A bill setting up a company to manage the Base lands was finally approved by MPs yesterday.

The passing of The Base Lands Development Act 1996 will send a wave of relief through developers.

Several had voiced alarm after debate on the bill was halted on Saturday morning by Opposition MPs and five Government rebels.

They feared the hold-up could damage international confidence in Bermuda and turn off developers from exploiting the Base lands.

But yesterday, the House of Assembly passed the bill unopposed after Government sought to answer two key concerns.

It vowed to look into expanding the rights of some Bermudians to buy land on the former Bases.

And it tabled a draft of the lease between Government and the Bermuda Land Development Company.

In another development, the House rejected a bid to keep Daniel's Head in Government hands -- not the new company's.

A vote on the bid saw the Government rebels divide among themselves, with Ann Cartwright DeCouto and Trevor Moniz voting with the Opposition while C.V.

(Jim) Woolridge and Clarence Terceira voted with the Government.

Fifth dissident David Dyer, who was chairing the debate, gave his casting vote to the Government.

Opposition MP for Sandys South, Walter Roberts, tabled a development plan for the area.

He said residents wanted the land kept as open space and not turned over for tourism.

Buildings at the site could be used for a security station, a restaurant selling farm and fish produce, offices, boat rentals, warehouses and a caretaker's residence.

Finance Minister Grant Gibbons, however, argued taking out Daniel's Head would send the wrong signal to the community and risk the entire Base lands development.

Moreover, he said it would cost Government $1 million to maintain the grounds if the amendment went through and a subsequent $765,000 each year after that.

The resumption of The Base Lands Development Act dominated most of the afternoon.

Shadow Finance Minister Eugene Cox had wanted the legislation to protect Bermudians who claimed a moral right to the lands.

He said people -- or their heirs and successors -- whose land was transferred from them in 1941 should have the right of first refusal on buying it back.

And he introduced an amendment to bring this about. This was later withdrawn after Government argued The Base Lands Development Act 1996 was the wrong legislation for such widening of the rights of Bermudians.

Home Affairs Minister Quinton Edness pledged Government would investigate changing the legislation. Debate: Page 4 The House of Asembly's last meeting of the session was expected to last well into the early hours this morning with MPs debating the Education Act, which puts Government's controversial schools restructuring plans into law.

Education Minister Jerome Dill said the bill was the most significant piece of education legislation in decades.

The bill establishes a system of primary, middle and senior schools and abolishes the 11-plus secondary school transfer exam.

But Shadow Minister Jennifer Smith questioned whether it was worth the wait, saying it failed to lower the starting age of schooling to four.