was designed to deal with tremendous expenses Bermuda will take on with the closing of the three bases.

And never before have "tax payers been called upon to fare expenses''.

Following the House of Assembly's debate on the Budget which ended on Wednesday the Senate met yesterday to hold their own debate on the Budget's increases and reductions.

Sen. Milligan-Whyte added that Finance Minister the Hon. David Saul alerted the community of an oncoming recession and last year the Minister said the economy was moving slowly and steadily out of the recession.

And now Bermuda is faced with an uncertain factor which has had a major impact on this year's Budget which was the closing of the three bases and especially the operation of the Airport.

"Government made sure there were sufficient jobs in Government and the private sector.

"And the Minister of Finance kept Bermuda on safe and secure footing,'' Sen.

Milligan-Whyte said.

She added that the Budget was designed to deal with tremendous expenses.

"Things have changed outside of Bermuda which impact on the base closure.

This is a challenge that we feel this Country must respond to. We have to look for fiscal creativity.'' Sen. Milligan-Whyte also said that Bermuda will be losing 56 million with the base closures. "However, it poses the opportunity to create new opportunities.'' She added that Bermuda has seen a continued revival of tourism, excellent growth in international business and recovery of the level of fixed capital formation.

"1994 was the best year since 1987 for tourism with the total visitor arrival being 589,855. And the amount of days that they stayed in Bermuda had also increased.

Sen. Milligan-Whyte also said that of that amount 30 percent of those people coming to Bermuda came in relation to international business.

She added that the total earnings from international businesses was $485 million and they spent $392 million in Bermuda.

"Banks also provide excellent services to international business and Bermuda is now becoming a sophisticated international financial centre.'' Sen.

Milligan-Whyte also said that the rate of employment has increased.

"What dominates this Budget should be that Bermuda is in the position to ensure the finance of the bases. Government assumes the responsibility that they have never had to assume before.

"The Budget has a minimal impact on the rate of inflation. And Government must be careful taxing companies because you don't want to kill the goose that lays the golden egg.'' She added: "This Budget is not designed to impact adversely on the international economy. It is designed to levy tax on those who can best pay.'' Sen. Milligan-Whyte also said that the increases were unavoidable as $3.3 million must be used to operate the Airport.

"This is a people's Budget that will deal with the needs and demands of our community.

"The Budget is fair and reasonable and it takes into account the substantial expense Bermuda will have to bear with the closing of the bases.'' However, Sen. Terry Lister (PLP) said that after reviewing the Budget he wrote an article for The Bermuda Times about how Government was finally taxing those who could afford it but now he asks "Did Dr. Saul get it completely wrong?'' "We have a series of taxes that are designed to unsettle the community. And the Government has chosen to ignore mandates that were given 18 months ago.'' Sen. Lister also said he was surprised that Government was patting itself on the back with the .99 percent of tourism air arrivals. "We can't even get up to one percent and we are down from last year.

He also wondered whether "we were starting to hurt ourselves with the type of taxation being put on international companies''.

Continued in Monday's newspaper.