Progressive Labour Party's reply to the Budget statement yesterday.

He mocked it as "probably the worst'' he had ever heard in the House of Assembly.

And he claimed it was littered with inaccuracies, with the sole purpose of giving the impression the PLP could run the Country better.

"If there was ever a tax and spend Budget this is it,'' he sneered.

Sir John later compared the Opposition's proposals to a passage from Alice in Wonderland.

He laughed: "It is truly a flight in fantasy.'' If the PLP's Budget was implemented the Country's recovery would come to a shuddering halt, and it would plunge back into deep recession.

In contrast, Finance Minister the Hon. David Saul's had delivered a "prudent, realistic commonsense Budget''.

Government had not dipped its hands into people's pockets, he declared.

And he said to the Opposition benches: "You may call it an election Budget, but it is really a people's Budget.'' "There are programmes in this Budget to spur and strengthen the renewed dynamism of our economy,'' he said. "This Budget represents as clear an indication as any that the Country is being managed well both fiscally and socially.

"This Budget clearly demonstrates, once again, this Government is a caring and compassionate Government.

"As the world is slowly coming out of one of the longest and deepest recessions in recent memory, this Budget puts Bermuda on the right course to take advantage of the opportunities which exist in tourism and international business.'' Bermuda was perhaps the only Country in the world able to reduce taxes, and hold the line on others, while not appreciably cutting services.

Bermuda had fared well during the recession, thanks to Government's foresight.

It had begun trimming services several years ago.

Perhaps the word recession should now be removed from the vocabulary, suggested Sir John.

This Budget was part of a trilogy of Budgets starting in 1991, which had enabled the Country to sail a steady course in rough seas.

Sir John added: "This Budget recognises that due to the world recession there are those who will continue to need our help -- some only temporarily, until they can get on their feet, others permanently.

"The physically challenged and mentally ill, and the multiple handicapped, those who must always depend on us for some measure of assistance.

"We in Bermuda have done that with generosity and efficiency and we can be very proud of this. Government will not, however, make the mistake of many other countries in creating a culture of dependence.'' He said Government had invested hugely in health and education, which accounted for 14.4 percent and 22.3 percent respectively of the Budget.

And Government had also helped make Bermuda one of the best housed countries in the world while ensuring the Country kept pace with the rest of the rapidly changing world.

Bermuda had to keep on the cutting edge of new technology and change, and remain internationally competitive, stressed Sir John.

Compact discs, for instance, had been superseded three times in the past couple of years, by the digital audio tape, the digital hard drive media, and now by the new CDI system, or compact disc interactive.

A small country like Bermuda had to export services to be able to import virtually all its goods.

"It is expensive both ways -- requiring us to earn even more just to stay even,'' said Sir John.

Sir John said Bermuda also had to keep an eye on the developing trading blocs in the world, such as those in Europe, Asia and America.

Sir John said the PLP was neither equipped, ready, nor able to take on the challenges of the 21st century.

National Liberal Party leader Mr. Gilbert Darrell began by deploring the lack of time to digest the PLP's Budget statement reply.

MPs should have advance copies in order to make a considered response.

He agreed Dr. Saul's Budget appeared to have been widely accepted in the community, and the United Bermuda Party's election confidence had probably grown.

But he warned taxpayers about Dr. Saul making adjustments to his proposals in the coming months.

Support for tourism needed Continued from page 5 Mr. Darrell expressed concern that Government was putting greater emphasis on international business than tourism.

"The NLP encourages international business, but I don't want it to be our number one industry instead of tourism,'' he said.

Bermuda could be the best Island in the world, but it was in trouble if it didn't attract visitors.

What impact would the opening up of Cuba to tourists have on Bermuda, he asked. It was feared the Caribbean would lose up to 50 percent of its business.

On Government's cutting of its manpower, Mr. Darrell said the axe had fallen mainly on blue-collar workers.

"We have too many managers. I think we are overstaffed at the top.'' He called on Government to carry out comprehensive surveys of people out of work, and guest workers, adding: "We also need to do something about productivity.'' Mr. Darrell continued by urging Government to hold the line on salaries and wages, some of which were "ridiculously high''.

Concerning Government borrowing, Mr. Darrell said "up until recently we paid for everything as we went along''.

He also asked Dr. Saul to explain the sinking fund.

He recalled former Premier the Hon. Sir David Gibbons started a similar fund in the 1970s and asked Dr. Saul what happened to it.

"It was the same type of thing that was attempted and it fell to the way side,'' Mr. Darrell said.

He also questioned the need for the Housing Allowance office.

"I feel it's a duplication of what should be done through one agency (Social Assistance).'' Government should place more emphasis on providing jobs rather than providing money for more social assistance.

Referring to overseas spending, he asked how Government was going to get people to buy locally.

The businessman noted taxes on imports made it difficult for local merchants to compete with sales abroad.

The only way local retailers could presently compete was by having goods shipped directly (from the factory) to Bermuda.

Mr. Darrell said cars coming from Japan were an example of this.

Supporting Dr. Saul's decision to simplify the Custom Tariff, he said: "I've been strongly for that all this time''.

But he urged Dr. Saul to not talk with consumers as well as the business sector about making it simpler.

Mr. Darrell also suggested that Government combine employment tax and hospital levy, clamp down on permits to build condominiums, and look at a comprehensive health maintenance programme for the Island.

He also stressed that the NLP would like to see a reduction in the number of MPs and a consolidation of some Ministries with a full-time Minister overseeing them.

Environment Minister the Hon. Ann Cartwright DeCouto called the PLP response to the Budget a "shallow, vacuous, empty vessel''.

She noted the response concluded: "We commend the Hon. Finance Minister, Dr.

David Saul, on his sartorial taste.

"He is in borrowed rainment, having stolen our clothes.

"A new twist on the story of the `Emperor's New Clothes'. Only this time the emperor does in fact have clothes on -- ours!!!'' "I'm sure that all members of this House remember the fairytale of the `Emperor's New Clothes','' she said. "The emperor wasn't wearing any clothes at all.

"So that Freudian slip is indicative of the lack of intellectual context of the reply to the Budget.'' Mrs. Cartwright DeCouto, who described the Budget statement as "the hallmark of a recovering economy'', said the PLP did not touch on many important issues in its response.

She said the response omitted the party's position on taxation and included nothing about economic stimuli.

"This confirms that the PLP has a secret agenda for taxation,'' she said.

"It is often said that the omission tells more than the commission.'' Mrs. Cartwright DeCouto also slammed the PLP for calling Government's task force on employment one of "many dozen Front Street teams'' and for questioning what they have done so far.

"To dismiss in such a contemptuous vein the very hard, volunteer work given by so many sectors of this community as we're working our way out of a recession is dismissive of hours and hours of work dedicated to all of us,'' she said.

"It is indicative of the attitude the PLP has held for many on boards who give such valuable contributions to this community in the interest of us all.'' But Opposition Leader Mr. Frederick Wade hit back, saying the Budget statement was the " one of the most naive attempts to try to win voters and the most shameless piece of plagiarism'' he had ever seen.

While saying the PLP did not mind Dr. Saul borrowing some of its ideas "if it is for the good of the Country'', Mr. Wade accused the Finance Minister of lacking the foresight to copy the party last year or the year before.

"When the Premier called the election four years ago and said we will have a recession one would have thought he would have found a solution for small businesses,'' Mr. Wade said.

"But, instead, the Finance Minister increased the levy and some businesses folded.

"If we had had the relief then -- in terms of employment tax and hospital levy -- some of those businesses might not have been lost.'' Mr. Wade said Government had put it's political needs ahead of the country's.

"This (Budget) throws the Country in the garbage and is a clear attempt to save the UBP from an election defeat,'' he said. "That is why the Minister has had to spread his crumbs wide.'' Stressing that the PLP had a policy on producing economic stimuli and jobs, Mr. Wade said the party would have written off the employment tax owed by small businesses and given them a "firm opportunity to get going this year''.

He said the party would have also borrowed money at a certain rate and lend it out to small businesses at a lesser rate.

The party would also have personnel on hand who could assist small businesses with bookkeeping and other things to get them back on their feet, he said.

Mr. Wade also said if Bermuda had persuaded the US government to give money for the bases they occupy on the Island, it would have been better off.

Now Bermuda had to persuade the US to stay.

"What will we do if Americans decide to leave?'' he asked.

Mr. Wade also blasted Government's handling of education reforms.

He said the PLP was now not only calling for Education Minister the Hon.

Gerald Simons to resign, but for the Premier to call an election.

Mr. Wade challenged the Premier to call the election in the next month and "let the public decide who they wanted based on education''.

Speaking emphatically about the proposed reforms, Mr. Wade said: "I'm sick and tired of the way they are handling these changes.

"What kind of foolishness is this? It is clear that Government is in all this together.

"They were all there at the press conference (at Bermuda College on Tuesday) supporting the Minister because they have no idea about what to do.'' Mr. Wade stressed that if Government had no plans for children, who are the future of Bermuda, "it should step aside'' and let "the people who have the courage and the policy to carry it out'' take over.

But veteran Government MP the Hon. John Stubbs , who yesterday returned to the House for the first time after the removal of a cancerous tumuour, praised Mr.

Simons for restructuring plans.

Calling education one of the most important Government portfolios, Dr. Stubbs said: "I commend the Minister for devising the plan in view of utility, effectiveness and practicality''.

Dr. Stubbs said he particularly like the plan for three-year middle schools, noting that Government can use these years to study the needs of young people, especially those who "have fallen by the wayside''.

The conclusion of the debate will be carried in tomorrow's newspaper.