Jennifer Smith told MPs yesterday.

Ms Smith -- who speaks on education in the Lower House -- said Government scholarships were introduced at a time when there was little assistance for deserving students outside their families.

But she added the scholarships had not been increased since 1996 and needed to go up to reflect increasing costs.

Ms Smith said: "This takes account of the general increase in the cost of tertiary education and it's to ensure that the value of the award begins to compare with the cost of tuition today.'' Shadow Education Minister Tim Smith said he supported the increase which will see grants go up to $15,000 a year from $12,500 a year.

The Act also amends "the maximum account of the two scholarships which the Minister is empowered to increase from $15,000 to $17,000 a year''.

And it also contains a section forbidding any one individual from applying for, or being considered for, more than one Government scholarship.

Mr. Smith said: "It would be wrong for anyone to criticise these particular awards or increases.'' But he said that Government had "not gone far enough in this particular area''.

Mr. Smith pointed out that the current Budget did not show an increase in cash for scholarships with the extra cash voted yesterday requiring an additional $20,000 on top of the $300,000 already allocated.

He said: "It's clumsy not to have the appropriate funding in this year's Budget. It is now the end of May. Applications had to be in on April 15 and candidates didn't know if they were applying for $12,500 or $15,000.'' And he called on Government not only to increase grants, but improve the awards process.

He said students studying in the UK and Europe were disadvantaged by the April 15 deadline, while students not being told if they have been successful until August could cause problems in selecting a university.

Mr. Smith added: "The provision that a student can't apply a second time may limit how far and how high they go with obtaining qualifications.'' Former head teacher and PLP backbencher Dale Butler said he was "pleased'' to see the amendments.

And he added that the Bermuda Government scholarships had traditionally been seen as "number one'' in terms of academic achievement.

But Shadow Health and Social Services Minister Kim Young said more needed to be done for post-graduate students -- especially as a first degree was increasingly regarded as a starting point for further academic honours.

Opposition whip Cole Simons said there was nothing in Government's manifesto or 500 day report on scholarships.

He said former Education Minister Tim Smith introduced Bermuda College scholarships which the PLP tried to scrap but reinstated them following a public outcry.

He suggested Government should introduce exchanges with other countries such as Switzerland to swap ideas and knowledge.

Mr. Simons said continuing education for adults was being ignored, yet it was essential for people to keep on learning to update skills.

"This Government has been derelict in its duty by doing nothing to assist people pursuing adult education,'' he said.

"If we reduce the number of large cars, we could provide 65 students with a four year undergraduate education. And ferries are far more important to this Government than the academic achievement of our young people.'' Environment Minister Arthur Hodgson read from the PLP's manifesto which made specific reference to scholarships.

He said Government Technical Scholarships were introduced in 1908 for black students following protests after a brilliantly talented black student was turned down for a scholarship through discrimination.

It was not until 1958 that separate black and white scholarships were abolished.

Shadow Tourism Minister David Dodwell asked why the additional money for these scholarships was not included in the budget two months ago.

And he asked what happened to a pre-election suggestion by the UBP of a scholarship for students at CedarBridge and Berkeley Institute who had a B grade average, 90 percent attendance and who were drug free.

The new PLP Education Ministry rejected it as an "election ploy'' but a month later accepted the idea, he said.

This time, however, they dropped the drug-free requirement saying it was "intrusive'' said Mr. Dodwell. "Is the PLP soft on drugs? We hear the answer coming forward in these little slips.'' Premier Jennifer Smith said Mr. Dodwell was imputing improper motives.

Mr. Dodwell said there had been a "hue and cry'' from parents whose children didn't receive scholarships and that Government had promised an investigation into it.

"Since then, the silence has been deafening. What happened to the investigation?'' he said.

Home Affairs Minister Paula Cox said scholarships were important to enable people to improve themselves and get on in life.

She said people who questioned immigration decisions should ask themselves why non-Bermudians were getting jobs.

Shadow Finance Minister Grant Gibbons, said it was "astonishing'' that the grants would not come into affect until Autumn 2001.

The Premier, in response to Mr. Dodwell's question about what happened to the UBP scholarship suggestion and subsequent inquiry, said: "What happened was they lost on November 9''.

She said Mr. Dodwell had an erroneous view of procedures. The resolutions would need to be negatived and then Gazetted.

The scholarship regulations were to clarify the terms and conditions of those receiving the scholarships.

Government recognised the most popular country of choice for Bermudian students was now the US followed by Canada and the regulations recognised the increasing use of the international baccalaureate.

Premier Jennifer Smith: "This takes account of the general increase in the cost of tertiary education and it's to ensure that the value of the award begins to compare with the cost of tuition today.'' AWARDS AWD