Government has drastically cut the amount it plans to spend on major building works in the coming year.

Finance Minister Paula Cox revealed in yesterday?s Budget that $54 million had been slashed from the original estimate of $180 million for capital projects.

She told the House of Assembly that no new projects would be launched in 2006/07 unless there was a ?more than reasonable chance? of them being started in this financial year.

Critics claim Government?s reluctance to commit to major new schemes this year is due to criticism over the delays and over-spending that have dogged the building of the Berkeley Institute.

The Government originally estimated that the new senior school would cost just over $70 million but yesterday?s Budget revealed that the total authorised figure is now $125 million.

But Ms Cox said the aim was not to overheat the already booming constriction sector.

Ms Cox said yesterday: ?In 2006/07, the emphasis will be on completing capital works that have delivery dates in this financial year. New projects have not been added to the plan unless there was more than a reasonable chance of starting the project in 2006/07.

?As a Government our aim has been to operate within parameters that are shaped by our desire to be efficient, transparent, fair and responsible and to promote economic stability.

?To this end it should be noted that Government has curtailed all but the necessary number of capital projects. This is due to the recognition that we do not wish to unduly overheat the economy nor to adversely impact the labour market, especially in the construction industry given the consequent spillover effect on other aspects of our infrastructure.

?The phasing in of capital projects over a period of several years is realistic, reasonable and responsible.?

She insisted that Berkeley would be completed in the coming year, as would the new seniors? facility in St. George?s, foreshore protection work in Castle Harbour plus runway grooving and a fire safety upgrade at the airport.

The Government also gave the first indication yesterday of when work might begin on the combined Hamilton Police Station and Courts building. Ms Cox told the House that construction should start in May.

But Works and Engineering Minister David Burch later told that that deadline would probably not be met because of ?architectural issues?.

He decided last month to add five new Supreme Court rooms to the complex, meaning an extra storey would have to be added.

?May 1 is my aiming date,? he said. ?It may move somewhat because we are having some issues.?

New projects which were included in yesterday?s Budget totalled $32 million. Of that, $20 million will be spent on housing. In addition, a $1 million capital grant will go to Sandys Secondary School Community Centre.

Other projects included:

Renovations to Fort St. Catherine and Fort Scaur. Renovations for For George and St. David?s will not now take place until 2007/08;

Work on shore-side facilities at Marginal Wharf to support the fishing industry costing $500,000.

Work at Pembroke Canal to reduce flooding during heavy rainfall costing $350,000; and

A grant of $300,000 for Bermuda College.

Senator Burch said the Government was reining in on spending in order to ?look at what we can realistically accomplish in this financial year?.

Shadow Finance Minister Patricia Gordon-Pamplin described the Government as being ?a little gun-shy?.

?I think they looked at what happened with Berkeley and realised they are not capable of doing major capital projects and instead of going gung-ho they are saying ?whoah, let?s back off and do it one step at a time?,? she said.

?They don?t want a whole lot of projects like Berkeley.?

She added she was disappointed that there was no mention of a replacement police station for St. George?s in the projects for this year.