High-rise housing on the outskirts of the city of Hamilton may be the answer to Bermuda's affordable housing problem, suggested former Premier Sir John Swan this week.

Sir John - who is currently developing a 68-unit apartment block of luxury units on Parliament Street - feels the key to revitalising the City will be opening new residential units to people of different income levels and offering a diverse range of services.

And he would like to see Government offer initiatives similar to those given in the Hotel Concessions Act to entice the private sector into developing North Hamilton for affordable housing.

"Those (concessions) are all primarily being used for condo development," Sir John said. "If they are offering concessions to foreign developers, why not also offer them to local developers? Why not do it for those who so desperately need housing?"

The former UBP Premier blamed many of the Island's social ills on the lack of inexpensive housing.

"People living on top of one another, with strangers and sometimes with family, is unhealthy for the family, unhealthy for the children, especially when they need to sit down and do their homework," he said.

Sir John said he believed that the problem could be solved if Government were in partnership with international business to build low cost housing, but stressed that Government needed to be the facilitator.

He pointed to the north east of Hamilton and the city perimeter as potential locations for high rise developments.

Driving people to live at the ends of the Island by developing St. David's or Morgan's Point is not the answer, he added, as there is nothing to do and people are forced to endure long commutes.

He said: "Most people work in Hamilton and if people can walk into Hamilton for work or entertainment, it will immediately cut down on traffic congestion and people will not be forced to buy cars."

Sir John said Bermuda must begin to approach the housing problem with real urgency.

"We must solve the housing problem soon and not over a ten year period," he said. "The basic requirements are land and capital."

He added: "Where does the land come from and where does the capital come from are the questions. The Government can encourage foreign business investment, use pension funds, syndicated finances, such as Non Residential Insurance and a portion of the National Savings Scheme in solving the housing problem.

"The investment will be just like any other on their books."

The owners of the land can allow it to be developed in return for part of the rents."The aim would be to make housing available to people of lower economic means.

He said: "Joe Blow needs to feel that he can afford to pay rent and to be able to purchase a home. We need to reach beyond the norm, to reach beyond a parody and the talk show in solving the housing problem."

And Sir John said there was no contradiction in calling for Hamilton high-rises to develop low cost housing while building luxury units in the area himself.

"It is absolutely not contradictory," he said. "It would take pressure off the areas outside the City and allow for a cross-section of the people living and mixing in Hamilton.

"That would be a true paradigm shift as it would reduce transportation costs while using land more wisely."

People living within city boundaries would also be home from work much earlier, minimising the time children spend after school without their parents, he added.

But Hamilton will also need to build up facilities to support new city-dwellers, he added.

"Then we would see a truly vibrant city develop," Sir John said.