Opposition claims of trouble on the economic horizon were yesterday rubbished by Development and Opportunity Minister Terry Lister. And he questioned why -- if doom and gloom pervaded all sectors of the business world -- that last year logged the single biggest annual increase in jobs of that entire decade.

Mr. Lister said: "The UBP said that under the PLP international companies would go away -- but the total number of international companies is up.'' And he slammed warnings over a slow-down in growth in the Bermuda economy -- citing US bids to get their economic growth to ease off to avoid overheating.

Mr. Lister added that -- although inflation had risen by nearly 1 percent last year -- that could be mostly blamed on worldwide increases in fuel costs and that the Bermuda rate remained low by international standards.

He was speaking as the House of Assembly got to grips with the annual Budget debate yesterday.

And Mr. Lister defended Government's decision to spend a "record-breaking'' $90 million-plus sum on new building projects, which includes a start on turning the Berkeley Insitute into the new senior secondary school. Mr. Lister said: "These items will develop our people, develop our country and create the Bermudians we need for the new economies.'' And he poured cold water on Opposition claims that increased borrowing could be a problem -- pointing out that the US, held up as an example, was the biggest debtor in the world.

Mr. Lister -- responsible for the Commission for Unity and Racial Equality -- added that increasing its role, including monitoring of the racial makeup in workplaces, was good for Bermuda and business.

But Opposition leader Pamela Gordon said: "The people of Bermuda were told that taxes did not need to be raised.'' But she added -- only months after the last Budget -- Land Tax went up by a massive 25 percent all round. And she insisted that continued growth in the economy -- contrary to Mr. Lister's position -- was vital.

Ms Gordon said: "It's through growth in the economy that additional income can accrue to Government without significant increases in taxes.'' And she quoted PLP previous PLP policy statements which said that growth in the economy would generate millions in extra income to help fund social programmes and other initiatives.

HOUSE OF ASSEMBLY HOA