yesterday saying it was riddled with trite remarks and was a classic case of the blind leading the blind.

He also accused the PLP of getting their mathematics wrong with two economic "fiscal fallacies that are amazing''.

The Premier was speaking after Shadow Finance Minister Eugene Cox had given his response to last week's budget.

"If ever there was a classic case of the blind leading the blind we have it here,'' said the Premier. "It must have been an effort to get to 16 pages because the padding in here is unbelievable.'' He added: "We should take a brief look at it and then reject it and treat it with the contempt it is due.'' Dr. Saul said the PLP's statement that the national debt was $380 million was "totally fallacious'' as borrowing is limited by law.

Including unfunded pension liabilities of $164.6 million in the debt, said Dr.

Saul, Government assets of more than $1 billion were omitted.

The Premier also hailed the Government's economic record over the last 12 months which saw gross domestic product, the country's wealth, grow by 4.5 percent, balance of payments reach a record, employment rising by 1.5 percent, Government borrowing falling and inflation stable.

He added that 1,000 new companies registered in Bermuda in 1996, the construction industry was "vibrant'', retail sales were improving and tourism was moving in the right direction.

One of the best indicators of a health economy, added the Premier, was the extra $20 million raised from the Payroll Tax showing more people were working or earning more.

"Last year's budget set this Country on a road that allowed us to grow over the previous 12 months.

"This budget sets out a plan, not little trite statements, so we can grow over the next 12 months without any increase in new taxes,'' said Dr. Saul.

The Premier also discounted a PLP claim that the budget was for the rich saying millions had been earmarked for youth and sport, people's safety on the roads and free transport for the elderly.

A scholarship fund for students had also increased by 100 percent to $4 million.

And on tax Dr. Saul said Bermuda had a taxation system that was the envy of many countries, although he ruled out dropping customs duties. "Calls for the abandonment of customs duties are ill-founded,'' he said.

"This budget is a very, very good one. There is little doubt that the policies contained in it and the programmes set out in it will keep this country on course as we go forward.

"I do not think we will see an Opposition Government for many, many years to come. I ask the people of Bermuda to look at the budget speech and look at the budget reply and make up their minds on the clear evidence that is before them.'' Shadow Tourism Minister David Allen spoke next on the budget saying there had already been complaints that the meagre customs relief would not do the job.

He said the budget did not provide the jump start the economy needed and although the balance of payments was at a record people were still losing their jobs.

Mr. Allen added that some of the fat in Government could have been trimmed to help fund additional incentives needed for the tourism industry.

And he said that the Progressive Labour Party had called for drastic cuts -- or the elimination altogether -- of duty on luxury items attractive to visitors to enable Bermuda to compete against global competition.

But Mr. Allen claimed: "A litle bit of tinkering and fine tuning here and there is not going to send a strong message to the market place.'' And he said that if Government had sent a strong message two or three years ago, the industry would have been in better shape today than it is.

"Instead, we have had this trickle down, drip theory -- a little percentage point here, a little percentage point there isn't going to get the message across. We have squandered the public relations possibilities by doing this.'' He added that Government had not "seized the moment by beefing up the off-season.'' And Mr. Allen said the PLP would have addressed Bermuda's off-season by adjusting taxes like the occupancy and airport taxes down to encourage shoulder season visitors to come to Bermuda.

He added: "If we send the message out that Bermuda is becoming more competitive....that is a very powerful message.'' Mr. Allen claimed that he had spoken to industry experts at home and abroad who were still saying that Bermuda had priced itself out of the market.

He said that the PLP believed that tourism was the base industry for the Island and it "doesn't play second fiddle to anything.'' But he added that the PLP also recognised the role of international business.

And he said: "It's clear that international business is now showing the same kind of confidence in the PLP.'' Mr. Allen also claimed that the incentive group business was falling "into a quagmire,'' although it was still a significant sector of the visitor industry.

He added his opinion that Club Med would have re-opened by now if the business was not in decline -- and that a Bermudian bid to develop the old Bermudiana Hotel site, which was to include a hotel, might have stood more chance of success with a buoyant industry behind it.

UBP backbencher and former Premier Sir John Swan told the House that Bermuda needed to stop "beating up on ourselves.'' He admitted Bermuda was "no longer a strategic location'' for the US and had suffered as a result.

But he pointed to 58 percent home ownership on the Island and the high level of education as measures of achievement.

He said: "I always get suspicious when anybody tells me they can solve all the problems because of my experience in business and Government.'' Sir John added that the tourism business had changed and the entertainment business had changed.

He said that Bermuda was never likely to get back to the position it held before the 1981 general strike.

And he added: `The public need to know there is no quick fix out there.'' He added the US had adjusted to people having less income while working harder and producing more and better quality goods.

And he said: "I believe we can do the same in Bermuda.'' Sir John added that many of the new buildings housing international business which sprang up in Bermuda were as a result of the UBP negotiating a tax treaty with the US offering breaks for Bermuda-based US insurers and for US businessmen visiting the Island for conventions.

But he said the treaty -- which took five years to negotiate -- had been slated by the PLP, which said it could not be done.'' And he added: "What this Budget is doing now is allowing international business to grow and try to help the tourism industry, which predominantly employs black people.'' And he accused the PLP of cosying up to international business in a bid to gain some credibility -- while trying to hang on to their traditional support.

Sir John said "They can't run around saying one thing to one sector and another thing to another sector of the community.'' He accused the PLP of throwing together a Budget statement made of up of a selection of speeches.

And told the PLP: "If the Opposition are thinking about forming a Government, you have to know what you are doing.'' Opposition House Leader Reginald Burrows said the Island was experiencing a "digital revolution'' and Bermudians were rapidly becoming citizens of the world.

"We are an integral part of the wide world. We must instil in our young people the importance of being able to compete globally not just in Bermuda.'' Mr. Burrows said Bermuda's infrastructure needed to be maintained.

And the Island should not lose sight of the fact blue collar jobs were important.

Currently, Bermuda had to import foreigners to do some of these jobs, he said.

Mr. Burrows went on to back the Police Service, saying he was glad Government had given additional financial support to the Commissioner -- something denied Mr. Colin Coxall's predecessors.

"I am pleased the Commissioner has been able to civilianise jobs,'' he said, adding this was something the PLP had been recommending.

"The Commissioner is doing a fairly good job. I intend to give him my full support.

"I hope that while he is here he is training a Bermudian to replace him.'' Mr. Burrows welcomed the relief given to senior citizens and children on the ferries.

But he voiced concern at the "unfair'' structure for car licence fees.

Under the current set-up, the licence fees for a ten-year-old car and a brand new one of the same make were the same.

Mr. Burrows also urged Government to make the payroll tax more "palatable'' for people with only one income.

He concluded by demanding to know when the Berkeley Institute would be renovated.

Health Minister Clarence Terceira said over the years he had been repeatedly disappointed with Opposition replies to the Budget.

"It is a very sad reflection of this Parliament that replies do not measure up to the possibility and thought of the Opposition becoming Government.'' UBP `arrogance and cockiness' rankles Simmons He added he had been "disappointed, baffled and disillusioned'' by the Budget Reply, which was all "style and no substance''.

Dr. Terceira said the Budget Reply suggested the Opposition had failed to pay attention to what was happening in the community -- and what Government was doing.

Many of the Opposition's points had already been covered by Government, he said.

On tourism, Dr. Terceira predicted Bermuda would soon be seeing a marked improvement as marketing efforts paid off.

"I predict that in the following year we will see an incredible increase.'' Dr. Terceira said Bermuda had much to be proud off and too often failed to recognise this.

For example, Jamaica's Health Minister came here recently with the idea of modelling his country's health system on Bermuda's.

Dr. Terceira said this year's Budget supported the Police and the family.

And he claimed a sign of a country's greatness was how much money was allocated to health and education.

In Bermuda, he said, the Ministries of Health and Education received the largest allocations.

"In our Budget we are giving Mr. and Mrs. Bermuda hope and expectations for the future that are bright and positive.

"Remember the rest of the world envies us here. We are blessed. God has seen fit to bless us with a good Government.'' Opposition backbench MP Ottiwell Simmons said the PLP was at a big disadvantage when compiling Budget Replies.

Unlike Government, it did not have the back-up of civil servants. And it only had a week to prepare a response to the Budget.

Mr. Simmons said it was unfair and nonsensical for Government to expect the Opposition to produce a Budget alternative.

"I took offence that Dr. Saul spent most of his speech being critical of our efforts and threw the Budget Reply on the seat next to him as if it was not worth anything.

"It is typical of the arrogance and cockiness which characterise the leadership of the UBP.'' Mr. Simmons said it was wrong to label the Budget a "People's Budget''.

While senior citizens were given a financial break on ferry rides, they faced a cost of living increase -- if they owned cars.

The price of fuel in Bermuda was one of the highest in the world, Mr. Simmons claimed.

He went on to call for the tax system to be made more equitable.

Those deriving the greatest benefits from the economy should be paying more than those deriving little or no benefit, he said.

"What is wrong with taxing people according to their income?'' On the employment front, Mr. Simmons said Bermuda had to ensure work for its people.

While it was good international business was expanding, this sector of the economy was not labour-intensive for Bermudians.

Mr. Simmons said Bermuda had to take greater control of its own affairs and should not be guided by "external interference''.

"We should be taking the bull by the horns.'' Mr. Simmons continued by focussing on hotels.

He said the industry received tax breaks -- but Government had to ensure every penny in hotels was used properly and wisely and that there were "no leakages''.

It was a good idea for Government to inspect the financial books of hotels.

Mr. Simmons also said Bermuda's unemployment rate was too high.

While Bermuda had made progress over the years, it had paid a heavy social cost.

Those who had profited from economic success were selected law firms, accountants, auditing firms and the three banks, he said.

Tourism Minister David Dodwell said four key words stood out in the Budget: change, technology, preparation and partnerships.

These words set the stage for Bermuda's approach to the 21st Century.

And, said Mr. Dodwell, the present Government was well qualified to help Bermuda adapt to a changing world.

Five qualities were needed to bring about change: receptiveness to it; good leadership; unique knowledge; moral purpose; and tension.

Mr. Dodwell said Bermuda -- with its decline in tourism halted -- was ready for change.

One of the ways forward for Bermuda was to form partnerships or strategic alliances between the public and private sectors, he said.

"We will not be successful unless we can work together. Government cannot do it alone...we need to pool our resources. The Budget flows from the notion of partnership.'' Mr. Dodwell believed the Budget had been well received by the community.

And he added he was disappointed the Budget Reply made no mention of partnerships.

Mr. Dodwell said that the Island had to invest in entertainment -- because the tourism industry had a responsibility to visitors which did not end at sundown.

He added: "It goes beyond music -- it's really any activity which takes place in the evening.'' But he said Government could only assist in partnership with tourism-related businesses to give the visitor what they wanted.

Mr. Dodwell explained: "It's a difficult one -- at the end of the day the customer is king. The Government is not an employer, the visitor is.

"We have got to find a way in the community to make that work out.'' And he promised: "We are going to come to the table with some good suggestions.'' And he said that Tourism Ministry dollars had to be spent targeting individual markets and travel agents to best convert inquiries into visitors.

Mr. Dodwell added that Government's $500,000 contribution to help fund the work of experts from the US firm Monitor was to "assist us in how we should be doing all the things we believe in this Country we have got to do.'' But he said that Monitor's role was closer to a mediator in an industrial dispute, rather than simply producing a report.

He added: "I see the role of Monitor as helping us to rebuild our competitiveness and create a collective will, a shared vision, which will allow us to move forward.'' Shadow Works and Engineering Minister Stanley Morton praised the work of the Bermuda International Business Association.

He said the association was not only promoting the Island abroad, but motivating young people with school visits and promotions.

And he said he hoped tourism and international business would work "side by side'' in boosting Bermuda.

But he said it had been estimated there were 2,000 people on the Island on or below the poverty line.

And he called for a system of assistance which allowed people to get help and retain their dignity.

And he responded to Government's calls of inconsistency over the PLP's support for waiving the 60/40 ownership rule to allow two exempt companies to develop the site of the old Bermudiana Hotel.

He said: "The PLP is interested in Bermuda and they want nothing but the best for Bermuda. The stories the UBP have been telling all along, the boogey man stories, that if the PLP takes over international business will run do not have any value at all. The people of Bermuda can feel comfortable and safe with a PLP Government.'' But UBP backbencher Maxwell Burgess hit back and compared the PLP's position on the 60/40 rule prior to voting with Government for a relaxation.

He said: "We have seen some pretty fancy footwork since then. I ask the question `who can you trust?'' And he added: "I would warn anybody who might be the beneficiary of the change in PLP policy to ask `who can you trust?' '' He said: "On balance, when you look at the Budget and look at the reply, there is only one thing you can trust. It's the Government.'' And he stressed Bermuda needed a "trusted, competent Government'' to lead the country into the 21st Century and the challenges of the global economy.

He said of the PLP: "I don't trust them -- I will not trust them. You don't trust people who are going to cut the debt by creating another Ministry for international business. Another Minister, another car. But they are going to cut down on the size of Government.'' But PLP shadow Health Minister Renee Webb went on the offensive, and said a Government which bailed out the Westgate builders with $2 million "of the people's money'' was not to be trusted.

And she criticised Minister of Finance Grant Gibbons for allowing Grape Bay Ltd. permission to open a McDonald's in Bermuda -- permission which was later quashed.

And she said slurs against the PLP were "an insult to the almost 50 percent of the people who vote for us.'' She slammed the UBP's view of Bermuda as rose-tinted and complacent.

Ms Webb pointed out that there was no legislation in Bermuda to guarantee workers' rights -- unlike most western countries.

She added that there was little rehabilitation available for prisoners and that young Bermudians were coming back to the Island with good degrees -- but could not find jobs.

Ms Webb also said Sir John Swan's comments on the PLP relationship with international business were "mischevious.'' She added: "He didn't say who or what, he just put that in to be mischevious -- they are just trying to malign the PLP, malign their Budget and malign the people who vote for the PLP.'' Ms Webb said that the Budget was further reinforcement for the view that Government "benefits the few at the expense of the many.'' She added: "The majority of people in this Country are employees. They are not owners of the means of production.'' Ms Webb said she thought a move by the UBP away from protectionism was "great because it protected those who continually made money.'' She claimed the base lands would not provide opportunity to most Bermudians to become businessmen rather than employees.

Ms Webb said: "Not to many average Joe Bermudians will be able to take advantage of the new economy.'' Continued tomorrow OTTIWELL SIMMONS -- PLP `at a big disadvantage'.

CLARENCE TERCEIRA -- `Much to be proud of'.