Hayward (Ind) praised Dr. Saul for the format of the Budget statement, which he said used less paper.

But he quickly listed the "traditional areas of waste and fat'' he wanted to see Government cut.

Mr. Hayward said Bermuda needed to expand its notion of education.

He stressed education is "no longer learning how to take exams, but development of those skills we need as leaders''.

Pointing out areas of waste in the Works and Engineering Ministry, Mr. Hayward said Government lost about $13,000 in interest on shipping materials for the incinerator project before it was necessary.

"That can buy a lot of textbooks,'' he said.

Mr. Hayward also noted excavation at the incinerator site was carried out incorrectly and therefore had to be fixed.

"This means we had to spend extra money to accommodate some mistake due to incompetence,'' he said.

Money allocated for things such as tools was used to cover such mistakes, he also claimed, and no questions were asked.

Mr. Hayward said the hiring of consultants for that project on an open basis was another aspect of the Ministry's waste.

He said consultants are usually hired on a job-needed basis.

Government was spending three times as much as it should be spending on consultants, Mr. Hayward added.

Noting that the cost of the incinerator has jumped from an original estimate of $19 million to at least $31 million, Mr. Hayward said Government's mistakes were costing the community.

He said the project was delayed because Government tried to bypass the Development Applications Board.

"Then when they did go there, Government did not have all its ducks in a row,'' Mr. Hayward said. "So it cost this community hundreds of thousands of dollars, if not millions.'' He also accused Government of using taxpayers' money to pay delay penalties, and "giving away taxpayers' money'' or waiving delay penalties when others owe Bermuda.

Mr. Hayward said having Marine Police on duty from 9 a.m. to 5 p.m. during summer months was also a waste, when they were needed most between 5 and 8 p.m. when most people were on the water.

He also questioned the necessity of putting staff at the Customs Yacht Reporting Centre in St. George's during the daytime in the winter. He said they could probably be used more efficiently somewhere else.

Testing for radon gas in homes was also questioned by the environmentalist.

Mr. Hayward said the gas, which is commonly found in homes with basements in the US, was probably no serious threat to Bermuda where there are very few homes with basements or double-sealed windows.

Government should instead be testing for lead, which is still present in some gasoline and is known to accumulate in the nervous system -- particularly among young people, Mr. Hayward said.

He also criticised Government for allowing Bermuda to become overdeveloped.

And he said the construction industry, which had expanded for years, was the main culprit.

"Yet this area that is most likely to cause overdevelopment is the one that Government is suggesting should be shored up,'' Mr. Hayward said.

"Government uses that argument to justify its capital projects.'' He also accused the Government of becoming addicted to having lots of money.

If it controlled its addiction and cut spending, it could expect the community to follow.

Minister of Delegated Affairs the Hon. Sir John Sharpe , who also praised Dr.

Saul for the format of the Budget statement, called it a demonstration of "good housekeeping and good management''.

Sir John said: "That and the response to the Budget confirms the difference between the two parties.'' He said the Budget statement reviewed circumstances that enhanced Bermuda's reputation as "one of the best-managed countries in the world''.

It confirmed that "the Minister of Finance not only has a cool head, but a warm heart'', he added.

Noting the Budget had its "genesis'' in the 1989 election, Sir John said Government's wisdom in freezing expenditure in the public sector and raising revenue allowed Bermuda to cope in the recession predicted by the Premier and his party.

"That 1990 (Budget) was strong medicine, unpleasant medicine and we all swallowed it reluctantly,'' Sir John said, "but it worked.'' "It is this good housekeeping, good management and our fiscal prudence -- envied by most of the world, that has enabled our Government to borrow money for the new prison, Tyne's Bay incinerator, and eventually the new school system.'' Responding to claims that the completion of the prison is more important to Government than education restructuring, Sir John said: "The new prison was planned about ten years ago, long before we thought of an Education Planning Team, long before we thought about restructuring.

"It was done because present facilities for prison wardens are unsafe and unsatisfactory, and for the prisoners.'' Sir John said the prison had also created employment to "take up some of the slack in the construction industry''.

The incinerator, he continued, was being built because Pembroke Dump could not take anymore garbage and the area residents could not put up with it anymore.

"While Government has gone about its business of good housekeeping and good management in the public sector it has also entered into an impressive partnership with the private sector,'' Sir John added.

"We should be under no illusion that we can kick start our economy as the Opposition implies,'' he said. "The Minister has been hard-nosed about not borrowing.'' Sir John noted the public debt per person in the US was $16,000, in the Bahamas $3,500, but only $250 in Bermuda.

"That is why we can all say and associated ourselves with the fact that Bermuda has a good reputation which is the consequence of good management and a working partnership that Government has established with the private sector.'' Sir John said these factors will also help boost tourism and international business.

Referring to the PLP's response on education, he said: "Government and the Minister of Education are currently getting a lot of stick.

"One of the reasons is because the PLP and the general public have really not appreciated the complexity and enormity of retructuring our school system.

"Accepting the recommendations of the EPT is the easy part. But implementing them will not be that simple.

"We have to appreciate that the reform is long ranging and has to be done in an orderly fashion.

"It will take longer than we had hoped, and for that matter anticipated, but it is better that it be done right rather than faster.'' Sir John said he had "every confidence'' in Mr. Simons.

Referring to the PLP's statement that "now is not the time for cuts in the police force'', Sir John noted that the Opposition in its response to the 1991/92 Budget said the time had come for "greater reduction in Police numbers''.

He also noted that the PLP's response did not mention "their theme song of a progressive tax (or income tax)''.

"Because most countries that have it want to get rid of it,'' Sir John said.

He stressed the Budget was a "recovery budget''.

"But if it leads to re-election,'' Sir John said, "that will not be so bad for the Country.'' Mr. Eugene Blakeney (PLP) said he was sure that if an election was not pending, "the people of Bermuda would have had to once again walk up to Parliament in demonstration''.

Mr. Blakeney accused Sir John of trying to "play down the ability of people of Bermuda to read and understand things for themselves''.

He said: "There are two sectors in this community. But when we check the unemployment that is disproportionately going on in this country, we find it affects 99 percent of one particular race.

"Now they are the people who know exactly what's going on.

"These are those who have to beg for social assistance while there are people from abroad working here.

"So I'm sure at the election their personal experience will cause them to vote in the right manner and put in a PLP government that will take care of them.'' Mr. Blakeney also criticised those who felt there were to many civil servants making too much money.

He said most of the criticism of the cost and size of Government had come from Front Street merchants.

People generally did not want Government services cut, although they accepted this was inevitable during times of austerity.

Mr. Blakeney asked why the banks seemed to have emerged so unscathed from the recession.

"Who has more employees than the banks,'' he asked.

Mr. Blakeney also asked why Bermudians and not guest workers always bore the brunt of lay-offs.

There was a dire need for Bermudians to be retrained so they could get work.

Taking a shot at the Tourism Ministry, Mr. Blakeney asked why Bermuda had not negotiated better discounted fares.

He suggested the reason was because Bermuda was not independent.

Countries which were independent were better able to achieve a "reciprocal arrangement'' to get fare discounts.

Education Minister the Hon. Gerald Simons defended Government's education record.

He took pride in the enormous sums of money spent on scholarships, awards, and loans.

The mainstreaming of special needs students into schools was also a tremendous step.

Mr. Simons said he would prefer no cuts in education. It was important, however, to seek greater efficiency.

For example, two neighbouring classrooms with about 12 students could be combined, with a single teacher.

Teachers these days were trained to deal with 30 or so students, said Mr.

Simons.

"I don't know if we can remove 20 teachers. This exercise is continuing.'' Mr. Simons said it was wrong for the PLP to claim Government had allocated $14 million for neighbourhood schools.

"This is not true,'' he stated.

Mr. Simons also took a swipe at the National Liberal Party for saying the curriculum needed improving, rather than building new schools.

It was important both to do both -- and Government intended to, said Mr.

Simons.

Mr. Simons said there were several reasons why more space was needed for schooling.

One was the plan for an additional year in the middle schools to cater for special needs students.

Deputy Opposition leader Mr. Walter Roberts (PLP) attacked Mr. Simons over the delays to education reform, which had been in the pipeline for more than five years.

And he accused Government of getting its priorities wrong. It should have placed education before the new prison and incinerator.

Mr. Roberts was contemptuous about Government's boast the Budget did not bring in new taxes.

Taxes had been shooting up over the last four years, hurting the needy during the thick of a recession, he said.

Now with the Country emerging from a recession taxes were being frozen. It made no sense, he said.

Shadow Education Minister Ms Jennifer Smith (PLP) asked how Government reached the figure of $100 million for the price of its education reforms. No plans had been produced for the Middle Schools or Senior Secondary School.

Ms Smith went on to question the 8.5 percent Customs duty rate on pure and natural fibre mentioned in the Budget.

Wasn't this the same rate as before, and no improvement, she asked.

On the tax reduction for pleasure craft passengers, Ms Smith was not impressed either.

St George's would have been better served if the tax had been dropped, and replaced with a flat rate.

The town had borne the brunt of the tax, which was partly designed to stem drug activity.

The reduction was "too little, too late'', and it would take time for St.

George's to recover what was lost.

Shadow Health and Housing Minister Mr. Nelson Bascome described the Budget as a ploy to win the election.

"One hopes the electorate will not be so naive,'' he said.

Mr. Bascome went on to deplore the cuts in social programmes during a recession.

The community was suffering from high unemployment, rising crime, and difficulties in paying mortgages.

Now was the time to help restore the family unit, and family values, stressed Mr. Bascome.

He attacked the "minimal'' amount proposed for the Bermuda Hospitals Board.

And he described the case of a unemployed young woman who was turned away by the hospital because it did not have funds to treat her condition.

"We have sunk to a new low.'' Deputy speaker Mr. Ernest DeCouto was fulsome in his praise of the Budget.

It was not a "sticky hand Budget'' in which Government rifled the pockets of taxpayers, he said.

Health, Social Services and Housing Minister, Mr. Quinton Edness said: "The Minister of Finance has said it all. It is up to the Opposition to destroy and denigrate all that, but what they have said has been fruitless. "They have found it impossible so they decide to take a sideswipe with glossy propaganda.'' Mr. Edness chided his Opposition counterpart, Mr. Bascome for not bringing the plight of the young woman who could not get hospital treatment to his attention.

On the PLP Budget reply, Mr. Edness said: "I would like members of the public to take some time to apply a simple analysis to the PLP budget statement.

Every time you come across a statement when the PLP criticises the amount allocated to a particular activity, I would like the general public to count up what these changes would amount to.

"Instead of borrowing being an annual $14 million the public would find the annual amount would amount to $40 million to be paid by the tax payers. "The model being proposed is one where a person uses their Mastercard to pay their Visa account.'' Cuts had to come in certain areas to leave money for vital areas, like social assistance. He said: "It's a question of making these cuts and putting food on 1,000 people's tables and roofs over 800 family's heads or not having the cuts.'' Shadow Minister of Delegated Affairs, Mr. Stanley Morton (PLP) said: "The PLP are interested in people and are ready, willing and able to run this country.

The people of Bermuda are ready for a change from this present Government.'' Mr. Morton said he "guess-timated'' that there were 1,000 people unemployed in Bermuda at present and called for new schemes to encourage people to retrain.

He described the UBP plans as similar to a Trojan Horse. He said they would wait to be elected again and then unleash their real plans.

Mr. Morton questioned why Government bought products and services abroad which they could buy in Bermuda. He said: "It is time for the Government to set an example and start patronising local industry, or they will see hundreds and thousands of dollars go out of this country.'' Minister of Community Affairs and Culture, the Hon. Leonard Gibbons replied: "Today with the advent of fax, credit cards and fast courier services you can purchase certain things overseas and probably have them delivered as fast as you can anywhere in the Island.'' He said complaints about teaching were unfounded particularly in the music field. He said six teachers have been brought in and teach at 16 Government primary schools, a secondary school and a private school.

Shadow Minister of Community Affairs, Mr. Reginald Burrows (PLP) said: "Since this is a recovery budget and the loyal Opposition is the watchdog for the budget, I feel the Shadow Finance Minister has done a remarkable job to encourage debate on what would otherwise have been a dull subject.'' He slammed last year's murder at Dockyard and questioned how the killer had been allowed out of Casemates on a working party without psychiatric screening which would have shown him to be unstable.

He said: "We all realise the adverse effect that incidents like this can have on our tourism industry.

"They are fighting the same thing in Orlando, Florida, with crimes against tourists. Now the countries of origin of the victims are advising tourists to travel to certain destinations at their own risk.'' Minister of Works and Engineering the Hon. Clarence Terceira said growing confidence in the US could rub off on Bermuda and boost tourism.

Concerning calls by the Opposition for a stop to building works at the prison and the incinerator projects, the Minister said: "This is an extraordinary admission of ignorance. To have stopped at that time would have meant a depression we had never visited before.

"It has kept a lot of people working, put food on their tables for their families and allowed them to be educated,'' he said.

"As the building of the incinerator, the prison and the Ocean View Golf Course comes to an end, all the eggs will then be put into an education basket.'' Opposition Whip Mr. Stanley Lowe said that he believed a lot of good ideas had come out of the PLP.

Mr. Lowe said: "It has taken the Minister two years to realise that you do not increase taxes to get out of a recession.'' He asked for programmes to be set up to train Bermudians in computer programming and accounting, areas where, he said, there were few trained local people.

Shadow Tourism Minister Mr. David Allen said Government needed a "reality check.'' He said air arrivals had dropped by 20 percent since the early 1980s but Government intended to increase tourism taxes. He described it as "absolute nonsense''.

Mr. Allen said: "The Budget Statement said Bermuda had `managed comparatively well during the recession'. But you know very well that chamber maids, waiters, bar tenders and taxi drivers did not feel they were managing comparatively well.'' Mr. Allen described as "too little, too darned late'' $500,000 earmarked for promoting tourism in Europe.

He claimed it was not even a "drop in the bucket'', pledging a PLP Government would make a greater European investment.

Mr. Allen was equally contemptuous on Government's boast about not increasing taxes.

Over the years Government had bumped up taxes, pricing the Island out of the tourism market, he said.

The Premier's claim the Budget was part of a "trilogy'', starting with the 1990-91 one, was nonsense.

Instead, Government had lead Bermuda into an "economic triangle,'' he Mr.

Allen jeered.

Mr. Allen went on to accuse Government of shamelessly plagiarising PLP policies.

These included eliminating the cruise ship passenger arrival tax between November and March, and offering fuel rebates to hotels.

Finance Minister the Hon. David Saul mixed acid with wit.

He poured scorn on the Opposition's statement, claiming it showed they had no experience in putting together a Budget.

Dr. Saul then set out to systematically tear apart the PLP's reply.

The Opposition's claim the Budget was based on false economic premises -- over-pessimistic projections of tourism and international business performances -- was rubbish, he stated.

It was important when putting a Budget together, supporting revenue and expenditure estimates, to be conservative.

Dr. Saul also scoffed at PLP claims cuts would "exert a stranglehold on the economy''.

It was the opposite. Without cuts, Government would be forced to push up taxes or increase borrowing, both of which would choke the economy.

"Cuts are the best way of stimulating the economy,'' he said.

He also defended Government's proposal to allocate $100 million to education over the next five to seven years.

This reflected a solid commitment to the young of Bermuda, and it was important not to rush recklessly into the venture.

Dr. Saul ridiculed PLP's proposal to redirect the $1.4 million from the proposed Sinking Fund into education.

The money was not enough to build a school, or achieve much at all.

Instead, such a policy would amount to squandering money aimed at safeguarding the future.

"The Sinking Fund is necessary if we are going to invest in education in the future. It is one of the most sensible things in the Budget.'' Dr. Saul hit back at claims Government was more interested in building a new prison than in education.

The prison was an old commitment, which would be discharged at the end of the calendar year.

He went on to dismiss allegations of underfunding the Temporary Work Programme. Government's allocation reflected its belief job prospects would improve.

On the criticism of the proposed increase in the annual licence fee for trust companies from $1,000 to $10,000, Dr. Saul was also scornful.

He said Shadow Labour Minister Mrs. Lois Browne-Evans had once called for the fee to be $100,000.

Dr. Saul went on to defend the $500,000 allocation to promoting tourism in Europe.

This was a "special bonus'', in addition to other funds, he stressed.

Dr. Saul continued by attacking the PLP for misunderstanding his Bermuda Inc.

philosophy.

This did not mean he believed Bermuda should be run as a company.

It meant Bermuda had one commodity to sell -- service -- and everybody was involved in the selling.

Dr. Saul ended by urging potential voters to compare and contrast the Budget with the PLP's reply to it.

His told voters: "Look and read the two, and on the strength of this alone when you go into that voting booth to make your mark. Let us see where the chips fal.''