to rewrite rules on work permits, Progressive Labour Party Senators insisted yesterday.

And Sen. David Burch said that full consultation was taking place with business groups such as the Chamber of Commerce and the Bermuda International Business Association before any hard-and-fast regulations were brought forward.

But Opposition Senate leader Maxwell Burgess dismissed claims that -- because there was no outcry over plans to toughen up on work permits -- international business was not worried.

Sen. Burgess said: "It doesn't happen -- when you have companies out here with the threat of work permits over their head, it isn't going to happen.'' And he said a letter from an international business boss to The Royal Gazette warning that companies had already located staff elsewhere even if head offices remain on the Island proved fears over the future.

The row was sparked after Sen. Kim Swan said "something very alarming'' was taking place in the community view of expatriates.

But Sen. Burch stressed that the draft work permit regulations -- which includes a cut-off date for renewals in most cases -- were still under negotiation.

And he said: "There is no policy which has been decided -- but we needed to do something about this to protect the interests of Bermudians and proposed a new set of regulations.'' He added: "We accept unequivocally that expatriate workers in this country are needed, required, necessary, important, vital, any other adjective you want. No argument from us.'' But Sen. Burgess said: "There is more and more international business being shoved to other countries, even though the parent company remains in Bermuda.

"They shove jobs off to Ireland, Scotland or India -- as we speak somebody could be doing it.'' Sen. Burgess told the Government side: "Your own Budget acknowledges that spending is down in that area -- that's because they're not coming like they used to and they're not spending like they used to.

"There is business not coming to these shores because there is a perceived feeling that it isn't as easy to do business as it once was.'' And he claimed that polls showing the plummeting popularity rating of Premier Jennifer Smith was proof that things were not going well.

But Sen. Calvin Smith pointed out that the rating had fallen from more than 80 percent -- and challenged the Opposition to say why it had been so high in the first place.

He questioned why the Opposition insisted on painting the PLP as anti-offshore sector and criticised bids to get new hotel developments on the Island.

Sen. Smith said: "We're not doing this because we've got a vested interest in these businesses -- we doing it because we have a vested interest in the people of Bermuda. I think the people of Bermuda are aware that we're concerned whether or not they are working in the tourist industry.'' Earlier, Sen. Swan told Senators: "There is a great wall of divide as to how the expat community in Bermuda is viewed.

He insisted that, as a Bermudian he had " stood at the forefront of trying to Bermudianise our country'', but added that Bermuda had to work in harmony with its overseas residents.