transaction unless the Government amends legislation governing trusts. Where is this legislation??

As for education in Bermuda, Sen. Richards ? likening the Ministry to an army fighting a war against ignorance ? said too many top commanders are rewarded by a promotion to ?headquarters?, the Ministry itself, where they merely ?push paper?.

?No wonder we?re losing ground to the enemy. They should stay in the battlefield where they?re most needed.

?More authority needs to be devolved to school principals, the field commanders. If they?re well-trained they are in the best position to make the best decisions, not deferring matters to HQ for bureaucratic treatment.?