The Finance Minister defended the profits pulled in by the banks during the recession.

The Hon. David Saul said the Country would face disaster if the banks performed poorly.

But he said Government's philosophy was to help those suffering in the recession, and tax those doing well.

"We are doing our darndest to pluck the goose that lays the golden egg -- but not so it catches pneumonia and dies.'' He said a new bank licence fee cost $500,000 per year, compared to $25,000 five years ago.

And he underlined Government help for the needy, such as social and hospital assistance.

Dr. Saul was answering concern from National Liberal Party Mr. Gilbert Darrell during the Budget debate on the Finance Ministry which began on Friday and continues today.

MPs went into committee to discuss the ministry's ten heads, starting with Ministry of Finance HQ.

Mr. Darrell said it was important, when discussing fiscal policy, to talk about people, not just Government.

He said while money for blue-collar workers had gone down, that for white-collar workers had risen.

The disparity needed to be eliminated, he added.

Mr. Darrell went on to claim some people and businesses, as well as banks, had done much better in the recession than others.

And he stated Government had reduced manpower by 127 people, but wondered who bore the brunt of the cuts.

Dr. Saul , however, said Government only reduced staff when necessary, and when services were not affected.

Answering points raised by Shadow Finance Minister Mr. Eugene Cox , Dr. Saul pointed out Government produced an annual report, akin to a firm's one for its shareholders.

On the need to keep stationery costs to a minimum, he told MPs they could be struck off the list if they considered they were receiving superfluous Government information.

Moving to the second head, Accountant General, Dr. Saul underlined how the department had been Bermudianised.

He also paid tribute to the departing Accountant General Mr. Jim Hannam.

"He has done a phenomenally good job,'' declared Dr. Saul, pointing out how the department had been computerised.

The hunt was on for a Bermudian to replace Mr. Hannam, stressed Dr. Saul.

Dr. Saul said revenue from the Accountant General's department was estimated to be $59,756,000.

The recently introduced foreign currency purchase tax -- amounting to a quarter of one percent -- was expected to pull in $4 million.

Mr. Cox and Mr. Darrell both questioned the liquor licence duties, expected to raise $450,000, especially with concern over alcohol use.

Mr. Darrell asked what the objection was to taxing warehouses as part of the duties.

He also criticised the foreign currency purchase tax, describing it as a mistake which people had not forgotten.

Mr. Walter Lister (PLP), meanwhile, focussed on land tax exemptions for senior citizens.

Dr. Saul said any pensioner in difficulty with paying land tax should approach the Accountant General, who had several options.

One was to arrange for the tax to be paid in instalments; or to defer it for the next generation to pay; or to waive it.

On liquor licence duty, he said there was always consultation with the hotels.

"It is not the use of alcohol that is a problem, but the abuse of it,'' said Dr. Saul, a teetotaller.

MINISTRY OF FINANCE 1993 994 ESTIMATES Ministry responsibility: "To supervise the economy of Bermuda generally and to provide overall financial management and control of all government activities.'' Budget estimate $41,502,000 (last year $39,699,000) Budget allocation Ministry of Finance HQ $884,000 Accountant General $19,615,000 Customs $6,572,000 Post Office $7,990,000 Statistics $932,000 Social Insurance $907,000 Office of the tax commissioner $729,000 Registrar of companies $1,251,000 Rent commissioner $174,000 Computer systems and services $2,448,000.