Bermuda was challenged yesterday to give the Somerset business community a shot in the arm.

Opposition MP Mr. Walter Lister threw down the gauntlet after claiming Somerset village was losing out to Dockyard in the fight for visitors.

And he put forward a solution to Government: Mount a joint advertising campaign for the village and Dockyard's Clocktower.

"We ought to sell them as a joint package for tourists and locals,'' he told the House of Assembly.

Mr. Lister said people in the West End were happy with the development of Dockyard, and the way jobs had been created there.

But with the advent of the West End Development Corporation and the Clocktower tourists were giving Somerset village a miss.

This was a shame since the village was "quaint'' and very attractive, declared Mr. Lister, the Opposition's Special Assistant for Management and Technology.

Mr. Lister was speaking on the resumption of the debate on the report on the Premier's Commission on Competitiveness.

Turning to the stock exchange, he urged Bermudians to take advantage of this investment opportunity.

In the past, Bermudians had been able to buy two homes -- the second one being rented out to people, and used as a form of pension scheme.

Times had changed, however, and the stock market offered an "alternative and more viable'' investment, said Mr. Lister.

"Over the years stocks have done fairly well.'' But Mr. Lister warned of the need to be prudent and wise in investing.

"Money is like quicksand and you have to be very careful with it. It gets through your fingers very quickly.'' Mr. Lister then touched on protectionism, stating Bermuda needed to have restrictions because of its size.

The Land Sales Act and 40:60 companies' rule, for instance, were very important.

It was essential to ensure homes at the lower price range were available for Bermudians, not foreigners.

Mr. Lister went on to applaud moves to help small businesses compete.

And on the crime issue, Mr. Lister pointed an accusing finger at TV.

Violent scenes on television had a insidious influence, and some actions in the community reflected them.

The Broadcasting Commission should scrutinise what was aired on television, said Mr. Lister.

Mr. Lister continued by questioning the controversial appointment of The Royal Gazette's former News Editor Mr. Don Grearson to a part-time position with Government Information Services.

Mr. Grearson, a Canadian who is married to a Bermudian, has been assigned to the Bases Transition Team, which is managing the Island's takeover of the United States military bases.

If the job of public relations officer was not advertised how did Mr. Grearson get it, asked Mr. Lister.

"Or was he hand-picked by the committee?'' Mr. Lister said there were a number of Bermudians who would have made a very valuable contribution in such a position, had they been approached.

"I do feel Bermudians should have been given the opportunity to do this job.'' Mr. Lister added he believed Mr. Grearson would not have left his secure post at The Royal Gazette unless he had been given some promise of further employment once his initial contract with the Bases Transition Team was over.

In 18 months or so would Mr. Grearson be automatically "slid'' into the post again quietly, Mr. Lister wondered.

Mr. Lister asked whether the job was so significant it could not have been handled by Bermudians.

"Every time Government has an opportunity to Ber mudianise it doesn't. This was an ideal opportunity for them to Bermudianise.'' Mr. Lister said Government always talked about glass ceilings, and the Bases' post was an example of how it was failing Bermudians.

He added Mr. Grearson was also said to be writing a book on the history of Bermuda.

How was it that a foreigner was writing on Bermuda, Mr. Lister wondered.

The English, for instance, did not ask Bermudians to write history books on England.

"Why is this Country asking a foreign national to sit down and write a history on Bermuda? It only demonstrates how this Government is full of words.'' Southampton West MP Mr. David Dodwell (UBP) opened his marathon speech by declaring the Commission report would not be left to gather dust.

The lengthy discussion by MPs of the report indicated just how seriously it was being taken.

And Mr. Dodwell stressed the report was not a Government document.

"Over 50 percent of the recommendations have been implemented.'' Mr. Dodwell, who is a hotelier, described tourism as the life-blood of Bermuda.

But he said the Country had to recognise times were changing.

"We are not going to go back to the good old days,'' he said.

Although technically Bermuda was out of the recession, and the effects of it would remain.

"We are going to have to retool, restructure and change.'' Mr. Dodwell produced figures showing how hotel occupancy levels had dropped from the high point of the 1980s.

In 1991 the level was just 55 percent, and this year the figure was expected to be 62 percent.

Mr. Dodwell said cruise ship passenger numbers had risen.

But it was important to realise these people did not spend as much as air passengers.

Bermuda had to do a lot more to get air arrivals up, and one way was for the public and private sectors to work together and "reinvent'' tourism.

Change was a tough word, but the Island had to appreciate it was now competing against the world.

An emotional investment in tourism was as important as a financial one, stressed Mr. Dodwell.

Mr. Dodwell spoke of areas that needed looking at, beginning with entertainment for visitors.

He said holidaymakers were looking for a different experience when they came here.

A survey among visitors showed entertainment -- or the lack of it -- was something that needed to be addressed.

Dodwell says visitors are being sold memories From Page 4 On transportation, Mr. Dodwell said buses were being used more than taxis.

Ways needed to be found to get visitors back into taxis, such as mini tours of the Island, said Mr. Dodwell.

On hotels, Mr. Dodwell said it was important to examine why such chains as the Ritz Carlton and Four Seasons did not come here.

Bermudians had to remember that all they sold to visitors were memories -- memories of a holiday on the Island.

The Island's tourism trade lived or died by such memories.

"We have got to send visitors home thinking they have had value for money,'' said Mr. Dodwell.

Mr. Dodwell had one idea for boosting the industry -- diverting money from marketing into tourism appreciation and education.

He suggested $1 million from the $28 million tourism Budget could be rechannelled in this direction.

On the report's recommendation for a quango, Mr. Dodwell said this was an attempt to get more people involved in tourism.

He took issue with the Progressive Labour Party which argued a quango would not be accountable to Parliament.

It would be accountable, and the success of quangos was demonstrated by Wedco, he said.

Mr. Dodwell said the report set out a five-year or ten-year strategy for the future.

And the cost to Government would not be high, he stressed.

Turning briefly to international business, Mr. Dodwell said there was a synergy between this economic pillar and tourism.

The two worked in harmony and were dependent on each other.

Shadow Health Minister Mr. Nelson Bascome spoke of a serious mistake which had been committed in opening up career options to schoolchildren.

He said females had been pushed into international business, while males were drawn into tourism.

As a result, many males found themselves in seasonal jobs and out of work from time to time.

The majority of Bermudians in the flourishing international business sector, however, were females.

Bermudian youngsters should have been properly educated about their career choices, said Mr. Bascome.

Mr. Bascome pointed out the report had been compiled during the height of the recession.

He wondered why the Finance Minister, who had given a glowing account of the present economy, had not revealed how he would pump resources into the report's recommendations.

Mr. Bascome continued by saying the report's recommendations were doomed to failure unless blacks and whites led their lives on a level playing field.

It was crucial to give individuals the ingredients to be part of the economy.

Mr. Bascome touched on aqua-culture, and suggested former fishermen who had lost their livelihood following the pot ban could help out in this area.

They could help set up a whole system of aqua-culture, he said.

But Mr. Bascome also mentioned Bermuda faced a serious problem of ocean pollution which had to be addressed.

While Government had blamed over-fishing for the reduction in fish stocks, it had done nothing to tackle pollution.

Mr. Bascome went on to highlight the problems faced by Bermuda's physically challenged.

Bermuda had to be more accessible to the physically challenged.

And Mr. Bascome hoped legislation would be brought in to do this.

Mr. Bascome then switched to the "small print'' in the report, saying the appendices contained clues as to why Bermuda faced the problems it did.

Yet curiously the report did not give much prominence to them.

Mr. Bascome hoped ideas submitted by individuals to the Commission would not be lost.

One subject contained in the small print was "prisoners' dilemma'' which related to the criminal justice system.

"If we are going to have justice, we have to pursue it equally for all.'' Mr. Bascome said there was not a proper rehabilitation system in the prisons.

And another problem was that prisoners often had extra charges hanging over them once they had completed their sentence for one offence.

This was a spur to violence and needed to be looked at, said Mr. Bascome.

Government whip Mr. John Barritt countered Mr. Bascome's suggestion the 417-page report was replete with fine print.

"It is replete with print, not fine print.'' Mr. Barritt said Government faced a delicate balancing act in setting Bermuda on the right economic path.

On the one hand it had to ensure Bermuda was for Bermudians, and that locals were masters of the Island's destiny.

On the other hand, Bermuda had to remain competitive and attractive to the world.

Mr. Barritt spoke of the rapid global changes Bermuda was being swept up in with the computer age.

"Even I feel like a dinosaur when I go to work and look at the computers, faxes and e-mails.'' Mr. Barritt said the computer age had ushered in the collapse of "natural boundaries''.

Soon people outside Bermuda will only be interested in area codes and pin numbers.

"That is the world we are facing. These are the demands we are facing.'' Mr. Barritt said a computer age meant people were not able to make an easy transition between jobs as had been the case.

In the past, people involved in agriculture could make the leap to industry, for instance.

Mr. Barritt, however, went on to highlight the key ingredient underpinning Bermuda's success: People.

People were at the base of everything the Island tried to achieve.

"We can't go wrong if we concentrate on people.'' Mr. Barritt continued by sounding a warning.

An Island of only 20 square miles had limited resources.

"We cannot be all things to all people. Nor can we chase the flavour of the month whatever that may be.'' Shadow Minister of Human Affairs and Information Ms Renee Webb said the Commission on Competitiveness was a comprehensive document with varying viewpoints depending on who was being spoken to.

Ms Webb said Bermuda's history of protectionism has safeguarded certain groups of people.

They were called the "forty thieves'' she pointed out, but there is also a perception they have died out and have been replaced by another group.

Now party affiliation has become one avenue through which the beneficial aspects of protectionism is being maintained.

Ms Webb said the banks have been the largest benefactors of protectionism and they have opposed any change to this pattern.

Even the idea of allowing trust companies to come to Bermuda was railed against by the banks, she said, although after they were permitted, the banks profits exceeded the previous year.

Webb says time to look into first-class banking From Page 8 Ms Webb said with the pending closure of the bases, Bermuda should be looking to significantly expand the opportunities for first class high quality banking.

Meantime, Ms Webb said no one interviewed for the report supported the maintenance of exchange controls and it was important to determine who had benefitted from the old system.

While the restrictions were in place, Bermudians had limited investment opportunities overseas and locally, so banks were in effect able to charge higher interest rates through exorbitant fees.

However, even though exchange controls are now lifted, ordinary Bermudians were unable "to shop around'' for the best rates.

Attempts should be made to "beef up'' the Monetary Authority if there is any designs on making it into a central bank.

Regarding the question of foreign ownership of homes, Ms Webb said the report's authors suggested that housing prices were forced up because non-Bermudians were not allowed to buy.

Instead the report said consideration should be given to allowing non- Bermudians to have 20-year leases.

Ms Webb said the PLP did have a problem with this because it could lead to false expectations from non-Bermudians who assume that because they have a 20-year lease, they could then stay for 20 years.

Allowing non-Bermudians unlimited access to the housing market would be unfair she said because most of the non-Bermudians who wish to buy homes are better able to gain financing because they often have more income.

On the question of race relations, Ms Webb said the Commission had betrayed its bias when it reported that the people it surveyed saw no problem with relations between blacks and whites in Bermuda.

"Government, and various racial groups recognise there is a problem. We have legislation and pending legislation. Who did these people talk to was the cross section broad enough?'' She said the committee was largely white and male with low numbers of both blacks and women.

Although it was true that business leaders were primarily white and male, Ms Webb said, Bermuda's population was more than 70 percent black and that constituency should be better represented.

Furthermore, Ms Webb said the report's authors were wrong to suggest that Bermuda's racial problems were caused by the island's proximity to the United States.

Mr. Tim Smith (UBP) said he was "pleasantly frustrated'' the report was so large and was like "reading a good book.'' Moreover, the report underscored Government's commitment to be introspective and prepared to ask what Bermudians need to make Bermuda a better place.

To the charge that the report was written by "UBP hacks and friends of the UBP,'' Mr. Smith said what was more important was not their party affiliation but their willingness to make the Government better.

Mr. Smith further charged the PLP had been selective in its choice of which parts of the report they highlighted.

He said that the commissioners made every attempt to talk to as wide a group as they could "but all attempts failed.'' Mr. Smith said there were two central themes in the report; wealth creation and innovation.

Wealth creation he said involved making the pie bigger, and not dividing it into smaller pieces.

This will be done by expanding the economy which will make jobs available while he defined innov tion as the "successful exploitation of new ideas while offering no judgment on those ideas.'' Meanwhile, Mr. Stanley Morton PLP said the fundamental issue with Bermuda is that "all is not well with the economy.'' "The Premier did not ask for the report because all was well,'' he said.

"This indicates that there are problems in the economy like racism, injustice and tourism.'' Mr. Morton said it was time for Government "to not just look down, instead it must look up and face some of the problems that we are facing.'' He said protectionism was good but given Bermuda's population, history and resources, the "playing field was not level.'' Mr. Morton said workers were often blamed for making the costs for international business so high when in fact it was such things as lawyer fees, high electricity bills and telecommunications that drove prices up.

Mr. Trevor Moniz (UBP) said both small and large businesses suffered during the recession with both the hotels and construction hit hard.

He cautioned that it was impossible to envision a time when Bermudianisation was total, although he said the best that could be hoped for was qualified Bermudians able to find jobs.

Mr. Moniz said Bermudians were too quick to reject new ideas.

Among ones that should be considered were "tasteful'' advertising on the sides of Manhattan buses, and a national lottery.

While his initial reaction to casino gambling in Bermuda was negative, "I'm prepared to study it,'' he said. "We have a duty to look at these things closely, rather than dismissing them out of hand.'' He was not saying Government had too many employees, but felt streamlining of computer and other operations had to be looked at. Various courts "scattered about Hamilton'' also hurt efficiency, he said.

Mr. Moniz said everyone agreed that wealth was not equally shared in Bermuda.

"I think what people are concerned about is not so much race, per se, as economic opportunity.'' But he also said race had "real ramifications'' on equal opportunity. Mr.

Reginald Burrows said tourism was the area that had lost its competitiveness.

Consider the number of hotels and small properties that had closed and "the declining rate of tourism,'' he said.

One wondered if the Tourism Department was throwing "good money after bad,'' Mr. Burrows said. Bermuda spent more money per capita per visitor than any country except Canada and Mexico, he said.

And there was the "catch 22'' of the Tourism Minister saying hotels had to upgrade to attract visitors while hoteliers said they would not upgrade until tourism improved.

A safe environment was needed. "No matter how hard we try to be competitive in other areas, (crime) is going to have a tremendous effect on our success,'' Mr. Burrows said.

He opposed casino gambling for Bermuda, and noted that casinos in many Caribbean countries sat empty much of the time. "There aren't even that many Bermudians there,'' he said.

But Bermuda needed another golf course. Golf visitors spent money, but a lack of tee times prevented many large golf groups from coming to Bermuda.

Shadow Tourism Minister Mr. Dennis Lister said competitiveness of the taxi industry was the main Transport issue "screaming for attention.'' But he criticised Transport Minister the Hon. Maxwell Burgess for not mentioning transportation during his speech in the debate. Mr. Burgess mentioned "not even a single word'' about Transport, although there were 27 Transport recommendations in the Commission on Competitiveness report.

Still, Mr. Lister said he was not surprised, since Mr. Burgess did not even speak during the Throne Speech debate.

Instead of behaving like "a backbencher,'' Mr. Burgess "must act like the Minister,'' Mr. Lister said. "He must come to this House and be prepared to address the issues as they relate to his Ministry,'' Mr. Lister said. Some Transport measures were being taken, like issuance of licences for longer periods, and less frequent inspections for taxi drivers, but they were like "giving candy to a baby to keep it quiet.'' The "real issues'' in the taxi industry were introduction of limousines, the long period since a rate increase, and a new structure operating in the industry called GTOs.

Where did the Minister stand on these issues and others like fuel rebates? Premier the Hon. Sir John Swan said the report addressed many issues that would "have a profound effect on Bermuda.'' A new world order was evolving, and it was in its early stages, Sir John said.

"The Commission on Competitiveness is about how do we bring industry to Bermuda and how do we protect what we have and how do we earn the foreign exchange that allows us to do what we do,'' the Premier said.

As the Country moved in a direction of change, "we've got to embrace our people,'' he said.

Bermuda had a unique opportunity, but it could not afford to miss it.

When Ritz Carlton wanted to build a hotel on the South Shore, the opportunity was lost because some Bermudians felt it should be "our way or no way.'' Now, they would be glad to have the hotel "any way.'' Bermudians had to have confidence in the Country, because who would invest in a company if its members did not believe in it.

If it took MPs going into the schools, young people had to be convinced that the tourist business was a good business.

Around the world, more and more hubs like the Cayman Islands and the Channel Islands were doing what Bermuda was doing. And Bermudians had to feel good about Bermuda -- like they used to even when the Island had apartheid -- for visitors to feel good. Tourism would be the largest employer of Bermudians for a long time.

And it would not help just to "dump foreign workers overboard'' because foreign workers created jobs for Bermudians, Sir John said.

"Any new businesses coming from outside and bringing new business into Bermuda, they're going to be white, they're not likely going to be black,'' the Premier said.

Bermudian businesses had to have equality in the workplace and set examples for these companies, he said.

International business had done "extraordinary things for this Country,'' and Bermuda could not "treat it with contempt.'' People of both races in Bermuda did "get on well'' years ago, Sir John said.

Now they had to "accept equality as well'' and he felt Bermudians were on "the threshold'' of doing that.

Williams urges cultural tourism From Page 9 Leon (Jimmy) Williams (PLP) urged Government to get the department of Cultural Affairs more involved in Tourism and that Bermuda's rich history and culture could be dispensed through seminars so that all those involved in the tourist trade could be taught about their country.

He said that small businesses were becoming an "endangered species'' especially if they were owned by black Bermudians by Government has turned a blind eye to the problem.

Shadow Education Minister Ms Jennifer Smith criticised Government MPs for being tongue-tied in the debate.

"Once again we have Opposition members succeeding each other.'' Ms Smith said Bermuda needed to ensure her young people were competitive and prepared to meet the challenges of the future.

This was essential if the Island was to remain competitive.

Why was it, Ms Smith asked, that when a child did well educators claimed the credit, but when he did badly it was the child who was at fault.

Ms Smith said 96 young people had been rejected by Bermuda College this year.

This was not because of the exceptionally high entry requirements.

The reason was that young people did not reach the minimum standards in English, reading and maths.

This was an indictment on Government which had to take the blame, said Ms Smith.

Teachers were not held in high esteem -- and those like Mr. Warren Jones were denied opportunities.

"Young people look at actions not words. We are not providing the examples for them.'' Ms Smith asked: How do we create a workforce in Bermuda which is competitive? One way was to provide schools with additional resources, and it was also important to deal with stress among students.

Stressed-out students sometimes resorted to violence since this was the only way they knew how to express themselves, said Ms Smith.

Society should not condemn them or remove them from schools.

Instead, schools should provide experts who could offer social and psychological help.

Ms Smith added education must also be made relevant to Bermuda.

Students should be told at an early stage what qualifications were necessary for jobs.

There were instances where foreigners who do not have qualifications get jobs, and have to be trained by Bermudians.

"I don't think it is an unrealistic expectation to expect to get a job in your own country. Let them know what the job requirements are.'' Ms Smith said unfortunately many businesses were reluctant to spell out job requirements or they changed such requirements depending on whom they wanted to hire.

If that was not true there would not be any discussion on racism or glass ceilings.

Ms Smith went on to applaud a recommendation to set up a Bermuda College dormitory building for foreign students.

It was a good move to get people to study here, and provide them with somewhere to live.

On the US Base lands, Ms Smith welcomed the suggestion of a small university there.

The idea of the Bermuda College hooking up with some foreign university to provide a facility at the Base should be explored.

And Ms Smith wondered whether Government would be following up on this suggestion, along with other recommendations in the report.

Ms Smith continued by bemoaning the closure of Stonington units at secondary schools -- Warwick and St. George's.

These units went into the schools and introduced students to tourism. They helped generate a lot of enthusiasm about a career in this industry.

A decline in interest in tourism could be linked to the closure of these units, said Ms Smith.

On a concluding note, Ms Smith sent out a plea to companies to link up with public schools in encouraging interest in business.

Opposition leader Mr. Frederick Wade praised his colleagues for their excellent presentation.

But he slammed his political opponents for not coming to the House with their minds made up on the report.

Mixed signals were being sent from the Government benches.

Could it be that Government had a secret report and was carrying out its recommendations on the quiet? It was essential for leadership to be provided by Government.

Such lack of leadership and organisation were demonstrated by the way attempts by the Opposition to plan the debate were unsuccessful.

Such behaviour led to the insecurity and uncertainty felt by many Bermudians, said Mr. Wade.

Mr. Wade went on to voice concern at rising mortgage rates, saying Bermudians could be hit in the pocket.

It was important for Government to protect Bermudian mortgage holders.

Health Minister the Hon. Quinton Edness attacked Mr. Wade for making a speech more suited to the motion to adjourn.

He said Mr. Wade had not referred at all to the Commission on Competitiveness report.

Mr. Edness pointed out that the Premier, in ordering the report, had shown leadership which involved listening "and being quiet sometimes.'' Turning to tourism, Mr. Edness said Bermuda had some excellent hotels and small properties like the Waterloo House, The Reefs, Newstead, Horizons, Coral Beach and Lantana.

But Bermuda has to adjust continually to prepare for the new challenges ahead.

Mr. Edness chided PLP leader Mr. Frederick Wade for his statement that young people who sell drugs saw themselves as no different from the Gosling brothers.

"It is comments like that,'' he said, "which give comfort to criminal minds who chose to get involved in drugs because of greed.