Scrapping senators demanded apologies from each other yesterday in a "slander'' row surrounding the bankrupt Co-Op supermarket.

But Senate President Alf Oughton slapped both members on the wrists and called for an urgent Government inquiry into why the Co-Op went bust.

Sen. E.T. Bob Richards, the Government Leader in the Upper Chamber, insisted on an apology from PLP Senator and election candidate Terry Lister.

Senate slander battle continues to smolder He claimed Sen. Lister launched a personal attack on him when he appealed last week for more information about the Co-Op's financial difficulties.

And he said he was ready to call for a Commission of Inquiry into the failure of the Co-Op, which has debts of around $1.2 million.

"My remarks were met with a personal attack on me as a person and on my reputation,'' said Sen. Richards.

The row began when Sen. Richards had told the Senate he had invested $20 in the Co-Op 15 years ago.

Turning to Senate President Alf Oughton, Sen. Richards, also the Telecommunications Minister, added: "I was appalled and I have written you a letter demanding an apology from Senator Lister.'' Sen. Lister was not sitting in on debates yesterday as he was being formally announced as a candidate for the Sandys South seat at the General Election.

But Opposition Senator Milton Scott hit back, demanding an apology from Sen.

Richards for linking the PLP to the Co-Op crisis.

"Senator Richards has to look back at the remarks he made against every PLP member of the legislature and every PLP member who may or may not be a member of the Co-Op,'' he said.

"He also needs to look at other remarks he made about the PLP's ability to manage... the inaccurate statements that were made in terms of the PLP and its supporters `who run' the Co-Op.

"If he wants to put all that on the table, then Sen. Lister will be prepared to consider the possibility of an apology.'' Sen. Oughton, who was not in the Chamber during the original war of words, revealed he had reviewed a tape of the furore.

It came as Sen. Richards revealed letters were sent to 300 Co-Op members asking for $1,200 from each.

Sen. Oughton said: "I would think that the members, per se, have got grounds to seek some sort of investigation.

"It's not the position of this Senate Chamber to make those recommendations but obviously there are grounds when you don't know what's happening and you have got a bill for $1,200.'' And the Senate President said there were "wrongs in both camps'', claiming both Sen. Richards and Sen. Lister may have flouted rule 48, which bans members from "imputing improper motives''.

He said he would not order apologies from either member.