Government is considering transferring some of its operations to St. George's and Southside to ease traffic congestion and help the east end economy.

In a statement to the House of Assembly on Friday Premier Ewart Brown said Government would conduct a feasibility study on the issue with an interim view ready in 30 days.

He said there were a number of factors making the study necessary:

— Traffic congestion within Hamilton has become a serious issue which threatens to diminish the efficiency of operating within its limits

— The increase in vehicles generally and the flow of traffic to and from the City has become a quality-of-life issue for the travelling public

— The waning fortunes of the town of St. George's speak volumes about the requirement for even small economies to diversify

— Sustainable development principles encourage us in forward planning to diminish the concentration of working populations.

The Premier added: "A working group led by the Estates Section of the Ministry of Works and Engineering and including the Cabinet Office, the Sustainable Development Unit, the BPSU and the BIU will set about the task of determining suitable locations and what functions of the public service might best be transferred.

"Mr. Speaker, an interim view should be provided within the next 30 days and I look forward to sharing further details with this Honourable House and the public."

The St. George's economy has been struggling and recently had business like the Carriage House and George and the Dragon restaurants and Making Waves shop close.

Kenneth Bascome, Mayor of St. George's, said he would be thrilled if the Government moved offices, but he believed Southside would be the likely stop.

He said: "If it's (Government) going to come to St. George's I would be overwhelmed, but it's more likely to go to Southside. I believe the construction going on with the pre-fabricated buildings is where it would go.

"If it did come to St. George's it would help give us an economic boost in the arm. We can make overtures to the relevant Ministries."

The economy has been hit in the last two weeks as the cruise ship Veendam has twice been unable to anchor and tender passengers to the town due to weather conditions.

The Veendam, a Holland America cruise ship, was due to anchor in Murray's Anchorage off Fort St. Catherine and a large ferry would bring passengers into the city. Instead they have berthed in Hamilton with passengers being given bus tickets to St. George's.

Mr. Bascome added he met with business leaders on Friday and said: "This morning we had a meeting with the business people which was well attended and the decision was that we were going to work with the contractors in place at this time.

"The two ships starting off this season have gone straight to Hamilton so we will see how it changes. We are just hoping the elements will work in our favor.

"I have also been approached by the cruise personnel to reinstate the west end ferry service from Dockyard to St. George's."