House of Assembly after lively debate.

The bill was introduced by the Minister of the Environment, Planning and Natural Resources Irving Pearman who said the Act prohibited the importation of foreign milk -- aside from ultra-heat milk and sterilised milk.

Shadow Environment Minister Leon (Jimmy) Williams said that the Progressive Labour Party believed strongly in saving the local industry and he pointed to the fishing industry and said that something similar could happen to the dairy industry.

"If we do not protect our local industries then Bermuda is lost,'' he said.

"Bermudians want fresh milk even if it costs more than that from overseas.

"It would harm local industry if we lifted the milk embargo at this time.'' Mr. Williams agreed that there was a need to look very carefully at current embargoes but he added: "I would hate to see the day when we cannot go into a local market and buy fresh milk.'' The Shadow Environment Minister said Government must be careful to protect free enterprise and local business.

United Bermuda Party backbencher Trevor Moniz said that he had some concerns with the bill and he said that he had some expertise in the area of the milk industry because he had been instructed as a barrister to make submissions to the Dairy Industry Committee although this work was in the past.

However, House Speaker Ernest Decouto quickly rose to point out that Mr. Moniz had acted for persons involved in the industry as recently as May 14, 1997.

Consequently, the Speaker ruled -- citing rule 31(6) -- that Mr. Moniz could debate the bill but not vote.

Mr. Moniz said that he was "a bit confused'' that Environment Minister Irving Pearman had carried over the report entitled "An Analysis of the Bermuda Dairy Industry''. However, he went on to say that the present legislation grew out of a temporary measure done in 1964 which was extended each year thereafter.

Mr. Moniz said the source of his confusion related to the initial embargo which was placed on eggs and dairy products back in 1964 but the restriction on foreign eggs was dropped long ago and there was no embargo on fish.

He said there "was slim protection'' for fishermen, vegetable and egg farmers against foreign competition, so he could not see why the embargo on milk was still needed.

Over the last 30 years, he said, the population had increased yet the consumption of fresh milk had halved from 2.88 million quarts in 1960 to some 1.5 million quarts today.

Mr. Moniz said that Dunkley's Dairy got around the restrictions by importing powdered milk from overseas and reconstituting it because there was not enough local fresh milk to meet the demand.

Mr. Moniz said it was time for Government to ask whether the embargo was producing benefits for the consumer who was "paying an exorbitant price for fresh milk.'' Importation of Milk (Prohibition) Act passes Moreover, he said the customer was deriving little benefit from the high prices because there was not enough fresh milk to meet present demand.

Former Progressive Labour Party leader Lois Browne Evans , meanwhile, said that the PLP has been consistent in its support of local business and small hotels because the party believes that persons should be protected in the workplace.

Works and Engineering Minister CV (Jim) Woolridge said that those persons who wish to live off the soil should be encouraged to do so.

And he pointed out that anyone could go into business and do what Dunkley's Dairy is doing.

PLP MP Ottiwell Simmons said that the bill raised important questions of principle.

He said that the House had one member who had a direct interest in the outcome of the bill.

Furthermore he said that instead of the free enterprise model that is usually followed, the bill amounted to protection for an interested party.

UBP backbencher Maxwell Burgess said that the bill was intended to protect the job of every person in the dairy industry which was an industry worth preserving.

"Milk is expensive,'' he said. "But it is not so bad that we should throw out the baby with the bath water.'' And Shadow Community and Cultural Affairs Minister Paula Cox said that it was "laudable and lofty'' for customers' interests to be secondary to that of the dairy industry.

But such protection should extend to other small businesses who should be given the technical support.

Member in charge of the bill, Mr. Pearman, said he was happy with the PLP's response because they have looked at it from the wider view.

And he said Government had made the commitment to study the industry last May before any decision would be taken on the embargo. He said he could remember a time when there was competition in the dairy industry but the other business was unable to make it.

"There is no monopoly in the dairy industry,'' he quipped. "There is just no competition.''