The United Bermuda Party has attacked Government for mismanagement over the Southside building project after the company behind it went insolvent.

Landowner Bermuda Land Development Company is set to take over after hotel magnate Clifford Schorer pulled out of the Bermuda Homes for People (BHP) project claiming expenses of $733,000.

Yesterday Opposition Leader Grant Gibbons said: "We understand there was never any written contract between Government and BHP, despite the fact that Mr. DeVent was planning to give them some $30 million of taxpayer's land.

"In a complete about face, Government is now desperately trying to shift the responsibility to the Bermuda Land Development Company, the very group from which it was trying to take the land in the first place.

"But there is no guarantee the BLDC can or will take on the project in its original form.

"In fact unlike the PLP Government, the BLDC actually has its own housing plan, which it was progressing." understands BLDC is still assessing the financial implications of taking over the project.

Nearly 200 homes are to be built on the Ship's Wharf site ? half of them will be sold at market price to pay for the rest which will be sold to low income families at $199,000.

Government had agreed to waive duty on building materials.

Dr. Gibbons questioned what would happen to the people who had put down deposits on the homes, how the change would affect the timetable and whether the $199,000 price was still realistic.

He said: "How will the project be funded since the BLDC was only given a total budget of $3 million this year and Government has refused to put any more money in?

"Since BHP is insolvent who will now pay compensation to the Marginal Wharf tenants who are being evicted?"

Dr. Gibbons also asked if the taxpayer will end up paying Mr. Schorer the expenses he is claiming.

He said: "Having been badly misled, the people of Bermuda now deserve a full explanation for the events at Southside and answers to the many questions that emerge from the unfortunate collapse of this housing project."

UBP Shadow Housing Minister Wayne Furbert said the PLP was incapable of solving the housing crisis but his party had a plan which would see 25 acres at Tudor Hill, Southampton used for affordable homes.

He proposed payroll tax relief to reduce labour costs, duty relief on construction materials and working with banks to bring mortgage costs within reach for the average Bermudian.

"We could also provide options such as affordable lease-to-buy programmes."

Housing Minister Ashfield DeVent could not be reached for comment yesterday.