Government has proposed a facilitator to mediate its dispute with the Bermuda Industrial Union, and an initial meeting was expected yesterday afternoon.

Former Registrar of Companies Malcolm Butterfield was chosen by Government and briefed as to his terms of reference as a precursor to a meeting with union executives.

Legal adviser to the union and Pro-Active Management Systems, Julian Hall, reported that Premier Alex Scott had contacted the union to seek its agreement to the proposal.

?Right now they are in the process of telling him what his terms of reference are because we would like to know as well what they mean by a facilitator. And the facilitator is going to start facilitating at around 4 o?clock today. This is meant to be a prelude to an understanding, if we can get that far, following the facilitation process.?

Mr. Hall said he was optimistic that the dispute would be resolved to the parties? satisfaction.

?We?re always optimistic. I?m not sure what people think this is all about. The country can only grow from this ? somehow we will emerge from this process stronger and better as a country and as a people,? he said.

?I still maintain, as do an increasing number, that nothing short of a full scale public inquiry will ultimately examine the truth of the entire process and the history of these transactions and that would be a good thing for Bermuda. Pro-Active will ultimately secure its justice either by arbitration or by prior agreement ? of this there can be no doubt and the union is big enough, and strong enough to protect itself against all comers even if, sadly, it is being assaulted ? intentionally or inadvertently ? by a labour government.?

The Premier has publicly questioned Mr. Hall?s role in the dispute, suggesting this week that he appeared to be responsible for a worsening of relations in recent days.

?I suppose only because I am human I was initially hurt, but only for a few minutes,? Mr. Hall said. ?I guess somewhere deep down and underneath this surprisingly aggressive language Premier Scott is saying that I am serving the interests of the union and Pro-Active as well as could be expected of me. I am more than used to the fact that whenever I?m doing an effective job, I become personally attacked. But this is not about me and it?s not about Alex Scott, I could say that he is contorting himself so much that he is rapidly becoming a political pretzel.?

Mr. Scott had said that he had been disappointed at the turn of events since then acting Premier had reached what he said was a ?reasonable accord? with the union. ?When we work with the legal teams, we make progress. It seems when Mr. Hall comes into the equation we run into difficulties. I hope that?s just my perception.?

Earlier Mr. Scott had expressed his disappointment that the union had broached the possibility of a general strike, and questioned whether Mr. Hall was advocating one.

Mr. Hall stressed yesterday that the dispute was not about personalities.

?It?s about very important principles, it?s about fairness and it?s about the overarching need to tell the truth. So let?s deal with some of the untruths,? Mr. Hall said.

?Firstly, contrary to what the Premier has said I have never stated or expressed the view that the UAH claim that it has certain ?prior rights? including the right to take over and complete the construction works is invalid in English law or Bermudian law. I have merely confirmed that there are few, if any, English law decisions on the point. That is largely because the use of the performance bond is more of an American approach to construction agreements than it is an English or British one. There is ample authority under American law and, as I pointed out to the media in general, the contract between the Government and Pro-Active is the American Institute of Architects standard contract, as amended by the parties. So there is a clear argument in favour of their position.?

He repeated his earlier statement that he had not advocated a general strike. ?Let me make it clear that I have never advocated a general strike and share the Premier?s view that that would be a very, very dangerous and alarming step.?

Mr. Hall is advising both Union Asset Holdings, a fully owned union subsidiary which provided the completion bond for the project and the contractor Pro-Active. By Press time last night there was no news as to whether the meeting between the union and Government had gone ahead.