Government is attempting to re-negotiate a staff salary rise as it cuts its budget to the Bermuda College by four percent.

Education Minister El James told MPs last night: "In the 2010-11 academic year, the college will consider outsourcing some of its services and is currently re-negotiating with the BPSU (Bermuda Public Services Union) the 4.3 percent salary increase due to come into effect in August. "This is a direct result of the reduction in the Government grant to the college and its subsidy for free tuition."

He added: "At the same time Bermuda College will seek alternative means to earn revenue. To this end, it plans to re-establish the Bermuda College Foundation and create an Alumni Association."

The college of further education has 141 full-time and 33 part-time employees. The amount spent on salaries was $11,305,923 last year, plus $1,485,677 in employee benefits.

Last year salaries increased by 4.5 percent, according to a three-year agreement with the BPSU.

This year however, Government's Operating Grant to the college is down four percent ($833,000), from $20,702,000 to $19,869,000. Outlining this year's Budget to MPs in the House of Assembly yesterday, Mr. James said renovations to the buildings and advances in information technology will continue.

"College roof upgrades and replacement will continue, and completion of the renovation to the Technical Education Centre is expected," said the Minister.

"The final year in the first phase of the Ten-Year Strategic Plan begins with emphasis on student access and retention."

He said next week the college will undergo the final site visit by the New England Association of Schools and Colleges accreditation team.

From the Fall, there are also plans to offer an Associate in Nursing degree in partnership with an overseas institution, the Bermuda Hospitals Board and Ministry of Health.

Mr. James reported that graduation rates were up by a fifth last year. During 2009-10 Bermuda College graduated 146 students a 21 percent increase on the previous year. Fifteen students were awarded degrees from Mount Saint Vincent University's baccalaureate programmes, while eight graduated from the Kent Law programme.

The college also celebrated the first 13 students to graduate with a Masters in Business Administration (MBA) degree in partnership with Nova Southeastern University.

As the college celebrated its 35th anniversary, Dr. James said the Free Tuition Initiative had brought "an increase in enrolment", plus more students needing 'developmental' courses ahead of college/university.

"The College met the challenge of providing access to higher education with this underprepared group by partnering with the Community Education and Development schools in a pilot programme to offer developmental courses under their auspices," said Mr. James.

"The pilot has been a success and more courses will be offered next year."

Seven former Bermuda College students had also taken up the opportunity to study at Bradford College in the UK, taking advantage of 'home fees' as part of a transfer agreement.

Mr. James said staff and students had also embarked on renovations to the carpentry, plumbing and HVAC laboratories at the Technical Education Centre, taking them on as class projects in a tight economic climate.

He reported there were 368 students enrolled in the Summer 2009 semester, 1,269 in the Fall, and 1,166 in Spring 2010.

Shadow Education Minister Grant Gibbons echoed Mr. James's praise of the work of College president Dr. Duranda Greene and her staff over the past year.

However he questioned what the lease arrangements were between Bermuda College and the Coco Reef Resort, which sits on College grounds.

"From a 2009 Bermuda College report, we've learned that the College had protracted negotiations with Government on Coco Reef. This is two years ago now and I'm very disappointed. I asked a series of Parliamentary Questions. What are the new terms?" asked Dr. Gibbons.

"Many of us feel Government has simply given property away which was supposed to be for the education of students, to Coco Reef.

"We feel it was a terrible judgment call and a tragedy," he said.

"There are still issues needing to be sorted out, such as infrastructure. We understand the college shares the chiller which supplies the campus, and shares the meter (with Coco Reef)."

Dr. Gibbons added: "I understand construction is about to start soon on a very large condominium project. We have problems on this side of the House, as that property was for education purposes, not for private ownership of condominiums.

"All these are questions which need to be answered. The Minister seemed to be refusing to answer these questions."

He said: "The community deserves a much clearer explanation as to what is going on, what the situation is regarding re-negotiation of the (Coco Reef) lease."

The UBP MP said he was also "concerned about security" at the College following the shooting of a 16-year-old boy at a party at the weekend.

The teenager was injured on College Road, behind the gymnasium, at 1.40 a.m. on Saturday.

Mr. James said: "There were ten guards on duty that particular night and metal detectors were used (at the party), as they always are during an event like that."

The time for the Budget debate then ended, cutting off any further remarks.