Bermuda Industrial Union president Derrick Burgess yesterday called on the Island's two major banks to give the Bermuda Housing Corporation a $6 million interest-free loan to build low cost apartments.

He made the call at the annual Labour Day rally at Bernard Park after revealing that that the BIU has donated a block of land between Court and Union Streets to the Housing Corporation on which Housing Minister Nelson Bascome hopes to build 30 low-cost units.

Mr. Burgess, called on Bank of Bermuda and Bank of N.T. Butterfield, which he said had made profits of $500 million in the past five years, to give the Housing Corporation the $6 million for the project interest free which could be paid back over 15 years.

Acting Opposition leader Michael Dunkley described the request as "bold and curious'' because banks were in the business of making money, and he accused Mr. Burgess of "political grandstanding'' by making the call on Labour Day.

Mr. Burgess told the rally in Bernard Park: "Bermuda is a very beautiful country with beautiful waters and skies and beautiful people, but we still have some citizens that can't afford their rent.

"Earlier this year, the BIU offered land for housing and Nelson (Bascome) was so excited, he's done a sketch plan for 30 houses. We are asking the financial institutions for help. (The only way) we can get low-cost housing is if we get interest-free money.

"In the last five years, the two banks have made half a billion dollars in profit, and all we are asking for is an interest free loan of $6 million, repayable over 15 years. I throw down this challenge for the financial institutions to come out.

"They bring in staff from abroad and that's fine, and they put a strain on our units. That's okay, that's life, but at the same time Bermudians need to live comfortably. We can't afford to go on this way.

"I believe that most Bermudians don't want social assistance. The BIU is going to put land up to get real low-cost housing. The BIU and its members would like the banks to give us $6 million repayable over 15 years. That's the challenge and we need to get started that way.''

Mr. Burgess told The Royal Gazette later that the union would lease the land for free to the Housing Corporation. He requested the cash for the Housing Corporation, which would be repaid over 15 years from the rent.

Mr. Dunkley said after the rally: "It is a bold and curious request because the banks are in business to make money and while they try to be the best corporate citizens they can be across the Island, they have to be responsible to their shareholders and I don't think they are in the habit of giving interest-free loans.

"This would set a precedent and everyone would start looking for interest-free loans and further down the road the banks would have to close up shop because they can't pay their bills. If the BIU is giving the land to Government, surely Government could finance this.

"At first blush, this seems a very generous offer from the BIU to help out the housing crisis but there are a lot of questions that need to be answered before we can move forward.

"I would support the initiative by the BIU to help resolve the issue, but when you are dealing with a lot of money, it has to go through the proper channels.If the BIU are turning over land, they must have some sort of arrangement with the Housing Corporation or Government. If it is an open-ended lease, the BIU should come out and say so.

"If the union is so keen to solve the housing crisis, and it is laudable that they are in that frame of mind, most people are aware the BIU has a credit union, and would they consider putting some of their assets forward interest free?"