MPs debated the rising cost of living on the Island in a lengthy debate in the House of Assembly, late into the night on Friday.

Shadow Environment Minister Cole Simons introduced the Motion: "That this Honourable House takes note of Bermuda's increasing cost of living, in particular, the continued rising cost of energy and fuel, and its impact on Bermuda's families."

Mr. Simons said: "This out-of-control inflationary trend – there will be casualties and we need to make sure they are minimised. Our cost of living is rising. The middle class is being squeezed while the lower classes are bursting at the seams.

"Bermudians are spending more and more on credit. They can't afford the continued rise in costs, they are even paying for essentials such as bread and eggs on their credit cards. They do not have the money to be able to survive in this country.

"A lot of young people are saying 'Cole, I am sorry but I can't afford to live in this country because it's far too expensive'.

"We've seen inflation hit an 18-year high recently. More and more Bermudians are looking for housing support, people are living on beaches, in cars, and some do not have houses at all."

Talking of a growing recession in the US, Mr. Simons said: "The economic storms are coming, we need to be prepared and this Government has a responsibility to prepare Bermudians.

"Increased cost of oil, utility bills and fuel. The people who need most help are the people at the bottom end of the continuum. People are having problems with paying utility bills. Oil prices are up 30 percent and that impact is trickling down to the man in the street. The average person can ill-afford these prices.

"The cost of fuel goes up, the cost of food goes up and it results in frustration and anxiety, leading to some measures legal, some illegal. At the end of the day some of our social problems are down to people being unable to cope with the economic situation in this country. We need to address working-class Bermudians."

Mr. Simons said the cost of a barrel of oil had increased from $65 in May 2007 to $145. He added: "Our utility bills are up 17 percent.

"Because Bermuda imports almost everything, these price increases will continue – because they are all connected to oil. Bermudians are in for a rough time and we need to give them all the support that we can. We must prevent them from falling."

Mr. Simons applauded Government's free public transportation initiative. "We need that free transportation," he said.

"And we may have to consider going further with concessions (for fuel) to our fishermen and charter boat fishermen".

Mr. Simons said that the average Belco energy bill had increased from $232 to $270 a month. "In the last year alone our bills have gone up 25 percent," he said.

"People are falling behind and this will continue. We hear the US is heading for a recession and that will impact us."

Mr. Simons then called for an action plan by Government on farming.

"The Government has been derelict in setting a farming policy to help people sustain themselves," he said.

"We need a policy that will encourage the man in the street to get involved. They don't need to have a bigger garden, but a square foot garden.

"This Government needs to promote agriculture more aggressively, so it becomes the way of life that it used to be, so that our people can depend less on importation.

"If we are going to talk about a more sustainable Bermuda, the farming industry needs to be propped up."

He added: "We need to look at tariffs and education and encourage our grocery stores to buy local."

Mr. Simons said the UBP had initiated a community garden in Paget "for those who can't afford it". "This idea needs to be extended to the East End and the West End, throughout the country," he said.

"And we need to protect our arable bank. We only have 380 acres of farming at this point and we need to encourage it, so that all agricultural land is used so our economy can be boosted."

Mr. Simons said: "We need solutions to help combat some of these spiralling inflationary pressures. I suggest we supply more equity to the people of this country. I would also suggest we get rid of current import duties on eggs. I recommend the Minister waivering or reducing the import duties on eggs, dairy products and bread.

"I recommend the public sector convert public service vehicles to alternative fuels and I would like Government to reverse the three percent vehicle licence fee which took place this year."

Minister of Culture and Social Rehabilitation, Dale Butler, said: "I hope we can collectively come up with some short-term, medium-term and long-term solutions.

"Today's motion is a very important motion for this country and I commend Mr. Simons for bringing it."

Mr. Butler said: "This might mean mobilising our clubs, bringing groups together to impact on their members and others in the community."

Government MP Wayne Perinchief called for deregulation of the energy industry in Bermuda and more Government intervention.

He said: "In dealing with the energy issue, the cost of fuel, I think it's becoming increasingly clear that it will involve some intervention on behalf of Government. We will need some legislative strategies and deregulation of certain industries. Belco controls both production of energy through diesel and propane - the alternative energy for cooking."

He said: "If you have to ease this situation we have to become a Government which intervenes in the marketplace in a very positive way. We've got to talk about deregulation of energy and in particular, electricity. We need to encourage the breaking up of monopolies. Today there are so many alternative technologies. If we want to bring about competition and drive down prices, certainly this country is right for that time so I talk about opening that market to the production of energy.

"The Bermuda market is right for opening up of energy. As a Government and a fairly new Government we will have taken over this system we found in 1998 but it is certainly time to re-tool and look at how we find this Government and generate income."

He said in some countries companies paid for all the payroll tax.

"We have to start thinking outside the box," said Mr. Perinchief. "Yesterday's ways of dealing with the economy will not suit the changed economic dynamics that this country now operates under.

"I would consider tax reform, the way we use energy and the way we protect existing monopolies. We need to continue to have a level playing field where new players can enter the market in terms of energy production and to operate in a way that companies cannot corner the market in any commodity, be it food, energy or housing, etc.

"We have to be careful companies do not become mega-companies and then operate against a free market system."

Opposition Leader Kim Swan then said: "As we live among such affluence it's difficult for us here in Bermuda to wrap our minds around poor.

"The Government needs to lead by example to its people. There's been too many examples over the last ten years of too much money which could have gone to meaningful programmes having gone by the wayside, such as $50 million overruns to build a school.

"Are we teaching our people how to budget? Are we teaching our people how to save? No."

Mr. Swan called for a Parliamentary Joint Select Committee to discuss the issue.

He said: "The poor spirit comes when you can't survive in your own land, and it hurts you.

"We urge the Government to do all it can to bring about the type of will I know their forefathers possessed.

"We need to prepare the young minds of today for what may come. This country finds itself in a very perilous time and we urge the Government to get the will to address the issues it needs to, to help this country travel through these troubled waters."

Government Whip Glenn Blakeney then said: "I don't think anybody on this side or the other is wanting to make light of the dire consequences we could face in the face of a downward spiral which gets out of control.

"This Government is caring and has the vision. Free transportation is coming, we are building houses and bringing free day care."

Deputy Premier Paula Cox acknowledged that "emotions are running high and that's understandable" over the increased costs of living.

Governments the world over are under pressure to find solutions, she said, and Bermuda's Government is helping "take the pinch out of the pocketbook" of locals with initiatives including free public transportation, free child day care, free Bermuda College tuition and more accessible health care.

Wrapping up the debate, Premier Ewart Brown said: "I believe that the motion is both relevant and important. One does not have to be a rocket scientist to know that although we think Bermuda is another world, and sometimes act like Bermuda is another world, we must put that aside when it comes to this issue."