present new obstacles for Hamilton's $1.25 million spy-camera project.

But Quantum chiefs say two or three parties have already shown interest in buying out the company which should limit possible hiccups for the handling of the joint Police and Corporation of Hamilton CCTV scheme.

Quantum's problems follow the announcement last week of an unrelated delay in switching on the 30 cameras linked to a Police control room, while a code of conduct was drafted, circulated, evaluated and implemented. Quantum Communications announced on Friday that its 16 employees had been given notice and its shareholders were selling their stakes -- Belco and Cable & Wireless hold respectively about 45 percent and 35 percent of shares.

The company was set up to compete with BTC in the supply of local telephone service but wrangling over the wording of the relevant legislation has dragged on for 18 months impeding its operations.

Corporation secretary Roger Sherratt confirmed yesterday that Quantum was to manage and maintain the fibre optic system which the CCTV depended upon. But he said the Corporation had been assured that the short term maintenance of the system was under no threat.

"But if Quantum is going to go out of business and not be taken over by another company we are going to have to resolve with the new owners the issue of the maintenance of the fibres,'' he said.

"No matter what happens to Quantum I believe the fibre will be quickly sold to someone because it is a major sophisticated fibre optic system so of course it would have tremendous value for whoever purchased it.

Quantum problems could hamper CCTV plans "From our point of view we will just renegotiate the annual maintenance fee that we would have been paying Quantum.'' Quantum president Jim Sullivan said it would become clear in the next four weeks whether the company was going to be rescued by a buyer and if that did not happen the ownership of the fibres would revert to previous owners Belco.

"It is a complex matter because Belco initially owned the fibres and donated the use of the fibres to the Corporation of Hamilton for CCTV.

"Quantum then bought the fibres from Belco and still honoured the donation so if the ownership passes back to Belco they would very likely honour their original donation.

"The only issue the Corporation would face is having to secure someone to provide maintenance for the fibre optic system.

"And there are two or three other companies who could provide that service.

It would be an opportunity for those businesses but not something that would keep a whole business going.'' Belco CEO and president Garry Madeiros said the subject of the CCTV system had been broached in talks with possible buyers of Quantum because it was too important not to be protected.

But if the company was not sold Belco would resume ownership of the fibre optic system and have to come to an agreement with the Ministry of Telecommunications to allow CCTV to continue on the system.

"It is something we would want any potential buyer to honour because Quantum has a five year contract with the Corporation of Hamilton.

"Our objective as we talk to all interested parties in the purchasing of Quantum is to ensure the ongoing relationship with CCTV.''